Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Thursday 17 June 2010
United States Files Claims Against Feed Dealers<br /> in USDA Livestock Feed Assistance Initiative Fraud CaseRead the Press Release
WASHINGTON – The United States filed a False Claims Act suit against R&J Feed Co., Jerry Goodwin, Richard Carter and Carter Livestock Inc. in the U.S. District Court in Kansas City, Mo., the Justice Department announced today. The United States alleges that the defendants violated the False Claims Act by being involved in the improper export of U.S. Department of Agriculture (USDA)-owned nonfat dry milk that was earmarked for livestock producers in designated states.
The case involves the USDA’s livestock feed assistance initiatives in 2002 and 2003. USDA created the initiatives to provide protein-enriched feed to ranchers. To that end, the U.S. Agriculture Department provided nonfat dry milk to feed dealers at little or no cost for incorporation into livestock feed. Feed dealers who participated in the program were required to certify, among other things, that the nonfat dry milk received under the program would only be used to produce feed to be fed to livestock in specifically enumerated drought stricken states within the United States. The complaint alleges the defendants falsely certified that they would abide by these use restrictions but, in fact, facilitated and profited from the export of millions of pounds of program nonfat dry milk to other countries.
"The USDA’s livestock feed assistance initiatives were intended to help ranchers in the United States," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We will pursue those who are suspected of seeking to gain financially by ignoring the program’s rules and not honoring the certifications they make."
Northern Virginia Real Estate Agent Pleads Guilty<br /> to Failing to File Tax ReturnsRead the Press Release
WASHINGTON – Gregory Alan Roberts, a resident of Fairfax County and Loudoun County, Va., pleaded guilty to failing to timely file income tax returns for the years 2003 and 2004, the Justice Department and Internal Revenue Service (IRS) announced today.
At his plea hearing, Roberts admitted that he has not filed an individual income tax return with the IRS since at least 1998, despite the fact that he was required to do so by law. Roberts has worked as a real estate agent in Vienna, Va., since at least November 1994.
According to court documents, Roberts earned $146,344 in 2003 and owed $37,361 in taxes. He earned $128,007 in 2005 and owed $29,249 in taxes. Additionally, between 1998 and 2006, Roberts received between $42,388 and $146,344 in gross income each year and failed to pay the IRS at least $161,595 in taxes.
U.S. Magistrate Judge Ivan D. Davis of the Eastern District of Virginia released Roberts pending sentencing, which is scheduled for Aug. 31, 2010. Roberts faces a maximum sentence of two years in prison and a fine of $50,000. He has agreed to pay all taxes, interest and penalties for the years 1998 through 2006.
Acting Assistant Attorney General John A. DiCicco and Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, commended the investigative efforts of the IRS agents involved in this case, as well as Tax Division Trial Attorneys Caryn D. Finley and Justin K. Gelfand, who are prosecuting the case.
Kosovar National Charged with Terrorism ViolationsRead the Press Release
Bajram Asllani, 29, a resident of Mitrovica, Kosovo, has been charged in a criminal complaint with providing material support to terrorists and conspiring to murder, kidnap, maim and injure persons abroad, David Kris, Assistant Attorney General for National Security; George E.B. Holding, U.S. Attorney for the Eastern District of North Carolina; Owen D. Harris, Special Agent in Charge of the FBI’s Charlotte Field Division; and Robin Pendergraft, Director of the North Carolina State Bureau of Investigation, announced today.
Asllani, also known as "Bajram Aslani," or "Ebu Hatab," was arrested earlier today by authorities in Kosovo in connection with a U.S. provisional arrest warrant issued in the Eastern District of North Carolina. The United States intends to seek his extradition from Kosovo to stand trial in Raleigh. In accordance with the extradition agreement between the United States and Kosovo, Asllani faces a potential maximum of 40 years in prison if convicted.
Last July, eight defendants were indicted in the Eastern District of North of Carolina on charges of conspiracy to provide material support to terrorists; conspiracy to murder, kidnap, maim and injure persons abroad; and other violations. Those charged were Daniel Patrick Boyd, a U.S. citizen and resident of North Carolina; Hysen Sherifi, a native of Kosovo and a U.S. legal permanent resident in North Carolina; Anes Subasic, a naturalized U.S. citizen and resident of North Carolina; Zakariya Boyd, a U.S. citizen and resident of North Carolina; Dylan Boyd, a U.S. citizen and resident of North Carolina; Jude Kenan Mohammad, a U.S. citizen; Mohammad Omar Aly Hassan, a U.S. citizen and resident of North Carolina; and Ziyad Yaghi, a U.S. citizen and resident of North Carolina.
A superseding indictment returned on Sept. 24, 2009, added new charges against Daniel Patrick Boyd, Hysen Sherifi and Zakariya Boyd, alleging, among other things, that Daniel Boyd and Sherifi conspired to murder U.S. military personnel as part of a plot to attack troops at the Marine Corps Base in Quantico, Va. These three defendants were also charged with possession of weapons in furtherance of a crime of violence and Daniel Boyd was further charged with providing a firearm to a convicted felon.
An April 19, 2010, criminal complaint unsealed today alleges that Asllani was a member of the conspiracy involving the defendants listed above. Specifically, the complaint alleges that Asllani has had repeated communications with the conspirators; solicited money from the conspirators to establish a base of operations in Kosovo for the purpose of waging violent jihad; tasked the conspirators with completing work to further these objectives and accepted funds from the conspirators to help him travel.
Among other things, the complaint alleges that Hysen Sherifi departed from Raleigh for Pristina, Kosovo, on July 30, 2008, to pursue violent jihad. While in Kosovo, Sherifi allegedly formed a relationship with Asllani. Sherifi often referred to Asllani as "the brother" in Kosovo who was advising him and who was "wanted." According to the complaint, Asllani had been arrested by Kosovar law enforcement in 2007 and been placed on house arrest for a period of time. He was later convicted in absentia by a Serbian court in September 2009 for planning terrorist-related offenses and was sentenced to eight years of confinement.
According to the complaint, Asllani provided Sherifi with videos related to violent jihad for the purposes of translating them so they could be used to recruit others for violent jihad or to motivate those currently involved in violent jihad. Sherifi, did in fact, translate videos provided him by Asllani, the complaint alleges.
The complaint further alleges that Asllani directed Sherifi to collect money for the purpose of later purchasing land and establishing a community in Kosovo, where they could store weapons and ammunition and which they could use as a base of operations for conducting violent jihad in Kosovo and other countries. Sherifi did, in fact, return to the United States on April 5, 2009, and collected money for this purpose, receiving a check for $15,000 in July 2009. Sherifi was arrested on July 27, 2009, before he could take the money back to Asllani in Kosovo.
In addition, the complaint alleges Asllani received money from Sherifi that was sent with the intention of being used by Asllani to obtain travel documents. And finally, the complaint alleges that Daniel Boyd stated his desire to assist Sherifi in his plan to raise money for the mujihadeen in Kosovo. Specifically, Boyd stated he wanted to send his sons, Zakariya Boyd and Dylan Boyd, and himself to Kosovo after Sherifi returned. Zakariya and Dylan Boyd spent time online with Sherifi chatting with Asllani in Kosovo.
"The facts as alleged in this complaint underscore the connectivity between extremists at home and abroad and the global nature of the terrorist threat we face. At the same time, the arrest of Asllani demonstrates how effective cooperation among international partners serves to address such threats. I applaud the many agents, analysts and prosecutors who helped bring about this important case," said David Kris, Assistant Attorney General for National Security.
George E.B. Holding, U.S. Attorney for the Eastern District of North Carolina, reports that "through Asllani’s arrest, the arm of justice is proven strong enough to reach those who would do us harm. We shall continue in our relentless effort against those aspiring to commit terrorist acts on U.S. citizens, whether here or abroad."
"People who are plotting to harm America and Americans are no longer a world away from us. This case began in Raleigh, N.C., and now stretches across the globe, a circumstance no one would have thought possible less than ten years ago," said Owen D. Harris, Special Agent in Charge of the FBI in North Carolina. "The FBI and our law enforcement partners are meeting this new and grim reality head on, because if we don’t - the possible impact will reverberate in every corner of our society. Our mission is to keep that from happening."
"This case highlights the very real affiliation between foreign terrorists and North Carolina. Only through the sharing of resources and information can federal, state and local law enforcement, in conjunction with alert citizens, effectively face this increased threat from violent groups. North Carolina Information Sharing and Analysis Center’s assistance to the FBI in this matter firmly establishes the effectiveness of this cooperative strategy," said Robin Pendergraft, Director of the North Carolina State Bureau of Investigation.
This investigation is being conducted by the Raleigh Joint Terrorism Task Force of the Charlotte Division of the FBI and the North Carolina Information Sharing and Analysis Center. Substantial assistance was provided by the Justice Department’s Office of International Affairs, the State Department and the Government of Kosovo.
The prosecution is being handled by Assistant U.S. Attorneys John Bowler, Barbara Kocher and Jason Cowley of the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorney Jason Kellhofer of the Counterterrorism Section in the Justice Department’s National Security Division.
The public is reminded that a criminal complaint contains mere allegations. Defendants are presumed innocent unless and until proven guilty in a court of law.
Iranian National Pleads Guilty to Attempting to Export Munitions from the United StatesRead the Press Release
Omid Khalili, an Iranian national, pleaded guilty today in U.S. District Court for the Southern District of Alabama to attempting to illegally export fighter jet or military aircraft parts from the United States to Iran.
The guilty plea was announced by David Kris, Assistant Attorney General for National Security; Kenyen R. Brown, U.S. Attorney for the Southern District of Alabama; John Morton, Department of Homeland Security, Assistant Secretary for U.S. Immigration and Customs Enforcement (ICE); and Sharon Woods, Director of the Defense Criminal Investigative Service (DCIS).
Khalili along with defendant "Masun," whose last name is unknown, was charged in a nine-count indictment returned on Jan. 28, 2010, with conspiracy, money laundering, smuggling, as well as violations of the Arms Export Control Act and the International Emergency Economic Powers Act. Khalili was arrested by federal agents in March 2010 upon his arrival in Miami. Masun remains at large.
According to Khalili’s factual proffer and the documents filed in court, Khalili, along with his co-conspirator Masun, have been actively working with the Iranian government to procure military items for the Iranian government. In November 2009, Khalili and Masun contacted an undercover agent (hereinafter known as "U/CI") seeking parts for the military aircraft for export to Iran and, thereafter, began having regular e-mail contact with U/CI regarding the requested aircraft parts.
These parts are replacement parts for a military aircraft that were sold to Iran by the United States before the 1979 Iranian revolution. As of 2009, this military aircraft is in service with only the Islamic Republic of Iran Air Force. The parts requested by the defendants are designated as defense articles on the U.S. Munitions List and may not be exported from the United States without a license from the U.S. State Department. In addition, these items may not be exported to Iran without a license from the U.S. Treasury Department due to the U.S. trade embargo on Iran. The defendants had not obtained the required U.S. government export licenses for such exports.
On Nov. 20, 2009, Khalili sent an e-mail to U/CI that contained a list of aircraft parts for the military aircraft and requested that U/CI provide pricing for said aircraft parts. On Dec. 1, 2009, U/CI sent an e-mail to Khalili providing pricing for said aircraft parts. On Dec. 4, 2009, Khalili and Masun talked with U/CI and informed him that the aircraft parts were to be sent to Iran and that, because of the U.S. embargo, they would first need to be shipped through an intermediate country. Thereafter, the defendant and other co-conspirators sent four separate cash deposits totaling in excess of $70,000 by wire from a bank in the United Arab Emirates to a bank in Alabama as down payment for the aircraft parts to be shipped to Iran. Using e-mail and telephone calls, the agents agreed to send the requested parts to the defendants.
"Today’s plea underscores the continuing threat posed by Iranian procurement networks," said Assistant Attorney General for National Security Kris. "I applaud the many agents, analysts and prosecutors who worked tirelessly to bring about this important case."
"Today’s prosecution clearly shows that the United States will relentlessly pursue cases dealing with those who are seeking to illegally purchase military equipment for Iran and will tenaciously follow every avenue to shut down illegal arms transfer to Iran," said U.S. Attorney for the Southern District of Alabama Brown.
"We realize foreign governments actively seek our equipment for their own military development. Therefore, preventing the export of critical technologies and restricted munitions is of extreme concern to the Department of Defense (DOD) because of the real possibility that our soldiers, sailors, airmen and marines may have to face this material in the hands of our adversaries and thereby lose the advantage that U.S. technology is supposed to provide them," said Director of the Defense Criminal Investigative Service Woods. "Protecting America’s war fighters through technology protection is a top priority for the Defense Criminal Investigative Service, the law enforcement arm of the DOD Inspector General, and a fundamental focus for our special agents."
"The guilty plea of Khalili reflects the government’s commitment to ensuring that critical technologies and military-grade weapons not fall into the wrong hands," said ICE Assistant Secretary Morton. "ICE will continue bringing to bear its unique law enforcement authorities to investigate and enforce criminal violations of all U.S. export laws related to military items and controlled "dual-use" commodities."
Khalili faces a maximum penalty of ten years in prison and a $1 million fine.
This case was investigated by the Department of Homeland Security’s ICE and the Department of Defense’s DCIS. The prosecution is being handled by Assistant U.S. Attorney Gregory A. Bordenkircher of the U.S. Attorney’s Office for the Southern District of Alabama, with assistance from the Counterespionage Section of the Justice Department’s National Security Division.
Financial Fraud Enforcement Task Force Announces Results of Broadest Mortgage Fraud Sweep in HistoryRead the Press Release
Attorney General Eric Holder, FBI Director Robert Mueller, Housing and Urban Development Inspector General (HUD-OIG) Kenneth M. Donohue, and other members of the Financial Fraud Enforcement Task Force today announced the results of a nationwide takedown, Operation Stolen Dreams, which targeted mortgage fraudsters throughout the country and is the largest collective enforcement effort ever brought to bear in confronting mortgage fraud.
The sweep was organized by President Obama’s interagency Financial Fraud Enforcement Task Force, which was established to lead an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. Starting on March 1, to date Operation Stolen Dreams has involved 1,215 criminal defendants nationwide, including 485 arrests, who are allegedly responsible for more than $2.3 billion in losses. Additionally, to date the operation has resulted in 191 civil enforcement actions which have resulted in the recovery of more than $147 million.
"Mortgage fraud ruins lives, destroys families and devastates whole communities, so attacking the problem from every possible direction is vital," said Attorney General Holder. "We will use every tool available to investigate, prosecute and prevent mortgage fraud, and we will not rest until anyone preying on vulnerable American homeowners is brought to justice."
"From home buyers to lenders, mortgage fraud has had a resounding impact on the nation’s economy," said FBI Director Robert S. Mueller III. "Those who prey on the housing market should know that hundreds of FBI agents on task forces and their law enforcement partners are tracking down your schemes and you will be brought to justice."
"The last several years have seen enormous and damaging developments in the mortgage and housing markets, and the government has stepped in to bolster unstable marketplaces and devastated communities," said Inspector General Donohue. "The HUD-OIG, in partnership with other agencies, is deeply committed to ensuring that scarce resources are not diverted to those who seek to enrich themselves at the expense of those who so desperately need assistance today."
Unlike previous mortgage fraud sweeps, Operation Stolen Dreams focused not only on federal criminal cases, but also on civil enforcement, recovering money for victims and increasing cooperation with state and local partners. The operation was conducted in conjunction with the Department of Justice – including the FBI, U.S. Attorneys Offices, the U.S. Trustee Program and other components – as well as the Department of Housing and Urban Development, the Department of the Treasury, the Federal Trade Commission, the Internal Revenue Service, the U.S. Postal Inspection Service, the U.S. Secret Service, the National Association of Attorneys General and the National District Attorneys Association.
The President’s Financial Fraud Enforcement Task Force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit StopFraud.gov.
Faisal Shahzad Indicted for Attempted Car Bombing in Times SquareRead the Press Release
A federal grand jury in the Southern District of New York has returned a 10-count indictment charging Faisal Shahzad for allegedly driving a car bomb into Times Square on the evening of May 1, 2010, the Justice Department announced today.
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.
The case has been assigned to U.S. District Judge Miriam Goldman Cedarbaum of the Southern District of New York. Shahzad is expected to be arraigned by Judge Cedarbaum on June 21, 2010, at noon.
"The facts alleged in this indictment show that the Pakistani Taliban facilitated Faisal Shahzad’s attempted attack on American soil," said Attorney General Eric Holder. "Our nation averted serious loss of life in this attempted bombing, but it is a reminder that we face an evolving threat that we must continue to fight with every tool available to the government."
According to the indictment filed today and the criminal complaint:
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. 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 today charges Shahzad with 10 offenses which carry the following potential penalties:
- Count 1 – Attempted use of a weapon of mass destruction, life in prison.
- Count 2 – Conspiracy to use a weapon of mass destruction, life in prison.
- Count 3 – Possession of a firearm during and in relation to a conspiracy to use a weapon of mass destruction, life in prison.*
- Count 4 – Attempted act of terrorism transcending national boundaries, life in prison.
- Count 5 – Conspiracy to commit an act of terrorism transcending national boundaries, life in prison.
- Count 6 – Attempted use of a destructive device during and in relation to a conspiracy to commit an act of terrorism transcending national boundaries, life in prison.*
- Count 7 – Transportation of an explosive, 10 years in prison.
- Count 8 – Conspiracy to transport an explosive, 10 years in prison.
- Count 9 – Attempted destruction of property by fire and explosive, 20 years in prison.*
- Count 10 – Conspiracy to destroy property by fire and explosive, 20 years in prison.*
* Counts three, nine and ten each carry a mandatory minimum penalty of five years in prison. Count six carries a mandatory minimum penalty of 30 years in prison. If there are convictions for counts three and six, a sentence of life in prison is mandatory.
