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Thursday 16 September 2010
Residente de California sentenciado a 72 meses de prisión por lavar $2.5 millones de dólares de ganancias ilegales de la venta de información robada de tarjetas de créditoRead the Press Release
WASHINGTON – César Carranza, 38, un residente de Long Beach, Calif., fue sentenciado hoy a 72 meses de prisión por su papel en el lavado de $2.5 millones de dólares de ganancias derivadas de diversos ardides de robo de información de tarjetas de crédito, anunciaron el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal y la Fiscal Federal Loretta E. Lynch del Distrito Este de Nueva York.
Carranza fue sentenciado en el Tribunal Federal de Distrito en Brooklyn, N.Y. por el Juez Federal de Distrito Leo Glasser. Carranza se declaró culpable el 3 de diciembre de 2009 de un cargo de conspirar para lavar ganancias de actividades ilegales.
Según el expediente judicial, Carranza, usando el apodo en línea "uBuyWeRush", participó en la conspiración de lavado de dinero desde Long Beach entre abril de 2004 y noviembre de 2006 y recibió depósitos en efectivo de "tarjeteros": delincuentes responsables de fraude con tarjetas de crédito que usan información robada de tarjetas de crédito. Carranza empleó diversos métodos para lavar ganancias de los ardides ilegales, entre ellos actuar de cambiador de divisas para un sistema de pago en línea conocido como e-Gold. E-Gold Ltd. fue condenada previamente en julio de 2008 de conspirar para realizar lavado de dinero y tres de sus directores fueron condenados por operar una empresa de transmisión de dinero sin licencia.
Estuvieron a cargo de la acusación en el caso el Abogado Litigante Jaikumar Ramaswamy de la Sección de Delitos de Informática y Propiedad Intelectual de la División Criminal y el Fiscal Federal Auxiliar William Campos de la Fiscalía Federal para el Distrito Este de Nueva York. Este caso fue investigado por la Fuerza de Tarea de Delitos Electrónicos del Servicio Secreto de los EE.UU. en Nueva York.
Massachusetts Couple Sentenced to Prison for Tax CrimesRead the Press Release
WASHINGTON - Frederick Allen and Kimberlee Allen, both of Harwich, Mass., were sentenced to three years in prison for conspiracy, tax evasion and failure to file tax returns, the Justice Department and Internal Revenue Service (IRS) announced today. A jury convicted the couple on April 21, 2010.
At trial the government presented evidence that proved that Frederick and Kimberlee Allen, who own a business on Cape Cod that specialized in nutritional and vitamin consulting, did not submit tax returns to the IRS since tax year 1999. The evidence was that the two conspired to conceal their assets and income from the IRS.
Among other acts, the government proved that the Allens concealed their income and assets from the IRS by receiving unreported wages, putting their residence in a trust, assigning their wages to third parties and using cash. Despite working in 1998 and 1999, Kimberlee Allen as a nurse practitioner and Frederick Allen as office administrator at various medical and nutrition offices on the Cape, the two filed income tax returns with the IRS that reported zero income and zero taxes due. From 2000 on, the IRS tried to obtain the outstanding taxes due and owing from the Allens. Instead of paying what they owed, the Allens refused to file income tax returns and engaged in a pattern of conduct intended to obstruct the IRS and conceal their assets and income from the IRS.
“Prosecuting individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system,” said William P. Offord, Special Agent in Charge, IRS Criminal Investigation. “Tax evasion is not a victimless crime. Honest, hardworking Americans pay the price when others choose to evade their tax obligations.”
Acting Assistant Attorney General John DiCicco commended the investigative efforts of IRS Criminal Investigation and the Massachusetts Department of Revenue, as well as Tax Division Trial Attorneys Karen Kelly and Michelle Petersen, who prosecuted the case.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.
Judy A. Robbins Appointed U.S. Trustee for Southern and Western TexasRead the Press Release
WASHINGTON – Judy A. Robbins has been appointed by Attorney General Eric Holder as U.S. Trustee for southern and western Texas (Region 7) and will assume her duties on September 27, 2010, the Executive Office for U.S. Trustees announced today. She replaces Charles F. McVay, the U.S. Trustee for Colorado, Utah and Wyoming (Region 19), who has also served as U.S. Trustee for Region 7.
Ms. Robbins has served as an Assistant U.S. Attorney, Civil Division, in the Southern District of Texas since 1992, focusing on bankruptcy, civil fraud, commercial litigation and employment discrimination. In 2007, Ms. Robbins received the Environmental Protection Agency’s (EPA) National Awards, Silver Medal, and the EPA’s Notable Achievement Award, Superfund Team of the Year, for her work on a major case involving environmental remediation. Before joining the U.S. Attorney’s Office, she served as a bankruptcy attorney for the Federal Deposit Insurance Corporation in Houston. She has also served as a trial attorney for the U.S. Trustee’s office in Houston, an estate administrator for the U.S. Bankruptcy Court for the Southern District of Texas and a pro se law clerk for the U.S. District Court for the Southern District of Texas.
Ms. Robbins received her law degree from the University of Houston College of Law and her undergraduate degree cum laude from the University of Houston.
The U.S. Trustee Program (USTP) is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices. Region 7 is headquartered in Houston with additional offices in Austin, Corpus Christi and San Antonio, Texas.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Former Nexus Technologies Inc. Employees and Partner Sentenced for Roles in Foreign Bribery Scheme Involving Vietnamese OfficialsRead the Press Release
WASHINGTON – Three former employees and a partner of Nexus Technologies Inc. (Nexus), a Philadelphia-based company, were sentenced late yesterday for their roles in a conspiracy to bribe officials of the Vietnamese government in exchange for lucrative contracts to supply equipment and technology to Vietnamese government agencies, in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania.
The president and owner of the company, Nam Nguyen, was sentenced to 16 months in prison and ordered to serve two years of supervised release following the prison term. His sibling, An Nguyen, was sentenced to nine months in prison, followed by three years of supervised release. His other sibling, Kim Nguyen, was sentenced to two years of probation and ordered to pay a $20,000 fine. Joseph Lukas, a former partner with Nexus, also was sentenced to two years of probation and ordered to pay a $1,000 fine.
Nexus; Nam Nguyen, 54, of Houston and Vietnam; Kim Nguyen, 41, of Philadelphia; and An Nguyen, 34, of Philadelphia, were charged in a superseding indictment on Oct. 30, 2009, with conspiracy, violations of the FCPA, violations of the Travel Act in connection with commercial bribes, and money laundering. Nexus pleaded guilty on March 16, 2010, to all the charges filed against the company in the superseding indictment, and agreed to cease operations and dissolve.
Nam and An Nguyen pleaded guilty on March 16, 2010, to conspiracy, substantive FCPA violations, violating the Travel Act and money laundering. Kim Nguyen pleaded guilty on March 16, 2010, to conspiracy, substantive FCPA violations and money laundering. Lukas pleaded guilty on June 29, 2009, to conspiracy and to violating the FCPA.
According to court documents, Nexus was a privately-owned export company that identified U.S. vendors for contracts opened for bid by the Vietnamese government and other companies operating in Vietnam to purchase a wide variety of equipment and technology, including underwater mapping equipment, bomb containment equipment, helicopter parts, chemical detectors, satellite communication parts and air tracking systems. Nam Nguyen negotiated the contracts and bribes with the Vietnamese government agencies and employees. Kim Nguyen, vice president of the company, oversaw the U.S. operations and handled finances. An Nguyen identified U.S. vendors to supply the goods needed to fulfill the contracts.
In connection with the guilty pleas, Nexus and the Nguyens admitted that from 1999 to 2008 they agreed to pay, and knowingly paid, bribes to Vietnamese government officials in exchange for contracts with the agencies and companies for which the bribe recipients worked. The bribes were falsely described as "commissions" in the company’s records. In pleading guilty, the corporation, Nexus, also acknowledged that it operated primarily through criminal means and agreed to cease operations.
The case was prosecuted by Trial Attorney Kathleen M Hamann of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania. The case was investigated by the Philadelphia, Newark, N.J., and Houston field offices of the FBI and the U.S. Department of Commerce, Office of Export Enforcement.
The Justice Department acknowledges and expresses its appreciation for the assistance provided by the authorities of the Independent Commission Against Corruption of the Hong Kong Special Administrative Region.
Former Indianapolis City-County Councilman Charged with Soliciting a Bribe and Attempted ExtortionRead the Press Release
WASHINGTON – Former Indianapolis and Marion County, Ind., City-County Councilman Lincoln Plowman has been charged with attempted extortion and soliciting a bribe, announced Assistant Attorney General Lanny A. Breuer for the Criminal Division and U.S. Attorney Timothy M. Morrison of the Southern District of Indiana.
The indictment, returned by a federal grand jury in the Southern District of Indiana, alleges that between Aug. 11, 2009, and Dec. 22, 2009, while a member of the City-County Council, Plowman solicited an undercover FBI agent to pay $5,000 in cash and to make a $1,000 campaign contribution for Plowman’s benefit. In exchange for the payments, Plowman allegedly would use his official actions and influence to facilitate the opening of a strip club in Indianapolis. According to the indictment, Plowman was a member of the Metropolitan Development Committee of the City-County Council. He was also a major with the Indianapolis Metropolitan Police Department.
Plowman faces a maximum penalty on the extortion charge of 20 years in prison and a $250,000 fine. He faces a maximum penalty on the bribery charge of 10 years in prison and a $250,000 fine. An initial hearing will be scheduled before a U.S. Magistrate Judge in the Southern District of Indiana.
An indictment is merely a charge and defendants are presumed innocent until proven guilty.
The case is being prosecuted by Senior Trial Attorney Richard C. Pilger of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Joe H. Vaughn. The case is being investigated by the FBI.
Former Guatemalan Special Forces Soldier Sentenced to 10 Years in Prison for Making False Statements on Naturalization Forms Regarding 1982 Massacre of Guatemalan VillagersRead the Press Release
WASHINGTON – Gilberto Jordan, 54, a former Guatemalan special forces soldier, was sentenced today by U.S. District Judge William J. Zloch in the Southern District of Florida to 10 years in prison for unlawfully procuring his U.S. citizenship by lying about his participation in a 1982 massacre at a Guatemalan village known as Dos Erres, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida and Director John Morton of U.S. Immigration and Customs Enforcement (ICE). At sentencing, Judge Zloch also revoked Jordan’s citizenship.
According to court documents, in approximately November 1982, a Guatemalan guerrilla group ambushed a military convoy near Dos Erres, Guatemala, killing soldiers and taking a number of rifles. In response, a patrol of approximately 20 Guatemalan special forces soldiers, known as "Kaibiles," including Jordan, was deployed in December 1982 to the village of Dos Erres to search for the stolen rifles and find suspected guerrillas. According to court documents, on Dec. 7, 1982, Jordan and the special patrol entered Dos Erres with the support of approximately 40 additional Kaibiles, who created a security perimeter around the village so that no one could escape. The members of the special patrol searched all of the houses for the missing weapons, forced the villagers from their homes, and separated the women and children from the men.
Members of the special patrol then proceeded to systematically kill the men, women and children at Dos Erres by, among other methods, hitting them in the head with a sledgehammer and then pushing them into the village well, according to information contained in court documents. Members of the special patrol also forcibly raped many of the women and girls at Dos Erres before killing them. Approximately 162 skeletal remains were later exhumed from the village well.
At his plea hearing, Jordan admitted that he had been a Kaibil in the Guatemalan military who participated in the massacre at Dos Erres. Jordan also admitted that the first person he killed at Dos Erres was a baby, whom Jordan murdered by throwing in the well.
"Gilberto Jordan obtained the privilege of U.S. citizenship by lying about his prior military service and concealing his brutal, murderous participation in the Dos Erres massacre," said Assistant Attorney General Breuer. "Over the last 30 years, the Department of Justice has strived to ensure that human rights violators who flee to the United States are found, that their reprehensible past actions are proved, and that they are stripped of their ill-gotten U.S. citizenship. This case and others like it demonstrate that such perpetrators will not be allowed to make this country their home."
"The Southern District of Florida is home to many hardworking immigrants who have fled political persecution," said U.S. Attorney Wifredo A. Ferrer. "Today’s sentencing and the judge’s decision to impose the statutory maximum sentence make clear that perpetrators of human rights abuses cannot hide among us and blend in with their victims. They will be found, prosecuted, and punished."
ICE Director John Morton said, "Today’s sentence sends a message to those human rights violators worldwide. We will not turn a blind eye on the perpetrators of such egregious crimes. ICE’s Homeland Security Investigations agents will continue to work tirelessly to ensure that human rights violators cannot seek safe haven in the United States."
According to court documents, when Jordan applied to become a U.S. citizen in September 1996, he falsely denied that he had ever served in the military or committed any crimes for which he had not been arrested. In July 1999, when Jordan was interviewed by a naturalization examiner in connection with his naturalization application, he falsely swore under oath that the answers he had provided earlier on his application were true and correct. Jordan was sworn in as a U.S. citizen on Aug. 25, 1999.
The case was prosecuted by Trial Attorneys Hillary Davidson and Brian Skaret of the Criminal Division’s Human Rights and Special Prosecutions Section, and by Assistant U.S. Attorney A. Marie Villafaña of the Southern District of Florida. The case was investigated by ICE’s Homeland Security Investigations in West Palm Beach, Fla., and ICE’s Human Rights Violators and War Crimes Unit and ICE’s Office of International Affairs. The Criminal Division’s Office of International Affairs provided assistance in this matter.
California Resident Sentenced to 72 Months in Prison for Laundering $2.5 Million in Illegal Proceeds from Sale of Stolen Credit Card InformationRead the Press Release
WASHINGTON – Cesar Carranza, 38, a resident of Long Beach, Calif., was sentenced today to 72 months in prison for his role in laundering $2.5 million dollars in proceeds derived from several stolen credit card information schemes, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Loretta E. Lynch for the Eastern District of New York.
Carranza was sentenced in U.S. District Court in Brooklyn, N.Y., by U.S. District Judge I. Leo Glasser. Carranza pleaded guilty on Dec. 3, 2009, to one count of conspiring to launder proceeds of unlawful activity.
According to court documents, Carranza, using the online nickname "uBuyWeRush," participated in the money laundering conspiracy from Long Beach, between April 2004 to November 2006, and received cash deposits from "carders"– criminals responsible for engaging in credit card fraud using stolen credit card information. Carranza used a variety of methods to launder proceeds of the illegal schemes, including acting as a money exchanger for an online payment system known as e-Gold. E-Gold Ltd., was previously convicted in July 2008 of conspiracy to engage in money laundering, and three of its directors were convicted of operating an unlicensed money transmitting business.
The case was prosecuted by Trial Attorney Jaikumar Ramaswamy of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney William Campos of the U.S. Attorney’s Office for the Eastern District of New York. This case was investigated by the Electronic Crimes Task Force of the U.S. Secret Service in New York.
American Samoa Department of Education Official Arrested for Alleged Witness Tampering, Obstruction of JusticeRead the Press Release
WASHINGTON – Paul Solofa, the director of the school lunch program for the government of the U.S. Territory of American Samoa, has been arrested on charges of witness tampering and obstruction of justice, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.
Solofa, 49, a resident of American Samoa, is charged in a two-count indictment returned by a federal grand jury in the District of Columbia on Sept. 10, 2010, and unsealed today. The indictment charges Solofa with one count of witness tampering and one count of obstruction of justice. Solofa was arrested yesterday and is expected to make his initial appearance tomorrow before Magistrate Judge Leslie E. Kobayashi in U.S. District Court for the District of Hawaii.
According to the indictment, in approximately late 2007 and early 2008, federal authorities began conducting an investigation into allegations of bribes and kickbacks paid by vendors to officials of the American Samoa Government in connection with the government’s purchase of school bus parts and services.
According to the indictment, Solofa met on April 3, 2009, with a school bus parts vendor who told Solofa that the FBI was interested in interviewing the vendor regarding the bus parts investigation. Solofa, in a recorded meeting according to the indictment, allegedly told the vendor that, “They cannot do anything with cash. Nothing. They cannot do anything with cash. They cannot track down you on cash. Because even if you say you gave me cash I'll tell them ‘no.’ They cannot take your word on cash. Because that's hearsay. So you know, but the best thing for you to do is ‘nope, I never give them any cash, I never’ – because that will open up the whole operation . . . You get what I am saying. All you do is just tell them ‘no, yes, no, yes,’ period.”
In addition, according to the indictment, Solofa met on April 14, 2009, with the same bus parts vendor, who told Solofa that a grand jury subpoena compelling production of specific documents and records, some of which related to Solofa, would be issued shortly. After discussing how to respond, Solofa allegedly told the vendor that, as for documents he did not want to produce, “ [t]he only way to do it with those copies is burn it. That way, they won’t see it, and you won’t worry that they might see it, you know . . . Just burn it, and nobody has a copy.”
Solofa faces a maximum of 20 years in prison and a $250,000 fine on the witness tampering charge and 10 years in prison and a $250,000 fine on the obstruction of justice charge.
An indictment is merely a charge and defendants are presumed innocent until proven guilty.
This case is being prosecuted by Trial Attorneys Timothy J. Kelly and Kathryn H. Albrecht of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI; the Office of the Inspector General for the U.S. Department of Education; and the Office of the Inspector General for the U.S. Department of the Interior.
Wednesday 15 September 2010
Vice President of Florida Corporation Pleads Guilty to 16 Counts of Transporting Child PornographyRead the Press Release
WASHINGTON – Jeffrey Robert Libman, the vice president and co-director of Webe Web Corporation, a Florida corporation, pleaded guilty today to 16 counts of transporting child pornography, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Joyce White Vance of the Northern District of Alabama.
Libman, 43, of Ft. Lauderdale, Fla., pleaded guilty before U.S. District Court Judge C. Lynwood Smith in the Northern District of Alabama. Libman faces a minimum sentence of five years in prison and a maximum sentence of 20 years in prison per count.
According to court documents, Webe Web was the registered owner of the website “ www.childsupermodels.com,” which purported to be a child modeling website that promoted models 7- through 16-years old and their photographers. It contained hyperlinks to websites containing photographs of individual “child super models” featuring minor female children in various poses and wardrobes. According to court documents, Libman was responsible for building and maintaining these websites.
Libman admitted that the websites pertaining to 16 different children contained illegal images of child pornography. In some of the photos, the victims, all girls aged 8 to 15, were wearing underwear, lingerie, bathing suits and other revealing outfits, and were posed in positions that constituted child pornography.
According to court documents, viewers of the websites could preview a certain number of images for free on the website homepage. If viewers wanted to join the website to access additional photographs, they could purchase a 30-day membership for approximately $30 per month. Libman admitted that the websites depicting the 16 victims generated approximately $1 million in revenue.
Libman also admitted that Webe Web promoted subscriptions to these individual sites through its free advertising website known as Babble Club. On Babble Club’s website, members could receive a free sample of images of the children. According to court documents, the website encouraged the purchase of subscriptions to the individual websites of the children, and hosted discussion boards and groups which were devoted to each individual website. Babble Club members made postings to the discussion boards, which included comments on specific images they liked, the type of clothing and poses they liked, and poetry written to the photographed child. Certain members posted expressions of fondness and devotion for a photographed child.
In April 2010, Webe Web pleaded guilty to one count of conspiracy to produce child pornography and 16 counts of transporting child pornography. The president and co-director of Webe Web, Marc Evan Greenberg, also pleaded guilty in April 2010 to one count of money laundering based on his processing of the proceeds generated by Webe Web through its distribution of images of child pornography. According to its plea agreement, Webe Web will forfeit $1 million and 19 internet domain names.
According to court documents, the photographs of the 16 victims in this case were taken by Jeff Pierson, a former photographer based in the Birmingham, Ala., area. Pierson pleaded guilty in January 2007 to conspiracy to transport child pornography and transportation of child pornography. He is scheduled to be sentenced on Sept. 17, 2010.
According to his plea agreement, Libman was charged in an unrelated case in the Southern District of Florida. Libman pleaded guilty in September 2009 to one count of receipt of child pornography and was sentenced in November 2009 to 87 months in prison.
This case is being prosecuted by Assistant U.S. Attorneys Jim Phillips and Daniel J. Fortune of the Northern District of Alabama, and Assistant Deputy Chief Alexandra Gelber of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).
This case was investigated by the FBI and the U.S. Postal Inspection Service. The Document and Media Exploitation Branch of the National Drug Intelligence Center provided assistance in ascertaining the revenue flow of this criminal enterprise to support analysis of and to identify the ill gotten gains of the defendants.
Two Intermediaries Indicted for Their Alleged Participation in Scheme to Bribe Officials at State-owned Electrical Utility in MexicoRead the Press Release
WASHINGTON – Two intermediaries were indicted for their alleged roles in a conspiracy to pay and launder bribes to Mexican government officials at the Comisión Federal de Electricidad (CFE), a state-owned utility company, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney André Birotte for the Central District of California; Steven M. Martinez, Special Agent-in-Charge of the FBI’s Los Angeles Field Office; and Leslie DeMarco, Special Agent-in-Charge of the Internal Revenue Service - Criminal Investigation’s (IRS-CI) Los Angeles Field Office.
Enrique Faustino Aguilar Noriega, 56, of Cuernavaca, Mexico, was charged in a seven-count indictment returned by a federal grand jury in Los Angeles on Sept. 15, 2010, with conspiracy to violate the Foreign Corrupt Practices Act (FCPA), FCPA violations, money laundering conspiracy and money laundering. Angela Maria Gomez Aguilar, 55, of Cuernavaca, was charged with money laundering conspiracy and money laundering.
According to the indictment, CFE is responsible for supplying electricity in Mexico and contracts with Mexican and foreign companies for goods and services to help supply electricity services to its customers.
The indictment alleges that Enrique and Angela Aguilar were directors of Grupo Internacional de Asesores S.A. (Grupo), which purported to provide sales representation services for companies doing business with CFE. According to the indictment, Grupo was hired by an Azusa, Calif.,-based company to serve as its sales representative in Mexico and to obtain contracts for it from CFE. Grupo received a percentage of the revenue the Azusa-based company realized from its contracts with CFE. The Azusa-based company manufactured emergency restoration systems and other equipment used by electrical utility companies. According to the indictment, many of the company’s clients were foreign, state-owned utilities, including CFE, which was one of the company’s most significant customers.
