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Thursday 17 May 2012
Bay Area Woman Indicted in San Francisco<br /> <br /> for Tax Evasion and Bank FraudRead the Press Release
A federal grand jury in San Francisco has returned an indictment charging Crystal Ann Poole with evading income taxes for over eight years and for defrauding a federally insured bank in Mississippi, the Justice Department and Internal Revenue Service (IRS) announced today.
The indictment alleges that Poole had failed to file income tax returns and failed to pay income taxes since 1998, despite earning, in later years, as much as $200,000 each year. She allegedly evaded collection of her taxes by using a false Social Security number and by keeping her employers from withholding income taxes from her wages.
The indictment further alleges that, in January 2006, Poole defrauded the Community Bank of Mississippi in order to borrow $335,000 to buy a home in Florence, Miss. In order to get the loan, she allegedly provided the bank with a false Social Security number that masked several disqualifying financial circumstances to include a recently filed bankruptcy, one pending lawsuit, and numerous unpaid debts.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Poole faces a maximum potential sentence of 51 years in prison and a maximum fine of over $2 million.
Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division thanked special agents of IRS - Criminal Investigation, who provided valuable assistance in conducting the investigation; Tax Division Trial Attorneys Brian Bailey and Katherine Wong, who prosecuted the case; and Assistant U.S. Attorney Tom Moore for his assistance with the prosecution.
Wednesday 16 May 2012
Two Individuals and Their California Company Sentenced in Connection with Exports of Computer Equipment to IranRead the Press Release
Massoud Habibion, 49, a U.S. citizen, Mohsen Motamedian, 44, a U.S. citizen, and their Costa Mesa, Calif., company, Online Micro LLC, were sentenced today in the District of Columbia in connection with a scheme to illegally export millions of dollars worth of computer-related goods from the United States to Iran through the United Arab Emirates (UAE).
The sentences were announced by Lisa Monaco, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John Morton, Director of U.S. Immigration and Customs Enforcement (ICE); David W. Mills, Assistant Secretary for Export Enforcement, Department of Commerce; and Adam Szubin, Director of the Office of Foreign Assets Control (OFAC), Department of the Treasury.
U.S. District Judge Ellen S. Huvelle today sentenced Habibion to 13 months in prison for conspiracy to violate the International Emergency Economic Powers Act and to defraud the United States. Judge Huvelle sentenced Motamedian to three years supervised release for obstruction of justice. Habibion and Motamedian pleaded guilty to these charges on Feb. 16, 2012.
Under the terms of their guilty pleas and related civil settlements with the Department of Commerce’s Bureau of Industry and Security (BIS) and OFAC, Habibion and his company have agreed to forfeiture of $1.9 million seized from Online Micro’s bank accounts by ICE’s Homeland Security Investigations (HSI) during the course of the investigation. In addition, Habibion and Online Micro are denied export privileges for 10 years, although the denial order will be suspended provided that neither Habibion nor Online Micro commit any export violations during the 10-year probationary period and comply with the terms of the criminal plea agreements and sentences. Motamedian separately agreed to a $50,000 monetary penalty to settle a civil charge that he solicited a false statement to federal law enforcement agents.
Habibion and Motamedian were arrested on a criminal complaint in California on April 7, 2011. The defendants and their company were later indicted on April 21, 2011.
Habibion and Online Micro willfully conspired with a company operating in Dubai, UAE, and Tehran, Iran, to procure U.S.-origin computers from the United States and export those computers from the United States to Iran through Dubai without first obtaining licenses or authorizations from OFAC.
In or around May 2007, Online Micro purchased 1,000 computer units from Dell Inc. for approximately $500,000. Later that year, Dell began receiving service calls concerning Dell computer units from individuals in Iran, and after conducting an internal investigation, suspended Online Micro from placing further orders with Dell.
Beginning around Nov. 9, 2009, and continuing through December 2010, Habibion and Online Micro conspired with a company operating in Dubai and Tehran, to procure U.S.-origin computer-related goods and export those goods to Iran via the UAE. During the scope of the conspiracy, Online Micro and Habibion sold to that company and exported from the United States numerous shipments of computer-related goods, worth a total of more than $4,904,962, with knowledge that the majority of those goods were destined for Iran.
Online Micro also caused Shipper's Export Declarations to be filed with U.S. Customs and Border Protection falsely identifying the ultimate destination of the goods as the UAE. During the course of the investigation, Habibion and Motamedian told a government cooperator to lie to U.S. law enforcement officials about the transactions. Specifically, the defendants told the cooperator to lie about Iran being the true ultimate destination for the goods and counseled him to tell U.S. law enforcement agents that the computer-related goods remained in Dubai.
This investigation was conducted by the ICE-HSI offices in San Diego and Orange County, Calif. U.S. Customs and Border Protection and the Department of Commerce’s Office of Export Enforcement Los Angeles Field Office also assisted in the investigation.
Senior Attorney Adrienne Frazier from the U.S. Department of Commerce BIS and Assistant Director of Enforcement Michael Geffroy from OFAC handled the civil settlements for their agencies, respectively.
The prosecution is being handled by Assistant U.S. Attorneys T. Patrick Martin and Anthony Asuncion from the U.S. Attorney's Office for the District of Columbia, and Trial Attorney Jonathan C. Poling from the Counterespionage Section of the Justice Department’s National Security Division.
Houston-Area Nurse Sentenced to 97 Months in Prison for Role in $5.2 Million Medicare Fraud SchemeRead the Press Release
WASHINGTON – A Houston-area nurse was sentenced today in Houston for her participation in a $5.2 million Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Service (HHS).
Ezinne Ubani, the former director of nursing at Family Healthcare Group, a Houston home health care company, was sentenced by U.S. District Judge Nancy Atlas in the Southern District of Texas to 97 months in prison, followed by three years supervised release. Ubani was ordered to pay $2.5 million in restitution jointly and severally with her codefendants. Ubani was convicted of one count of conspiracy to commit health care fraud and two counts of making false statements following a May 2011 trial.
According to the evidence presented at trial and in court documents, Family Healthcare Group purported to provide skilled nursing to Medicare beneficiaries. Family Healthcare Group paid co-conspirators to recruit Medicare beneficiaries for the purpose of filing claims with Medicare for skilled nursing that was medically unnecessary and/or not provided. The evidence showed that Ezinne Ubani falsified documents to support the fraudulent payments. After the Medicare beneficiaries were recruited, other co-conspirators fraudulently signed plans of care stating that the beneficiaries needed home health care when in fact they knew the beneficiaries were not home-bound and not in need of skilled nursing.
Ubani is the seventh defendant sentenced in connection with this scheme. Three other defendants, Clifford Ubani, Princewill Njoku and Cynthia Garza Williams, await sentencing in the Southern District of Texas.
The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney Kenneth Magidson of the Southern District of Texas; Special Agent-In-Charge Stephen L. Morris of the FBI’s Houston Field Office; Special Agent-in-Charge Mike Fields of the Dallas Regional Office of HHS’s Office of the Inspector General (HHS-OIG); and the Texas Attorney General’s Medicaid Fraud Control Unit (OAG-MFCU).
This case is being prosecuted by Trial Attorney Charles D. Reed and Deputy Chief Sam S. Sheldon of the Fraud Section in the Justice Department’s Criminal Division. The case was investigated by the FBI, HHS-OIG, Texas OAG-MFCU and the Federal Railroad Retirement Board-Office of Inspector General. The case was brought as part of the Medicare Fraud Strike Force, supervised by the Fraud Section in the Justice Department’s Criminal Division and the U.S. Attorney’s Office for the Southern District of Texas.
Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,330 defendants who collectively have falsely billed the Medicare program for more than $4 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Former Oklahoma Detention Officer Pleads Guilty to AssaultRead the Press Release
The Department of Justice announced that Jerrod Porter Lane, 26, a former detention officer at the Muskogee, Okla., County Jail (MCJ), pleaded guilty today in federal court to charges related to his assault of an inmate at MCJ and his subsequent attempts to cover up the assault. Lane pleaded guilty to use of excessive force, violating the civil rights of an inmate, falsifying records and making false statements to the FBI.
According to court documents, on Oct. 1, 2011, Lane, while working in his capacity as a jailer, sprayed the victim, an inmate at MCJ, with jail-issued Oleoresin Capsicum spray (OC or pepper spray) while the victim was restrained in a restraint chair and not a physical threat to anyone. Lane deployed the OC spray to punish the victim for bothering Lane, even though he knew it was wrong both to spray a restrained inmate and to use force as a means to punish.
Lane then falsified his report and a fellow corrections officer’s report to try to justify his wrongful conduct and then later lied to FBI agents to cover up his actions. Specifically, Lane falsely wrote in both reports that the victim was physically resisting the officers and that he deployed his OC spray before the victim was restrained. In fact, Lane used the OC spray after the victim was fully restrained and unable to pose a threat. Likewise, on Oct. 7, 2011, Lane falsely told FBI agents that the victim was not restrained when he sprayed the victim with OC spray.
“Our system of justice relies on corrections officers to follow the laws they are sworn to enforce,” said Assistant Attorney General Thomas E. Perez of the Department of Justice’s Civil Rights Division. “The Civil Rights Division will aggressively prosecute corrections officers who use their authority to physically abuse inmates.”
A sentencing date has not yet been set.
This case was investigated by the Muskogee Resident Agency of the Oklahoma City Division of the FBI and is being prosecuted by Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice and Assistant U.S. Attorney Ryan M. Roberts for the Eastern District of Oklahoma.
Colorado-Based QEP Field Services Agrees to Pay $4 Million and Install Pollution Controls to Resolve Alleged Violations of the Clean Air ActRead the Press Release
WASHINGTON – The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with QEP Field Services Co. (QEPFS), formerly Questar Gas Management Co., to resolve alleged violations of the Clean Air Act at five natural gas compressor stations on the Uintah and Ouray Reservation in Northeastern Utah. Four members of the Ute Indian Tribe intervened as co-plaintiffs. Under the proposed settlement, QEPFS will pay a $3.65 million civil penalty and pay $350,000 into a Tribal Clean Air Trust Fund to be established by the tribal member intervenors. The settlement also requires QEPFS to reduce its emissions by removing certain equipment, installing additional pollution controls, and replacing the natural gas powered instrument control systems with compressed air control systems.
“This settlement will result in cleaner air for residents living on the Uintah and Ouray Reservation and allow the responsible development of energy resources in accordance with the Clean Air Act,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “It also will establish the Tribal Clean Air Trust Fund to fund environmental projects for the benefit of tribal members.”
“Natural gas extraction projects help to fuel our economy, but also need to follow the nation’s laws,” said Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement will bring cleaner air to the members of the Ute Indian Tribe by ensuring natural gas compressor stations are operated in compliance with the law and by creating a trust to fund environmental projects on the Uintah and Ouray Reservation.”
The Tribal Clean Air Trust Fund will fund beneficial environmental projects on the Uintah and Ouray Reservation, including projects to reduce emissions of air pollution on the reservation, mitigate the impacts of air pollution on tribal members, screen for air pollution related health impacts among tribal members, or educate tribal members about the impacts of air pollution on their health and the environment.
QEPFS’s compressor stations remove water and compress natural gas for transportation through gas pipelines. They are sources of air pollution, emitting hazardous air pollutants (HAPs), volatile organic compounds (VOCs) and nitrogen oxides (NOx), which can increase the risk of asthma attacks and are significant contributors to the formation of ozone. The actions required in the settlement will eliminate approximately 210 tons of NOx, 219 tons of carbon monoxide, 17 tons of HAPs and more than 166 tons of VOCs per year. It will also conserve 3.5 million cubic feet of gas each year, which could heat approximately 50 U.S. households. The reduction in methane emissions (a greenhouse gas that is a component of natural gas) is equivalent to planting more than 300 acres of trees.
QEPFS is a wholly-owned subsidiary of QEP Resources Inc., which is headquartered in Denver. QEPFS provides midstream field services such as natural gas gathering, compression, dehydration and processing to upstream natural gas companies.
The consent decree is subject to a 30-day public comment period and final court approval. The consent decree may be viewed on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.
For more information about the settlement, visit: www.epa.gov/compliance/resources/cases/civil/caa/qepfs.html.
To learn more about EPA’s civil enforcement of the Clean Air Act, visit: www.epa.gov/compliance/civil/caa/index.html.
Arizona State Representative Charged with Bribery, Fraud, Attempted Extortion and Making False StatementsRead the Press Release
WASHINGTON – A member of the Arizona House of Representatives was charged today by a federal grand jury in the District of Arizona with bribery, fraud, attempted extortion and false statements in connection with receiving more than $6,000 in tickets to sporting and special events while serving as a Tempe, Ariz., City Council councilmember and member-elect of the Arizona House, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and Special Agent in Charge James L. Turgal of the FBI’s Phoenix Field Office.
The indictment charges Paul Ben Arredondo, 63, of Tempe, with one count of federal programs bribery, two counts of honest services mail fraud, one count of attempted Hobbs Act extortion and one count of making false statements. Arredondo will be arraigned on May 30, 2012, in U.S. District Court for the District of Arizona before U.S. Magistrate Judge Lawrence O. Anderson.
According to the indictment, Arredondo was a councilmember in Tempe for 16 years, until July 2010. He was elected to the Arizona House of Representatives in November 2010. The indictment alleges that from February 2009 to November 2010, Arredondo accepted, agreed to accept and solicited things of value from representatives of a company whose purported business objective was to acquire city-owned property in Tempe for real estate development purposes. The representatives were, in fact, undercover agents with the FBI. According to the indictment, Arredondo received from the undercover agents more than $6,000 worth of tickets to sporting and other special events. Those tickets included 18 tickets for Arizona Diamondbacks baseball games valued at a total of approximately $2,400, and four tickets to an American League Championship Series baseball game valued at a total of approximately $1,225.
According to the indictment, in return for those tickets, Arredondo took and agreed to take action in his capacity as a Tempe city councilmember and as a member of the Arizona House of Representatives to facilitate the undercover agents’ purported purchase of city-owned property and development project. The indictment alleges that Arredondo brokered meetings between the undercover agents and other public officials, divulged information regarding the city of Tempe’s bidding process, and attempted to persuade other city officials to approve the purported development project.
The indictment further alleges that Arredondo lied to the FBI about his conduct during an interview in January 2012.
The federal programs bribery charge carries a maximum penalty of 10 years in prison and a $250,000 fine. Each count of honest services mail fraud and attempted extortion carries a maximum penalty of 20 years in prison and a $250,000 fine. The false statement charge carries a maximum penalty of 5 years in prison and a $250,000 fine. The indictment also contains a notice of forfeiture.
An indictment is merely a charge and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The case is being prosecuted by Trial Attorneys Edward T. Kang and Monique T. Abrishami of the Criminal Division’s Public Integrity Section, and Assistant U.S. Attorney Frederick A. Battista of the District of Arizona. The case is being investigated by the FBI’s Phoenix Field Office.
Related Materials:
Arredondo Indictment
Alabama Sisters Sent to Prison for<br /> <br /> Their Roles in Stolen Identity Refund FraudRead the Press Release
Loretta Fergerson and her sister, Tracey Fergerson, both of Montgomery, Ala., were each sentenced to 115 months prison for their involvement in a conspiracy to file claims for false income tax refunds using stolen identities, the Justice Department and Internal Revenue Service (IRS) announced today. U.S. District Judge Mark Fuller ordered the Fergerson sisters to pay $504,305 in restitution to the IRS.
According to court documents, Loretta Fergerson owned and operated a tax return preparation business called Fast Tax Cash in Montgomery. From 2005 through 2008, Loretta and Tracey Fergerson filed tax returns using stolen identities in order to claim fraudulent tax refunds. Additionally, Loretta Fergerson and her employees filed tax returns for Fast Tax Cash customers that contained false information in order to obtain higher refunds for customers. Loretta Fergerson also created false driver’s licenses and false Social Security cards to be placed in customer files for returns that were prepared using stolen identities.
Court records established that Tracey Fergerson participated in the scheme by gathering stolen personal information and also by cashing refund checks for tax returns that were filed using the stolen personal information. Tracey Fergerson also recruited customers for Fast Tax Cash and coached them to provide false information in order to fraudulently increase their tax refund amounts. She further admitted that she improperly obtained personal information, including names and social security numbers, and used that personal information to have false tax returns prepared at Fast Tax Cash.
“The stolen identity refund fraud crimes committed by these defendants are an affront to honest, hard-working taxpayers,” said Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division. “The lengthy prison sentences handed down recently by this court, in this and other cases, show the high price that will be paid by identity thieves.”
“These unscrupulous defendants thought they had figured out a clever scheme to thwart the IRS and steal from American taxpayers,” said Richard Weber, Chief, IRS Criminal Investigation. “IRS Criminal Investigation has made investigating refund fraud and identity theft a top priority and we will vigorously pursue those who undermine the integrity of the U.S. tax system.”
Assistant Attorney General Keneally thanked Tax Division Trial Attorneys Chad Edgar and Michelle Petersen, who prosecuted the case, and special agents of IRS - Criminal Investigation, who provided valuable assistance in conducting the investigation.
Tuesday 15 May 2012
Two Aryan Brotherhood of Texas Gang Members Sentenced for Racketeering AssaultRead the Press Release
WASHINGTON – Two members of the Aryan Brotherhood of Texas (ABT) have been sentenced to federal prison for their role in an aggravated assault that took place in Tomball, Texas, in September 2008, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Benjamin Dillon, aka, “Tuff,” 39, was sentenced on May 11, 2012, to 41 months in prison. Justin Northrup, aka, “Ruthless,” 27, was sentenced to 63 months in prison on April 27, 2012.
The defendants, who are both from the greater Houston-area, pleaded guilty to racketeering aggravated assault for their role in an attack against an ABT prospect member. The defendants were sentenced by U.S. District Court Senior Judge Ewing Werlein Jr. in the Southern District of Texas.
According to court documents, both defendants were members of the Aryan Brotherhood of Texas (ABT), a powerful race-based, state-wide organization that operated inside and outside of state and federal prisons throughout Texas and the United States. The ABT was established in the early 1980s within the Texas prison system. As alleged in the indictment, it modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to court documents, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, however, the ABT has expanded its criminal enterprise to include illegal activities for profit.