U.S. Attorney Preet Bharara stated: "Today’s 10-count indictment returned in the Southern District of New York charges Faisal Shahzad with conspiring with the Pakistani Taliban to wreak death and destruction in Times Square. This office will continue to work in lock-step with our partners at the FBI and the NYPD to protect New York City from the threat posed by terrorists and those who would support them."
FBI New York Acting Assistant Director-in-Charge George Venizelos stated: "Today’s indictment of Faisal Shahzad is a major step in this important investigation. Shahzad was allegedly ready to commit a horrendous crime in the heart of New York. The FBI's Joint Terrorism Task Force (JTTF) quickly went into high gear to identify and arrest Shahzad. We will not let our guard down as we work to protect our city, our citizens, our visitors and our country."
"Today’s indictment is a stark reminder that New York remains a terrorist target and that we must be vigilant to protect the City," said Raymond W. Kelly, the Police Commissioner for the City of New York
The indictment was the result of the investigative efforts of the FBI’s 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.
The charges and allegations contained in the indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Colombian Trafficker with Links to Mexican and Colombian Cartels Extradited from Mexico to the U.S.Read the Press Release
Pedro Antonio Bermudez, also known as “El Arquitecto,” was arraigned Wednesday in U.S. District Court in Brooklyn, N.Y., following his extradition on June 15, 2010, from Mexico to the United States on charges of participating in an international drug trafficking conspiracy, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Loretta E. Lynch of the Eastern District of New York and Drug Enforcement Administration (DEA) Acting Administrator Michele M. Leonhart.
At his arraignment yesterday, Bermudez was ordered detained by U.S. Magistrate Judge Joan M. Azrack in the Eastern District of New York. Bermudez was arrested in Mexico City by Mexican law enforcement officials on Oct. 2, 2008, and was in custody in Mexico since the arrest and prior to his extradition to the United States.
The charges against Bermudez are contained in two separate indictments filed in the Eastern District of New York and the District of Columbia. The indictment filed in the Eastern District of New York charges Bermudez with working in Mexico as the intermediary for shipments of large quantities of cocaine sent by Luis Hernando Gomez Bustamante, one of the leaders of the Norte Valle Cartel, to various Mexican cartel leaders. As alleged in the indictment, from 1990 through 2007, Bustamante and his organization sent multi-ton shipments of cocaine from Colombia to Mexico by speed boats, fishing vessels, and other maritime conveyances and airplanes, for ultimate delivery to the United States. Between 1990 and the present, the Norte del Valle Cartel allegedly exported more than 1.2 million pounds - or 500 metric tons - of cocaine, worth in excess of $10 billion, from Colombia to the United States, the vast majority of which moved through Mexico. Bustamante pleaded guilty in the Eastern District of New York on June 26, 2008, and is awaiting sentence.
When the cocaine arrived in Mexico, Bermudez was allegedly responsible for insuring its delivery to the Mexican cartels, including the Juarez Cartel, headed by Vicente Carrillo Fuentes. Carrillo is currently a fugitive and is charged in the Eastern District of New York with drug trafficking. The Juarez Cartel, which operates in the Juarez-El Paso corridor, is one of the primary drug smuggling routes along the United States-Mexico border. The DEA estimates that approximately 70% of the cocaine which enters the United States through Mexico is transported across the southwest border. The State Department, under its Narcotics Rewards Program, has offered a reward of up to $5 million for information leading to the capture of Carrillo.
The indictment filed in the U.S. District Court for the District of Columbia charges Bermudez and co-defendant Andres Rodriguez-Fernandez with conspiring to manufacture and distribute five kilograms or more of cocaine knowing and intending that the cocaine will be imported into the United States between on or about 2001 and Sept. 25, 2008. The indictment also includes two substantive counts, charging the defendants with manufacturing and distributing five kilograms or more of cocaine knowing and intending that the cocaine will be imported into the United States on two separate occasions, March 31 and Sept. 24, 2007. The indictment also contains a forfeiture allegation.
On May 27, 2009, Bermudez was designated by the U.S. Department of Treasury’s Office of Foreign Assets Control (OFAC) as a Specially Designated Narcotics Trafficker. The designation freezes Bermudez’s assets in the United States and prohibits him from engaging in any financial transactions with any U.S. company or individual. Earlier this month, the government of Colombia seized 194 assets belonging to Bermudez, valued at approximately $76 million, including apartment buildings, malls, aircraft and ranches.
“The Department of Justice remains committed to working with our counterparts in Mexico to combat drug trafficking enterprises,” said Assistant Attorney General Breuer. “This extradition is an example of how our partnership with Mexican law enforcement can help us bring dangerous criminals to justice.”
“The extradition announced today is part of an ongoing international effort to stem the flow of illegal drugs across the U.S./Mexico border and into our communities,” stated U.S. Attorney Lynch. “The investigation and prosecution of drug traffickers is a priority of the Department of Justice and this Office. We will apply all available resources to win this battle.”
“Today’s extradition represents another significant success in severing the relationship between powerful Colombian traffickers and the violent Mexican Cartels,” said DEA Acting Administrator Michele M. Leonhart. “Thanks to the relentless efforts of the U.S. law enforcement team and the critical assistance of our counterparts in Mexico and Colombia, “El Arquitecto” is no longer a powerful intermediary for massive shipments of cocaine destined for our streets.”
“Today’s extradition is the result of extraordinary teamwork across international boundaries and underscores ICE’s commitment to identify international drug traffickers and put them out of business,” said James T. Hayes Jr., Special Agent in Charge of the U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations in New York.
The charges contained in the indictments are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, Bermudez faces on both indictments a mandatory minimum sentence of 10 years and a maximum sentence of life.
The governments of Mexico and Colombia provided significant assistance and support during the investigation, arrest and extradition of Bermudez. The Department of Justice’s Office of International Affairs worked with their counterparts in Mexico and Colombia to effect the extradition.
These cases are being prosecuted by Assistant U.S. Attorneys Bonnie S. Klapper and Walter M. Norkin in the Eastern District of New York and Trial Attorney Robert Raymond of the Criminal Division’s Narcotic and Dangerous Drug Section. These cases were investigated by ICE and DEA.
Wednesday 16 June 2010
Springfield, Massachusetts, Man Pleads Guilty to Church ArsonRead the Press Release
WASHINGTON – The Justice Department today announced that Benjamin Haskell,23, of Springfield, Mass., pleaded guilty to a superseding information charging him with two 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 information charged that in the early morning hours of Nov. 5, 2008, within hours of President Obama being elected, Haskelland his co-conspiratorsagreed to burn, and succeeded in burning, the Macedonia Church of God in Christ’s newly constructed building where religious services were to be held for its predominantly African-American congregation. The building was 75% 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.
Haskell 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. Haskell 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 in 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 among our nation’s most cherished rights," 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."
U.S. Attorney Carmen Ortiz of the District of Massachusetts said, "Today's conviction should send a strong message that hate crimes will be vigorously investigated and prosecuted in Massachusetts. When I announced my civil rights initiative earlier this month, I made it clear that the U.S. Attorney’s Office will be reinvigorating it's efforts in this area, and making it one our top priorities."
U.S. District Judge Michael A. Ponsor of Springfield scheduled sentencing for Sept. 29, 2010. By the terms of the plea agreement, Haskellfaces mandatory sentence of 108 months in prison to be followed by three years of supervised release and a $7,500 fine.
The case was investigated by 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 U.S. Attorneys Paul H. Smyth and Kevin O’Regan of Ortiz’s Springfield Office and Nicole Lee Ndumele, Trial Attorney in the Civil Rights Division.
Former Chairman of Taylor, Bean & Whitaker Indicted for His Role in a More Than $1.9 Billion Fraud Scheme That Contributed to the Failure of Colonial BankRead the Press Release
Lee Bentley Farkas, the former chairman of a private mortgage lending company, Taylor, Bean & Whitaker (TBW), was arrested last night in Ocala, Fla., and charged in a 16-count indictment for his alleged role in a more than $1.9 billion fraud scheme that contributed to the failures of Colonial Bank, one of the 50 largest banks in the United States in 2009, and TBW, one of the largest privately held mortgage lending companies in the United States in 2009.
The charges were announced today by members of the Financial Fraud Enforcement Task Force, including Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride for the Eastern District of Virginia; Special Inspector General Neil Barofsky for the Troubled Asset Relief Program (SIGTARP); Assistant Director in Charge Shawn Henry of the FBI’s Washington Field Office; Kenneth M. Donohue, Inspector General of the Department of Housing and Urban Development (HUD OIG); Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC OIG); and Victor F. O. Song, Chief of the Internal Revenue Service (IRS) Criminal Investigation.
An indictment unsealed today in U.S. District Court for the Eastern District of Virginia charges Farkas, of Ocala, Fla., with one count of conspiracy to commit bank, wire and securities fraud; six counts of bank fraud; six counts of wire fraud; and three counts of securities fraud. The indictment also seeks approximately $22 million in forfeiture from Farkas.
According to the indictment and a motion seeking Farkas’s detention filed in U.S. District Court for the Middle District of Florida, Farkas and his co-conspirators allegedly engaged in a scheme to misappropriate more than $400 million from Colonial Bank’s Mortgage Warehouse Lending Division in Orlando, Fla., and approximately $1.5 billion from Ocala Funding, a mortgage lending facility controlled by TBW. Farkas and his co-conspirators allegedly misappropriated this money to cover TBW’s operating losses. According to the government motion seeking Farkas’s detention, the fraud scheme contributed to the failures of Colonial Bank and TBW. The indictment further alleges that Farkas and his co-conspirators committed wire and securities fraud in connection with their attempt to convince the United States government to provide Colonial Bank with approximately $553 million in TARP funds.
"This alleged fraud scheme is an example of the damaging and destabilizing impact financial crimes can have on our nation’s financial institutions. Individuals and companies that violate the law in a reckless pursuit of profits must be held accountable for their crimes," said Assistant Attorney General Breuer. "The Department of Justice and our partners in the Financial Fraud Enforcement Task Force will continue to act vigilantly, quickly and aggressively in order to ensure that boardroom and back office fraudsters alike are brought to justice."
"Taxpayers have paid a hefty price for the crimes related to the current financial crisis, and investors in Colonial and Ocala Funding were among those directly affected by this conspiracy," said U.S. Attorney MacBride. "The indictment we are announcing today is a great example of the productive partnership the Eastern District of Virginia has with the Criminal Division’s Fraud Section and of our intention to meet the Attorney General’s call to aggressively pursue financial fraud cases of national significance."
"Today’s indictment describes an unprecedented scheme by executives at two large financial institutions to steal more than $550 million from the American taxpayer. Due to the efforts of SIGTARP agents, our law enforcement partners, and the SEC, this scheme was stopped dead in its tracks, taxpayers were protected, and Lee Farkas has joined the growing list of financial industry executives who have been charged with TARP-related frauds.," said Special Inspector General Barofsky. "Today’s charges should send a powerful message to those who try to profit criminally from our national economic crisis that SIGTARP and its partners will work tirelessly to protect the American taxpayer, and we will be relentless in our pursuit to bring such criminals to justice."
Court documents allege that the scheme began in 2002, when Farkas and his co-conspirators ran overdrafts in TBW bank accounts at Colonial Bank in order to cover TBW’s cash shortfalls. Farkas and his co-conspirators at TBW and Colonial Bank allegedly transferred money between accounts at Colonial Bank to hide the overdrafts. After the overdrafts grew to tens of millions of dollars, Farkas and his co-conspirators allegedly covered up the overdrafts and operating losses by causing Colonial Bank to purchase from TBW more than $400 million in what amounted to fake mortgage loan assets, including loans that TBW had already sold to other investors and fake interests in pools of loans. Farkas and his co-conspirators allegedly caused Colonial Bank to hold these purported assets on its books at their face value when in fact the mortgage loan assets were worthless.
Court documents also allege that Farkas and co-conspirators caused TBW to hide impaired-value mortgage loans that it was unable to sell. Through a series of sham transactions, the conspirators allegedly hid impaired-value loans on Colonial Bank’s books for a period of years in some cases.
According to court documents, Farkas and his co-conspirators at TBW also misappropriated hundreds of millions of dollars from Ocala Funding. Ocala Funding sold asset-backed commercial paper to financial institution investors, including Deutsche Bank and BNP Paribas Bank. Ocala Funding, in turn, was required to maintain collateral in the form of cash and/or mortgage loans at least equal to the value of outstanding commercial paper.
The court documents allege that Farkas and his co-conspirators diverted cash from Ocala Funding to TBW to cover its operating losses, and as a result, created significant deficits in the amount of collateral Ocala Funding possessed to back the outstanding commercial paper. To cover up the diversions, the conspirators allegedly sent false information to Deutsche Bank, BNP Paribas Bank and other financial institution investors to lead them to falsely believe that they had sufficient collateral backing the commercial paper they had purchased. According to court documents, in or about August 2009, Deutsche Bank and BNP Paribas Bank held approximately $1.68 billion in Ocala Funding commercial paper that had only approximately $150 million in cash and mortgage loans collateralizing it. When TBW failed in August 2009, the banks were unable to redeem their commercial paper for full value.
According to the indictment, in the fall of 2008, Colonial Bank’s holding company, Colonial BancGroup Inc., applied for $570 million in taxpayer funding through the Capital Purchase Program (CPP), a sub-program of the U.S. Treasury Department’s Troubled Asset Relief Program (TARP). In connection with the application, Colonial BancGroup submitted financial data and filings that included materially false information related to mortgage loan and securities assets held by Colonial Bank as a result of the fraudulent scheme described above.
According to the indictment, Treasury conditionally approved Colonial BancGroup’s TARP application contingent on the bank raising $300 million in private capital. Farkas and his co-conspirators allegedly led an effort to raise the $300 million. On or about March 31, 2009, the conspirators falsely informed Colonial BancGroup that they had identified sufficient investors to satisfy the TARP contingency. Farkas and his co-conspirators allegedly caused $30 million to be placed in escrow, falsely claiming it represented payments by investors, when in fact Farkas and another co-conspirator had diverted $25 million of the escrow amount from Ocala Funding. The indictment alleges that Farkas and his co-conspirators committed wire and securities fraud in connection with these misrepresentations. Ultimately, Colonial BancGroup did not receive any TARP funds.
The indictment also alleges that Farkas and his co-conspirators caused Colonial BancGroup to file materially false financial data with the Securities and Exchange Commission (SEC) regarding its assets in annual reports contained in Forms 10-K and quarterly filings contained in Forms 10-Q. Colonial BancGroup’s materially false financial data allegedly included overstated assets for mortgage loans that had little to no value that Farkas and his co-conspirators caused Colonial Bank to purchase. The indictment also alleges that Farkas and his co-conspirators caused TBW to submit materially false financial data to the Government National Mortgage Association (Ginnie Mae) in order to extend TBW’s authority to issue Ginnie Mae mortgage-backed securities.
According to court documents, Farkas also personally misappropriated over $20 million from TBW and Colonial Bank.
In August 2009, the Alabama State Banking Department, Colonial Bank’s regulator, seized the bank and appointed the FDIC as receiver. Colonial BancGroup also filed for bankruptcy in August 2009.
Farkas faces a maximum prison sentence of 30 years for the conspiracy charge and for each count of bank fraud. The maximum prison sentence for each count of wire fraud related to TARP is 20 years and for each count of wire fraud affecting a financial institution is 30 years. Farkas also faces a maximum sentence of 25 years in prison for each securities fraud count.
An indictment is merely a charge, and the defendant is presumed innocent until proven guilty.
In a related action, the U.S. Securities and Exchange Commission (SEC) has filed an enforcement action against Farkas in the Eastern District of Virginia.
The case is being prosecuted by Deputy Chief Patrick Stokes and Trial Attorneys Brigham Cannon, Charles Reed and Robert Zink of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Charles Connolly and Paul Nathanson of the Eastern District of Virginia. This case was investigated by the FBI’s Washington Field Office, SIGTARP, FDIC OIG, HUD OIG, and the IRS Criminal Investigation. The Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury also provided support in the investigation.
This prosecution is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
Indictment
The Government's Motion for Pre-Trial Detention
Tuesday 15 June 2010
United States Files Counterclaims and Crossclaims<br /> in Small Business Administration Loan Fraud CaseRead the Press Release
WASHINGTON – The United States filed False Claims Act counterclaims against Saehan Bank and crossclaims against Steve Yong Kim and Young Soon Kim in the Northern District of Oklahoma, the Justice Department announced today. The United States also filed a counterclaim and crossclaim under the Financial Institutions Reform, Recovery and Enforcement Act. The government alleges that Saehan Bank and the Kims made false statements in connection with the application process for a Small Business Administration (SBA) loan.
The allegations relate to the SBA’s 504 loan program, which offers small businesses long-term, fixed-rate financing to acquire major fixed assets, such as buildings or machinery, for expansion or modernization. Before the 504 loan closing, the SBA requires certain certifications regarding the borrower’s financial condition and ability to repay the loan. The government alleges that Saehan Bank and the Kims falsely certified that the Kims had experienced no adverse change in their financial circumstances, even though the bank and the Kims knew that the Kims were facing serious financial difficulties. The SBA approved the Kims’ $1.7 million 504 loan, but the government alleges that the Kims never made any payments on the loan.
"The SBA offers valuable assistance to small businesses and contributes to our nation’s economic development, and its programs must not be abused," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "The Justice Department will take action against those who betray the SBA’s trust and waste taxpayer dollars."
"Filing these claims sends a strong message that the government will not tolerate fraud, waste, or abuse of SBA programs," said SBA Inspector General Peggy E. Gustafson.
