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Friday 2 July 2010
Northern Virginia Business Owner Indicted for Failing to Pay Employment TaxesRead the Press Release
WASHINGTON - Eric Jon Eisenhower, a resident of Fairfax Station, Va., was arraigned in federal court in Alexandria, Va., on an indictment that alleges that he failed to collect, account for and pay over to the Internal Revenue Service (IRS) more than $200,000 in withholdings from employees’ paychecks between 2004 and 2008, the Justice Department and IRS announced today.
According to court documents, Eisenhower was the president of CoManage Inc., a computer software development company. From December 2004 through June 2008, Eisenhower failed to pay over to the IRS CoManage’s employees’ withholdings for Social Security, Medicare and federal income taxes. U.S. District Court Judge Ellis set Eisenhower’s trial for Sept. 8, 2010.
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, Eisenhower faces a maximum of 75 years in prison and a maximum fine of $150,000.
This case was investigated by IRS Criminal Investigation. Assistant U.S. Attorney Mark Lytle and Tax Division Trial Attorney Caryn Mark are prosecuting the case on behalf of the United States.
Five Defendants Sentenced for Child Pornography Crimes Uncovered as a Result of International InvestigationRead the Press Release
WASHINGTON – Four defendants were sentenced today in connection with their participation in an online child pornography conspiracy, while a fifth defendant was sentenced for receiving child pornography, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Timothy M. Morrison of the Southern District of Indiana.
Michael Baratta, 49, of Sacramento, Calif., was sentenced to 15 years in prison for his role in the conspiracy as an administrator of an online bulletin board dedicated to the advertisement and distribution of child pornography. Scott Van Dorp, 51, of Nashville, Ind., also was sentenced to 15 years in prison for the role he played in the conspiracy and for his criminal conduct related to a second Internet bulletin board containing child pornography. William Watkins, 39, of Lake Worth, Fla., was sentenced to 15 years in prison for his role in the conspiracy as a moderator of the Internet-based bulletin board. March Beren Reeder, 33, of Harrisburg, Pa., was sentenced to 10 years in prison for his participation in the conspiracy.
All four defendants pleaded guilty in Indianapolis before U.S. District Court Judge William T. Lawrence 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. Van Dorp also pleaded guilty to one count of conspiracy to advertise child pornography and one count of conspiracy to distribute child pornography for his role in the second Internet bulletin board. Each defendant was sentenced to a lifetime of supervised release following their release from prison.
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. Nine 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.
In a separate case, Christopher Philpot of Rushville, Ind., was sentenced today to 60 months in prison and lifetime supervised release following his prison term for receiving child pornography. Philpot, 32, pleaded guilty on April 17, 2009, in Indianapolis before Judge Lawrence to one count of receipt of child pornography.
The charges against Baratta, Van Dorp, Watkins, Reeder and 22 co-defendants, as well as against Philpot, 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 approximately 500 additional individuals located throughout the world for their involvement in an online group dedicated to trading images of child pornography.
As a result of Operation Nest Egg more than 80 searches have been conducted to date in the United States. In total, more than 50 individuals have been arrested and 38 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, sometimes producing images of the sexual abuse. For example, 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The cases are being prosecuted by Assistant U.S. Attorney Steven D. DeBrota of the Southern District of Indiana, Assistant U.S. Attorney of the Eastern District of Virginia and former CEOS Trial Attorney Elizabeth M. Yusi and CEOS Trial Attorney Alecia Riewerts Wolak. CEOS Trial Attorney Anitha S. Ibrahim also prosecuted the case against Philpot. 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.
Thursday 1 July 2010
Philadelphia Drug Dealer Sentenced to 70 Months in PrisonRead the Press Release
WASHINGTON - Quang Nguyen, 22, of Philadelphia was sentenced today by U.S. District Court Judge Paul S. Diamond to 70 months in prison for his role in distributing large amounts of marijuana and ecstasy pills in the United States, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania. Nguyen was also ordered to pay a $1, 250 fine and to serve a five-year term of supervised release following his prison term.
Nguyen pleaded guilty on March 9, 2010, to conspiracy to distribute ecstasy, conspiracy to distribute marijuana, distribution of ecstasy and distribution of marijuana. According to the sentencing memo, Nguyen and others conducted their operations from a Philadelphia-area hotel, including receiving shipments of marijuana and selling drugs to customers from the hotel.
According to court documents, large amounts of ecstasy, methamphetamine and marijuana are produced in Canada, smuggled into United States, transported to the Eastern District of Pennsylvania, and then further distributed around the East Coast of the United States. For the past several years, the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the Criminal Division’s Organized Crime & Racketeering Section (OCRS), U.S. Immigrations and Customs Enforcement (ICE), the Drug Enforcement Administration (DEA) and Canadian law enforcement agencie s have been working closely together combat drug smuggling and money laundering between the United States and Canada
The case was prosecuted by OCRS Trial Attorney Robert J. Livermore. The case was investigated by ICE special agents. The DEA, the Pennsylvania State Police and the Philadelphia Police Department also provided assistance on this investigation.
New Jersey UBS Client Pleads Guilty to Failing to Report More Than $2 Million in Swiss Bank AccountRead the Press Release
A Milltown, N.J., man pleaded guilty today to a federal charge of willfully subscribing to a false tax return, admitting he concealed over $2 million in a Swiss bank account, Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division and U.S. Attorney Paul J. Fishman announced.
Leonid Zatlsberg made his first appearance in federal court and pleaded guilty before U.S. District Judge Stanley R. Chesler. Judge Chesler released the defendant on a $750,000 bond pending sentencing, which is scheduled for Nov. 17, 2010.
According to court documents filed in this case and statements made during today’s guilty plea proceeding, Zaltsberg admitted that he signed and filed a false tax return for 2003 that failed to disclose his UBS account and income generated from the account’s assets. Zaltsberg also failed to file a Report of Foreign Bank or Financial Accounts (FBAR) with respect to the UBS account. The account, originally opened in 1993, was transferred into the name of Belton Capital Corp., a nominee Panamanian corporation, in 2000. Zaltsberg established Belton in late 2000 with the assistance of a foreign lawyer and a Swiss banker, in order to hide this account from the Internal Revenue Service (IRS).
U.S. citizens who have an interest in, or signature or other authority over, a financial account in a foreign country with assets in excess of $10,000 are required to disclose the existence of such account on Schedule B, Part III of their individual income tax return. Additionally, U.S. citizens must file an FBAR with the U.S. Treasury disclosing any financial account in a foreign country with assets in excess of $10,000 in which they have a financial interest, or over which they have signature or other authority.
Zaltsberg admitted that his failure to file the FBAR and his failure to disclose the existence of the UBS account on his personal income tax returns allowed him to under-report personal income for the years 2000 through 2006. In 2002, the account reached a high balance of over $2.6 million.
In April 2010, another New Jersey resident and UBS client, Harry Abrahamsen, of Oradell, pleaded guilty to failing to file an FBAR.
In September 2009, UBS client Juergen Homann of Saddle River, N.J., also pleaded guilty to failing to file an FBAR.
In February 2009, UBS entered into a deferred prosecution agreement pursuant to which the bank admitted to helping U.S. taxpayers hide accounts from the IRS. As part of their agreement, UBS provided the U.S. government with the identities of, and account information for, certain U.S. customers of UBS’ cross-border business.
At sentencing, Zaltsberg faces a maximum sentence of three years in prison and a maximum fine of $250,000, or twice the amount of financial gain to the defendant or loss to the IRS. Additionally, Zaltsberg has agreed to pay a 50 percent civil FBAR penalty for the calendar year, from 2000 through 2007, with the highest balance in the UBS account.
Acting Assistant Attorney General DiCicco and U.S. Attorney Fishman commend the Special Agents of the IRS, under the direction of William P. Offord in Springfield, N.J., who investigated the case.
The government is represented by Assistant U.S. Attorney Stacey A. Levine and Trial Attorney Michael C. Vasiliadis of the Department of Justice’s Tax Division.
Jury Convicts District of Columbia Fish Wholesaler & Two Employees for Purchasing Illegally Harvested Striped BassRead the Press Release
WASHINGTON—Following a five-week trial, a fish wholesaler and two of its employees were found guilty with purchasing illegally harvested striped bass, known locally as rockfish, from the Potomac River in Virginia and Maryland from 1995 through 2007, the Justice Department announced today.
Ocean Pro Ltd. d/b/a Profish, one of the largest District of Columbia seafood wholesalers, its vice-president Timothy Lydon of Bethesda, Md., and its fish buyer, Benjamin Clough of Graysonville, Md., were all convicted of a felony conspiracy to violate the Lacey Act. Ocean Pro and Lydon were also convicted of three felony Lacey Act violations, and Clough was convicted of three Lacey Act violations and a felony false statement charge. The Lacey Act is a federal law that prohibits individuals or corporations from transporting, selling or buying fish and wildlife harvested illegally.
Profish and Lydon began buying striped bass from Virginia fishermen fishing on the Potomac River in 1995. Lydon and Profish agreed to buy striped bass that they knew was illegally harvested by seven fishermen between 1995 and 2007. Clough joined Profish in 2001, and he continued to knowingly purchase the illegally harvested striped bass through 2007. In total, the defendants purchased over 270,000 pounds of striped bass illegally harvested from Maryland and Virginia waters, with a fair market retail value over $1.6 million. Evidence was also introduced at trial that they altered records regarding their striped bass purchases, and changed records indicating the harvest date on shellfish to make it appear that they were harvested more recently than they were.
Commercial striped bass fishermen are given a quota that they are allowed to catch each year. The fishermen are issued a set number of plastic tags that they are required to affix to every striped bass harvested. In addition, during certain times of the spring, commercial striped bass fishing is prohibited, or, if allowed, a maximum striped bass size limit is imposed that prohibits the harvest of striped bass over that size. The quota restrictions and tagging requirements are designed to prevent the over-harvest of striped bass, and the seasonal closing and size restrictions are designed to protect striped bass while they are spawning and to protect the larger, sexually mature and more productive spawning fish. These restrictions were implemented in the early 1990s following the crash of the striped bass fishery in the 1980s, which resulted in a moratorium on commercial striped bass harvest from 1985 to 1990.
Profish, Lydon, and Clough were willing to buy commercially caught striped bass, which were over the applicable size limit during the spawning season and did not have the required tags affixed. This allowed commercial fishermen to catch and sell more striped bass than they were allowed, and to catch and sell protected spawning striped bass from 1995 through 2007.
In early spring each year, striped bass (Morone saxatilis), known regionally as rockfish, enter the estuary or river where they were born to spawn, and then return to ocean waters to live, migrating along the coastline. Fish spawned from the Chesapeake Bay ecosystem contribute the greatest number of striped bass to the Atlantic coastal fishery, and the commercial fishery for Atlantic coastal striped bass is based primarily on migrations of fish born in the Chesapeake Bay area. Striped bass do not die after spawning. They may live up to 30 years and reach 50 pounds or more. The population of coastal Atlantic striped bass depends heavily upon the capability of older, larger, female striped bass to successfully reproduce.
The charges are a result of the investigation by an interstate task force formed by the U.S. Fish and Wildlife Service, the Maryland Natural Resources Police and the Virginia Marine Police, Special Investigative Unit in 2003. The task force conducted undercover purchases and sales of striped bass in 2003, engaged in covert observation of commercial fishing operations in the Chesapeake Bay and Potomac River area, and conducted detailed analysis of area striped bass catch reporting and commercial business sales records from 2003 through 2007.
To date, including these convictions, the task force has resulted in felony 22 felony convictions: fourteen fishermen from Maryland and Virginia, five individuals who operated seafood wholesale companies, and three seafood wholesale companies in Maryland, Virginia, and the District of Colombia.
These cases were prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the District of Maryland.
Wednesday 30 June 2010
Statement of the Attorney General Following Meetings with Afghan President Karzai, Minister of Justice, Attorney GeneralRead the Press Release
KABUL, AFGHANISTAN – Attorney General Eric Holder met with Afghan President Hamid Karzai, Minister of Justice Habibullah Ghalib and Attorney General Mohammad Ishaq Aloko today to discuss the department’s ongoing efforts to foster the rule of law in Afghanistan.
At the conclusion of the meetings, the Attorney General made the following statement:
I am pleased to be in Kabul today and to have had the opportunity to meet with President Karzai, Minister of Justice Ghalib, Attorney General Aloko and other distinguished Afghan officials.
The United States is committed to succeeding in Afghanistan and breaking the Taliban’s momentum. As we heard President Obama say on June 23, the United States will "persist and persevere" and "we will not tolerate a safe haven for terrorists who want to destroy Afghan security from within, and launch attacks against innocent men, women and children in our country and around the world."
There is no clearer sign of our commitment to Afghanistan than President Obama’s appointment of General David Petraeus as Commander of the International Security Assistance Force. General Petraeus fully participated in the U.S. policy review last fall, and he both supported and helped design the strategy that we have in place today.
We have watched with interest from Washington the positive steps President Karzai and his Cabinet have taken to help improve governance and enforce the rule of law. We applaud President Karzai for his actions and encourage him to continue his efforts as much work remains to be done.
The long-term stability of Afghanistan lies in the hands of the Afghan people. A key pillar of achieving stability is adherence to the rule of law. The United States is committed to partnering with Afghanistan to ensure that all Afghan citizens have access to a fair, efficient and transparent justice system. Rule of law should be an important dimension of the long-term U.S.-Afghan strategic partnership.
The support and commitment of the United States to improving the lives of the Afghan people and establishing the rule of law will outlast any military presence in the country. The Strategic Partnership that will be signed by our two Presidents by the end of this year will codify this long-term commitment.
And I personally commit that we will continue the partnerships that the U.S. Department of Justice has developed here in Afghanistan. We have sent some of our most experienced federal prosecutors and law enforcement agents – from our Criminal Division, the U.S. Attorneys’ Offices, the FBI, the DEA and the U.S. Marshals Service – to work here with their Afghan law enforcement counterparts. I am glad to have had the opportunity to meet with them today and to thank them for their service to the United States and to Afghanistan. We are proud to be standing with Afghanistan in the fight against corruption, narcotics trafficking and terrorism. The law enforcement partnerships we have established will endure.
Phoenix Attorney and Two Accountants Plead Guilty to Participation in Fraudulent Offshore Tax Shelter SchemeRead the Press Release
Attorney Steven W. Allen pleaded guilty in federal court in Arizona to taking part in a conspiracy to defraud the Internal Revenue Service (IRS) by promoting a fraudulent offshore trust scheme to hide his clients’ income, the Justice Department and IRS announced today. Allen P. Goodmansen, a certified public accountant, pleaded guilty to participating in the same conspiracy. Charles D. Kober, an accountant, pleaded guilty to aiding and assisting in the preparation of a false tax return for a client who used the trust scheme.
According to the indictment and the plea agreements, from at least 1997 to 2004, Allen, Goodmansen and others, participated in a scheme to help their clients evade their income taxes. Allen set up a series of offshore trusts in which his clients hid their income from the IRS. Allen also helped his clients hide their ownership of businesses and other assets by directing them to title their businesses and other assets in the names of their foreign trusts. Allen charged his clients between $10,000 and $30,000 to set up the trust packages.
The indictment and plea agreements further state that, at Allen’s direction, accountants Goodmansen and Kober prepared false trust tax returns to create the appearance that their clients’ income belonged to their trusts. Goodmansen and Kober also prepared fraudulent personal tax returns for some of their clients. These fraudulent tax returns omitted the income that the clients hid through the foreign trusts. To hide the fact that the scheme was taking place in Arizona, Allen caused the false trust tax returns to be mailed to the IRS from outside the United States. In fact, none of the clients’ money or other assets were outside of the United States. Goodmansen also personally used the scheme in 2002 to hide his own income from the IRS.
Allen and Goodmansen face a maximum sentence of five years in prison and a fine of $250,000. Kober faces a maximum sentence of three years in prison and a fine of $250,000. Allen will be sentenced on Sept. 20, 2010, and Goodmansen and Kober will be sentenced on Sept. 13, 2010.
This case was investigated by IRS Criminal Investigation in Phoenix, and is being prosecuted by Tax Division Trial Attorneys Monica B. Edelstein and Michael J. Romano.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.
North Carolina MS-13 Members Sentenced to Prison for Role in Racketeering ConspiracyRead the Press Release
WASHINGTON – Seven members of the gang known as La Mara Salvatrucha, or MS-13, were sentenced to prison Tuesday for their participation in a racketeering enterprise, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Anne M. Tompkins for the Western District of North Carolina.
All seven defendants were sentenced by Chief U.S. District Judge Robert J. Conrad Jr. of the Western District of North Carolina.
· Heverth Ulises Castellon, aka “Misterio” and “Sailor,” was sentenced to 240 months in prison and five years of supervised release;
· Jaime Sandoval, aka “Pelon,” was sentenced to 222 months in prison and five years of supervised release;
· Jose Efrain Ayala-Urbina, aka “Peligroso,” was sentenced to 168 months in prison and five years of supervised release;
· Santos Canales-Reyes, aka “Chicago,” was sentenced to 144 months in prison and five years of supervised release;
· Alexi Ricardo Ramos, aka “Pajaro,” was sentenced to 108 months in prison and five years of supervised release;
· Mario Guarjardo-Garcia, aka “Speedy,” “Iran Guerrero-Gomez,” and “Luis Angel Galindo,” was sentenced to 94 months in prison and five years of supervised release; and
· Nelson Hernandez-Ayala, aka “Sixteen,” was sentenced to 42 months in prison and three years of supervised release.
