District Not Recorded
The source did not name an office we could identify. These records remain unassigned rather than guessed.
Kroger Shooter Sentenced to Life in Prison for Hate Crime MurdersRead the Press Release
A Kentucky man was sentenced in federal court to life in prison without parole in connection with his racially motivated murder of two Black patrons at a Kroger grocery store and his attempted murder of a third in Jeffersontown, Kentucky.
Gregory A. Bush, 53, of Louisville, Kentucky, previously pleaded guilty-but-mentally-ill to state charges for murder, attempted murder and wanton endangerment arising out of the shooting and was sentenced to a life term in state prison.
During his federal plea hearing, Bush admitted that on Oct. 24, 2018, he drove to a Kroger grocery store in Jeffersontown armed with a Smith & Wesson, model 411, .40-caliber pistol. In the store, Bush followed a Black man, who was shopping with his grandson, for the length of an aisle before pulling the gun from his waistband and shooting the victim in the back of the head. Bush then shot the victim several more times in the torso, killing him. Bush had no prior relationship with the victim and chose to shoot him because of the victim’s race. Bush then re-holstered his gun and calmly walked out of the store.
In the parking lot, Bush walked up to a Black woman and shot her several times in the head and body, killing her. Bush had no prior relationship with this victim and chose to shoot her because of her race.
Seconds later, Bush encountered a Black man who was in lawful possession of a handgun. The third victim asked Bush what was going on, and Bush, without responding, began walking toward him with the gun drawn. The third victim fired at Bush, and Bush returned fire. After about a minute, Bush stopped shooting and walked away. Bush had no prior relationship with the third victim and chose to shoot at him because of his race. Bush next encountered a white man, who was legally armed with a firearm. Bush told him, “Don’t shoot me [and] I won’t shoot you. Whites don’t shoot whites.”
“The defendant is being held accountable for his vicious, racially motivated attack on three Black individuals who were targeted because of the color of their skin, resulting in the untimely death of two of his victims and irreparable harm to the third,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Racially motivated acts of violence must not be tolerated in our country today. The Civil Rights Division of the Department of Justice will continue to work with our federal, state and local partners to ensure that individuals who commit bias-motivated crimes are brought to justice for their actions.”
“Life in prison is appropriate in light of the brutal acts committed by the defendant against our fellow citizens,” said Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky. “The initial law enforcement response and investigation, collaboration by federal and state prosecutors, and the sentence imposed serve notice to all that race-based violence will be met with swift and exacting justice.”
“Today, Mr. Bush was held responsible for his vile conduct,” said Special Agent in Charge Robert Brown of the FBI Louisville Field Office. “We are a diverse city and country, bound together by shared values and beliefs. We are also a nation of laws. When those like Mr. Bush betray our shared values and violate our laws, the FBI and its Department of Justice partners will be ready to hold them accountable. This is just one example of how hate and violence will not be tolerated and have no place in our community.”
“This was a heinous crime where innocent victims were gunned down for no other reason than the color of their skin,” said Special Agent in Charge R. Shawn Morrow of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Louisville Division. “The ATF Louisville Division worked tirelessly alongside our law enforcement partners to seek justice for the victims, their families and the community at large impacted by this hate crime. Today’s life sentence in prison demonstrates law enforcement’s stance against race-based violence and our commitment to justice.”
This case was investigated by the FBI Louisville Office, the ATF Louisville Field Division, and the Jeffersontown Police Department, and was prosecuted by Special Litigation Counsel Christopher J. Perras of the DOJ’s Civil Rights Division and Assistant U.S. Attorney Amanda Gregory of the Western District of Kentucky.
Justice Department Settles Claim Against Operators of a Utah On-The-Job Training Program for Discriminating Against AsyleeRead the Press Release
The Department of Justice today announced that it signed a settlement agreement with Montana-based Easterseals-Goodwill Northern Rocky Mountain Inc. (ESGW), which also operates in Utah, Idaho and Wyoming. The settlement resolves a claim that an ESGW office in Utah discriminated against an asylee by rejecting her documents that were valid proof of work authorization and demanding different documents to verify her employment eligibility, based on her immigration status. The investigation also determined that ESGW required other non-U.S. citizens to present unnecessary immigration documents to prove their authorization to work in the United States, in violation of the Immigration and Nationality Act (INA)’s anti-discrimination provision.
The department opened its investigation after the asylee filed a discrimination complaint against ESGW based on her experience with an ESGW on-the-job training program. The investigation showed that ESGW did not allow the asylee to provide her choice of legally acceptable documentation to show that she was authorized to work in the United States. The asylee had presented a valid state ID and unrestricted Social Security card, which are sufficient to complete the federal form (Form I-9) employers use to verify an employee’s identity and work eligibility. However, ESGW rejected the documents and demanded unnecessary additional documents to prove work authorization. The department also concluded that another Utah ESGW office demanded an immigration document from all non-U.S. citizens as a regular practice, even if these workers had already presented other documents sufficient to complete the Form I-9. The INA’s anti-discrimination provision prohibits employers from requesting more or different documents than necessary or rejecting documents that reasonably appear genuine to prove work authorization based on employees’ citizenship, immigration status, or national origin. Instead, in the INA, Congress determined that workers may choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States, regardless of citizenship status or national origin.
“Employers may not demand more documents than required by law to prove work authorization based on a worker’s citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to protecting asylees and others who are not U.S. citizens from unlawful discrimination.”
Under the terms of the settlement agreement, ESGW will pay $6,186 in civil penalties to the United States, revise its policies and procedures and train relevant employees on the INA’s anti-discrimination provision.
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, 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. More information on the rights of refugees and asylees in the Form I-9 and E-Verify process is available here. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (e.g., 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.
Justice Department Reaches Agreement with San Luis Obispo County Jail to Ensure Safe and Equal Access to its Programs for Inmates with Mobility DisabilitiesRead the Press Release
The Justice Department today reached a settlement under Title II of the Americans with Disabilities Act (ADA) with San Luis Obispo County, California, to ensure that inmates with mobility disabilities have an equal opportunity to participate in San Luis Obispo Jail’s (SLO Jail) programs, services and activities.
Based on its investigation, the United States determined that SLO Jail facilities were inaccessible to inmates with mobility disabilities and denied them equal access to the Jail’s programs, services and activities. SLO fully cooperated with the Justice Department’s investigation and indicated a commitment to remedying barriers to equal access.
“Jails and prisons across our country must ensure that their facilities are accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Compliance with the Americans with Disabilities Act ensures that inmates with disabilities have equal access to basic necessities, such as showers and sleeping areas, and to all activities that are offered to inmates without disabilities. We commend the County for recognizing its obligations and working with the Department of Justice to bring the facilities at its jail into compliance with the law.”
“People with mobility disabilities are entitled to have access to cells and showers they can safely use while incarcerated,” said Acting United States Attorney for the Central District of California Tracy L. Wilkison. “San Luis Obispo County has taken important steps to ensure that the facilities at its jail are in compliance with the ADA.”
Under the ADA, governmental entities that operate jails or prisons must make changes necessary to ensure that inmates with mobility disabilities do not serve time in a manner that is more difficult, or less safe, than those without disabilities.
The department opened its investigation after receiving a complaint by a former inmate at SLO Jail who has a mobility disability and uses a prosthetic leg. The inmate alleged that SLO Jail failed to provide him with an accessible cell or shower, causing him to fall repeatedly and, in one instance, to break his leg. The complainant also alleged that, because of his disability, SLO Jail denied him equal opportunities for recreation and other programs, leading him to experience unnecessary isolation.
Under the agreement, SLO Jail will make architectural changes to its facilities to ensure that they are accessible to inmates with disabilities. The Jail will also train relevant staff, designate an ADA coordinator and implement an ADA complaint procedure. In addition, the Jail will pay $175,000 to the complainant to compensate him for his pain and suffering.
For more information about the ADA and today’s agreement, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY). ADA complaints may be filed online at http://www.ada.gov/complaint/.
High-Level Member of Hacking Group Sentenced to Prison for Scheme that Compromised Tens of Millions of Debit and Credit CardsRead the Press Release
A Ukrainian national was sentenced today in the Western District of Washington to seven years in prison for his role in the criminal work of the hacking group FIN7. The defendant was also ordered by the court to pay restitution in the amount of $2,500,000.
According to documents filed in the case, statements made at the sentencing, and public documents, Andrii Kolpakov, 33, who has used a number of different names, served as a high-level hacker, whom the group referred to as a “pen tester,” for FIN7. He was arrested in Lepe, Spain, on June 28, 2018, at the request of U.S. law enforcement and was extradited to the United States on June 1, 2019. In June 2020, he pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to commit computer hacking.
According to public documents, since at least 2015, members of FIN7 (also referred to as Carbanak Group and the Navigator Group, among other names) engaged in a highly sophisticated malware campaign to attack hundreds of U.S. companies, predominantly in the restaurant, gambling and hospitality industries. FIN7 hacked into thousands of computer systems and stole millions of customer credit and debit card numbers that were then used or sold for profit. FIN7, through its dozens of members, launched waves of malicious cyberattacks on numerous businesses operating in the United States and abroad. FIN7 carefully crafted email messages that would appear legitimate to a business’s employees and accompanied emails with telephone calls intended to further legitimize the emails. Once an attached file was opened and activated, FIN7 would use an adapted version of the Carbanak malware, in addition to an arsenal of other tools, to access and steal payment card data for the business’s customers. Since 2015, many of the stolen payment card numbers have been offered for sale through online underground marketplaces.
In the United States alone, FIN7 successfully breached the computer networks of businesses in all 50 states and the District of Columbia, stealing more than 20 million customer card records from over 6,500 individual point-of-sale terminals at more than 3,600 separate business locations. According to court documents, victims incurred enormous costs that, according to some estimates, exceeded $1 billion. Additional intrusions occurred abroad, including in the United Kingdom, Australia and France. Companies that have publicly disclosed hacks attributable to FIN7 include Chipotle Mexican Grill, Chili’s, Arby’s, Red Robin and Jason’s Deli.
Kolpakov was involved with FIN7 from at least April 2016 until his arrest in June 2018. He also managed other hackers tasked with breaching the security of victims’ computer systems. During the course of the scheme, Kolpakov received compensation for his participation in FIN7, which far exceeded comparable legitimate employment in Ukraine. Moreover, FIN7 members, including Kolpakov, were aware of reported arrests of other FIN7 members, but nevertheless continued to attack U.S. businesses.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington; and Special Agent in Charge Donald M. Voiret of the FBI’s Seattle Field Office made the announcement.
This case is the result of an investigation conducted by the Seattle Cyber Task Force of the FBI and the U.S. Department of Justice. The Justice Department’s Office of International Affairs, the National Cyber-Forensics and Training Alliance, numerous computer security firms and financial institutions, FBI offices across the nation and globe, as well as a number of international agencies provided significant assistance. Spanish law enforcement authorities provided significant assistance by arresting Kolpakov.
This case was prosecuted by Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Francis Franze-Nakamura and Steven Masada of the Western District of Washington.
El Departamento de Justicia resuelve una acusación presentada contra operadores de un programa de capacitación laboral en Utah por haber discriminado a un postulante que era asiladaRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha firmado un acuerdo conciliatorio con Easterseals-Goodwill Northern Rocky Mountain Inc. («ESGW»), con sede en Montana y operaciones en Utah, Idaho y Wyoming. El acuerdo resuelve una acusación de que la oficina de ESGW en Utah había discriminado a una asilada al rechazar sus documentos, los cuales eran pruebas válidas de su autorización para trabajar, y exigir documentos diferentes para verificar su elegibilidad para trabajar, por motivos de su estatus de ciudadanía. Asimismo, la investigación también determinó que ESGW requirió que otros no ciudadanos de los EE. UU. presentasen documentos migratorios innecesarios para demostrar su autorización para trabajar en los Estados Unidos, en contra de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés).
El Departamento inició su investigación tras la presentación por parte de una asilada de una denuncia de discriminación contra ESGW que se basaba en su experiencia con el programa de capacitación laboral de ESGW. La investigación halló que ESGW no permitió a la asilada escoger los documentos legalmente aceptables que quería presentar para demostrar que estaba autorizada para trabajar en los Estados Unidos. La asilada había presentado un carnet de identidad estatal válido y una tarjeta de seguro social sin restricciones, lo que debe ser suficiente como para completar el formulario federal (Formulario I-9) que los empleadores usan para comprobar la identidad de sus empleados, así como su elegibilidad para trabajar. No obstante, ESGW rechazó los documentos y pidió documentos adicionales innecesarios para demostrar una autorización para trabajar. Asimismo, el Departamento concluyó que, como práctica habitual, otra oficina de ESGW en Utah exigía un documento migratorio a todo individuo no ciudadano de los EE. UU., incluso cuando estos trabajadores ya habían presentado otros documentos que deberían ser suficientes como para completar el Formulario I-9. La disposición antidiscriminatoria de la INA prohíbe que los empleadores pidan documentos adicionales o diferentes a los que sean necesarios o que rechacen documentos que parecen ser genuinos para demostrar la autorización para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen. A su vez, en la INA, el Congreso determinó que los trabajadores pueden elegir los documentos válidos y legalmente aceptables que desean presentar para demostrar su elegibilidad para trabajar en los Estados Unidos, independientemente de su estatus de ciudadanía o nacionalidad de origen.
«Los empleadores no pueden exigir, por motivos del estatus migratorio o de ciudadanía de un trabajador, más documentos de los que por ley se requieren para demostrar su autorización para trabajar» afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles se ha comprometido a proteger a los asilados y otros individuos que no son ciudadanos de los EE. UU. de la discriminación ilícita».
Conforme los términos del acuerdo conciliatorio, ESGW pagará una sanción civil que asciende a 6.186 $ a los Estados Unidos; revisará sus políticas y procedimientos y capacitará a los empleados 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. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Hay más información sobre los derechos de refugiados y asilados en el proceso del Formulario I-9 e E-Verify aquí. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio o de ciudadanía, o bien por su nacionalidad de origen, en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (p. ej. el Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
El Departamento de Justicia resuelve una acusación presentada contra operadores de un programa de capacitación laboral en Utah por haber discriminado a un postulante que era asiladaRead the Press Release
El Departamento de Justicia anunció hoy que ha firmado un acuerdo conciliatorio con Easterseals-Goodwill Northern Rocky Mountain Inc. («ESGW»), con sede en Montana y operaciones en Utah, Idaho y Wyoming. El acuerdo resuelve una acusación de que la oficina de ESGW en Utah había discriminado a una asilada al rechazar sus documentos, los cuales eran pruebas válidas de su autorización para trabajar, y exigir documentos diferentes para verificar su elegibilidad para trabajar, por motivos de su estatus de ciudadanía. Asimismo, la investigación también determinó que ESGW requirió que otros no ciudadanos de los EE. UU. presentasen documentos migratorios innecesarios para demostrar su autorización para trabajar en los Estados Unidos, en contra de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés).