The case is a collaborative effort among several federal agencies, including the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of Oklahoma, and the SBA.
Two U.S. Citizens Arrested in Costa Rica in Connection<br /> with Business Opportunity Fraud VenturesRead the Press Release
Two U.S. citizens charged in connection with the operation of a series of fraudulent business opportunities were arrested today in Costa Rica following their indictment by a federal grand jury in Miami on March 9, the Justice Department and the U.S. Postal Inspection Service announced today. Silvio Carrano and Patrick Williams were arrested based on charges that they and their co-conspirators purported to sell vending machine, beverage and greeting card business opportunities, including assistance in establishing, maintaining and operating such businesses.
A third defendant, Donald Williams, was arrested in Houston on May 7, based on the same charges. Authorities are continuing to search for the fourth defendant, Gregory Britt Fleming, also named in the indictment. The charges in the indictment form part of the government’s continued nationwide crackdown on business opportunity fraud.
Beginning in June 2004, Carrano, Patrick Williams, Donald Williams, Fleming and their coconspirators are alleged to have fraudulently induced purchasers in the United States to buy business opportunities in Apex Management Group Inc., USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-U Inc., Premier Cards Inc., The Coffee Man Inc. and Nation West Distribution Company. According to the indictment, the business opportunities the defendants sold cost thousands of dollars each, and most purchasers paid at least $10,000. Each company operated for several months, and after one company closed, the next opened. The various companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere.
The indictment alleges that the defendants, using aliases, participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, Carrano, Patrick Williams, Donald Williams and Fleming operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities, the indictment alleges.
According to the indictment, the companies made numerous false statements to potential purchasers of the business opportunities. Among the misrepresentations alleged in the indictment are that purchasers would likely earn substantial profits; that prior purchasers of the business opportunities were earning substantial profits; that purchasers would sell a guaranteed minimum amount of merchandise, such as greeting cards and beverages; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands. Potential purchasers also were falsely told that the profits of the companies were based in part on the profits of the business opportunity purchasers, thus creating the false impression that the companies had a stake in the purchasers’ success and in finding good locations.
The indictment alleges that the companies employed various types of sales representatives, including fronters, closers and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to close deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities.
The indictment alleges that Carrano, aka Bob Orr, John Kirby, Paul Bently and Dave Jakovich, was a fronter and reference for USA Beverages, a fronter and reference for Twin Peaks, a fronter and reference for Cards-R-Us, a reference for Premier Cards, and a reference for Coffee Man. He was also listed on a corporate document as the treasurer of USA Beverages.
The indictment alleges that Patrick Williams, aka Bill Gardner, Peter Burns, David Price and Matt Skaggs, was a fronter for Apex, a locator and reference for USA Beverages, a fronter and reference for Twin Peaks, a fronter and reference for Cards-R-Us, a reference for Premier Cards, a reference for Coffee Man, and a fronter and reference for Nation West.
The indictment alleges that Donald Williams,using assumed names, was a fronter for USA Beverages, a fronter and reference Twin Peaks, a fronter and reference for Cards-R-Us, and a fronter and reference for Premier Cards.
The indictment alleges that Fleming, using assumed names, was a fronter for USA Beverages, a fronter and reference for Twin Peaks, and a fronter and reference for Nation West.
"Business opportunity fraud is serious. It imposes significant financial hardship on innocent, hardworking victims," said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. "The Department of Justice will continue its push to prosecute those who defraud Americans to make a quick buck."
Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. Apex was registered as a Florida corporation and rented office space in Ft. Lauderdale, Fla., while USA Beverages was registered as a Florida and New Mexico corporation and rented office space in Las Cruces, N.M. Twin Peaks was registered as a Florida and Colorado corporation and rented office space in Fort Collins, Colo., and Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nev. Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia, and The Coffee Man was registered as a Colorado corporation and rented office space in Denver. Nation West was registered as a Colorado corporation and also rented office space in Denver.
All four defendants were charged with conspiracy to commit mail and wire fraud, and with committing their offenses via telemarketing. In addition, Carrano was charged with 10 counts of mail fraud and three counts of wire fraud; Patrick Williams was charged with 10 counts of mail fraud and three counts of wire fraud; Donald Williams was charged with eight counts of mail fraud and three counts of wire fraud; and Fleming was charged with six counts of mail fraud and one count of wire fraud.
If convicted, Carrano, Patrick Williams, Donald Williams and Fleming face a maximum statutory term of 25 years in prison, a possible fine and mandatory restitution on the conspiracy count. They also face a maximum statutory term of imprisonment of 25 years on each of the mail and wire fraud counts, a possible fine and mandatory restitution.
"This international and domestic investigation illuminates the Postal Inspection Service’s resolve to protect the American public from business opportunity scams," said Henry Gutierrez, U. S. Postal Inspector in Charge in Miami.
The United States intends to seek the extradition of Carrano and Patrick Williams from Costa Rica.
Anyone with information regarding the whereabouts of Gregory Britt Fleming should contact the U.S. Postal Inspection Service in Miami at 954-436-7200.
Assistant Attorney General West commended the investigative efforts of the Postal Inspection Service as well as law enforcement authorities in Costa Rica and the Department of State's Diplomatic Security Service, both of which provided significant assistance in the location and apprehension of Carrano and Patrick Williams. The case is being prosecuted by trial attorneys Jeffrey Steger and Alan Phelps with the U.S. Department of Justice Office of Consumer Litigation.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
Justice Department Resolves Housing Discrimination Lawsuit with the City of Columbus, IndianaRead the Press Release
WASHINGTON – The Justice Department announced today that the city of Columbus, Ind., has agreed to pay $24,000 to settle a lawsuit alleging that the city had discriminated against a group home for persons recovering from drug and alcohol addiction, in violation of the federal Fair Housing Act. The city will also adopt new anti-discrimination policies and procedures.
"Experience has shown that people recovering from addictions to alcohol and drugs can benefit when given the opportunity to live in supportive residences. The Fair Housing Act prohibits local governments from using zoning codes to deny them this opportunity," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Justice Department will continue to vigorously protect the civil rights of all persons with disabilities across the country."
"Enforcement of the Fair Housing Act in this manner protects the civil rights of persons with disabilities," said Timothy M. Morrison, U.S. Attorney for the Southern District of Indiana. "These actions encourage local governmental units to end discriminatory policies."
"Recovery programs help the individual and the community. This settlement enables all parties to move forward based on fact, not stereotype," stated HUD Assistant Secretary for Fair Housing John Trasviña.
Under the terms of the proposed consent decree, which must still be approved by Judge Larry J. McKinney of the U.S. District Court for the Southern District of Indiana in Indianapolis, the city of Columbus will:
- Pay $18,000 to Addictions Counseling Treatment Service Inc. (ACTS), an Indiana corporation that in 2007 sought approval to operate a group home known as Bethesda House for up to 11 persons recovering from drug and alcohol addiction at 423/425 Lafayette Ave. in Columbus;
- Pay $6,000 to the United States as a civil penalty;
- Grant Bethesda House permission to operate the home with 11 residents in the event that it submits a new application within the three year term of the consent decree;
- Adopt and implement a reasonable accommodation policy to address accommodation requests from the city’s zoning rules and practices; and
- Obtain training in the Fair Housing Act for the staff of the city’s Planning Department and Board of Zoning Appeals.
If approved, the settlement will resolve a lawsuit filed by the Justice Department on Sept. 30, 2009, that alleged that the city violated the Fair Housing Act when, on July 25, 2007, it denied a request from ACTS for a land use variance to operate Bethesda House as a group home for up to 11 persons recovering from drug or alcohol addiction. ACTS filed a complaint with the U.S. Department of Housing and Urban Development (HUD), which referred the matter to the Justice Department.
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.
Health Alliance of Greater Cincinnati, Two Ohio Hospitals, and Physician Group to Pay $2.6 Million to Resolve Fraud AllegationsRead the Press Release
WASHINGTON – The Health Alliance of Greater Cincinnati, two of its member hospitals (The Fort Hamilton Hospital and The University Hospital), and University Internal Medicine Associates Inc. have agreed to pay the United States $2.6 million to settle claims that they violated the Anti-Kickback Statute and the False Claims Act by engaging in a kickback-for-referral scheme, the Justice Department announced today.
The Fort Hamilton Hospital is a 310-bed hospital located in Hamilton, Ohio. The alleged scheme involved the hospital’s desire to expand the scope of its cardiology services to include certain interventional cardiology procedures. Under state law, The Fort Hamilton Hospital could only perform the interventional cardiology procedures if it participated in a particular clinical trial involving those procedures.
The government asserted that University Internal Medicine Associates, a physician group based at The University Hospital in Cincinnati, offered to provide the interventional cardiology coverage that The Fort Hamilton Hospital needed for the clinical trial, but only if the hospital agreed to refer cardiology patients and procedures to the physician group on a preferential basis. The government contended that the preferential referral arrangements sometimes resulted in patients being transferred to The University Hospital, or being seen by cardiologists with University Internal Medicine Associates, rather than the hospital or cardiologist of their choosing.
The government asserted that the arrangements violated the federal Anti-Kickback Statute, which prohibits a hospital from soliciting or receiving, or a physician from offering or paying, anything of value in return for patient referrals. The United States also alleged that the claims The Fort Hamilton Hospital, The University Hospital, and University Internal Medicine Associates submitted to Medicare as a result of this illegal kickback scheme violated the False Claims Act.
"Hospitals and other health care providers must not allow their financial interests to unduly influence medical decision-making," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We are committed to protecting the integrity of our federal health care programs by ensuring that financial incentives do not improperly interfere with patient choice and the exercise of sound medical judgment."
The allegations resolved by the settlement were initiated by a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, which allow private parties to file actions on behalf of the United States and share in any recovery. The whistleblower in this suit, Dr. Deborah Hauger, a cardiologist who formerly worked at The Fort Hamilton Hospital, will receive $468,000.
"The False Claims Act is a valuable tool in identifying and deterring fraud and abuse in government health care programs," said William E. Hunt, acting U.S. Attorney for this case. "The qui tam provisions of the Act are especially important in a case such as this, where the fraud turned on private referral arrangements known only to insiders."
Assistant Attorney General West noted that this settlement was the result of a coordinated effort among the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Southern District of Ohio, and the Office of the Inspector General of the U.S. Department of Health and Human Services.
This settlement is part of the government’s emphasis on combating health care fraud. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover approximately $3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are nearly $4 billion.
Department of Justice Observes June 15 as World Elder Abuse Awareness DayRead the Press Release
For the first time in its history, the Department of Justice today observed June 15 as World Elder Abuse Awareness Day to raise awareness about the vulnerability of the elder population to abuse and violence. World Elder Abuse Day, first celebrated in 2005, is organized by the International Network for the Prevention of Elder Abuse. Assistant Attorney General for the Civil Division Tony West and Office on Violence Against Women (OVW) Director Susan B. Carbon participated today in events in Anaheim, Calif., and Washington, D.C. The events are part of the Justice Department’s year-long commemoration of the 15th anniversary of the Violence Against Women Act (VAWA).
The U.S. Bureau of the Census predicts that by 2030, the population over age 65 will double to more than 70 million people and older people will make up almost 20 percent of the population. According to the best available estimates, between 1 and 2 million Americans age 65 or older have experienced abuse; and for each reported case about five more cases go unreported. Unfortunately, as the number of older individuals increases, so does the number of potential victims of elder abuse.
The Department of Justice funds programs throughout the country that provide communities with training and resources to combat elder abuse and serve survivors in later life. OVW has provided more than $25 million in funding to 75 communities since 2002 through its Abuse in Later Life Program. Also since 2002, the Office of Justice Programs has awarded more than $6.7 million to 20 programs.
This morning, OVW Director Carbon and Counsel to the Associate Attorney General Mala Adiga joined Anaheim Chief of Police John Welter; the Anaheim Family Justice Center; the University of California, Irvine’s Elder Abuse Forensic Center; the National Clearinghouse on Abuse in Later Life (NCALL); Human Options (the local victim service provider); and the Archstone Foundation for a discussion about promising practices and community collaborations towards working with elder abuse survivors. NCALL also announced the release of the film, Walking in Our Shoes, an OVW-funded national training video produced through a grant to the National District Attorney’s Association on elder abuse. The film features an introduction from The View’s Barbara Walters, a member of the Justice Department's “Join the List” campaign, a group of more than 100 celebrities including actors, musicians and athletes, who have lent their names to the department’s effort to raise awareness.
In Washington, D.C., the Departments of Justice and Health and Human Services (HHS) sponsored a World Elder Abuse Awareness Day event featuring Assistant Attorney General West, Deputy Assistant Attorney General for the Office of Justice Programs Mary Lou Leary and HHS Principal Deputy Assistant Secretary on Aging Cindy R. Padilla. Kathleen Quinn from the National Adult Protection Services Association, King County (Washington State) Prosecutor Page Ulrey and Bob Blancato from the Elder Justice Coalition also participated.
On Sept. 14, 2009, the Justice Department marked the 15th anniversary of President Bill Clinton’s signing of VAWA and the creation of OVW. The department has initiated a year-long effort to raise public awareness, build stronger coalitions among federal, state, local and tribal communities, and redouble efforts to end domestic and dating violence, sexual assault and stalking, for men, women and children across the country.
Court Shuts Down South Carolina Tax BusinessRead the Press Release
A federal court in Columbia, S.C., has permanently barred Winston Able of Blythewood, S.C., from preparing federal income tax returns for others, the Justice Department announced today. The court found that Able prepared approximately 200 tax returns that contained fraudulent claims for tax refunds totaling over $13 million, based on fictitious claims of tax withholding.
Able’s tax fraud scheme is known as the "redemption" or "OID redemption" scheme. It is based on a frivolous theory that the government commits a fraud when it attempts to collect tax debts and that this purported fraud allows people to "charge back" debts that the government purportedly owes to them, to eliminate their liability to the government.
Customers who participate in the redemption scheme can be subject to sizeable penalties for filing returns with excessive false refund claims—including a penalty equal to 20 percent of the amount improperly claimed. The penalty applies even if, as usually happens, the Internal Revenue Service (IRS) detects the false claim and blocks a tax refund.
Federal courts in California and Georgia have recently enjoined other promoters of the scheme.
John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division, thanked Justice Department trial attorney John R. Monroe, who handled the case, and Shauna Henline of the IRS’ Small Business/Self-Employed Division, who conducted the investigation.
Monday 14 June 2010
Justice Department to Monitor Election in Port Chester, New YorkRead the Press Release
The Justice Department today announced that it will monitor the municipal election on June 15, 2010, in the village of Port Chester, N.Y., to ensure compliance with 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 to provide language assistance during the election process. Port Chester is required to provide assistance in Spanish.
In January 2008, a federal district court found that the village’s at-large method of electing the village board of trustees violated the Voting Rights Act and prevented Hispanic voters from participating equally in the electoral process, resolving a lawsuit filed by the department’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of New York.
In November 2009, the court ordered that a cumulative voting system be adopted to remedy this violation, and in December 2009, the department and the village entered into a consent decree, which was approved by the court. The consent decree includes an extensive voter education plan with education and training provisions to ensure that the voters in Port Chester are fully familiar with cumulative voting. The decree also requires that bilingual poll officials will be present at every polling place in Port Chester, and that all election-related materials must be translated into Spanish. The June 2010 election will be the first village election since the entry of the consent decree.
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 at itself or by a federal court order. Federal observers will be assigned to monitor polling place activities for the election in Port Chester as authorized by the December 2009 court order. The observers will watch and record activities during voting hours at polling locations in this jurisdiction. Justice Department attorneys 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 the department website
www.usdoj.gov/crt/voting/index.htm for more information about the Voting Rights Act and other federal voting laws.
Justice Department Settles Lawsuit Alleging Racial Discrimination by the Township of Green Brook, New JerseyRead the Press Release
WASHINGTON- The Justice Department today announced that it has reached a consent decree with the township of Green Brook, N.J., that, if approved by the U.S. District Court for the District of New Jersey, will resolve the department’s lawsuit against Green Brook alleging racial discrimination in employment in violation of Title VII of the Civil Rights Act of 1964, as amended.
Title VII prohibits discrimination in employment on the basis of race, sex, national origin or religion, and prohibits retaliation against employees for opposing employment practices that they reasonably believe are discriminatory under Title VII, or for filing a complaint of employment discrimination.
The department’s complaint, filed today along with the consent decree, alleges that the township discriminated against Anthony Rivera, an African-American road worker in Green Brook’s Department of Public Works. According to the complaint, Rivera was regularly subjected to racial harassment in the workplace by his supervisor, including racially offensive slurs, jokes and remarks, from 2006 through 2009. The complaint further alleges the township unlawfully retaliated against Rivera after he complained to Green Brook management in October 2007 about his supervisor’s racial harassment.
Under the terms of the decree, the township must pay Rivera $35,000 in compensatory damages. The decree prohibits the township from discriminating against any employee or job applicant on the basis of race, and from engaging in unlawful retaliation. The decree also requires that Green Brook provide training on its anti-discrimination and anti-harassment policies to all of its employees and managers.
"Our nation’s laws ensure that every individual has the right to work in an environment free from discrimination, harassment and retaliation," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The department commends Green Brook for working cooperatively with us to resolve this matter without the need for contested litigation."
The department’s lawsuit was based on a charge of discrimination filed by Rivera with the Equal Employment Opportunity Commission.
The enforcement of Title VII is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its websites at www.justice.gov/crt/ and www.justice.gov/crt/emp/.