“These prison sentences send a strong message that participating in a gang like MS-13 will have serious consequences,” said Assistant Attorney General Breuer. “The Department of Justice and our partners in state and local law enforcement will continue aggressively to prosecute and seek significant prison sentences for individuals who participate in violent, criminal organizations.”
“The impact of gang-related criminal activities on a community like Charlotte is a major concern of law enforcement and residents. The U.S. Attorney’s Office, along with our law enforcement partners, pledges to continue with our swift and thorough response to gangs who persist as substantial threats to our public safety,” said U.S. Attorney Tompkins.
On May 18, 2010, four other MS-13 members were sentenced to prison for their participation in the same conspiracy.
· Yelson Olider Castro-Licona, aka “Diablo,” was sentenced to 75 months in prison and three years of supervised release;
· Oscar Manuel Moral-Hernandez, aka “Truchon,” was sentenced to 34 months in prison and three years of supervised release;
· Manuel Cruz, aka “Silencioso,” was sentenced to 27 months in prison and three years of supervised release; and
· Javier Molina, aka “Big Psycho” and “Gringo,” was sentenced to time served and three years of supervised release.
All 11 defendants previously pleaded guilty to a racketeering conspiracy (RICO) charge, admitting that they conspired to participate in a pattern of racketeering activity with others involved in the MS-13 gang in the Western District of North Carolina and elsewhere from approximately 2003 until July 27, 2009. This activity included murder, robbery, extortion, witness tampering, obstruction of justice, distribution and possession with intent to distribute cocaine and marijuana, and various federal firearms violations.
The RICO count to which all eleven defendants pleaded guilty charged that each defendant, along with others, were involved in the MS-13 gang throughout North Carolina, including Mecklenburg, Guilford, Wake, and Durham counties, and elsewhere. According to court documents, each of the individuals was required to complete an initiation process, often referred to as being “jumped in” or “beat in,” in order to join MS-13. Court documents further describe that each member engaged in criminal activity and was sometimes required to commit acts of violence to maintain membership and discipline within the gang, including violence against rival gangs. Gang members were responsible for preserving and protecting the power, territory, reputation and profits of the gang through the use of intimidation, violence, threats of violence, assaults and murder.
The RICO conspiracy charge was part of an indictment originally returned by a federal grand jury in Charlotte, N.C., in June 2008. The indictment charged 26 members of MS-13 with conspiring to participate in the affairs of a racketeering enterprise and the related criminal charges. Six of the 26 members were convicted in January 2010 by a federal jury in Charlotte of criminal charges including the RICO conspiracy, murder, attempted murder, assault, cocaine trafficking and numerous related federal firearms offenses. Those six defendants are currently in federal custody awaiting sentencing.
According to the indictment, the MS-13 gang is a violent international criminal organization composed primarily of immigrants or descendants of immigrants from El Salvador. The purpose of the racketeering enterprise and conspiracy was to preserve and protect the power, territory and profits of the MS-13 enterprise through violent assault, murder, threats of violence and intimidation.
On April 19, 2010, a federal jury found Alejandro Enrique Ramirez Umana guilty of the RICO count; two counts of murder in aid of MS-13; two counts of murder resulting from the use of a gun in a violent crime; possession of a firearm by an illegal alien; one count of extortion; and two criminal counts associated with witness tampering or intimidation. On April 28, 2010, the federal jury voted unanimously to impose the death penalty against Umana. Umana is also currently in federal custody awaiting a July 27, 2010, formal sentencing hearing.
The long-term investigation was initiated by the FBI’s North Carolina “Safe Streets” Gang Task Force when a witness came forward with information about the violent operations of a single MS-13 cell operating out of the Charlotte area. The Task Force is composed of the FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, U.S. Immigration and Customs Enforcement, the Charlotte-Mecklenburg Police Department, and the Gastonia, N.C., Police Department. The FBI’s MS-13 National Gang Task Force played a significant role in coordinating the international aspects of the investigation, and additional critical assistance was provided by the Transnational Anti-Gang (TAG) Center. Additional investigative support was provided by the North Carolina State Bureau of Investigation, as well as the Greensboro Police Department and the Durham Police Department. Substantial assistance has been afforded by the U.S. Marshals Service for the Western District of North Carolina. The investigation of the wide-sweeping enterprise resulted in the prosecution of 26 MS-13 members. Eighteen of the defendants have pleaded guilty to the RICO conspiracy in the indictment. Eleven of those defendants have now been sentenced and seven other defendants who have pleaded guilty await sentencing.
The case was prosecuted by Assistant U.S. Attorneys Kevin Zolot, Jill Rose and Adam Morris from the U.S. Attorney’s office for the Western District of North Carolina, and Trial Attorney Sam Nazzaro from the Criminal Division’s Gang Unit.
Founder and Treasurer of Labor Union Charged with Mail FraudRead the Press Release
The founder and treasurer of the National Association of Special Police and Security Officers (NASPSO) was charged with four counts of mail fraud in connection with his operation of a pension plan for members of NASPSO, a labor union representing private security guards assigned to protect federal buildings in the metro Washington area. The charges were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; Mabel Capolongo, Director of the Philadelphia Regional Office of the Employee Benefits Security Administration of the Department of Labor; and Robert L. Panella, Special Agent in Charge of the Office of Inspector General, Office of Labor Racketeering and Fraud Investigations of the Washington, D.C. , Regional Office.
Caleb Gray-Burriss, 59, of Washington, was arrested Tuesday in Washington, and charged in an indictment returned by a grand jury on June 25, 2010, and unsealed today. Gray-Burriss will make his initial appearance tomorrow in U.S. District Court in Washington.
The indictment charges that, from approximately June 2004 through August 2006, Gray-Burriss wrote numerous checks to himself or to other third parties from the checking account where he had placed funds intended for the NASPSO pension plan to cash. The indictment alleges that Gray-Burriss spent more than $100,000 of the pension plan funds in this way, while at the same time falsely maintaining that it was an operational fund that he was properly administering and that was providing benefits to the beneficiaries.
The investigation leading to the indictment and arrest of Gray-Burriss was conducted by investigators from two agencies of the U.S. Department of Labor – the Employee Benefits Security Administration and the Office of Inspector General, Office of Labor Racketeering and Fraud Investigations. The case is being prosecuted by Trial Attorney Vincent Falvo of the Criminal Division’s Organized Crime and Racketeering Section.
Five Brothers Charged in Human Trafficking Scheme That Smuggled Young Ukrainian MigrantsRead the Press Release
WASHINGTON - An indictment unsealed today in Philadelphia charged Omelyan Botsvynyuk, Stepan Botsvynyuk, Mykhaylo Botsvynyuk, Dmytro Botsvynyuk, and Yaroslav Botsvynyuk, a/k/a Yaroslav Churuk, with extortion and conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO) for their alleged involvement in a human trafficking operation, the Justice Department announced.
Assistant Attorney General for Civil Rights Thomas E. Perez, U.S. Attorney Zane David Memeger of the Eastern District of Pennsylvania, FBI Special Agent-in-Charge Janice K. Fedarcyk of the Philadelphia Field Office and ICE Special Agent-in-Charge John P. Kelleghan announced the indictment.
Four of the Botsvynyuk brothers were arrested today and are charged with conspiring to engage in a pattern of racketeering activity, from the fall of 2000 through the spring of 2007, by operating a human trafficking organization that smuggled young Ukrainian migrants into the United States and forced them to work for the brothers with little or no pay.
According to the indictment, the defendants promised the victims they would earn $500 per month with free room and board by working for the Botsvynyuk organization. They smuggled the workers into the United States and put them to work as cleaning crews in retail stores, private homes and office buildings without paying them. They used physical force, threats of force, sexual assault and debt bondage to keep the victims in involuntary servitude. The indictment further alleges that even after some of the victims escaped, the defendants continued with their extortionist activities in order to recoup the organization’s investment in the workers. If direct threats failed and the workers did not return or make good on their debts, the Botsvynyuk brothers threatened violence to the workers’ families still residing in Ukraine. In one instance, according to the indictment, Omelyan Botsvynyuk threatened to place a worker’s then nine-year-old daughter into prostitution to pay off the family debt.
"Human trafficking is a scourge that denies human beings their fundamental right to freedom. Those who prey on the most vulnerable through force, fraud or coercion will be investigated and prosecuted to the fullest extent of the law," said Assistant Attorney General Perez. "The Civil Rights Division will continue to work with U.S. Attorney's Offices nationwide, law enforcement agencies across the globe, and victim assistance organizations to vindicate the rights of victims, bring traffickers to justice and dismantle human trafficking networks."
"The victims in this case entered this country with dreams of great opportunity only to find themselves living a nightmare," said U.S. Attorney Memeger. "They trusted this band of brothers, they performed the work they were told only to be rewarded with false promises, threats of brutality, and deprivation of their basic human needs. No one trying to immigrate to this country should have to endure such mistreatment."
Rather than bringing the workers to the United States legally, the indictment alleges that the Botsvynyuk organization obtained tourist visas to Mexico and had operatives who coached the workers on how to enter the United States illegally. While some of the workers successfully entered the country, others were taken into custody by U.S. immigration officials and remained in detention for almost two months. Once the victims were released, with immigration documents and summonses to appear for immigration hearings, the Botsvynyuk organization transported them to Philadelphia either by bus or by plane. The brothers then confiscated the immigration documents and summonses from the workers and put them to work at night cleaning large chain stores, such as Target and Walmart, as well as smaller stores.
Throughout their employment with the brothers, the workers lived with up to five people in one room, slept on dirty mattresses on the floor, and were rarely, if ever, paid. None of the victims was paid what was promised and they were told that they had to continue working until their debts, ranging from $10,000 to $50,000, were paid. Workers were allegedly struck and beaten, sometimes in the presence of others, if they attempted to quit or leave the employ of the Botsvynyuk brothers. According to the indictment, one female worker was brutally raped on several occasions. After some workers escaped, Omelyan Botsvynyuk resorted to extorting the workers’ families in Ukraine, threatening them with harm if the workers did not return to work or pay their debts.
Omelyan Botsvynyuk, 51, was arrested in Germany; Stepan Botsvynyuk, 35, was arrested in Philadelphia; Mykhaylo and Yaroslav Botsvynyuk, 41, were arrested in Canada. Dmytro Botsvynyuk remains in Ukraine, a country that has not entered into an extradition treaty with the United States. The defendants in Canada and Germany were arrested pursuant to Interpol arrest warrants and are in the process of being extradited to the United States to face the charges.
If convicted of all charges, the defendants face the following maximum penalties: Omelyan Botsvynyuk - life in prison and a $750,000 fine; Stepan Botsvynyuk - 40 years in prison and a $500,000 fine; and defendants Mykhaylo, Dmytro, and Yaroslav Botsvynyuk - 20 years in prison and a $250,000 fine.
The case was investigated by the Joint FBI Organized Crime/ICE Human Trafficking Alien Smuggling Task Force. Assistance was provided by Pennsylvania State Police, the Philadelphia Police Department, the Department of Labor and Racketeering - Office of Inspector General, Toronto Police Department, German National Police, Berlin State Police, Ukraine Security Service, US National Central Bureau, the Department of Justice Office of International Affairs, and INTERPOL. It is being prosecuted by Assistant U.S. Attorney Daniel A. Velez, and Trial Attorney Eric Gibson of the Civil Rights Division.
Attorney General Travels to Afghanistan for Meetings with U.S., Afghan OfficialsRead the Press Release
KABUL, AFGHANISTAN – Attorney General Eric Holder arrived in Kabul, Afghanistan today for meetings with Afghan and U.S. officials. The Attorney General will discuss the Department’s ongoing efforts to foster the rule of law in Afghanistan and how the two countries can build lasting relationships between law enforcement agencies and prosecutors.
"Fighting corruption and supporting the rule of law in Afghanistan are top priorities for this Administration, and we will continue to assist the Afghan government in creating and sustaining the effective criminal justice system to which the Afghan people are entitled," Attorney General Holder said.
Department attorneys located in Kabul provide training, mentoring and guidance to the Criminal Justice Task Force, a team of Afghan prosecutors and police investigators responsible for the investigation and prosecution of significant narcotics and narcotics-related (such as corruption and money laundering) offenses before the Central Narcotics Tribunal. The Tribunal has exclusive nationwide jurisdiction for all major narcotics and narcotics-related corruption cases. DOJ attorneys also advise and mentor Afghan prosecutors and investigators in the Attorney General’s Anti-Corruption Unit and Major Crimes Task Force. DOJ attorneys provide advice and assistance in the development of criminal laws and procedures for Afghanistan and offer operational advice and assistance to the U.S. law enforcement agencies posted in Afghanistan.
DEA agents located in Afghanistan work to establish the drug enforcement institutions and capabilities needed to enforce the rule of law in Afghanistan, including successfully identifying, disrupting, and dismantling major drug trafficking organizations that fuel the insurgency and profit from the narco-economy. In addition, FBI agents in Afghanistan support counterterrorism efforts and intelligence gathering as well as Afghanistan’s Major Crimes Task Force, which focuses on anti-kidnapping, anti-corruption, and other organized crime. Personnel from the United States Marshals Service advise and train Afghanistan’s Judicial Security Unit on witness and judicial security.
At the conclusion of his meetings, the first for an Attorney General in Afghanistan, the Attorney General will return to Washington.
Tuesday 29 June 2010
Taiwan LCD Producer Agrees to Plead Guilty and Pay $30 Million Fine for Participating in LCD Price-Fixing ConspiracyRead the Press Release
WASHINGTON - A Taiwan thin-film transistor-liquid crystal display (TFT-LCD) panel producer and seller has agreed to plead guilty and to pay a $30 million criminal fine for its role in a global conspiracy to fix the prices of TFT-LCD panels, the Department of Justice announced today.
According to a one-count felony charge filed today in U.S. District Court in San Francisco, HannStar Display Corporation, based in Taipei, Taiwan, participated in a conspiracy from Sept. 14, 2001, to Jan. 31, 2006, to fix the prices of TFT-LCD panels sold worldwide. According to the plea agreement, which is subject to court approval, HannStar has agreed to cooperate with the department’s ongoing TFT-LCD investigation.
TFT-LCD panels are used in computer monitors and notebooks, televisions, mobile phones and other electronic devices. By the end of the conspiracy period, the worldwide market for TFT-LCD panels was valued at $70 billion. Companies directly affected by the LCD price-fixing conspiracy are some of the largest computer and television manufacturers in the world, including Apple, Dell and Hewlett Packard.
"The Antitrust Division has thus far charged seven companies and 17 executives as a result of its investigation into the LCD industry, and we are committed to vigorously prosecuting corporations and individuals who engage in this type of price fixing scheme," said Christine Varney, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.
According to the charge, HannStar carried out the conspiracy by agreeing during meetings, conversations and communications to charge prices of TFT-LCD panels at certain pre-determined levels and issuing price quotations in accordance with the agreements reached. As a part of the conspiracy, HannStar exchanged information on sales of TFT-LCD panels for the purpose of monitoring and enforcing adherence to the agreed-upon prices.
HannStar is charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Including today’s charge, as a result of this investigation, seven companies have pleaded guilty or have agreed to plead guilty and have been sentenced to pay or have agreed to pay criminal fines totaling more than $890 million. Additionally, 17 executives have been charged to date in the department’s ongoing investigation.
Today’s charge is the result of a joint investigation by the Department of Justice Antitrust Division’s San Francisco Field Office and the FBI in San Francisco.
Anyone with information concerning illegal conduct in the TFT-LCD industry is urged to call the Antitrust Division’s San Francisco Field Office at 415-436-6660 or visit www.justice.gov/atr/contact/newcase.htm.
Six Alleged Members of the Almighty Latin King and Queen Nation Indicted for Racketeering ConspiracyRead the Press Release
WASHINGTON – Six alleged members of the gang known as Almighty Latin King and Queen Nation (Latin Kings) have been indicted for their alleged roles in a racketeering conspiracy in Hammond, Ind., and elsewhere, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney David Capp of the Northern District of Indiana.
The indictment, returned by a federal grand jury on June 17, 2010, and unsealed today in Hammond, Ind., charges Alexander Vargas, aka "Pacman," 33, of Highland, Ind.; Sisto Bernal, aka "Cisco," aka "Shug," 44, of Chicago; Jose Zambrano, aka "Speedy," 30, of Sauk Village, Ill.; Jason Ortiz, aka "Creeper," 27, of Chicago; Brandon Clay, aka "Cheddar," aka "Swiss," aka "Slick," 23, of Chicago; and Jermaine Ellis, aka "J-Dog," aka "Donnie Brosco," of Chicago, with conspiracy to engage in racketeering activity. Ortiz and Clay are also each charged with two counts of murder, one count of using and carrying a firearm to commit murder during and in relation to a crime of violence, two counts of murder resulting from the use and carrying of a firearm during and in relation to a crime of violence, one count of possessing a firearm after having been convicted of a felony, and one count of possessing stolen firearms.
