District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Justice Department Sues Guam and the Guam Retirement Fund for Denying Servicemembers Proper Pension Credits During Military ServiceRead the Press Release
https://www.justice.gov/opa/pr/justice-department-sues-guam-and-guam-retirement-fund-denying-servicemembers-proper-pension
Justice Department Sues Guam and the Guam Retirement Fund for Denying Servicemembers Proper Pension Credits During Military ServiceRead the Press Release
The Justice Department announced today that it has filed suit against the Territory of Guam and the Guam Retirement Fund (GRF) alleging defendants violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) when they refused to properly provide pension credit to servicemembers who used leave from Guam’s leave-sharing program while on active military duty. As a result, Guam and the GRF shorted the retirement benefits and pension annuities of at least five servicemembers and potentially many more.
USERRA is a federal statute that protects the civilian employment rights of the non-career individuals who serve in our armed forces. Among its protections, USERRA requires employers to treat an employee’s time in military service as service with the employer when determining pension benefits. The United States’ complaint filed in the U.S. District Court for the District of Guam contends Guam and its retirement fund failed to do that when they denied pension credit to servicemembers who used donated leave from Guam’s employee leave bank while on military duty.
“This complaint reinforces that the Justice Department will continue to vigorously enforce the protections provided by federal law to those who serve in our country’s armed forces at great personal cost,” said Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division. “We owe a solemn duty to our servicemembers to act when any employer seeks to infringe on their hard-earned protections.”
“These servicemembers were called to active duty and they served honorably,” said U.S. Attorney Shawn N. Anderson for Guam and the Northern Mariana Islands. “Their many sacrifices should not include the loss of their civilian retirement benefits. Our office will continue to work hard to protect the employment rights of those who have served to protect all of us.”
The United States’ lawsuit asks the court to order defendants to stop denying servicemembers proper pension credit, identify all current and former employers who have been harmed by defendants’ discriminatory practice and properly credit those employees’ retirement funds or adjust their current pension benefits.
Trial Attorneys Joseph J. Sperber and Vendarryl Jenkins of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Mikel Schwab of the U.S. Attorney’s Office for the District of Guam are prosecuting the case.
The full and fair enforcement of USERRA is a top priority of the Justice Department’s Employment Litigation Section of the Civil Rights Division. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.
Justice Department Settles with Newark Public Schools to Protect English Learner StudentsRead the Press Release
Today the Justice Department announced a settlement agreement with Newark Public Schools to resolve the department’s investigation into the school district’s programs for its English learner students. The agreement ends the district’s longstanding and common practice of removing students from English learner programs before they become fluent in English. The district has agreed to improve services for English learner students so they can access the same educational opportunities as other students in the Newark Public Schools.
The department’s multi-year investigation uncovered wide-ranging failures to properly serve students learning English. The department found that the district failed to hire and retain enough qualified teachers to support its program, resulting in limited instruction time for some students, and for others, no language services at all. The Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey investigated under the Equal Educational Opportunities Act of 1974.
“School districts must provide effective English learner services so that all students can create an American dream of their own,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We will continue fighting to ensure compliance with our federal civil rights laws as we stand up for every student’s right to equal educational opportunities across our country. The comprehensive requirements in this settlement agreement will create lasting change and provide access to education for thousands of English learner students in Newark.”
“Our office steadfastly supports the civil rights of all students, including English learners,” said Acting U.S. Attorney Rachael A. Honig for the District of New Jersey. “We are pleased that the Newark Board of Education has agreed to fully embrace its obligation to meet the language needs of its English learners and resolve the serious violations of federal law uncovered during this investigation. We will continue to hold school districts and other education agencies accountable so that all students in New Jersey have equal access to educational opportunities.”
The Justice Department will monitor the district’s implementation of the settlement agreement for at least three full school years until the district has fully complied with its obligations.
The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division and of the United States Attorney’s Office for the District of New Jersey. Additional information about the Civil Rights Division of the Justice Department 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 https://civilrights.justice.gov/report/ or with the U.S Attorney’s Office for the District of New Jersey at http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Hotline at (855) 281-3339.
View the Spanish translation of this press release here.
Justice Department Issues Guidance on Federal Statutes Regarding Redistricting and Methods for Electing Public OfficialsRead the Press Release
Today the U.S. Department of Justice announced the release of a guidance document to ensure state, county, and municipal governments comply with Section 2 of the Voting Rights Act concerning redistricting maps and methods of electing governmental bodies following the release of the 2020 Census redistricting data.
“The right to vote is the right from which all other rights ultimately flow,” said Attorney General Merrick B. Garland. “Discriminatory redistricting schemes or election practices threaten that fundamental right and are illegal. The guidance issued today makes clear that jurisdictions must abide by federal laws when redrawing their legislative maps and that the Justice Department will vigilantly assess jurisdictions’ compliance with those laws during the redistricting cycle.”
“Our goal this redistricting season is simple: to ensure that new maps for city councils, school boards, county commissions, state legislatures, Congressional house seats and more do not discriminate on the basis of race, color or membership in a protected language minority group,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is using every tool in our arsenal to protect the right to vote for all Americans and to ensure that officials comply with federal voting laws during the decennial redistricting cycle now underway. This official guidance helps jurisdictions comply with the Voting Rights Act when redrawing electoral maps to ensure that all people have an equal and fair opportunity to elect representatives of their choice.”
The guidance document discusses how the department will conduct its review of these redistricting plans and methods of electing governmental bodies to evaluate compliance with Section 2 of the Voting Rights Act. The guidance document also describes how the department applies well-established case law while investigating and bringing enforcement actions under Section 2.
Today’s announcement follows Attorney General Garland’s recent commitment to expand the Justice Department’s efforts to safeguard voting rights. For a list of the department’s actions to protect voting rights, click here.
More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice’s website at www.justice.gov/crt/about/vot.
Members of the public are encouraged to send any complaints or comments regarding possible violations of the federal voting rights laws to the Voting Section. This can include complaints or comments about methods of election or districting plans that may violate Section 2 of the Voting Rights Act. Complaints and comments about discriminatory voting practices may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
For the guidance document on redistricting, click here.
Justice Department Announces First Federal Agents to Use Body-Worn CamerasRead the Press Release
Today, the Department of Justice announced the launch of the first phase of its Body-Worn Camera Program that requires department law enforcement personnel use body-worn cameras (BWCs) during pre-planned law enforcement operations. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Phoenix and Detroit Field Divisions began using BWCs today during these pre-planned operations. Over the course of the next several weeks, the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI) and the U.S. Marshals Service (USMS) will begin the first phase of their BWC programs. The department’s plans include a phased implementation of BWCs, and rely upon Congress to secure the necessary funding to equip agents nationwide with BWCs.
“Keeping our communities safe is a top priority for the Justice Department,” said Attorney General Merrick B. Garland. “Law enforcement is at its most effective when there is accountability and trust between law enforcement and the community. That is why we have expanded our body worn camera program to our federal agents, to promote transparency and confidence, not only with the communities we serve and protect, but also among our state, local and Tribal law enforcement partners who work alongside our federal agents each day.”
“The Department of Justice recognizes the importance of transparency and accountability in its law enforcement operations,” said Deputy Attorney General Lisa Monaco. “Because there are circumstances where the use of force may occur during planned law enforcement operations, we are committed to the use of body-worn cameras by DOJ law enforcement agents in such circumstances. I am proud of the job performed by the department’s law enforcement agents, and I am confident that these policies will continue to engender the trust and confidence of the American people in the department’s work.”
“ATF welcomes the use of body worn cameras by our agents,” said Acting Director Marvin G. Richardson of the ATF. “The department’s policy reflects ATF’s commitment to transparency as we work to reduce firearm violence in our communities.”
“The Drug Enforcement Administration is committed to the safety and security of the people we serve, our agents, and task force officers,” said Administrator Anne Milgram of the DEA. “We welcome the addition of body worn cameras and appreciate the enhanced transparency and assurance they provide to the public and to law enforcement officers working hard to keep our communities safe and healthy.”
“The FBI remains committed to meeting the need for transparency,” said FBI Director Christopher Wray. “Phasing in the use of BWCs is another, important way for us to meet that need.”
“Every day USMS task forces lawfully apprehend violent criminals with the utmost professionalism," said Director Donald Washington of the U.S. Marshals Service. "We continue striving to fortify the public’s trust in our responsibility to uphold the rule of law while keeping communities safe as we have for more than two centuries. Body worn cameras increase the transparency of law enforcement activities, and we will work to obtain the necessary resources to fully execute our body-worn camera program. As we do so, Deputy United States Marshals – along with thousands of local task force officers on USMS-led task forces – will continue to safeguard communities from violent criminals, drug traffickers and threats of terrorism. These interagency task force operations are crucial to public safety.”
On June 7, based on recommendations from the Department’s law enforcement components, Deputy Attorney General Lisa Monaco directed the ATF, DEA, FBI and USMS to develop individualized comprehensive policies that require agents to wear and activate BWC recording equipment for purposes of recording their actions during: (1) a pre-planned attempt to serve an arrest warrant or other pre-planned arrest, including the apprehension of fugitives sought on state and local warrants; or (2) the execution of a search or seizure warrant or order. Consistent across each of these policies is a presumption that BWC recordings depicting conduct resulting in serious bodily injury or death of another will be released as soon as practical.
The use of BWCs by federal agents builds upon the department’s October 2019 pilot program and October 2020 policy announcement to permit federally deputized task force officers to activate BWCs during these pre-planned law enforcement operations. Since October 2020, ATF, DEA, FBI and USMS have been integrating the use of BWCs on federal task forces around the nation. The department continues to encourage participating task force agencies to contact the sponsoring federal agency for more information about their BWC program.
Former Long Island Construction Business Owner Sentenced to Prison for Employment Tax FraudRead the Press Release
A Long Island, New York, business owner in the construction industry was sentenced to one year and one day in prison yesterday for employment tax fraud.
According to court documents and statements made in court, Edward Hansen owned and operated a steel erection businesses in Suffolk County. From 2008 to 2011, the IRS assessed more than $480,000 in penalties against Hansen for his failure to pay over employment taxes on behalf of several of these businesses. In the spring of 2011, after receiving another notification from IRS that he was liable for payroll taxes, Hansen closed County Steel Inc. and proceeded to operate the same steel erection business under the name BR-Teck. Hansen made another individual the nominal “President” of BR-Teck. Hansen, however, continued to operate the business and continued to not pay over employment taxes. From January 2012 through June 2017, Hansen did not pay the IRS more than $950,000 in payroll taxes withheld from the wages of BR-Teck’s employees.
In addition to the term of imprisonment, U.S. District Judge Denis R. Hurley ordered Hansen to serve two years of supervised release and to pay a $5,000 fine.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Kathryn Sparks and former Trial Attorneys Abigail Burger Chingos and Jeffrey B. Bender of the Tax Division prosecuted the case.
El Departamento de Justicia llega a un acuerdo con las escuelas públicas de Newark para proteger a los estudiantes de inglésRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy un acuerdo de conciliación con las escuelas públicas de Newark para resolver la investigación que realizó el Departamento sobre los programas que ofrece el distrito escolar a sus estudiantes de inglés. El acuerdo pone fin a la práctica habitual y de larga duración por parte del distrito de sacar a los estudiantes de los programas para aprender inglés antes de que dominen el idioma. El distrito ha acordado mejorar los servicios para estudiantes de inglés de manera que puedan acceder a las mismas oportunidades educativas que los demás estudiantes de las escuelas públicas de Newark.
La investigación que realizó el Departamento durante varios años reveló una gran cantidad de fallos que impedían atender adecuadamente a los estudiantes de inglés. El Departamento descubrió que el distrito no contrató ni conservó a suficientes maestros cualificados para respaldar su programa, lo que dio como resultado que algunos estudiantes recibieran un tiempo limitado de instrucción y que otros no recibieran ningún tipo de servicio lingüístico. La División de Derechos Civiles y la Fiscalía Federal del Distrito de Nueva Jersey realizaron esta investigación en virtud de la Ley de Igualdad de Oportunidades Educativas de 1974.
“Los distritos escolares deben proporcionar servicios eficaces para los estudiantes de inglés, de modo que todos los estudiantes puedan crear su propio sueño americano”, dijo Kristen Clarke, fiscal general auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Seguiremos luchando para garantizar el cumplimiento de nuestras leyes federales de derechos civiles mientras defendemos el derecho de todos los estudiantes a la igualdad de oportunidades educativas en todo nuestro país. Los amplios requisitos de este acuerdo de conciliación crearán un cambio duradero y proporcionarán acceso a la educación a miles de estudiantes de inglés en Newark”.
“Nuestra oficina apoya firmemente los derechos civiles de todos los estudiantes, incluidos los estudiantes de inglés”, dijo Rachael A. Honig, la fiscal de los EE. UU. en funciones del distrito de Nueva Jersey. “Nos complace que la Junta de Educación de Newark haya aceptado asumir plenamente su obligación de satisfacer las necesidades lingüísticas de sus estudiantes de inglés y de resolver las graves violaciones a la ley federal descubiertas durante esta investigación. Seguiremos exigiendo a los distritos escolares y a otras agencias educativas que se responsabilicen para que todos los estudiantes de Nueva Jersey puedan acceder a las mismas oportunidades educativas”.
El Departamento de Justicia supervisará la implementación del acuerdo de conciliación por parte del distrito durante al menos tres cursos escolares completos hasta que el distrito haya cumplido plenamente con sus obligaciones.
Nota: Aquí puede consultar una copia completa del acuerdo de conciliación en inglés.
Este comunicado de prensa también está disponible en español, portugués, criollo haitiano y francés.
La aplicación de la Ley de Igualdad de Oportunidades Educativas de 1974 es una de las principales prioridades de la División de Derechos Civiles y de la Oficina del Fiscal de los Estados Unidos para el Distrito de Nueva Jersey. Puede encontrar más información sobre la División de Derechos Civiles del Departamento de Justicia en su sitio web www.justice.gov/crt, y más información sobre el trabajo de la Sección de Oportunidades Educativas en https://www.justice.gov/crt/educational-opportunities-section. El público puede denunciar posibles violaciones de los derechos civiles en https://civilrights.justice.gov/report/, con la Oficina del Fiscal de los Estados Unidos para el Distrito de Nueva Jersey en http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint o puede llamar a la línea directa de derechos civiles de la Oficina del Fiscal de los Estados Unidos al (855) 281 - 3339.
Depatman Jistis etabli ak lekòl piblik Newark pou pwoteje elèv k ap aprann anglè yoRead the Press Release
WACHINTONN – Jodi a, ministè lajistis te anonse yon akò règleman avèk lekòl piblik Newark yo pou mete yon bout nan ankèt ministè a sou pwogram, distrik eskolè a pou elèv li yo k ap aprann anglè. Akò a mete yon bout nan ansyen pratik ak depi lontan distrik lan ki vize pou retire elèv pwogram aprantizaj anglè yo avan yo pale lang sa byen. Distrik la te aksepte amelyore sèvis yo pou elèv k ap aprann anglè pou yo kapab gen aksè ak menm opòtinite edikativ menm jan ak lòt elèv lekòl piblik Newark yo.