Friday 11 June 2010
Three Baltimore City Police Department Officers Convicted in Civil Rights CaseRead the Press Release
WASHINGTON– A federal jury yesterday convicted a Baltimore Police Department (BPD) officer, Gregory Mussmacher, on civil rights and obstruction charges related to his physical abuse in 2004 of a then-17-year-old arrestee whom Mussmacher assaulted with a baton while the teen was handcuffed, shackled and temporarily blinded by pepper-spray. A second former BPD officer, Guy Gerstel, pleaded guilty on the first day of trial to lying to the FBI, and admitted that he too had assaulted the teenager while he was restrained. A third former officer, Sergeant Wayne Thompson, also pleaded guilty, admitting that he engaged in obstruction of justice to help cover up the assaults.
At trial, Gerstel and Thompson testified against their former colleague, defendant Mussmacher. They and other government witnesses established that Mussmacher had gotten into a verbal argument with the teenager at the scene of his arrest. In response to verbal taunting from the teen, Mussmacher took off his badge and gun, removed the teen’s handcuffs, and challenged him to a fight. After the arrestee refused to fight the officer, Mussmacher pepper-sprayed him in the face. A short time later, when Mussmacher had him alone in a room at the police station, he used his police baton to slam the fully-restrained teenager in the face, breaking his orbital bone and fracturing his jaw in two places. The evidence established that Mussmacher then submitted false and misleading police reports to cover up what had happened.
“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 Civil Rights Division will continue to aggressively prosecute officers who abuse their power in this manner.”
“Most law enforcement officers earn our confidence by performing their duties with honor and integrity,” said U.S. Attorney Rod J. Rosenstein of the District of Maryland. “Police officers who abuse suspects, write false reports and obstruct justice must be held accountable so that citizens can have confidence in law enforcement agencies.”
Sentencing is scheduled for Sept. 23, 2010, and Mussmacher faces a maximum sentence of 30 years in prison.
This case was investigated by the Baltimore Division of the FBI, and was prosecuted by Trial Attorneys Forrest Christian and Kevonne Small, and Special Litigation Counsel Jeffrey Blumberg, with support from the Baltimore U.S. Attorney’s Office.
Physical Therapist Sentenced to 57 Months in Prison<br /> in Connection with Detroit-area Medicare Fraud SchemesRead the Press Release
Farmington Hills, Mich., resident Baskaran Thangarasan was sentenced today to 57 months in prison for his participation in a fraudulent physical therapy scheme, announced the Departments of Justice and Health and Human Services (HHS).
U.S. District Court Judge Sean Cox in the Eastern District of Michigan sentenced Thangarasan to three years of supervised release following his prison term and ordered Thangarasan to pay $2.3 million in restitution, jointly with co-defendants.
Thangarasan pleaded guilty on Dec. 9, 2009, to one count of conspiracy to commit health care fraud. According to information contained in plea documents, Thangarasan, a licensed physical therapist, admitted that he began working in approximately February 2003 as a contract therapist for a co-conspirator who owned and controlled several companies operating in the Detroit area that purported to provide physical and occupational therapy services to Medicare beneficiaries. According to his plea documents, Thangarasan admitted that he, his co-conspirator and others created fictitious therapy files appearing to document physical and occupational therapy services provided to Medicare beneficiaries, when in fact no such services had been provided. According to court documents, the fictitious services reflected in the files were billed to Medicare through sham Medicare providers controlled by co-conspirators.
Thangarasan also admitted that during the course of the scheme, he signed approximately 1,011 fictitious physical therapy files indicating that he had provided physical therapy services to Medicare beneficiaries, when in fact he had not. Thangarasan admitted that he was paid approximately $50 for each file that he falsified. Thangarasan also admitted that between approximately September 2003 and May 2006, he falsified physical therapy files that supported claims to the Medicare program totaling approximately $5 million. Medicare paid approximately $2.3 million on those claims. Thangarasan admitted that, throughout the conspiracy, he was fully aware that Medicare was being billed for physical therapy services that he falsely indicated he had performed.
Today’s sentencing was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
This case was prosecuted by Assistant Chief John K. Neal and Trial Attorneys Gejaa T. Gobena and Stephanie Hays of the Criminal Division’s Fraud Section as well as former Special Assistant U.S. Attorney Thomas W. Beimers. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, Medicare Fraud Strike Force operations in 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.
Jury Convicts Two New York Importers in One of the Largest Counterfeit Goods Prosecutions in U.S. HistoryRead the Press Release
Chong Lam, 52, and Siu Yung Chan, aka Joyce Chan, 42, both of New York, were convicted yesterday for their participation in one of the largest counterfeit luxury goods operations in the United States, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Neil H. MacBride for the Eastern District of Virginia and Assistant Secretary John Morton of the U.S. Immigration and Customs Enforcement (ICE).
After a week-long trial and seven hours of deliberation, a federal jury in Richmond, Va., found Lam and Chan each guilty on one count of conspiracy to traffic in counterfeit goods imported from the People’s Republic of China (PRC); two counts of trafficking in counterfeit handbags, wallets, purses and carry-on bags; and two counts of illegally smuggling counterfeit goods into the United States.
According to evidence presented at trial, Lam and Chan and their co-conspirators operated a massive international manufacturing, import and wholesale counterfeit goods business. Evidence introduced at trial proved that Lam and Chan were controlling officers of at least 13 different companies in the United States and overseas, and operated at least eight separate factories dedicated to producing handbags, including enormous quantities of counterfeit bags. According to evidence presented at trial, from 2002 until Oct. 31, 2005, U.S. Customs and Border Protection (CBP) seized numerous containers of counterfeit luxury handbags and wallets imported from China. A subsequent ICE investigation, including a review of documents filed with CBP, disclosed that Lam and Chan imported over 300,000 counterfeit luxury handbags and wallets into the United States from the PRC in the names of different companies, all under their control.
In January 2008, investigators with ICE executed search warrants on the defendants’ business address, Coco USA, located in Manhattan. According to evidence presented at trial, during the execution of the search warrant, investigators seized approximately 1,500 cartons of alleged infringing items. The total value of the corresponding authentic luxury goods manufactured by Burberry, Louis Vuitton, Gucci, Coach, Fendi, Chanel and others is estimated to be over $100 million.
"The defendants convicted yesterday led a massive counterfeit goods operation that stretched from China to New York," said Assistant Attorney General Breuer. "The Department of Justice will continue aggressively to prosecute intellectual property crimes and to protect business and consumers alike from those looking to cheat their way to a quick profit."
"This case is about economic identity theft and blatant disregard of the law," said U.S. Attorney MacBride. "These convictions reinforce the integrity of our nation’s intellectual property laws that the Eastern District of Virginia is committed to enforcing."
"This landmark conviction represents the latest success of ICE in targeting intellectual property thieves," said John Morton, Assistant Secretary for ICE. "Through the National Intellectual Property Rights Coordination Center, ICE will continue working to stem the flow of counterfeit goods into the commerce of the United States."
The government is seeking forfeiture of the illicit proceeds of the enterprise, including funds that the defendants had transferred to bank accounts in the United States and overseas in the names of companies under their control, as well as three properties in New York. All of these assets had previously been frozen by court order.
At sentencing, scheduled for Sept. 15, 2010, Lam and Chan each face a maximum of five years in prison and a $250,000 fine for the conspiracy count, 10 years in prison and a $2 million fine for each trafficking count, and 5 years in prison and a $250,000 fine for each smuggling count.
A third defendant, Eric Yuen, 41, who was originally charged with Lam and Chan in January 2008, was found not guilty on all counts yesterday.
The case was prosecuted by Assistant U.S. Attorneys Brian R. Hood and Jessica A. Brumberg in the Eastern District of Virginia and Trial Attorney John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS). The case was investigated by ICE.
Five Current and Former New Orleans Police Officers Charged in the Shooting and Burning of a New Orleans Man in the Days After Hurricane KatrinaRead the Press Release
WASHINGTON – A federal grand jury has returned an 11 count federal indictment charging three current and two former New Orleans Police Department (NOPD) officers in connection with the police-involved shooting of Henry Glover, a New Orleans resident shot and killed in the days after Hurricane Katrina.
Today’s indictment was announced by Thomas E. Perez, Assistant Attorney General for the Civil Rights Division; Jim Letten, U.S. Attorney for the Eastern District of Louisiana; and David Welker, Special Agent in Charge of the New Orleans Field Office of the FBI.
Former NOPD officer David Warren, former NOPD Lieutenant Robert Italiano, NOPD Lieutenants Dwayne Scheuermann and Travis McCabe, and officer Gregory McRae are charged with crimes in connection with the Sept. 2, 2005, shooting and killing of Glover, the subsequent burning of his body in a car, the assault of civilians who tried to help Glover, and various offenses related to a cover-up of the incident.
Warren is in federal custody, having been arrested by Special Agents of the FBI immediately following the return of the indictment earlier today.
Specifically, Warren is charged with unnecessarily shooting and killing Glover and thereby violating his federally-protected right not to be subjected to the use of unreasonable force by a police officer. Warren, also charged with unlawfully using a firearm to commit this crime, faces a possible sentence of life in prison and a $250,000 fine.
Scheuermann and McRae are charged with obstructing justice and using fire in the commission of a federal offense, for burning Glover’s body and the 2001 Chevrolet Malibu in which his body was located. Scheuermann and McRae are also accused of assaulting civilians who came to Glover’s aid, thereby violating the rights of those civilians to be free from the use of unreasonable force. Scheuermann and McRae each face a possible maximum sentence of 60 years in prison, and fines of $1 million.
Italiano and McCabe are charged with obstruction of justice for their alleged roles in authoring and submitting a false and inaccurate incident report regarding the shooting and burning, and for other allegedly false statements they gave during the course of the federal investigation into this incident. Italiano faces a possible maximum sentence of 25 years in prison and a fine of $500,000. McCabe faces a possible maximum sentence of 30 years in prison and a fine of $750,000.
"In the wake of a disaster like Hurricane Katrina, law enforcement have a responsibility to do everything in their power to protect public safety and to protect the residents of their city. Any officers who abuse their power and violate the law will be brought to justice," said Assistant Attorney General Perez.
"Our deep gratitude goes to the team of federal investigators who continue to seek to defend the rights of victims of abuses following Hurricane Katrina," said U.S. Attorney Letten. "We are absolutely committed to bring those who have violated the sacred rights of our citizens to justice, in the hope that our pursuit will give the people of New Orleans confidence in the protection of honest and professional law enforcement."
"Behavior such as described in the indictment has no place in a free society, let alone law enforcement. Today’s indictment should clearly demonstrate the commitment of the FBI, the U.S. Attorney’s Office and the Department of Justice’s Civil Rights Division to aggressively and fairly investigate civil rights matters," said Special Agent in Charge David Welker.
This case is being investigated by the New Orleans Field Office of the FBI. It is being prosecuted by Trial Attorney Jared Fishman of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Tracey Knight for the Eastern District of Louisiana.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
Thursday 10 June 2010
Largest Taiwanese LCD Producer, Houston-Based Subsidiary and Six Executives Indicted for Participating in LCD Price-Fixing ConspiracyRead the Press Release
WASHINGTON - A federal grand jury in San Francisco returned a superseding indictment against the largest Taiwanese thin-film transistor-liquid crystal display panels (TFT-LCD) producer and seller, its Houston-based American subsidiary, and six of its executives for participating in a conspiracy to fix prices of TFT-LCD panels, the Department of Justice announced today.
The indictment, returned last night and filed today in U.S. District Court in San Francisco, charges that AU Optronics Corporation participated in a conspiracy to fix the prices of TFT-LCD panels sold worldwide from Sept. 14, 2001, to Dec. 1, 2006. AU Optronics Corporation, its American subsidiary, AU Optronics Corporation America, and six AU Optronics’ executives, each a resident of Taiwan, participated in the conspiracy at various times during the alleged conspiracy time period.
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 include some of the largest computer and television manufacturers in the world, including Apple, Dell and Hewlett Packard.
During the period covered by the indictment:
- Hsuan Bin Chen, AU Optronics’ president, participated in the conspiracy from Oct. 19, 2001, to Dec. 1, 2006;
- Hui Hsiung, AU Optronics’ executive vice president, participated in the conspiracy from Oct. 19, 2001, to Dec. 1, 2006;
- Lai-Juh Chen, AU Optronics’ director of Desktop (Monitor) Display Business Group, participated in the conspiracy from Feb. 13, 2003, to Nov. 1, 2005;
- Shiu Lung Leung, AU Optronics’ senior manager in the Desktop (Monitor) Display Business Group, participated in the conspiracy from May 15, 2002, to Dec. 1, 2006;
- Borlong Bai participated in the conspiracy from March 20, 2003, to Dec. 1, 2006. Bai was AU Optronics’ senior manager of the Notebook Display Business Group and the director of the Notebook Display Business Group; and
- Tsannrong Lee participated in the conspiracy from Jan. 11, 2002, to Dec. 1, 2006. Lee was AU Optronics’ senior manager of IT Display, senior manager of Desktop Display, director of Desktop Display and director of Notebook Display Business Groups.
According to the one count felony charge, AU Optronics and its executives, who are current employees or members of the board of directors for the company, carried out the conspiracy by agreeing to fix prices of TFT-LCD panels during meetings and issuing price quotations in accordance with the agreements reached. As a part of the conspiracy, executives from AU Optronics and its American subsidiary also exchanged information on sales of TFT-LCD panels for the purpose of monitoring and enforcing adherence to the agreed-upon prices.
Today’s indictment supersedes an indictment filed on Feb. 3, 2009, against co-conspirators Cheng Yuan "C.Y." Lin and Wen Jun "Tony" Cheng, both former Chunghwa Picture Tubes LTD executives, and Duk Mo Koo, former LG Display Co. Ltd executive.
AU Optronics, which is based in Hsinchu, Taiwan, AU Optronics Corporation America and six of its executives are charged with price fixing in violation of the Sherman Act. The maximum penalty for the conviction of a Sherman Act violation is 10 years in prison, a $1 million fine for individuals and a $100 million fine for corporations. The maximum fines 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.
As a result of this ongoing investigation, six companies have pleaded guilty and have been sentenced to pay criminal fines totaling more than $860 million. Additionally, including today’s indictment, 17 executives have been charged to date in the department’s ongoing investigation.
Today’s charges are 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 .
Justice Department Requires Divestiture in Order for Amcor Ltd. to Proceed with its Acquisition of Alcan’s Medical Flexible Packaging BusinessRead the Press Release
WASHINGTON – The Department of Justice announced today that it has reached a settlement that will require Australia-based Amcor Ltd. to divest a North Carolina plant used in the development, production and sale of certain bags used for medical purposes in order to proceed with its acquisition of the Alcan Packaging Medical Flexibles business from Rio Tinto plc, the parent company of Alcan Corporation. The department said that the acquisition as originally proposed would combine Amcor and Alcan Packaging, two of the leading U.S. manufacturers of vented bags for medical use. Without the divestiture, the department said that the acquisition would lead to higher prices, lower quality, less favorable supply-chain options, reduced technical support and less innovation.
The Department of Justice’s Antitrust Division filed a civil antitrust lawsuit today in U.S. District Court for the District of Columbia to block the proposed acquisition. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive concerns alleged in the lawsuit.
Vented bags for medical use are a type of flexible packaging used to package large or bulky medical items, such as drapes, gowns, and surgery trays and kits. Vented bags must meet rigorous performance and qualification standards because failure of the package in the sterilization process could expose the contents to microbes, bacteria or particulates, which could cause injury, sickness or even death to a patient.
"The acquisition as originally proposed would have lessened the vigorous competition that currently exists among suppliers of vented bags for medical use," said William F. Cavanaugh Jr., Deputy Assistant Attorney General in the Department of Justice’s Antitrust Division. "This divestiture will preserve competition in the market for vented bags for medical use, which has benefited consumers."
The department’s complaint alleges that the proposed acquisition would eliminate the significant competition between Amcor and Alcan Packaging in the already highly concentrated U.S. market for vented bags for medical use.
The proposed settlement requires the companies to divest Alcan Packaging’s Marshall, N.C. plant, which manufactures all of Alcan Packaging’s vented bags for medical use.
Amcor Ltd. is an Australia-based global packaging company. It had approximately $7.7 billion in sales in the fiscal year ending in June 2009. That same year, Amcor had approximately $170 million in U.S. sales of flexible packaging for medical use.
Rio Tinto plc, the parent of Alcan Corporation, is a U.K.-based global mining corporation. It had approximately $44 billion in sales in 2009. The sales of the Alcan Packaging Medical Flexibles business amounted to approximately $115 million in 2009.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Maribeth Petrizzi, Chief, Litigation II Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding it is in the public interest.
Indian Government Officials Provided Access to Terror Defendant David HeadleyRead the Press Release
As part of the cooperation and partnership between the United States and India in the fight against international terrorism, Indian law enforcement officials were provided direct access to interview David Coleman Headley, the Justice Department announced today.
Mr. Headley and his counsel agreed to the meetings and Headley answered the Indian investigators’ questions over the course of seven days of interviews. There were no restrictions on the questions posed by Indian investigators. To protect the confidentiality of the investigations being conducted by both India and the United States, both countries have agreed not to disclose the contents of the interviews.
Headley pleaded guilty on March 18, 2010 in the Northern District of Illinois to 12 federal terrorism charges, admitting that he participated in planning the November 2008 terrorist attacks in Mumbai, India, as well as later planning to attack a Danish newspaper.
"Project Deliverance" Results in More Than 2,200 Arrests During 22-month Operation, Seizures of Approximately 74 Tons of Drugs and $154 Million in U.s. CurrencyRead the Press Release
WASHINGTON –Attorney General Eric Holder today announced the arrest of more than 2,200 individuals on narcotics-related charges in the United States and the seizure of more than 74.1 tons of illegal drugs as part of a 22-month multi-agency law enforcement investigation known as “Project Deliverance.” The Attorney General was joined in announcing the current results of Project Deliverance by Acting Administrator Michele M. Leonhart of the U.S. Drug Enforcement Administration (DEA); Assistant Director Kevin L. Perkins of the FBI’s Criminal Investigative Division; and Assistant Secretary John Morton of the U.S. Immigration and Customs Enforcement (ICE).
