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Monday 19 July 2010
Maryland Man Sentenced on Federal Sex Trafficking, Drug and Firearm ChargesRead the Press Release
WASHINGTON – Lloyd Mack Royal III, aka "Blyss," "B," and "Furious," 29, of Gaithersburg, Md., was sentenced today by U.S. District Judge Alexander Williams Jr. for his role in a sex trafficking operation, the Justice Department announced today. Royal was sentenced to 37 years in prison and 10 years supervised release.
On March 25, 2010, a jury convicted Royal of conspiracy to commit sex trafficking, three counts of sex trafficking, possession of a firearm in furtherance of a crime of violence, conspiracy to distribute controlled substances and two counts of distribution of controlled substances to persons under the age of 21.
"This defendant violently preyed upon some of the most vulnerable members of our society. He sought out troubled young girls and, using physical violence, drugs, guns and lies, coerced them into prostitution for his own benefit," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Department of Justice will continue to vigorously prosecute these cases."
"Maryland’s human trafficking task force follows a policy of zero tolerance for child prostitution," said U.S. Attorney Rod J. Rosenstein. "Anyone who promotes or profits from sex with children should understand that we are standing by to send them to federal prison."
Two co-defendants previously pleaded guilty in connection with the case.
In announcing the sentence, Assistant Attorney General Perez and U.S. Attorney Rosenstein commended the FBI and the Montgomery County Police Department for their work in this cooperative investigation and prosecution. Assistant U.S. Attorney Solette Magnelli and Civil Rights Division Human Trafficking Prosecution Unit Trial Attorney Jim Felte prosecuted this case for the government.
Justice Department Reaches Settlement with Blockbuster Inc. Under the Americans with Disabilities ActRead the Press Release
WASHINGTON – The Justice Department today announced a settlement agreement under the Americans with Disabilities Act (ADA) with Blockbuster Inc. to ensure equal access to its stores nationwide for individuals with disabilities who use service animals.
The settlement agreement, which resolves a complaint filed under title III of the ADA by an individual with a disability, requires, among other things, that Blockbuster provide comprehensive training to employees at more than 3,000 retail stores throughout the United States to ensure individuals with disabilities who use service animals have full and equal enjoyment of its goods, services and facilities.
“The Americans with Disabilities Act guarantees equal access to individuals with disabilities who are accompanied by service animals, but too often those individuals are subject to discrimination because of misperceptions or a lack of understanding of the law,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
The agreement, which will remain in effect for three years, requires that Blockbuster:
- Implement a comprehensive nationwide nondiscrimination policy regarding service animals for people with disabilities;
- Distribute the policy and train employees across the United States on the rights of service animal users and employee obligations to ensure full and equal access to Blockbuster goods, services and facilities;
- Provide the same training to new staff during the hiring process;
- Post its service animal policy on its website and in its stores, and post a “Service Animals Welcome” sign in each of its stores;
- Create a toll-free ADA complaint line;
- Establish, implement, and monitor a grievance procedure for ADA-related complaints from customers;
- Pay $12,000 in damages to the individual who filed the complaint resolved by this settlement; and
- Pay $10,000 as a civil penalty.
A service animal is individually trained to work or perform tasks for the benefit of an individual with a disability. Service animals – most commonly dogs – perform a wide variety of functions. Examples of these functions include guiding persons who are blind or have low vision, alerting individuals who are deaf or hard of hearing to sounds, warning persons about impending seizures or other medical conditions, performing a variety of tasks for persons with psychiatric disabilities, and picking up items, opening doors, flipping switches, providing physical support and pulling wheelchairs for individuals with mobility disabilities.
Title III of the ADA prohibits discrimination by retail stores, restaurants, hotels, taxi and bus companies, doctors, hospitals and other private businesses and nonprofit organizations that provide services to the public. Title II of the ADA prohibits discrimination by public entities, including state and local governments and public transportation providers. All of these entities are prohibited from excluding individuals with disabilities from their facilities, services and programs because the individuals use service animals. If any of these entities has a rule excluding pets or other animals, it must make an exception to that rule and permit an individual with a disability to be accompanied by a service animal anywhere on the premises that other customers are permitted to go.
“The ADA’s 20th anniversary is July 26, 2010,” said Assistant Attorney General Perez. “As we celebrate the anniversary of this landmark civil rights law, we are pleased that Blockbuster has affirmed its commitment to ensuring that individuals with disabilities benefit fully and equally from its goods, facilities, and services, including individuals who use service animals.”
More information about the Civil Rights Division and the laws it enforces is available at the website www.justice.gov/crt . More information about this agreement, the ADA, and ADA rights and responsibilities relating to service animals is available on the ADA home page at www.ada.gov. This information includes two publications specifically addressing access for individuals accompanied by service animals: “ADA Business Brief: Service Animals” and “Commonly Asked Questions About Service Animals in Places of Business.” Those interested in obtaining copies of these documents or additional information may also call the Justice Department’s toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
August B. Landis Appointed Acting U.S. Trustee for Northern and Eastern California, NevadaRead the Press Release
WASHINGTON – August Landis has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for Northern and Eastern California and Nevada (Region 17), effective July 18, 2010, the Executive Office for United States Trustees announced today. Mr. Landis replaces Sara L. Kistler, who previously served as Acting U.S. Trustee for Region 17.
Mr. Landis joined the U.S. Trustee Program in July 2005, and has served as the Assistant U.S. Trustee in the Las Vegas office since that time. Immediately prior to his appointment as Acting U.S. Trustee, Mr. Landis also served as Acting Associate General Counsel for Chapter 11 Practice in the Executive Office for U.S. Trustees. Before joining the U.S. Trustee Program, Mr.Landis practiced law in Des Moines for 18 years, specializing in commercial litigation and bankruptcy practice. He received his law degree from Drake University Law School, and his undergraduate degree from Drake University, in Des Moines, Iowa.
The U.S. Trustee Program 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. Region 17 is headquartered in San Francisco, with additional offices in Fresno, Oakland, Sacramento, San Jose, Las Vegas and Reno.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411
Friday 16 July 2010
Two Defendants Sentenced to Prison in International Child Pornography Conspiracy CaseRead the Press Release
WASHINGTON – Two defendants have been sentenced to prison in connection with a series of superseding indictments charging 26 individuals for their participation in an online child pornography conspiracy, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Timothy M. Morrison of the Southern District of Indiana.
Thomas Attebury, 40, of Bakersfield, Calif., was sentenced yesterday to 38 years in prison for his role in the child pornography conspiracy and David Williams, 46, of Selinsgrove, Pa., was sentenced yesterday to 25 years in prison for his participation in the conspiracy. Each defendant also was sentenced to lifetime supervised release following their respective prison terms. Both defendants pleaded guilty on previous dates to one count of conspiracy to advertise child pornography, one count of conspiracy to distribute child pornography, two counts of advertising child pornography and two counts of distributing child pornography before U.S. District Court Judge William T. Lawrence in Indianapolis.
According to his plea agreement, Attebury also admitted to the sexual abuse of three minors, one of whom was under the age of 12. Attebury also admitted to abusive sexual contact with a fourth child, who was also under the age of 12. Williams was convicted in 1996 of two counts of indecent assault and two counts of corruption of minors in the Commonwealth of Pennsylvania for sexually abusing a five-year-old child.
The charges against Williams, Attebury and 24 co-defendants are a result of "Operation Nest Egg," an ongoing and joint investigation led by the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the U.S. Attorney’s Office for the Southern District of Indiana, the U.S. Postal Inspection Service (USPIS) and U.S. Immigration and Customs Enforcement (ICE). Operation Nest Egg, launched in February 2008, targeted 26 defendants charged in the Southern District of Indiana, as well as approximately 500 additional individuals located throughout the world for their involvement in an online group dedicated to trading images of child pornography.
According to court documents filed in the Southern District of Indiana, the 26 co-conspirators participated in a sophisticated, password-protected Internet bulletin board group, which existed to allow members to meet like-minded individuals with a sexualized interest in children, to discuss that interest and to trade images of child pornography. The defendants are charged with conspiring to advertise and distribute child pornography, along with substantive counts of advertising and distributing child pornography. Twenty-two of the 26 defendants charged in the conspiracy have been arrested. Twenty of the 22 individuals arrested have been convicted or have pleaded guilty. Thirteen of the 20 individuals who have pleaded guilty for their role in the conspiracy have been sentenced to prison on previous dates.
Four of the 26 individuals charged in the conspiracy remain at large and are known only by their online identities. Efforts to identify and apprehend these four individuals continue.
To date, as a result of Operation Nest Egg, more than 80 searches have been conducted in the United States. In total, more than 50 individuals have been arrested and 39 individuals have been convicted. The investigation is ongoing. Numerous members of the Internet-based bulletin board were found to have been personally sexually abusing children, for example Attebury and Williams. Additionally, lead administrator Delwyn Savigar of the United Kingdom, was identified and arrested in partnership with the U.K.’s Child Exploitation and Online Protection Centre, for his involvement in the conspiracy. After his initial arrest, Savigar was identified through DNA testing as the perpetrator of a previously unsolved sexual assault against a minor female in Great Britain, to which he pleaded guilty. Following this discovery, Savigar was linked to additional incidents of sexual assaults. Ultimately, he pleaded guilty to either abusing or attempting to abuse three minors from 1999 to 2002. He was sentenced to 14 years in prison in the United Kingdom. To date, 16 child victims have been identified through Operation Nest Egg, including the four victims identified during the investigation of Thomas Attebury.
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 is being prosecuted by Assistant U.S. Attorney Steven D. DeBrota of the Southern District of Indiana and CEOS Trial Attorney Alecia Riewerts Wolak. The investigation was conducted jointly by CEOS’ High Technology Investigative Unit, USPIS and ICE, with assistance provided by the Indiana Internet Crimes Against Children (ICAC) Taskforce, Indiana State Police, and numerous local and international law enforcement agencies across the United States and Europe.
Third Latin Kings Member Pleads Guilty to Racketeering ConspiracyRead the Press Release
WASHINGTON - Nelson Santos, aka "Nelly" and "King Nelly," 27, of Silver Spring, Md., pleaded guilty today to 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).
The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Joseph Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; Chief Roberto L. Hylton of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Glenn Ivey.
According to Santos’ plea agreement, 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, but not limited to, the Royal Lion Tribe, MOG, Sun Tribe and UTL.
According to the plea agreement, in 2007, Santos became a member of the Royal Lion Tribe in Maryland. Santos attended Latin King meetings in Maryland, where dues were collected from members and gang business was discussed and he communicated with Latin King members about the gang’s activities by telephone. Santosparticipated in Latin King-sanctioned missions, including the armed robbery of a prostitute at the EconoLodge motel in Laurel, Md., on Dec. 14, 2007.
According to the statement of facts, Santos and other Latin King members and associates drove in two separate vehicles to the motel, where they forced their way into a motel room,
which they knew to be occupied by a prostitute. Santos and the other Latin King members and associates were armed with a gun and a knife. The prostitute was forced to strip naked on the bed, while the Latin Kings ransacked her room and stole cash, an X-Box, video games, a cell phone, a laptop and other items. The man who was in the room with the prostitute was held captive in the bathroom and pistol-whipped on the head.
Also according to the plea agreement, on April 28, 2009, in Wheaton, Md., Santos, a previously convicted felon who was prohibited from possessing firearms and ammunition, knowingly possessed a Leinad 9mm Mac-11 machine pistol with an obliterated serial number, which was loaded with 27 rounds of 9mm ammunition.
Santos faces a maximum sentence of life in prison for racketeering and 10 years in prison for illegal possession of a firearm. U.S. District Judge Alexander Williams, Jr. has scheduled sentencing for Oct. 22, 2010 at 9:30 a.m. Santos 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 and Andres Echevarria, aka "B-Boy" and "King B-Boy," 23, of Brooklyn, N.Y., who admitted that he held leadership positions in the Latin Kings, previously pleaded guilty to the racketeering conspiracy in connection with their gang activities and are scheduled to be sentenced on Sept. 16, 2010, at 9:30 a.m. and Sept. 2, 2010, at 9:30 a.m., respectively. Both remain in federal custody.
The case was investigated 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 New York City Police Department, the U.S. Secret Service, the Internal Revenue Service - Criminal Investigation and U.S. Immigration and Customs Enforcement.
The case is being prosecuted by Assistant U.S. Attorneys Emily Glatfelter and David Salem, and Trial Attorney Lara M. Peirce with the Criminal Division’s Gang Unit.
Medicare Fraud Strike Force Charges 94 Doctors, Health Care Company Owners, Executives and Others for More Than $251 Million in Alleged False BillingRead the Press Release
WASHINGTON – Ninety-four people have been charged for their alleged participation in schemes to collectively submit more than $251 million in false claims to the Medicare program in the continuing operation of the Medicare Fraud Strike Force in Miami; Baton Rouge, La.; Brooklyn, N.Y.; Detroit and Houston, announced Attorney General Eric Holder, Department of Health and Human Services (HHS) Secretary Kathleen Sebelius, FBI Director Robert Mueller and Daniel R. Levinson, Inspector General of HHS. The operation announced today is the largest federal health care fraud takedown since Medicare Fraud Strike Force operations began in 2007.
The joint DOJ-HHS Medicare Fraud Strike Force is a multi-agency team of federal, state and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques and an increased focus on community policing. More than 360 law enforcement agents from the FBI, HHS-Office of Inspector General (HHS-OIG), multiple Medicaid Fraud Control Units, and other state and local law enforcement agencies participated in today’s operation.
"Our continued Strike Force operations reflect the unprecedented commitment that inspired the creation of the Health Care Fraud Prevention and Enforcement Action Team in May 2009," said Attorney General Holder. "With today’s arrests, we’re putting would-be criminals on notice: Health care fraud is no longer a safe bet. The federal government is working aggressively – and collaboratively – to pursue health care criminals around the country and to bring these offenders to justice."
"Today’s arrests send a strong message that attempts to defraud Medicare will not be tolerated," said Secretary Sebelius. "With the help of new tools in the Affordable Care Act, including stiffer penalties and better information sharing, we will continue to work with our federal, state and local partners to stamp out Medicare fraud and protect beneficiaries and the American taxpayer."
Charges were unsealed today against 94 individuals who are accused of various Medicare fraud-related offenses, including conspiracy to defraud the Medicare program, criminal false claims, violations of the anti-kickback statutes and money laundering. The charges are based on a variety of fraud schemes, including physical therapy and occupational therapy schemes, home health care schemes, HIV infusion fraud schemes and durable medical equipment (DME) schemes. Thirty-six defendants charged in these schemes have been arrested in Miami, New York, Baton Rouge and Detroit and additional arrests are expected throughout the day.
According to the court documents, the defendants charged today participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and oftentimes, never provided. In many cases, indictments and complaints allege that beneficiaries accepted cash kickbacks in return for allowing providers to submit forms saying they had received the treatments that, in reality, were unnecessary or never provided. Collectively, the doctors, health care company owners, executives and others charged in the indictments and complaints are accused of conspiring to submit more than $251 million in false claims to the Medicare program.
In Miami, 24 defendants were charged for allegedly participating in various fraud schemes that led to approximately $103 million in false billings. According to court documents, the fraud schemes involved fraudulent billing for HIV infusion services, home health care and physical therapy services, DME and pharmaceutical medications. The defendants include owners and operators of companies, doctors, nurses, and patient recruiters, as well as a medical biller who is alleged to have billed approximately $49 million for fraudulent services.
Thirty-one defendants were charged in Baton Rouge for various schemes allegedly involving fraudulent claims for DME totaling approximately $32 million. The defendants include the owners and operators of nine different purported medical services companies and four doctors, 14 patient recruiters and other individuals who allegedly worked at the medical services companies.
Twenty-two defendants were charged in Brooklyn for their alleged participation in schemes to submit fraudulent claims totaling approximately $78 million. These fraud schemes involved false billing for physical and occupational therapy and DME. The defendants include the owners and operators, patient recruiters and employees at three different purported medical clinics and a medical equipment company, as well as three doctors. According to court documents, six of the defendants charged are serial Medicare beneficiaries, who purported to seek medical treatment from numerous providers, causing the submission of multiple claims to Medicare for purported medical treatments.
In Detroit, 11 defendants were charged for their alleged roles in schemes to submit fraudulent claims to Medicare for home health services, nerve conduction tests and injection and infusion therapy sessions. The schemes involved a total alleged fraud of approximately $35 million and five different purported medical services companies.
Four defendants were also charged in Houston for their alleged roles in a $3 million scheme to submit fraudulent claims for DME.
In addition to making arrests around the country, law enforcement agents are executing search warrants in connection with ongoing health care fraud investigations.
"Today’s charges allege attempts by individuals to defraud the Medicare program of $251 million," said FBI Director Robert S. Mueller, III. "Countless Americans rely on Medicare for their well-being, and the FBI, working in conjunction with our federal agency partners, is resolute in its commitment to stop those who would illegally manipulate the system."
"Today’s arrests illustrate how health care fraud schemes can replicate virally and migrate rapidly across communities," said Daniel R. Levinson, Inspector General of HHS. "To combat this fraud, the government’s response must also be swift, agile, and organized – a HEAT initiative goal which is well illustrated by today’s Strike Force actions."
The Strike Force operations in Miami, Baton Rouge, Brooklyn, Detroit and Houston are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The HEAT task force, co-chaired by Acting Deputy Attorney General Gary G. Grindler and Deputy Secretary Bill Corr, is made up of top-level law enforcement agents, prosecutors and staff from both departments and their operating divisions. In the May 2009 announcement, Attorney General Holder and Secretary Sebelius announced the expansion of the Strike Force into Detroit and Houston to build upon existing partnerships between the agencies in a heightened effort to reduce fraud and recover taxpayer dollars. In December 2009, Strike Force operations were expanded to Brooklyn, Baton Rouge and Tampa.