Ankèt plizyè ane ministè a te montre gwo mankman nan sa ki konsène sèvis pou elèv k ap aprann anglè yo. Depatman an te dekouvri distrik la pa t reyisi bay ase anseyan kalifye travay epi kenbe yo pou yo soutni pwogram li an, sa ki te gen kòm konsekans yon tan edikasyon ki limite pou kèk elèv, epi pou lòt yo, pa gen okenn sèvis lengistik ditou. Divizyon dwa sivil yo ak biwo pwokirè Etazini an pou distrik New Jersey a te ankete selon lalwa 1974 la sou egalite chans yo nan sa ki gen pou wè ak edikasyon.
“Distrik eskolè yo dwe bay sèvis efikas ak moun k ap aprann anglè yo, sa k ap pèmèt tout elèv yo kapab reyalize pwòp rèv ameriken yo”, se sa asistant pwokirè jeneral la Kristen Clarke, pou divizyon dwa sivil yo nan ministè lajistis te deklare. “Nou pral kontinye batay pou asire respè lwa federal nou yo sou dwa sivil yo, tout pandan n ap defann dwa chak elèv ak egalite chans yo nan sa ki konsène edikasyon nan tout peyi a. Obligasyon total akò sa sou règleman an pral kreye yon chanjman dirab epi pral bay aksè ak edikasyon ak plizyè milye elèv k ap aprann anglè nan Newark”.
“Biwo nou an ap soutni avèk fòs dwa sivil tout etidyan yo, ak sa ki ap aprann anglè yo”, se sa Rachael A. Honig, pwokirè ameriken pwovizwa pou distrik New Jersey a te deklare. “Nou kontan Konsèy Edikasyon Newark la te aksepte pran an chaj san rezèv obligasyon li an pou reponn ak bezwen lengistik moun pa li yo k ap aprann anglè epi rezoud gwo vyolasyon lwa federal yo te dekouvri pandan ankèt sa. Nou pral kontinye mande kont ak distrik eskolè yo ak lòt òganizasyon edikativ, sa k ap pèmèt tout elèv New Jersey yo benefisye yon aksè san fòs kote ak opòtinite edikativ yo”.
Ministè Lajisits pral siveye jan akò règleman distrik la pral kòmanse pandan pou pi piti twa ane eskolè konplè, jiskaske distrik la konfòme l ak obligasyon li yo an antye.
Nòt : Yon kopi konplè akò règleman an kapab konsilte isit la an anglè.
Kominike pou laprès sa disponib tou an espanyòl, pòtigè, kreyòl ayisyen ak fransè.
Aplikasyon lalwa 1974 la sou egalite chans yo nan sa ki konsène edikasyon se yon priyorite total pou Divizyon dwa sivil yo ak biwo pwokirè Etazini an pou distrik New Jersey a. Enfòmasyon anplis yo sou Divizon dwa sivil yo pou ministè Lajisits disponib sou sit wèb li an nan adrès www.justice.gov/crt, ak enfòmasyon anplis yo sou travay Seksyon opòtinite edikativ yo disponib nan adrès https://www.justice.gov/crt/educational-opportunities-section. Manm piblik yo kapab siyale vyolasyon dwa sivil pwobab yo nan adrès https://civilrights.justice.gov/report/ oswa nan biwo pwokirè a pou distrik New Jersey nan adrès http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint oswa rele liy asistans telefonik la pou dwa sivil yo nan biwo pwokirè a nan (855) 281 - 3339.
Justice Department Finds that Conditions at the San Luis Obispo County Jail in California Violate the ConstitutionRead the Press Release
A Justice Department report released today found that San Luis Obispo County (California) Jail violated the rights of prisoners by, among other things, failing to provide adequate medical care and subjecting some prisoners to excessive uses of force. The report calls upon the jail to make changes to address the constitutional violations found during an investigation. The U.S. Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Central District of California conducted the investigation.
The Justice Department concluded that there is reason to believe that the practices at the jail violate the Eighth and Fourteenth Amendments of the Constitution and the Americans with Disabilities Act (ADA). Specifically, the department concluded that there is reasonable cause to believe that the jail fails to provide constitutionally adequate medical and mental health care to prisoners; that the jail violates the constitutional rights of prisoners with serious mental illness through its prolonged use of restrictive housing; that the jail violates the constitutional rights of prisoners through the use of excessive force; and that the jail violates the ADA by denying prisoners with mental health disabilities access to services, programs and activities because of their disabilities.
As required by the Civil Rights of Institutionalized Persons Act (CRIPA), the department provided the facility with written notice of the supporting facts for these findings and the minimum remedial measures necessary to address them.
“Our Constitution guarantees that all people held in jails and prisons across our country are treated humanely, and that includes providing access to necessary medical and mental health care,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “After a comprehensive investigation, we found that San Luis Obispo Jail harms the people it incarcerates by subjecting them to excessive force and by failing to provide adequate medical and mental health care. The Justice Department hopes to continue to work with the jail to resolve these systemic problems.”
“San Luis Obispo County violated the rights of prisoners in its jail in several ways, including failing to provide adequate health care and subjecting some prisoners to excessive force,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “Our office is dedicated to defending the civil rights of everyone in this district, including those behind bars.”
The Civil Rights Division and the U.S. Attorney’s Office for the Central District of California initiated the investigation in October 2018 under CRIPA and Title II of the ADA, which authorize the department to take action to address a pattern or practice of deprivation of legal rights of individuals confined to state or local government-run correctional facilities. Individuals with relevant information are encouraged to contact the department by phone at (844) 710-4900, or by email at [email protected].
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt.
Additional information about the Civil Rights Section of the U.S. Attorney’s Office is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights. You can contact the Civil Rights Section by emailing [email protected] or calling (213) 894-2879. You can also report civil rights violations to the Section by completing the complaint form available at https://www.justice.gov/usao-cdca/file/1560286/download.
Readout of Associate Attorney General Vanita Gupta's Call with European Commission Executive Vice-President Margrethe VestagerRead the Press Release
U.S. Associate Attorney General Vanita Gupta this morning spoke with European Commission Executive Vice-President Margrethe Vestager. In their inaugural conversation, the two leaders discussed the Justice Department and European Commission’s mutual interest in promoting competition in a fair, global marketplace and building stronger transatlantic cooperation on justice issues and antitrust enforcement.
They also discussed important ongoing investigations, digital market cases, and policy proposals. Associate Attorney General Gupta also conveyed Attorney General Garland’s strong commitment to an aggressive antitrust enforcement program.
The two leaders agreed to continue to work together to share expertise and ideas between the department and European Commission staff and to deepen cooperation that will benefit the people and economies of both jurisdictions.
Justice Department and Office of the Comptroller of the Currency Announce Actions to Resolve Lending Discrimination Claims Against Cadence BankRead the Press Release
The Justice Department and the Office of the Comptroller of the Currency (OCC) today announced coordinated actions to address allegations of lending discrimination by Cadence Bank N.A.
The department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Georgia announced an agreement to resolve allegations that Cadence Bank, which is headquartered in Atlanta, engaged in lending discrimination by “redlining” predominantly Black and Hispanic neighborhoods in the Houston, metro area. Under the department’s settlement, Cadence will invest over $5.5 million to increase credit opportunities for residents of those neighborhoods. “Redlining” is an illegal practice in which lenders avoid providing services to individuals living in communities of color because of the race, color or national origin of the people who live in those communities.
Additionally, Cadence’s prudential regulator, the OCC, announced today that it has assessed penalties against the bank in the amount of $3 million related to the violations alleged in the department’s complaint. The department opened its investigation after the OCC referred the matter.
The Justice Department’s settlement will resolve a lawsuit filed today in the U.S. District Court for the Northern District of Georgia. In its complaint, the department alleges that Cadence 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. Specifically, the complaint alleges that, from 2013 to 2017, Cadence engaged in unlawful redlining in the Houston area by avoiding predominantly Black and Hispanic neighborhoods because of the race, color and national origin of the people living in those neighborhoods. The department also alleges that Cadence’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 and that the bank’s outreach and marketing avoided those neighborhoods.
“When banks fail to provide equal access to credit in communities of color, they violate our civil rights laws and they deprive people in those communities of the opportunity to build wealth,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Redlining is an illegal practice that has far-reaching consequences for people of color, their families and for the neighborhoods where they live. The Civil Rights Division will continue to enforce our nation’s fair lending laws to ensure that qualified applicants and borrowers can access credit and invest in their financial futures without facing unlawful barriers.”
“There is no place for discrimination in the federal banking system,” said Acting Comptroller of the Currency Michael J. Hsu. “The OCC will use the full force of our authority to correct fair lending violations with our supervisory and enforcement tools, including civil money penalties, cease and desist orders, and requiring restitution for customers harmed as a result of any discriminatory practices.”
“The Fair Housing Act and Equal Credit Opportunity Act are intended to provide equal treatment for all people in their pursuit of home ownership and financing,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “This case highlights the need for vigilance in addressing practices which treat certain communities unfairly and has led to an agreement with Cadence Bank intended to improve the fairness of its business practices and to make remedial financial investments in the negatively impacted communities. This office will continue in its efforts to eliminate housing and credit discrimination.”
Under the department’s settlement, which was approved by the District Court on Aug. 31, 2021, Cadence will invest $4.17 million in a loan subsidy fund for residents of predominantly Black and Hispanic neighborhoods in the Houston area, $750,000 for development of community partnerships to provide services that increase access to residential mortgage credit in those neighborhoods, and at least $625,000 for advertising, outreach, consumer financial education, and credit repair initiatives. The bank will dedicate at least four mortgage loan officers to majority-Black and Hispanic neighborhoods in Houston and open a new branch in one of those neighborhoods. Cadence will employ a director of community lending and development who will oversee these efforts and work in close consultation with the bank’s leadership. The bank will take these steps in addition to other fair lending measures it has already put in place.
Cadence Bank’s assets total over $18 billion. In addition to Texas, the bank has branches in Alabama, Florida, Georgia, Mississippi and Tennessee. Its mortgage lending in the Houston area accounts for approximately 40 percent of its total home mortgage business.
The department’s Civil Rights Division and the OCC have long been engaged in work 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. In January 2021, President Biden reaffirmed the critical role of the federal government in addressing legacies of housing segregation and discrimination, declaring that it is the policy of this Administration to eliminate “racial bias and other forms of discrimination in all stages of home-buying and renting.” See Memorandum on Redressing Our Nation’s and the Federal Government’s History of Discriminatory Housing Practices and Policies, The White House (Jan. 26, 2021).
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. 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.
Justice Department and EPA Reach Clean Air Act Settlement with Gear Box Z for Selling Defeat DevicesRead the Press Release
Arizona-based Gear Box Z (GBZ) has agreed to stop manufacturing and selling aftermarket automotive products widely known as “defeat devices,” that, when installed, bypass, defeat or render inoperative Environmental Protection Agency (EPA)-certified emission controls on motor vehicles thereby increasing emissions and harming air quality.
In January 2020, the United States sued GBZ, which manufactured and sold thousands of defeat devices, alleging that these devices violated the Clean Air Act (CAA). In March 2021, the court found that the United States would likely prevail on the merits of its case that GBZ’s products are defeat devices, and issued a preliminary injunction ordering GBZ to immediately halt the illegal sale of the devices. In its decision, the court found that the continued selling of these defeat devices would cause irreparable harm by increasing motor vehicle emissions that impair human health and the environment.
“This lawsuit and settlement show that the United States will vigorously enforce the Clean Air Act, including its prohibition of illegal devices that disable emission controls and harm the environment and public health,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD).
“Defeat devices in automobiles and trucks can significantly increase emissions of hazardous air pollutants,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “Businesses manufacturing and selling illegal aftermarket defeat devices should take note that this is a priority enforcement focus for EPA and we will continue to actively investigate these violations of the Clean Air Act.”
The settlement prohibits GBZ from manufacturing and selling any defeat devices; it also bars GBZ and its owners from selling or transferring any intellectual property associated with these products, providing technical support for these products, and investing in or obtaining revenue from other companies’ manufacture and sales of defeat devices. Under the settlement, GBZ and its owners will pay a civil penalty of $10,000, which was based on their financial situation.
Tampering with diesel-powered vehicles by installing defeat devices can cause large amounts of nitrogen oxide (NOx) and particulate matter emissions, both of which contribute to serious public health problems. EPA expects that GBZ’s defeat devices will cause excess NOx and particulate matter emissions over the anticipated remaining life of the diesel pickup trucks equipped with them. By stopping the manufacture and sale of these products, this settlement will prevent harmful emissions from diesel trucks that, if outfitted with GBZ’s products, would pollute far more than the regulations allow. Such emissions can cause premature death, aggravation of respiratory and cardiovascular disease, aggravation of existing asthma, acute respiratory symptoms, chronic bronchitis, and decreased lung function. Numerous studies also link diesel exhaust to increased incidence of lung cancer. Respiratory issues disproportionately affect families, especially children, living in underserved communities overburdened by pollution. Stopping the sale and use of defeat devices will help prevent harmful air pollution that exacerbates the health effects of pollutant exposures.
Stopping the manufacture, sale, and installation of defeat devices on vehicles and engines used on public roads as well as on nonroad vehicles and engines is a priority for EPA. To learn more, visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The consent decree for this settlement was lodged in the U.S. District Court for the District of Arizona and is subject to a 30-day public comment period and final court approval. A copy of the decree, and information on submitting comments will be available on the Department of Justice website at: www.justice.gov/enrd/consent-decrees.
For more information on this settlement: https://www.epa.gov/enforcement/gear-box-z-inc-clean-air-act-settlement.
If you suspect someone is manufacturing, selling, or installing illegal defeat devices, or is tampering with emission controls, tell the EPA by writing to [email protected]
El Departamento de Justicia y la Oficina del Controlador de la Moneda anuncian medidas para resolver reclamaciones de discriminación en el ámbito crediticio contra el banco Cadence BankRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia y la Oficina del Controlador de la Moneda (OCC, por sus siglas en inglés) anunciaron hoy una serie de medidas coordinadas para hacer frente a alegaciones de discriminación en el ámbito crediticio por parte del banco Cadence Bank, N.A. La División de Derechos Civiles del Departamento y la Fiscalía Federal para el Distrito Norte de Georgia anunciaron un acuerdo para la resolución de alegaciones de que Cadence Bank, con sede en Atlanta, Georgia, discriminó en el ámbito crediticio al «excluir» a barrios cuyos residentes son principalmente negros e hispanos en la zona metropolitana de Houston, Texas. Conforme la conciliación del Departamento, Cadence invertirá más de $5.5 millones para aumentar el número de oportunidades crediticias de residentes de aquellos barrios. La «exclusión» es una práctica ilegal en la que prestamistas evitan la prestación de servicios a individuos que viven en comunidades de color por motivos de la raza, el color de piel o el origen nacional de las personas que viven en tales comunidades.