Yesterday, 429 individuals in 16 states were arrested as part of Project Deliverance, which targeted the transportation infrastructure of Mexican drug trafficking organizations in the United States, especially along the Southwest border, through coordination between federal, state and local law enforcement. More than 3,000 agents and officers operated across the United States to make yesterday’s arrests. During yesterday’s enforcement action, $5.8 million in U.S. currency, 2,951 pounds of marijuana, 112 kilograms of cocaine, 17 pounds of methamphetamine, 141 weapons and 85 vehicles were seized by law enforcement agents.
“This interagency, cross-border operation has been our most extensive, and most successful, law enforcement effort to date targeting these deadly cartels, and it is a direct result of our ongoing Southwest Border Strategy,” said Attorney General Holder. “This successful operation, however, is just one battle in an ongoing war. So long as cartels and smugglers attempt to wreak havoc on our borders, we will continue to target them with every resource available to the federal government. This administration, working with law enforcement at all levels as well as our international partners, is committed to defeating these cartels, and we have proven the power of strong collaboration and coordination in achieving that goal.”
In addition, as part of the bilateral efforts between Mexico and the United States to disrupt drug cartel operations, Mexican law enforcement provided significant supportive actions for Project Deliverance. Among those arrested during the course of Project Deliverance was Carlos Ramon Castro-Rocha, an alleged heroin trafficker who has been designated a Consolidated Priority Organization Target (CPOT). A CPOT designation is reserved for significant narcotics traffickers who are believed to be the leaders of drug trafficking organizations responsible for the importation of large quantities of narcotics into the United States. Castro-Rocha was arrested by Mexican authorities on May 30, 2010, based on an arrest warrant from the United States. Castro-Rocha was indicted in U.S. District Court in the Western District of North Carolina and in U.S. District Court in the District of Arizona on drug trafficking charges.
Individuals indicted in these cases are charged with a variety of crimes, including: conspiracy to distribute methamphetamine, cocaine and marijuana; distribution of methamphetamine, cocaine, heroin and marijuana; conspiracy to import narcotics into the United States; and other violations of federal law. Numerous defendants face forfeiture allegations as well.
Overall, Project Deliverance has led to the arrest of 2,266 individuals and the seizure of approximately $154 million in U.S. currency, and approximately 1,262 pounds of methamphetamine, 2.5 tons of cocaine, 1,410 pounds of heroin, 69 tons of marijuana, 501 weapons and 527 vehicles.
“Project Deliverance inflicted a debilitating blow to the network of shadow facilitators and transportation cells controlled by the major Mexican drug cartels,” said DEA Acting Administrator Leonhart. “Deliverance continues a deliberate and strategic effort to cut off and shut down the supply of drugs entering our country, and the flow of drug profits and guns to Mexico. The stakes are extraordinarily high, and this massive operation is a milestone in our tireless assault on these violent drug cartels.”
“Violent drug distribution networks along the Southwest Border pose a threat to our border security and thus a threat to our nation’s citizens. By combining resources through operations like Project Deliverance, the law enforcement community will continue to disrupt and dismantle drug distribution networks and put those involved in the transportation of these drugs behind bars,” said FBI Assistant Director Perkins.
“This operation represents one of the most powerful attacks the U.S. government has launched against the criminal organizations smuggling narcotics, weapons and cash across our borders,” said ICE Assistant Secretary Morton . “The results of Project Deliverance clearly demonstrate the combined strength that federal agencies bring to bear in the battle against the cartels.”
This coordinated takedown is part of the department’s Southwest Border Strategy, announced in March 2009, which uses federal prosecutor-led task forces that bring together federal, state and local law enforcement components to identify, disrupt and dismantle Mexican drug cartels through investigation, prosecution and extradition of their key leaders and facilitators, and seizure and forfeiture of their assets. Through continued joint cooperation at all levels of the Obama and Calderon administrations, the Department of Justice and its partners are actively working to stem the flow of illegal narcotics, weapons and bulk cash moving across the U.S./Mexico border.
During the course of this investigation, arrests were made and/or charges have been unsealed related to Project Deliverance in the following areas: District of Arizona, Eastern and Southern Districts of California, District of Colorado, Southern District of Florida, Northern District of Georgia, Northern District of Illinois, District of Maryland, Eastern District of Missouri, District of Montana, District of Nevada, District of New Mexico, Northern and Southern Districts of New York, Western District of North Carolina, Eastern and Western Districts of Pennsylvania, Middle District of Tennessee, Southern and Western Districts of Texas, Eastern District of Virginia, Western District of Washington and the Eastern District of Wisconsin.
In a coordinated action, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) on June 9, 2010, named two individuals and two entities linked to the international drug trafficking organization La Familia Michoacana as Specially Designated Narcotics Traffickers. This action targeted Wenceslao Álvarez Álvarez, aka Wencho, his frontman Ignacio Mejia Gutierrez and two entities, Mega Empacadora de Frutas, S.A. de C.V. and I mportaciones y Exportaciones Nobaro , S.A. de C.V. Under the Foreign Narcotics Kingpin Designation Act, any assets these individuals or entities may have under U.S. jurisdiction are frozen. In addition, U.S. persons are prohibited from conducting financial or commercial transactions with the designees.
The investigative efforts in Project Deliverance were coordinated by the multi-agency Special Operations Division, comprised of agents and analysts from the DEA, FBI, ICE, Internal Revenue Service, U.S. Customs and Border Protection, U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives, as well as attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section. More than 300 federal, state, local and foreign law enforcement agencies contributed investigative and prosecutorial resources to Project Deliverance, many of which were through the High Intensity Drug Trafficking Area (HIDTA) Task Forces and the Organized Crime Drug Enforcement Task Forces (OCDETFs). Significant assistance for Project Deliverance was also provided by the Criminal Division’s Office of International Affairs.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Wednesday 9 June 2010
United States Settles False Claims Act Allegations<br /> with Cochlear Americas for $880,000Read the Press Release
WASHINGTON – Cochlear Americas, a Colorado-based cochlear implant manufacturer, has agreed to pay $880,000 to resolve allegations that it paid illegal remuneration to health care providers to induce purchases of cochlear implant systems, the Justice Department announced today. Cochlear Americas is a subsidiary of an Australian company, Cochlear Limited.
The settlement resolves a lawsuit brought by a whistleblower, Brenda March, in 2004. The lawsuit, filed in the District of Colorado, alleged that Cochlear Americas violated the Anti-kickback Act and the False Claims Act by paying various forms of illegal remuneration to physicians who prescribed the use of the Cochlear-manufactured devices for Medicare and Medicaid patients.
The United States intervened in the lawsuit in January 2007, and then shortly thereafter, moved to stay the suit, while the United States pursued an administrative civil monetary penalties investigation against Cochlear. The settlement announced today resolves that administrative matter as well as the lawsuit initiated by the whistleblower.
"Today’s actions demonstrate that the United States will not tolerate the payment of kickbacks by any entity involved in providing medical goods and services to beneficiaries of federal health care programs," said Assistant Attorney General Tony West, head of the Justice Department’s Civil Division.
"This office is determined to protect the integrity of the Medicare and Medicaid programs for the citizens of Colorado and of the United States," said David Gaouette, U.S. Attorney for the District of Colorado.
Ms. March brought her suit under the qui tam provisions of the False Claims Act, which permit private citizens with knowledge of fraud against the government to bring a lawsuit on behalf of the United States and to share in any recovery. Under the civil settlement announced today, she will receive $176,000.
The settlement announced today was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division; the U.S. Attorney’s Office for the District of Colorado, Affirmative Civil Enforcement Unit; and the U.S. Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations.
Two Military Officials, Two Contractors and Contracting Company Indicted for <br /> Alleged Roles in Bribery and Money Laundering Scheme Related to DOD Contract in AfghanistanRead the Press Release
Two U.S. military officials deployed to Bagram Airfield, Afghanistan, two Department of Defense (DOD) contractors and a contracting company were charged late yesterday for their roles in an alleged bribery and money laundering scheme related to the award of a DOD trucking services contract in Afghanistan, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Florence Nakakuni for the District of Hawaii.
According to an indictment returned on June 8, 2010, in U.S. District Court for the District of Hawaii, retired U.S. Army Sgt. Charles O. Finch, 44, of Hawaii, accepted a $50,000 bribe in the fall of 2004 to influence the award of a DOD trucking contract to AZ Corporation, an Afghan contracting company. The indictment alleges that the owners of AZ Corporation, brothers Assad John Ramin, 40, and Tahir Ramin, 32, both of Pennsylvania, offered the bribe to Finch. According to the indictment, the bribe was paid through the business account of Finch’s roommate at Bagram, 1st Sgt. Gary M. Canteen, 41, of Delaware, to disguise the nature and source of the payment. Canteen allegedly passed on a portion of the funds to Finch. According to the indictment, shortly after the money was delivered to Canteen, Finch recommended the award of the contract to AZ Corporation, which was awarded the contract.
Finch was arrested this morning in Hawaii and is expected to make his initial appearance later today in U.S. District Court for the District of Hawaii.
Finch, John Ramin, Tahir Ramin and AZ Corporation are each charged with one count of conspiracy to commit bribery, one count of bribery, one count of conspiracy to launder money and one count of money laundering. Canteen is charged with one count of conspiracy to commit bribery, one count of conspiracy to launder money and one count of money laundering.
Each individual faces a maximum sentence of 15 years in prison and a fine of $250,000 or three times the value of the bribe for the bribery charge; a maximum of five years in prison and a fine of $250,000 for the bribery conspiracy charge; and a maximum of 20 years in prison and a fine of $500,000 or twice the value of the laundered funds for each of the money laundering and money laundering conspiracy charges. AZ Corporation faces a fine of up to $500,000 for the bribery and conspiracy charges and $500,000 for the money laundering and money laundering conspiracy charges. The maximum fine could be increased to twice the gain derived from the crimes or twice the loss suffered by the victims of the crimes if either of those amounts is greater than the statutory maximum fine.
John Ramin, Tahir Ramin and AZ Corporation were also charged in August 2008 and June 2009 in the Northern District of Illinois with bribery, conspiracy to commit bribery and mail fraud related to the procurement and delivery of concrete bunkers and barriers at Bagram Airfield. John Ramin, Tahir Ramin and AZ Corporation are scheduled to begin trial on these charges on Aug. 16, 2010. Three former military officials have pleaded guilty in the Northern District of Illinois to receiving bribes from the Ramins and AZ Corporation.
An indictment is merely an allegation and each defendant is presumed innocent unless proven guilty in a court of law.
The case is being prosecuted by Trial Attorneys Mark W. Pletcher and Emily W. Allen of the Criminal and Antitrust Divisions and Assistant U.S. Attorney Marshall Silverberg of the District of Hawaii. The case is being investigated by the Army Criminal Investigations Division, the Defense Criminal Investigative Service, the Air Force Office of Special Investigations and 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.
Three Upstate New York Men Sentenced to Prison for Environmental CrimesRead the Press Release
WASHINGTON—Three men, a father and two sons, were sentenced to prison today in federal court in Syracuse, N.Y., for multiple violations of asbestos-related environmental laws, announced Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resource Division, and Richard S. Hartunian, U.S. Attorney for the Northern District of New York.
Paul Mancuso was sentenced to 78 months in prison, three years of probation and a $20,000 fine. Steven Mancuso was sentenced to 44 months in prison and three years of probation. Lester Mancuso, the father, was sentenced to 36 months in prison and three years of probation. The three men were sentenced today by Frederick Scullin, U.S. District Judge for the Northern District of New York.
After a two-week trial on Oct. 28, 2009, a jury found brothers, Paul and Steven Mancuso guilty of conspiring to defraud the United States, violating the Clean Air Act’s asbestos-related regulations, illegally dumping asbestos in Poland, N.Y, and committing mail fraud. Lester Mancuso pleaded guilty the day before the trial started. Ronald Mancuso, who cooperated with the investigation and prosecution, is scheduled to be sentenced on June 16, 2010.
Paul Mancuso was convicted of similar crimes in federal court in 2003 and in New York state court in 2004. As a consequence of the latter conviction, Paul Mancuso was expressly forbidden from affiliating himself with the asbestos-removal industry.
Steven Mancuso subsequently allowed his brother to operate asbestos businesses out of his law office and assisted Paul Mancuso in the operation of these asbestos companies. Specifically, Steven Mancuso and the other co-conspirators produced false and fraudulent documents and then submitted them to clients and regulating agencies to fraudulently conceal their non-compliance with federal and state regulations; submitted false partnership agreements, invoices and other records including, but not limited to, certified payroll records, to clients requesting payment for work that was not performed in compliance with law; and made false statements to clients, regulators, and law enforcement personnel to conceal their illegal activities and defraud the United States.
On some of these asbestos-projects, asbestos was removed in violation of EPA and OSHA regulations and was then illegally dumped on unwitting landowners’ properties in Poland, N.Y.
Asbestos has been determined to cause lung cancer, asbestosis and mesothelioma, an invariably fatal disease. The Environmental Protection Agency has determined that there is no safe level of exposure to asbestos.
This case was investigated by special agents of the Environmental Protection Agency. The case was prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Northern District of New York.
Latin Kings Leader Pleads Guilty to Racketeering Conspiracy Related<br /> to Gang Activities in New York and MarylandRead the Press Release
Andres Echevarria, aka "B-Boy" and "King B-Boy," pleaded guilty today to conspiracy to participate in a racketeering enterprise, in connection with his gang activities as a member of the Almighty Latin King and Queen Nation (Latin Kings).
The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Theresa R. Stoop of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; Chief Roberto L. Hylton of the Prince George’s County Police Department; Prince George’s County State’s Attorney Glenn Ivey; and New York City Police Commissioner Raymond W. Kelly.
According to Echevarria’s plea agreement, the Latin Kings is a violent street gang with thousands of members across the United States and overseas. The Latin Kings have a detailed and uniform organizational structure, which is outlined – along with various "prayers," codes of behavior and rituals – in a written "manifesto" widely distributed to members throughout the country. Members of the Latin Kings are also traditionally given "King Names" or "Queen Names," which are names other than their legal names by which they are known to members of the gang and to others on the street. At the local level, groups of Latin Kings are organized into "tribes," including the Royal Lion Tribe, MOG, Sun Tribe and UTL.
According to the plea agreement, in the spring of 2008, Echevarria, 23, of Brooklyn, New York, became a member of the Tiger tribe in Brooklyn and later became a member of the Murda Maya tribe, also in Brooklyn, the MOG tribe in Maryland and the TBF tribe in Brooklyn. Echevarria attended Latin King meetings in New York and Maryland, where dues were collected from members and gang business was discussed. According to the statement of facts in the plea agreement, Echevarria also communicated with Latin King members about the gang’s activities using the Internet and by telephone. Echevarria admitted that he held leadership positions in the Latin Kings, including the Third Crown/enforcer position for the MOG tribe in the fall of 2008, and for the Murda Maya tribe at the end of the summer of 2009.
Echevarria admitted that as part of his gang activities, he attempted to murder an individual in Wheaton, Md., on Nov. 1, 2008, after the individual made a disparaging remark about the Latin Kings while attending a party at which many Latin King members and associates were present. According to the plea agreement, Echevarria, along with other Latin King members, threatened to kill the individual, as well as chased and beat the individual. According to the plea agreement, Echevarria stabbed the individual with a two-pronged tool. In addition, on May 23, 2009, Echevarria and other Latin King members got into an argument with members of a rival gang in Brooklyn. According to the statement of facts, Echevarria fired a gun at one of the rival gang members. The bullet missed the rival gang member, traveled some distance and hit another person, penetrating the person’s clothes and causing an abrasion on the person’s back.
According to the statement of facts, during the summer of 2009, Echevarria and other gang members planned to rob a federal firearms licensee (FFL) in Frederick, Md., after learning that the FFL was receiving a large quantity of firearms. Echevarria and the other gang members planned to steal the guns and sell them for a profit. According to the statement of facts, as they were preparing to rob the FFL, they saw a significant number of military personnel near the FFL and abandoned the mission. Also according to the statement of facts, in the summer of 2009, Echevarria and other Latin King members carried out the armed robbery of a drug dealer in Frederick and Montgomery Counties, Md., during which Echevarria pointed a gun at the drug dealer’s head.
Echevarria faces a maximum sentence of life in prison. U.S. District Judge Alexander Williams Jr., has scheduled sentencing for Sept. 2, 2010, at 9:30 a.m. Echevarria remains detained.
Co-defendant Manuel Cruz, aka "Skibee" and "King Skibee," 45, of Bronx, New York, pleaded guilty on June 3, 2010, to the racketeering conspiracy in connection with his gang activities and is scheduled to be sentenced on Sept. 16, 2010, at 9:30 a.m. Cruz is one of the founders of the Maryland tribe of the Latin Kings.
The case is being prosecuted by Assistant U.S. Attorneys Emily Glatfelter and David Salem for the District of Maryland and Trial Attorney Lara M. Peirce of the Criminal Division’s Gang Unit. The investigation was assisted by the Gaithersburg Police Department, the Montgomery County Sheriff’s Office, the Maryland National Capital Park Police - Prince George’s County Division, the Maryland State Police, the U.S. Secret Service, the Internal Revenue Service - Criminal Investigation and U.S. Immigration and Customs Enforcement.