The indictment alleges the defendants engaged in a series of acts in furtherance and in promotion of the Latin Kings. As alleged in the indictment, Vargas, Bernal and Zambrano traveled from the Chicago/northwest Indiana area to Texas to meet with the Texas Latin Kings hierarchy on May 29, 2005. As alleged in the indictment, Bernal threatened to "smash" the Texas Latin Kings leadership if they did not comply with the rules established by the Chicago-area Latin Kings hierarchy. During the meeting, Bernal allegedly designated the Texas Latin Kings state enforcer as the person who should communicate between the Texas and Chicago Latin Kings hierarchy.
The indictment also alleges that Ortiz, Clay and Ellis participated in the murder of rival gang members James Walsh and Gonzalo Diaz. The murders took place outside of a bar in Griffith, Ind., in the early morning of Feb. 25, 2007.
Upon conviction, Ortiz and Clay face a maximum sentence of life in federal prison or the death penalty. The remaining defendants face a maximum sentence of 20 years in prison.
Vargas, Bernal, Zambrano, Clay and Ortiz were arrested today. Zambrano made his initial appearance before U.S. Magistrate Judge Andrew Rodovich on Monday, and Vargas, Bernal, Clay and Ortiz made their initial appearance before Judge Rodovich today. Ellis is currently being held in custody in Chicago and will be scheduled for an initial appearance on a later date.
According to the indictment, the Latin Kings is a nation-wide gang that originated in Chicago and has spread throughout the United States. The Latin Kings is a well organized street gang that has specific leadership and is comprised of regions that include multiple chapters.
As alleged in the indictment, the Latin Kings enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault and threats against those who violate the rules or pose a threat to the Latin Kings. Members are required to follow the orders of higher-ranking members, including taking on assignments often referred to as "missions." As alleged in the indictment, missions can range from a leader ordering the assault of a rival gang member or a Latin Kings member who had committed a violation of the rules, to the murder of a rival gang member or a Latin Kings member who may have committed an egregious violation of the rules.
This case is being investigated by the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement; the National Gang Targeting, Enforcement & Coordination Center (GangTECC); the National Gang Intelligence Center; the Chicago Police Department; the Griffith Police Department; the Highland Police Department; the Hammond Police Department; and the Houston Police Department.
The case is being prosecuted by Joseph A. Cooley of the Criminal Division’s Gang Unit and David Nozick of the U.S. Attorney’s Office for the Northern District of Indiana.
The indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Miami Man Indicted for Purchasing, Selling and Using Stolen Credit Card InformationRead the Press Release
WASHINGTON - A Miami man was charged today with buying, selling and using stolen credit card information, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida; Special Agent in Charge Michael K. Fithen of the U.S. Secret Service, Miami Field Office; and Acting Special Agent in Charge Kenneth T. Jenkins Jr., of the U.S. Secret Service, Criminal Investigative Division.
Juan Javier Cardenas was charged in a three-count indictment returned today by a federal grand jury in Miami with conspiracy to traffic in unauthorized credit card numbers and to possess unauthorized credit card numbers with intent to defraud; trafficking in unauthorized credit card numbers; and fraudulent possession of equipment to make credit cards.
According to the indictment, from November 2007 through May 2009, Cardenas allegedly purchased credit card information that had been stolen and obtained by fraudulent means from co-conspirators whom he met through the Internet. Cardenas allegedly resold that information to others, who used it to make fraudulent credit card purchases. In addition, Cardenas allegedly personally manufactured credit cards using the information he had purchased. In total, Cardenas purchased approximately 26,669 credit card numbers during the course of the scheme charged in the indictment.
If convicted, Cardenas faces maximum sentences of five years in prison on the conspiracy charge, 10 years in prison on the charge of trafficking in unauthorized credit card numbers, and 15 years in prison on the charge of fraudulent possession of equipment to make credit cards. Cardenas also faces fines and terms of supervised release on each of the charged counts, as well as forfeiture of any property or proceeds derived from his criminal activities.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent until convicted through due process of law.
This case is being prosecuted by Assistant U.S. Attorney Marc Osborne of the U.S. Attorney’s Office for the Southern District of Florida and Trial Attorney Joseph E. Springsteen of the Criminal Division’s Computer Crime and Intellectual Property Section. The case is being investigated by the U.S. Secret Service.
Cincinnati Area Man Pleads Guilty to Aegis-Related Tax CrimesRead the Press Release
WASHINGTON – Homer Richardson of Loveland, Ohio, pleaded guilty in federal district court in Cincinnati to corruptly impeding the due administration of the Internal Revenue Code, the Justice Department and Internal Revenue Service (IRS) announced today. Richardson also pleaded guilty to four counts of filing false tax returns for himself and others.
According to court documents, Richardson marketed and promoted sham trusts for the now-defunct Aegis Company. Taxpayers who used these trusts filed false federal individual income tax returns understating their income. Richardson also assisted these taxpayers by obstructing their IRS audits by, among other ways, sending threatening letters to IRS employees and instructing members not to produce records as requested by the IRS. Richardson also filed his own false tax returns which falsely understated his income.
Richardson faces a maximum sentence of 15 years in prison and a $1.25 million fine. Judge Sandra S. Beckwith, who is presiding over the matter, did not schedule a sentencing date.
John A. DiCicco, Acting Assistant Attorney General for the Tax Division; Carter M. Stewart, U.S. Attorney for the Southern District of Ohio; and Jose Gonzalez, Special Agent in Charge, IRS Criminal Investigation, announced the pleas. The case was investigated by IRS Criminal Investigation and is being prosecuted by Tax Division trial attorneys Tom Voracek and Rita Calvin.
California Couple Sentenced for Their Role in Hate-motivated BeatingRead the Press Release
WASHINGTON – Today in Sacramento, Calif., U.S. District Court Judge John A. Mendez sentenced a couple from Fairfield, Calif., for their roles in a July 2007 beating of an American citizen who is originally from India, announced the Department of Justice. Judge Mendez sentenced Joseph Silva, 56, and his wife, Georgia Silva, 52, to 18 months in prison and three years of supervised released.
At the March 2010 trial, the jury heard that the victim was attempting to enjoy El Dorado Beach on Lake Tahoe, Calif., when the Silvas confronted and attacked him. The evidence showed that Georgia Silva initially hurled derogatory racial and ethnic slurs at the victim and his then girlfriend. When the victim called the police, Georgia Silva assaulted the victim, knocking him to the ground. At the trial, the jury heard a recording of the call made by the victim to the police and statements the Silvas were making to the victim.
After knocking the victim to the ground, and while Georgia Silva was on top of the victim, her husband kicked the victim in the head. The attack caused fractures to bones in the victim’s face and he was transported by ambulance to a local hospital. Witnesses to the incident recounted that Georgia Silva also insulted and attempt to spit upon another man of Indian descent.
"This case demonstrates that hate-motivated violence has no place in twenty-first century America, and such crimes will be vigorously prosecuted and punished," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "Americans of all races, colors, and ethnicities should feel free to use public parks and facilities without fear of intimidation and violence."
"Bias motivated violence has no place in our society. Vigorously enforcing federal hate crime laws is among the highest priorities of the U.S. Department of Justice," said Benjamin B. Wagner, U.S. Attorney for the Eastern District of California. "We will protect the rights of all persons in this richly diverse community to avail themselves of public facilities without fear of hate mongers and racists."
The case was investigated by FBI Special Agent Christopher Campion with the assistance of Special Agent Brad J. Bilderback. Officer Rhett Gann of the South Lake Tahoe Police Department also assisted in the investigation and testified at the trial.
The case was prosecuted by First Assistant U.S. Attorney Carolyn K. Delaney and Civil Rights Division Trial Attorneys C. Douglas Kern and Michael J. Frank.
Agreement Will Ensure the Start of Cleanup of Former Landfill Near South Lake Tahoe, CaliforniaRead the Press Release
WASHINGTON—A settlement with El Dorado County, Calif., will ensure the beginning of the cleanup, at an estimated cost of approximately $7 million, of the Meyers Landfill Site, located outside of the city of South Lake Tahoe, Calif., the Justice Department and U.S. Department of Agriculture, Forest Service announced today.
The agreement, lodged in U.S. District Court in Sacramento, resolves certain federal claims against El Dorado County for clean up of the Meyers Landfill site. In addition, the agreement resolves certain counter-claims made by the county against the United States for cleanup of the site.
Under the settlement, El Dorado County will be responsible for consolidating the waste mass at the site and placing it under an impervious cap. The cap and associated drainage features around the cap will prevent the infiltration of precipitation and snowmelt into the landfill waste mass thus eliminating or significantly reducing additional groundwater contamination. A landfill gas venting and monitoring system will also be installed.
The U.S. Forest Service is continuing to investigate groundwater contamination related to the site. Several years of study will be required after the landfill cap is constructed to determine the effect on the groundwater, and what remedy may be required to address any remaining groundwater contamination.
The Meyers Landfill site is a former municipal waste dump and is located wholly on National Forest System lands administered by the Lake Tahoe Basin Management Unit (LTBMU) of the U.S. Forest Service. The site is located in an unincorporated portion of El Dorado County approximately 4.5 miles south of Lake Tahoe. The site was operated as a landfill from about 1946 through 1971 under a series of Forest Service special use permits that were issued to private parties and since 1955 to El Dorado County.
Between 1991 and 1994, volatile organic compounds (VOCs), likely produced by degradation of organic material within the landfill waste mass, were detected in the groundwater beneath the former landfill disposal area. In August 1996, VOCs, including vinyl chloride, were detected down gradient of the site, including in Saxon Creek, a tributary of Lake Tahoe. The Forest Service initiated a response action under the Superfund law or the Comprehensive Environmental Response, Compensation, and Liability Act to determine the extent and impacts of the VOC contamination, and in 2001 it filed litigation against El Dorado County and the city of South Lake Tahoe.
"This settlement outlines specific steps that will be taken to ensure that the contamination at the Meyers Landfill site will be cleaned up and contained," said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division. "It is important that we ensure that longstanding hazardous waste sites are cleaned up and our natural resources are protected."
"We are excited for construction to begin on the ground; this project will provide for the long-term protection of public health and safety and water quality in the Lake Tahoe Basin," said Eli Ilano, deputy forest supervisor, Lake Tahoe Basin Management Unit.
The partial consent decree, lodged in the U.S. District Court for the Eastern District of California, in Sacramento, is subject to a 30 day public comment period and approval by the federal court. A copy of the partial consent decree is available on the Justice Department website at www.justice.gov/enrd/Consent_Decrees.html
Monday 28 June 2010
Ten Alleged Secret Agents Arrested in the United StatesRead the Press Release
Eight individuals were arrested Sunday for allegedly carrying out long-term, "deep-cover" assignments in the United States on behalf of the Russian Federation, the Justice Department announced today. Two additional defendants were also arrested Sunday for allegedly participating in the same Russian intelligence program within the United States.
In total, 11 defendants, including the 10 arrested, are charged in two separate criminal complaints with conspiring to act as unlawful agents of the Russian Federation within the United States. Federal law prohibits individuals from acting as agents of foreign governments within the United States without prior notification to the U.S. Attorney General. Nine of the defendants are also charged with conspiracy to commit money laundering.
The defendants known as "Richard Murphy" and "Cynthia Murphy" were arrested yesterday by FBI agents at their residence in Montclair, N.J., and are expected to appear in federal court in Manhattan today. Vicky Pelaez and the defendant known as "Juan Lazaro" were arrested yesterday at their residence in Yonkers, N.Y., and are expected to appear in federal court in Manhattan today. Anna Chapman was arrested in Manhattan yesterday and is expected to appear in federal court in Manhattan today.
The defendants known as "Michael Zottoli" and "Patricia Mills" were arrested yesterday at their residence in Arlington, Va., and are appearing in federal court in Alexandria, Va., today. Defendant Mikhail Semenko was arrested yesterday at his residence in Arlington and is appearing in federal court in Alexandria today. In addition, the defendants known as "Donald Howard Heathfield" and "Tracey Lee Ann Foley" were arrested at their residence in Boston yesterday and are appearing in federal court in Boston today. The defendant known as "Christopher R. Metsos" remains at large.
The charges are filed in U.S. District Court for the Southern District of New York. The charge of conspiracy to act as an agent of a foreign government without notifying the U.S. Attorney General carries a maximum penalty of five years in prison. All the defendants are charged with this violation. The charge of conspiracy to commit money laundering carries a maximum penalty of 20 years in prison. All the defendants except Chapman and Semenko are charged with this violation.
This case is the result of a multi-year investigation conducted by the FBI; 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 is being 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.
The charges and allegations contained in the criminal complaints are merely allegations, and the defendants are presumed innocent unless and until proven guilty.
Download the documents:
Complaint #1 (PDF)
Complaint #2 (PDF)Technip S.A. Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $240 Million Criminal PenaltyRead the Press Release
Technip S.A., a global engineering, construction and services company based in Paris, 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 against Technip in the U.S. District Court for the Southern District of Texas. The two-count information charges Technip with one count of conspiracy and one count of violating the FCPA. Technip’s American Depository Shares traded on the New York Stock Exchange from 2001 until 2007.
Technip, Kellogg Brown & Root Inc. (KBR), and two other companies 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, Technip 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 Technip and the joint venture in obtaining the EPC contracts. At crucial junctures preceding the award of EPC contracts, a senior executive of Technip, KBR’s former CEO, Albert "Jack" Stanley, and others 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, Technip 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 Technip for two years. Technip agreed, among other things, to retain an independent compliance monitor for a two-year period to review the design and implementation of Technip’s compliance program and to cooperate with the department in ongoing investigations. If Technip abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the term of the agreement expires.
In a related criminal case, Stanley pleaded guilty in September 2008 to conspiring to violate the FCPA for his participation in the bribery scheme. In another related criminal case, 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 another related criminal case, 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.
Today, Technip also reached a settlement of a related civil complaint filed by the Securities and Exchange Commission (SEC) charging Technip with violating the FCPA’s anti-bribery, books and records, and internal controls provisions. As part of that settlement, Technip agreed to pay $98 million in disgorgement of profits relating to those violations.
Including today’s resolutions, a total of $917 million in criminal and civil penalties have been obtained to date as a result of the ongoing Department of Justice and SEC investigations of the scheme to bribe Nigerian government officials in order to win the Bonny Island EPC contracts.
"The resolutions announced today demonstrate once again the department’s commitment to aggressively investigate and prosecute international bribery by U.S. and foreign corporations alike," said Principal Deputy Assistant Attorney General Mythili Raman of the Criminal Division. "Together with KBR and others, the French company Technip engaged in a sophisticated, decade-long scheme to bribe a wide array of Nigerian government officials in order to win and retain billions of dollars in contracts. The fact that Technip now must pay criminal penalties and civil disgorgement totaling $338 million should make clear that, in the end, bribery of foreign officials will have consequences."
"Today’s criminal penalty is an example of how companies that intentionally bribe foreign government officials for their own gain will be prosecuted. The FBI is committed to pursuing those who disrupt the level playing field to which companies in the U.S. and around the world are entitled," said FBI Assistant Director Kevin L. Perkins. "This case demonstrates the FBI’s commitment to aggressively investigate violations of this law. We will continue to investigate FCPA matters by working in partnership with other law enforcement agencies, both foreign and domestic, to ensure that both corporations and executives who bribe foreign officials in return for lucrative business contracts are punished."
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 in gathering evidence abroad and facilitating international cooperation. Significant assistance was provided by the SEC’s Division of Enforcement and by the authorities in France, Italy, Switzerland and the United Kingdom.
Justice Department and Town of Gretna, Virginia, <br /> Reach Agreement to Ensure Nondiscriminatory Zoning PracticesRead the Press Release
WASHINGTON – The Justice Department today announced a comprehensive settlement agreement with the town of Gretna, Va., under the Americans with Disabilities Act (ADA) to eliminate barriers for providers of foster care services who wish to provide community placements in their homes for persons with disabilities. Under the agreement, the town has agreed to adopt and implement policies, practices and procedures to ensure nondiscriminatory zoning practices that might otherwise limit such community placements.
The settlement agreement resolves allegations that Gretna violated title II of the ADA when it denied a special use permit to a resident because she wanted to provide foster-care type services in her home to two adults with mental retardation. The arrangement was to be coordinated and overseen by a private non-profit agency that places individuals with cognitive and developmental disabilities in private homes in conjunction with federal Medicaid funds and state programs and funds designated for such purposes.
Under the terms of the settlement agreement, the town will implement a training program for town officials involved in zoning decisions regarding Gretna’s obligations under title II of the ADA. The town will report to the Justice Department on future land use decisions involving individuals with disabilities or persons providing services for such individuals. The town has also agreed to pay $60,000 in damages to the complainant.
"The integration of individuals with disabilities in all aspects of social and civic life, consistent with the mandate of the Supreme Court in the landmark Olmstead v. L.C. decision, is a priority of the Civil Rights Division," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Civil Rights Division will continue to vigorously pursue zoning discrimination to ensure that individuals with disabilities have a full and equal opportunity to participate in all facets of their communities."
The ADA protects individuals with disabilities from discrimination in all activities of state and local government entities, including zoning and land use decisions. 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.