Además, el regulador prudencial de Cadence, la OCC, anunció hoy que ha aplicado una sanción al banco por un importe que asciende a $3 millones, en conexión con las infracciones alegadas en la demanda del Departamento. Después de que la OCC refirió el asunto, el Departamento inició su investigación.
El acuerdo del Departamento de Justicia resolverá un pleito entablado hoy ante el Tribunal Federal de Distrito para el Distrito Norte de Georgia. En su demanda, el Departamento alega que Cadence Bank vulneró la ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito, las que prohíben que las instituciones financieras discriminen a los individuos por motivos de su raza, color de piel u origen nacional en sus servicios de financiación hipotecaria. En concreto, la denuncia alega que, entre el 2013 y el 2017, Cadence empleó medidas ilegales de exclusión en la zona de Houston al evitar barrios cuyos residentes eran principalmente negros o hispanos, por motivos de la raza, el color de piel o el origen nacional de las personas que vivían en tales barrios. Asimismo, el Departamento alega que las sucursales de Cadence estaban concentradas en barrios donde la mayoría eran blancos, que los oficiales de crédito del banco no satisfacían las necesidades de barrios donde la mayoría eran negros o hispanos y que el alcance y mercadeo del banco evitaban esos barrios.
«Cuando los bancos no facilitan la igualdad de acceso al crédito en comunidades de color, están vulnerando nuestras leyes de derechos civiles y privando a la gente en esas comunidades de la oportunidad de generar riqueza», afirmó Kristen Clarke, la Fiscal Federal Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La exclusión es una práctica ilegal que tiene consecuencias de gran alcance para personas de color, sus familias y los barrios en los que viven. La División de Derechos Civiles seguirá haciendo cumplir las leyes de préstamos justos para asegurar que solicitantes y prestatarios cualificados puedan acceder al crédito e invertir en sus futuros financieros sin enfrentarse a barreras ilegales».
«No hay lugar para la discriminación en el sistema bancario federal», declaró el Controlador Interino de la Moneda, Michael J. Hsu. «La OCC empleará toda la fuerza de nuestra autoridad para corregir infracciones de las leyes de préstamos justos mediante nuestras herramientas de supervisión y aplicación, entre ellas sanciones civiles monetarias, ordenes de cese y requerir restitución para consumidores perjudicados como resultado de cualquier práctica discriminatoria que hubiese».
«El propósito de ley de Vivienda Justa y la ley de Igualdad de Oportunidades de Crédito es tratar por igual a todo individuo durante el proceso de comprar y financiar una casa», dijo el Fiscal Federal Interino para el Distrito Norte de Georgia, Kurt R. Erskine. «Este caso resalta la necesidad de vigilancia a la hora de abordar prácticas que tratan a ciertas comunidades de una forma injusta y ha llevado a un acuerdo con Cadence Bank, el propósito del cual es mejorar la justicia de sus prácticas empresariales y realizar inversiones financieras correctivas en las comunidades impactadas. Esta oficina seguirá luchando por eliminar la discriminación en la vivienda y el ámbito crediticio».
Conforme la conciliación del Departamento, que fue aprobada por el Tribunal Federal de Distrito el 31 de agosto del 2021, Cadence invertirá $4.17 millones en un fondo de préstamos subsidiados para residentes de barrios en la zona de Houston cuyos residentes son principalmente negros o hispanos, $750,000 en la formación de alianzas comunitarias para la prestación de servicios que mejoran el acceso a créditos hipotecarios residenciales en esos barrios y al menos $625,000 en iniciativas de publicidad, alcance comunitario, educación financiero para el consumidor y reparaciones de crédito. El banco dedicará al menos cuatro oficiales de crédito hipotecario a barrios de mayoría negra o hispana en Houston y abrirá una nueva sucursal en uno de esos barrios. Cadence empleará a un director de desarrollo y préstamos comunitarios que supervisará estos esfuerzos y trabajará en estrecha consulta con el liderazgo del banco. El banco tomará estas medidas, además de otras medidas de préstamos justos que ya ha implementado.
Los activos de Cadence Bank ascienden a más de $18 mil millones. Además de Texas, el banco tiene sucursales en Alabama, Florida, Georgia, Mississippi y Tennessee. Sus préstamos hipotecarios en la zona de Houston representan aproximadamente el 40 por ciento de sus negocios hipotecarios residenciales.
La División de Derechos Civiles del Departamento y la OCC han trabajado durante mucho tiempo para hacer que todo estadounidense pueda acceder al crédito hipotecario bajo las mismas condiciones, independientemente de su raza u origen nacional o del barrio en que vive. En enero del 2021, el presidente Biden reafirmó el papel crítico del gobierno federal en enfrentar legados de segregación y discriminación en la vivienda y declaró que su gobierno tiene la política de eliminar «sesgos racionales y otros tipos de discriminación en todas las fases del alquiler y la compra de una vivienda». Véase el Memorando sobre la Reparación de la historia de nuestro país y gobierno federal de prácticas y políticas discriminatorias en la vivienda, la Casa Blanca (26 de enero del 2021).
La aplicación del Departamento de Justicia de las leyes de préstamos justos la dirige la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Para más información sobre los esfuerzos de la Sección por hacer cumplir las leyes de préstamos justos, vaya a www.justice.gov/fairhousing. Los individuos pueden denunciar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregando un informe en línea.
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Commercial Flooring Company Pleads Guilty to Antitrust and Money Laundering ChargesRead the Press Release
Mr. David’s Flooring International LLC (Mr. David’s), a Chicago-based commercial flooring contractor, pleaded guilty after being charged for its role in a long-running conspiracy to rig bids and fix prices for commercial flooring products and services, and for its role in a money laundering conspiracy involving kickbacks.
Mr. David’s agreed to pay at least a $1.2 million criminal fine for its role in the conspiracies. Mr. David’s is the third corporation charged in the ongoing investigation; five individuals have also been charged to date.
“We remain committed to prosecuting those who choose to subvert the competitive process and eliminate competition,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Today’s guilty plea — the eighth charge to date in the ongoing investigation — demonstrates our commitment to protect consumers and ensure they benefit from a competitive marketplace.”
“Price fixing has no place in a fair and open marketplace,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Division. “This guilty plea is another example of our firm commitment to safeguarding American citizens and businesses.”
According to a two-count felony charge filed in the U.S. District Court in Chicago, Illinois, Mr. David’s conspired with other companies to rig bids for commercial flooring by agreeing which company would win the bid, and which would submit a complementary, intentionally-losing bid. Mr. David’s participated in the conspiracy from at least as early as 2009 until at least June 22, 2017.
The second count charges Mr. David’s with conspiring to launder money to conceal kickback payments the company made to Carter Brett, an account executive for a large flooring manufacturer, in exchange for unauthorized discounts. According to the charge, Mr. David’s issued checks to a shell corporation established by Brett for the sole purpose of receiving the illegal kickback payments, and Mr. David’s and its co-conspirators carried out the conspiracy from at least as early as 2013 until as late as June 13, 2018.
A violation of the Sherman Act carries a statutory maximum penalty of a $100 million criminal fine for corporations. The maximum 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. Conspiring to commit money laundering carries a statutory maximum penalty of $500,000. The maximum fine may be increased to twice the value of the property involved in the money laundering transactions, if that amount is greater than the statutory maximum fine.
The charges are the result of an ongoing federal antitrust investigation into bid rigging, price fixing and other anticompetitive conduct in the commercial flooring industry conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Division.
Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Attorney General Garland Issues Statement on 2020 FBI Hate Crimes in the United States StatisticsRead the Press Release
Attorney General Merrick B. Garland issued the following statement on the FBI’s announcement of the 2020 Hate Crimes Statistics:
“Preventing and responding to hate crimes and hate incidents is one of the Justice Department’s highest priorities. The FBI Hate Crime Statistics for 2020 demonstrates the urgent need for a comprehensive response.
“Last year saw a 6.1% increase in hate crime reports, and in particular, hate crimes motivated by race, ethnicity and ancestry, and by gender identity. These numbers confirm what we have already seen and heard from communities, advocates and law enforcement agencies around the country. And these numbers do not account for the many hate crimes that go unreported.
“These statistics show a rise in hate crimes committed against Black and African-Americans, already the group most often victimized. Notably, they show a rise in hate crimes committed against members of the Asian-American Pacific Islander community. This also confirms what we have seen and heard through our work and from our partners.
“These hate crimes and other bias-related incidents instill fear across entire communities and undermine the principles upon which our democracy stands. All people in this country should be able to live without fear of being attacked or harassed because of where they are from, what they look like, whom they love or how they worship.
“Our commitment to investigating and prosecuting hate crimes is deeply rooted in the department’s founding. At my direction, the department has rededicated itself to combating unlawful acts of hate, including by improving incident reporting, increasing law enforcement training and coordination at all levels of government, prioritizing community outreach and making better use of civil enforcement mechanisms. All of these steps share common objectives: deterring hate crimes and bias-related incidents, addressing them when they occur, supporting those victimized by them and reducing the pernicious effects these incidents have on our society.”
More information about the department’s response to hate crimes is available at https://www.justice.gov/hatecrimes. For more information on the department’s actions to combat hate crimes, click here.
William T. Mantanona Sentenced to 6 months Imprisonment for False Statement to a Federal AgentRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands announced that defendant William Topasna Mantanona, age 65, from Chalan Pago, Guam was sentenced in the United States District Court of the Guam to six months imprisonment for False Statement in violation of 18 U.S.C. §§ 1001(a)(2) and 2. The Court also ordered two years of supervised release following imprisonment, a mandatory $5,000 fine, and $100 special assessment fee.
During November 2018, the matter of United States v. Raymond John Martinez and Juanita Marie Quitugua Moser, Criminal Case No. 15-00031, went to trial before the United States District Court for the District of Guam. William T. Mantanona contacted a juror in an effort to affect the outcome of the trial. Federal agents recorded conversations of this activity between Mantanona and a third party. A mistrial was later declared after jurors were unable to reach an agreement on a verdict. Agents then questioned Mantanona, who provided a false statement concerning the juror interference. Mantanona stated that he never discussed a not guilty vote with a specific juror in the ongoing trial knowing full well that this statement was false. The United States Attorney’s Office referred the case involving Martinez and Moser to the Central District of California for prosecution, which resulted in convictions.
United States Attorney Anderson stated, “The United States Constitution provides for a speedy and public trial by an impartial jury. Although this Sixth Amendment right protects criminal defendants, the public also has an interest in fair and impartial court proceedings. Mantanona’s conduct was an affront to this basic concept of the rule of law. Such conduct taints our well-placed faith in trial by jury. This matter was therefore worthy of aggressive prosecution. Our office applauds the great work by the FBI and HSI, as well as the Court’s strong message of accountability.”
FBI Honolulu Division Special Agent in Charge Steven Merrill stated that, "Today's sentencing of William Mantanona sends a message that any attempt to corrupt the system of justice, will be met with severe consequences. Mantanona's participation in a scheme to influence a juror threatened the integrity of court proceedings which are the foundation of our justice system. The FBI takes its mission of protecting the American public seriously. We are dedicated to conducting thorough investigations and are committed to ensuring the subjects of our investigations get a fair trial before a truly impartial jury."
This case was investigated by the Federal Bureau of Investigation and Homeland Security Investigations. The case was prosecuted by Rosetta San Nicolas, Assistant United States Attorney in the District of Guam.
Louisiana Doctor Indicted for Illegally Dispensing over One Million Doses of Opioids and for $5.1 Million Health Care Fraud SchemeRead the Press Release
A federal grand jury in New Orleans, Louisiana, returned an indictment today charging a Louisiana physician for his role in distributing over 1,200,000 doses of Schedule II controlled substances, including oxycodone and morphine, outside the scope of professional practice and not for a legitimate medical purpose, and for maintaining his clinic for the purpose of illegally distributing controlled substances. Today’s indictment also charges the physician with defrauding health care benefit programs, including Medicare, Medicaid, and Blue Cross and Blue Shield of Louisiana, of more than $5,100,000, given that the opioid prescriptions were filled using health insurance benefits.
According to court documents, Adrian Dexter Talbot, M.D., 55, of Slidell, owned and operated a medical clinic located in Slidell that accepted cash payments from individuals seeking prescriptions for Schedule II controlled substances. In 2015, Talbot took a full-time job in Pineville, Louisiana, and although he was no longer physically present at the Slidell clinic, he pre-signed prescriptions to be distributed to individuals there without seeing or examining those individuals. In 2016, Talbot hired another practitioner who also pre-signed prescriptions to be distributed in the same manner at the Slidell clinic. With Talbot’s knowledge, individuals were filling their prescriptions that were issued outside the scope of professional practice and not for a legitimate medical purpose using their insurance benefits, thereby causing health care benefit programs to be fraudulently billed for filling prescriptions that were written without an appropriate patient examination or determination of medical necessity for the prescription.
Talbot is charged with one count each of conspiracy to unlawfully distribute and dispense controlled substances, maintaining a drug-involved premises and conspiracy to commit health care fraud, as well as four counts of unlawfully distributing and dispensing controlled substances. The defendant is scheduled for his initial court appearance Sept. 10 before U.S. Magistrate Judge Michael B. North of the U.S. District Court for the Eastern District of Louisiana. If convicted, he faces a maximum penalty of 10 years for conspiracy to commit health care fraud and 20 years each for all other counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Duane A. Evans for the Eastern District of Louisiana; Special Agent in Charge Douglas A. Williams Jr. of the FBI’s New Orleans Field Office; Special Agent in Charge Miranda Bennett of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Jeffrey Breen for the Department of Veterans Affairs, Office of Inspector General (VA-OIG) made the announcement.
The FBI, HHS-OIG, VA-OIG, and the Louisiana Office of the Attorney General’s Medicaid Fraud Control Unit are investigating the case.
Trial Attorney Sara E. Porter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David Howard Sinkman of the Eastern District of Louisiana are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Deputy Attorney General Lisa Monaco Announces Creation of New Cyber Fellows PositionsRead the Press Release
Today, Deputy Attorney General Lisa Monaco announced the creation of a new Cyber Fellowship program, designed to develop a new generation of prosecutors and attorneys equipped to handle emerging national security threats.
“As we have witnessed this past year, cyber threats pose a significant and increasing risk to our national security, our economic security, and our personal security,” said Deputy Attorney General Monaco. “We need to develop the next generation of prosecutors with the training and experience necessary to combat the next generation of cyber threats. This Fellowship gives attorneys a unique opportunity to gain the well-rounded experience they need to tackle the full range of those threats.”