From approximately February 2002 until March 2009, Enrique Aguilar and his co-conspirators allegedly orchestrated a scheme in which Enrique Aguilar was paid a 30 percent commission on all the goods and services the Azusa-based company sold to CFE, even though this was a significantly higher commission than previous sales representatives for the company had received. The indictment alleges that Enrique Aguilar’s co-conspirators understood that all or part of the 30 percent commission would be used to pay bribes to Mexican officials in exchange for CFE awarding contracts to the Azusa-based company. The costs of goods and services sold to CFE allegedly were increased by 30 percent to ensure that the added cost of paying Enrique Aguilar was absorbed by CFE and not the Azusa-based company.
Enrique Aguilar allegedly caused fraudulent invoices to be submitted from Grupo to the Azusa-based company for 30 percent of the contract price. According to the indictment, a co-conspirator would then wire the money requested in the fraudulent invoices into Grupo’s brokerage account, allegedly knowing that the invoices were fraudulent and the funds were being used as bribes.
Enrique and Angela Aguilar allegedly then laundered the money in the Grupo brokerage account to make concealed payments for the benefit of CFE officials. According to the indictment, Enrique and Angela Aguilar purchased a yacht for approximately $1.8 million and a Ferrari for $297,500 for a CFE official. According to the indictment, Enrique and Angela Aguilar also paid more than $170,000 worth of American Express bills for a CFE official and sent approximately $600,000 to relatives of a CFE official.
Angela Aguilar was arrested on Aug. 10, 2010, on a criminal complaint when she travelled to Houston from Mexico. She was ordered detained and removed to the Central District of California, where she remains in custody.
An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
The FCPA conspiracy charge carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost. Each of the four FCPA counts carries a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost. The conspiracy and substantive money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction. The indictment also gives notice of criminal forfeiture.
The case is being prosecuted by Senior Trial Attorney Nicola J. Mrazek of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Douglas M. Miller in the Central District of California. The case was investigated by the FBI’s Los Angeles Field Office and the IRS-CI Los Angeles Field Office, with the assistance of the Department of Homeland Security Office of Inspector General. Significant assistance was provided by Trial Attorney Christopher Dana of the Criminal Division’s Office of International Affairs.
Reclutadores de pacientes de servicios médicos a domicilio condenados por conspiraciónRead the Press Release
WASHINGTON – Antonio Ochoa, un reclutador de pacientes de agencias de salud a domicilio de Miami, fue condenado hoy por un jurado federal en Miami de un cargo de conspirar para cometer fraude de servicios médicos y tres cargos de solicitar y recibir comisiones ilegales y sobornos, anunciaron el Departamento de Justicia y el Departamento de Salud y Servicios Humanos [Health and Human Services (HHS)].
Según pruebas presentadas en el juicio, Ochoa era un reclutador de pacientes y asistente de servicios médicos a domicilio de ABC Home Health Inc. y Florida Home Health Care Providers Inc. ABC y Florida Home Health alegaban brindar servicios de terapia física y servicios médicos a domicilio a beneficiarios de Medicare. Las pruebas presentadas en el juicio determinaron que Ochoa solicitó y recibió decenas de miles de dólares en cheques y pagos en efectivo como comisiones ilegales y sobornos a cambio de referir beneficiarios de Medicare a ABC y Florida Home Health.
Según pruebas y testimonios presentados en el juicio, Ochoa y su codemandado Eduardo Romero actuaban como asociados en el ardid de reclutamiento y recibían comisiones ilegales y sobornos de aproximadamente $1,300 dólares por beneficiario de Medicare de los propietarios de ABC y Florida Home Health. Las agencias de servicios médicos a domicilio luego le facturaban al programa Medicare a nombre de los beneficiarios de Medicare que Ochoa y Romeo reclutaban. Las pruebas presentadas en el juicio determinaron que ABC y Florida Home Health facturaban servicios médicamente innecesarios al programa Medicare que a menudo nunca se brindaban, como visitas de enfermería dos veces por día para inyecciones de insulina para diabéticos, visitas de auxiliares médicos y terapia para los beneficiarios. Romero se declaró culpable de conspirar para cometer fraude de servicios médicos y recibir comisiones ilegales en julio de 2010 y testificó en el juicio.
Según los testimonios presentados en el juicio, Ochoa y Romero también le solicitaron al codemandado Francisco Portillo, un enfermero que testificó en el juicio, que les pagara comisiones ilegales y sobornos para asegurarse de que Portillo fuera designado por ABC y Florida Home Health como enfermero para los beneficiarios que ellos reclutaban. Las pruebas mostraron que Portillo recibió un pago por parte de las agencias por cada paciente que se le asignó. Portillo testificó que falsificaba notas de enfermería para que pareciera que los pacientes reclutados necesitaban y calificaban para los servicios médicos a domicilio, aunque no era así, y en muchos casos Portillo ni siquiera brindó los servicios. Portillo, que se declaró culpable de un cargo de conspirar para cometer fraude de servicios médicos y un cargo de realizar declaraciones falsas en expedientes de pacientes, también testificó que uno de los pacientes reclutados por Ochoa y Romero ni siquiera era un diabético dependiente de insulina.
Según las pruebas presentadas durante el juicio, Ochoa sabía que los pacientes no calificaban para recibir los servicios ni los necesitaban. Portillo testificó que los expedientes de los pacientes beneficiarios de Medicare reclutados por Ochoa eran falsificados para que pareciera que calificaban para servicios médicos a domicilio y terapia de manera tal que se pudieran facturar a Medicare.
En la emisión de la sentencia, Ochoa enfrenta un máximo de 10 años de prisión por el cargo de conspiración para cometer fraude de servicios médicos y cinco años de prisión por cada uno de los tres cargos de comisiones ilegales.
En el caso también se acusó al Dr. Fred Dweck; Yudel Cayro y Arturo Fonseca, propietarios de Courtesy Medical Group, donde trabajaba el Dr. Dweck; los enfermeros Isis Torres, Francisco Portillo, Teresita Leal, Armando Sànchez, Sheillah Rotta, Silvio Ruiz, Lissbet Díaz, Marlenys Fernàndez, Alain Fernàndez; y el beneficiario de Medicare William Madrigal.
El Dr. Dweck admitió emitir recetas, planes de cuidados y certificados médicos para servicios innecesarios de servicios médicos a domicilio y terapia para más de 848 beneficiarios de Medicare. Como resultado de los referidos del Dr. Dweck, de los cuales 344 fueron a través de Courtesy Clinic, diversas agencias de servicios médicos a domicilio del área de Miami realizaron reclamos falsos y fraudulentos al programa Medicare por un valor superior a los $37 millones de dólares. El Dr. Dweck se declaró culpable de un cargo de conspirar para cometer fraude de servicios médicos y un cargo de realizar declaraciones falsas en expedientes de pacientes; Cayro se declaró culpable de un cargo de conspirar para cometer fraude de servicios médicos; Fonseca se declaró culpable de un cargo de conspirar para cometer fraude de servicios médicos y varios cargos de recibir comisiones ilegales; y cada uno de los enfermeros se declaró culpable de un cargo de conspirar para cometer fraude de servicios médicos y un cargo de realizar declaraciones falsas en expedientes de pacientes. Cada uno de los demandados en este caso será sentenciado ante el Juez Federal de Distrito Adalberto Jordan en el Tribunal Federal de Distrito en Miami más adelante este año.
La condena fue anunciada por el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal; el Fiscal Federal Wifredo A. Ferrer del Distrito Sur de Florida; John V. Gillies, Agente Especial a Cargo de la Oficina Local de Miami del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]; y el Agente Especial a Cargo Christopher Dennis de la Oficina de Investigaciones de Miami de la Oficina del Inspector General [Office of the Inspector General (OIG)] del HHS.
Estuvieron a cargo de la acusación en el caso los Abogados Litigantes N. Nathan Dimock, Sam Sheldon y Henry Van Dyck de la Sección de Fraude de la División Criminal, con asistencia de la Fiscalía Federal de Miami. Este caso fue investigado por el FBI y la HHS-OIG, y fue entablado como parte de la Fuerza de Ataque de Fraude contra Medicare.
Desde su creación en marzo de 2007, las operaciones de la Fuerza de Ataque de Fraude contra Medicare en siete distritos lograron la acusación formal de 810 personas que, en conjunto, facturaron fraudulentamente al programa Medicare más de $1.85 billones de dólares. Además, los Centros para Servicios de Medicare y Medicaid del HHS, en trabajo conjunto con la HHS-OIG, están tomando medidas para lograr una mayor responsabilización y una menor presencia de proveedores fraudulentos.
Para obtener más información sobre el Equipo de Acción, Prevención y Control de Fraude de Servicios Médicos [Healthcare Fraud Prevention and Enforcement Action Team (HEAT)], visite: www.stopmedicarefraud.gov
Miami Home Health Patient Recruiter Convicted of ConspiracyRead the Press Release
WASHINGTON – Antonio Ochoa, a patient recruiter for Miami home health agencies, was convicted today by a federal jury in Miami of one count of conspiracy to commit health care fraud and of three counts of soliciting and receiving kickbacks and bribes, announced the Departments of Justice and Health and Human Services (HHS).
According to evidence at trial, Ochoa was a patient recruiter and home health aide for ABC Home Health Inc. and Florida Home Health Care Providers Inc. ABC and Florida Home Health purported to provide physical therapy and home health services to Medicare beneficiaries. Evidence at trial established that Ochoa solicited and received tens of thousands of dollars in checks and cash payments as kickbacks and bribes in exchange for referring Medicare beneficiaries to ABC and Florida Home Health.
According to evidence and testimony presented at trial, Ochoa and his co-defendant Eduardo Romeo acted as partners in the recruiting scheme and received kickbacks and bribes of approximately $1300 per Medicare beneficiary from the owners of ABC and Florida Home Health. The home health agencies then billed the Medicare program on behalf of the Medicare beneficiaries Ochoa and Romeo recruited. Evidence at trial established that ABC and Florida Home Health billed the Medicare program for services that were medically unnecessary and often never provided, such as twice daily nursing visits for diabetic insulin injections, home health aide visits and therapy for the beneficiaries. Romero pleaded guilty to conspiracy to commit health care fraud and kickback charges in July 2010. He testified at trial.
According to trial testimony, Ochoa and Romero would also solicit their co-defendant Francisco Portillo, a nurse who testified at trial, to pay them kickbacks and bribes in return for ensuring that Portillo would be assigned by ABC and Florida Home Health as the nurse for the beneficiaries they recruited. Evidence showed that Portillo was paid by the agencies for each patient to which he was assigned. Portillo testified that he would falsify nursing notes to make it appear that the recruited patients needed and qualified for the home health services, even though they did not, and in many instances Portillo did not even provide the services. Portillo, who pleaded guilty one count of conspiracy to commit health care fraud and one count of making false statements in patient files, also testified that one of the patients recruited by Ochoa and Romero wasn’t even an insulin-dependant diabetic.
According to evidence at trial, Ochoa knew that the patients did not qualify for and did not need the services. Portillo testified that the patient files for the beneficiaries Ochoa recruited were falsified to make it appear that they qualified for home health care and therapy services and so that the Medicare program could be billed for the services.
At sentencing, Ochoa faces a maximum of 10 years in prison for the conspiracy to commit health care fraud count, and five years in prison as to each of the three kickback counts.
Also charged in the case were Dr. Fred Dweck; Yudel Cayro and Arturo Fonseca, owners of Courtesy Medical Group, where Dr. Dweck worked; nurses Isis Torres, Francisco Portillo, Teresita Leal, Armando Sanchez, Sheillah Rotta, Silvio Ruiz, Lissbet Diaz, Marlenys Fernandez, Alain Fernandez; and Medicare beneficiary William Madrigal.
Dr. Dweck admitted to issuing prescriptions, plans of care and medical certifications for unnecessary home health care and therapy services for over 848 Medicare beneficiaries. As a result of Dr. Dweck’s referrals, of which approximately 344 were through Courtesy Clinic, various Miami-area home health agencies billed the Medicare program for more than $37 million in false and fraudulent claims. Dr. Dweck pleaded guilty to one count of conspiracy to commit health care fraud and one count of making false statements in patients files; Cayro pleaded guilty to one count of conspiracy to commit health care fraud; Fonseca pleaded guilty to one count of conspiracy to commit health care fraud and several counts of receiving kickbacks; and each of the nurses pleaded guilty to one count of conspiracy to commit health care fraud and one count of making false statements in patient files. Each of the defendants in the case will be sentenced before U.S. District Judge Adalberto Jordan in U.S. District Court in Miami later this year.
The conviction was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies, Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
The case was prosecuted by Trial Attorneys N. Nathan Dimock, Sam Sheldon and Henry Van Dyck of the Criminal Division’s Fraud Section, with assistance of the Miami U.S. Attorney’s office. This case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force.
Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 810 individuals who collectively have falsely billed the Medicare program for more than $1.85 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
Louisiana Guiding and Outfitting Company Owner Charged for Illegally Hunting AlligatorsRead the Press Release
WASHINGTON – The owner of a guiding and outfitting company was charged today in a three count indictment returned by a federal grand jury in Baton Rouge, La., for illegally hunting a threatened species of alligator, the Justice Department announced.
The indictment charges Gregory K. Dupont, 36, of Plaquemine, La., with three violations of the Lacey Act, the federal wildlife statute that makes it illegal to transport, sell, receive, acquire or purchase illegally taken wildlife.According to the indictment, Dupont, the owner of Louisiana Hunters Inc. and a licensed alligator hunter, took clients on sport alligator hunts. The indictment alleges three instances in 2005 and 2006 that Dupont, while engaged in conduct involving the sale and purchase of wildlife, transported, sold, received and acquired American alligators, knowing that the wildlife was taken, possessed, transported and sold in violation of the laws and regulations of the United States.
An indictment is merely an accusation, and the individual charged is presumed innocent unless and until proven guilty in a court of law.
In addition to being listed as a threatened species on the United States’ list of Threatened and Endangered Species, the American alligator also is listed as a crocodilian species on Appendix II of the Convention on International Trade in Endangered Species (CITES). To better regulate trade in crocodilian species, the parties to CITES agreed to a program of requiring a uniquely numbered tag to be inserted into the skin of each animal immediately after it is killed. The tag is to remain with the skin as it travels in interstate or international commerce until it is manufactured into a final consumer product. The Secretary of the Interior issued special rules for American alligators that implement the CITES tagging program and regulate the harvest of alligators within the United States.
The maximum penalty for each count of the indictment is five years in prison and a $250,000 fine.
This case was investigated by the Louisiana Department of Wildlife and Fisheries and the U.S. Fish and Wildlife Service. It is being prosecuted by the Justice Department’s Environmental Crimes Section with assistance from the U.S. Attorney’s Office for the Middle District of Louisiana.
Justice Department Reaches Agreement to Protect Rights of Military and Overseas Voters in AlaskaRead the Press Release
WASHINGTON – The Justice Department today announced that it has reached an agreement with Alaska officials to help ensure that military service members and other U.S. citizens living overseas have an opportunity to participate fully in the Nov. 2, 2010, federal general election. The agreement was necessary to ensure Alaska’s compliance with the 2009 Military and Overseas Voter Empowerment Act (MOVE Act).
The agreement provides Alaska will expedite the candidate certification procedures for its Aug. 24, 2010, primary election so that it is able to send out an official absentee ballot to all military service members and other U.S. citizens living overseas no later than Sept. 18, 2010. This date for mailing, or faxing if the voter requests, the official ballot is 45 days in advance of the federal general election, thus ensuring that eligible military and overseas voters have sufficient time to receive, cast and return their ballots and to have their votes counted.
"Our uniformed service members and other overseas citizens deserve a meaningful opportunity to participate in the elections of our nation’s leaders," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "I am extremely pleased that Alaska’s officials worked quickly and cooperatively with the department and agreed to measures that will ensure the state’s military and overseas voters, many of whom are members of our armed forces and their families bravely serving our country around the world, will have the opportunity to have their votes counted in the upcoming election."
The Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA) requires states to allow uniformed service voters (serving both overseas and within the United States) and overseas citizens to register to vote and to vote absentee for all elections for federal office. In 2009, Congress enacted the MOVE Act, which made broad amendments to UOCAVA. Among those changes was a requirement that states transmit absentee ballots to voters covered under UOCAVA no later than 45 days before federal elections. Under the new law, states can apply to the Department of Defense for a hardship waiver of this requirement for a particular Federal election if the state’s primary election date prohibited it from sending ballots by the 45th day before the election; if a legal contest causes a delay in generating ballots; or if the state’ s constitution prohibits compliance. To obtain a waiver, states must 1) establish that one or more of these circumstances creates an undue hardship, and 2) present a comprehensive plan that provides UOCAVA voters sufficient time to receive and submit marked absentee ballots in time to have them counted in that election. Waiver determinations are made by the Department of Defense, after consulting with the Department of Justice.
Alaska sought a hardship waiver on grounds that its Aug, 24, 2010, primary election date prohibited it from complying with the 45-day deadline specified by the MOVE Act. On Aug. 27, 2010, the Department of Defense denied Alaska’s request, finding that although the state had shown an undue hardship for the Nov. 2, 2010 election, its proposed comprehensive plan did not afford sufficient time for UOCAVA voters to receive and submit absentee ballots in time to have them counted. Immediately following denial of the waiver application, the Department of Justice advised Alaska officials that the Assistant Attorney General for Civil Rights had authorized litigation to enforce UOCAVA. Discussions with the state were initiated to resolve the matter, which led to the agreement announced today.
More information about the UOCAVA and other federal voting laws is available on the Department of Justice web site at www.usdoj.gov/crt/voting/misc/activ_uoc.htm. Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Justice Department Awards $127 Million to Improve Tribal Public Safety and Criminal JusticeRead the Press Release
WASHINGTON – Hundreds of American Indian and Alaskan Native communities will receive almost $127 million to enhance law enforcement, bolster justice systems, prevent youth substance abuse, serve sexual assault and elder victims, and support other efforts to combat crime. These grants are the first under the Coordinated Tribal Assistance Solicitation (CTAS), a new effort combining 10 different Department of Justice grant programs into a single solicitation.
Associate Attorney General Tom Perrelli announced the CTAS awards today at the National Museum of the American Indian. Perrelli noted that Attorney General Holder and other Department of Justice leadership held tribal listening sessions last year. The department developed CTAS in response to views shared at these sessions, Tribal consultation events and other feedback from tribal leaders.
“Today, we take another major step toward true nation-to-nation collaboration,” said Perrelli. “CTAS is not only a more streamlined grant-making process, it is part of the department’s broader strategy of increased engagement with tribal communities across a broad range of areas.”
CTAS includes most of the tribal programs from the department’s Office of Justice Programs (OJP), Office of Community Oriented Policing Services (COPS) and the Office on Violence Against Women (OVW). The programs were listed as 10 purpose areas. In previous years, tribes seeking funding for more than one of these purposes would need to submit multiple grant applications. With CTAS, tribes were able to submit a single application while selecting multiple purpose areas, ranging from juvenile justice to violence against women.
“This approach not only saves time and resources, but it also allows tribes and the Department to gain a better understanding of overall public safety needs,” Perrelli added. “Through CTAS and other initiatives, we have sought to take action to respond to tribal leaders and help end the inexcusably high crime rates in tribal communities.”
Additionally, COPS Office Director Bernard Melekian, addressed the National Native American Law Enforcement Association’s 18th Annual National Training Conference today in Las Vegas. Director Melekian simultaneously announced the CTAS awards to the approximately 400 tribal law enforcement representatives in attendance.
All federally recognized tribes were eligible for CTAS. OJP, COPS and OVW worked together in making the award decisions. Tribal leaders have been invited to a tribal consultation session on October 5, 2010 in Spokane to discuss ways to improve the Department’s grant-making process in future years.
A list of the ten CTAS purpose areas is attached. The complete list of the Fiscal Year 2010 CTAS grantees is available at the Department of Justice’s Tribal Justice and Safety Web site - www.tribaljusticeandsafety.gov.
Federal Court Shuts Down Orlando, Florida, Tax PreparerRead the Press Release
WASHINGTON - A federal district judge in Orlando, Fla., has permanently barred Elisa Veronica Barron of Orlando from preparing federal tax returns for others, the Justice Department announced today. According to the order, Barron is a return preparer operating under the name, “Lancaster Tax Service Inc.” The court also ordered Barron to mail copies of the court order to her customers.
The court found that Barron prepares tax returns using false information in order to reduce her customers’ tax liabilities. Specifically, the court found that Barron unlawfully reduced her customers’ reported income by claiming unsubstantiated and fraudulent deductions and credits. Additionally, the court found that Barron routinely misrepresents her customers’ filing status and number of their dependents to allow them to improperly claim the earned income tax credit.
According to the complaint, the government estimates that this alleged fraudulent tax preparation scheme by Barron resulted in an understatement of her customers’ federal income tax liabilities of more than $1 million for returns that Barron prepared in 2006-2007 alone.
Over the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website.
Empresa farmacéutica Forest se declara culpable; deberá pagar más de $313 millones de dólares para resolver cargos criminales y alegatos bajo la Ley de Reclamos FalsosRead the Press Release
WASHINGTON - Forest Pharmaceuticals Inc., una subsidiaria de Forest Laboratories Inc., que tiene sede en la Ciudad de Nueva York, ha aceptado declararse culpable de cargos relacionados con la obstrucción de la justicia, la distribución de Levothroid, que en ese momento era una nueva droga no aprobada, y la promoción ilegal de Celexa para su uso en el tratamiento de niños y adolescentes con depresión, anunció hoy el Departamento de Justicia. Las empresas también aceptaron conciliar alegatos pendientes bajo la Ley de Reclamos Falsos de que Forest provocó la presentación de reclamos falsos a programas federales de servicios médicos por las drogas Levothroid, Celexa y Lexapro.Forest ha aceptado pagar $313 millones de dólares para resolver responsabilidades criminales y civiles surgidas de estos casos.