Justice Department Signs Agreement with Smyth County, Virginia, to Ensure Civic Access for People with DisabilitiesRead the Press Release
WASHINGTON- The Justice Department today announced an agreement with Smyth County, Va., to improve access to all aspects of civic life for persons with disabilities. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
PCA was initiated to ensure that persons with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society. As part of the PCA initiative, Justice Department investigators, attorneys and architects survey state and local government facilities, services and programs in communities across the country to identify the modifications needed for compliance with ADA requirements. The agreements are tailored to address the steps each community must take to improve access. This agreement is the 179th under the PCA initiative.
“Access to civic life is a fundamental part of American society and is necessary for individuals with disabilities to be full members of their communities,” said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. “Communities and workplaces across the nation have become more accessible for America’s nearly 50 million people with disabilities due to cooperative actions taken by entities like Smyth County. We hope that all local governments are committed to achieving full compliance with the ADA, particularly as we approach the 20th anniversary of this landmark civil rights law in July."
Under the agreement announced today, Smyth County will take several important steps to improve access for individuals with disabilities, such as:
- Making physical modifications to facilities surveyed by the department so that parking, routes into the buildings, entrances, service areas and counters, restrooms, public telephones and drinking fountains are accessible to people with disabilities.
- Surveying other facilities and programs and making modifications wherever necessary to achieve full compliance with ADA requirements.
- Ensuring that buildings and outdoor facilities that will be built or altered by or on behalf of the county comply with the ADA’s architectural requirements.
- Posting, publishing and distributing a notice to inform members of the public of the provisions of Title II and their applicability to the county’s programs, services and activities.
- Officially recognizing the Virginia’s telephone relay service as a key means of communicating with individuals who are deaf, are hard-of-hearing, or have speech impairments and training staff in using the relay service for telephone communications.
- Undertaking the required planning and modifications to ensure equal, integrated access to emergency management for individuals with disabilities, including emergency preparedness, notification, evacuation, sheltering, response, clean up and recovery.
- Developing a method for providing information for interested persons with disabilities concerning the existence and location of the county’s accessible services, activities and programs.
- Installing signs at any inaccessible entrance to a facility directing individuals with disabilities to an accessible entrance or to information about accessing programs and services at other accessible facilities.
- Adopting a grievance procedure to deal with complaints of disability discrimination relating to county programs and services.
Smyth County, named to honor General Alexander Smyth, was created in 1832. Two-thirds of the 435 square miles of the county came from neighboring Washington County, and one-third from Wythe County. According to 2000 census data, 24.9 percent of people living in Smyth County – nearly one in every four residents – is an individual with a disability.
Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The department will actively monitor the county’s compliance with the agreement. The agreement will remain in effect for three years or until the department has confirmed that all required actions have been completed, whichever is later.
People interested in finding out more about the ADA, today’s agreement with Smyth County, the Project Civic Access initiative, or the ADA Best Practices Tool Kit for State and Local Governments can access the ADA Web page at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Signs Agreement with Lancaster County, Pennsylvania, to Ensure Civic Access for People with DisabilitiesRead the Press Release
WASHINGTON- The Justice Department today announced an agreement with Lancaster County, Pa., to improve access to civic life for persons with disabilities. The agreement was reached under Project Civic Access (PCA), the department's wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
PCA was initiated to ensure that persons with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society. As part of the PCA initiative, Justice Department investigators, attorneys and architects survey state and local government facilities, services and programs in communities across the country to identify the modifications needed for compliance with ADA requirements. The agreements are tailored to address the steps each community must take to improve access. This agreement is the 178th under the PCA initiative.
“This agreement will ensure that individuals with disabilities in Lancaster County will have improved access to their county court system and other critical aspects of civic life,” said Assistant Attorney General Thomas E. Perez of the Civil Rights Division. “I commend officials from Lancaster County for making this commitment to its residents with disabilities. The time for all local governments throughout the country to commit to achieving full ADA compliance is long overdue as we celebrate the 20th anniversary of this landmark civil rights law in July.”
Under the agreement announced today, Lancaster County will take several important steps to improve access for individuals with disabilities, such as:
- Make physical modifications to its facilities so that parking, routes into the buildings, entrances, public telephones, restrooms, service counters and drinking fountains are accessible to people with disabilities. The agreement specifies which modifications will be made at each facility.
- Provide increased access to county court proceedings by constructing two fully accessible district justice offices, centrally located within the county, within one year of the effective date of this agreement.
- Post, publish and distribute a notice to inform members of the public of the provisions of title II and their applicability to the county' s programs, services and activities.
- Appoint an ADA coordinator to coordinate the county' s effort to comply with and carry out its responsibilities under the ADA.
- Adopt a grievance procedure to handle grievances submitted under the ADA.
- Develop a policy regarding auxiliary aids and services for use in the Lancaster
- County courthouse and magistrates' offices, purchase assistive listening systems, train personnel in the set-up, use, and maintenance of the system, and post notices notifying patrons of the availability of the system.
- Pay $1,000 to a military veteran who filed a complaint with the Justice Department alleging that he was denied access to the court system because of physical barriers and the lack of an assistive listening system at court facilities.
Located in southeast Pennsylvania, Lancaster County was formed on May 10, 1729. It has a total area of 984 square miles and an estimated population of approximately 490,000. Lancaster County is a popular tourist destination.
Today' s settlement agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The agreement requires that the specified actions be completed within 3 years. The department will monitor compliance with the agreement, and it will remain in effect until the department has confirmed that all required actions have been completed.
People interested in finding out more about the ADA, today' s agreement with Lancaster County, the Project Civic Access initiative, or the ADA Best Practices Tool Kit for State and Local Governments can access the ADA Web page at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Tuesday 8 June 2010
Mansfield, Texas, Man Pleads Guilty to Commodities Fraud Involving Foreign Currency Trading Ponzi SchemeRead the Press Release
WASHINGTON - Ray M. White, 51, pleaded guilty today before U.S. Magistrate Judge Paul D. Stickney in Dallas to a criminal information charging him with one count of commodities fraud, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney James T. Jacks of the Northern District of Texas.
According to court documents, White admitted that in July 2008 he contracted with an investor to sell $50,000 in commodities through CRW Management LP, which White operated in Mansfield, Texas. White admitted that, from July 2008 until January 2009, he knowingly and willfully cheated and defrauded, made false statements to, and deceived the investor by making several misrepresentations in connection with the contract to sell commodities.
Specifically, according to court documents, White represented to the investor that his funds would be used to trade off-exchange foreign currency contracts and that CRW averaged 7 percent per week returns through off-exchange foreign currency trading. According to the court documents, White provided written account statements showing purported returns, and represented to this investor that CRW would maintain separate bank accounts for each investor. White admitted that in fact, these account statements were false and that he did not maintain separate bank accounts for the investors.
According to the criminal information, the vast majority of the funds were never used to trade off-exchange foreign currency. White admitted that he either misappropriated investor funds or paid them to other investors in the form of Ponzi payments. White admitted losing more than $86,500 on off-exchange foreign currency trading, rather than making the 7 percent per week profits he claimed.
According to March 2009 emergency civil enforcement actions filed in the Northern District of Texas by the U.S. Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC), White solicited at least $10.9 million from late 2006 until March 2009 from more than 250 investors to trade in the foreign currency market. The SEC and CFTC court documents also allege that CRW never traded off-exchange foreign currency, and that White lost money in the limited off-exchange foreign currency trading in which he engaged. According to the SEC and CFTC court documents, White used at most $93,900 of the $10.9 million he raised to trade in the foreign currency market. The remaining approximately $10.8 million was either misappropriated or returned to CRW customers as part of the Ponzi scheme. The complaint filed by the SEC states that White used the funds to finance his son’s car-racing career, to purchase a company called Hurricane Motorsports LLC, in Arlington, Texas, and to purchase a home and other real property.
The SEC and CFTC court documents also state that White was never registered with the SEC or the CFTC, and has never been licensed to sell securities. While White led investors to believe that his special expertise in trading foreign currencies would yield exceptional returns, in reality he was not a successful foreign currency trader and had no lucrative foreign currency trading fund or program. In fact, White filed for bankruptcy in 2003 and in 2006, a fact he concealed from investors.
White faces a maximum prison sentence of 10 years and a maximum fine of $1 million. He is scheduled to be sentenced by U.S. District Court Judge Barbara M.G. Lynn on Sept. 17, 2010.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
The case is being prosecuted by Trial Attorney Bill Bowne of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney Alan Buie and Special Assistant U.S. Attorney Stephanie Tourk for the Northern District of Texas. The case was investigated by the CFTC, the SEC, the FBI and the U.S. Postal Inspection Service.
Cincinnati Area Return Preparer Pleads Guilty to Tax CrimesRead the Press Release
WASHINGTON -- Idrissa Bassoum, a former resident of Cincinnati, Ohio, pleaded guilty today in federal district court in Cincinnati to aiding in the filing of false tax returns for others and filing his own false tax return, the Justice Department and Internal Revenue Service (IRS) announced. Bassoum has been held since his arrest on March 18, 2010.
According to court documents, Bassoum began offering tax preparation services under the name Bassoum’s Consulting Service (BCS) in February 2003, operating out of his residence and catering primarily to immigrants. Bassoum prepared and electronically filed tax returns for his clients that included inflated or fictitious expense deductions, such as moving expenses, which resulted in his clients claiming fraudulent tax refunds.
Bassoum took his fees out of his clients’ fraudulent refunds. Despite preparing hundreds of tax returns for his clients during tax years 2003 and 2004, Bassoum failed to report any of his fee income on his personal tax returns. Bassoum received at least $69,915 in unreported fee income during tax year 2004 and $80,771 in unreported fee income during tax year 2005.
Judge Sandra S. Beckwith, who is presiding over the matter, did not schedule a sentencing date. Bassoum faces a maximum sentence of nine years in prison and a $750,000 fine.
The case was investigated by IRS - Criminal Investigation Division and is being prosecuted by Tax Division trial attorneys Jorge Almonte and Sean R. Delaney.
Billboard Manufacturer Pleads Guilty to Hazardous Waste Related ChargesRead the Press Release
WASHINGTON—Selective Structures L.L.C. pleaded guilty and was sentenced today for illegally storing hazardous waste at its facility in Athens, Tenn., announced Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division, and James R. Dedrick, U.S. Attorney for the Eastern District of Tennessee.
Thomas Varlan, U.S. District Judge for the Eastern District of Tennessee, sentenced Selective Structures to pay an $80,000 criminal fine and $179,174.18 in penalties and damages to the Tennessee Department of Environment and Conservation. Additionally, the company was placed on probation for 37 months to allow it time to pay the fines, penalties and damages. Selective Structures was also required to hire an outside consultant to conduct quarterly environmental compliance audits while it is on probation and report the results of the audits to the Department of Justice.
Selective Structures operates a facility in Athens where it builds support structures for roadside signs and billboards. During the course of its manufacturing process, hazardous waste was generated in the form of spent solvents mixed with other paint waste. Selective Structures used a Xylene-based solvent, which is a listed hazardous waste, and is highly ignitable. Additionally, exposure to Xylene can cause skin irritation, headache, dizziness, nausea and vomiting.
Under the Resource Conservation and Recovery Act, Selective Structures was required to use a licensed waste management company to transport the spent Xylene solvent to a licensed facility for disposal. However, Selective Structures accumulated and stored the spent Xylene solvent on its property, rather than having it handled at an approved hazardous waste disposal facility.
After the company accumulated more than 60 55-gallon drums of spent Xylene solvent on the property, its employees attempted to dispose of the hazardous waste by pouring drums of it into large pile of sawdust and mixing it with pitchforks. The Tennessee Department of Environment and Conservation conducted an inspection, discovered the illegal activities and as a result required that the hazardous waste be disposed of properly. Additionally, special agents of the U.S. Environmental Protection Agency’s (EPA) Criminal Investigation Division executed a federal search warrant at the facility in April 2008 and obtained samples which confirmed that hazardous wastes were being illegally stored on site.
"Companies that handle hazardous waste must follow the proper procedures in order to appropriately dispose of the materials. Dumping Xylene, a dangerous chemical, on a pile of sawdust and then mixing it with pitchforks was completely unacceptable," said Assistant Attorney General Moreno. "We will continue to prosecute companies and individuals that choose to ignore the law and put human health and the environment at risk."
U.S. Attorney James R. Dedrick said, "This prosecution reflects the commitment of the Department of Justice to aggressively investigate and prosecute businesses that purposely flaunt the environmental laws that are in place to protect human health and the environment."
"Hazardous wastes must be stored and managed properly to ensure community, worker and environmental safety," said Maureen O’Mara, Special Agent-in-Charge of EPA’s criminal enforcement program in Atlanta. "Individuals who refuse to ‘play by the rules’ put the public and the environment at risk and they will be prosecuted."
The investigation was conducted by the EPA’s Criminal Investigation Division. The case was handled by prosecutors in the Environmental Crimes Section of the Justice Department and the U.S. Attorney’s Office for the Eastern District of Tennessee.
Attorney General Holder, Secretary Sebelius Send Letter to State Attorneys General<br /> on New Outreach and Education Efforts to Combat Medicare FraudRead the Press Release
Attorney General Eric Holder and Secretary of Health and Human Services (HHS) Kathleen Sebelius today sent a letter to state attorneys general urging them to work with HHS and federal, state and local law enforcement officials to mount a substantial outreach campaign , beginning this summer, to educate seniors and other Medicare beneficiaries about how to prevent scams and fraud. The outreach campaign is another step in the ongoing work of the Health Care Fraud Prevention Enforcement Action Team (HEAT), a cabinet-level initiative launch by the Justice Department and HHS in May 2009.
"We are heading into the week when our first tax-free $250 donut hole rebate checks will be mailed out to Medicare beneficiaries who have fallen into the coverage gap. Accordingly, we are especially concerned about fraud and increased activity by criminals seeking to defraud seniors – and we are seeking your help to stop it," said Attorney General Holder and Secretary Sebelius in the letter. "Building on our record of aggressive action, we will use the new tools and resources provided by the Affordable Care Act to further crack down on fraud."
In the letter, the Attorney General and Secretary outline education and outreach efforts where state attorneys general could make a big difference. These include efforts to cut the improper payment rate, which tracks fraud, waste and abuse in the Medicare Fee for Service program, in half by 2012; a series of regional fraud prevention summits around the country over the next few months; regular health care fraud task force meetings to facilitate the exchange of information with partners in the public and private sector, and to help coordinate anti-fraud effort; HHS’s plans to double the size of the Senior Medicare Patrol and to put more boots on the ground in the fight against Medicare fraud; and a new educational media campaign this summer to educate Medicare beneficiaries about how to protect themselves against fraud.
Monday 7 June 2010
U.S. Trustee Program Announces Resolutionof Litigation Against Countrywide Home Loans Inc.,in Consumer Bankruptcy CasesRead the Press Release
WASHINGTON– The U.S. Trustee Program (USTP) has successfully resolved litigation against Countrywide Home Loans Inc. in its ongoing efforts to protect homeowners in bankruptcy, Clifford J. White III, Director of the Executive Office for U.S. Trustees, announced today.
Over a two-year period, the USTP worked closely with the Federal Trade Commission (FTC) to carry out parallel investigations relating to Countrywide’s improper conduct in servicing home loans.
Today, the FTC announced a consent order with Countrywide and its affiliate BAC Home Loans Servicing LP that resolves an FTC complaint and the USTP’s litigation in bankruptcy courts.
Homeowners in Bankruptcy Protected
"Homeowners who file for bankruptcy protection and obey the rules are entitled to a fresh start," stated Director White. "Today’s agreement among the FTC, USTP, and Countrywide helps to ensure that debtors receive the relief to which they are legally entitled. The agreement will compensate homeowners in bankruptcy who were victimized by Countrywide’s improper business practices, and will help prevent future harm to homeowners in dire financial straits who legitimately seek bankruptcy protection."
The Bankruptcy Code imposes duties on debtors to completely and accurately report on their financial condition. Similarly, it imposes a duty on creditors to file complete and accurate claims regarding the amount of money owed to them. In pending litigation, the USTP alleged Countrywide failed to satisfy its obligations as a creditor and thereby harmed not only homeowners in chapter 13 bankruptcy, but other creditors as well.
USTP litigation against Countrywide focused on three types of practices: inflating the mortgage claims Countrywide made against homeowners in chapter 13 bankruptcy; failing to properly credit homeowners with payments made; and failing to notify homeowners of extra charges added to the mortgage bill. These improper accounting and billing practices can be catastrophic to debtors, who may emerge from bankruptcy only to end up losing the family home, and unfair to other creditors, who may receive less than their fair share from the bankruptcy estate because the mortgage company claimed more than it was entitled to receive.
Mortgage Servicing Abuses Addressed
The USTP launched investigations of Countrywide, as well as other mortgage lenders, after receiving complaints of chronic accounting irregularities by mortgage servicing companies. Overall, in FY 2009, U.S. Trustees took more than 9,000 formal and informal consumer protection actions, including a large number of actions against mortgage servicing companies. On the Countrywide matter, the USTP worked closely with the FTC in fashioning the consent order announced today.
Under the consent order:
- Debtors who were victimized by Countrywide’s wrongful actions will receive compensation;
- Countrywide will establish internal procedures and an independent third party will verify compliance with the prescribed procedures, to help ensure that the bills and claims filed in bankruptcy court are accurate; and
- Countrywide will provide adequate notice of its charges so debtors do not emerge from bankruptcy only to be required to pay previously undisclosed charges or risk foreclosure.