The creation of the Fellowship, which will be coordinated through the Criminal Division’s Computer Crime and Intellectual Property Section, is a recommendation from the department’s ongoing comprehensive cyber review, ordered by Deputy Attorney General Monaco this past May. The review is aimed at developing actionable recommendations to enhance and expand the Justice Department’s efforts against cyber threats.
Cyber Fellowship Details
The three-year Cyber Fellowship will provide selected attorneys experience combating emerging national security and criminal cyber threats, while rotating through multiple department components that protect the nation from cyber threats — including the Criminal Division, the National Security Division and the U.S. Attorneys’ Offices. Through this unique opportunity, Fellows will handle a broad range of the cyber cases performed by the department and gain a comprehensive understanding of the department’s response to emerging and critical threats. Fellows can expect to investigate and prosecute state-sponsored cyber threats; transnational criminal groups; infrastructure and ransomware attacks; and the use of cryptocurrency and money laundering to finance and profit from cyber-based crimes.
Incoming Fellows must agree to a three-year commitment to the program and be able to secure a Top Secret security clearance. All Fellows will be based in the Washington, D.C. area. Fellows may be extended or converted to permanent positions without further competition or may reapply to the Honors Program in a subsequent year provided they meet eligibility criteria. Alternatively, as they approach the end of their three-year term, Fellows may apply to permanent positions within the department that align with their interest.
Application Details
The first track of Cyber Fellowship applications will be accepted through the Justice Department’s Honors Program application portal, which can be found here. Applicants who have applied to or are in the process of applying to this year’s Honors Program should indicate that they would also like to be considered for the Cyber Fellowship. Candidates must meet Honors Program eligibility criteria to apply through the Honors application portal. The deadline for this first round is Sept. 8. Information regarding deadlines and eligibility to submit applications to the Cyber Fellowship through subsequent tracks is forthcoming.
Inquiries about the Cyber Fellowship can be submitted to [email protected].
Readout of Justice Department Leadership Meeting on Threats to Election WorkersRead the Press Release
Today, Attorney General Merrick B. Garland convened a virtual discussion with a bipartisan group of over 1,400 election officials to discuss mounting and persistent threats to the safety of election officials and workers across the country, and the Justice Department’s recently launched Election Threats Task Force. Attorney General Garland was joined by Deputy Attorney General Lisa O. Monaco; Associate Attorney General Vanita Gupta; and Director of the FBI Christopher A. Wray.
Attorney General Garland reiterated that the right to vote is the foundation of our democracy, and the right from which all other rights flow. Our democracy depends on protecting the right of eligible voters to vote, and also on protecting those who administer and safeguard our electoral system. He made clear that the Justice Department will not tolerate threats to, or intimidation of, election officials and election workers, and that the Department is committed to supporting them as they fulfill their public duties. Attorney General Garland also stressed that communication between federal law enforcement and election officials is key to combating threats, and that meetings like today’s are an integral part of fostering strong working relationships. His full remarks are available here.
Announced by Deputy Attorney General Monaco in June, the Election Threats Task Force is composed of the Department’s Criminal Division’s Public Integrity Section, the Civil Rights Division’s Voting and Criminal Sections, and the National Security Division’s Counterterrorism Section, as well as the FBI’s Criminal Investigative Division and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency. Deputy Attorney General Monaco provided an overview of how the Task Force unites subject matter experts from those offices and agencies to engage with state and local election agencies to better understand and deter threats to elections.
Associate Attorney General Gupta further elaborated on how the Civil Rights Division is participating in the Task Force and working more broadly to protect the right to vote and our country’s electoral processes. She also made participants aware of VictimConnect, a weekday helpline funded by the Office of Victims of Crime that connects victims of crimes and threats to trained professionals who can provide emotional support, information and referrals in over 200 languages by calling or texting 1-855-484-2846 (855-4VICTIM).
Director Wray explained how the FBI’s Election Crimes Coordinators — FBI Special Agents across all 56 FBI Field Offices — work with state and local election officials on election crime matters. He also stressed the importance of reporting all election-related threats and troubling communications to the FBI, even if it is unclear whether there is a violation of federal law, so that law enforcement can investigate, identify trends and share information with partners across the country.
Elections officials, including three secretaries of state, a state election director, and a county election supervisor had the opportunity to address and ask questions of the Attorney General and the Department leadership. The meeting ended with a firm reminder that the Department, through this Task Force, will use all available tools to protect the individuals working tirelessly to serve the public and maintain our proud tradition of free and fair elections.
To report suspected election related threats or violent acts, contact the FBI at 1-800-CALL-FBI (225-5324), prompt 1, then prompt 3. You also may file an online complaint at tips.fbi.gov.
Four Charged in Alleged $150 Million Payment Processing SchemeRead the Press Release
Four individuals have been charged in the District of Massachusetts with conspiring to deceive banks and credit card companies into processing more than $150 million in credit and debit card payments on behalf of merchants involved in prohibited and high-risk businesses, including online gambling, debt collection, debt reduction, prescription drugs, and payday lending, according to an indictment unsealed today in Boston. Three of the four individuals charged were arrested today. The fourth defendant has not yet been arrested and is a fugitive on separate federal charges.
According to court documents, Ahmad “Andy” Khawaja, 49, of Los Angeles, California, and Thomas Wells, 74, of Martin County, Florida, are charged with conspiracy to commit wire fraud. Mohammad “Moe” Diab, 45, of Glendale, California, and Amy Ringler Rountree, 38, of Logan, Utah, are charged with conspiracy to commit wire fraud and conspiracy to commit bank fraud. Federal agents arrested Diab, Rountree, and Wells this morning. They are expected to appear in federal court in Los Angeles, Salt Lake City, Utah, and Chicago, Illinois, respectively, later today or tomorrow. Khawaja is a fugitive from a December 2019 federal indictment filed in the District of Columbia that charges him, Diab, and others with campaign finance violations and obstruction of justice.
According to the indictment, executives of Allied Wallet Inc., a payment processing company headquartered in Los Angeles, secured payment processing for high-risk businesses through fraudulent misrepresentations about merchant clients. Khawaja served as Allied Wallet’s owner and Chief Executive Officer, Diab served as the Chief Operating Officer, and Rountree served as Vice President of Operations. Allied Wallet provided services enabling merchant clients to accept debit and credit card payments over global electronic payment networks run by card brands such as Visa, Mastercard, American Express, and Discover. Allied Wallet served as an intermediary between its merchant clients and financial institution members of the card brand networks. Wells, through his company Priority Payout, introduced merchant clients seeking payment processing to Allied Wallet.
The indictment alleges that Khawaja, Diab, Rountree, Wells, and others engaged in a scheme to defraud several financial institutions, the card brands, and others of money and property by fraudulently inducing them to provide payment processing services to merchants engaged in prohibited or high risk transactions, and to merchants that were terminated for fraud, chargeback, or other compliance concerns, through knowingly misrepresenting the types of transactions that the merchants were processing and the true identities of the merchants. The defendants and their co-conspirators accomplished the scheme through, among other steps, creating shell companies, designing fake websites that purported to sell low-risk retail and home goods, and using industry-standard codes that miscategorized the true nature of the transactions. Through the scheme, the defendants and their co-conspirators fraudulently obtained more than $150 million in payment card processing through more than 100 sham merchants.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division and Acting U.S. Attorney Nathaniel R. Mendell of the District of Massachusetts made the announcement.
The Food and Drug Administration – Office of Criminal Investigations, U.S. Postal Inspection Service, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations are investigating the case.
Trial Attorney Randall Warden of the Justice Department’s Money Laundering and Asset Recovery Section (MLARS) and Assistant U.S. Attorney and Deputy Chief Seth B. Kosto of the Securities, Financial & Cyber Fraud Unit at the U.S. Attorney’s Office for the District of Massachusetts are prosecuting the case.
MLARS’s 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Tennessee Man Charged with Civil Rights Violations for Series of Church ArsonsRead the Press Release
A Tennessee man was charged yesterday with civil rights violations for his role in the arson of four Nashville area churches.
Alan Douglas Fox, 28, of Nashville, was charged by criminal information 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. Fox is also charged with carrying and using a firearm during the arson of the Crievewood Baptist Church.
The information alleges that Fox intentionally set the fires because of the religious character of the churches.
If convicted, Fox faces up to 20 years in prison for each fire, and a consecutive five-year sentence for the firearms violation.
Assistant Attorney General Kristen Clarke of the Justice Department's Civil Rights Division and Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee made the announcement.
This case was investigated by the FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department and the Nashville Fire Department. Assistant U.S. Attorney Sara Beth Myers and Trial Attorney Kyle Boynton of the Civil Rights Division are prosecuting the case.
The charges are merely accusations and the defendant is presumed innocent until proven guilty in a court of law.
Mississippi Pharmacist and Louisiana Marketer Plead Guilty to More Than $180 Million Health Care Fraud SchemeRead the Press Release
A Mississippi pharmacist pleaded guilty today and a Louisiana marketer pleaded guilty on Aug. 12 in the Southern District of Mississippi for their roles in a multi-million-dollar scheme to defraud TRICARE and private insurance companies by paying kickbacks to distributors for the referral of medically unnecessary prescriptions. The conduct allegedly resulted in more than $180 million in fraudulent billings, including more than $50 million paid by federal health care programs.
According to court documents, Mitchell “Chad” Barrett, 54, now of Gulf Breeze, Florida, and formerly of Mississippi, participated in a scheme to defraud TRICARE and other health care benefit programs by distributing medically unnecessary compounded medications. Barrett is licensed as a pharmacist in Mississippi and was a co-owner of various compounding pharmacies. As part of this scheme, Barrett adjusted prescription formulas to ensure the highest reimbursement without regard to efficacy. He solicited recruiters to procure prescriptions for high margin compounded medications and paid those recruiters commissions based on the percentage of reimbursements paid by pharmacy benefit managers and health care benefit programs, including commissions on claims reimbursed by TRICARE. He further routinely and systematically waived and/or reduced copayments to be paid by beneficiaries and members, and utilized a purported copayment assistance program to falsely make it appear as if his pharmacy and its affiliate compounding pharmacies had been collecting copayments.
According to court documents, Thomas “Tommy” Wilburn Shoemaker, 57, of Rayville, Louisiana, participated in a scheme to defraud TRICARE and other health care benefit programs by acting as a marketer for Barrett’s pharmacies. Shoemaker allowed the pharmacies to use his TRICARE insurance to adjust prescription formulas to ensure the highest reimbursement without regard to efficacy, and he recruited doctors to procure prescriptions for high margin compounded medications. Shoemaker also obtained numerous fraudulent prescriptions using personal information of military acquaintances.
Barrett pleaded guilty to conspiracy to engage in monetary transactions in criminally derived property. He faces a maximum penalty of 10 years in prison.
Shoemaker pleaded guilty to conspiracy to defraud the United States and solicit, receive, offer, and pay illegal kickbacks, 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. Shoemaker and Barrett must also pay restitution and forfeit all assets traced to their ill-gotten gains.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi; Acting Special Agent in Charge Paul Brown of the FBI’s Jackson Field Office, and Special Agent in Charge Cyndy Bruce of the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service (DoD OIG-DCIS) Southeast Field Office made the announcement.
The FBI and DoD OIG-DCIS are investigating the case.
Trial Attorneys Emily Cohen and Alejandra Arias of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Kathlyn Van Buskirk of the Southern District of Mississippi are prosecuting the case with assistance from Sara Porter and Dustin Davis from the Criminal Division’s Fraud Section.
Justice Department Settles with Large Health Care Organization to Resolve Software-Based Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with Ascension Health Alliance (Ascension), a Missouri-based health care organization with more than 2,600 sites – including 146 hospitals and more than 40 senior living facilities – in 19 states and the District of Columbia.
The settlement resolves the department’s claims that Ascension violated the Immigration and Nationality Act (INA) when it discriminated against work-authorized non-U.S. citizens because of their citizenship status by requesting more or different documents than necessary when attempting to reverify their continued work authorization.
Based on its investigation, the department determined that Ascension automatically requested that its non-U.S. citizen employees present new documents to prove their continued work authorization, even in situations where it was not required. Ascension utilized a customized employment eligibility verification software program to electronically complete the Form I-9 and track the expiration dates of non-U.S. citizen employee documents. The investigation found that Ascension improperly programmed the software to send automated e-mails requesting proof of continued work authorization to all non-U.S. citizen employees, including U.S. nationals, lawful permanent residents, asylees and refugees, close to the expiration date of the documents they provided when completing the Form I-9. These non-U.S. citizen employees often presented documents that did not require reverification of employment eligibility. In some instances after sending these e-mails, Ascension further required non-U.S. citizen employees to present new documents in order to continue working. In contrast, Ascension did not program the software to send e-mails to U.S. citizens and therefore did not notify U.S. citizens near the expiration of their documents.
“Employers are reminded that while software programs may seem efficient, there is still a responsibility to ensure that programming decisions do not result in discrimination,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement makes clear that the Justice Department will vigorously enforce federal civil rights laws and hold employers accountable if their software results in unlawful discrimination.”
Federal law allows all work-authorized individuals, regardless of citizenship status, to choose which valid, legally acceptable documentation to present to demonstrate their identity and authorization to work in the United States. Many non-U.S. citizens, including lawful permanent residents, refugees, and asylees, among others, have work authorization that does not expire, and are eligible for several of the same types of documents as U.S. citizens (such as driver’s licenses and unrestricted Social Security cards) to prove their work authorization. The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship, immigration status, or national origin.
Under the terms of the settlement agreement, Ascension will pay the United States a civil penalty of $84,832.00. Additionally, Ascension will train its employees on the requirements of the INA’s anti-discrimination provision, including an IER-provided training, and be subject to monitoring for a three-year period to ensure the company is complying with the agreement.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship or immigration status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Job applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this release here.
Justice Department Obtains Settlement from Kentucky Landlord and Rental Manager to Resolve Claims of Sexual Harassment Against Female TenantsRead the Press Release
The Justice Department today announced it has reached an agreement with defendants Gus and Penny Crank to resolve a Fair Housing Act lawsuit alleging that Gus Crank sexually harassed female tenants while managing a Dayton, Kentucky, rental property owned by his wife, Penny Crank.
Under the consent order entered by the U.S. District Court for the Eastern District of Kentucky, the Cranks must pay $48,000 in damages to four female tenants harmed by Gus Crank’s harassment and a $2,000 civil penalty to the United States. The Cranks are also prohibited from being involved in property management of rental units in the future; Penny Crank recently sold the rental property where Gus Crank’s harassment occurred.
The United States’ lawsuit alleged that Gus Crank’s harassment spanned a period of 10 years. The allegations included that Gus Crank engaged in unwelcome sexual touching, offered to reduce monthly rental payments in exchange for sex, made unwelcome sexual comments and advances made intrusive and unannounced visits to female tenants’ homes to further his sexual advances and evicted or threatened to evict female tenants who objected to or refused his sexual advances.