Forest Pharmaceuticals Inc. aceptó declararse culpable de un cargo de delito criminal grave de obstrucción de la justicia, un delito criminal menor de distribuir una droga no aprobada en comercio interestatal y un cargo criminal menor de distribuir una droga mal rotulada en comercio interestatal. Bajo el acuerdo de declaración de culpabilidad, Forest Pharmaceuticals pagará una multa criminal de $150 millones de dólares y sufrirá la confiscación de otros $14 millones de dólares en bienes. La declaración de culpabilidad y la sentencia de Forest Pharmaceuticals no son finales hasta que no sean aceptadas por el Tribunal Federal de Distrito. Forest también pagará más de $149 millones de dólares para resolver alegatos bajo la Ley de Reclamos Falsos, que incluyen una demanda civil presentada por los Estados Unidos en febrero de 2009.
Bajo la Ley Federal de Alimentos, Medicamentos y Cosméticos [Food, Drug and Cosmetic Act (FDCA)], los fabricantes de drogas deben presentar una Solicitud de Nuevo Medicamento [New Drug Application (NDA)] a la Administración de Medicamentos y Alimentos [Food and Drug Administration (FDA)] y obtener la aprobación de la dependencia antes de distribuir un “nuevo medicamento” en comercio interestatal. En esta NDA, el fabricante debe dar información sobre los procesos de fabricación y la composición de la droga y brindar datos suficientes generados en investigaciones clínicas correctas y controladas para demostrar que la droga es segura y eficaz para su uso especificado. Después de que la FDA aprueba el producto como seguro y eficaz para un uso especificado, cualquier promoción de la droga para otros usos por parte del fabricante – conocida como usos “no aprobados” – hace que el producto esté mal rotulado.
La resolución combinada de hoy incluye tres medicamentos distribuidos por Forest: Levothroid, Celexa y Lexapro. Levothroid era una droga de levotiroxina sódica de administración oral usada para tratar el hipotiroidismo, una afección en la que las personas poseen una deficiencia de la tiroide. Celexa y Lexapro son drogas antidepresivas que, en el período analizado, estaban aprobadas solo para su uso en el tratamiento de la depresión en adultos.
En la información criminal, el gobierno alega que Forest Pharmaceuticals comenzó a distribuir Levothroid a principios de la década de 1990 sin obtener primero la aprobación de la FDA. Las drogas con levotiroxina sódica han estado en el mercado para tratar el hipotiroidismo desde la década de 1950 y los fabricantes habían introducido estas drogas en el mercado sin obtener primero la aprobación de la FDA. No obstante, en 1997, la FDA anunció que estas drogas eran “nuevos medicamentos” bajo la FDCA y necesitaban ser aprobadas por la dependencia. Pero, como la FDA consideraba que las drogas eran médicamente necesarias, se les dio cuatro años a los fabricantes – hasta el 14 de agosto de 2001 – para realizar los estudios necesarios y obtener la aprobación de la FDA. Luego, para satisfacer la demanda constante de los pacientes, la FDA anunció que, a su discreción, la dependencia permitiría que los fabricantes de drogas no aprobadas de levotiroxina sódica siguieran distribuyendo sus medicamentos sin aprobar hasta el 14 de agosto de 2001, con algunas condiciones. Una de esas condiciones era que cualquier fabricante que no hubiera obtenido la aprobación NDA para su producto farmacológico de levotiroxina sódica debía cumplir con una reducción gradual de dos años de la distribución de su droga no aprobada hasta obtener la aprobación de la FDA para distribuirla.
Según los cargos criminales, Forest Pharmaceuticals tomó una decisión deliberada de seguir distribuyendo su producto Levothroid no aprobado en cantidades que superaban ampliamente los límites permitidos por el plan de reducción de distribución del FDA. Los cargos también alegan que el 7de agosto de 2003, la FDA envió una carta de advertencia en la que avisaba que Forest Pharmaceuticals ya no tenía derecho a distribuir su producto Levothroid no aprobado porque la empresa había tomado la decisión deliberada de no cumplir con el plan de reducción de la distribución de la FDA. Después de recibir la carta de advertencia, Forest Pharmaceuticals les ordenó a los empleados de su centro de distribución de St. Louis que trabajaran horas extra hasta aproximadamente la 1:00 a.m. de la mañana siguiente y, durante ese tiempo, siguieran enviando la mayor cantidad posible de su Levothroid no aprobado.
Los cargos criminales además alegan que Forest Pharmaceuticals presentó información falsa a la FDA como parte de su solicitud NDA para Levothroid y que Forest Pharmaceuticals obstruyó una inspección regulatoria de la FDA sobre los datos presentados en la NDA de Levothroid. Específicamente, cuando los inspectores de la FDA vieron un humidificador portátil en una inspección de 2003 de una planta de fabricación en Cincinnati, miembros del personal gerencial de la empresa les informaron falsamente a los investigadores que el humidificador portátil estaba siendo almacenado en la sala y no había sido usado para control de la humedad, cuando en realidad sí había sido usado.
La empresa también resolvió alegatos civiles bajo la Ley de Reclamos Falsos por su distribución continua del Levothroid no aprobado después del 14 de agosto de 2001 y por no informar a los Centros para Servicios de Medicare y Medicaid de que la droga ya no calificaba para ser cubierta por programas gubernamentales de servicios médicos, lo que provocó la presentación de reclamos falsos a esos programas.
Forest Pharmaceuticals detuvo su distribución comercial de su versión no aprobada de Levothroid antes del 9 de agosto de 2003. Desde el otoño de 2003, Forest Pharmaceuticals ha distribuido comercialmente una droga diferente de levotiroxina sódica de administración oral, también llamada Levothroid, de acuerdo a un acuerdo de suministro con Lloyd Pharmaceuticals. Esta resolución no afecta ese producto.
En cuanto a Celexa, la información criminal y la demanda bajo la Ley de Reclamos Falsos entablada por los Estados Unidos alegan que Forest Pharmaceuticals promovió la droga para un uso pediátrico no aprobado. A pesar de contar con una aprobación limitada solo para depresión en adultos, Forest Pharmaceuticals promovió Celexa para su uso en el tratamiento de niños y adolescentes con depresión. El gobierno alega que Forest Pharmaceuticals publicitó e hizo circular los resultados positivos de un estudio doble ciego controlado con placebo realizado por Forest sobre el uso de Celexa en adolescentes mientras que Forest Pharmaceuticals no comentó los resultados negativos de un estudio europeo contemporáneo doble ciego controlado con placebo sobre el uso de Celexa en adolescentes.
El gobierno también alega que la promoción para usos no aprobados realizada por Forest Pharmaceuticals empleó diversas técnicas de ventas, entre ellas indicarles a sus representantes de ventas que promuevan el uso pediátrico de Celexa en llamadas de venta a médicos que trataban a niños y adolescentes y la contratación de oradores externos para que les hablaran a especialistas pediátricos sobre los beneficios de recetar Celexa a niños y adolescentes.
La demanda bajo la Ley de Reclamos Falsos también alega que Forest tuvo la misma conducta de comercialización en conexión con Lexapro, que, en ese momento, también carecía de aprobaciones para uso pediátrico. La demanda civil también alega que Forest empleó comisiones ilícitas para inducir a los médicos y a terceros a recetar Celexa y Lexapro. Las comisiones ilícitas supuestamente incluían pagos en efectivo disfrazados de subsidios u honorarios por asesoría, comidas costosas y entretenimiento ostentoso. La demanda civil alega que como resultado de la conducta mencionada anteriormente, Forest hizo que se presentaran reclamos falsos a programas federales de servicios médicos.
Lexapro fue aprobada para usarse para tratamientos agudos y de mantenimiento de Desorden Depresivo Mayor en adolescentes, de entre 12 y 17 años, el 19 de marzo de 2009.
“No toleraremos que ninguna empresa obstruya la justicia y promueva ilegalmente drogas que no fueron aprobadas para tratar a menores”, dijo Tony West, Secretario de Justicia Auxiliar para la División Civil del Departamento de Justicia. “Forest Pharmaceuticals se ha declarado culpable de violar la ley. El Departamento de Justicia seguirá garantizando que los contribuyentes no paguen las consecuencias cuando haya conducta ilegal e incorrecta como esta”.
“Forest Pharmaceuticals eligió deliberadamente buscar ganancias corporativas por sobre sus obligaciones con la FDA y el público estadounidense”, dijo Carmen Ortiz, Fiscal Federal para el Distrito de Massachusetts. “La empresa sabía que no tenía la aprobación de la FDA para distribuir Levothroid. En vez de cumplir con el programa de disminución de la FDA, que hubiera permitido que la empresa siguiera distribuyendo una cantidad limitada de su droga no aprobada, Forest Pharmaceuticals decidió desacatar abiertamente la ley en vez de perder ventas. Esto es algo completamente inaceptable”.
El acuerdo conciliatorio civil abarca diversas demandas presentadas bajo las disposiciones qui tam, o de denunciante, de la Ley de Reclamos Falsos, que permiten que los ciudadanos privados entablen acciones civiles de parte de los Estados Unidos y participen de cualquier recuperación lograda. Como parte del acuerdo conciliatorio civil, se distribuirán más de $88 millones de dólares al gobierno federal y más de $60 millones de dólares a los estados, que se los repartirán. Como parte de la resolución de hoy, los denunciantes privados recibirán pagos que alcanzan aproximadamente $14 millones de dólares de la parte federal del acuerdo conciliatorio. Los casos resueltos por el acuerdo conciliatorio civil son Estados Unidos ex rel. Christopher R. Gobble, et al. contra Forest Laboratories, Inc. y Forest Pharmaceuticals, Inc.; Estados Unidos ex rel. Joseph Piacentile, et al. contra Forest Laboratories, Inc.; y Estados Unidos ex rel. Constance Conrad contra Forest Pharmaceuticals, Inc., et al.
“El anuncio de hoy demuestra el compromiso del gobierno de combatir a las empresas que eligen descuidar sus obligaciones regulatorias y privilegiar las ganancias por sobre la salud pública”, dijo la Comisionada de la FDA Margaret M. Hamburg, MD. “La FDA felicita el arduo trabajo del Departamento de Justicia y nuestros colegas en las fuerzas del orden público para lograr este resultado exitoso”.
Forest Laboratorios también firmó un Acuerdo de Integridad Corporativa [Corporate Integrity Agreement (CIA)] con la Oficina del Inspector General del Departamento de Salud y Servicios Humanos de los EE.UU. [Department of Health and Human Services, Office of Inspector General (HHS-OIG)]. Este acuerdo de cinco años exige que Forest implemente un programa de cumplimiento que incluye actividades promocionales y funciones regulatorias. Entre otras cosas, el CIA exige que la Junta Directiva (o un comité de la Junta) revise anualmente el programa de cumplimiento de la empresa con la ayuda de un experto externo y certifique su eficacia; que determinados altos ejecutivos certifiquen anualmente que sus departamentos o áreas funcionales cumplen con los requisitos; que Forest les envíe a los médicos una carta notificándoles sobre el acuerdo conciliatorio; y que la empresa publique en su portal información sobre pagos a médicos, como honorarios, viajes o alojamiento. Forest está sujeta a ser excluida de programas federales de servicios médicos, entre ellos Medicare y Medicaid, por incumplimiento grave del CIA y a multas monetarias por incumplimientos de menor gravedad.
“La seguridad del público depende de un proceso que aprueba drogas para usos específicos. La comercialización de usos no aprobados y de una droga no aprobada por parte de Forest Pharmaceuticals debilitó la protección y potencialmente puso en riesgo la seguridad pública. No podemos tolerar este tipo de conducta corporativa ni lo haremos”, dijo Daniel R. Levinson, Inspector General del Departamento de Salud y Servicios Humanos de los EE.UU. “La OIG supervisará un acuerdo que incrementará la responsabilización de la empresa por sus prácticas de comercialización y hará que sus acciones sean más transparentes”.
Estuvieron a cargo del caso la Fiscalía Federal del Distrito de Massachusetts y la División Civil del Departamento de Justicia. El Acuerdo de Integridad Corporativa fue negociado por la OIG-HHS. Estuvieron a cargo de la investigación en el caso agentes del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)], la Oficina de Investigaciones Criminales de la FDA y la Oficina del Inspector Federal del Departamento de Asuntos de Veteranos. También se recibió asistencia de la Oficina del Consejero General de la FDA, la Asociación Nacional de Unidades de Control de Fraude contra Medicaid y diversas Fiscalías Estatales.
Este acuerdo conciliatorio forma parte del enfoque del gobierno en la lucha contra el fraude de servicios médicos y es otro paso de la iniciativa del Equipo de Acción, Prevención y Control de Fraude de Servicios Médicos [Health Care Fraude Prevention and Enforcement Action Team (HEAT)], que fue anunciada por el Secretario de Justicia de los Estados Unidos Holder y la Secretaria Sebelius en mayo de 2009. La asociación entre los dos departamentos ha enfocado su labor en la reducción y prevención de fraude contra Medicare y Medicare a través de una mayor cooperación. Una de las herramientas más poderosas en dicha iniciativa es la Ley de Reclamos Falsos [False Claims Act (FCA)], utilizada por el Departamento de Justicia para recuperar aproximadamente $3.391 billones de dólares desde enero de 2009 en casos asociados al fraude contra los programas de salud federales. Las recuperaciones totales del Departamento de Justicia en casos de la FCA desde enero de 2009 son de $4.4691 billones de dólares.
El Departamento de Justicia otorga $127 millones de dólares para mejorar la seguridad pública y la justicia criminal tribalRead the Press Release
WASHINGTON – Cientos de comunidades nativas indígenas y alaskeñas recibirán casi $127 millones de dólares para mejorar la aplicación legal, reforzar los sistemas de justicia, prevenir el abuso de sustancias en los jóvenes, servir a víctimas ancianas y de agresión sexual, y apoyar otras iniciativas para combatir el delito. Estos subsidios son los primeros bajo la Petición Coordinada de Asistencia Tribal [Coordinated Tribal Assistance Solicitation (CTAS)], una nueva iniciativa que combina 10 programas de subsidios diferentes del Departamento de Justicia en una sola petición.
El Secretario de Justicia Auxiliar Tom Perrelli anunció el otorgamiento de las CTAS hoy en el Museo Nacional de Indígenas Estadounidenses. Perrelli destacó que el Secretario de Justicia de los EE.UU. Holder y otros líderes del Departamento de Justicia realizaron sesiones para escuchar a las tribus el año pasado. El departamento desarrolló CTAS en respuesta a opiniones expresadas en estas sesiones, eventos de consulta tribales y otros comentarios de líderes tribales.
“Hoy damos otro gran paso hacia una verdadera colaboración de nación a nación”, dijo Perrelli. “CTAS no solo constituye un proceso de otorgamiento de subsidios mejorado, sino que también forma parte de la estrategia integral del Departamento de una mayor compenetración con las comunidades tribales en diversos campos”.
CTAS incluye la mayoría de los programas tribales de la Oficina de Programas Judiciales [Office of Justice Programs (OJP)], la Oficina de Servicios Policiales con Orientación Comunitaria [Office of Community Oriented Policing Services (COPS)] y la Oficina de Violencia contra la Mujer [Office on Violence Against Women (OVW)] del Departamento. Los programas figuran como 10 áreas de propósito. Anteriormente, las tribus que buscaban fondos para más de uno de estos propósitos debían presentar múltiples solicitudes de subsidio. Con CTAS, las tribus pudieron presentar una sola solicitud y seleccionar múltiples áreas de propósitos, que van desde justicia juvenil hasta la violencia contra la mujer.
“Este enfoque no solo ahorra tiempo y recursos, sino que también les permite a las tribus y al Departamento tener una mejor comprensión de las necesidades generales de seguridad pública”, añadió Perrelli. “A través de CTAS y otras iniciativas, hemos buscado tomar medidas para responder a los líderes tribales y contribuir a poner fin a los índices de delincuencia imperdonablemente altos que existen en las comunidades tribales”.
Asimismo, el Director de la Oficina COPS Bernard Melekian dio un discurso hoy en la 18° Conferencia Nacional Anual de Capacitación de la Asociación Nacional de las Fuerzas del Orden de Indígenas Estadounidenses en Las Vegas. El Director Melekian también anunció el otorgamiento de CTAS a aproximadamente 400 representantes de las fuerzas del orden público tribales que se encontraban en el lugar.
Todas las tribus reconocidas federalmente fueron elegibles para CTAS. La OJP, COPS y la OVW trabajaron juntas para tomar las decisiones de otorgamiento de subsidios. Se ha invitado a líderes tribales a una sesión de consulta tribal el 5 de octubre de 2010 en Spokane para comentar maneras de mejorar el proceso de otorgamiento de subsidios del Departamento en los próximos años.
Se adjunta una lista de las diez áreas de propósitos de CTAS. La lista completa de los beneficiarios de CTAS del Año Fiscal 2010 está disponible en el portal de Justicia y Seguridad Tribal del Departamento de Justicia en www.tribaljusticeandsafety.gov.
El Departamento de Justicia llega a acuerdo para proteger los derechos de militares y votantes en el extranjero en AlaskaRead the Press Release
WASHINGTON – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con funcionarios de Alaska para ayudar a asegurar que miembros del servicio militar y otros ciudadanos estadounidenses que viven en el exterior tengan la oportunidad de participar plenamente en las elecciones generales federales del 2 de noviembre de 2010. El acuerdo fue necesario para garantizar el cumplimiento de Alaska con la Ley de Otorgamiento de Votantes Militares y en el Extranjero [Military and Overseas Voter Empowerment Act (MOVE Act)].
El acuerdo establece que Alaska acelerará los procedimientos de certificación de candidatos para sus elecciones primarias del 24 de agosto de 2010 para que pueda enviar una papeleta oficial de ausente a todos los miembros del servicio militar y otros ciudadanos estadounidenses que viven en el extranjero antes del 18 de septiembre de 2010. Esta fecha para enviar la papeleta oficial por correo, o por facsímile si así lo pide el votante, es 45 días antes de las elecciones generales federales, lo que garantiza que los votantes militares y en el extranjero cuenten con tiempo suficiente para recibir las papeletas, emitir su voto y reenviar las papeletas para que se cuente su voto.
"Nuestros miembros de los servicios uniformados y otros ciudadanos en el extranjero merecen una oportunidad significativa de participar en la elección de los líderes de nuestro país", dijo Thomas E. Pérez, Secretario de Justicia Auxiliar de la División de Derechos Civiles. "Me complace profundamente que los funcionarios de Alaska hayan trabajado rápida y cooperativamente con el Departamento y hayan aceptado medidas que garantizarán que los votantes del estado militares y en el extranjero, muchos de los cuales son miembros de nuestras fuerzas armadas y familiares que sirven con valentía a nuestro país en todo el mundo, tengan la oportunidad de que se cuenten sus votos en las próximas elecciones".
La Ley Electoral de Ausentes para Ciudadanos Uniformados y Ciudadanos en el Exterior [Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA)] exige que los estados permitan que los electores de los servicios uniformados (que sirven tanto en el extranjero como dentro de los Estados Unidos) y los ciudadanos en el extranjero se registren para votar y voten como ausentes en todas las elecciones para cargos federales. En 2009, el Congreso promulgó la Ley MOVE, que realizó enmiendas generales a la UOCAVA. Entre estos cambios, hubo un requisito de que los estados envíen papeletas de ausente a electores cubiertos bajo la UOCAVA al menos 45 días antes de las elecciones federales. Bajo la nueva ley, los estados pueden solicitar al Departamento de Defensa una exención por dificultad a este requisito por una elección federal particular si la fecha de elecciones primarias del estado evita que envíe las papeletas con un mínimo de 45 días de anticipación respecto de las elecciones: si un reclamo legal provoca una demora en la generación de papeletas; o si la constitución del estado prohíbe el cumplimiento. Para obtener una exención, los estados deben 1) establecer que una o más de estas circunstancias crea una dificultad indebida, y 2) presentar un plan integral que les dé a los votantes bajo UOCAVA tiempo suficiente para recibir y presentar papeletas marcadas de ausente para que sean contadas en esas elecciones. Las determinaciones de exenciones son realizadas por el Departamento de Defensa, después de consultar con el Departamento de Justicia.
Alaska solicitó una exención por dificultad porque su fecha de elecciones primarias del 24 de agosto de 2010 le impedía cumplir con el plazo de 45 días previos especificado por la Ley MOVE. El 27 de agosto de 2010, el Departamento de Defensa le negó la solicitud a Alaska al determinar que, si bien el estado había demostrado una dificultad indebida para las elecciones del 2 de noviembre de 2010, su plan integral propuesto no les daba tiempo suficiente a los votantes bajo la UOCAVA de recibir y presentar papeletas de ausente a tiempo para que fueran contadas. Inmediatamente después del rechazo de la solicitud de exención, el Departamento de Justicia le informó a funcionarios de Alaska que el Secretario de Justicia Auxiliar de la División de Derechos Civiles había autorizado un litigio para hacer valer la UOCAVA. Se iniciaron conversaciones con el estado para resolver el asunto, que generaron el acuerdo anunciado hoy.
Para obtener más información sobre la OUCAVA y otras leyes federales electorales, visite el portal del Departamento de Justicia en www.usdoj.gov/crt/voting/misc/activ_uoc.htm. Para realizar denuncias, llame a la Oficina de Asuntos Electorales de la División de Derechos Civiles del Departamento de Justicia al (800) 253-3931.
Drug Maker Forest Pleads Guilty; To Pay More Than $313 Million to Resolve Criminal Charges and False Claims Act AllegationsRead the Press Release
WASHINGTON - Forest Pharmaceuticals Inc., a subsidiary of New York City-based Forest Laboratories Inc., has agreed to plead guilty to charges relating to obstruction of justice, the distribution of Levothroid, which at the time was an unapproved new drug, and the illegal promotion of Celexa for use in treating children and adolescents suffering from depression, the Justice Department announced today. The companies also agreed to settle pending False Claims Act allegations that Forest caused false claims to be submitted to federal health care programs for the drugs Levothroid, Celexa, and Lexapro. Forest has agreed to pay more than $313 million to resolve criminal and civil liability arising from these matters.
Forest Pharmaceuticals Inc. agreed to plead guilty to one criminal felony count of obstructing justice, one criminal misdemeanor count of distributing an unapproved drug in interstate commerce, and one criminal misdemeanor count of distributing a misbranded drug in interstate commerce. Under the plea agreement, Forest Pharmaceuticals will pay a criminal fine of $150 million and will forfeit an additional $14 million in assets. Forest Pharmaceuticals’ guilty plea and sentence is not final until accepted by the U.S. District Court. Forest also will pay over $149 million to resolve allegations under the False Claims Act, including a civil complaint filed by the United States in February 2009.