Pending Bankruptcy Actions Resolved
The consent order resolves the USTP’s challenges to Countrywide’s mortgage servicing practices in litigation throughout the country, including in the bankruptcy cases of In re Atchley, Case No. 05-79232, Adv. No. 08-6092 (Bankr. N.D. Ga. Feb. 28, 2008); In re Hill, Case No. 01-22574 (Bankr. W.D. Pa. June 29, 2008); and In re Sanchez, Case No. 01-42230, Adv. No. 08-1176 (Bankr. S.D. Fla. Mar. 1, 2008). The consent order does not bind non-parties, including debtors.
The USTP is a member of the President’s Financial Fraud Enforcement Task Force, which was established to improve efforts across the government and with state and local partners to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, recover proceeds for victims, and address financial discrimination in the lending and financial markets. Homeowners may visit the Task Force’s Web site at www.stopfraud.gov for information on reporting mortgage and other financial fraud, as well as valuable tips on protecting themselves against mortgage and financial scams.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices.
U.S. Trustee Program Announces Resolution of Litigation Against Countrywide Home Loans, Inc., in Consumer Bankruptcy CasesRead the Press Release
WASHINGTON – The U.S. Trustee Program (USTP) has successfully resolved litigation against Countrywide Home Loans Inc. in its ongoing efforts to protect homeowners in bankruptcy, Clifford J. White III, Director of the Executive Office for U.S. Trustees, announced today.
Over a two-year period, the USTP worked closely with the Federal Trade Commission (FTC) to carry out parallel investigations relating to Countrywide’s improper conduct in servicing home loans.
Today, the FTC announced a consent order with Countrywide and its affiliate BAC Home Loans Servicing LP that resolves an FTC complaint and the USTP’s litigation in bankruptcy courts.
Homeowners in Bankruptcy Protected
“Homeowners who file for bankruptcy protection and obey the rules are entitled to a fresh start,” stated Director White. “Today’s agreement among the FTC, USTP, and Countrywide helps to ensure that debtors receive the relief to which they are legally entitled. The agreement will compensate homeowners in bankruptcy who were victimized by Countrywide’s improper business practices, and will help prevent future harm to homeowners in dire financial straits who legitimately seek bankruptcy protection.”
The Bankruptcy Code imposes duties on debtors to completely and accurately report on their financial condition. Similarly, it imposes a duty on creditors to file complete and accurate claims regarding the amount of money owed to them. In pending litigation, the USTP alleged Countrywide failed to satisfy its obligations as a creditor and thereby harmed not only homeowners in chapter 13 bankruptcy, but other creditors as well.
USTP litigation against Countrywide focused on three types of practices: inflating the mortgage claims Countrywide made against homeowners in chapter 13 bankruptcy; failing to properly credit homeowners with payments made; and failing to notify homeowners of extra charges added to the mortgage bill. These improper accounting and billing practices can be catastrophic to debtors, who may emerge from bankruptcy only to end up losing the family home, and unfair to other creditors, who may receive less than their fair share from the bankruptcy estate because the mortgage company claimed more than it was entitled to receive.
Mortgage Servicing Abuses Addressed
The USTP launched investigations of Countrywide, as well as other mortgage lenders, after receiving complaints of chronic accounting irregularities by mortgage servicing companies. Overall, in FY 2009, U.S. Trustees took more than 9,000 formal and informal consumer protection actions, including a large number of actions against mortgage servicing companies. On the Countrywide matter, the USTP worked closely with the FTC in fashioning the consent order announced today.
Under the consent order:
- Debtors who were victimized by Countrywide’s wrongful actions will receive compensation;
- Countrywide will establish internal procedures and an independent third party will verify compliance with the prescribed procedures, to help ensure that the bills and claims filed in bankruptcy court are accurate; and
- Countrywide will provide adequate notice of its charges so debtors do not emerge from bankruptcy only to be required to pay previously undisclosed charges or risk foreclosure.
Pending Bankruptcy Actions Resolved
The consent order resolves the USTP’s challenges to Countrywide’s mortgage servicing practices in litigation throughout the country, including in the bankruptcy cases of In re Atchley, Case No.05-79232, Adv. No.08-6092 (Bankr. N.D. Ga. Feb. 28, 2008); In re Hill, Case No. 01-22574 (Bankr. W.D. Pa. June29, 2008); and In re Sanchez, Case No.01-42230, Adv. No.08-1176 (Bankr. S.D. Fla. Mar.1, 2008). The consent order does not bind non-parties, including debtors.
The USTP is a member of the President’s Financial Fraud Enforcement Task Force, which was established to improve efforts across the government and with state and local partners to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, recover proceeds for victims, and address financial discrimination in the lending and financial markets. Homeowners may visit the Task Force’s Web site at www.stopfraud.gov for information on reporting mortgage and other financial fraud, as well as valuable tips on protecting themselves against mortgage and financial scams.
The USTP is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The USTP has 21 regions and 95 field offices.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Statement of Clifford J. White III, Director of the Executive Office for U.S. Trustees [17.56 KB]
The Complaint and the Consent Order filed by the Federal Trade Commission are located on the FTC's Web site with materials on Countrywide Home Loans, Inc. and BAC Home Loans Servicing, LP.
Ship Management Firm Pleads Guilty and is Sentenced for Violating Federal Pollution LawRead the Press Release
WASHINGTON—Cooperative Success Maritime S.A.,the operator of the M/T Chem Faros, a 21,145 gross-ton ocean-going cargo ship that regularly transported cargo between foreign ports and the United States, pleaded guilty and was sentenced today in federal court for violating the Act to Prevent Pollution from Ships (APPS), and to making material false statements, the Justice Department announced.
U.S. District Court Judge James C. Dever III for the Eastern District of North Carolina sentenced the company to pay a $850,000 penalty of which $150,000 will be paid to the congressionally-created National Fish and Wildlife Fund as a community service payment. The judge also sentenced the company to serve five years of probation, during which time they will implement an environmental compliance plan.
Federal and international law requires that all ships comply with pollution regulations requiring the proper disposal of oily waste water and sludge by passing the oily waste through an oil-water separator (OWS) aboard the vessel or burning the sludge in the ship’s incinerator. Federal law also requires the ship’s crew to record accurately in an oil record book (ORB) each transfer or disposal of oily waste water and sludge. These laws are designed to prevent pollution of ocean waters.
During a regular inspection of the ship on March 29, 2010, in Morehead City, N.C., an oiler with the engine crew passed a note to a U.S. Coast Guard inspector. The handwritten note stated:
"GOOD MORNING SIR, I WOULD LIKE TO LET YOU KNOW THIS SHIP DISCHARGING BILGE ILEGALLY USING BY MAGIC PIPE, IF YOU WANT TO KNOW ILLEGAL PIPE THERE IN WORKSHOP FIVE METERS LONG WITH RUBBER. SIR, I HOPE IF YOU DON’T MIND. WE HAVE A SECURITY FOR OUR SAFETY." (spelling and grammar errors in original).
The oiler informed a member of Coast Guard boarding team that the "magic pipe" was located in the workshop in the engine department. The subsequent investigation revealed that from September 2009, through March 2010, engine department crew members pumped oil-contaminated waste directly overboard by using the pipe that by-passed the OWS on several occasions, up to 10 times according to some crew members.
On March 18, 2010, the chief engineer, Vaja Sikharulidze, ordered the engine department crew members, through the second engineer, to by-pass the OWS and discharge oil-contaminated bilge waste directly overboard. This resulted in approximately 13,200 gallons of oil-contaminated waste to be discharged into the ocean.
Sikharulidze has acknowledged making false entries in the oil record book to hide the true amount of oil-contaminated bilge waste that was stored in a certain tank aboard the ship. The chief engineer stated that in order to hide the by-pass of over 70 cubic meters, he had to enter incorrect information in the ORB preceding the discharge.
Sikharulidze further admitted that transfer entries in the ORB from on or about March 6, 2010, through March 17, 2010, were false. He indicated he was continuing the practice of false entries made by the prior chief engineer for that particular tank. He explained that the prior chief engineer indicated in the ORB that a particular bilge tank contained 24 cubic meters of waste when, in fact, it contained 60 to 65 cubic meter of waste. In order to avoid bringing attention to the false entries, the chief engineer continued the practice of making false entries. Last month, Sikharulidze59, pleaded guilty to violating the APPS.
"Owners and operators of sea-going vessels who intentionally violate the law by polluting and falsifying records will be prosecuted by the Department of Justice," said Ignacia S. Moreno, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The Federal government will continue to investigate and prosecute these types of violations to stop illegal discharges and protect the environment."
"Pollution prevention acts were put in place to protect our natural resources. It is disheartening when we see companies and individuals knowingly and purposely dumping oil-contaminated waste into those resources. We will take violations of these acts very seriously, in order to protect our natural resources for future generations," stated George E. B. Holding, U.S. Attorney for the Eastern District of North Carolina.
"As a steward of the environment, the Coast Guard enforces compliance with applicable laws," said Rear Adm. Wayne Justice, commander of the Coast Guard’s 5th District. "The criminal prosecution of violating companies is a significant deterrent for offending ships entering our ports. Cooperative efforts between state and federal agencies help preserve our natural resources, and protect those who rely on the marine environment for their livelihood."
"The oceans must be protected from being used as dump sites for waste oil or other hazardous substances," said Maureen O’Mara, Special Agent-in-Charge of EPA’s criminal enforcement program in Atlanta. "This prosecution sends a clear message that companies that refuse to operate their vessels safely and lawfully and pollute our waters will be vigorously prosecuted."
Investigation of this case was conducted by the U.S. Coast Guard and the Environmental Protection Agency with assistance from the FBI’s Computer Forensic Team. The case was jointly prosecuted by the Justice Department’s Environmental Crimes Section and the U.S. Attorney’s Office for the Eastern District of North Carolina.
Justice Department to Monitor Elections <br /> in California, New Jersey and South DakotaRead the Press Release
WASHINGTON – The Justice Department announced today that it will monitor elections on June 8, 2010, in the following jurisdictions to ensure compliance with the Voting Rights Act of 1965 and other federal voting rights statutes: Riverside County, Calif.; Middlesex County, N.J.; and Charles Mix and Shannon Counties, S.D.
The Voting Rights Act prohibits discrimination in the election process on the basis of race, color or membership in a minority language group. In addition, the act requires certain covered jurisdictions to provide language assistance during the election process. Riverside and Middlesex Counties are required to provide assistance in Spanish, and Shannon County is required to provide assistance in Lakota.
Under the Voting Rights Act, the Justice Department is authorized to ask the U.S. Office of Personnel Management (OPM) to send federal observers to jurisdictions that are certified by the Attorney General or by a federal court order. Federal observers will be assigned to monitor polling place activities in Shannon County based on the attorney general’s certification and in Riverside County and Charles Mix County based on court orders. The observers will watch and record activities during voting hours at polling locations in these jurisdictions, and Civil Rights Division attorneys will coordinate the federal activities and maintain contact with local election officials.
In addition, Justice Department personnel will monitor the election in Middlesex County for compliance with the Voting Rights Act.
Each year, the Justice Department deploys hundreds of federal observers from OPM, as well as departmental staff, to monitor elections across the country. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Visit www.justice.gov/crt/voting/index.php for more information about the Voting Rights Act and other federal voting laws.
Former U.S. Official Pleads Guilty to Abusive Sexual Contact and Possession of a Firearm While Unlawfully Using a Controlled SubstanceRead the Press Release
Andrew Warren, 42, a former official with the Central Intelligence Agency (CIA), pleaded guilty today to a two-count criminal information charging him with abusive sexual contact and unlawful use of cocaine while possessing a firearm, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Ronald C. Machen Jr., for the District of Columbia and Ambassador Eric J. Boswell, Assistant Secretary of State for Diplomatic Security.
During the plea hearing before U.S. District Judge Ellen Segal Huvelle in the District of Columbia, Warren admitted that on Feb. 17, 2008, he committed abusive sexual contact while on U.S. embassy property in Algiers, Algeria, by engaging in sexual contact with a female victim after he rendered her unconscious. Additionally, Warren admitted that on April 26, 2010, he unlawfully used cocaine while possessing a Glock Model 19, 9 millimeter semi-automatic pistol in Norfolk, Va. At sentencing, which is scheduled for Sept. 9, 2010, Warren faces a maximum of 10 years in prison, a $250,000 fine and a lifetime of supervised release. Warren will be required to register as a sex offender for a period of at least 25 years.
The case was investigated by the Diplomatic Security Service, the Bureau of Alcohol, Tobacco and Firearms and the Norfolk Police Department. Agents from the U.S. Marshals Service assisted with Warren’s arrest in Norfolk. The case was prosecuted by Assistant U.S. Attorney Julieanne Himelstein for the District of Columbia and Christine Duey from the Criminal Division’s Human Rights and Special Prosecutions Section. Assistant U.S. Attorney Steve Haynie for the Eastern District of Virginia assisted in the prosecution. The Inspector General’s Office and the Office of the General Counsel of the CIA also assisted with the investigation.
Friday 4 June 2010
Roberta A. Deangelis Appointed United States Trustee for Delaware, New Jersey, PennsylvaniaRead the Press Release
WASHINGTON – Roberta A. DeAngelis has been appointed by Attorney General Eric Holder as the United States Trustee for Delaware, New Jersey and Pennsylvania (Region 3), the Executive Office for United States Trustees announced today.
Ms. DeAngelis has served as Acting U.S. Trustee in Region 3 since May 2008. She joined the U.S. Trustee Program as the Assistant U.S. Trustee in the Newark office in July 1999, after practicing bankruptcy and insolvency law for 20 years in the private sector. She served as Acting General Counsel in the Executive Office for U.S. Trustees in Washington, D.C., from May 2005 until her appointment as Acting U.S. Trustee in May 2008.
Ms. DeAngelis received her law degree from Seton Hall University School of Law in Newark, N.J., and her Bachelor of Arts degree magna cum laude from Alvernia College in Reading, Pa. She is a former trustee of the New Jersey State Bar Association and former president of her local bar association, a trained mediator, and a former chairperson of the New Jersey Supreme Court Ethics Committee for District VII.
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 U.S. Trustee Program has 21 regions and 95 field offices. Region 3 is headquartered in Philadelphia, with additional offices in Wilmington, Del; Newark, N.J.; and Harrisburg and Pittsburgh, Pa.
Contact:Jane Limprecht, Public Information Officer
Executive Office for U.S. Trustees
(202) 305-7411Robert D. Miller, Jr., Appointed United States Trustee for Washington, Oregon, Montana, Idaho and AlaskaRead the Press Release
WASHINGTON – Robert D. Miller, Jr., has been appointed by Attorney General EricHolder as the United States Trustee for Washington, Oregon, Montana, Idaho and Alaska (Region 18), the Executive Office for United States Trustees announced today.
Mr. Miller has served as Acting U.S. Trustee in Region 18 since February 2008. Prior to that appointment, he headed the U.S. Trustee Program’s office in Spokane, Wash., since 1988. He has also served in the Executive Office as Acting Assistant Director for Review and Oversight from October 2005 to July 2007, and as Acting Assistant Director for Research and Planning from May 2006 to May 2007. Before joining the U.S. Trustee Program, Mr. Miller was an estate administrator for the U.S. Bankruptcy Court for the Eastern District of Washington.
Mr. Miller received a law degree from Gonzaga University School of Law in Spokane, a Master of Business Administration from Northwestern University School of Business in Evanston, Ill., and an undergraduate degree in mathematics from Dartmouth College in Hanover, N.H.
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 U.S. Trustee Program has 21 regions and 95 field offices. Region 18 is headquartered in Seattle, with additional offices in Spokane, Wash.; Portland and Eugene, Ore.; Great Falls, Mont.; Boise, Idaho; and Anchorage, Alaska.
Contact:Jane Limprecht, Public Information Officer
Monday, July 15, 2013 3:10 PM
Executive Office for U.S. Trustees
(202) 305-7411Patient Recruiter and Physical Therapist Sentenced in Connection <br /> with Detroit-area Medicare Fraud SchemesRead the Press Release
Miami resident Timothy Pierce was sentenced today to 48 months in prison for his participation in a fraudulent Medicare infusion scheme, and Troy, Mich., resident Jay Jha was sentenced to 27 months in prison for his participation in a separate fraudulent physical therapy scheme, announced the Departments of Justice and Health and Human Services (HHS).
U.S. District Court Judge Denise Page Hood in the Eastern District of Michigan sentenced Pierce to three years of supervised release following his prison term and ordered Pierce to pay $6.09 million in restitution, jointly with co-defendants. U.S. District Court Judge Sean F. Cox in the Eastern District of Michigan sentenced Jha to three years of supervised release following his prison term and ordered Jha to pay $772,800 in restitution.
Pierce pleaded guilty on Nov. 18, 2009, to one count of conspiracy to commit health care fraud. According to the plea documents, beginning in approximately March 2006, Pierce entered into an agreement with the owners of Dearborn Medical Rehabilitation Center (DMRC) to recruit patients for DMRC, a business that purported to provide infusion and injection therapy services to Medicare patients. Specifically, Pierce admitted that he was hired to recruit, drive and pay kickbacks to Medicare beneficiaries to induce them to visit DMRC. According to plea documents, Pierce paid the beneficiaries to sign paperwork indicating that they had received infusions and injections of specialty medications that they did not in fact receive. Pierce, who is also a Medicare beneficiary, admitted that he signed paperwork indicating that he had received infusions and injections of specialty medications that he did not receive, enabling DMRC to falsely bill for services never rendered to him. DMRC billed Medicare approximately $9.1 million while the conspiracy was in operation.
Jha pleaded guilty on Aug. 26, 2009, to conspiracy to commit health care fraud. According to information contained in plea documents, Jha, a licensed physical therapist, admitted that he began working in approximately February 2003 as a contract therapist for a co-conspirator who owned and controlled several companies operating in the Detroit area that purported to provide physical and occupational therapy services to Medicare beneficiaries. According to his plea documents, Jha admitted that he, his co-conspirator and others created fictitious therapy files appearing to document physical and occupational therapy services provided to Medicare beneficiaries, when in fact no such services had been provided. According to court documents, the fictitious services reflected in the files were billed to Medicare through sham Medicare providers controlled by co-conspirators.
