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6 September 2011
Justice Department Resolves Lawsuit Alleging Religious Discriminaton by Henrico County, Va., Against Muslim GroupRead the Press Release
WASHINGTON – The Justice Department today announced a settlement with Henrico County, Va., resolving allegations that the county violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied the application of a Muslim organization to rezone property to construct a mosque. The settlement, which must still be approved by a federal district judge in Richmond, resolves a lawsuit between the United States and the county of Henrico.
“Religious freedom is one of our most cherished rights, and that right includes the ability to assemble and build places of worship without facing discrimination,” said Thomas Perez, Assistant Attorney General of the Civil Rights Division. “We are pleased that the county of Henrico has agreed to take steps to ensure that all people exercising this basic American right will not encounter discrimination during the zoning and land use process.”
“The law – not stereotypes or bias – should dictate whether a worship facility can be built in a community.” said Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia. “No one should be discriminated against based on their religion, and this agreement will ensure that religious freedom is upheld in Henrico County.”
The case arose from the county’s denial of a 2008 application from a Muslim organization for construction of a mosque. The government’s complaint, which was filed with the court along with a consent decree resolving the lawsuit, alleged that the county’s denial of the rezoning application was based on the religious bias of county officials and to appease members of the public who, because of religious bias, opposed the construction of a mosque. The complaint further alleged that the county treated the Muslim organization differently than non-Muslim religious groups that regularly have been granted similar rezoning requests.
As part of the settlement, the county has agreed to treat the mosque and all religious groups equally and to publicize its non-discrimination policies and practices. The county also agreed that its leaders and various county employees will attend training on the requirements of RLUIPA. In addition, the county will report periodically to the Justice Department.
RLUIPA, enacted in 2000, prohibits religious discrimination in land use and zoning decisions. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743. More information about RLUIPA, including a report on the first 10 years of its enforcement, may be found at www.justice.gov/crt/about/hce/rluipaexplain.php .
2 September 2011
Washington Man Sentenced for Racially Motivated Hate CrimeRead the Press Release
TACOMA, Wash. - The Justice Department announced today that Zachary Beck was sentenced to 51 months in prison for civil rights crimes related to his participation in a racially-motivated attack on an African-American man in Vancouver, Wash., in January 2010. Beck was also sentenced to three years supervised release. The sentencing took place in U.S. District Court for the Western District of Washington.
According to court documents, Beck and his co-conspirators, Kory Boyd and Lawrence Silk, attacked an African-American man in a Vancouver sports bar on Jan. 7, 2010, because of the man’s race. Beck, Boyd and Silk each have associated with white supremacist organizations. Beck ran for city council in Coeur d’Alene, Idaho, in 2003 under the Aryan Nations banner. On Jan. 7, 2010, Beck saw an African-American man socializing with white friends in Captain’s Sports Bar in Vancouver. Beck twice told the bartender that the man should leave or there would be trouble. When the man did not leave, Beck met Boyd and Silk outside the bar and agreed to attack the man inside. Beck led Boyd and Silk back into the bar and confronted the man, who was the only black man in the bar. Beck told the man that he should have left, and then swung his fist at the man’s head. The man successfully defended himself; however, Boyd and Silk threw bottles at the man and shouted racial epithets at him. Directly after, Beck, Boyd and Silk left the bar shouting more racial slurs and promising to return. The man whom they attacked followed them out of the bar and pursued them while calling 911. The Vancouver Police apprehended Silk, and federal authorities later charged and arrested Beck and Boyd.
“The Department of Justice is committed to aggressively prosecuting hate-fueled acts of violence,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Today’s sentence makes clear that racially-motivated attacks will not be tolerated in this country.”
“Fortunately, the victim was not badly injured,” said U.S. Attorney for the Western District of Washington Jenny A. Durkan. “Others came to his aid and together they were able to fend off the hateful attack. Hate crimes affect not just the victim. They corrode communities and send a message of fear to everyone who is labeled by the same prejudices.”
Beck waived his right to a jury, and after a trial, federal Judge Robert J. Bryan on June 7, 2011, found Beck guilty of conspiring to violate the civil rights of an African-American man; forcefully interfering with the man’s civil rights; and trying to persuade a witness to lie about the crimes. Silk pleaded guilty to Washington state charges of malicious harassment and received a two-year sentence. Boyd pleaded guilty to a federal hate crime charge and was sentenced in January 2011 to 34 months in prison.
The case was investigated by Vancouver Police and the FBI, and prosecuted by Assistant U.S. Attorney Bruce Miyake and Trial Attorney Edward Caspar from Department of Justice Civil Rights Division.
Member of Aryan Brotherhood Pleads Guilty to Hate Crime in Connection with Church Arson and Attempted Murder of Disabled African-American in TexasRead the Press Release
WASHINGTON – Steven Scott Cantrell, of Crane, Texas, pleaded guilty today to hate crime charges stemming from a series of racially-motivated arsons in December 2010, including the arson of a historic African-American church as part of an effort to murder a disabled African-American man, the Justice Department announced today.
Cantrell, 25, pleaded guilty to damaging religious property and interfering with housing rights in violation of federal hate crime laws before U.S. District Judge Robert A. Junell in federal court in Midland, Texas.
During the plea hearing, Cantrell admitted that on Dec. 28, 2010, he set fire to Faith in Christ Church, a predominantly African-American church, as part of an effort to murder a disabled African-American man who he saw passing by the church in his wheelchair. Before starting the fire, Cantrell admitted that he intentionally attempted to kill the disabled African-American man whom he believed lived at a shelter within the church, and was present when he set the fire. The man was not hurt. Cantrell ransacked the church, wrote a series of threatening and racist messages in large letters across the wall of the church next to the pastor’s office, and “tagged” the church with references to the Aryan Brotherhood.
The arson of Faith in Christ Church was part of a series of racially-motivated arsons that Cantrell perpetrated that day in his attempt to gain status with the Aryan Brotherhood of Texas. In addition to the church, Cantrell admitted that he set fire to the house of another man in the community because he believed that man to be Jewish and because he sought to injure, intimidate or interfere with that man’s right to rent or occupy that house. Cantrell also admitted to setting fire to Craig’s Gym in violation of federal arson laws. At the plea hearing, Cantrell acknowledged that he set fire to Craig’s Gym because he believed the owners served Mexican-Americans and African-American patrons and because the gym was owned by a Caucasian man married to a woman of Mexican descent. Cantrell added that he felt “disrespected” by a Caucasian man marrying a woman of Mexican descent because he believed “the white race needed to be kept pure.”
“Every person, regardless of race or national origin, should have the opportunity to practice their religion of choice without fear of threat or harm,” said Thomas E. Perez, Assistant Attorney General for Civil Rights. “The department will continue to vigorously prosecute those that commit heinous acts like this one.”
“The defendant’s cowardly acts of setting fire to a house of worship, an apartment and a gym were motivated by racial, ethnic and religious bigotry,” said John E. Murphy, U.S. Attorney for the Western District of Texas. “His conduct and motivation are deplorable and repugnant to the basic principles of our society.”
“The FBI is committed to vigorously investigating all hate crimes,” said W. Jay Abbott, FBI Acting Special Agent in Charge. “The resolution of this investigation is a demonstration of the FBI’s resolve to investigate such crimes and to be responsive to the citizens we serve in dealing with these intolerable acts. The FBI is also grateful for the professionalism and rapport which exists with local, state and other federal entities which worked in close coordination with the FBI to bring this investigation to its conclusion.”
Cantrell’s sentencing has been set for Nov. 30, 2011, at 8:30 a.m. Cantrell faces a maximum penalty of life in prison for burning the church with intent to commit murder and his other crimes.
This case was jointly investigated by the FBI, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Crane Police Department and the Texas Department of Insurance. The case is being prosecuted by Trial Attorney Victor Boutros from the Justice Department’s Civil Rights Division and Assistant U.S. Attorney John Klassen for the Western District of Texas, with the cooperation of the District Attorney for the 109th Judicial District of the State of Texas.
Louisiana Men Plead Guilty to Intimidating Students Based on RaceRead the Press Release
WASHINGTON – The Justice Department today announced that brothers Brian Wallis, 21, and James Lee Wallis Jr., 25, pleaded guilty to committing a hate crime by intentionally attempting to intimidate African-American students who were attending Beekman Junior High School in Beekman, Morehouse Parish, La. Tony L. Johnson, 30, previously pleaded guilty to the same offense.
During their respective plea hearings, each of the three defendants admitted that they hung a dead raccoon in a noose from a flagpole located in front of Beekman Junior High School. They each further admitted that they were angered by the school’s new busing policy, which had increased the number of African-American children attending the school, and that they wanted to scare the children into leaving the school.
“Racially-motivated intimidation and violence is contrary to the American ideal of freedom, and it is particularly deplorable when it targets children,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Department of Justice remains committed to prosecuting hate crimes whenever and wherever they occur.”
“All children should feel comfortable at school,” said U.S. Attorney for the Western District of Louisiana Stephanie A. Finley. “This kind of activity has no place in our educational system or in our communities. We hope this case sends a strong message that this type of activity is unacceptable and criminal.”
Sentencing for all three defendants is set for Dec. 6, 2011. At sentencing, Brian Wallis, James Lee Wallis Jr. and Johnson each face a maximum sentence of one year in prison.
This case was investigated by the FBI and is being prosecuted by Senior Litigation Counsel Mark Blumberg and Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant United States Attorney Mary J. Mudrick of the U.S. Attorney’s Office for the Western District of Louisiana.
Former Russell County, Ala., Sheriff’s Deputy Convicted for Assaulting a Man in CustodyRead the Press Release
WASHINGTON – A federal jury in Opelika, Ala., has convicted a former deputy sheriff with the Russell County, Ala., Sheriff’s Office of a civil rights offense for his role in the assault of a handcuffed man, announced the Department of Justice. Timothy Andrew Watford, 42, of Phenix City, Ala., was found guilty of willfully depriving Patrick Harrington of his constitutional rights while acting under color of law.
“When law enforcement officers abuse their power and violate the civil rights of those in their custody, they will be held accountable,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department will continue to vigorously prosecute those who cross the line to engage in acts of criminal misconduct.”
“This case would not have been successful without the courage of the investigators, the witnesses and the victim,” said George L. Beck Jr., U.S. Attorney for the Middle District of Alabama. “We are especially appreciative of Russell County Sherriff, Heath Taylor, for his prompt administrative and cooperative actions. While it is always difficult to prosecute a member of our law enforcement community, my office is dedicated to seeking justice for all.”
The guilty verdict came after three days of testimony and represented the culmination of an investigation that began in November 2010. Evidence presented at trial established that shortly before midnight on Nov. 26, 2010, Harrington was apprehended and handcuffed by bail recovery agents in Lee County, Ala. Minutes later, Watford and another Russell County officer named Kirby Dollar learned of Harrington’s apprehension and drove to his location in an unmarked police vehicle. The two men were accompanied by a Phenix City police officer named Rachel Hauser. All three officers had been off-duty attending a party at Dollar’s house.
When the officers arrived, Dollar and Watford approached Harrington, who was lying handcuffed on the ground and offering no resistance. According to all eye-witnesses, Dollar and Watford then began punching, kicking and slapping Harrington about his head and body, causing Harrington to suffer multiple lacerations, facial fractures and a ruptured eardrum. Witnesses also confirmed that the attack was entirely unprovoked.
Dollar and Watford were both indicted by a federal grand jury in March 2011. In mid-August, Dollar pleaded guilty under an agreement that capped his sentence at 57 months. During the trial, Dollar was called as a witness by the defense and told the jury that he and Watford had committed the assault together. Watford then took the stand and admitted slapping the handcuffed man twice in the face.
Watford faces a maximum penalty of 10 years in prison and a fine of up to $250,000 on the civil rights charge. A sentencing date has not been set.
The case was investigated by the Mobile Division of the FBI- Montgomery Office and the Alabama Bureau of Investigation, with assistance from the Russell County Sheriff’s Office, the Lee County Alabama Sheriff’s Office and the Columbus, Ga., Police Department. The case was prosecuted by Assistant U.S. Attorneys Nathan D. Stump and Jared H. Morris and Trial Attorney Benjamin J. Hawk of the Justice Department’s Civil Rights Division.
Five Alleged East Side Los Guada Bloods Gang Members and Associates Indicted in Arizona on Federal Racketeering and Attempted Murder ChargesRead the Press Release
WASHINGTON - Five alleged members of the violent gang known as the East Side Los Guada Bloods (East Side Bloods) have been charged in an indictment returned yesterday in Phoenix with various racketeering and attempted murder charges, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division; Acting U.S. Attorney Ann B. Scheel for the District of Arizona; Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Phoenix Division, Thomas E. Brandon; Chief Karl Auerbach, Salt River Pima-Maricopa Indian Community; Chief Frank Milstead, Mesa Police Department; and Director Robert Halliday of the Arizona Department of Public Safety.
The following defendants from Phoenix have been charged:
- Martinez Francisco Jr., 31, aka “Boych” and “B-Dog;”
- Denean Medina, 28;
- Amorette Hough, 23, aka “Ammy;”
- Timothy Reyes, 23, aka “Booma;” and
- Delola Graycene Medina, 25, aka “Lola Bug.”
The defendants are charged with various counts of conspiracy to commit murder in aid of racketeering activity, attempted murder in aid of racketeering activity, assault resulting in serious bodily injury in aid of racketeering activity, conspiracy to commit murder, assault resulting in serious bodily injury, conspiracy to make false statements in the acquisition of a firearm and false statements in the acquisition of a firearm. Francisco is currently in state custody, and Reyes is currently in tribal custody. The other three defendants were arrested on Aug. 29, 2011. Hough will appear before a U.S. Magistrate Judge in U.S. District Court in Phoenix for a detention hearing today at 11:00 a.m. MST. Denean and Delola Medina will appear for a detention hearing today at 3:45 p.m. MST.
According to the indictment, the defendants were members and associates of the East Side Los Guada Bloods gang, a violent street gang that originated in the early 1990s on the Salt River Pima-Maricopa Indian Reservation, outside of Phoenix. The East Side Bloods gang, its members and associates engaged in acts of violence including murder, attempted murder, aggravated assault, threatening and intimidating witnesses, and firearms trafficking within the territorial boundaries of the Salt River Pima-Maricopa Indian Reservation.
The indictment alleges that on July 26, 2009, the defendants brutally attacked a victim on the Salt River Pima-Maricopa Indian Reservation by physically striking and kicking the victim on the head, face and torso until the victim was unconscious. The indictment also alleges that the victim was then placed in the road, for the express purpose and intent of a vehicle running over the victim and causing death.
An indictment is merely an accusation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The following charges each carry maximum penalties of 10 years in prison: conspiracy to commit murder in aid of racketeering activities; attempted murder in aid of racketeering activity; and assault with serious bodily injury. The charge of assault with serious bodily injury in aid of racketeering activity carries a maximum penalty of 20 years in prison, and the conspiracy to commit murder charge carries a maximum penalty of life in prison. Each count of conspiracy to make false statements in the acquisition of a firearm, and false statements in the acquisition of a firearm, carries a maximum penalty of five years in prison.
The case was investigated by the ATF; the Salt River Pima-Maricopa Indian Community Police Department; the Mesa, Ariz., Police Department; the Scottsdale, Ariz., Police Department and the Arizona Department of Public Safety’s State Gang Task Force.
The case is being prosecuted by Trial Attorney Leshia M. Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Keith E. Vercauteren of the U.S. Attorney’s Office in the District of Arizona.
