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Friday 1 May 2020
Criminal Charges Filed Against Two Iranian Nationals for Violating Money Laundering & Sanctions Laws by Procuring Petroleum TankerRead the Press Release
Amir Dianat, 55, and Kamran Lajmiri, 42, both Iranian nationals, were charged with violating U.S. export laws and sanctions against Iran in the U.S. District Court for the District of Columbia.
A two-count criminal complaint returned today charges Dianat and Lajmiri with conspiracy to provide U.S. financial services to Iranian entities and their front companies attempting to purchase a petroleum tanker, the Nautic, in September 2019. The complaint alleges that the defendants concealed from the seller, financial institutions that clear U.S. dollar transactions, and the U.S. government that the sale of this vessel was destined for Iran, all as part of a scheme to enrich the defendants and other conspirators, and to evade the regulations, prohibitions, and licensing requirements of the International Emergency Economic Powers Act (IEEPA) and the Iranian Transactions and Sanctions Regulations (ITSR).
A related verified civil forfeiture complaint was filed against $12,338,941.91. These funds were allegedly involved in this scheme to launder funds into the United States to illicitly procure the Nautic. The civil forfeiture complaint alleges that this scheme involved the National Iranian Oil Company, the National Iranian Tanker Company (NITC), and the IRGC-Qods Force (IRGC-QF), all specially designated nationals. The IRGC has also been designated a Foreign Terrorist Organization. This forfeiture action represents the largest ever seizure of IRGC-QF related funds. All funds of terrorist organizations are subject to forfeiture.
“These defendants purchased a crude oil tanker valued at over $10 million by illegally using the U.S. financial system, defiantly violating U.S. sanctions,” said Assistant Attorney General for National Security John C. Demers. “This is yet another example of Iran brazenly using front companies and false documentation in an attempt to hide the illegal transactions that the Iranian regime desperately needs to fund its malign activities. The enforcement of U.S. sanctions and related financial criminal laws is a major component of the National Security Division’s commitment to protecting the national security of the United States. I commend the efforts of the prosecutors, agents, and analysts who uncovered this illegal scheme and whose work resulted in the largest ever forfeiture action involving IRGC-QF.”
“Employing civil forfeiture authorities specifically available to the U.S. Attorney’s Office in the District of Columbia, we will continue to aggressively prosecute those who abuse our financial system to support sanctioned entities,” said U.S. Attorney Timothy J. Shea for the District of Columbia. “We will use every measure available under the law, to include civil forfeiture to recover funds for the victims of terrorism. These laws exist and serve to prevent hostile countries from illicitly generating revenue, such as through the sale of oil, to fund their weapons proliferation programs. Today’s charges are another example of the dedicated and unrelenting efforts of our office, the FBI, and HSI.”
“Today's complaint demonstrates that those who use the U.S. financial system to benefit the Iranian oil industry will be investigated by the FBI and prosecuted to the fullest extent of the law,” said FBI Minneapolis Special Agent in Charge Rainer Drolshagen. “Iran's petrochemical and petroleum sectors are primary sources of funding for the Iranian regime, and the FBI will continue to aggressively pursue those who illegally use the U.S. financial system for their benefit."
“Protecting our homeland encompasses many missions, including safeguarding our nation's exports and currency," said Steven W. Cagen, HSI Colorado Special Agent in Charge. “These criminals thought they could enrich themselves while aiding Iran, a country that continues to pose a serious threat to our nation’s security. They will now face the consequences of their actions.”
A concurrent action was filed by the Department of the Treasury, sanctioning Dianat and his related front company, Taif Mining.
According to the pleadings, beginning around May 2019 through December 2019, Dianat and Lajmiri conspired to purchase the Nautic via a complex web of front companies, including Taif Mining. After sending the final wire payment to the seller, Taif Mining took possession of the Nautic. It quickly changed its name and began making trips to Iran to load Iranian petroleum. Because a U.S. bank froze the funds related to the sale of the vessel, the seller never received payment. As a result, the seller instituted a civil action in the U.A.E. to recover the vessel.
On March 15, 1995, the President, pursuant to IEEPA, issued Executive Order No. 12957, finding that “the actions and policies of the Government of Iran constitute an unusual and extraordinary threat to the national security, foreign policy, and economy of the United States” and declaring “a national emergency to deal with the threat.” In subsequent Executive Orders, the President imposed economic sanctions, including a trade embargo, on Iran. The Executive Orders and the ITSR prohibit the exportation, re-exportation, sale, or supply, directly or indirectly, to Iran of any goods, technology, or services from the United States or by a United States person without prior authorization or license from the U.S. Department of the Treasury, the Office of Foreign Assets Control, located in Washington, D.C. The conspirators utilized the U.S. correspondent banking system to process illicit transactions in U.S. Dollars, and at no time were U.S. financial institutions alerted that they were financing the purchase of a tanker for Iranian entities.
If convicted, Dianat and Lajmiri would face a maximum of 20 years imprisonment.
The investigation was conducted by special agents from the FBI Minneapolis Field Office and HSI Colorado Springs.
The details contained in the pleadings are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law, and the burden to prove forfeitability in a civil forfeiture proceeding is upon the government.
Assistant U.S. Attorneys Zia M. Faruqui and Brian Hudak, National Security Division Trial Attorney David C. Recker, and Supervisory Paralegal Specialist Elizabeth Swienc and Legal Assistant Jessica McCormick from the U.S. Attorney’s Office for the District of Columbia, are representing the government.
Clarence Man Sentenced to Ten Years in Federal Prison for Attempted Enticement of a MinorRead the Press Release
A man who attempted to entice a minor to engage in illegal sexual activity was sentenced today to ten years in federal prison.
Jason Koontz, age 34, of Clarence, Iowa, received the sentence after a July 18, 2019, guilty plea to one count of attempted enticement of a minor. At the plea hearing, Koontz admitted that, in July 2017, he attempted to persuade, induce, or entice a person who he believed to be a minor to engage in illegal sexual activity.
Koontz was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Koontz was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed, and Koontz must also serve a five-year term of supervised release. He must comply with all sex offender registration and public notification requirements.
This case was prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Iowa Division of Criminal Investigation, Homeland Security Investigations, the Hiawatha Police Department, and the Marion Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 19-48.
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Chapel Hill Couple Federally Charged in Elder Fraud Home Repair SchemeRead the Press Release
Greensboro, N.C. – Matthew G.T. Martin, United States Attorney for the Middle District of North Carolina, announced today that two individuals have been charged with conspiracy to defraud in a home repair scheme.
On April 30, 2020, JORGE ALBERTO GARCIA, also known as “Roberto Garcia” and “Alberto Garcia” (hereinafter “GARCIA”), age 38, and HELEN [NMN] SMITH-FLORES, also known as “Helen Smith” and “Helen Smith Flores” (hereinafter “SMITH-FLORES”), age 40, both of Chapel Hill, North Carolina, were charged in a criminal Complaint with conspiracy to commit wire fraud, that is, to devise a scheme and artifice to defraud and to obtain money and property by means of materially false and fraudulent pretenses, representations and promises.
“The allegations in the Complaint lay bare a depraved scheme: two individuals working in concert to take money from elderly and vulnerable people,” said U.S. Attorney Martin. “The defendants allegedly presented themselves as helpers and the victims trusted them, only to be left poorer, and still in need of repairs to the place where they should feel most secure--their homes. We should honor our elders, not deceive and defraud them. We applaud the law enforcement agencies whose diligent work and collaboration resulted in these charges.”
The Complaint alleges that from on or about September 2015 to and including April 2020, GARCIA and SMITH-FLORES approached elderly, retired individuals at their private residences in Durham, Orange, and Chatham Counties, offering home improvement services using the business names “J&J Home Improvement” and “JH Home Improvements, Inc.” GARCIA—who never had a state general contractor’s license—would offer to perform home improvement projects and these elderly individuals would, in turn, pay him prior to the completion of any construction work via personal checks, credit cards, or withdrawals from investment accounts. GARCIA would often direct that these individuals leave the “to” line of the check blank (which would later be completed in the name of SMITH-FLORES), or issue the check directly to SMITH-FLORES who, in turn, deposited the checks into personal accounts in her name or that of her business, La Cacerola. SMITH-FLORES would then withdraw the money in cash and/or issue a cashier’s check made out to GARCIA. GARCIA and SMITH-FLORES would also take the checks to the elderly individual’s bank or their bank and cash the checks without depositing the funds into their bank accounts.
GARCIA would develop personal relationships with these elderly individuals, calling them “Momma” and “Poppa,” and encourage them to solicit their neighbors to engage his services in home improvement projects for their residences, as well. GARCIA also solicited loans from some of the elderly individuals for whom he had already contracted to perform home improvement projects, separate and apart from those projects.
However, GARCIA would not complete the contracted home improvement projects, nor would he repay any loans in full. When the contracting individual, a concerned relative of that person, or a local law enforcement officer confronted GARCIA about the payments, GARCIA and SMITH-FLORES would respond in the following ways: a) GARCIA would promise to send workers to complete the project but never fully complete the project; b) GARCIA or SMITH-FLORES would return a small percentage of the monies paid for the project; and/or c) GARCIA or SMITH-FLORES would write a personal check to the contracting individual that would be returned by the issuing bank as lacking sufficient funds.
Review of records from bank accounts known to be controlled by GARCIA and/or SMITH-FLORES for the time period spanning February 2016 through November 2019 indicates that, as a result of the above-described scheme to defraud, GARCIA and SMITH-FLORES obtained a total of approximately $2,200,000 from more than fifty victims.
“It is difficult to fathom how Garcia and his wife could target, prey upon, and systematically rip off elderly victims without a second thought. Now, they can think long and hard about the hefty federal charges they face. The FBI will continue to try and identify as many victims as possible of their home improvement scheme,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
The FBI is seeking victims who may have been defrauded by GARCIA and SMITH-FLORES. If you believe you are a victim of or have been affected by this scheme, please go to [email protected] or call 1-800-CALL-FBI and make a report.
If convicted, each defendant faces a maximum term of 20 years imprisonment, a term of supervised release of not more than 3 years, a fine not to exceed $250,000.00, and a mandatory special assessment of $100.00.
GARCIA is currently in state custody serving a 90 day sentence for criminal contempt of a Consent Order signed May 16, 2017, which enjoined him from the practice of general contracting in North Carolina.
SMITH-FLORES was served with a summons and the Complaint in this matter today. She is scheduled to make an initial appearance in court in Greensboro on May 7, 2020, at 2:30 p.m.
A criminal complaint is merely an allegation, and each defendant is presumed innocent unless and until proven guilty.
The case was investigated by the Federal Bureau of Investigation in coordination with the Durham Police Department, Chatham County Sheriff’s Office, Chapel Hill Police Department, Carrboro Police Department, Cary Police Department, and others. The case is being prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Career Counterfeiter Facing 20 Years in Prison for Possessing Phony $100 BillsRead the Press Release
MACON, Ga. – A Tampa, Florida, resident with multiple prior convictions related to trafficking in forged U.S. currency is facing up to twenty years in prison for possessing counterfeit $100 bills, said Charlie Peeler, the U.S. Attorney for the Middle District of Georgia. Tranorris Lamar Jackson, 27, of Tampa, entered a guilty plea to one count possession of counterfeit Federal Reserve notes during a video teleconference hearing before U.S. District Judge Marc Treadwell on Wednesday, April 29, 2020. Jackson is facing a maximum sentence of twenty years in prison, a $250,000 fine and three years supervised release for his crime. Jackson will be sentenced in the Middle District of Georgia at 9:30 a.m. on August 5. There is no parole in the federal system.
“Counterfeiting is a serious federal offense that can result in serious prison time here in the Middle District of Georgia,” said U.S. Attorney Charlie Peeler. “I want to thank the Perry Police Department and the U.S. Secret Service for their work in this investigation, and helping stop a career counterfeiter from continuing his brazen criminal activities.”
Perry Police officers first discovered counterfeit U.S. currency during a traffic stop on April 25, 2018. The following day, officers conducted a legal search of a Howard Johnson Motel Room in Perry, Georgia, where Jackson was staying. During the search, officers located a small amount of suspected marijuana, three pairs of scissors and more counterfeit $100 bills. All of the bills were printed on normal printer paper and had been hidden under the mattress of one of the beds in the room. A large portion of the bills were uncut, though some of them had already been cut out. Jackson, who was serving a federal probation sentence for counterfeiting, was taken into custody and transported to the Houston County jail. The transporting officer discovered shredded pieces of a counterfeit $100 bill in the backseat of the vehicle. The officer observed more pieces of counterfeit $100 bills being dropped behind Jackson as he walked from the patrol vehicle to the jail. Once in the jail, the officers searched Jackson and found more pieces of counterfeit $100 bills inside of his pants legs. The bills had been printed on regular printer paper and contained two of the same serial numbers that were on the bills found in motel room. In all, the Perry Police Department recovered more than $30,000 in counterfeit bills.
Jackson has multiple convictions out of Hillsborough County, Florida, including a 2016 felony conviction for uttering a forged bill and grand theft and a 2017 conviction for possessing counterfeit money. Jackson was convicted on May 29, 2019, in the Middle District of Florida for passing counterfeit Federal Reserve notes and was sentenced to 36 months’ probation and six months home detention. His probation was later revoked in the Middle District of Florida to a term of 8 months in prison for violating the terms of his probation and home detention. That sentence is set to run consecutively to his sentence in the present case.
This case is being investigated by the United States Secret Service and Perry Police Department. Assistant U.S. Attorney Steven Ouzts is prosecuting the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Business owner pleads guilty to bribing City of Atlanta official to win contract at Atlanta’s airportRead the Press Release
ATLANTA - Hayat Choudhary, CEO of Atlanta Airport Shuttle Services, Inc., d/b/a Meskerem Restaurant, has pleaded guilty to bribery for paying $20,000 in cash to a City of Atlanta Department of Procurement official to secure a contract at the Hartsfield-Jackson Atlanta International Airport.
“Pay-to-play bribery schemes cause citizens to lose trust in the integrity of the contracting process,” said U.S. Attorney Byung J. “BJay” Pak. “Public corruption involving government officials is reprehensible. Our office remains committed to eliminating corruption in government at all levels, and we want to thank the City of Atlanta for its cooperation in this investigation.”
“Choudhary tried to buy his way around a process that is meant to be fair to all contract applicants,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “His actions erode the public's trust in government and that's why the FBI and our law enforcement partners are determined to prosecute those who would undermine the integrity of how contracts are awarded.”
According to U.S. Attorney Pak, the charges and other information presented in court: The City of Atlanta’s Hartsfield-Jackson Atlanta International Airport (“Atlanta’s airport”) is the principal airport for Georgia and the southeastern United States. In 2017, Atlanta’s airport – the busiest passenger airport in the world at the time – generated more than $500 million in revenue for the City of Atlanta, including approximately $8.8 million in fees and charges from private ground transportation companies (such as taxicabs, limousines, ridesharing, and hotel and parking lot shuttles). One such company was Atlanta Airport Shuttle Services, Inc., d/b/a Meskerem Restaurant, owned and operated by the defendant, Hayat Choudhary.
The City of Atlanta’s Department of Procurement was responsible for acquiring all services for Atlanta’s airport. The Department of Procurement’s “Guiding Principles” commit its personnel to “award contracts that are consistent with the policy, regulations, rules, and laws,” and “without regard for personal gain.”
On or about May 2, 2017, the Department of Procurement announced that the City of Atlanta sought to enter a contract for a vendor to establish and operate a kitchen/restaurant at the Ground Transportation Building at Atlanta’s airport. The kitchen/restaurant would serve the large and growing number of taxi, limousine, and rideshare drivers who provided transportation services to passengers traveling to and from Atlanta’s airport.
The Department of Procurement projected that the kitchen/restaurant at the Ground Transportation Building would generate annual revenue of $200,000, and result in rent payments to the City of Atlanta of $13,000 per year. The City of Atlanta offered a ten-year term for the kitchen/restaurant contract, with a three-year renewal option. Choudhary’s company, Atlanta Airport Shuttle Services, Inc., d/b/a Meskerem Restaurant, was one of the bidders for the contract.
“Official-1” was the Department of Procurement official responsible for overseeing the bidding process and, thus, influenced the awarding of the kitchen/restaurant contract. After the contract was announced, Choudhary paid a $10,000 bribe to Official-1 to obtain the contract. After the first bribe payment, Official-1 instructed Choudhary that he had to pay another $10,000 to receive the contract. Choudhary paid the second $10,000 bribe. Following Choudhary’s payment of $20,000 to Official-1, the City of Atlanta awarded the contract to Choudhary’s company.
Based on his conduct, Hayat Choudhary, 58, of Lilburn, Georgia, was charged in a Criminal Information with, and pleaded guilty to, conspiracy to commit bribery.
The Federal Bureau of Investigation is investigating this case.