Since its inception in March 2007 with Phase One in South Florida and continuing through its most recent expansion into Tampa, Fla., the Strike Force has obtained indictments of more than 810 individuals and organizations that collectively have billed the Medicare program for more than $1.85 billion. In addition, HHS’s 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.
The cases announced today are being prosecuted and investigated by Strike Force teams comprised of attorneys from the Fraud Section in the Justice Department’s Criminal Division and from the U.S. Attorneys’ Offices for the Southern District of Florida, the Eastern District of New York, the Middle District of Louisiana, the Eastern District of Michigan and the Southern District of Texas; and agents from the FBI and HHS-OIG.
The Railroad Retirement Board Office of Inspector General and the Office of Personnel Management-Office of Inspector General also participated in today’s operation.
An indictment is merely an allegation, and defendants are presumed innocent until and unless proven guilty.
To learn more about the HEAT team, go to: www.stopmedicarefraud.gov.
Justice Department Resolves Lawsuit Alleging Disability Discrimination by Ventura County, CaliforniaRead the Press Release
WASHINGTON – The Justice Department today announced a consent decree resolving a lawsuit filed against Ventura County, Calif., alleging that the county violated the Americans with Disabilities Act (ADA) when it refused to hire a qualified applicant for a children’s social services position because she is deaf and required reasonable accommodations. At the time of her application, the applicant had been employed in the same capacity for Los Angeles for more than eight years and had excelled in her position.
Under the terms of the consent decree, approved today by Judge Margaret M. Morrow, U.S. District Court for the Central District of California, Ventura County will train supervisory personnel involved in hiring and promotion decisions to ensure that qualified applicants and employees who are deaf will be provided reasonable accommodations, including sign language interpreters, where necessary to ensure equal employment opportunities. Ventura County has also agreed to pay $45,000 in damages to the complainant.
"The ADA prohibits employers from making hiring decisions based on unfounded assumptions about how a deaf employee will perform the job or about the costs involved in providing reasonable accommodations for a deaf employee," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Civil Rights Division is committed to vigorously enforcing the ADA to ensure equal employment opportunities for all individuals with disabilities, and we are pleased that the County finally agreed to resolve this matter."
Title I of the ADA prohibits employers, such as Ventura County, from discriminating against a qualified individual on the basis of disability in regard to job application procedures; the hiring, advancement or discharge of employees; employee compensation, job training and other terms, conditions and privileges of employment. An employer may not deny employment opportunities to a job applicant or employee who is otherwise qualified if the denial is based on the need to make reasonable accommodations for the applicant or employee.
Those interested in finding out more about federal disability rights statutes can call the Justice 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.
Justice Department Files Fair Housing Lawsuit Alleging Discrimination at Apartment Complex in Renton, WashingtonRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit against the owner, management company and former manager of Summerhill Place Apartments, a 268-unit apartment complex in Renton, Wash., for violating the Fair Housing Act by discriminating on the basis of race, color, national origin and familial status in the rental of apartments.
The lawsuit, filed in the U.S. District Court for the Western District of Washington, names as defendants Summerhill Place LLC (the owner of Summerhill Place Apartments), GRAN Inc. (the management company) and Rita Lovejoy (the former on site manager). The suit alleges, among other things, that the defendants steered Indian tenants away from one of the five buildings at Summerhill, treated tenants from India less favorably than other tenants, and discouraged African Americans, Hispanics and families with children from living at Summerhill.
"Equal access to housing in the United States is a fundamental right, and this nation will not tolerate discrimination in housing," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Justice Department will continue its vigorous enforcement of Fair Housing laws along with its partners at the Department of Housing and Urban Development (HUD)."
"Few things are more fundamental to success and happiness than having a safe place to live. Fair and equal access to housing is a cornerstone of our society," said U.S. Attorney for the Western District of Washington Jenny A. Durkan. "Apartment owners must ensure that their managers treat all tenants, and potential tenants, in a fair and equitable manner without regard to race, national origin or whether they have children. The U.S. Attorney’s Office will actively pursue these cases with the goal of fairness and equity for all."
As alleged in the complaint, two Summerhill employees contacted the King County Office of Civil Rights (KCOCR) in 2007 and complained of discriminatory housing practices at Summerhill. KCOCR then contracted with the Fair Housing Council of Washington to conduct testing at Summerhill. After testing was conducted, KCOCR referred the matter to HUD. After an investigation, the Secretary of HUD determined that there was reasonable cause to believe that discriminatory housing practices had occurred and issued a charge of discrimination. The defendants elected to have the matters asserted in the HUD charge heard in federal court.
"Housing discrimination is illegal and unacceptable," said Assistant Secretary for Fair Housing and Equal Opportunity John Trasviña. "HUD and the Justice Department work to eliminate it."
The suit seeks monetary damages for those harmed by the defendants’ actions, civil penalties and a court order barring future discrimination.
Fighting illegal discrimination in housing is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt . Individuals who believe that they 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.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Former U.S. Army Contracting Official Sentenced to 42 Months in Prison for Bribery and Unlawful Salary Supplementation in Off-post Housing SchemeRead the Press Release
WASHINGTON – A former U.S. Army contracting official was sentenced today to 42 months in prison in connection with two schemes to solicit more than $30,000 in bribes and other payments from an Egyptian businessman in Kuwait, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia.
William Rondell Collins, 46, of Bartlett, Tenn., was also ordered by U.S. District Court Judge Liam O’Grady to forfeit $5,775, to pay a fine of $1,725 and to serve three years of supervised release following his prison term. Collins pleaded guilty on April 21, 2010, to one count of bribery and one count of unlawful salary supplementation. Collins was originally charged in an indictment filed on Feb. 18, 2010.
Collins was employed by the U.S. Army Area Support Group-Kuwait (ASG-KU). The ASG-KU is responsible for maintaining Camp Arifjan, a U.S. military installation providing support for operations in Afghanistan, Iraq and other locations in the Southwest Asian Theater. As part of those responsibilities, the ASG-KU maintains an off-post housing office, located in downtown Kuwait City, which procures, leases and supervises off-post housing for government employees and military service members stationed at Camp Arifjan. According to court documents, Collins worked in the ASG-KU’s off-post housing office as a housing specialist responsible for supervising private contractors and procuring off-post apartment rentals.
According to court documents, Collins agreed to submit an inflated off-post apartment lease to the United States for approval and then split with an Egyptian businessman more than $23,100 that resulted from the inflated lease payments. According to sentencing documents, Collins also solicited approximately $8,400 from the Egyptian businessman between July and December 2009 and agreed in return to provide advice and preferential treatment in connection with a fixed-price U.S. government contract awarded to the Egyptian businessman’s company. The contract was for maintenance services for off-post housing supervised by Collins and the ASG-KU off-post housing office.
The case was prosecuted by Special Assistant U.S. Attorney Ryan S. Faulconer and Fraud Section Senior Trial Attorney James J. Graham. The investigation was conducted by the Defense Criminal Investigative Service, the FBI, the U.S. Army Criminal Investigative Division, and members of the National Procurement Fraud Task Force (NPFTF) and the International Contract Corruption Task Force (ICCTF).
The NPFTF, created in October 2006 by the Department of Justice, was designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The ICCTF is a joint law enforcement agency task force that seeks to detect, investigate, and dismantle corruption and contract fraud resulting from U.S. Overseas Contingency Operations worldwide, including in Kuwait, Afghanistan and Iraq.
Former Tennessee Inmate Charged with Filing False Tax Returns While in JailRead the Press Release
WASHINGTON – A Tennessee grand jury has indicted Walter Allen Johnson, aka "Beau" Johnson, of Sevierville, Tenn., for filing false claims against the United States as well as conspiring to defraud the United States, the Justice Department and Internal Revenue Service (IRS) announced today.
The indictment alleges that Johnson, while incarcerated with the Tennessee Department of Corrections, conspired to defraud the United States by submitting false tax returns claiming refunds on behalf of inmates from February of 2006 through January of 2007. The indictment further alleges that Johnson collected social security numbers from inmates and recruited other inmates to collect social security numbers for him. According to the indictment, Johnson used those social security numbers to file false income tax forms with the IRS in the names of inmates, claiming refunds to which the inmates were not entitled.
The indictment alleges that Johnson and his co-conspirators collected approximately 88 U.S. Treasury checks as a result of the returns that were filed, totaling approximately $58,651.80.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Johnson faces a maximum of 65 years in prison and a maximum fine of $3 million.
The case is being investigated by IRS Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Michelle M. Petersen and Kathryn B. Ward.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.
Former State Department Official Sentenced to Life in Prison for Nearly 30-year Espionage ConspiracyRead the Press Release
WASHINGTON -- Walter Kendall Myers, a former State Department official, and his wife, Gwendolyn Steingraber Myers, have been sentenced to life in prison without the possibility of parole and 81 months in prison, respectively, for their roles in a nearly 30-year conspiracy to provide highly-classified U.S. national defense information to the Republic of Cuba.
The sentences, handed down today by Judge Reggie B. Walton in U.S. District Court for the District of Columbia, were announced by David Kris, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Shawn Henry, Assistant Director for the FBI’s Washington Field Office; and Ambassador Eric J. Boswell, Assistant Secretary of State for Diplomatic Security.
On Nov. 20, 2009, defendant Kendall Myers, 73, aka “Agent 202,” pleaded guilty to a three-count criminal information charging him with conspiracy to commit espionage and two counts of wire fraud. His wife, Gwendolyn Myers, 72, aka “Agent 123,” and “Agent E-634,” pleaded guilty to a one-count criminal information charging her with conspiracy to gather and transmit national defense information. The defendants, both residents of Washington, D.C., were arrested on June 4, 2009, by FBI agents and have remained in custody ever since.
Both defendants have agreed to the entry of a monetary judgment against them in the amount of $1,735,054. The assets that will be forfeited to the government towards satisfaction of that judgment include the proceeds from the sale of the defendants’ apartment and vehicle, and various bank and investment accounts.
“For nearly 30 years, this couple proudly committed espionage on behalf of a long-standing foreign adversary. Today, they are being held accountable for their actions. Their sentences should serve as a clear warning to others who would willingly compromise our nation’s most sensitive classified information,” said David Kris, Assistant Attorney General for National Security.
“Kendall and Gwendolyn Myers were brought to justice not because they were careless, but because of an extremely well-planned and executed counterintelligence investigation that required the unprecedented cooperation of multiple agencies of the U.S. government tasked with protecting our national security,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “Others like the Myers who are presently betraying the trust that this country has placed in them should know that they are not safe from prosecution regardless of how careful they think they are being. As with Kendall and Gwendolyn Myers, they will be caught and brought to justice.”
Shawn Henry, Assistant Director of the FBI’s Washington Field Office, said: “The Myers made a conscious decision to betray the United States and its citizens. The FBI, along with its partners in the U.S. Intelligence Community, will continue to aggressively pursue anyone who seeks to cause the same harm.”
“Walter Kendall Myers betrayed his country. By committing acts of espionage Myers grievously violated the confidence placed in him by the U.S. Department of State and the American people. Today, he has been rightfully sentenced for crimes against our nation,” said Assistant Secretary for State for Diplomatic Security Eric J. Boswell.
Background
According to the sentencing memorandum, plea agreements and other documents filed in court by the United States:
Kendall Myers began working at the State Department in 1977 as a contract instructor at the Department’s Foreign Service Institute (FSI) in Arlington, Va. After living briefly with Gwendolyn in South Dakota, he returned to Washington, D.C., and resumed employment as an instructor with FSI. From 1988 to 1999, in addition to his FSI duties, he performed work for the State Department’s Bureau of Intelligence and Research (INR). He later worked full-time in INR and, from July 2001 until his retirement in October 2007, was an intelligence analyst for Europe in INR where he specialized on European matters and had daily access to classified information through computer databases and otherwise. He received a “Top Secret” security clearance in 1985 and, in 1999, received access to “Sensitive Compartmental Information.”
Gwendolyn Myers moved to Washington, D.C., in 1980 and married Kendall Myers in May 1982. She later obtained employment with a local bank as an administrative analyst and later as a special assistant. Gwendolyn Myers was never granted a security clearance by the U.S. government.
Recruitment
In December 1978, while an employee of the State Department’s FSI, Kendall Myers traveled to Cuba after being invited by a Cuban government official who had made a presentation at FSI. That Cuban official was an intelligence officer for the Cuban Intelligence Service (CuIS). This trip provided CuIS with the opportunity to assess or develop Myers as a Cuban agent. Myers kept a diary of his two-week trip to Cuba in which he explicitly declared his affinity for Fidel Castro and the Cuban government. The diary was recovered by the FBI in the investigation.
In 1979, Kendall and Gwendolyn Myers were visited in South Dakota by the same Cuban intelligence officer who had invited Kendall Myers to Cuba. During the visit, the Cuban intelligence officer recruited both of them to be clandestine agents for Cuba, a role in which they served for the next 30 years. Their recruitment by CuIS as “paired” agents is consistent with CuIS’s past practice in the United States. Afterwards, CuIS directed Kendall Myers to pursue a job at the State Department or the CIA to gain access to classified information. Kendall Myers, accompanied by his wife, returned to Washington, D.C., where he pursued a position at the State Department.
During the time frame in which Kendall and Gwendolyn Myers were serving as clandestine agents for Cuba, the CuIS often communicated with its clandestine agents in the United States by broadcasting encrypted radio messages from Cuba on shortwave radio frequencies. Clandestine agents in the United States monitoring the frequency on shortwave radio could decode the messages using a decryption program provided by CuIS. Kendall and Gwendolyn Myers communicated with CuIS by this method. The shortwave radio they used to receive clandestine communications was purchased with money provided by CuIS. The shortwave radio was later recovered by the FBI.
Undercover Operation
According to the court documents, in April 2009, the FBI launched an undercover operation against the pair. Kendall and Gwendolyn Myers met four times with an undercover FBI source, on April 15th, 16th and 30th, and on June 4, 2009. The meetings were all video- and audio-taped.
During the meetings, Kendall and Gwendolyn Myers made a series of statements about their past activities on behalf of CuIS, including how they used code names and how they had transmitted information to their CuIS handlers through personal meetings, “dead drops,” “hand-to-hand” passes, and in at least one case, the exchange of shopping carts in a grocery store. The couple also stated that they had traveled to meet Cuban agents in Trinidad and Tobago, Jamaica, Mexico, Brazil, Ecuador, Argentina and other locations.
When asked by the undercover FBI agent if he had ever transmitted information to CuIS that was classified higher than “Secret,” Kendall Myers replied, “oh yeah…oh yeah.” He said he typically removed information from the State Department by memory or by taking notes, although he did take some classified documents home. Gwendolyn Myers admitted she would process the classified documents at home for delivery to their CuIS handlers. In the final meeting with the FBI source, Kendall Myers disclosed “Top Secret” national defense information related to sources and methods of gathering intelligence. He also admitted that he had previously disclosed the information to CuIS.
Corroboration
The admissions by Kendall and Gwendolyn Myers were corroborated by other evidence collected in the investigation. The FBI seized a shortwave radio in their apartment and confirmed overseas trips by the couple that corresponded to statements they made. The FBI also identified encrypted shortwave radio messages between CuIS and a handler for the couple that were broadcast in 1996 and 1997.
Furthermore, an analysis of Kendall Myers’ State Department computer revealed that, from August 22, 2006, until his retirement on Oct. 31, 2007, he viewed more than 200 intelligence reports concerning the subject of Cuba. Of these reports concerning Cuba, the majority was classified and marked “Secret” or “Top Secret.” The FBI also located handwritten notes by Kendall Myers reflecting the gathering and retention of “Top Secret” information which he intended to provide the CuIS, but never did.
Finally, since at least 1983 and until 2007, Kendall Myers made repeated false statements to government investigators responsible for conducting background investigations which determined his continued suitability for a “Top Secret” security clearance. By not disclosing his and his wife’s clandestine activity on behalf of CuIS and by making false statements to the State Department about their status as clandestine Cuban agents, he defrauded the United States whenever he received his government salary. Based on these false representations and promises, Kendall Myers obtained at least $1,735,054 in salary from the U.S. government for the benefit of him and his wife.
This investigation was conducted jointly by the FBI’s Washington Field Office and the State Department’s Bureau of Diplomatic Security. The prosecution was handled by Assistant U.S. Attorney G. Michael Harvey, from the U.S. Attorney’s Office for the District of Columbia, and Senior Trial Attorney Clifford I. Rones, from the Counterespionage Section of the Justice Department’s National Security Division.
Attorney General Holder and Secretary Sebelius Kick-off First Regional Health Care Fraud Prevention Summit in MiamiRead the Press Release
WASHINGTON – Attorney General Eric Holder and U.S. Department of Health and Human Services Secretary Kathleen Sebelius today kicked-off the first in a series of regional health care fraud prevention summits in Miami. The summit brought together a wide-array of federal, state and local partners, beneficiaries, providers and other interested parties to discuss innovative ways to eliminate fraud within the U.S. health care system.
“Despite all that’s been accomplished over the last year, we cannot yet be satisfied or become complacent. And we cannot ignore the fact that health care fraud remains a significant problem,” said Attorney General Holder. “Each of you can be part of this and other public education efforts. Each of you can help to ensure that our health reform achievements are not exploited.”
“The days of scamming dollars from our health care system are over,” said Secretary Sebelius. “Thanks to new tools contained in the Affordable Care Act, we are more prepared than ever to safeguard taxpayer dollars and ensure that the health care coverage of our seniors, families and children is secure. I’m proud of the tremendous success we’ve had so far, and look forward to continuing this important dialogue at fraud prevention summits across the country.”
The summit featured a training session for Miami-area seniors on how to detect suspected fraud in Medicare, including how to report fraud to 1-800-HHS-TIPS and at www.stopmedicarefraud.gov .
The summit also featured educational panels that discussed best practices for both providers and law enforcement in preventing health care fraud. The panels included law enforcement officials, consumer experts, providers and representatives of key government agencies.