El Departamento inició su investigación tras la presentación por parte de una asilada de una denuncia de discriminación contra ESGW que se basaba en su experiencia con el programa de capacitación laboral de ESGW. La investigación halló que ESGW no permitió a la asilada escoger los documentos legalmente aceptables que quería presentar para demostrar que estaba autorizada para trabajar en los Estados Unidos. La asilada había presentado un carnet de identidad estatal válido y una tarjeta de seguro social sin restricciones, lo que debe ser suficiente como para completar el formulario federal (Formulario I-9) que los empleadores usan para comprobar la identidad de sus empleados, así como su elegibilidad para trabajar. No obstante, ESGW rechazó los documentos y pidió documentos adicionales innecesarios para demostrar una autorización para trabajar. Asimismo, el Departamento concluyó que, como práctica habitual, otra oficina de ESGW en Utah exigía un documento migratorio a todo individuo no ciudadano de los EE. UU., incluso cuando estos trabajadores ya habían presentado otros documentos que deberían ser suficientes como para completar el Formulario I-9. La disposición antidiscriminatoria de la INA prohíbe que los empleadores pidan documentos adicionales o diferentes a los que sean necesarios o que rechacen documentos que parecen ser genuinos para demostrar la autorización para trabajar con base en el estatus migratorio o de ciudadanía del empleado o bien por su nacionalidad de origen. A su vez, en la INA, el Congreso determinó que los trabajadores pueden elegir los documentos válidos y legalmente aceptables que desean presentar para demostrar su elegibilidad para trabajar en los Estados Unidos, independientemente de su estatus de ciudadanía o nacionalidad de origen.
«Los empleadores no pueden exigir, por motivos del estatus migratorio o de ciudadanía de un trabajador, más documentos de los que por ley se requieren para demostrar su autorización para trabajar» afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «La División de Derechos Civiles se ha comprometido a proteger a los asilados y otros individuos que no son ciudadanos de los EE. UU. de la discriminación ilícita».
Conforme los términos del acuerdo conciliatorio, ESGW pagará una sanción civil que asciende a 6.186 $ a los Estados Unidos; revisará sus políticas y procedimientos y capacitará a los empleados 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. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.
Hay más información sobre los derechos de refugiados y asilados en el proceso del Formulario I-9 e E-Verify aquí. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio o de ciudadanía, o bien por su nacionalidad de origen, en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (p. ej. el Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688; llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); enviar un correo electrónico a [email protected]; inscribirse a un seminario en línea gratuito; o visitar la página web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.
Texas Attorney and Client Sentenced for Conspiracy to Defraud the United States and Income Tax EvasionRead the Press Release
Texas attorney and former member of the Idaho legislature, John O. Green, and his client, Texas inventor Thomas Selgas, were sentenced yesterday for conspiracy to defraud the United States and tax evasion. Selgas was sentenced to 18 months in prison and Green to six months.
Selgas and Green were convicted by a jury in Federal District Court in Dallas on Jan. 15, 2020. According to the evidence presented at trial, Selgas conspired with Green, an attorney licensed to practice in Texas, to defraud the United States by obstructing the IRS’s efforts to assess and collect Selgas’s taxes. Selgas and his wife owed approximately $1.1 million in taxes that Selgas refused to pay. When the IRS sought to collect those taxes, Selgas concealed, with the assistance of Green, substantial funds by using Green’s Interest on Lawyers Trust Account (IOLTA) rather than using financial accounts in Selgas’s own name. An IOLTA is an escrow bank account used by a lawyer to hold money in trust for clients. From 2007 to 2017, Selgas deposited proceeds from the sale of gold coins and other income into Green’s IOLTA. At the direction of Selgas, Green would then use that escrow account to pay the personal expenses of Selgas and his wife, including their credit card bills. This use of the IOLTA concealed Selgas’s income from the IRS and thwarted its ability to identify funds he possessed, which could be used to offset the taxes owed. Selgas and Green also filed a false tax return on behalf of MyMail Ltd., an intellectual property development and licensing partnership Selgas co-founded, omitting a substantial portion of the partnership’s actual income.
In addition to the term of imprisonment, U.S. District Judge Karen Gren Scholer ordered Selgas to serve thee years of supervised release and to pay approximately $1,323,776.92 in restitution to the United States. Judge Scholer ordered Green to serve three years of supervised release and to pay approximately $679,501.50 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Prerak Shah of the Northern District of Texas made the announcement.
Trial Attorneys Robert Kemins and Mitchell Galloway of the Justice Department’s Tax Division prosecuted the case.
Tennessee Doctor Pleads Guilty to Hydrocodone Distribution Resulting in DeathRead the Press Release
A Tennessee physician pleaded guilty today in the Western District of Tennessee to causing the death of one of his patients through his illegal prescribing of hydrocodone.
According to court documents, Thomas K. Ballard III, 63, of Jackson, owned and operated the Ballard Clinic, from which he issued prescriptions for dangerous, addictive controlled pharmaceutical drugs without any legitimate medical purpose. Ballard engaged in inappropriate sexual contact with several female patients while he ignored red flags that they were abusing the medications he prescribed. These abuses were often reflected in Ballard’s own medical records.
Ballard’s treatment records reflected that he believed that a particular patient had psychiatric issues, and that she was abusing her medication, fabricating personal trauma and tampering with drug screens. The records also reflected aberrant drug screens and notations about the patient’s incarceration and receipt of prescriptions elsewhere for suboxone, a drug used to treat opioid dependency disorder. In spite of that history, Ballard prescribed the patient hydrocodone repeatedly, including on May 28, 2015, when Ballard issued her the prescription for the hydrocodone on which she fatally overdosed.
“Today’s plea is a somber reminder of the human cost of illegal prescribing,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Above all, physicians are trusted not to harm their patients. When opioid addictions are fueled at the hands of predatory prescribers, death is all too often the result. The Department of Justice and its law enforcement partners will continue to use all of the tools at our disposal to hold such prescribers accountable.”
“This case represents Tennessee Bureau of Investigation Medicaid Fraud Control Division’s commitment to fighting the opioid epidemic plaguing our state, exposing fraudulent health care schemes, and holding offenders accountable for their dishonest criminal conduct,” said Special Agent-In-Charge Terry L. Reed Sr. of the Tennessee Bureau of Investigation (TBI).
“Ballard has proven himself to be nothing more than a predator in a white lab coat, and he should expect to be punished accordingly,” said Special Agent in Charge J. Todd Scott of the DEA’s Louisville Division. “Doctors take an oath to first do no harm, and instead, Ballard chose to put his own licentious interests above his patients’ well-being.”
“Ballard’s callous disregard for the well-being of his patients and the principles of his profession caused the death of a vulnerable woman and put other lives at risk,” said Special Agent in Charge Derrick L. Jackson with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “The damage he caused is severe and irreparable. HHS-OIG, alongside other law enforcement agencies, works to pursue medical professionals who inflict harm on patients in their care.”
Ballard pleaded guilty to a count of illegal drug distribution resulting in death. He will be sentenced to 20 years in prison, the statutory mandatory minimum, on Sept. 21, if the court accepts his plea agreement. A federal district court judge will determine any non-incarceration aspect of Ballard’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The TBI, DEA, and HHS-OIG investigated the case.
Trial Attorneys Jason Knutson, Drew Pennebaker, and Emily Petro of the Criminal Division’s Fraud Section are prosecuting the case.
United States Seizes Websites Used by the Iranian Islamic Radio and Television Union and Kata’ib HizballahRead the Press Release
Today, pursuant to court orders, the United States seized 33 websites used by the Iranian Islamic Radio and Television Union (IRTVU) and three websites operated by Kata’ib Hizballah (KH), in violation of U.S. sanctions.
On Oct. 22, 2020, the Office of Foreign Assets Control (OFAC) designated IRTVU as a Specially Designated National (SDN) for being owned or controlled by the Islamic Revolutionary Guard Corps Quds Force (IRGC). SDNs are prohibited from obtaining services, including website and domain services, in the United States without an OFAC license. OFAC’s announcement explained that components of the government of Iran, to include IRTVU and others like it, disguised as news organizations or media outlets, targeted the United States with disinformation campaigns and malign influence operations. Thirty-three of the websites seized today were operated by IRTVU. The 33 domains are owned by a United States company. IRTVU did not obtain a license from OFAC prior to utilizing the domain names.
Three additional websites seized today were operated by KH. On July 2, 2009, OFAC designated KH an SDN, and the Department of State designated KH a Foreign Terrorist Organization. The announcements described KH as an Iraqi terrorist organization that committed, directed, supported or posed a significant risk of committing acts of violence against Coalition and Iraqi Security Forces. OFAC further explained that the IRGC provides lethal support to KH and other Iraqi Shia militia groups who target and kill Coalition and Iraqi Security Forces. The three domains operated by KH were owned by a United States company. KH did not obtain a license from OFAC prior to utilizing the domain names.
These website seizures were investigated by the U.S. Department of Commerce’s Bureau of Industry and Security, Office of Export Enforcement and the FBI. The National Security Division’s Counterintelligence and Export Control Section prosecuted the seizure.
Assistant Attorney General John C. Demers for the Justice Department’s National Security Division; Special Agent in Charge J.C. (Chris) Hacker, of the FBI’s Atlanta Field Office; and Special Agent in Charge Ariel Joshua Leinwand, of the Bureau of Industry and Security, Office of Export Enforcement’s Atlanta Office, made the announcement.
The National Security Division’s Counterintelligence and Export Control Section is investigating this matter in coordination with the FBI’s Counterterrorism Division and Atlanta Field Office.
Texas Man Sentenced to 40 Years in Prison for Running Child Obscenity WebsiteRead the Press Release
A Texas man was sentenced today in the Western District of Texas to 40 years in prison for multiple obscenity crimes involving children.
Thomas Alan Arthur, 65, of Terlingua, was convicted by a federal jury on Jan. 21, 2021, of three counts of trafficking in obscene visual representations of the sexual abuse of a child, five counts of trafficking in obscene text stories about the sexual abuse of children, and one count of engaging in the business of selling obscene matters involving the sexual abuse of children.
According to court documents and evidence introduced at trial, Arthur began operating the Mr. Double website in 1996 and began charging members for access to the site in 1998. The website was dedicated to publishing writings that detail the sexual abuse of children, including the rape, torture and murder of infants and toddlers. The evidence at trial showed that all submissions for publication were reviewed and approved by Arthur before he posted them on the site. Some of the author pages contained drawings depicting children engaged in sexually explicit conduct. Evidence at trial showed that the website was Arthur’s sole source of income for more than 20 years. The site was taken offline in November 2019 when the FBI executed a search warrant at his residence near Terlingua, where Arthur administered the site. Pursuant to a Mutual Legal Assistance Treaty with the Netherlands, additional evidence was obtained from the server in the Netherlands, where the site was hosted.
Additionally, according to court documents and statements made at the sentencing, Arthur sexually assaulted two females who came forward during the investigation of this case. Court documents and statements made in court showed that in approximately 1992, Arthur drugged an adult woman living with him, sexually assaulted her and video recorded it. In another instance, in the early 1980s, Arthur molested a girl when she was four or five years old, who was the daughter of a friend and business associate.
In addition to the term of imprisonment, Arthur was sentenced to three years of supervised release and a $50,000 fine.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and U.S. Attorney Ashley C. Hoff for the Western District of Texas made the announcement.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Assistant U.S. Attorney Monica Morrison of the Middle District of Tennessee and Assistant U.S. Attorney Fidel Esparza of the Western District of Texas are prosecuting the case with assistance from the Justice Department’s Office of International Affairs.
The FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Texas Department of Public Safety, and Brewster County Sheriff’s Office investigated the case. Special thanks are extended to the government of the Netherlands for its assistance.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Owner and CEO of Government Contracting Firm Pleads Guilty to Bribery SchemeRead the Press Release
A North Carolina woman pleaded guilty today in the Eastern District of Virginia to engaging in a bribery scheme with a former contracting officer for the Broadcasting Board of Governors (BBG), now known as the U.S. Agency for Global Media.
According to court documents, Rita M. Starliper, 60, of Greensboro, was the owner and CEO of a government contracting firm that previously provided professional staffing services to the BBG. Between late 2014 and late 2016, Starliper, a BBG contracting officer, and others associated with Starliper’s company agreed to and did hire and pay the contracting officer’s relative for a job involving minimal work and that resulted in payments to the relative of more than $68,000. In exchange, the BBG contracting officer took official actions that benefitted Starliper and her company, including the awarding of a professional staffing contract worth millions of dollars. The BBG contracting officer also took steps to steer the procurement process and provide preferential treatment to Starliper’s company.
Starliper pleaded guilty to one count of conspiracy to commit bribery and honest services mail fraud. She is scheduled to be sentenced on Nov. 5, 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.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Acting U.S. Attorney Raj Parekh of the Eastern District of Virginia, Special Agent in Charge Elisabeth Kaminsky of the U.S. Department of State Office of Inspector General and Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office made the announcement.
The Department of State Office of Inspector General and the FBI investigated the case.
Special Assistant U.S. Attorney for the Eastern District of Virginia and Senior Litigation Counsel Edward P. Sullivan and Trial Attorney Jordan Dickson of the Justice Department’s Public Integrity Section are prosecuting the case.
Mark Mayo Sentenced to Federal Prison 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 Mark Mayo, age 43, from Barrigada, Guam, was sentenced in the United States District Court of Guam to 120 months imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine Hydrochloride and Attempted Possession of Methamphetamine Hydrochloride with Intent to Distribute, in violation of 21 U.S.C. §§ 841(a)(1) and 846. The Court also ordered 5 years of supervised release following imprisonment and a mandatory $200 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.
On May 10, 2018, the United States Postal Inspection Service discovered a parcel of mail that contained suspected methamphetamine. Joseph R. Roman II subsequently claimed the package at the Barrigada Post Office. Roman then entered a car driven by Daniel Topasna Pangelinan. Surveillance units observed Roman dispose of the package behind a shelter in Dededo. Law enforcement retrieved the package and detained Roman and Pangelinan. Pangelinan later stated that Mark Mayo was supposed to pick up the discarded package and deliver it to Lovelia Mendoza. Soon after the package was discarded, Mayo called Pangelinan and said that the “feds” got the package. Messages on Pangelinan’s phone corroborated his version of events.
On February 10, 2021, a federal jury found Mayo guilty as charged. The evidence revealed that the package contained 418.7 grams of methamphetamine hydrochloride with a 98% purity.
U.S. Attorney Anderson stated, “Our office is committed to aggressively prosecuting drug offenses in Guam and the CNMI. Substantial penalties, including mandatory minimum terms of imprisonment, apply to many of these crimes. Considering the effects of methamphetamine on our communities, we must make every effort toward deterrence and accountability.”
FBI Honolulu Special Agent in Charge (SAC) Steven Merrill said, “Drugs have a detrimental impact in the community of Guam and we will not cede our communities to drug traffickers who have no regard for the harm they bring into our neighborhoods. The FBI Honolulu Division, Guam Resident Agency is dedicated to identifying and investigating individuals engaged in narcotics trafficking and holding them accountable. We will continue to work with our partners such as the U.S. Postal Inspection Service, the Department of Homeland Security Investigations, and the United States Attorney’s Office in our collective efforts to identify, investigate and prosecute narcotics traffickers, and make our communities safer.”