1 September 2011
U.S. Attorneys Paul J. Fishman and Loretta E. Lynch to Lead Attorney General’s Advisory CommitteeRead the Press Release
WASHINGTON - Today, Attorney General Eric Holder announced the appointment of U.S. Attorney for the District of New Jersey Paul J. Fishman as chair of the Attorney General’s Advisory Committee of U.S. Attorneys (AGAC). Attorney General Holder also appointed U.S. Attorney for the Eastern District of New York Loretta E. Lynch to serve as vice chair. Both appointments will become effective Sept. 7, 2011.
“U.S. Attorneys Fishman and Lynch have the expertise and dedication to lead this distinguished group as we continue to work together to enhance the department’s commitment to keeping America safe,” said Attorney General Holder. “I will be working closely with the United States Attorneys to further our law enforcement efforts to protect the people of this nation.”
U.S. Attorney Fishman was appointed to the AGAC in October 2009 and serves as vice chair. He replaces U.S. Attorney for the District of Minnesota B. Todd Jones, who was appointed acting director for the Bureau of Alcohol, Tobacco, Firearms and Explosives on Aug. 31, 2011. U.S. Attorney Lynch has served as a member of the AGAC since May 2010 and chairs the Advisory Committee’s Office, Management and Budget Subcommittee.
Attorney General Holder also thanked U.S. Attorney Jones for serving as chair of the AGAC for the past two years. “U.S. Attorney Jones’s leadership, vision and unselfish dedication have brought the U.S. Attorney community together to address a myriad of law enforcement issues. His guidance and sage counsel have been invaluable to department leadership as we work together to enforce the laws of this nation.”
The AGAC was created in 1973 to serve as the voice of the U.S. Attorneys and to advise the attorney general on policy, management and operational issues impacting the offices of the U.S. Attorneys.
Thirteen Individuals Charged with Illegal Distribution of Anabolic Steroids, Human Growth Hormones and OxycodoneRead the Press Release
MIAMI – Thirteen individuals, including five doctors, one pharmacist and one chiropractor, were charged today for their participation in the illegal distribution of pain killers, steroids and human growth hormones through “pill mills” operating in Broward, Palm Beach and Martin Counties in Florida, and through the internet, respectively. The charges in this case, dubbed “Operation Juice Doctor 2,” involve a wide-ranging scheme to illegally distribute these drugs nationwide.
The indictment, filed Aug. 31, 2011, and unsealed today, was announced by Tony West, Assistant Attorney General for the Civil Division of the Department of Justice; Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida; and Mark R. Trouville, Special Agent in Charge, Drug Enforcement Administration (DEA) Miami Field Division.
“According to the indictment unsealed today, these defendants were involved in a scheme to push dangerous drugs -- steroids, human growth hormone and oxycodone -- into the hands of buyers who lacked legitimate prescriptions,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “Sadly, the defendants include physicians who, we allege, were doctors doing harm: ignoring their oaths and obligation to put the health and safety of patients first.”
U.S. Attorney Ferrer stated, “Operation Pill Nation, Operation Snake Oil, Operation Oxy Alley, and now Operation Juice Doctor 2. In a span of just six months, we have attacked from every angle what can only be described as a homegrown prescription drug epidemic. In Operation Juice Doctor2, we have charged corrupt pharmacy and clinic owners, complicit doctors and employees, all of whom made a handsome living dealing in prescription drugs, while hiding behind a medical license. Working with our federal and local partners, we are shutting down these dangerous pill mills and internet pharmacy operations.”
DEA Special Agent in Charge Trouville added, “Today’s announcement reflects the Drug Enforcement Administration’s continued efforts to take the profit out of the illegal diversion of pharmaceutical drugs. Furthermore, we are sending the message once again to those that are still profiting and those who are considering entering this business, that we remain vigilant and aggressively pursue those conducting business outside the course of accepted medical practice.”
The 42-count indictment charges the defendants with numerous crimes, including conspiracy to distribute anabolic steroids (count 1); distribution of anabolic steroids (counts 2 through 21); conspiracy to distribute oxycodone (count 22); distribution of oxycodone (counts 23 through 25); conspiracy to distribute human growth hormone (count 26); distribution of human growth hormone (counts 27 through 41); and attempted importation of anabolic steroids (count 42).
Charged in the indictment are Peter DelToro, Pharm.D., 38, of Palm City, Fla.; Richard DelToro, 60, of Port St. Lucie, Fla.; Jaclyn Rubino, 31, of Stuart, Fla.; Pedro Carrillo, M.D., 52, of Escondido, Calif.; Jeffrey Perelman, M.D., 54, of Fort Lauderdale, Fla; Paul Joyce, 49, of Palm Beach Gardens, Fla.; Charles Cook, 50, of Palm Beach Gardens; Donald Montano, 74, of Jupiter, Fla.; Kevin Johnson, 41, of Jupiter; Craig Beaver, D.C., 47, of Lake Worth, Fla.; Alan Lefkin, M.D., 53, of Parkland, Fla.; Steven Pearlstein, M.D., 56, of Coral Springs, Fla.; and Timothy Sigman, M.D., 40, of Sebastian, Fla.
According to the indictment, Peter DelToro, Richard DelToro and Jaclyn Rubino operated Treasure Coast Specialty Pharmacy, in Jensen Beach, Fla., and distributed steroids, human growth hormone and oxycodone to individuals and clinics across the nation and abroad. Other defendants named in the indictment allegedly operated various clinics, including “anti-aging,” “hormone replacement therapy” and “pain management” clinics. The indictment alleges that the clinics employed physicians who signed prescriptions that were written by clinic operators and salespeople. The indictment further alleges that the prescriptions were issued without a physical examination of the patient, outside the usual course of professional medical practice, and not for a legitimate medical need. The prescriptions were for controlled substances and human growth hormone for unapproved uses.
The indictment also alleges that the clinics forwarded the prescriptions to Treasure Coast Specialty Pharmacy in Jensen Beach for filing and shipment directly to customers and, at times, to the clinics. According to the indictment, the pharmacy owner illegally attempted to import steroids, of the same type used to fill the clinics’ prescriptions, from China.
Researchers from the Centers for Disease Control and Prevention report that Schedule II prescription painkillers, like oxycodone, today cause more drug overdose deaths than cocaine and heroin combined. Oxycodone and other Schedule II drugs have a high potential for abuse and can be crushed and snorted, or dissolved and injected, to get an immediate high. This abuse can lead to addiction, overdose, and sometimes death.
If convicted, the defendants face a statutory maximum penalty of 10 years in prison on counts 1, 7, 8, 10-14, 17-21 and 42; five years on counts 2-6, 9, 15, 16, and 26-41; and 20 years on count 22 through 25.
Today’s case is the result of the ongoing efforts of the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
The case was investigated by the DEA with assistance from the Food and Drug Administration’s Office of Criminal Investigations and the Boca Raton Police Department. The case is being prosecuted by Trial Attorney Cindy Cho of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Ellen L. Cohen.
An indictment is only an accusation and the defendants are presumed innocent until proven guilty.
Former Columbus County, N.C., Detention Center Inmate Charged with Civil Rights Violations and Obstruction of JusticeRead the Press Release
WASHINGTON – The Justice Department today announced the unsealing of a federal indictment charging former inmate Terry Lashavious McMillian, 26, of Whiteville, N.C., with federal civil rights violations involving the assault of an inmate and related acts of obstruction of justice.
The three-count indictment, returned by a grand jury in Wilmington, N.C, on Aug. 24, 2011, charges McMillian for his role in a conspiracy and assault of an inmate during an Aug. 2, 2010, incident at the Columbus County Detention Center in Whiteville. Specifically, the indictment charges McMillian with conspiracy to deprive rights, deprivation of rights under color of law and witness tampering.
If convicted, the conspiracy and civil rights counts in the indictment each carry a maximum sentence of 10 years in prison. The witness tampering count carries a maximum sentence of 20 years. Each count also carries a maximum fine of $250,000.
This case is being jointly investigated by the Wilmington office of the FBI Charlotte Division and the North Carolina State Bureau of Investigation. The case is being jointly prosecuted by Assistant U.S. Attorney Toby W. Lathan from the U.S. Attorney’s Office for the Eastern District of North Carolina, and Trial Attorney Ryan R. McKinstry from the Civil Rights Division of the U.S. Department of Justice.
An indictment is only an accusation of crimes, and the defendant is presumed innocent unless and until proven guilty.
Former Arizona Army National Guard Member Charged with Participating in Bribery and Drug Trafficking ConspiracyRead the Press Release
WASHINGTON – A former member of the Arizona Army National Guard was charged today for his role in a widespread bribery and illegal drug trafficking conspiracy that operated from January 2002 through March 2004, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
The 10-count indictment returned today in U.S. District Court in Arizona charges Raul Portillo, 38, of Phoenix, with two counts of conspiracy, two counts of bribery, two counts of bribery involving programs receiving federal funds, two counts of Hobbs Act extortion under color of official right and two counts of possession with intent to distribute cocaine. The charges arise from Operation Lively Green, an undercover FBI investigation that began in December 2001.
According to the indictment, Portillo was a sergeant in the Arizona Army National Guard at the time he allegedly participated in the conspiracy. According to the indictment, Portillo conspired to enrich himself by obtaining cash bribes from individuals he believed to be illegal narcotics traffickers, but who were actually FBI agents. In return for the bribes, Portillo allegedly used his official position as a sergeant in the Arizona Army National Guard to assist, protect and participate in the activities of an illegal narcotics trafficking organization that was transporting and distributing cocaine from Arizona to other locations in the southwestern United States. In order to protect the shipments of cocaine, Portillo allegedly wore official uniforms and carried official forms of identification, used official vehicles, and used his official authority where necessary to prevent police stops, searches and seizures of the narcotics as he drove the cocaine shipments through checkpoints manned by the U.S. Border Patrol, the Arizona Department of Public Safety and Nevada law enforcement officers.
According to the indictment, Portillo transported cocaine on two separate occasions and, as a result, received bribe payments totaling $12,000 for the 50 kilograms of cocaine involved. According to the indictment, Portillo also accepted a $2,000 cash payment in exchange for recruiting another public official into the conspiracy.
In 2006, an arrest warrant was issued for Portillo. In May 2011, Portillo was arrested, arraigned and released on personal recognizance. He has since failed to report to Pretrial Services and repeated attempts to locate and contact him have been unsuccessful. Portillo is now considered a fugitive and anyone with information regarding his whereabouts is encouraged to contact their local FBI office.
If convicted on the conspiracy charges, Portillo faces a maximum of five years in prison. The bribery and Hobbs Act charges each carry maximum prison sentences of 20 years. The federal program bribery charges each carry a maximum penalty of 10 years in prison, as do each of the drug conspiracy and possession charges. Portillo also faces a maximum $250,000 fine for each charged count.
To date, 57 additional defendants have been convicted and sentenced on related charges as part of Operation Lively Green. An additional 14 defendants have pleaded guilty in the Western District of Oklahoma in a related investigation known as Operation Tarnish Star.
Operation Lively Green cases are part of a joint investigation being conducted by the Southern Arizona Corruption Task Force (SACTF), which includes the FBI; the Drug Enforcement Administration; the U.S. Immigration and Customs Enforcement at the Department of Homeland Security; and the Tucson, Ariz., Police Department. The Arizona Air National Guard, Air Force Office of Special Investigations, Defense Criminal Investigative Service and the Criminal Investigation Division of the Internal Revenue Service are also participating in the investigation.
The case is prosecuted by Trial Attorneys Peter Koski and Monique Abrishami of the Criminal Division’s Public Integrity Section.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless and until convicted through due process of law.
California Medical Billing Company Agrees to Pay U.S. $4.6 Million to Resolve Allegations of False Claims to Federal Health Care ProgramsRead the Press Release
WASHINGTON – Janzen, Johnston & Rockwell Emergency Medicine Management Services Inc. (JJ&R), a provider of billing services for physicians, hospitals and other health care providers, has agreed to pay the United States $4.6 million to settle allegations that it submitted false claims to Medicare and Louisiana’s Medicaid program, the Justice Department announced today. JJ&R is headquartered in El Segundo, Calif.
Today’s settlement resolves allegations that JJ&R inflated claims that it had coded on behalf of emergency room physicians in Louisiana and California. From approximately 2000 through 2007, JJ&R utilized a coding formula that had a tendency to generate claims for a marginally higher level of evaluation and management service than the physicians had actually provided. In addition, JJ&R routinely added charges to the evaluation and management claim for minor services, such as pulse oximetry, that had been provided by hospital nursing staff or other physicians.
Finally, during this time period, JJ&R often failed to comply with Medicare’s coding rules governing the submission of claims for teaching physicians, resulting in the submission of claims that were not properly payable. While these coding practices had a relatively small impact on the reimbursement of any particular claim, over time they generated significant overpayments from Medicare and Medicaid.
“Inflating individual health care claims by even small amounts can cause significant losses to Medicare and Medicaid,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “Taxpayers should not be on the hook for charges that shouldn’t have been added or claims that shouldn’t have been submitted.”
“ In Louisiana’s Middle District we are committed to using all available tools, including affirmative civil actions, to combat health care fraud,” said Donald J. Cazayoux Jr., U.S. Attorney for the Middle District of Alabama.
“The Office of the Inspector General recognizes and appreciates the importance of whistleblowers in the fight against health care fraud,” said William W. Root, Assistant Special Agent-in-Charge for the U.S. Department of Health and Human Services (HHS).
Today’s settlement resolves allegations that were the subject of a federal investigation and a lawsuit brought by Le Jeanne Harris, a former employee of JJ&R. The lawsuit was filed under the False Claims Act, which enables private persons to sue on behalf of the United States, and to receive a share of any recovery. In this case, Ms. Harris will receive $774,450.
This matter was handled by the U.S. Attorney’s Office for the Middle District of Louisiana, as well as HHS Office of the Inspector General (OIG) and the Commercial Litigation Branch - Fraud Section of the Justice Department’s Civil Division. HHS-OIG investigated the matter.
This resolution is part of the government’s emphasis on combating health care fraud and another step for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced by Attorney General Eric Holder and Kathleen Sebelius, Secretary of HHS, in May 2009. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in that effort is the False Claims Act, which the Justice Department has used to recover more than $5.9 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 more than $7.5 billion.
31 August 2011
New Mexico Farmer Sentenced to Five Years in Prison for Tax Fraud, Fraudulently Collecting Farm SubsidiesRead the Press Release
WASHINGTON – Bill Melot, a Hobbs, N.M., farmer, was sentenced to five years in prison yesterday to be followed by three years of supervised release for tax evasion, program fraud and other crimes, the Justice Department, Internal Revenue Service (IRS) and U.S. Department of Agriculture’s (USDA) Office of Inspector General announced today.
Melot was previously convicted of tax evasion, failure to file tax returns, making false statements to the USDA, and impeding the IRS following a four-day jury trial in Albuquerque, N.M. According to the indictment and evidence presented at trial and at sentencing, Melot owes the IRS more than $25 million in federal taxes and more than $7 million in taxes to the state of Texas. Melot has not filed a personal income tax return since 1986. In addition, Melot has improperly collected more than $225,000 in federal farm subsidies from USDA by furnishing false information to the agency. Specifically, Melot provided the USDA with a false Social Security number (SSN) and fictitious employer identification number (EIN) to collect federal farm aid.
According to the indictment and evidence presented at trial, Melot took numerous steps to conceal his ownership of 250 acres in Lea County, N.M., including notarizing forged deeds and titling the property in the name of nominees. The evidence also showed that Melot used false SSNs and fictitious EINs to hide his assets from the IRS. Additionally, Melot maintained a bank account with Nordfinanz Zurich, a Swiss financial institution, which he set up in Nassau, Bahamas, in 1992. Melot failed to report the Swiss bank account to the U.S. Treasury Department as required by law.