Under the Food, Drug and Cosmetic Act (FDCA), a manufacturer is required to submit a New Drug Application (NDA) to the Food and Drug Administration (FDA) and obtain the agency’s approval before distributing a “new drug” in interstate commerce. In this NDA, the manufacturer is required to set forth information concerning the manufacturing processes and composition of the drug, and provide sufficient data generated in adequate and well-controlled clinical investigations to demonstrate that the drug is safe and effective for its specified use. After the FDA approves the product as safe and effective for a specified use, any promotion by the manufacturer for other uses – known as “off label” uses – renders the product misbranded.
Today’s combined resolution concerns three drugs distributed by Forest: Levothroid, Celexa and Lexapro. Levothroid was an orally administered levothyroxine sodium drug used to treat hypothyroidism, a condition in which an individual has a thyroid deficiency. Celexa and Lexapro are anti-depressant drugs that, at the time period at issue, were approved only for use in treatment of adult depression.
In the criminal information, the government alleges that Forest Pharmaceuticals began distributing Levothroid in the early 1990s without first obtaining FDA approval. Orally administered levothyroxine sodium drugs had been on the market to treat hypothroidism since the 1950s, and manufacturers had introduced these drugs into the market without first obtaining FDA approval. In 1997, however, the FDA announced that these drugs were “new drugs” under the FDCA and needed the agency’s approval. Nonetheless, because the FDA deemed the drugs to be medically necessary, the manufacturers were given four years – until Aug. 14, 2001 – in which to conduct the necessary studies and obtain FDA approval. Later, in order to meet continuing patient demand, the FDA announced that, as a matter of enforcement discretion, the agency would permit manufacturers of unapproved levothyroxine sodium drugs to continue distributing their unapproved drugs after Aug. 14, 2001, on certain conditions. One of those conditions was that any manufacturer which had not obtained NDA approval for its levothyroxine sodium drug product needed to comply with a two-year, gradual distribution phase-down of its unapproved drug until it obtained FDA approval to distribute the drug.
According to the criminal charges, Forest Pharmaceuticals made a deliberate decision to continue distributing its unapproved Levothroid product in quantities far exceeding the amounts permitted by the FDA’s distribution phase-down plan. The charges further alleges that, on Aug. 7, 2003, the FDA sent a warning letter advising that Forest Pharmaceuticals was no longer entitled to distribute its unapproved Levothroid product because the company had made a deliberate decision not to comply with the FDA’s distribution phase-out plan. After receiving the warning letter, Forest Pharmaceuticals directed its employees at its St. Louis distribution center to work overtime until approximately 1:00 a.m. the following morning and, during that time, to continue shipping as much of its unapproved Levothroid as possible.
The criminal charges further allege that Forest Pharmaceuticals submitted inaccurate information to the FDA as part of its NDA submission for Levothroid and that Forest Pharmaceuticals obstructed an FDA regulatory inspection concerning the data submitted in the Levothroid NDA. Specifically, when FDA inspectors saw a portable humidifier at a 2003 inspection of a manufacturing plant in Cincinnati, certain company management personnel falsely advised the investigators that the portable humidifier was being stored in the room and had not been used for humidity control, when in fact it had been.
The company also has resolved civil False Claims Act allegations for its continued distribution of unapproved Levothroid after August 14, 2001, and for failing to advise the Centers for Medicare and Medicaid Services that the drug no longer qualified for coverage by government health care programs, thereby causing false claims to be submitted to those programs.
Forest Pharmaceuticals halted its commercial distribution of its unapproved version of Levothroid as of Aug. 9, 2003. Since the fall of 2003, Forest Pharmaceuticals has been commercially distributing a different orally administered levothyroxine sodium drug, also called Levothroid, in accordance with a supply agreement with Lloyd Pharmaceuticals. This resolution does not involve that product.
Regarding Celexa, the criminal information and the False Claims Act complaint filed by the United States allege that Forest Pharmaceuticals promoted the drug for unapproved pediatric use. Despite a limited approval only for adult depression, Forest Pharmaceuticals promoted Celexa for use in treating children and adolescents suffering from depression. The government alleges that Forest Pharmaceuticals publicized and circulated the positive results of a double-blind, placebo-controlled Forest study on the use of Celexa in adolescents while, at the same time, Forest Pharmaceuticals failed to discuss the negative results of a contemporaneous double-blind, placebo-controlled European study on the use of Celexa in adolescents.
The government further alleges that Forest Pharmaceuticals’ off-label promotion consisted of various sales techniques, including directing its sales representatives to promote pediatric use of Celexa in sales calls to physicians who treated children and adolescents, and hiring outside speakers to talk to pediatric specialists about the benefits of prescribing Celexa to children and teens.
The False Claims Act complaint also alleges that Forest engaged in such marketing conduct in connection with Lexapro, which, at that time, also lacked any approvals for pediatric use. The civil complaint further alleges that Forest used illegal kickbacks to induce physicians and others to prescribe Celexa and Lexapro. Kickbacks allegedly included cash payments disguised as grants or consulting fees, expensive meals and lavish entertainment. The civil complaint alleges that as a result of the foregoing conduct, Forest caused false claims to be submitted to federal health care programs.
Lexapro was approved for use for acute and maintenance treatment of Major Depressive Disorder in adolescents, 12 - 17 years of age, on March 19, 2009.
“We will not tolerate any company that obstructs justice and illegally promotes drugs that were not approved to treat children,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “Forest Pharmaceuticals has pled guilty to breaking the law. The Justice Department will continue to ensure that taxpayers do not foot the bill when such unlawful and improper conduct occurs.”
“Forest Pharmaceuticals deliberately chose to pursue corporate profits over its obligations to the FDA and the American public,” said Carmen Ortiz, U.S. Attorney for the District of Massachusetts. “The company knew that it did not have FDA approval to distribute Levothroid. Instead of complying with the FDA’s phase-down schedule, which would have permitted the company to continue to distributing a limited amount of its unapproved drug, Forest Pharmaceuticals instead decided to flout the law rather than lose sales. This was completely unacceptable.”
The civil settlement covers various lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act, which allows private citizens with knowledge of fraud to bring civil actions on behalf of the United States and share in any recovery. As part of the civil settlement, more than $88 million will be distributed to the federal government and more than $60 million will be distributed to and shared by the states. As part of today’s resolution, the private whistleblowers will receive approximately $14 million from the federal share of the settlement amount. The cases resolved by the civil settlement are United States ex rel. Christopher R. Gobble, et al. v. Forest Laboratories, Inc. & Forest Pharmaceuticals, Inc.; United States ex rel. Joseph Piacentile, et al. v. Forest Laboratories, Inc.; and United States ex rel. Constance Conrad v. Forest Pharmaceuticals, Inc., et al.
“Today’s announcement demonstrates the government’s commitment to targeting companies that choose to disregard their regulatory obligations and pursue profits over the public’s health,” said FDA Commissioner Margaret M. Hamburg, MD. “The FDA applauds the hard work of the Department of Justice and our law enforcement counterparts in bringing about this successful result.”
Forest Laboratories has also signed a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). This five-year agreement requires Forest to implement a compliance program that addresses promotional activities and regulatory functions. Among other things, the CIA requires that the Board of Directors (or a committee of the Board) annually review the company’s compliance program with the help of an outside expert and certify its effectiveness; that certain senior executives annually certify that their departments or functional areas are compliant; that Forest send doctors a letter notifying them about the settlement; and that the company post on its website information about payments to doctors, such as honoraria, travel or lodging. Forest 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.
“The safety of the public depends upon a process that approves drugs for specific uses. Forest Pharmaceuticals’ off-label marketing and marketing an unapproved drug undermined that protection and potentially put public safety at risk. We cannot and must not tolerate this corporate behavior,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “OIG will oversee an agreement that will increase the company's accountability for its marketing practices and will make its actions more transparent.”
This matter was handled by the U.S. Attorney’s Office for the District of Massachusetts and the Civil Division of the Department of Justice. The corporate Integrity Agreement was negotiated by the Office of Inspector General of the Department of Health and Human Services (OIG-HHS). The case was investigated by agents from the FBI, the OIG-HHS, FDA’s Office of Criminal Investigations and the Department of Veterans Affairs’ Office of Inspector General. Assistance was also provided by FDA’s Office of General Counsel, the National Association of Medicaid Fraud Control Units and the offices of various state Attorneys General.
This settlement is part of the government’s emphasis on combating health care fraud and another step for the HEAT initiative, which was announced by Attorney General Holder and Secretary Sebelius in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid fraud through enhanced cooperation. One of the most powerful tools in that effort is the FCA, which the Justice Department has used to recover $3.391 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in FCA cases since January 2009 are $ 4.4691 billion.
Dos intermediarios acusados formalmente por su supuesta participación en ardid para sobornar a funcionarios en empresa eléctrica estatal en MéxicoRead the Press Release
WASHINGTON – Dos intermediarios fueron acusados formalmente por sus supuestos papeles en una conspiración para pagar y lavar sobornos a funcionarios gubernamentales mexicanos de la Comisión Federal de Electricidad (CFE), una empresa estatal de servicios públicos, anunciaron el Secretario de Justicia Auxiliar de la División Criminal Lanny A. Breuer; el Fiscal Federal André Birotte del Distrito Central de California; Steven M. Martínez, Agente Especial a Cargo de la Oficina Local en Los Ángeles del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]; y Leslie DeMarco, Agente Especial a Cargo de la Oficina Local en los Ángeles de la División de Investigación Criminal de Servicios de Impuestos Internos [Internal Revenue Service - Criminal Investigation (IRS-CI)].
Enrique Faustino Aguilar Noriega, 56, de Cuernavaca, México, fue acusado en una acusación formal de siete cargos emitida por un gran jurado federal en Los Ángeles el 15 de septiembre de 2010 de conspirar para violar la Ley de Prácticas Corruptas en el Extranjero [Foreign Corrupt Practices Act (FCPA)], violaciones a la FCPA, conspirar para lavar dinero y lavado de dinero. Ángela María Gómez Aguilar, 55, de Cuernavaca, fue acusada de conspirar para lavar dinero y lavado de dinero.
Según la acusación formal, la CFE es responsable de suministrar electricidad en México y realiza contratos con empresas mexicanas y extranjeras por bienes y servicios para ayudar a brindar servicios eléctricos a sus consumidores.
La acusación formal alega que Enrique y Ángela Aguilar eran directores de Grupo Internacional de Asesores S.A. (Grupo), que alegaba brindar servicios de representación de ventas para empresas que hacían negocios con la CFE. Según la acusación formal, Grupo fue contratada por una empresa con sede en Azusa, Calif. como representante de ventas en México y para obtener contratos con la CFE. Grupo recibía un porcentaje de los ingresos obtenidos por la empresa con sede en Azusa por sus contratos con la CFE. La empresa con sede en Azusa fabricaba sistemas de restauración de emergencia y otros equipos usados por empresas de electricidad. Según la acusación formal, muchos de los clientes de la empresa eran empresas de servicios públicos estatales extranjeras, entre ellas la CFE, que era uno de los mayores clientes de la empresa.
Aproximadamente entre febrero de 2002 y marzo de 2009, Enrique Aguilar y sus coconspiradores supuestamente orquestaron un ardid en el que Enrique Aguilar recibía una comisión del 30 por ciento de todos los bienes y servicios que la empresa con sede en Azusa le vendía a la CFE, aunque esta comisión era significativamente mayor que la recibida por anteriores representantes de ventas de la empresa. La acusación formal alega que los coconspiradores de Enrique Aguilar comprendían que toda la comisión del 30 por ciento o parte de ella se usaría para pagar sobornos a funcionarios mexicanos a cambio de que la CFE le otorgara contratos a la empresa con sede en Azusa. Se alega que los costos de los bienes y servicios vendidos a la CFE eran aumentados un 30 por ciento para asegurarse de que el costo agregado pagado a Enrique Aguilar fuera absorbido por la CFE y no por la empresa con sede en Azusa.
Se alega que Enrique Aguilar provocó la presentación de facturas fraudulentas de Grupo a la empresa con sede en Azusa por 30 por ciento del precio del contrato. Según la acusación formal, luego un coconspirador transfería el dinero solicitado en las facturas fraudulentas a la cuenta de corretaje de Grupo, supuestamente a sabiendas de que las facturas eran fraudulentas y los fondos se estaban usando como sobornos.
Se alega que Enrique y Ángela Aguilar luego lavaban el dinero en la cuenta de corretaje de Grupo para realizar pagos ocultos en beneficio de funcionarios de la CFE. Según la acusación formal, Enrique y Ángela Aguilar compraron un yate de aproximadamente $1.8 millones de dólares y un Ferrari de $297,500 dólares a un funcionario de la CFE. Según la acusación formal, Enrique y Ángela Aguilar también pagaron facturas de American Express de un funcionario de la CFE por un valor total superior a $170,000 dólares y enviaron aproximadamente $600,000 dólares a familiares de un funcionario de la CFE.
Ángela Aguilar fue arrestada el 10 de agosto de 2010 por una demanda criminal cuando viajó a Houston procedente de México. Fue ordenada su detención y fue trasladada al Distrito Central de California, donde permanece bajo custodia.
Una acusación formal es apenas una acusación y los demandados son considerados inocentes hasta que se pruebe su culpabilidad, más allá de la duda razonable.
El cargo de conspiración bajo la FCPA conlleva una sentencia máxima de cinco años de prisión y una multa de $250,000 dólares o el doble del valor ganado o perdido, lo que sea mayor. Cada uno de los cuatro cargos bajo la FCPA tiene una sentencia máxima de cinco años de prisión y una multa de $100,000 dólares o el doble del valor ganado o perdido, lo que sea mayor. Los cargos de conspiración y gran lavado de dinero tienen una sentencia máxima cada uno de 20 años de prisión y una multa de $500,000 dólares o el doble del valor de la propiedad asociada a la transacción, lo que sea mayor. La acusación formal también da aviso de confiscación criminal.
Están cargo de la acusación en el caso el Abogado Litigante Principal Nicola J. Mrazek de la Sección de Fraude de la División Criminal y el Fiscal Federal Auxiliar Douglas M. Miller en el Distrito Central de California. El caso fue investigado por la Oficina Local en los Ángeles del FBI y la Oficina Local en Los Ángeles de IRS-CI, con la asistencia de la Oficina del Inspector General del Departamento de Seguridad Nacional. El Abogado Litigante Christopher Dana de la Oficina de Asuntos Internacionales de la División Criminal brindó asistencia significativa en el caso.
Tuesday 14 September 2010
MS-13 Gang Leader Sentenced to Life in Prison for Racketeering Offenses Including the Murder of a WitnessRead the Press Release
WASHINGTON - Juan Carlos Moreira, aka “Stokey” and “Stocky,” was sentenced today by Chief U.S. District Court Judge Deborah K. Chasanow to life in prison for conspiracy to participate in a racketeering enterprise known as MS-13, conspiring to and committing murder in aid of racketeering, witness tampering murder and assault with a dangerous weapon in aid of racketeering. Judge Chasanow also ordered that Moreira pay $4,886 in restitution for the funeral and burial costs of Randy Calderon, whom Moreira shot and killed.
The sentence was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Theresa R. Stoop of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief Roberto L. Hylton of the Prince George’s County, Md., Police Department; Special Agent in Charge Richard A. McFeely of the FBI; Special Agent in Charge William Winter of Homeland Security Investigations; Chief J. Thomas Manger of the Montgomery County, Md., Police Department; Chief Darien L. Manley of the Maryland-National Capital Park Police, Montgomery County Division and Chief Larry M. Brownlee Sr. of the Maryland-National Capital Park Police, Prince George’s County Division.
According to his plea agreement, Moreira, 30, a native of El Salvador who resided in Silver Spring, Md., was a leader of the Sailor Locos Salvatruchos Westside (SLSW) clique of La Mara Salvatrucha, also known as MS-13. A gang composed primarily of immigrants or descendants of immigrants from El Salvador, MS-13 has members operating throughout Prince George’s County and Montgomery County, and elsewhere inside and outside of the United States. Moreira was born in El Salvador where he was “jumped in” to the SLSW clique. In 1998, Moreira entered the United States illegally and, along with four other people, founded the SLSW clique in Maryland in the summer of 2000. From that time until the summer of 2003, Moreira held the leadership position of “First Word” of the Maryland SLSW clique, which required him to lead clique meetings, represent the clique at general and regional meetings, direct the activities of the clique and pay dues.
According to the statement of facts, Moreira and other members of SLSW stabbed an MS-13 member from a Virginia clique on Jan. 1, 2003, after Moreira and the other MS-13 member had a verbal confrontation at a party.
Moreira also admitted that in the early months of 2003, he and the Sailors clique possessed a MAC-90 automatic assault rifle, as well as 7.62 mm ammunition for the rifle. On April 9, 2003, Moreira sold the rifle for $1,500 to an undercover law enforcement agent.
According to the plea agreement, MS-13 members Nelson Bernal and Randy Calderon murdered a suspected rival gang member, Eliuth Madrigal, in Moreira’s apartment in Silver Spring on Nov. 22, 2003. Moreira was in an upstairs bedroom at the time of the murder. When Moreira was informed of the murder, he ordered Calderon and Bernal to remove the body from the apartment and led the group in cleaning up the murder scene. Moreira later attempted to cover up the murder by painting the walls and changing the carpet in the apartment, where Madrigal had been stabbed repeatedly.
Shortly after the Madrigal murder, and still on Nov. 22, 2003, Moreira directed Bernal and Calderon to accompany him to the apartment of Israel Ramos-Cruz, aka “Taylor , ” 33, who held the “First Word” leadership position of the Sailors clique at the time. After arriving at the residence, Moreira and Ramos-Cruz had a private discussion in the kitchen area while the others were in the living room, then returned to the living room and told Calderon that he and others were to paint MS-13 graffiti in celebration of Calderon’s murder of Madrigal. Ramos-Cruz gave Calderon a can of blue spray paint and instructed another member of the Sailors clique, Santos Maximino Garcia, aka “Curley,” 33, to drive Moreira and Calderon to their destination. After Garcia and Calderon left the apartment, Ramos-Cruz gave Moreira a handgun. Moreira directed Garcia to take them to an area behind a convenience store in Mount Rainier, Md., where Sailors members had previously spray painted graffiti. Moreira and Calderon exited the vehicle and a short time later Moreira fired a single shot into Calderon’s head, killing him. According to the statement of facts, Moreira and Ramos-Cruz later made statements to the effect that Calderon had to be killed because he would not have been tough and would have told police about the Madrigal murder.
On Jan. 5, 2005, Moreira and Omar Vasquez, aka “Duke,” 32, a fellow Sailors member, were involved in a fight with members of a rival gang at a fast food restaurant in Alexandria, Va., Moreira and Vasquez lost the fight and Moreira admitted that in response, on Jan. 21, 2005, he and multiple other MS-13 members went in search of the rival gang involved in the fight. They drove to an apartment building in Alexandria, where they saw a group of youths that they believed included a member of the rival gang that had fought with Moreira earlier in the month. Moreira and another MS-13 member approached the group and each fired multiple shots at the group, wounding three juvenile males, one of whom died as a result of multiple gunshot wounds.
Ramos-Cruz, Garcia and Vasquez were convicted at trial. Ramos-Cruz and Vasquez were sentenced to life in prison and Garcia was sentenced to 32 years in prison. Bernal, 29, of Hyattsville, pleaded guilty to charges related to his role in the gang. A sentencing date for Bernal has not been set.
ATF’s RAGE Task Force, the Prince George’s County State’s Attorney Office and the Montgomery County State’s Attorney Office provided assistance in this matter.
The case was prosecuted by Assistant U.S. Attorneys Robert K. Hur and William D. Moomau for the District of Maryland; Trial Attorney Michael Warbel of the Criminal Division’s Capital Case Unit; and James M. Trusty, Acting Chief of the Criminal Division’s Gang Unit.
Líder de la pandilla MS-13 sentenciado a cadena perpetua por delitos de delincuencia organizada, entre ellos el homicidio de un testigoRead the Press Release
WASHINGTON - Juan Carlos Moreira, alias “Stokey” y “Stocky”, fue sentenciado hoy por la Jueza Federal de Distrito Principal Deborah K. Chasanow a cadena perpetua por conspirar para participar en una empresa de delincuencia organizada conocida como MS-13, conspirar para cometer un homicidio para promover la delincuencia organizada y cometer el asesinato, homicidio para manipular testigos y agresión con un arma peligrosa para promover la delincuencia organizada. La Jueza Chasanow también le ordenó a Moreira pagar $4,886 dólares en restitución para los costos del funeral y el entierro de Randy Calderón, a quien Moreira baleó y asesinó.
La sentencia fue anunciada por el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal; el Fiscal Federal para el Distrito de Maryland Rod J. Rosenstein; la Agente Especial a Cargo Theresa R. Stoop del Buró de Alcohol, Tabaco, Armas de Fuego y Explosivos - División Local de Baltimore; el Jefe Roberto L. Hylton del Departamento de Policía del Condado de Prince George; el Agente Especial a Cargo Richard A. McFeely del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]; el Agente Especial a Cargo William Winter de Investigaciones de Seguridad Nacional; el Jefe J. Thomas Manger del Departamento de Policía del Condado de Montgomery; y el Jefe Darien L. Manley de la Policía de Maryland National Capital Park, División del Condado de Prince George.
De acuerdo con su declaración de culpabilidad, Moreira, 30, un nativo de El Salvador que residía en Silver Spring, Md., era líder de la división Sailor Locos Salvatruchos Westside (SLSW) de La Mara Salvatrucha, también conocida como MS-13. MS-13 es una pandilla compuesta principalmente de inmigrantes o descendientes de inmigrantes de El Salvador, con miembros que operan en todo el Condado de Prince George y el Condado de Montgomery, Md., y en otros lugares dentro y fuera de los Estados Unidos. Moreira nació en El Salvador, de donde pasó a la división SLSW. En 1998, Moreira ingresó ilegalmente a los Estados Unidos y, junto con otras cuatro personas, fundó la división SLSW en Maryland en el verano de 2000. Desde ese momento y hasta el verano de 2003, Moreira ocupó un cargo de liderazgo de “Primera palabra” de la división SLSW de Maryland, el cual requería que encabezara reuniones de la división, representara a la división en reuniones generales y regionales, y dirigiera las actividades de la división y pagara derechos.