Jha also admitted that during the course of the scheme he signed approximately 336 fictitious physical therapy files, indicating that he had provided physical therapy services to Medicare beneficiaries, when in fact he had not. Jha admitted that he was paid between $90 and $110 for each file he falsified. Jha also admitted that between approximately February 2003 and December 2005, he falsified physical therapy files that supported claims to the Medicare program totaling approximately $1.6 million. Medicare paid approximately $772,800 on those claims. Jha admitted that, throughout the conspiracy, he was fully aware that Medicare was being billed for physical therapy services that he falsely indicated he had performed.
These sentencings were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
The cases were prosecuted by Assistant Chief John K. Neal and Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section as well as former Special Assistant U.S. Attorney Thomas W. Beimers. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 560 individuals who collectively have falsely billed the Medicare program for approximately $1.2 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.
New York City Ambulance Companies Pay U.S. $2.85 Million<br /> to Resolve Claims for Fraudulent Medicare AppealsRead the Press Release
Metropolitan Ambulance & First Aid Corp. (now known as SEZ Metro Corp.), Metro North Ambulance Corp. (now known as SEZ North Corp.) and Big Apple Ambulance Service Inc. (formerly known as United Ambulance) have paid the United States $2.85 million to resolve false claims made to Medicare, the Justice Department announced today. The United States stipulated to the dismissal of the False Claims Act qui tam suit against the companies, including their president, Steve Zakheim.
The United States alleged that the companies and Zakheim used, or caused the use of, falsified records to appeal a Medicare program refund demand. Medicare had demanded the companies return millions of dollars they had been paid for medically unnecessary ambulance trips. Under Medicare rules, the companies could bill for these expensive non-emergency transports only if the patient could not be transported by any other means, such as by car or by wheelchair van. Medicare audited the companies’ past billings and concluded that the companies had charged Medicare tens of millions of dollars for ambulance trips that did not meet this standard. Medicare demanded a refund and afforded the companies an extensive informal and formal appeals process to prove that their billings were proper.
The government contended that, rather than contesting the refund demand fairly, the companies resorted to fraud when they could not otherwise prove an ambulance was medically needed. According to the suit, in their ensuing appeals, the companies used, and Zakheim caused the use of, hundreds of letters attesting to the need for an ambulance that were forged or otherwise purported to come from some neutral, disinterested health care provider when they in fact did not.
"Those who benefit from Medicare must play by the rules," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We will diligently protect taxpayer dollars from those who use fraud and deceit to take advantage of federal health care programs."
"Healthcare providers who seek to defraud the Medicare program by submitting false documents will be vigorously pursued and held accountable for their fraud," said U.S. Attorney Loretta E. Lynch.
This action was originally filed by Larry Kaplan, a former Chief Financial Officer for one of the companies, under the False Claims Act. The qui tam, or whistleblower, provisions of the Act permit private citizens to file suit on behalf of the United States and share in any recovery. Mr. Kaplan’s share of the settlement announced today will be $618,450.
The investigation, litigation, and resolution of these allegations resulted from a coordinated effort by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Eastern District of New York, the Department of Health and Human Services’ Office of Inspector General, and the Federal Bureau of Investigation.
The suit is United States ex rel. Kaplan v. Metropolitan Ambulance & First-Aid Corp. et al., Civil Action No. 00-3010 (E.D.N.Y.).
This settlement is part of the government’s emphasis on combating health care fraud. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover approximately $3 billion since January 2009 in cases involving fraud against federal health care programs.
Heart Device Manufacturer in Minnesota and Hospitals in Ohio & Kentucky <br /> to Pay Nearly $4 Million to Resolve Fraud AllegationsRead the Press Release
St. Jude Medical Inc., a heart device manufacturer; Parma Community General Hospital; and Norton Healthcare have paid the United States $3,898,300 to resolve false claim allegations that St. Jude paid illegal kickbacks to two hospitals to secure heart-device business, the Justice Department announced today. The government alleges the kickbacks caused false claims to be submitted to federal health care programs in violation of the False Claims Act. The kickbacks included alleged rebates that were "retroactive" and paid based on a hospital’s previous purchases of St. Jude heart-device equipment and rebates that St. Jude paid for purchases of heart-device equipment sold by its competitors to induce purchases of similar equipment from St. Jude in the future.
Under the terms of the settlement, St. Jude, headquartered in St. Paul, Minn., will pay $3,725,000. Parma Community General Hospital, located in Parma, Ohio, is paying $40,000, and Norton Healthcare in Louisville, Ky., is paying $133,300. The government asserted that Parma and Norton were recipients of improper rebates from St. Jude.
"Hospitals should base their purchasing decisions on what is in the best interests of their patients," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "We will act aggressively to ensure that choices about health care are not tainted by illegal kickbacks."
This action was initiated by the filing of an action under the False Claims Act by Jerry Hudson. Under the qui tam, or whistleblower, provisions of the Act, private citizens may bring lawsuits on behalf of the United States and share in any recovery. Mr. Hudson’s share of the settlement announced today will be $640,050.
"The Department of Justice is committed to requiring that federal healthcare monies are properly spent," said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. "This case illustrates the necessity of oversight of federal health care programs in the United States."
The settlement was the result of an investigation by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of Ohio, the Office of Inspector General at the U.S. Department of Health and Human Services, and the FBI.
This settlement is part of the government’s emphasis on combating health care fraud. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover approximately $3.0 billion since January 2009 in cases involving fraud against federal health care programs.
Fifth New Orleans Police Officer Pleads Guilty in Danziger Bridge CaseRead the Press Release
Former New Orleans Police Department (NOPD) Officer Ignatius Hills pleaded guilty today in federal court to misprision of a felony and to conspiring with fellow officers to obstruct justice by covering up a police-involved shooting that occurred on the Danziger Bridge in the days following Hurricane Katrina.
The conviction was announced today by Thomas E. Perez, Assistant Attorney General for the Civil Rights Division; Jim Letten, U.S. Attorney for the Eastern District of Louisiana; and David Welker, Special Agent in Charge of the FBI New Orleans Field Office.
On Sept. 4, 2005, Hills was one of several officers who rode in a large Budget rental truck to the Danziger Bridge, where officers engaged in two shooting incidents that left two civilians dead and four others seriously injured. According to court documents, officers first arrived on the east side of the bridge, where they fired at the group of civilians who were walking to a supermarket to get food and supplies. One of the civilians was killed, and four members of a family were severely wounded. Officers then traveled to the west side of the bridge, where they encountered Lance and Ronald Madison, who were crossing the bridge on their way to the dentistry office of one of their other brothers. An officer shot and killed Ronald Madison, a 40-year-old man with severe mental and physical disabilities. Officers then arrested Lance Madison and charged him with eight counts of attempted murder of a police officer.
Today in court, Hills admitted that he signed a sworn statement justifying Lance Madison’s arrest, even though he had no first-hand information about any wrongdoing by Madison, and even though he had concerns that Madison was being framed. Hills also admitted that he conspired with other officers and supervisors to give false statements about the shooting. During the investigation of this incident, Hills reported that he fired his handgun at a suspect who reached for a shiny object in his waistband. Today in court, Hills admitted that his initial claim was not true, and that he actually shot at a fleeing juvenile who did not reach for anything in his waistband or make any aggressive movements. Hills also admitted that he did not yell any commands or warnings, or hear any other officer do so, before he shot at the juvenile.
Additionally, Hills admitted that he attended a meeting at which an NOPD supervisor assigned to investigate the case instructed officers involved in the shooting to "make sure their stories were consistent" before giving formal statements on tape. Following this meeting, Hills gave a false statement to NOPD investigators. Sometime later, when state prosecutors called Hills to testify to a state grand jury investigating the shooting, Hills again lied about the shooting. Hills admitted today that he lied to the state grand jury when he claimed, among other things, that the civilian at whom he had shot turned toward Hills "as if he was, you know, kind of like drawing a weapon."
Hills also admitted that he knew that his fellow officers had knowingly falsified reports and given false statements, in violation of federal law, and that he failed to report those crimes.
The defendant explained that the purpose of the conspiracy he joined was to provide false and misleading information in order to ensure that the shootings on the bridge would appear to be legally justified and that the involved officers would therefore be shielded from liability. The defendant faces a possible maximum sentence of eight years in prison and a fine of $500,000.
"In the days following Hurricane Katrina, when residents of New Orleans should have been able to rely upon their city’s law enforcement officers to protect public safety, the officers involved in this incident instead violated the law and the public trust," said Assistant Attorney General Perez. "The crimes that this officer and others have admitted committing during and after the incident on the Danziger Bridge illustrate the need for systemic reform in the New Orleans Police Department."
"Today’s conviction arising out of the cover-up of the true events surrounding the unprovoked shooting of innocent citizens on the Danziger Bridge evidence our relentless pursuit of justice to hold accountable all those responsible for the injustices to which the victims were subjected," said U.S. Attorney Letten. "Just as important, we continue to fiercely defend the rights of everyone, including those most vulnerable among us, to enjoy the protection of honest, professional law enforcement."
"The FBI, along with our partners in the U.S. Attorney's Office and the Civil Rights Division, will continue to aggressively pursue any individual with culpability in this investigation," said Special Agent in Charge Welker.
Hills’ conviction today follows guilty pleas from four other former NOPD officers involved in the Danziger Bridge case. Michael Lohman, a former lieutenant, pleaded guilty to conspiring to obstruct justice, and admitted that he knew of, facilitated and participated in the creation of false reports about the shooting. Jeffrey Lehrmann, a former NOPD detective who then became an agent with Immigration and Customs Enforcement, pleaded guilty to covering up a felony, and admitted that he too participated in the cover-up of the Danziger Bridge shooting. Mr. Lehrmann admitted during his plea hearing that officers had coordinated efforts to provide false statements, and that a supervisor assigned to investigate the shooting had made up witnesses and planted evidence. In April, former NOPD Officer Michael Hunter pleaded guilty to conspiring to obstruct justice and to covering up a felony he observed while he was on the bridge on Sept. 4, 2005. Hunter admitted that he drove the Budget truck to the Danziger Bridge on the day of the shooting, and that he and other officers opened fire on civilians who did not appear to have any weapons, and who were "casually walking on the roadway" when the police arrived. Most recently, former Officer Robert Barrios pleaded guilty and admitted that he too participated in the conspiracy to cover up what had happened on the bridge.
This case, which is ongoing, is being investigated by the New Orleans Field Office of the FBI, and is being prosecuted by Deputy Chief Bobbi Bernstein and Trial Attorney Forrest Christian of the Justice Department’s Civil Rights Division, along with Assistant U.S. Attorney Julia K. Evans for the Eastern District of Louisiana.
Department of Justice and USDA Announce Dairy Workshop on June 25 in WisconsinRead the Press Release
WASHINGTON — The Department of Justice and the U.S. Department of Agriculture (USDA) announced today additional details regarding the June 25 public workshop in Madison, Wis., which will examine competition and regulatory issues in the dairy industry. The workshop will be held in the Union Theater at the University of Wisconsin – Madison, 800 Langdon Street, Madison, Wis.
This is the third in a series of five joint public workshops. The first workshop was held in March in Ankeny, Iowa, with a focus on row crops and hogs. The second workshop focused on issues in the poultry industry and was held in Normal, Ala., last month.
The workshops, which were first announced by Attorney General Eric Holder and Agriculture Secretary Tom Vilsack on Aug. 5, 2009, are the first joint Department of Justice/USDA workshops ever to be held to discuss competition and regulatory issues in the agriculture industry. The goals of the workshops are to promote dialogue among interested parties and foster learning with respect to the appropriate legal and economic analyses of these issues, as well as to listen to and learn from parties with experience in the agriculture sector. Attendance at the workshops 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.
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 will participate in a roundtable discussion to open the Wisconsin workshop. Senators Herb Kohl and Russell Feingold, Representatives Ron Kind, Steve Kagen and Tammy Baldwin, Governor Jim Doyle, and Wisconsin Agriculture Secretary Rod Nilsestuen have tentatively accepted invitations to join this roundtable discussion. Invitations have been extended to Representatives Thomas Petri and David Obey. The remaining panels will feature farmers, processors, academics and other dairy industry stakeholders. Additional details on the schedule and panelists will be provided at a later date.
The Justice Department and USDA will hold the next public workshop in Fort Collins, Colo., where the focus will be on the livestock industry. This will be followed by a workshop on margins in agriculture in Washington.
Please visit the Antitrust Division’s events website, www.justice.gov/atr/events.htm, or contact [email protected] for more information.
MEDIA CONTACTS:
U.S. Department of Justice U.S. Department of Agriculture
Office of Public Affairs Office of Communications
Gina Talamona Jim Brownlee
202-514-2007 202-720-4623
Court Rules Against Ford Motor Company’s Complaint<br /> for $445 Million in Tax Overpayment InterestRead the Press Release
A federal court in Detroit has denied Ford Motor Company’s $445 million complaint against the United States for alleged tax overpayment interest.
As explained in the court’s opinion, Ford had sent the Internal Revenue Service (IRS) a cash bond to stop the running of underpayment interest on potential corporate income tax liabilities relating to ongoing IRS audits. Ford later asked that the deposits be converted to tax payments.
The IRS eventually determined that Ford had overpaid its taxes, and was entitled to a refund. Because the IRS calculated tax overpayment interest from the date of conversion to a tax payment and not from the date of the deposit, the IRS refunded overpayment interest from the date that Ford requested that its deposits be treated as payments. Ford claimed that the interest should have been calculated from the date it originally remitted the deposits.
In granting the United States’ motion for judgment on the pleadings, Judge Patrick J. Duggan held that the IRS’s interpretation of the overpayment interest statute was reasonable and that "Ford’s challenges to the government’s treatment of its deposits fail as a matter of law."
Acting Assistant Attorney General John A. DiCicco commended trial attorney Christine S. Hooks on her handling of the case.
Arlington, Texas, Couple Sentenced for<br /> Enslaving Nigerian Woman for More Than Eight YearsRead the Press Release
An Arlington, Texas, couple was sentenced today by U.S. District Court Judge John H. McBryde for forcing a Nigerian widow to perform domestic labor for them for more than eight years. Emmanuel Nnaji, 50, a naturalized citizen of the United States was sentenced to 20 years in prison. Ngozi Ihechere Nnaji, 40, a citizen of Nigeria, was sentenced to nine years in prison. The defendants were also ordered to pay $305,957.60 in restitution.
On Feb. 2, 2010, both defendants were convicted by a Ft. Worth, Texas, jury on all charges, including conspiracy to commit forced labor, forced labor, conspiracy to harbor an alien for financial gain, harboring an alien for financial gain, document servitude and false statements to an FBI agent.
According to evidence presented at trial, the victim, a widowed mother of six children, including a chronically ill child, was recruited in Nigeria with promises that her children would be cared for in exchange for her work in the United States.
Upon arrival in the United States, the defendants confiscated the victim’s passport and never returned it. For more than eight years, the victim cared for the defendants’ children day and night, and cooked and cleaned with no days off. The defendants did not allow the victim out unsupervised; prohibited her from speaking with her children on the phone unsupervised; and forbid her to make friends or converse with the defendants’ friends. According to evidence at trial, the victim also testified that Emmanuel Nnaji also sexually assaulted her. Although the victim was promised that her family would be cared for, her family received a total of about $300 over the eight years. When the victim asked to return to Nigeria, the defendants refused. The victim was ultimately rescued with the assistance of a Catholic priest.
"The involuntary servitude and mistreatment that this victim endured is intolerable in a nation founded on freedom and individual rights," said Thomas E. Perez, Assistant Attorney General for the Justice Department’s Civil Rights Division. "The prosecution of this case demonstrates the Justice Department’s commitment to punishing those who prey upon vulnerable victims and exploit them in modern day slavery."
"The FBI is committed to aggressively pursuing and brining to justice the human traffickers who prey upon others who are only seeking to better their lives," said Special Agent in Charge Robert E. Casey Jr., FBI Dallas. "The sentencing in this case sends a strong message to those who are engaged in this heinous form of modern day slavery that this practice will not be tolerated in our community."
The case was investigated by the FBI. The case was prosecuted by Susan L. French and Michael J. Frank of the Civil Rights Division and its Human Trafficking Prosecution Unit, with assistance of Assistant U.S. Attorney J. Michael Worley of the U.S. Attorney’s Office of the Northern District of Texas. Refugee Services of Texas provided assistance to the victim following her rescue.
Thursday 3 June 2010
Statement of Attorney General Holder on the U.S.- EU and EU Member States Declaration on CounterterrorismRead the Press Release
The Council of Ministers of Interior and Justice of the European Union today adopted a U.S.- EU and EU Member States Declaration on Counterterrorism. Below is a statement from Attorney General Eric Holder, who attended the EU/G6 Conference of Interior Ministers in Italy this past weekend, on the Declaration:
"The Council’s adoption of this Declaration is a crucial step forward in our mutual fight against terrorism. I attended the Meeting of the EU/G6 Ministers of Interior in Italy last weekend, where we discussed this Declaration, and I welcome the EU’s swift action following those discussions.
"This Declaration demonstrates our joint commitment to protect our citizens from terrorism consistent with our laws, our values and our commitment to individual privacy. Our work with our EU partners to protect the security of our citizens – including through programs such as the Terrorist Finance Tracking Program and the Passenger Name Record Agreement – is critical to the success of our counterterrorism efforts.
"I look forward to continuing to work with our EU partners on these important matters."