Melot was also ordered to pay $18,493,099 in restitution to the IRS and $226,526 in restitution to the USDA.
Kenneth J. Gonzales, U.S. Attorney for the District of New Mexico, and John A. DiCicco, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, commended the investigative efforts of IRS Criminal Investigation and the USDA’s Office of Inspector General, as well as Tax Division Trial Attorney Jed Silversmith and Assistant U.S. Attorney George Kraehe, who prosecuted the case. Principal Deputy Assistant Attorney General DiCicco and U.S. Attorney Gonzales also thanked the Criminal Investigation Division of the Texas Comptroller of Public Accounts for its assistance in prosecuting this matter.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/ .
Miami-Area Nurse Pleads Guilty in $25 Million Health Care Fraud SchemeRead the Press Release
WASHINGTON – Miami-area resident Farah Maria Perez, a registered nurse, pleaded guilty today for her participation in a $25 million Medicare fraud scheme involving false billings for home health services, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS).
Perez, 40, pleaded guilty before U.S. District Judge Joan A. Lenard in Miami to one count of conspiracy to commit health care fraud. She was originally charged in a February 2011 indictment.
According to plea documents, Perez worked for Florida Home Health Care Providers Inc., a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries. Perez and her co-conspirators operated Florida Home Health for the purpose of billing the Medicare program for expensive physical therapy and home health care services that were medically unnecessary and/or never provided. The medically unnecessary services were prescribed by doctors.
According to court documents, beginning in approximately January 2006 and continuing until approximately March 2009, Perez and her co-defendant nurses falsified patient files for Medicare beneficiaries to make it appear that they qualified for home health care and therapy services from Florida Home Health. Perez admitted that she knew the beneficiaries did not actually qualify for and did not receive the services. Perez and her co-defendant nurses described in nursing notes and patient files symptoms such as tremors, impaired vision, weak grip and inability to walk without assistance. Although the patients did not actually exhibit these symptoms, the symptoms were nevertheless included in patient files to make it appear that the patients were unable to self-inject insulin and were homebound, thus appearing to qualify for home health care benefits under Medicare. Perez admitted that she knew the files were falsified so that the Medicare program could be billed for medically unnecessary therapy and home health related services. As a result of Perez’s participation in the illegal scheme, the Medicare program was billed approximately $118,000 for purported home health care services that were medically unnecessary and/or never provided.
Perez also admitted that she recruited Medicare beneficiaries who would allow Florida Home Health to bill the Medicare program for home health care and therapy services that were unnecessary or never provided. Perez solicited and received kickbacks and bribes from the owners and operators of Florida Home Health in return for allowing Florida Home Health to bill Medicare on behalf of the patients she recruited. Perez knew that the patients did not qualify for the services that were billed to Medicare.
Four other co-conspirators who were charged in the February 2011 indictment for their roles in the Florida Home Health fraud scheme have pleaded guilty: Jose Nunez, M.D.; Lisandra Alonso; Luisa Morciego; and Vicente Guerra.
Sentencing for Perez is scheduled for Nov. 14, 2011.
The charge of conspiracy to commit health care fraud carries a maximum prison sentence of 10 years. The defendant also face fines and terms of supervised release, as well as forfeiture of any property or proceeds derived from her criminal activities.
Today’s charges were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; John V. Gillies, Special Agent-in-Charge of the FBI’s Miami field office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami office.
This case is being prosecuted by Trial Attorney Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Miami.
Since their inception in March 2007, Strike Force operations in nine locations have obtained indictments of more than 1,000 defendants who collectively have falsely billed the Medicare program for more than $2.3 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov .
Justice Department Reaches Agreement with Culpeper County, Virginia, on Bailout Under the Voting Rights ActRead the Press Release
WASHINGTON – The Justice Department has reached an agreement with Culpeper County, Va., that, if approved by the court, will allow for the county’s bailout from its status as a “covered jurisdiction” under the special provisions of Voting Rights Act, and thereby exempt the county from the preclearance requirements of Section 5 of the act. The agreement is in the form of a consent decree filed today in the U.S. District Court for the District of Columbia.
Under Section 5 of the Voting Rights Act, certain covered jurisdictions, determined according to Section 4 of the act, are required to seek preclearance for any changes in voting qualifications, standards, practices or procedures from the U.S. District Court in Washington, D.C., or from the U.S. Attorney General, prior to their implementation. Section 4 of the act provides that a covered jurisdiction may seek to “bailout,” or remove itself from such coverage, and therefore be exempted from the preclearance requirements, by seeking a declaratory judgment before a three-judge panel in federal district court. Such a bailout judgment can only be issued if the court determines that the jurisdiction meets certain eligibility requirements for bailout contained in the statute, including a 10-year record of nondiscrimination in voting-related actions. The act also provides that the attorney general can consent to entry of a judgment of bailout if, based upon investigation, the attorney general is satisfied that the jurisdiction meets the eligibility requirements.
Culpeper County filed its bailout action in U.S. District Court in Washington, D.C., on Aug. 16, 2011. County officials had contacted the attorney general prior to filing its action, indicating that the county was interested in seeking bailout. The county provided the Justice Department with substantial information, and the department conducted an investigation to determine the county’s eligibility. Based on that investigation, the department is satisfied that the county meets the Voting Rights Act’s requirements for bailout.
“In this case, the department carefully evaluated the information the county provided to us and conducted our own investigation, which has satisfied the department that the county is eligible for a bailout,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “I appreciate the cooperation of county officials in providing the department with substantial information, and moving toward a resolution of this matter in the way envisioned by the Voting Rights Act.”
The consent decree details the legal and factual basis for a bailout determination and, if approved, will grant the county’s request. The court will retain jurisdiction of the action for 10 years and can reopen the action upon the motion of the attorney general or any aggrieved person alleging conduct by the county that would have originally precluded the county from bailing out if it had occurred during the 10-year period preceding entry of the consent decree.
Information about bailout, the Voting Rights Act, and other federal voting laws is available on the Department of Justice website at www.justice.gov/crt/voting/. Complaints may be reported to the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931.
Justice Department Files Antitrust Lawsuit to Block AT&T’s Acquisition of T-MobileRead the Press Release
WASHINGTON – The Department of Justice today filed a civil antitrust lawsuit to block AT&T Inc.’s proposed acquisition of T-Mobile USA Inc. The department said that the proposed $39 billion transaction would substantially lessen competition for mobile wireless telecommunications services across the United States, resulting in higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives.
The department’s lawsuit, filed in U.S. District Court for the District of Columbia, seeks to prevent AT&T from acquiring T-Mobile from Deutsche Telekom AG.
“The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,” said Deputy Attorney General James M. Cole. “Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”
“T-Mobile has been an important source of competition among the national carriers, including through innovation and quality enhancements such as the roll-out of the first nationwide high-speed data network,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “Unless this merger is blocked, competition and innovation will be reduced, and consumers will suffer.”
Mobile wireless telecommunications services play a critical role in the way Americans live and work, with more than 300 million feature phones, smart phones, data cards, tablets and other mobile wireless devices in service today. Four nationwide providers of these services – AT&T, T-Mobile, Sprint and Verizon – account for more than 90 percent of mobile wireless connections. The proposed acquisition would combine two of those four, eliminating from the market T-Mobile, a firm that historically has been a value provider, offering particularly aggressive pricing.
According to the complaint, AT&T and T-Mobile compete head to head nationwide, including in 97 of the nation’s largest 100 cellular marketing areas. They also compete nationwide to attract business and government customers. AT&T’s acquisition of T-Mobile would eliminate a company that has been a disruptive force through low pricing and innovation by competing aggressively in the mobile wireless telecommunications services marketplace.
The complaint cites a T-Mobile document in which T-Mobile explains that it has been responsible for a number of significant “firsts” in the U.S. mobile wireless industry, including the first handset using the Android operating system, Blackberry wireless email, the Sidekick, national Wi-Fi “hotspot” access, and a variety of unlimited service plans. T-Mobile was also the first company to roll out a nationwide high-speed data network based on advanced HSPA+ (High-Speed Packet Access) technology. The complaint states that by January 2011, an AT&T employee was observing that “[T-Mobile] was first to have HSPA+ devices in their portfolio…we added them in reaction to potential loss of speed claims.”
The complaint details other ways that AT&T felt competitive pressure from T-Mobile. The complaint quotes T-Mobile documents describing the company’s important role in the market:
- T-Mobile sees itself as “the No. 1 value challenger of the established big guys in the market and as well positioned in a consolidated 4-player national market”; and
- T-Mobile’s strategy is to “attack incumbents and find innovative ways to overcome scale disadvantages. [T-Mobile] will be faster, more agile, and scrappy, with diligence on decisions and costs both big and small. Our approach to market will not be conventional, and we will push to the boundaries where possible. . . . [T-Mobile] will champion the customer and break down industry barriers with innovations. . . .”
The complaint also states that regional providers face significant competitive limitations, largely stemming from their lack of national networks, and are therefore limited in their ability to compete with the four national carriers. And, the department said that any potential entry from a new mobile wireless telecommunications services provider would be unable to offset the transaction’s anticompetitive effects because it would be difficult, time-consuming and expensive, requiring spectrum licenses and the construction of a network.
The department said that it gave serious consideration to the efficiencies that the merging parties claim would result from the transaction. The department concluded AT&T had not demonstrated that the proposed transaction promised any efficiencies that would be sufficient to outweigh the transaction’s substantial adverse impact on competition and consumers. Moreover, the department said that AT&T could obtain substantially the same network enhancements that it claims will come from the transaction if it simply invested in its own network without eliminating a close competitor.
AT&T is a Delaware corporation headquartered in Dallas. AT&T is one of the world’s largest providers of communications services, and is the second largest mobile wireless telecommunications services provider in the United States as measured by subscribers. It serves approximately 98.6 million connections to wireless devices. In 2010, AT&T earned mobile wireless telecommunications services revenues of $53.5 billion, and its total revenues were in excess of $124 billion.
T-Mobile, is a Delaware corporation headquartered in Bellevue, Wash. T-Mobile is the fourth-largest mobile wireless telecommunications services provider in the United States as measured by subscribers, and serves approximately 33.6 million wireless connections to wireless devices. In 2010, T-Mobile earned mobile wireless telecommunications services revenues of $18.7 billion. T-Mobile is a wholly-owned subsidiary of Deutsche Telekom AG.
Deutsche Telekom AG is a German corporation headquartered in Bonn, Germany. It is the largest telecommunications operator in Europe with wireline and wireless interests in numerous countries and total annual revenues in 2010 of €62.4 billion.
Download a copy of the Complaint (PDF)
Former Massachusetts State Senator Pleads Guilty to Wire FraudRead the Press Release
WASHINGTON - Bernard Joseph Tully, a former Massachusetts state senator, has pleaded guilty for devising a scheme to defraud a Boston-area businessman out of approximately $18,000 by falsely representing that Tully and his co-conspirator were using the funds to bribe public officials. Unbeknownst to Tully, the businessman reported Tully’s overtures to the FBI.
The guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Carmen M. Ortiz for the District of Massachusetts and Richard DesLauriers, Special Agent in Charge of the FBI’s Boston Field Office.
Tully, 84, of Dracut, Mass., pleaded guilty yesterday before U.S. District Judge Patti B. Saris to one count of wire fraud. According to court documents, Tully formerly served as the city manager for Lowell, Mass., from approximately 1979 to 1987. Prior to serving as city manager, Tully was a state senator representing Lowell and other areas.
According to information presented at the plea hearing and in court documents, the Massachusetts Registry of Motor Vehicles (RMV) determined in early 2009 that it needed to discontinue its lease for the Lowell RMV, due to lack of funds. According to court documents, Tully became aware of the possible closure of the Lowell RMV and contacted the Boston-area businessman who owned the space where the Lowell RMV was housed. Tully told the businessman that if he paid Tully, Tully would ensure a state senator would find money in order to keep the RMV in the space owned by the businessman. Later, according to court documents, Tully again contacted the businessman and told him that he need to pay Tully so that Tully could pay the public official, otherwise the RMV would have to move out of the space.
On July 3, 2009, the RMV announced it was closing the Lowell office as well as other RMV offices on July 23, 2009. Tully and a co-conspirator subsequently visited the businessman and told him that he would need to pay $20,000 to keep the RMV in Lowell. The businessman agreed that he wanted the RMV to stay, and Tully said he would start making telephone calls while his co-conspirator said he would talk to the public official.
On July 15, 2009, the businessman gave the co-conspirator a $5,000 check, which the co-conspirator cashed and gave a portion of the funds to Tully. On July 17, 2009, the businessman received a 90-day extension on the lease from the RMV to Oct. 31, 2009.
Thereafter, according to court documents, the businessman had a series of meetings and telephone conversations with Tully and his co-conspirator about securing another lease extension from the RMV. During these conversations, Tully and his co-conspirator falsely represented to the businessman that they needed additional money to make payments to various public officials in exchange for their official acts to secure the RMV’s continued presence in the businessman’s building. Between November 2009 and March 2010, the businessman, while cooperating with the FBI, paid Tully and the co-conspirator approximately $18,000 as bribe payments designed to secure the official assistance of various public officials.
In fact, Tully and his co-conspirator never paid any money to any public officials. According to court documents, Tully admitted in a May 2010 interview with FBI agents that he received approximately $12,000 in cash and checks from the businessman, and that he split the money with his co-conspirator. Tully also admitted that he had heard about the RMV’s plan to move the Lowell office out of the businessman’s office building from people who worked in the office, and that the businessman had contacted him for assistance. Tully admitted that he spoke with friends of friends of the Lowell legislative delegation about obtaining a lease extension and preventing the move of the Lowell RMV.
Tully admitted that he told the businessman that he was “throwing money around” at elected officials, but in actuality he did not. He admitted that he did this to give the businessman the impression that he, Tully, was influencing the legislative delegation.
Sentencing is scheduled for Dec. 1, 2011, at 3:00 p.m. According to the plea agreement, the government has agreed not to seek punishment beyond home confinement, 36 months of supervised release, a fine to be calculated under the U.S. Sentencing Guidelines and restitution of $18,000.
The case was investigated by the FBI, with assistance from the Massachusetts Inspector General’s Office and the Lowell Police Department. It is being prosecuted by Senior Litigation Counsel William M. Welch II and Kevin Driscoll of the Criminal Division’s Public Integrity Section, with assistance from the U.S. Attorney’s Office, Public Corruption Unit.
Florida Couple Indicted for Conspiracy to Defraud the United States and Failure to Account for and Pay over Employment TaxesRead the Press Release
WASHINGTON – Anthony Chaudhuri and Margaret Chaudhuri, of Naples, Fla. were indicted by a federal grand jury on Aug. 8, 2011, in Detroit, with one count of conspiracy to defraud the United States, 11 counts of failure to account for and pay over employment taxes and one count of corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue laws, the Justice Department and the Internal Revenue Service (IRS) announced today. The Chaudhuris appeared in U.S. District Court today for arraignment.
The indictment alleges that Anthony and Margaret Chaudhuri owned and operated a hospital inventory control software company under the name Ariel Computing and various other nominee names, including ADI. Ariel Computing was operated from various addresses in Ann Arbor, Mich. The indictment alleges that between 1996 and 2008 the Chaudhuris withheld approximately $888,353.23 in employment taxes from Ariel Computing employees, but failed to pay over to the IRS approximately $600,984.11 of these withheld taxes. Instead, the Chaudhuris used these monies on business expenses, employee salaries and personal expenses.