This case was a result of a joint investigation by the Federal Bureau of Investigation, United States Postal Inspection Service, and Homeland Security Investigations. The case was prosecuted by Laura C. Sambataro, Assistant United States Attorney in the District of Guam.
Joint EU-U.S. Statement Following the EU-U.S. Justice and Home Affairs Ministerial MeetingRead the Press Release
On 22 June 2021, the Portuguese Presidency of the Council of the European Union hosted the EU-U.S. Ministerial Meeting on Justice and Home Affairs in Lisbon. The United States was represented by the Secretary for Homeland Security Alejandro N. Mayorkas, and by Deputy Assistant Attorney General and DOJ Counselor for International Affairs Bruce Swartz. The European Union, hosting the meeting, was represented by the Vice-President of the European Commission Margaritis Schinas, the Commissioner for Justice Didier Reynders, the Commissioner for Home Affairs Ylva Johansson, as well as the Portuguese Ministers for Justice Francisca Van Dunem and for Home Affairs Eduardo Cabrita, on behalf of the current Presidency of the Council of the European Union. The incoming Presidency of the Council was represented by the Slovenian Minister of the Interior Aleš Hojs.
The meeting in Lisbon was an opportunity to reaffirm the commitment of the European Union and the United States to work together and renew the transatlantic partnership at a time of major challenges for our societies. The two sides concurred that cooperation on Justice and Home Affairs remains crucial, as we gradually emerge from the COVID-19 pandemic. They further underscored their mutual commitment to uphold democracy and the respect for the rule of law.
The United States and the European Union will continue their joint efforts and work together to address and combat existing and emerging threats that affect our societies. Terrorism in all its forms remains a top security threat for the United States and the European Union, requiring prevention, permanent vigilance, adaptation and resilience from all relevant actors. Both sides praised the operational work and information exchange between EU agencies and U.S. law enforcement and judicial authorities to combat terrorism and serious and organised crime. Examples of such work were presented.
The United States and the European Union expressed their strong concern with the rise of violent extremism, as well as crimes inspired by hate speech, racism and xenophobia both in Europe and the United States. Violent extremism represents a direct threat to our democratic societies and deserves renewed attention by law enforcement, judicial authorities, the private sector and civil society. The United States and the European Union will pursue and expand their information exchanges on violent extremist groups, in particular, those with transnational linkages.
The United States and the European Union stressed the importance of Passenger Name Record (PNR) data exchange as a key instrument to prevent, detect, investigate and prosecute terrorism, combat serious crime, including child exploitation, and protect the safety of citizens, as supported by the recent joint evaluation of the PNR Agreement between the European Union and the United States. Both sides expressed their mutual commitment to the continued exchange of PNR data while respecting privacy requirements, and to work together on the findings and recommendations of the joint evaluation, in an open, swift and constructive way.
The United States and the European Union acknowledged the need to cooperate and shape a digital future based on our shared democratic values. The United States and the European Union acknowledged the potential benefits and risks of using Artificial Intelligence technologies for law enforcement and the judiciary. They also reaffirmed their dedication to develop and use such technologies in a trustworthy manner in conformity with human rights obligations. They further exchanged views on current and upcoming European Union efforts on tackling illegal content online, including the need to improve the cooperation between the authorities and online platforms to detect ongoing criminal activity. The United States and the European Union commit to continue to work together on how law enforcement and judicial authorities can most effectively exercise their lawful powers to combat serious crime both online and offline. They agreed on the importance of together combating ransomware, including through law enforcement action, raising public awareness on how to protect networks, as well as the risk of paying the criminals responsible, and to encourage those states that turn a blind eye to this crime to arrest and extradite or effectively prosecute criminals on their territory.
As regards bilateral and multilateral instruments to facilitate the fight against cybercrime, the United States and the European Union restated their commitment to negotiate as soon as possible an EU-U.S. agreement facilitating access to e-evidence for the purpose of cooperation in criminal matters. Both sides also welcomed the recent approval by the Committee of State Parties to the Budapest Convention of the draft text of the Second Additional Protocol of the Budapest Convention, which remains the primary instrument for international cooperation on cybercrime. The United States and the European Union noted with appreciation their very good cooperation in the framework of the negotiations on a possible future United Nations international legal instrument on cybercrime and committed to continue to closely coordinate their respective positions.
The United States and the European Union underlined the importance of well-managed and humane migration and discussed their respective efforts to develop comprehensive and long-lasting migration and asylum policies. Humanitarian protection should always be available to those who qualify for it, while unmeritorious claims must be detected quickly (including through information sharing and modern identity management techniques) and prevented from overwhelming our systems or public confidence in them. This agenda will require cooperation with third countries of origin, transit and destination, which also have a responsibility to discourage people from enlisting smugglers and traffickers and otherwise putting their lives at risk by taking a dangerous, irregular journey. In this context, both sides reaffirmed their interest in expanding the transatlantic dialogue on migration and mobility, with a focus on sharing lessons learned, exploring complementary pathways to migration, addressing the root causes of migration, improving the return and readmission of irregular migrants and enhancing cooperation in combatting migrant smuggling.
The United States and the European Union welcomed the progress made by the four EU Member States that have not yet been designated to the Visa Waiver Program and reiterated their willingness to pursue ongoing efforts in the context of the tripartite process and bilateral discussions.
Finally, the United States and the European Union reiterated their support to ensure safe and secure mobility and continued to exchange information on their respective measures towards the gradual resumption of non-essential international travel. Both sides committed to reinitiate secure travel between the United States and EU Member States as soon as possible, based on the principles of mutual cooperation, efficient operation of the international travel system and scientific evidence.
Reaffirming their joint commitment to advance together towards common solutions in all these areas, the United States and the European Union agreed to meet again in the second half of 2021 in Washington, D.C.
Department of Justice Announces Formation of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
Today, the Department of Justice announced it will launch five cross-jurisdictional firearms trafficking strike forces within the next 30 days to help reduce violent crime by addressing illegal gun trafficking in significant firearms trafficking corridors. Tomorrow, the Attorney General will discuss with the President, law enforcement officials, and local and community leaders, this initiative, which, along with other measures, the Department of Justice is undertaking as part of the administration-wide comprehensive strategy to combat the rise in violent crime.
Gun violence is a major driver in the increase in violent crime over the last 18 months, and today’s action is an important step in stemming the supply of illegally trafficked firearms which are used in deadly shootings and other violent crimes.
“Working with our local partners to tackle violent crime is one of the Justice Department’s most important responsibilities,” said Attorney General Merrick B. Garland. “Today, the department is taking another concrete step to address violent crime and illegal firearms trafficking. Our firearms trafficking strike forces will investigate and disrupt the networks that channel crime guns into our communities with tragic consequences. This effort reflects our shared commitment to keep communities safe.”
The five strike forces will focus on significant firearms trafficking corridors that channel guns into New York, Chicago, Los Angeles, the San Francisco Bay Area and Washington, D.C. They will be led by designated U.S. Attorneys who will coordinate with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and local law enforcement partners in places where firearms originate and where they are used to commit crimes. The strike forces will share information and otherwise collaborate across districts where firearms trafficking schemes cross state or jurisdictional boundaries to focus enforcement against entire trafficking networks, from the places where guns are unlawfully obtained to the areas where they are used to commit violent crimes.
At an event today hosted by the Police Executive Research Forum, attended by hundreds of law enforcement professionals from around the country, the Deputy Attorney General spoke about the strike force launch, emphasizing the department’s commitment to working closely with state, local, tribal and territorial law enforcement partners as part of a comprehensive approach to reduce crime and make our communities safer.
Today’s announcement builds on the Justice Department’s broader Violent Crime Reduction Initiative, announced on May 26, 2021, that supports local communities in preventing, investigating and prosecuting gun violence and other violent crime. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers that provide weapons to violent offenders are an enforcement priority across the country.
Turkish Businessman Arrested in Austria on Charges that He Allegedly Laundered over $133 Million in Fraud ProceedsRead the Press Release
A Turkish businessman was arrested in Austria on June 19, at the request of the U.S. Department of Justice. This arrest followed a superseding indictment returned by a federal grand jury in Salt Lake City, Utah, on April 28, which was unsealed today. The superseding indictment charged Sezgin Baran Korkmaz with one count of conspiring to commit money laundering, 10 counts of wire fraud, and one count of obstruction of an official proceeding.
According to the superseding indictment, Korkmaz laundered over $133 million in fraud proceeds through bank accounts that he controlled in Turkey and Luxembourg. The proceeds allegedly related to a scheme by Jacob Kingston, Isaiah Kingston, and Levon Termendzhyan to defraud the U.S. Treasury by filing false claims for over $1 billion in refundable renewable fuel tax credits for the production and sale of biodiesel by their company, Washakie Renewable Energy LLC, in Plymouth, Utah.
Korkmaz and his co-conspirators allegedly used proceeds from the fraud to acquire the Turkish airline Borajet, hotels in Turkey and Switzerland, a yacht named the Queen Anne, and a villa and apartment on the Bosphorus strait in Istanbul.
The indictment further charges Korkmaz with 10 counts of wire fraud. As alleged, Korkmaz devised a scheme to defraud Jacob Kingston and Isaiah Kingston by falsely representing that he could provide them with protection, through unnamed government officials, from a federal grand jury investigation and civil lawsuits.
The United States will seek to extradite Korkmaz to the United States so that he can appear before U.S. District Judge Jill Parrish of the District of Utah to face these charges. If convicted, Korkmaz faces a maximum penalty of 20 years in prison for the money laundering conspiracy count, 20 years in prison for each of the wire fraud counts, and five years in prison for the obstruction count. Judge Parrish 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 Andrea T. Martinez for the District of Utah made the announcement.
IRS Criminal Investigation, the Environmental Protection Agency Criminal Investigation Division, and the Department of Defense DCIS are investigating the case. The Justice Department’s Office of International Affairs is providing significant assistance.
Trial Attorneys Richard Rolwing and Arthur Ewenczyk, and Senior Litigation Counsel John Sullivan of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Naturalized U.S. Citizen from Ethiopia Arrested on Charge of Fraudulently Obtaining CitizenshipRead the Press Release
A Georgia man has been arrested on criminal charges related to allegations that he lied to obtain U.S. citizenship.
According to the indictment, which was unsealed following the arrest, Mezemr Abebe Belayneh, 65, of Snellville, served as a civilian interrogator at a makeshift prison in Dilla, Ethiopia, during a period in the late 1970s known as the Red Terror. At the prison, Abebe ordered and participated in the severe physical abuse and interrogation of prisoners held on the basis of their political beliefs. The indictment alleges that Abebe unlawfully procured U.S. citizenship, to which he was not entitled, by concealing his involvement in the Red Terror when he falsely claimed that he had not persecuted anyone because of their political opinions and had never committed a crime for which he had not been arrested.
“Human rights violators have no home in the United States,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “No matter how much time has passed, the Department of Justice will find and prosecute individuals who committed atrocities in their home countries and covered them up to gain entry to the United States.”
“The laws of the United States are designed to provide refuge for the victims of human rights violation and to exclude those who commit them,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “The defendant’s alleged lies through his immigration and naturalization process subverted this system. We commend our law enforcement partners at the Department of Homeland Security and the dedicated team at the Department of Justice who work tirelessly to assure that individuals such as the defendant do not have a safe haven in our communities.”
“Abebe’s lies and horrible past deeds have thankfully come back to haunt him,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Now he will be held accountable. Thanks to some great work from the agents and officers involved in this case as well as our law enforcement partners, justice will be served.”
Abebe is charged with two counts of unlawful procurement of naturalization. The maximum sentence for each count is 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A conviction would also result in automatic revocation of Abebe’s U.S. citizenship.
Homeland Security Investigations’ Atlanta Field Office is investigating the case, and coordination was provided by the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation, and the use or recruitment of child soldiers.
Trial Attorneys Jamie Perry and Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Jessica Morris of the U.S. Attorney’s Office for the Northern District of Georgia are prosecuting the case, with assistance from HRSP Senior Historian Dr. Christopher Hayden.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE (1-866-347-2423) or its online tip form at www.ice.gov/tips.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Indiana Man Sentenced to 46 Months in Prison for Making Racially Motivated Threats Toward Black Neighbor and for Unlawfully Possessing FirearmsRead the Press Release
An Indiana man was sentenced Friday in federal court for making racially motivated threats to intimidate and interfere with his neighbor, who is Black, in violation of the criminal provision of the Fair Housing Act, and for unlawfully possessing firearms.
Shepherd Hoehn, 51, was sentenced by U.S. District Court Judge Jane Magnus-Stinson to 46 months in federal prison and three years of supervised release for these offenses. Hoehn previously pleaded guilty to these charges on Feb. 12, 2021.
According to court documents and statements made during the hearing, on June 18, 2020, a construction crew began working at the direction of Hoehn’s neighbor to remove a tree from the neighbor’s property. Upon learning of the tree removal, Hoehn became angry and took several steps to threaten, intimidate and interfere with his neighbor and the construction workers. Specifically, Hoehn placed and burned a cross above the fence line facing his neighbor’s property; created and displayed a swastika on the outer side of his fence, facing his neighbor’s property; created and displayed a large sign containing a variety of anti-Black racial slurs next to the swastika; visibly displayed a machete near the sign with the racial slurs; loudly played the song “Dixie” on repeat; and threw eggs at his neighbor’s house. On July 1, 2020, the FBI executed of a federal search warrant at Hoehn’s home. During the search, several firearms and drug paraphernalia were located.
“Every person in the United States has the right to live in their home free from the threat of violence based on race,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The federal government will not tolerate, and will prosecute to the fullest extent the law allows, the sort of race-based threat that this defendant engaged in. We will continue fighting against racially motivated conduct, too often used to drive people from their homes and their communities.”
“Mr. Hoehn was held responsible for his vile conduct,” said Acting U.S. Attorney John E. Childress of the Southern District of Indiana. “We are a diverse nation, bound together by shared values and beliefs. We are also a nation of laws. Those like Mr. Hoehn who would betray our shared values and beliefs through behavior such as this rightly suffer the penalties our laws prescribe.”
“Incidents of harassment and intimidation such as this are intended to create fear and this sentence clearly shows targeting someone based on race, sexual identity or religious beliefs will not be tolerated,” said Special Agent in Charge Paul Keenan of the FBI Indianapolis Division. “Crimes motivated by bias will continue to be investigated by the FBI and our law enforcement partners, and perpetrators held responsible for their actions.”
This case was investigated by the FBI, with assistance from the Lawrence Police Department. Assistant U.S. Attorney Brad Shepard of the Southern District of Indiana and Trial Attorney Katherine DeVar of the Civil Rights Division prosecuted the case.
Former Supplement Company Owner Pleads Guilty to Unlawful Distribution of Anabolic Steroids and Steroid-like DrugsRead the Press Release
A Georgia resident and his company pleaded guilty today to a felony charge relating to the distribution of anabolic steroids and steroid-like drugs in purported dietary supplements.