The recently enacted Affordable Care Act provides additional tools and resources to fight fraud in the health care system by providing an additional $350 million over the next ten years through the Health Care Fraud and Abuse Control Account. In addition, the Affordable Care Act toughens sentencing for criminal activity, enhances screenings and enrollment requirements, encourages increased sharing of data across government, expands overpayment recovery efforts, and provides greater oversight of private insurance abuses. For information on the 2009 Health Care Fraud and Abuse Control Program Report, please visit www.justice.gov/dag/pubdoc/hcfacreport2009.pdf
Investments in anti-fraud detection and enforcement pay for themselves many times over, and the administration’s tough stance against fraud is already yielding results. I n FY 2009, anti-fraud efforts put $2.51 billion back in the Medicare Trust Fund, a $569 million, or 29 percent, increase over FY 2008, and over $441 million in federal Medicaid money was returned to the U.S. Treasury, a 28 percent increase from FY 2008.
The Affordable Care Act builds on innovative strategies to fight fraud, such as the Health Care Fraud Prevention and Enforcement Action Team (HEAT), the joint operation between the Department of Justice (DOJ) in partnership with their 94 U.S. Attorneys Offices, the Centers for Medicare and Medicaid Services, and the HHS Office of Inspector General that has unleashed special strike forces in seven regions to target health care fraud hot spots like South Florida, Los Angeles, Houston, Detroit, Brooklyn, N.Y., Baton Rouge, La., and Tampa, Fla.
On June 8, 2010, President Obama announced this nationwide series of regional fraud prevention summits as part of a multi-faceted effort to crack down on health care fraud. The Miami summit was the first in a series, with additional summits to follow in the coming months in Los Angeles, Las Vegas, Detroit, Boston, New York and Philadelphia.
Thursday 15 July 2010
Swiss Lawyer Indicted for Helping to Hide Swiss Bank Accounts and Monies Returned to U.S. ClientsRead the Press Release
WASHINGTON – The Justice Department announced today that a federal grand jury in Alexandria, Va., returned an indictment charging Felix M. Mathis, an attorney practicing in Zurich, Switzerland, with conspiring to defraud the United States and structuring the importation of currency into this country. If convicted, Mathis faces a maximum sentence of 25 years in prison and a maximum fine of $1.25 million.
According to court documents, in 1997, Dr. Andrew Silva of Sterling, Va., inherited an undeclared bank account from his mother at the Zurich branch of one of the world’s largest international banks. The bank is headquartered in England and also has offices in Zurich, Geneva and the Eastern District of Virginia. The account was held in the name of a sham Liechtenstein trust. In 1999, Silva met with Mathis who managed the account in Zurich. Mathis instructed Silva to keep the account "hush," to not keep any records relating to the account, and to send coded letters to him if he wished to meet. Further, Mathis advised Silva that if he transported or mailed less than $10,000 in U.S. currency back to the United States, he would not have to declare the funds to the U.S. government upon re-entry to the United States.
According to court documents, in September 2009, Silva was informed that the international bank was closing his undeclared Swiss account and that he had until the end of the year to travel to Switzerland to withdraw all funds. Silva made two trips to Zurich in October and November 2009 and met with Mathis at his office and a Swiss banker at the private wealth office of the international bank. Mathis and the Swiss banker refused to wire the money to the United States as it would leave a trail for U.S. law enforcement. Instead, they provided him with $235,000 in U.S. currency. Of that total, Silva received $200,000 in two individually wrapped "bricks" of $100,000 of sequentially numbered, new $100 bills.
According to court documents, with the assistance of Mathis, Silva mailed 26 packages containing over $200,000 in U.S. currency from Switzerland to the United States to himself and another person.
Silva pleaded guilty on Feb. 16, 2010 to conspiracy to defraud the United States and to making a false statement. As part of his plea agreement, Silva agreed to forfeit to the government $211,200 in U.S. currency that law enforcement officials seized from packages that he mailed from Switzerland to his residence in Sterling, Va. On June 11, 2010, U.S. District Judge Liam O’Grady sentenced Silva to two years of probation, including four months of home detention and a $20,000 fine.
Individuals who physically transport, mail or ship, or cause to be physically transported, mailed, shipped or received, currency, traveler’s checks, and certain other monetary instruments in an aggregate amount exceeding $10,000 into the United States are required to file a FinCen Form 105, Report of International Transportation of Currency or Monetary Instruments, with the Bureau of Customs and Border Protection (the CMIR).
United States law prohibits individuals from structuring mailings of U.S. currency into the United States in amounts less than $10,000 if the purpose of the structuring was to evade the requirement to file a CMIR.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The case is being investigated by criminal agents from U.S. Immigration and Customs Enforcement, U.S. Postal Inspection Service, and the Internal Revenue Service. The matter is being prosecuted by Assistant U.S. Attorney Mark Lytle of the Eastern District of Virginia, Tax Division Senior Litigation Counsel Kevin M. Downing, and Tax Division Trial Attorneys Mark F. Daly and John E. Sullivan.
New Orleans Man Charged with Shooting African-Americans in the Aftermath of Hurricane KatrinaRead the Press Release
WASHINGTON Roland J. Bourgeois Jr., 47, currently a resident of Columbia, Miss., was charged in a five-count indictment with conspiring to commit a hate crime, committing a hate crime with a deadly weapon and with intent to kill, making false statements and obstructing of justice in connection with a shooting that happened in the days after Hurricane Katrina.
Today's indictment was announced by Assistant Attorney General for the Civil Rights Division Thomas E. Perez; U.S. Attorney for the Eastern District of Louisiana Jim Letten; and Special Agent in Charge of the FBI New Orleans Field Office David Welker.
According to the indictment, on Sept. 1, 2005,Roland Bourgeois Jr. fired a shotgun at three African-American men because of their race and because they were attempting to use the public streets in the Algiers Point neighborhood of New Orleans. These African-American men were wounded as they sought to evacuate from New Orleans in the wake of Hurricane Katrina.
The indictment alleges that, after Hurricane Katrina,Bourgeoisdiscussed shooting African-Americans and defending Algiers Point from outsiders, including African-Americans who did not live in the neighborhood. After Bourgeois fired a shotgun at the three men walking on a public street, he learned that one of his victims had been wounded and he announced that he was going to kill African-Americans. Bourgeois then allegedly warned an African-American resident of Algiers Point that, "anything coming up this street darker than a brown paper bag is getting shot." Immediately following the shooting,Bourgeois retrieved from the scene – and subsequently displayed – a bloody baseball cap that belonged to one of the victims.
The indictment further alleges that Bourgeois later provided a false statement to federal agents investigating the Sept. 1, 2005, shooting in Algiers Point. Bourgeois is also charged with corruptly persuading an eyewitness to lie to the FBI. Finally,Bourgeois is charged with using a firearm in furtherance of the alleged conspiracy and civil rights offenses.
Bourgeois faces a possible maximum sentence of life in prison.
This case, which is ongoing, is being investigated by the New Orleans Field Office of the FBI, and is being prosecuted by the Justice Department’s Civil Rights Division Trial Attorney Forrest Christian and Assistant U.S. Attorney for the Eastern District of Louisiana W. Scott Laragy.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Justice Department Settles Discrimination Lawsuit Against Pasco County, Florida, Fairgrounds OwnerRead the Press Release
WASHINGTON – The Justice Department today announced the filing and settlement of a lawsuit against the Pasco County Fair Association Inc. for allegedly discriminating against Hispanic patrons in the rental of a reception hall on its fairgrounds in Dade City, Fla. The department’s complaint was filed in the U.S. District Court for the Middle District of Florida in Tampa and the settlement is memorialized in a consent decree that must still be approved by the court.
The complaint alleges that the Pasco County Fair Association violated Title II of the Civil Rights Act of 1964 by engaging in a pattern or practice of discrimination against persons of Hispanic descent by charging and quoting Hispanic customers and prospective customers higher deposit fees for renting the Dan Cannon Auditorium, a reception hall owned and operated by the fair association and used for weddings, anniversaries and other events.
"Public gathering places such as reception halls should be open to all persons regardless of their ethnic backgrounds, and our nation’s laws make clear that discrimination of this sort is unacceptable," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This settlement sends the important message that the Justice Department and the Civil Rights Division are committed to eradicating illegal discrimination in public accommodations."
"People use public places like this to celebrate the most joyous and important events of their lives," said U.S. Attorney for the Middle District of Florida A. Brian Albritton. "The U.S. Attorney’s Office will remain vigilant to ensure access to such places without illegal discrimination."
The consent decree prohibits the fair association from discriminating on the basis of national origin in the provision of goods, services and facilities at the fairgrounds and the Dan Cannon hall. The decree also requires training of the association’s board members and employees, the adoption of nondiscrimination policies and procedures, the posting of nondiscrimination policies in Spanish and English, the adoption of complaint resolution procedures, the retention of an outside contractor to test the association’s compliance with Title II, and monitoring by the government.
The lawsuit arose after the Greater Tampa Chapter of the ACLU Foundation of Florida alerted the Civil Rights Division that the fair association was allegedly charging Hispanics higher deposits to rent Dan Cannon Auditorium. The government conducted an independent investigation, including using testers – individuals who pose as renters to gather information about possible discriminatory practices – who uncovered evidence of possible discrimination.
Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment. Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not include a provision for monetary damages for individuals who are victims of discrimination.
The continued enforcement of Title II is a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.
Justice Department Reaches Comprehensive Settlement with National Owner of Gas Stations Resolving ADA ClaimsRead the Press Release
WASHINGTON – The Justice Department today announced a comprehensive settlement under the Americans with Disabilities Act (ADA) with QuikTrip Corporation, a private company that owns and operates more than 550 gas stations, convenience stores, travel centers, and truck stops in the Midwest, South and Southwestern United States. Under the consent decree, which was filed today along with a complaint in the U.S. District Court for the District of Nebraska, QuikTrip will create a $1.5 million compensatory damages fund for individuals who were victims of discrimination based on disability, as well as take various steps to make its stores accessible.
The Justice Department initially opened the investigation in response to complaints about inaccessible parking by two individuals with disabilities in the Omaha, Neb., area. The lawsuit filed by the Justice Department alleges that the investigation revealed a nationwide pattern and practice of discrimination on the basis of disability. QuikTrip Corporation worked with the Justice Department to amicably resolve the matter without active litigation.
“On July 26, 2010, we will celebrate the 20th anniversary of the ADA, a landmark civil rights law that ensures equal access and equal opportunity for individuals with disabilities. Ensuring full and equal access to all businesses open to the public is a top priority, and the Justice Department is committed to vigorous enforcement of the ADA to ensure equal opportunity for individuals with disabilities,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
“Convenience stores and gas stations are a critical part of everyday life in America, and these facilities must afford equal access to individuals with disabilities,” said Assistant Attorney General Perez. “QuikTrip has worked cooperatively with the department so we could resolve this case without active litigation and has affirmed its commitment to serving individuals with disabilities by taking the necessary actions to achieve ADA compliance at all of its stores.”
Under the settlement, which remains subject to court approval, QuikTrip Corporation will:
- Make necessary modifications at its current stores over a three year period to achieve compliance with ADA accessibility requirements. QuikTrip has retained an independent licensed architect approved by the department to certify compliance with the ADA architectural standards for each of its current stores;
- Design and construct future stores so they comply with the ADA architectural standards and obtain a certification of ADA compliance for each future store from the independent licensed architect or a construction manager who has been trained by the architect on ADA compliance issues;
- Ensure that at least two fueling positions at each of its current stores and all fueling positions at each store opened after the entry of the consent decree are accessible to individuals with disabilities, including the fuel dispenser controls, self-service payment mechanism, call button and amenities. At QuikTrip stores opened after approval of the consent decree, two fuel dispensers will be on the shortest accessible route to the store entrance;
- Adopt, implement and train store employees on policies to ensure fueling and other types of indoor and outdoor assistance for people with disabilities, equal access for individuals who use service animals, and maintaining accessible features, such as accessible parking and routes;
- Ensure and maintain operation of remote notification systems for outdoor assistance after an initial testing and upgrade of notification systems that may take up to six months;
- Implement and maintain an ADA comment line and complaint resolution process and take appropriate corrective actions to resolve ADA-related complaints received from customers;
- Ensure the accessibility of its website, www.quiktrip.com ;
- Pay a maximum civil penalty in the amount of $55,000;
- Create a $1.5 million compensatory damages fund to compensate the complainants and other aggrieved persons who make timely claims to the Justice Department. Claims must be received within 180 days of entry of the consent decree by the court.
The consent decree was reached under Title III of the ADA, which prohibits discrimination against individuals with disabilities by businesses that are open to the public, including gas stations, convenience stores, and other retailers, both large and small. More information about the Civil Rights Division and the laws it enforces is available at the website www.justice.gov/crt . More information about the settlement with QuikTrip can be found at www.ada.gov or by calling the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
Former Missouri County Chief Deputy Charged with Civil Rights ViolationsRead the Press Release
WASHINGTON – A federal grand jury has charged Vernon Wilson, former Chief Deputy of the Washington County, Mo., Sheriff’s Department, in a six-count indictment stemming from four separate incidents in which Wilson allegedly assaulted inmates or caused the assault of inmates in the Washington County Jail in the summer and fall of 2005, the Justice Department today announced. The indictment charges Wilson with felony civil rights violations and with making false statements to the F BI.
According to the indictment, on July 27, 2005, Wilson caused an inmate, identified in the indictment by the initials J.T., to be assaulted when he placed J.T. in a cellblock that housed an inmate whom Wilson knew was dangerous and would likely assault J.T. On Aug. 14, 2005, Wilson repeatedly slapped another inmate, identified in the indictment by the initials J.G., causing J.G.’s head to hit a concrete wall, according to the indictment. The indictment also alleges that on Sept. 29, 2005, Wilson caused an inmate, identified in the indictment by the initials G.G., to be assaulted when he allowed G.G. to remain in a cellblock that housed the same inmate who had assaulted J.T. several weeks before. The indictment further alleges that Wilson repeatedly slapped an inmate, identified in the indictment by the initials W.H., causing W.H.’s head to hit a concrete wall. The indictment also alleges that the assaults resulted in bodily injury to all four inmates.
The indictment also alleges that Wilson lied to a special agent of the FBI.
"Law enforcement officers are the first line of defense for the U.S. Constitution," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Civil Rights Division and the U.S. Department of Justice will aggressively prosecute any person who abuses his or her official authority by deliberately subjecting persons in his or her custody to physical assaults."
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
If convicted, Wilson faces a maximum penalty of 40 years in prison for the civil rights charges and 10 years in prison for the false statement charges.
On July 14, 2010, Wilson’s daughter, Valeria Wilson Jackson, a former corrections officer at Washington County Jail, who worked under her father at the time of these alleged offenses, pleaded guilty in U.S. District Court in St. Louis to one count of obstruction of justice for intentionally misleading the FBI about her role in one of the assaults at the jail.
This case is being investigated by the FBI’s St. Louis office and is being prosecuted by Civil Rights Division Trial Attorneys Patricia Sumner and Fara Gold.
Wednesday 14 July 2010
Two Individuals Plead Guilty to Engaging in Child Exploitation EnterpriseRead the Press Release
WASHINGTON – Two individuals pleaded guilty for their participation in an international group of child pornography collectors who used a social networking site to share thousands of sexually explicit images, announced Assistant Attorney General Lanny A. Breuer for the Criminal Division and Acting U.S. Attorney Robert Cessar for the Western District of Pennsylvania.
Ryan Chiles, of Hampton, Va. , pleaded guilty today in federal court in Pittsburgh before U.S. District Court Judge Arthur A. Schwab to one count of engaging in a child exploitation enterprise. Stephen Sims, of Palm Springs, Calif., pleaded guilty yesterday before Judge Schwab to one count of engaging in a child exploitation enterprise. Information presented during the plea hearings established that Chiles, 21, and Sims, 56, engaged in a child exploitation enterprise from Jan. 1, 2007, to Sept. 22, 2009. Specifically, Chiles, Sims and others distributed images and videos of children being sexually abused to other members of an international group that had restricted membership and was formed on a social networking website. Members of the group distributed to one another thousands of sexually explicit images and videos of children, many of which graphically depicted prepubescent, male children, including some infants, being sexually abused and sometimes sodomized or subjected to bondage.
Sentencing for Sims has been set for Feb. 4, 2011, and sentencing for Chiles has been set for Feb. 11, 2011. Chiles and Sims each face a mandatory minimum sentence of 20 years in prison and a maximum sentence of life in prison, as well as the possibility of lifetime supervised release. Chiles and Sims also face a fine of up to $250,000.
These cases were 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.
U.S. Immigration and Customs Enforcement (ICE) and the High Tech Investigative Unit of CEOS conducted the investigation that led to the prosecution of Chiles and Sims. CEOS Trial Attorney Barak Cohen and Assistant U.S. Attorney Craig W. Haller prosecuted the cases.
Mcwane Inc. Agrees to Resolve Environmental Violations at Manufacturing Facilities in 14 StatesRead the Press Release
WASHINGTON— McWane Inc., a national cast iron pipe manufacturer headquartered in Birmingham, Ala., has agreed to pay $4 million to resolve more than 400 violations of federal and state environmental laws, the Justice Department and the U.S. Environmental Protection Agency (EPA) announced today. The settlement, filed in federal court today in Birmingham, Ala., covers 28 of McWane’s manufacturing facilities in 14 states and also requires the company to perform seven environmental projects valued at $9.1 million.
The $4 million civil penalty will be divided among the United States, Alabama and Iowa. The environmental projects McWane will perform address storm water contamination at numerous locations; reduce mercury emissions in Provo, Utah, and Tyler, Texas; reduce volatile organic compounds (VOCs) emissions in Bedford, Ind., and Anniston, Ala.; and enhance air quality in Coshocton, Ohio. Additionally, McWane has already undertaken corrective measures to resolve the violations, at a cost of more than $7.6 million.
The settlement resolves civil violations during the past decade of the Clean Air Act the Clean Water Act, the Resource Conservation and Recovery Act, the Emergency Planning and Community Right-to-Know Act, the Toxic Substances Control Act, the Safe Drinking Water Act, and the Comprehensive Environmental Response, Compensation and Liability Act, as alleged by the United States, Alabama and Iowa in the complaint.