The ABT enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, are required to follow the orders of higher-ranking members, often referred to as “direct orders.”
According to court documents, Dillon and Northrup, along with 10 fellow ABT gang members, participated in the beating of an ABT prospect member at the home of another ABT gang leader, Steven Walter Cooke, 48, aka “Stainless,” in Tomball, Texas, on Sept. 22, 2008. The ABT prospect, who sustained serious bodily injury, was beaten by ABT gang members because he violated certain ABT rules of conduct.
Eleven of the 12 co-defendants previously pleaded guilty to violent crimes in aid of racketeering aggravated assault. The 12th ABT gang member, David Harlow, aka, “Bam Bam,” 43, was found guilty at trial by Senior Judge Ewing Werlein Jr. on March 21, 2012.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the FBI; the U.S. Marshals Service; the Texas Rangers; the Texas Department of Public Safety; the Montgomery County, Texas, Sheriff’s Department; the Houston Police Department-Gang Division; Tomball Police Department; Texas Department of Criminal Justice – Inspector General; and the Harris County, Texas, Sheriff’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Jay Hileman of the Southern District of Texas in Houston.
Japanese Citizen Sentenced to 17 Years in Prison for Participating in International Child Pornography RingRead the Press Release
WASHINGTON – A Japanese citizen was sentenced yesterday in Los Angeles to 17 years in prison and lifetime supervised release for conspiracy to advertise child pornography, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California and Assistant Director in Charge Steve Martinez of the FBI’s Los Angeles Field Office announced today.
Futoshi Tachino, a Japanese citizen most recently residing in Winnipeg, Canada, was sentenced by U.S. District Judge Virginia A. Phillips. In March 2011, Tachino, 32, pleaded guilty to one count of conspiracy to advertise child pornography. Tachino was arrested in Chicago in July 2009.
The sentencing is the result of an international investigation into the “Lost Boy” online bulletin board. The Lost Boy bulletin board, according to court documents and proceedings, was dedicated to men who have a sexual interest in young boys and was established to provide a forum to trade child pornography.
Federal authorities, working in conjunction with a coalition of international law enforcement agencies, shut down the Lost Boy bulletin board approximately three years ago. As a result of the investigation, 16 named defendants, including Tachino, were charged in the United States and arrested for their roles in the bulletin board. To date, 15 defendants have pleaded guilty or have been convicted at trial, and one defendant died in custody. Approximately six more men have been charged with child molestation as a result of the investigation. The investigation also led to the identification of 27 domestic victims of child abuse, some of whom were portrayed in images posted to the Lost Boy bulletin board.
According to court documents and proceedings, law enforcement authorities discovered the Lost Boy bulletin board after receiving information from Eurojust, the judicial cooperation arm of the European Union. Eurojust provided U.S. law enforcement with leads obtained from Norwegian and Italian authorities indicating that a North Hollywood, Calif., man was communicating with an Italian national about child pornography and how to engage in child sex tourism in Romania. Acting on the information from Europe, the FBI executed search warrants that led to the discovery of the Lost Boy network. Further investigation revealed that Lost Boy had 35 members, 16 of whom were U.S. nationals. Other members of the network were located in countries around the world, including Belgium, Brazil, Canada, France, Germany, New Zealand and the United Kingdom.
According to court documents, Lost Boy had a thorough vetting process for new members, who were required to post child pornography to join the organization. Once accepted, members were required to continue posting child pornography to remain in good standing and to avoid removal from the board. According to court documents, Lost Boy members advised each other on techniques to evade detection by law enforcement, which included using screen names to mask identities and encrypting computer data.
International law enforcement efforts involving European law enforcement, the Brazilian Federal Police and other agencies have identified child molestation suspects in South America, Europe and New Zealand. Three suspects in Romania, one in France and another in Brazil have been charged, and offenders have been convicted in Norway and the United Kingdom. Law enforcement efforts have also identified dozens of child victims located in Norway, Romania, Brazil and other nations.
The investigation into the Lost Boy bulletin board was led by the FBI and the U.S. Postal Inspection Service, in conjunction with the Los Angeles-based Sexual Assault Felony Enforcement (SAFE) Team. The High Technology Investigative Unit of the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, along with Eurojust, have provided invaluable assistance during the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Joey L. Blanch and Yvonne Garcia of the Central District of California and CEOS Trial Attorney Andrew McCormack.
Monday 14 May 2012
Wilcox County, Georgia, Sheriff, Son and Jailer Face Civil Rights Charges in Superseding IndictmentRead the Press Release
The Justice Department, along with U.S. Attorney Michael J. Moore, Middle District of Georgia, today announced that a grand jury returned a superseding indictment against former Wilcox County Sheriff Stacy Bloodsworth; his son, Austin Bloodsworth; and former Wilcox County Jailer Casey Owens. The superseding indictment charges the defendants with assaulting three different inmates inside of the Wilcox County Jail on July 23, 2009, thereby violating their civil rights. As a result of the assaults, one inmate suffered a broken jaw, and two other inmates sustained bruises and scratches. The indictment also charges the defendants with conspiring to cover up the assaults. In addition, Stacy Bloodsworth and Austin Bloodsworth were charged with lying to the FBI, while Owens was charged with writing a false report about the incident. Stacy Bloodsworth was charged with tampering with one of the victims, as well as two witnesses.
In addition to the civil rights and obstruction of justice charges stemming from the assaults that took place on July 23, 2009, the superseding indictment also charges Stacy Bloodsworth with violating the civil rights of individuals on two other occasions. Former-Sheriff Bloodsworth is charged with assaulting Wilcox County Jail inmate M.A. in July 2009, causing him to suffer a laceration and pain. It also charges the former sheriff with assaulting N.S. in November 2009, causing him to suffer a concussion, bruising, and pain.
The civil rights charges carry a maximum penalty of 10 years for each count, and the conspiracy and false statements charges carry a maximum penalty of up to five years. Additionally, Stacy Bloodsworth faces a maximum penalty of 20 years for each count of witness tampering, while Owens faces a maximum penalty of 20 years for his writing a false report.
A prior indictment, which was unsealed on Feb. 17, 2012, charged Stacy Bloodsworth, Austin Bloodsworth, Owens and former Wilcox County Jail trustee Willie James Caruthers with civil rights violations in connection with the July 23, 2009, assault of the three inmates; with conspiring to cover up the assaults; and with committing various obstruction of justice offenses.
On April 4, 2012, defendant Caruthers pleaded guilty to acting with several others, including law enforcement officials, to assault an inmate in the Wilcox County Jail on July 23, 2009. Caruthers also pleaded guilty to conspiring to tamper with a witness in connection with the assault. During his plea hearing and in his factual basis, Caruthers admitted that he, along with several other individuals, including law enforcement officers, assaulted Wilcox County inmate K.H., causing K.H. to suffer a broken jaw. Caruthers further admitted that he was present when several individuals, including then-Sheriff Bloodsworth, assaulted inmates K.F. and T.O., causing both of them to sustain bruises, scratches and pain. Caruthers further admitted that he conspired with several other people, including Stacy Bloodsworth, to cover up the fact that law enforcement officials and others had used excessive force against inmates K.H., K.F. and T.O. Caruthers acknowledged that the plan of the conspiracy was for the co-conspirators to prepare false reports and submit them to Wilcox County Sheriff’s Office officials, and to make statements consistent with those false reports to anyone inquiring about the excessive use of force incident. When Caruthers is sentenced, he faces a maximum penalty of up to 10 years on the civil rights violation, and a maximum penalty of up to five years on the conspiracy charge.
On March 5, 2012, former South Central Georgia Drug Task Force Agent Timothy King Jr., 31, pleaded guilty to a bill of information charging him with conspiring to tamper with a witness in connection with the July 23, 2009 assaults of inmates K.H., K.F. and T.O. During his plea hearing, King admitted that he conspired with several other people, including a law enforcement official, to cover up the fact that law enforcement officials and others had used excessive force against the three inmates. When King is sentenced, he faces a maximum penalty of up to five years.
This case was investigated by the FBI and is being prosecuted by Senior Litigation Counsel Gerard V. Hogan and Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant United States Attorney Paul C. McCommon III of the U.S. Attorney’s Office for the Middle District of Georgia.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless and until proven guilty.
Related Materials:
Superseding Indictment
Nineteen-Year Police Veteran Convicted in Puerto Rico for Role in Providing Armed Security for Drug TransactionRead the Press Release
WASHINGTON – A 19-year veteran of the Police of Puerto Rico was convicted today by a federal jury in San Juan, Puerto Rico, for her role in providing security for a drug transaction, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Joseph S. Campbell of the FBI’s San Juan Field Office.
Yamil Navedo Ramirez, 39, was convicted of one count of attempting to possess with the intent to distribute more than five kilograms of cocaine and one count of possession of a firearm in furtherance of a drug transaction. She was acquitted of one count of conspiracy to possess with intent to distribute more than five kilograms of cocaine.
Navedo Ramirez was charged in a superseding indictment returned on Oct. 28, 2010, along with 88 law enforcement officers in Puerto Rico and 42 other individuals, as part of the FBI undercover operation known as Guard Shack.
According to the evidence presented in court, Navedo Ramirez provided security for what she believed was an illegal drug transaction on April 14, 2010. In fact, the purported drug transaction was part of the undercover FBI operation. According to information presented at trial, Navedo Ramirez acted as a security guard for what she believed was a 12-kilogram cocaine deal by helping to frisk the buyer, providing armed protection for the deal using her Police of Puerto Rico service weapon, and escorting the buyer in and out of the transaction.
In return for the security she provided, Navedo Ramirez received a cash payment of $2,000.
U.S. District Judge Juan Pérez-Giménez scheduled sentencing for Sept. 21, 2012. At sentencing, Navedo Ramirez faces a mandatory minimum sentence of 15 years in prison and a maximum penalty of life in prison.
The case was prosecuted by Trial Attorneys Kevin Driscoll and Monique Abrishami of the Public Integrity Section in the Justice Department’s Criminal Division. The case was investigated by the FBI. The U.S. Attorney’s Office for the District of Puerto Rico also participated in the investigation and prosecution of this case.
New Mexico Man Pleads Guilty to Stolen Identity Refund Fraud CrimesRead the Press Release
Douglas Kuester, a tax preparer from Silver City, N.M., pleaded guilty Friday to one count each of filing false claims and aggravated identity theft the Justice Department and the Internal Revenue Service (IRS) announced today. Kuester was indicted on Jan. 18, 2012.
According to the plea agreement, Kuester used stolen identities to file false tax returns which fraudulently claimed refunds. He would direct the fraudulently obtained refunds to various bank accounts and prepaid debit cards, retaining portions of the proceeds for himself.
The case was investigated by Special Agents of IRS - Criminal Investigation and prosecuted by Trial Attorneys Jason H. Poole and Gregory P. Bailey of the Justice Department’s Tax Division. Tax Division Assistant Attorney General Kathryn Keneally thanked U.S. Attorney Kenneth J. Gonzales and his entire office their assistance in the prosecution.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Justice Department to Monitor Elections in NebraskaRead the Press Release
The Justice Department announced today that it will monitor the primary elections on May 15, 2012, in Colfax and Douglas Counties in Nebraska, to ensure compliance with the Voting Rights Act of 1965 and other federal voting rights statutes. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group. In addition, the Act requires Colfax County to provide language assistance in Spanish during the election process.
Under the Voting Rights Act, the Justice Department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the attorney general or by a federal court order. Federal observers will be assigned to monitor polling place activities in Colfax County based on a federal court order entered in 2012. The observers will watch and record activities during voting hours at polling locations in these counties, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, Justice Department personnel will monitor polling place activities in Douglas County. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Alabama Pharmacist and Wife Plead Guilty to Tax Fraud ConspiracyRead the Press Release
Thomas K. Frye and Kathy M. Frye, husband and wife, and residents of Andalusia, Ala., pleaded guilty to conspiring to defraud the United States, the Justice Department and the Internal Revenue Service (IRS) announced today.
According to court documents, beginning in 1999, the Fryes conspired to defraud the United States by submitting IRS forms to their employers that falsely claimed they were exempt from federal income taxes. When the IRS attempted to collect back taxes owed by the Fryes, Thomas Frye submitted false financial instruments to the IRS in purported payment of his and his wife’s tax liability. In one such instrument, Mr. Frye represented to the IRS that the false instrument had a value of $100 billion. Court records also established that, as part of the conspiracy, the Fryes filed false federal income tax returns for the years 2000 through 2007 that substantially understated their incomes.
Sentencing has not yet been scheduled. The Fryes face a potential maximum of five years in prison, three years of supervised release, an order of restitution and a maximum fine of $250,000, or twice the loss caused by the offense.
Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division thanked the Special Agents of IRS - Criminal Investigation who investigated the case, Tax Division Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler, who are prosecuting the case, and United States Attorney George L. Beck, Jr. and his entire office for their assistance with the prosecution.
More information about the Tax Division and its enforcement efforts is available at http://www.justice.gov/tax.
Friday 11 May 2012
Virginia Anesthesiologist Pleads Guilty to Filing False Tax ReturnsRead the Press Release
George Anderson, 57, an anesthesiologist from Farmville, Va., pleaded guilty today to two counts of filing a false corporate and false individual income tax return, the Justice Department and Internal Revenue Service (IRS) announced.
Anderson is facing a maximum potential sentence of six years in prison when he is sentenced on Sept. 14, 2012, by Chief United States District Judge James R. Spencer.
According to court records, Anderson was the sole owner of Farmville Anesthesia Associates Inc. He attempted to reduce his business tax liability to zero by diverting income to sham entities, such as trusts; deducting the diverted payments on the business’s tax returns; and not reporting the personal use of the diverted funds on his personal tax returns.
Beginning in 2001, Anderson disbursed hundreds of thousands of dollars worth of bogus expenses out of Farmville Anesthesia’s bank accounts to bank accounts held in the names of trusts and limited liability companies Anderson himself controlled. He then falsely deducted these payments on Farmville Anesthesia’s corporate income tax returns. Later, Anderson spent substantial funds out of the nominee bank accounts for his personal benefit, including for the construction of his personal residence and did not report this income on his personal tax returns. In his guilty plea, Anderson admitted that he filed a false 2007 corporate income tax return on behalf of Farmville Anesthesia Associates. He also admitted to filing a false 2005 personal income tax return.
This case was investigated by agents of IRS-Criminal Investigation. Trial Attorney Jonathan R. Marx of the Justice Department’s Tax Division and Assistant United States Attorney David T. Maguire are prosecuting the case on behalf of the United States.
Three Former Financial Services Executives Convicted for Roles in ConspiraciesInvolving Investment Contracts for the Proceeds of Municipal BondsRead the Press Release
A federal jury in New York City today convicted three former financial services executives for their participation in conspiracies related to bidding for contracts for the investment of municipal bond proceeds and other municipal finance contracts , the Department of Justice announced.
Dominick P. Carollo, Steven E. Goldberg and Peter S. Grimm, all former executives of General Electric Co. (GE) affiliates, were found guilty on all remaining counts of a superseding indictment in the U.S. District Court for the Southern District of New York. Carollo was found guilty on two counts of conspiracy to commit wire fraud and defraud the United States, Goldberg was found guilty on four counts of conspiracy to commit wire fraud and defraud the United States and Grimm was found guilty on three counts of conspiracy to commit wire fraud and to defraud the United States.
The trial began on April 16, 2012. Carollo, Goldberg and Grimm were initially indicted on July 27, 2010.
“The defendants corrupted the competitive bidding process and defrauded municipalities across the country for years,” said Deputy Assistant Attorney General Scott D. Hammond of the Antitrust Division. “Through corruption and fraud, they cheated cities and towns out of money for important public works projects. Today’s convictions reflect our determination to preserve fairness and competition in the financial services market.”
According to evidence presented at trial, while employed at GE affiliates, Carollo, Goldberg and Grimm participated in separate fraud conspiracies with various financial institutions and insurance companies and their representatives at various time periods from as early as 1999 until 2006. These institutions and companies, or “providers,” offered a type of contract, known as an investment agreement, to state, county and local governments and agencies throughout the United States. The public entities were seeking to invest money from a variety of sources, primarily the proceeds of municipal bonds that they had issued to raise money for, among other things, public projects. Goldberg also participated in the conspiracies while employed at Financial Security Assurance Capital Management Services LLC (FSA)
According to evidence presented at trial, Carollo, Goldberg and Grimm and their co-conspirators corrupted the bidding process for dozens of investment agreements to increase the number and profitability of investment agreements awarded to the provider companies where they were employed. Carollo, Goldberg and Grimm deprived the municipalities of competitive interest rates for the investment of tax-exempt bond proceeds that were to be used by municipalities for various public works projects, such as for building or repairing schools, hospitals and roads. Evidence at trial established that they cost municipalities around the country millions of dollars.
“Fundamentally, this case is about fraud in the investment of public money,” said Janice K. Fedarcyk, Assistant Director in Charge of the FBI in New York. “The actions of the defendants denied public entities the benefits of true competitive bidding, and artificially depressed the yield on invested public funds.”
“Today’s convictions are an important step forward in the coordinated effort by the IRS and the Department of Justice to aggressively rid the municipal bond industry of unfair and corrupt practices,” said Internal Revenue Service (IRS)-Criminal Investigation (IRS-CI) Special Agent in Charge Victor W. Lessoff. “Moreover, the convictions represent an important victory for America’s taxpayers, especially those who live in the municipalities harmed by the actions of the defendants.”
A total of eighteen individuals have been charged as a result of the department’s ongoing municipal bonds investigation. Including today’s convictions, a total of 15 individuals have been convicted and three await trial. Additionally, one company has pleaded guilty.
Each of the fraud conspiracy charges carries a maximum penalty per count of five years in prison and a $250,000 fine. The maximum fines for the fraud conspiracy offense may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The verdict announced today resulted from an ongoing investigation conducted by the Antitrust Division’s New York Office, the FBI and the IRS-CI. The division is coordinating its investigation with the U.S. Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.