According to court documents, James Chadwick Brooks, 41, of Norcross, and his company, CCB Nutrition LLC, pleaded guilty to introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead the U.S. Food and Drug Administration (FDA) and consumers. The government alleged that from 2016 to 2019, Brooks marketed supplements containing anabolic steroids such as androsterone, trestolone, epiandrosterone and methylstenbolone to the bodybuilding and fitness community. Anabolic steroids are Schedule III substances under the Controlled Substances Act, and they may have dangerous effects on users, including increasing the risk of liver damage, coronary artery disease, strokes and heart attacks.
The government also alleged that the supplements distributed by Brooks included a product labeled as containing Arimistane, an aromatase inhibitor typically used with steroids to decrease estrogen production. The FDA has long warned that aromatase inhibitors have been linked to significant health risks such as a decreased rate of bone maturation and growth, decreased sperm production, infertility, aggressive behavior, adrenal insufficiency, kidney failure and liver dysfunction. In pleading guilty, Brooks admitted that he knowingly took steps to mislead and defraud the government and consumers, in part by using an unregistered contract manufacturer to import ingredients and produce the unlawful products.
“Marketing unapproved and potentially unsafe drugs as dietary supplements endangers consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue working with its law enforcement and agency partners to prosecute those who flout the law at the expense of public health.”
“When Brooks and his company marketed and sold steroids and other supplements within the fitness community, they undermined the FDA approval process and seriously risked the health and safety of consumers,” said Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia. “The United States Attorney’s Office, along with our partners at the FDA, have an obligation to ensure the products consumers ingest are safe and can be trusted. We will continue that mission and bring to justice anyone who attempts to undermine that trust.”
“Those who market unlawful dietary supplements that contain potentially harmful drugs, such as steroids, put the public health at risk,” said FDA Assistant Commissioner for Criminal Investigations Catherine A. Hermsen. “We will continue to investigate those who jeopardize consumers’ health and bring them to justice.”
Brooks and CCB Nutrition LLC pleaded guilty before Judge James P. Jones in U.S. District Court for the Western District of Virginia. Brooks is scheduled to be sentenced on Oct. 18, and faces a maximum penalty of three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDA’s Office of Criminal Investigations is investigating the case.
Assistant U.S. Attorney Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia and Trial Attorney Speare Hodges of the Civil Division’s Consumer Protection Branch are prosecuting the case.
Former Deutsche Bank Commodities Trader Sentenced to Prison for Fraud SchemeRead the Press Release
A former commodities trader was sentenced today in the Northern District of Illinois to 12 months and a day in prison for a scheme to commit wire fraud affecting a financial institution.
James Vorley, 41, of the United Kingdom, was convicted by a federal jury on Sept. 25, 2020. Based on the evidence presented at trial, Vorley, who was employed as a precious metals trader at Deutsche Bank in London, engaged in a scheme to defraud other traders on the Commodity Exchange Inc., which was a public exchange. The defendant, together with Cedric Chanu and other Deutsche Bank traders, defrauded other market participants through a deceptive trading practice known as “spoofing.” Specifically, Vorley placed fraudulent orders that he did not intend to execute in order to create the false appearance of supply and demand and to induce other traders to transact at prices, quantities, and times that they otherwise would not have traded. Chanu is scheduled to be sentenced on June 28.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Assistant Director in Charge William Sweeney of the FBI’s New York Field Office made the announcement.
The FBI’s New York Field Office investigated the case.
Deputy Chief Brian Young, Acting Principal Assistant Chief Avi Perry, and Trial Attorney Leslie S. Garthwaite of the Criminal Division’s Fraud Section are prosecuting the case.
Endeavor Executives Resign from Live Nation Board of Directors after Justice Department Expresses Antitrust ConcernsRead the Press Release
The Department of Justice announced today that two executives of Endeavor Group Holdings Inc. – Chief Executive Officer and Director Ariel Emanuel, and President Mark Shapiro – have resigned their positions on the Live Nation Entertainment Inc. Board of Directors after the department expressed concerns that their positions on the Live Nation Board created an illegal interlocking directorate. An interlocking directorate is where one person – or an agent of one person or company – serves as an officer or director of two companies. Section 8 of the Clayton Act prohibits the same person or company from serving as an officer or director of two competing companies, except under certain defined safe harbors.
Endeavor and Live Nation compete closely in many sports and entertainment markets. Both Live Nation and Endeavor, through its wholly owned and minority owned subsidiaries, promote and sell tickets and VIP packages that include tickets, lodging and travel accommodations, to live music, sporting and other entertainment events. Based on U.S. revenues, the interlock did not qualify for any of the Section 8 safe harbors.
“These resignations ensure that Endeavor and Live Nation will compete independently,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Executives are not permitted to hold board positions on companies that compete with each other. The division will enforce the antitrust laws to make sure that all companies compete on the merits.”
Section 8 imposes bright line prohibitions designed to prevent harm from competitors having overlapping directors or managers, regardless of whether any anticompetitive conduct actually occurs. Interlocking directorates can restrict competition by providing a conduit for the exchange of competitively sensitive information and by facilitating coordination between competing companies. By eliminating the opportunity to coordinate – explicitly or implicitly – through interlocking directorates, Section 8 prevents violations of the antitrust laws before they occur.
Endeavor Group Holdings Inc. is a Delaware corporation headquartered in Beverly Hills, California. Among other things, it owns various sports and entertainment properties; produces, promotes, and tickets sports and entertainment events; and represents entertainers and athletes.
Live Nation Entertainment Inc. is also a Delaware corporation headquartered in Beverly Hills, California. It is a leading producer and operator of live music concerts. Live Nation also is a leading live entertainment ticketing and marketing company.
Jerome M. Cruz Sentenced to Prison for Unemployment Fraud Charge Related to COVID-19 PandemicRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Jerome Michael Cruz, age 26, from Barrigada, Guam, was sentenced in the United States District Court of Guam to ten months imprisonment for Federal Program Theft in violation of 18 U.S.C. §§ 666(a)(1)(A) and (b) and Accessing Protected Computer in Furtherance of Fraud in violation of 18 U.S.C. §§ 1030(a)(4) and (c)(3)(A). The Court also ordered three years of supervised release following imprisonment, $14,210.00 in restitution, and a mandatory $200 special assessment fee.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Guam Department of Labor (GDOL), provides unemployment insurance benefits for individuals who are unemployed as a result of the COVID-19 pandemic and those who are not covered by typical unemployment programs (e.g., the self-employed, independent contractors, or gig economy workers).
Jerome Michael Cruz was employed by GDOL as a Customer Service Representative assisting the public with PUA and FPUC claims. While employed, Cruz filed a claim for PUA benefits on his own behalf, falsely certifying that he was unemployed and eligible for benefits. Cruz used his knowledge and privileged access to the GDOL computer system to modify existing PUA claims and to submit fraudulent PUA claims on behalf of other persons while directing the benefits from these fraudulent claims into a bank account he controlled. As part of the scheme, Cruz logged in to the GDOL system using other employee’s credentials to certify and approve these fraudulent claims. From September 2020 through November 2020, Cruz obtained and attempted to obtain a total of $93,000 in benefits.
United States Attorney Anderson stated, “Unemployment assistance has provided vital support to many people suffering from the economic effects of the pandemic. Nationwide, the scale of fraud related to the disbursement of CARES Act funds has been staggering. While Guam has not seen the same level of criminal activity, this case reveals that it is occurring. Any theft by a government employee in a position of trust should concern the public. I applaud GDOL for holding its employees accountable.”
FBI Honolulu Special Agent in Charge (SAC) Steven B. Merrill stated, “The money in the government's financial assistance funds—particularly during a crisis like a pandemic—are essential to people’s survival. This case is an example of an individual who chose to line his own pockets with money intended to help those who truly need it. Thanks to the partnership and hard work of the Guam Department of Labor and United States Attorney's Office, we were able to stop this. And to those criminal opportunists out there I say: the FBI is watching, we will catch you, and you will learn the price for defrauding your fellow citizens."
Guam Department of Labor Director David Dell'Isola stated, "I want to thank the FBI who worked so quickly to bring this case to conclusion. We hope this sets an example and discourages others from putting in fraudulent claims."
This case was a joint investigation by the Federal Bureau of Investigation and Guam Department of Labor. The case was prosecuted by Benjamin K. Petersburg, Assistant United States Attorney in the District of Guam.
Two Former Tennessee Correctional Officers Sentenced for Civil Rights OffensesRead the Press Release
Two former Tennessee Department of Corrections (TDOC) Correctional Officers were sentenced today for assaulting an inmate in violation of a federal civil rights statute.
Nathaniel Griffin, 31, and Tanner Penwell, 24, were both sentenced to a year and a day in prison plus three years of supervised release. These are the final sentencings arising out of a staff assault of an inmate inside a cell in the Mental Health Unit at the Northwest Correctional Complex in Tiptonville, Tennessee. Four other former officers previously pleaded guilty in this case and were sentenced in federal court.
“When correctional officers abuse their authority, they erode the public’s trust in law enforcement and that is unacceptable,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “No correctional officer is above the law and the Justice Department will not tolerate any civil rights violations. We are committed to ensuring all correctional officers keep federal prisons safe and secure and that they carry out their duties with the utmost integrity.”
“The U.S. Attorney’s Office for the Western District of Tennessee will continue to prioritize the criminal prosecution of public employees who violate the civil rights of others,” said Acting U.S. Attorney Joseph C. Murphy Jr. for the Western District of Tennessee. “Our goal is to ensure that everyone – no matter who they are or their standing in the community – is treated in accordance with the requirements of the US Constitution by public officials.”
“When correctional officers abuse their authority and harm inmates, it not only violates our civil rights laws, it undermines the criminal justice system as a whole,” said Special Agent in Charge Douglas M. Korneski of the FBI Memphis Field Office. “These sentences should send a clear message that the FBI makes it a priority to bring to justice any law enforcement officer who violates the civil rights of those they are sworn to protect.”
In 2019, Griffin and Penwell both pleaded guilty using unlawful force while acting under color of law. In connection with their guilty pleas, Griffin and Penwell admitted that they punched the inmate, identified in the charging documents by the initials R.T., after he had already been beaten by another officer. They further admitted that they punched R.T. even though he never posed a threat to them or the other correctional officers. In total, R.T. was punched more than 30 times by officers. All three officers who assaulted R.T. ultimately pleaded guilty to a federal civil rights offense.
This case was investigated by the Memphis Field Office of the FBI with the support of the TDOC, and was prosecuted by Trial Attorney Rebekah J. Bailey of the Civil Rights Division and Assistant U.S. Attorney David Pritchard of the U.S. Attorney’s Office for the Western District of Tennessee.
Justice Department Settles with North Carolina School District to Provide Equal Opportunities to English Learner StudentsRead the Press Release
The Justice Department announced today a settlement agreement with the Rowan-Salisbury Board of Education to resolve the department’s investigation into the Rowan-Salisbury School System’s (District) programs for its English learner students. The department’s investigation found system-wide failures to provide these students with the instruction and support they need to learn English and fully participate in school. The department conducted its investigation under the Equal Educational Opportunities Act of 1974.
“Students and parents who are not fluent in English have a right to access all of their school’s education programs and activities — and access starts with meaningful communication and appropriate instruction by school districts,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department recognizes that today’s English learner students are tomorrow’s bilingual graduates. These students will bring essential and diverse language skills into our workforce and communities. We are encouraged that the Rowan-Salisbury School System has committed to the goals of equity and fairness at the heart of this agreement and we will continue to fight to ensure that all students enjoy access to educational opportunity regardless of background.”
Under the settlement agreement, the District will increase language instruction for all English learner students, including those with disabilities, so they can become fluent in English. The District will also train its teachers and administrators on how to support English learner students in academic subjects such as math, science and social studies. The District will continue to improve its translation and interpretation services for Limited English Proficient parents so all parents can fully participate in their children’s education. The Justice Department will monitor the district’s implementation of the settlement agreement over the course of the next three full school years.
The Spanish version of the press release is available here: El Departamento de Justicia llega a un acuerdo con un distrito escolar de Carolina del Norte para la provisión de la igualdad de oportunidades a estudiantes que están aprendiendo inglés | ESPANOL | Department of Justice. The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Department of Justice’s Civil Rights Division. 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/.
Justice Department Settles with North Carolina Dental Offices over HIV DiscriminationRead the Press Release
The Justice Department announced today that it has reached a settlement to resolve a claim that Night and Day Dental Inc. discriminated against a woman with HIV in violation of the Americans with Disabilities Act (ADA).
Night and Day Dental operates nine dental offices throughout North Carolina. This settlement is part of the department’s Barrier-Free Health Care Initiative (initiative), a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation to ensure that people with disabilities, including those who are deaf or hard of hearing, who have HIV and who have mobility disabilities, have equal access to medical services.
Title III of the ADA prohibits dentists and other health care providers from discriminating against people with disabilities, including HIV. Following an investigation, the department found that Night and Day Dental discriminated against a woman with HIV when it refused to accept her as a new patient because of her HIV status. The patient was seeking routine dental care, including a cleaning and check-up. In addition, Night and Day Dental has a policy of requiring certain bloodwork results from patients with HIV before deciding whether to provide dental care, when in fact requiring such results is not medically necessary or recommended.
“Turning away patients with HIV or requiring them to provide information that is not medically recommended, creates unfair barriers to health care for people with HIV,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The ADA requires health care providers to treat patients based on current medical knowledge about their particular health conditions, and not based on stereotypes or misconceptions about a disability. The Justice Department is committed to ensuring that people with HIV do not face discrimination in health care settings or other areas of life.”
Under the settlement, Night and Day Dental must pay $30,000 to the victim of the discrimination. In addition, Night and Day Dental must train its staff on the ADA, develop and use a non-discrimination policy, and report and explain to the department every time it either refuses to treat a person with HIV or stops providing treatment after learning of a patient’s HIV.
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 Barrier Free Health Care Initiative visit www.ada.gov/usao-agreements.htm. For more information about this agreement or the ADA, please visit www.ada.gov or call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383). For more information on the Civil Rights Division, please visit www.justice.gov/crt. Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.
El Departamento de Justicia llega a un acuerdo con un distrito escolar de Carolina del Norte para la provisión de la igualdad de oportunidades a estudiantes que están aprendiendo inglésRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo de conciliación con la Junta Educativa de Rowan-Salisbury, el cual resuelve la investigación del Departamento de los programas del sistema escolar de Rowan-Salisbury (el Distrito) para sus estudiantes que están aprendiendo inglés. La investigación del Departamento halló que incumplió, de manera generalizada, con su deber de proporcionar a estos estudiantes con la enseñanza y el apoyo que necesitan para aprender inglés y participar plenamente en la vida escolar. El Departamento llevó a cabo su investigación en virtud de la Ley de Igualdad de Oportunidades Educativas de 1974.
«Los estudiantes y padres que no dominan el inglés tienen el derecho a acceder a todos los programas y actividades educativas de su escuela, y ese acceso comienza con la comunicación significativa y la enseñanza apropiada por parte de los distritos escolares», declaró la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles. «El Departamento de Justicia reconoce que los estudiantes que están aprendiendo inglés hoy serán los graduados bilingües de mañana. Estos estudiantes aportan destrezas lingüísticas esenciales y diversas a nuestras comunidades y mano de obra. Nos anima ver cómo el sistema escolar de Rowan-Salisbury se ha comprometido con los objetivos de equidad y justicia que forman parte del corazón de este acuerdo y seguiremos luchando por asegurar que todos los estudiantes puedan disfrutar del acceso a las oportunidades educativas, independientemente de sus antecedentes.