McWane manufactures cast iron pipes, valves, fittings, fire hydrants, propane and compressed air tanks and other similar products. As a result of its manufacturing processes, McWane emits pollutants, such as particulate matter, VOCs and mercury at various facilities. Mercury is a known neurotoxin and exposure to it has been linked to adverse human health effects, particularly neurological disorders. VOCs include a variety of chemicals, some of which may have short- and long-term adverse health effects. Particulate matter can aggravate lung diseases, cause asthma attacks and may increase susceptibility to respiratory infections. The environmental projects included in the settlement will result in reduction of more than four million pounds of pollutants annually. The corrective measures and supplemental environmental projects included in the McWane settlement will benefit communities in North Birmingham and Anniston with environmental justice concerns.
As part of the settlement, the United States also required McWane to develop and implement a corporate-wide environmental management system (EMS) to promote environmental compliance, achieve pollution prevention and enhance overall environmental performance. The EMS was implemented prior to today’s filing and is now complete. The agreement requires McWane now to conduct an audit of the EMS to evaluate the adequacy of the system. In addition, McWane has modified its corporate-wide stormwater pollution prevention plan and will develop or upgrade facility-specific plans as part of the agreement.
At its Coshocton, Ohio, iron foundry, McWane will operate a cupola furnace, which is a particulate emissions source, in accordance with its newly-revised Clean Air Act Title V permit. The consent decree also establishes operating conditions and emission limits for the cupola furnace, and is separately enforceable by the EPA.
In the past, multiple McWane divisions and facilities have been the subject of criminal investigations that have resulted in five federal prosecutions. As a result, the company has paid more than $25 million in criminal fines and penalties and spent approximately $5 million on environmental projects. Company executives have been sentenced to prison terms of up to 70 months and the company and certain executives have been placed on probation.
"This is a comprehensive settlement that brings McWane into full environmental compliance at 28 facilities nationwide, and imposes a penalty on the company for its civil environmental violations at those facilities over the past decade," said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division. "As a result of this agreement, McWane has completely re-engineered its environmental management systems to ensure that it remains in compliance, and has committed over $9 million to environmental projects that will remove significant amounts of pollutants from the environment and benefit the surrounding communities."
"In addition to meeting its environmental obligations and taking corrective measures, McWane will go beyond compliance and take action to protect communities that are at the greatest risk for air and water pollution." said Cynthia Giles, assistant administrator for EPA's Office of Enforcement and Compliance Assurance. "The additional environmental projects included in the settlement will protect children, pregnant mothers, local residents and workers from harmful pollution and are an example of securing public health and environmental benefits in addition to those achieved by compliance with our nation’s environmental laws."
The proposed settlement agreement, lodged in the U.S. District Court for the Northern District of Alabama, Birmingham Division, is subject to a 30-day public comment period and approval by the federal court. A copy of the consent decree is available on the Justice Department website at www.justice.gov/enrd/Consent_Decrees.html.
Massachusetts Man Sentenced to 70 Months in Prison for Child Pornography ChargesRead the Press Release
WASHINGTON – Douglas Carruthers, 46, formerly of Rockland, Mass., was sentenced today to 70 months in prison and eight years of supervised release following his prison term for child pornography offenses, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Carmen M. Ortiz for the District of Massachusetts.
Carruthers was sentenced by U.S. District Court Judge Richard G. Stearns. On March 22, 2010, Carruthers pleaded guilty to five counts of transportation of child pornography and one count of possession of child pornography. This case arose from an investigation by Swiss federal and local police of an individual in Switzerland who was sharing and trading child pornography using the Internet with individuals in the United States.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 against Carruthers was prosecuted by Assistant U.S. Attorney David G. Tobin of the District of Massachusetts and CEOS Trial Attorney Bonnie L. Kane of the Criminal Division. The case was investigated by the Massachusetts State Police; the Plymouth County, Mass., Sheriff's Department; Marshfield, Mass., Police Department; U.S. Immigration and Customs Enforcement; and the Albemarle County, Va., Police Department.
Justice Department Signs Agreement with Milton, Wash., to Ensure Access for People with DisabilitiesRead the Press Release
WASHINGTON - The Justice Department today announced a settlement agreement with the city of Milton, Wash., under the Americans with Disabilities Act (ADA) to improve access to city parks and recreational activities for persons with disabilities. The agreement resolves a complaint alleging that the city’s parks and annual parade and festival are not accessible to individuals with mobility disabilities.
“This agreement will ensure that individuals with disabilities living in Milton will have improved access to their parks and recreational activities,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “I commend city officials for making this commitment to their residents with disabilities. In this year when we will celebrate the 20th anniversary of the ADA, it is time for all state and local governments throughout the country, no matter what size, to make a renewed commitment to achieving full ADA compliance and ensuring the civil rights of individuals with disabilities.”
Under the agreement announced today, the city of Milton will take several important steps to improve access for individuals with disabilities, such as:
· Making physical modifications to the city’s two parks so that parking, routes to park amenities, and park amenities (e.g., picnic tables, tennis courts, basketball courts, baseball fields and drinking fountains) are accessible to individuals with disabilities. The agreement specifies which modifications will be made at each park.
· Ensuring that persons with disabilities will have equal access to restroom facilities in Triangle Park, the city’s largest park. Because the city raised concerns about the cost of tearing down the existing inaccessible restroom and replacing it with a new one, the agreement details a variety of ways for the city to meet the ADA requirements for providing restroom access to persons with mobility disabilities in the short and long term, with department approval, without unnecessarily large expenditures.
· Providing accessible playground equipment at Triangle Park so children with mobility disabilities will have an equal opportunity to enjoy the playground.
· Making modifications to city policies and practices for the annual summer parade and festival.
Located between Seattle and Tacoma, Wash., Milton, has an estimated population of approximately 6,000. According to census data, one in every four residents of Milton is an individual with a disability.
Today’s settlement agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The department will actively monitor the city’s compliance with the agreement. The agreement will remain in effect for three years or until the department has confirmed that all required actions have been completed, whichever is later.
People interested in finding out more about the ADA, today’s agreement with Milton or the ADA best practices tool kit for state and local governments can access the ADA website at www.ada.gov or call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
Justice Department Settles Remainder of Voter Registration Case with State of New York for Violating Rights of Students with DisabilitiesRead the Press Release
WASHINGTON – The Justice Department today announced a court-approved consent decree which resolves a lawsuit against the state of New York and its public university systems for their failure to provide voter registration services at offices serving students with disabilities at each public university and college campus in New York State.
"The voting process begins with registration and it is essential that all citizens, including individuals with disabilities, have unfettered access to voter registration opportunities," said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. "This decree ensures that college and university students with disabilities throughout New York State will be able to register to vote as easily and conveniently as possible."
The lawsuit, filed on April 15, 2004, in the U.S. District Court in Syracuse, N.Y., alleged that the state violated Section 7 of the National Voter Registration Act (NVRA), which in part requires that voter registration services be provided at offices that provide state-funded programs primarily for persons with disabilities. The United States asserted the NVRA applied to disability services offices at New York’s public higher education campuses and that the state violated the NVRA by failing to provide voter registration services to students with disabilities at those offices. In March 2010, the court agreed with the United States and issued an order upholding the United States’ position. The court gave the parties time, however, to negotiate an appropriate remedy to the violation, which resulted in the court-approved consent decree announced today.
Under the consent decree, by the start of the 2010-2011 school year, disability services offices at each public university and college campus in the state will provide voter registration services to students with disabilities. The decree also provides a program for training, oversight, reporting and publicity to ensure continued NVRA compliance at New York’s public universities and colleges.
Congress enacted the NVRA in 1993 in part to enhance citizen participation in elections, including those citizens with disabilities who, because of their disabilities, faced discriminatory barriers to voter registration.
Complaints about discriminatory voting practices may be reported to the Justice Department at 1-800-253-3931. More information about the NVRA and other federal voting laws is available on the Department of Justice website at www.usdoj.gov/crt/voting . Additional information regarding other laws regarding citizens with disabilities may be found at www.ada.gov.
Justice Department Settles Lawsuit Against California Department of Corrections and Rehabilitation to Enforce the Employment Rights of Former Air Force ReservistRead the Press Release
WASHINGTON - The Justice Department announced today that it has reached a consent decree with the California Department of Corrections and Rehabilitation (CDCR) that, if approved by the U.S. District Court, will resolve the department’s complaint filed in May 2009, alleging violations of the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).
The department’s complaint, filed in the U.S. District Court in Sacramento, Calif., alleged that while on active duty, Air Force reservist Dany Felix aggravated a pre-existing back injury and also sustained a new back injury, resulting in his being honorably discharged. According to the complaint, when Felix sought reemployment, the CDCR violated USERRA by failing to promptly and properly reemploy him. The consent decree obtained by the department requires the CDCR to pay Felix a monetary award of $43,750 and requires the CDCR to comply with all of USERRA’s provisions. Under the terms of the consent decree, the CDCR has adopted a revised policy regarding reemployment of persons with service-connected injuries or limitations and the CDCR will provide employees with training regarding USERRA’s reemployment requirements.
"USERRA protects the reemployment rights of the men and women who serve our country, including service members who are injured during service and require an accommodation from their employer," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The department is committed to vigorously enforcing those rights."
The Department of Labor’s Veterans’ Employment and Training Service investigated and attempted to resolve Felix’s USERRA complaint before referring it to the Department of Justice for litigation.
Both the Departments of Justice and Labor place a high priority on the enforcement of service members’ rights under USERRA. "Our two agencies work closely together to ensure that our service members are treated right when they return from service," said Ray Jefferson, Assistant Secretary of Labor for Veterans’ Employment and Training.
Additional information about USERRA can be found on the Justice Department website at www.servicemembers.gov and www.justice.gov/crt/emp , as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra
Justice Department Announces a Comprehensive Agreement with New York to Remedy Violations and Ensure Constitutional Rights at Four Juvenile Justice FacilitiesRead the Press Release
WASHINGTON– The United States has entered into a comprehensive agreement with the State of New York and the New York State Office of Children and Family Services (OCFS) that resolves previous findings of unconstitutional conditions at four juvenile justice facilities, the Justice Department announced today. The agreement resolves the United States’ investigation, which began in 2007, of the Finger Lakes Residential Center and Lansing Residential Center in Lansing, N.Y., and the Tryon Residential Center and Tryon Girls Center in Johnstown, N.Y. As a result of its investigation, the United States concluded that the facilities systematically violated juveniles’ constitutional rights in the areas of protection from harm and mental health care.
The agreement was filed today simultaneously with a complaint. The settlement agreement is pending approval by a federal judge in U.S. District Court in Albany, N.Y. The agreement contains comprehensive provisions on protection from harm, use of restraints, use of force, reporting and investigation of incidents, mental health care, use of psychotropic medications, training, quality assurance, and improved policies, procedures, and practices.
"It is New York’s fundamental responsibility to protect juveniles in its custody from harm and to uphold their constitutional rights," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "We have worked cooperatively with New York officials to craft an agreement to ensure that the constitutional rights of juveniles at the four facilities are protected, and we commend New York and the New York State Office of Children and Families for their willingness to work aggressively to remedy these problems."
The United States’ 2009 findings concluded that staff at the facilities consistently and excessively used a disproportionate degree of force to gain control of youths in nearly every type of situation, leading to concussions, broken or knocked out teeth, spiral fractures, and other injuries. Further, staff at the facilities overused restraints often causing severe injury to youths, including initiating facedown restraints through "hooking and tripping," a process where staff grab a youth’s arms and trip his or her feet from underneath, causing the youth to fall face-first on the ground. Additionally, the facilities consistently failed to investigate uses of force and failed to properly discipline staff found to have used excessive force.
In the area of mental health care, the United States found that the facilities failed to provide adequate behavioral management programs and treatment plans. Residents’ substance abuse or dependence problems were generally ignored in their mental health services and programming, staff were not equipped to address youths in mental health crisis, and psychotropic medications were prescribed without appropriate monitoring of potentially dangerous side effects.
Under the agreement, New York will implement detailed remedial measures to ensure that juveniles are safe and receive the services necessary to meet their constitutional rights. This includes restrictions limiting the use of restraints to situations when all other techniques have failed and the youth poses a danger to him or herself, and requiring the immediate assessment of medical staff if prone restraints are used. The agreement also severely restricts the use of force on youths, including express prohibitions on using chokeholds and "hooking and tripping" techniques. The agreement also includes provisions directed at conducting appropriate investigations of excessive force allegations, as well as provisions aimed at improving policies; procedures and practices to protect inmates from harm by providing adequate mental health care; ensuring that the use of psychotropic medication is safe and clinically appropriate; addressing substance abuse and dependence issues; and instituting comprehensive employee training requirements.
Compliance with the agreement will be overseen by two jointly selected subject matter experts to monitor compliance with the settlement agreement. These monitors will conduct compliance review tours and will file a comprehensive monitoring report with the court within 60 days after each compliance review tour. The first compliance review tour will occur in approximately five to six months, and will occur every six months thereafter.
Additional information about the Special Litigation Section of the Justice Department’s Civil Rights Division can be found at www.usdoj.gov/crt/split/index.html .
Download the documents:
Complaint (PDF)
Joint Motion to Enter Settlement Agreement (PDF)Justice Department Announces Recipients of Annual Project Safe Neighborhoods Achievement AwardsRead the Press Release
WASHINGTON – The Department of Justice today announced the 24 recipients of the annual Project Safe Neighborhoods (PSN) Achievement Awards in a ceremony hosted by Acting Deputy Attorney General Gary G. Grindler at the PSN national conference in New Orleans. Recipients were chosen from a large pool of nominations submitted by U.S. Attorneys’ Offices across the nation.
“At its core, Project Safe Neighborhoods is built upon the commitment and personal integrity of individuals like those we honor today. This year’s awards celebrate and highlight the work that has been done that has truly made a difference,” said Acting Deputy Attorney General Grindler. “Led by our U.S. Attorneys, federal, state, tribal and local law enforcement and prosecutors are on the frontlines on the streets of America every day. We thank you for your service, and honor your success.”
The recipients of the 2010 Project Safe Neighborhoods Achievement Awards include the following:
· The PSN Maine Task Force received the Outstanding Media Outreach Campaign Award for its Gun Sellers Awareness Campaign.
· The Western District of Tennessee Law Enforcement Coordination Committee received the Outstanding Local Training Program Award for developing and administering a series of training programs designed to improve the quality of officers' criminal investigations, case documentation and courtroom presentations.
· Recipients of this year’s Outstanding Individual Contribution to a Violent Crime Task Force Award include Law Enforcement Coordinator for the District of New Mexico Ronald P. Lopez, Assistant Chief Deputy U.S. Marshal for the Northern District of Texas Trent Touchstone and Special Assistant U.S. Attorney for the District of Puerto Rico Guillermo Gil.
· The Tampa/Hillsborough Comprehensive Anti-Gang Task Force from the Middle District of Florida and the Eastern District of North Carolina PSN Partnership Task Force received the Outstanding Overall Partnership/Task Force Award.
· This year’s Outstanding Local Prosecutor ' s Office Award was awarded to the Los Angeles City Attorney' s Office in the Central District of California, the Oklahoma County District Attorney' s Office in the Western District of Oklahoma and Special Assistant U.S. Attorney for the Western District of Washington C. Andrew Colasurdo.
· Recipients of this year’s Outstanding Juvenile Program Award include the Springfield Salvation Army Bridging the Gap Program in the District of Massachusetts and the Mercer County PSN Juvenile Component in the District of New Jersey.
· The San Francisco Police Department received the Outstanding Local Police Department Involvement Award for its innovative violence reduction strategy designed to direct a concerted enforcement effort in “hot spots” in each of the 10 police districts in the city. The department reduced homicides by 54 percent and shootings by 34 percent in a single year.
· The Outstanding Gun Crime Investigation Award was awarded to Operation Gideon in the District of Arizona, Operation Glass Hotel in the District of Columbia, Operation Statesboro Blues in the Southern District of Georgia, and Operation City Nights in the Eastern District of Missouri.
· Operation Augusta Ink in the Southern District of Georgia, the Western District of North Carolina MS-13 Investigation and the FBI Safe Streets Task Force in Newport News, Va., received the award for Outstanding Gang Investigation.
· This year’s Outstanding Community Involvement Award was awarded to the Youth Intervention Network in the Northern District of California for its comprehensive initiative designed to build and support a high performing and robust community working together to serve youth identified as likely to commit or become victims of violent crimes without prevention assistance.
· Hartford Neighborhood Centers Inc. in the District of Connecticut and the Miami-Dade Reentry Task Force received the Outstanding Reentry Initiative Award.
· Dr. Anthony A. Braga, a Senior Research Associate at Harvard University’s John F. Kennedy School of Government, received the Outstanding Service by a Research Partner Award for providing research and program development assistance to the Massachusetts PSN Program for more than eight years.
To find out about more about PSN and its local programs, visit the PSN website at www.psn.gov.
Georgia Man Sentenced to 20 Years in Prison for Production of Child Pornography Using Hidden Videos in Store BathroomsRead the Press Release
WASHINGTON - Jeffrey Alan Wasley of Kennesaw, Ga., was sentenced today to 20 years in prison for producing child pornography through the surreptitious videotaping of young boys using public restrooms in Atlanta-area establishments, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney for the Northern District of Georgia Sally Quillian Yates.
Wasley pleaded guilty to production of child pornography before U.S. District Court Judge Clarence Cooper on March 16, 2010. According to court documents and proceedings, Wasley was a church youth counselor and former performing magician who followed young boys in retail stores and children’s attractions. Wasley admitted that when he observed young boys entering a restroom unaccompanied by an adult, he would also enter and secretly videotape the boys.