Assistant U.S. Attorney Trevor C. Wilmot is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Bronx Man Charged with Drug ConspiracyRead the Press Release
SYRACUSE, NEW YORK – Shakespeare Cruz, age 45, of the Bronx, New York, was arraigned in federal court today on an indictment charging him with a cocaine and heroin distribution conspiracy, announced United States Attorney Grant C. Jaquith and Ray Donovan, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA), New York Field Division.
The indictment alleges that Cruz conspired with others to distribute more than one kilogram of heroin and more than five kilograms of cocaine in Lewis County, New York, and elsewhere. The indictment further alleges that Cruz has two previous convictions for serious drug felonies. The charges in the indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted of the charges, the defendant faces up to life imprisonment, and a mandatory minimum sentence of 25 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. The defendant is currently held in custody without bail pending a detention hearing.
This case is being investigated the DEA, and is being prosecuted by Assistant U.S. Attorney Andrew D. Beaty.
Blue Bell Creameries Agrees to Plead Guilty and Pay $19.35 Million for Ice Cream Listeria Contamination – Former Company President ChargedRead the Press Release
Texas-based ice cream manufacturer Blue Bell Creameries L.P. agreed to plead guilty to charges it shipped contaminated products linked to a 2015 listeriosis outbreak, and the company’s former president was charged in connection with a scheme to cover up the incident, the Justice Department announced today.
In a plea agreement filed with a criminal information in federal court in Austin, Texas, Blue Bell agreed to plead guilty to two misdemeanor counts of distributing adulterated ice cream products and pay a criminal fine and forfeiture amount totaling $17.25 million. Blue Bell also agreed to pay an additional $2.1 million to resolve civil False Claims Act allegations regarding ice cream products manufactured under insanitary conditions and sold to federal facilities. The total $19.35 million in fine, forfeiture, and civil settlement payments constitutes the second largest-ever amount paid in resolution of a food-safety matter.
In a related case, Blue Bell’s former president, Paul Kruse, also was charged with seven felony counts related to his alleged efforts to conceal from customers what the company knew about the listeria contamination.
“American consumers rely on food manufacturers to take necessary steps to provide products that are safe to eat,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The Department of Justice will take appropriate action where food manufacturers ignore poor factory conditions or fail to abide by required recall procedures when problems are discovered.”
The plea agreement and criminal information filed today against Blue Bell in the U.S. District Court for the Western District of Texas alleges that the company distributed ice cream products that were manufactured under insanitary conditions and contaminated with Listeria monocytogenes, in violation of the Food, Drug and Cosmetic Act. According to the plea agreement, Texas state officials notified Blue Bell in February 2015 that two ice cream products from the company’s Brenham, Texas factory tested positive for Listeria monocytogenes, a dangerous pathogen that can lead to serious illness or death in vulnerable populations such as pregnant women, newborns, the elderly, and those with compromised immune systems. Blue Bell directed its delivery route drivers to remove remaining stock of the two products from store shelves, but the company did not recall the products or issue any formal communication to inform customers about the potential listeria contamination. Two weeks after receiving notification of the first positive listeria tests, Texas state officials informed Blue Bell that additional testing confirmed listeria in a third product. Blue Bell again chose not to issue any formal notification to customers regarding the positive tests.
In March 2015, tests conducted by the Food and Drug Administration (FDA) and Centers for Disease Control and Prevention (CDC) linked the strain of listeria in one of the Blue Bell ice cream products to a strain that sickened five patients at a Kansas hospital with listeriosis, the severe illness caused by ingestion of listeria-contaminated food. The FDA, CDC, and Blue Bell all issued public recall notifications on March 13, 2015. Subsequent tests confirmed listeria contamination in a product made at another Blue Bell facility in Broken Arrow, Oklahoma, which led to a second recall announcement on March 23, 2015.
“The health of American consumers and the safety of our food are too important to be thwarted by the criminal acts of any individual or company,” said Judith A. McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, FDA. “Americans expect and deserve the highest standards of food safety and integrity and we will continue to pursue and bring to justice those who put the public health at risk by distributing contaminated foods in the U.S. marketplace.”
“This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to hold companies accountable for failing to abide by important contract requirements,” said Robert E. Craig Jr., Special Agent in Charge of the DCIS Mid-Atlantic Field Office. “This case has been particularly concerning because of the disregard of basic food safety rules and the impact those actions can have on the health and safety of the Defense Department's service members and their families.”
“The health and safety of our military members and their families is critical to the Department of Defense and mission readiness,” said Michael C. Mentavlos, Special Agent in Charge of the DCIS Southwest Field Office. “We take all criminal acts, including those that raise grave health concerns, seriously, and DCIS will always place a premium on the well-being of our service members, their dependents, and our veterans.”
According to the plea agreement with the company, FDA inspections in March and April 2015 revealed sanitation issues at the Brenham and Broken Arrow facilities, including problems with the hot water supply needed to properly clean equipment and deteriorating factory conditions that could lead to insanitary circumstances. Blue Bell temporarily closed all of its plants in late April 2015 to clean and update the facilities. Since re-opening its facilities in late 2015, Blue Bell has taken significant steps to enhance sanitation processes and enact a program to test products for listeria prior to shipment.
According to the allegations filed against Kruse, Blue Bell’s former president allegedly orchestrated a scheme to deceive certain Blue Bell customers after he learned that products from the company’s Texas factory tested positive for Listeria monocytogenes. Kruse specifically is asserted to have directed other Blue Bell employees to remove potentially contaminated products from store freezers without notifying retailers or consumers about the real reason for the withdrawal. Kruse also is alleged to have directed employees to tell customers who asked why products were removed that there had been an unspecified issue with a manufacturing machine instead of that samples of the products had tested positive for listeria.
The civil False Claims Act settlement with the company resolves allegations that Blue Bell shipped ice cream products manufactured in insanitary conditions to U.S. facilities, and later failed to abide by contractually required recall procedures when its employees removed products from federal purchasers’ freezers without properly disclosing details about the potentially contaminated ice cream to the appropriate federal officials.
The allegations filed against Kruse merely assert that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Except as admitted in the plea agreement, the False Claims Act claims resolved by the settlement with the company are allegations only and there has been no determination of liability.
Trial Attorneys Patrick Hearn and Matt Lash of the Civil Division’s Consumer Protection Branch prosecuted the case with assistance from Shannon Singleton and Michael Varrone of the FDA’s Office of Chief Counsel. The criminal investigation was conducted by the FDA’s Office of Criminal Investigations and the Department of Defense's DCIS. The U.S. Attorney’s Office for the Western District of Texas provided substantial assistance.
The civil False Claims Act investigation was led by Trial Attorney Michael Podberesky of the Civil Division’s Commercial Litigation Branch, with investigative support from the Department of Defense's DCIS.
For more information about the enforcement efforts of the Consumer Protection Branch and the Fraud Section of the Commercial Litigation Branch, visit their websites at http://www.justice.gov/civil/consumer-protection-branch and https://www.justice.gov/civil/fraud-section. For updated information about events in this case, please see the page at https://www.justice.gov/civil/consumer-protection-branch/cases/blue-bell-creameries.
Augusta man gets prison time for possession of child pornographyRead the Press Release
AUGUSTA, GA: A convicted child molester is going to federal prison after being sentenced for possession of child pornography.
Claude Martin Johnson IV, 22, of Augusta, was sentenced to 10 years in prison by U.S. District Court Chief Judge J. Randal Hall after pleading guilty to one count of Possession of Child Pornography, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. Johnson also is required to pay $3,000 in restitution to one victim, and after completion of the prison term, Johnson will be required to serve 20 years of supervised release. There is no parole in the federal system.
“We in the Southern District do not tolerate those who exploit the most vulnerable among us,” said U.S. Attorney Christine. “Claude Johnson, previously convicted in state court of child molestation, has now earned a decade in federal prison.”
According to court documents and testimony, Johnson was sentenced in 2015 to seven years of probation after a state court conviction for child molestation. On May 1, 2019, officers from the Georgia Department of Community Supervision conducted a search at Johnson’s home in accordance with the conditions of his probation. During the search, the officers found multiple images of child pornography on two cell phones belonging to Johnson, and took him into custody for violation of his probation.
“This sentence should send a clear message to anyone who would try to take advantage of innocent children,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Johnson’s 10 years in prison will give him plenty of time to think about his unacceptable behavior. But more importantly, while in prison, he won't be able to do harm to any more children.”
The case was investigated by the FBI, the Richmond County Sheriff’s Office and the Georgia Department of Community Supervision, and prosecuted for the United States by Assistant U.S Attorney Tara Lyons.
Another Defendant in South Side Drug Gang Case Pleads GuiltyRead the Press Release
PITTSBURGH, PA – A former resident of Pittsburgh pleaded guilty in federal court to charges related to drug trafficking in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, United States Attorney Scott W. Brady announced today.
St. John Williams, 29, pleaded guilty to one count of conspiracy to distribute or possess with intent to distribute heroin and fentanyl, before United States District Judge William S. Stickman IV. Mr. Williams is one of 36 defendants charged in the Indictment and is the fourteenth to plead guilty.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity, in and around the South Side area of Pittsburgh. As part of this large-scale narcotics and firearms investigation, in February of 2019, the United States received authorization to conduct a federal wire investigation, which continued through June of 2019.
The court was further advised that Mr. Williams was involved in the distribution of heroin and fentanyl, including purchasing distribution level quantities of heroin and fentanyl from co-conspirator Anthony Jetter, and also selling heroin and fentanyl on behalf of co-conspirator Christopher Highsmith.
Judge Stickman scheduled sentencing for September 22, 2020, at 10:30 am. The law provides for a total sentence of not more than twenty years in prison, a fine of up to $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of each defendant. Williams remains detained pending sentencing.
Assistant United States Attorney Christy C. Wiegand is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which
also included the Bureau of Alcohol Tobacco Firearms and Explosives,
Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
AG Barr Directs US Attorneys to Investigate Housing-Related Sexual Harassment Amid COVID-19 PandemicRead the Press Release
PROVIDENCE – Attorney General William P. Barr has directed U.S. Attorney’s Offices across the country to investigate reports of housing-related sexual harassment resulting from the current COVID-19 pandemic.
As the country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages diminish. These financial losses have impacted some Americans’ ability to pay their rent. According to a recent memo from the Attorney General, there have been reports of landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Behavior like this is a form of sexual harassment, and is illegal under the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often impacts society’s most vulnerable populations.
“Demanding sexual favors in exchange for housing – one of the most basic necessities of life – is illegal and unconscionable,” said United States Attorney Aaron L. Weisman. “The idea that any American should have to submit to unwanted sexual conduct in order to have a safe place to call home is appalling at any time; in the midst of a pandemic, it is intolerable. My office and our law enforcement partners will aggressively investigate these cases.”
The Attorney’s General’s directive reaffirms the commitment that the Department of Justice made when it launched the Sexual Harassment Initiative in October 2017. That initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
If you think you are a victim of sexual harassment by a landlord, or other person who has control over housing, resulting from the COVID-19 crisis, contact the U.S. Attorney’s Office by calling 401-709-5010 or emailing [email protected]. For more information, visit www.justice.gov/crt/sexual-harassment-housing-initiative
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Thursday 30 April 2020
Wayne County Man Who Had Gun and Ammunition in Backpack Sentenced to 42 Months in PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Anthony Martinez, 27, of Williamson, NY, pleaded guilty before Chief U.S. District Judge Frank P. Geraci, Jr. to being felon in possession of ammunition, and was sentenced to serve 42 months in prison.
Assistant U.S. Attorney Katelyn M. Hartford, who handled the case, stated that on July 20, 2019, the defendant had an AR-type firearm and ammunition in his backpack at his place of employment, a fast food restaurant in the Town of Williamson. The defendant told another employee that he had a gun in the backpack. That employee alerted a manager who then called the New York State Police.
In July 2014, the defendant was convicted in Monroe County Court of Attempted Assault in the First Degree and sentenced to serve seven years in prison. As a result, Martinez is prohibited from legally possessing firearms and ammunition.
The plea and sentencing are the result of an investigation by the New York State Police, under the direction of Major Eric Laughton, and the Bureau of Alcohol, Tobacco, Firearms, & Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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United States Attorney William D. Hyslop Releases Public Service Announcement Regarding COVID-19 ScamsRead the Press Release
Spokane, Washington – William D. Hyslop, United States Attorney for the Eastern District of Washington, has released a Public Service Announcement (“PSA”) providing steps the public can take when they encounter consumer financial fraud scams, illegal hoarding or price gouging during the COVID-19 (coronavirus) pandemic.
“We are aware of instances of consumer fraud violations across the country stemming from the COVID-19 public health emergency,” said U.S. Attorney Hyslop. “While Americans work to protect themselves from the threat of COVID-19, some individuals are actively preying upon our citizens and are trying to profit off of this emergency. We are asking all electronic media to carry this PSA message to help get this important message out to the public.”
The PSA can be viewed at the following link:
https://twitter.com/USAttorneys/status/1252213361636446210
A special HD quality version of the PSA suitable for broadcasting can be obtained by contacting Debbie Doll, Executive Assistant to the U.S. Attorney at (509) 413-6344 or via email at [email protected]
If you (or someone you know) believe you have been the target or victim of COVID-19-related fraud, hoarding or price-gouging, you are strongly encouraged to report it to the National Center for Disaster Fraud (NCDF) Hotline (866.720.5721), or to the NCDF email address ([email protected]). The NCDF is a national coordinating agency within the Department of Justice’s Criminal Division that assists with detection, prevention, investigation, and prosecution of criminal conduct related to the COVID-19 outbreak, and to advocate for the victims of such conduct. The NCDF Hotline is available to receive reports from the public of potential fraud 24 hours a day, seven days a week. Callers will be connected with a live operator or can leave a message detailing their report.
The public may also make such reports to the FBI’s Internet Crime Complaint Center by visiting www.IC3.gov. The FBI has extensive expertise in cybercrime and is monitoring issues relating to phishing attempts and efforts to infect emails, links, and postings with malware.
Complaints can also be emailed to the United States Attorney’s Office at: [email protected]
Fraudsters devise numerous methods for defrauding people, such as creating websites, contacting people by phone and email, and posting disinformation on social media platforms. Examples of some of the scams linked to COVID-19 include:
• Testing scams: Selling fake at-home test kits or going door-to-door performing fake tests for money.
• Treatment scams: Offering to sell fake cures, vaccines, and advice on unproven treatments for COVID-19.
• Provider scams: Contacting people by phone and email, pretending to be doctors and hospitals that have treated a friend or relative for COVID-19, and demanding payment for that treatment.
• Phishing scams: Posing as national and global health authorities, including the World Health Organization (WHO) and the Centers for Disease Control and Prevention (CDC), or sending phishing emails designed to trick recipients into downloading malware or providing personal identifying and financial information.
• App scams: Creating and manipulating mobile apps designed to track the spread of COVID-19 to insert malware that will compromise users’ devices and personal information.
• Investment scams: Offering online promotions, including through social media, claiming products or services of publicly traded companies can prevent, detect, or cure COVID-19, and that the stock of these companies will dramatically increase in value as a result.
If you would like to schedule an interview with U.S. Attorney Hyslop, please contact Debbie Doll, Executive Assistant to the U.S. Attorney, at 509-413-6344.
Additional information about COVID-19 Fraud is available at the website for the United States Attorney’s Office for the Eastern District of Washington is http://www.justice.gov/usao-edwa
U.S. Attorney’s Office and IRS-CI warn taxpayers against fraud schemes related to COVID-19 Economic Impact PaymentsRead the Press Release
KANSAS CITY, Mo. – U.S. Attorney Tim Garrison and Special Agent in Charge Karl Stiften, IRS-Criminal Investigation (IRS-CI), St. Louis Field Office, are warning taxpayers to be on the lookout for scam artists trying to use the COVID-19 economic impact payments as cover for schemes to steal personal information and money.
Garrison and Stiften made the announcement today in an effort to prevent taxpayers from falling victim to criminals using the recently approved economic impact payments as an opportunity to commit a crime.
“We want the public to be informed and alert so they don’t fall prey to these criminal schemes,” said Garrison. “Economic impact payments are intended to assist honest citizens, not enrich greedy fraudsters.”
“The existence of a deadly national pandemic will not stop criminals seeking to capitalize on the fears and difficulties faced by the public as they try to line their own pockets by stealing your money or your personal information,” warned Stiften.
Automatic COVID-19 economic impact payments started being deposited into taxpayers’ accounts on April 11. For most Americans, this will be a direct deposit into their bank accounts. Those without bank accounts, retirees, or other groups who have traditionally received tax refunds via paper check will receive their economic impact payment in this manner as well. Scammers may try to get you to sign over your check to them or use this as an opportunity to get you to “verify” your filing information in order to receive your money, and then use your personal information at a later date to file false tax returns in an identity theft scheme. Because of this, everyone receiving a COVID-19 related economic impact payment from the government is at risk.
Garrison and Stiften offered the following information and tips to spot a scam and understand how the COVID-19 related economic impact payments will be issued:
• The IRS will deposit your check into the direct deposit account you previously provided on your tax return (or, in the alternative, send you a paper check).