Conforme al acuerdo de conciliación, el Distrito expandirá la enseñanza lingüística para estudiantes que están aprendiendo inglés, incluyendo aquellos que tienen discapacidades, para que puedan dominar el inglés. Asimismo, el Distrito capacitará a sus maestros y administradores en cuanto a la forma correcta de apoyar a estudiantes que están aprendiendo inglés en asignaturas académicas como matemáticas, ciencias o estudios sociales. El Distrito seguirá mejorando sus servicios de traducción e interpretación para padres cuyo dominio del inglés es limitado para que todos los padres puedan participar plenamente en la educación de sus hijos. Por otra parte, el Departamento de Justicia supervisará la implementación del acuerdo por parte del Distrito durante los próximos tres años escolares completos.
La ejecución de la ley de Igualdad de Oportunidades Educativas de 1974 es una de las prioridades principales de la División de Derechos Civiles del Departamento de Justicia. Para más información sobre la División de Derechos Civiles del Departamento de Justicia, puede visitar su sitio web en www.justice.gov/crt. Para más información sobre la labor de la Sección de Oportunidades Educativas, vaya a https://www.justice.gov/crt/educational-opportunities-section. Miembros del público también pueden informar de posibles vulneraciones de derechos civiles en https://civilrights.justice.gov/report/.
Colorado Man Pleads Guilty to Federal Hate Crime After Unprovoked Stabbing of Black ManRead the Press Release
A Colorado man pleaded guilty today to a federal hate crime for stabbing a Black man from Ontario, Oregon while the man was sitting in a fast-food restaurant.
Nolan Levi Strauss, 27, pleaded guilty to a hate crime involving an attempt to kill.
According to court documents, on the morning of Dec. 21, 2019, a man walked into an Arby’s restaurant and adjoining Pilot Travel Center in Ontario where he planned to provide documentation for a pending job application. The man sat in a booth by himself, waiting to meet with the restaurant manager, when Strauss entered the building and approached the man from behind.
Suddenly, unprovoked and without warning, Strauss stabbed the man twice in the neck. The man tried to grab Strauss’s hands and take the knife, and, in the process, managed to prevent Strauss from stabbing him again. A maintenance worker approached Strauss and directed him to drop the knife several times. Finally, the stabbing victim broke free from Strauss’s grip and ran to the other side of the restaurant before collapsing on the floor. Meanwhile, the maintenance worker used a belt to secure Strauss’s hands behind his back and waited for police to arrive.
While they waited, the worker asked Strauss why he stabbed the man. Strauss replied, “Because he was Black, and I don’t like Black people.” Strauss was arrested at the scene. He later admitted he was trying to kill the man because was he was Black.
As a result of Strauss’s attack, the stabbing victim suffered two lacerations to his neck. He was evaluated in Ontario and subsequently life-flighted to a hospital in Boise, Idaho for emergency surgery.
“The defendant is being held accountable for his vicious, racially-motivated attack on a Black man who was targeted because of the color of his skin,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Racially motivated acts of violence must not be tolerated in our country today. The Civil Rights Division of the Department of Justice will continue to work with our federal, state and local partners to ensure that individuals who commit bias motivated crimes are brought to justice for their actions.”
“This crime serves as a horrifying reminder that racism and bigotry still exist and threaten the safety of communities of color,” said Acting U.S. Attorney Scott Erik Asphaug for the District of Oregon. “Hate crimes not only hurt victims, but spread fear across entire communities. This conviction should send a strong message that federal law enforcement will not tolerate hate-motivated acts of violence and will move swiftly to hold those responsible accountable.”
“Everyone deserves to go to work without fearing they will be a victim of violence because of how they look or how they live. Racist attacks like this one—powered by hate and grounded in ignorance—strike at the heart of our community,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon. “We should all draw strength from our diversity and work together to protect our neighbors.”
On Sept. 17, 2020, a federal grand jury in Eugene returned a single-count indictment charging Strauss with a hate crime involving an attempt to kill.
Strauss faces a maximum sentence of life in prison. He will be sentenced on Sept. 9 before U.S. District Court Judge Michael J. McShane.
Assistant Attorney General Kristen Clarke and Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the Ontario Police Department, Oregon State Police, and the Malheur County District Attorney’s Office. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon, and Cameron A. Bell, Trial Attorney for the Civil Rights Division.
CITGO Petroleum Corp. Will Pay over $19 Million for Injuries to Natural Resources Resulting from its Oil Spill at its Refinery in Lake Charles, LouisianaRead the Press Release
Houston, Texas-based CITGO Petroleum Corporation has agreed to pay $19.69 million to resolve federal and state claims for natural resource damages under the Oil Pollution Act and the Louisiana Oil Spill Prevention and Response Act.
The United States and Louisiana concurrently filed a civil complaint along with the proposed consent decree. The complaint seeks money damages under the Oil Pollution Act and the Louisiana Oil Spill Prevention and Response Act for injuries to natural resources resulting from CITGO’s major oil discharge into the Calcasieu River in June of 2006 from its wastewater treatment facility at its Lake Charles refinery. The complaint alleges that CITGO discharged millions of gallons of waste (slop) oil and oily wastewater from two ten-million-gallon storm surge and wastewater tanks at its treatment facility at the Lake Charles refinery. Approximately 150 miles of shoreline were polluted with CITGO’s oil, including residential and marsh areas. The discharged oil killed birds and fish and other aquatic life, contaminated aquatic and shoreline habitats, forced the closure of the ship channel, and disrupted recreational uses of the impacted river and lakes.
“Oil companies have a responsibility to protect our waters, people, wildlife and diverse habitats from oil spills, and those who violate that duty will be held accountable for the harms they cause,” said Acting Assistant Attorney General Jean E. Williams for the Justice Department’s Environment and Natural Resources Division. “We are glad to work with our federal and state natural resource partners on this major effort to help restore and enhance the environment in Louisiana.”
“While oil and gas producers are a major source of employment in Louisiana, they have a sacred obligation to protect our environment and use our resources wisely,” stated U.S. Attorney Alexander C. Van Hook for the Western District of Louisiana. “This settlement sends a clear signal that those who pollute our environment will be held accountable.”
Of the $19,688,149.83 CITGO is required to pay under the consent decree, $19.16 million is for natural resource damages for the spill, which the federal and state trustees will jointly use to plan, design and perform restoration projects to compensate for the harms caused by the oil spill. The consent decree also secures payment from CITGO for the trustees’ remaining unpaid injury assessment costs, which total over $528,000.
Today’s action was filed by the Department of Justice and the State on behalf of the federal and State trustees for natural resources. The designated federal trustees for the natural resources impacted by CITGO’s oil spill are the U.S. Department of Commerce’s National Oceanic and Atmospheric Administration and the U.S Department of the Interior’s Fish and Wildlife Service. The designated state trustees are the Louisiana Oil Spill Coordinator’s Office, Department of Public Safety & Corrections, the Louisiana Department of Wildlife and Fisheries, the Louisiana Department of Natural Resources, the Louisiana Department of Environmental Quality and the Louisiana Coastal Protection and Restoration Authority. The federal and state trustees have worked together to perform substantial injury assessment work and are engaged in joint restoration planning efforts.
In an earlier related Clean Water Act enforcement trial spearheaded by the United States on behalf of the Environmental Protection Agency, the district court determined that the cause of this avoidable disaster was CITGO’s gross negligence in the operation and maintenance of its wastewater treatment facility and the lack of adequate storage and treatment capacity. CITGO had been improperly using the tanks to accumulate oil, sludge and oily wastewater at its treatment facility for years. Due to the lack of proper operations and the inadequate storage and treatment capacity at the facility, the tanks overflowed during a rainstorm. At least 54,000 barrels of slop oil (2,268,000 gallons) and untold millions of gallons of oily wastewater breached the faulty secondary containment berm around the tanks and flowed into the waterways, including the adjacent Indian Marais waterway, the Calcasieu River and the Calcasieu Estuary.
The court found that CITGO “does not appear to have recognized the importance of compliance, pollution control, environmental responsibility, and the overall duty imposed on businesses to operate safely.” The court found that CITGO’s oil spill was “massive, excessive, and a tragedy” and that CITGO “failed to inform the Coast Guard of the true nature of the incident.” CITGO was ordered to perform substantial corrective actions to improve its wastewater treatment facility’s storage and treatment capacity and operations, to pay a state penalty of $3 million to the Louisiana Department of Environmental Quality for the discharge and chronic violations of the company’s discharge permit, and to pay a federal Clean Water Act civil penalty of $81 million. Under a separate criminal plea agreement, CITGO paid a $13 million criminal fine.
The proposed consent decree is subject to a 30-day public comment period and court review and approval.
Russian National Convicted of Charges Relating to Kelihos BotnetRead the Press Release
A federal jury in Connecticut convicted a Russian national on Tuesday for operating a “crypting” service used to conceal “Kelihos” malware from antivirus software, enabling hackers to systematically infect victim computers around the world with malicious software, including ransomware.
According to court documents and evidence introduced at trial, Oleg Koshkin, 41, formerly of Estonia, operated the websites “Crypt4U.com,” “fud.bz” and others. The websites promised to render malicious software fully undetectable by nearly every major provider of antivirus software. Koshkin and his co-conspirators claimed that their services could be used for malware such as botnets, remote-access trojans, keyloggers, credential stealers and cryptocurrency miners.
“The defendant designed and operated a service that was an essential tool for some of the world’s most destructive cybercriminals, including ransomware attackers,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department's Criminal Division. “The verdict should serve as a warning to those who provide infrastructure to cybercriminals: the Criminal Division and our law enforcement partners consider you to be just as culpable as the hackers whose crimes you enable — and we will work tirelessly to bring you to justice.”
In particular, Koshkin worked with Peter Levashov, the operator of the Kelihos botnet, to develop a system that would allow Levashov to crypt the Kelihos malware multiple times each day. Koshkin provided Levashov with a custom, high-volume crypting service that enabled Levashov to distribute Kelihos through multiple criminal affiliates. Levashov used the Kelihos botnet to send spam, harvest account credentials, conduct denial of service attacks, and distribute ransomware and other malicious software. At the time it was dismantled by the FBI, the Kelihos botnet was known to include at least 50,000 compromised computers around the world.
“By operating a website that was intended to hide malware from antivirus programs, Koshkin provided a critical service that enabled other cyber criminals to infect thousands of computers around the world,” said Acting U.S. Attorney Leonard C. Boyle for the District of Connecticut. “We will investigate and prosecute the individuals who aid and abet cyber criminals as vigorously as we do the ones who actually hit the ‘send’ button on viruses and other malicious software.”
“Koshkin and his associates knowingly provided crypting services designed to help malicious software bypass anti-virus software,” said Special Agent in Charge David Sundberg of the FBI’s New Haven Division. “The criminal nature of the Crypt4U service was a clear threat to the confidentiality, integrity, and availability of computer systems everywhere. We at the FBI will never stop pursuing those like Koshkin for perpetrating cyber crimes and threats to the public at large.”
Koshkin was arrested in California in September 2019 and has been detained since his arrest. He faces a maximum penalty of 15 years in prison and is scheduled to be sentenced on Sept. 20.
Koshkin’s co-defendant, Pavel Tsurkan, is charged with conspiring to cause damage to 10 or more protected computers, and aiding and abetting Levashov in causing damage to 10 or more protected computers.
Levashov was arrested by the Spanish National Police in April 2017 and extradited to the United States. In September 2018, he pleaded guilty to one count of causing intentional damage to a protected computer, one count of conspiracy, one count of wire fraud, and one count of aggravated identity theft.
The FBI’s New Haven Division investigated the case through its Connecticut Cyber Task Force.
Assistant U.S. Attorney Edward Chang of District of Connecticut, and Senior Counsel Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case with assistance from the Criminal Division’s Office of International Affairs. The Estonian Police and Border Guard Board also provided significant assistance.
This case is part of the Department of Justice’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks. As part of the Task Force, the Criminal Division, working with the U.S. Attorneys’ Offices, prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The department, through the Task Force, also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
Massachusetts Man Convicted of Placing Firebomb at Entrance of Jewish Nursing HomeRead the Press Release
A Massachusetts man was convicted by a federal jury yesterday in connection with placing a lit firebomb at the entrance of a Longmeadow senior health care facility in April 2020.
John Rathbun, 37, of East Longmeadow, was convicted following a week-long trial of one count of attempting to transport or receive explosive devices in interstate or foreign commerce with the knowledge or intent that the device will be used to kill, injure or intimidate any individual or unlawfully to damage or destroy any building, vehicle and one count of attempting to maliciously damage or destroy, by means of fire or an explosive, any building, vehicle or other real or personal property used in interstate or foreign commerce. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 12.
“Mr. Rathburn’s dangerous and cruel acts harmed not only the elderly residents of this Jewish assisted living facility, but also the entire community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “I thank the jury, prosecutors and investigators for their efforts to ensure the defendant was held accountable for his actions.”
“The jury has spoken: Mr. Rathbun is guilty of lighting a firebomb right at the entrance to a Jewish assisted-living facility – a cruel and senseless crime,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “Thanks to the jury’s verdict and the good work of prosecutors and investigators, the man who targeted vulnerable members of our community will not be a threat to public safety anytime soon.”
“The danger posed by John Rathbun in this case was very real. By trying to ignite a firebomb outside a Jewish assisted-living facility, he put the lives of innocent people at risk,” said Joseph R. Bonavolonta, Special Agent in Charge of the Boston FBI Field Office. “Through the diligent efforts of our Western Massachusetts Joint Terrorism Task Force, and the jury’s hard work, the community is much safer now.”
On Nov. 23, 2020, a federal jury convicted Rathbun of making false statements to a federal agent, but deadlocked on the arson counts, requiring a re-trial.
On the morning of April 2, 2020, Rathbun assembled, placed and lit a homemade incendiary device outside the entrance of Jewish Geriatric Services Lifecare, Inc., an assisted living facility in Longmeadow. The device consisted of a five-gallon Scepter fuel canister filled with gasoline and a Christian religious pamphlet as the wick. Forensic analysis identified Rathbun’s DNA on the canister and pamphlet.
On April 15, 2020, Rathbun falsely stated to a federal agent that he was at home on April 2, he was not familiar with the location on Converse Street where the device was placed and he had not possessed or even seen the fuel canister.
The charge of attempting to transport or receive explosive devices in interstate or foreign commerce with the knowledge or intent that the device will be used to kill, injure, or intimidate any individual or unlawfully to damage or destroy any building, vehicle, or other real or personal property provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of attempting to maliciously damage or destroy, by means of fire or an explosive, any building, vehicle or other real or personal property used in interstate or foreign commerce provides for a mandatory minimum sentence of five years and up to 10 years in prison, three years of supervised release and a fine of $250,000. The false statement charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell and FBI Boston SAC Bonavolonta made the announcement. The investigation was led by the FBI’s Western Massachusetts Joint Terrorism Task Force with valuable assistance also provided by the Longmeadow and East Longmeadow Police Departments and the Massachusetts State Police. Assistant U.S. Attorneys Neil Desroches and Steven H. Breslow of Mendell’s Springfield Branch Office prosecuted the case. The Justice Department’s Civil Rights Division also assisted with the prosecution.