Today’s convictions are part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force, visit www.StopFraud.gov.
Anyone with information concerning bid rigging and related offenses in any financial markets should contact the Antitrust Division’s New York Field Office at 212-335-8000, the FBI at 212-384-5000 or IRS-CI at 212-436-1761, or visit www.justice.gov/atr/contact/newcase.htm.
Rhode Island-based Sellers of Herbal ProductsHeld in ContemptRead the Press Release
A U.S. district court judge has held Daniel Chapter One, an herbal products company located in Portsmouth, R.I., and its officers, James and Patricia Feijo, in civil contempt of court for violating the terms of a preliminary injunction order, the Justice Department announced today.
In 2008, the Federal Trade Commission (FTC) charged Daniel Chapter One and James Feijo with making deceptive claims that shark cartilage and certain other herbal formulations prevent, treat, and cure cancer, and lessen the side effects of chemotherapy and radiation. The lawsuit was part of Operation False Cures, a law enforcement sweep conducted by the FTC, the U.S. Food and Drug Administration, and the Competition Bureau Canada aimed at peddlers of phony cancer remedies.
Following an administrative hearing and appeal, in January 2010 the FTC ordered defendants to send a letter notifying purchasers that the FTC had found the advertising claims for the products deceptive because they were unsubstantiated. The FTC further ordered defendants to stop making health claims about their products unless the claims were substantiated by scientific evidence.
Defendants refused to comply with the FTC’s Order. At the FTC’s request, the Department of Justice’s Consumer Protection Branch sued Daniel Chapter One and James Feijo in federal district court seeking civil penalties for the violations of the FTC’s order and a court order requiring compliance with the FTC order The District Court entered a preliminary injunction requiring defendants to comply with the FTC Order.
Nevertheless, Daniel Chapter One, James Feijo, and his wife, Patricia Feijo, continued to tell consumers that their products could treat and cure cancer, and refused to send the corrective notice to past purchasers. The United States then sought civil contempt sanctions against the defendants.
Following a hearing on May 9, 2012, Judge Emmet G. Sullivan of the U.S. District Court for the District of Columbia found that clear and convincing evidence demonstrated that Daniel Chapter One, James Feijo, and Patricia Feijo were violating the preliminary injunction through statements on their radio show, statements on their websites, and by failing to send the corrective notice.
The court has provided the defendants with two weeks to remove the offending statements from their websites, send the corrective notice, and make a sufficient representation to the court that they will cease making the offending statements on their radio show. If they fail to do so, they will begin accruing fines and face imprisonment for their contempt of court.
“Those who make unsubstantiated claims that their products can cure cancer are taking advantage of extremely vulnerable Americans,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “In today’s online world, it can be hard to identify where the truth ends and the scam begins. The Department of Justice is committed to protecting consumers from bogus cancer cures.”
Marketers of phony cancer treatments tend to use tactics like the following:
• Claiming that the same treatment will work for everybody and every type of cancer;
• Advising customers to avoid surgery, radiotherapy, chemotherapy, and other conventional treatments;
• Using customer testimonials to “prove” the effectiveness of the treatment;
• Offering “miracle” treatments for serious illnesses;
• Discrediting scientific studies, the Food and Drug Administration, and doctors.
Additional information on how to spot a scam or bogus cancer cure is available on the Federal Trade Commission’s website at: www.ftc.gov/bcp/edu/microsites/curious/index.shtml. The corrective notice defendants must send their customers states that it is important for consumers to talk to their doctor or health care provider before deciding to take any herbal product instead of taking cancer treatments that have been scientifically proven to be safe and effective in humans.
Related Materials:
Civil Contempt Order
Principal of Offshore Brokerage Firm Sentenced in Miami to 20 Years in Prison for $7 Million Stock Manipulation ScamRead the Press Release
WASHINGTON – The principal of a Costa Rican brokerage firm was sentenced today in Miami to 20 years in prison for his role in a stock manipulation scheme that defrauded investors in a company called CO2 Technologies, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Chief Postal Inspector Guy Cottrell of the U.S. Postal Inspection Service (USPIS) and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.
Jonathan Curshen, 47, the principal of Red Sea Management and Sentry Global Securities, was sentenced by U.S. District Judge Richard W. Goldberg. Red Sea Management and Sentry Global Securities are companies located in San Jose, Costa Rica, that provided offshore accounts and facilitated trading in penny stocks.
In addition to his prison term, Curshen was sentenced to serve three years of supervised release and was ordered to forfeit approximately $7.3 million. Curshen and his co-defendant, Las Vegas stock promoter Nathan Montgomery, were convicted by a jury in January 2012 on all counts. Montgomery, 31, is scheduled to be sentenced by Judge Goldberg later today.
The evidence at trial showed that in January and February 2007, Curshen, of Costa Rica and Sarasota, Fla., and Montgomery, of Las Vegas, were involved in a scheme to illegally manipulate the stock price of CO2 Tech (ticker CTTD).
Evidence at trial showed that Curshen’s and Montgomery’s co-conspirators controlled the outstanding shares of CO2 Tech, which were used in the stock manipulation scheme. Montgomery and his conspirators engaged in coordinated trades in conjunction with the issuance of false and misleading press releases that were designed to artificially inflate the price of CO2 Tech shares to make it appear that it had significant business prospects. According to these press releases, CO2 Tech purported to have a business relationship with Boeing to reduce polluting gases emitted from airplanes, when in fact CO2 Tech never had any business or relationship with Boeing.
According to the evidence at trial, Montgomery and his co-conspirators, Robert Weidenbaum, Timothy Barham Jr., Ryan Reynolds and others fraudulently “pumped” the market price and demand for CO2 Tech stock through these press releases and coordinated trades of shares of CO2 Tech stock in order to create the appearance of legitimate buying interest by legitimate investors. The evidence showed that as Montgomery and his conspirators pumped the price of the stock, Curshen and his conspirators facilitated the “dumping” of shares through the trading desk at Red Sea and Sentry Global Securities by selling the shares to the general investing public. The evidence showed that these shares, which became virtually worthless, were purchased by unsuspecting investors, including investors in the Southern District of Florida. The evidence showed that Montgomery, Weidenbaum, Reynolds and Barham were paid approximately $1 million in cash by their conspirators to participate in sham stock trades of CO2 Tech. The cash was delivered to them in Miami via a private jet from an airport outside New York.
The evidence further showed that, from approximately 2003 through 2008, Curshen operated Red Sea as a money laundering hub in Costa Rica that established bank accounts and brokerage accounts in the United States and Canada under false pretenses and through nominee owners. The evidence further showed that Curshen and his co-conspirators laundered the proceeds of the stock fraud from accounts in the United States to an account in Canada, all in an effort to conceal and disguise the nature and source of the proceeds.
Stock promoters Barham and Weidenbaum were sentenced yesterday to 30 months and 26 months in prison, respectively. Michael Krome, a securities attorney from New York, who participated in the conspiracy and evaded federal securities registration requirements, was sentenced yesterday to 34 months in prison. Reynolds is scheduled to be sentenced at a later date.
The case was investigated by the FBI’s Washington Field Office and the USPIS. The case is being prosecuted by Trial Attorneys N. Nathan Dimock and Rina Tucker Harris of the Fraud Section in the Justice Department’s Criminal Division. The U.S. Attorney’s Office for the Southern District of Florida provided significant assistance in this case. The Department of Justice acknowledges the significant assistance of the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC) in its investigation. The criminal case originated as a referral from the SEC, which has a pending parallel civil case. The Criminal Division’s Office of International Affairs and Costa Rican authorities also provided assistance.
The Department of Justice has established a website for potential victims of the crime, which may be accessed at www.justice.gov/criminal/vns/caseup/, under case numbers 11-cr-20121 and 12-cr-20049. Potential victims are urged to contact the Department of Justice as directed on the website.
This prosecution is part of efforts under way by the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Nebraska Man Sentenced to 18 Months in PrisonRead the Press Release
WASHINGTON – An Omaha, Neb., man was sentenced today in Omaha to 18 months in prison for committing wire fraud while serving a term of supervised release as part of a scheme to obtain corrupt payments from an individual facing criminal charges in return for a promised reduction in the individual’s prison sentence, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Austin Galvan, 30, was sentenced by U.S. District Judge Joseph F. Bataillon for the District of Nebraska. In addition to his prison term, Galvan was ordered to serve three years of supervised release following the prison term and to pay $1,300 in restitution.Galvan pleaded guilty on Feb. 6, 2012. According to court documents, Galvan told an associate who was facing federal criminal charges that Galvan had a law enforcement contact who could secure a substantial reduction in his associate’s prison sentence in exchange for corrupt payments. Galvan, in fact, had no such contact. At the time, Galvan was serving a term of supervised release.
According to his plea agreement, in subsequent conversations, Galvan urged his associate not to cooperate with federal authorities. Galvan admitted that he used the ruse of his fake law enforcement contact to solicit $ 21,300 in corrupt payments. Galvan also admitted that he provided his associate with what Galvan claimed was official material received from his purported law enforcement contact, including an audio recording of a court hearing and the business card of a federal judge who would assist in securing the sentence reduction. In fact, the federal judge was not handling the case and the audio recording was available to the public.
The case was prosecuted by Trial Attorneys Kevin Driscoll and Barak Cohen of the Criminal Division’s Public Integrity Section. The case was investigated by the FBI’s Omaha Division.
Justice Department to Monitor Elections in TexasRead the Press Release
The Justice Department announced today that it will monitor municipal elections on May 12, 2012, in Dallas, Galveston, and Jasper Counties in Texas to ensure compliance with the Voting Rights Act of 1965. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Under the Voting Rights Act, the Justice Department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the attorney general or by a federal court order. Federal observers will be assigned to monitor polling place activities in Dallas and Galveston Counties based on the attorney general’s certification. The observers will watch and record activities during voting hours at polling locations in these counties, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, Justice Department personnel will monitor polling place activities in Jasper County. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Health Care Providers Settle with Justice Department over Complaints of HIV DiscriminationRead the Press Release
The Justice Department announced that it has reached two settlements today resolving claims that health care providers refused to serve people with HIV in violation of the Americans with Disabilities Act (ADA).
The first complaint was filed by a man with HIV who went to the Mercy Medical Group Midtown Clinic in Sacramento, Calif. After meeting with the patient and examining him, a podiatrist at the clinic informed the patient of his treatment options. Although surgery was one of the treatment options, the podiatrist incorrectly told the patient that he could not perform the surgery because of a risk that he would contract HIV from the patient during surgery. The United States determined that the podiatrist’s actions violated the ADA by denying the patient the full and equal enjoyment of the services offered at the clinic on the basis of his disability.
The second complaint was filed by a man with HIV who went to the Knoxville Chiropractic Clinic North in Knoxville, Tenn., for chiropractic treatment following an automobile accident. After examining him, the doctor determined that the patient required 24 subsequent appointments to treat his injuries. On his third visit to the clinic, however, the receptionist informed him that the doctor would not see him because they could not treat people “like him.” The United States determined that Knoxville Chiropractic Centers had a blanket policy of refusing treatment to persons with HIV in violation of the ADA.
“It is critical that people with disabilities, including HIV, not be denied equal access to goods and services, especially to health care services. The Civil Rights Division takes discrimination based on unfounded fears and stereotypes about HIV very seriously,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “We applaud Mercy Medical Group and CHW Medical Foundation, as well as Knoxville Chiropractic Centers, for working cooperatively with the Justice Department to resolve these matters quickly and fairly.”
The settlement agreements require the entities to develop and implement a non-discrimination policy and to train staff on the requirements of the ADA. In addition, Mercy Medical Group and CHW Medical Foundation are required to pay $60,000 to the complainant and $25,000 as a civil penalty, and Knoxville Chiropractic Centers is required to pay $10,000 as a civil penalty.
The ADA requires public accommodations, like doctors’ offices, medical clinics, hospitals and other health care providers, to provide individuals with disabilities, including people with HIV, equal access to goods, services, privileges, accommodations, facilities, advantages and accommodations.
The Department of Justice provides a webpage specifically dedicated to information about the ADA and HIV at www.ada.gov/aids. Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
Georgia County Commissioner Charged with Attempted Extortion, Bribery and False StatementsRead the Press Release
WASHINGTON – A county commissioner in Sumter County, Ga., was indicted today for his alleged role in soliciting illicit payments in exchange for his official efforts to secure government contracts for a private contractor, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney for the Middle District of Georgia Michael J. Moore announced.
Al J. Hurley, 54, is charged in a three-count indictment filed in the Middle District of Georgia with attempted extortion, bribery and false statements. According to the indictment, Hurley was an elected member of the five-member Sumter County Board of Commissioners in Sumter County. As the primary governing body for the county, the Board of Commissioners presided over a variety of official matters, including the bidding process for and award of various county contracts.
The indictment alleges that from September to December 2011, Hurley, in his capacity as a county commissioner, solicited and agreed to accept cash payments, including $5,000 on Oct. 23, 2011, and $15,000 on Dec. 19, 2011, from a private contractor, in exchange for Hurley’s use of official action and influence to facilitate the award of county contracting work to the contractor. In addition, according to the indictment, on Dec. 19, 2011, Hurley lied to special agents of the FBI when he falsely claimed that he never solicited money from the contractor.
If convicted of attempted extortion, Hurley faces 20 years in prison and a $250,000 fine. On the bribery charge, Hurley faces 10 years in prison and a $250,000 fine. The false statement charge carries a maximum five year prison sentence and an additional $250,000 fine.
This case is being prosecuted by Trial Attorney Eric G. Olshan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia. This case was investigated by the FBI.
Former New England Organized Crime Leader and Associate Sentenced for Racketeering and Extortion ActivitiesRead the Press Release
WASHINGTON – Luigi “Louie” Manocchio, an admitted former boss and underboss of the New England La Cosa Nostra (NELCN), was sentenced today to 66 months in federal prison for his leadership of and participation in a racketeering and extortion conspiracy that demanded and received between $800,000 and $1.5 million in “protection” payments from several Rhode Island adult entertainment businesses from 1995-2009.
Raymond R. “Scarface” Jenkins, an admitted associate of the NELCN, was also sentenced today to 37 months in prison for his admitted participation in a conspiracy to extort $25,000 from a Rhode Island individual and his wife by using implied threats of violence, including a visit to the individual’s residence.
The sentences were announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Peter F. Neronha, U.S. Attorney for the District of Rhode Island; Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Providence, R.I., Public Safety Commissioner Steven M. Pare.
Manocchio and Jenkins were sentenced by U.S. District Court Judge William E. Smith in the District of Rhode Island. Manocchio, 84, was also sentenced to serve three years of supervised release following his prison sentence. Jenkins, 47, was sentenced to serve three years of supervised release following his prison sentence.
Manocchio pleaded guilty on Feb. 22, 2012, to one count of racketeering conspiracy and Jenkins pleaded guilty on Feb. 23, 2012, to one count of conspiracy to violate the Hobbs Act by participating in extortion.
Manocchio and Jenkins are among eight Rhode Island men charged in a second superseding indictment returned on Sept. 22, 2011, for crimes involving racketeering and extortion. Edward “Eddy” Lato, an NELCN leader; NELCN member Alfred “Chippy” Scivola; and NELCN associates Albino “Albie” Folcarelli, Thomas Iafrate and Richard Bonafiglia pleaded guilty to participating in racketeering and extortion activities. Iafrate was sentenced on Dec. 12, 2011, to 30 months in prison to be followed by three years of supervised release. The remaining defendants are awaiting sentencing.
An eighth defendant named in the second superseding indictment, Theodore Cardillo, pleaded not guilty to three counts of racketeering conspiracy and three counts of extortion conspiracy. He is awaiting trial.
A third superseding indictment was returned in this matter on April 24, 2012, which charges Anthony L. Dinunzio, 53, of East Boston, Mass., the alleged acting leader of the NELCN, with one count each of racketeering and extortion, and five counts of travel in aid of racketeering. He entered a plea of not guilty on April 25, 2012, and was ordered detained while awaiting trial.
The cases are being prosecuted by Assistant U.S. Attorney William J. Ferland for the District of Rhode Island and Trial Attorney Sam Nazzaro of the Criminal Division’s Organized Crime and Gang Section. The matter was investigated by the FBI, Rhode Island State Police, Providence Police and Internal Revenue Service – Criminal Investigation.
Department of Justice Seizes More Than $1.5 Million in Proceeds from the Online Sale of Counterfeit Sports Apparel Manufactured in ChinaRead the Press Release
WASHINGTON – The Department of Justice has seized more than $1.5 million in proceeds from the distribution of counterfeit sports apparel and jerseys as the result of an investigation into the sale of counterfeit goods on commercial websites, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the District of Columbia Ronald C. Machen Jr. and John Morton, Director of the Department of Homeland Security’s Immigration and Customs Enforcement (ICE).
The investigation also resulted in the seizure of three domain names used in the sale of counterfeit sports apparel. The funds were seized from interbank accounts and six money service business accounts. The seizure warrants were unsealed in U.S. District Court in the District of Columbia on May 7, 2012.
The developments are the latest result of Operation In Our Sites, a law enforcement initiative targeting online commercial intellectual property crime announced by ICE’s Office of Homeland Security Investigations (HSI) in June 2010. Operation In Our Sites targeted online retailers of a diverse array of counterfeit goods, including sports equipment, shoes, handbags, athletic apparel, sunglasses and DVD boxed sets. To date, 761 domain names of websites used in the sale and distribution of counterfeit goods and illegal copyrighted works have been seized as a result of Operation In Our Sites.Additionally, last month, the Department of Justice seized more than $896,000 in proceeds from the sale of counterfeit sports apparel on commercial websites as part of Operation In Our Sites.
According to court documents, investigation by federal law enforcement agents revealed that subjects whose domain names had been seized in a November 2010 In Our Sites operation continued to sell counterfeit goods using new domain names. In particular, the individuals, based in China, sold counterfeit professional and collegiate sports apparel, primarily counterfeit sports jerseys. Law enforcement agents made numerous undercover purchases from the websites associated with the new domain names. After the goods were confirmed to be counterfeit or infringing, seizure warrants for three domain names used to sell the infringing goods were obtained from a U.S. Magistrate Judge in U.S. District Court for the District of Columbia.