Former Chicago Police Commander Convicted of Perjury, Obstruction of Justice Related to Torture of SuspectsRead the Press Release
WASHINGTON – The Justice Department announced that a federal jury in Chicago today convicted former Chicago Police Department (CPD) Commander Jon Burge, 60, of Apollo Beach, Fla., on perjury and obstruction charges related to his denials that he participated in the torture of suspects in police custody decades ago. The jury found that Burge lied and impeded court proceedings in November 2003 when he provided false statements in a civil lawsuit that alleged that he and others tortured and abused people in their custody.
During the trial, several victims testified that they had been tortured by Burge and other officers who worked for him in area two of the CPD. Various witnesses testified that the officers administered electric shocks to their genitals, suffocated them with typewriter covers, threatened them with loaded guns and burned them on radiators. The jury found that Burge had lied under oath when he claimed that he did not participate in any of these acts of torture, and that he was unaware of any other officers having done so.
"For decades, Jon Burge’s horrific actions ran contrary to all that our justice systemstands for. Burge betrayed the public trust, first by abusing suspects in his custody, and then by lying under oath to cover up what he and other officers had done. The jury’s verdict allows those harmed by his actions to finally start the healing process, " said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Civil Rights Division will aggressively prosecute any officer who violates the Constitution."
"At long last, a measure of justice was delivered today when a jury returned a verdict of guilty against Jon Burge on obstruction of justice and perjury. The verdict necessarily found that torture and abuse occurred in police districts in the city of Chicago in the 1980s. It’s disgraceful that torture happened and sad that it took so long to bring Burge to justice, and the only thing that would have been worse is if this measure of justice never happened," said Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois.
Burge faces a maximum penalty of 20 years in prison on each count of obstruction of justice and five years in prison for perjury.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorneys David Weisman and April Perry and Civil Rights Division Trial Attorney Betsy Biffl.
Friday 25 June 2010
Virginia Resident Sentenced to 37 Months in Prison for Bribing Foreign Government OfficialsRead the Press Release
John Webster Warwick, a Virginia Beach, Va., resident, was sentenced today in U.S. District Court in Richmond, Va., to 37 months in prison for his role in a conspiracy to pay bribes to former Panamanian government officials to secure maritime contracts, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; Assistant Director in Charge Shawn Henry of the FBI’s Washington Field Office, Special Agent in Charge Michael Morehart of the FBI’s Richmond Field Office and Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement’s (ICE) Washington office.
U.S. District Court Judge Henry E. Hudson also sentenced Warwick to two years of supervised release following his prison term. In addition, Warwick forfeited $331,000 in proceeds of the crime.
On Feb. 10, 2010, Warwick, 64, pleaded guilty to a one-count indictment charging him with conspiring to make corrupt payments to foreign government officials for the purpose of securing business for Ports Engineering Consultants Corporation (PECC) in violation of the Foreign Corrupt Practices Act (FCPA). Under the FCPA, it is a crime to pay or offer to pay anything of value to a foreign government official in order to obtain or retain business.
According to court documents, Warwick, Charles Jumet and others conspired to pay money secretly to Panamanian government officials for awarding contracts to PECC to maintain lighthouses and buoys along Panama’s waterway. In December 1997, the Panamanian government awarded PECC a no-bid 20-year concession. Upon receipt of the concession, Warwick, Jumet and others authorized corrupt payments to be made to the Panamanian government officials. In total, Warwick, Jumet and others caused corrupt payments of more than $200,000 to be paid to the Panamanian government officials.
In a related case, Jumet pleaded guilty to a two-count criminal information charging him with conspiring to make corrupt payments to foreign government officials for the purpose of securing business for PECC and making a false statement. On April 19, 2010, Jumet was sentenced to 87 months in prison and ordered to pay a fine of $15,000.
This case was prosecuted by Trial Attorney Rina Tucker Harris of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael S. Dry of the Eastern District of Virginia. The case was investigated by the FBI’s Washington Field Office, the FBI’s Richmond Field Office, and the Department of Homeland Security’s Immigration and Customs Enforcement.
Two Afghan Companies Plead Guilty to Bribing U.S. Officials and Agree to Pay $4.4 Million in FinesRead the Press Release
WASHINGTON – Two Afghan trucking companies pleaded guilty today to paying multiple bribes to U.S. public officials in exchange for unfair advantages in procuring contract work at the Bagram Airfield in Afghanistan, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Neil H. MacBride of the Eastern District of Virginia. The companies have agreed to pay a combined total of $4.4 million in criminal fines.
Afghan International Trucking (AIT) and Afghan Trade Transportation (ATT) each pleaded guilty in the Eastern District of Virginia to one count of bribery. According to the companies’ plea agreements, AIT will pay $3.36 million in criminal fines and ATT will pay $1.04 million in criminal fines.
The U.S. Army operates the Bagram Airfield in support of military operations in Afghanistan. According to court documents, the U.S. Army’s Transportation Operations Support Office oversaw all trucking contracts on the base. The Army assigned both military officers and contract employees to the transportation office. These individuals were responsible for reviewing all transportation requests and transportation providers. According to court documents, nine Afghan trucking companies worked at Bagram and officials in the transportation office assigned trucking services to these companies based on their performance records. Among the nine trucking companies were AIT and ATT.
According to court documents, AIT made corrupt payments of more than $120,000 to military officials in Afghanistan, including James Paul Clifton, Ana Chavez and a third, unnamed individual. ATT made corrupt payments totaling more than $30,000 to Clifton.
According to the statement of facts, employees for AIT started offering money to officials in the transportation office beginning in 2004. At one point, AIT paid Chavez with a candy box stuffed with $70,000. According to court documents, in mid-2008, AIT was paying Clifton $20,000 a month for preferable treatment. In May 2008, ATT entered into a similar illegal agreement with Clifton by which ATT paid bribes of $15,000 a month in exchange for Clifton assigning ATT an additional day of trucking service a month.
Clifton pleaded guilty in August 2009 to one count of bribery for accepting bribes from AIT and ATT in exchange for providing them with preferential treatment. In October 2009, Chavez pleaded guilty to one count of bribery and one count of money laundering for her involvement in an identical scheme with AIT.
This case is being prosecuted by Trial Attorneys Liam Brennan, Emily Allen and Mark Pletcher of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Steve A. Linick, Deputy Chief of the Criminal Division’s Fraud Section, and Executive Director of the National Procurement Fraud Task Force. The investigation is being conducted by Defense Criminal Investigative Service, U.S. Army Criminal Investigation Command Division, the Special Inspector General for Afghanistan Reconstruction, members of the National Procurement Fraud Task Force and the International Contract Corruption Task Force (ICCTF).
Today’s charges are an example of the Department of Justice’s commitment to protect U.S. taxpayers from procurement fraud through the National Procurement Fraud Task Force. The National Procurement Fraud Initiative, announced in October 2006, is designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in 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, including those in Afghanistan, Iraq and Kuwait. This case is part of their ongoing efforts to investigate and prosecute warzone corruption.
Innospec Agent Pleads Guilty to Bribing Iraqi Officials and Paying Kickbacks Under the Oil for Food ProgramRead the Press Release
Canadian/Lebanese dual national Ousama M. Naaman pleaded guilty today to participating in an eight-year conspiracy to defraud the United Nations Oil for Food Program (OFFP) and to bribe Iraqi government officials in connection with the sale of a chemical additive used in the refining of leaded fuel, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.
Naaman, 61, of Abu Dhabi, United Arab Emirates, was originally indicted on Aug. 7, 2008, in U.S. District Court for the District of Columbia. Naaman was arrested on July 30, 2009, in Frankfurt, Germany, and extradited to the United States. He pleaded guilty today to a two-count superseding information filed June 24, 2010, charging him with one count of conspiracy to commit wire fraud, violate the Foreign Corrupt Practices Act (FCPA), and falsify the books and records of a U.S. issuer; and one count of violating the FCPA.
Naaman and his companies were the Iraqi agents of Innospec Inc., a U.S. company. On March 18, 2010, Innospec pleaded guilty to a 12-count indictment charging wire fraud in connection with its payment of kickbacks to the Iraqi government under the OFFP, as well as violations of the FCPA in connection with bribe payments it made to officials in the Iraqi Ministry of Oil.
From 2001 to 2003, acting on behalf of Innospec, Naaman offered and paid 10 percent kickbacks to the then Iraqi government in exchange for five contracts under the OFFP. Naaman negotiated the contracts, including a 10 percent increase in the price to cover the kickback, and routed the funds to Iraqi government accounts in the Middle East. Innospec inflated its prices in contracts approved by the OFFP to cover the cost of the kickbacks.
Naaman also admitted that from 2004 to 2008, he paid and promised to pay more than $3 million in bribes, in the form of cash, as well as travel, gifts and entertainment, to officials of the Iraqi Ministry of Oil and the Trade Bank of Iraq to secure sales of tetraethyl lead in Iraq, as well as to secure more favorable exchange rates on the contracts. Naaman provided Innospec with false invoices to support the payments, and those invoices were incorporated into the books and records of Innospec.
Naaman faces a maximum prison sentence of 10 years. His sentencing has not yet been scheduled.
The case is being prosecuted by Trial Attorney Kathleen M. Hamann and Assistant Chief Nathaniel B. Edmonds of the Criminal Division’s Fraud Section. The case is being investigated by the FBI’s Washington Field Office’s dedicated FCPA squad and the U.S. Immigration and Customs Enforcement’s Counter Proliferation Investigations Unit. Significant assistance was provided by the Criminal Division’s Office of International Affairs and the U.S. Securities and Exchange Commission’s FCPA Unit.
The Innospec matter has been investigated in close cooperation with the Securities and Exchange Commission, the Department of the Treasury’s Office of Foreign Assets Control, and the United Kingdom’s Serious Fraud Office.
Department of Justice and USDA Hold Workshop Focused on Competition Issues in the Dairy IndustryRead the Press Release
The Department of Justice and the U.S. Department of Agriculture (USDA) today held a joint public workshop in Madison, Wis., to explore the appropriate role for antitrust and regulatory enforcement in the dairy industry. The workshop, led by Agriculture Secretary Tom Vilsack and Assistant Attorney General for the Justice Department’s Antitrust Division Christine Varney, examined competition in the dairy industry and featured panel discussions on trends in the dairy industry, market consolidation and market transparency. The workshop included significant opportunity for producers and the public to comment on trends in the dairy sector.
This is the third in a series of five workshops intended to promote dialogue among interested parties and foster learning with a diverse group of stakeholders regarding competition and regulatory issues in the agricultural marketplace. These workshops are the first-ever to be held by the Department of Justice and the USDA to discuss competition and regulatory issues in the agriculture industry. Additional information about the workshops can be found at www.justice.gov/atr/public/workshops/ag2010/index.htm#overview.
"American agriculture provides the livelihood for an enormous portion of the workforce and sustenance for the rest," said Varney. "Today’s discussion on the important issues facing the dairy industry has been immeasurably helpful as we consider the ways in which government can help to ensure efficiency and competition in the dairy industry."
"The dairy industry has been hit particularly hard over the past eighteen months, and, like other agricultural sectors, is experiencing consolidation and shrinking farm numbers," said Vilsack. "A fair and competitive marketplace is important not only for producers, but also for consumers, and today’s open and transparent dialogue with producers and experts will provide us with a understanding of the complex issues in this important industry and help us determine how we ensure competition and fairness in the dairy industry."
Secretary Vilsack and Assistant Attorney General Varney began the workshop with opening remarks before leading a roundtable discussion on competition issues in agriculture and the dairy industry, followed by a panel of dairy farmers from across the country to share their first-hand experiences and perspectives on the industry. In the afternoon, a panel of academics and farmers will discuss trends in the industry. Later, a second panel of professionals will explore issues associated with consolidation. Lastly, a third panel of professionals will examine farm prices for milk, contracts and related issues from a public policy perspective. The second hour-long public testimony will take place before the end of the workshop.
The workshop was held in Madison, Wis., at the Wisconsin Union Theater at the University of Wisconsin - Madison, and was attended by several key federal and state leaders, including Sen. Herb Kohl, Sen. Russell Feingold, Rep. Tammy Baldwin, Governor Jim Doyle and Wisconsin state Agriculture Secretary Rod Nilsestuen.
Videos and transcripts from today’s workshop will be available for review at a later date on the Antitrust Division’s website at www.justice.gov/atr/public/workshops/ag2010/index.htm#dates. Individuals seeking more information on the workshops should contact [email protected].
Thursday 24 June 2010
Twenty-six Alleged Bloods Gang Members and Associates Indicted on Federal Racketeering, Firearms and Narcotics ChargesRead the Press Release
A federal grand jury in Nashville, Tenn., has indicted 26 members and associates of the violent gang known as the Bloods, for various charges, including conspiracy to participate in a racketeering enterprise, conspiracy to commit murder in aid of racketeering, assault with a dangerous weapon in aid of racketeering, assault resulting in serious bodily injury in aid of racketeering, conspiracy to use and carry firearms during and in relation to crimes of violence, and conspiracy to distribute and possess with intent to distribute crack cocaine, cocaine, hydromorphone and marijuana. The indictment was announced today by Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney for the Middle District of Tennessee Jerry E. Martin and Deputy Director Kenneth Melson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The indictment was returned under seal last week and unsealed Wednesday upon the arrests of the defendants.
“The Department of Justice is committed to protecting our nation’s communities from the violent and dangerous crimes alleged in this indictment,” said Assistant Attorney General Breuer. “We will continue to use all resources and tools at our disposal to disrupt and dismantle gangs wherever they exist and we will be aggressive in bringing to justice the members of these violent organizations.”
“We believe the individuals named in the indictment have been responsible for multiple attempted murder conspiracies and numerous violent crimes in the Nashville area,” stated U.S. Attorney Martin. “We have also alleged that many of these individuals were involved in substantial narcotics distribution. These arrests are merely the next logical step in the on-going investigation. I am confident that as we continue to unpackage and piece together the illegal activity of these individuals, our community will be a safer place as we prepare to present our cases against these individuals and insure they are removed from our community for a long period of time.”
“The message today is clear for violent criminals: you have nowhere to hide,” said ATF Deputy Director Kenneth Melson. “The gang members arrested during this operation have allegedly victimized families in the Nashville area for too long. This round up will give grandparents, parents and their children piece of mind and a safer place to call home, as we send a message to criminals that ATF will not tolerate acts of violence in our communities.”
“This indictment is the result of the hard work of our law enforcement community, particularly members of our Gang Unit who discovered that several seized firearms were involved in a number of shootings that were ultimately linked to the Bloods gang,” Nashville Police Chief Steve Anderson said. “The indictment accuses these individuals of very violent crimes that are most deserving of the full attention of our police department, the ATF, the U.S. Attorney’s Office and the District Attorney’s office.”
Multiple local, state and federal law enforcement agents, executed arrest and search warrants yesterday morning in connection with the indictment. Twenty-one defendants have been arrested and 15 made their initial appearance yesterday before U.S. Magistrate Judge E. Clifton Knowles.
According to the indictment, the defendants were members and associates of the Bloods, a violent street gang that originated in Los Angeles in the 1970s, and ultimately migrated to cities throughout the United States, including Nashville. The Bloods gang has a hierarchal structure and a long-term and often lethal rivalry with the Crips gang.
The indictment charges that from in and around 2006 until June 2010, Bloods gang members conspired to commit crimes including attempted murders and murders, robberies, narcotics trafficking, bribery and extortion. The indictment alleges that the Bloods gang members met regularly to plan and agree upon the commission of crimes; maintained and circulated a collection of firearms for use in criminal activity by Bloods members; distributed controlled substances including cocaine, cocaine base, marijuana and hydromorphone and used the proceeds to of those drug transactions to help finance the gang’s illegal activities. The indictment also alleges that Bloods gang members committed acts of attempted murder and murder and other acts of violence against rival gang members and others.
For example, the indictment alleges that on March 30, 2010, Bloods gang members attempted to murder Kenny Ellis, a rival gang member. Specifically, Lonnie Newsome, who was in a vehicle with other Bloods gang members, allegedly told Alonzo McLaurine, who was in a vehicle with Aaron Gooch to shoot Ellis. Shortly thereafter, Bloods gang member Aaron Gooch exited the vehicle and shot Kenny Ellis with a firearm.
Gang members also allegedly committed numerous other shootings. The indictment also alleges that Lonnie Newsome, Jermaine Coward, Alexander McDonald, Torey Cohen Boseman, Jeffrey Albea and Anthony Brooks conspired to murder any and all suspected Crips gang members in and around Nashville.
The indictment also alleges that, Lonnie Newsome’s father, Lonnie Greenlee, co-founder of the Galaxy Star Drug Awareness and Gang Prevention Center located in Nashville, allowed Bloods gang members to use the facility to conduct gang meetings. In addition, Lonnie Greenlee and a Galaxy Star employee Rodney Britton provided numerous Bloods gang members with fraudulent documentation of court-ordered community service hours in exchange for money.