• The IRS will not call or send an email or text to ask you to verify your payment details. Do not give out your bank account or any other account information - even if someone claims it's necessary to get your check. It's a scam.
• If you receive a call, don't engage with scammers or thieves, even if you want to tell them that you know it's a scam, or you think that you can beat them. Just hang up.
• If you receive texts or emails claiming that you can get your money faster by sending personal information or clicking on links, delete them. Don't click on any links in those emails or texts.
• Reports are also swirling about bogus checks. If you receive a check that requires you to verify the check online or by calling a number, it’s a fraud.In these uncertain and trying times, we need to stand together united with purpose. Don’t become a victim by allowing criminals to exploit your emotions. Stay strong, tell your family, friends and neighbors about these scams.
“IRS Criminal Investigation and the U.S. Attorney’s Office are prioritizing these types of investigations to help protect taxpayers and the tax system, especially those looking to prey on vulnerable taxpayers,” said Stiften. “Remember, go directly and solely to IRS.gov for official information.”
For more information, visit the IRS website at www.irs.gov/coronavirus. You can always report scams to the IRS on the website at https://www.irs.gov/privacy-disclosure/report-phishing
U.S. Attorney’s Office and Homeland Security Investigations Remind Parents of Risks to Children OnlineRead the Press Release
BOSTON – The U.S. Attorney’s Office and Homeland Security Investigations are partnering to alert parents and guardians of the potential dangers to children online, and providing guidance for internet safety.
As a result of school closings due to COVID-19, children are increasingly using online resources for schoolwork as well as entertainment. Due to increased access to and reliance on social media, chatting apps, gaming, and other internet-based platforms, children may be more vulnerable to sexual exploitation. Now more than ever before, it is imperative that parents and guardians take steps to educate and protect children online.
The U.S. Attorney’s Office and Homeland Security Investigations have partnered to develop an awareness campaign, “Think Before You Click,” to encourage parents and guardians to discuss internet safety with children of all ages and to monitor internet use. Included are tips for identifying potential victimization and resources to report concerns. The flyer was distributed to law enforcement officers and school leaders throughout the Commonwealth.
“Children are susceptible to online predators because they are often unaware of how dangerous online environments can be,” said United States Attorney Andrew E. Lelling. “Children are at an even greater inadvertent risk now due to school closures and the prevalence of ongoing learning and leisure activities. Through “Think Before You Click,” we aim to make parents and guardians more cognizant of the dangers to children online, and arm them with tools to protect children’s privacy.”
“The COVID-19 pandemic has created an increase in online activity, whereby students are utilizing the internet and social media as a key source of education and entertainment. The marked increase in social media usage and lessened social interaction may create opportunity for predators to exploit our children. That being said, parental supervision, open discussions about internet safety, active monitoring, and smarter use of privacy settings will reduce the chance of victimization from child predators,” said Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations (HSI) Boston. “The inherent dangers presented by social media applications are evident. HSI and our law enforcement partners will continue to take an aggressive, whole of government approach to identifying, disrupting, and dismantling those malicious organizations and actors who seek to prey upon our children.”
This effort was brought as part of Project Safe Childhood (PSC), a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. PSC marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. PSC also conducts education and outreach programs aimed at combating and preventing technology-facilitated crimes. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney’s Office Committed to Combating Sexual Harassment in Housing Amid COVID-19 PandemicRead the Press Release
Tampa, FL — The Attorney General has directed U.S. Attorney’s Offices across the nation to investigate reports of sexual harassment in housing as the nation mounts its response to the COVID-19 pandemic. Today, U.S. Attorney Maria Chapa Lopez reaffirms her commitment to combat these predatory practices throughout the Middle District of Florida. Sexual harassment by landlords, property managers, maintenance workers, and others may violate the federal Fair Housing Act. The Department of Justice remains unwavering in the enforcement of this vital statute.
“Sexual harassment in housing is illegal and infringes upon one’s right to fair housing,” said U.S. Attorney Maria Chapa Lopez. “Individuals should not be forced to relinquish their dignity and submit to threats, coercion, or harassment in order to stay safe within their homes during this global pandemic. This appalling behavior is illegal and will not be tolerated.”
As a result of the COVID-19 public health crisis, many citizens have found themselves furloughed, unemployed, or otherwise in dire financial straits. This has led many to seek abatements, suspensions of their rent payments, or find other accommodations during this time. While many landlords and housing providers have positively responded with understanding and assistance, sadly, others may seek an opportunity to exploit the financially vulnerable through demands for sexual favors and other acts of unwelcome sexual misconduct. The U.S. Attorney’s Office stands ready to investigate and prosecute complaints of sexual harassment in housing and work with our partners to enforce the law and prosecute anyone who engages in this behavior.
If you, or anyone you know, believes they are the victim of sexual harassment by a landlord, or other individual who has control over housing, as a result of the COVID-19 crisis, please submit a complaint through the U.S. Attorney’s Office at www.justice.gov/usao-mdfl/civil-rights or email any questions to [email protected]. For further information on sexual harassment in housing, please visit www.justice.gov/crt/sexual-harassment-housing-initiative.
U.S. Attorney Jay E. Town and the Federal Bureau of Investigation Warn of Online Child Exploitation During COVID-19 PandemicRead the Press Release
BIRMINGHAM, Ala. – U.S. Attorney Jay E. Town and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr. warn parents and caregivers of the dangers of online child sexual exploitation, especially during a time when children will have an increased online presence.
“Due to COVID-19, children are online more than ever increasing their susceptibility to dangerous predators lurking online,” Town said. “Parents are, and remain, the best first line of defense to the practice of digital and cyber hygiene and making certain that online predators cannot access our children. Stay safe at home. Stay safe online.”
“The internet, for all its benefits, also gives criminals and predators an easy way to reach young people,” Sharp said. “I want to encourage parents to have open and ongoing conversations about safe and appropriate online behavior and immediately report any inappropriate contact between an adult and your child to law enforcement.”
Every year thousands of children become victims of crime, whether through kidnappings, violent attacks, sexual abuse or online predators.
- In FY 2019, the FBI opened more than 3,070 Crimes Against Children cases, arrested more than 2,300 individuals involved in the sexual exploitation of children, and located and identified more than 2,450 child victims.
- In FY 2018, the FBI opened more than 3,175 Crimes Against Children cases, arrested more than 2,380 individuals involved in the sexual exploitation of children, and located and identified more than 2,670 child victims.
U.S Attorney Town and FBI SAC Sharp offer the following recommendations to help educate and prevent children from becoming victims of child predators and sexual exploitation during this time of national emergency:
Online Child Exploitation
- Discuss Internet safety with children of all ages when they engage in online activity.
- Review and approve games and apps before they are downloaded.
- Make sure privacy settings are set to the strictest level possible for online gaming systems and electronic devices.
- Monitor your children’s use of the Internet; keep electronic devices in an open, common room of the house.
- Check your children’s profiles and what they post online.
- Explain to your children that images posted online will be permanently on the Internet.
- Make sure children know that anyone who asks a child to engage in sexually explicit activity online should be reported to a parent, guardian, or other trusted adult and law enforcement.
- Remember that victims should not be afraid to tell law enforcement if they are being sexually exploited. It is not a crime for a child to send sexually explicit images to someone if they are compelled or coerced to do so.
To report suspicious activity or instances of child sexual exploitation, contact your local FBI field office or submit a tip online at tips.fbi.gov. Reports can also be filed with the National Center for Missing & Exploited Children (NCMEC) or online at www.cybertipline.org.
For more information on the FBI’s guidance on child exploitation and protecting your kids visit https://www.fbi.gov/scams-and-safety/protecting-your-kids.
U.S. Attorney David J. Freed Encourages Victims of Sexual Harassment in Housing to Report WrongdoingRead the Press Release
Harrisburg – U.S. Attorney David J. Freed announces that in coordination with the Department of Justice, Attorney General William Barr directed U.S. Attorneys across the nation to deploy all available enforcement tools against anyone who tries to capitalize on the current COVID-19 crisis by sexually harassing people in need of housing.
According to United States Attorney David J. Freed, as a result of the measures taken to slow the spread of COVID-19, many Pennsylvanians have lost jobs or wages. Some tenants may be unable to make rent payments. While many landlords have responded with understanding, there are reports of landlords across the country who have attempted to exploit the crisis by responding to cash-strapped tenants with demands for sex acts or inappropriate sexual favors. Such conduct is not only despicable and wrong, it is illegal.
The Department of Justice brings cases each year involving unlawful landlord conduct, including allegations that defendants requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.
"Sexual harassment in housing egregiously violates a person’s right to fair housing," said U.S. Attorney Freed. "We will not tolerate opportunistic landlords or property managers using the coronavirus crisis as an opportunity to extort sexual acts, or even commit assaults, against vulnerable tenants struggling to pay rent. Our office is dedicated to uncovering such violations where they exist and vigorously enforcing the law."
Anyone who has experienced sexual harassment in housing, or knows someone who has, should contact the Civil Rights Division by calling 1-(844) 380-6178 or emailing [email protected]. Individuals may also present a complaint to the Civil Rights coordinator of the U.S. Attorney’s Office for the Middle District of Pennsylvania by calling 717-614-4911 or emailing [email protected].
More information about the Department’s Sexual Harassment in Housing Initiative is available on its webpage at https://www.justice.gov/crt/sexual-harassment-housing-initiative.
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U.S. Attorney Christina Nolan to Oversee and Coordinate DOJ Efforts to Combat Sexual Harassment in Housing during the COVID-19 PandemicRead the Press Release
Burlington - United States Attorney General William Barr has directed Assistant Attorney General for Civil Rights Eric Dreiband and Christina Nolan, the U.S. Attorney for the District of Vermont, to oversee and coordinate the Department of Justice’s efforts to address this issue during the current pandemic.
As the COVID-19 pandemic has impacted the ability of many people to timely pay rent and increased housing insecurity, the Department of Justice has heard reports of housing providers trying to exploit the crisis to sexually harass tenants. Sexual harassment in housing is illegal, and the Department of Justice stands ready to investigate such allegations vigorously and pursue enforcement actions where appropriate.
“It is always despicable to exploit vulnerabilities by sexually harassing those in need of housing,” said U.S. Attorney Christina Nolan. “Doing so during a global pandemic, when so many are struggling just to make ends meet, is particularly abhorrent. We thank those in our communities, including landlords and property owners, who are coming together to support those who are hardest hit financially. Sadly, there are some who do the opposite, by sexually exploiting those afraid of losing their homes. This conduct will not be tolerated, and they will be held accountable.” The U.S. Attorney’s Office for the District of Vermont will work closely with state and local partners to identify any incidents of sexual harassment in housing and will use all available enforcement tools against perpetrators.
“The Fair Housing Act authorizes the U.S. Department of Justice take swift action against anyone who sexually harasses tenants,” said Eric Dreiband, Assistant Attorney General for Civil Rights. “Landlords, property owners, and others who prey on vulnerable tenants during the COVID-19 pandemic should be on notice. We will bring the full resources of the United States Department of Justice to the fight against sexual harassment in housing. We will defend the right of tenants and their families to live peacefully and securely in their homes without the added stress, pain, fear, and turmoil of dealing with sexual predators.”
The Justice Department’s Sexual Harassment in Housing Initiative is an effort to combat sexual harassment in housing led by the Civil Rights Division of the Department of Justice, in coordination with U.S. Attorney’s Offices across the country. The goal of the Initiative is to address sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
Launched in 2017, the Initiative has filed 14 lawsuits alleging a pattern or practice of sexual harassment in housing and recovered millions of dollars in damages for harassment victims. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades. Some victims do not know that being sexually harassed by a person in control of their housing can violate federal law.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act.The Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the Civil Rights Division by calling (844) 380-6178 or emailing [email protected].
Individuals who believe they may have been victims of discrimination may also file a complaint with the U.S. Attorney’s Office by filling out the Complaint Form, which can be found at https://www.justice.gov/usao-vt.
U.S. Attorney Announces Efforts to Combat Sexual Harassment in Housing During COVID-19 CrisisRead the Press Release
SAN FRANCISCO – Today U.S. Attorney David L. Anderson announced that the Department of Justice has devoted law enforcement resources to address housing-related sexual harassment resulting from the current COVID-19 crisis. The Department of Justice remains vigilant in investigating and prosecuting wrongdoing related to the pandemic, including sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing.
U.S. Attorney Anderson made the announcement to remind the public that sexual harassment in housing will not be tolerated and that the Department of Justice is focused on addressing this problem.
“Sexual misconduct in housing and rental situations can be just as pernicious as harassment in the workplace,” U.S. Attorney Anderson said. “Landlords and superintendents who try to capitalize on the current crisis by sexually harassing people in need of housing should know that reports of misconduct will be investigated and pursued.”
As the country adopts drastic measures to slow the spread of COVID-19, many Americans have lost their jobs and many more have seen their wages curtailed. These losses have forced many to seek abatements or suspensions of their rent. Many landlords have responded to these circumstances with understanding and care, trying to work with their tenants to weather the current crisis. There have been reports, however, of other landlords who have responded to requests to defer rent payments with demands for sexual favors and other acts of unwelcome sexual conduct. Such behavior is illegal.
The Department of Justice remains remaining vigilant in investigating and prosecuting wrongdoing related to the pandemic. To address predatory practices by unscrupulous landlords, Attorney General Barr directed Assistant Attorney General for Civil Rights, Eric Dreiband, and Christina Nolan, the U.S. Attorney for the District of Vermont to oversee and coordinate U.S. Attorneys’ Offices efforts to devote all necessary resources to investigate reports of housing-related sexual harassment resulting from the current crisis.
If you think you are a victim of sexual harassment by a landlord or any other person who has control over housing, resulting from the COVID-19 crisis, you can report that harassment to:
- Sexual Harassment in Housing Initiative at 1-844-380-6178
- Email: [email protected]
- Local authorities
For more information about the Department of Justice’s efforts to combat housing-related sexual harassment visit www.justice.gov/crt/sexual-harassment-housing-initiative or the Spanish language webpage: www.justice.gov/crt-espanol/iniciativa-en-contra-del-acoso-sexual-en-la-vivienda.
For more information regarding sexual harassment in housing and how to report it, please visit www.justice.gov/crt/page/file/1048341/download.
Two men, two businesses plead guilty to selling imported Native American-style goods and products in New Mexico in violation of federal Indian Arts and Crafts ActRead the Press Release
ALBUQUERQUE, N.M. – Jawad Khalaf, 72, of Albuquerque, New Mexico, Nashat Khalaf, 73, of Gallup, New Mexico, Sterling Islands, Inc., a wholesale jewelry business in Albuquerque, and Al-Zuni Global Jewelry, Inc., a wholesale jewelry business in Gallup, pleaded guilty in federal court in Albuquerque today to misrepresentation of Indian produced goods and services in an amount greater than $1000 as part of a scheme to import Native American-style jewelry from the Philippines and sell it to customers in the United States as authentic.
A grand jury previously returned an indictment on Dec. 19, 2018, charging these defendants and three other people with conspiracy, smuggling goods into the United States and misrepresentation of Indian produced goods and products. In pleading guilty, the defendants admitted that on Oct. 28, 2015, they displayed and offered for sale miniature canteens at Al-Zuni Global Jewelry in Gallup. These canteens were not actually Indian-produced but could have reasonably been mistaken for authentic Indian-produced canteens.
“These defendants endeavored to cheapen the cultural heritage of Native American artists by passing off imported trinkets as authentic Indian jewelry,” said U.S. Attorney John C. Anderson. “In so doing, they undermined confidence in New Mexico’s vibrant market for traditional Native artwork. The U.S. Attorney’s Office commends the U.S. Fish and Wildlife Service for leading the investigation of this important case and sending a clear message that federal law enforcement will hold those who exploit Indian cultures and traditions accountable for their offenses.”
“The protection of the rich culture, art and heritage of Native Americans is a priority for the U. S. Fish and Wildlife Service," said Edward Grace, Assistant Director of the Office of Law Enforcement. "These guilty pleas should serve as a notice to those individuals and businesses that are selling fraudulent Indian art and craftwork in order to further their illegal businesses. We will continue to vigorously investigate those who unlawfully counterfeit this work and steal Native American culture for their own ill-gotten gains. Thank you to our law enforcement partners at the federal, state, local, and tribal agencies that work with us to conserve, protect, and enhance this tradition for all future generations of Native Americans.”
“Tourism plays a vital role in New Mexico’s economy, and visitors need to have confidence when they take home a treasure from Indian Country that they have purchased authentic Indian art and craftwork,” said Meridith Stanton, Director of the Indian Arts and Crafts Board, U.S. Department of the Interior. The Board by statute is responsible for enforcement of the Indian Arts and Crafts Act, which includes criminal penalties for marketing counterfeit Indian art and craftwork, to protect the economic livelihoods of Indian artists and artisans. “The Board commends our colleagues at the Office of the U.S. Attorney for the District of New Mexico and the U.S. Fish and Wildlife Service’s Office of Law Enforcement for their extraordinary dedication, diligence, and commitment in working with us to combat the sale of counterfeit Indian art.”