De acuerdo con la declaración de los hechos, Moreira y otros miembros de la SLSW acuchillaron a un miembro de la MS-13 de una división de Virginia el 1 de enero de 2003, después de que Moreira y el otro miembro de la MS-13 tuvieron un enfrentamiento verbal en una fiesta.
Moreira también admitió que en los primeros meses de 2003, él y la división de los Sailors poseían un rifle automático de asalto MAC-90, así como municiones de 7.62 mm para el rifle. El 9 de abril de 2003, Moreira vendió el rifle por $1,500 dólares a un agente encubierto de las fuerzas del orden público.
De acuerdo con la declaración de culpabilidad, los miembros de la MS-13 Nelson Bernal y Randy Calderón asesinaron a un supuesto miembro de una pandilla rival, Eliuth Madrigal, en el apartamento de Moreira en Silver Spring el 22 de noviembre de 2003. Moreira se encontraba en un dormitorio en el piso superior en el momento del homicidio. Cuando Moreira fue informado del homicidio, ordenó a Calderón y Bernal que retiraran el cuerpo del apartamento e instruyó al grupo acerca de cómo limpiar el lugar del asesinato. Más tarde, Moreira intentó encubrir el asesinato al pintar las paredes y cambiar la alfombra del apartamento donde Madrigal había sido apuñalado varias veces.
Poco después del asesinato de Madrigal, y aún el día 22 de noviembre de 2003, Moreira instruyó a Bernal y Calderón que lo acompañaran al apartamento de Israel Ramos-Cruz, alias Taylor, quien ocupaba el cargo de liderazgo de “Primera palabra” de la división de los Sailors en ese momento. Después de llegar al domicilio, Moreira y Ramos-Cruz tuvieron una discusión privada en la cocina mientras los demás se encontraban en la sala, y luego regresaron a la sala y le dijeron a Calderón que él y otros debían pintar graffiti de la MS-13 en celebración del asesinato de Madrigal por parte de Calderón. Ramos-Cruz le dio a Calderón una lata de pintura azul en aerosol e instruyó a otro miembro de la división de los Sailors, Santos Maximino García, alias “Curley”, que condujera a Moreira y Calderón a su destino. Después de que García y Calderón dejaran el apartamento, Ramos-Cruz le dio una pistola a Moreira. Moreira instruyó a García que los llevara a un área detrás de una tienda en Mount Rainier, Md., donde miembros de los Sailors habían pintado graffiti anteriormente. Moreira y Calderón salieron del vehículo y poco después Moreira le disparó una vez en la cabeza de Calderón, lo que le provocó la muerte. De acuerdo con la declaración de los hechos, Moreira y Ramos-Cruz luego hicieron declaraciones en las que expresaron que tuvieron que matar a Calderón porque no hubiera sido fuerte y le hubiera contado a la policía sobre el asesinato de Madrigal.
El 5 de enero de 2005, Moreira y Omar Vàsquez, alias “Duke”, 32, otro miembro de Sailors, participaron en una pelea con miembros de una pandilla rival en un restaurante de comida rápida en Alexandria, Va. Moreira y Vàsquez perdieron la pelea y Moreira admitió que, como respuesta, el 21 de enero de 2005, él y múltiples miembros de la MS-13 salieron en búsqueda de la pandilla rival involucrada en la pelea. Condujeron hasta un edificio de apartamentos en Alexandria, Va., donde vieron a un grupo de jóvenes que creyeron que incluía a un miembro de la pandilla rival que había peleado con Moreira a principios de ese mes. Moreira y otro miembro de la MS-13 se acercaron al grupo y cada uno disparó múltiples tiros al grupo e hirió a tres jóvenes de sexo masculino, uno de los cuales falleció como resultado de múltiples heridas de bala.
Ramos-Cruz, García y Vàsquez fueron condenados en el juicio. Ramos-Cruz y Vàsquez fueron sentenciados a cadena perpetua y García fue sentenciado a 32 años de prisión. Bernal, 29, de Hyattsville, se declaró culpable de cargos asociados a su papel en la pandilla. Aún no se establecido una fecha para la lectura de la sentencia de Bernal.
La Fuerza de Tarea Regional de Control Antipandillas [Regional Anti-Gang Enforcement (RAGE)] del Buró de Control de Bebidas Alcohólicas, Tabaco, Armas de Fuego y Explosivos [Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF)], la Fiscalía Federal del Condado de Prince George y la Fiscalía Estatal del Condado de Montgomery brindaron asistencia en este caso.
Estuvieron a cargo de la acusación en el caso los Fiscales Federales Auxiliares Robert K. Hur y William D. Moomau del Distrito de Maryland; el Abogado Litigante Michael Warbel de la Unidad de Casos Capitales de la División Criminal; y James M. Trusty, Jefe Interino de la Unidad Antipandillas de la División Criminal.
Corporate Executive Pleads Guilty to Role in Illegal Campaign Contribution Scheme and to Witness TamperingRead the Press Release
WASHINGTON - A Natick, Mass., man pleaded guilty today in federal court in Boston to engaging in a scheme to conceal from the Federal Election Commission (FEC) and from the public illegal campaign contributions made to federal campaign committees, and to witness tampering, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Carmen M. Ortiz for the District of Massachusetts; and Richard DesLauriers, Special Agent in Charge of the FBI in New England.
Martin Raffol, 54, pleaded guilty before U.S. District Court Judge Richard G. Stearns in Boston to one count of engaging in a scheme to conceal material information from the FEC and one count of witness tampering.
“Hiding the true source of campaign funds from election authorities and the public fundamentally impacts the transparency of our democratic system of governance,” said Assistant Attorney General Lanny A. Breuer of the Criminal Division. “The Department of Justice is committed to investigating and prosecuting anyone who tries to evade campaign finance laws and conceal the true source of donations.”
“Today’s conviction should be a reminder that schemes aimed at facilitating illegal campaign contributions will be uncovered and prosecuted to the fullest extent of the law,” said U.S. Attorney Carmen N. Ortiz.
According to the criminal information, Raffol served as executive vice president for a company that provided management services to a portfolio of real estate holdings, including several publically-subsidized housing communities in the Dorchester and Roxbury neighborhoods of Boston. Executives from the company and its parent company actively solicited campaign contributions from various individuals and entities for candidates running for federal, state and local office throughout the years, as part of its business. According to the court document, these executives did so primarily to advance the business interests of the company, including obtaining support for public financing of a large-scale development project within the city of Boston.
As part of an effort to increase the amount of campaign contributions to candidates who supported the company’s projects or who might support these projects in the future, executives and senior management directed Raffol to solicit campaign contributions from vendors who regularly did work for the company.
Raffol admitted that in turn he engaged in an ongoing scheme whereby he caused these vendors to be reimbursed for substantial campaign contributions solicited from them. This included vendors who provided general contracting services, energy services and security services. As a result of Raffol’s scheme, the true source of these vendors’ campaign contributions was disguised from the FEC, similar state authorities and ultimately the public. In total, Raffol caused more than $12,000 in illegal campaign contributions to be made to candidates running for federal office, including candidates for the U.S. House of Representatives. He also caused more than $30,000 in illegal contributions to be made to candidates running for state and local office, including candidates for governor, lieutenant governor, secretary of the commonwealth, state senate, state house of representatives, district attorney, mayor of the city of Boston and Boston City Council. This scheme caused numerous reports, which falsely indicated the source of these contributions, to be unwittingly filed by the relevant political committees with the FEC and similar authorities.
Raffol admitted that he also engaged in witness tampering to conceal the illegal campaign contribution scheme and to prevent law enforcement from learning of the scheme. Specifically, Raffol instructed a witness to lie to authorities if they questioned him about the alleged campaign contribution scheme.
At sentencing, Raffol faces up to five years in prison and a $250,000 fine for the false statement charge, and 20 years in prison and a $250,000 fine for the witness tampering charge. Sentencing has been scheduled for Dec. 8, 2010.
The case was investigated by the FBI. It is being prosecuted by Assistant U.S. Attorney James Dowden of the U.S. Attorney’s Office for the District of Massachusetts and Senior Litigation Counsel William M. Welch II of the Criminal Division.
Monday 13 September 2010
Statement of Attorney General Eric Holder on 2009 Crime StatisticsRead the Press Release
WASHINGTON – "Today’s report showing violent crime declined in 2009 is an encouraging sign that our nation continues to make progress in the fight against crime. Although there are many reasons behind the decline, one thing is certain: smarter policing practices and investments in law enforcement play a significant role in reducing violent and property crime.
"In 2009, the Obama administration provided over four billion dollars in support to law enforcement and criminal justice initiatives through the American Recovery and Reinvestment Act, including one billion in COPS funding to keep police officers on the street. We also provided an additional $519 million in Byrne Justice Assistance Grants to support our state and local criminal justice partners. These investments have helped maintain public safety and encourage new criminal justice innovations in state and local jurisdictions across the country and have now funded over 16,000 jobs, many of which would have been lost without passage of the Recovery Act.
"The decrease in violent crime has a real impact on the lives of millions of Americans, but we have much more to do. We will continue to support our state and local partners and to implement the tough, smart policing policies that we know make a difference in the fight against crime."
Justice Department Files Lawsuit Alleging Religious Discrimination Against the City of Walnut, CaliforniaRead the Press Release
WASHINGTON – The Justice Department announced today that it has filed a lawsuit against the city of Walnut, Calif., alleging that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA), when, in 2008, it denied a conditional use permit to the Chung Tai Zen Center so that it could build and operate a Buddhist house of worship at property it then owned in the city.
The lawsuit, filed today in U.S. District Court for the Central District of California, alleges that until it denied the Zen Center’s application in January 2008, the city had not rejected any application for a conditional use permit to build, expand or operate a house of worship since at least 1980. The complaint further alleges that the city treated the Zen Center differently than similarly situated religious and non-religious facilities. For example, the complaint alleges that in August 2008, the city approved a conditional use permit for a Catholic church that, when completed, will be larger than the Zen Center’s proposed facility. The complaint also alleges that between 1998 and 2003, the city built a civic center complex two blocks from Zen Center’s former location in Walnut.
"Religious freedom is among our most cherished rights, and our nation’s laws prohibit cities and towns from discriminating based on religion when they make zoning decisions related to houses of worship," said Thomas Perez, Assistant Attorney General of the Civil Rights Division. "No faith should be singled out for inferior treatment when it seeks to build a house of worship in compliance with local zoning laws."
The government’s complaint seeks a court order declaring that the actions of the city with respect to the Zen Center violated RLUIPA and an injunction to prohibit the city from discriminating against the Zen Center and other religious entities and institutions that seek to operate in Walnut.
"Upholding the constitutional rights of all Americans is one of the most important objectives of the Department of Justice and this office," said André Birotte, U.S. Attorney for the Central District of California. "We are committed to combating religious discrimination and promoting religious liberty for all people, regardless of their faith or religious denomination. The Religious Land Use and Institutionalized Persons Act of 2000 is an important tool in protecting individuals and houses of worship from discriminatory and unduly burdensome zoning regulations."
RLUIPA, enacted in 2000, prohibits religious discrimination in land use and zoning decisions. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743. Additional information about the Justice Department’s efforts to combat religious discrimination may be found at www.usdoj.gov/crt/religdisc/religionpamp.htm.
The complaint is an allegation of unlawful conduct. The allegations must be proven in federal court.
Declaración del Secretario de Justicia de los Estados Unidos Eric Holder sobre las estadísticas del crimen 2009Read the Press Release
WASHINGTON – "El informe de hoy, que muestra que los crímenes violentos disminuyeron en 2009, es un indicio positivo de que nuestro país sigue progresando en la lucha contra el crimen. Si bien la disminución se debe a diversos motivos, una cosa queda clara: las prácticas e inversiones policiales más inteligentes en las fuerzas del orden público tienen un rol significativo en la reducción de los crímenes violentos y contra la propiedad.
"En 2009, el gobierno de Obama brindó más de cuatro mil millones de dólares en apoyo a iniciativas de aplicación legal y de justicia criminal a través de la Ley de Recuperación y Reinversión de los Estados Unidos, entre ellos mil millones de dólares en financiación al programa de Servicios de Policía con Orientación Comunitaria [Community Oriented Policing Services (COPS)] para mantener a los agentes policiales en la calle. También hemos entregado $519 millones de dólares adicionales en Subsidios de Asistencia Judicial Byrne para apoyar a nuestros asociados estatales y locales de justicia criminal. Estas inversiones han contribuido a mantener la seguridad pública y fomentar nuevas innovaciones en justicia criminal en jurisdicciones estatales y locales en todo el país y han financiado hasta el momento más de 16,000 puestos de trabajo, muchos de los cuales se hubieran perdido de no aprobarse la Ley de Recuperación.
"La disminución de los crímenes violentos ha tenido un impacto real en la vida de millones de estadounidenses, pero aún tenemos mucho por hacer. Seguiremos apoyando a nuestros asociados estatales y locales e implementando las políticas policiales estrictas e inteligentes que sabemos que marcan una diferencia en la lucha contra el crimen".
Friday 10 September 2010
North Carolina Real Estate Speculator Pleads Guilty to Bid Rigging in Real Estate Foreclosure AuctionsRead the Press Release
WASHINGTON – A Raleigh, N.C., real estate speculator pleaded guilty to conspiring to rig bids for public real estate foreclosure auctions held in multiple counties in eastern North Carolina, the Department of Justice announced today.
Christopher J. Deans pleaded guilty today in U.S. District Court in Greenville, N.C., for participating in a conspiracy to rig bids during the real estate foreclosure auction process in eastern North Carolina from at least as early as April 2003 until at least April 2005. The primary purpose of the conspiracy was to suppress and eliminate competitive bidding on foreclosed properties and obtain selected real estate offered at public foreclosure auctions at non-competitive prices.
According to the charge, which was filed on July 29, 2010, Deans, an owner of Raleigh-based real estate investment companies, and co-conspirators agreed not to bid against each other during public real estate foreclosure auctions in eastern North Carolina. As part of the conspiracy, Deans and co-conspirators paid one another not to bid on foreclosed properties and received economic benefits from the rental and sale of real estate purchased through the rigged foreclosure auction process. The conspiracy resulted in the suppression of competitive bidding on foreclosed properties which caused foreclosing lienholders and certain homeowners to receive a lower price for properties sold through foreclosure actions, the department said.
The bid rigging violation with which Deans is charged carries a maximum penalty of 10 years in prison and a $1 million fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
The charge against Deans is the first to arise in an ongoing federal antitrust investigation of fraud and bidding irregularities in certain real estate auctions in the Eastern District of North Carolina. The investigation is being conducted by the Antitrust Division’s Atlanta Field Office and the FBI.
Anyone with information concerning bid rigging or fraud related to real estate foreclosure auctions should contact the Antitrust Division’s Atlanta Field Office at 404-331-7100 or visit www.justice.gov/atr/contact/newcase.htm.
Justice Department Reaches Agreement to Protect Rights of Military and Overseas Voters in WisconsinRead the Press Release
WASHINGTON – The Justice Department today announced that it has reached an agreement with Wisconsin officials to help ensure that military service members and U.S. citizens living overseas have an opportunity to participate fully in the Nov. 2, 2010, federal general election.
The agreement, which was filed at the same time as a lawsuit by the Civil Rights Division, provides additional time – until Nov. 19, 2010 – for receipt of absentee ballots to ensure eligible military and overseas voters have sufficient time to cast and return their votes and to have them counted. The agreement also requires Wisconsin officials to take certain steps to ensure that all local election offices in the state send absentee ballots to military and overseas voters by no later than Oct. 1, 2010, by the means requested by the voter: i.e., by mail, email or fax.
Under the agreement, Wisconsin will provide a 49-day window for military and overseas voters to receive, mark and submit their ballots to ensure sufficient time to have their ballots counted. To accomplish this, the agreement requires Wisconsin to both accelerate the date by which they will send ballots out to military and overseas voters to Oct. 1, 2010, and to add additional time -- until Nov. 19, 2010 -- for receipt of their absentee ballots. Absent the agreement, military and overseas voters would have had much less time to receive and return their ballots.
The lawsuit was brought under the Uniformed and Overseas Citizens Absentee Voting Act of 1986 (UOCAVA), as amended by the Military and Overseas Voter Empowerment Act of 2009 (MOVE Act). UOCAVA requires states to allow uniformed services voters (serving both overseas and within the United States) and overseas citizens to register to vote and to vote absentee for all elections for federal office.
“The department is fully committed to vigorously enforcing the MOVE Act, which is designed to remove barriers and give members of the uniformed services, their families and our citizens living overseas the opportunity for full participation in the elections of our nation’s leaders,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “I am extremely pleased that Wisconsin’s officials have worked cooperatively with the department and have agreed to measures that will afford immediate relief to ensure that the state’s military and overseas voters, many of whom are members of our armed forces and their families bravely serving our country around the world, will have the opportunity to have their votes counted in the upcoming election.”
The agreement, which still must be approved by the federal district court in Madison, Wis., resolved the department’s claims regarding compliance with UOCAVA in the Nov. 2, 2010, election. The agreement also commits the state to take steps to ensure compliance with UOCAVA in future federal elections and provide a report to the Department of Justice on those efforts.
In 2009, Congress enacted the MOVE Act, which made broad amendments to UOCAVA. Among those changes was a requirement that states transmit absentee ballots to voters covered under UOCAVA no later than 45 days before federal elections. Under the new law, states can apply to the Department of Defense for a hardship waiver of this requirement for a particular Federal election if the state’s primary election date prohibited it from sending ballots by the 45th day before the election; if a legal contest causes a delay in generating ballots; or if the state’ s constitution prohibits compliance. To obtain a waiver, states must 1) establish that one or more of these circumstances creates an undue hardship, and 2) present a comprehensive plan that provides UOCAVA voters sufficient time to receive and submit marked absentee ballots in time to have them counted in that election. Waiver determinations are made by the Department of Defense, after consulting with the Department of Justice.
Wisconsin sought a hardship waiver on grounds that its Sept. 14, 2010, primary date prohibited it from complying with the 45-day deadline specified by the MOVE Act. On Aug. 27, 2010, the Department of Defense denied Wisconsin’s request for a waiver, finding that under the MOVE Act although the state had shown an undue hardship for the Nov. 2, 2010, election, its proposed comprehensive plan did not afford sufficient time for UOCAVA voters to receive and submit absentee ballots in time to have them counted. Immediately following denial of the waiver application, the Department of Justice advised Wisconsin officials that the department had authorized litigation to enforce UOCAVA. Discussions with the state were initiated to resolve the matter, which led to the agreement filed today.
More information about UOCAVA and other federal voting laws is available on the Department of Justice web site at www.usdoj.gov/crt/voting/misc/activ_uoc.htm . Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Hawaiian County Agrees to Pay Restitution and Modify Operations to Resolve Endangered Species Act & Migratory Bird Treaty Act ViolationsRead the Press Release
HONOLULU – The county of Kauai, Hawaii, has entered into a plea agreement to resolve alleged violations of the Endangered Species Act (ESA) and Migratory Bird Treaty Act (MBTA), the Justice Department announced today. The county today entered a plea of guilty to violating the MBTA by taking, that is killing or wounding, more than 18 migratory birds, specifically Newell’s shearwaters (known in the Hawaiian language as ‘a’o).
According to the court documents, the Newell’s shearwater (Puffinus auricularis newelli) is a seabird native to the Hawaiian Islands. The majority of the world’s population of Newell’s shearwaters nest on the island of Kauai, specifically in burrows on inland mountains. Young shearwaters leave these inland mountain nests and make their first flight to the sea in September through December each year, typically at night. The young birds use mountain air currents or physical drop offs to become airborne. If a young shearwater falls to the ground in a location without conditions such as those that occur in the inland mountains or at sea, it usually will be unable to regain flight.
The Newell’s shearwater is a threatened species protected under the ESA, and a migratory bird protected under the MBTA. The species is identified as endangered on the International Union for Conservation of Nature red list.
According to the information, it has been publicly documented since at least 1979 that fledgling Newell’s shearwaters are attracted to bright lights which often causes them to circle the lights and fly more passes across any nearby obstacles. This attraction may cause the birds to fly into the light or other obstacles near the light and thereby become killed or injured, or to fly around the lights until they fall to the ground exhausted where the bird may be killed by a car, predator or starvation. On approximately Aug. 3, 2005 and Sept. 16, 2005, as well as on various other dates thereafter, the county was notified by the U.S. Fish and Wildlife Service that its facilities, particularly the lighting at its facilities, were taking protected seabirds, including threatened Newell’s shearwaters. The county was advised that these takings violate both the MBTA and the ESA. The county was informed that it could prepare and submit an Habitat Conservation Plan (HCP) to apply for a permit that would authorize certain takings incidental to the operation of its facilities, and was given advice over a number of years that it could minimize takings by, among other things, shielding its lights.
As of Aug. 30, 2010, the county of Kauai had not shielded any of its lights, prepared an HCP or applied for a permit authorizing takings of any protected seabirds. Only on Aug. 31, 2010, did the county apply to participate in an island-wide HCP plan currently being developed with regard to seabirds.
The information specifies that during each of the past five years some Newell’s shearwaters have been killed, or otherwise taken, by lighting at facilities operated by the county, including but not limited to, the taking of at least one protected Newell’s shearwater on each of the following dates: Oct. 14, 19 and 28, 2005; Oct. 18, 20 and 21, 2006; Oct. 18 and 19, 2007; and Oct. 23, 2009.
Under the terms of the plea, the parties recommend the maximum statutory fine of $15,000 for the single count charged, and a period of probation of 30 months with specific conditions of probation intended to avoid additional violations during the period of probation. One set of conditions relate specifically to the use of lights at the county’s football stadiums and a second set relate to lights at all other county facilities, each covering a period of three fallout seasons (that is, Sept. 15 to Dec. 15 of 2010-2012).
For the football facilities, for 2010 the county agrees that night football games will not be played for all but four specific games within the fallout seasons this year. For the four identified games, they may play them at night with certain lighting restrictions, to include shielding the lights and monitoring. In this first year if shielding is not accomplished, the games may still be played provided that the county creates an escrow fund of $60,000, from which $10,000 per killed or seriously injured bird would be transferred to an account for use to benefit seabirds on Kauai. However, once six takings are reached, any remaining games of the four cannot be played at night. Starting with the 2011 football season for any night games all lights must be shielded and a similar escrow account funded. Once four takings that involve the downing of birds are reached, any remaining games cannot be played at night.