“No woman should ever have to endure sexual harassment to secure housing for herself or her family,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Sexual harassment is unacceptable and illegal, and the Justice Department will continue to vigorously enforce the Fair Housing Act to combat this type of discrimination and to obtain relief for victims.”
“Sexual harassment in housing deprives its victims of the safety and security that their home is supposed to provide,” said Acting U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky. “That makes our convincing enforcement of the Fair Housing Act critical to ensuring that victims can gain relief from this disgraceful conduct and seek a safe and secure home for their families.”
This case was jointly litigated by attorneys in the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Kentucky. The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s Initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the Initiative in October 2017, the Department of Justice has filed 22 lawsuits alleging sexual harassment in housing and recovered over $4 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
El Departamento de Justicia llega a un acuerdo con una organización grande de atención sanitaria que resuelve acusaciones de discriminación relacionada con la inmigración basadas en softwareRead the Press Release
WASHINGTON - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Ascension Health Alliance (Ascension), una organización de atención sanitaria radicada en Missouri con más de 2.600 locales, entre ellos 146 hospitales y más de 40 residencias de tercera edad, en 19 estados y el Distrito de Columbia. El acuerdo resuelve las acusaciones del Departamento de que Ascension vulneró la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) cuando discriminó a trabajadores no ciudadanos de los EE. UU. que contaban con autorización para trabajar al pedirles documentos adicionales o diferentes a los que eran necesarios a la hora de intentar reverificar que seguían siendo autorizados para trabajar.
Con base en su investigación, el Departamento determinó que Ascension solicitó automáticamente que sus empleados no ciudadanos de los EE. UU. presentasen documentos nuevos para demostrar que seguían contando con autorización para trabajar, incluso en situaciones cuando esto no se les requería. Ascension utilizó un programa de software personalizado de verificación de la elegibilidad para trabajar para completar electrónicamente el Formulario I-9 y monitorizar las fechas de vencimiento de los documentos de empleados no ciudadanos de los EE. UU. La investigación halló que Ascensión programó el software, de manera incorrecta, para que enviara correos electrónicos automáticos pidiendo pruebas de una autorización continua para trabajar a todos los empleados no ciudadanos de los EE. UU., incluyendo nacionales de los EE. UU., residentes permanentes legales, asilados y refugiados cuando se acercaba la fecha de vencimiento de los documentos que ellos habían presentado en el momento de completar en Formulario I-9. En muchos casos, estos empleados no ciudadanos de los EE. UU. habían presentado documentos que no requerían una reverificación de su elegibilidad para trabajar. Más aún, en algunas instancias después de enviar esos correos electrónicos, Ascension también requirió que sus empleados no ciudadanos de los EE. UU. presentasen nuevos documentos para poder seguir trabajando. En cambio, Ascension no programó el software para enviar correos electrónicos a ciudadanos de los EE. UU. y, por lo tanto, no notificó a trabajadores que son ciudadanos de los EE. UU. cuando se acercaba la fecha de vencimiento de sus documentos.
«Se les recuerda a los empleadores que, aunque los programas de software parecen eficientes, todavía existe la responsabilidad de asegurar que las decisiones relacionadas con la programación no resulten en discriminación», declaró la Fiscal General Auxiliar, Kristen Clarke, de la División de Derechos Civiles del Departamento de Justicia. «El acuerdo hace claro que el Departamento de Justicia hará cumplir con firmeza las leyes federales de derechos civiles y hacer responsables a los empleadores si su software resulta en discriminación ilegal».
Las leyes federales permiten a todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, elegir los documentos válidos y legalmente aceptables que desea presentar para demostrar su autorización para trabajar en los Estados Unidos. Muchas personas que no son ciudadanos de los EE. UU., incluyendo a residentes permanentes legales, refugiados y asilados, entre otros, tienen una autorización para trabajar que no vence y son elegibles para varios de los mismos tipos de documentos como lo son los ciudadanos de los EE. UU. (tales como carnets de conducir y tarjetas de seguro social sin restricciones) para demostrar su autorización para trabajar. La disposición antidiscriminatoria de la INA prohíbe que los empleadores pidan documentos adicionales o diferentes a los necesarios para demostrar la autorización para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen.
Conforme los términos del acuerdo conciliatorio, Ascension pagará una sanción civil a los Estados Unidos que asciende a 84.832,00 $. Asimismo, Ascension capacitará a sus empleados en cuanto a los requisitos de la disposición antidiscriminatoria de la INA, incluyendo una capacitación dirigida por la Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés), y será supervisado durante un período de tres años para garantizar que la compañía esté cumpliendo con el acuerdo.
La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
EOIR Launches FOIA Public Access LinkRead the Press Release
FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) has launched its Freedom of Information Act (FOIA) Public Access Link (PAL), a new online portal that streamlines records requests for parties with business before the agency and members of the public seeking records.
“We are excited to launch this new portal, which highlights EOIR’s dedication to transparency through its FOIA request process,” said EOIR Acting Director Jean King. “We expect increased efficiency both for those seeking records from our agency and for our hard-working FOIA staff with the Office of the General Counsel.”
PAL allows users to submit FOIA and Privacy Act requests, check the status of submitted requests, download records, browse the FOIA reading room, and correspond with the EOIR FOIA Service Center. The PAL also allows users to pay required fees online and to receive delivery of large volumes of responsive records more quickly.
Washington Tech Executive Sentenced for Covid-19 Relief Fraud SchemeRead the Press Release
A Washington state tech executive was sentenced today in the Western District of Washington to two years in prison for perpetrating a scheme to fraudulently obtain COVID-19 disaster relief loans guaranteed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDL) and the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief and Economic Security (CARES) Act.
Mukund Mohan, 48, of Clyde Hill, pleaded guilty to charges of wire fraud and money laundering on March 15. According to court documents, Mohan sought more than $5.5 million through eight fraudulent disaster loan applications. In support of the fraudulent loan applications, Mohan submitted fake and altered documents, including fake federal tax filings and altered incorporation documents. For example, Mohan misrepresented to a lender that, in 2019, his company Mahenjo Inc. had dozens of employees and paid millions of dollars in employee wages and payroll taxes. In support of Mahenjo’s loan application, Mohan submitted false incorporation documents and tax forms suggesting that the company had been in business prior to 2020. In truth, Mohan purchased Mahenjo in May 2020 and at the time he purchased the company, it had no employees and no business activity. The incorporation documents that he submitted to the lender were altered and the federal tax filings he submitted were fake. Five of Mohan’s eight fraudulent loan applications were approved, and he fraudulently obtained nearly $1.8 million in COVID-19 relief funds.
In addition to the prison sentence, Mohan was ordered to pay a fine in the amount of $100,000 and $1,786,357 in restitution.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington; Special Agent in Charge Jay Johnson of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Acting Special Agent in Charge Corinne Kalve of IRS-Criminal Investigation (IRS-CI); Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA); and Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), made the announcement.
This case was investigated by FHFA-OIG, IRS-CI, TIGTA, and FDIC-OIG.
Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Friedman of the Western District of Washington are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
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.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Leader of ‘Atomwaffen’ Conspiracy Sentenced to Three Years in Prison for Threatening Journalists and AdvocatesRead the Press Release
Cameron Shea, 25, a leader of the neo-Nazi group Atomwaffen Division, was sentenced today in the U.S. District Court for the Western District of Washington to three years in prison for federal conspiracy and hate crime charges for threatening journalists and advocates who worked to expose anti-Semitism, announced Acting U.S. Attorney Tessa M. Gorman. At the sentencing hearing, U.S. District Judge John C. Coughenour said, “This conduct cannot be tolerated. This kind of conduct has consequences…It is so serious that it requires a serious sentence.”
“The Justice Department will continue to aggressively prosecute threats motivated by religious intolerance, and to prosecute defendants like this one who threatened violence against individuals who work to end discrimination,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department is committed to prosecuting to the full extent of the law, violent neo-Nazis and other perpetrators of hate crimes.”
“This hate-filled conduct strikes at the heart of our communities,” said Acting U.S. Attorney Tessa Gorman for the Western District of Washington. “This defendant’s goal was to make people fearful in their own homes, and he recruited and cheered on others who joined his sick scheme. This federal prison sentence underscores the human damage from his crimes.”
Shea pleaded guilty in April 2021, to one count of conspiring to commit three offenses against the United States: interference with federally-protected activities because of religion; mailing threatening communications; and cyberstalking. He also pleaded guilty to one count of interfering with a federally protected activity because of religion.
Shea and three co-defendants were charged with conspiring via an encrypted online chat group to identify journalists and advocates they wanted to threaten in retaliation for the victims’ work exposing anti-Semitism. The group focused primarily on those who are Jewish or journalists of color. The group created posters, which featured Nazi symbols, masked figures with guns and Molotov cocktails and threatening messages, to deliver or mail to the journalists or advocates the group targeted. Shea messaged the group that he wanted Atomwaffen members in different locations to place posters on their victims’ homes on the same night to catch journalists off guard and accomplish a “show of force.” The posters were delivered to victims in Tampa, Seattle and Phoenix. Shea mailed posters to several victims, including a poster sent to an official at the Anti-Defamation League (ADL) that depicted a Grim Reaper-like figure wearing a skeleton mask holding a Molotov cocktail outside a residence, with the text “Our Patience Has Its Limits . . . You have been visited by your local Nazis.”
Two of Shea’s co-defendants previously pled guilty to the conspiracy charge and were sentenced. A fourth defendant pled not guilty and is awaiting trial in Sept. 2021.
The case is being investigated by the FBI’s Joint Terrorism Task Forces in Tampa, Seattle, Houston and Phoenix with assistance from the Seattle Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Thomas Woods and Seth Wilkinson and Civil Rights Division Trial Attorney Michael J. Songer, with assistance from U.S. Attorneys’ Offices in the Middle District of Florida, Southern District of Texas, District of Arizona and Central District of California.
Justice Department Enters Agreement to Ensure Public Transportation for Passengers with Disabilities in the County of HawaiiRead the Press Release
The Justice Department entered into a settlement agreement with the County of Hawaii and the County’s Mass Transit Agency (MTA) to resolve an investigation conducted under Title II of the Americans with Disabilities Act (ADA).
Under the agreement, the County and MTA must make their transit services, including Hele-On, the buses used by the majority of riders, accessible to passengers with disabilities. The agreement requires the County and MTA to ensure that passengers with disabilities have lifts to board buses; paratransit users are provided timely pick-ups and drop-offs; and bus stops are accessible. In addition, the County and MTA must ensure that transit system drivers undergo ADA training and that disability-related complaints are addressed fairly. The County and MTA also must report to the department regarding their compliance with these requirements. Both the County and MTA cooperated in this matter.
“Ensuring the availability of public transit for individuals with disabilities is a key promise of the Americans with Disabilities Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Accessible transportation is critical to independence and engagement in civic life, and this agreement helps to make that promise a reality.”
“This agreement will remove accessibility barriers in transit for countless individuals with disabilities living on the Big Island,” said Acting U.S. Attorney Judith Philips for the District of Hawaii. “Our office strongly supports efforts to improve access and inclusion under the ADA.”
This matter was handled by the Disability Rights Section of the department’s Civil Rights Division. 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 the ADA website at 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/.
Justice Department Approves Remission of over $32 Million in Forfeited Funds to Victims in the FIFA Corruption CaseRead the Press Release
The Department of Justice announced today that it will begin the process of remitting forfeited funds to FIFA, the world organizing body of soccer; CONCACAF, the confederation responsible for soccer governance in North and Central America, among other regions; CONMEBOL, the confederation responsible for soccer governance in South America; and various constituent national soccer federations (collectively, the “Victims”). The department granted a joint petition for remission filed by the Victims, recognizing losses and granting remission up to a total of more than $201 million, of which $32.3 million in forfeited funds has been approved for an initial distribution. In total, well over the amount granted has been seized and has been or is expected to be forfeited to the United States in the Eastern District of New York as part of the government’s long-running investigation and prosecution of corruption in international soccer.
To date, the prosecutions have resulted in charges against more than 50 individual and corporate defendants from more than 20 countries, primarily in connection with the offer and receipt of bribes and kickbacks paid by sports marketing companies to soccer officials in exchange for the media and marketing rights to various soccer tournaments and events.
This announcement is the beginning of the process for returning funds to the victims of the FIFA bribery scandal and marks the department’s continued commitment to ensuring justice for those victims harmed by this scheme.
“The approval of this remission of funds illegally obtained in the FIFA scandal marks another important milestone in these prosecutions and the department’s commitment to use all tools at its disposal to prosecute corruption and to deprive perpetrators of ill-gotten gains,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This remission highlights the importance of asset forfeiture as a critical tool for the recovery of criminal proceeds and the pursuit of justice.”
“Today’s announcement confirms that money stolen by corrupt soccer officials and sports marketing executives through fraud and greed will be returned to where it belongs and used to benefit the sport,” said Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York. “From the start, this investigation and prosecution have been focused on bringing wrongdoers to justice and restoring ill-gotten gains to those who work for the benefit of the beautiful game. Our office, together with our law enforcement partners, will always work to compensate victims of crime.”
“Kickbacks and bribes have a way of spreading like a disease through corrupt groups; pure and simple greed keeps the graft going,” said Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office. “Not one official in this investigation seemed to care about the damage being done to a sport that millions around the world revere. The only silver lining is the money will now help underprivileged people who need it, not the wealthy executives who just wanted it to get richer. Our work isn’t finished, and our promise to those who love the game – we won’t give up until everyone sees justice for what they’ve done.”
“For years, corrupt soccer officials and greedy sports marketing executives engaged in dozens of multimillion-dollar bribe and kickback schemes,” said Special Agent-in-Charge Ryan L. Korner of the IRS-Criminal Investigation (IRS-CI). “These individuals and companies lined their pockets with millions that were supposed to be used for the development and betterment of soccer worldwide. Agents with IRS-CI and their partners at the U.S. Attorney’s Office and the FBI relentlessly pursued this corruption and seized these ill-gotten gains. Now these funds can be used as they were intended, to promote and develop the world’s most popular game.”
On May 27, 2015, an indictment was unsealed charging 14 FIFA officials and sports marketing executives with racketeering, honest services wire fraud and money laundering offenses, among others. On Dec. 3, 2015, a superseding indictment was unsealed charging an additional 16 FIFA officials with similar crimes. Additional defendants were charged by indictment and information. During the course of the prosecutions to date, 27 individual defendants have pleaded guilty for their roles in the charged crimes. In December 2017, two former FIFA officials, Juan Ángel Napout, of Paraguay, and José Maria Marin, of Brazil, were convicted after trial of racketeering conspiracy and related offenses. Four corporate entities have pleaded guilty and others, including banking institutions, have acknowledged their roles in criminal conduct through deferred prosecution or non-prosecution agreements. The government’s prosecutions and investigation are ongoing.
As part of these proceedings, many of the defendants were ordered to forfeit assets obtained through their criminal activity. Under federal law, the Department of Justice has the authority to distribute the proceeds of forfeited assets through the remission process to victims of crimes, including to the soccer organizations that employed and were defrauded by the corrupt soccer executives.