The individuals conducted sales and processed payments for the counterfeit goods using money service business accounts and then wired their proceeds to bank accounts held at a Chinese bank, the court documents state.
Under warrants issued by a U.S. District Judge, law enforcement agents seized $1,455,438.72 in proceeds that had been transferred from the money service business accounts to various bank accounts in China. The funds were seized from correspondent, or interbank, accounts held by the Chinese bank in the United States. Under additional seizure warrants issued by a U.S. Magistrate Judge, law enforcement agents also seized $94,730.12 in funds remaining in six money service business accounts used by the subjects.
“The seizures we are announcing today are another step forward in our efforts to disrupt and disable those engaged in intellectual property crime,” said Assistant Attorney General Breuer. “By seizing the domain names and profits of online counterfeit goods operations, we are protecting consumers and sending a message to criminals that we will use every tool at our disposal to stop them.”
“Within a matter of weeks, this law enforcement operation has seized more than $2.4 million in proceeds from individuals overseas who are preying on the American economy and consumers with their sales of counterfeit goods,” said U.S. Attorney Machen. “We will continue to work with our law enforcement partners to target these unscrupulous operators where it hurts them the most – at the bank.”
“ICE will continue to target those who traffic in counterfeit goods by attacking the financial profits of counterfeiting sites and shutting them down,” said ICE Director Morton. “Operation In Our Sites and the tireless work of the National Intellectual Property Rights Coordination Center protect consumers from fraud on the Internet and combat intellectual property theft which exacts a toll on our economy and industries.”
The investigation was conducted by the National Intellectual Property Rights Center and ICE-HSI. The case is being prosecuted by Assistant U.S. Attorneys Jonathan Hooks and Diane Lucas of the District of Columbia, Senior Trial Attorney Pamela Hicks and Trial Attorney Katharine Wagner of the Asset Forfeiture and Money Laundering Section and Trial Attorney Thomas Dougherty of the Computer Crime and Intellectual Property Section in the Justice Department’s Criminal Division.This enforcement action is one of many efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force). Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce/.
Thursday 10 May 2012
Vice Lords Gang Member Who Escaped Prison After Murder Conviction in Tennessee Sentenced to Life in PrisonRead the Press Release
WASHINGTON – Vice Lords gang member Jessie Lobbins was sentenced today in Nashville, Tenn., to life in prison by Chief U.S. District Judge Todd J. Campbell, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.
On Aug. 23, 2011, Lobbins, 26, aka “Jessie Oliver” and “Trap,” of Memphis, Tenn., along with co-defendants Roger Wayne Battle, 30, aka “T-Wayne,” of Nashville, Tenn., and Gary Eugene Chapman, 32, aka “Wheat,” of Morristown, Tenn., were found guilty by a federal jury in Nashville of numerous violent crimes. To date, six other individuals have pleaded guilty to various crimes related to their involvement in the Vice Lords gang.Specifically, Lobbins was found guilty on six counts, including for his role in the murder of Brandon Harris, aka “Chicago”; conspiracy to commit murder in aid of racketeering; carrying and using firearms during and in relation to crimes of violence; assault with a dangerous weapon resulting in serious bodily injury of a federal inmate in aid of racketeering; and tampering with a witness. In addition, on March 21, 2012, Lobbins pleaded guilty to escaping from the custody of the Attorney General on Nov. 30, 2011, while being housed at the Robertson County, Tenn., jail.
According to evidence presented at trial, Battle, leader of the Traveling Vice Lords, holding the rank of Five Star Universal Elite and controlling the Middle and East Tennessee regions, and Lobbins, a member of the Traveling Vice Lords, shot and killed Harris on Feb. 10, 2008. Battle believed that Harris, who was a member of the Mickey Cobras, a gang aligned with the Vice Lords, had made statements regarding Battle having some involvement in the death of Donnell Valentine, aka “Hitman,” the leader of the Conservative Vice Lords in Murfreesboro, Tenn. Subsequently, Battle lured Harris to O’Charley’s, a restaurant on Bell Road in Nashville, under the guise of a drug transaction. Lobbins accompanied Battle to the location. Battle and Lobbins then led Harris to Rice Road in Antioch, Tenn., where Battle and Lobbins shot Harris to death.
Evidence presented at trial also established that on Nov. 21, 2009, Lobbins, while being housed at the Davidson County Criminal Justice Center in Nashville on the current charges, assaulted inmate Maurice Boyd for providing information to federal authorities regarding a homicide involving Lobbins’s fellow gang members. Specifically, Lobbins violently attacked Boyd with a sharp object, cutting Boyd on the face, back and left forearm. Although Boyd survived the attack, he was treated at Vanderbilt University Medical Center in Nashville, where he received more than 200 stitches.
Co-defendants Chapman and Battle are scheduled to be sentenced on June 6, 2012, and June 8, 2012, respectively.
The investigation was a joint operation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Murfreesboro Police Department; and the Metropolitan Nashville Police Department. The case was prosecuted by Assistant U.S. Attorney Van S. Vincent for the Middle District of Tennessee and Trial Attorney Cody L. Skipper of the Criminal Division’s Organized Crime and Gang Section.Two Stock Promoters, a Stock Trader and a Securities Lawyer Sentenced to Prison for Their Roles in a $7 Million Fraudulent Stock Manipulation SchemeRead the Press Release
WASHINGTON – Two stock promoters, a securities lawyer and a stock trader associated with a Costa Rican brokerage firm were sentenced today in the Southern District of Florida for their participation in a stock manipulation scheme that defrauded investors in a company called CO2 Technologies, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Chief Postal Inspector Guy Cottrell of the U.S. Postal Inspection Service (USPIS) and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.
U.S. District Judge Richard W. Goldberg in Miami sentenced Michael Krome, 50, a securities attorney from New York, to 34 months in prison. Stock promoters Timothy Barham Jr., 44, of Tennessee, and Robert Weidenbaum, 46, of Miami, were sentenced by Judge Goldberg to 30 months and 26 months in prison, respectively. Krome, Barham and Weidenbaum previously pleaded guilty to conspiring to commit securities fraud, mail fraud and wire fraud. Krome was ordered to forfeit $17,490; Barham was ordered to forfeit $250,000; and Weidenbaum was ordered to forfeit $360,000.
In a separate but related case, former stock trader David Ricci, 41, was sentenced by Judge Goldberg to 18 months in prison. Ricci previously pleaded guilty to one count of conspiring to commit securities fraud, wire fraud and mail fraud. Ricci had been employed as a stock trader at Sentry Global Securities, part of a company called Red Sea Management, an offshore brokerage firm that was based in San Jose, Costa Rica.
Two codefendants, Jonathan Randall Curshen, 47, the head of Red Sea Management and Sentry Global Securities, and Las Vegas stock promoter Nathan Montgomery, 31, were convicted of all counts after a two-week trial in January of this year. Curshen and Montgomery are scheduled to be sentenced by Judge Goldberg in Miami on May 11, 2012. Another codefendant, Ryan Reynolds, 40, of Dallas, awaits sentencing on his guilty plea to one count of conspiracy to commit securities fraud, wire fraud and mail fraud.
Weidenbaum and Barham admitted that they and others fraudulently “pumped” the market price and demand for CO2 Tech stock through false and misleading press releases. They also admitted to engaging in secret coordinated trades of shares of CO2 Tech stock in order to create the appearance of legitimate buying interest by legitimate investors. Ricci admitted that as the stock promoters pumped the price of the stock, Ricci and his conspirators facilitated the “dumping” of shares through the trading desk at Red Sea Management and Sentry Global Securities by selling the shares to the general investing public. Weidenbaum and Barham also admitted that they and other conspirators were paid approximately $1 million in cash to buy CO2 Tech stock in order to inflate its price. The cash was delivered to them in Miami via a private jet from an airport outside New York. The stock manipulation scheme generated approximately $7 million in illegal proceeds.
Krome admitted that he participated in the conspiracy by evading federal securities registration requirements to facilitate the issuance of millions of unregistered and “free trading” shares of CO2 Tech that were used to execute the stock manipulation. According to the indictment, the plan was orchestrated by two Israeli nationals, Eric “Ariav” Weinbaum and Izahack Zigdon, who are both fugitives. Also charged was Ronny Salazar Morales, another trader at Sentry Global Securities and Red Sea Management. Salazar is also a fugitive.
The case was investigated by the FBI’s Washington Field Office and the USPIS. The case is being prosecuted by Trial Attorneys N. Nathan Dimock and Rina Tucker Harris of the Fraud Section in the Justice Department’s Criminal Division. The U.S. Attorney’s Office for the Southern District of Florida provided significant assistance in this case. The Department of Justice acknowledges the significant assistance of the Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC) in its investigation. The criminal case originated as a referral from the SEC, which has a pending parallel civil case. The Criminal Division’s Office of International Affairs and Costa Rican authorities also provided valuable assistance.
The Department of Justice has established a website for potential victims of the crime, which may be accessed at www.justice.gov/criminal/vns/caseup/, under case numbers 11-cr-20121 and 12-cr-20049. Potential victims are urged to contact the Department of Justice as directed on the website.
This prosecution is part of efforts under way by the Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
El Departamento de Justicia Entabla Demanda en Arizona contra el Condado de Maricopa, la Oficina del Alguacil y el Alguacil del Condado de Maricopa Joseph ArpaioRead the Press Release
WASHINGTON - El Departamento de Justicia entabló hoy una demanda civil en el tribunal federal contra el Condado de Maricopa, la Oficina del Alguacil del Condado de Maricopa [Maricopa County Sheriff’s Office (MCSO)] y el Alguacil Joseph M. Arpaio, debido a actos inconstitucionales e ilícitos cometidos por los demandados.
La demanda se entabla después de una investigación exhaustiva e independiente iniciada en junio de 2008, de acuerdo con la Sección 14141 de la Ley de Control de Delitos Violentos y Coacción Legal de 1994 y el Título VI de la Ley de Derechos Civiles de 1964. El 15 de diciembre de 2011, el departamento emitió una carta de conclusiones compuesta por 22 páginas, la que encontró causa razonable para creer que la MCSO y el Alguacil Arpaio exhibieron un patrón o práctica de conducta inconstitucional y/o cometieron violaciones a la ley federal. Después de la emisión de la carta de conclusiones, el departamento intentó alcanzar una solución con la MCSO y el Alguacil Arpaio y les proveyó un borrador de acuerdo conciliatorio integral. El acuerdo propuesto contenía una serie de reformas clave que habían sido implementadas con éxito en otros lugares. Sin embargo, las negociaciones no tuvieron éxito, principalmente porque la MCSO y el Alguacil Arpaio se negaron a aceptar cualquier supervisión independiente a ser realizada por un monitor.
La demanda alega que el Condado de Maricopa, la MCSO y el Alguacil Arpaio exhibieron, y siguen exhibiendo, un patrón o una práctica de:
- Acciones de coacción legal discriminatorias y, por otra parte, inconstitucionales, contra hispanos que eran parados, detenidos y arrestados debido a su raza, color u origen nacional;
- Prácticas carcelarias discriminatorias contra reclusos hispanos con conocimientos limitados del idioma inglés; y
- Represalias ilegales contra sus críticos percibidos, sujetándolos a acciones penales sin fundamento, demandas civiles infundadas o acciones administrativas sin mérito.
De acuerdo con la demanda, desde aproximadamente 2006, la MCSO y el Alguacil Arpaio vienen discriminando intencionalmente y sistemáticamente a hispanos. Han logrado esto al parar a hispanos en sus vehículos con una frecuencia de cuatro a nueve veces superior que a conductores no hispanos en situación similar. Además, la MCSO para a hispanos en los caminos del condado sin la justificación legal requerida. Asimismo, la MCSO detiene y registra a hispanos en los caminos, en sus hogares y en sus lugares de trabajo, sin justificación legal para hacerlo. Además, la MSCO maltrata a los detenidos hispanos con conocimientos limitados del inglés al ignorar solicitudes importantes si no se realizan en inglés y castigar a los detenidos si no comprenden órdenes impartidas en inglés. Finalmente, la MSCO entabla acciones administrativas, acciones civiles y casos penales infundados contra sus críticos percibidos, con la intención de limitar la libre expresión.
La conducta de la MCSO se aparta significativamente de las prácticas de coacción legal estándar de muchas maneras. Como describe la demanda, “La MSCO promueve y es indiferente a la conducta discriminatoria de sus agentes de las fuerzas del orden público, según lo demuestran políticas inadecuadas, capacitación inefectiva, medidas de responsabilización prácticamente inexistentes, supervisión deficiente, mecanismos de recolección de datos escasos, priorización de coacción distorsionada, [y] un sistema disciplinario y de quejas ineficaz.
Asimismo, la demanda alega que la conducta es producto de una cultura de indiferencia hacia los hispanos que comienza en la cima y se extiende por la organización. Con frecuencia, los empleados de la MCSO utilizan términos derogatorios para referirse a los hispanos, y el Alguacil Arpaio y supervisores de la MCSO, a través de sus palabras y acciones, sentan las bases y crean una cultura de parcialidad que contribuye a la realización de acciones ilícitas.
En la demanda, el departamento solicita un desagravio judicial y declaratorio que asegure que la MCSO implemente políticas y procedimientos para prevenir el patrón o la práctica de la conducta inconstitucional identificada en la demanda.
“En su esencia, se trata de un caso de abuso de poder contra el Alguacil Arpaio y la oficina del alguacil que ha hecho caso omiso de la Constitución, ignorado prácticas policiales sólidas, y que no hesitó en aplicar represalias contra críticos percibidos en una variedad de maneras ilícitas”, dijo Thomas E. Perez, Secretario de Justicia Auxiliar de la División de Derechos Civiles. “La acción policial constitucional y la acción policial eficaz van de la mano. La demanda detalla cómo las acciones del Alguacil Arpaio no han sido ni constitucionales ni eficaces. Nadie en el Condado de Maricopa está por arriba de la ley y el departamento luchará para asegurar que la promesa de la Constitución sea realizada por todos en el Condado de Maricopa".
Esta demanda fue entablada después de una investigación exhaustiva e independiente de las políticas y prácticas de la MCSO. Abogados, investigadores y expertos del Departamento realizaron entrevistas con más de 400 personas, incluidos 75 supervisores y delegados actuales y anteriores de la MSCO, entre los que se incluyó el Alguacil Arpaio y 150 actuales y anteriores presidiarios de la MCSO. Además, el departamento analizó miles de páginas de documentos. Muchas de estas entrevistas y gran parte de este análisis se demoró cuando la MCSO se negó a proveer los documentos y el acceso requeridos. Finalmente, la MCSO brindó el acceso y los documentos requeridos después de que el departamento entabló una demanda bajo el Título VI en septiembre de 2010.
La Sección 14141 prohíbe a las agencias de las fuerzas del orden público, como la MCSO, realizar actividades que representen un patrón o una práctica de violación de la Constitución o de leyes de los Estados Unidos. El Título VI y las normas que lo implementan disponen que los beneficiarios de asistencia financiera federal, tales como el Condado de Maricopa y la MCSO, no pueden discriminar debido a raza, color u origen nacional.
Desde la divulgación de sus conclusiones en diciembre de 2011, el departamento ha intentado en repetidas oportunidades lograr el cumplimiento voluntario de la Constitución y del Título VI por parte del Condado de Maricopa. La MSCO puso punto final a estos intentos en abril de 2012. Debido a la naturaleza profundamente arraigada de los problemas que enfrenta la MCSO, la demanda solicita una serie de reformas, incluida una orden judicial que exija que los demandados:
- Desarrollen e implementen nuevas políticas y procedimientos, y capaciten a sus agentes en servicios policiales eficaces y constitucionales;
- Implementen sistemas para asegurar la responsabilización y mejoren la calidad de los servicios policiales en todo el condado; y
- Eliminen la parcialidad ilícita en todos los niveles de decisión asociada a la coacción legal.
Además, la experiencia del Departamento de Justicia indica que el camino más eficaz hacia la reforma sostenible incluye la designación de un monitor independiente que trabaje en conjunto con el departamento y la comunidad para asegurar la implementación eficaz de las disposiciones de cualquier orden judicial.
Esta investigación fue conducida por la Sección de Litigios Especiales de la Sección de Coordinación y Cumplimiento Federales de la División de Derechos Civiles con la asistencia de profesionales de las fuerzas del orden público, incluidos ex jefes de la policía, un asesor en prácticas carcelarias y un asesor en análisis estadístico. Actualmente, la investigación de la manera en que la MCSO maneja el abuso sexual sigue en curso. Los miembros de la comunidad del Condado de Maricopa que deseen brindar información al Departamento de Justicia pueden llamar al 1-877-613-2137 o enviar un mensaje de correo electrónico a [email protected].
Para obtener más información sobre la División de Derechos Civiles del Departamento de Justicia, visite www.justice.gov/crt.
Department of Justice Files Lawsuit in Arizona Against Maricopa County, Maricopa County Sheriff’s Office, and Sheriff Joseph ArpaioRead the Press Release
The Department of Justice filed a civil lawsuit in federal court today against Maricopa County, the Maricopa County Sheriff’s Office (MCSO) and Sheriff Joseph M. Arpaio, arising from unconstitutional and unlawful actions by the defendants.
The lawsuit follows a comprehensive and independent investigation initiated, in June 2008, under Section 14141 of the Violent Crime Control and Law Enforcement Act of 1994 and Title VI of the Civil Rights Act of 1964. On Dec. 15, 2011, the department issued a 22 page letter of findings, which found reasonable cause that MCSO and Sheriff Arpaio were engaged in a pattern or practice of unconstitutional conduct and/or violations of federal law. Following the issuance of the letter of findings, the department attempted to reach a resolution with MCSO and Sheriff Arpaio and provided them with a comprehensive draft settlement agreement. The proposed agreement contained a number of key reforms that had been successfully implemented elsewhere. However, negotiations were unsuccessful, primarily because MCSO and Sheriff Arpaio refused to agree to any independent oversight by a monitor.