The indictment further alleges that between 2004 and 2007, Anthony Chaudhuri earned approximately $985,857.39 in income from Ariel Computing, yet failed to file any U.S. Individual Income Tax Return Form 1040 for the tax years 2004 through 2008, or pay any federal income tax due and owing in those years. Additionally, the indictment alleges that between 2005 and 2007, the Chaudhuris generated more than $2 million in income in the name of ADI, but failed to file any income tax return reporting that income. Instead, in an effort to obstruct and impede the due administration of the Internal Revenue laws, the Chaudhuris committed a number of corrupt endeavors, including making false statements to the IRS misrepresenting their income and the source of their income, using nominee bank accounts, issuing false and fraudulent Forms W-2 to Ariel Computing employees and failing to file individual tax returns.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.
If convicted, the Chaudhuris face a maximum of five years in prison and a $250,000 fine for the conspiracy charge and for each of the failure to account for and pay over employment tax charges and a maximum of three years in prison and a $250,000 fine for the corruptly endeavoring to obstruct or impede the due administration of the Internal Revenue laws charge.
The case was investigated by the IRS–Criminal Investigation and is being prosecuted by U.S. Department of Justice Tax Division.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax .
Alabama Woman Pleads Guilty to Filing False Tax Refund ClaimsRead the Press Release
WASHINGTON – Melinda M. Lambert, a resident of Montgomery County, Ala., pleaded guilty to one count of aiding and assisting the filing of a false tax return, the Justice Department and the Internal Revenue Service (IRS) announced today. Lambert pleaded guilty before federal Chief Magistrate Judge Susan Russ Walker in the U.S. District Court in Montgomery, Ala.
According to the court documents, Lambert was employed as a tax return preparer at Flash Tax, a tax return preparation business, from December 2004 through January 2007. During her employment at Flash Tax, Lambert prepared and filed at least approximately 400 tax returns in 2005 and 2006 and 100 tax returns in 2007. The majority of these tax returns were false. Lambert admitted that she manipulated refund amounts on clients’ tax returns by inflating or deflating specific number and/or by adding totally fictitious numbers to the return. The false returns she prepared resulted in the IRS dispersing approximately $900,000 in false tax refunds that her clients were not entitled to receive.
Lambert faces a maximum of three years in prison and a fine of $250,000.
The case was investigated by the IRS - Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Charles M. Edgar Jr. and Michael Boteler.
30 August 2011
Statement of Attorney General Eric Holder on the Resignation of U.S. Attorney for the District of Arizona Dennis BurkeRead the Press Release
WASHINGTON - Attorney General Eric Holder issued the following statement today on the resignation of U.S. Attorney for the District of Arizona Dennis Burke:
“United States Attorney Dennis Burke has demonstrated an unwavering commitment to the Department of Justice and the U.S. Attorney’s office, first as a line prosecutor over a decade ago and more recently as United States Attorney.
“Under his leadership, the office has made great progress in its pursuit of justice with the creation of special units focusing on civil rights enforcement and rule of law, as well as more robust outreach to key communities, particularly in Indian Country. The office’s quick response to the devastating shootings in January that claimed the lives of several people and critically injured Congresswoman Gabrielle Giffords was crucial in arresting and charging the alleged shooter.
“I am grateful to Dennis for his dedication and service to the Department of Justice over these many years and commend his decision to place the interests of the U.S. Attorney’s office above all else.”
Six MS-13 Gang Members in San Francisco Convicted of Racketeering ChargesRead the Press Release
WASHINGTON – After a five-month trial, a federal jury today convicted six members of La Mara Salvatrucha, or MS-13, in federal court in San Francisco of racketeering (RICO) conspiracy and related charges, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney Melinda Haag for the Northern District of California and Director John Morton of U.S. Immigration and Customs Enforcement (ICE). One defendant was acquitted of the charges against him.
The evidence presented during trial showed that the defendants were part of the violent, transnational gang known as MS-13, which claimed part of the Mission District of San Francisco as its territory and operated in the Bay Area since the 1990s. Since its inception, MS-13 members warred with rival gang members and sought to extort payments from other criminals in its territory. However, beginning in 2007, under the leadership of Marvin Carcamo, Angel Noel Guevara, and later, Moris Flores, the violence increased dramatically as the gang sought to expand its reach. The prosecution presented evidence of more than a dozen shootings and stabbings carried out by MS-13 members in the years leading up to the Oct. 22, 2008, arrest of the majority of the gang’s members, including four murders that occurred in 2008. The evidence presented at trial also showed how the defendants, with others, conspired to commit a variety of crimes to further the goals of the gang, including attacking and killing rival gang members and others who defied or challenged MS-13.
“These defendants committed senseless acts of violence and spread fear throughout San Francisco, all in the name of MS-13,” said Assistant Attorney General Breuer. “Above all else, they showed allegiance to their murderous gang. Today’s guilty verdicts, coming after five months of trial, are evidence of our relentless efforts to stop violence in its tracks, and put an end to MS-13’s brutal reign. These convictions, together with prior guilty pleas, have substantially impacted the gang’s ability to operate in San Francisco. We will continue to investigate and prosecute violent street gangs wherever we find them.”
“Today’s verdicts should send a strong message to anyone who thinks gang membership gives them the power to intimidate, threaten, steal or kill,” said U.S. Attorney Haag. “Acts of senseless violence will not be tolerated. You will be caught and you will be prosecuted to the fullest extent of the law.”
“The jury’s verdict sends a resounding message about the shared resolve of law enforcement and the public to protect our communities from the crime and violence perpetrated by transnational gangs such as MS-13,” said ICE Director Morton. “Our goal in these enforcement actions is to disrupt a gang’s illegal activities, dismantle the organization, and stop them from further organized and vicious violence. With this investigation and resulting prosecutions, we’ve crippled this criminal enterprise and defused much of the threat posed by what was once one of the Bay Area’s most dangerous street gangs.”
The defendants convicted today are Marvin Carcamo, 31, aka “Cyco” and “Psycho;” Angel Noel Guevara, 30, aka “Peloncito;” Moris Flores, 22, aka “Slow” and “Slow Pain;” Guillermo Herrera, 22, aka “Sparky” and “Shorty;” Jonathon Cruz-Ramirez, 22, aka “Soldado;” and Erick Lopez, 23, aka “Spooky.” These defendants were among an initial group of 29 individuals charged in an indictment unsealed on Oct. 22, 2008, alleging various racketeering, narcotics and firearms-related offenses.
Among other charges, Lopez was convicted of the racketeering murders of Ernad Joldic and Phillip Ng that occurred in the early morning hours on March 29, 2008. The evidence presented at trial established that Lopez, seeking to retaliate for the shooting of a fellow MS-13 member earlier that night, shot and killed Ng and Joldic, mistakenly believing that the victims were rival Norteno gang members.
Among other charges, Herrera and Cruz-Ramirez were convicted of the July 11, 2008, racketeering murder of Armando Estrada near 20th and Mission Streets. Herrera was identified as the gunman by an eyewitness, who testified that the gunman pulled down the bandana that masked his face and laughed immediately after the shooting. Cruz-Ramirez was also convicted for helping to plan the murder and serving as the getaway driver for Herrera. The evidence showed that Estrada was a “niero,” or someone who sold counterfeit identifications and other items, and that Herrera and Cruz-Ramirez killed Estrada as a result of MS-13’s attempts to extort protection money from “nieros” in the gang’s territory.
Lopez, Herrera and Cruz-Ramirez each face a mandatory minimum of life in prison on the racketeering murder convictions.
Lopez, Herrera and Cruz-Ramirez were also convicted of three racketeering-related conspiracies as well as various firearms offenses, as were the other three convicted defendants – Marvin Carcamo, Moris Flores and Angel Noel Guevara. Each of these three defendants was a leader of MS-13 in San Francisco in 2007 or 2008 and was linked to different murders committed by the gang. Carcamo and Guevara, who led the gang in 2007 until their arrest late that year, were linked to the May 2, 2007, murder of David Pollock in San Francisco, with the murder weapon recovered from Carcamo’s home. Flores, who was leader of MS-13 following the arrests of Carcamo and Guevara, was involved in Lopez’s retaliatory hunt for rival gang murders that led to the murder of Ng and Joldic. In addition, he also helped coordinate Herrera and Cruz-Ramirez’s flight from the scene of Estrada’s murder, as well as the destruction of evidence after that murder. Evidence at trial also showed that Flores ordered younger members to “hunt” for rival gang members on July 31, 2008, which led to the stabbing murder of 14-year old Ivan Miranda.
In addition, Guevara was convicted of three racketeering attempted murders that occurred Dec. 26, 2007, when he and an accomplice attacked three separate individuals with knives during a 30-minute spree of violence that began at 24th and Shotwell Streets and ended at Silver Avenue and Mission Street.
Flores, Guevara and Carcamo each face a maximum penalty of life in prison as well as a mandatory minimum of five years in prison, which would be served consecutively to the prison term on the RICO conspiracy charge. Sentencing for all six defendants is scheduled for Nov. 30, 2011, before U.S. District Judge William Alsup.
The case is being prosecuted by Assistant U.S. Attorneys W.S. Wilson Leung, William Frentzen and Christine Wong of the Organized Crime Strike Force of the U.S. Attorney’s Office for the Northern District of California, and Trial Attorney Theryn G. Gibbons of the Criminal Division’s Organized Crime and Gang Section. The case was investigated by ICE Homeland Security Investigations and the San Francisco Police Department.
Pittsburgh Crips Gang Member Sentenced to 10 Years in PrisonRead the Press Release
WASHINGTON – A Pittsburgh man was sentenced today to 10 years in prison for conspiring to conduct a racketeering enterprise related to his membership in a Pittsburgh Crips gang, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney David J. Hickton of the Western District of Pennsylvania.
Rayshawn Malachi, 26, aka “Melly Mel,” pleaded guilty on April 28, 2011, before Senior U.S. District Judge Gustave Diamond to one count of conspiracy to engage in a racketeering enterprise.
According to the guilty plea, Malachi and others participated in a pattern of racketeering activity that included multiple acts involving robberies at gun point; attempted murders; distribution of controlled substances, including cocaine, heroin and crack cocaine; and obstruction of justice and witness intimidation.
According to court documents, Malachi was a member of the Northview Heights/ Fineview Crips, a criminal street gang that operated in the Northview Heights public housing venue on the North Side of Pittsburgh. The Northview Heights Crips gang was formed around 2001-2002. In 2003, it formed an alliance with the Brighton Place Crips. The alliance expanded the gang’s drug trafficking territory, and increased the number of gang members and associates available to preserve and protect the gang’s power, territory and profits through violence.
The Brighton Place/Northview Heights Crips gang maintains exclusive control over drug trafficking in these neighborhoods through continuous violence and intimidation of rivals and witnesses. Members of the gang support each other through payment of attorneys’ fees and bonds, as well as payments to jail commissary accounts and support payments to incarcerated members’ families.
In addition, gang members have violent confrontations with members of the rival Manchester OGs and other street gangs operating in the Northside area of Pittsburgh. Members and associates obtained greater authority and prestige within the enterprise based on their reputation for violence and their ability to obtain and sell a steady supply of illegal drugs. According to court documents, the Brighton Place/Northview Heights Crips gang members identify themselves by wearing blue, flashing Crips gang hand signals, and using phrases such as “Cuz,” “C-Safe,” “Loc” and “G.K.”
According to court documents, Malachi was considered a “hustler” for the enterprise, which meant he distributed controlled substances, including heroin and crack cocaine.
Malachi is one of 26 defendants charged in February 2010 with being members or associates of the Brighton Place/Northview Heights Crips gang. This prosecution resulted from a Project Safe Neighborhoods Task Force investigation that began in 2005. There are no further pending charges against the 26 individuals originally indicted in the case.
This case is being prosecuted by Assistant U.S. Attorneys Charles A. Eberle and Troy Rive tti of the Western District of Pennsylvania and Trial Attorney Kevin L. Rosenberg of the Criminal Division’s Organized Crime and Gang Section. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the City of Pittsburgh Bureau of Police; the Allegheny County, Penn., Police Department; and the Allegheny County Sheriff’s Office.
Las Vegas Man Pleads Guilty in Connection with Fraud Scheme to Gain Control of Condominium Homeowners’ AssociationsRead the Press Release
WASHINGTON – A Las Vegas man pleaded guilty today for his role in a fraud scheme to gain control of condominium homeowners’ associations (HOA) in the Las Vegas area so that the HOAs could direct business to a certain law firm and construction company, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, Special Agent in Charge Kevin Favreau of the FBI Las Vegas Field Office and Sheriff Doug Gillespie of the Las Vegas Metropolitan Police Department.
Steven Wark, 54, pleaded guilty before U.S. District Judge Lloyd D. George in the District of Nevada to one count of conspiracy to commit mail and wire fraud.
According to the plea agreement, Wark admitted that in May 2005 he joined a fraud scheme that had operated from as early as approximately August 2003 through approximately February 2009. Wark admitted that he participated the scheme to control various HOA boards of directors so that the HOA boards could award the handling of construction-related lawsuits and remedial construction contracts to a law firm and construction company designated by Wark’s co-conspirators.
According to court documents, in order to accomplish the scheme, co-conspirators used straw purchasers to purchase mortgage loans for units within HOA communities. Wark admitted that he agreed to become a principal and managing partner of a business entity for the sole purpose of purchasing a condominium unit at the Vistana Condominiums complex in Las Vegas under the business’s name and gain an ownership interest in the Vistana HOA community. Wark admitted that he did not have any real interest in the business entity and his co-conspirators provided the down payment and monthly payments, including HOA dues and mortgage payments, for the condominium and were the true owners of the property.
Wark also admitted that he agreed to run for election to the HOA board at Vistana. Once elected to the Vistana board, Wark breached his statutory fiduciary duty to the homeowners by accepting from his co-conspirators compensation, gratuities and other remuneration that improperly influenced, or reasonably appeared to influence, his decisions, resulting in a conflict of interest. According to plea documents, Wark’s co-conspirators managed and operated the payments associated with maintaining straw properties owned and controlled by co-conspirators by running a so-called “Bill Pay Program,” by which co-conspirators funded the properties through several limited liability companies at the direction of a co-conspirator. Many of the payments were wired from California to Nevada. Wark admitted that after being elected to the Vistana board and accepting payments from his co-conspirators, he subsequently voted in a manner directed by and favorable to his co-conspirators.
Wark admitted that he also acted as the co-conspirators’ campaign consultant to help ensure the co-conspirators were elected to the HOA boards. According to plea documents, another tactic that co-conspirators used to rig certain HOA board elections was to prepare forged ballots for out-of-town homeowners and either cause them to be transported or mailed to California and thereafter to have the ballots mailed back to Las Vegas from various locations around California so as to make it appear that the ballots were completed and mailed by bonafide homeowners residing outside Nevada.
Wark admitted that he was given cash payments and received an interest in the Vistana condominium by or on behalf of his co-conspirators for his assistance in purchasing the property, obtaining HOA membership status and using his position to manipulate the HOA’s business to enrich the co-conspirators at the expense of the HOA and the bona fide homeowners.
The maximum sentence for conspiracy to commit mail fraud and wire fraud is 30 years in prison.
The case is being prosecuted by Deputy Chief Charles La Bella, Assistant Chief Michael Bresnick and Trial Attorneys Nicole H. Sprinzen and Mary Ann McCarthy of the Criminal Division' s Fraud Section. The case is being investigated by the FBI and the Las Vegas Metropolitan Police Department, Criminal Intelligence Section.
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. For more information about the task force visit: www.stopfraud.gov .
Justice Department Settles Fair Housing Lawsuit Against Mississippi NewspaperRead the Press Release
WASHINGTON – A Gulfport, Miss., newspaper has agreed to pay $15,000 to settle a lawsuit filed by the Justice Department alleging that the newspaper published advertisements for housing that discriminated against families with children, the Justice Department announced today.