For all other facilities, the lights must be inventoried and measures must be taken to minimize and monitor for takings, all on a specific schedule. As of 2011, if such facility lights are to be used at night during the fallout season (Sept. 15 until Dec. 15), an escrow account of $100,000 must be funded, with an option to add additional funds in increments. Again, transfers would be made related to any takings that occur, from the escrow account to one for use to benefit seabirds on Kauai. If and when the fund is exhausted lights at facilities with takings cannot be turned on at night for the duration of the fallout season.
The plea also provides that the county will make a payment of $180,000 to partially repair the harm of past takings to an account to be established at the National Fish and Wildlife Foundation for use to benefit protected seabirds on Kauai, and a payment of $30,000 to reduce the harm from anticipated future takings within the period of probation and prior to the county acquiring an incidental take permit, to the Kauai Humane Society to augment its Save Our Shearwater program.
"The Department of Justice views the taking of protected wildlife as a serious violation of the law, and we are pleased that the county of Kauai is taking action to reduce the risk of harm to this threatened seabird," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The county’s action will enable residents to continue to use county facilities, while protecting this native species that is part of Hawaii’s cultural and natural heritage."
The county faced a potential maximum sentence of five years probation and statutory maximum fines of $15,000 to $25,000 for each MBTA or ESA violation – more than $720,000 in total – for which it might have been found guilty after trial. In addition, mandatory conditions of any sentence of probation require that no further violations of law be committed during the period of probation.
The Endangered Species Act prohibits the unauthorized taking, including harming and harassing, of species listed as threatened or endangered. The Migratory Bird Treaty Act prohibits the unauthorized taking, including wounding or killing, of bird species listed as migratory.
Assistant Attorney General Moreno credited special agents from the U.S. Fish and Wildlife Service for the investigation of the case culminating in the information and agreement.
The case is being prosecuted by the Environmental Crime Section, Environment and Natural Resources Division, U.S. Department of Justice.
Thursday 9 September 2010
Three Principals of A&O Entities Arrested and Charged for Their Alleged Roles in $100 Million Fraud SchemeRead the Press Release
RICHMOND , Va. – Three principals of a group of businesses that acquired and marketed life settlements to investors were arrested and charged in an 18-count indictment for their alleged roles in a $100 million fraud scheme with more than 800 victims across the United States and Canada.
The charges were announced today by U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Assistant Attorney General Lanny A. Breuer of the Criminal Division.
An indictment unsealed today in U.S. District Court for the Eastern District of Virginia charges Christian M. Allmendinger, 39; Adley H. Abdulwahab, 35; and David C. White, 40, with one count of conspiracy to commit mail fraud, six counts of mail fraud, one count of conspiracy to commit money laundering, six counts of money laundering and four counts of securities fraud. The indictment also seeks forfeiture of approximately $103 million from all three defendants.
“Today’s announcement is another example of how allegations in a national financial fraud case can directly harm everyday people on Main Street,” said U.S. Attorney MacBride. “The alleged victims in this case are not banks or professional investors taking a calculated risk. Instead, this case involves elderly retirees and others who gave most – and in some cases, all – of their life savings and have seen it all disappear.”
“These defendants allegedly defrauded unsuspecting investors of more than $100 million, often for their own personal enrichment,” said Assistant Attorney General Breuer. “As a result of their alleged scheme, more than 800 victims across the United States and Canada were cheated out of their savings and deceived. Through the Financial Fraud Enforcement Task Force we are continuing to root out financial fraud in all its forms.”
According to the indictment, Allmendinger, Abdulwahab, White and their co-conspirators were principals with A&O Resource Management Ltd., and various related entities, which sold life settlement investments. The defendants allegedly engaged in a scheme to defraud investors by making misrepresentations about such things as A&O’s prior success, its size and office locations, its number of employees, the risks of its investment offerings, and its safekeeping and use of investor funds. The indictment further alleges that when state regulators began to scrutinize A&O’s investment products, Abdulwahab and his co-conspirators manufactured a pair of sham transactions in which A&O was “sold” to a shell corporate entity named Blue Dymond and later to another shell corporate entity named Physician’s Trust. It is alleged that following these sham transactions, White became the figurehead president of A&O and Physician’s Trust, but that A&O was still secretly controlled by Abdulwahab and other co-conspirators. The indictment also alleges that Allmendinger, Abdulwahab and their co-conspirators routinely used investor funds for personal enrichment.
If convicted of all the charges in the indictment, Allmendinger, Abdulwahab and White face up to 20 years in prison on each count except the four securities fraud counts, on which they face up to 5 years in prison per count.
In addition to Allmendinger, Abdulwahab and White, four other individuals have been charged with criminal offenses in connection with the A&O fraud scheme. Brent Oncale, 36, of Houston, was charged in a two-count criminal information with conspiracy to commit mail fraud and conspiracy to commit money laundering for his role as vice president of A&O. Russell E. Mackert, 51, of Spring, Texas, was charged in a two-count criminal information with conspiracy to commit mail fraud and bulk cash smuggling for his role as an attorney in the A&O scheme. Eric M. Kurz, 46, of The Woodlands, Texas, was charged in a one-count criminal information with conspiracy to commit mail fraud and money laundering for his actions as a wholesaler of A&O investment products. Tomme Bromseth, 68, of Blackstone, Va., was charged in a two-count criminal information with mail fraud and structuring financial transactions to evade reporting requirements for his role as an A&O sales agent in the Richmond area. In addition to the charging documents, signed plea agreements for Mackert, Oncale, Kurz and Bromseth were filed in U.S. District Court for the Eastern District of Virginia. Related court hearings have yet to be scheduled.
This continuing investigation is being conducted by the U.S. Postal Inspection Service, Internal Revenue Service and FBI, with significant assistance from the Texas State Securities Board. These cases are being prosecuted by Assistant U.S. Attorneys Michael S. Dry and Jessica Aber Brumberg from the Eastern District of Virginia and Trial Attorney Albert B. Stieglitz Jr., of the Criminal Division’s Fraud Section.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
The investigation has been coordinated by the Virginia Financial and Securities Fraud Task Force, an unprecedented partnership between criminal investigators and civil regulators to investigate and prosecute complex financial fraud cases in the nation and in Virginia. The task force is an investigative arm of the President’s Financial Fraud Enforcement Task Force, an interagency national 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.
Propietaria de clínica del área de Miami se declara culpable de ardid de fraude de servicios médicos de $23 millones de dólaresRead the Press Release
WASHINGTON – Una residente del área de Miami que era propietaria de una clínica de infusiones para el VIH y la operaba se declaró culpable hoy por su participación en un ardid de fraude contra Medicare de $23 millones de dólares asociado a infusiones para el VIH, anunciaron hoy el Departamento de Justicia y el Departamento de Salud y Servicios Humanos [Health and Human Services (HHS)].
Flor Crisólogo, 58, se declaró culpable ante el Juez Magistrado Barry L. Garber en el Tribunal Federal de Distrito en Miami de un cargo de conspirar para cometer fraude de servicios médicos. Crisólogo fue acusada originalmente en una acusación formal de mayo de 2010.
Según los documentos de declaración de culpabilidad, Crisólogo era propietaria y operadora de J & F Community Medical Center Inc. Crisólogo admitió haber presentado aproximadamente $23 millones de dólares en reclamos falsos y fraudulentos a Medicare por servicios de inyecciones e infusiones de VIH supuestamente brindados a través de J & F. Según el expediente judicial, Crisólogo contrató a un médico en J & F y conspiró con el médico y terceros para solicitar pruebas innecesarias, firmar análisis médicos y formularios de diagnóstico falsos y autorizar tratamientos para que pareciera que los pacientes, que eran beneficiarios de Medicare, estaban recibiendo servicios médicos. Los servicios incluían terapias médicamente innecesarias de inyecciones e infusiones. Crisólogo admitió que ella y sus conspiradores les pagaron comisiones ilícitas a beneficiarios de Medicare para inducirlos a declarar que habían recibido servicios legítimos en la clínica cuando, en realidad, los servicios de infusión para el VIH no eran provistos o no eran médicamente necesarios.
La sentencia máxima por conspirar para cometer fraude de servicios médicos es de 10 años de prisión. Crisólogo también enfrenta multas y la confiscación de cualquier propiedad o ganancias derivadas de sus actividades criminales. La lectura de la sentencia está programada para el 23 de noviembre de 2010.
La declaración de culpabilidad de hoy fue anunciada por el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal; el Fiscal Federal Wifredo A. Ferrer del Distrito Sur de Florida; John V. Gillies, Agente Especial a Cargo de la Oficina Local de Miami del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]; y el Agente Especial a Cargo Christopher Dennis de la Oficina de Investigaciones de Miami de la Oficina del Inspector General [Office of the Inspector General (OIG)] del HHS.
Está a cargo de la acusación en el caso el Abogado Litigante Joseph S. Beemsterboer de la Sección de Fraude de la División Criminal. El caso fue investigado por el FBI y la Oficina del Inspector General del Departamento de Salud y Servicios Humanos (HHS-OIG).
Desde su creación en marzo de 2007, las operaciones de la Fuerza de Ataque de Fraude contra Medicare en siete distritos lograron la acusación formal de 810 personas que, en conjunto, facturaron fraudulentamente al programa Medicare más de $1.85 billones de dólares. Además, los Centros para Servicios de Medicare y Medicaid del HHS, en trabajo conjunto con la HHS-OIG, están tomando medidas para lograr una mayor responsabilización y una menor presencia de proveedores fraudulentos.
Para obtener màs información sobre el Equipo de Acción, Prevención y Control de Fraude de Servicios Médicos [Healthcare Fraud Prevention and Enforcement Action Team (HEAT)], visite: www.stopmedicarefraud.gov.
Miami-area Clinic Owner Pleads Guilty in $23 Million Health Care Fraud SchemeRead the Press Release
WASHINGTON – A Miami-area resident who owned and operated an HIV infusion clinic pleaded guilty today for her participation in a $23 million HIV infusion Medicare fraud scheme, the Departments of Justice and Health and Human Services announced today.
Flor Crisologo, 58, pleaded guilty before Magistrate Judge Barry L. Garber in U.S. District Court in Miami to one count of conspiracy to commit health care fraud. Crisologo was originally charged in a May 2010 indictment.
According to the plea documents, Crisologo was the owner and operator of J & F Community Medical Center Inc. Crisologo admitted that she submitted approximately $23 million in false and fraudulent claims to Medicare for HIV injection and infusion services purportedly provided through J & F. According to court documents, Crisologo hired a physician at J & F and conspired with the physician and others to order unnecessary tests, sign false medical analyses and diagnosis forms, and authorize treatments to make it appear that medical services were being provided to patients who were Medicare beneficiaries. The services included medically unnecessary injection and infusion therapies. Crisologo admitted that she and her conspirators paid Medicare beneficiaries kickbacks to induce the beneficiaries to claim they received legitimate services at the clinic when in fact the HIV infusion services were either not provided or were not medically necessary.
The maximum sentence for conspiracy to commit health care fraud is 10 years in prison. Crisologo also faces fines and forfeiture of any property or proceeds derived from her criminal activities. Sentencing is scheduled for Nov. 23, 2010.
Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies , Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (OIG), Office of Investigations Miami office.
This case is being prosecuted by Trial Attorney Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG.
Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 810 individuals who collectively have falsely billed the Medicare program for more than $1.85 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 .
Justice Department and McNeese State University Reach Settlement to Ensure Compliance with the Americans with Disabilities ActRead the Press Release
WASHINGTON – The Justice Department today announced a comprehensive settlement agreement with McNeese State University and the Board of Supervisors of the University of Louisiana System under the Americans with Disabilities Act (ADA).
The settlement agreement resolves a compliance review initiated by the United States in 2008. The United States initiated an investigation of the university after the state attorney general’s office took the position – in private ADA litigation against the campus – that it was not required to have an accessible toilet room in its primary student union building. Under the agreement, McNeese, a public university located in Lake Charles, La., will continue its efforts to come into compliance with the access provisions of Title II of the ADA. The university will take a number of steps to improve access for students, visitors and employees with disabilities including:
- Bring all newly constructed facilities into compliance with the ADA Standards for Accessible Design;
- Develop and implement a campus wide Physical Access Plan to bring all covered facilities into compliance with the terms of this agreement and Title II of the ADA. The Physical Access Plan will include specific remedial actions and time tables to ensure that the university’s programs, services and activities afford program access by no later than Sept. 1, 2016;
- Display information on its website about disability access and create and/or update its campus-wide emergency evacuation, sheltering, and shelter-in-place plans for individuals with disabilities; and
- Designate an ADA coordinator, to ensure that the university meets the terms of this Agreement and the requirements of the ADA.
In addition to the specific remedial work required by this agreement, the board of supervisors (in conjunction with the Louisiana Division of Administration/Office of Facility Planning) has commenced procedural changes to emphasize ADA accessibility rules and regulations for capital outlay projects for the University of Louisiana System.
"Full access to all programs and services is a civil right enjoyed by all, including individuals with disabilities. We are pleased that McNeese is taking steps to ensure that individuals with disabilities are guaranteed full access to its programs, services and activities, and we applaud the board of supervisors for taking steps to ensure access at all of the University of Louisiana campuses," said Thomas Perez, Assistant Attorney General for the Civil Rights Division.
"This a positive move by McNeese and the board of supervisors. Their efforts reflect a commitment to ensuring that all individuals with disabilities have full access to the university," said Stephanie A. Finley, U.S. Attorney for the Western District of Louisiana."
It is a top priority of the U.S. Attorney’s Office to enforce the laws that guarantee that persons with disabilities have equal opportunity to pursue their education."
The ADA protects individuals with disabilities from discrimination in all activities of state and local government entities, including those activities housed in public schools and universities. For more information about the ADA call the department’s toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TDD), or access the ADA website at www.ada.gov
Former Employee of a National Bank Pleads Guilty for Role in Bid-rigging and Fraud Conspiracies Involving Proceeds of Municipal BondsRead the Press Release
A former employee of a national bank pleaded guilty today for his participation in bid-rigging and fraud conspiracies related to contracts for the investment of municipal bond proceeds and other municipal finance contracts, the Department of Justice announced.
According to plea proceedings today in the U.S. District Court in New York City, Douglas Lee Campbell engaged in separate bid-rigging and fraud conspiracies related to the provision of a type of contract, known as an investment agreement, to public entities throughout the United States, such as state, county and local governments and agencies. Campbell also pleaded guilty to one count of wire fraud. According to the plea agreement, Campbell has agreed to cooperate with the ongoing investigation.
According to court documents, the bank that employed Campbell was a provider of investment agreements and other municipal finance contracts, such as swaps, to public entities. Public entities seek to invest money from a variety of sources, primarily the proceeds of municipal bonds that they issued, to raise money for, among other things, public projects. Public entities typically hire a broker to conduct a competitive bidding process for the award of the investment agreements to invest such money. Competitive bidding for these agreements is the subject of regulations issued by the U.S. Department of the Treasury and is related to the tax-exempt status of the bonds
The department said in court documents that Campbell worked in the bank’s municipal derivatives group as senior vice president and a marketer of investment agreements and other municipal finance contracts. According to the court documents, Campbell engaged in a bid-rigging conspiracy from at least as early as 1998 until approximately September 2005. As a part of the bid-rigging conspiracy, Campbell and co-conspirators designated in advance which co-conspirator provider would be the winning bidder for certain investment agreements and other municipal finance contracts brokered by Rubin/Chambers, Dunhill Insurance Services Inc., also known as CDR Financial Products. CDR is a Beverly Hills, Calif.-based financial products and services firm. Campbell also agreed to submit intentionally losing bids to CDR on investment agreements or other municipal finance contracts that were steered to other providers, giving the false appearance that these deals had been bid competitively in accordance with relevant Treasury regulations.
As a part of the bid-rigging conspiracy, kickbacks in the form of inflated or unearned fees were paid by Campbell’s employer to CDR in exchange for assistance in controlling the bidding process and ensuring that certain co-conspirator providers won the bids they were allocated.
According to the court documents, Campbell also participated in a fraud conspiracy with CDR from at least as early as 1998 until approximately September 2005. As part of this conspiracy, CDR gave Campbell information about the prices, price levels or conditions in competitors’ bids, a practice known as a “last look,” which is explicitly prohibited by U.S. Treasury regulations. In exchange for the information, Campbell’s employer paid kickbacks to CDR. Campbell also submitted intentionally losing bids to CDR for certain investment agreements to make it appear that his employer had competed for those agreement s or contracts, when in fact, it had not. As a result of the bid manipulation, Campbell’s employer won investment agreements and other municipal finance contracts at artificially determined price levels, which deprived municipal issuers of money and property.
The court documents also charge that Campbell and co-conspirators misrepresented to municipal issuers or their bond counsel that the bidding process was in compliance with U.S. Treasury regulations. This caused the municipal issuers to award investment agreements and other municipal finance contracts to providers that otherwise would not have been awarded the contracts if the issuers had true and accurate information regarding the bidding process. Such conduct caused municipal issuers to file inaccurate reports with the Internal Revenue Service (IRS) and thus placed the tax-exempt status of the underlying bonds in jeopardy.
The bid-rigging conspiracy for which Campbell is charged carries a maximum penalty of 10 years in prison and a $1 million fine. The fraud conspiracy for which Campbell is charged carries a maximum penalty of five years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The maximum fines for each of these offenses 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.
This is the seventh guilty plea to arise from an ongoing investigation into the municipal bonds industry, which is being conducted by the Antitrust Division’s New York Field Office, the FBI and IRS Criminal Investigation. The department is coordinating its investigation with the Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.
Three former employees of CDR have pleaded guilty to bid-rigging and fraud conspiracies in relation to the ongoing investigation. Three other individuals have pleaded guilty to charges related to the ongoing investigation. In addition, three former financial services executives were indicted on July 27, 2010, for participating in fraud schemes and conspiracies related to the bidding for investment agreements. In October 2009, CDR, two of its employees and one former employee were charged for participating in bid-rigging and fraud conspiracies and related crimes. The CDR trial is scheduled to begin Sept. 12, 2011.
Today’s guilty plea is 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 on 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 212-264-0390 or visit www.justice.gov/atr/contact/newcase.htm , or the FBI at 212-384-5000.
Federal Inmate Sentenced to 96 Months in Prison for Obstructing DOJ Office of the Inspector GeneralRead the Press Release
WASHINGTON - A federal inmate was sentenced today in Kansas City, Mo., to 96 months in prison for obstructing justice by making false statements and creating false evidence in connection with another criminal case in which the inmate was charged, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.
U.S. District Court Judge Dean Whipple also sentenced Margie P. Shephard, 46, to three years of supervised release following the prison term. In the underlying identity theft case in which she was charged, Shephard was sentenced to 24 months in prison to run consecutive to the obstruction sentence, 60 months in prison to run concurrent with the obstruction sentence and three years of supervised release.
Shephard pleaded guilty on Feb. 23, 2010, in the Western District of Missouri to one count of endeavoring to obstruct the administration of justice in connection with the identity theft prosecution of her. Shephard previously pleaded guilty to one count of conspiracy to commit identity theft and one count of aggravated identity theft. At the time of the obstruction offense, Shephard was in federal custody and awaiting trial on the identity theft charges, which were brought by the U.S. Attorney’s Office for the Western District of Missouri.
According to court documents, Shephard admitted that from June 29, 2007, to Aug. 7, 2007, she operated a scheme to manufacture counterfeit payroll checks in the names of identity theft victims, and pass the checks in order to obtain money. According to the plea agreement, Shephard admitted that from approximately April 2009 to January 2010, she gave false statements and provided physical evidence to the Department of Justice Office of the Inspector General (DOJ-OIG), falsely alleging that a federal government employee was engaged in an identity theft scheme. Shephard admitted she provided this false evidence to the DOJ-OIG in an attempt to persuade the U.S. Attorney’s Office to request a reduction in her prison sentence in the pending conspiracy and identity theft case.
Shephard’s actions caused the recusal of the U.S. Attorney’s Office from the investigation of her false allegations, the continuance of the underlying criminal case against her while the allegations were investigated, and the use of substantial OIG resources in investigating her claims. Shephard admitted she continued to provide false statements and physical evidence that she knew was being provided to a grand jury and to the court, as well as attempted to convince others to manufacture false evidence to support her allegations. Ultimately, the government determined that her allegations about an identity theft scheme involving a federal government employee were not true.
The obstruction case was prosecuted by Senior Trial Attorney Richard C. Pilger of the Criminal Division’s Public Integrity Section, and was investigated by the DOJ-OIG. The underlying conspiracy and identity theft case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson of the Western District of Missouri, and was investigated by the U.S. Postal Inspection Service and local law enforcement authorities.
California Man Sentenced for Hate Crime and Mail FraudRead the Press Release
SACRAMENTO, Calif. – Eric Clawson, 28, of San Francisco, was sentenced today by U.S. District Court Judge Morrison C. England, Jr., for depriving the civil rights of an African-American man when he assaulted the victim in a bar. During the same proceeding, Clawson pleaded guilty in an unrelated case to one count of mail fraud. Judge England sentenced the defendant to a combined term of 37 months imprisonment and three years of supervised release. The defendant was also ordered to pay restitution in the amount of $92,804 for the mail fraud conviction.
On March 24, 2010, following a three-day trial, a federal jury convicted Clawson of the federal hate crime charge. The evidence at trial showed that on the evening of July 6, 2008, Clawson entered Riley’s Bar & Grill in Chico, Calif., and used a racially-derogatory term to object to the presence of the victim, who was a complete stranger to the defendant. Clawson repeated this slur several times before approaching the victim and punching him in the face without any provocation. The assault rendered the victim unconscious and inflicted injuries to his face and mouth. A second defendant and associate of Clawson, Joe Grivette, who was with Clawson when the assault took place, previously pleaded guilty on March 15, 2010, to a related charge of misprision of a felony.
"Racial violence is offensive to our nation’s fundamental values," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department is committed to vigorously prosecuting the federal laws prohibiting violent acts motivated by hate."