“One of our nation’s most precious resources is the art and culture of its Native American tribes,” said James C. Langenberg, Special Agent in Charge of the FBI’s Albuquerque Field Office. “The FBI, which has been working closely with our Indian partners for more than a century, is committed to holding accountable those who would enrich themselves by cheating these communities out of their heritage.”
"Homeland Security Investigations is committed to ensuring that those who attempt to profit from selling merchandise misrepresented as Native American works are prosecuted to the fullest extent of the law,” said Erik P. Breitzke, Acting Special Agent in Charge of HSI El Paso. “In coordination with our law enforcement partners, HSI is resolved to protect the cultural heritage of Native American artists and communities in New Mexico.”
“Our state is so rich in its culture and art and these individuals exploited that beauty,” said Sonya K. Chavez, United States Marshal for the District of New Mexico. “This case is a reflection of how law enforcement agencies, at all levels, have collaboratively prioritized the preservation of our New Mexico Native assets.”
“The Department and our officers are proud to have been a part of this multi-jurisdictional prosecution in support of the diverse cultures found in New Mexico,” said Michael Sloane, Director of the New Mexico Department of Game and Fish. “This investigation is an example of the great work that comes from partnerships. We look forward to continued cooperation that benefits all New Mexicans.”
Jawad Khalaf and Nashat Khalaf face a sentence of up to 12 months in prison under the terms of their plea agreements. The corporate defendants, Sterling Islands, Inc. and Al-Zuni Global Jewelry, Inc., have agreed to serve five-year terms of probation. The defendants have also agreed to pay $300,000 to the Indian Arts and Crafts Board to “promote the economic development of Native Americans and Alaska Natives through the expansion of the Indian arts and crafts market.” The defendants have also agreed to forfeit $288,738.94 seized by investigators in October 2015.
Jawad Khalaf and Nashat Khalaf will remain out of custody pending sentencing. As part of the negotiated disposition of this case, the prosecution agreed to move to dismiss the pending charges against co-defendants, Nader Khalaf, 45, of Albuquerque, and Zaher Mostafa, 52, of Gallup. Another defendant, Taha Shawar, 49, of Breckenridge, Colorado, remains a fugitive.
The Office of Law Enforcement for the Southwest Region of the U.S. Fish and Wildlife Service led the investigation of this case with assistance from the Albuquerque Division of the FBI, Homeland Security Investigations, the Indian Arts and Crafts Board, the Drug Enforcement Administration, the U.S. Marshals Service, and the New Mexico Department of Game and Fish. Assistant U.S. Attorneys Jonathon M. Gerson, Sean J. Sullivan, Kristopher N. Houghton, and Stephen R. Kotz are prosecuting the case.
Two Methamphetamine Dealers Are Sentenced to Prison as Part of Ongoing Drug Trafficking Task Force InvestigationRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Andrew Murray announced today that an ongoing multi-agency drug trafficking task force investigation has resulted in lengthy prison sentences for two methamphetamine traffickers.
U.S. District Judge Kenneth D. Bell sentenced Ashley Dawn Walker, 33, of Lansing, N.C., to 120 months in prison and five years of supervised release. Cody Ryan Oakes, 31, of Boone, N.C., was also sentenced to 120 months in prison and five years of supervised release.
U.S. Attorney Murray is joined in making today’s announcement by Vincent C. Pallozzi, Special Agent in Charge of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Charlotte Field Division; Ronnie Martinez, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Charlotte; Robert Schurmeier, Director of the North Carolina State Bureau of Investigation; Sheriff B. Phil Howell of the Ashe County Sheriff’s Office; Sheriff Len D. Hagaman, Jr. of the Watauga County Sheriff’s Office; and Chief Dana Crawford of the Boone Police Department.
According to filed court documents and today’s sentencing hearing, from 2018 until July 2019, Walker was a member of a drug conspiracy trafficking methamphetamine in Ashe County. In addition to trafficking methamphetamine, Walker previously admitted that, on two occasions, she and her co-conspirators participated in drug-related robberies of competitor drug dealers. On December 17, 2019, Walker pleaded guilty to conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine.
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In Oakes’ case, court records show that Oakes conspired with Jared Pardue, who during the relevant time period was incarcerated in Georgia, to buy methamphetamine from Pardue’s supply source in Georgia. Oakes then transported the methamphetamine back to Western North Carolina and sold to it to local dealers. According to court records, from January 2019 to June 2019, Oakes trafficked approximately 3.5 kilograms of methamphetamine from Georgia to Watauga County and elsewhere. Oakes pleaded guilty on November 5, 2019, to conspiracy to distribute and to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. Pardue has pleaded guilty to federal drug trafficking charges for his role in the conspiracy and is currently awaiting sentencing.
Both defendants are currently in federal custody. Federal sentences are served without the possibility of parole.
The two defendants were prosecuted as part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) investigation. According to court documents, since 2015, more than 200 individuals have been prosecuted, and more than 100 pounds of methamphetamine, $1,000,000 in cash, and 60 firearms have been seized, as a result of the investigation.
In making today’s announcement, U.S. Attorney Murray thanked all of the law enforcement agencies involved for their outstanding investigative work.
Assistant U.S. Attorney Steven R. Kaufman is prosecuting both cases.
Two Montana Residents Indicted on Federal Drug and Gun ChargesRead the Press Release
United States Attorney Mark A. Klaassen announced today that Neoal Guyeal Hayes, age 45, was arrested on March 27, 2020 after being indicted by a federal grand jury on charges of possession with intent to distribute methamphetamine, heroin, cocaine, and Alprazolam. He was also charged with possession of a firearm in furtherance of a drug trafficking crime and as a felon in possession of a firearm. Hayes’ co-defendant, Iesha Monique Dembo, age 28, was arrested on March 23, 2020 for possession with intent to distribute methamphetamine, heroin, cocaine, and Alprazolam.
The indictment alleges Hayes and Dembo had been traveling together between Montana and Colorado via I-25 and were stopped for speeding in Wyoming. The ensuing investigation uncovered a large quantity of methamphetamine, heroin, cocaine, and a loaded handgun in the vehicle.
“We continue to see our highways used as conduits for drug trafficking,” said U.S. Attorney Mark Klaassen. “I appreciate the vigilance of our law enforcement partners to identify and intercept those who may be involved in this activity.”
Hayes was arraigned in federal court on April 30, 2020 before Chief Magistrate Kelly H. Rankin and pleaded not guilty. His trial date has yet to be set and Hayes was remanded to the custody of the U.S. Marshals Service. Dembo made her initial appearance on March 23, 2020 and pleaded not guilty with a trial date set for May 26, 2020.
The U.S Drug Enforcement Administration (DEA) Task Force in Cheyenne, with representatives from the Cheyenne Police Department’s Community Action Team (CAT) and the Laramie County Sheriff’s Office, is conducting this ongoing investigation with the DEA in Denver, Colorado and the DEA in Montana.
An indictment is merely a charge and not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.
Seven-Time Convicted Felon Sentenced to Fifteen Years in Federal Prison for Possessing A FirearmRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Terrell Javon Jones (28, Jacksonville) to 15 years in federal prison for possessing a firearm as a convicted felon. Jones had pleaded guilty on November 15, 2018.
According to court documents, on June 12, 2018, at about 11:20 p.m., a team of five officers from the Jacksonville Sheriff’s Office were working in the 800 block of Edgewood Avenue in Jacksonville. One of the officers observed Jones drive into the parking lot of a gas station, park his vehicle, and exit the car with a firearm in his hand. Jones then threw the gun on the back seat of the car and went over to talk to another person who was sitting in a nearby parked car.
Additional officers arrived on the scene and Jones was detained. The officers observed the gun on the backseat of the car and seized it. The gun was later determined to be a loaded Smith and Wesson .40 caliber pistol.
At the time of his arrest, Jones had six prior felony convictions for distribution of cocaine and one for possession of cocaine. As a previously convicted felon, he is prohibited from possessing a firearm or ammunition under federal law.
This case was investigated by the Jacksonville Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
San Diego Psychiatrist Pays $145,000 to Resolve Opioid Overprescribing InvestigationRead the Press Release
NEWS RELEASE SUMMARY – April 30, 2020
SAN DIEGO – San Diego area psychiatrist Prakash Bhatia, M.D., has paid $145,000 to resolve allegations that he overprescribed opioids. Dr. Bhatia previously owned and operated Progressive Health and Wellness in El Cajon, California, practicing pain medicine.
The settlement stems from an investigation that the Drug Enforcement Administration initiated into whether Dr. Bhatia improperly prescribed opioids to his patients at Progressive Health and Wellness (PHW) in violation of the civil provisions of the Controlled Substances Act.
Pursuant to the Controlled Substances Act, health care providers may write prescriptions for opioids only for a legitimate medical purpose while acting in the usual course of their professional practice. Based on its investigation, the United States alleged that from March 2013 to December 2017, Dr. Bhatia wrote opioid prescriptions at PHW, including for hydromorphone, morphine, methadone, oxycodone, fentanyl and oxymorphone without a legitimate medical purpose and/or outside the usual course of his professional practice, in violation of the Controlled Substances Act. The United States alleged that Dr. Bhatia also prescribed these medications in combination with depressant medications (including benzodiazepines and muscle relaxants), which are known to increase the risk of abuse, addiction and overdose.
While the Department of Justice continues to aggressively investigate prescribers who brazenly seek to make money by writing opioid prescriptions to those who have no pain, this investigation exemplifies the Department’s willingness to scrutinize whether doctors treating patients who actually suffer painful conditions are nevertheless overprescribing opioids. Health care providers treating patients who suffer from pain must still only prescribe opioids in accordance with recognized and accepted medical standards.
Indeed, public health experts have, for over a decade, been increasingly warning health care providers that overdose risk is elevated in patients receiving medically prescribed opioids, particularly those receiving high dosages. As such, leading medical organizations, and domestic and international government agencies recommend health care providers carefully track the potency of opioids prescribed to patients by noting the Morphine Milligram Equivalent (MME, also commonly referred to as Morphine Equivalent Dose or MED) of prescribed opioids. Among other things, tracking MMEs advances better practices for pain management by reinforcing the need for providers to consider alternatives to using high-dosage opioids to treat pain, and to appropriately justify decisions to use opioids at dosages that place patients at high risk of addiction, abuse, and overdose. Furthermore, prescribing high dosages increases the risk that patients will divert opioids to people who were not prescribed them.
“Overprescribing opioids to patients who need treatment for their pain has contributed to the opioid epidemic in this country,” said U.S. Attorney Robert Brewer. “This office is committed to utilizing all available tools to combat this epidemic, including civil prosecution under the Controlled Substances Act. As this settlement demonstrates, my office will continue to investigate health care providers for overprescribing opioids.” Brewer thanked prosecutors Dylan M. Aste and George V. Manahan and DEA agents for working hard to protect the public from opioid abuse.
“The DEA is committed to investigating health care providers to ensure they are dispensing opioid pain medications in compliance with the Controlled Substances Act,” said DEA Special Agent in Charge John W. Callery. “By holding the medical community accountable for improperly writing opioid prescriptions, the DEA is ensuring that San Diegans are safe from illicit prescribers who enable the abuse of prescription drugs for financial benefit.”
To report a tip directly to a DEA representative regarding medical personnel writing suspicious opioid prescriptions and pharmacies dispensing large amounts of opioids, call (571) 324-6499, or visit the DEA’s website (https://www.deadiversion.usdoj.gov/) and click on “Report Illicit Pharmaceutical Activities.”
This matter was handled by Assistant U.S. Attorneys Dylan M. Aste and George V. Manahan of the U.S. Attorney’s Office for the Southern District of California, with the assistance of agents and investigators from the DEA.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Salvadoran National Sentenced for Illegal Reentry After DeportationRead the Press Release
BOSTON – A Salvadoran national, who previously resided in East Boston, was sentenced yesterday for illegally reentering the United States after being deported.
David Sanchez Murcia, 38, was sentenced by U.S. District Court Judge Patti B. Saris to time-served (approximately 18 months in prison) and one year of supervised release. Sanchez Murcia will be placed into removal proceedings. In January 2020, Sanchez Murcia pleaded guilty to unlawful reentry of a deported alien.
In 2018, immigration authorities learned that Sanchez Murcia, who was illegally present in the United States, was arrested and charged in Suffolk County with rape of a child in November 2017. Sanchez Murcia posted bail on the rape charge and was released; ICE was not contacted. In 2018, ICE encountered Sanchez Murcia, placed him into removal proceedings, and on June 6, 2018, he was deported to El Salvador.
Sometime after his 2018 removal, Sanchez Murcia illegally returned to the United States and was rearrested on the open child rape charges and held on bail. ICE learned of his return and in July 2019, Sanchez Murcia was charged federally with illegal reentry. Sanchez Murcia went to trial on the rape charge in February 2020, which resulted in a mistrial. On April 17, 2020, Sanchez Murcia was released on the rape charges on personal recognizance, and was immediately taken into federal custody. On April 29, 2020, the state dismissed its case.
United States Attorney Andrew E. Lelling and Todd Lyons, Acting Field Office Director, U.S. Immigration and Customs Enforcement, Enforcement and Removal Operations (ERO), New England Field Office made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.
Realtor Sentenced for Her Role in Mortgage Fraud ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy Jr. announced today that Tina Brown, 45, of Bronx, NY, who was convicted of conspiracy to commit wire fraud affecting a financial institution, was sentenced to six months home detention by Chief U.S. District Judge Frank P. Geraci, Jr. The defendant was also ordered to pay restitution totaling $220,042.17 to the U.S. Department of Housing and Urban Development and Citibank.
Assistant U.S. Attorneys Elizabeth Moellering and Kathleen A. Lynch, who handled the case, stated that between about June 2008 and February 2009, the defendant conspired with others to devise a scheme to commit mortgage fraud and obtain eight loans for unqualified borrowers for homes in the Bronx. As part of the scheme, Brown used a relative to purchase a property located at 4087 Edson Avenue in the Bronx. The defendant falsely verified that the purchaser worked for her own company in order fraudulently to inflate the purchaser’s income so that she would qualify for a mortgage for that property. Brown knew that these false loan documents were submitted to The Funding Source, a mortgage bank, in order to secure a loan insured by the Federal Housing Administration. Based on that false application and supporting documentation, the loan was approved. The Funding Source sold the loan on the secondary market to M &T Bank, which wired funds from New York through the State of Ohio to purchase the loan.
The defendant and her co-conspirators arranged for additional fraudulent loans to be approved. These fraudulent transactions caused losses of approximately $244,000 to M&T Bank, Citibank, and the U.S. Department of Housing and Urban Development.
Four co-defendants were previously convicted and sentenced: Gregory Gibbons, a mortgage broker, was sentenced to time served; Laurence Savedoff, an attorney, was sentenced to serve four months in prison; Julio Rodriguez, an appraiser, was sentenced to serve six months in prison; and Daniel Badu, a borrower, was sentenced to time served. Defendant Alagi Samba has been convicted and is awaiting sentencing.
The sentencing is the result of an investigation by the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Joseph W. Cronin, Boston Division, the Department of Housing and Urban Development, under the direction of Special Agent in Charge Brad Geary, and the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Gary Loeffert.
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Project Safe Neighborhoods Grant AnnouncementRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/LAKE CHARLES/MONROE, La. – United States Attorney David C. Joseph and the Project Safe Neighborhoods (PSN) Task Force announced the availability of approximately $158,043 in PSN grant funds for the Western District of Louisiana. The Department of Justice, the Office of Justice Programs and the Bureau of Justice Assistance is seeking applications for funding of a grant under the Project Safe Neighborhoods (PSN) Program. At least 30% ($47,413) of the grant funds must be designated for grants under the PSN Program to fund new and/or current gang violence reduction strategies in the Western District. In addition, approximately $94,826 can be designated to fund both new and/or current comprehensive gun crime and gang violence reduction strategies within the Western District.
PSN furthers the Department of Justice=s mission to reduce violent crime by providing support to state, local and tribal efforts to create safer neighborhoods through a sustained reduction in violent crime and gang violence committed with firearms utilizing prevention, enforcement and intervention methods.
Various types of single or multi‑grantee grant proposals are welcome including those that address the following:
- Gang violence and gun violence reduction, deterrence, prevention, community outreach and education;
- Enforcement, adjudication and supervision programs;
- Prisoner re-entry programs; or
- Other innovative related projects.
Grant proposals must be submitted to the U.S. Attorney’s Office, ATTN: PSN Grant Competition, 800 Lafayette Street, Suite 2200, Lafayette, LA 70501, no later than 5 p.m. on Monday, June 1, 2020.
The FY 2019 PSN Grant Announcement, OMB No. 1121-0329 can be found on the Western District of Louisiana U.S. Attorney’s Office website at: www.justice.gov/usao-wdla. More information about the program can be located at www.psn.gov or www.bja.gov/programs/psn.
Interested applicants may also contact Assistant U.S. Attorney and PSN Coordinator Jamilla A. Bynog at (337) 262-6618 for additional information.