The complaint alleges that Maricopa County, MCSO and Sheriff Arpaio engaged in and continue to engage in a pattern or practice of:
· Discriminatory and otherwise unconstitutional law enforcement actions against Latinos who are frequently stopped, detained and arrested on the basis of race, color, or national origin;
· Discriminatory jail practices against Latino inmates with limited English skills; and
· Illegal retaliation against their perceived critics, subjecting them to baseless criminal actions, unfounded civil lawsuits, or meritless administrative actions.
According to the complaint, since approximately 2006, MCSO and Sheriff Arpaio have intentionally and systematically discriminated against Latinos. They have accomplished this by stopping Latinos in their vehicles four to nine times more often than similarly situated non-Latino drivers. In addition, MCSO stops Latinos on the county’s roads without the required legal justification. Also, MCSO detains and searches Latinos on the roads, in their homes, and in their workplaces without legal justification for doing so. Further, MCSO mistreats Latino detainees with limited English proficiency by ignoring important requests if they are not made in English and punishing detainees if they fail to understand orders given in English. Finally, MCSO files baseless administrative actions, civil actions and criminal cases against its perceived critics in an attempt to chill free speech.
The conduct of MCSO dramatically departs from standard law enforcement practices in numerous ways. As described in the complaint, “MCSO promotes and is indifferent to the discriminatory conduct of its law enforcement officers, as is demonstrated by inadequate policies, ineffective training, virtually non-existent accountability measures, poor supervision, scant data collection mechanisms, distorted enforcement prioritization [and] an ineffective complaint and disciplinary system.”
Additionally, the complaint alleges that the conduct is the product of a culture of disregard for Latinos that starts at the top and pervades the organization. MCSO employees frequently use derogatory terms to refer to Latinos, and Sheriff Arpaio and MCSO supervisors, through their words and actions, set the tone and create a culture of bias that contributes to unlawful actions.
In the complaint, the department seeks declaratory and injunctive relief that would ensure that MCSO implements policies and procedures to prevent the pattern or practice of unconstitutional conduct identified in the complaint.
“At its core, this is an abuse of power case involving Sheriff Arpaio and a sheriff’s office that disregarded the Constitution, ignored sound police practices, and did not hesitate to retaliate against perceived critics in a variety of unlawful ways,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Constitutional policing and effective policing go hand in hand. The complaint outlines how Sheriff Arpaio’s actions were neither constitutional nor effective. No one in Maricopa County is above the law and the department will fight to ensure that the promise of the Constitution is realized by everyone in Maricopa County.”
This complaint was filed after a thorough and independent investigation of MCSO’s policies and practices. Department attorneys, investigators and experts conducted interviews with more than 400 individuals including, 75 current and former MCSO supervisors and deputies, including Sheriff Arpaio, and 150 former and current MCSO inmates. In addition, the department reviewed thousands of pages of documents. Many of these interviews and much of this review was delayed when MCSO refused to provide required documents and access. MCSO finally provided the required access and documents after the department filed a lawsuit under Title VI in September 2010.
Section 14141 prohibits law enforcement agencies, such as MCSO, from engaging in activities that amount to a pattern or practice of violating the Constitution or laws of the United States. Title VI and its implementing regulations provide that recipients of federal financial assistance, such as Maricopa County and MCSO, may not discriminate on the basis of race, color or national origin.
Since releasing its findings in December 2011, the department has repeatedly reached out to MCSO in an effort to achieve voluntary compliance with the Constitution and Title VI. MCSO ended these efforts in April 2012. In light of the deeply rooted nature of the problems facing MCSO, the complaint seeks a host of reforms, including a court order requiring that the defendants:
· Develop and implement new policies and procedures and train MCSO officers in effective and constitutional policing;
· Implement systems to ensure accountability and improve the quality of policing throughout the county; and
· Eliminate unlawful bias from all levels of law enforcement decision.
In addition, the Justice Department’s experience has shown that the most effective path to sustainable reform includes the appointment of an independent monitor to work collaboratively with the department and the community to ensure the effective implementation of the provisions of any court order.
This investigation was conducted by the Special Litigation Section and the Federal Coordination and Compliance Section of the Civil Rights Division with the assistance of law enforcement professionals, including former police chiefs, a jail practices consultant and a consultant on statistical analysis. The investigation into the handling of sexual assaults by MCSO remains ongoing at this time. Members of the Maricopa County community who may wish to provide information to the Justice Department may call 1-877-613-2137 or email [email protected] .
For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt
Related Materials:
Remarks by Assistant Attorney General Thomas E. Perez at the Maricopa County Press Conference
MCSO ComplaintCompanies Agree to $4.25 Million Natural Resource Damages Settlement at Industri-Plex Superfund Site, Woburn, Mass.Read the Press Release
WASHINGTON – Pharmacia Corporation and Bayer CropScience Inc. have agreed to pay $4.25 million to federal and state natural resource trustees to resolve claims for natural resource damages connected with the Industri-plex Superfund site located in Woburn, Mass., the Department of Justice announced today.
Operations at the Industri-plex Superfund site from the 1850s to the 1960s contaminated the Aberjona River, as well as associated wetlands and the Mystic Lakes, with arsenic, chromium and other hazardous substances. Under the Comprehensive Environmental Response, Compensation, and Liability Act, parties that have disposed of hazardous substances at a site are liable for damages for injury to, destruction of, or loss of natural resources, including the reasonable costs of assessing such injury, destruction or loss. In this case, the federal natural resource trustees, which include the U.S. Department of the Interior, through the U.S. Fish and Wildlife Service, and the National Oceanic and Atmospheric Administration, as well as the state natural resource trustee, the Massachusetts Executive Office of Energy and Environmental Affairs, determined that the hazardous substances disposed of by the settling defendants or their predecessors had degraded wetland, river and lake habitat used by a variety of wildlife, including fish, turtles, amphibians and migratory birds, such as great blue herons, black ducks and kingfishers.
In settlement of the trustees' natural resource damages claims, the defendants have agreed to pay $4.25 million. Of this amount, $3,812,127 will be used by the trustees to implement natural resource restoration projects to compensate for injury caused by the hazardous substances disposed of at the site. The trustees have not determined which particular projects will be implemented, but examples of potential projects include the creation of new wetlands and the restoration, enhancement or protection of existing wetlands. The remaining amount of the settlement figure – $437,873 – will reimburse federal and state trustees for damages assessment costs.
“This is good news for the environment and the resources that depend on wetlands for habitat,” said Acting Assistant Secretary of the Interior for Fish and Wildlife and Parks Rachel Jacobson. “After many years and much hard work, this agreement will enable the Department of the Interior to work closely with other co-trustees to restore habitat that was contaminated by industrial activities for decades.”“This settlement will ensure that those responsible for damaging the environment will pay to replace the injured natural resources,” said Massachusetts Attorney General Martha Coakley. “Massachusetts rivers and wetlands deserve our rigorous protection and our environmental laws provide a remedy for harm to natural resources no matter how long ago the violations occurred.”
“The U.S. Fish and Wildlife Service is proud to be one step closer to restoring the Aberjona River area to a cleaner, healthier environment for wildlife and people,” said Wendi Weber, U.S. Fish and Wildlife Service Northeast Regional Director. “We look forward to working with local communities to select and implement restoration projects that will be funded by the responsible parties without cost to the taxpayer.”
“We're proud to join with our federal and municipal partners to hold industry accountable for environmental harm. Protecting our precious environmental resources is important work for our communities, our wildlife and for the benefit of future generations,” said Massachusetts Energy and Environmental Affairs Secretary Rick Sullivan.
“We will ensure that stakeholders active in the Mystic River watershed will be active participants in the process to use these NRD funds to restore the injured natural resources,” said Commissioner Kenneth Kimmell of the Massachusetts Department of Environmental Protection, which will staff the Trustee Council for the Commonwealth.
During the period from the late 1850s to the 1960s, predecessors of Pharmacia Corporation and Bayer CropScience manufactured various products at the site, including sulfuric acid, arsenic insecticides, organic chemicals, munitions, and glue. Those predecessors include the Merrimac Chemical Company and the Stauffer Chemical Company, among others.
The settling defendants have entered into prior consent decrees approved by the U.S. District Court of the District of Massachusetts in 1989 and 2008, under which they have agreed to implement remedies selected for the site by the U.S. Environmental Protection Agency. These prior settlements did not address the trustees' natural resource damages claims.
The Department of Justice will be taking public comments on the settlement for a period of 30 days from publication of a notice of the settlement, which should appear shortly in the Federal Register. The settlement also has a state comment period ending 120 days after lodging of the consent decree in court. Instructions on how to comment during the state period are provided in the consent decree at: www.justice.gov/enrd/Consent_Decrees.html.
California Member of the Internet Piracy Group “IMAGiNE”<br /> Pleads Guilty to Copyright Infringement ConspiracyRead the Press Release
WASHINGTON – A California man pleaded guilty yesterday to conspiring to willfully reproduce and distribute tens of thousands of infringing copies of copyrighted works without permission, including infringing copies of movies before they were commercially released on DVD, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE-HSI) in Washington, D.C., announced today.
Sean M. Lovelady, 28, of Pomona, Calif., pleaded guilty to one count of conspiracy to commit criminal copyright infringement. The plea was entered before U.S. District Judge Arenda L. Wright Allen in the Eastern District of Virginia. Lovelady faces up to five years in prison, a fine of $250,000 and three years of supervised release.
Lovelady was indicted on April 18, 2012, along with three other leading members of the IMAGiNE Group, an organized online piracy group seeking to become the premier group to first release Internet copies of new movies only showing in theaters.
According to court documents, Lovelady and his co-conspirators sought to illegally obtain and disseminate digital copies of copyrighted motion pictures showing in theaters. Lovelady admitted that he went to movie theaters near his California residence and secretly used receivers and recording devices to capture the audio sound tracks of copyrighted movies (referred to as “capping”). After obtaining, editing and filtering audio sound tracks and uploading them to servers utilized by the IMAGiNE Group, Lovelady used software to synchronize the audio file with an illegally obtained video file of a movie to create a completed movie file suitable for sharing over the Internet among members of the IMAGiNE Group and others.
The investigation of the case and the arrests were conducted by agents with ICE-HSI. Assistant U.S. Attorney Robert J. Krask of the Eastern District of Virginia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) are prosecuting the case on behalf of the United States. Significant assistance was provided by the CCIPS Cyber Crime Lab and the Office of International Affairs in the Justice Department’s Criminal Division.
This case is part of efforts being undertaken by the Department of Justice Task Force on Intellectual Property (IP Task Force) to stop the theft of intellectual property. Attorney General Eric Holder created the IP Task Force to combat the growing number of domestic and international intellectual property crimes, protect the health and safety of American consumers, and safeguard the nation’s economic security against those who seek to profit illegally from American creativity, innovation and hard work. The IP Task Force seeks to strengthen intellectual property rights protection through heightened criminal and civil enforcement, greater coordination among federal, state and local law enforcement partners, and increased focus on international enforcement efforts, including reinforcing relationships with key foreign partners and U.S. industry leaders. To learn more about the IP Task Force, go to www.justice.gov/dag/iptaskforce.
This investigation was supported by the HSI-led National Intellectual Property Rights Coordination Center (IPR Center) in Washington. The IPR Center is one of the U.S. government’s key weapons in the fight against criminal counterfeiting and piracy. As a task force, the IPR Center uses the expertise of its 20 member agencies to share information, develop initiatives, coordinate enforcement actions and conduct investigations related to IP theft. Through this strategic interagency partnership, the IPR Center protects the public's health and safety, the U.S. economy and our war fighters.
Attorney General Eric Holder Convenes 3rd Federal Reentry Council MeetingRead the Press Release
Attorney General Eric Holder today convened the third meeting of thefederal interagency Reentry Council at the Department of Justice. The council represents 20 federal agencies working to make communities safer by reducing recidivism and victimization; assist those who return from prison and jail in becoming productive citizens; and save taxpayer dollars by lowering the direct and collateral costs of incarceration. The Attorney General chairs the council which he established in January 2011 .
“When reentry fails, the costs—both societal and economic—are high,” said Attorney General Eric Holder. “Our joint commitment is to eliminate barriers to successful reentry by improving employment, housing, treatment and education opportunities for individuals who have been incarcerated so they can support themselves and their families and contribute to their communities.”
Among the topics discussed at today’s meeting were important new efforts to reduce barriers to employment. For example, the Equal Employment Opportunity Commission recentlyupdated enforcement guidance on the use of arrest and conviction records in employment decisions under Title VII of the Civil Rights Act of 1964. The revised guidance clarifies and updates the EEOC’s longstanding policy concerning the use of arrest and conviction records in employment, which will assist job seekers, employees, employers, and many other agency stakeholders. The Department of Labor is working to educate the One-Stop Career Centers’ network on the new guidance and other nondiscrimination obligations under federal law. The centers provide a full range of assistance to job seekers under one roof. Established under the Workforce Investment Act , they offer training referrals, career counseling, job listings, and similar employment-related services. Customers can visit a center in person or connect to the center's information through PC or kiosk remote access.
“The Department of Labor is committed to ensuring that all Americans have access to the help they need in getting the necessary skills to move forward along a sustainable career pathway,” said Secretary of Labor Hilda L. Solis. “That means promoting programs to specifically address the needs of those with traditional barriers to employment, but it also means making sure that the workforce system is able to offer proper guidance regardless of where and how people are looking for employment help.”
The Federal Trade Commission covered their new employer education flyer, “ Using Consumer Reports: What Employers Need to Know ,” which outlines employer obligations when they use reports, including criminal histories, for employment decisions such as hiring, promotion reassignment and retention. Also, the Small Business Administration recently joined the Reentry Council as the 20th agency, providing new linkages to small business networks, entrepreneurship training, and microloan opportunities.
“Ensuring equal employment opportunity is critical to a strong economy and central to the reentry conversation,” said EEOC Chair Jacqueline A. Berrien. “Engaging with a broad range of federal agencies through the federal interagency Reentry Council helps us in our work to eliminate unnecessary barriers to employment.”
Today’s Reentry Council meeting was attended by Department of Labor Secretary Hilda Solis, Department of Health and Human Services Secretary Kathleen Sebelius, Department of Education Secretary Arne Duncan, Office of National Drug Control Policy Director R. Gil Kerlikowske, Equal Employment Opportunity Commission Chair Jacqueline A. Berrien and White House Domestic Policy Council Director Cecilia Muñoz. Participants also included representatives from the following agencies: Departments of Interior, Agriculture, Housing and Urban Development and Veterans Affairs, Office of Management and Budget, Federal Trade Commission, Small Business Administration, Internal Revenue Service, Social Security Administration, Office of Personnel Management, and the U.S. Interagency Council on Homelessness.
For more information about the federal Reentry Council, visit www.nationalreentryresourcecenter.org/reentry-council .
The “Reentry Myth Busters” fact sheets are available at www.nationalreentryresourcecenter.org/documents/0000/1090/REENTRY_MYTHBUSTERS.pdf .
For more information about reentry and the Second Chance Act, visit www.nationalreentryresourcecenter.org .
To access the National Institute of Justice’s reentry research portfolio visit www.nij.gov/nij/topics/corrections/reentry/welcome.htm .
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Alaskan City Agrees to Extensive Sewer System Upgrade in Federal SettlementRead the Press Release
WASHINGTON – The city of Unalaska, Alaska, will undertake a major upgrade of its municipal sewage treatment plant under a settlement of a Clean Water Act enforcement action filed against the city and the state of Alaska by the Department of Justice on behalf of the Environmental Protection Agency (EPA).
Under the proposed settlement, Unalaska will spend at least $18 million to upgrade its treatment plant over the next three years to meet the requirements of its current National Pollution Discharge Elimination System (NPDES) permit, which was issued by EPA under the Clean Water Act. The city has also committed to adhere to fecal coliform limits that are 50 times more stringent than the current permit’s limits.
The Clean Water Act lawsuit, filed in June 2011, alleged that the city continually violated its NPDES permit by discharging pollutants into South Unalaska Bay in excess of discharge permit limits. According to monitoring reports that the city is required to file with EPA, Unalaska’s treatment plant had more than 5,500 violations of permit limits between October 2004 and September 2011, including discharges of harmful fecal coliform bacteria that were often more than double the permit limit.
The treatment plant upgrade will significantly reduce the level of pollution, including fecal coliform bacteria, being discharged into Unalaska Bay, which is part of the Bering Sea. The city will also pay a $340,000 penalty for past NPDES permit violations.
“This agreement will result in cleaner water in Unalaska Bay, which is home to a vital commercial fishery as well as protected wildlife,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “Unalaska residents and the fishermen who depend on the bay will be the beneficiaries of this agreement for many years to come.”
Edward Kowalski, director of EPA’s Office of Compliance and Enforcement in Seattle, noted that today’s agreement paves the way for a long-overdue enhancement of the city’s primary wastewater treatment process.
“Today’s settlement represents an investment in Unalaska’s future,” said EPA’s Kowalski. “By agreeing to modernize its wastewater treatment plant, the city of Unalaska will help protect the waters of Unalaska Bay and meet current discharge permit limits.”With a year-round population of approximately 4,400, Unalaska (commonly known as Dutch Harbor), is Alaska’s 11th largest city. Lying roughly 800 miles southwest of Anchorage in the Aleutian Island chain, Dutch Harbor serves as homeport to one of the nation’s most productive commercial fishing fleets, supporting both industrial-scale fishing and fish processing. During the height of the fishing season, Unalaska’s population more than doubles, reaching as high as 10,000.
Unalaska Bay is protected for a number of uses, including boating, recreational and commercial fishing, and shellfish harvest. It also provides habitat for several endangered or threatened species, including northern sea otters and Steller’s eiders, a species of sea duck. However, the bay is currently listed as an impaired water-body, which means it fails to meet state water quality standards.