The indictment charges the following defendants with conspiracy to participate in the racketeering activities of the Bloods:
· Lonnie Newsome, aka “Big Lonnie,” age 24;
· Ricky Williams, aka “Big Rick,” age 24;
· William Bartlett, aka “FaceMob,” age 27;
· Tim Allen, aka “Lil Tim,” age 20;
· Anthony Brooks, aka “A.B.,” age 23;
· Anthony Lampkins, aka “Doo Daddy,” age 21;
· Antonio Washington, aka “T.O.,” age 21;
· Kerry Pettus, aka “Lil Kerry,” age 21;
· Joedon Bradley, aka “Jo Jo,” age 22;
· Deshaune Jones, aka “Mexico,” age 21;
· Donald Dowell, aka “D-Dow,” age 23;
· Alonzo McLaurine, aka “Zo,” age 20;
· Aaron Gooch, aka “A-Ron,” age 21;
· Jermaine Tate, aka “Maine Maine,” age 21;
· Shayne Gibson, aka “Alief,” age 18;
· Alexander McDonald, aka “Dominique,” age 20;
· Jermaine Coward, aka “Maine Maine,” age 19;
· Jeffrey Albea, aka “Lil Jeff,” age 18;
· Torey Cohen Boseman, aka “Torey,” age 24;
· Karlos Taylor, aka “Los,” age 19;
· Anthony Campbell, aka “Dante,” age 20;
· James House, aka “Bam,” age 37;
· Rodney Britton, age 22; and
· Lonnie Greenlee, age 51.
Additionally, the indictment charges Brandon Prince, age 21, and Shawn Howell, age 23, with misprision of a felony, for their failure to notify law enforcement officials of the March 30, 2010, attempted murder of a rival gang member.
The case was investigated by the ATF; the Metropolitan Nashville Police Department; the Gallatin Police Department; and assisted by the U.S. Marshals Service and the Davidson County District Attorney’s Office.
The case is being prosecuted by Special Assistant U.S. Attorney Kelly D. Young and Trial Attorney Cody L. Skipper of the Criminal Division’s Gang Unit.
An indictment is merely an accusation and is not evidence of guilt. All defendants have the right to a trial at which the government would have to bear the burden of proof beyond a reasonable doubt.
Tracy Hope Davis Appointed Acting U.S. Trustee for New York, Connecticut, VermontRead the Press Release
WASHINGTON – Tracy Hope Davis has been appointed by Attorney General Eric Holder as Acting U.S. Trustee for New York, Connecticut and Vermont (Region 2) effective July1, 2010, the Executive Office for U.S. Trustees announced today. Ms. Davis replaces Diana G. Adams, who is retiring after 17 years of service with the U.S. Trustee Program (USTP), the past three as the U.S. Trustee for Region 2.
Ms. Davis, an Assistant U.S. Trustee in New York City, joined the USTP in 1997 as a trial attorney. She has also served as the Acting Assistant U.S. Trustee in Brooklyn. Before joining the USTP, she practiced law in New York City, specializing in bankruptcy. After law school, she served as law clerk to the Honorable Cornelius Blackshear, U.S. Bankruptcy Court, Southern District of New York (retired). Ms. Davis received her law degree from Rutgers Law School in Newark, N.J., and her Bachelor of Arts degree from Wells College in Aurora, N.Y.
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. The USTP has 21 regions and 95 field offices. Region 2 is headquartered in New York City with additional offices in Albany, Brooklyn, Buffalo, Central Islip, Rochester and Utica, N.Y., and New Haven, Conn.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Three Individuals with Alleged Ties to Aryan Brotherhood Charged with a 2008 Murder That Occurred in Atascosa County, TexasRead the Press Release
Three alleged members or associates of the Aryan Brotherhood of Texas (ABT) have been indicted for their alleged roles in a 2008 murder in Atascosa County, Texas, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney John E. Murphy of the Western District of Texas.
The indictment, returned by the federal grand jury today in San Antonio, charges the three defendants with violent crimes in aid of racketeering activity. Frank Lavelle Urbish Jr., aka “Thumper,” 38, of Beaumont, Texas; Michael Dewayne Smith, aka “Bucky”, 29, of Houston; and Jim Flint McIntyre, aka, “Q-Ball”, 42, of Houston, are each charged with conspiracy to commit murder, murder and possessing a firearm after having been convicted of a felony. Smith and McIntyre are also charged with carrying a firearm during and in relation to a crime of violence and using and carrying a firearm to commit murder during and in relation to a crime of violence.
The indictment alleges that a prospect member of the Aryan Brotherhood, Mark Davis Byrd Sr., was murdered by McIntyre and Smith for allegedly stealing drugs he was ordered to deliver to a customer on behalf of the ABT. The indictment alleges that Byrd was murdered as a result of a “discipline” ordered by Urbish. Byrd’s body was discovered in Atascosa County on May 4, 2008.
Upon conviction, the defendants face a maximum sentence of life in federal prison or the death penalty. The defendants are currently in state custody. They are tentatively scheduled to have their initial appearance before a U.S. Magistrate Judge in San Antonio on July 7, 2010.
According to the indictment, the ABT is a race-based, state-wide organization that operates inside and outside of state and federal prisons throughout Texas and elsewhere in the United States. The ABT was established in the early 1980’s within the Texas prison system. As alleged in the indictment, it modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960’s. According to the indictment, previously the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, the ABT has expanded its focus more towards a criminal enterprise to include illegal activities for profit.
As alleged in the indictment, the ABT enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, are required to follow the orders of higher-ranking members, often referred to as “direct orders.”
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); the National Gang Targeting, Enforcement & Coordination Center ( GangTECC); the National Gang Intelligence Center; the Texas Rangers; the Texas Department of Public Safety; the Atascosa County Sheriff's Department; and the Beaumont Police Department.
The case is being prosecuted by David Karpel of the Criminal Division’s Gang Unit and David Shearer of the U.S. Attorney’s Office for the Western District of Texas in San Antonio Office, in full cooperation with the Atascosa County District Attorney’s Office.
The indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Nantucket Man Arrested and Charged with Operating International Online “Phishing” Scheme to Steal Income Tax RefundsRead the Press Release
Mikalai Mardakhayeu, a Belarusian national residing in Nantucket, Mass., was arrested Wednesday night and charged for his alleged participation in an international online "phishing" scheme to steal income tax refunds intended for U.S. taxpayers around the country, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Carmen M. Ortiz for the District of Massachusetts.
An indictment unsealed today in U.S. District Court in Boston charges Mardakhayeu with one count of conspiracy and nine counts of wire fraud.
According to the indictment, from 2006 through 2007, Mardakhayeu and his co-conspirators lured victims by operating websites that offered lower-income taxpayers free online tax return preparation and electronic tax return filing (e-filing) services. As alleged in the indictment, the websites falsely claimed to be authorized by the Internal Revenue Service (IRS) to offer such services. After taxpayers input and uploaded their tax information seeking refunds for federal and state taxes, co-conspirators in Belarus allegedly collected the data and altered the returns so that legitimate tax refund payments would be redirected to U.S. bank accounts controlled by Mardakhayeu. According to the indictment, in some cases the claimed refund amount was higher than the amount originally claimed by the taxpayer. The co-conspirators allegedly caused the fraudulently altered returns to be e-filed with the IRS and state treasury departments. The conspiracy ultimately caused the U.S. Treasury and various state treasury departments to deposit approximately $200,000 in stolen refunds into bank accounts in and around Nantucket that were controlled by Mardakhayeu.
If convicted, Mardakhayeu faces a maximum sentence of 20 years in prison, to be followed by three years of supervised release, a $250,000 fine and restitution.
An indictment is merely an accusation, and the defendant is presumed innocent until and unless proven guilty at trial beyond a reasonable doubt.
The case was investigated by the IRS Criminal Division and the Treasury Inspector General for Tax Administration and is being prosecuted by Assistant U.S. Attorney Adam Bookbinder in the District of Massachusetts’ Computer Crimes Unit and by Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section.
Mobile, Alabama, Man Indicted on Federal Civil Rights and Weapons Charges Related to Desecration of SynagogueRead the Press Release
WASHINGTON – The Justice Department today announced that a federal grand jury in Mobile, Ala., has returned a three-count indictment charging Thomas Hayward Lewis, 24, of Mobile, with violating and conspiring to violate the civil rights of congregants of the Congregation Tree of Life Messianic Synagogue in Mobile, as well as possession of an unregistered firearm.
The indictment alleges that on or about the night of Jan. 3, 2009, Lewis spray painted the Tree of Life Synagogue with anti-Semitic graffiti and neo-Nazi markings. The indictment further alleges that prior to the incident, Lewis and a co-conspirator, Christian Rodney Ice, conspired to deface and desecrate the synagogue. Lewis’s co-conspirator has already pleaded guilty in federal court in Mobile to one count of violating the Church Arson Act by placing threatening graffiti and neo-Nazi markings on the Congregation Tree of Life Messianic Synagogue.
"Religious freedom is a basic civil right, and threats against religious institutions and their members will not be tolerated in this country," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This case should send a clear message to others who would carry out similar criminal acts that we will vigorously pursue all responsible parties and all will be held accountable for their actions."
"The United States Attorney’s Office is committed to the protection of our citizens’ civil rights. The United States Constitution’s guarantee of freedom of religion is one of our citizen’s most sacred civil rights," said U.S. Attorney Kenyen R. Brown for the Southern District of Alabama.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted, the defendant faces a maximum penalty of 10 years in prison on the civil rights charges.
This case was investigated by the FBI and the city of Mobile, Ala., Police Department, and is being prosecuted by Assistant U.S. Attorney George May of the U.S. Attorney’s Office for the Southern District of Alabama and Trial Attorney Donald Tunnage of the Civil Rights Division’s Criminal Section.
Judge Orders State of Florida to Provide Community Services to Jacksonville Woman at Risk of InstitutionalizationRead the Press Release
WASHINGTON - The state of Florida must provide Michele Haddad with services that will enable her to remain in her home, a U.S. District Court in Jacksonville, Fla., ruled Wednesday. Haddad, who has quadriplegia as a result of a motorcycle accident with a drunk driver in 2007, has successfully resided in the community since the accident, but is at risk of entry into a nursing home due to changes in her caregiver situation. Haddad, who has been on the waiting list for Medicaid community-based waiver services for two years, notified the state of her increased need for services, but was told that community services would only be available if she was willing to enter a nursing home for 60 days.
The court ordered the state to provide community-based services as required by the Americans with Disabilities Act's (ADA) integration mandate as set forth in Olmstead v. L.C. The United States argued in a brief filed on May 25, 2010, that Haddad would suffer irreparable harm if forced to enter a nursing home to receive necessary services.
The court issued this order in the week that marks the 11th anniversary of the landmark Olmstead decision.
“In the Olmstead case, the court recognized that the unnecessary segregation of individuals with disabilities stigmatizes those individuals as unworthy of participation in community life,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “By supporting Ms. Haddad in this case, we seek to ensure that individuals with disabilities can receive services in the most integrated setting appropriate, where they can participate in their communities, interact with individuals who do not have disabilities, and make their own day to day choices.”
The U.S. government’s participation in this case is part of the administration’s efforts across the nation to affirm the fundamental right for Americans with disabilities to live independently, in what the president has deemed “The Year of Community Living.”
The full and fair enforcement of the ADA and its mandate to integrate individuals with disabilities is a major priority of the Civil Rights Division. The ADA protects individuals with disabilities from discrimination by public entities. People interested in finding out more about the ADA can call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or access its ADA website at www.ada.gov/.
Downsville, Louisiana, Man Pleads Guilty to Federal Hate CrimeRead the Press Release
WASHINGTON – The Justice Department today announced that Robert Jackson, 37, of Downsville, La., pleaded guilty in federal court to placing a hangman’s noose in the carport of the home of a family in order "to send a message" to African-American males who had been frequently visiting the victim’s home. Jackson entered a plea to violating the Fair Housing Act by intimidating and interfering with another’s housing rights because of race.
According to court testimony, the victim and her children arrived home on June 13, 2008, and found a hangman’s noose suspended from a bird-feeder underneath the carport of her home. A subsequent investigation determined that Jackson, a former employee at a local company located next door from the victim’s home, made the noose and placed it in the carport.
" A noose is an unmistakable symbol of hate in our nation, and it was used in this case to intimidate an innocent family, " said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. " The Department of Justice will vigorously prosecute those who resort to threats motivated by hate. "
"A hangman’s noose is a powerful symbol of racial intimidation and intolerance, and when used to interfere with federally protected rights, becomes a federal crime." said Stephanie A. Finley, U.S. Attorney for Western District of Louisiana. "The victim and her family sought nothing more than to live in their home in peace. Jackson’s racially-motivated response has left him facing a prison sentence."
Sentencing is scheduled for Sept. 28, 2010. Jackson faces a maximum penalty of 12 months in prison, a $100,000 fine, or both.
The case was investigated by the FBI, Monroe Resident Agency, and was prosecuted by Assistant U.S. Attorney Mary Mudrick and Trial Attorney Myesha Braden of the Civil Rights Division of the U.S. Department of Justice.
Wednesday 23 June 2010
Woonsocket, Rhode Island, Police Officer Pleads Guilty to Civil Rights ViolationRead the Press Release
WASHINGTON – Former Woonsocket, R.I., Police Officer John H. Douglas pleaded guilty today in federal court in Providence, R.I., to a federal criminal civil rights charge for assaulting a juvenile who was in his custody, the Justice Department announced.
On Sept. 15, 2009, Douglas and two other Woonsocket Police Officers escorted a juvenile in police custody to a small hallway inside the Woonsocket Police Station. Once inside the hallway, Douglas, who was angry at the juvenile because he believed the juvenile had earlier injured a fellow Woonsocket Police Officer, repeatedly punched the juvenile. As a consequence of this beating, the juvenile suffered trauma and bone fractures in his facial area.
"Law enforcement officers who use their badges as an excuse to commit egregious acts of violence are an affront to the rule of law," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department will continue to aggressively prosecute officers who abuse their power in this manner."
U.S. Attorney Peter F. Neronha for the District of Rhode Island commented, "Police officers serve the people of Rhode Island with dedication and distinction every day, often putting their lives on the line to protect others. This case serves as a reminder, however, that no one is above the law, and when a police officer abuses his authority and violates the civil rights of a person he or she is supposed to protect, such conduct will not be tolerated."
Douglas faces a maximum sentence of 10 years in prison and a fine of $250,000. Sentencing has been scheduled for Nov. 10, 2010.
This case was investigated by Special Agent James Pitcavage of the FBI. The case is being jointly prosecuted by Assistant U.S. Attorneys Terrence Donnelly and John McAdams, and Trial Attorney Avner Shapiro of the Civil Rights Division.
Taiwanese Couple Sentenced to Prison for Illegally Trading Protected Black CoralRead the Press Release
WASHINGTON—Two Taiwanese nationals were sentenced to prison today in federal court in the U.S. Virgin Islands for conspiracy to ship internationally protected black coral into the United States in violation of federal wildlife statutes, the Department of Justice announced.
Ivan Chu of Taipei, Taiwan, was sentenced to serve 30 months in prison and pay a $12,500 fine. Gloria Chu also of Taipei was sentenced to serve 20 months in prison and pay a $12,500 fine. The court also prohibited the Chus from shipping any coral and other wildlife products to the United States for a three-year period following their release from prison. These sentences are the longest prison sentences for illegal trade in coral to date.
Both Chus pleaded guilty on March 11, 2010, to nine counts including conspiracy, false statements, and violations of both the Endangered Species Act and the Lacey Act.
The Lacey Act makes it a felony to falsely label wildlife that is intended for international commerce. The Endangered Species Act is the U.S. domestic law that implements the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Each of the species of black coral is listed in Appendix II of CITES and is subject to strict trade regulations.
Black coral is one of the several types of precious corals that can be polished to a high sheen, worked into artistic sculptures and used in inlaid jewelry. The Chus admitted to running a business named Peng Chia Enterprise Co. Ltd., that supplied materials including black coral to customers outside of Taiwan for jewelry design and manufacture. At times prior to 2007, the Chus were issued CITES export permits by the Taiwanese government in order to ship black coral overseas. Since 2007, however, they have been unable to obtain permits because they are unable to produce a legitimate certificate of origin.
Both Chus admitted that in order to supply a company based in the Virgin Islands with black coral, they would falsely label shipments in order to conceal the coral from U.S. Customs and Border Protection officers. The conspiracy included travel to a warehouse in mainland China to choose coral from a Chinese supplier and the use of an intermediary to ship the black coral from Hong Kong to a company in St. Thomas. The scheme took place for at least two years prior to the customs seizure of an August 2009 shipment destined for the company.
On Aug. 19, 2009, Peng Chia sent a shipment comprised of 10 boxes of black coral that were labeled "plastic of craft work." A U.S. Customs’ Contraband Enforcement Team flagged the shipment as suspicious and contacted U.S. Fish and Wildlife (USFWS) from San Juan, Puerto Rico. As a result, USFWS, National Oceanic and Atmospheric Administration and Immigration and Customs Enforcement opened a joint investigation, "Operation Black Gold," that led to the arrest of the Chus in January 2010. Analysis by the U.S. Fish and Wildlife Service’s National Forensics Laboratory in Ashland, Ore., revealed that shipment from the Chus contained internationally- protected black coral. The Chus have admitted that from 2007 to 2009, they sent more than $194,000 worth of black coral to the company in St. Thomas.