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Owensboro Doctor Faces Federal Civil False Claims AllegationsRead the Press Release
LOUISVILLE, Ky. – Owensboro Dr. Kishor N. Vora faces civil False Claims Act allegations for executing an elaborate and extensive scheme to maximize profits at the expense of both patients and Medicare, announced United States Attorney Russell Coleman.
“I know from personal experience that Owensboro is served by a community of dedicated and talented medical practitioners whose sole focus is that of their patients’ care and well-being,” said U.S. Attorney Russell Coleman. “What will not be tolerated by the United States Attorney’s Office, however, is when that motivation shifts to a physician’s misuse of patients as a tool for financial gain in violation of federal law.”
According to the complaint, Vora knowingly and willfully accepted illegal kickbacks from a laboratory, National Molecular Testing Corporation (NMTC), in exchange for sending Medicare-reimbursed orders for pharmacogenomics testing (tests that show how genes affect a person’s response to particular drugs). The complaint alleges that Vora also ordered and submitted medically unnecessary and unreasonable tests to NMTC in exchange for these illegal kickbacks.
From at least May 1, 2012 to March 31, 2013, Vora and Owensboro Medical Practice PLLC and Owensboro Heart and Vascular knowingly caused the submission of more than $3 million in false claims to Medicare by entering into financial arrangements with the laboratory related to the referral, furnishing and submissions of claims for pharmacogenomics testing; receiving illegal remuneration from the clinical laboratory in exchange for referrals, and causing to be billed to Medicare claims for testing that were not medically necessary.
The United States specifically alleges that the defendants caused false claims to be presented for payment to government health care programs; submitted false statements material to these claims; and conspired with others to present false claims for payment. If found liable for violations of the False Claims Act, the defendants would be responsible for three times the damages to government healthcare programs and civil penalties.
The matter is being handled by Assistant United States Attorney Jessica R. C. Malloy with assistance from Cristal Fox, Phil Bezehertny, and Melissa Reynolds. The investigation is being conducted by the Department of Health and Human Services’ Office of the Inspector General.
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New Jersey Man Admits to Cyberstalking, Receipt of Child PornographyRead the Press Release
PROVIDENCE – A New Jersey man today admitted to befriending four minor females on social media, three of them in Rhode Island, and persuading them to send sexually explicit photographs of themselves to him.
Pritkumar Tarunkumar Patel, 23, of Closter, NJ, also admitted that he stalked some of the girls via social media and text messages, and threatened to share the photographs on social media with their classmates and others if they didn’t continue to communicate with him.
According to court documents, Patel befriended the girls on various social media platforms and persuaded them to send sexually explicit photographs of themselves to him. Patel admitted to the court that he sent sexually explicit photographs of himself to the girls and, in at least one instance, communicated in much the same way via a live video chat.
In pleading guilty in U.S. District Court in Providence to charges of cyberstalking and receipt of child pornography, Patel admitted to the court that he threatened and harassed the girls on social media, by text messaging, and /or by calling them, repeatedly demanding that, after breaking off communications with him, that they resume communicating with him and unblock his access to their social media accounts. Patel admitted that he threatened to post the sexually explicit photos of them online and that he would share them with their friends, classmates, and family members. He also threatened to create Instagram accounts in the girls’ names and use those accounts to post the pictures online.
On at least one occasion he followed through on his threats by posting a sexually explicit picture of one of the girls, a 13-year-old girl from Indiana, on an Instagram account he created using her name.
The investigation into Patel’s criminal activity began when the family of one of the girls brought the matter to the attention of the Hopkinton, R.I., Police Department.
Patel is scheduled to be sentenced by U.S. District Court Judge Mary S. McElroy on July 30, 2020. A plea agreement filed in this matter jointly recommends that the Court impose a term of incarceration of 84 months in federal prison.
The case is being prosecuted by Assistant United States Attorney Lee H. Vilker.
United States Attorney Aaron L. Weisman acknowledges and commends the Hopkinton Police Department for their investigative efforts that ultimately led to the identity and arrest of Patel.
The matter was investigated by the Hopkinton Police Department, Rhode Island State Police, New Jersey State Police, and Homeland Security Investigations.
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Missoula woman sentenced to prison in meth conspiracyRead the Press Release
MISSOULA—A Missoula woman who admitted her role in a methamphetamine distribution conspiracy was sentenced today to 46 months in prison to be followed by five years of supervised release, U.S. Attorney Kurt Alme said.
Crystal Marie Buhler, 35, pleaded guilty in January to conspiracy to distribute meth.
U.S. District Judge Donald M. Molloy presided.
In court documents filed in the case, the prosecution said Buhler distributed drugs in the Missoula area from the spring of 2018 through June 2019. Witnesses told law enforcement that Buhler, along with a co-defendant, bought heroin from California with money obtained from the co-defendant's meth distribution. Buhler had heroin shipped to her residence for distribution.
Assistant U.S. Attorney Tara Elliott prosecuted the case, which was investigated by the FBI and the Montana Regional Violent Crime Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. According to the FBI’s Uniform Crime Reports, violent crime in Montana increased by 36% from 2013 to 2018. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Mexican Citizen Charged with Possession with Intent to Distribute 20 Kilos of CocaineRead the Press Release
Knoxville, Tenn. – Luis Daniel Hernandez Mendoza, 31, a citizen of Mexico, has been charged in a criminal complaint, which is supported by an affidavit, in case number 3:20-MJ 2110, with possession with intent to distribute 20 kilos of cocaine. An initial appearance is scheduled for Friday, May 1, at 2:00 p.m., in United States District Court in Knoxville, before the Honorable H. Bruce Guyton, United States Magistrate Judge.
In summary, the affidavit alleges that the Tennessee Highway Patrol stopped Hernandez-Mendoza for a traffic violation. Hernandez-Mendoza consented to a vehicle search. During the search of the vehicle, agents from the Tennessee Highway Patrol and DEA found twenty kilograms of cocaine concealed in a trap compartment in the vehicle.
The case is being investigated by the Drug Enforcement Administration, and the Tennessee Highway Patrol. Assistant U. S. Attorney Cynthia Davidson represents the United States.
If convicted, Hernandez-Mendoza faces a term of imprisonment of not less than 10 years and up to life. The public is reminded that all persons accused of a crime are presumed innocent until proven guilty beyond a reasonable doubt.
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McDowell County Man Is Sentenced to More Than 12 Years in Federal Prison for Drug TraffickingRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced Mitchell Gilliland, 30, of Nebo, N.C., today to 148 months in prison, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. Judge Reidinger also ordered Gilliland to serve five years under court supervision.
Joining U.S. Attorney Murray in making today’s announcement are Ronnie Martinez, Special Agent in Charge of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in North Carolina; Sheriff Ricky Buchanan of the McDowell County Sheriff’s Office; and Police Chief Allen Lawrence of the Marion Police Department.
According to filed court documents and today’s sentencing hearing, on the evening of May 9, 2019, an officer with the Marion Police Department conducted a traffic stop of the vehicle Gilliland was driving for driving over the speed limit and other traffic violations. Over the course of the traffic stop, law enforcement conducted a search of Gilliland’s vehicle, and recovered a half pound of methamphetamine, a loaded firearm, and more than $34,000 in drug proceeds. Gilliland has multiple prior felony convictions and he is prohibited from possessing a firearm or ammunition.
On October 22, 2019, Gilliland pleaded guilty to possession with the intent to distribute methamphetamine. He is currently in fedaral custody. All federal sentences are served without the possibility of parole.
The investigation was handled by the HSI, the McDowell County Sheriff’s Office, and the Marion Police Department.
Assistant U.S. Attorney Thomas Kent of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Massachusetts Man Charged with Orchestrating Ponzi Scheme, Defrauding Clients of More than $10 MillionRead the Press Release
PHILADELPHIA – United States Attorney William M. McSwain announced that Lee D. Weiss, 51, of Newton, Massachusetts, was charged by Information with six counts of wire fraud and two counts of mail fraud. The charges stem from Weiss’s multi-year investment scam that targeted his own clients and caused investor losses of more than $10 million.
The Information alleges that Weiss, the principal of Family Endowment Partners, LP, an investment adviser registered with the U.S. Securities and Exchange Commission, fleeced his own clients of millions of dollars through purported investments in a now defunct Florida tobacco company and a series of private securities offerings. Weiss allegedly told his clients that their money would be used for investment purposes when, in fact, he diverted it to make Ponzi payments and to fund his lifestyle. Weiss then told his clients that they were making money when their funds had already been misappropriated. As alleged, he continued to lie to them about the value of their investments to prevent them from learning of his thefts and to convince them to continue paying him fees for “managing” their money. Weiss allegedly defrauded his investors of millions of dollars. He misspent his clients’ investment funds on himself, payments to prior investors, and to prop up his other unrelated businesses.
“Honesty, integrity, and trust all play a critical role in the relationship between a financial advisor and a client, and any advisor who deliberately betrays their clients’ trust for their own financial gain turns the system on its head,” said U.S. Attorney McSwain. “The damage done by such corrupt financial advisors can be catastrophic. We will continue to hold those who commit crimes like the ones alleged here accountable for their misdeeds.”
“Lee Weiss lived lavishly on his clients’ money, funds they’d expected him to invest responsibly,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “For years, he misrepresented his actions, leading to millions and millions in losses as he worked to keep his Ponzi scheme afloat. Simply stated, this case is about greed and the serious abuse of trust. The FBI is determined to hold accountable financial fraudsters like this, to find a measure of justice for their victims and prevent anyone else from being fleeced.”
“The Postal Inspection has a long history investigating investment frauds as the fraudsters often rely upon the mail to execute their schemes,” said Inspector Wood. “The defendant, Lee Weiss, took advantage of clients who trusted him to manage their wealth in what he promised were safe, blue chip investment strategies. Through a web of corporate entities, Mr. Weiss hid the reality of his investment strategy and took his client’s money to cover his own losses. Thanks to hard work of our Inspectors, the agents of the FBI, and prosecutors at the United States Attorney’s Office, Mr. Weiss is being held accountable for his deceitful practices.”
If convicted, the defendant faces a maximum possible sentence of 160 years’ imprisonment, a $2 million fine, 3 years’ supervised release, an $800 special assessment, mandatory restitution, and forfeiture.
The case was investigated by the Federal Bureau of Investigation and the U.S. Postal Inspection Service, and is being prosecuted by Assistant United States Attorneys Paul Shapiro and Michael J. Rinaldi. The U.S. Attorney’s Office appreciates the substantial assistance of the U.S. Securities and Exchange Commission in this matter.
An Indictment, Information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Leading Cancer Treatment Center Admits to Antitrust Crime and Agrees to Pay $100 Million Criminal PenaltyRead the Press Release
Florida Cancer Specialists & Research Institute LLC (FCS), an oncology group headquartered in Fort Myers, Florida, was charged with conspiring to allocate medical and radiation oncology treatments for cancer patients in Southwest Florida, the Department of Justice announced. This charge is the first in the department’s ongoing investigation into market allocation in the oncology industry.
According to a one-count felony charge filed today in the U.S. District Court in Fort Myers, Florida, FCS participated in a criminal antitrust conspiracy with a competing oncology group in Collier, Lee, and Charlotte counties (Southwest Florida). FCS and its co-conspirators agreed not to compete to provide chemotherapy and radiation treatments to cancer patients in Southwest Florida. Beginning as early as 1999 and continuing until at least 2016, FCS entered into an illegal agreement that allocated chemotherapy treatments to FCS and radiation treatments to a competing oncology group. This conspiracy allowed FCS to operate with minimal competition in Southwest Florida and limited valuable integrated care options and choices for cancer patients.
The Antitrust Division also announced a deferred prosecution agreement (DPA) resolving the charge against FCS, under which the company admitted to conspiring to allocate chemotherapy and radiation treatments for cancer patients. FCS has agreed to pay a $100 million criminal penalty —the statutory maximum— and to cooperate fully with the Antitrust Division’s ongoing investigation. FCS has also agreed to maintain an effective compliance program designed to prevent and detect criminal antitrust violations.
“Today’s resolution, with one of the largest independent oncology groups in the United States, is a significant step toward ensuring that cancer patients in Southwest Florida are afforded the benefits of competition for life-saving treatments,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “For almost two decades, FCS and its co-conspirators agreed to cheat by limiting treatment options available to cancer patients in order to line their pockets. The Antitrust Division is continuing its investigation to ensure that all responsible participants are held accountable to the maximum extent possible.”
“The FBI has no tolerance for medical providers who stand to profit by criminally exploiting cancer patients,” said Michael McPherson, Special Agent in Charge of the FBI’s Tampa Field Office. “We will not turn a blind eye while executives pad their pockets to the detriment of vulnerable Americans. We will use every tool at our disposal to ensure that the public has access to a competitive marketplace for healthcare.”
Additionally, the agreement includes a non-compete waiver aimed at increasing competition in the treatment of cancer patients in Southwest Florida. Under the agreement’s terms, FCS has agreed not to enforce any non-compete provisions with its current or former oncologists or other employees who, during the term of the DPA, open or join an oncology practice in Southwest Florida.
This charge is the result of an ongoing federal antitrust investigation into market allocation and other anticompetitive conduct in the oncology industry, which is being conducted by the Antitrust Division and the FBI’s Tampa Field Office – Fort Myers RA.
The Florida Office of the Attorney General separately announced today that, in connection with its own independent investigation, FCS agreed to settle civil claims that it violated Florida antitrust laws.
Anyone with information on market allocation, price fixing, bid rigging, or other anticompetitive conduct in the health care or any other industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html. If you believe that you were a victim of this crime, please visit http://www.justice.gov/atr/victims-rights.
Israel’s Largest Bank, Bank Hapoalim, Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Jeffrey A. Rosen, the Deputy Attorney General of the United States, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Don Fort, the Chief of the Internal Revenue Service, Criminal Investigation (IRS-CI), announced today the guilty plea of Bank Hapoalim (Switzerland) Ltd. and filing of criminal charges against Bank Hapoalim B.M. for conspiring with U.S. taxpayers and others to hide more than $7.6 billion in more than 5,500 secret Swiss and Israeli bank accounts and the income generated in these accounts from the Internal Revenue Service (the IRS). BHS’s Chief Executive Officer appeared on behalf of the bank to enter the guilty plea before U.S. District Judge Mary Kay Vyskocil.
As part of today’s resolutions, along with resolutions entered into with state and federal partners, Bank Hapoalim B.M. (BHBM), Israel’s largest bank, and Bank Hapoalim (Switzerland) Ltd. (BHS), its Swiss subsidiary, agreed to pay approximately $874.27 million to the U.S. Treasury, the Federal Reserve, and the New York State Department of Financial Services. Today’s resolution is the second-largest recovery by the Department of Justice in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks.
“Today’s resolutions and payment of $874 million make clear that tax evasion cannot be taken lightly,” said Deputy Attorney General Jeffrey A. Rosen. “A fair tax system requires even-handed compliance, and honest conduct by all participants in the system.”
“The Department of Justice continues to aggressively prosecute banks and other financial institutions that help U.S. taxpayers conceal their income and assets in offshore bank accounts,” said Principal Deputy Assistant Attorney General Richard E. Zuckerman. “Today, Bank Hapoalim is being held accountable for its conduct – it has admitted to its crimes and will surrender all fees it earned, repay the United States for lost tax revenue, and pay a substantial fine.”
“Israel’s largest bank, Bank Hapoalim, and its Swiss subsidiary have admitted not only failing to prevent but actively assisting U.S. customers to set up secret accounts, to shelter assets and income, and to evade taxes,” said U.S. Attorney Geoffrey S. Berman of the Southern District of New York. “The combined payment approaching $1 billion reflects the magnitude of the tax evasion by the Bank’s U.S. customers, the size of the fees the Bank collected to provide this illegal service, and the gravity of the illegal conduct.”
“There is no excuse for a foreign financial institution to unlawfully assist wealthy Americans in flouting their responsibilities to pay their taxes,” said IRS Criminal Investigation Chief Don Fort. “With today’s guilty plea, Bank Hapoalim is taking responsibility for their role in deliberately breaking the law and undermining the integrity of this nation’s tax system. Offshore tax evasion is a top priority for IRS Criminal Investigation and we are wholeheartedly committed to bringing offenders to justice. Today’s resolution serves as proof that financial institutions engaging in tax fraud face dire criminal and financial consequences for their behavior.”
“The vast majority of New Yorkers follow the rules and pay their taxes, thereby contributing their fair share towards critical state and federal government operations and public services,” said Superintendent Linda A. Lacewell of New York State Department of Financial Services. “There are some, however, who went to great lengths to avoid paying their share, and Bank Hapoalim offered a whole array of services to U.S. citizens, including New Yorkers, that knowingly facilitated their tax evasion. DFS will not tolerate such behavior from banks that operate in the State of New York. DFS thanks our federal partners at the U.S. Department of Justice, U.S. Department of the Treasury, and the Federal Reserve Board for their assistance and coordination during this investigation.”