As required by the Clean Water Act, the state of Alaska must be a party to this action. The Department of Justice will be taking public comment on the settlement for a period of 30-days from publication of a notice of the settlement, which should appear shortly in the Federal Register. After resolution of all comments received, the settlement will be entered in federal court. It will take effect on the day it is entered by the court. A copy of the settlement agreement can be obtained at: www.justice.gov/enrd/Consent_Decrees.html.
Wednesday 9 May 2012
Wisconsin Man Pleads Guilty to Sexual Exploitation of a Minor in BelizeRead the Press Release
WASHINGTON – A Wisconsin man pleaded guilty today in federal court in Milwaukee to traveling in foreign commerce and engaging in and attempting to engage in illicit sexual conduct with a minor, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; U.S. Attorney James L. Santelle of the Eastern District of Wisconsin; John Morton, Director of U.S. Immigration and Customs Enforcement (ICE); and Scott Bultrowicz, Director of the U.S. State Department’s Diplomatic Security Service (DSS).
Roland J. Flath, 72, pleaded guilty before U.S. District Judge J.P. Stadtmueller.
According to court documents, Flath, of Fond du Lac, Wis., traveled to Belize in July 2006, and subsequently sexually molested a minor girl from Belize. Flath was originally charged by a criminal complaint filed in the Eastern District of Wisconsin in October 2010. He was arrested by the Guatemalan National Civil Police on Feb. 20, 2011, expelled to the United States and arrested in the United States by ICE agents and the U.S. Marshal Service. Flath was indicted on March 22, 2011, by a grand jury sitting in the Eastern District of Wisconsin.
Flath faces a maximum penalty of up to 30 years in prison and a fine of $250,000.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case is being prosecuted by Assistant U.S. Attorney Penelope Coblentz of the Eastern District of Wisconsin and Trial Attorney Mi Yung Park of CEOS. Assistance was provided by the Office of International Affairs in the Justice Department’s Criminal Division. This case is a result of investigative efforts led by ICE Homeland Security Investigations (HSI) in Milwaukee and the DSS’s Regional Security Office in Belize, CEOS’s High Technology Investigative Unit, and the Belize Police Department.
Statement of Attorney General Eric Holder on the Passing of Former U.S. Attorney General Nicholas DeBelleville KatzenbachRead the Press Release
The Attorney General issued the following statement today:
“Today, we mourn the loss of Nicholas Katzenbach, one of our Nation's great champions of civil rights and equal justice. Throughout a life that spanned 90 years, he served our country in many ways – as an attorney, activist, Presidential Advisor, U.S. Attorney General and Deputy Attorney General, and U.S. Army Officer. During WWII, Second Lieutenant Katzenbach battled oppression overseas – and survived more than a year in a German prison camp – before returning home to fight for the cause of equal opportunity. Throughout one of the most challenging and consequential eras in American history, his extraordinary talents – and dedicated leadership of the Department of Justice – helped to guide our Nation forward from the dark days of segregation and to secure the successful passage of the landmark Civil Rights and Voting Rights Acts . I am especially grateful for his work to ensure a peaceful end to the legendary “Stand in the Schoolhouse Door,” when – on June 11, 1963 – Deputy Attorney General Katzenbach faced down Governor George Wallace and personally assisted two African-American students, James Hood and Vivian Malone – a bright young woman who would later become my sister-in-law – in successfully integrating the University of Alabama.
“As we remember and honor his many achievements and contributions, our thoughts and prayers are with the Katzenbach family. Although Nick Katzenbach will be sorely missed, there is much to celebrate in the life he lived, in the example he set, and in the inspiration he will continue to provide – for me, for my colleagues across the Department of Justice, and for the Nation he was so proud to serve.”
Michigan Man Sentenced to Eight Years in Prison for Tax Fraud Scheme and Gun CrimeRead the Press Release
Karl Herrington, of Parma, Mich., was sentenced today to 97 months in prison, following convictions at trial for corruptly endeavoring to obstruct the administration of the Internal Revenue laws, filing false tax forms with the Internal Revenue Service (IRS) and being a felon in possession of firearms, the Justice Department, the Treasury Inspector General for Tax Administration (TIGTA), the IRS and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced today. U.S. District Judge Stephen J. Murphy III of the Eastern District of Michigan, presided over the trials and imposed the sentence.
Separate Detroit juries returned guilty verdicts on the tax charges on Aug. 24, 2011, and on the firearms charge on Aug. 25, 2011. Herrington was convicted of two counts of corruptly endeavoring to obstruct the administration of the Internal Revenue laws, four counts of filing false tax forms with the IRS, and one count of being a felon in possession of six different firearms.
According to the evidence at trial, Herrington submitted false forms to the IRS to intimidate and harass state and local government officials and employees. These included IRS Forms 1099-OID falsely reporting that Herrington paid original issue discount, which is taxable as interest, to law enforcement personnel and judges involved in a criminal case against him in Jackson County, Mich. In that case, Herrington was charged with being an accessory after the fact for harboring his wife, who was wanted for outstanding arrest warrants.
Further, the evidence established that Herrington sent false IRS Forms 1099-OID to federal attorneys prosecuting a criminal tax case against his wife in the Northern District of Ohio in order to interfere with that case. The tax forms included an individual income tax return for himself falsely reporting federal tax withholdings of more than $8 million.
Herrington was also convicted of possessing firearms on May 25, 2011, the day of his arrest on the underlying tax charges. According to the evidence at trial, Herrington was previously convicted of a felony offense. When he was arrested, Herrington possessed six different firearms, including five shotguns and a magnum rifle.
Special agents from TIGTA, IRS-Criminal Investigation and ATF conducted the investigation. Tax Division Trial Attorneys Kenneth Vert and Jeffrey McLellan prosecuted the case for the United States. Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division commended the special agents and thanked U.S. Attorney Barbara L. McQuade and her entire office for their assistance.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax .
Manalapan, N.J., Woman Pleads Guilty to Sexually <br /> Abusing Girl, Streaming Assault Live over the InternetRead the Press Release
WASHINGTON – A Manalapan, N.J., woman pleaded guilty today to producing child pornography by sexually abusing a five-year-old girl on more than one occasion and streaming footage of a sexual assault over the Internet, Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and New Jersey U.S. Attorney Paul J. Fishman announced.
Jennifer Mahoney, 33, pleaded guilty to one count of sexual exploitation of a child. She entered her guilty plea in Trenton, N.J., federal court before U.S. District Judge Mary L. Cooper.
“Ms. Mahoney sexually abused a five-year-old girl and streamed footage of this abuse to others over the Internet,” said Assistant Attorney General Breuer. “Now that she has pleaded guilty to these reprehensible crimes, she faces a minimum of 15 years in prison. No prison sentence can repair the damage she has caused, or restore the innocence of the child she abused. But, she and other child predators should know this: we in law enforcement will use every measure available to us to prevent and deter child exploitation, and to punish men or women who still succeed in committing the kind of horrific crimes to which Ms. Mahoney has now confessed.”
“Today, Jennifer Mahoney admitted that she sexually abused a five-year old girl entrusted to her care and then shared recordings of that abuse over the Internet,” said U.S. Attorney Fishman. “This horrible crime is a stark example of how harmful ‘child pornography’ is, and how its young victims bear not just the physical and emotional scars of violent sexual assault, but lifelong trauma as others repeatedly watch. Those like Mahoney, who create and feed the market, perpetuate unimaginable suffering for the children they abuse.”
According to court documents, Mahoney admitted she sexually assaulted a five-year-old girl and streamed the assault live over the Internet via Skype, a video chat service. Mahoney also admitted that on another occasion last year, she abused the girl, recorded the abuse on her iPhone, and e-mailed the video to at least one other person. Additionally, Mahoney admitted to viewing other videos of child sexual abuse streamed to her using Skype.
Special agents of the FBI and other law enforcement personnel executed a search warrant at Mahoney’s home in Manalapan on Dec. 13, 2011. Law enforcement had previously seized a computer during a search of a Texas man’s home. Subsequent to both searches, law enforcement recovered from the Texas man’s computer three videos of Mahoney having sexual contact with a child.
Two of the videos were of the video chat session, in which Mahoney is shown molesting the child while laughing and talking to someone, apparently the party on the other end of the chat session. The third video depicts Mahoney sexually abusing the child in a bathtub while filming it with her phone.
The charge of sexual exploitation of children carries a mandatory minimum penalty of 15 years in prison, a maximum potential penalty of 30 years in prison and a $250,000 fine. Sentencing is currently set for Aug. 22, 2012. In the interim, Mahoney will remain in state custody on related charges.
The case was investigated by the New Jersey FBI Cyber Crimes Task Force and the Monmouth County Prosecutor’s Office.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS) in the Justice Department’s Criminal Division, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The government is represented by Assistant U.S. Attorney John E. Clabby of the U.S. Attorney’s Office Criminal Division in Trenton, N.J., and CEOS Trial Attorney Keith A. Becker of the Justice Department’s Criminal Division.
Former Birmingham, Ala., School Security Officer Sentenced to 30 Years in Prison for Production of Child PornographyRead the Press Release
WASHINGTON – A former security officer in the Birmingham City School System, who was also a substitute bus driver for Shelby County, Ala., schools, was sentenced today to 30 years in prison for producing child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Joyce White Vance of the Northern District of Alabama, Northern District of Alabama FBI Special Agent in Charge Patrick J. Maley and Birmingham Police Chief A.C. Roper.
U.S. District Judge Inge P. Johnson also sentenced Michael Wayne Wooten, 61, of Alabaster, Ala., to lifetime supervised release following his prison term. The court noted during the hearing that Wooten had numerous child victims. Law enforcement efforts have identified 11 children whom he exploited.
Wooten pleaded guilty in January 2012 to the child pornography charge.
“Mr. Wooten used his position as a school security guard to gain access to young children,” said Assistant Attorney General Breuer. “But rather than protect school students, he sexually abused them and captured this abuse in dozens of photographs. Today, appropriately, he was sentenced to 30 years in prison.”“Restoring the innocence and trust this defendant stole from his victims is impossible, but the judge’s sentence punishes him for the harm he did and ensures he will never exploit another child,” said U.S. Attorney Vance. “This defendant will be eligible for release when he is 91. Today, we confirm that victimizing children by taking sexually explicit photographs of them is abhorrent criminal behavior and it will be not tolerated.”
“Mr. Wooten used and abused his position of trust to satisfy his own perverse sexual interest in children,” said Special Agent in Charge Maley. “Working with our law enforcement partners, the FBI will bring to justice those individuals who prey on the innocent.”
“We believe that justice has been served, and this is the appropriate sentence in a case where so many innocent children have been affected,” said Police Chief Roper. “We appreciate all the various criminal justice agencies that came together to bring this investigation to a successful conclusion.”
According to court documents, Wooten, a retired Birmingham police officer, worked as a security officer for the Birmingham City Schools from July 1997 until May 2011. Before his November arrest, Wooten had worked as a substitute bus driver in Shelby County schools during the current school year.Between August 2009 and April 2010, Wooten used an office at Dupuy Elementary School in Birmingham to take modeling photos of numerous juvenile girls, according to court records. After one of these modeling sessions, one of the victims told her parents of potentially inappropriate conduct by Wooten. A subsequent search of Wooten’s residence yielded multiple computers containing child pornography images, including images produced by Wooten depicting several victims, between four and nine years of age, engaged in sexually explicit conduct.
The FBI and the Birmingham Police Department investigated the case. Assistant U.S. Attorney Daniel Fortune of the Northern District of Alabama and Trial Attorney Jeffrey H. Zeeman of the Justice Department Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case.
Tuesday 8 May 2012
Leaders of Multi-million Dollar Fraud Ring That Used Stolen Information of Medicaid Recipients Each Sentenced to over 25 Years in PrisonRead the Press Release
Veronica Dale and Alchico Grant, who jointly ran a stolen identity refund fraud ring that attempted to defraud the United States of millions of dollars over several years, were sentenced to federal prison today, the Justice Department and Internal Revenue Service (IRS) announced. Veronica Dale, of Montgomery, Ala., was sentenced to 334 months and Alchico Grant of Lowndes County, Ala., was sentenced to 310 months in prison. In addition, Dale and Grant were both ordered to pay over $2.8 million in restitution to the IRS.
In December 2010, Dale and Grant were originally indicted, along with three others, on various tax and tax-related charges including aggravated identity theft. Dale and Grant continued their tax refund fraud while on pretrial release and as a result, Grant was indicted again in April 2011, and Dale was later named in a superseding indictment in August 2011. Both were ordered detained following the second set of indictments and have remained in custody.
On Sept. 14, 2011, Grant pleaded guilty to a total of five charges from both indictments, including conspiracy, wire fraud and aggravated identity theft. On Oct. 14, 2011, Dale pleaded guilty to a total of seven charges from both indictments, including conspiracy, filing false claims, wire fraud and aggravated identity theft.
According to the first indictment, the plea agreements and other court documents, beginning in 2009 and continuing through 2010, the defendants were part of a scheme that involved fraudulently obtaining tax refunds by filing false tax returns using stolen identities. Dale admitted that she filed over 500 fraudulent returns that sought at least $3,741,908 in tax refunds. These returns were filed using the names of Medicaid beneficiaries, whose personal information Dale obtained while earlier employed by a company that serviced Medicaid programs. Dale directed the refunds to different bank accounts that she and other co-conspirators controlled.
Also according to the first indictment, plea agreements and other court documents, Grant admitted that he opened bank accounts to receive some of the refunds and recruited others to do the same. One such recruit opened a bank account in the name of a business into which more than $1.3 million in fraudulently obtained tax refunds were deposited. Thereafter, Grant directed distribution of the proceeds which included having third parties cash checks drawn on the various accounts and remit the funds to him. Grant also instructed individuals to lie to law enforcement authorities when questioned about the checking account activities. Dale and Grant’s co-defendants – Laquanta Grant, Leroy Howard, and Isaac Dailey – have all pleaded guilty, as have two other co-conspirators, Wendy Delbridge and Betty Washington, who pleaded guilty to criminal informations.
The second indictment charged a conspiracy that involved Dale, Grant, Melinda Clayton, and Stephanie Adams. As court documents show, this conspiracy extended from January 2011 to April 2011, when federal agents executed a search warrant at Clayton’s house and arrested her. In her plea agreement, Dale admitted that this scheme involved a fraud loss of between $400,000 and $1 million. Dale admitted to providing Clayton with stolen identities in furtherance of the new scheme. Clayton stored these and other lists of stolen identities at her home. The tax refunds were directed to bank accounts and prepaid debit cards purchased by Dale and Grant. Dale, Grant, Clayton and Adams all pleaded guilty to their roles in the second scheme, as did Valerie Byrd, who pleaded guilty to a criminal information.
“The Justice Department remains committed to protecting Americans from thieves who would steal their identities and use them to commit refund fraud,” said Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division. “Those who commit stolen identity refund fraud will be punished to the full extent of the law.”
"These sentences once again demonstrate the wide-spread and destructive nature of identity theft," observed George Beck, U.S. Attorney for the Middle District of Alabama. "I commend the IRS for their strict enforcement of these violations of federal laws. Our office remains dedicated to rooting out those evil wrongdoers who systematically steal taxpayers’ money."
“Identity theft is a despicable crime that victimizes honest taxpayers and causes immense hardship,” said Richard Weber, Chief, IRS Criminal Investigation. “This sentencing should serve as a strong warning to those considering similar conduct.”
The cases were investigated by Special Agents of the IRS - Criminal Investigation. Trial attorneys Jason H. Poole and Michael Boteler of the Tax Division are prosecuting the cases, with assistance from the U.S. Attorney’s Office, and in particular Assistant U.S. Attorneys Todd Brown and Jared Morris.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Doctor and Home Health Agency Owner Plead Guilty in Connection with Detroit Fraud SchemeRead the Press Release
WASHINGTON – Detroit-area residents Zahir Yousafzai and Dr. Dwight Smith pleaded guilty yesterday for their roles in a $13.8 million home health care fraud and money laundering scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
Yousafzai, 42, pleaded guilty before U.S. District Judge Gerald E. Rosen of the Eastern District of Michigan to one count of conspiracy to commit health care fraud and one count of money laundering. Smith, 59, pleaded guilty before Judge Rosen to one count of conspiracy to commit health care fraud.
According to information contained in plea documents, in 2009, Yousafzai and his co-conspirators acquired beneficial ownership and control over two home health companies, First Care Home Health Care LLC and Moonlite Home Care Inc. Yousafzai also assisted in the operation of two home health care companies owned by co-conspirators, Physicians Choice Home Health Care LLC and Quantum Home Care Inc. Yousafzai admitted that these home health agencies billed Medicare for home health visits that never occurred. Between July 2008 and September 2011, Yousafzai and his co-conspirators submitted or caused the submission of approximately $13.8 million in fraudulent home health claims to the Medicare program by the four home health agencies. Medicare paid more than $4 million to First Care and Moonlite, the companies that Yousafzai beneficially owned in whole or in part.
Yousafzai admitted to paying and directing the payment of various medical professionals, including doctors, nurses, physical therapists and physical therapy assistants, to create fictitious patient files to document purported home health services that were never provided. Yousafzai, a physical therapy assistant, also signed fictitious patient files in which physical therapy services were documented, but never actually provided.
Yousafzai also admitted that he paid and directed the payment of kickbacks to recruiters who obtained beneficiaries’ information and used the information to submit claims for home health services that were never provided. The beneficiaries sometimes pre-signed forms and visit sheets that were later falsified to indicate that they received home health services that were never provided. Other times, the beneficiaries’ signatures were forged on forms and visit sheets.
Additionally, Yousafzai admitted that he incorporated a shell company known as A-1 Nursing and Rehab Inc. for the purpose of laundering the proceeds of health care fraud, which were obtained through the submission of false and fraudulent claims to Medicare.
According to plea documents, beginning in or around September 2009, Smith began referring Medicare beneficiaries for home health care services to Physicians Choice Home Health Care LLC and Quantum Home Care Inc. During that time, Smith owned and controlled Supreme Medical Associates PLLC, a Michigan corporation doing business in Detroit under the assumed name of Smith Medical Center. In May 2010, Smith incorporated Phoenix Visiting Physicians PLLC.