With respect to the mail fraud charge, Clawson fraudulently purchased two properties in Chico in 2007. Clawson knowingly signed loan applications that contained false employment histories and inflated income. He also falsely claimed he would occupy the second property as his primary residence. Falsified documents were submitted to lenders in order to obtain the loans.
"The defendant’s unprovoked racial attack on a fellow citizen who was patronizing a commercial establishment is precisely the sort of crime that the federal civil rights laws were intended to cover," said U.S. Attorney for the Eastern District of California Benjamin B. Wagner. "Prosecuting hate crimes and mortgage fraud are two priorities of this U.S. Attorney’s Office. That we were able, in a single proceeding, to hold a defendant accountable for both types of offenses indicates that our focus on these crimes is yielding results."
This case was prosecuted by Assistant U.S. Attorney Russell Carlberg of the U.S. Attorney’s Office for the Eastern District of California and Trial Attorney Edward Chung of the Civil Rights Division. The case was investigated by FBI Special Agent Mark Roberts and officers of the Butte County Sheriff’s Department and the Chico Police Department.
Wednesday 8 September 2010
Indiana Man Sentenced to Six Years in Prison for Child Pornography OffensesRead the Press Release
WASHINGTON - Jason Jewell, 31, of Frankfort, Ind., was sentenced today to six years in prison and a lifetime of supervised release for possession and transportation of child pornography, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Timothy M. Morrison of the Southern District of Indiana.
Jewell was sentenced by U.S. District Court Judge William T. Lawrence in the Southern District of Indiana. Before being sentenced by the court, Jewell entered a guilty plea to a two-count criminal information charging him with transportation and possession of child pornography.
According to court documents, in June 2009, an undercover agent using a peer to peer file sharing program was able to download child pornography images and videos directly from Jewell’s computer. A search warrant was subsequently executed and thousands of child pornography images and hundreds of child pornography video files were found on Jewell’s computer. Jewell admitted to law enforcement officers that he actively distributed and received the files using the peer to peer program.
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 via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov .
The case was prosecuted by Trial Attorney Mi Yung Park of CEOS and Assistant U.S. Attorney Steven D. DeBrota of the Southern District of Indiana. The case was investigated by the FBI.
Former Agent of Financial Products and Services Company Pleads Guilty for Role in Fraud Conspiracies Involving Proceeds of Municipal BondsRead the Press Release
A former agent of a financial products and services company pleaded guilty today for his participation in fraud conspiracies related to contracts for the investment of municipal bond proceeds and other municipal finance contracts, the Department of Justice announced.
According to plea proceedings today in U.S. District Court in New York City, Adrian Scott-Jones, a resident of Morriston, Fla., pleaded guilty to participating in two separate fraud conspiracies with companies that provide a type of contract, known as an investment agreement, to public entities throughout the United States, such as state, county and local governments and agencies. These public entities were seeking to invest money from a variety of sources, primarily the proceeds of municipal bonds that they issued to raise money for, among other things, public projects. Scott-Jones also pleaded guilty to one count of wire fraud. According to the plea agreement, Scott-Jones has agreed to cooperate with the ongoing investigation.
The department said in court documents that Scott-Jones’ former company, located in North Palm Beach and Ocala, Fla., marketed financial products and services, including services as a broker or advisor to various public entities that issue municipal bonds. Public entities typically hire a broker to conduct a competitive bidding process for the award of investment agreements. Major financial institutions, including banks, investment banks, insurance companies and financial services companies, are among the providers of investment agreements and other related municipal finance contracts. Competitive bidding for these agreements is the subject of regulations issued by the U.S. Department of the Treasury and is related to the tax-exempt status of the bonds.
According to court documents, Scott-Jones participated in one fraud conspiracy from as early as September 2001 until at least November 2006, and in a second fraud conspiracy from as early as August 1999 until at least November 2006. In each conspiracy, Scott-Jones gave co-conspirator providers information about the prices, price levels or conditions in competitors’ bids, a practice known as a "last look," which is explicitly prohibited by U.S. Treasury regulations. Scott-Jones also solicited and received intentionally losing bids for certain investment agreements and other municipal finance contracts. As a result of the bid manipulation, the co-conspirator providers won contracts at artificially determined price levels, which deprived municipal issuers of money and property.
The court documents also charge that Scott-Jones and co-conspirators misrepresented to municipal issuers or their bond counsel that the bidding process was in compliance with U.S. Treasury regulations. This caused the municipal issuers to award investment agreements and other municipal finance contracts to providers that otherwise would not have been awarded the contracts if the issuers had true and accurate information regarding the bidding process. Such conduct caused municipal issuers to file inaccurate reports with the Internal Revenue Service (IRS) and thus placed the tax-exempt status of the underlying bonds in jeopardy.
Each of the fraud conspiracies for which Scott-Jones is charged carries a maximum penalty of five years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine. The maximum fines for each of these offenses 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.
This is the sixth guilty plea to arise from an ongoing investigation into the municipal bonds industry, which is being conducted by the Antitrust Division’s New York Field Office, the FBI and IRS Criminal Investigation. The department is coordinating its investigation with the Securities and Exchange Commission, the Office of the Comptroller of the Currency and the Federal Reserve Bank of New York.
Three former employees of Rubin/Chambers, Dunhill Insurance Services Inc., also known as CDR Financial Products, a Beverly Hills, Calif.-based financial products and services firm that acted as a broker of investment agreements and other municipal finance agreements, have pleaded guilty to bid-rigging and fraud conspiracies in relation to the ongoing investigation. Two other individuals have also pleaded guilty to charges related to the ongoing investigation.
As a result of the ongoing investigation, three former financial services executives were indicted on July 27, 2010, for participating in fraud schemes and conspiracies related to the bidding for investment agreements. In addition, CDR, two of its employees and one former employee were charged in October 2009 for participating in bid-rigging and fraud conspiracies and related crimes. The CDR trial is scheduled to begin on Sept. 12, 2011.
Today’s guilty plea is 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 on 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 212-264-0390 or visit www.justice.gov/atr/contact/newcase.htm, or the FBI at 212-384-5000.
Tuesday 7 September 2010
Justice Department Reaches Settlement with Eastman, Georgia, Public Housing Authority Regarding Race Discrimination in Housing PracticesRead the Press Release
WASHINGTON – The Justice Department today announced that the Housing Authority for the city of Eastman, Ga., (EHA) has agreed to pay up to $320,000 to resolve allegations that it engaged in a pattern or practice of discriminating against applicants for housing and tenants based on race. The EHA is a public housing authority that provides housing for persons of low income in Dodge County, Ga. The EHA owns and maintains eight housing complexes in the city of Eastman and the neighboring town of Rhine, Ga.
The settlement was filed today in the U.S. District Court in Dublin, Ga., in conjunction with a complaint made by the Justice Department under the Fair Housing Act. The complaint alleges that the EHA maintained racially segregated housing by assigning applicants to vacant units based on race, rather than in order of their placement on the EHA’s waiting list. The complaint also alleges that the EHA subjected African-American tenants to inferior terms and conditions of rental.
"Our nation’s laws have long prohibited housing discrimination based on race. Individuals who seek public housing assistance have the right to know that they will not be treated to in a discriminatory fashion when they do so," said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. "The department will continue its vigorous enforcement of the Fair Housing Act."
"Every citizen’s fundamental right to access to fair housing is one of the cornerstones of American society" said U.S. Attorney for the Southern District of Georgia Edward J. Tarver. "Public housing officials must ensure that all citizens are treated in a fair and equitable manner without regard to race or any other prohibited factor."
Upon court approval, the settlement, which is in the form of a consent decree, will require the EHA to implement nondiscriminatory policies and procedures to ensure compliance with the Fair Housing Act and to ensure that EHA housing units are made available for rent on an equal basis and on the same terms and conditions for all persons, irrespective of race. The EHA will also provide training to employees responsible for making housing decisions on the nondiscriminatory policies and procedures, the consent decree, and the Fair Housing Act.
In addition, the EHA will establish a $320,000 fund to compensate individuals who suffered damages as a result of the EHA’s conduct.
The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.usdoj.gov/crt Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Cisco Systems and Westcon Group North America Pay $48 Million to Settle False Claims Act AllegationsRead the Press Release
WASHINGTON -- Cisco Systems and Westcon Group North America (formerly d.b.a. Comstor) have agreed to pay the United States $48 million to settle claims that they made misrepresentations to the General Services Administration (GSA) and other federal agencies in violation of the False Claims Act, the Justice Department announced today.
Today's civil settlement resolves the United States' assertions that Cisco and Westcon knowingly provided incomplete information to GSA contracting officers during negotiations in regard to Westcon's contract with the GSA, which resulted in defective pricing of Cisco products and submission of false claims to the United States.
"Contractors that do business with the United States must deal fairly with federal agencies," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "When contractors provide incomplete and untruthful information to the government, we will take action to restore the integrity of the procurement process and protect taxpayer dollars."
"This district has been aggressively pursuing cases involving defective pricing by contractors," said Jane W. Duke, U.S. Attorney for the Eastern District of Arkansas. "The prices paid by government agencies for commercial products are ultimately borne by the taxpayers, and the producers and sellers of those products must be held accountable for any questionable practices."
As a part of this settlement, the United States has agreed to dismiss a whistleblower lawsuit filed in 2004 in the United States District Court for the Eastern District of Arkansas, United States ex rel. Rille. v. Cisco Systems, Inc.
"Overcharging the government results in waste of taxpayer dollars," said Brian D. Miller, GSA Inspector General. "Our auditors and special agents keep vigilant watch to ensure contractors stay honest."
The investigation and settlement of this matter were jointly handled by the Justice Department's Civil Division and the Office of the U.S. Attorney for the Eastern District of Arkansas, with assistance from the GSA's Office of Inspector General, the Department of Energy's Office of Inspector General, the Defense Criminal Investigative Service and the Defense Contract Audit Agency.
Thursday 2 September 2010
Six People Charged in Human Trafficking Conspiracy for Exploiting 400 Thai Farm WorkersRead the Press Release
WASHINGTON – The Justice Department announced that a federal grand jury in Honolulu indicted Mordechai Orian, an Israeli national; Pranee Tubchumpol, Shane Germann and Sam Wongsesanit of Global Horizons Manpower Inc., located in Los Angeles; and Thai labor recruiters Ratawan Chunharutai and Podjanee Sinchai for engaging in a conspiracy to commit forced labor and document servitude. The charges arise from the defendants’ alleged scheme to coerce the labor and services of approximately 400 Thai nationals brought by the defendants to the United States from Thailand from May 2004 through September 2005 to work on farms across the country under the U.S. federal agricultural guest worker program. Orian, Tubchumpol and Chunharutai are also charged with three substantive counts of compelling the labor of three Thai guest workers.
If convicted, Orian and Tubchumpol each face maximum sentences of 70 years in prison, Chunharutai faces a maximum sentence of 65 years in prison, Germann and Wongsesanit each face a maximum sentence of 10 years in prison, and Sinchai, who was recently charged in Thailand with multiple counts of recruitment fraud, faces a maximum sentence of five years in prison if convicted in the United States.
The indictment alleges that the defendants conspired and devised a scheme to obtain the labor of approximately 400 Thai nationals by enticing them to come to the United States with false promises of lucrative jobs, and then maintaining their labor at farms in Washington and Hawaii through threats of serious economic harm. The defendants arranged for the Thai workers to pay high recruitment fees, which were financed by debts secured with the workers’ family property and homes. Significant portions of these fees went to the defendants themselves. After arrival in the United States, the defendants confiscated the Thai nationals’ passports and failed to honor the employment contracts. The defendants maintained the Thai nationals’ labor by threatening to send them back to Thailand, knowing they would face serious economic harms created by the debts.
The indictment also alleges that the defendants confined a group of Thai guest workers at Maui Pineapple Farm and demanded an additional fee of $3,750 to keep their jobs with Global Horizons. Those workers who refused to pay the additional fee were sent back home to Thailand with unpaid debts, subjecting them to the high risk of losing their family homes and land.
This case has been investigated by the Honolulu Division of the FBI. This case is being prosecuted by trial attorneys Susan French and Kevonne Small of the Criminal Section of the Civil Rights Division and Susan Cushman of the U.S. Attorney’s Office in the District of Hawaii. Services to victims have been provided by the Thai Community Development Center in Los Angeles.
The charges, in a five-count indictment, are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Polar Air Cargo LLC Agrees to Plead Guilty to Price Fixing on Air Cargo ShipmentsRead the Press Release
WASHINGTON — Polar Air Cargo LLC has agreed to plead guilty and to pay a $17.4 million criminal fine for its role in a conspiracy to fix prices in the air transportation industry, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court for the District of Columbia, Polar Air Cargo LLC’s co-conspirators engaged in a conspiracy to fix the cargo rates charged to certain customers for international air cargo shipments between the United States and Australia from at least as early as Jan. 1, 2000, and continuing until at least Feb. 14, 2006. Polar Air Cargo LLC, an American airline based in Long Beach, Calif., joined and participated in the conspiracy from at least as early as Jan. 1, 2000, until April 30, 2003. Under the plea agreement, which is subject to court approval, Polar Air Cargo LLC has agreed to cooperate with the department’s ongoing antitrust investigation.
Air cargo carriers transport a variety of cargo shipments, such as heavy equipment, perishable commodities and consumer goods, on scheduled international flights.
According to the charge, Polar Air Cargo LLC carried out the conspiracy by agreeing during meetings, conversations and communications on certain components of cargo rates for shipments between the United States and Australia and by levying cargo rates in accordance with the agreements reached. As a part of the conspiracy, Polar Air Cargo LLC monitored and enforced adherence to the agreed-upon rates.
Polar Air Cargo LLC is charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $10 million for corporations for offenses committed before June 22, 2004. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today’s charge, as a result of this investigation, a total of 17 airlines have been charged in the Justice Department’s ongoing investigation into price fixing in the air transportation industry. To date, more than $1.6 billion in criminal fines have been imposed and four executives have been sentenced to serve prison time. Charges are pending against three other executives.
The airlines that have pleaded guilty, as a result of the department’s investigation into the air transportation industry are: British Airways Plc, Korean Air Lines Co. Ltd., Qantas Airways Limited, Japan Airlines International Co. Ltd., Martinair Holland N.V., Cathay Pacific Airways Limited, SAS Cargo Group A/S, Société Air France, Koninklijke Luchtvaart Maatschappij N.V. (KLM Royal Dutch Airlines), EL AL Israel Airlines Ltd., LAN Cargo S.A., Aerolinhas Brasileiras S.A., Cargolux Airlines International S.A., Nippon Cargo Airlines Co. Ltd., Northwest Airlines LLC and Asiana Airlines Inc. Airline executives who have pleaded guilty as a result of the investigation are Bruce McCaffrey of Qantas, Keith Packer of British Airways, Franciscus Johannes de Jong of Martinair and Timothy Pfeil of SAS. On Aug. 12, 2009, Jan Lillieborg, a citizen and resident of Sweden and former vice president of global sales for SAS Cargo, was indicted for participating in a conspiracy to suppress and eliminate competition by allocating customers and coordinating surcharge increases for international air shipments to and from the United States. On Aug. 26, 2010, Joo Ahn Kang, former president of Asiana, and Chung Sik Kwak, former vice president of the Americas region of Asiana, both citizens and residents of the Republic of Korea, were indicted for participating in a conspiracy to suppress and eliminate competition by fixing passenger airfares for travel between the United States and Korea.
Today’s charge is the result of a joint investigation into the air transportation industry being conducted by the Antitrust Division’s National Criminal Enforcement Section, the FBI’s Washington Field Office, the Department of Transportation’s Office of Inspector General and the U.S. Postal Service’s Office of Inspector General. Anyone with information concerning price fixing or other anticompetitive conduct in the air transportation industry is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.htm or call the FBI’s Washington Field Office at 202-278-2000.
Líder de Reyes Latinos sentenciado a 228 meses de prisión por conspiración para cometer delitos organizadosRead the Press Release
WASHINGTON - El Juez Federal de Distrito Alexander Williams Jr. sentenció hoy a Andrés Echevarria, alias "B-Boy" y "King B-Boy," 23, de Brooklyn, N.Y., a 228 meses de prisión, seguidos de cinco años de libertad bajo supervisión, por conspirar para participar en una empresa de delincuencia organizada en conexión con sus actividades pandilleras como miembro de la pandilla "Nación Todopoderosa de Reyes y Reinas Latinos".
El 27 de agosto de 2010, Miguel Castillo, 23, de Rockville, Md., otro miembro de los Reyes Latinos, se declaró culpable de su papel en la empresa de delincuencia organizada, que incluyó el robo a mano armada a un narcotraficante y usar bombas explosivas en una residencia.
La sentencia y declaración de culpabilidad fueron anunciadas por el Secretario de Justicia Auxiliar Lanny A. Breuer de la División Criminal; el Fiscal Federal para el Distrito de Maryland Rod J. Rosenstein; la Agente Especial a Cargo Theresa Stoop de la División Local en Baltimore del Buró de Alcohol, Tabaco, Armas de Fuego y Explosivos [Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF)]; el Jefe J. Thomas Manger del Departamento de Policía del Condado de Montgomery, Md.; el Fiscal Estatal del Condado de Montgomery John McCarthy; el Jefe Roberto L. Hylton del Departamento de Policía del Condado de Prince George; el Fiscal Estatal del Condado de Prince George Glenn F. Ivey; y el Comisionado de Policía de la Ciudad de Nueva York Raymond W. Kelly.
"La violencia coordinada y organizada es una de las características distintivas de las pandillas contra las que luchamos", dijo el Fiscal Federal Auxiliar Lanny A. Breuer de la División Criminal. "Cócteles molotov, robos a mano armada y otros medios violentos de intimidación y coerción son el modus operandi de estas pandillas, y Andrés Echevarria y sus codemandados tomaron un camino violento que los terminó llevando a prisión. A través de nuestra labor coordinada con la Fiscalía Federal y nuestros asociados de las fuerzas del orden público, estamos recuperando nuestros vecindarios de manos de estas pandillas".
"Este caso perturbador demuestra que ser miembro de una pandilla lleva a ardides criminales organizados y actos de violencia sin sentido", dijo el Fiscal Federal Rod J. Rosenstein. "La Fuerza de Tarea Regional de Control Antipandillas [Regional Anti-Gang Enforcement (RAGE)] liderada por la ATF ha probado ser muy valiosa en la lucha contra pandillas violentas".
Según los acuerdos de declaración de culpabilidad de Echevarria y Castillo, Reyes Latinos es una pandilla callejera violenta con miles de miembros en todos los Estados Unidos y el extranjero. Los Reyes Latinos tienen una estructura organizativa detallada y uniforme que se detalla – junto con diversas "oraciones", códigos de conducta y rituales – en un "manifiesto" escrito distribuido comúnmente a miembros de todo el país. Los miembros de los Reyes Latinos también reciben tradicionalmente "nombres de King" o "nombres de Queen", que son nombres distintos a sus nombres legales por los cuales son conocidos por otros miembros de la pandilla y terceros en la calle. A nivel local, los grupos de Reyes Latinos se organizan en "tribus", entre ellas Royal Lion Tribe, MOG, Sun Tribe y UTL.
Según su acuerdo de declaración de culpabilidad, Echevarria se convirtió en miembro de la Tribu Tiger en Brooklyn en la primavera de 2008 y luego pasó a ser miembro de las tribus Murda Maya y TBF en Brooklyn y también la Tribu MOG en Maryland. Echevarria admitió haber tenido puestos de liderazgo en los Reyes Latinos, entre ellos el puesto de Tercera Corona/ejecutor en la tribu MOG en el otoño de 2008 y en la tribu Murda Maya a fines del verano de 2009.
Echevarria admitió que como parte de sus actividades pandilleras, intentó asesinar a una persona en Wheaton, Md., el 1 de noviembre de 2008 después de que la persona hiciera un comentario despectivo sobre los Reyes Latinos en una fiesta en la que estaban presentes muchos miembros y asociados de los Reyes Latinos. Además, el 23 de mayo de 2009, Echevarria y otros miembros de Reyes Latinos se pelearon con miembros de una pandilla rival en Brooklyn y luego Echevarria le disparó con un arma a uno de los miembros de pandillas rivales. La bala no impactó a esa persona, sino a otra, y le provocó una abrasión en la espalda.
Según la declaración de los hechos, durante el verano de 2009, Echevarria y otros miembros de la pandilla planearon robar a un titular federal de armas de fuego [federal firearms licensee (FFL)] en Frederick, Md., después de enterarse de que el FFL estaba recibiendo una gran cantidad de armas de fuego. Echevarria y los demás miembros de la pandilla planeaban robar las armas y venderlas para obtener ganancias, pero cuando se estaban preparando para robar al FFL, vieron a una importante cantidad de personal militar cerca del FFL y abortaron su misión. Además, también según la declaración de los hechos, en el verano de 2009, Echevarria y otros miembros de Reyes Latinos llevaron a cabo el robo armado de un narcotraficante en los condados de Frederick y Montgomery, Md., en la cual Echevarria le apuntó con un arma a la cabeza del narcotraficante.
Según su acuerdo de declaración de culpabilidad, en 2007, Castillo se unió a la Tribu Royal Lion de los Reyes Latinos. A fines del verano o el otoño de 2007, Castillo y otros miembros de los Reyes Latinos, entre ellos Francisco Ortiz, planificaron y llevaron a cabo el robo a mano armada a un narcotraficante en los condominios Marylander en Langley Park, Md., dirigidos por el Inca/Primera Corona. Castillo admitió que, después de que uno de los Reyes Latinos llamó a la puerta, él, Ortiz y otro asociado de los Reyes Latinos entraron al apartamento por la fuerza, todos portando armas. Una vez que entraron, el narcotraficante y su hija pequeña fueron retenidos en el dormitorio amenazados a punta de pistola mientras los demás Reyes Latinos registraban la residencia y robaban algunas bolsas de cocaína en polvo.