Today’s resolutions include agreements with BHBM and BHS (collectively, the “Bank”) under which the Bank agreed to accept responsibility for its conduct by stipulating to the accuracy of extensive Statements of Facts. BHBM further agreed to refrain from all future criminal conduct, implement remedial measures, and cooperate fully with further investigations into hidden bank accounts. Assuming BHBM’s continued compliance with its agreement, the Government has agreed to defer prosecution of BHBM for a period of three years, after which time the Government will seek to dismiss the charge against BHBM.
According to documents filed today in Manhattan federal court:
BHBM is Israel’s largest bank and operates primarily as a retail bank with approximately 250 branches throughout Israel and more than 2.5 million accounts. In addition to retail banking services, BHBM offered private banking services for onshore and offshore customers through its retail branches and its Global Private Banking Center. BHBM also wholly owned Poalim Trust Services Ltd., which provided trust formation and management services. Outside Israel, BHBM owned BHS, a Swiss subsidiary that provided private banking. BHS is headquartered in Zurich and at times during the prosecution period had branches in Geneva, Luxembourg, and Singapore. BHBM also had branches in New York, Miami, the Cayman Islands, the United Kingdom, and Jersey.
From at least in or about 2002, and continuing until at least in or about 2014, the Bank conspired with employees, U.S. customers, and others to: (1) defraud the United States with respect to taxes; (2) file false federal tax returns; and (3) commit tax evasion. Employees of BHBM and BHS assisted U.S. customers in concealing their ownership and control of assets and funds held at the Bank, which enabled those U.S. customers to evade their U.S. tax obligations, by engaging in the following conduct:
- Assisting U.S. customers with opening and maintaining accounts in the names of pseudonyms, code names, trust accounts, and offshore nominee entities;
- Opening customer accounts for known U.S. customers using non-U.S. forms of identification;
- Enabling U.S. taxpayers to evade U.S reporting requirements on securities’ earnings in violation of the Bank’s agreements with the IRS;
- Providing “hold mail” services for a fee, avoiding any correspondence regarding the undeclared account being sent to the U.S.;
- Offering back-to-back loans for U.S. taxpayers to enable them to access funds in the United States that were held in offshore accounts at the Bank in Switzerland and Israel; and
- Processing wire transfers or issuing checks in amounts of less than $10,000 that were drawn on the accounts of U.S. taxpayers or entities in order to avoid triggering scrutiny.
At least four senior executives of the Bank, including two former members of BHS’s board of directors, were directly involved in aiding and abetting tax evasion of U.S. taxpayers.
Under today’s resolutions, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Department of Justice’s Swiss Bank Program relating to accounts closed between Jan. 1, 2009, and Dec. 31, 2019. The agreements provide no protection from criminal or civil prosecution for any individuals.
BHBM will pay a total of $214.38 million, which has three parts. First, BHBM has agreed to pay $77,877,099 in restitution to the IRS, which represents the unpaid taxes resulting from BHBM’s participation in the conspiracy. Second, BHBM has agreed to forfeit $35,696,929 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2002 and 2014. Finally, BHBM has agreed to pay a penalty of $100,811,585.
BHS will pay a total of $402.53 million, which also has three parts. First, BHS has agreed to pay $138,908,073 in restitution to the IRS, which represents the unpaid taxes resulting from BHS’s participation in the conspiracy. Second, BHS has agreed to forfeit $124,628,449 in gross fees to the United States. Finally, BHS has agreed to pay a fine of $138,998,399. These payments were approved by Judge Vyskocil today in connection with BHS’s plea and sentencing.
Both the penalty and fine amounts take into consideration that the Bank, after initially providing deficient cooperation through an inadequate internal investigation and the provision of incomplete and inaccurate information and data to the Government, thereafter conducted a thorough internal investigation, provided client-identifying information, and cooperated in ongoing investigations and prosecutions. The Bank further implemented remedial measures to protect against the use of its services for tax evasion in the future.
The Board of Governors of the Federal Reserve System is also announcing today that it has reached a resolution with BHBM, by which BHBM has agreed to a consent order, certain remedial steps to ensure its compliance with U.S. law in its ongoing operations, and a civil monetary penalty of $37.35 million. Additionally, the New York State Department of Financial Services is announcing a similar resolution by which BHBM has agreed to a cease and desist order and a monetary penalty of $220 million.
This agreement marks the third time an Israeli bank has admitted to similar criminal conduct. The Bank Leumi Group (in December 2014) and Mizrahi-Tefahot Bank Ltd. (in March 2019) entered into DPAs with the Department of Justice admitting that they conspired with U.S. taxpayers to prepare and present false tax returns to the IRS by hiding income and assets in offshore bank accounts in Israel and elsewhere around the world.
Deputy Attorney General Rosen, Principal Deputy Assistant Attorney General Zuckerman, U.S. Attorney Berman, and Chief Fort commended special agents of IRS-Criminal Investigation, who investigated this case, and Assistant Chief Todd A. Ellinwood and Senior Litigation Counsel Nanette Davis of the Tax Division, and Assistant U.S. Attorneys Sagar K. Ravi and Timothy V. Capozzi of the United States Attorney’s Office for the Southern District of New York, who prosecuted this case. Principal Deputy Assistant Attorney General Zuckerman also thanked Assistant Chief Kathleen Barry and former Trial Attorney Timothy Russo of the Tax Division for their substantial assistance.
Israel’s Largest Bank, Bank Hapoalim, Admits to Conspiring with U.S. Taxpayers to Hide Assets and Income in Offshore AccountsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Jeffrey A. Rosen, the Deputy Attorney General of the United States, Richard E. Zuckerman, the Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, and Don Fort, the Chief of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the guilty plea of Bank Hapoalim (Switzerland) Ltd. and entry of criminal charges against Bank Hapoalim B.M. for conspiring with U.S. taxpayers and others to hide more than $7.6 billion in more than 5,500 secret Swiss and Israeli bank accounts and the income generated in these accounts from the Internal Revenue Service (the “IRS”).
As part of today’s resolutions, along with resolutions entered into with state and federal partners, Bank Hapoalim B.M. (“BHBM”), Israel’s largest bank, and its Swiss subsidiary Bank Hapoalim (Switzerland) Ltd. (“BHS”) (collectively, the “Bank”), agreed to pay approximately $874.27 million to the U.S. Treasury, the Federal Reserve, and the New York State Department of Financial Services. Today’s resolution is the second-largest recovery by the Department of Justice in connection with its investigations since 2008 into facilitation of offshore U.S. tax evasion by foreign banks. Officers of BHBM and BHS appeared on behalf of the Bank to enter the guilty plea before U.S. District Judge Mary Kay Vyskocil.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Israel’s largest bank, Bank Hapoalim, and its Swiss subsidiary have admitted not only failing to prevent but actively assisting U.S. customers to set up secret accounts, to shelter assets and income, and to evade taxes. The combined payment approaching $1 billion reflects the magnitude of the tax evasion by the Bank’s U.S. customers, the size of the fees the Bank collected to provide this illegal service, and the gravity of the illegal conduct.”
Deputy Attorney General Jeffrey A. Rosen said: “Today’s resolutions and payment of $874 million make clear that tax evasion cannot be taken lightly. A fair tax system requires even-handed compliance, and honest conduct by all participants in the system.”
Principal Deputy Assistant Attorney General Richard E. Zuckerman said: “The Department of Justice continues to aggressively prosecute banks and other financial institutions that help U.S. taxpayers conceal their income and assets in offshore bank accounts. Today, Bank Hapoalim is being held accountable for its conduct – it has admitted to its crimes and will surrender all fees it earned, repay the United States for lost tax revenue, and pay a substantial fine.”
IRS-CI Chief Don Fort said: “There is no excuse for a foreign financial institution to unlawfully assist wealthy Americans in flouting their responsibilities to pay their taxes. With today’s guilty plea, Bank Hapoalim is taking responsibility for their role in deliberately breaking the law and undermining the integrity of this nation’s tax system. Offshore tax evasion is a top priority for IRS Criminal Investigation and we are wholeheartedly committed to bringing offenders to justice. Today’s resolution serves as proof that financial institutions engaging in tax fraud face dire criminal and financial consequences for their behavior.”
Today’s resolutions include agreements with BHBM and BHS under which the Bank agreed to accept responsibility for its conduct by stipulating to the accuracy of extensive Statements of Facts. BHBM further agreed to refrain from all future criminal conduct, implement remedial measures, and cooperate fully with further investigations into hidden bank accounts. Assuming BHBM’s continued compliance with its agreement, the Government has agreed to defer prosecution of BHBM for a period of three years, after which time the Government will seek to dismiss the charge against BHBM.
According to documents filed today in Manhattan federal court:
BHBM is Israel’s largest bank and operates primarily as a retail bank with approximately 250 branches throughout Israel and more than 2.5 million accounts. In addition to retail banking services, BHBM offered private banking services for onshore and offshore customers through its retail branches and its Global Private Banking Center. BHBM also wholly owned Poalim Trust Services Ltd., which provided trust formation and management services. Outside Israel, BHBM owned BHS, a Swiss subsidiary that provided private banking. BHS is headquartered in Zurich and at times during the prosecution period had branches in Geneva, Luxembourg, and Singapore. BHBM also had branches in New York, Miami, the Cayman Islands, the United Kingdom, and Jersey.
From at least in or about 2002, and continuing until at least in or about 2014, the Bank conspired with employees, U.S. customers, and others to: (1) defraud the United States with respect to taxes; (2) file false federal tax returns; and (3) commit tax evasion. Employees of BHBM and BHS assisted U.S. customers in concealing their ownership and control of assets and funds held at the Bank, which enabled those U.S. customers to evade their U.S. tax obligations, by engaging in the following conduct:
· Assisting U.S. customers with opening and maintaining accounts in the names of pseudonyms, code names, trust accounts, and offshore nominee entities;
· Opening customer accounts for known U.S. customers using non-U.S. forms of identification;
· Enabling U.S. taxpayers to evade U.S reporting requirements on securities’ earnings in violation of the Bank’s agreements with the IRS;
· Providing “hold mail” services for a fee, avoiding any correspondence regarding the undeclared account being sent to the U.S.;
· Offering back-to-back loans for U.S. taxpayers to enable them to access funds in the United States that were held in offshore accounts at the Bank in Switzerland and Israel; and
· Processing wire transfers or issuing checks in amounts of less than $10,000 that were drawn on the accounts of U.S. taxpayers or entities in order to avoid triggering scrutiny.
At least four senior executives of the Bank, including two former members of BHS’s board of directors, were directly involved in aiding and abetting tax evasion of U.S. taxpayers.
Under today’s resolutions, the Bank is required to cooperate fully with ongoing investigations and affirmatively disclose any information it may later uncover regarding U.S.-related accounts. The Bank is also required to disclose information consistent with the Department of Justice’s Swiss Bank Program relating to accounts closed between Jan. 1, 2009, and Dec. 31, 2019. The agreements provide no protection from criminal or civil prosecution for any individuals.
BHBM will pay a total of $214.38 million, which has three parts. First, BHBM has agreed to pay $77,877,099 in restitution to the IRS, which represents the unpaid taxes resulting from BHBM’s participation in the conspiracy. Second, BHBM has agreed to forfeit $35,696,929 to the United States, which represents gross fees (not profits) that the bank earned on its undeclared accounts between 2002 and 2014. Finally, BHBM has agreed to pay a penalty of $100,811,585.
BHS will pay a total of $402.53 million, which also has three parts. First, BHS has agreed to pay $138,908,073 in restitution to the IRS, which represents the unpaid taxes resulting from BHS’s participation in the conspiracy. Second, BHS has agreed to forfeit $124,628,449 in gross fees to the United States. Finally, BHS has agreed to pay a fine of $138,998,399. These payments were approved by Judge Vyskocil today in connection with BHS’s plea and sentencing.
Both the penalty and fine amounts take into consideration that the Bank, after initially providing deficient cooperation through an inadequate internal investigation and the provision of incomplete and inaccurate information and data to the Government, thereafter conducted a thorough internal investigation, provided client-identifying information, and cooperated in ongoing investigations and prosecutions. The Bank further implemented remedial measures to protect against the use of its services for tax evasion in the future.
The Board of Governors of the Federal Reserve System is also announcing today that it has reached a resolution with BHBM, by which BHBM has agreed to a cease and desist order, certain remedial steps to ensure its compliance with U.S. law in its ongoing operations, and a civil monetary penalty of $37.35 million. Additionally, the New York State Department of Financial Services is announcing a similar resolution by which BHBM has agreed to a consent order and a monetary penalty of $220 million.
* * *
Mr. Berman praised the outstanding investigative work of the special agents of IRS-Criminal Investigation, and thanked the Justice Department’s Tax Division for their partnership on this case.
This prosecution is being handled by the Tax Division and the Complex Frauds and Cybercrime Unit of the United States Attorney’s Office for the Southern District of New York. Assistant Chief Todd A. Ellinwood and Senior Litigation Counsel Nanette Davis of the Tax Division, and Assistant U.S. Attorneys Sagar K. Ravi and Timothy V. Capozzi of the United States Attorney’s Office for the Southern District of New York, are in charge of the prosecution. Principal Deputy Assistant Attorney General Zuckerman also thanked Assistant Chief Kathleen Barry and former Trial Attorney Timothy Russo of the Tax Division for their substantial assistance.
Former Naturopath charged criminally for trafficking in misbranded drugs claiming they could prevent COVID-19Read the Press Release
Tacoma - A former Port Angeles, Washington, naturopathic physician was charged today with a federal felony related to his attempts to promote a misbranded drug as a prevention for COVID-19, announced U.S. Attorney Brian T. Moran. RICHARD MARSCHALL, 67, is scheduled to make his initial appearance via teleconference in U.S. District Court in Tacoma on May 12, 2020, on a charge of Introduction of Misbranded Drugs into Interstate Commerce.
“At a time when scientists are scrambling to identify COVID-19 treatments and vaccines, it is unconscionable and cruel to take people’s money for false hope and promises of a cure,” said U.S. Attorney Brian T. Moran. “This defendant knew better than to be peddling misbranded drugs. Fortunately, the community quickly notified law enforcement when they saw he had launched this scheme with a COVID-19 twist.”
According to the criminal complaint, on March 26, 2020, Food and Drug Administration criminal investigators began reviewing complaints from the public regarding postings on Facebook and a website linked to MARSCHALL that claimed the “Dynamic Duo” of substances could kill viruses, including the coronavirus. MARSCHALL billed himself as a “Health Coach” and retired naturopath. Various posts promote two substances that can “stop” coronavirus.
On March 30, 2020, an FDA investigator spoke to MARSCHALL on the telephone in an undercover capacity. MARSCHALL represented to the investigator that one of the substances “doesn’t boost the immune system, it just kills the virus.” MARSCHALL represented that the second substance would boost the production of white blood cells that attack infections. The undercover agent ultimately ordered the “Dynamic Duo” for $140 plus shipping.
The substances were received by FDA investigators in early April, along with documents. A review showed they were manufactured in facilities in Illinois and Texas. The original labeling for the substances does not claim to kill viruses, but still MARSCHALL included documents that stated the substances can “crush …. viral infections including those in the Corona family, like in China Corona-19.”
“Making claims that unproven drugs can prevent or treat COVID-19 causes more harm than good. Fraudulent products making false claims can be dangerous,” said Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office. “We will investigate and bring to justice those who try to profit from the pandemic by offering unproven and illegally marketed coronavirus drugs.”
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
In 2011 and again in 2017, MARSCHALL was convicted and sentenced in federal court for distributing misbranded drugs. Due to these prior convictions, MARSCHALL faces increased penalties for introducing misbranded drugs into interstate commerce -- up to three years in prison and a $10,000 fine. In 2018, the Washington State Department of Health permanently revoked his credential to practice as a naturopath.
The case is being investigated by the FDA Office of Criminal Investigation (FDA-OCI). The case is being prosecuted by Assistant United States Attorney Brian Werner who serves as the COVID-19 Fraud Coordinator for the U.S. Attorney’s Office.
marschall_complaint_4-29-20.pdfFormer Chief of Honduran National Police Charged with Drug Trafficking and Weapons OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Wendy Woolcock, Special Agent in Charge of the Special Operations Division of the U.S. Drug Enforcement Administration (“DEA”), announced today that JUAN CARLOS BONILLA VALLADARES, a/k/a “El Tigre,” was charged in Manhattan federal court with conspiring to import cocaine into the United States, and related weapons offenses involving the use and possession of machineguns and destructive devices.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Juan Carlos Bonilla Valladares, the former chief of the Honduran National Police, allegedly abused his positions in Honduran law enforcement to flout the law and play a key role in a violent international drug trafficking conspiracy. As alleged, on behalf of convicted former Honduran congressman Tony Hernandez and his brother the president, Bonilla Valladares oversaw the transshipment of multi-ton loads of cocaine bound for the U.S., used machineguns and other weaponry to accomplish that, and participated in extreme violence, including the murder of a rival trafficker, to further the conspiracy. Now Bonilla Valladares has been marked as an outlaw and charged with crimes that could send him to a U.S. prison for life.”