Smith Medical Center and Phoenix employed individuals who claimed to be doctors, but, in fact, were not licensed in the state of Michigan to perform any medical services. The unlicensed doctors met with and purported to examine Medicare beneficiaries for home health care services. Smith did not meet or examine these beneficiaries and they were not homebound. Many of the beneficiaries were paid to pre-sign patient visit forms and did not receive home health services from Physicians Choice, First Care and Quantum. From in or around September 2009 through in or around September 2011, Medicare paid approximately $6.5 million for fraudulent home health care claims submitted by Physicians Choice, First Care and Quantum based on Smith’s referrals.
The guilty pleas were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
This case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.Since their inception in March 2007, Medicare Fraud Strike Force operations in nine locations have charged more than 1,300 defendants who collectively have falsely billed the Medicare program for more than $4 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Direct Resource Inc. Agrees to Pay $450,000 to Settle Allegations<br /> <br /> of Selling Foreign Products to Federal AgenciesRead the Press Release
Direct Resource Inc. has agreed to pay the government $450,000 to resolve allegations that the company falsely claimed payment in violation of the Trade Agreements Act (TAA), which prohibits the sale of products to federal agencies from countries that do not have a reciprocal trade agreement with the United States, the Justice Department announced today. The Columbus, Ohio, company allegedly knowingly sold products from China, a country that does not have such an agreement with the United States.
Direct Resource sells a variety of products to U.S. agencies, including office supplies. The General Services Administration (GSA) contracts at issue require that all products sold to the U.S. government be manufactured in one of a list of designated countries deemed to trade fairly with the United States.
“It is central to the mission of the Department of Justice to protect the federal procurement process from improper charges and false claims,” said Stuart F. Delery, Acting Assistant Attorney General for the Department of Justice’s Civil Division. “Contractors who undermine U.S. trade interests will be held accountable for their actions.”
The allegations regarding the company arose from a whistleblower lawsuit filed in a federal court in the District of Columbia under the qui tam, or whistleblower, provisions of the False Claims Act. Those provisions allow private individuals known as “relators” to sue on behalf of the United States and to share in the proceeds of any settlement or judgment if the suit is successful. The relator, Louis Scutellaro, in this case will receive $67,500 of the total recovery as a statutory award.
“American businesses must get a fair shake in the government contracting process,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “When contractors violate the Trade Agreements Act, we will step in to hold them accountable. This settlement makes clear the depth of our commitment to ensuring that government contractors play by the rules.”
“Passing off unauthorized foreign products to GSA contract users cheats them out of the products they actually contracted for,” declared GSA Inspector General Brian Miller.
The claims settled by this agreement are allegations only, and there has been no determination of liability. The matter was investigated by GSA’s Office of the Inspector General, the U.S. Attorney’s Office for the District of Columbia and the Justice Department’s Civil Division.
Alabama Return Preparer Sentenced to Federal Prison for Tax Conspiracy Involving Stolen Identity Refund FraudRead the Press Release
Margaret Kirksey, a resident of Montgomery, Ala., was sentenced today in the Middle District of Alabama to 81 months in federal prison for filing false tax returns using stolen identities, the Justice Department and Internal Revenue Service (IRS) announced.
On Jan. 24, 2012, Kirksey pleaded guilty to charges of conspiracy to defraud the government and aggravated identity theft. She was indicted by a federal grand jury on July 27, 2011, on charges of conspiracy, aggravated identity theft, wire fraud, false claims and lying to federal agents.
According to court documents, Kirksey and her co-conspirator, Yumeitrius Manuel, each owned and operated a tax preparation business in Montgomery, located in the same physical place. The two fraudulently inflated tax refunds by placing false information on their clients’ tax returns. They also filed tax returns in the names and Social Security numbers of individuals who did not know about, and did not authorize, the filing of tax returns on their behalf. Both Manuel and Kirksey admitted that their respective crimes involved over $1 million in tax loss and more than 50 victims of identity theft. Manuel has also pleaded guilty to a tax conspiracy and is scheduled to be sentenced on Aug. 8, 2012.
U.S. District Judge Mark E. Fuller also ordered Kirksey to pay $52,242 in restitution to the IRS.
This case was investigated by special agents of IRS-Criminal Investigation and was prosecuted by Trial Attorneys Justin Gelfand and Jason Poole of the Justice Department’s Tax Division.
Monday 7 May 2012
Justice Department to Monitor Election in WisconsinRead the Press Release
The Justice Department announced today that the Civil Rights Division will monitor the election on Tuesday, May 8, 2012, in Milwaukee. The monitoring will ensure compliance with the Voting Rights Act of 1965. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group. In addition, the act requires certain covered jurisdictions to provide language assistance during the election process. The city of Milwaukee is required to provide assistance in Spanish.
Justice Department personnel will monitor polling place activities in Milwaukee. Civil Rights Division attorneys will coordinate federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from the Office of Personnel Management, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Justice Department Settles Document Abuse Claim Against Imagine Schools in OhioRead the Press Release
The Justice Department announced today that it reached an agreement with Imagine Schools Inc., resolving allegations that the company discriminated under the anti-discrimination provision of the Immigration and Nationality Act, when it fired an employee at its Imagine School in Groveport, Ohio, in connection with a “reverification” of his employment eligibility.
In a complaint filed with the department, the employee, a lawful permanent resident, alleged that Imagine School improperly terminated him after he failed to produce an unexpired lawful permanent resident card, also known as “green card,” during reverification of his employment eligibility status for purposes of Form I-9. The employee had originally presented a valid lawful permanent resident card when he was hired, and alleged that his reverification, along with the request for a specific document, was unlawful under the anti-discrimination provision of the Immigration and Nationality Act. Under the rules governing employment eligibility verification, certain documents, including lawful permanent resident cards and U.S. passports, are not subject to reverification. The anti-discrimination provision prohibits discrimination based on citizenship or national origin in the employment eligibility verification process or reverification process.
Under the settlement agreement, Imagine Schools Inc. agrees to pay $20,169 in back pay plus interest to the charging party and $600 in civil penalties to the United States. Imagine Schools Inc. also agrees to comply with the law, to train its human resources personnel about employers’ responsibilities to avoid discrimination in the employment eligibility verification process, and to be subject to reporting and compliance monitory requirements for 18 months.
“All work-authorized individuals have the right to work without facing discriminatory hurdles during the employment eligibility verification or reverification process based on their citizenship status or national origin,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The department is committed to ensuring authorized workers are treated fairly during the employment eligibility verification process.”
The Office of Special Counsel (OSC) for Immigration-Related Unfair Employment Practices is responsible for enforcing the anti-discrimination provision of the INA, which protects work authorized individuals from employment discrimination on the basis of citizenship status or national origin discrimination, including discrimination in hiring and the employment eligibility verification (Form I-9) process. The Justice Department was represented by Luz V. Lopez-Ortiz in this matter.
For more information about protections against employment discrimination under the immigration law, call 1-800-255-7688 (OSC’s worker hotline) (1-800-237-2525, TDD for hearing impaired), 1-800-255-8155 (OSC’s employer hotline) (1-800-362-2735, TDD for hearing impaired) or 202-616-5594; sign up for a no-cost webinar at www.justice.gov/crt/about/osc/webinars.php ; email [email protected] ; or visit OSC’s website at www.justice.gov/crt/about/osc .
Related Materials:
Imagine Schools Inc Settlement Agreement - Redacted
Florida Man Sentenced to Life in Prison for Sex Trafficking of Minors and Production of Child PornographyRead the Press Release
WASHINGTON – James Mozie of Oakland Park, Fla., was sentenced today to life in prison on charges of sex trafficking of minors and production of child pornography, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; and John V. Gillies, Special Agent in Charge, FBI Miami Field Office.
Mozie, 35, was sentenced by U.S. District Judge William P. Dimitrouleas in the Southern District of Florida. In addition to the life prison term, Mozie was sentenced to 10 years of supervised release.
On Dec. 20, 2011, Mozie was found guilty of all 10 counts against him, including sex trafficking of minors, conspiracy to commit sex trafficking of minors and production of child pornography.
At trial, seven different victims, many minor runaways at the time they met Mozie, testified that they worked or were recruited to work as prostitutes at Mozie’s residence, which he advertised as “The Boom Boom Room.” According to the trial evidence, The Boom Boom Room, also known as Lot 29, operated for more than one year as a house of prostitution. Mozie advertised the business through the use of mass text messages to his contacts, letting people know about the activities taking place at the house each night. When customers arrived, they paid a cover charge to the security guard working the front door. The females, many of them minors, worked in the house dancing for tips and engaging in sexual activity with male customers for money.
The seven victims, all minors when the offenses occurred, testified that when they first arrived at the residence, Mozie asked them to complete an application with information such as name, stage name, date of birth and the sexual acts they were willing to perform. All of the minor victims testified that they provided their correct dates of birth to Mozie, who advised them not to tell customers that they were underage. Several of the minor victims testified that before working as a prostitute for Mozie, he required them to have sex with him as part of their “orientation,” which he explained was his way of “testing the merchandise.” They also testified that Mozie would take sexually explicit pictures of them, which he attached to the text messages advertising the brothel.
Previously, co-defendant Laschell “Shelly” Harris pleaded guilty to one count of sex trafficking of a minor and was sentenced to 13 years in prison. Co-defendant Willie David Rice pleaded guilty to one count of being a felon in possession of a firearm and was sentenced to four years in prison.
The case was investigated by the FBI and the Broward County, Fla., Sheriff’s Office Minor Vice Task Force. The case was prosecuted by Assistant U.S. Attorneys Harry Wallace and Corey Steinberg of the Southern District of Florida and Trial Attorney Thomas Franzinger of the Child Exploitation and Obscenity Section in the Justice Department’s Criminal Division.
Alabama Resident Arrested and Charged with Bribery and Gambling ConspiracyRead the Press Release
WASHINGTON – An Alabama man was arrested today on charges of conspiracy, federal programs bribery and operating an illegal gambling business, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
An indictment filed in the Northern District of Alabama and unsealed today charges Robert E. Taylor Jr., 41, of Warrior, Ala., with conspiring to bribe and bribing a public official in order to protect his interest in an illegal gambling business. According to the indictment, from approximately November 2010 to approximately April 2011, Taylor and several others operated an illegal gambling business in the city of Kimberly, Ala., approximately 20 miles north of Birmingham, by placing numerous video gambling machines in private residences in and around the city.
The indictment further alleges that Taylor conspired with eight other individuals to expand, protect and conceal the illegal gambling business, including by offering and paying bribes to Kimberly’s mayor, a public official. In exchange for more than a dozen cash payments over the course of 15 weeks totaling $4,000, the mayor was expected to ensure that law enforcement officers from Kimberly and the surrounding area did not interfere with the illegal gambling operation. In addition, the mayor was expected to notify a member of the conspiracy if Kimberly or any neighboring jurisdictions received complaints or tips regarding the illegal gambling business.
The indictment reveals, however, that the mayor of Kimberly was cooperating with the FBI throughout the entire period of the investigation.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.
This case is being prosecuted by Trial Attorneys Anthony J. Phillips and Richard B. Evans of the Criminal Division’s Public Integrity Section, and investigated by the FBI.
Abbott Labs to Pay $1.5 Billion to Resolve Criminal & Civil Investigations of Off-label Promotion of DepakoteRead the Press Release
Global Health Care Company Abbott Laboratories Inc. has pleaded guilty and agreed to pay $1.5 billion to resolve its criminal and civil liability arising from the company’s unlawful promotion of the prescription drug Depakote for uses not approved as safe and effective by the Food and Drug Administration (FDA), the Justice Department announced today. The resolution – the second largest payment by a drug company – includes a criminal fine and forfeiture totaling $700 million and civil settlements with the federal government and the states totaling $800 million. Abbott also will be subject to court-supervised probation and reporting obligations for Abbott’s CEO and Board of Directors.
“Today’s settlement shows further evidence of our deep commitment to public health and our determination to hold accountable those who commit fraud,” said James M. Cole, Deputy Attorney General. “We are resolute in stopping this type of activity and today’s settlement sends a strong message to other companies.”
The FDA is responsible for approving drugs as safe and effective for specified uses. Under the Food, Drug and Cosmetic Act (FDCA), a company in its application to the FDA must specify each intended use of a drug. A company’s promotional activities must be limited to only the intended uses that FDA approved. In fact, promotion by the manufacturer for other uses – known as “off-label” uses – renders the product misbranded.
Abbott has pleaded guilty to misbranding Depakote by promoting the drug to control agitation and aggression in elderly dementia patients and to treat schizophrenia when neither of these uses was FDA approved. In an agreed statement of facts filed in the criminal action, Abbott admits that from 1998 through 2006, the company maintained a specialized sales force trained to market Depakote in nursing homes for the control of agitation and aggression in elderly dementia patients, despite the absence of credible scientific evidence that Depakote was safe and effective for that use. In addition, from 2001 through 2006, the company marketed Depakote in combination with atypical antipsychotic drugs to treat schizophrenia, even after its clinical trials failed to demonstrate that adding Depakote was any more effective than an atypical antipsychotic alone for that use.
Illegal Promotion of Depakote to Control Agitation and Aggression in Dementia Patients
The FDA approved Depakote for only three uses: epileptic seizures, bipolar mania and the prevention of migraines. The FDA never approved the drug as safe and effective for the off-label use of controlling behavioral disturbances in dementia patients. In 1999, Abbott was forced to discontinue a clinical trial of Depakote in the treatment of dementia due to an increased incidence of adverse events, including somnolence, dehydration and anorexia experienced by the elderly study participants administered Depakote.
Abbott trained its sales force to promote Depakote to health care providers and employees of nursing homes as advantageous over antipsychotic drugs for controlling agitation and aggression in elderly dementia patients because Depakote was not subject to certain provisions of the Omnibus Budget Reconciliation Act of 1987 (OBRA) and its implementing regulations designed to prevent the use of unnecessary medications in nursing homes. Exploiting the fact that certain OBRA provisions did not yet apply to Depakote, Abbott sales representatives stated that by using Depakote, nursing homes could avoid the administrative burdens and costs of complying with OBRA.
Abbott’s off-label promotion of Depakote was multifaceted. The company entered into contracts that provided long-term care pharmacy providers with payments of rebates based on increases in the use of Depakote in nursing homes serviced by the providers. In addition to using its sales force to promote the drug to health care providers and employees of nursing homes, Abbott created programs and materials to train the pharmacy providers’ consultant pharmacists about the off-label use of Depakote to encourage them to recommend the drug for this unapproved use. Under these contracts, Abbott paid millions of dollars in rebates to the pharmacy providers.
“Not only did Abbott engage in off-label promotion, but it targeted elderly dementia patients and downplayed the risks apparent from its own clinical studies,” said Acting Associate Attorney General Tony West. “As this criminal and civil resolution demonstrates, those who put profits ahead of patients will pay a hefty price.”
Illegal Off-Label Promotion of Depakote for Schizophrenia
In the agreed statement of facts, Abbott also admitted that from 2001 through 2006, the Company misbranded Depakote by marketing the drug to treat schizophrenia. Abbott funded two studies of the use of Depakote to treat schizophrenia, and both failed to meet the main goals established for the study. When the second study failed to show a statistically significant treatment difference between antipsychotic drugs used in combination with Depakote and antipsychotic drugs alone, Abbott waited nearly two years to notify its own sales force about the study results and another two years to publish those results. During this time, Abbott continued to promote Depakote off-label to treat schizophrenia.
“ Today’s settlement demonstrates our continued scrutiny of the sales and marketing practices of pharmaceutical companies that put profits ahead of patient health,” said U.S. Food and Drug Administration Commissioner Margaret Hamburg, M.D. “The FDA will continue its due diligence and hold pharmaceutical companies accountable for marketing practices that undermine the drug approval process.”
Criminal Plea
Today’s global resolution has criminal, civil and administrative components. First, Abbott has pleaded guilty to a criminal misdemeanor for misbranding Depakote in violation of the FDCA. Under the plea agreement, Abbott will pay a criminal fine of $500 million, forfeit assets of $198.5 million, and submit to a term of probation for five years. In addition, Abbott will also pay $1.5 million to the Virginia Medicaid Fraud Control Unit. As a condition of probation, Abbott will report any probable FDCA violations to the probation office, its CEO will certify compliance with this reporting requirement, and its board will report annually on the effectiveness of the company’s compliance program. In addition, Abbott agrees that during the term of probation, the company will not compensate sales representatives for off-label sales, will ensure that continuing medical education grant-making decisions are not controlled by sales and marketing, will require that letters communicating medical information to healthcare providers be accurate and unbiased, and will have policies designed to ensure that clinical trials are approved by the company’s medical or scientific organizations and published in a consistent and transparent manner. Abbott’s guilty plea and sentence are not final until accepted by the U.S. District Court for the Western District of Virginia.
“As the agreed statement of facts filed in court today demonstrates, Abbott promoted Depakote to control behaviors in elderly dementia and schizophrenia patients without significant evidence of its effectiveness for that use, and even after clinical data established that it was not effective,” said Timothy Heaphy, U.S. Attorney for the Western District of Virginia. “The resolution announced today includes a self-policing mechanism by which Abbott’s board of directors will monitor compliance with the law and report any violations, as well as a period of probation and court supervision. We credit Abbott’s acceptance of responsibility and encourage other pharmaceutical companies to impose the similar mechanisms to prevent off-label marketing, which damages health care consumers.”
Civil Settlement
Under the civil settlement, Abbott has agreed to pay $800 million to the federal government ($560,851,357) and the states ($239,148,643) that opt to participate in the agreement to resolve claims that its unlawful marketing and illegal remuneration practices caused false claims to be submitted to government health care programs such as Medicare, Medicaid, TRICARE and to the Federal Employees Health Benefit Program, the Department of Veterans’ Affairs and the Department of Labor’s Office of Workers’ Compensation Programs.