FIFA, CONCACAF, and CONMEBOL have committed to distributing funds received through the remission process to and through a newly created World Football Remission Fund (the “Fund”), to be established under the FIFA Foundation, an independent foundation focused on youth programs, community outreach and humanitarian needs. The terms of the Fund provide for oversight and independent audit measures to ensure remitted funds are distributed appropriately.
The government’s case is being handled by the U.S. Attorney’s Office’s FIFA Task Force. Assistant U.S. Attorneys Samuel P. Nitze, M. Kristin Mace, Keith D. Edelman, Brian D. Morris and Kaitlin T. Farrell are in charge of the prosecution and coordination of the victim remission process. The Justice Department, through the Asset Forfeiture Program, works diligently to restore lost funds to victims of crime. The victim compensation payments in the FIFA case would not have been possible without the extraordinary efforts of the Criminal Division’s Money Laundering and Asset Recovery Section, the FBI’s New York Field Office and IRS-CI.
California Restaurant Owners Plead Guilty to Conspiracy to Commit Forced LaborRead the Press Release
A California couple pleaded guilty to conspiracy to commit forced labor. According to court documents, Nery A. Martinez Vasquez, 53, and his wife Maura N. Martinez, 53, both of Shasta Lake, are naturalized United States citizens, originally from Guatemala. They owned and operated Latino’s, a restaurant, and Redding Carpet Cleaning & Janitorial Services, a cleaning company that serviced various businesses, including multiple car dealerships, in the Shasta Lake area.
In their plea agreement filed in federal court, the defendants admitted that if the matter proceeded to trial, the government would prove beyond a reasonable doubt that they convinced a Guatemalan relative and her two minor daughters to come to the United States in August 2016 by falsely promising them a better life. The defendants arranged for the victims to enter the United States using temporary visitor visas and then compelled them to overstay their visas and work long hours at Latino’s restaurant and Redding Carpet Cleaning & Janitorial Services for minimal to no pay between September 2016 and February 2018. The defendants conspired with one another to manufacture an inflated debt that they told the victims they owed and instructed them that they could not leave until they repaid this fictious debt. The defendants also abused the legal system by threatening to call the authorities on the victims and have them arrested for overstaying their visas if they did not comply with their requests. Similarly, the defendants forbid the minor children from attending school because they claimed that immigration authorities were looking to arrest and deport non-citizen children. Instead of attending school, the children worked for the defendants’ businesses. The defendants housed the victims in a dilapidated, unheated trailer with no running water, and degraded and humiliated them in front of others. Finally, the defendants used force and threats of force to intimidate the victims, with Nery Martinez Vasquez even going as far as hitting the minor victims with a stick when angry.
“These defendants used the promise of America to lure the victim and her children to the United States in search of a better life, only to turn around and use that hope to exploit their dreams under cruel conditions,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “There is no place for such cruel conduct in our society, and the Department of Justice remains committed to eradicating human trafficking.”
“These defendants exploited vulnerable victims, forcing them to work in their businesses, failing to pay wages, and depriving them of basic human rights,” said Acting U.S. Attorney Phillip A. Talbert for the Eastern District of California. “The U.S. Attorney’s Office continues its commitment to protect and defend vulnerable members of our society from human trafficking.”
“This case highlights how the dream of coming to the United States to begin a new, promising life can become a nightmare,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “The family worked in public view yet were imprisoned by fear and the lies they had been told by their exploiters. No human being — let alone a family — should be forced to work and live as these victims did. The FBI is committed to identifying and investigating human trafficking. We seek justice for victims, regardless of immigration status. We ask the public to report suspected human trafficking and encourage victims to come forward to escape the cycle of exploitation they may feel trapped within."
The defendants are scheduled to be sentenced by U.S. District Judge William B. Shubb on Nov. 8. The defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine. The sentence will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. As part of the defendants’ plea, they have agreed to pay $300,000 in restitution to the victims.
This case is the product of an investigation by the FBI. Assistant U.S. Attorneys Katherine T. Lydon and Tanya B. Syed and Civil Rights Division Trial Attorney Avner Shapiro are prosecuting the case.
Texas Man Pleads Guilty to Wire Fraud for Foreign Exchange Investment Fraud SchemeRead the Press Release
A Texas man pleaded guilty today in the Southern District of Texas to defrauding investors that he solicited via social media by falsely promising high rates of return and low or no-risk returns on foreign exchange investments.
According to court documents, Kelvin Ramirez, 25, of Houston, used social media platforms to falsely promote himself as a successful trader of foreign exchange investments or “forex” and attract investors. Through his Instagram accounts, Ramirez marketed “investment groups” and “private accounts” that purportedly traded in forex and were managed by Ramirez. For both types of investments, Ramirez solicited individuals by falsely promising high returns on investments, making false representations about the risk associated with the investments and falsely guaranteeing returns on investment. Through his scheme, Ramirez fraudulently obtained more than $650,000 from over 100 individuals, and then used investors’ funds for personal expenses.
Ramirez pleaded guilty to wire fraud. He is scheduled to be sentenced on Nov. 9 and faces a maximum penalty of 20 years in prison. In addition, he has agreed to pay full restitution to victims, including a monetary loss of at least $687,792.93. 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, Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation (FDIC) and Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office made the announcement.
The FDIC’s Office of Inspector General and the FBI are investigating the case.
Trial Attorney Laura Connelly of the Criminal Division’s Fraud Section is prosecuting the case.
Individuals who believe they may be a victim should visit https://www.justice.gov/criminal-vns/case/Kelvin-Ramirez for more information.
Brooklyn Federal Jury Convicts U.S. Citizen of Attempting to Provide Material Support to ISISRead the Press Release
Earlier today, a federal jury in Brooklyn convicted Bernard Raymond Augustine, a U.S. citizen and California resident, of attempting to provide material support to a designated foreign terrorist organization, the Islamic State of Iraq and al-Sham (“ISIS” or “the Islamic State”). The verdict followed a one-week trial before U.S. District Judge Sterling Johnson Jr. When sentenced, Augustine faces up to 20 years in prison.
The evidence at trial established that in February 2016, the defendant traveled from San Francisco, California, to Northern Africa, with the goal of joining ISIS, a designated foreign terrorist organization. In the months leading up to his travel, the defendant watched ISIS propaganda, including videos glorifying ISIS’s violence, such as “The Flames of War.” The defendant conducted internet searches for, among other things, “how to safely join ISIS,” and reviewed websites related to ISIS recruitment practices, including one titled “How does a Westerner join ISIS? Is there a recruitment or application process?”
Augustine also posted numerous statements in support of ISIS and violent extremism on the internet. He posted statements such as “the Islamic State is the true Islam,” “Muslims who leave the west . . . answer the call for the struggle, and march until they are victorious or martyred are the true believers,” and the ISIS caliphate “can’t be established and maintained except through the blood of the mujahideen who practice the true belief.”
Augustine then purchased a one-way airplane ticket and traveled to Tunisia so that he could present himself as a willing participant in ISIS’s terrorist activity. After arriving in Tunisia, Augustine was detained by local authorities before he could make it to ISIS-controlled territory across the border in Libya. He was subsequently returned to the United States in 2018, where he was brought to the Eastern District of New York for prosecution.
Acting Assistant Attorney General Mark J. Lesko of the Justice Department’s National Security Division, Acting U.S. Attorney Jacquelyn M. Kasulis for the Eastern District of New York, Assistant Director-in-Charge Michael J. Driscoll of the FBI’s New York Field Office, and Commissioner Dermot F. Shea of the New York City Police Department (NYPD) announced the verdict.
The government’s case is being handled by the U.S. Attorney’s Office’s National Security and Cybercrime Section. Assistant U.S. Attorneys Craig R. Heeren, Josh Hafetz and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorneys Phil Viti and George Kraehe of the National Security Division’s Counterterrorism Section. The Justice Department’s Office of International Affairs provided assistance.
Twice Convicted Drug Dealer Sentenced to 168 Months ImprisonmentRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Jesse Reyes Babauta, age 43, was sentenced in the United States District Court of the Northern Mariana Islands to 168 months imprisonment for Conspiracy to Possess Methamphetamine with Intent to Distribute, a Schedule II Substance in violation of 21 U.S.C. §§ 846, 841(a)(1)(b)(1)(C). The Court also ordered five years of supervised release following imprisonment, 100 hours of community service, and a mandatory $100.00 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
From September to November 2020, Jesse Reyes Babauta, managed and organized the importation of over 70 grams of methamphetamine into the CNMI through the United States Postal Service. The drugs were hidden inside greeting cards. In sentencing Babauta, the Court explicitly found that he used both fear and affection to involve other individuals in the illegal transport of controlled substances. Babauta was also convicted of Conspiracy to Distribute Methamphetamine in federal court in 2013.
U.S. Attorney Anderson stated, “As this case demonstrates, repeat offenders can expect lengthy sentences as a result of federal prosecution. I applaud the efforts of our law enforcement partners in continuing to target drug crimes in the CNMI.”
This case was a joint investigation by Drug Enforcement Administration, United States Postal Inspection Service, with the assistance from CNMI Customs Service. This case was prosecuted by Garth R. Backe, Assistant United States Attorney in the District of the Northern Mariana Islands.
Sharee D. Joyner Sentenced to 30 Months Imprisonment for Drug TraffickingRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Sharee Diaz Joyner, age 44, from San Vicente, Saipan, was sentenced in the United States District Court of the Northern Mariana Islands to thirty months imprisonment for Attempting to Possess Over Five Grams of Methamphetamine with the Intent to Distribute, in violation of 21 U.S.C. § 841(a)(1). The Court also ordered four years of supervised release following imprisonment, 100 hours of community service, and a mandatory $100.00 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
From January to February 2019, Sharee Diaz Joyner conspired with others to obtain methamphetamine with the intent to distribute the drug in the CNMI. Joyner contacted her source of supply on Rota to have methamphetamine fronted to her. Joyner would pay for the drugs after they were sold. On the next trip to Rota, Joyner received 39.15 grams of methamphetamine. She brought the drugs back to Saipan by plane. CNMI Customs Inspectors discovered the drugs during an inspection upon her arrival. A DEA forensic chemist determined that the drugs were 96% pure.
This was a joint investigation by the United States Drug Enforcement Administration, CNMI Customs Service, and CNMI Drug Enforcement Task Force. The case was prosecuted by Garth R. Backe, Assistant United States Attorney in the District of the Northern Mariana Islands.
Justice Department, EPA and Indiana Amend Agreement with the City of South Bend, Indiana to Treat Sewage and WastewaterRead the Press Release
The U.S. Department of Justice, the U.S. Environmental Protection Agency (EPA) and the Indiana Department of Environmental Management (IDEM) have agreed to amend a 2012 Clean Water Act consent decree with the City of South Bend, Indiana.
The amendment requires implementation of a revised long-term plan to reduce and treat sewage and wastewater discharges to meet Indiana’s water quality standard for E. coli. The revised plan will improve public health, better protect the St. Joseph River, a tributary of Lake Michigan, and lower the cost of compliance.
“This amendment provides South Bend time to revise its long-term plan to further reduce and treat sewage and wastewater discharges to meet Indiana’s water quality standard,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The revised plan and additional time should improve public health and better protect the St. Joseph River, while also lowering costs for ratepayers.”
“This settlement results in a significant reduction in pollutant discharges to the St. Joseph River and Lake Michigan, and also reduces costs for South Bend’s rate payers,” said Acting U.S. Attorney Tina Nommay for the Northern District of Indiana. “We thank the federal, state and local authorities who partnered with us to achieve this excellent result.”
“Through the cooperative work of federal, state and local officials, this amended agreement will reduce harmful wastewater discharges to the St. Joseph River and significantly lower costs for the citizens of South Bend,” said Acting Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance.
“This revised Long-Term Control Plan results in a reduction of sewage and wastewater to the St. Joseph River which improves human health and the environment,” said IDEM Commissioner Bruno Pigott. “The revised plan is a great example of the success we can achieve when federal, state and local partners work together to ensure Indiana’s environment is safe for all Hoosiers.”
Prior to 2012, the City of South Bend discharged more than 2 billion gallons of untreated human and industrial sewage and stormwater a year, containing highly concentrated levels of E. coli bacteria through combined sewer overflows, or CSOs, into the St. Joseph River. The 2012 consent decree required South Bend to reduce discharges to 46.9 million gallons per year and reduce E. coli to 15,000 counts per 100 milliliters. While a significant improvement, the E. coli discharge concentrations under the original plan still would have exceeded Indiana’s E. coli water quality standard of 235 counts per 100 milliliters. Under the revised plan that will be fully implemented by 2038, South Bend will treat virtually all of its annual discharge volumes to concentrations below Indiana's water quality standard for E. coli and save hundreds of millions of dollars in compliance costs.
The revised plan includes the following:
- Expansion of South Bend’s current sewage treatment plant
- Construction of three retention treatment facilities
- Replacement or modification of various sewers
South Bend estimates that the revised plan will cost approximately $276 million in 2019 dollars, significantly less than the $700 million or more that South Bend estimates would be the cost to implement the remaining measures required under the 2012 consent decree. South Bend was able to develop the revised plan in large part because it installed more than 150 “smart” sensors at more than a hundred locations in its sewer system to allow it to better monitor and manage its flows. This “smart sewer system” enables South Bend to construct fewer and smaller-sized gray infrastructure measures and, at the same time, achieve a greater level of pollution control.
The proposed amended consent decree is subject to a 30-day public comment period and final court approval after it is published in the Federal Register. To view the proposed amended consent decree or to submit a comment, visit the Department of Justice website at: www.justice.gov/enrd/Consent_Decrees.html.
Iowa Woman Sentenced to 304 Months in Prison for Hate Crimes Involving Attempting to Kill Two Children Because of their Race and National OriginRead the Press Release
An Iowa woman was sentenced yesterday on two hate crimes charges for attempting to kill two minor victims because of their race and national origin.
Nicole Poole Franklin, 42, was sentenced by U.S. District Judge Stephanie M. Rose to 304 months in federal prison on each count, with the sentences to run concurrently to each other and concurrent to the sentence imposed in the related state court case. Poole Franklin previously pleaded guilty in federal court on April 22, to two counts of hate crime acts.
According to court documents and statements made at the sentencing hearing, on the afternoon of Dec. 9, 2019, Poole Franklin was driving her Jeep Grand Cherokee on Creston Avenue in Des Moines, Iowa, where the first child-victim was walking along the sidewalk with another minor family member. Upon seeing the children and believing that the victim was of Middle Eastern or African descent, Poole Franklin drove her vehicle over the curb towards both children, striking one of them. Poole Franklin then drove away from the scene. The assault resulted in injury to the victim, including cuts, bruising, and swelling. Approximately 30 minutes later, Poole Franklin was driving her Jeep near Indian Hills Junior High School in Clive, Iowa, where the second child-victim was walking on the sidewalk. Poole Franklin, believing that the child was Mexican, drove her vehicle over the curb and struck the victim, causing serious injury, including a concussion, bruises, and cuts. Poole Franklin again drove away from the scene but was apprehended later that day.