The Justice Department’s lawsuit was filed in the U.S. District Court for the Southern District of Mississippi in December 2010. The lawsuit alleges, among other things, that Penny Pincher, a weekly want-ad newspaper distributed along Mississippi’s Gulf Coast, engaged in a pattern or practice of violating the Fair Housing Act or denied rights protected by the act by accepting and publishing 10 advertisements for rental housing that stated illegal preferences against families with children.
“Housing discrimination against families with children is a problem that newspapers must not perpetuate by publishing discriminatory advertising,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Today’s settlement shows our commitment to enforcement of fair housing laws that protect families with children.”
“Protecting families with children from discrimination on the basis of familial status is one of the basic tenets of the Fair Housing Act,” said John Dowdy, U.S. Attorney for the Southern District of Mississippi. “Our office is committed to ensuring that media outlets such as newspapers do not run ads which violate that principle. Aggressive enforcement of the Fair Housing Act to prevent discrimination against families with children remains a priority of my office.”
“Newspaper ads that discriminate against families with children are illegal and unacceptable,” said John Trasviña, Department of Housing and Urban Development (HUD) Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Department of Justice will ensure that publications fulfill their obligation under the Fair Housing Act to reject discriminatory advertisements that limit housing opportunities for families with children.”
This lawsuit arose as a result of complaints filed with HUD by a fair housing group and a woman with three children who was searching for housing for her family. The woman’s search led her to Penny Pincher, in which she read an ad offering a house for rent with the proviso, “no children.” She contacted the fair housing group, Gulf Coast Fair Housing Center, which conducted testing of the property advertised and monitored the advertisements published by Penny Pincher. After HUD investigated the complaints, it issued three charges of discrimination, and the matters were referred to the Justice Department.
Under the settlement, which must still be approved by the U.S. District Court, Penny Pincher will pay $10,000 in damages to Gulf Coast Fair Housing Center, $1,500 in damages to the individual affected by the ad and $3,500 in a civil penalty to the United States. The settlement also requires Penny Pincher to adopt a non-discrimination policy, to provide its employees with fair housing training, and to provide periodic reports to the Justice Department. The case continues against other defendants.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt . Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Former Washington, D.C., Tax Return Preparer Pleads Guilty to Preparing False Income Tax ReturnsRead the Press Release
WASHINGTON – Onuoha “Iggy” Nwokoro pleaded guilty in federal district court in Washington, D.C., to willfully aiding and assisting in the preparation of a false income tax return for 2004, the Justice Department and Internal Revenue Service (IRS) announced today.
According to court documents, from January 2005 through April 2007, Nwokoro operated BBC Tax Services, also known as BBC Tax and Medical Billing Services, a tax preparation business in Washington, D.C. For tax years 2004, 2005 and 2006, Nwokoro prepared and electronically filed tax returns for his clients that included fictitious business income and expenses for what purported to be a computer systems business. Nwokoro admitted to preparing at least 41 false returns, causing a tax loss of at least $532,939. According to the plea agreement, Nwokoro also admitted that his own 2004, 2005 and 2006 personal tax returns were false in that they under-reported his income by $585,537.
Judge Richard J. Leon, who is presiding over the matter, set a sentencing date of Nov. 18, 2011 at 10:00 a.m. Nwokoro faces a maximum sentence of three years in prison and a $250,000 fine.
The case was investigated by IRS - Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Jorge Almonte and Jeffrey B. Bender. The case is CR-11-104.
Additional information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax.
Department of Justice Announces New Acting Director of ATF and Senior Advisor in the Office of Legal PolicyRead the Press Release
WASHINGTON – The Department of Justice today announced the appointments of U.S. Attorney for the District of Minnesota B. Todd Jones to serve as Acting Director of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and ATF Acting Director Kenneth Melson to become Senior Advisor on forensic science in the Office of Legal Policy (OLP).
“As a seasoned prosecutor and former military judge advocate, U.S. Attorney Jones is a demonstrated leader who brings a wealth of experience to this position,” said Attorney General Eric Holder. “I have great confidence that he will be a strong and steady influence guiding ATF in fulfilling its mission of combating violent crime by enforcing federal criminal laws and regulations in the firearms and explosives industries.”
Jones will continue to serve in the capacity of U.S. Attorney when he assumes the role of ATF acting director on Aug. 31, 2011.
A veteran of the Justice Department, Jones has served as U.S. Attorney for the District of Minnesota under two presidential administrations. He first served from 1998 to 2001. He was nominated again in 2009 by President Obama and has been in that role since being confirmed that year.
In 2009, the Attorney General appointed him to serve as chair of the Attorney General Advisory Committee (AGAC), a group of U.S. Attorneys appointed to advise the Attorney General on policy, management and operational issues affecting U.S. Attorneys’ Offices throughout the country. Jones previously served as a member, vice chair and chair of the AGAC from 1999 to 2001.
During his several years as a federal prosecutor, Jones conducted grand jury investigations and has been the lead trial lawyer in many federal prosecutions involving drug trafficking, firearms, financial fraud and violent crime.
Throughout his career, Jones has served as a partner with Robins, Kaplan, Miller & Ciresi (2001-2009); a partner with Greene Espel, PLLP (2001; 1994-1997); First Assistant U.S. Attorney for the District of Minnesota (1997-1998); and Assistant U.S. Attorney (1992-1994).
Following admission to the Minnesota bar, Jones went on active duty in the U.S. Marine Corps, where he served as both a trial defense counsel and prosecutor in a number of courts martial proceedings.
Jones received his B.A. from Macalester College in 1979 and his J.D. from the University of Minnesota Law School in 1983.
Melson will join OLP on Aug. 31, 2011, in his new role as senior advisor where he will focus on issues relating to policy development in forensic science.
“Ken brings decades of experience at the department and extensive knowledge in forensic science to his new role and I know he will be a valuable contributor on these issues,” said Attorney General Holder. “As he moves into this new role, I want to thank Ken for his dedication to the department over the last three decades.”
He is a past president and distinguished fellow of the American Academy of Forensic Sciences, and currently participates on behalf of the department on the American Society of Crime Laboratory Directors/Laboratory Accreditation Board. He has been an adjunct professor at George Washington University for almost 30 years teaching both law and forensic science courses.
Melson was appointed acting director of ATF in 2009. Prior to that, he was director of the Executive Office for U.S. Attorneys and served several years in the U.S. Attorney’s Office for the Eastern District of Virginia.
Melson received his B.A. from Denison University in 1970 and his J.D. from George Washington University in 1973.
California Aftermarket Auto Lights Distributor Agrees to Plead Guilty in Price-Fixing ConspiracyRead the Press Release
WASHINGTON – A California aftermarket auto lights distributor has agreed to plead guilty today for its participation in a global conspiracy to fix the prices of aftermarket auto lights, the Department of Justice announced. Aftermarket auto lights are incorporated into an automobile after its original sale, often as repairs following a collision or as accessories and upgrades.
According to a one-count felony charge filed today in U.S. District Court in San Francisco, Sabry Lee (U.S.A.) Inc. conspired with others to suppress and eliminate competition by fixing the prices of aftermarket auto lights. The department said that Sabry Lee, a U.S. distributor for a Taiwan producer of aftermarket auto lights, participated in the conspiracy from about September 2003 until about September 2005. Under Sabry Lee’s plea agreement, which is subject to court approval, the company has agreed to pay a $200,000 criminal fine and to assist the department in its ongoing investigation into the aftermarket auto lights industry.
According to the charge, Sabry Lee and co-conspirators participated in a conspiracy in which the participants met and agreed to charge prices of aftermarket auto lights at certain predetermined levels. According to the court documents, the participants in the conspiracy issued price announcements and price lists in accordance with the agreements reached, and collected and exchanged information on prices and sales of aftermarket auto lights for the purpose of monitoring and enforcing adherence to the agreed-upon prices. The department said that the conspirators met in Taiwan, the United States and elsewhere for their discussions.
Sabry Lee is the first corporation to be charged in connection with the department’s ongoing investigation into the aftermarket auto lights industry. Three individuals have also been charged. Polo Shu-Sheng Hsu, the former president and chief executive officer of a U.S. distributor of aftermarket auto lights, entered his guilty plea on March 29, 2011, and was sentenced to serve 180 days in prison and to pay a $25,000 criminal fine. Chien Chung Chen, aka Andrew Chen, the former executive vice president of Sabry Lee, pleaded guilty to his participation in the conspiracy on June 7, 2011. He is currently scheduled to be sentenced on Dec. 13, 2011. Homy Hong-Ming Hsu was arrested at Los Angeles International Airport on July 12, 2011, and indicted on July 19, 2011. Homy Hong-Ming Hsu is the vice chairman and second highest-ranking officer of a Taiwan manufacturer of aftermarket auto lights.
Sabry Lee is charged with violating the Sherman Act, which carries a maximum penalty of a $100 million criminal fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims, if either of those amounts is greater than the statutory maximum fine.
This case is part of an ongoing joint investigation of the Department of Justice Antitrust Division’s San Francisco Office and the FBI in San Francisco. Anyone with information concerning illegal or anticompetitive conduct in the aftermarket auto lights 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.
29 August 2011
Special Master Sheila L. Birnbaum Announces Final Rule to Govern 9/11 Victim Compensation FundRead the Press Release
NEW YORK – With the 10-year anniversary of Sept. 11, 2001, approaching, September 11th Victim Compensation Fund (VCF) Special Master Sheila L. Birnbaum today announced the final rule governing the fund. Since issuing the proposed regulations in June 2011, Special Master Birnbaum has reviewed formal comments and met with, and received feedback from, hundreds of New York-area residents, workers and first responders at town hall meetings held in New York and New Jersey.
The rule is expected to be published in the Federal Register later this week, and it will go into effect when the VCF opens its doors on Monday, Oct. 3, 2011. Comprehensive information about filing claims will be available at that time.
“ As I stated when I was first appointed to this position by the Attorney General, my goal is for the Victim Compensation Fund to be fair, transparent, and easy to navigate for those who have been affected the most by the devastating events of September 11th,” said Special Master Birnbaum. “I have benefited ‒ and the fund has been made stronger ‒ from the constructive suggestions and insights of the hundreds of area residents, workers and first responders I have spoken with during this process.”
Based on a review of the comments, as well as available scientific and medical evidence, Special Master Birnbaum announced a number of changes to the regulations for the final rule, including the expansion of the geographic zone recognized as a 9/11 crash site to include the area south of Canal Street. As a result, the initial zone of coverage will include the World Trade Center (WTC), Pentagon and Shanksville, Pa., sites; the buildings that were destroyed; the area south of Canal Street in lower Manhattan; and the routes of debris removal.
The rule also clarifies the types of fees and charges that would come within the caps on amounts that a claimant’s representative may charge in connection with a claim made to the fund.
With respect to the list of physical injuries and conditions governing eligibility for awards, Special Master Birnbaum reiterated her commitment to follow available scientific and medical evidence. In an email to potential VCF claimants and interested parties, Special Master Birnbaum wrote: “After considering all of the comments and the available scientific and medical evidence, I have decided that it is important, and consistent with the intentions of Congress, that I continue to rely on the medical judgment made by the WTC Health Program.”
Birnbaum was appointed as special master by Attorney General Eric Holder on May 18, 2011, and has spent the months since her appointment meeting with the men and women who will be most affected by the VCF.
The James Zadroga 9/11 Health & Compensation Act reactivated the September 11th Victim Compensation Fund that operated from 2001-2003. The act expands the pool of claimants to include first responders and other individuals who experienced latent physical injuries associated with the attacks or with debris removal.
Individuals who wish to either read the final rule in its entirety or receive communications regarding the VCF should visit: www.justice.gov/vcf .
Ohio Homebuilder Sentenced to 22 Years in Prison for Tax Fraud, Bank Fraud, Money Laundering and Obstruction of Justice SchemesRead the Press Release
WASHINGTON - Thomas E. Parenteau of Hilliard, Ohio, was sentenced today to 22 years in prison for conspiring with his wife, his mistress and their accountant, to commit tax fraud and money laundering, the Justice Department and Internal Revenue Service (IRS) announced. Parenteau was also sentenced for conspiring to obstruct justice and tamper with witnesses.
In addition to the prison term, U.S. District Court Judge Michael H. Watson ordered that Parenteau serve five years of supervised release and pay $1,100 in special assessments. Judge Watson also ordered Parenteau to pay restitution to the IRS and to the defrauded banks and that the amount would be determined in the next 90 days. The court further ordered Parenteau to forfeit to the United States an amount of nearly $15 million, consisting of his father’s life insurance policies and two money judgments.
According to court testimony and documents presented during the eight-week trial in the Southern District of Ohio, Parenteau and his co-conspirators defrauded the IRS out of nearly $1 million and defrauded banks into lending more than $40 million to Parenteau, his nominees and others. The evidence proved that Parenteau, who operated and controlled a number of Columbus, Ohio-area businesses, and Dennis G. Sartain, Parenteau’s accountant, prepared and filed with the IRS four false income tax returns for Parenteau’s mistress, Pamela McCarty, who is the mother of his two children. The false returns generated more than $850,000 in fraudulent refunds that she ultimately gave to Parenteau.
In addition, Parenteau, his wife Marsha Parenteau, Sartain and McCarty engaged in a scheme designed to defraud banks out of millions of dollars by falsely inflating the purchase prices of the homes that Parenteau built and sold. Parenteau paid large concealed or disguised kickbacks to the buyers after their purchases. The Parenteaus, along with McCarty, also fraudulently obtained $18 million in loans against a 27,000-square-foot home, by falsely representing their income and submitting other false documents regarding the renovation to the home. Parenteau used these funds to make more than $6 million in premium payments on four life insurance policies worth $23 million on the life of Thomas Parenteau’s father, who passed away on April 4, 2009.
Finally, after learning of the IRS investigation into the tax, bank fraud and money laundering schemes, Parenteau, McCarty, Sartain and others engaged in a scheme to obstruct justice by concealing computers, creating false documents, destroying or altering evidence, tampering with a witness, lying to federal and local investigators, and otherwise obstructing justice.
“Mr. Parenteau’s sentence, and those of his co-conspirators, serve as a reminder to the public that those who illegally seek to avoid their duties and responsibilities as taxpayers will face severe consequences,” John A. DiCicco, Principal Deputy Assistant Attorney General for the Justice Department’s Tax Division said. “The Justice Department and the IRS will continue to investigate and aggressively prosecute tax cheats.”
“Schemes like this one can undermine our financial institutions, siphon taxpayer dollars and weaken our housing markets,” Acting U.S. Attorney for the Southern District of Ohio Mark T. D’Alessandro said. “The agents and prosecutors should be commended for their thorough investigation involving tens of thousands of documents and for following the paper trails that led to the unraveling of the fraud.”
“Today’s sentence marks the successful end of an investigation that uncovered a complicated fraudulent scheme that generated millions of dollars through a tangled financial web of lies,” said Tracey E. Warren, Acting Special Agent in Charge, IRS-Criminal Investigation, Cincinnati Field Office. “Investigating the financial aspects of the violations, hits criminals where it hurts the most - it deprives them of their profits and ultimately puts them out of business. Today's sentence is a direct result of the excellent partnership IRS, the Department of Justice Tax Division and the U.S. Attorney’s office has in combating violations of Federal law.”
Earlier this year, Sartain was sentenced to 131 months in prison for his conduct; Marsha Parenteau was sentenced to 33 months in prison; and McCarty was sentenced to up to 24 months in prison. The investigation led to the convictions of as many as 12 people in total.