"Trafficking in protected species like black coral violates international and domestic laws and threatens the existence of that important resource. Today’s prison sentences indicate the severity of the crimes and should deter others from participating in illegal wildlife trafficking," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.
"This case demonstrates that there will be consequences to those who illegally exploit our marine environment that such behavior will not be tolerated," said Ronald W. Sharpe, U.S. Attorney for the District of the U.S. Virgin Islands. "The United States Attorney’s Office will prosecute those who commit environmental crimes as vigorously as it prosecutes violent offenders."
"This should send a strong and clear message to those individuals foreign and domestic, who deliberately break our environmental laws, that their conduct will not be tolerated. Those who illegally plunder nature’s resources in favor of profits will be brought to justice," said James Gale, Special Agent in Charge of the Fish and Wildlife Services’s Southeast Region. "The cooperative efforts show the commitment of all agencies involved to protect coral and the natural resources against the illegal international trade, we are all stewards."
The case was investigated by agents of the USFWS and the National Oceanic and Atmospheric Administration. The case is being prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the District of the Virgin Islands.
Seven Houston-area Residents Charged in $5 Million Health Care Fraud SchemeRead the Press Release
Seven Houston-area residents who worked for a home health agency have been charged for their alleged participation in a $5 million Medicare fraud scheme, the Departments of Justice and Health and Human Services (HHS) announced. The defendants made their initial appearance today in U.S. District Court in Houston before Magistrate Judge John R. Froeschner.
An indictment filed June 21, 2010, in U.S. District Court in Houston charges Clifford Ubani, 52; Ezinne Ubani, 45; Princewill Njoku, 51; Caroline Njoku, 45; Mary Ellis, 54; Michelle Turner, 42; and Cynthia Garza-Williams, 49, with conspiracy to commit health care fraud. Clifford Ubani, Princewill Njoku, Caroline Njoku, Ellis, Turner and Garza-Williams are also charged with paying and/or receiving kickbacks. Ezinne Ubani, Princewill Njoku and Ellis are charged with making false statements in the submission of claims to the Medicare program.
According to the indictment, Clifford Ubani, Ezinne Ubani, Princewill Njoku and Caroline Njoku were the owners and operators of Family Healthcare Services. The indictment alleges that these owners and operators submitted false and fraudulent claims to the Medicare program for purportedly providing home health care services that were not medically necessary and/or not rendered. According to the indictment, the Medicare program paid Family Healthcare Services approximately $5 million for the false and fraudulent claims.
According to the indictment, Caroline Njoku, Ellis, Turner and Garza-Williams recruited Medicare beneficiaries to be placed at Family Healthcare Services for skilled nursing services, and in return were paid kickbacks by Ezinne Ubani and Princewill Njoku for the referrals. Ezinne Ubani, Princewill Njoku, Ellis and Garza-Williams falsified patient files to make it appear that Medicare beneficiaries qualified for and received home health care services that were not medically necessary and/or not provided.
The maximum sentence for conspiracy to commit health care fraud is 10 years in prison. The maximum sentence for each count of paying and/or receiving kickbacks, and making false statements in determining rights for benefit and payment by Medicare is five years in prison. The indictment seeks forfeiture of assets held by the defendants.
An indictment is merely a charge and the defendants are presumed innocent until proven guilty.
Today’s charges were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney José Angel Moreno of the Southern District of Texas; Special Agent-in-Charge Richard C. Powers of the FBI’s Houston field office; Special Agent-in-Charge Mike Fields of the Dallas Regional Office of HHS Office of the Inspector General (HHS-OIG), Office of Investigations; and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).
This case is being prosecuted by Trial Attorneys Charles D. Reed and Sam S. Sheldon of the Criminal Division’s Fraud Section. The case was investigated by the FBI, HHS-OIG and MFCU, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas.
Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 585 individuals who collectively have falsely billed the Medicare program for more than $1.3 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
North Carolina Man Sentenced to 72 Months in Prison for Possessing Child PornographyRead the Press Release
Timothy Christenbury, 47, was sentenced today in Charlotte, N.C., to 72 months in prison and 10 years of supervised release following his prison term for possessing child pornography, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney for the Western District of North Carolina Edward R. Ryan.
Christenbury, of Charlotte, was sentenced by U.S. District Judge Frank D. Whitney after pleading guilty on Feb. 18, 2009, before U.S. Magistrate Judge Carl Horn III to one count of possession of child pornography.
Christenbury was identified through "Operation Joint Hammer," the U.S. component of an ongoing global enforcement operation targeting transnational rings of child pornographers. The operation has led to the arrest of more than 60 people in the United States involved in the trade of child pornography. Operation Joint Hammer was initiated through evidence developed by European law enforcement and shared with U.S. counterparts by Europol and Interpol. The European portion of this global enforcement effort, "Operation Koala," was launched after the discovery of the activities of several people in Europe who were abusing children and producing photographs of the abuse for commercial gain. Further investigation unveiled a number of online child pornography rings.
The case was prosecuted by Assistant U.S. Attorneys Cortney Escaravage and Kimlani Ford of the Western District of North Carolina and Trial Attorney Alecia Riewerts Wolak of the Criminal Division’s Child Exploitation and Obscenity Section. The investigation was handled by U.S. Immigration and Customs Enforcement.
Exporter Pleads Guilty to Conspiring to Defraud the U.S. Export-import Bank of More Than $24 MillionRead the Press Release
Guillermo O. Mondino, 47, of Miami, pleaded guilty today to leading a scheme to defraud the Export-Import Bank of the United States (Ex-Im Bank) of more than $24 million, announced Assistant Attorney General of the Criminal Division Lanny A. Breuer, Osvaldo L. Gratacos, Acting Inspector General of the Ex-Im Bank, Special Agent in Charge (SAC) Rebecca A. Sparkman of the Internal Revenue Service Office of Criminal Investigation (IRS-CID) Washington, and Inspector in Charge Enrique Gutierrez of the U.S. Postal Inspection Service’s (USPIS) Miami Division.
Mondino entered his guilty plea in U.S. District Court in Washington before U.S. Magistrate Judge John M. Facciola. Mondino pleaded guilty to a two-count criminal information charging him with one count of conspiracy to defraud the United States and to commit mail fraud, and one count of money laundering.
According to plea documents, Mondino was the owner of Texon Inc., an exporting company located in Miami. From April 2003 to May 2009, Mondino and others conspired to defraud the Ex-Im Bank by submitting false and fraudulent information to the Ex-Im Bank to obtain approximately $24 million in loans and to misappropriate certain loan proceeds. Mondino prepared or instructed others to prepare false documents that would be submitted to lending banks and the Ex-Im Bank to facilitate the fraudulent loan transactions. Mondino and his co-conspirators agreed that a smaller amount of the loan proceeds than was represented to the Ex-Im Bank would actually be used to purchase U.S. goods for foreign buyers, as specified by Ex-Im Bank loan program requirements. In some cases, Mondino provided loan proceeds to borrowers in cash rather than using the proceeds to purchase goods to be shipped to the borrowers. He also commingled the loan proceeds with personal and other monies and transferred loan proceeds to bank accounts controlled by co-conspirators. Texon and its related entities retained approximately $2.5 million of the loan proceeds, and Mondino retained approximately $170,000 of the loan proceeds for his own benefit and use.
Also according to plea documents, on Sept. 8, 2008, Mondino transmitted by wire approximately $217,647 of criminally derived money from a Texon bank account in Miami to the bank account of a freight forwarder in Laredo, Texas.
Mondino is set to be sentenced on Sept. 13, 2010, by U.S. District Court Judge Ricardo M. Urbina, and faces a maximum sentence of 15 years in prison and a $500,000 fine. According to the plea agreement, he has agreed to pay more than $2.7 million in forfeiture and to pay restitution in full as of the date of sentencing of more than $12.5 million.
Ex-Im Bank is an independent, self-sustaining U.S. Government agency that assists in financing the export of U.S. goods and services to markets around the world through export credit insurance, loan guarantees and direct loans.
The case is being prosecuted by Trial Attorney Nicole H. Sprinzen of the Criminal Division's Fraud Section. The case is being investigated by the Ex-Im Bank, Office of Inspector General, the IRS-CID in Washington and the USPIS Miami Division.
Bloomingdale, Georgia, Landlord to Pay $680,000 to Settle Housing Discrimination LawsuitRead the Press Release
WASHINGTON – The Justice Department today announced that Darwin Kenneth Morgan and his company, D.K. Morgan Consolidated LLC, have agreed to pay $680,000 in monetary damages and civil penalties to settle a Fair Housing Act lawsuit alleging that Morgan discriminated against African-Americans and sexually harassed female tenants and prospective tenants at Morgan Mobile Home Parks in Bloomingdale, Ga.
Under the consent decree, which the federal district court in Savannah approved today, the defendants must pay $350,000 to 11 individuals identified by the United States as victims of the defendants’ discriminatory conduct, $280,000 in monetary damages, costs and attorneys’ fees to four private plaintiffs, including the Savannah-Chatham County Fair Housing Council, and $50,000 to the United States as a civil penalty. The consent decree also prohibits the defendants from engaging in discrimination and requires that an independent manager manage the properties.
"It is offensive and illegal to deny equal access to housing based on the color of one’s skin or to harass women who are seeking a place to live," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This settlement sends the message that such conduct will not be tolerated, and the Civil Rights Division will aggressively pursue those who engage in it."
"This is an appropriate resolution of this case," said Edward J. Tarver, U.S. Attorney for the Southern District of Georgia. "The settlement is entirely in keeping with the United States’ interest in enforcing the Fair Housing Act."
The lawsuit arose after the Savannah-Chatham County Fair Housing Council alerted the Civil Rights Division to Morgan’s discriminatory activities. The government conducted an independent investigation and uncovered additional evidence of discrimination, including more victims of the defendants’ conduct. The government’s suit, filed in September 2008, alleged, among other things, that Morgan denied the availability of mobile homes and/or mobile home lots to African-American persons while at the same time told white persons about available mobile homes and/or mobile home lots; refused to negotiate with African-American prospective tenants for rental; made statements with respect to the rental of mobile homes and/or mobile home lots at Morgan Mobile Home Parks indicating a preference, a limitation, or discrimination based on race or color; discouraged African-American persons from applying for a mobile home and/or mobile home lot while encouraging white persons to apply; and subjected female tenants and prospective tenants at Morgan Mobile Home Parks to discrimination on the basis of sex, including severe, pervasive and unwelcome sexual harassment. The government’s lawsuit was subsequently consolidated with a related private suit that had been brought by the Fair Housing Council and three individuals.
Fighting illegal housing discrimination 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 the website www.justice.gov/crt/ . Persons who believe they have experienced or witnessed unlawful housing discrimination may 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. More information about the Fair Housing Act can also be found at www.justice.gov/crt/housing/ or www.hud.gov/fairhousing.
Tuesday 22 June 2010
Williamsport, Pennsylvania, Sanitary Authority Agrees to Clean up Sewage Discharges to the Susquehanna RiverRead the Press Release
WASHINGTON—The Williamsport, Pa., Sanitary Authority (WSA) has agreed to make significant improvements to its combined sewer system at an estimated cost of approximately $10 million, in order to resolve long-standing problems with combined sewer overflows to the Susquehanna River, which flows to the Chesapeake Bay, the Justice Department and the U.S. Environmental Protection Agency announced today.
Under the settlement agreement, filed today in federal court in Williamsport, WSA will expand the treatment capacity of its Central Wastewater Treatment Plant and increase its storage capacity to cope with high flow during wet weather to guard against combined sewer overflows to the West Branch of the Susquehanna River, and ultimately, the Chesapeake Bay. WSA has also agreed to pay a civil penalty of $320,000 for past violations of the Clean Water Act. The Commonwealth of Pennsylvania is joining in the settlement as a co-plaintiff.
The agreement resolves allegations in a complaint, also filed today, that WSA violated the Clean Water Act and Pennsylvania’s Clean Streams Law by failing to implement long term control plans, and other wastewater controls required by its state-issued National Pollutant Discharge Elimination System (NPDES) permits. The settlement requires WSA to implement long term control plans designed to minimize the potential for combined sewer overflows.
"This agreement will have positive, lasting effects on both public health and the environment. As a result of today’s settlement, Williamsport will increase sewer capacity, which will reduce illegal flows of untreated sewage and runoff, keeping pollution out of Pennsylvania’s waterways," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The Justice Department is committed to enforcing our nation’s environmental laws so that the environment and the health of our communities are protected."
"Sewage overflows can seriously harm public health by carrying dangerous bacteria into waterways used for drinking water and recreation." said EPA Regional Administrator Shawn M. Garvin. "When fully implemented, today's agreement will reduce the amount of untreated sewage being discharged into the Susquehanna River by more than 52 million gallons per year."
WSA provides sewage collection and treatment to nearly 60,000 people within Williamsport and several surrounding communities, using a system that includes combined sewers carrying both sewage and storm water runoff. Combined sewer overflows occur when the capacity of the treatment system is overwhelmed by wet weather runoff and untreated sewage is discharged into receiving waters.
Untreated sewage contains viruses and protozoa as well as other parasites. Individuals coming in contact with these organisms can suffer adverse health effects ranging from minor ailments such as sore throats, stomach cramps and diarrhea, to life-threatening illnesses such as cholera, dysentery, infectious hepatitis and severe gastroenteritis. Children, the elderly, people with weakened immune systems and pregnant women are more at risk of illness.
The Clean Water Act prohibits the discharge of sewage and other pollutants into U.S. waters. Discharges must comply with an NPDES permit that is designed to be protective of EPA-approved water quality standards.
The Susquehanna River is located in the Chesapeake Bay watershed. Today’s action is part of a multi-state, multi-media Chesapeake Bay watershed compliance initiative, which EPA is implementing in partnership with Pennsylvania and the other Bay states, in order to improve water quality in local waterways and the bay, the largest estuary in North America.
According to the settlement, the United States and the Pennsylvania Department of Environmental Protection will each receive one-half of the total $320,000 civil penalty.
The settlement agreement 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.
Washington State Tax Defier Indicted in Spokane<br /> for Filing False Liens Against Government OfficialsRead the Press Release
WASHINGTON - A federal grand jury in Spokane, Wash., has returned an indictment charging Ronald James Davenport of Deer Park, Wash., with filing fraudulent multi-billion-dollar liens against four government officials, the Justice Department and Internal Revenue Service (IRS) announced today.
According to court filings, the federal government brought a civil suit against Davenport in 2008 to collect delinquent income taxes. The indictment alleges that in retaliation for attempting to collect the delinquent taxes, Davenport made a series of fraudulent claims in December 2009 against, among others, the U.S. Attorney for the Eastern District of Washington, an Assistant U.S. Attorney, the clerk of court for the federal district court and a collection officer for the IRS. Davenport filed liens against the property of these government officials, falsely claiming that each of them owed Davenport $5,184,000,000.
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, Davenport faces a maximum of 40 years in prison and a maximum fine of $1 million.
The case is being investigated by the Treasury Inspector General for Tax Administration and is being prosecuted by Tax Division Trial Attorney Brian Bailey.
Second Defendant in Springfield, Massachusetts, Church Arson Pleads GuiltyRead the Press Release
WASHINGTON- The Justice Department today announced that Thomas Gleason, 22, of Springfield, Mass., pleaded guilty to three crimes related to the burning of the Macedonia Church of God in Christ, a predominantly African-American church, in Springfield on the morning after President Barack Obama was elected as the first African-American President of the United States.
The superseding indictment charges that in the early morning hours of Nov. 5, 2008, within hours of Obama being elected President, Gleasonand his co-conspirators agreed to burn and succeeded in burning the Macedonia Church of God in Christ’s newly-constructed building where religious services were to be held. The building was nearly completed at the time of the fire, which destroyed the entire structure, leaving only the metal superstructure and a small portion of the front corner intact. Investigators determined the fire to be incendiary in nature and caused by an unknown quantity of gasoline applied to the exterior and interior of the building.
Prior to the Nov. 4, 2008 presidential election, Gleason and his co-conspirators used racial slurs against African-Americans and expressed anger about the possible election of Obama as the first African-American President. On Nov. 4, 2008, Gleason and his co-conspirators agreed to retaliate against the election by burning the new church because the church members, congregation and Bishop were African-American.
Gleason damaged religious property and obstructed the free exercise of religion because of the race, color or ethnic characteristics of any individual associated with that religious property. Gleason conspired to injure, oppress, threaten and intimidate the parishioners of the Macedonia Church of God in Christ in the free exercise or enjoyment of the right to hold and use real property, a right which is secured by the Constitution and laws of the United States.
"The freedom to practice the religion that we choose in a safe environment without being subjected to discrimination or hateful acts is a fundamental right to which every individual is entitled, " said Thomas E. Perez, Assistant Attorney General in charge of the Justice Department’s Civil Rights Division. " Anyone who violates that right will be prosecuted to the fullest extent of the law. "
"As the second defendant in this disturbing case pleads guilty, I hope it sends a strong message that hate crimes are taken very seriously in Massachusetts," said U.S. Attorney for the District of Massachusetts Carmen Ortiz.