As described in court documents, in July 2008, Wasley victimized five and seven year-old brothers in the men’s restroom of a store in Kennesaw, according to information filed with the court and discussed at the plea hearing. These boys reported Wasley’s conduct to their mother, who in turn notified store security. According to court documents, store security and Cobb County police were able to identify a likely suspect from store surveillance footage. When store security observed this same individual in the store several days later, they followed him to his car and noted his car’s tag number, which was linked to Wasley. A subsequent search of Wasley’s home yielded a computer containing six videos Wasley admitted he produced of boys in public restrooms, along with thousands of additional images of child pornography that Wasley had downloaded from the Internet.
This case was investigated by the U.S. Secret Service and the Cobb County Police Department. This case was prosecuted by Assistant U.S. Attorneys Robert McBurney and Francey Hakes of the U.S. Attorney’s Office for the Northern District of Georgia and Trial Attorney Andrew McCormack of the Criminal Division’s Child Exploitation and Obscenity Section.
Former Corrections Officer Pleads Guilty to Obstruction of JusticeRead the Press Release
WASHINGTON – A former corrections officer for the Washington County Sheriff’s Department in Potosi, Mo., pleaded guilty in U.S. District Court in St. Louis to one count of obstruction of justice, admitting that she intentionally misled law enforcement officials about her role in the assault of an inmate housed in the Washington County Jail (WCJ), the Department of Justice today announced .
Valeria Wilson Jackson pleaded guilty to charges arising out of an incident that occurred at the WCJ on Sept. 29, 2005, when an inmate, identified in court documents by the initials G.G., was severely beaten by other inmates and suffered significant injuries, including a broken orbital bone. Today in court, Jackson admitted that she placed G.G., who she claimed had annoyed her and called her a name, in a cellblock with an inmate whom Jackson knew to be violent. Wilson Jackson then encouraged the inmate to assault G.G. In addition, Jackson admitted that she intentionally misled a special agent of the FBI when she denied knowing at the time that the inmate was likely to assault G.G. and when she denied encouraging the inmate to assault G.G.
"When officers use their position to instigate violence and then make false statements to investigating authorities, our system of justice suffers," said Assistant Attorney General for the Civil Rights Division Thomas E. Perez. "The Justice Department will not tolerate abuses of official authority by law enforcement officers."
Obstruction of justice charges carry a maximum penalty of 20 years in prison.
This case was investigated by the FBI’s St. Louis office and is being prosecuted by the Department of Justice’s Civil Rights Division Trial Attorneys Patricia Sumner and Fara Gold.
Forfeiture Complaint Seeks to Recover Bribery Proceeds Paid to Former Taiwan President and His FamilyRead the Press Release
WASHINGTON – Today, the U.S. government filed civil forfeiture complaints against properties in New York and Virginia that represent a portion of illegal bribes paid to the former president of Taiwan and his wife, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and Director John Morton of U.S. Immigration and Customs Enforcement (ICE). The forfeiture actions were filed in U.S. District Court in the Southern District of New York and the Western District of Virginia.
According to the complaints, in 2005 and 2006, Yuanta Securities Co. Ltd., (YSC) was attempting to increase its ownership share of Fuhwa Financial Holding Company Limited (FFHC) on Taiwan. According to the complaints, YSC paid a bribe of 200 million New Taiwan dollars, or approximately $6 million U.S. dollars, to then-first lady Wu Sue-Jen, to ensure that the authorities on Taiwan would not interfere with its acquisition of additional shares and to attempt to establish a relationship with the head of the authorities on Taiwan.
“This case is another good example of the department’s resolve not to allow criminals to profit from their crimes,” said Assistant Attorney General Breuer. “As we saw in this instance, international cooperation is often the key to effective enforcement.”
“This serves as a warning to those corrupt foreign officials who abuse their power for personal financial gain and then attempt to place those funds in the U.S. financial system,” said John Morton, Homeland Security Director for ICE. “ICE’s Homeland Security Investigations agents will continue to work with our law enforcement partners both here and abroad to investigate and prosecute those involved in such illicit activities and hold corrupt foreign officials accountable by denying them the enjoyment of their ill gotten gains.”
According to the complaints, Wu Sue-Jen orchestrated the movement of funds from Taiwan by using shell companies, created in the British Virgin Islands and the Island of Nevis, which held Swiss bank accounts controlled by her son, Chen Chih-Chung, aka Bryan Chen, and his wife Huang Jui-Ching. According to the complaints, a portion of these bribe proceeds were then transferred from Switzerland to the United States and used to purchase a condominium in Manhattan and a house in Keswick, Va. According to the complaints, Chen Chih-Chung and Huang Jui-Ching wanted to purchase the properties while concealing their ownership in them.
In August 2008, Chen Chih-Chung and Huang Jui-Ching returned to Taiwan to face money laundering charges based on their participation in this and other schemes. Both were subsequently convicted. Chen Chih-Chung is currently sentenced to 14 months in prison and Huang Jui-Ching is sentenced to 12 months in prison. Both are also currently under indictment in Taiwan on additional money laundering charges.
The former president and his wife were convicted in Taiwan on Sept. 11, 2009, for bribery, embezzlement and money laundering. They are currently sentenced to 20 years in prison. Their convictions were upheld on appeal and are now pending before the Supreme Court in Taiwan. Wu Sue-Jen previously pleaded guilty to other money laundering and forgery charges and was also convicted of perjury. The former president and his wife are also currently under indictment in Taiwan for additional alleged acts of graft and money laundering.
The Department of Justice and ICE worked closely with the Taiwan Supreme Prosecutors Office, Special Investigation Division to gather and exchange evidence regarding the money laundering that took place in this case to support the forfeiture of these funds.
The case is being prosecuted by Deputy Chief Linda M. Samuel of the Criminal Division’s Asset Forfeiture and Money Laundering Section. The investigation was conducted by the Foreign Corruption Investigations Group and the Asset Identification and Removal Group of ICE’s Homeland Security Investigations, Miami field office, in cooperation with prosecutors in Taiwan. Indispensible assistance was also provided by the ICE Attaché in the Hong Kong.
Tuesday 13 July 2010
Six New Orleans Police Officers Indicted in Danziger Bridge CaseRead the Press Release
WASHINGTON –Six officers with the New Orleans Police Department (NOPD) were charged today in connection with the federal investigation of a police-involved shooting on the Danziger Bridge in the days after Hurricane Katrina, the Justice Department announced today. The incident resulted in the death of two civilians and the wounding of four others.
The indictment charges four officers – Kenneth Bowen, Robert Gisevius, Robert Faulcon and Anthony Villavaso – in connection with the shootings, and charges those four officers and two supervisors – Arthur “Archie” Kaufman and Gerard Dugue – with helping to obstruct justice during the subsequent investigations.
The indictment alleges that officers Bowen, Gisevius, Faulcon and Villavaso open fired on an unarmed family on the east side of the bridge, killing 17-year- old James Brissette, and wounding Susan Bartholomew, 38; Leonard Bartholomew III, 44; the Bartholomew’s daughter, Lesha, 17; and the Bartholomew’s nephew, Jose Holmes, 19. The Bartholomews’ 14-year-old son ran away from the shooting and was fired at, but was not injured.
The second shooting occurred minutes later on the west side of the bridge, where officers shot at brothers Lance and Ronald Madison, killing Ronald, a 40-year-old man with severe mental disabilities. The indictment alleges Faulcon shot Ronald Madison in the back as Ronald ran away. Bowen is charged with stomping and kicking Ronald Madison while Ronald was wounded, but not yet dead. Ronald later died at the scene.
“As our investigation of the Danziger Bridge incident shows, the Justice Department will vigorously pursue anyone who allegedly violated the law,” said Attorney General Holder. “Put simply, we will not tolerate wrongdoing by those who have sworn to protect the public.”
“In the days following Hurricane Katrina, the people of New Orleans were relying upon law enforcement to protect publ ic safety. The officers indicted today are accused of abusing their power and violating their public trust. Today’s indictment exemplifies the department’s commitment to aggressively prosecute any officer who violates the law either by engaging in misconduct or a conspiracy to deny justice,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
“Today’s indictment should serve as compelling evidence of our unswerving and unconditional commitment to achieve essential goals: to achieve true justice for any victims of the charged killings, shootings and abuse on the Danziger Bridge, and the alleged corrupt cover-up that followed; to unmask and bring to justice those officers who according to the indictment abused their power in committing violent crimes against the unarmed citizens they were sworn to protect; to restore the trust in the men and women of law enforcement who do serve the people and honor the badge; and to make certain that no one should ever have to fear those whose job it is to protect them,” said Jim Letten, U.S. Attorney for the Eastern District of Louisiana.
“The charges announced in today’s indictment show the commitment by the FBI to hold individuals who break the law accountable, regardless of their positions in a community or the circumstances under which the crimes occurred,” said Kevin L. Perkins, Assistant Director of the FBI’s Criminal Investigative Division.
“One year ago, FBI New Orleans made a commitment to dedicate all the necessary resources to ensure this matter was thoroughly and fairly investigated to a logical conclusion. Today’s indictments indicate that we continue to honor that commitment,” said David W. Welker, Special Agent in Charge of the FBI’s New Orleans Field Office.
The four officers charged with killing civilians face maximum penalties of life in prison or the death penalty. The officers face additional penalties for the remaining counts, which include charges related to a conspiracy to cover up what had happened on the bridge, and conspiracies to file charges against two of the victims, Lance Madison and Jose Holmes, on the basis of false evidence.
According to the indictment, officers at the scene of the shooting arrested Lance Madison and charged him with eight counts of attempting to kill police officers. Officers collected no guns or shell casings on the day of the shooting, and 30 casings they collected more than a month later were allegedly fired by officers rather than civilians. Madison was held in jail for three weeks, but was eventually released without indictment.
The indictment accuses Kaufman and Dugue of joining the other four defendants in a conspiracy to cover up what had happened on the bridge and to make the shootings appear justified. Kaufman is charged with obtaining a gun from his home and claiming to have found the gun at the bridge on the day after the shooting, and with making up witnesses and then creating statements from the fictional witnesses to help justify the shooting. Kaufman and Dugue are also accused of holding a meeting, in an abandoned and gutted out NOPD building, at which homicide sergeants instructed officers involved in the shooting to get their stories straight before giving formal audiotaped statements about the shooting.
Kaufman and Dugue, who concluded in a formal report that the shooting was justified and that Lance Madison and Jose Holmes should be arrested, are also accused of conspiring with each other and with other officers to have Madison and Holmes prosecuted on the basis of false evidence.
Kaufman faces a maximum penalty of 120 years in prison, and Dugue faces a maximum penalty of 70 years in prison.
Today’s indictment follows guilty pleas from five former NOPD officers who admitted that they participated in a conspiracy to obstruct justice and cover up what happened on Sept. 4, 2005. The officers include former Lieutenant Michael Lohman, former detective Jeffrey Lehrmann, and former Officers Michael Hunter, Robert Barrios, and Ignatius Hills.
The charges set forth in an indictment are merely accusations and the defendants are presumed innocent until proven guilty
This case, which is ongoing, is being investigated by the FBI’s New Orleans Field Office, and is being prosecuted by Deputy Chief Bobbi Bernstein and Trial Attorney Forrest Christian of the Justice Department’s Civil Rights Division, along with Assistant U.S. Attorney Julia K. Evans of the Eastern District of Louisiana.
Justice Department Sues to Bar Utah Man from Promoting Alleged False Church-based Tax Fraud SchemeRead the Press Release
WASHINGTON – The United States has asked a federal court to permanently bar a Utah man from promoting an alleged false church-based tax fraud scheme, the Justice Department announced today. The civil injunction suit against Kevin Hartshorn was filed with the U.S. District Court for the District of Utah, in Salt Lake City.
According to the government complaint, Hartshorn works as a "senior minister" for an organization called the "Church of Compassionate Service." The suit alleges that Hartshorn falsely promises members of the organization that they can legally reduce or eliminate their federal income taxes, avoid filing federal income tax returns, and put their income and assets beyond the reach of the Internal Revenue Service by becoming "ministers" in the Church of Compassionate Service.
The government complaint alleges that the Church of Compassionate Service claims its members are "ministers" who are required to take a vow of poverty, which supposedly eliminates their taxable income. The suit alleges the purported vows of poverty are false and the members continue to have access to their income notwithstanding the purported vow.
Since 2001, the Justice Department’s Tax Division has obtained more than 470 injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the Justice Department web site.
Justice Department Announces Changes in Illinois Rules Concerning English Language Learner StudentsRead the Press Release
WASHINGTON – Today, the Justice Department announced that, pursuant to its agreement with the Illinois State Board of Education (ISBE), the state has finalized administrative rules that will ensure school districts throughout Illinois provide appropriate language support services to English language learner (ELL) students until they no longer need them.
The United States previously determined that ISBE was violating the Equal Educational Opportunities Act (EEOA) because its rules and guidance did not ensure that school districts serve ELL students beyond the state’s three-year requirement for specific ELL programs. ISBE denied violating the EEOA but agreed to amend its rules and to issue guidance to make clear that ELL services must continue beyond year three until ELLs achieve English proficiency on the state’s mandated test. The amended rules, which will take effect once filed with the Illinois Secretary of State, require school districts to submit to ISBE for review and monitoring a plan outlining: the ELL services to be provided beyond year three, the qualifications of the staff providing such services, and the resources and materials needed to support these services.
"All English Language Learner students have the right to appropriate language support services until they achieve English proficiency, and when educational agencies terminate such services prematurely, they deny these students the equal educational opportunity that federal law guarantees them," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "We applaud the Illinois State Board of Education for making this right clear through its amended rule."
The enforcement of the Equal Educational Opportunities Act of 1974 at both the state and district levels is a top priority of the Justice Department’s Civil Rights Division.
Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt .
Detroit-area Physical Therapist and Physician’s Assistant Plead Guilty in Medicare Home Health Fraud SchemeRead the Press Release
WASHINGTON – Detroit-area residents Faisal Chaudry and Guy Ross pleaded guilty today in U.S. District Court in Detroit for their participation in a fraudulent Medicare home health scheme, the Departments of Justice and Health and Human Services (HHS) announced. Also today, a Detroit-area patient recruiter was sentenced to 2 years in prison for his role in a separate Medicare fraud scheme.
Chaudry, 32, pleaded guilty before U.S. District Court Judge Denise Page Hood in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Ross, 49, pleaded guilty before Judge Hood to one count of conspiracy to receive health care kickbacks. At sentencing, scheduled for Oct. 21, 2010, Chaudry faces a maximum penalty of 10 years in prison and a $250,000 fine; Ross faces a maximum penalty of five years in prison and a $250,000 fine.
According to the plea documents, Chaudry was a physical therapy assistant who worked for All American Home Care Inc., and other affiliated entities. All American purported to provide home health services, including physical therapy services, to Medicare beneficiaries. Chaudry admitted that he signed documents, including therapy visit and revisit notes, that purported to document home health visits to Medicare beneficiaries. The documents were then used by All American to bill Medicare. Chaudry admitted in court documents that a large majority of these home health visits never occurred. Chaudry also admitted that he was paid approximately $45 by the owners of All American for each document he signed. According to court documents, Chaudry signed documents used to justify approximately $917,394 in home health claims by All American for patients he either never saw or for whom home health services were medically unnecessary. Chaudry admitted that he knew the files he helped falsify were used to justify fraudulent billings to Medicare.
Ross, a medical assistant, admitted that he received kickbacks from the owners and operators of Patient Choice Home Healthcare Inc., and All American in exchange for referring home health patients to those entities. Ross admitted to receiving $500 per patient, paid either by check or in cash, in exchange for providing co-conspirator Mohammed Shahab with Medicare beneficiary information for various patients he recruited. After paying the kickbacks to Ross, Shahab, an owner of Patient Choice and All-American, billed Medicare for home health visits purportedly made to the beneficiaries recruited by Ross. During the course of the conspiracy, Ross referred 21 patients to Patient Choice and All American. Shahab pleaded guilty in February 2010 to health care fraud charges in connection with this case.
According to court documents, Ross also admitted to engaging in a similar scheme with a home health agency called Visiting Nurses Services (VNS), also a home health agency that purportedly provided physical therapy services. Ross admitted he accepted money in exchange for providing patient referrals to VNS. According to court documents, Ross referred approximately 80 patients to VNS and VNS submitted claims for $300,050 as a result of those referrals. In total, Ross’s kickback arrangements with these home health agencies resulted in $472,623 in improper benefits paid by Medicare to the home health agencies.
In a separate health care fraud case in Detroit, patient recruiter Dwight Armstrong was sentenced by U.S. District Court Judge Lawrence Zatkoff to serve two years in prison and three years of supervised release. Armstrong was also ordered to pay $250,000 in restitution. Armstrong, 32, pleaded guilty on April 8, 2010, to one count of conspiracy to commit health care fraud. According to the plea documents, Armstrong began recruiting patients for Careplus LLC in approximately June 2008. Armstrong admitted that he paid kickbacks to the Medicare beneficiaries he recruited, and later transported, to Careplus using money provided by the owners and operators of Careplus. Armstrong admitted he kept part of the funds he received as a kickback for referring the Medicare beneficiaries he recruited. According to court documents, the owners and operators of Careplus typically paid $100-$150 per patient Armstrong recruited, with Armstrong retaining $50-$75 of that amount as a kickback for the referral. Armstrong also admitted he instructed the beneficiaries he recruited, based on instructions from the owners and operators of Careplus, to claim they had certain symptoms to trigger medically unnecessary tests.
Today’s guilty pleas and sentencing were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
These cases were prosecuted by Assistant Chief John K. Neal and Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section. The cases were investigated by the FBI and HHS-OIG, and were brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 635 individuals who collectively have falsely billed the Medicare program for more than $1.4 billion. In addition, HHS’s 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.
Monday 12 July 2010
Justice Department to Monitor Elections in AlabamaRead the Press Release
WASHINGTON – The Justice Department announced today that it will monitor the primary runoff elections on July 13, 2010, in Barbour, Lee and Russell Counties Ala. , to ensure compliance with the Voting Rights Act of 1965. The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group.