Principal Deputy Assistant Attorney General DiCicco and Acting U.S. Attorney D’Alessandro commended the investigative efforts of the IRS agents involved in this case, as well as Tax Division Trial Attorneys Richard M. Rolwing and Sean O’Connell, who prosecuted the case. In addition, Principal Deputy Assistant Attorney General DiCicco thanked the U.S. Attorney’s Office’s Forfeiture Paralegal Michele Gwinn and the department’s Asset Forfeiture and Money Laundering Section Legal Advisor Steve Schlesinger and Senior Trial Attorney Jean Weld for providing assistance on the forfeiture claims.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax .
Nebraska Man Arrested on Wire Fraud and Obstruction of Justice ChargesRead the Press Release
WASHINGTON – An Omaha, Neb., man was charged in an indictment unsealed today for allegedly trying to solicit corrupt payments from an individual in return for a promised reduction in the individual’s ultimate prison sentence, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Austin Galvan, 29, was charged in a two-count indictment unsealed today in the District of Nebraska with one count of wire fraud and one count of obstruction of justice. He was arrested on Aug. 26, 2011, by FBI agents and made his initial appearance today before U.S. Magistrate Judge Thomas Thalken in federal court in Omaha.
According to the indictment, Galvan told an associate who was facing federal criminal charges in the District of Nebraska that he, Galvan, had a law enforcement contact in Nebraska who could secure a substantial reduction in his associate’s prison sentence in exchange for corrupt payments. Galvan, in fact, had no such contact.
According to the indictment, in conversations with his associate in May and June 2010, Galvan urged him not to cooperate with federal authorities. Galvan allegedly assured his associate that his contact was in a position to help secure a reduction in the associate’s prison sentence, provided that corrupt payments were made. Galvan also gave his associate what he claimed were official documents given to him by his purported law enforcement contact. According to the indictment, Galvan provided his associate with an audio recording of a court hearing that he claimed his purported law enforcement contact had given him. In fact, Galvan had downloaded the recording from the Public Access to Court Electronic Records system, or PACER. The indictment also alleges that Galvan provided his associate with what he claimed was the business card of a federal judge who would assist in securing the sentence reduction, when in fact no federal judge was involved.
Galvan’s associate was sentenced in March 2011 to 10 years in prison after pleading guilty to conspiracy to distribute methamphetamine and to being a felon in possession of a firearm.
An indictment is merely an allegation, and a defendant is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law.
If convicted, Galvan faces up to 20 years in prison on the wire fraud charge and up to 10 years in prison on the obstruction charge. He also faces maximum fines of $250,000 for each count.
The case is being prosecuted by Trial Attorneys Kevin Driscoll, Barak Cohen and Brian Lichter of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI.
Justice Department Settles Lawsuit with the Puerto Rico Department of Justice Regarding Employment Rights Under the ADARead the Press Release
WASHINGTON – The Justice Department today settled a lawsuit with the Puerto Rico Department of Justice (PRDOJ) to protect the rights of employees with disabilities under the Americans with Disabilities Act (ADA). The settlement resolves a complaint that the PRDOJ discriminated against an employee with a disability by failing to provide her with a reasonable accommodation, as required by the ADA.
The complaint alleged that the PRDOJ relocated an employee who uses a wheelchair to an office building that the PRDOJ knew did not provide the employee with accessible bathrooms or accessible parking. As a result, the employee was forced to seek help from others to park and enter her place of work, and she resorted to intentionally dehydrating herself at work because she could not access the office bathrooms, according to the complaint.
“The Americans with Disabilities Act protects the right of every American to work without facing these types of indignities and hurdles,” said Thomas Perez, Assistant Attorney General for the Civil Rights Division. “This settlement reinforces the Civil Rights Division’s commitment to ensuring the promise of equal employment opportunity for all individuals with disabilities.”
The settlement agreement, which must be approved by the district court in San Juan, requires the PRDOJ to pay $45,000 to the aggrieved employee; to provide training to employees on the requirements of the ADA; and to adopt policies to ensure that the PRDOJ does not require employees with disabilities to attend meetings at, or to be relocated to, an inaccessible office location.
Title I of the ADA prohibits employers, such as the PRDOJ, from discriminating against a qualified individual on the basis of disability in regard to job application procedures; hiring, advancement, or discharge; employee compensation; job training; and other terms, conditions, and privileges of employment. In addition, a n employer is required to make a reasonable accommodation to the known disability of an employee if it would not impose an “undue hardship” on the operation of the employer’s business. Reasonable accommodations are adjustments or modifications provided by an employer to enable people with disabilities to enjoy equal employment opportunities.
Those interested in finding out more about federal disability rights statutes can call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at www.ada.gov .
Justice Department Requires Divestiture in Order for General Electric Company to Proceed with its Acquisition of Converteam Group SASRead the Press Release
WASHINGTON — The Department of Justice announced today that it has reached a settlement that will require General Electric Company (GE) to divest Converteam Group SAS’s Electric Machinery Holding Company in order to proceed with its acquisition of Converteam. The department said that the transaction, as originally proposed, would substantially lessen competition in the development, manufacture and sale of low-speed synchronous electric motors (LSSMs) used in the North American oil and gas industry, resulting in higher prices, less favorable terms of sale and decreased quality of service. LSSMs drive the low-speed reciprocating compressors that oil refineries use for hydrogen compression to support various refinery operations.
The Department of Justice’s Antitrust Division filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., to block the proposed transaction. 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.
“The divestiture will preserve the benefits of competition for refinery customers in the United States,” said Sharis A. Pozen, Acting Assistant Attorney General in charge of the Justice Department’s Antitrust Division. “As originally proposed, the acquisition would have lessened the competition that currently exists among manufacturers of low-speed synchronous electric motors.”
According to the complaint, the acquisition would remove a significant competitor in the development, manufacture and sale of LSSMs to oil refinery customers in North America. GE and Converteam have consistently bid against each other on LSSM projects since 2007, benefiting customers. The department said that the proposed acquisition would eliminate many customers’ preferred alternative to GE and reduce from three to two – or for some bids, from two to one – the number of suppliers of LSSMs in North America.
The proposed settlement requires GE to divest Converteam’s Electric Machinery Holding Company, which includes its Minneapolis manufacturing facility that produces all of its LSSMs, as well as all of the tangible and intangible assets associated with the business. The department said that the divestiture will eliminate the anticompetitive effects of the acquisition in the North American market for LSSMs by establishing a new, independent and economically viable competitor.
GE is a New York corporation with its headquarters in Fairfield, Conn. GE’s subsidiary, GE Energy manufactures a full range of electric motors, including LSSMs. GE’s facility in Peterborough, Canada, manufactures LSSMs sold in North America. In 2010, GE’s worldwide revenues were $150 billion and revenues from its Peterborough large motor and generator facility were $139.1 million.
Converteam is headquartered in Massy Cedex, France. Converteam manufactures and assembles medium-voltage large electric motors in facilities located in France, the United Kingdom and the United States. In 2010, Converteam’s worldwide revenues were $1.5 billion and revenues from its Minneapolis facility were $47.7 million.
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.
Justice Department Releases Findings of Unconstittuional Conditions at Miami-Dade Jail FacilitiesRead the Press Release
WASHINGTON – Following a comprehensive investigation, the Justice Department has announced its findings that the Miami-Dade County Corrections and Rehabilitation Department (MDCR) has engaged in a pattern or practice of constitutional violations in the jail facilities operated by MDCR. MDCR operates the nation’s eighth largest jail system and holds an average of 7,000 prisoners.
The investigation, initiated on April 2, 2008, was conducted in accordance with the Civil Rights of Institutionalized Persons Act (CRIPA). CRIPA authorizes the Justice Department to seek a remedy for a pattern or practice of conduct that violates the constitutional rights of prisoners in adult detention and corrections facilities. The extensive investigation focused on the protection of prisoners from harm in all six jail facilities operated by MDCR.
The Justice Department concluded that MDCR corrections facilities violate the constitutional rights of prisoners through:
- Inadequate medical care;
- Inadequate mental health care, including improper suicide prevention;
- Use of excessive force by MDCR staff on prisoners;
- Inadequate protection from prisoner violence; and
- Environmental health and sanitation deficiencies at several of the MDCR facilities.
“Our findings show that due to the unconstitutional operation of the MDCR jail facilities, prisoners have suffered grievous harm, including death. The systemic failures of the jail facilities have resulted in prisoners living in inhumane and shocking conditions,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department is committed to remedying these deficiencies, and we look forward to working with MDCR to develop and implement comprehensive reforms.”
The comprehensive 40-page findings letter illustrates how unconstitutional conditions at the jail have resulted in serious harm to prisoners, including death. There have been at least eight prisoner suicides since 2007, one as recently as March 2011. Thousands of other prisoners have suffered, and are suffering, harm from constitutionally inadequate mental health care.
Since 2008, at least another five prisoners have died from MDCR’s failure to identify and treat prisoners withdrawing from drugs or alcohol. The Justice Department also found that MDCR fails to provide adequate intake screening, initial health assessments and acute care for newly incarcerated prisoners. In addition, MDCR neither monitors nor adequately treats prisoners with chronic illness. MDCR also has failed to provide medications to prisoners with HIV, medically necessary tests to prisoners with diabetes and hypertension, and seizure medications to prisoners with histories of seizures.
The department’s investigation also revealed that MDCR corrections officers openly engage in abusive and retaliatory conduct, frequently resulting in injuries to prisoners. In particular, there is a disturbing and distinct trend of MDCR corrections officers reacting to low-level aggression from prisoners (e.g., abusive language or passive resistance to an order) by slapping or punching the prisoner in the head and verbally provoking the prisoner to physically respond.
Inadequate supervision places staff, as well as prisoners, at risk. MDCR lacks meaningful supervision in housing units, leading to dangerous and violent conditions. In fact, in the six month period just prior to the initial Justice Department on-site investigation, MDCR reported more than 300 incidents of prisoner-on-prisoner assaults in one of its six facilities, nearly 250 such incidents in another facility, and approximately 125 such instances in yet another facility.
This investigation was conducted by the Special Litigation Section of the Civil Rights Division with the assistance of the U.S. Attorney’s Office for the Southern District of Florida. In addition, the team consulted with experts in the fields of corrections, custodial medical and mental health care, suicide prevention, and environmental health and sanitation.
Additional information about the Special Litigation Section of the Justice Department’s Civil Rights Division can be found at www.usdoj.gov/crt/split/index.html .
Justice Department Obtains $70,000 Settlement in Housing Discrimination Lawsuit Against New Orleans LandlordsRead the Press Release
WASHINGTON – The Justice Department announced today that New Orleans landlords Betty Bouchon, the Bouchon Limited Family Partnership and Sapphire Corp., have agreed to pay $70,000 in damages and civil penalties to settle a lawsuit alleging they unlawfully denied housing to African-American prospective renters at a 16-unit apartment building located in New Orleans. The settlement must still be approved by the U.S. District Court for the Eastern District of Louisiana.
“In these challenging economic times, it is more important than ever that all Americans be able to rent or buy housing they can afford, and not face discrimination because of the color of their skin,” said Thomas E. Perez, Assistant Attorney General for Civil Rights. “This settlement demonstrates the Department’s commitment to ensuring equal housing opportunity for persons in the city of New Orleans and throughout the United States.”
“The right of all of our citizens to enjoy fair and equal access to housing opportunities is guaranteed by our laws,” said U.S. Attorney for the Eastern District of Louisiana Jim Letten. “The U.S. Department of Justice is committed to fiercely protecting those rights in order to insure the quality of life all Americans deserve. I am once again grateful to Assistant Attorney General Tom Perez and the Civil Rights Division for their partnership in this and other critical endeavors in defending these precious civil rights.”
The settlement would resolve a lawsuit filed today by the department alleging that the defendants discriminated against African-Americans seeking housing at the apartment building in violation of the federal Fair Housing Act. The allegations are based on fair-housing testing conducted by the Greater New Orleans Fair Housing Action Center (GNOFHAC). The lawsuit alleges that the building manager, Betty Bouchon, failed to return phone calls from African-American testers while returning phone calls from white testers, made statements to white testers indicating that she would not rent to African-Americans, and falsely told an African-American tester than an apartment was not available for rent when in fact it was available.
Under the terms of the settlement, the defendants will pay $50,000 to GNOFHAC and a total of $20,000 in civil penalties to the United States. The settlement also requires the defendants to adopt non-discriminatory policies and procedures, keep detailed records of inquiries from prospective tenants and of rental transactions, and submit periodic reports over the four year term of the settlement. GNOFHAC filed a separate lawsuit, which is pending in the U.S. District Court for the Eastern District of Louisiana.
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.
More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals who believe that they may have been victims of housing discrimination should call the Housing Discrimination Tip Line at 1-800-896-7743, mailbox number 9998 or e-mail the Justice Department at [email protected]. Individuals who believe they may have been victims of housing discrimination may also contact HUD at 1-800-669-9777. Further information about the Fair Housing Act is available at www.usdoj.gov/fairhousing or at www.hud.gov.
26 August 2011
Solicitor General Donald B. Verrilli Appoints Sri Srinivasan as Principal Deputy Solicitor GeneralRead the Press Release
WASHINGTON – Solicitor General Donald B. Verrilli today announced the appointment Sri Srinivasan as Principal Deputy Solicitor General. The principal deputy handles some of the United States’ most important cases before the Supreme Court and serves as a key advisor to the Solicitor General.
“I am very pleased Sri will be returning to the Solicitor General’s office in this important role. He is one of the country’s leading advocates before the Supreme Court, and will bring to his new position both a deep knowledge of the Supreme Court and of the office and its responsibilities and traditions,” said Solicitor General Donald B. Verrilli Jr. “He will be an invaluable asset to the Department of Justice and to the work we do to protect and defend the interests of the American people.”
Since 2007, Srinivasan has been a partner in O’Melveny and Myers LLP in Washington, D.C., and chairs the firm’s appellate and Supreme Court practice. At O’Melveny and Myers, Srinivasan argued multiple cases before the U.S. Supreme Court spanning multiple topics including criminal law and procedure, immigration law, banking law, education law, administrative law and federal contracting law. In addition, Srinivasan also possesses a wealth of experience on the federal and state court levels addressing patent and intellectual property law, antitrust law, federal preemption and tax law.
From 2002 to 2007, Srinivasan served as assistant to the U.S. Solicitor General at the U.S. Department of Justice in Washington, D.C. From 1998 to 2002, he worked at O’Melveny and Myers. Prior to that, Srinivasan served as a U.S. Supreme Court law clerk for the Honorable Sandra Day O’Connor and for the Honorable J. Harvie Wilkinson III of the U.S. Court of Appeals for the Fourth Circuit.
Srinivasan is a lecturer at Harvard Law School, where he co-teaches a course on Supreme Court and appellate advocacy. He is a published author and has received many awards and recognitions including being named The National Law Journal’s 50 Most Influential Minority Lawyers in America in 2008.
Srinivasan earned his J.D. from Stanford Law School, his M.B.A. from Stanford Business School and his A.B. from Stanford University.
Leader of International Conspiracy Convicted of Defrauding the Military and Smuggling GoldRead the Press Release
WASHINGTON – Roger Charles Day Jr. was found guilty late yesterday of leading an international conspiracy to sell more than $4.4 million in nonconforming and defective parts to the Department of Defense (DOD).
The guilty verdict was announced today by U.S. Attorney Neil H. MacBride of the Eastern District of Virginia; Assistant Attorney General Lanny A. Breuer of the Criminal Division; Special Agent in Charge Robert E. Craig of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office; and Special Agent in Charge Edward T. Bradley of the DCIS Northeast Field Office.