Justice Department Sues to Block Aon’s Acquisition of Willis Towers WatsonRead the Press Release
The U.S. Department of Justice filed a civil antitrust lawsuit today to block Aon’s $30 billion proposed acquisition of Willis Towers Watson, a transaction that would bring together two of the “Big Three” global insurance brokers. As alleged in the complaint filed in the U.S. District Court for the District of Columbia, the merger threatens to eliminate competition, raise prices, and reduce innovation for American businesses, employers, and unions that rely on these important services.
“Today’s action demonstrates the Justice Department’s commitment to stopping harmful consolidation and preserving competition that directly and indirectly benefits Americans across the country,” said Attorney General Merrick B. Garland. “American companies and consumers rely on competition between Aon and Willis Towers Watson to lower prices for crucial services, such as health and retirement benefits consulting. Allowing Aon and Willis Towers Watson to merge would reduce that vital competition and leave American customers with fewer choices, higher prices, and lower quality services.”
Aon and Willis Towers Watson provide essential guidance to many of America’s largest companies. American companies depend on them to craft and administer health and retirement benefits, and to keep their costs down by managing complex and evolving risks. They compete head to head to provide these services, which helps ensure businesses obtain innovative, high-quality broking services to manage their risks and provide critical health and retirement benefits to their employees at a reasonable cost. As the complaint alleges, the merger would eliminate this important competition in five markets, resulting in higher costs to companies, higher costs to consumers, and decreased quality and innovation.
The merger between Aon and Willis Towers Watson would combine two of the “Big Three” insurance brokers who, as alleged in the complaint, can offer global service, sophisticated data and analytics, and a breadth and depth of knowledge and expertise that other brokers do not offer. As alleged in the complaint, Aon and Wills Towers Watson operate “in an oligopoly” and “will have even more [leverage] when [the] Willis deal is closed.” If permitted to merge, Aon and Willis Towers Watson could use their increased leverage to raise prices and reduce the quality of products relied on by thousands of American businesses — and their customers, employees, and retirees.
Although Aon and Willis Towers Watson have agreed to certain divestitures in connection with investigations by various international competition agencies, the complaint alleges these proposed remedies are inadequate to protect consumers in the United States. The complaint also alleges the U.S.-focused divestitures in health benefits and commercial risk broking, in particular, are wholly insufficient to resolve the department’s significant concerns.
Aon plc is incorporated in Ireland and headquartered in London. It has approximately 50,000 employees and offices in approximately 120 countries, including over 100 offices in the United States. In 2020, Aon reported revenues of more than $11 billion.
Willis Towers Watson plc is incorporated in Ireland and headquartered in London. It has approximately 45,000 employees and offices in more than 80 countries, including over 80 offices in the United States. In 2020, Willis Towers Watson reported revenues of more than $9 billion.
Justice Department Reaches Agreement with Newton County, Arkansas and its Board of Election Commissioners to Ensure Polling Place Accessibility for Voters with DisabilitiesRead the Press Release
The Justice Department yesterday reached a settlement under Title II of the Americans with Disabilities Act (ADA) with Newton County, Arkansas, and its Board of Election Commissioners to ensure that the County provides an accessible voting program, including accessible polling places, to voters with disabilities.
The Department of Justice reviewed the County’s voting program for compliance with the ADA. The United States identified architectural barriers at the County’s polling places, such as a lack of accessible parking areas and pathways made inaccessible by gaps and level changes, as well as gravel and grass. It also identified ramps that were too steep, some without handrails and edge protection, and barriers inside polling places. The United States also found that all polling places used in the March 2020 primary election lacked accessible voting machines that worked.
Under the ADA, governmental entities that conduct local, state or federal elections must select polling places that are accessible to individuals with disabilities, and they must make reasonable changes necessary to ensure equal opportunity to participate in voting programs. Governmental entities must also provide an election ballot that is accessible to individuals with disabilities, including individuals who are blind, so that they can vote privately and independently.
“The right to vote is the bedrock of our democracy,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This settlement ensures that eligible voters with disabilities in Newton County, Arkansas, will have the opportunity to exercise this fundamental right and have a voice in our democratic process. We will continue working to ensure that all eligible Americans have access to the ballot.”
Under the agreement, the County will create and implement new policies to bring its voting program into compliance with the ADA. These policies include: creating an effective system for selecting accessible locations for polling places; surveying polling places to identify accessibility barriers; maintaining the accessibility of each polling place used on election days; using temporary accessibility measures, such as mats or ramps; and providing an accessible voting machine at each polling place. In addition, the County will designate an employee to serve as an ADA coordinator and provide training to election officers, poll workers, and County employees. The required training will cover accessibility under Title II of the ADA and anti-retaliation protections under Title V of the ADA.
This settlement is part of the department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. Through this Initiative, the Department of Justice has surveyed over 2,400 polling places and increased polling place accessibility in over 50 jurisdictions, including St. Louis, Missouri; Harris County, Texas; Lackawanna County, Pennsylvania; and Anderson County, South Carolina.
For more information about the ADA and today’s agreement, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY). ADA complaints may be filed online at http://www.ada.gov/complaint/.
Former Drug Enforcement Administration Special Agent and Task Force Officer Convicted of Conspiracy and Conversion of PropertyRead the Press Release
A former U.S. Drug Enforcement Administration (DEA) special agent and a former DEA task force officer were convicted Tuesday by a federal jury in New Orleans, Louisiana, in connection with a long-running scheme to steal personal property and money from individuals who had been arrested.
After a seven-day trial, Chad A. Scott, 53, of Covington, Louisiana, was found guilty of conspiracy and conversion of property, and Rodney P. Gemar, 45, of Ponchatoula, Louisiana, was found guilty of conspiracy, conversation of property, and removal of property. U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana, who presided over the trial, has scheduled sentencing for Dec. 4.
According to court documents and the evidence presented during trial, Scott and Gemar both engaged in a long-running scheme to steal personal property and money from arrestees. Specifically, between 2009 and 2016, Scott and Gemar stole the personal property of arrestees, including items like wallets, phones, and keys. Instead of logging these items into evidence or returning them to the owners, Scott and Gemar would store the property in their desks and later throw it out. Scott and Gemar also took money from the pockets of arrestees, pilfered money from the wallets of individuals whom they arrested, and skimmed money off of cash seizures made by the DEA. After a co-conspirator was arrested in January 2016, Scott and Gemar, along with another colleague named Karl Newman, destroyed the evidence of their crimes, in part by throwing the evidence into the swamps outside New Orleans. They also used approximately $4,800 in money stolen from arrestees to pay for an attorney for their arrested co-conspirator.
“As law enforcement officers, Chad Scott and Rodney Gemar were entrusted with a special responsibility — to protect the the communities they served,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Instead of promoting justice, they violated the public trust to satisfy their own greed and to hurt individuals they arrested. This conviction sends a clear message to the public that law enforcement officers who corrupt their responsibilities will be held accountable.”
“Scott and Gemar conspired to steal from the people they arrested, and in doing so, compromised cases and undermined the values they swore to uphold as federal law enforcement officers,” said Special Agent in Charge Douglas B. Bruce of the Justice Department’s Office of the Inspector General (DOJ OIG) Denver Field Office. “Justice was served. They have been held accountable for their corrupt actions.”
"The convictions of Chad Scott and Rodney Gemar should send a clear message that law enforcement officers who tarnish their badge for their own personal gain are not above the law and will be held accountable," said FBI New Orleans Special Agent in Charge Douglas Williams Jr. "We thank our partners at DOJ, DEA-OPR, and DOJ-OIG for their strong partnership and unrelenting pursuit of justice."
“The convictions of Chad Scott and Rodney Gemar send a clear message to the public that law enforcement officers will be held accountable when they violate the laws they were entrusted to uphold,” said DEA Chief Inspector Brian McKnight. “DEA appreciates the partnership of all law enforcement entities who collaborated to reach this outcome.”
Scott has been fired from the DEA. Gemar has been removed from the DEA task force.
Two other former Tangipahoa Parish Sheriff’s Office deputies who had been serving as DEA task force officers in New Orleans have pleaded guilty in this investigation. Karl Emmett Newman, 54, of Kentwood, Louisiana, pleaded guilty to unlawfully carrying a firearm in furtherance of an August 2015 robbery, which was disguised as the execution of a search warrant, as well as misappropriating money confiscated by the DEA during another search. Johnny Domingue, 32, of Maurepas, Louisiana, pleaded guilty to possession of cocaine and misappropriating money confiscated by the DEA.
This case was initially investigated by the Louisiana State Police and later investigated by the FBI’s New Orleans Field Division, DEA-OPR and DOJ-OIG.
Assistant Deputy Chief Timothy Duree of the Criminal Division’s Fraud Section and Trial Attorney Charles Miracle of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
Former Doctor Sentenced for Unlawfully Distributing Controlled SubstancesRead the Press Release
A former medical doctor was sentenced Tuesday to three years in prison for unlawfully distributing controlled substances.
According to court documents, Darrel R. Rinehart, 66, of Indianapolis, Indiana, admitted to distributing Schedule II controlled substances, primarily opioids, to four different patients without a legitimate medical purpose and outside the course of professional practice on 18 different occasions between December 2014 and December 2015. Rinehart also admitted to knowingly distributing hydrocodone, a Schedule II controlled substance, in January 2016 to a patient who did not have any significant underlying health issues justifying the prescription.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division made the announcement.
The U.S. Department of Health and Human Services Office of Inspector General, Tennessee Bureau of Investigation, and District Attorney General for Tennessee’s 22nd Judicial District investigated the case.
Assistant Chief Kilby Macfadden and Trial Attorney Leslie Fisher of the Criminal Division’s Fraud Section prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program nearly $19 billion.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
United States Files Suit Against California Skilled Nursing Chain and its Owner for Allegedly Paying Illegal Kickbacks to PhysiciansRead the Press Release
The United States filed a complaint in the U.S. District Court for the Central District of California yesterday under the False Claims Act against Paksn Inc.; Prema Thekkek, one of its owners; and seven skilled nursing facilities (SNFs) owned by Thekkek and/or operated by Paksn. Those seven SNFs are Bay Point Healthcare Center, Gateway Care & Rehabilitation Center, Hayward Convalescent Hospital, Hilltop Care & Rehabilitation Center, Martinez Convalescent Hospital, Park Central Care & Rehabilitation Hospital, and Yuba Skilled Nursing Center.
The United States alleges that defendants entered into medical directorship agreements with certain physicians that purported to provide compensation for administrative services, but in reality, were vehicles for the payment of kickbacks to induce the physicians to refer patients to the seven SNFs. The Anti-Kickback Statute prohibits offering or paying anything of value to encourage the referral of items or services covered by federal health care programs.
Specifically, the United States alleges that defendants hired certain physicians who promised in advance to refer a large number of patients to the SNFs, paid physicians in proportion to the number of expected referrals, and terminated physicians who did not refer enough patients. On one occasion, a Paksn employee told Thekkek that two physicians were being hired because “they are promising at least 10 patients for $2000 per month.” On another, Thekkek complained that if Paksn’s employees did not pay medical directors promptly every month, “[t]hese doctors will not give us patients.” On a third occasion, a Paksn employee told Thekkek that because “lately there are no real referrals” from one of the medical directors, “i am planning to say goodbye to him.”
“Illegal financial arrangements with physicians can improperly influence the type and amount of health care that is provided to patients,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department is committed to redressing the corrupting influence of kickbacks on the medical decision‑making of providers participating in federal health care programs.”
“The payment of kickbacks to physicians for referrals turns patients into commodities that can be traded,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “Profits should not dictate medical decisions, which is why it is illegal to pay for referrals that can cloud physicians’ medical judgment.”
The lawsuit was initially filed in December 2015 by Trilochan Singh, who was previously employed as Paksn’s Vice President of Operations and Chief Operating Officer, under the whistleblower provisions of the False Claims Act. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties. The case is captioned United States of America ex rel. Trilochan Singh v. Paksn, Inc. et al., No. 15‑cv-09064 (C.D. Cal.).
The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Central District of California, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The claims asserted against defendants are allegations only and there has been no determination of liability.
Statement of Attorney General Merrick B. Garland on World Elder Abuse Awareness DayRead the Press Release
U.S. Attorney General Merrick B. Garland today made the following statement in honor of World Elder Abuse Awareness Day:
“The COVID-19 pandemic has exposed and exacerbated injustices faced by far too many of the most vulnerable among us, including older Americans and elderly people around the world. For too long, elderly people have faced abuse, neglect, and exploitation. Even before the beginning of the worst pandemic in more than a century, a study supported by the Justice Department’s National Institute of Justice found that at least one in 10 older Americans are victims of some form of elder abuse each year.
“In observance of World Elder Abuse Awareness Day, the Department of Justice reaffirms its commitment to ending elder abuse in all its forms. Today we also recognize the Justice Department attorneys, investigators, grantmakers, policymakers and professional staff who work tirelessly every day with our partners both outside and inside every level of government across the United States and around the world to advance the cause of elder justice.
“In the days ahead, the Justice Department will continue to use all its available tools to prevent and combat elder abuse, neglect, and exploitation – from enforcement actions to public awareness campaigns, and from training and technical assistance to victims’ services and legal aid. Within the department, the Elder Justice Initiative will step up efforts to seek and deliver justice for older Americans through a coordinated approach. It will continue to lead and work with the Elder Justice Coordinators in all 94 U.S. Attorneys’ office, across our law enforcement and grantmaking components, and alongside the department’s recently-revived Office for Access to Justice. Taken together, the Justice Department’s FY 2022 budget request includes a 44% increase for elder justice efforts above the FY 2021 enacted budget.
“The Justice Department relies on the public’s assistance in remaining vigilant and reporting suspected fraud and abuse. To learn more about our elder justice efforts, find help, or report abuse, please visit the department’s Elder Justice website at www.elderjustice.gov, or call the department’s dedicated National Elder Fraud Hotline at 1-833–372–8311.”
School Owner Sentenced for Defrauding Department of Veterans Affairs Program Dedicated to Rehabilitating Disabled Military VeteransRead the Press Release
A Maryland man was sentenced Monday to 30 months in prison and ordered to pay $150,000 in restitution for defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with disabilities.
According to court documents, Francis Engles, 65, of Bowie, was the owner and operator of Engles Security Training School (Engles Security). In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment program, which provides disabled U.S. military veterans with services. Thereafter, Engles Security obtained over 80% of its total revenue from the VA in exchange for purporting to provide certain courses to disabled military veterans.