DEA Special Agent in Charge Wendy Woolcock said: “Juan Carlos Bonilla-Valladares allegedly used his high ranking position to influence those working for him and violently protect the politically connected drug traffickers who would smuggle cocaine destined for the United States. As alleged, this was a blatant and horrific violation of the oath taken by Bonilla-Valladares to protect the citizens of Honduras. The filing of these charges is another positive action taken by the United States to bring corrupt officials to justice.”
According to the allegations contained in the Complaint charging BONILLA VALLADARES, evidence presented at the October 2019 trial of Juan Antonio Hernandez Alvarado in the Southern District of New York, and statements in open court during the prosecution of Hernandez Alvarado[1]:
Between approximately 2003 and 2020, multiple drug trafficking organizations in Honduras and elsewhere worked together, and with support from certain prominent public and private individuals, including Honduran politicians and law enforcement officials, to receive multi-ton loads of cocaine sent to Honduras from, among other places, Colombia and Venezuela via air and maritime routes, and to transport the drugs westward in Honduras toward the border with Guatemala and eventually to the United States. For protection from law enforcement interference, and in order to facilitate the safe passage through Honduras of multi-ton loads of cocaine, drug traffickers paid bribes to public officials, including certain presidents, members of the National Congress of Honduras, and personnel from the Honduran National Police, including BONILLA VALLADARES. For example, following an October 2019 trial in the Southern District of New York, former Honduran congressman Juan Antonio Hernandez Alvarado was convicted of drug trafficking, weapons, and false statements charges related to his role in the conspiracy described in the charges against BONILLA VALLADARES. Hernandez Alvarado is scheduled to be sentenced by U.S. District Judge P. Kevin Castel on June 29, 2020.
BONILLA VALLADARES was a member of the Honduran National Police between approximately 1985 and approximately 2016. During his tenure, he held high-ranking positions, including Regional Police Chief with authority over locations in western Honduras that were strategically important to drug traffickers, and Chief of the Honduran National Police for all of Honduras between approximately 2012 and approximately 2013. BONILLA VALLADARES corruptly exploited these official positions to facilitate cocaine trafficking, and used violence, including murder, to protect the particular cell of politically connected drug traffickers he aligned with, including Hernandez Alvarado and at least one of Hernandez Alvarado’s brothers, who is a former Honduran congressman and the current president of Honduras referred to in the Complaint charging BONILLA VALLADARES as “CC-4.” For example, in exchange for bribes paid in drug proceeds, BONILLA VALLADARES directed members of the Honduran National Police, who were armed with machineguns, to let cocaine shipments pass through police checkpoints without being inspected or seized. BONILLA VALLADARES, in coordination with Hernandez Alvarado and others, also provided members of their conspiracy with sensitive law enforcement information to facilitate cocaine shipments, including information regarding aerial and maritime interdiction operations.
In or about 2010, Hernandez Alvarado told a cooperating witness (“CW-1”) that Hernandez Alvarado and CC-4 helped BONILLA VALLADARES advance his position within the Honduran National Police, and that BONILLA VALLADARES protected their drug trafficking activities in return. Hernandez Alvarado also told CW-1 that BONILLA VALLADARES was very violent, and that Hernandez Alvarado and CC-4 trusted BONILLA VALLADARES with special assignments, including murder.
For example, in or about July 2011, BONILLA VALLADARES participated in the murder of a rival drug trafficker at the request of Hernandez Alvarado and others because the rival trafficker had attempted to prevent Hernandez Alvarado and other members of the conspiracy from transporting cocaine through a region of western Honduras near the border with Guatemala. Claiming to investigate the murder at the time, BONILLA VALLADARES reportedly told a member of the media, in substance, that the murder was a well planned surprise attack that had been carried out efficiently and that the perpetrators had cleaned the murder scene thoroughly. BONILLA VALLADARES reportedly added that the perpetrators of the murder had used 40-millimeter grenade launchers, M-16 assault rifles, and Galil assault rifles. The latter two types of weapons were issued by the Honduran government to some members of the Honduran National Police.
* * *
The Complaint charges BONILLA VALLADARES, 60, with: (1) conspiring to import cocaine into the United States, (2) using and carrying machine guns and destructive devices during and in relation to, and possessing machine guns and destructive devices in furtherance of, the cocaine importation conspiracy; and (3) conspiring to use and carry machine guns and destructive devices during and in relation to, and to possess machine guns and destructive devices in furtherance of, the cocaine importation conspiracy. If convicted, BONILLA VALLADARES faces a mandatory minimum sentence of 10 years in prison and a maximum term of life in prison on Count One, a mandatory minimum sentence of 30 years in prison and a maximum term of life in prison on Count Two, and a maximum term of life in prison on Count Three.
The maximum and minimum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentence will be determined by the judge.
Mr. Berman praised the outstanding investigative work of the DEA’s Special Operations Division Bilateral Investigations Unit and Strike Force.
This case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Amanda L. Houle, Matthew J. Laroche, Jason A. Richman, and Elinor L. Tarlow are in charge of the prosecution.
The charges in the Complaint are merely accusations, and BONILLA VALLADARES is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Former Bureau of Prisons Officer Pleads Guilty to Sexually Assaulting Two Women on Multiple Occasions and Lying to InvestigatorsRead the Press Release
BIRMINGHAM, Ala. – Adrian L. Stargell, 39, a former Bureau of Prisons (BOP) Correctional Officer who worked as an Education Specialist at the FCI-Aliceville facility in Aliceville, Alabama, pleaded guilty today before U.S. District Judge L. Scott Coogler, announced DOJ Civil Rights Division Assistant Attorney General Eric Dreiband, U.S. Attorney Jay E. Town and Special Agent in Charge of the OIG Miami Field Office James F. Boyersmith. Stargell pleaded guilty to two counts of violating the rights of two women whom he sexually assaulted on multiple occasions and one count of making false statements to federal agents from the United States Department of Justice Office of the Inspector General (OIG).
“The Department of Justice will not tolerate prison officials who abuse their positions of power to sexually assault individuals in their custody,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to vigorously prosecute these cases and secure justice for victims of these despicable crimes.”
“Sexual assault is as despicable as it is illegal,” said U.S. Attorney Jay E. Town. “We will not tolerate this abhorrent behavior. Our resolve must instead be to bring the full weight of our system of justice to every predator among us.”
“Stargell’s job was to help advance inmates’ rehabilitation through education,” said James F. Boyersmith, Special Agent in Charge of the OIG Miami Field Office. “Instead, he abused his power, sexually assaulted two inmates, and lied to try to cover up his actions. This kind of conduct will not be tolerated. Special Agents at the Department of Justice Office of the Inspector General will continue to ensure that anyone who commits these kinds of despicable acts are brought to justice.”
According to court documents, during 2017 and 2018, while on-duty as an Education Specialist, Stargell sexually assaulted two different women who were incarcerated at FCI-Aliceville. Stargell admitted that he knew what he was doing was wrong and against the law, yet he did it anyway. When OIG agents interviewed Stargell about the allegations of sexual misconduct, Stargell lied by falsely denying having any sexual contact with the victims.
Stargell will be sentenced on Aug. 27, 2020.
This case was investigated by the Miami Division of the DOJ OIG. Assistant United States Attorney Robert Posey of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Former Bureau of Prisons Corrections Officer Pleads Guilty to Sexually Assaulting Two Women on Multiple Occasions and Lying to InvestigatorsRead the Press Release
WASHINGTON – Adrian L. Stargell, 39, a former Bureau of Prisons (BOP) corrections officer who worked as an education specialist at the FCI-Aliceville facility in Aliceville, Alabama, pleaded guilty today in federal court in Tuscaloosa, Alabama. Stargell pleaded guilty to two counts of violating the rights of two women whom he sexually assaulted on multiple occasions and one count of making false statements to federal agents from the U.S. Department of Justice Office of the Inspector General (OIG).
“The Department of Justice will not tolerate prison officials who abuse their positions of power to sexually assault individuals in their custody,” said Assistant Attorney General Eric Dreiband. “The Civil Rights Division will continue to vigorously prosecute these cases and secure justice for victims of these egregious crimes.”
“Sexual assault is as despicable as it is illegal,” said U.S. Attorney Jay E. Town from the Northern District of Alabama. “We will not tolerate this abhorrent behavior. Our resolve must instead be to bring the full weight of our system of justice to every predator among us.”
“Stargell’s job was to help advance inmates’ rehabilitation through education,” said James F. Boyersmith, Special Agent in Charge of the OIG Miami Field Office. “Instead, he abused his power, sexually assaulted two inmates, and lied to try to cover up his actions. This kind of conduct will not be tolerated. Special Agents at the Department of Justice Office of the Inspector General will continue to ensure that anyone who commits these kinds of despicable acts are brought to justice.”
According to court documents, during 2017 and 2018, while on-duty as an education specialist, Stargell sexually assaulted two different women who were incarcerated at FCI-Aliceville. Stargell admitted that he knew what he was doing was wrong and against the law, yet he did it anyway. When OIG agents interviewed Stargell about the allegations of sexual misconduct, Stargell lied by falsely denying having any sexual contact with the victims.
Stargell will be sentenced on Aug. 27, 2020.
This case was investigated by the Miami Field Office of the Department of Justice OIG. Assistant U.S. Attorney Robert Posey of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Florida Man Pleads Guilty to Racially-Motivated Interference with Election in Charlottesville, Virginia and Cyberstalking in FloridaRead the Press Release
WASHINGTON – Daniel McMahon, 31, pleaded guilty today in federal court in the Western District of Virginia to one count of threatening an African-American Charlottesville City Council candidate identified by the initials D.G. because of his race and because he was running for office, and to one count of cyberstalking a separate victim through Facebook messenger.
“Racially motivated threats of violence have no place in our society and will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The defendant in this case violated the civil rights of his victims through intimidation and we are grateful for all the work and collaboration our partners have done on this case.”
“Although the First Amendment protects, without qualification, an individual’s right to hold and express abhorrent political views, it does not license threats of violence,” said U.S. Attorney Thomas T. Cullen for the Western District of Virginia. “The Department of Justice is committed to investigating and prosecuting those who weaponize social media to harm others.”
"Peaceable protest is a core American value protected by law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “This defendant violated the law by threatening violence against an African-American individual who planned to announce his candidacy for City Council and an autistic child merely because the child’s mother opposes his extreme racially motivated views. This collaborative prosecution demonstrates that the Department of Justice as a whole will not tolerate these types of threats and intimidation.”
“This investigation underscores the FBI Joint Terrorism Task Forces and the US Attorney’s Offices continued commitment to aggressively investigate and prosecute individuals engaging in racially-motivated threats and violent extremist activities. It also exemplifies the seamless information sharing between FBI Divisions in eliminating potential threats to our communities,” said Special Agent in Charge of the FBI Tampa Division Michael F. McPherson.
“Protecting the civil rights of all Americans is a high priority for the FBI and is a mission to which we are fully committed. In this case, the defendant used racially-motivated threats of violence to disrupt an election,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “In addition, he used a social media account to stalk and terrorize another victim and a minor child. We will continue to prioritize and aggressively investigate violations of these kinds. We are grateful for the partnership and efforts of FBI Tampa Division, the United States Attorney Offices in Virginia and Florida, and the Department of Justice, and for their assistance on this case.”
At the plea hearing, the defendant admitted that he uses the online pseudonyms “Jack Corbin,” “Pale Horse,” “Restore Silent Sam,” and “Dakota Stone,” to promote white supremacy and white nationalist ideology, and to express support for racially-motivated violence. The defendant admitted that in January 2019, upon learning that D.G., an African-American resident of Charlottesville, Virginia, planned to announce his candidacy for City Council, the defendant used his Jack Corbin account on the social media platform Gab to threaten violence against D.G. because of D.G.’s race and because D.G. was running for office. The defendant admitted that his posts used racial slurs and invoked long-standing racial stereotypes, and that he intended for D.G. to understand his posts as threats to his safety.
In addition to this, the defendant also admitted to cyberstalking Victim 2 using his “Restore Silent Sam” Facebook account. In connection with this charge, the defendant admitted that he used Facebook to send Victim 2 numerous intimidating and threatening messages that placed Victim 2 in reasonable fear of harm to Victim 2’s minor child. The defendant acknowledged that Victim 2 has been active in countering white nationalist rallies in her community. The defendant admitted that, because of Victim 2’s activism, he began an online campaign to intimidate her and to extort information from her about her fellow activists. This included sending Victim 2 numerous messages over the course of twelve days in which he threatened to sexually assault Victim 2’s minor daughter, who has autism. The defendant admitted that, at around the same time that he sent these messages, he also used the internet to conduct searches relating to sexual contact with girls who have autism. The defendant admitted that his messages reasonably caused Victim 2 serious emotional distress and fear for Victim 2’s child’s safety.
McMahon will be sentenced on July 23, 2020. He faces a maximum sentence of one year in prison for threatening D.G. and five years in prison for cyberstalking Victim 2.
This case is being investigated by the FBI and is being prosecuted by United States Attorney Thomas T. Cullen of the Western District of Virginia; Assistant U.S. Attorney Christopher Kavanaugh of the Western District of Virginia; Assistant U.S. Attorney Daniel George of the Middle District of Florida; and Trial Attorney Risa Berkower of the U.S. Department of Justice’s Civil Rights Division.
Florida Man Pleads Guilty to Racially-Motivated Interference with Election in Charlottesville, Virginia and Cyberstalking in FloridaRead the Press Release
CHARLOTTESVILLE – Daniel McMahon, 31, pleaded guilty today in federal court in the Western District of Virginia to one count of threatening an African-American Charlottesville City Council candidate identified by the initials D.G. because of his race and because he was running for office, and to one count of cyberstalking a separate victim through Facebook messenger.
“Racially motivated threats of violence have no place in our society and will not be tolerated by the Department of Justice,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The defendant in this case violated the civil rights of his victims through intimidation and we are grateful for all the work and collaboration our partners have done on this case.”
“Although the First Amendment protects, without qualification, an individual’s right to hold and express abhorrent political views, it does not license threats of violence,” said U.S. Attorney Thomas T. Cullen for the Western District of Virginia. “The Department of Justice is committed to investigating and prosecuting those who weaponize social media to harm others.”
“Peaceable protest is a core American value protected by law,” said U.S. Attorney Maria Chapa Lopez for the Middle District of Florida. “This defendant violated the law by threatening violence against an African-American individual who planned to announce his candidacy for City Council and an autistic child merely because the child’s mother opposes his extreme racially motivated views. This collaborative prosecution demonstrates that the Department of Justice as a whole will not tolerate these types of threats and intimidation.”
“This investigation underscores the FBI Joint Terrorism Task Forces and the U.S. Attorney’s Offices continued commitment to aggressively investigate and prosecute individuals engaging in racially-motivated threats and violent extremist activities. It also exemplifies the seamless information sharing between FBI Divisions in eliminating potential threats to our communities,” said Special Agent in Charge of the FBI Tampa Division Michael F. McPherson.
“Protecting the civil rights of all Americans is a high priority for the FBI and is a mission to which we are fully committed. In this case, the defendant used racially-motivated threats of violence to disrupt an election,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “In addition, he used a social media account to stalk and terrorize another victim and a minor child. We will continue to prioritize and aggressively investigate violations of these kinds. We are grateful for the partnership and efforts of FBI Tampa Division, the U.S. Attorney Offices in Virginia and Florida, and the Department of Justice, and for their assistance on this case.”
At the plea hearing, the defendant admitted that he uses the online pseudonyms “Jack Corbin,” “Pale Horse,” “Restore Silent Sam,” and “Dakota Stone,” to promote white supremacy and white nationalist ideology, and to express support for racially-motivated violence. The defendant admitted that in January 2019, upon learning that D.G., an African-American resident of Charlottesville, Virginia, planned to announce his candidacy for City Council, the defendant used his Jack Corbin account on the social media platform Gab to threaten violence against D.G. because of D.G.’s race and because D.G. was running for office. The defendant admitted that his posts used racial slurs and invoked long-standing racial stereotypes, and that he intended for D.G. to understand his posts as threats to his safety.
In addition to this, the defendant also admitted to cyberstalking Victim 2 using his “Restore Silent Sam” Facebook account. In connection with this charge, the defendant admitted that he used Facebook to send Victim 2 numerous intimidating and threatening messages that placed Victim 2 in reasonable fear of harm to Victim 2’s minor child. The defendant acknowledged that Victim 2 has been active in countering white nationalist rallies in her community. The defendant admitted that, because of Victim 2’s activism, he began an online campaign to intimidate her and to extort information from her about her fellow activists. This included sending Victim 2 numerous messages over the course of twelve days in which he threatened to sexually assault Victim 2’s minor daughter, who has autism. The defendant admitted that, at around the same time that he sent these messages, he also used the internet to conduct searches relating to sexual contact with girls who have autism. The defendant admitted that his messages reasonably caused Victim 2 serious emotional distress and fear for Victim 2’s child’s safety.