“Nicole Poole Franklin attempted to kill two children because of the way they looked and where she believed they came from. This kind of egregious racial violence and hatred has absolutely no place in this country and will not be tolerated by the Justice Department,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “Children deserve to walk the streets of their neighborhood without fear of violence because of what they look like and where they come from and deserve to grow up in a world where they are not targeted simply because of who they are. The Justice Department will continue to protect the civil rights of all individuals and vigorously prosecute those who commit hate crimes in this country.”
“Nothing can be more devastating to the American dream of equal rights than the actions of Poole Franklin on a hate filled Dec. 9, 2019, as she callously attempted to run over and kill a 12-year-old boy and a 14-year-old girl - two minors who had done nothing wrong other than innocently walk on a street and happen to be of a different race and skin color from Poole Franklin,” said Acting U.S. Attorney Richard D. Westphal for the Southern District of Iowa. “Her actions temporarily shattered, but did not permanently defeat this dream because these two courageous victims, and their amazing families, continue to epitomize the hopes of what our society can be. Holding Poole Franklin accountable, not only for her intentional actions, but for the malicious beliefs behind them, is what our justice system should be, and a must to provide just punishment, afford adequate deterrence, and protect the public form further crimes by this defendant.”
“Nicole Poole Franklin committed a despicable crime,” said Special Agent in Charge Eugene Kowel of the FBI Omaha Field Office. “She targeted and seriously injured two children because of the color of their skin. FBI Omaha will continue to work closely with our law enforcement partners to investigate hate crimes and seek justice for the victims. We encourage everyone to report such crimes to the FBI.”
This case was investigated by the FBI, with assistance from Des Moines and Clive Police Departments. Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa and Trial Attorneys Katherine DeVar and Andrew Manns of the Civil Rights Division are prosecuting the case.
Federal Court Permanently Shuts Down Chicago Tax PreparerRead the Press Release
A federal court in the Northern District of Illinois has permanently enjoined a Chicago, Illinois, tax return preparer from preparing returns for others and from owning or operating any tax return preparation business in the future.
The civil complaint filed in the case alleged that Lennette Roberts and her company, Real Counseling Solution Inc., which did business under the assumed name RR Tax and Accounting, prepared fraudulent federal income tax returns. According to the complaint, defendants prepared returns that made false and fraudulent claims including: (1) false itemized deductions; (2) fabricated losses for non-existent businesses; (3) false or inflated earned income tax credits; and (4) false head-of-household filing statuses (which results in a lower rate as compared to single filing status).
According to the court’s order, Lennette Roberts and her company consented to entry of the injunction, which permits the United States to conduct full post-judgment discovery to monitor compliance. The order requires that Roberts (1) send notice of the injunction to each person for whom she and her company prepared federal tax returns, other tax forms, or claims for refund after Jan. 1, 2018, and (2) post an electronic copy of the injunction on any business social media profile currently maintained or created over the next five years.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Justice Department and DHS Publish Notice of Proposed Rulemaking to Make Asylum Process More Efficient and Ensure FairnessRead the Press Release
In a key step toward implementing the Administration’s blueprint for a fair, orderly, and humane immigration system, the Department of Justice (DOJ) and Department of Homeland Security (DHS) are publishing a notice of proposed rulemaking (NPRM) that would amend current regulations to improve the processing of asylum claims. The proposed rule would allow, U.S. Citizenship and Immigration Services (USCIS) asylum officers to hear and decide applications for asylum, withholding of removal, and Convention Against Torture (CAT) protection for individuals who receive a positive credible fear determination. These cases are currently assigned to immigration judges within the Justice Department’s Executive Office for Immigration Review.
“Today marks a step forward in our effort to make the asylum process fairer and more expeditious,” said Attorney General Merrick Garland. “This rule will both reduce the caseload in our immigration courts and protect the rights of those fleeing persecution and violence.”
“These proposed changes will significantly improve DHS’s and DOJ’s ability to more promptly and efficiently consider the asylum claims of individuals encountered at or near the border, while ensuring fundamental fairness,” said Secretary Alejandro N. Mayorkas. “Individuals who are eligible will receive relief more swiftly, while those who are not eligible will be expeditiously removed. We are building an immigration system that is designed to ensure due process, respect human dignity, and promote equity.”
The current system for hearing and adjudicating asylum claims at the southwest border has long needed repair. For nearly a decade, the number of such claims has ballooned, and the system has proved unable to keep pace, resulting in large backlogs and years-long delays in adjudication. The proposed rule aims to begin replacing the current system with a better and more efficient one to adjudicate protection claims fairly and expeditiously.
Under the proposed process, an individual who establishes a credible fear of removal will be referred to a USCIS asylum officer for a hearing on the protection claims. The asylum officer will be authorized to adjudicate in the first instance requests for asylum, as well as eligibility for statutory withholding of removal or for withholding or deferral of removal under the Convention Against Torture. In a denied case, the individual may request de novo administrative review by an immigration judge under a streamlined process, with further administrative appeal available through the Board of Immigration Appeals.
The rule also proposes a revision to the criteria applicable to grants of parole prior to the credible fear determination. The proposal would allow DHS to grant parole when “detention is unavailable or impracticable,” in addition to the existing criteria involving medical emergencies and law enforcement objectives.
The rule would apply to individuals who are placed into the expedited removal process on or after the effective date of the final rule. The rule would not apply to unaccompanied children or to individuals already residing in the United States. Details for submitting public comments can be found in the soon-to-be published NPRM.
This proposed rule joins a number of actions the Biden-Harris Administration is taking to build a fair, orderly, and humane immigration system, including by expanding pathways to apply for protection and opportunity in home countries, addressing the root causes of migration, and securely managing the southwest border.
Georgia Woman Pleads Guilty to Bank Fraud for COVID-Relief Fraud SchemeRead the Press Release
A Georgia woman pleaded guilty today in the Northern District of Georgia for perpetrating a scheme to fraudulently obtain more than $7.9 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Hunter VanPelt, aka Ellen Corkrum, 49, of Roswell, submitted six fraudulent PPP loan applications to four different lenders on behalf of entities she owned or controlled, namely: Georgia Nephrology Physician Associated, United Healthcare Group & Co., Nephrology Network Group LLC, First Corporate International, Corkrum Consolidated Inc., and Kiwi International Inc. Through the six PPP loan applications, VanPelt fraudulently sought more than $7.9 million in PPP loan funds, of which more than $6 million was disbursed to accounts controlled by VanPelt.
VanPelt falsely represented the number of employees and payroll expenses in each of the six PPP loan applications. To support the fraudulent PPP loan applications, VanPelt submitted fraudulent tax records, bank statements, and payroll reports. VanPelt, who legally changed her name from Ellen Corkrum to Hunter VanPelt in July 2016, submitted three of the PPP loan applications using the VanPelt name and three additional PPP loan applications using the Corkrum name.
The Department of Justice, working with law enforcement partners, seized and recovered approximately $2.1 million of the disbursed PPP funds in this matter. An additional $1.6 million of the disbursed PPP funds were seized by a bank and returned to the lender.
“VanPelt brazenly exploited this devastating national emergency for personal gain, and she is now being held accountable for her fraudulent conduct,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “PPP funds should be reserved for legitimate businesses and their hard-working employees who have suffered economically as a result of the pandemic. The Department of Justice is committed to ensuring that anyone who takes advantage of COVID-19 relief programs will be brought to justice.”
“The Paycheck Protection Program helps businesses keep their workforces employed during the COVID-19 crisis,” said Acting U.S. Attorney Kurt Erskine for the Northern District of Georgia. “When these funds are diverted by fraud, such as in this case, workers and the businesses that employ them unfortunately suffer.”
“The Paycheck Protection Program is key to survival for many small businesses during the COVID-19 crisis,” said Special Agent in Charge Chris Hacker of FBI Atlanta. “It is particularly disturbing that anyone would try to capitalize off a federal program at those businesses’ expense. The FBI will persist in its efforts to stop such fraud.”
“To support small and community banks, the Federal Home Loan banks can accept Paycheck Protection Program (PPP) loans as collateral when making loans to their members,” said Special Agent in Charge Edwin S. Bonano of the Federal Housing Finance Agency, Office of Inspector General. “The Office of Inspector General is proud to work with our partners in law enforcement to prevent, detect, and deter attempts to perpetrate fraud in the Federal Home Loan Bank System and steal the assistance intended for small business owners and employees under this important part of the CARES Act.”
VanPelt pleaded guilty to bank fraud. She is scheduled to be sentenced on Jan. 4, 2022, and faces a maximum penalty of 30 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI and FHFA-OIG are investigating the case.
Trial Attorney Chris Wenger of the National Rapid Response Strike Force of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher Huber, Deputy Chief of the Complex Frauds Section of the U.S. Attorney’s Office for the Northern District of Georgia, are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
In May, 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.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Georgia Man Convicted of Filing Fraudulent Tax ReturnsRead the Press Release
A federal jury in Athens, Georgia, convicted a Georgia man today of filing fraudulent tax returns in the name of several trusts.
According to court documents and evidence presented at trial, between 2016 and 2018, Marquet Mattox, of Lilburn, filed at least 30 fraudulent federal income tax returns in the name of at least 11 different trusts. Those returns falsely represented that the trusts had earned interest income and that federal income taxes had been withheld and paid to the IRS. Mattox then fraudulently requested refunds on behalf of the purported trusts totaling nearly $165 million. The IRS paid approximately $5 million of the requested refunds, which Mattox used to purchase a house, expensive furniture and a luxury automobile.
Mattox will be sentenced at a later date. He faces a maximum penalty of 20 years in prison on the wire fraud counts, five years on the false claims counts, and 10 years on the theft of government funds count. He also faces a period of supervised release, restitution, monetary penalties and forfeiture.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia made the announcement.
IRS-Criminal Investigation and the Treasury Department’s Office of the Inspector General investigated the case.
Trial Attorney Jessica A. Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Lyndie M. Freeman of the Middle District of Georgia are prosecuting the case.
Federal Court Finds Miami-Area Tax Preparer in Contempt for Violating Permanent InjunctionRead the Press Release
A federal court in the Southern District of Florida has held a Miami-area tax preparer in contempt for violating a permanent injunction that barred her from preparing, filing or assisting in the preparation or filing of federal tax returns for others.
The United States filed a complaint against Milagros Espinal on Feb. 7, 2011, that alleged that she had prepared returns for customers that claimed deductions for fraudulent medical expenses, charitable contributions and unreimbursed employee business expenses. According to the complaint, an IRS review of returns she prepared uncovered errors in 97% of the returns the agency examined. The parties contemporaneously filed a consent order, in which Espinal agreed to a full bar on return preparation. On Feb. 16, 2011, the court issued a permanent injunction.
On Dec. 29, 2020, the United States filed a motion for an order to show cause, requesting an evidentiary hearing and alleging that Espinal was in contempt. According to the motion, during a deposition in an unrelated civil case, Espinal testified that her profession was “income tax, taxes.” The motion alleged that a subsequent Department of Justice investigation revealed that Espinal had continued to prepare fraudulent returns, that she had never stopped doing so, despite the injunction, and that she continued to act as a “ghost” preparer, and does not sign the returns she prepares. The court granted that motion and held an evidentiary hearing on April 15, 2021.
In holding Espinal in contempt today, the court found that the United States proved by clear and convincing evidence that Espinal continued to prepare returns notwithstanding the injunction. According to the court’s order, Espinal attempted to mask her violations by acting as a “ghost” preparer, meaning that she did not sign the returns she prepared and instead instructed customers to submit the returns to the IRS as though the customers prepared them on their own. The court noted that paid preparers are required to sign the returns they prepare and that failing to do so is a violation of federal law.
The court also found that the returns Espinal filed in violation of the injunction contained numerous fraudulent claims. In particular, the order concludes that Espinal frequently fabricated fuel tax credits and that she included more than $269,095 in fabricated or overstated deductions on the returns she prepared for the customers who testified at the contempt hearing. According to the order, the court will impose a sanction on Espinal on a later date.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Virginia Man Sentenced for Role in Multimillion-Dollar Investment-Fraud SchemeRead the Press Release
A Virginia man was sentenced today in the Eastern District of Virginia to 14 years in prison for his role in an investment fraud scheme in which he and his co-conspirators stole approximately $5.7 million from victim investors.
According to court documents, James Leonard Smith, 65, of Midlothian, was convicted by a federal jury of conspiracy to commit wire fraud, wire fraud, and money laundering on Oct. 30, 2020, after a four-day trial.
According to the evidence presented at trial, from around 2014 to 2017, Smith participated in a worldwide scheme through Chimera Group Ltd., a purported investment company based out of the United Kingdom. The fraud operated as an advance-fee scheme in which the defendants acted as promoters who promised to pay the victims a sum of money at a later date in exchange for an up-front payment. Among other misrepresentations, Smith and his co-conspirators told potential victims that their principal payments would be protected based on letters of credit and other documents that purported to be from a large financial institution. However, these documents were fabricated, sometimes with the assistance of Smith himself. The evidence also showed that Smith and his co-conspirators used escrow attorneys, who were themselves part of the scheme, in order to give the victims the impression that their money would remain secure until the defendants’ promises had been kept. Smith and his co-conspirators stole at least $5.7 million from their victims.
Co-conspirator Stuart Jay Anderson, 54, of Aliso Viejo, California, an escrow attorney involved in the scheme, was sentenced to four years in prison on Dec. 3, 2020. Co-defendant James Michael Johnson, 70, of Richmond, was sentenced to more than eight years in prison on March 5. Co-defendant Brian Michael Bridge, 48, of London, England, a fugitive, was also charged in the superseding indictment, and is presumed innocent until proven guilty.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia; Inspector in Charge Eric Shen of the U.S. Postal Inspection Service Criminal Investigations Group; and Special Agent in Charge Stanley M. Meador of the FBI’s Richmond Field Office made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson.
The U.S. Postal Inspection Service, FBI’s Richmond Field Office, and the Virginia State Corporation Commission investigated the case.
Trial Attorneys Vasanth Sridharan and Christopher Jackson of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael C. Moore of the Eastern District of Virginia prosecuted the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Justice Department’s fight against white collar crime around the country.
Pharmacist Arrested for Selling COVID Vaccination Cards OnlineRead the Press Release
A licensed pharmacist was arrested today in Chicago on charges related to his alleged sale of dozens of authentic Centers for Disease Control and Prevention (CDC) COVID-19 vaccination cards on eBay.