Under the Voting Rights Act, the Justice Department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the Attorney General or by a federal court order. Federal observers will be assigned to monitor polling place activities in Barbour and Russell Counties based on the attorney general’s certification. The observers will watch and record activities during voting hours at polling locations in these jurisdictions, and Civil Rights Division staff members will coordinate the federal activities and maintain contact with local election officials.
In addition, Justice Department personnel will monitor the election in Lee County for compliance with the Voting Rights Act.
Each year, the Justice Department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department ’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Friday 9 July 2010
Ship Management Corp. to Pay $4 Million Penalty for Concealing Deliberate PollutionRead the Press Release
WASHINGTON – Irika Shipping S.A., a ship management corporation registered in Panama and doing business in Greece, pleaded guilty on July 8, 2010 , before Maryland U.S. District Court Judge Frederick J. Motz, to felony obstruction of justice charges and violation of the Act to Prevent Pollution from Ships related to concealing deliberate vessel pollution from the M/V Iorana , a Greek flagged cargo ship that made port calls in Baltimore, Tacoma, Wash., and New Orleans.
According to the multi-district plea agreement arising out of charges brought in the District of Maryland, Western District of Washington, and Eastern District of Louisiana, Irika Shipping has agreed to pay a $4 million total penalty, be placed on probation for a maximum period of five years, and be subject to the terms of an Enhanced Environmental Compliance Program.
The proposed $4 million penalty includes a $3 million criminal fine and $1 million in organizational community service payments that will fund various marine environmental projects. In Maryland, $750,000 will go to the congressionally established National Fish & Wildlife Foundation and be used for Chesapeake Bay projects. In Washington, $125,000 will go to environmental projects in and around the waters of Puget Sound and the Straits of Juan De Fuca. In Louisiana, $125,000 will go toward funding habitat conservation, protection, restoration, and management projects to benefit fish and wildlife resources and habitats. Under the terms of the proposed plea agreement, Irika Shipping and its ships must also be audited by an independent firm and supervised by a court appointed monitor.
According to court documents, the investigation into the M/V Iorana was launched in January 2010 after a crew member passed a note to the Customs and Border Protection inspector upon the ship’s arrival in Baltimore alleging that the ship’s chief engineer had directed the dumping of waste oil overboard through a bypass hose that circumvented pollution prevention equipment required by law. The whistleblower’s note stated: “We are asking help to any authorities concerned about this, because we must protect our environment and our marine lives.”
“Deliberate pollution from ships, intentional falsification of records to cover up pollution, and obstruction of justice are serious crimes that will be vigorously prosecuted,” said Ignacia S. Moreno, Assistant Attorney General, Environment & Natural Resources, U.S. Department of Justice. “The Department of Justice will continue to protect human health and the environment through robust enforcement of the law.”
“Criminal prosecutions are needed to deter deliberate efforts to circumvent pollution laws,” said Rod J. Rosenstein, U.S. Attorney for the District of Maryland. “A total of $750,000 will be devoted to protecting Chesapeake Bay as a result of this prosecution,” said Rosenstein.
“This was a case of willful and deceitful pollution, and the corporation responsible is being held accountable,” said Rear Adm. “Dean” Lee, Commander of the Coast Guard’s 5th District. “This case should serve as a deterrent to those who would violate marine pollution laws.”
“Maritime laws exist in order to protect the ocean from being used as dumping grounds for oily wastes,” said David M. Dillon, Special Agent in Charge of the Environmental Protection Agency’s (EPA) criminal enforcement program in Philadelphia. “This prosecution sends a clear and deterrent message that those who cut corners and break the law will be vigorously prosecuted.”
During a Coast Guard inspection on Jan. 8, 2010, the Coast Guard obtained photographs taken on the whistleblower crew member’s cell phone showing the use of a 103-foot long “magic hose” to bypass the ship’s oily water separator. The illicit bypass system used to discharge oily waste, including sludge, was routed through the ship’s boiler blow down system where any trace of oil could be expected to be steam cleaned away. The illegal discharges were concealed in a fraudulent oil record book, a required log in which all overboard discharges are to be recorded.
In pleading guilty, Irika Shipping has admitted the following in a detailed joint factual statement:
- Approximately 23 cubic meters of oil contaminated sludge and bilge waste (approximately 6,000 gallons) were dumped overboard in December 2009 during the voyage from Gibraltar to Baltimore using the 103-foot bypass hose;
- The flanges where the bypass hose was connected were repainted before arriving in port in order to cover up tool marks caused when the bypass hose was connected and disconnected;
- The bypass was used at night, and plastic bags filled with oil soaked rags used to clean the bilge tank, which was contaminated with sludge and cleaned with diesel fuel, were dumped overboard at night;
- Additional episodes of illegal discharges took place after the ship’s first voyage in June 2009 and continued through the middle of December 2009;
- Irika Shipping did not have a company budget, a budget for the vessel or a waste management plan. Irika’s crew members received little training regarding the company’s environmental policies;
- Crew members were not informed by the company that it had previously been involved in an environmental crimes prosecution and, as a result, was to have been operating under a court-imposed Environmental Compliance Program; and
- Irika obstructed justice in various ways including: senior ship officers made false statements to the Coast Guard, crew members were told to lie to the Coast Guard, and evidence of illegal dumping was destroyed.
As set forth in the plea agreement, Irika pleaded guilty in U.S. District Court in Baltimore, Maryland to two counts of violating the Act to Prevent Pollution from Ships for failing to maintain an accurate oil record book and garbage record book; one count of obstruction of the Coast Guard’s inspection; three counts of concealing evidence; one count of making materially false statements; and one count of obstruction of justice filed. The maximum penalty for each of these felony offenses is $500,000 or up to twice the gross gain or loss from the offense.
In 2007, Irika Shipping was also the operator of the M/V Irika, a ship subject to a similar prosecution in Tacoma, Washington, where the ship’s owner, Irika Maritime S.A., and the ship’s chief engineer were convicted. As part of the sentence in that case, both Irika Maritime and Irika Shipping were required to develop and implement an Environmental Compliance Plan that would apply during a four year period of probation to the entire fleet of vessels managed by Irika Shipping, including new vessels such as the M/V Iorana.
In connection with its 2010 guilty plea, Irika admitted that it hired back the convicted chief engineer from the prior case who committed new violations on the M/V Iorana during the probationary period. A subsequent chief engineer, Triantafyllos Marmaras, was in charge at the time of the January 2010 inspection in Baltimore. Chief Engineer Marmaras pleaded guilty in June 2010, in U.S. District Court in Baltimore, to obstruction of justice charges in a related case.
Yesterday’s prosecution was made possible through the combined efforts of the U.S. Coast Guard Sector Baltimore, the Coast Guard Investigative Service, Coast Guard Office of Maritime and International Law, Coast Guard Office of Investigations and Analysis, Environmental Protection Agency Criminal Investigations Division with assistance from the U.S. Customs and Border Protection. The cases were prosecuted by Richard A. Udell, Senior Trial Attorney of the Environmental Crimes Section of the U.S. Department of Justice, P. Michael Cunningham, Assistant U.S. Attorney in Baltimore, James Oesterle, Assistant U.S. Attorney in Seattle, and Dorothy Manning Taylor, Assistant U.S. Attorney in New Orleans.
Former Bureau of Prisons Corrections Officer Convicted of Federal Civil Rights ChargesRead the Press Release
WASHINGTON – A federal jury in Orlando, Fla., found former Bureau of Prisons corrections officer Michael Kennedy guilty late yesterday on felony federal civil rights charges related to the fatal assault of an inmate in March 2005, the Justice Department announced today. Kennedy was convicted of conspiring with others to violate the federal civil rights of inmate Richard Delano and for violating Delano’s civil rights by arranging for another inmate to assault Delano.
The evidence at trial showed that on Feb. 28, 2005, Kennedy and former Bureau of Prisons corrections officer Erin Sharma agreed to move Delano into the cell of inmate John McCullah at the Federal Correctional Complex Coleman in Coleman, Fla. The evidence also showed that Kennedy and Sharma knew that McCullah was likely to assault Delano, and that the move was in retaliation for a prior altercation between Delano and Sharma. Kennedy also conspired with McCullah by bribing him to assault Delano. Kennedy moved Delano into McCullah’s cell on March 1, 2005, and three days later McCullah assaulted Delano. Delano later died from the injuries he suffered during that assault.
On July 29, 2009, following a trial in Orlando, Fla., a federal jury found Erin Sharma guilty of similar felony civil rights charges for her role in the offense. On Aug . 28, 2009, she was sentenced to life in prison.
"The vast majority of law enforcement officers bravely uphold the civil rights of arrestees and inmates, even under adverse conditions. However, as this case shows, when a law enforcement officer violates the civil rights of any person, the Justice Department will not hesitate to investigate and prosecute such an offender," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This case reflects the kind of abuses that our nation’s civil rights laws are intended to punish."
Kennedy faces a maximum of 20 years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 13, 2010.
This case was prosecuted by Assistant U.S. Attorneys Bruce Ambrose and Carolyn Adams from the U.S. Attorney’s Office, and Senior Litigation Counsel Gerard Hogan and Trial Attorney Douglas Kern from the Civil Rights Division of the U.S. Department of Justice. FBI Special Agent Jim Raby was the lead investigator on the case .
Accountant for Former Arizona Congressman Convicted of Embezzling Insurance Premiums and ConspiracyRead the Press Release
WASHINGTON - Dwayne Lequire, 51, of Elgin, Ariz., was found guilty by a federal jury in Tucson, Ariz., late yesterday of eight counts of embezzling insurance premiums and one count of conspiracy, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Dennis K. Burke for the District of Arizona.
According to testimony and evidence presented during the trial, which began June 22, 2010, Lequire has been the treasurer of Patriot Insurance Agency Inc., since 2004. Patriot Insurance was formerly owned by former Arizona Congressman Richard Renzi, and is currently owned by Renzi’s wife. The indictment alleged that from 2006 to 2009 Lequire embezzled insurance premiums held in trust and directed those premiums to Renzi’s personal accounts, and that he conspired with Renzi to do so. The evidence at trial showed that Lequire embezzled $796,000 of the insurance premiums held in trust. Evidence showed that Lequire directed the embezzled funds to Renzi, including, in June 2006, a payment of $263,000 from which Renzi paid federal income tax of more than $200,000, and purchased multiple airline tickets for his family.
The former general counsel of Patriot Insurance, Andrew Beardall, was tried jointly with Lequire on charges that he made false statements to insurance regulators in 2002 and 2003, after Renzi had allegedly engaged in an earlier embezzlement of insurance premiums to fund his first congressional campaign. Andrew Beardall was acquitted by the jury on all counts.
Lequire and Beardall are the second and third of Renzi’s alleged co-conspirators to face trial. In June 2008, a federal jury in Sherman, Texas, convicted business partner James W. Sandlin of two counts of making false statements to a financial institution. Renzi and Sandlin remain charged with extortion arising out of multiple federal land exchange efforts in 2005.
Each count of embezzling insurance premiums carries a maximum penalty of 10 years in prison and a $250,000 fine. The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine.
The case was tried before U.S. District Court Judge David C. Bury. Lequire remains released on his own recognizance. Sentencing is scheduled for Oct. 18, 2010, before Judge Bury.
The investigation leading to the guilty verdict was conducted by the FBI and the Internal Revenue Service, Criminal Investigations. The case is being prosecuted by Assistant U.S. Attorney Gary M. Restaino for the District of Arizona and Senior Trial Attorney Andrew Levchuk of the Criminal Division’s Public Integrity Section.
Thursday 8 July 2010
Ten Russian Agents Plead Guilty and Are to Be Removed from the United StatesRead the Press Release
Ten individuals pleaded guilty today in Manhattan federal court to conspiring to serve as unlawful agents of the Russian Federation within the United States and will be immediately expelled from the United States, the Justice Department announced today.
In hearings today before Judge Kimba M. Wood in U.S. District Court for the Southern District of New York, each of the 10 defendants arrested on June 27, 2010, pleaded guilty to one count of conspiracy to act as an agent of a foreign government within the United States without notifying the U.S. Attorney General. Under their plea agreements, the defendants were required to disclose their true identities in court today and to forfeit certain assets attributable to the criminal offenses.
The defendants known as "Richard Murphy" and "Cynthia Murphy" admitted they are Russian citizens named Vladimir Guryev and Lydia Guryev and are agents of the Russian Federation. Defendants "Michael Zottoli" and "Patrica Mills" admitted they are Russian citizens named Mikhail Kutsik and Natalia Pereverzeva, and are agents of the Russian Federation. Defendants "Donald Howard Heathfield" and "Tracey Lee Ann Foley" admitted they are Russian citizens named Andrey Bezrukov and Elena Vavilova, and are agents of the Russian Federation. "Juan Lazaro" admitted that he is a Russian citizen named Mikhail Anatonoljevich Vasenkov and is an agent of the Russian Federation.
The defendants Vicky Pelaez, Anna Chapman and Mikhail Semenko, who operated in this country under their true names, admitted that they are agents of the Russian Federation; and Chapman and Semenko admitted they are Russian citizens.
The United States has agreed to transfer these individuals to the custody of the Russian Federation. In exchange, the Russian Federation has agreed to release four individuals who are incarcerated in Russia for alleged contact with Western intelligence agencies.
"This was an extraordinary case, developed through years of work by investigators, intelligence lawyers, and prosecutors, and the agreement we reached today provides a successful resolution for the United States and its interests," Attorney General Eric Holder said.
"Counterintelligence is a top FBI investigative priority, and this case in particular represents the dedicated efforts of the men and women who have worked tirelessly behind the scenes to counter the efforts of those who would steal our nation's vital secrets," said FBI Director Robert S. Mueller.
This case is the result of a multi-year investigation conducted by the FBI and other elements of the U.S. intelligence community; the U.S. Attorney’s Office for the Southern District of New York; and the Counterespionage Section and the Office of Intelligence within the Justice Department’s National Security Division.
The prosecution was handled by Assistant U.S. Attorneys Michael Farbiarz, Glen Kopp and Jason Smith of the Terrorism and International Narcotics Unit of the U.S. Attorney’s Office for the Southern District of New York, and Trial Attorneys Kathleen Kedian and Richard Scott of the Counterespionage Section of the Justice Department’s National Security Division.
Justice Department Files a Lawsuit Alleging Employment Discrimination by Georgia Rug Manufacturer and SellerRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit against Garland Sales Inc., a rug manufacturer and seller located in Dalton, Ga., alleging it engaged in a pattern or practice of discrimination by imposing unnecessary and discriminatory hurdles to employment for work authorized individuals.
According to the department’s findings, Garland required all non-U.S. citizen applicants to present certain work authorization documents. The Immigration and National Act (INA) requires that employers not impose different or greater employment eligibility verification (I-9) standards on non-citizen authorized workers as compared to U.S. citizens. Garland imposed different and greater requirements on non-U.S. citizens as compared to applicants who were U.S. citizens.
Moreover, the department found that Garland retaliated against a limited English proficient naturalized U.S. citizen, when it rescinded a job offer. Specifically, Garland requested the individual produce a "Green Card" (Form I-551 Resident Alien Card), which the applicant did not have because he is a U.S. Citizen. When the applicant did not produce this document and voiced concern about being asked to produce it, Garland withdrew his offer of employment.
"The INA’s anti-discrimination provision makes it illegal to impose different rules for establishing work authorization based on actual or perceived citizenship status," said Thomas E. Perez, the Assistant Attorney General in charge of the Civil Rights Division. "Our Office of Special Counsel for Immigration Related Unfair Employment Practices (OSC) is acting now to remedy this illegal pattern or practice of discrimination."
The lawsuit charging Garland was filed in the department’s Executive Office for Immigration Review – Office of the Chief Administrative Hearing Officer (OCAHO).
The Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provisions of the INA, which protect U.S. citizens and certain work-authorized individuals from citizenship status discrimination. The INA also protects all work-authorized individuals from national origin discrimination, over-documentation in the employment eligibility verification process, and retaliation.
Earlier this month, OSC entered into an out-of-court settlement with Macy’s department stores to settle allegations that a store in Orlando, Fla., committed document abuse and discriminated against a legal permanent resident by requesting more work authorization documents than are required to establish eligibility under the Form I-9. As part of the settlement, Macy’s has agreed to train its human resources employees in its Orlando area stores about federal protections for workers against citizenship status and national origin discrimination, and properly conducting the employment verification process.
For more information about protections against employment discrimination under the immigration laws, call 1-800-255-7688 (OSC’s worker hotline) (1-800-237-2525, TDD for hearing impaired), 1-800-255-8255 (OSC’s employer hotline) (1-800-362-2735, TDD for hearing impaired), or 202-616-5594. Email [email protected], or visit the website at www.justice.gov/crt/osc.
Wednesday 7 July 2010
U.S. Army Major Pleads Guilty to Making False Statements Related to Shipment of Currency from Iraq to the United StatesRead the Press Release
WASHINGTON - U.S. Army Major Charles E. Sublett, 46, of Huntsville, Ala., pleaded guilty today in federal court in Memphis, Tenn. , to making false statements to a federal agency, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.
Sublett was charged in an indictment, returned by a federal grand jury on Jan. 5, 2010, following his arrest in Huntsville. According to the indictment, Sublett smuggled more than $100,000 in currency, concealed in a shipping package, into the United States from Iraq in January 2005.
According to the indictment, Sublett was deployed to Balad Regional Contracting Center on Logistical Support Area (LSA) Anaconda in Iraq from August 2004 through February 2005. LSA Anaconda is a U.S. military installation that was established in 2003 to support U.S. military operations in Iraq. According to the indictment, Sublett served as a contracting officer while deployed to LSA Anaconda. As a contracting officer, Sublett was responsible for, among other things, evaluating and supervising contracts with companies that provide goods and services to the U.S. Army.