The civil settlement addresses broader allegations by the United States that from 1998 through 2008, Abbott unlawfully promoted Depakote for unapproved uses, including behavioral disturbances in dementia patients, psychiatric conditions in children and adolescents, schizophrenia, depression, anxiety, conduct disorders, obsessive-compulsive disorder, post-traumatic stress disorder, alcohol and drug withdrawal, attention deficit disorder and autism. . Some of these unapproved uses were not medically accepted indications for which the United States and state Medicaid programs provided coverage for Depakote. The United States contends that this promotion included, in part, making false and misleading statements about the safety, efficacy, dosing and cost-effectiveness of Depakote for some of these unapproved uses, and claiming use of Depakote to control behavioral disturbances in dementia patients would help nursing homes avoid the administrative burdens and costs of complying with OBRA regulatory restrictions applicable to antipsychotics.
The civil settlement also covers allegations that Abbott offered and paid illegal remuneration to health care professionals and long term care pharmacy providers to induce them to promote and/or prescribe Depakote and to improperly and unduly influence the content of company sponsored Continuing Medical Education programs, in violation of the Federal Anti-Kickback Statute. The claims settled by the civil agreement are allegations only and there has been no determination of liability, except to the extent that Abbott has admitted facts in the civil settlement agreement or in the criminal plea and agreed statement of facts filed in the criminal action.
The civil settlement resolves four lawsuits pending in federal court in the Western District of Virginia under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the United States and share in any recovery. As part of today’s resolution, the whistleblowers will receive $84 million from the federal share of the settlement amount.
Corporate Integrity Agreement
In addition to the criminal and civil resolutions, Abbott has also executed a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). The five-year CIA requires, among other things, that Abbott's board of directors review the effectiveness of the company's compliance program, that high-level executives certify to compliance, that Abbott maintain standardized risk assessment and mitigation processes, and that the company post on its website information about payments to doctors. Abbott is subject to exclusion from federal health care programs, including Medicare and Medicaid, for a material breach of the CIA and subject to monetary penalties for less significant breaches.
“As a result of OIG’s joint investigation with our federal and state partners, Abbott Laboratories will enter one of the pharmaceutical industry’s largest settlements and pay $1.5 billion for unlawfully promoting its drug Depakote, including to nursing home patients with dementia,” said HHS Inspector General Daniel R. Levinson. “Our integrity agreement will hold Abbott accountable for preventing future violations of federal health care laws and FDA requirements, which will protect federal programs, taxpayers and our most vulnerable patients.”
A Multilateral Effort
The criminal case is being prosecuted by the U.S. Attorney’s Office for the Western District of Virginia and the Civil Division’s Consumer Protection Branch. The civil settlement was reached by the U.S. Attorney’s Office for the Western District of Virginia and the Civil Division’s Commercial Litigation Branch. Assistance w as provided by representatives of the HHS Office of Counsel to the Inspector General; the Center for Medicare and Medicaid Services (CMS) and Office of the General Counsel, CMS Division; FDA’s Office of Chief Counsel; and the National Association of Medicaid Fraud Control Units.
“Crimes involving the misbranding of drugs for financial gain will not be tolerated,” stated Richard Weber, Chief IRS Criminal Investigation. “The special agents of IRS Criminal Investigation will use all their investigative tools, including the use of asset forfeiture statutes, to combat financial crimes and hold corporations accountable for their actions.”
This matter was investigated by the Virginia Attorney General’s Medicaid Fraud Control Unit; the Internal Revenue Service - Criminal Investigation; the FDA - Office of Criminal Investigation; the Defense Criminal Investigative Service; the Health and Human Services - Office of Inspector General; the West Virginia State Police; the Office of Personnel Management - Office of Inspector General; the Department of Veterans’ Affairs Office of Inspector General; the Department of Labor - Office of Inspector General; and TRICARE Program Integrity.
This resolution is part of the government's emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Kathleen Sebelius, Secretary of HHS. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $7.4 billion since January 2009 in cases involving fraud against federal health care programs. With the settlement announced today, the Justice Department's total recoveries in False Claims Act cases since January 2009 will exceed $10.2 billion. During this same time, the department has secured $3.9 billion in criminal fines, forfeiture, disgorgement, and restitution relating to violations of the FDCA.
Related Materials:
Court Documents Related to Settlement with Abbott Laboratories
Remarks By Deputy Attorney James M. Cole Regarding Settlement with Abbott Laboratories
Remarks By Acting Associate Attorney General Tony West Regarding Settlement with Abbott Laboratories
Press Conference Photo Gallery
Friday 4 May 2012
Nine Alabama Family Members Indicted in Conspiracy<br /> to Obtain Tax Refunds Using Stolen IdentitiesRead the Press Release
Barbara Murry, Douglas Murry, Douglas Murry III, Yolanda Moses, Lee Moses, Veronica Temple, Jeffrey Temple, Almetta Johnson and Courtney Johnson were charged in an indictment by a federal grand jury in the Middle District of Alabama on a variety of counts stemming from an identity theft and tax fraud scheme, the Justice Department and the Internal Revenue Service (IRS) announced today. The 33-count indictment charges all nine with conspiring to defraud the United States and to commit theft of public funds and with theft of public funds. Barbara Murry, Yolanda Moses and Veronica Temple are also charged with aggravated identity theft. The indictment was unsealed today.
According to the indictment, all of the defendants are related to each other. Barbara Murry owned and operated B & B Weaving Shop, located in Montgomery, Ala. B& B Weaving Shop was located in the same building as B & B Tax Service. Barbara Murry’s daughter, Yolanda Moses, owned and operated B & B Tax Service. Between 2006 and 2012, Barbara Murry, Yolanda Moses and Veronica Temple allegedly filed false federal income tax returns with stolen identities and had refunds directly deposited into the bank accounts of the defendants and others. The bank accounts received at least $1.3 million in false tax refunds.
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, all the defendants face terms of five years in prison for the conspiracy charge and 10 years for each theft of government funds count. Barbara Murry, Veronica Temple and Yolanda Moses face mandatory 2-year sentences for the aggravated identity theft counts. All the defendants are also subject to fines and mandatory restitution if convicted.
Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney George L. Beck, Jr. commended the efforts of special agents of the IRS - Criminal Investigation, who investigated the case, and Trial Attorneys Jason H. Poole and Michael Boteler of the Tax Division, and Assistant U.S. Attorney Jared Morris, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.
Maryland Man Pleads Guilty to Conspiracy to Provide Material Support to TerroristsRead the Press Release
WASHINGTON – Mohammad Hassan Khalid, 18, a Pakistani citizen and U.S. lawful permanent resident who resided in Maryland, pleaded guilty today to conspiracy to provide material support to terrorists, stemming from his participation in a scheme to support, recruit and coordinate members of a conspiracy in their plan to wage violent jihad in and around Europe.
The guilty plea before U.S. District Judge Petrese B. Tucker in the Eastern District of Pennsylvania was announced by Lisa Monaco, Assistant Attorney General for National Security; Zane David Memeger, U.S. Attorney for the Eastern District of Pennsylvania; and George C. Venizelos, Special Agent in Charge of the Philadelphia Division of the FBI.
Khalid, aka “Abdul Ba’aree ‘Abd Al-Rahman Al-Hassan Al-Afghani Al-Junoobi W’at-Emiratee,” was charged with one count of conspiracy to provide material support to terrorists in a superseding indictment returned on Oct. 20, 2011. Khalid faces a potential sentence of 15 years in prison and a $250,000 fine at sentencing.
Khalid’s co-defendant, Ali Charaf Damache, aka “Theblackflag,” 46, an Algerian man who resided in Ireland, was charged with one count of conspiracy to provide material support to terrorists and one count of attempted identity theft to facilitate an act of international terrorism. Damache is in custody in Ireland and is being prosecuted there on an unrelated criminal charge.
“Today’s plea, which involved a radicalized teen in Maryland who connected with like-minded individuals around the globe via the Internet, underscores the evolving nature of violent extremism today,” said Assistant Attorney General Monaco. “I thank the many agents, analysts and prosecutors who helped bring about this case.”
“This case has demonstrated that age is not a limiter to threats to our nation’s security,” said U.S. Attorney Memeger. “Regardless of a defendant's age or background, we are committed to keeping our communities and our country safe through the investigation and prosecution of violent extremist activity.”
“This investigation and the guilty plea announced today underscores the continuing threat we face from violent extremism and radicalism, both from within our country and from across the world,” said FBI Special Agent in Charge Venizelos. “These threats can emerge from anywhere and from anyone, from individuals and groups in the farthest reaches of the globe or from those in the United States sitting in the perceived safety of their own homes.”
According to the plea memorandum, indictment and other court documents filed in the case, from about 2008 through July 2011, Khalid and Damache conspired with Colleen R. LaRose, Jamie Paulin Ramirez and others to provide material support and resources, including logistical support, recruitment services, financial support, identification documents and personnel, to a conspiracy to kill overseas.
LaRose, aka “Fatima LaRose,” aka “JihadJane,” pleaded guilty in February 2011 in the Eastern District of Pennsylvania to conspiracy to provide material support to terrorists, conspiracy to kill in a foreign country, false statements and attempted identity theft. Ramirez pleaded guilty in the Eastern District of Pennsylvania in March 2011 to conspiracy to provide material support to terrorists.
Khalid, Damache and others devised and coordinated a violent jihad organization consisting of men and women from Europe and the United States divided into a planning team, a research team, an action team, a recruitment team and a finance team; some of whom would travel to South Asia for explosives training and return to Europe to wage violent jihad.
As part of the conspiracy, Khalid, Damache, LaRose and others recruited men online to wage violent jihad in South Asia and Europe. In addition, Khalid, Damache, LaRose and others allegedly recruited women who had passports and the ability to travel to and around Europe in support of violent jihad. LaRose, Paulin-Ramirez and others traveled to and around Europe to participate in and support violent jihad. In addition, Khalid, LaRose and others also solicited funds online for terrorists.
For example, in July 2009, Khalid posted or caused to be posted an online solicitation for funds to support terrorism on behalf of LaRose and later sent electronic communications to multiple online forums requesting the deletion of all posts by LaRose after she was questioned by the FBI. In August 2009, Khalid sent a questionnaire to LaRose in which he asked another potential female recruit about her beliefs and intentions with regard to violent jihad. In addition, Khalid received from LaRose and concealed the location of a U.S. passport that she had stolen from another individual.
The Khalid case was investigated by the FBI Field Division in Baltimore, in conjunction with the FBI’s Joint Terrorism Task Force in Philadelphia and the FBI Field Divisions in New York and Washington, D.C. Authorities in Ireland also provided assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams, in the Eastern District of Pennsylvania, and Matthew F. Blue, Trial Attorney from the Counterterrorism Section of the Justice Department’s National Security Division. The Office of International Affairs in the Justice Department’s Criminal Division also provided assistance.
Former New Mexico Police Officer Pleads Guilty to <br /> <br /> Sexual AbuseRead the Press Release
Lawrence Etsitty, 30, a former police officer with the Navajo Police Department, pleaded guilty today in federal court to two charges related to the sexual abuse of a woman who was in his custody on Jan. 25, 2009. Etsitty pleaded guilty to violating the civil rights of the victim when he touched and kissed her against her will, while she was handcuffed. Etsitty also pleaded guilty to making false statements to the FBI in connection with the sexual assault. Etsitty did not enter a plea to the portion of the indictment that alleged the offense included kidnapping.
According to court documents, on Jan. 25, 2009, at approximately 2:40 a.m., Lawrence Etsitty, while working in his capacity as an officer of the Navajo Police Department, arrested the victim outside of the Fire Rock Casino in Churchrock, N.M. Etsitty then handcuffed the victim and placed her in the back of his patrol vehicle. However, Etsitty then radioed in to dispatch that he did not have evidence for an arrest and that he was going to release the victim.
Rather than releasing the victim and under the auspices of driving her home, Etsitty pulled off onto an isolated road in the desert, choosing this location because of its isolation and because there were no other vehicles or people nearby. He then opened the back door of his patrol car where the handcuffed victim was sitting, and forcibly pulled her toward him and out of the car. Etsitty then began touching the victim while she struggled to get free and pleaded with Etsitty to take her home. Ultimately, Etsitty dropped the victim off in a parking lot near her home, at which point the victim ran away. On Jan. 27, 2009, Etsitty voluntarily spoke to the FBI and made false statements in which he denied any sexually assaultive conduct.
“Any law enforcement officer who uses his official authority as a means of preying upon and sexually abusing a person in his custody undermines the trust between citizens and police officers that is crucial to our justice system,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Department of Justice and the Civil Rights Division commends the victim who came forward to report this reprehensible conduct and will vigorously prosecute sexual assaults by law enforcement officers.”
Etsitty faces a maximum sentence of up to six years in prison. A sentencing date has not yet been scheduled.
This case was investigated by the Albuquerque Division of the FBI and is being prosecuted by Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
Thursday 3 May 2012
U.S. and State of Ohio Reach $5.5 Million Settlement for Damages from Hazardous Releases in Lower Ashtabula River and HarborRead the Press Release
WASHINGTON – The Department of Justice and Ohio Attorney General have reached a proposed settlement of claims for injuries to natural resources caused by past releases and discharges of hazardous substances into the lower Ashtabula River and Harbor in northeast Ohio. The consent decree, valued at approximately $5.5 million, was filed today in the U.S. District Court for the Northern District of Ohio on behalf of the designated natural resource trustees, including the Department of the Interior, National Oceanic and Atmospheric Administration and Ohio Environmental Protection Agency.
“This agreement will compensate the public for precious natural resources that were damaged by hazardous pollutants released into the Ashtabula watershed over more than half a century,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “The settlement also fosters the restoration of wildlife habitat and recreational resources along the Ashtabula that the people of Ohio will be able to enjoy for many years to come.”
“Completion of these negotiations marks a major milestone in our collective efforts to restore the Ashtabula River,” said Ohio Attorney General Mike DeWine. “Careful stewardship of our waterways and natural resources will ensure that they can be enjoyed by our kids and grandkids. The federal and state trustees are to be commended for their diligent efforts.”“This settlement is the result of close coordination among the natural resource trustees, local community stakeholders, and the responsible parties,” said U. S. Fish and Wildlife Service Midwest Regional Director Tom Melius. “This successful collaboration has resulted in a win-win proposition for the Ashtabula River basin community, enabling community enjoyment of the outdoors and wildlife while promoting a healthy community economy.”
The agreement provides for the acquisition of several ecologically-valuable properties along the Ashtabula River, implementation of habitat restoration projects and land use restrictions to protect restoration properties and reimbursement of natural resource damage assessment costs incurred by the natural resource trustees.
“It is important to maintain recreational and economic vitality along the Ashtabula River,” said Ohio EPA Director Scott Nally. “Our Agency will continue to work to restore and protect this great resource that is an essential part of these Northeast Ohio communities.”
Complaints filed by the United States and state of Ohio allege that at various times since the 1940s, numerous industrial facilities in Ashtabula released hazardous pollutants to the river including polychlorinated biphenyls, polycyclic aromatic hydrocarbons, chlorinated solvents and low-level radioactive materials. The released hazardous substances injured natural resources in the Ashtabula River and Harbor, resulting in fish consumption advisories and impaired navigational use of the river. To compensate the public for the value of impaired or lost natural resources, the complainants sought damages from parties that allegedly owned or operated (either directly or through predecessors) facilities where hazardous substances were released and from parties that allegedly arranged for disposal of hazardous substances at one or more of the facilities. Eighteen companies are participating in the settlement. Several federal agencies are also responsible for making payments totaling approximately $768,800.
Dredging projects carried out under the Great Lakes Legacy Act and the Water Resources Development Act removed almost 600,000 cubic yards of contaminated sediments from the lower Ashtabula River between 2006 and 2008. The responsible parties previously contributed approximately $23 million toward the cost of the sediment cleanup, and many of the parties also participated in a cleanup of the Fields Brook superfund site, an alleged source of contamination in the lower Ashtabula River.
With contamination already dredged from the river, the proposed settlement targets habitat enhancement and protection. Under the consent decree, restoration projects approved by the natural resource trustees will be implemented by two groups of responsible parties – a group of four railroad companies and a separate group of 14 companies known as the Ashtabula River Cooperating Group II (ARCG II).
The railroads will implement a restoration project on a 6.4 acre riparian parcel known as the 5½ Slip peninsula, which abuts a fish habitat enhancement project previously constructed as part of the Great Lakes Legacy Act sediment cleanup project. The restoration project will include replacing invasive plant species with a diverse array of native plants; excavating a channel across the peninsula to establish a hydrologic connection between the 5½ Slip and main channel of the Ashtabula River; and establishing an area of emergent wetland habitat along the newly constructed channel. Land use restrictions will be established on the 5 ½ Slip peninsula to protect the character of the restored property.ARCG II has agreed to develop and implement various restoration projects identified in the consent decree. One of the restoration properties, known as the former CDM property, is a 28-acre riverfront parcel along the northern boundary of Indian Trails Park. The restoration project will include enhancing a six-acre wetland area through invasive species control; planting a diverse array of native vegetation; and installing other improvements, including a canoe launch, boardwalk and small parking area to facilitate public use of the property.
Five other ARCG II restoration properties identified in the decree contain high natural resource value, including rare fen habitat, old growth forest and areas that provide ideal habitat and foraging for various threatened or endangered species. These properties occupy more than 200 acres and include 3.4 miles of river frontage. Some adjoin or are close to park areas held by the Ashtabula Township Park Commission. Collectively, these properties will preserve a natural corridor along an urbanized stretch of river.
In addition to restoration properties already acquired by ARCG II, the proposed settlement allows trustees to identify additional properties for possible acquisition and restoration. ARCG II agreed to spend up to $1.45 million to acquire and restore additional properties.The trustees will approve all restoration work. The restoration properties will ultimately be transferred to park districts, non-profit organizations or other institutions acceptable to the trustees. The properties also will be subject to environmental covenants that establish land use restrictions designed to preserve the natural resource value of the properties.
The proposed settlement is subject to approval by the district court following a 30 day public comment period. A copy of the consent decree will be available at www.justice.gov/enrd/Consent_Decrees.html.
For more information on Ashtabula River restoration efforts visit www.fws.gov/midwest/es/ec/nrda/ashtabularivernrda/.