Castillo también admitió que el 8 de enero de 2008, siguiendo las indicaciones del Inca/Primera Corona, él y dos otras personas planificaron y llevaron a cabo el uso de bombas explosivas contra una residencia en el Condado de Montgomery. Castillo y sus codemandados armaron dos cócteles molotov y condujeron hasta la residencia en la cuadra 13000 de Parkland Drive en el área de Rockville - Aspen Hill, Md. Esperaron del otro lado de la calle hasta que los residentes que se encontraban en el interior de la casa apagaran las luces y aproximadamente a las 4 a.m., encendieron y lanzaron las bombas molotov a la casa. Al menos una de ellas estalló contra la casa y se prendió fuego. Las víctimas en el interior de la casa se despertaron con la explosión, vieron un incendio en el exterior de la residencia y llamaron al 911. Los cócteles molotov se apagaron solos y nadie resultó herido. El 10 de octubre de 2008, Castillo se declaró culpable de posesión de dispositivos destructivos (los cócteles molotov).
Castillo enfrenta una sentencia máxima de cadena perpetua. La lectura de la sentencia está programada para el 17 de noviembre de 2010 a las 9:30 a.m. Castillo permanece detenido.
Los codemandados Miguel Cruz, alias "Skibee" y "King Skibee", 45, de Bronx, N.Y., uno de los fundadores de la tribu Maryland de los Reyes Latinos; Nelson Santos, alias "Nelly" y "King Nelly", 27, de Silver Spring, Md.; y Francisco Ortiz, alias "Francis Gabriel Ortiz", "Pone" y "King Pone", 26, de Rockville, se declararon culpables con anterioridad a conspiración para cometer delincuencia organizada en conexión con sus actividades pandilleras y serán sentenciados el 16 de septiembre de 2010, el 22 de octubre de 2010 y el 1 de diciembre de 2010 respectivamente, todos a las 9:30 a.m.
Los casos están siendo investigados por la División Local en Baltimore del ATF; el Departamento de Policía del Condado de Montgomery; la Fiscalía Estatal del Condado de Montgomery; el Departamento de Policía del Condado de Prince George; la Fiscalía Estatal del Condado de Prince George; y el Departamento de Policía de la Ciudad de Nueva York. Se recibió asistencia adicional por parte del Departamento de Policía de Gaithersburg, Md.; la Oficina del Alguacil del Condado de Montgomery; la Policía de Parques Nacionales de Maryland de la División del Condado de Prince George; la Policía Estatal de Maryland; el Servicio Secreto de los EE.UU.; la División de Investigaciones Criminales de Servicios de Impuestos Internos; y el Servicio de Inmigración y Control de Aduanas de los EE.UU.
Están a cargo de la acusación en los casos los Fiscales Federales Auxiliares Emily Glatfelter y David Salem, y la Abogada Litigante Lara M. Peirce de la Unidad Antipandillas de la División Criminal.
Latin Kings Leader Sentenced to 228 Months in Prison for Racketeering ConspiracyRead the Press Release
WASHINGTON - U.S. District Court Judge Alexander Williams Jr. sentenced Andres Echevarria, aka "B-Boy" and "King B-Boy," 23, of Brooklyn, N.Y., today to 228 months in prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise, in connection with his gang activities as a member of the Almighty Latin King and Queen Nation (Latin Kings).
On Aug. 27, 2010, Miguel Castillo, 23, of Rockville, Md., another member of the Latin Kings, pleaded guilty to his role in the racketeering enterprise, including the armed robbery of a drug dealer and the firebombing of a residence.
The sentence and guilty plea were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Theresa Stoop of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County, Md., Police Department; Montgomery County State’s Attorney John McCarthy; Chief Roberto L. Hylton of the Prince George’s County, Md., Police Department; Prince George’s County State’s Attorney Glenn Ivey; and New York City Police Commissioner Raymond W. Kelly.
"Coordinated, organized violence is a hallmark of the gangs we are fighting," said Assistant Attorney General Lanny A. Breuer of the Criminal Division. "Molotov cocktails, armed robberies, and other violent means of intimidation and coercion are how these gangs operate, and Andres Echevarria and his co-defendants scorched a violent path that has ultimately led to prison. Through our coordinated work with the U.S. Attorney’s Office and our law enforcement partners, we are taking back our neighborhoods from these gangs."
"This disturbing case demonstrates that gang membership leads to both organized criminal schemes and senseless acts of violence," said U.S. Attorney Rod J. Rosenstein. "The ATF-led RAGE task force has proven its value in pursuing violent gangs."
According to Echevarria and Castillo’s plea agreements, the Latin Kings is a violent street gang with thousands of members across the country and overseas. The Latin Kings have a detailed and uniform organizational structure, which is outlined – along with various "prayers," codes of behavior and rituals – in a written "manifesto" widely distributed to members throughout the country. Members of the Latin Kings are also traditionally given "King Names" or "Queen Names," which are names other than their legal names by which they are known to members of the gang and to others on the street. At the local level, groups of Latin Kings are organized into "tribes," including the Royal Lion Tribe, MOG, Sun Tribe and UTL.
According to Echevarria’s plea agreement, he became a member of the Tiger Tribe in Brooklyn in the spring of 2008 and later became a member of the Murda Maya and TBF Tribes in Brooklyn as well as the MOG Tribe in Maryland. Echevarria admitted that he held leadership positions in the Latin Kings, including the Third Crown/enforcer position for the MOG Tribe in the fall of 2008, and for the Murda Maya Tribe at the end of the summer of 2009.
Echevarria admitted that as part of his gang activities, he attempted to murder an individual in Wheaton, Md., on Nov. 1, 2008, after that individual made a disparaging remark about the Latin Kings while attending a party at which many Latin King members and associates were present. In addition, on May 23, 2009, after Echevarria and other Latin King members got into an argument with members of a rival gang in Brooklyn, Echevarria fired a gun at one of the rival gang members. The bullet missed the rival gang member, but hit another person, causing an abrasion on that person’s back.
According to the statement of facts, during the summer of 2009, Echevarria and other gang members also planned to rob a federal firearms licensee (FFL) in Frederick, Md., after learning that the FFL was receiving a large quantity of firearms. Echevarria and the other gang members planned to steal the guns and sell them for a profit, but as they were preparing to rob the FFL, they saw a significant number of military personnel near the FFL and abandoned the mission. Also according to the statement of facts, in the summer of 2009, Echevarria and other Latin King members carried out the armed robbery of a drug dealer in Frederick and Montgomery Counties, during which Echevarria pointed a gun at the drug dealer’s head.
According to Castillo’s plea agreement, in 2007, Castillo joined the Royal Lion Tribe of the Latin Kings. In the late summer or fall of 2007, Castillo and other Latin King members, including Francisco Ortiz, planned and carried out the armed robbery of a drug dealer at the Marylander Condominiums in Langley Park, Md., at the direction of the Inca/First Crown. Castillo admitted that, after one of the Latin Kings knocked on the door, he, Ortiz and another Latin King associate forced their way into the apartment, each carrying a gun. Once inside, the dealer and his young daughter were held at gunpoint in the bedroom while the Latin Kings searched the residence, eventually stealing a few bags of powder cocaine.
Castillo also admitted that on Jan. 8, 2008, at the direction of the Inca/First Crown, he and two others planned and carried out the firebombing of a residence in Montgomery County. Castillo and his co-defendants assembled two Molotov cocktails and drove to the residence in the 13000 block of Parkland Drive in the Rockville - Aspen Hill, Md., area. They waited across the street until the residents inside the house turned off the lights and at approximately 4:00 a.m., the two Molotov cocktails were lit and thrown at house. At least one struck the house and caught fire. The victims in the house were awakened by the explosion, saw a fire outside the house and called 911. The Molotov cocktails self-extinguished and no one was injured. On Oct. 10, 2008, Castillo pleaded guilty to possession of destructive devices (the Molotov cocktails.)
Castillo faces a maximum sentence of life in prison. Sentencing is scheduled for Nov. 17, 2010, at 9:30 a.m. Castillo remains detained.
Co-defendants Miguel Cruz, aka "Skibee" and "King Skibee," 45, of Bronx, N.Y., one of the founders of the Maryland Tribe of the Latin Kings; Nelson Santos, aka "Nelly" and "King Nelly," 27, of Silver Spring, Md.; and Francisco Ortiz, aka "Francis Gabriel Ortis," "Pone," and "King Pone," 26, of Rockville, previously pleaded guilty to the racketeering conspiracy in connection with their gang activities and are scheduled to be sentenced on Sept. 16, 2010, Oct. 22, 2010, and Dec. 1, 2010, respectively, all at 9:30 a.m. All remain in federal custody.
The cases are being investigated by the ATF - Baltimore Field Division; Montgomery County Police Department; Montgomery County State’s Attorney’s Office; Prince George’s County Police Department; Prince George’s County State’s Attorney’s Office; and New York City Police Department. Additional assistance was provided by the Gaithersburg, Md., Police Department; the Montgomery County Sheriff’s Office, the Maryland National Capital Park Police - Prince George’s County Division; the Maryland State Police; the U.S. Secret Service; the Internal Revenue Service - Criminal Investigation; and U.S. Immigration and Customs Enforcement.
The cases are being prosecuted by Assistant U.S. Attorneys Emily Glatfelter and David Salem, and Trial Attorney Lara M. Peirce of the Criminal Division’s Gang Unit.
Justice Department Files Lawsuit Against Maricopa County Sheriff’s Office for Refusing Full Cooperation with Title VI InvestigationRead the Press Release
WASHINGTON – The Justice Department filed a lawsuit today against the Maricopa County Sheriff’s Office (MCSO), Maricopa County, and Maricopa County Sheriff Joe Arpaio for refusing full cooperation with the department’s investigation of alleged national origin discrimination in violation of Title VI of the Civil Rights Act of 1964. Title VI prohibits discrimination in programs that receive federal funds, and also requires grant recipients to cooperate with investigations of discrimination by providing access to documents, facilities and staff. MCSO signed contractual assurance agreements as a condition of receiving federal funds, and promised that it would cooperate with investigations of alleged discrimination.
The department filed today’s lawsuit after exhausting all cooperative measures to gain access to MCSO’s documents and facilities, as part of the department’s investigation of alleged discrimination in MCSO’s police practices and jail operations. Since March 2009, the department has attempted to secure voluntary compliance with the department’s investigation. MCSO’s refusal to cooperate with the investigation makes it an extreme outlier and the department is unaware of any other police department or sheriff’s office that has refused to cooperate in the last 30 years.
“The actions of the sheriff's office are unprecedented. It is unfortunate that the department was forced to resort to litigation to gain access to public documents and facilities,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
The department’s investigation of MCSO concerns alleged discrimination against Hispanics, in violation of the prohibition on national origin discrimination in Title VI; the pattern or practice provisions of the Omnibus Crime Control and Safe Streets Act of 1968; and the pattern or practice provisions of the Violent Crime Control and Law Enforcement Act of 1994. Title VI prohibits discrimination in federally assisted programs on the ground of race, color, or national origin.
The department’s investigation remains open and ongoing. For more information on the Justice Department’s Civil Rights Division, please visit www.justice.gov/crt.
United States of America v. Maricopa County, Arizona (PDF)
Hombre de Florida sentenciado a más de 21 años de prisión por operar ardid de cargos no autorizados mientras estaba presoRead the Press Release
WASHINGTON – Willoughby Farr, 46, de West Palm Beach, Fla., ha sido sentenciado a 262 meses de prisión y tres años de libertad bajo supervisión por perpetrar un “ardid de cargos no autorizados” creado para facturar cargos por llamadas de cobro revertido no realizadas en las facturas telefónicas de los clientes, anunciaron hoy el Departamento de Justicia y la Oficina Local en Miami del Inspector Postal Federal.
Según el expediente judicial, entre abril de 2003 y diciembre de 2005, Farr empleó tres empresas de West Palm Beach – Nationwide Connections Inc., Access One Communications Inc., and Connect One Communications Inc. – para defraudar a los consumidores. Mediante estas empresas, Farr logró que las empresas telefónicas facturaran cargos falsos por un total de aproximadamente $35 millones de dólares a los consumidores por llamadas con cobro revertido. Como los cargos generalmente aparecían en la última página de las facturas telefónica de los clientes, muchos los pagaban.
Farr se declaró culpable en mayo de 2010 de dos cargos de fraude postal relacionados con el ardid. Al declararse culpable, Farr admitió haber cometido los delitos mientras estaba encarcelado en la Cárcel del Condado de West Palm Beach. Por consiguiente, ocultó que era propietario de las tres empresas. También ocultó ser el propietario porque otras empresas le habían cortado la capacidad de facturar llamadas por reclamos de clientes y reguladores estatales lo habían demandado por facturación ilegítima.
“Cuando personas inescrupulosas y deshonestas se forren los bolsillos con dinero que es producto del trabajo de los clientes, los haremos responsables”, dijo Tony West, Secretario de Justicia Auxiliar de la División Civil del Departamento de Justicia. “Como demuestra esta sentencia, el Departamento de Justicia ha fijado como prioridad proteger al público de ardides fraudulentos. Este caso también debe servir como recordatorio para los clientes de revisar con detenimiento sus facturas telefónicas en busca de cargos no autorizados”.
En febrero de 2006, la Comisión Federal de Comercio [Federal Trade Commission (FTC)] entabló una demanda por cargos no autorizados contra distintas empresas y personas, entre ellas Farr. La demanda generó un fallo civil de $34,547,140 dólares contra Farr.
“El Servicio de Inspección Postal realizó una tarea excepcional en la investigación de este caso”, dijo Wifredo A. Ferrer, Fiscal Federal para el Distrito Sur de Florida. “La FTC descubrió este ardid y se lo señaló al Departamento de Justicia. El caso demuestra la eficacia de las iniciativas cooperativas de aplicación legal, que pueden poner fin a ardides fraudulentos y luego llevar a los delincuentes a la justicia”.
“Las personas como Farr se dedican a publicar cargos falsos en las cuentas de los clientes”, dijo el Inspector a Cargo Henry Gutiérrez. “El Servicio de Inspección Postal trabajará sin descanso con sus asociados de las fuerzas del orden público para impedir el uso fraudulento del servicio postal y proteger a los consumidores estadounidenses”.
La sentencia anunciada hoy fue resultado del trabajo en colaboración de la División Civil del Departamento de Justicia, la Fiscalía Federal del Distrito Sur de Florida, el Servicio de Inspección Postal de los EE.UU. y la Comisión Federal de Comercio.
Former U.S. Army Contracting Official Pleads Guilty to Making a False Statement to the U.S. ArmyRead the Press Release
WASHINGTON — A former U.S. Army contracting official based at Fort Carson, Colo., pleaded guilty to submitting a false statement to the U.S. Army, the Department of Justice announced today.
According to a one-count felony charge filed on July 15, 2010, in the U.S. District Court in Denver, William T. Armstrong, former chief of the construction division of the Fort Carson Directorate of Contracting, made a false statement in connection with a matter involving the U.S. Army Contracting Agency, an agency within the executive branch of the United States. The department said that Armstrong provided a false statement when he denied receiving reportable gifts on an annual confidential financial disclosure report submitted to the U.S. Army Contracting Agency.
According to court documents, on or about Jan. 24, 2008, Armstrong provided false information on the report, which he was required to submit yearly due to his position. Armstrong indicated on the form that he had not received any reportable gifts in the previous year when, in fact, Armstrong had received several thousand dollars worth of gifts from a construction contractor that had substantial business with the Fort Carson Directorate of Contracting, the department said.
Armstrong faces a maximum sentence of five years in prison and a $250,000 fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s plea is the first to arise from an ongoing investigation related to the award of construction contracts at Fort Carson, Colo. This investigation is being jointly conducted by the Department of Justice Antitrust Division’s Chicago Field Office, the U.S. Army Criminal Investigation Command and the Defense Criminal Investigative Service, with the assistance of the U.S. Attorney’s Office in Denver.
Anyone with information concerning suspicious activity relating to the award of construction contracts at Fort Carson, Colo., or other military bases should contact the Antitrust Division’s Chicago Field Office at 312-353-7530 or visit www.justice.gov/atr/contact/newcase.htm.
Armstrong Information
Former Tennessee Corrections Officers Sentenced for Civil Rights ViolationRead the Press Release
WASHINGTON— Harold Hutcheson, a former captain at the Northwest Correctional Complex (NCC), in Tiptonville, Tenn., and Joshua Ryan Jones and Roger Forrester, former officers at NCC, were sentenced today in federal court in Jackson, Tenn., for violating the civil rights of an inmate and then lying about it during the state and federal investigations. Hutcheson was sentenced to serve eight months in prison and two years of supervised release; Jones was sentenced to serve 10 months in prison and two years of supervised release; and Forrester was sentenced to serve 10 months in prison and two years of supervised release.
During their guilty plea, Hutcheson and Jones admitted that on April 15, 2008, while working as at NCC, they used unreasonable force when they repeatedly kicked a handcuffed inmate without provocation. Hutcheson and Jones agreed that their assault violated the inmate’s constitutional right to be free from cruel and unusual punishment by law enforcement officers. Additionally, Hutcheson and Jones admitted that they obstructed justice when he provided false information about the incident to federal investigators.
In his guilty plea, Forrester admitted that he used unreasonable force when he repeatedly punched a handcuffed inmate without provocation. Forrester agreed that his assault violated the inmate’s constitutional right to be free from cruel and unusual punishment by law enforcement officers. Additionally, Forrester admitted that he obstructed justice when he provided false information about the incident during the investigation by the Tennessee Department of Corrections.
“The power granted to correctional officers so that they can perform their critical public safety duties does not give them free rein to abuse the civil and constitutional rights of inmates under their supervision,” said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. “Those officers who abuse their power and the public trust in this way will be prosecuted to the fullest extent of the law.”
Today’s plea resulted from the investigative work of the FBI and the Department of Justice’s Civil Rights Division, Criminal Section. The case is being prosecuted by Civil Rights Division Trial Attorneys Jared Fishman and Chris Lomax.
Former Senior Employee with U.S. Military Contractor Pleads Guilty to Bribery Scheme Related to Contracts in Support of Iraq WarRead the Press Release
WASHINGTON - A former senior employee of a U.S. military contractor pleaded guilty today to conspiracy to pay $360,000 in bribes to U.S. Army contracting officials stationed at a U.S. military base in Kuwait, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.
According to court documents filed today in U.S. District Court for the Southern District of Texas, Dorothy Ellis, 53, of Texas City, Texas, was employed by former U.S. military contractor Terry Hall. As Hall’s most senior employee, Ellis’s responsibilities included serving as the liaison between Hall and U.S. Army contracting officials stationed at Camp Arifjan, a U.S. military base in Kuwait.
From the spring of 2004 through November 2007, Hall operated and had an interest in several companies, including Freedom Consulting and Catering Co. (FCC) and Total Government Allegiance (TGA). At various times during this period, these companies provided goods and services to the U.S. Department of Defense (DoD) and its components based on a blanket purchase agreement (BPA) to deliver bottled water and a contract to construct a security fence in Kuwait and elsewhere.A BPA is a type of contract by which the DoD agrees to pay a contractor a specified price for a particular good or service. Based on the BPA, the DoD orders the supplies on an as-needed basis. The contractor is then obligated to deliver the supplies ordered at the price agreed upon in the BPA. The term for such an order by the DoD is a “call.”
According to court documents, Hall obtained the calls made under the bottled water BPA and fence contract by bribing certain U.S. Army contracting officers, including former Majors James Momon and Christopher Murray. Hall, assisted by Ellis and Hall’s business partner, paid Momon approximately $330,000 and paid Murray approximately $30,000. In exchange for these bribe payments, from January 2006 through May 2006, Momon arranged for the DoD to pay Hall’s companies more than $6.4 million through the bottled water BPA, and Murray assisted in the award of the security fence contract.
Ellis admitted that she participated in the bribery scheme by providing Momon and Murray access to secret bank accounts established on their behalf in the Philippines, which enabled Hall and others to transfer bribe payments to them. Ellis also admitted that she obtained confidential Army contract pricing information from Momon that was designed to give Hall an unlawful advantage in the bidding process for an ice contract from the DoD. In exchange for her assistance in the bribery scheme, Ellis received a $100,000 “bonus” from Hall in August 2006.
The charge of bribery conspiracy carries a maximum prison sentence of five years and a $250,000 fine. Under the plea agreement, Ellis agreed to forfeit $360,000 to the government. Sentencing has been scheduled for Dec. 1, 2010, before U.S. District Court Judge David Hittner.
The case against Ellis arose out of an investigation into corruption at the Kuwait contracting office at Camp Arifjan, which has led to charges against 15 individuals, to date. Of those 15 defendants, 13 have pleaded guilty, with some already serving prison sentences. For example, on Dec. 2, 2009, former U.S. Army Major John Cockerham was sentenced to 210 months in prison and ordered to pay $9.6 million in restitution. On Aug. 13, 2009, Momon pleaded guilty to receiving approximately $1.6 million in bribes and agreed to pay $5.7 million in restitution. On Dec. 17, 2009, Murray was sentenced to 57 months in prison and ordered to pay $245,000 in restitution.
On Aug. 11, 2010, Wajdi Birjas, a former DoD contract employee, pleaded guilty to bribery conspiracy in connection with his payment of tens of thousands of dollars worth of bribes to Army contracting officers, including Murray, Momon and a senior procurement non-commissioned officer. Birjas also pleaded guilty to money laundering conspiracy arising out of his participation in a scheme to transport $250,000 of Momon’s bribe proceeds from Kuwait to the United States. His sentencing is scheduled for Jan. 7, 2011.
On Feb. 18, 2010, Hall pleaded guilty to bribery conspiracy and money laundering conspiracy and agreed to forfeit $15.7 million to the U.S. government in connection with his payment of more than $3 million in bribes to Cockerham, Momon, Murray and former U.S. Army Major Eddie Pressley. The case against Hall’s co-defendants, Eddie Pressley and his wife Eurica Pressley, is scheduled for trial Jan. 24, 2011, in Decatur, Ala.
The case is being prosecuted by Trial Attorneys Edward J. Loya, Jr. and Peter C. Sprung of the Criminal Division’s Public Integrity Section. The case is being investigated by special agents of the Defense Criminal Investigative Service, the Army Criminal Investigation Command Division, the FBI and the Special Inspector General for Iraq Reconstruction.
Today’s plea represents the Department of Justice’s commitment to protect U.S. taxpayers from procurement fraud through its creation of the National Procurement Fraud Task Force. The National Procurement Fraud Initiative announced in October 2006, is designed to promote early detection, identification, prevention and prosecution of procurement fraud associated with the increase in contracting activity for national security and other government programs. The investigation is ongoing.