Sublett admitted that, on Jan. 11, 2005, he sent a package from Balad, Iraq, to Killeen, Texas, which was seized by U.S. Customs and Border Protection officers in Memphis. Sublett admitted that, on the international air waybill, he falsely described the contents of the package as books, papers, a jewelry box and clothes with a total declared customs value of $140 when, in fact, Sublett knew the package contained $107,900 in U.S. currency and 17,120,000 in Iraqi dinar. Sublett also admitted that he failed to file a currency or monetary instruments transaction report (CMIR) as required by federal law when transporting currency in amounts of more than $10,000 into or out of the United States. During the plea hearing, Sublett admitted to making false claims to investigators regarding his attempt to bring the currency into the United States in an effort to impede their investigation.
The maximum penalty for making false statements to a government agency is five years in prison, and a $250,000 fine, to be followed by a term of up to three years of supervised release. Sublett is scheduled to be sentenced on Oct. 8, 2010. As part of the plea agreement, Sublett also consented to the forfeiture of the $107,900 and the 17,120,000 Iraqi dinar that he concealed in the package.
This case is being prosecuted by Trial Attorneys Daniel A. Petalas and Justin V. Shur of the Criminal Division’s Public Integrity Section. This case is being investigated by Army Criminal Investigation Command; Defense Criminal Investigative Service; the FBI; Internal Revenue Service - Criminal Investigation; the Special Inspector General for Iraq Reconstruction; and U.S. Immigration and Customs Enforcement.
Snamprogetti Netherlands B.V. Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $240 Million Criminal PenaltyRead the Press Release
WASHINGTON – Snamprogetti Netherlands B.V., (Snamprogetti) has agreed to pay a $240 million criminal penalty to resolve charges related to the Foreign Corrupt Practices Act (FCPA) for its participation in a decade-long scheme to bribe Nigerian government officials to obtain engineering, procurement and construction (EPC) contracts, the Department of Justice announced today. The EPC contracts to build liquefied natural gas (LNG) facilities on Bonny Island, Nigeria, were valued at more than $6 billion.
The department filed a deferred prosecution agreement and a criminal information today against Snamprogetti in U.S. District Court for the Southern District of Texas. The two-count information charges Snamprogetti with one count of conspiracy and one count of aiding and abetting violations of the FCPA. During the relevant time period, Snamprogetti, a Dutch corporation headquartered in Amsterdam, The Netherlands, was a wholly owned subsidiary of Snamprogetti S.p.A., an Italian EPC company headquartered in Milan, Italy.
Snamprogetti, Kellogg Brown & Root Inc. (KBR), Technip S.A. (Technip) and an engineering and construction company headquartered in Yokohama, Japan, were part of a four-company joint venture that was awarded four EPC contracts by Nigeria LNG Ltd. (NLNG), between 1995 and 2004 to build LNG facilities on Bonny Island. The government-owned Nigerian National Petroleum Corporation (NNPC) was the largest shareholder of NLNG, owning 49 percent of the company.
According to court documents, Snamprogetti authorized the joint venture to hire two agents, Jeffrey Tesler and a Japanese trading company, to pay bribes to a range of Nigerian government officials, including top-level executive branch officials, to assist Snamprogetti and the joint venture in obtaining the EPC contracts. At crucial junctures preceding the award of EPC contracts, Snamprogetti’s co-conspirators met with successive holders of a top-level office in the executive branch of the Nigerian government to ask the office holders to designate a representative with whom the joint venture should negotiate bribes to Nigerian government officials. The joint venture paid approximately $132 million to a Gibraltar corporation controlled by Tesler and more than $50 million to the Japanese trading company during the course of the bribery scheme. According to court documents, Snamprogetti intended for these payments to be used, in part, for bribes to Nigerian government officials.
Under the terms of the deferred prosecution agreement, the department agreed to defer prosecution of Snamprogetti for two years. Snamprogetti, its current parent company, Saipem S.p.A., and its former parent company, ENI S.p.A. (ENI), agreed to ensure that their compliance programs satisfied certain standards and to cooperate with the department in ongoing investigations. If Snamprogetti and its current and former parent companies abide by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the term of the agreement expires.
In related cases, KBR’s former CEO, Albert "Jack" Stanley, pleaded guilty in September 2008 to conspiring to violate the FCPA for his participation in the bribery scheme, while KBR’s successor company, Kellogg Brown & Root LLC, pleaded guilty in February 2009 to charges related to the FCPA for its participation in the scheme to bribe Nigerian government officials. Kellogg Brown & Root LLC was ordered to pay a $402 million fine and to retain an independent compliance monitor for a three-year period to review the design and implementation of its compliance program. In addition, Tesler and Wojciech Chodan, a former salesperson and consultant of a United Kingdom subsidiary of KBR, were indicted in February 2009 on charges related to the FCPA for their alleged participation in the bribery scheme. The United States has requested these defendants’ extradition from the United Kingdom. In another related criminal case, the department filed a deferred prosecution agreement and criminal information against Technip on June 28, 2010. According to that agreement, Technip agreed to pay a $240 million criminal penalty and to retain an independent compliance monitor for two years.
Today, Snamprogetti and ENI also reached a settlement of a related civil complaint filed by the U.S. Securities and Exchange Commission (SEC), charging Snamprogetti with violating the FCPA’s anti-bribery provisions, falsifying books and records, and circumventing internal controls and charging ENI with violating the FCPA’s books and records and internal controls provisions. As part of that settlement, Snamprogetti and ENI agreed jointly to pay $125 million in disgorgement of profits relating to those violations.
"The resolutions in this investigation demonstrate the U.S. government’s commitment to identifying and holding accountable all companies and individuals who scheme to bribe foreign government officials to win business," said Principal Deputy Assistant Attorney General Mythili Raman of the Criminal Division. "Snamprogetti and its joint-venture partners conspired to pursue lucrative contracts through a massive bribery scheme – a scheme that has led to more than $1.28 billion in criminal and civil penalties to date. The monetary penalties and enforcement actions that have resulted from this investigation should send a clear message to companies and their employees that using foreign bribery as a means of winning contracts abroad will be punished."
"Today’s resolution is yet another example of the FBI’s willingness to aggressively investigate individuals and businesses that engage in corrupt conduct around the globe," said Kevin L. Perkins, assistant director of the FBI’s Criminal Investigative Division. "Those who elect to expand or protect their business interests through the payment of illegal bribes to foreign public officials should know that they are not beyond the reach of the FBI. Together, with our law enforcement partners around the world, we will identify these bad actors and work with the Justice Department to prosecute them under the Foreign Corrupt Practices Act and other appropriate federal statutes."
The criminal case is being prosecuted by Acting Assistant Chief William J. Stuckwisch and Deputy Chief Patrick F. Stokes of the Criminal Division’s Fraud Section, with investigative assistance from the FBI-Houston Division. The Criminal Division’s Office of International Affairs provided substantial assistance. Significant assistance was provided by the SEC’s Division of Enforcement and by authorities in France, Italy, Switzerland and the United Kingdom.
New Charges Filed Against Irish Trading Firm for Exporting U.S. Military Items to IranRead the Press Release
WASHINGTON – A federal grand jury in Washington, D.C., has charged Mac Aviation Group, an Irish trading company, and its officers Thomas and Sean McGuinn of Sligo, Ireland, in a superseding indictment with purchasing F-5 fighter aircraft parts, helicopter engines and other aircraft components from U.S. firms and illegally exporting them to Iran.
The 27-count superseding indictment was announced by David Kris, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John Morton, Director of U.S. Immigration and Customs Enforcement; and James Burch, Deputy Inspector General for Investigations of the Defense Criminal Investigative Service.
The defendants were originally charged in a sealed 25-count indictment in July 2008 with two counts of conspiracy, 19 counts of violating the International Emergency Economic Powers Act (IEEPA) and Iranian Transactions Regulations, four counts of false statements, and forfeiture allegations. The indictment was unsealed in March 2009.
The two additional counts charged in the superseding indictment pertain to Mac Aviation and Tom McGuinn’s procurement of military items, specifically F-5 fighter aircraft parts, from a U.S. company and export of those parts to Iran, in violation of the Arms Export Control Act (AECA). If convicted, the defendants face a maximum sentence of 10-20 years in prison for each of the IEEPA counts, 10 years in prison for the AECA charge, 5-20 years in prison for each of the conspiracy counts, and five years in prison for each of the false statement counts.
According to the indictment, beginning as early as August 2005 and continuing through July 2008, the defendants solicited purchase orders from customers in Iran for U.S.-origin aircraft engines and parts and then sent requests for aircraft components to U.S. companies. These parts included helicopter engines, aircraft bolts and vanes, and canopy panels for the F-5 fighter aircraft. The defendants wired money to banks in the U.S. as payment for these parts and concealed from U.S. sellers the ultimate end-use and end-users of the purchased parts. The defendants caused these parts to be exported from the United States to third countries like Malaysia before causing them to be transshipped to Iran.
The superseding indictment alleges that from 2005 and continuing until 2006, the defendants caused canopy panels designed for the F-5 fighter aircraft, valued at approximately $44,500, to be exported from the United States to Iran. The defendants falsely stated that the end user for the F-5 panels was the Republic of Nigeria. Instead, the panels were sold by the defendants to Sasadja Moavanate Bazargani, in Tehran, Iran for $86,400. The purchase was arranged through the Iran Aircraft Manufacturing Industrial Company, known by its Iranian acronym as HESA.
On Sept. 17, 2008, the Treasury Department designated several Iranian entities as weapons of mass destruction proliferators and members of their support networks, pursuant to Executive Order 13382. Among the entities designated was HESA, which the Treasury Department determined was controlled by Iran’s Ministry of Defense and Armed Forces Logistics and has provided support to the Iranian Revolutionary Guard Corps.
The defendants were previously charged with purchasing 17 helicopter engines from Rolls Royce Corporation in Indiana for $4.27 million dollars on behalf of an Iranian trading company, some of which were ultimately sent to HESA, and also causing U.S.-origin airplane vanes and bolts to be exported from the United States to Iran.
This investigation was conducted by special agents from the Department of Homeland Security’s U.S. Immigration and Customs Enforcement and the Defense Criminal Investigative Service. Special agents from the U.S. Department of Commerce, Office of Export Enforcement, also assisted in the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Ann Petalas and John Borchert of the U.S. Attorney’s Office for the District of Columbia, and Trial Attorneys Jonathan Poling and Ryan Fayhee of the Counterespionage Section of the Justice Department’s National Security Division.
The details contained in an indictment are mere allegations. All defendants are presumed innocent unless and until proven guilty in a court of law.
Former Guatemalan Special Forces Soldier Pleads Guilty to Making False Statements on Immigration Forms Regarding 1982 Massacre of Guatemalan VillagersRead the Press Release
WASHINGTON – Gilberto Jordan, 54, a former Guatemalan special forces soldier, pleaded guilty today in Fort Lauderdale, Fla., to a federal charge of unlawfully procuring his U.S. citizenship, admitting that he lied on his naturalization application about his participation in a 1982 massacre at a Guatemalan village known as Dos Erres. The guilty plea was announced by 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).
Jordan, of Delray Beach, Fla., entered his guilty plea before U.S. District Judge William J. Zloch. Jordan was remanded into custody by Judge Zloch following the plea hearing. Jordan faces a maximum sentence of 10 years in prison, a $250,000 fine and judicial revocation of his naturalized citizenship. He will be sentenced on Sept. 17, 2010.
According to the indictment and 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, were 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 or about 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.
Court documents further state that 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 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.
As part of his plea, 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.
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 earlier provided on his application were true and correct. Jordan was sworn in as a U.S. citizen on Aug. 25, 1999.
The case was prosecuted byTrial Attorneys Hillary Davidson and Brian Skaret of the Human Rights and Special Prosecutions Section of the Criminal Division, and 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 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.
Charges Unsealed Against Five Alleged Members of Al-Qaeda Plot to Attack the United States and United KingdomRead the Press Release
WASHINGTON – The Justice Department today announced charges against five members of an al-Qaeda plot to attack targets in the United States and United Kingdom.The charges reveal that the plot against New York’s subway system uncovered in September 2009 involving Colorado resident Najibullah Zazi was directed by senior al-Qaeda leadership in Pakistan, and was also directly related to a scheme by al-Qaeda plotters in Pakistan to use Western operatives to attack a target in the United Kingdom.
The superseding indictment, which was returned and unsealed today in the Eastern District of New York, charges the following defendants each with several terrorism violations: Adnan El Shukrijumah, also known as "Hamad;" Adis Medunjanin, also known as "Mohammad;" Abid Naseer; Tariq Ur Rehman; and a fifth defendant known as "Ahmad," "Sohaib" or "Zahid." Each of the defendants faces a maximum sentence of life in prison if convicted.
According to the indictment, court filings and plea proceedings in the case, the plot involving Zazi was organized by Saleh al-Somali, Rashid Rauf, and El Shukrijumah, who were then-leaders of al-Qaeda’s "external operations" program dedicated to terrorist attacks in the United States and other Western countries.
Between September and December 2008, Saleh and El Shukrijumah recruited Zazi and Zazi’s co-conspirators, Zarein Ahmedzay and Medunjanin, to conduct suicide bombings in New York City using improvised explosive devices made from supplies such as hydrogen peroxide, acetone, flour and oil. According to the indictment and court filings, Saleh communicated with Zazi through "Ahmad," an al-Qaeda facilitator in Peshawar, Pakistan. In early September 2009, after Zazi constructed the detonator explosives for the attack, he emailed with "Ahmad" in Pakistan about the proper ingredients for the flour-based main charge explosive. Zazi pleaded guilty to his role in the New York subway plot on February 22, 2010; Ahmedzay similarly pleaded guilty on April 23, 2010.
The indictment adds formal charges against El Shukrijumah, a 34-year-old native of Saudi Arabia who served as one of the leaders of al-Qaeda’s external operations program. According to the indictment, El Shukrijumah recruited Zazi, Ahmedzay, and Medunjanin to return to the United States and conduct terrorist attacks there. El Shukrijumah has been wanted by the FBI for several years and is the subject of a $5 million reward for information leading to his arrest. He remains at large.
The investigation by authorities in the United States and United Kingdom has revealed that "Ahmad" was also communicating with Manchester-based, United Kingdom resident Naseer. Naseer, like Zazi, was in Peshawar, Pakistan in November 2008, according to the court filings.
After returning to the United Kingdom, Naseer sent messages back and forth to the same email account that "Ahmad" was using to communicate with the American-based al-Qaeda cell on behalf of Saleh, the indictment and court filings allege. In the messages, Naseer used coded language to refer to different types of explosives. At the culmination of the plot, in early April 2009, Naseer, again using coded language, told "Ahmad" that he was planning a large "wedding" for numerous guests between April 15 and 20, 2009, and that "Ahmad" should be ready. Notably, "Ahmad" and Zazi had agreed on a similar code to mean the attack was ready to be executed, and Zazi emailed Ahmad that "the marriage is ready" just before he left Colorado for New York in early September 2009.
On April 8, 2009, Naseer and Rehman were arrested in the United Kingdom on terrorism charges. In connection with the arrests, U.K. authorities conducted searches of the plotters’ homes, where they found large quantities of flour and oil, as well as surveillance photographs of public areas in Manchester and maps of Manchester’s city center posted on the wall, with one of the locations from the surveillance photographs highlighted. Naseer is currently in custody in the United Kingdom. The United States intends to seek his extradition to face trial. Rehman is not in custody.
The superseding indictment also adds new charges to the pending indictment against Medunjanin. Specifically, the indictment charges that, in furtherance of the New York plot, and, after Zazi was already in custody, Medunjanin attempted to crash his car into another car on the Whitestone Expressway in Queens, N.Y. as a last attempt to carry out a suicide attack on American soil. Just before crashing his car, Medunjanin called 911 to identify himself and announce his intentions. Medunjanin remains in federal custody in the United States. No trial date has been set.
Medunjanin is charged with conspiring to use weapons of mass destruction; conspiring to commit murder abroad; providing and conspiring to provide material support to al-Qaeda; receiving military training from al-Qaeda; committing and attempting to commit an act of terrorism transcending national boundaries; and using firearms and a destructive device in relation to the above offenses.
Shukrijumah and "Ahmad" are each charged with providing and conspiring to provide material support to al-Qaeda; conspiring to use weapons of mass destruction; assisting the receipt of military training; committing and attempting to commit an act of terrorism transcending national boundaries; and using firearms in relation to the same offenses. "Ahmad" is also charged together with Naseer and Rehman with providing and conspiring to provide material support to al-Qaeda and conspiracy to use a destructive device in relation to the U.K. branch of the plot.
"These charges underscore the global nature of the terrorist threat we face. They further reflect the effectiveness of mutual investigations and cooperation with our global partners in disrupting terrorism threats. I thank our counterparts in the United Kingdom for their assistance in this investigation," said David Kris, Assistant Attorney General for National Security.
"As today’s charges demonstrate, we will not rest in our pursuit of those responsible for plotting terrorist attacks," said Loretta E. Lynch, U.S. Attorney for the Eastern District of New York. Ms. Lynch also expressed her gratitude to the law enforcement personnel, both domestic and foreign, who took part in the investigation.
FBI Executive Assistant Director Sean Joyce, National Security Branch said, "The threat posed by terrorists around the world is a threat to security and a threat to the rule of law. The transnational nature of this conspiracy, and its connection to plots targeted outside the U.S. underscores the importance of international coordination and collaboration to do everything we can to ensure public safety."
"The charges announced today illustrate the coordinated and persistent attempts by our adversaries to harm American citizens," said FBI New York Acting Assistant Director-in-Charge George Venizelos. "FBI personnel around the world are dedicated to working with our international law enforcement partners to uncover and thwart attacks."
The investigation is being conducted by the New York, Denver and Miami FBI Joint Terrorism Task Forces, as well as the Washington Field Office of the FBI. The North West Counter Terrorism Unit and Greater Manchester Police Department have also provided significant assistance.
The case is being prosecuted by the U.S. Attorney’s Office for the Eastern District of New York, with assistance from the Counterterrorism Section of the Justice Department’s National Security Division. The U.S. Attorney’s Office for the Southern District of Florida has also provided assistance in the investigation.