To further the scheme, Engles falsely represented to the VA that his company was providing veterans with months-long courses for 40 hours per week and over 600 total hours. In fact, as Engles knew, Engles Security offered veterans far less than what Engles represented to the VA. In some instances, it offered only a few hours of class per day for several weeks. Some veterans did not attend more than one day of class. Engles nevertheless sent to the VA “Certificates of Training” stating that veterans had completed courses that they had not completed or, in some instances, had not taken at all. Similarly, Engles submitted letters to the VA falsely stating that the veterans were employed by Engles’ private security business. Engles also instructed veterans to sign attendance sheets for classes that he knew they did not in fact attend. In total, Engles Security obtained $337,960 from the VA for the purported education of military veterans.
Engles also attempted to obstruct the investigation into his fraud. During an interview with federal agents, Engles lied about veteran students’ attendance at the school and later, when Engles Security was served with a grand jury subpoena, Engles prevented his employee from producing responsive documents that she had gathered. Some of these documents were later discovered in the government’s search of Engles Security’s office.
In February 2019, four other individuals were sentenced in related cases following their guilty pleas. James King, a former VA employee, was sentenced to 11 years in prison for committing bribery, defrauding the VA and obstructing justice. Albert Poawui, the owner of Atius Technology Institute, was sentenced to 70 months in prison for committing bribery. Sombo Kanneh, Poawui’s employee, was sentenced to 20 months in prison for conspiracy to commit bribery. Michelle Stevens, the owner of Eelon Training School, was sentenced to 30 months in prison for committing bribery.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Channing D. Phillips for the District of Columbia; Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office’s Criminal Division; and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General’s Mid-Atlantic Field Office made the announcement.
Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Peter Lallas of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
Justice Department Settles with Texas-Based Industrial Contractor to Resolve Immigration-Related Discrimination ClaimRead the Press Release
The Department of Justice announced today that it reached a settlement with Tecon Services Inc. (Tecon), an industrial insulation, fireproofing and painting contractor based in Texas. The settlement resolves claims that Tecon discriminated against a naturalized U.S. citizen based on her Venezuelan national origin by rejecting her U.S. passport and requiring other documents to prove her work authorization, in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA).
The department’s investigation began after a naturalized U.S. citizen filed a discrimination complaint with the Civil Rights Division against Tecon. Based on its investigation, the department concluded that while verifying the worker’s legal right to work in the United States, Tecon refused to accept her U.S. passport and demanded additional and unnecessary documents, because of the worker’s Venezuelan national origin.
“Companies cannot reject valid identity and work authorization documents because of an individual’s national origin,” 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 to protect workers from illegal discrimination.”
The INA prohibits employers from rejecting documents that reasonably appear genuine or requesting more or different documents than necessary to prove work authorization, based on workers’ citizenship, immigration status, or national origin.
Under the terms of the settlement, Tecon will pay a $1,542 civil penalty to the United States and $4,263.75 back pay and interest to the affected worker. Tecon will also revise its policies and procedures, ensure that relevant employees participate in training on anti-discrimination requirements under the INA, and be subject to departmental monitoring over the term of the agreement.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the INA’s anti-discrimination provision. The statute prohibits discrimination based on citizenship, immigration status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. More information on how employers can avoid discrimination in the Form I-9 and E-Verify process is available here. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment, or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public also may 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.
Justice Department Recognizes World Elder Abuse Awareness Day; Files Cases Against Marketing Company and Executives Who Knowingly Facilitated Elder FraudRead the Press Release
The Justice Department today announced criminal charges in two separate cases against defendants accused of knowingly furnishing fraud schemes with information on elderly potential victims. The charges coincide with World Elder Abuse Awareness Day, a day intended to raise public awareness of the fight against elder abuse, neglect and financial exploitation.
“These matters underscore the importance of World Elder Abuse Awareness Day and the continuing threat posed by all forms of elder abuse, including elder fraud schemes that bilk seniors of their life savings,” said Deputy Assistant Attorney General Michael D. Granston of the Justice Department's Civil Division. “As the actions announced today make clear, companies and individuals that knowingly commit or facilitate elder fraud schemes will be held accountable.”
On June 14, the U.S. District Court for the District of Colorado arraigned a marketing company, KBM Group LLC, on a criminal information alleging that it sold millions of Americans’ information to perpetrators of elder fraud schemes. KBM Group and the Justice Department simultaneously filed a deferred prosecution agreement (DPA) with the court, in which KBM Group agreed to settle the charges. The agreement is under consideration by U.S. District Court Chief Judge Philip A. Brimmer in Denver.
Under the terms of the DPA submitted to the court, KBM Group would pay a total of $42 million, with $33.5 million of that amount going to compensate victims of fraudulent schemes that used consumer data sold by KBM Group. KBM Group also agreed to implement significant compliance measures designed to safeguard consumers’ data and prevent its sale to individuals or entities engaged in fraudulent or deceptive marketing campaigns.
In a similar case, the U.S. District Court for the District of Colorado unsealed an indictment yesterday charging Robert Reger, 53, of Boulder, Colorado, and David Lytle, 60, of Leawood, Kansas, with conspiracy to commit mail and wire fraud, and substantive mail and wire fraud charges, for allegedly participating in the sale of millions of Americans’ information to perpetrators of elder fraud schemes. According to the indictment, Reger and Lytle engaged in this conduct while employed at Epsilon Data Management LLC, a marketing company that resolved its criminal liability through a DPA with the Department of Justice earlier this year. Under the terms of that DPA, Epsilon agreed to pay a total of $150 million, with $127.5 million of that amount going to compensate victims of fraudulent schemes that used consumer data sold by Epsilon. Reger served as senior vice president of Epsilon’s Data Practice and Lytle served as a Business Development Manager.
As part of their negotiated DPAs, both KBM Group and Epsilon acknowledged that they sold consumer lists to a number of mass-mailing fraud schemes that sent false “sweepstakes” and “astrology” solicitations to consumers. Those solicitations stated that each consumer recipient had won a large prize or individualized psychic service that they could obtain by paying a fee. In reality, the solicitations — as known to KBM Group and Epsilon employees — were mass-produced mailings and victims who paid a fee received nothing of value. As reflected in the consumer lists sold by KBM Group and Epsilon to perpetrators of the fraud schemes, the schemes disproportionately affected the elderly and other vulnerable individuals.
“Each day we see elder financial abuse we are reminded we have more work to do,” said Chief Postal Inspector Gary Barksdale of the U.S. Postal Inspection Service. “The actions announced today demonstrate our commitment to investigating companies and individuals who facilitate the victimization of older Americans. These bold actions and the payment of compensation to the victims of these schemes should not be overlooked by corporations. The U.S. Postal Inspection Service and its federal law enforcement partners have demonstrated we will continue to work tirelessly to keep our communities and our vulnerable populations safe from financial exploitation.”
Subject to consideration by the court, the KBM Group DPA provides that KBM Group must select, and cover the costs of, an independent claims administrator to distribute the $33.5 million to identified victims with established losses caused by fraud schemes that used KBM Group data. The claims administrator will contact identified victims directly. More information about the victim compensation amount and fund distribution will be posted at the following website: https://www.justice.gov/civil/case/united-states-v-kbm-group-llc. Victims of elder fraud schemes may also contact the National Elder Fraud Hotline, which provides services to seniors who may be victims of financial fraud. The hotline is staffed by experienced case managers who provide personalized support to callers. The hotline’s toll-free number is 833-FRAUD-11 (833-372-8311).
The U.S. Postal Inspection Service investigated both the KBM Group and Epsilon cases.
Assistant Director John W. Burke and Trial Attorney J. Matt Williams of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys Rebecca Weber and Hetal J. Doshi of the U.S. Attorney’s Office for the District of Colorado are prosecuting the KBM Group case. Trial Attorneys Alistair Reader and Ehren Reynolds of the Consumer Protection Branch and Assistant U.S. Attorney Hetal J. Doshi of the U.S. Attorney’s Office for the District of Colorado are prosecuting the Reger and Lytle case.
World Elder Abuse Awareness Day was first recognized by the Justice Department in June 2010. Since that time, government, non-profit organizations, and advocacy groups have used the day to draw attention to the extraordinary harm senior citizens experience from elder physical abuse and financial exploitation.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For information on the U.S. Attorney's Office for the District of Colorado, visit its website at https://www.justice.gov/usao-co.
To learn more about the department’s elder justice efforts, please visit the Elder Justice website at https://www.justice.gov/elderjustice/world-elder-abuse-awareness-day.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Former Energy Broker Pleads Guilty to Insider Trading and Kickback SchemeRead the Press Release
A former Texas energy broker pleaded guilty Monday to conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act for his role in an insider trading and kickback scheme.
According to court documents, Mathew Webb, 51, of Tiki Island, admitted he conspired with others to misappropriate material, nonpublic information and to use that information to engage in fraudulent, pre-arranged trades in natural gas futures contracts. He shared the net profit from these fraudulent trades with others involved in the fraudulent trading scheme. Webb further admitted he and others agreed to falsely document certain proceeds as income on IRS forms in part to conceal the true nature of the funds and to make the illicit profits appear to be legitimate income paid.
According to court documents, Webb also admitted that he paid kickbacks to an energy trader and co-conspirator from commission fees paid by the co-conspirator’s employer to Webb’s brokerage. In exchange for these commission fee kickbacks, Webb’s co-conspirator agreed to direct his employer’s business to Webb’s brokerage. The scheme generated proceeds of approximately $5.9 million, and Webb personally profited in the amount of $585,000.
Webb pleaded guilty to a one-count information charging him with conspiracy to commit commodities fraud and wire fraud and to violate various provisions of the Commodity Exchange Act. He is scheduled to be sentenced on Sept. 20.
In two related cases, Marcus Schultz, 41, and John Ed James, 51, pleaded guilty in July 2020 and February 2021, respectively.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery of the Southern District of Texas; Special Agent in Charge Perrye K. Turns of the FBI’s Houston Field Office; and Special Agent in Charge D. Richard Goss of IRS-Criminal Investigation’s Houston Field Office made the announcement.
Trial Attorneys Leslie S. Garthwaite, Della Sentilles, and Drew Bradylyons of the Criminal Division’s Fraud Section and Deputy Chief Suzanne Elmilady and Assistant U.S. Attorney Zahra Fenelon of the U.S. Attorney’s Office for the Southern District of Texas are prosecuting the case.
The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country and is the national leader in prosecuting fraud and manipulation in the U.S. commodity markets.
Former Construction Executive Sentenced to 46 Months in Prison for Tax Evasion and Bribery SchemeRead the Press Release
A New York construction executive was sentenced today in Manhattan federal court to 46 months in prison for evading taxes on more than $1.4 million in bribes he received from building subcontractors.
According to the criminal information, as well as other public documents and recent court proceedings, between 2011 and 2017, Ronald Olson of Long Island, New York, was Vice President and Deputy Operations Manager at Turner Construction Company, a construction firm that performed building projects in New York City for Bloomberg LLP. Olson used his position to participate in a scheme to obtain bribes from construction subcontractors, who paid kickbacks in exchange for construction contracts and subcontracts. In total, Olson received approximately $1,450,000 in unlawful cash payments, which he did not report on his 2011 to 2017 tax returns. Olson also received bribes in the form of renovations and improvement projects at his Long Island residence and his Long Beach Island, New Jersey, beach house.
In related proceedings, co-conspirator Anthony Guzzone, a former Director of Global Construction at Bloomberg, was sentenced on Jan. 19, 2021, by the Honorable Lewis J. Liman to 38 months in prison for evading taxes on more than $1.45 million in bribes in the same scheme; Michael Campana, a subordinate construction manager at Bloomberg also involved in the same scheme, was sentenced on July 24, 2020, by the Honorable Denise L. Cote to 24 months in prison, for evading taxes on more than $420,000 in bribes. In addition, Vito Nigro, a construction manager at Turner, has pleaded guilty to evading taxes on more than $1.8 million in bribes that he received due to his involvement, and is scheduled to be sentenced on July 1, before U.S. District Judge Analisa Torres.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Audrey Strauss for the Southern District of New York made the announcement.
IRS-Criminal Investigation is investigating the case.
Senior Litigation Counsel Stanley J. Okula of the Tax Division and Assistant U.S. Attorney David Raymond Lewis of the Southern District of New York’s Complex Frauds and Cybercrime Unit are in charge of the prosecution.
El Departamento de Justicia llega a un acuerdo con un contratista industrial con sede en Tejas que resuelve una acusación de discriminación relacionada con la inmigraciónRead the Press Release
WASHINGTON, D.C. - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Tecon Services Inc. (Tecon), un contratista de aislamiento industrial, ignifugación y pintura con sede en Tejas. El acuerdo resuelve acusaciones de que Tecon había discriminado a un ciudadano estadounidense naturalizado por motivos de su nacionalidad de origen venezolana al rechazar su pasaporte estadounidense y requerir que entregara otros documentos para demostrar su autorización para trabajar, en contra de la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés).
La investigación del Departamento comenzó después de que un ciudadano naturalizado de los EE. UU. presentó una demanda de discriminación contra Tecon ante la División de Derechos Civiles. Con base en su investigación, el Departamento concluyó que durante el proceso de verificar el derecho legal de la trabajadora a trabajar en los Estados Unidos, Tecon se negó a aceptar su pasaporte estadounidense y exigió documentos adicionales e innecesarios por motivos de la nacionalidad de origen venezolana de la trabajadora.
«Las empresas no pueden rechazar documentos válidos de identidad y de autorización para trabajar por motivos de la nacionalidad de origen del individuo», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Este acuerdo deja claro que el Departamento de Justicia hará cumplir con firmeza las leyes federales de derechos civiles para proteger a trabajadores de la discriminación ilegal».
La INA prohíbe que los empleadores rechacen documentos que parecen ser genuinos o que pidan documentos adicionales o diferentes a los que sean necesarios para demostrar su 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, Tecon pagará una sanción civil a los Estados Unidos de 1.542 $ y pagos retroactivos e interés al trabajador que ascienden a 4.263,75 $. Por otra parte, Tecon revisará sus políticas y procedimientos, asegurará que los empleados relevantes participen en una capacitación sobre los requisitos antidiscriminatorios de la INA y se someterá a la supervisión por parte del Departamento durante el término del acuerdo.
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. 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.
Para más información sobre cómo los empleadores pueden evitar la discriminación en los procesos del Formulario I-9 e E-Verify, haga clic aquí. 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.
Statement from Attorney General Merrick B. GarlandRead the Press Release
U.S. Attorney General Merrick B. Garland today made the following statement:
“As I stated during my confirmation hearing, political or other improper considerations must play no role in any investigative or prosecutorial decisions. These principles that have long been held as sacrosanct by the DOJ career workforce will be vigorously guarded on my watch, and any failure to live up to them will be met with strict accountability. There are important questions that must be resolved in connection with an effort by the department to obtain records related to Members of Congress and Congressional staff. I have accordingly directed that the matter be referred to the Inspector General and have full confidence that he will conduct a thorough and independent investigation. If at any time as the investigation proceeds action related to the matter in question is warranted, I will not hesitate to move swiftly.
“In addition, and while that review is pending, I have instructed the Deputy Attorney General, who is already working on surfacing potentially problematic matters deserving high level review, to evaluate and strengthen the department’s existing policies and procedures for obtaining records of the Legislative branch. Consistent with our commitment to the rule of law, we must ensure that full weight is accorded to separation-of-powers concerns moving forward.”