McMahon will be sentenced on July 23, 2020. He faces a maximum sentence of one year in prison for threatening D.G. and five years in prison for cyberstalking Victim 2.
This case is being investigated by the FBI and is being prosecuted by U.S. Attorney Thomas T. Cullen of the Western District of Virginia; Assistant U.S. Attorney Christopher Kavanaugh of the Western District of Virginia; Assistant U.S. Attorney Daniel George of the Middle District of Florida; and Trial Attorney Risa Berkower of the U.S. Department of Justice’s Civil Rights Division.
The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
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Female charged with armed carjackingRead the Press Release
HONOLULU, Hawaii – Vanity Sua, 27, of Waipahu, was charged on April 27, 2020 by federal complaint with armed carjacking in violation of 18 U.S.C. §§ 2119 and 2.
U.S. Attorney Kenji M. Price for the District of Hawaii announced that the complaint alleges that on April 22, 2020, Sua was involved in an armed carjacking along with two other male suspects. Sua initiated the encounter with the victims and got into their parked vehicle. Thereafter, two male suspects approached the victims’ vehicle. When the victim in the driver’s seat attempted to start the ignition, one of the male suspects pulled out a handgun and pointed it at the victim. Sua reached over and removed the car keys from the ignition and got out of the vehicle. Both of the male suspects then ordered the victims out of the vehicle at gunpoint. One of the male suspects entered the victims’ vehicle. Sua then drove away in her vehicle followed by the male suspect driving the victims’ vehicle, and the other male suspect driving a truck.
The charges in the complaint are merely allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Honolulu Police Department. The case is being prosecuted by Assistant U.S. Attorney Margaret Nammar.
This prosecution is part of Project Safe Neighborhoods (PSN), a program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the ATF when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners: the ATF and the HPD. For more information about Project Guardian, please click here.
Federal firearm licensee arrested for prohibited salesRead the Press Release
HOUSTON – A 32-year-old Pearland resident is set to appear on federal charges that he illegally sold firearms to convicted felons, announced U.S. Attorney Ryan K. Patrick.
Khalid Abdullah Abdullaziz is expected to make a virtual initial appearance before U.S. Magistrate Nancy K. Johnson at 2 p.m. today. Authorities filed the criminal complaint April 24, which was unsealed as he was taken into custody April 29.
The charges allege Abdullaziz is the owner of Zeroed In Armory in Pearland and became the target of an investigation involving the trafficking of firearms to Mexico. The investigation revealed he allegedly sold multiple firearms to a felon on numerous occasions, including a .50 caliber rifle.
Also taken into custody on related charges were Isaac Rodriguez, 25, Israel Chapa Jr., 24, and Steve Baranowski, 23, all of Houston; and Ashley Giddens, 26, Humble. They are also expected to make appearances in federal court later today.
If convicted, Abdullaziz faces up to 10 years in federal prison and a $10,000 maximum possible fine.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jennifer Stabe and Lisa M. Collins are prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Federal charges filed in burglary at hospitalRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today, April E. Hayworth, 31, Indianapolis, and Christina A. Smith, 37, Indianapolis, were charged today on federal drug, conspiracy, and burglary charges.
“During this COVID19 pandemic, it is vitally important to protect our medical system and the supplies that are needed to treat patients and protect our medical workers.” said Minkler. “These individuals were trying to make some quick money at the cost of endangering innocent lives. This conduct will not be tolerated during a pandemic or ever.”
On April 14, 2020, two females broke into a restricted medication storage area at the Central Indiana Cancer Center and stole thirty carpujets of morphine, a schedule II controlled substance. With a covering over their heads, each individual opened multiple cabinets, removing the missing controlled substances. Agents also discovered that Personal Protective Equipment (“PPE”) and other medical supplies had been stolen from the hospital, including 7 boxes of Isolation masks; 50 tubs of Sani-wipes; 10 containers of soap; 20 bottles of hand sanitizer; 8 bottles of air deodorizer; and 6 tubs of bleach wipes.
During the investigation, one of the females was identified as April Hayworth, a member of the cleaning crew at the hospital. Further investigation identified the other female as Christina Smith. Investigators discovered that Smith planned on selling the morphine.
Investigators later observed Smith entering a vehicle with an associate. Indianapolis Metropolitan Police Department Officers initiated a traffic stop. Ms. Smith was identified and arrested on an outstanding arrest warrant. During the arrest, officers discovered twenty-nine carpujets of morphine in the vehicle.
This case was the result of an investigation by the Drug Enforcement Administration and the Indianapolis Metropolitan Police Department.
“It is absolutely shameful with the ongoing COVID-19 pandemic, that Ms. Hayworth and Ms. Smith would burglarize the Central Indiana Cancer Centers, and steal a significant amount of morphine and personal protective equipment.” said DEA Assistant Special Agent in Charge, Michael Gannon. “The DEA Tactical Diversion Squad, Indianapolis Metropolitan Police Department, United States Attorney’s Office, Indiana University Health Care, and the cleaning company are to be commended for their assistance in holding Ms. Hayworth and Ms. Smith accountable for their misconduct.”
“As our community faces the challenges that result from COVID-19, it is our collective responsibility to support the healthcare workers serving on the frontlines of this pandemic - and that means ensuring they have all of the tools, and especially the Personal Protective Equipment, they need to serve residents,” said IMPD Chief Randal Taylor. “We are in this together. When someone seeks to profit from harming our healthcare partners, law enforcement will hold them accountable to the fullest extent possible.”
According to Assistant United States Attorney Kyle Sawa who is prosecuting this case for the government, each defendant faces up to 20 years’ imprisonment, 3 years of supervised release, and a maximum fine of $1,000,000.
A charge is not evidence of guilt. All parties are presumed innocent until proven otherwise in federal court.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to targeting the prosecution of opioid dealers to prevent the spread of opioid addiction in the district. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.2.
This prosecution also shows the office’s strong commitment to combating fraud and criminal activity related to COVID-19, which is reflected in the creation of a Coronavirus Fraud Task Force in the Southern District of Indiana. If you receive any forms of suspicious communication related to the COVID-19 crisis, or become aware of family and friends that have received suspicious communications, I ask that you don’t respond directly but instead report the activity to the National Center for Disaster Fraud (NCDF) Hotline at 1-866-720-5721, or to the NCDF e-mail address [email protected]. "
Evergreen Man Sentenced to Four Years in Prison for Federal Gun Charge Out of Covington CountyRead the Press Release
Montgomery, Alabama – On Wednesday, April 29, 2020, Mitchell Evan Gandy, a 32-year-old man from Evergreen, Alabama, was sentenced to 48 months in prison for being a felon in possession of a firearm, announced United States Attorney Louis V. Franklin, Sr. Following his prison sentence, Gandy will be on supervised release for three years.
Gandy was indicted by a federal grand jury in August 2018 on one count of possession of a firearm by a convicted felon. He pleaded guilty to that charge on January 29, 2020.
According to court records, on February 14, 2018, a deputy stopped Gandy for speeding while he was traveling in Covington County. When the deputy approached to speak to the driver, he detected a strong smell of marijuana coming from inside the vehicle and asked him to step out of the car. When law enforcement officers searched the vehicle, they found two handguns— a Glock 9mm and a Zastava 7.62mm. Gandy has multiple felony convictions and is prohibited from possessing a firearm.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Covington County Sheriff’s Office investigated this case. Assistant United States Attorney Joshua Wendell prosecuted this case.
Dillwyn Man Pleads Guilty to Federal Drug ChargesRead the Press Release
LYNCHBURG, Va. – Stewart Cornell Booker, of Dillwyn, Virginia, pleaded guilty today in U.S. District Court in Lynchburg to a variety of federal drug charges related to his distribution of methamphetamine, heroin, and powder cocaine, United States Attorney Thomas T. Cullen announced.
Booker, 46, pled guilty today to one count of distributing powder cocaine, one count of distributing heroin, and one count of distributing methamphetamine. At sentencing, Booker faces up to 20 years in prison and/or a fine of up to $1 million.
“Combatting opioid and methamphetamine trafficking is among the top priorities of our office,” U.S. Attorney Cullen stated today. “We have increased federal collaboration with our state and local partners in the Piedmont region over the last several months and hope to bring additional cases soon.”
According to court records, between July 25, 2018, and October 24, 2018, law enforcement made a series of undercover purchases of narcotics from Booker at various locations in Buckingham County, Virginia. The transactions involved the sale of powder cocaine, heroin, and methamphetamine. At the time, Booker was distributing these drugs while he was on federal supervision.
This case was investigated by the Drug Enforcement Administration and the Piedmont Regional Narcotics and Gang Enforcement Task that is comprised of the Virginia State Police, the Buckingham County Sheriff’s Office, the Cumberland County Sheriff’s Office, the Prince Edward County Sheriff’s Office, the Farmville Police Department and the Longwood University Police Department. Assistant United States Attorney Ronald M. Huber is prosecuting the case for the United States.
Convicted Felon Sentenced to a Decade in Prison for Firearm Possession Discovered Following a Domestic Violence CallRead the Press Release
OKLAHOMA CITY – Antonio Dewayne Adams, 40, of Oklahoma City, Oklahoma, has been sentenced to 120 months in prison for illegally possessing a firearm while being a convicted felon, announced U.S. Attorney Timothy J. Downing. That firearm was discovered by law enforcement responding to a domestic violence call.
"We will continue to bring firearms charges against perpetrators of domestic violence who violate federal law, particularly when they actively menace their families and those in our community," said U.S. Attorney Downing. "Through this case and others like it, the Department of Justice is protecting vulnerable families and preventing violence against adults, children, and others."
Adams was indicted on July 17, 2019, with one count of being a felon in possession of a firearm. Public records indicate Mr. Adams holds felony convictions for burglary in the second degree, possession of a firearm after former conviction of a felony, concealing stolen property, possession of controlled dangerous substances, and assault and battery—domestic abuse. Federal law prohibits possession of firearms by anyone who, among other things, is previously convicted of a felony, previously convicted of a misdemeanor domestic violence offense, or who is subject to a domestic violence protection order.
At a sentencing hearing yesterday, U.S. District Judge Charles B. Goodwin sentenced Mr. Adams to ten years in prison—the statutory maximum—to be followed by three years of supervised release. In announcing the sentence, U.S. District Judge Goodwin cited Mr. Adams’ history of domestic violence. The government presented evidence at sentencing that Mr. Adams brought a loaded firearm to his girlfriend’s residence. Through the course of the evening, Mr. Adams threatened his girlfriend with the firearm and kept her from leaving the residence. She eventually escaped to a neighbor’s residence, where police were called.
This sentence is the result of an investigation by the Midwest City Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Prosecuted by Assistant U.S. Attorney Mary E. Walters.
This case is part of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s signature initiatives to reduce gun violence and enforce federal firearms laws. For more information about Project Guardian, please see the Attorney General’s announcement here. The case is also part of "Operation 922," the district’s local implementation of Project Safe Neighborhoods and Project Guardian. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information. To download a photo of U.S. Attorney Downing, click here.
Brockton Man Sentenced for Being Felon in Possession of FirearmRead the Press Release
BOSTON – A Brockton man was sentenced today for being a felon in possession of a firearm.
Clive McFarlane, 36, was sentenced by U.S. District Court Judge Allison D. Burroughs during a videoconference to time served (approximately six months in prison) and two years of supervised release. McFarlane pleaded guilty to one count of being a felon in possession of a firearm on April 14, 2020.
On Aug. 27, 2019, McFarlane was found in possession of a Rohm Gesellschaft .25 caliber revolver, one round of Remington .25 caliber ammunition and seven rounds of Cascade Cartridges .25 caliber ammunition. McFarlane had previously been convicted of being a felon in possession of a firearm and other crimes punishable by more than a year in jail and therefore was prohibited from possessing firearms.
United States Attorney Andrew E. Lelling; Kelly Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Brockton Police Chief Emanuel Gomes made the announcement today. Assistant U.S. Attorney Mackenzie A. Queenin of Lelling’s Criminal Division prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Bank Hapoalim Agrees to Pay More Than $30 Million for its Role in Money Laundering Conspiracy Involving FIFA Bribery SchemeRead the Press Release
BROOKLYN, NY – Bank Hapoalim B.M. (“BHBM”), an Israeli bank with international operations, and its wholly owned subsidiary, Hapoalim (Switzerland) Ltd. (“BHS”), have agreed to forfeit $20,733,322 and pay a fine of $9,329,995 to resolve an investigation into their involvement in a money laundering conspiracy that fueled an international soccer bribery scheme. Specifically, BHBM and BHS have admitted that they, through certain of their employees, conspired to launder over $20 million in bribes and kickbacks to soccer officials with Fédération Internationale de Football Association (“FIFA”) and other soccer federations.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ryan L. Korner, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation, Los Angeles Field Office (IRS-CI), made the announcement.
“Today’s resolution marks another successful chapter in this District’s effort to hold accountable those corporations and individuals who participated in a bribery scheme that corrupted international soccer,” stated United States Attorney Donoghue. “This Office, along with our law enforcement partners, will continue to identify wrongdoers who manipulate international soccer in order to reap illicit profits and bring them to justice.”
“For nearly five years, Bank Hapoalim employees used the U.S. financial system to launder tens of millions of dollars in bribe payments to corrupt soccer officials in multiple countries,” stated AAG Benczkowski. “Today’s announcement demonstrates the Department’s commitment to holding financial institutions to account when they knowingly facilitate corruption and other criminal conduct.”
“This announcement illustrates another aspect in the spider web of bribery, corruption and backroom deals going on behind the scenes as soccer games were played on the field. Bank Hapoalim admits executives looked the other way, and allowed illicit activity to continue even when employees discovered the scheme and reported it. The New York FBI Eurasian Organized Crime Task Force and our law enforcement partners have doggedly pursued every strand uncovered in this criminal investigation, and will keep at it until they root out all of the bad actors,” stated FBI Assistant Director-in-Charge Sweeney.
“This forfeiture sends a clear message that no matter how complex or far reaching the conspiracy, justice will prevail. Bank Hapoalim B.M. and its subsidiary, Hapoalim Ltd., participated in a conspiracy that corrupted international soccer, its confederations, and member associations,” stated IRS-CI Special Agent-in-Charge Korner. “IRS-CI is proud to work alongside our international law enforcement partners, the FBI, and the United States Attorney’s Office to bring closure to this egregious international scandal that corrupted the sport of soccer.”
According to admissions in the statement of facts stipulated to by BHBM and BHS as part of the agreement, from approximately December 10, 2010 to February 20, 2015, BHBM and BHS personnel conspired with sports marketing executives, including executives associated with Full Play Group S.A. (“Full Play”), a sports media and marketing business based in Argentina, and others, to launder at least $20,733,322 in bribes and kickbacks to soccer officials. In exchange for those bribes and kickbacks, the soccer officials awarded or steered broadcasting rights for soccer matches and tournaments to the sports marketing executives and their companies. Full Play allegedly executed the illegal payments from accounts held at BHS and BHBM’s branch in Miami, Florida, which were held in the names of Full Play subsidiaries and affiliates.
BHBM and BHS admitted they, through BHS and BHBM’s Miami branch, conspired to launder money for Luis Bedoya, who at various times served as the president of the Federación Colombiana de Futbol, a vice president of the Confederación Sudamericana de Fútbol (CONMEBOL), and a member of FIFA’s executive committee. BHBM and BHS allowed accounts controlled by Bedoya to be used to receive illicit bribe and kickback payments. In November 2015, Bedoya pleaded guilty to racketeering conspiracy and wire fraud conspiracy in the Eastern District of New York. He is awaiting sentencing.
Despite BHS compliance personnel repeatedly raising concerns about certain payments made to soccer officials from the accounts associated with Full Play, BHBM and BHS failed to take action. Instead, the banks’ relationship managers continued executing illicit bribe and kickback payments on behalf of Full Play.
As outlined in the agreement, the government’s decision to enter into a three-year, non-prosecution agreement with BHBM and BHS was premised upon the banks’ thorough and complete cooperation, BHBM’s pledge to review and improve its anti-money laundering program, and the banks’ other substantial remedial efforts, which include closing Bank Hapoalim (Latin America) S.A. and BHBM’s branch in Miami. BHS is also in the process of closing its operations.
The agreement announced today is part of an investigation led by the U.S. Attorney’s Office for the Eastern District of New York, the Bank Integrity Unit in the Money Laundering and Asset Recovery Section of the Justice Department’s Criminal Division in Washington, D.C., the FBI New York Field Office, and the IRS-CI Los Angeles Field Office. Assistant U.S. Attorneys Sam Nitze, Lauren Howard Elbert and Brian Morris of the U.S. Attorney’s Office and Trial Attorney Michael P. Grady of the Bank Integrity Unit are responsible for the matter on behalf of the U.S. Department of Justice. The government of Switzerland provided significant assistance in this matter, as did the Criminal Division’s Office of International Affairs.
The Defendants:
BANK HAPOALIM B.M.
BANK HAPOALIM (SWITZERLAND) LTD.