Sentencing is scheduled for Oct. 1, 2010.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; FBI; Massachusetts State Police; Hampden County District Attorney’s Office and the Springfield Police Department. It is being prosecuted by Assistant United States Attorneys Paul H. Smyth and Kevin O’Regan and Nicole Lee Ndumele, Trial Attorney in the Department of Justice’s Civil Rights Division.
Puerto Rico Senator and Businessman Charged in Bribery SchemeRead the Press Release
Puerto Rico Senator Hector Martinez Maldonado and Juan Bravo Fernandez, the former president of one of the largest private security firms in Puerto Rico, have been charged in an indictment returned today by a federal grand jury in Puerto Rico for their alleged roles in a bribery scheme involving legislation beneficial to Bravo Fernandez’ business, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.
The six-count indictment returned today in U.S. District Court in Puerto Rico charges Martinez Maldonado, 41, of Carolina, Puerto Rico, and Bravo Fernandez, 54, of San Juan, with bribery, traveling in interstate commerce in aid of racketeering, and conspiracy to commit these offenses. Martinez Maldonado is also charged with obstruction of justice.
According to the indictment, Martinez Maldonado was elected to the Puerto Rican Senate in 2004 and began serving a four-year term in January 2005. He was reelected in 2008. Bravo Fernandez was the president and chief executive officer of one of the largest private security firms in Puerto Rico.
According to the indictment, Bravo Fernandez allegedly conspired to secure the passage of two bills favorable to his business interests by bribing Martinez Maldonado and Jorge de Castro Font, a former Puerto Rican senator. According to the indictment, De Castro Font served in the Puerto Rico House of Representatives from 1989 to 2004, and served in the Puerto Rico Senate from 2005 to 2008. Beginning in 2005, De Castro Font served as chair of the Committee on Rules and Calendars, exercising significant control over which bills, confirmations and other matters were brought to a vote on the floor of the Senate and when they were brought to a vote. Beginning in 2005, Martinez Maldonado served as chair of the Public Safety Committee, exercising significant control over legislation related to the security and general welfare of Puerto Rico, and exercising legislative jurisdiction over issues related to community safety.
As alleged in the indictment, as chair of the Public Safety Committee and chair of the Committee on Rules and Calendars, Martinez Maldonado and De Castro Font, respectively, exercised significant control over the fate of the legislation benefitting Bravo Fernandez’ business interests. According to the indictment, Martinez Maldonado’s committee had to approve both bills before De Castro Font could schedule them for a vote before the entire Senate. In order to secure passage of the two bills, Bravo Fernandez, Martinez Maldonado and De Castro Font allegedly agreed that Martinez Maldonado and De Castro Font would take official acts supporting the legislation benefitting Bravo Fernandez’ business interests in exchange for things of value provided by Bravo Fernandez. Specifically, Bravo Fernandez allegedly provided numerous cash payments to De Castro Font and used his company to surreptitiously pay De Castro Font’s debts with several businesses.
In addition, as alleged in the indictment, Bravo Fernandez agreed to provide to Martinez Maldonado and De Castro Font a trip to Las Vegas to watch the May 14, 2005, boxing match between Felix "Tito" Trinidad and Winky Wright. As part of this agreement, Bravo Fernandez allegedly provided, among other things, first-class airfare, hotel rooms at the Mandalay Bay Resort and Casino, tickets to the Trinidad vs. Wright boxing match worth $1,000, hotel rooms in Miami for the return trip, as well as meals and drinks. According to the indictment, on March 2, 2005, the day that Bravo Fernandez paid for the boxing tickets, Martinez Maldonado submitted one of the bills for consideration by the Puerto Rico Senate. Also, on April 21, 2005, Bravo Fernandez used his personal credit card to reserve a hotel room at the Mandalay Bay Resort and Casino. The deposit for this hotel room was credited to Martinez Maldonado’s hotel room. According to the indictment, the reservation was made the day after Martinez Maldonado presided over a Public Safety Committee hearing at which Bravo Fernandez was the only representative from the private security industry to testify, and Martinez Maldonado authorized a committee report in support of one of Bravo Fernandez’ bills. On May 17, 2005, the day after the three men returned from their trip to Las Vegas, the Puerto Rico Senate approved one of the bills, while on May 18, 2005, the other bill was approved out of the committee chaired by Martinez Maldonado. That bill was passed by the Puerto Rico Senate on May 23, 2005.
Martinez Maldonado and Bravo Fernandez are each charged with one count of conspiracy to commit bribery and conspiracy to travel in interstate commerce in aid of racketeering, one count of interstate travel in aid of racketeering and one count of bribery. Martinez Maldonado is also charged with one count of obstruction of justice for attempting to threaten and corruptly persuade a former staffer to make false statements to the FBI during its investigation into this bribery scheme.
De Castro Font pleaded guilty on Jan. 21, 2009, to 20 counts of honest services wire fraud and one count of conspiracy to commit extortion. He is currently awaiting sentencing.
The maximum penalty for each of the conspiracy and travel in aid of racketeering counts is five years in prison and a $250,000 fine. Each bribery count carries a maximum penalty of 10 years in prison and a $250,000 fine. The obstruction of justice charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
This case is being prosecuted by Trial Attorneys Peter Koski and Marc Levin of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent until convicted through due process of law.Detroit-Area Medical Clinic Owner and Vice President Convicted in $23 Million Medicare Fraud SchemeRead the Press Release
WASHINGTON – The owner and the vice president of a Detroit-area physical therapy clinic were convicted today by a federal jury for their roles in a $23 million Medicare fraud scheme, announced the Departments of Justice and Health and Human Services.
After a six day trial, the jury convicted Bernice Brown of one count of conspiracy to commit health care fraud and 10 counts of health care fraud. Daniel Smorynski was convicted of one count of conspiracy to commit health care fraud and six counts of health care fraud. Smorynski was acquitted on four counts of health care fraud. Each substantive health care fraud charge and the conspiracy charge carry a maximum penalty of 10 years in prison and a $250,000 fine.
Evidence at trial established that Bernice Brown was the owner and president of Wayne County Therapeutic Inc. (WCT) in Livonia, Mich. Daniel Smorynski was the vice president of WCT. WCT purported to be an outpatient clinic that specialized in physical and occupational therapy. Evidence at trial established that Brown purchased fake physical and occupational therapy files from certain third-party contractors, and she and Smorynski billed the services reflected in the files to Medicare as if WCT therapists had provided the services. Brown instructed her staff to create false documents and to add those documents to medical files to make it appear that the WCT therapists, who were licensed in the state and enrolled with Medicare, had performed the services, when she knew they had not. According to evidence presented at trial, Smorynski was in charge of billing at WCT and aided in the submission of claims for services he knew WCT did not provide. Between approximately October 2002 and September 2006, Brown and Smorynski submitted approximately $23.2 million in claims to Medicare for physical and occupational therapy services that were never provided. Medicare paid approximately $6,537,630.34 of those claims.
Evidence at trial showed that the fake files purchased by WCT were created by non-enrolled, and in many cases, non-licensed contractor therapists. The contractor therapists paid Medicare beneficiaries cash kickbacks in return for which the beneficiaries provided their Medicare information and signed false documentation. The contractor therapists also obtained phony prescriptions for the therapy. Evidence at trial established that most, if not all, of the therapy was completely fictitious. For their part, WCT therapists never saw the patients, and did not supervise any of the therapy, but signed documentation in the files to make it appear that they did. All of the services were billed under the provider numbers of WCT therapists enrolled with Medicare.
Evidence at trial showed that Brown and Smorynski, in addition to submitting claims for non-existent physical and occupational therapy, caused WCT to submit fraudulent claims for psychotherapy services. In January 2006, when Congress enacted a cap on physical and occupational therapy services to control costs, Brown and Smorynski devised a scheme to avoid the cap by billing for psychotherapy services. Evidence at trial showed that Brown and Smorynski launched a lobbying effort to repeal the cap, which included WCT staff drafting letters and petitions to Congress purportedly on behalf of Medicare patients. Brown and Smorynski then instructed WCT staff to bill Medicare for their lobbying efforts as psychotherapy evaluations and visits. In 2006, WCT billed $493,200 to Medicare for psychotherapy services that were not necessary and not provided, and Medicare paid approximately $121,921 of those claims.
Today’s guilty verdicts 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 HHS, Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
The case was prosecuted by Trial Attorneys Benjamin D. Singer and Gejaa T. Gobena of the Criminal Division’s Fraud Section. The FBI and HHS-OIG conducted the investigation. The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 585 individuals who collectively have falsely billed the Medicare program for approximately $1.3 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.
Department of Justice Joins in Launch of Administration’s Strategic Plan on Intellectual Property Enforcement as Part of Ongoing IP InitiativeRead the Press Release
As part of the Obama Administration’s launch of the first-ever Joint Strategic Plan on Intellectual Property Enforcement, Attorney General Eric Holder today emphasized the Department of Justice’s ongoing commitment to protecting U.S. intellectual property as central to America’s economic prosperity and public safety.
“The Department worked closely with Administration officials to develop key aspects of this strategic plan to better protect our nation’s ability to remain at the forefront of technological advancement, business development and job creation,” said Attorney General Holder. “The Department, along with its federal, state and local partners, is confronting this threat with a strong and coordinated response at home and abroad to ensure American entrepreneurs and businesses continue to develop, innovate and create.”
Attorney General Holder joined Vice President Joe Biden, Department of Homeland Security Secretary Janet Napolitano, Department of Commerce Secretary Gary Locke, U.S. Trade Representative Ron Kirk, and Intellectual Property Enforcement Coordinator (IPEC) Victoria Espinel at the White House earlier today to announce the strategic plan.
“The integrity of health and safety products and trade secrets must be protected. The FBI is committed to pursuing those groups and individuals who steal, manufacture, distribute or otherwise profit from intellectual property theft,” said Gordon M. Snow, Assistant Director of the FBI’s Cyber Division.
The components of the strategic plan that the Department will assist in implementing include:
- Ensuring efficiency and coordination among enforcement efforts across federal, state and local levels, domestically and overseas, through means such as shared information, streamlined investigatory processes and training efforts;
- Enhancing international enforcement efforts, including combating foreign-based web sites that violate American intellectual property rights by encouraging further cooperation and coordination with our trading partners in overseas markets, including China;
- Securing our supply chain to stop illegal products from coming into the country by providing law enforcement with authorities it needs and by fostering cooperation with the private sector to reduce infringement on the Internet and elsewhere.
The strategic plan is the latest effort in the Department’s ongoing initiative to protect intellectual property. Others include:
Department Task Force on Intellectual Property
Earlier this year, the Attorney General formed a new Department of Justice Task Force on Intellectual Property to focus on strengthening efforts to protect intellectual property rights through close coordination with state and local law enforcement partners as well as international counterparts. As part of its mission, the task force, chaired by the Acting Deputy Attorney General Gary G. Grindler, will also work together with the IPEC and other key partners to implement the Administration-wide strategic plan on intellectual property.
As part of its efforts to enhance coordination with its federal, state and local law enforcement partners, the task force is hosting joint sessions in the coming months. In July, the task force will be holding a joint workshop with Customs and Border Protection. In September, the Department, in partnership with the National White Collar Crime Center (NW3C), will hold a one-day Intellectual Property Crime Enforcement Outreach Summit in California for state and local law enforcement to learn and understand the impact of intellectual property crime on the local, regional, and national economy. In addition, the Department will emphasize the substantial health and safety risks to Americans from counterfeit goods and products .
The task force includes representatives from the offices of the Attorney General, the Deputy Attorney General, and the Associate Attorney General; the Criminal Division; the Civil Division; the Antitrust Division; the Office of Legal Policy; the Office of Justice Programs; the Attorney General’s Advisory Committee; the Executive Office for U.S. Attorneys and the FBI.
Increased Intellectual Property Enforcement Resources
As part of stepped up enforcement efforts, the Department has also devoted more resources to investigate and prosecute intellectual property crimes. In April, the Department announced the appointment of 15 new Assistant U.S. Attorney (AUSA) positions and 20 FBI Special Agents to be dedicated to combating domestic and international intellectual property crimes.
These new AUSAs will be working closely with the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) to aggressively pursue high tech crime, including computer crime and intellectual property offenses. The new positions are located in California, the District of Columbia, Maryland, Massachusetts, Michigan, New Jersey, New York, Pennsylvania, Texas, Virginia and Washington. These new positions will be part of the Department’s Computer Hacking and Intellectual Property (CHIP) program.
Just last month, the Department solicited applications for grant funding under the Department’s Intellectual Property Enforcement Program, which is administered by the Department’s Office of Justice Programs (OJP) and its Bureau of Justice Assistance (BJA). Under this program, OJP/BJA will award up to $4 million in competitive grants to fund state, local and tribal criminal investigations, prosecutions, and prevention and education efforts.
Enhanced Intellectual Property Enforcement Efforts
As part of its enforcement strategy, the Department has been aggressively targeting intellectual property criminals. The Department has successfully prosecuted cases in every area of intellectual property crime including health and safety, trade secret theft and economic espionage, large-scale counterfeiting and online piracy. These prosecutions include one of the largest counterfeiting cases in U.S. history (United States v. Lam http://www.cybercrime.gov/lamGuilty.pdf ). During FY 2010, the FBI opened 150 new investigations, including 21 counterfeit health and safety investigations and 26 investigations involving theft of trade secret cases. Additionally, the FBI also opened 40 new Economic Espionage investigations during the same time period.
Industry and International Engagement
The Department has also taken steps to strengthen its relationships with key stakeholders in the fight against intellectual property crimes around the world by meeting with foreign law enforcement partners as well as leaders in the industry.
In the past several months, the Attorney General has met with foreign law enforcement officials from South America and Spain, industry CEOs and others to discuss the Department’s ongoing efforts and emphasize the need for greater coordination and cooperation in the fight against intellectual property crime
Read the Strategic Plan here .
Monday 21 June 2010
Justice Department Settles Citizenship Status Discrimination Claims Against Morton’s Restaurant in Portland, OregonRead the Press Release
The Justice Department today announced that it has reached an agreement with Morton’s of Chicago/Portland Inc. to settle allegations that it required two non-citizens authorized to work in the United States to present more documents than legally required to establish their work eligibility. Morton’s fired the workers after it rejected their valid Social Security cards and demanded to see additional documentation establishing their work authorization. In contrast, Morton’s routinely permitted U.S. citizens to present their Social Security cards for this purpose.
Under the terms of the out-of-court settlement, Morton’s has agreed to provide full back pay of $2,880 and $5,715.62 to the two employees, pay a civil penalty to the U.S. Treasury of $2,200 and train Morton’s Portland employees on federal protections for workers against citizenship status and national origin discrimination. Morton’s of Chicago Inc., the parent company, has also agreed to provide complete information about properly conducting the employment eligibility verification process to its managers and employees nationwide who have any role in completing the government’s Form I-9 process to determine work authorization.
As part of the settlement, the Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) will monitor Morton’s for one year to ensure compliance with the settlement agreement. OSC is responsible for enforcing the anti-discrimination provision of the Immigration and Nationality Act (INA), which protects work authorized individuals against employment discrimination on the basis of citizenship status or national origin discrimination, including discrimination in the Form I-9 process.
"Our nation’s laws ensure that all individuals who are authorized to work in this country can do so without fear of discrimination or retaliation because of their citizenship status or national origin," said Thomas E. Perez, Assistant Attorney General for Civil Rights. "The Department of Justice is committed to ensuring that all authorized U.S. workers, regardless of citizenship or national origin, are afforded equal opportunity in the workplace."
For more information about protections against employment discrimination under federal immigration law, 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. You can also e-mail [email protected], or visit the website at www.justice.gov/crt/osc.
Faisal Shahzad Pleads Guilty in Manhattan Federal Court to 10 Federal Crimes <br /> Arising from Attempted Car Bombing in Times SquareRead the Press Release
Faisal Shahzad pleaded guilty today in Manhattan federal court before U.S. District Judge Miriam Goldman Cedarbaum to all counts of the 10-count indictment against him, for allegedly driving a car bomb into Times Square on the evening of May 1, 2010, the Justice Department announced.
Shahzad, 30, a naturalized U.S. citizen born in Pakistan, was taken into custody at John F. Kennedy International Airport (JFK Airport) on May 3, 2010, after he was identified by the Department of Homeland Security’s U.S. Customs and Border Protection while attempting to leave the United States on a commercial flight to Dubai. Shahzad was then charged in a five-count criminal complaint. On May 18, 2010, he was presented in Manhattan federal court before U.S. Magistrate Judge James C. Francis IV. Last week, on June 17, 2010, Shahzad was indicted in the Southern District of New York.
"Faisal Shahzad plotted and launched an attack that could have led to serious loss of life, and today the American criminal justice system ensured that he will pay the price for his actions," Attorney General Eric Holder said. "We will not rest in bringing to justice terrorists who seek to harm the American people, and we will use every tool available to the government to do so."
"This investigation included a combination of traditional law enforcement techniques and intelligence-based authorities, with men and women from a number of agencies working side-by-side in support of a common goal," said FBI Director Robert S. Mueller.
"Today, less than two months after his arrest, Faisal Shahzad pleaded guilty to 10 felony charges for attempting to carry out a plot to bomb the heart of New York City," said Preet Bharara, the U.S. Attorney for the Southern District of New York. "In admitting his guilt today, Shahzad reminded us of the uniquely serious threat that our city faces every single day. I express my gratitude and admiration for the agents and detectives of the FBI and New York Police Department (NYPD) who dedicate their lives to the daily fight to keep this city, its residents and its visitors, safe from harm."