U.S. Entertainer/Businessman and Malaysian National Charged with Back-Channel Lobbying Campaign to Drop 1MDB Investigation and Remove Chinese Dissident from U.S.Read the Press Release
A federal grand jury in the District of Columbia returned a superseding indictment Thursday charging a U.S. entertainer and businessman and a Malaysian national with orchestrating an unregistered, back-channel campaign beginning in or about 2017 to influence the then-administration of the President of the United States and the Department of Justice both to drop the investigation of Jho Low and others in connection with the international strategic and development company known as 1Malaysia Development Berhad (1MDB), and to send a Chinese dissident back to China.
According to the superseding indictment, Low Taek Jho, 39, also known as Jho Low, and Prakazrel “Pras” Michel, 48, are alleged to have conspired with Elliott Broidy, Nickie Lum Davis, and others to engage in undisclosed lobbying campaigns at the direction of Low and the Vice Minister of Public Security for the People’s Republic of China, respectively, both to have the 1MDB embezzlement investigation and forfeiture proceedings involving Low and others dropped and to have a Chinese dissident sent back to China. Michel and Low are also charged with conspiring to commit money laundering related to the foreign influence campaigns. Michel is also charged with witness tampering and conspiracy to make false statements to banks.
In May 2019, Michel and Low were charged in the District of Columbia for allegedly orchestrating and concealing a foreign and conduit contribution scheme in which they funneled millions of dollars of Low’s money into the U.S. presidential election as purportedly legitimate campaign contributions, all while concealing the true source of the money. According to the indictment, to execute the scheme, Michel received Low’s money and contributed it both personally and through approximately 20 straw donors.
If convicted, Low faces a maximum penalty of five to 10 years in prison, per count. If convicted, Michel faces a range of maximum penalties from five to 20 years in prison, per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Deputy Assistant Attorney General Kevin O. Driscoll of the Justice Department’s Criminal Division; Special Agent in Charge Keith A. Bonanno of the Department of Justice Office of the Inspector General Cyber Investigations Office; Assistant Director in Charge Kristi Koons Johnson of the FBI’s Los Angeles Field Office; and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.
The Justice Department’s Office of the Inspector General and the FBI’s Los Angeles Field Office and International Corruption Squad in New York are investigating the case.
Principal Deputy Chief John D. Keller, Deputy Director of Election Crimes Sean F. Mulryne, and Trial Attorney Nicole R. Lockhart of the Criminal Division’s Public Integrity Section 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.
Kidnapping Charges Added to California Restaurant Owners Charged with Forced Labor and Harboring of AliensRead the Press Release
A federal grand jury returned a superseding indictment yesterday adding the charges of conspiracy to commit kidnapping and kidnapping to the previous charges of conspiracy to commit forced labor, forced labor, conspiracy to harbor aliens and harboring aliens.
According to court documents, Nery A. Martinez Vasquez, 52, and his wife Maura N. Martinez, 52, both of Shasta Lake, were 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.
The original indictment alleges that between September 2016 and February 2018, the defendants conspired to bring a Guatemalan woman and her two minor daughters to the United States using temporary visitor visas, harbored them after their visas expired, and forced them to work long hours at a restaurant and cleaning service for minimal to no pay. The indictment further alleges that the defendants imposed a debt on the victims to prevent them from returning to Guatemala; subjected them to physical, psychological, and verbal abuse; threatened them with arrest; and separated the woman from her daughters, all to compel their labor.
In addition, according to the superseding indictment, in January 1997, the defendants conspired to kidnap a 13-year-old girl. They made promises to the girl’s parents that they would bring her back in a week and told the girl that they would give her presents and money. They then drove her from her home in Las Vegas to their home in Redding, California, and held her against her will and the will of her parents for almost two years. They forced the girl to clean car dealerships and provide other labor, working long hours seven days a week without pay. Nery A. Martinez Vasquez is also alleged to have routinely sexually molested and raped the girl.
This case is the product of an investigation by the FBI. Civil Rights Division Trial Attorney Avner Shapiro and Assistant U.S. Attorneys Katherine T. Lydon and Tanya B. Syed of the Eastern District of California are prosecuting the case.
If convicted of the forced labor charges, the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of harboring an alien, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of the kidnapping charges, the defendants face a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would 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. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Justice Department Issues Statement on the U.S. Department of Agriculture’s Proposed Rules to Support Enforcement of the Packers and Stockyards ActRead the Press Release
Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division issued the following statement today after the U.S. Department of Agriculture’s (USDA) announcement concerning their proposed rules to support enforcement of the Packers and Stockyards Act:
“The Justice Department commends the USDA for the new steps it announced today to strengthen enforcement of the Packers and Stockyards Act to improve competition in our agricultural markets. The Antitrust Division remains committed to vigorous enforcement of the antitrust laws to protect American farmers, ranchers, and consumers, and to ensure they all benefit from robust competition. We stand ready to work hand in hand with the USDA to use our combined enforcement authorities to pursue these shared goals.”
Hawaii Couple Indicted in Tax Fraud SchemeRead the Press Release
A federal grand jury in Honolulu, Hawaii, returned an indictment today charging a Hawaii husband and wife with conspiring to defraud the United States and filing a false tax return. The wife was also charged with four counts of money laundering.
According to the indictment, from 2015 to 2019, Beverly Braumuller-Hawver and Scott F. Hawver, both of Ewa Beach, along with another individual, allegedly conspired to defraud the United States by filing a false 2014 amended individual income tax return claiming a refund of $188,239 to which they were not entitled. After the IRS issued the refund, Braumuller-Hawver allegedly laundered the fraudulently obtained tax refund through a series of financial transactions using banks located in the District of Hawaii.
Braumuller-Hawver is charged with conspiracy to defraud the United States, filing a false tax return, and four counts of money laundering. Hawver is charged with conspiracy to defraud the United States and filing a false tax return. The defendants are scheduled for their initial court appearances on June 16, before a U.S. Magistrate Judge of the U.S. District Court for Hawaii.
If convicted, Braumuller-Hawver faces a maximum sentence of 10 years in prison for each count of money laundering. The Hawvers each face a maximum sentence of three years for filing a false tax return and a maximum sentence of five years for conspiracy to defraud the United States. 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 Judith A. Philips for the District of Hawaii made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Valerie G. Preiss of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the U.S. Attorney’s Office for the District of Hawaii 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.
Guam Restaurant Owner, Marites M. Barrogo Sentenced for Federal Benefits FraudRead the Press Release
Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Marites M. Barrogo, age 47 from Dededo, Guam was sentenced in the United States District Court of Guam to ten months imprisonment for Conspiracy to Use, Transfer, Acquire, Alter, or Possess Supplemental Nutrition Assistance Program (SNAP) Benefits Without Authorization, in violation of 7 U.S.C. § 2024 and 18 U.S.C. § 371. The Court also ordered three years of supervised release following imprisonment and a mandatory $100 special assessment fee. In addition, defendants convicted of trafficking SNAP benefits are ineligible to receive SNAP benefits and may not participate in the program as vendors.
From June 2015-2018, investigation revealed that Marites M. Barrogo, owner of Laguna Best Restaurant, illegally purchased over $15,000 worth of SNAP benefits. Barrogo purchased SNAP benefits from co-conspirators at a discount on their face value on an approximately monthly basis and used the benefits to purchase food items from various retailers on Guam for use at her restaurant.
U.S. Attorney Anderson stated, “SNAP benefits enable low income individuals to meet their basic nutrition needs. The recipients are often children. The unlawful transfer of these benefits, as occurred in this matter, greatly diminishes the impact of the program in keeping our communities healthy. The public should also have confidence that federal funds are appropriately used.”
This case was investigated by the Guam Department of Public Health and Social Services Investigation and Recovery Office and prosecuted by Benjamin K. Petersburg, Assistant United States Attorney in the District of Guam.
Daughter of Notorious Mexican Cartel Leader Sentenced for Criminal Violation of the Foreign Narcotics Kingpin Designation ActRead the Press Release
The daughter of the leader of the Mexican drug trafficking organization known as the Cartel de Jalisco Nueva Generacion (CJNG), a dual U.S.-Mexican citizen, was sentenced today to 30 months in prison for willfully engaging in financial dealings with Mexican companies that had been identified as specially designated narcotics traffickers by the Office of Foreign Assets Control of the U.S. Department of the Treasury (OFAC).
Jessica Johanna Oseguera Gonzalez, 34, of Guadalajara, Mexico, pleaded guilty on March 12, 2021. According to court documents, she violated the criminal penalties of the Foreign Narcotics Kingpin Designation Act (Kingpin Act) by engaging in transactions and dealings in property with six Mexican businesses that had been sanctioned by OFAC as specially designated narcotics traffickers in September 2015 and September 2017. The six businesses were designated for providing material support to the narcotics trafficking activities of the CJNG, which was itself designated by OFAC in April 2015. Oseguera Gonzalez’s father, Nemesio Ruben Oseguera Cervantes, aka “El Mencho,” who is the leader of CJNG, and her uncle, Abigael Gonzalez Valencia, who is the leader of the Los Cuinis drug trafficking organization, were also sanctioned by OFAC in April 2015.
Court documents indicate that Oseguera Gonzalez was an owner of two Mexican companies designated by OFAC, J&P Advertising, S.A. de C.V., and JJGON S.P.R. de R.L. de C.V., and that she was an officer, director, or agent of four additional sanctioned businesses, Las Flores Cabanas, Mizu Sushi Lounge, Tequila Onze Black, and Operadora Los Famosos, S.A. de C.V., doing business as Kenzo Sushi. She remained an owner, officer, director or agent of those entities following their OFAC designations, and did not seek the required license from OFAC to engage in those financial transactions.
“This sentence shows that violating the Treasury Department’s sanctions of businesses and persons tied to foreign drug cartels will not go unpunished,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The Kingpin Act is an important tool in the U.S. government’s unrelenting efforts to dismantle drug cartels, and we will not hesitate to prosecute those who support major narcotics traffickers by engaging in conduct that violates the act’s criminal prohibitions.”
“Today’s sentencing of a prominent individual who willfully violated the Kingpin Act to engage in criminal transactions that facilitated the CJNG organization shows our unwavering commitment to bring to justice those who disregard the law and threaten public safety,” said Special Agent in Charge Bill Bodner of the Drug Enforcement Administration’s Los Angeles Field Division. “Those who engage in illicit finance activities to aid the drug cartels that fill our communities with powerful and addictive drugs have no business operating without accountability.”
The Los Angeles Field Division of the Drug Enforcement Administration investigated the case, and the Justice Department particularly thanks the Office of Foreign Assets Control of the Department of the Treasury and the U.S. Marshals Service for their support and contributions to the case.
Trial Attorneys Brett Reynolds, Kaitlin Sahni and Kate Naseef of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.
This case received significant support from the Organized Crime Drug Enforcement Task Force (OCDETF) program. The OCDETF program supports investigations around the country to identify, disrupt, dismantle and prosecute high-level members of drug trafficking, weapons trafficking and money laundering organizations and enterprises.
Wife of “El Chapo” Pleads Guilty to Drug Trafficking and Money LaunderingRead the Press Release
The wife of Joaquin “El Chapo” Guzman Loera, leader of the Mexican drug trafficking organization known as the Sinaloa Cartel, pleaded guilty today to charges related to international drug trafficking, money laundering, and a criminal violation of the Foreign Narcotics Kingpin Designation Act (the Kingpin Act).
According to court documents, Emma Coronel Aispuro, 31, a dual U.S.-Mexican citizen, pleaded guilty to a three-count criminal information charging her with: 1) Conspiring to distribute five kilograms or more of cocaine, one kilogram or more of heroin, 500 grams or more of methamphetamine, and 1,000 kilograms or more of marijuana in the U.S., Mexico, and elsewhere, knowing, intending, and having a reasonable cause to believe that such substances would be unlawfully imported into the U.S.; 2) conspiring with others to launder narcotics proceeds; and 3) violating the criminal penalties of the Kingpin Act by engaging in transactions and dealings in property of her husband, Guzman Loera, a Significant Foreign Narcotics Trafficker designated by the Office of Foreign Assets Control of the U.S. Department of the Treasury.
Coronel Aispuro is scheduled to be sentenced on Sept. 15. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Assistant Director in Charge Steven D’Antuono of the FBI’s Washington Field Office made the announcement.
This investigation is being conducted by the FBI’s Washington Field Office with significant assistance from other FBI Field Offices, the Drug Enforcement Administration and Homeland Security Investigations.
Deputy Chief Anthony Nardozzi and Trial Attorney Kate Wagner of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
Statement of Attorney General Merrick B. Garland on the Life of Judge Robert KatzmannRead the Press Release
U.S. Attorney General Merrick B. Garland made the following statement on the passing of Judge Robert Katzmann:
“We lost a giant yesterday with the passing of Judge Robert Katzmann. Humble and modest in demeanor, he leaves behind a legion of family, friends, and colleagues who will feel his loss because he enriched our lives through our relationship to him. But that number pales in comparison to the lives he touched through his work – people who will never know the name of the man who helped make their lives better.
“Bob had extraordinary intellectual gifts, a profound commitment to the law, and a deep devotion to public service. He was a distinguished federal judge on the Second Circuit, a creative legal thinker, and a gifted teacher. He saw everyone as a person, not merely a litigant or a defendant, and was deeply conscious of the impact that his legal rulings would have on the lives of those affected by his decisions.
“A PhD political scientist as well as a lawyer, Bob had an unparalleled understanding about how Congress viewed the laws it passed and the means by which those laws should be interpreted by the judiciary. He authored several books; the most recent, Judging Statutes, is widely taught in law schools to help students understand statutory interpretation, the basis for so many legal questions that come before the courts.
“His influential decisions are too many to mention. One that stands out is his opinion writing for the full 2nd Circuit that Title VII of the Civil Rights Act of 1964 prohibits employment discrimination on the basis of sexual orientation. That decision was later affirmed by the Supreme Court in Bostock v. Clayton County.
“Bob was the rare jurist whose achievements outside the courtroom are as monumental as his work as a judge. His deep belief that the justice system cannot work unless people have access to representation led him to found the Immigrant Justice Corps, a fellowship program through which recent law school and college graduates provide high quality legal assistance to tens of thousands of immigrants on a range of life-altering legal matters.
“Bob understood that public confidence in the judicial system requires an understanding of the role of courts and bringing courts closer to the community. He launched a circuit-wide civic education initiative, Justice for All: Courts and the Community, in which judges, court personnel, attorneys and educators work together to help ensure that courts are accessible and effective public institutions.
“The rule of law and the search for equal justice have lost one of their most effective advocates. Bob elevated our profession and inspired countless young law students and lawyers. He brought enormous and edifying humanity to every interaction he had.
“Bob was my friend. While serving together for many years on committees of the Judicial Conference of the United States, I saw firsthand his decency, compassion and humility. His wife, Jennifer, his mother Sylvia, and his brothers and sister, Gary, Martin and Susan, have my deepest sympathy. He will be sorely missed.”