After a nine-day trial, Day, 47, formerly of Long Valley, N.J., was found guilty by the jury on all counts. Day was charged in July 2008 with conspiracy to commit wire fraud, wire fraud, conspiracy to engage in international money laundering, and conspiracy to smuggle gold out of the United States. Day was extradited from Mexico in December 2010. Day’s sentencing is scheduled for Dec. 15, 2011.
“The evidence showed that Mr. Day, a serial criminal, used other people like commodities to aid and assist his criminal enterprise,” said U.S. Attorney MacBride. “He sent the military bogus parts to critical application items, which were essential to ensuring the performance of our warfighters and the safety of our military personnel. The verdict shows that criminals such as Mr. Day will be brought to justice even when they orchestrate complex crimes.”
“Mr. Day masterminded a sophisticated and dangerous conspiracy to profit from the sale of defective parts to the U.S. military,” said Assistant Attorney General Breuer. “He foolishly put our nation’s security at risk for the sake of personal riches. Yesterday, a Richmond jury convicted Day for his cowardly crimes, and now he faces the prospect of significant prison time.”
“Over the past two decades, Roger Day has perpetrated a number of schemes in attempts to defraud the Department of Defense,” said DCIS Special Agents in Charge Craig and Bradley in a joint statement. “Yesterday’s guilty verdict on all counts brings justice to bear on his criminal activity once again. It is regrettable that even at a time when this country continues to fight terrorism in a hostile environment overseas, individuals such as Day are willing to attempt to enrich themselves through corrupt activity, at the expense of our brave men and women in the Armed Forces. The Defense Criminal Investigative Service stands committed to aggressively investigate these crimes and to support their prosecution to the fullest.”
According to the evidence at trial and court documents, over a four-year period Day led a conspiracy to bid on and win contracts to provide parts to the U.S. military through the Defense Logistics Agency (DLA), including through the DLA’s Defense Supply Center in Richmond, Va. The parts included “critical application items,” which are essential to weapons system performance or operation or to the preservation of life or safety of operation personnel. Under DOD’s procurement procedures, contractors were permitted to submit electronic invoices upon shipment of the needed parts, and were paid electronically by the Defense Finance and Accounting Service.
In the course of the scheme, Day and other conspirators, operating in the United States, Canada, Mexico and Belize, formed at least 18 separate companies that posed as legitimate contractors and collectively used a computer program to win nearly 1,000 lucrative contract awards for the various companies. Day and his conspirators then shipped defective parts to the DOD on more than 300 of those contracts, receiving more than $4.4 million in payment on parts that Day purchased for less than $200,000. In all known cases, the parts sent by Day and his conspirators could not be used for their intended purpose.
Day and his co-conspirators compounded the fraud by concealing their identities through the use of multiple nominee companies and by assuming others’ identities to operate the companies. When DOD requested proof that the companies had purchased and intended to supply the correct parts from approved manufacturers, Day and others submitted fabricated documents that falsely represented that the correct parts had been purchased. When DOD debarred several of the companies from doing further business with the military, Day directed his conspirators to discontinue bidding through those companies and instead formed and used new companies.
According to evidence presented at trial, to conceal the proceeds of the scheme and to prevent recovery, Day directed his conspirators to transfer the scheme’s proceeds to offshore bank accounts and ultimately to purchase more than 3,500 ounces (more than $2.2 million) in gold bars and coins. Day further directed his conspirators to bring the gold bars and coins to his residence in Lo De Marcos, Mexico. On one occasion he directed them to hide the gold bars in the modified bumper of a 1979 Toyota LandCruiser and on another occasion in the rear hatch door panel of a 1971 Austrian Pinzgauer military transport vehicle.
At sentencing, Day faces a maximum of 20 years in prison for each count of conspiracy to commit wire fraud and each count of wire fraud, 10 years in prison for each count of conspiracy to engage in international money laundering, and five years in prison for each count of conspiracy to smuggle gold out of the United States.
Prior to Day’s trial, five defendants in this conspiracy pleaded guilty. Nathan Francis Victor Carroll was sentenced on Nov. 8, 2007, to 94 months in prison and was ordered to pay nearly $3.7 million in restitution. Gregory Allen Stewart was sentenced on April 29, 2008, to 75 months in prison and was ordered to pay nearly $3.7 million in restitution. Susan Crotty Neufeld was sentenced on May 14, 2008, to five years of probation and ordered to pay $47,600 in restitution for the gold coins she received. Juerg Mehr was sentenced to five years of probation on March 27, 2009. Glenn Teal was sentenced on Sept. 22, 2009, to 90 days in prison.
This case was investigated by DCIS, with assistance from the Defense Contract Audit Agency. Assistant U.S. Attorneys John S. Davis and Elizabeth C. Wu of the Eastern District of Virginia and Special Assistant U.S. Attorney and Trial Attorney Ryan S. Faulconer of the Criminal Division’s Fraud Section prosecuted the case. The Criminal Division’s Office of International Affairs provided assistance.
Justice Department Settles Allegations of Immigration-Related Employment Discrimination Against Kinro Manufacturing Inc.Read the Press Release
WASHINGTON – The Justice Department today reached a settlement agreement with Kinro Manufacturing Inc. in Goshen, Ind., resolving allegations that the company engaged in a pattern or practice of discrimination against work-authorized non-citizens in the employment eligibility verification process. The company, a manufacturer of components for recreational vehicles and manufactured homes, is a subsidiary of Kinro Inc., which is wholly owned by White Plains, N.Y.-based Drew Industries Inc.
According to the department’s findings, the company subjected newly hired non-U.S. citizens to excessive demands for documents issued by the Department of Homeland Security in order to verify their employment eligibility, but did not require U.S. citizens to show any specific documentation . The charging party, a lawful permanent resident, filed his charge of discrimination after he was required to provide additional proof of his employment eligibility not required by law before he could begin work at the company. The Immigration and Nationality Act’s (INA) anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the hiring and employment eligibility verification process based on their citizenship status or national origin.
Under the terms of the settlement agreement, Kinro Manufacturing will alter its practices to ensure that citizens and non-citizens are treated equally in the employment eligibility verification process, pay a $25,000 civil penalty and $10,000 in back pay to the injured party. Kinro Manufacturing has also agreed to train its human resources personnel about employers’ responsibilities to avoid discrimination in the employment eligibility verification process, to produce Forms I-9 for inspection and to provide periodic reports to the department for one year.
“Federal law protects people who are authorized to work in the United States from facing barriers and discrimination when they are seeking employment,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “We are pleased to have reached a settlement in this matter, and we look forward to partnering with other employers to ensure they are in compliance with their obligations under federal law.”
The Civil Rights Division’s Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA, which protects work authorized individuals against discrimination in hiring, firing and recruitment or referral for a fee on the basis of citizenship status and national origin. The INA also protects all work-authorized individuals from discrimination in the employment eligibility verification process and from retaliation.
The United States was represented in this matter by Ronald Lee, OSC Trial Attorney, and German Bonilla, OSC Equal Opportunity Specialist.
For more information about protections against employment discrimination under federal immigration law, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TDD for hearing impaired), OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TDD for hearing impaired), or 202-616-5594; e-mail [email protected]; or visit OSC’s website at www.justice.gov/crt/about/osc.
Justice Department Files Lawsuit Alleging Religious Discrimination by City of Lilburn, Georgia, Against Muslim GroupRead the Press Release
WASHINGTON – The Justice Department filed a complaint today against the city of Lilburn, Ga., alleging that the city violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it rejected the Dar-E-Abbas Shia Islamic Center’s requests for rezoning to construct a mosque. Both parties have agreed to a consent decree that will be filed on Aug. 29, 2011.
The city twice rejected the Islamic Center’s applications to rezone property it owned to build a mosque in November 2009 and December 2010. The government’s lawsuit alleges that the city’s denials of the rezoning applications were based on the religious bias of city officials and to appease members of the public who opposed the construction of a mosque because of religious bias. The complaint further alleges that the city treated the Islamic Center differently than it treated non-Muslim religious groups that regularly have been granted similar rezoning requests.
The department notified the city of its intention to file a lawsuit for violations of RLUIPA in June 2011, and the city and the United States have been engaged in pre-suit negotiations to settle the lawsuit since that time. On Aug. 16, 2011, the city approved rezoning for the Islamic Center that was substantially similar to the rezoning request the Islamic Center made in 2010.
“Religious freedom is among our most fundamental rights. Under federal law, cities may not use their zoning laws to discriminate against religious groups seeking to build places of worship,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The department acknowledges and commends the city’s decision to ultimately approve the rezoning, and it is pleased that the city has agreed to enter into a decree with the United States that helps ensure that freedom of religion in the United States is a reality for persons of all faiths.”
U.S. Attorney for the Northern District of Georgia Sally Quillian Yates said, “Religious freedom requires that local government decisions impacting the exercise of that freedom be free of discrimination. The city of Lilburn twice failed to approve rezoning permits to allow building a mosque, and the complaint alleges that the rejection was because the applicants are Muslims. We are pleased that the city is settling the lawsuit and that the rezoning issue is being resolved.”
Under the agreement, the city may not impose different zoning or building requirements on the Islamic Center or other religious groups, and will publicize its non-discrimination policies and practices. The city also agreed that its leaders, managers and certain other city employees will attend training on the requirements of RLUIPA. In addition, the city will adopt new procedures that clarify its complaint process for zoning and permitting decisions regarding houses of worship, and will report periodically to the Justice Department.
RLUIPA, enacted in 2000, prohibits religious discrimination in land use and zoning decisions. Persons who believe that they been subjected to religious discrimination in land use or zoning may contact the Housing and Civil Enforcement Section of the Justice Department’s Civil Rights Division at 1-800-896-7743. More information about RLUIPA, including a report on the first 10 years of its enforcement, may be found at www.justice.gov/crt/about/hce/rluipaexplain.php .
Florida Owner of Construction Business Sentenced to 60 Months in Prison for Employment Tax FraudRead the Press Release
WASHINGTON - Richard Rosaire Routhier of Lake Worth, Fla., was sentenced to 60 months in prison and ordered to pay $1,243,574 in restitution to the Internal Revenue Service (IRS), the Justice Department and the IRS announced today. On April 25, 2011, Routhier pleaded guilty to a one-count information charging him with conspiring to defraud the IRS. According to the information, Routhier and others conspired to defraud the United States and unlawfully enrich themselves by paying employees in cash and not withholding and paying over employment taxes to the U.S. Treasury.
According to court documents, Routhier owned and operated Drymension Inc., a custom drywall installation and framing contracting company in Lake Worth. From 2002 through 2008, the defendant caused Drymension checks to be issued to several shell corporations. These entities, while purporting to be legitimate subcontractors, existed only on paper and did not do any work for Drymension. The checks written to shell corporations totaled approximately $9,132,516. The checks were cashed at local check cashing stores and Routhier used the cash to pay Drymension employees. Routhier neither withheld from the cash wages nor paid over to the IRS the employment and income taxes as required by law.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and John A. DiCicco, Principal Deputy Assistant Attorney General for the Department of Justice, Tax Division, thanked the IRS Special Agents who investigated this case and Tax Division Trial Attorneys Matthew J. Mueller, Jason H. Poole and Assistant Chief Gregory E. Tortella who prosecuted the case.
Department of Justice Will Not Challenge the Producers Guild of America's Proposed Use of Certification MarkRead the Press Release
WASHINGTON – The Department of Justice announced today that it will not challenge the Producers Guild of America’s proposed use of a voluntary certification system for film producers. Based on the representations made by the Guild, the department said that the proposed voluntary certification system is unlikely to reduce competition among producers or film studios for producer services and could provide clarity to the film industry and the public.
The Department of Justice’s position was stated in a business review letter to counsel for the Guild from Sharis A. Pozen, Acting Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.
With this certification, the Guild aims to distinguish those who perform what it considers to be the full range of producer’s duties on a film from those financiers, actors, lawyers or others in the entertainment industry who may bargain for a generic producer credit in return for their services. The Guild proposes using the certification “p.g.a.” after a person’s name in the work’s credits to clarify who performed the producing functions on a film as defined by the Guild’s specifications. According to the Guild, a producer who earns the “p.g.a.” certification will have been involved in all phases of development of a work, from its conceptual stage all the way through post-production and marketing.
“The Producers Guild’s certification program may benefit the film industry and the public by providing a way to discern who performed the full range of producer functions on a film,” said Acting Assistant Attorney General Pozen. “The Guild’s certification program may make it easier to identify some of the key executives in bringing a film to theaters.”
Based on the representations and information provided by the Guild, the department determined that the Guild’s proposal is not likely to harm competition in the provision of producer services. Participation in the certification program is voluntary for both producers and movie studios, and the certification program does not restrain in any way the ability of studios to hire producers without “p.g.a” certification or of producers without certification to work in the film industry.
Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided. The department reserves its right to challenge the proposed action under the antitrust laws if it produces anticompetitive effects.
A file containing the business review request and the department’s response may be examined in the Antitrust Division’s Antitrust Documents Group, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530. After a 30-day waiting period, the documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the Business Review Procedure.
Bridgeport, Conn., Man Admits to Participating in the Murder of Three Individuals in 2005Read the Press Release
WASHINGTON – Azikiwe Aquart, also known as “Z” and “Ziggy,” pleaded guilty today in Bridgeport, Conn., to three counts of murder in aid of racketeering stemming from his role in the murder of three Bridgeport residents in August 2005, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney David B. Fein for the District of Connecticut.
Azikiwe Aquart, 31, of Bridgeport, pleaded guilty before U.S. District Judge Stefan R. Underhill.
According to court documents, statements made in court and evidence introduced during Azibo Aquart’s trial in the spring of 2011, Azibo Aquart, who is Azikiwe Aquart’s brother, was the founder and leader of a drug trafficking group that primarily sold crack cocaine out of an apartment building located at 215 Charles Street in Bridgeport. Azibo Aquart and his associates participated in acts of violence, such as threats and assaults, to maintain their control over the group’s drug distribution activities at the Charles Street Apartments. In the summer of 2005, Azibo Aquart and his associates became involved in a drug trafficking dispute with Tina Johnson, a resident of 215 Charles Street who sometimes sold smaller quantities of crack cocaine without the approval of Azibo Aquart. On the morning of Aug. 24, 2005, Azibo Aquart, Azikiwe Aquart and others entered Apartment 101 at 215 Charles Street and murdered Tina Johnson, 43, her boyfriend James Reid, 40, and friend Basil Williams, 54. The three victims were bound with duct tape and brutally beaten to death with baseball bats.
Today, Azikiwe Aquart specifically admitted that he had agreed to participate in what he believed would be a robbery with his brother and others and, after entering the apartment he murdered James Reid, while other participants in the crime murdered Tina Johnson and Basil Williams.
During the trial of Azibo Aquart, in addition to witness testimony, the government offered extensive forensic evidence gathered from the apartment, including fingerprints and evidence that contained DNA from the Aquarts and others.
Judge Underhill has scheduled Azikiwe Aquart’s sentencing for Nov. 14, 2011, at which time Aquart faces a mandatory life prison term on each of the three counts of murder in aid of racketeering.
On May 23, 2011, after a month-long trial, a federal jury in New Haven, Conn., found Azibo Aquart guilty of the murders of Johnson, Reid and Williams. On June 15, 2011, the jury unanimously determined that Azibo Aquart should be sentenced to death for committing both the racketeering murders and drug-related murders of Johnson and Williams, but could not reach a unanimous decision as to an appropriate penalty, life in prison or death, for the racketeering murder and drug-related murder of Reid.
U.S. District Judge Janet Bond Arterton will schedule a sentencing date for Azibo Aquart after the submission of post-trial motions.
This case was investigated by the FBI, Bridgeport Police Department, Connecticut State Police, Connecticut Department of Correction’s Intelligence Unit, ICE Homeland Security Investigations, U.S. Marshals Service, Bridgeport States Attorney’s Office and U.S. Attorney’s Office.