According to court documents, in March and April 2021, Tangtang Zhao, 34, of Chicago, sold 125 authentic CDC vaccination cards to 11 different buyers for approximately $10 per card. Zhao was a licensed pharmacist in Illinois and was employed at Company 1, a pharmacy which distributed and administered COVID-19 vaccines at its physical locations nationwide. As required by the CDC, Company 1 provided a CDC Vaccination Record Card to each vaccine recipient. Zhao, who worked at Company 1 as a pharmacist during that time, obtained and subsequently offered authentic CDC vaccination cards for sale online. The indictment charges Zhao with 12 counts of theft of government property.
“We take seriously, and will vigorously investigate, any criminal offense that contributes to the distrust around vaccines and vaccination status,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “The Department of Justice and its law enforcement partners are committed to protecting the American people from these offenses during this national emergency.”
“Knowingly selling COVID vaccination cards to unvaccinated individuals puts millions of Americans at risk of serious injury or death,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office. “To put such a small price on the safety of our nation is not only an insult to those who are doing their part in the fight to stop COVID-19, but a federal crime with serious consequences.”
“Stealing and selling COVID-19 vaccination cards is inexcusable and will not be tolerated,” said Special Agent in Charge Lamont Pugh III of the U.S. Department of Health & Human Services, Office of Inspector General (HHS-OIG) – Chicago Region. “Fraudsters who engage in such unlawful conduct undermine efforts to address the pandemic and profit at the public’s expense. The health and safety of the public is our top priority, and we encourage people to obtain vaccination cards from their administering medical providers.”
Zhao is charged by indictment with 12 counts of theft of government property. Zhao made his initial court appearance on Aug. 17 before U.S. Magistrate Judge Sheila M. Finnegan of the U.S. District Court for the Northern District of Illinois. If convicted, he faces a sentence of 10 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.
The FBI and HHS-OIG are investigating the case.
Trial Attorney Leslie S. Garthwaite of the Criminal Division’s Fraud Section is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Owners/Managers of Florida Labor-Staffing Companies Indicted for Immigration Fraud and Money LaunderingRead the Press Release
An indictment was unsealed today charging three men who operated labor-staffing companies in Florida with conspiracy to harbor non-resident aliens and induce them to remain in the country and with conspiracy to commit money laundering.
According to the indictment, Mykhaylo Chugay, Oleksandr Morgunov, Volodymyr Ogorodnychuk and others owned and operated a series of labor-staffing companies in southern Florida, including Paradise Choice LLC, Paradise Choice Cleaning LLC, Tropical City Services LLC, and Tropical City Group LLC, between August 2007 and July 2021. The indictment charges that the defendants, through these staffing companies, facilitated the employment in the hospitality industry of non-resident aliens who were not authorized to work in the United States.
If convicted, the defendants each face a maximum penalty of 10 years in prison on the conspiracy to harbor aliens and induce them to remain in the United States and a maximum penalty of 20 years in prison on the money laundering conspiracy. Each count also carries the possibility of a fine and supervised release upon completion of any sentence of incarceration. 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 Juan Antonio Gonzalez for the Southern District of Florida made the announcement.
The U.S. Department of Homeland Security, Homeland Security Investigations and IRS-Criminal Investigation are investigating the case.
Trial Attorneys Sean Beaty and Jessica Kraft of the Justice Department’s Tax Division and Assistant U.S. Attorney Chris Clark of the Southern District of Florida are prosecuting the case.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Justice Department Settles Claim Against Illinois-Based IT Recruiter for Discriminating Against U.S. WorkersRead the Press Release
The Department of Justice today announced that it signed a settlement agreement with Ameritech Global Inc., an IT staffing and recruiting company based in Illinois.
The settlement resolves claims that Ameritech discriminated against U.S. workers when it posted job advertisements specifying its preference for hiring applicants with temporary work visas, and failed to consider at least three U.S. worker applicants who nevertheless applied to the advertised positions.
The department’s investigation began after a U.S. citizen filed a discrimination complaint with the Civil Rights Division against Ameritech. Based on its investigation, the department concluded that from at least Aug.1, 2019 to June 17, 2021, Ameritech posted at least three job advertisements announcing its preference to fill positions with non-U.S. citizens with immigration statuses associated with certain employment-based visas, and, in doing so, harmed U.S. workers (U.S. citizens, U.S. nationals, recent lawful permanent residents, asylees and refugees), by both unlawfully deterring many of them from applying and failing to fairly consider hiring those who nevertheless applied. Under the Immigration and Nationality Act (INA), employers are not generally allowed to discriminate in recruitment or hiring based on citizenship status.
“Employers who discourage and refuse to hire eligible job applicants based on their citizenship or immigration status must be held accountable,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will step in and vigorously enforce the law to ensure that workers are protected from such unlawful discrimination.”
Under the terms of the settlement agreement, Ameritech will pay $10,000 in civil penalties to the United States, revise its policies and procedures and train relevant employees and agents on the INA’s anti-discrimination provision.
The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status or immigration status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. More information about citizenship status discrimination under the INA is available in this flyer.
Learn more about IER’s work and how to get assistance through this brief video. 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 also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
El Departamento de Justicia resuelve una acusación contra un reclutador de informática radicado en Illinois por haber discriminado a trabajadores en este paísRead the Press Release
El Departamento de Justicia anunció hoy que ha firmado un acuerdo conciliatorio con Ameritech Global, Inc., una compañía de contratación y reclutamiento en el ámbito de la informática con sede en Illinois. El acuerdo resuelve acusaciones de que Ameritech había discriminado a trabajadores en este país cuando, al publicar anuncios de trabajo, especificó una preferencia por contratar a candidatos con visas temporales de trabajo y negarse a considerar al menos a tres candidatos que eran trabajadores en este país que, a pesar de ello, solicitaron los puestos publicados.
La investigación del Departamento comenzó después de que un ciudadano de los EE. UU. presentó una demanda de discriminación contra Ameritech ante la División de Derechos Civiles. Con base en la investigación, el Departamento concluyó que desde al menos el 1 de agosto del 2019 hasta el 17 de junio del 2021, Ameritech publicó al menos tres anuncios de trabajo que indicaban una preferencia por cubrir los puestos con individuos que no son ciudadanos estadounidenses con estatuses migratorios asociados con ciertas visas basadas en el empleo y, al hacerlo, perjudicaron a trabajadores en este país (ciudadanos de los EE. UU., nacionales de los EE. UU., residentes permanentes legales recientes, asilados y refugiados) tanto por disuadir ilegalmente a muchos de ellos de solicitar un puesto como por negarse a considerar, de manera justa, a contratar a aquellos personas que , a pesar de todo, solicitaron un puesto. En virtud de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés), a los empleadores, por lo general, no se les permite discriminar en los procesos de reclutamiento o contratación con base en el estatus de ciudadanía.
«Se debe hacer rendir cuentas a aquellos empleadores que desalientan y se niegan a contratar a candidatos laborales elegibles por motivos de su estatus migratorio o de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles intervendrá y hará cumplir, con firmeza, la ley para garantizar que los trabajadores queden protegidos de tal discriminación ilegal».
Conforme los términos del acuerdo conciliatorio, Ameritech pagará una sanción civil que asciende a 10.000 $ a los Estados Unidos; revisará sus políticas y procedimientos y capacitará a los empleados y agentes relevantes acerca de la disposición antidiscriminatoria de la INA.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación. Este folleto contiene más información sobre la discriminación con base en el estatus migratorio o de ciudadanía al amparo de la INA.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio o de ciudadanía o o bien por su nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
El Departamento de Justicia resuelve una acusación contra un reclutador de informática radicado en Illinois por haber discriminado a trabajadores en este paísRead the Press Release
El Departamento de Justicia anunció hoy que ha firmado un acuerdo conciliatorio con Ameritech Global, Inc., una compañía de contratación y reclutamiento en el ámbito de la informática con sede en Illinois. El acuerdo resuelve acusaciones de que Ameritech había discriminado a trabajadores en este país cuando, al publicar anuncios de trabajo, especificó una preferencia por contratar a candidatos con visas temporales de trabajo y negarse a considerar al menos a tres candidatos que eran trabajadores en este país que, a pesar de ello, solicitaron los puestos publicados.
La investigación del Departamento comenzó después de que un ciudadano de los EE. UU. presentó una demanda de discriminación contra Ameritech ante la División de Derechos Civiles. Con base en la investigación, el Departamento concluyó que desde al menos el 1 de agosto del 2019 hasta el 17 de junio del 2021, Ameritech publicó al menos tres anuncios de trabajo que indicaban una preferencia por cubrir los puestos con individuos que no son ciudadanos estadounidenses con estatuses migratorios asociados con ciertas visas basadas en el empleo y, al hacerlo, perjudicaron a trabajadores en este país (ciudadanos de los EE. UU., nacionales de los EE. UU., residentes permanentes legales recientes, asilados y refugiados) tanto por disuadir ilegalmente a muchos de ellos de solicitar un puesto como por negarse a considerar, de manera justa, a contratar a aquellos personas que , a pesar de todo, solicitaron un puesto. En virtud de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés), a los empleadores, por lo general, no se les permite discriminar en los procesos de reclutamiento o contratación con base en el estatus de ciudadanía.
«Se debe hacer rendir cuentas a aquellos empleadores que desalientan y se niegan a contratar a candidatos laborales elegibles por motivos de su estatus migratorio o de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles intervendrá y hará cumplir, con firmeza, la ley para garantizar que los trabajadores queden protegidos de tal discriminación ilegal».
Conforme los términos del acuerdo conciliatorio, Ameritech pagará una sanción civil que asciende a 10.000 $ a los Estados Unidos; revisará sus políticas y procedimientos y capacitará a los empleados y agentes relevantes acerca de la disposición antidiscriminatoria de la INA.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus migratorio o de ciudadanía o bien por la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas y represalias e intimidación. Este folleto contiene más información sobre la discriminación con base en el estatus migratorio o de ciudadanía al amparo de la INA.
Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio o de ciudadanía o o bien por su nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Justice Department Settles Lawsuit Alleging Disability-Based Discrimination in Residential Rental Properties in North DakotaRead the Press Release
The Department of Justice announced today that Hampton Corporation Inc. and several related individuals and entities have agreed to settle a federal lawsuit alleging that they violated the Fair Housing Act (FHA) and Americans with Disabilities Act (ADA) by failing to design and construct apartment complexes and a rental office in North Dakota so they are accessible to people with disabilities. The Department of Justice previously resolved claims against the architect and engineer involved in the design of one of the four apartment complexes at issue in the lawsuit.
“For over 30 years, the Fair Housing Act has required that new housing complexes be accessible to individuals with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “By requiring modifications to the properties, this settlement will reduce substantial barriers faced by people with disabilities in their own homes and will advance the Fair Housing Act’s promise of housing that is accessible for all.”
“Our U.S. Attorney’s Office and the Department of Justice are committed to fighting discriminatory treatment in housing,” said Acting U.S. Attorney Nicholas W. Chase for the District of North Dakota. “We hope that this enforcement action and others like it will serve as a deterrent to developers, architects and engineers everywhere that they cannot cut corners by ignoring longstanding accessibility requirements. Our office’s Civil Rights Coordinator in our Civil Division, AUSA Tara Iversen, along with Paralegal Specialist Michelle Erdmann, teamed with talented trial attorneys from the Department of Justice’s Housing and Civil Enforcement Section to produce a great result for persons with disabilities in North Dakota and the region.”
Today’s settlement, which must be approved by the U.S. District Court for the District of North Dakota, resolves a lawsuit the department filed in March 2020. The lawsuit alleged that significant physical accessibility barriers existed at four apartment complexes and a rental office designed and constructed by Hampton Corporation Inc.; Daniel Stauss; Scott Stauss; Steeple Apts LLC; HDD Inc.; and Times Square Townhomes II Inc.
Under the terms of the settlement, the defendants must correct inaccessible features in the common areas of the properties and within the individual units, including: removing steps; replacing steeply-sloped walkways; adding accessible routes to mailboxes and site arrival points; ensuring that obstacles do not protrude into the circulation path; installing lever handles on doors; widening doorways; retrofitting bathrooms so they are accessible for wheelchair users; and relocating outlets and controls to within a wheelchair user’s reach range. The defendants must also attend fair housing training, contribute $100,000 to a settlement fund (which, combined with the department’s earlier settlement with the architect and engineer, brings the settlement fund total to $120,000) for people who suffered harm due to the lack of accessible features at the properties, pay a civil penalty of $5,000 to the United States, and ensure that any future housing they design or construct complies with the FHA.
The properties with alleged violations are the following:
- Townhomes at Charleswood, located at 1908 Burlington Drive in West Fargo, North Dakota;
- Steeples Apartments, located at 2850 and 2950 36th Avenue South in Grand Forks, North Dakota;
- South Hampton Townhomes, located at 3174, 3274 and 3374 36th Avenue South in Grand Forks, North Dakota;
- Carrington Court Townhouse Apartments, located at 3383 Primrose Court in Grand Forks, North Dakota; and
- The rental office serving Carrington Court Townhouse Apartments, South Hampton Townhomes, and Steeples Apartments, located at 3001 36th Avenue South in Grand Forks, North Dakota.
The Justice Department, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Among other protections, the FHA requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic physical accessibility features, including, among other things, accessible routes without steps to all single-story, ground-floor units and to all units in a building served by an elevator. The ADA protects individuals with disabilities from discrimination in public accommodations, including the rental office at issue in this case. The full and fair enforcement of the FHA, the ADA, and their mandates to integrate individuals with disabilities are major priorities of the Civil Rights Division.
Individuals who believe they or someone they know may have had difficulty due to the inaccessible conditions at any of these properties, either when they or someone associated with them lived there or considered living there, should contact the Department of Justice at 1-800-896-7743, ext. 9994. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online at www.civilrights.justice.gov.
Federal Court Bars Florida Tax Preparation Businesses and Their Tax Return Preparers from Preparing Tax ReturnsRead the Press Release
A federal court in the Southern District of Florida, West Palm Beach Division, has permanently enjoined four Palm Beach-area tax return preparers from preparing federal income tax returns for others and from owning or operating any tax return business in the future.
In issuing an injunction against Marcus Alty; Jeanait Mathurin; Prestige Tax Services Inc. (dba Just Tax Services LLC); and Excellent Tax Services “LLC” (dba Excellent Tax Services), the court found that the defendants prepared tax returns making false or fraudulent claims for the American Opportunity Tax Credit and Earned Income Tax Credit, often based on fabricated business income and expenses. The order further holds that the defendants prepared returns that falsely claimed fuel tax credits and that reported false education expenses. The civil complaint filed against the defendants alleged that their fraudulent activities resulted in a loss to the Treasury of over $5 million.
The injunctions against defendants were entered by default: according to the order against them, Alty, Mathurin, and Prestige Tax Services failed to appear in the action, while Excellent Tax Services filed an answer but otherwise failed to participate in the litigation. The court also ordered a 90-day discovery period to allow the United States to determine the appropriate disgorgement amount for the ill-gotten gains that defendants received for the preparation of tax returns containing falsely reported items.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.