U.S. Attorney Bharara added that there is no plea agreement between the government and Shahzad, and that the investigation is continuing. Shahzad is scheduled to be sentenced by Judge Cedarbaum on Oct. 5, 2010, at 10 a.m.
According to the indictment to which Shahzad pleaded guilty, statements made during today's proceeding, and the criminal complaint filed in Manhattan federal court:
In December 2009, Shahzad received explosives training in Waziristan, Pakistan, from explosive trainers affiliated with Tehrik-e-Taliban, a militant extremist group based in Pakistan. On Feb. 25, 2010, Shahzad received approximately $5,000 in cash in Massachusetts sent from a co-conspirator (CC-1) in Pakistan whom Shahzad understood worked for Tehrik-e-Taliban. Approximately six weeks later, on April 10, 2010, Shahzad received an additional $7,000 in cash in Ronkonkoma, N.Y., which was also sent at CC-1’s direction.
On March 15, 2010, Shahzad purchased a semi-automatic 9 millimeter Kel-Tec rifle in Connecticut. This rifle was found, loaded, in Shahzad’s car on the day of his arrest.
In April 2010, Shahzad contacted the seller of a Nissan Pathfinder after seeing an advertisement posted on a website. Thereafter, on April 24, 2010, Shahzad and the seller of the Pathfinder agreed to meet in a supermarket parking lot in Connecticut, where Shahzad paid the seller $1,300 for the Pathfinder. In April 2010, Shahzad also purchased components for the improvised explosive and incendiary devices that he loaded into the Pathfinder on May 1, 2010.
On May 1, 2010, Shahzad drove the Pathfinder, loaded with the improvised explosive and incendiary devices, to Manhattan and parked the Pathfinder in Times Square in the vicinity of 45th Street and Seventh Avenue. After parking the Pathfinder, Shahzad attempted to begin the detonation process of the improvised explosive and incendiary devices. Thereafter, Shahzad abandoned the Pathfinder and returned to his residence in Connecticut.
On May 3, 2010, Shahzad drove from Connecticut to JFK Airport as he attempted to flee to Dubai. He was arrested later that same day at JFK Airport. After his arrest, Shahzad admitted that he had recently received bomb-making training in Pakistan. He also admitted that he had brought the Pathfinder to Times Square and attempted to detonate it.
The indictment filed against Shahzad last week charges him with 10 offenses which carry the following potential penalties:
Count
Charge
Maximum Prison Term
1
Attempted use of a weapon of mass destruction
Life
2
Conspiracy to use a weapon of mass destruction
Life
3
Possession of a firearm during and in relation to a conspiracy to use a weapon of mass destruction
Life*
4
Attempted act of terrorism transcending national boundaries
Life
5
Conspiracy to commit an act of terrorism transcending national boundaries
Life
6
Attempted use of a destructive device during and in relation to a conspiracy to commit an act of terrorism transcending national boundaries
Life*
7
Transportation of an explosive
10 years
8
Conspiracy to transport an explosive
10 years
9
Attempted destruction of property by fire and explosive
20 years*
10
Conspiracy to destroy property by fire and explosive
20 years*
* Counts Three, Nine, and Ten each carry a mandatory minimum penalty of five years in prison. Because Shahzad pleaded guilty to Count Three, Count Six carries a mandatory minimum penalty of life in prison.
FBI New York Acting Assistant Director-in-Charge George Venizelos stated: "Today’s guilty plea is right on the mark. Faisal Shahzad was poised and ready to terrorize the citizens and visitors of New York City, and threaten the security of our nation. He set out to act on radical ideologies, but his evil plans were thwarted. The vigilance on behalf of ordinary citizens who alerted law enforcement of suspicious activity, and strength and swift actions taken by the FBI’s Joint Terrorism Task Force (JTTF), diverted this intended attack on our homeland. It’s the hard work of the FBI team along with our partnerships with law enforcement and the intelligence community that enables us to fight terrorism every day."
Police Commissioner Raymond W. Kelly said, "The plea reflects outstanding and timely work by NYPD detectives and FBI agents in the immediate aftermath of the discovery of the car bomb in Times Square, as well as that of the accomplished team of prosecutors headed by United States Attorney Preet Bharara. We remain alert to and concerned by the threat of home grown terrorism aimed at New York City."
The indictment was the result of the investigative efforts of the FBI’s Joint Terrorism Task Force (JTTF) in New York, Connecticut and Massachusetts, especially those JTTF members from the FBI and the New York City Police Department. U.S. Customs and Border Protection also made significant contributions to the case. Substantial assistance was also provided by the Justice Department’s National Security Division, as well as the U.S. Attorney’s Offices for the Districts of Connecticut and Massachusetts.
The prosecution is being handled by Assistant U.S. Attorneys Brendan R. McGuire, Randall W. Jackson, John P. Cronan and Jeffrey A. Brown of the Terrorism and International Narcotics Unit in the U.S. Attorney’s Office for the Southern District of New York.
Department of Justice and USDA Announce Agenda for June 25 Dairy WorkshopRead the Press Release
The Department of Justice and the U.S. Department of Agriculture (USDA) announced today the agenda and panelists for the June 25 workshop examining competition in the dairy industry. The joint public workshop will build on the knowledge and experience of industry stakeholders, including farmers, processors, cooperative leaders and academics. This is the third in a series of five workshops intended to promote dialogue among interested parties and foster learning with respect to competition and regulatory issues in agriculture.
The workshop will be held in the Wisconsin Union Theater at the University of Wisconsin – Madison, 800 Langdon Street, Madison, Wis. Attendance is free and open to the public. The general public and media interested in attending the Wisconsin workshop should register at www.surveymonkey.com/s/V3FHXPY.
The workshop will begin with opening remarks and a roundtable discussion including U.S. Attorney General Eric Holder, U.S. Agriculture Secretary Tom Vilsack and Assistant Attorney General for the Justice Department’s Antitrust Division Christine Varney. Wisconsin Senators Herb Kohl and Russell Feingold; Representatives Ron Kind, Steve Kagen and Tammy Baldwin; Governor Jim Doyle; and Agriculture Secretary Rod Nilsestuen have all tentatively accepted invitations to join the roundtable discussion.
The workshop will continue with a session entitled, “Farmer Presentation of Issues,” as well as panels on “Trends in the Dairy Industry,” “Market Consolidation” and “Market Transparency.” There will also be two hours dedicated to public testimony, one immediately prior to lunch and the other at the end of the day.
The schedule is as follows:
8:45 a.m. – 9:00 a.m. CDT Opening Remarks
Eric Holder, Attorney General, U.S. Department of Justice
Tom Vilsack, Secretary of Agriculture, U.S. Department of Agriculture9:00 a.m. – 10:15 a.m. CDT Keynote Roundtable Discussion
Eric Holder, Attorney General, U.S. Department of Justice
Tom Vilsack, Secretary of Agriculture, U.S. Department of Agriculture
Christine Varney, Assistant Attorney General, Antitrust Division, U.S. Department of JusticeTentative:
Herb Kohl, Senator, U.S. Senate
Russell Feingold, Senator, U.S. Senate
Tammy Baldwin, Congresswoman, U.S. House of Representatives
Ron Kind, Congressman, U.S. House of Representatives
Steve Kagen, Congressman, U.S. House of Representatives
Jim Doyle, Governor, state of Wisconsin
Rod Nilsestuen, Secretary of Agriculture, state of Wisconsin10:15 a.m. – 11:15 a.m. CDT Farmer Presentation of Issues
This panel will be an opportunity to hear first-hand from dairy farmers as they share their experiences and perspectives on the industry.
Moderators: Eric Holder, Attorney General, U.S. Department of Justice
Tom Vilsack, Secretary of Agriculture, U.S. Department of Agriculture
Christine Varney, Assistant Attorney General, Antitrust Division, U.S. Department of JusticeJamie Bledsoe, Riverdale, Calif.
11:15 a.m. – 11:45 a.m. CDT Coffee Break 11:45 a.m. – 12:45 p.m. CDT Public Testimony 12:45 p.m. – 1:15 p.m. CDT Lunch 1:15 p.m. – 2:30 p.m. CDT Panel I – Trends in the Dairy Industry
Joaquin Contente, Hanford, Calif.
Joel Greeno, Kendall, Wis.
Frances Horton, Hatch, N.M.
Ed King, Schuylerville, N.Y.
Bill Rowell, Sheldon, Vt.
Christine Sukalski, Leroy, Minn.
Darin Von Ruden, Westby, Wis.This panel will examine changes in the industry, the responses of industry stakeholders and the potential implications for regulation and enforcement.
Moderator: Josh Soven, Chief, Litigation I Section, Antitrust Division, U.S. Department of Justice
Peter Carstensen, Professor of Law, University of Wisconsin
Ron Cotterill, Professor of Agricultural and Resource Economics, University of Connecticut
Bob Cropp, Emeritus Professor of Agricultural and Applied Economics, University of Wisconsin
Jim Goodman, organic dairy farmer, Wonewoc, Wis.
Jerrel Heatwole, dairy farmer, Greenwood, Del.
Peter Kappelman, chairman of the board of directors, Land O’ Lakes Cooperative
Marcus Peperzak, chief executive officer, Aurora Organic Dairy2:30 p.m. – 3:45 p.m. CDT Panel II – Market Consolidation
This panel will explore how changes in firm size are affecting both farmers and consumers.
Moderator: James MacDonald, Chief, Agricultural Structure and Productivity Branch, Economic Research Service
Calvin Covington, retired dairy industry executive, King, N.C.
Brian Gould, Associate Professor, Department of Agricultural and Applied Economics, University of Wisconsin - Madison
Louise Hemstead, chief operating officer, Organic Valley Cooperative
Daniel Smith, Esq., former administrator, Northeast Dairy Compact Commission
John Wilson, senior vice president, Dairy Farmers of America3:45 p.m. – 4:00 p.m. CDT Break
4:00 p.m. – 5:00 p.m. CDT Panel III – Market Transparency
This panel will examine farm prices for milk, contracts and related issues from a public policy perspective.
Moderator: Mark Tobey, Special Counsel for Agriculture and State Relations, Antitrust Division, U.S. Department of Justice
Stephen Obie, director of enforcement, Commodity Futures Trading Commission
Andy Pauline, assistant director, Government Accountability Office
Tanya Rushing, dairy farmer, Tylertown, Miss.
Denny Wolff, partner, Versant Strategies, and former Pennsylvania Secretary of Agriculture
Robert Yonkers, vice president and chief economist, International Dairy Foods Association5:00 p.m. – 6:00 p.m. CDT Public Testimony
6:00 p.m. CDT Concluding Remarks
Additional information, including submitted public comments and transcripts for past workshops can be found at the Antitrust Division’s agriculture workshop website at www.justice.gov/atr/public/workshops/ag2010/index.htm. While no streaming webcast will be available, transcripts and video will be available for this workshop at a later date on the Antitrust Division’s website. Individuals seeking more information on the workshops should contact [email protected].
Media who wish to attend the workshop may begin arriving at 7:00 a.m. CDT and cameras must be pre-set by 8:00 a.m. CDT. Press inquiries regarding logistics at the Wisconsin Union Theater at the University of Wisconsin-Madison should be directed to Stacy Forster at 608-262-0930 or [email protected].
Friday 18 June 2010
Leader of Texas Prison/Street Gang Sentenced to 96 Months in Prison for Firearms ConvictionRead the Press Release
Steven Walter Cooke, 47, a reputed high ranking member of the Aryan Brotherhood of Texas (ABT) prison/street gang and a previously convicted felon, has been sentenced to prison for possessing firearms, Assistant Attorney General Lanny A. Breuer for the Department of Justice Criminal Division and U.S. Attorney for the Southern District of Texas José Angel Moreno announced today.
U.S. District Judge Gray H. Miller sentenced Cooke to 96 months in federal prison without parole and a three-year-term of supervised release following his prison term. Cooke, identified in previous court proceedings as a "general" of the ABT, pleaded guilty on Feb. 16, 2010, to one count of being a felon in possession of a firearm. Convicted felons are prohibited from possessing firearms under federal law.
At the time of his guilty plea, Cooke, who has multiple prior convictions dating back to 1987 for aggravated robbery, robbery, possession of crack cocaine and theft of firearms, admitted to having possessed 13 firearms at his Tomball, Texas, area residence between April 2007 and Oct. 23, 2008. The firearms, including seven rifles - two of which were ROMARM/CUGIR 7.62 caliber from Romania, five shotguns and one Sterling .380 caliber pistol, were seized following the execution of a state search warrant. In addition to the firearms, more than 300 rounds of ammunition and body armor were also seized from Cooke’s residence.
The search warrant was obtained as a result of an investigation conducted by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of the Tomball Police Department, Texas Rangers, Texas Department of Public Safety, Montgomery County Sheriff’s Office, Houston Police Department Gang Unit, Drug Enforcement Administration, the U.S. Marshals Service and the U.S. Department of Justice’s Gang Targeting, Enforcement and Coordinating Center. A camera containing photographs of Cooke carrying one of the Romanian rifles was seized from Cooke’s vehicle in mid-October 2008 by the Polk County Sheriff’s Office prompting the investigation leading to these federal charges.
Assistant U.S. Attorney Jay Hileman and Trial Attorney David N. Karpel of the Criminal Division’s Gang Unit prosecuted the case.
Justice Department to Monitor Election in TexasRead the Press Release
WASHINGTON – The Justice Department today announced that it will monitor the municipal election on June 19, 2010, in Galveston, Texas, to ensure compliance with the requirements of the Voting Rights Act of 1965.
The act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group. In addition, the act requires certain covered jurisdictions, including Galveston County, to provide language assistance in Spanish during the election process. Galveston County is also subject to a court order entered in 2007 that requires the jurisdiction to comply with the minority language requirements of the Voting Rights Act.
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 areas that are specially covered in the act itself or by a federal court order. Federal observers will be assigned to monitor polling place activities in Galveston based on the attorney general’s certification. The observers will watch and record activities during voting hours at polling locations in this jurisdiction, and a Civil Rights Division attorney will coordinate the federal activities and maintain contact with local election officials.
Each year, the Justice Department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931. Visit www.usdoj.gov/crt/voting/index.htm for more information about the Voting Rights Act and other federal voting laws.
Justice Department Obtains Sweeping Reforms in Suicide Prevention Practices at the Erie County Holding Center, Buffalo, New York to Protect Inmates from Life Threatening ConditionsRead the Press Release
WASHINGTON – The Justice Department today announced that it has filed a stipulated settlement agreement resolving a portion of its lawsuit against Erie County, N.Y, regarding the limited issue of suicide prevention and related mental health care.
On Sept. 30, 2009, the department filed a lawsuit challenging the conditions of confinement at the Erie County Holding Center, a pre-trial detention center in Buffalo, N.Y., and the Erie County Correctional Facility, a correctional facility in Alden, N.Y. The lawsuit, filed in the U.S. District Court for the Western District of New York, alleges that conditions at the facilities routinely and systemically deprive inmates of constitutional rights.
"After three recent suicides and a serious suicide attempt that left an inmate on life support, we are pleased that Erie County has agreed to promptly implement measures to safeguard inmates from further harm," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
"After exhaustive mediation and settlement negotiations that resulted in today’s agreement, we are hopeful that the parties can continue to find ways to cooperatively resolve the remaining claims in this case to ensure constitutionally conditions of confinement at both facilities," said William J. Hochul Jr., U.S. Attorney for the Western District of New York.
Since 2005, there have been eight suicides at the holding center, including three suicides that occurred after the Justice Department filed its complaint to remedy unconstitutional conditions that place inmates at risk of serious harm at the facilities. As part of its litigation, the United States’ suicide prevention expert found that the suicide rate at the holding center was five times the national average.
The stipulated settlement agreement addresses the county’s inadequate system of suicide prevention and self-injurious behavior of holding center inmates. Under the agreement, Erie County and the sheriff will implement detailed remedial measures to ensure that holding center inmates are protected from suicide hazards. Among these measures, the county will improve screening and assessment, provide suicide prevention and detoxification training to holding center staff, improve communication and record keeping, provide safe housing, and establish a risk management system that identifies and corrects deficiencies on an ongoing basis. Compliance with the agreement will be overseen by a jointly selected monitor, who will be paid by the county and will exercise broad duties, respectively, over suicide prevention practices and related mental health care. The county has agreed to provide the monitor broad access to the facility to ensure that the remedial measures are implemented properly. The court will retain jurisdiction over the stipulated settlement for the purpose of enforcing the terms therein.
"These changes, in particular the physical improvements, are needed to ensure the safety of all inmates. But it is also incumbent upon jail staff to follow through to prevent any more unnecessary deaths," said Hochul.
While the stipulated settlement agreement resolves this limited issue, the department will continue to vigorously advocate the remaining claims of its litigation that include broader mental health care concerns, staff-on-inmate violence, inmate-on-inmate violence, sexual misconduct between staff and inmates, sexual misconduct among inmates, inadequate medical care, and serious deficiencies in environmental health and safety.
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.