The public is reminded that an indictment contains mere allegations and a defendant is presumed innocent until proven guilty.
Tuesday 6 July 2010
Three Indicted in Alleged Conspiracy Involving the Trafficking of Haitian NationalsRead the Press Release
WASHINGTON - The Justice Department today announced that Carline Ceneus, Cabioch Bontemps and Willy Edouard have been indicted by a federal grand jury sitting in the Northern District of Florida for engaging in a conspiracy to commit forced labor and visa fraud involving Haitian nationals. Ceneus is also charged with document servitude.
Ceneus, 32, of Miami, and Bontemps, 34, of Gainesville, Fla., have been arrested. Ceneus was detained upon re-entry to the United States. Edouard, 47, of Miami, is considered a fugitive. The three are charged with crimes arising from the alleged scheme to coerce the labor and services of Haitian nationals brought by Ceneus and Edouard to northern Florida to work under the federal agricultural guest worker program.
According to the indictment, Ceneus, Bontemps and Edouard engaged in a conspiracy and devised a scheme to obtain the labor of 34 Haitian nationals by enticing them to come to the Gainesville area to pick beans and peas with false promises of lucrative jobs over three years culminating in permanent residency. The three defendants then maintained the victims’ labor and services through threats of serious harm, according to the indictment. Ceneus and Edouard arranged for the workers to pay substantial recruitment fees, procured by loans provided by loan sharks and often secured by the victims’ property. After arrival in the United States, the defendants confiscated the victims’ passports and failed to honor the promised terms of employment. The defendants kept the Haitian nationals in their service by threatening to report them to law enforcement and have them deported or sent home to face their large unpaid debts. The indictment also charges that the defendants engaged in visa fraud by making false statements in documents filed with the U.S. Department of Labor to procure H2A guest worker visas.
The charges set forth in an indictment are merely accusations and the defendants are presumed innocent until proven guilty. If convicted, Ceneus faces a maximum sentence of 25 years and Edouard and Cabioch each face 10 years in prison.
This case is being investigated by the U.S. Department of Homeland Security Immigration and Customs Enforcement, U.S. Department of Labor, Office of Inspector General - Labor Racketeering and Fraud Investigations, the Florida Department of Law Enforcement and the Alachua County, Fla., Sheriff’s Department. The case is being prosecuted by trial attorney Susan French of the Human Trafficking Prosecution Unit of the Civil Rights Division, Criminal Section, and Assistant U.S. Attorney Frank Williams of the Northern District of Florida.
Numerous non-governmental organizations have provided services to the victims and include: Alachua County Victim Services and Rape Crisis Center; Alachua County Housing Authority; Gainesville Harvest; Alachua County Health Department; Trinity United Methodist Church; Child Advocacy Center of Gainesville; United Way; St. Francis House; Peaceful Paths; Florida Rural Legal Services (Ft. Myers, Fla.); Florida Freedom Partnership (Miami); and World Relief (Jacksonville, Fla.).
Justice Department Settles Lawsuit Alleging Racial Discrimination at Ann Arbor, Michigan, Michigan Apartment ComplexRead the Press Release
WASHINGTON – The owners and operators of Ivanhoe House Apartments, an apartment complex in Ann Arbor, Mich., have agreed to pay $82,500 to settle a lawsuit filed by the Justice Department alleging that they had discriminated against African-American home-seekers, in violation of the Fair Housing Act.
The Justice Department’s lawsuit, which was handled jointly by attorneys from the Civil Rights Division and the U.S. Attorney’s Office for the Eastern District of Michigan, was filed in March 2010. The lawsuit was based upon evidence generated by a series of fair housing tests conducted by the Fair Housing Center of Southeastern Michigan, a private non-profit organization located in Ann Arbor. In the tests, individuals posed as prospective renters for purposes of determining whether the defendants were providing equal treatment to similarly situated home seekers in compliance with the Fair Housing Act.
As alleged in the complaint, the testing revealed that Ivanhoe House Apartments repeatedly and consistently treated African-American apartment-seekers less favorably than white apartment-seekers. Specifically, the complaint alleged that Ivanhoe House Apartments denied the availability of apartments to African-Americans, failed to show them available apartments, and/or quoted them later dates of availability than they quoted to white persons. A separate federal lawsuit was filed by the Fair Housing Center. Today’s settlement resolves both lawsuits.
"Racial discrimination in housing harms not only those who were denied housing, but also the communities in which they live," said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. "Today’s settlement is a clear signal of our commitment to vigorously enforce the Fair Housing Act and to fight illegal discrimination in housing."
"Unfortunately, racial discrimination in housing persists in Michigan and elsewhere," said Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan. "We will continue to protect the rights of all persons in this District to obtain the housing of their choice free from unlawful discrimination."
Under the settlement, which must still be approved by U.S. District Court Judge Sean F. Cox, the defendants will pay $35,000 in damages to three victims who the United States contends were discriminated against because of their race at Ivanhoe House Apartments; pay $7,500 in a civil penalty to the United States; and pay $40,000 to the Fair Housing Center of Southeastern Michigan as damages for the non-profit’s efforts in testing and investigating the apartment complex. The settlement also requires the defendants and their employees to undergo fair housing training, conduct self-testing of the apartment complex, and provide periodic reports to the Justice Department and the Fair Housing Center of Southeastern Michigan.
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 www.justice.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, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Justice Department Resolves Disability Discrimination Lawsuit Against Fitchburg, Massachusetts, Housing AuthorityRead the Press Release
WASHINGTON – The Justice Department today announced that it has reached an agreement resolving its lawsuit against the Fitchburg, Mass., Housing Authority and its executive director, Robert W. Hill. The lawsuit alleged that the Fitchburg Housing Authority and Hill violated the Fair Housing Act by adopting and implementing policies that denied tenants with disabilities other than mobility impairments the opportunity to transfer between apartments within Fitchburg’s public housing neighborhoods.
"The Fair Housing Act requires equal access to housing for persons with disabilities," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This comprehensive settlement will ensure equal access to housing for all disabled individuals, not just those who are substantially limited in the major life activity of walking."
Under the terms of the settlement, which must still be approved by the U.S. District Court for the District of Massachusetts, the defendants must establish a $65,000 settlement fund to compensate persons who may have been injured by their alleged discriminatory conduct. The settlement also requires employees of the Fitchburg Housing Authority to receive training on the prohibition of disability discrimination under federal fair housing laws. Additionally, the Fitchburg Housing Authority must implement nondiscrimination and reasonable accommodation policies, and a procedure by which tenants may file a disability discrimination complaint against and employee or agent of the authority.
This case originated when a former resident of the Fitchburg Housing Authority filed a discrimination complaint with the U.S. Department of Housing and Urban Development (HUD). HUD conducted an investigation and referred the matter to the Justice Department. The former resident resolved her claims against the Fitchburg Housing Authority in an out-of-court settlement.
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 the website www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Italian Executive Extradited from Germany to the United States to Face Foreign Bribery ChargesRead the Press Release
WASHINGTON – Italian citizen Flavio Ricotti, a former executive of Rancho Santa Margarita, Calif.-based valve company Control Components Inc. (CCI), has been extradited to the United States from Germany in connection with his alleged participation in a conspiracy to secure contracts by paying bribes to officials of foreign state-owned companies as well as officers and employees of foreign and domestic private companies, the Department of Justice announced today. Ricotti, 49, of Bientina, Italy, was arrested on Feb. 14, 2010, in Frankfurt, Germany, and arrived in the United States on July 2, 2010.
Ricotti and five other former executives of CCI were charged on April 8, 2009, in a 16-count indictment for their alleged roles in the foreign bribery scheme. According to the indictment, Ricotti, who served as CCI’s vice president and head of sales for Europe, Africa and the Middle East from 2001 through 2007, allegedly caused CCI employees and agents to make corrupt payments totaling approximately $750,000 to officers and employees of state-owned companies, and corrupt payments totaling approximately $380,000 to officers and employees of private companies. According to the indictment, these corrupt payments occurred in connection with CCI projects in various countries around the world, including in the United Arab Emirates, Kazakhstan, India and Qatar. According to court documents, the valve company designs and manufactures service control valves for use in the nuclear, oil and gas, and power generation industries worldwide.
The other five former CCI executives also charged are Stuart Carson, CCI’s former chief executive officer; Hong (Rose) Carson, CCI’s former director of sales for China and Taiwan; Paul Cosgrove, CCI’s former director of worldwide sales; David Edmonds, CCI’s former vice president of worldwide customer service; and Han Yong Kim, the former president of CCI’s Korean office. Trial is scheduled to begin Nov. 2, 2010.
Ricotti is charged with one count of conspiracy to violate the FCPA and the Travel Act, one count of violating the FCPA, and three counts of violating the Travel Act. The conspiracy count 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. The FCPA count 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 Travel Act counts each carry a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the pecuniary gain or loss.
In related cases, two defendants previously pleaded guilty to conspiring to bribe officers and employees of foreign state-owned companies on behalf of CCI. On Jan. 8, 2009, Mario Covino, the former director of worldwide factory sales for CCI, pleaded guilty to one count of conspiracy to violate the FCPA and admitted to causing the payment of approximately $1 million in bribes to officers and employees of several foreign state-owned companies. On Feb. 3, 2009, Richard Morlok, CCI’s former finance director, pleaded guilty to one count of conspiracy to violate the FCPA and admitted to causing the payment of approximately $628,000 in bribes to officers and employees of several foreign state-owned companies. Covino and Morlok are scheduled to be sentenced in January 2011.
On July 31, 2009, CCI pleaded guilty to a three-count criminal information charging the company with conspiracy to violate the FCPA and the Travel Act, and two substantive violations of the FCPA. CCI was ordered to pay an $18.2 million criminal fine, placed on organizational probation for three years, and ordered to create and implement a compliance program and retain an independent compliance monitor for three years. CCI admitted that from 2003 through 2007 it made approximately 236 corrupt payments in more than 30 countries, which resulted in net profits to the company of approximately $46.5 million from sales related to those corrupt payments.
The case is being prosecuted by Trial Attorney Andrew Gentin of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Douglas McCormick of the U.S. Attorney’s Office for the Central District of California. The case was investigated by the FBI’s Washington Field Office, and its team of special agents dedicated to the investigation of foreign bribery cases. Significant assistance was provided by the Criminal Division’s Office of International Affairs.
An indictment is merely an accusation and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Houston Computer Administrator Sentenced to 12 Months in Prison for Hacking Former Employer’s Computer NetworkRead the Press Release
WASHINGTON – A former senior database administrator for GEXA Energy in Houston was sentenced today to 12 months in prison for hacking into his former employer’s computer network, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Jose Angel Moreno for the Southern District of Texas.
Steven Jinwoo Kim, 40, of Houston pleaded guilty on Nov. 16, 2009, to one count of intentionally accessing a protected computer without authorization and recklessly causing damage. Kim was sentenced today by U.S. District Judge Vanessa D. Gilmore in the Southern District of Texas. Kim was also ordered to pay $100,000 in restitution to GEXA Energy and to serve three years of supervised release following his prison term.
According to court documents, on Feb. 5, 2008, GEXA Energy terminated Kim from his position as a senior database administrator and revoked all his administrative rights and access to the GEXA Energy computer network. In pleading guilty, Kim admitted that in the early hours of April 30, 2008, he used his home computer to connect to the GEXA Energy computer network and a database that contained information on approximately 150,000 GEXA Energy customers. While connected to the computer network, Kim recklessly caused damage to the computer network and the customer database by inputting various Oracle database commands. Kim also copied and saved to his home computer a database file containing personal information on the GEXA Energy customers, including names, billing addresses, social security numbers, dates of birth and drivers license numbers. According to court documents, Kim’s actions caused a $100,000 loss to GEXA Energy.
The case was prosecuted by Trial Attorney Thomas Dukes of the Criminal Division’s Computer Crime and Intellectual Property Section, and by Special Assistant U. S. Attorney Bret Davis representing the U.S. Attorney’s Office for the Southern District of Texas. The case was investigated by the U.S. Secret Service.
Citing Conflict with Federal Law, Department of Justice Challenges Arizona Immigration LawRead the Press Release
WASHINGTON - The Department of Justice challenged the state of Arizona’s recently passed immigration law, S.B. 1070, in federal court today.
In a brief filed in the District of Arizona, the Department said S.B. 1070 unconstitutionally interferes with the federal government’s authority to set and enforce immigration policy, explaining that “the Constitution and federal law do not permit the development of a patchwork of state and local immigration policies throughout the country.” A patchwork of state and local policies would seriously disrupt federal immigration enforcement. Having enacted its own immigration policy that conflicts with federal immigration law, Arizona “crossed a constitutional line.”
The Department’s brief said that S.B. 1070 will place significant burdens on federal agencies, diverting their resources away from high-priority targets, such as aliens implicated in terrorism, drug smuggling, and gang activity, and those with criminal records. The law’s mandates on Arizona law enforcement will also result in the harassment and detention of foreign visitors and legal immigrants, as well as U.S. citizens, who cannot readily prove their lawful status.
In declarations filed with the brief, Arizona law enforcement officials, including the Chiefs of Police of Phoenix and Tucson, said that S.B. 1070 will hamper their ability to effectively police their communities. The chiefs said that victims of or witnesses to crimes would be less likely to contact or cooperate with law enforcement officials and that implementation of the law would require them to reassign officers from critical areas such as violent crimes, property crimes, and home invasions.
The Department filed the suit after extensive consultation with Arizona officials, law enforcement officers and groups, and civil rights advocates. The suit was filed on behalf of the Department of Justice, the Department of Homeland Security, and the Department of State, which share responsibilities in administering federal immigration law.
“Arizonans are understandably frustrated with illegal immigration, and the federal government has a responsibility to comprehensively address those concerns,” Attorney General Holder said. “But diverting federal resources away from dangerous aliens such as terrorism suspects and aliens with criminal records will impact the entire country’s safety. Setting immigration policy and enforcing immigration laws is a national responsibility. Seeking to address the issue through a patchwork of state laws will only create more problems than it solves.”
“With the strong support of state and local law enforcement, I vetoed several similar pieces of legislation as Governor of Arizona because they would have diverted critical law enforcement resources from the most serious threats to public safety and undermined the vital trust between local jurisdictions and the communities they serve,” Department of Homeland Security Secretary Janet Napolitano said. “We are actively working with members of Congress from both parties to comprehensively reform our immigration system at the federal level because this challenge cannot be solved by a patchwork of inconsistent state laws, of which this is one. While this bipartisan effort to reform our immigration system progresses, the Department of Homeland Security will continue to enforce the laws on the books by enhancing border security and removing criminal aliens from this country.”
The Department has requested a preliminary injunction to enjoin enforcement of the law, arguing that the law’s operation will cause irreparable harm.
“Arizona impermissibly seeks to regulate immigration by creating an Arizona-specific immigration policy that is expressly designed to rival or supplant that of the federal government. As such, Arizona’s immigration policy exceeds a state’s role with respect to aliens, interferes with the federal government’s balanced administration of the immigration laws, and critically undermines U.S. foreign policy objectives. S.B. 1070 does not simply seek to provide legitimate support to the federal government’s immigration policy, but instead creates an unprecedented independent immigration scheme that exceeds constitutional boundaries,” the Department said in its brief.
Download the Supporting Documents:
Complaint Filed (PDF)
Arizona PI Brief (PDF)
Declaration of U.S. Immigration and Customs Enforcement Executive Associate Director for Management and Administration Daniel Ragsdale (PDF)
Declaration of U.S. Customs and Border Protection Deputy Commissioner David Aguilar (PDF)
Declaration of U.S. Immigration and Customs Enforcement Law Enforcement Support Center Unit Chief David Palmatier (PDF)
Declaration of U.S. Citizenship and Immigration Services Records Division Chief Dominick Gentile (PDF)
Declaration of U.S. Department of Homeland Security Deputy Assistant Secretary for International Policy and the current Acting Assistant Secretary for International Affairs Mariko Silver (PDF)
Declaration of Senior Advisor to the Director of U.S. Citizenship and Immigration Services Michael Aytes (PDF)
Declaration of T ucson Police Department Chief Roberto Villasenor (PDF)
Declaration of Phoenix Police Department Chief Jack Harris (PDF)
Declaration of Santa Cruz County, Ariz., Sheriff Tony Estrada (PDF)
Friday 2 July 2010
Three Arizona Men Sentenced for Illegally Possessing a Golden EagleRead the Press Release
WASHINGTON—Three men were sentenced today in federal court in Flagstaff, Ariz., for illegally possessing a protected golden eagle, the Justice Department announced.
Arthur Batala, Darrell Batala and Steven Silas, all members of the Hopi Indian Tribe of Arizona, were sentenced for taking and possessing a golden eagle in violation of the Migratory Bird Treaty Act, a federal law that protects most species of birds in the United States. Magistrate Judge Mark E. Aspey of the U.S. District Court for the District of Arizona sentenced Art Batala to pay $500 restitution and serve two years of probation, Darrell Batala to pay $500 restitution and serve one year of probation and Silas to pay $500 restitution and serve one year of supervised probation.
Eagles are viewed as sacred in many Native American cultures, and the feathers and other parts of the birds are central to Native American religions and customs. By law under the Migratory Bird Treaty and Bald and Golden Eagle Protection Acts, enrolled members of federally recognized Indian tribes may obtain permits to take eagles for religious purposes, but federal law prohibits the sale of bald and golden eagles or their feathers and other parts.
The U.S. Fish and Wildlife Service operates the National Eagle Repository, which collects eagles nationwide that die naturally, by accident or other means, to supply enrolled members of federally recognized tribes with eagle parts for their religious use.
The case was investigated by the U.S. Fish and Wildlife Service’s Office of Law Enforcement, the Hopi Resource Enforcement Services, and the Navajo Nation Department of Fish and Wildlife. The case was prosecuted by the Justice Department’s Environmental Crimes Section.