This case is being prosecuted by Assistant U.S. Attorneys Tracy L. Dayton, Peter D. Markle, Alina P. Reynolds of the District of Connecticut and Trial Attorney Jacabed Rodriguez-Coss of the Capital Case Unit of the Department of Justice’s Criminal Division.
Barrio Azteca Gang Member Extradited from Mexico to the United States to Face Charges Related to U.S. Consulate Murders in Juarez, MexicoRead the Press Release
WASHINGTON –Miguel Angel Nevarez, aka “Lentes” and “94,” a member of the Barrio Azteca (BA) gang, has been extradited to the United States from Mexico to face a variety of charges including those related to his alleged participation in the March 13, 2010, murders of three individuals with ties to the U.S. Consulate in Ciudad Juarez, Mexico, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division, U.S. Attorney John Murphy of the Western District of Texas, Assistant Director Kevin Perkins of the FBI and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).
Nevarez, 30, arrived in the United States yesterday and made his initial appearance today before a U.S. Magistrate Judge in the Western District of Texas (El Paso Division). Nevarez had been in the custody of Mexican authorities pending extradition since his arrest on Oct. 30, 2010.
On March 2, 2011, Nevarez and 34 co-defendants were charged in an a third superseding indictment returned by a federal grand jury in El Paso with conspiracy to commit racketeering, drug distribution, drug importation and money laundering. The indictment also charges Nevarez with conspiracy to commit murder in a foreign country, murder in aid of racketeering activity and federal firearm charges, based on the March 13, 2010, murders in Juarez, Mexico, of U.S. Consulate employee Leslie Ann Enriquez Catton, her husband Arthur Redelfs and Jorge Alberto Salcido Ceniceros, the husband of a U.S. Consulate employee.
The Department of Justice expresses its gratitude and appreciation to the government of Mexico for its cooperation and assistance in the apprehension and extradition of Nevarez.
“Mr. Nevarez is charged with participating in the senseless murders of three individuals with ties to the U.S. consulate in Ciudad Juarez,” said Assistant Attorney General Breuer. “Today’s extradition is a sign of the sustained commitment of the Justice Department and our Mexican law enforcement partners to seeing justice served, and to ending the cycle of violence that gangs like Barrio Azteca cause on both sides of the border.”
“The extradition of Nevarez is another big step in our efforts to bring to justice those accused of the murders of Ms. Enriquez, her husband Mr. Redelfs, and Mr. Salcido,” stated U.S. Attorney Murphy. “According to the indictment, these wanton acts of violence were part of a pattern and practice of the Barrio Azteca which engaged in scores of murders in furtherance of their racketeering enterprise. We appreciate all of the assistance provided by the government of Mexico during the investigation and prosecution of this case. We will vigorously pursue prosecution of all of the defendants named in this indictment and look forward to the continuing cooperation of our partners in Mexico.”
“ The FBI appreciates the continued cooperation of our counterparts in Mexico in this endeavor to bring justice for the families who lost loved ones,” said FBI Assistant Director Perkins. “Working with our local, state, federal, and international law enforcement partners is an important and effective way to combat the violence perpetrated by organized criminal enterprises, and individuals such as Mr. Nevarez.”
“DEA has and will continue to pursue the Barrio Azteca Gang, which is responsible for ruthless violence in Mexico and the United States,” said DEA Administrator Leonhart. “Miguel Angel Nevarez now faces justice in America for his alleged crimes, including his role in the senseless murders of U.S. citizens and those who protect and serve our country. Nevarez’s extradition demonstrates our strong partnership with the government of Mexico and our shared commitment to combat drug trafficking while protecting citizens on both sides of the border.”
According to the indictment, Nevarez was a member or associate of the Barrio Azteca criminal enterprise, which began in the late 1980s as a violent prison gang and has expanded into a transnational criminal organization. The BA is primarily based in West Texas; Juarez, Mexico; and throughout state and federal prisons in the United States and Mexico. The gang has a militaristic command structure and includes captains, lieutenants, sergeants and soldiers – all with the purpose of maintaining power and enriching its members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder.
To increase its power and influence, the indictment alleges that the BA formed an alliance with the Vicente Carrillo-Fuentes (VCF) drug trafficking organization in Mexico. As part of this alliance, the BA conducts enforcement operations against VCF rivals and the VCF provides illegal drugs to the BA at discounted prices.
The indictment alleges a variety of criminal acts committed by members and associates of the BA since Jan. 1, 2003, including drug trafficking, extortion, money laundering, kidnapping and murder.
All but four of the 35 individuals charged in the third superseding indictment are currently in custody in the United States or Mexico. Eduardo Ravelo aka “Tablas,” Luis Mendez aka “Alex,” April Cardoza and Yolanda Barba Chavira aka “Yoli” are currently at large. The United States has filed provisional arrest warrants with the government of Mexico for the arrest of Ravelo and Mendez in connection with this case. Ravelo is currently one of the FBI’s Top Ten Most Wanted Fugitives, and the FBI is offering a reward of up to $100,000 for information leading directly to his arrest.
An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, Nevarez faces a maximum penalty of life in prison.
The case is being prosecuted by Trial Attorneys Joseph A. Cooley from the Criminal Division’s Organized Crime and Gang Section and Brian Skaret of the Criminal Division’s Human Rights and Special Prosecutions Section and attorneys from the U.S. Attorney’s Office for the Western District of Texas. The Criminal Division’s Office of International Affairs provided significant assistance in the extradition. The U.S. Attorney’s Office for the District of New Mexico also provided assistance in this case, which was investigated by the FBI and DEA.
Arkansas Man Pleads Guilty to Civil Rights Offenses Related to Firebombing of Mixed-Race Couple’s HomeRead the Press Release
WASHINGTON - Jason Walter Barnwell, 37, of Evening Shade, Ark., pleaded guilty in U.S. District Court in Little Rock, Ark., to charges related to his involvement in the Jan. 14, 2011, racially motivated firebombing of the home of a mixed-race couple in Hardy, Ark. Barnwell pleaded guilty to one count of civil rights conspiracy and one count of use of fire during the commission of a felony in connection with the incident. Barnwell also pleaded guilty to one count of possession of a firearm by a convicted felon for illegally possessing a firearm on March 16, 2011, the Department of Justice announced today.
Barnwell, along with Gary Dodson, 32, of Waldron, Ark.; Jake Murphy, 19, also of Waldron; Dustin Hammond, 20, of Hardy; and Wendy Treybig, 31, of Evening Shade, were indicted in April 2011 by a federal grand jury on civil rights charges and other federal charges stemming from their participation in the racially motivated firebombing and subsequent attempt to obstruct a federal investigation.
During the plea proceedings, Barnwell admitted that on the night of Jan. 14, 2011, while at a party at his house, he, Murphy, Hammond and Dodson devised a plan to firebomb the victims’ house. Thereafter, all four men drove from Barnwell’s residence to the victims’ house in Hardy. When they arrived, Barnwell, Murphy and Hammond constructed three Molotov cocktails and threw them at the house. The victims’ house sustained some damage; however, the victims were not injured. Barnwell also admitted to illegally possessing a firearm after he had been convicted of a felony.
“We simply will not tolerate racially-motivated violence in this country,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The Justice Department will vigorously prosecute individuals who commit such heinous acts.”
“This joint investigation by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives; along with the Arkansas State Police; the Hardy and Waldron Police Departments; and the Scott and Sharp County Sheriff’s Offices demonstrates how seriously all levels and branches of law enforcement consider these acts of prejudice, intolerance, and intimidation,” said Christopher R. Thyer, U.S. Attorney for the Eastern District of Arkansas. “ We are committed to protect the civil rights of all citizens of the Eastern District of Arkansas.”
Barnwell faces a maximum penalty of 35 years in prison. Sentencing has been set for Dec. 20, 2011. Murphy, Hammond and Treybig previously pleaded guilty for their involvement in this matter. Gary Dodson is scheduled to go to trial on Oct. 25, 2011.
This case was investigated by the Little Rock Division of the Federal FBI and is being prosecuted by Assistant U.S. Attorney John Ray White of the Eastern District of Arkansas and Trial Attorney Henry Leventis of the U.S. Department of Justice Civil Rights Division.
25 August 2011
Statement of Attorney General Eric Holder on Lawsuit Challenging the Voting Rights Act of 1965Read the Press Release
WASHINGTON – Attorney General Eric Holder released the following statement regarding a lawsuit filed today by the State of Arizona challenging the constitutionality of the Voting Rights Act of 1965:
“The Voting Rights Act plays a vital role in our society by ensuring that every American has the right to vote and to have that vote counted. The Department of Justice will vigorously defend the constitutionality of the Voting Rights Act in this case, as it has done successfully in the past. The provisions challenged in this case, including the preclearance requirement, were reauthorized by Congress in 2006 with overwhelming and bipartisan support. The Justice Department will continue to enforce the Voting Rights Act, including each of the provisions challenged today.”
Oregon Man Charged with Hate Crime for Arson at MosqueRead the Press Release
WASHINGTON – The Justice Department announced today that a federal grand jury in Eugene, Ore., has indicted Cody Crawford, 24, of Corvallis, Ore., on federal hate crime and arson charges for intentionally setting fire to the Salman Alfarisi Islamic Center.
According to the indictment, Crawford is charged with one count of damaging religious property and one count of arson. Crawford allegedly set fire to the mosque during the early morning hours of Nov. 28, 2010, less than two days after authorities arrested an individual in connection with the Portland Christmas Tree Lighting terror plot. The indictment alleges that Crawford set the fire because of the race, color or ethnic characteristics of individuals associated with the mosque.
“Burning a house of worship because of hatred toward members of one religion is not just an attack on that religion; it is an attack on our core American values,” said Assistant Attorney General Thomas E. Perez of the Department’s Civil Rights Division. “The Civil Rights Division will aggressively protect the rights of all persons to worship without fear of violence or intimidation.”
“Freedom of religion is essential to who we are as Americans,” said U.S. Attorney for the District of Oregon Dwight C. Holton. “We will not tolerate attacks based on faith.”
“The ability to live, work and worship freely, without fear or intimidation, is the very foundation of our society. We cannot allow any person to threaten the rights of those citizens we are sworn to protect,” said Greg Fowler, Special Agent in Charge of the FBI in Oregon. “Today’s arrest demonstrates our continued commitment to the FBI’s core mission: to protect our community and to protect the rights of all Americans as guaranteed by the U.S. Constitution.”
If convicted, Crawford faces a minimum of 10 years in prison and a maximum of 30 years in prison.
This case is being investigated by the Portland Division of the FBI, the Corvallis Police Department and the Corvallis Fire Department, in conjunction with the Benton County District Attorney; Bureau of Alcohol, Tobacco, Firearms and Explosives; Benton County Sheriff’s Office; and the Monmouth and McMinnville Police Departments. It is being prosecuted by Assistant U.S. Attorney William E. (Bud) Fitzgerald for the District of Oregon and Trial Attorney Fara Gold of the Civil Rights Division of the U.S. Department of Justice.
An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.
Michigan Man Convicted of Obstructing the Internal Revenue Service in IRS Form 1099-OID Schemes and Gun CrimeRead the Press Release
WASHINGTON – Karl Herrington, of Parma, Mich., was convicted of two counts of corruptly endeavoring to obstruct the administration of the Internal Revenue laws, four counts of filing false tax forms with the Internal Revenue Service (IRS) and one count of being a felon in possession of six different firearms, the Justice Department, the Treasury Inspector General for Tax Administration (TIGTA) and the IRS announced today. The jury returned guilty verdicts on the tax charges on Aug. 24, 2011, and a guilty verdict on the gun charge today.
According to the evidence at trial, Herrington submitted false forms to the IRS to intimidate and harass state and local government officials and employees. These included Forms 1099-OID falsely reporting that Herrington paid original issue discount, which is taxable as interest, to law enforcement personnel and judges involved in a criminal case against him in Jackson County, Mich. In that case, Herrington was charged with being an accessory after the fact for harboring his wife, who was wanted for outstanding arrest warrants.
Further, the evidence established that Herrington sent false Forms 1099-OID to federal attorneys prosecuting a criminal tax case against his wife in the Northern District of Ohio in order to interfere with that case. Among the false tax forms Herrington is accused of filing was an individual income tax return for himself falsely reporting federal tax withheld of more than $8 million.
Herrington was also convicted of possessing firearms on May 25, 2011, which was the day of his arrest on two counts of corruptly endeavoring to obstruct the administration of the internal revenue laws and five counts of filing false tax forms with the IRS. According to the evidence at trial, Herrington was previously convicted of a felony offense. On May 25, 2011, when he was arrested on the underlying tax charges, Herrington possessed six different firearms, including five shotguns and a magnum rifle.
Herrington faces a maximum potential sentence of 21 years in prison and a maximum fine of $1.5 million. U.S. District Court Judge Stephen J. Murphy III of the Eastern District of Michigan ordered that Herrington be detained immediately following his conviction. A sentencing date has not been scheduled.
TIGTA and IRS-Criminal Investigation investigated this case and Tax Division Trial Attorneys Kenneth Vert and Jeffrey McLellan prosecuted the case for the United States.
More information about the Tax Division and its enforcement efforts can be found at www.justice.com/tax.
Former Department of Defense Employee Sentenced to Prison for Stealing Financial Assistance Funds Intended for Service MembersRead the Press Release
WASHINGTON – A former civilian employee of the Department of Defense was sentenced today to nine months in prison for conversion of Army Emergency Relief (AER) funds while he was employed at Camp Humphreys in the Republic of Korea, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division.
Tyrone L. Ellis, 56, of Columbus, Ga., was sentenced by U.S. District Judge Clay D. Land of the Middle District of Georgia. In addition to his prison term, Ellis was sentenced to two years of supervised release and was ordered to pay $9,250 in restitution.
Ellis pleaded guilty in May 2011 to one count of conversion. Ellis was indicted on Oct. 27, 2010, for this criminal conduct. As part of his guilty plea, Ellis admitted that, as an assistant AER officer at Camp Humphreys in 2005 and 2006, he approved grants for a dozen soldiers in financial need that were in excess of the amounts they required. Ellis also admitted that after he approved these grants, he manipulated the soldiers to return some of the grant money to him. In total, Ellis requested and received approximately $9,250 back from the grant recipients, which he converted to his own use. AER is funded primarily through donations from active and retired soldiers. For many soldiers, AER is their only source of funds for emergency expenses such as flights home to visit sick family members. Ellis also admitted making false statements to investigators when questioned about the allegations in 2006.
This case was prosecuted by Trial Attorneys John P. Pearson and Richard B. Evans of the Criminal Division’s Public Integrity Section, and was investigated by the Army Criminal Investigation Division, with assistance from the Defense Criminal Investigative Service and U.S. Army Audit Agency.
Final Charged Pittsburgh Crips Members Plead Guilty to Racketeering CrimesRead the Press Release
WASHINGTON – The last two defendants charged for their racketeering crimes as part of the Crips gang in Pittsburgh pleaded guilty today in U.S. District Court in Pittsburgh, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney David J. Hickton of the Western District of Pennsylvania.
Lamon Street, 20, aka “M-Dot,” and Dominique Steele, 21, aka “C-Flack,” pleaded guilty before Senior U.S. District Judge Gustave Diamond to one count of conspiracy to engage in a racketeering enterprise. Steele also pleaded guilty to using a firearm during and in retaliation for a crime of violence. Nicky Evans, 31, aka “Yamma,” pleaded guilty on Aug. 22, 2011, to one count of conspiracy to engage in a racketeering enterprise.
In addition, Vance Pearson, 25, aka “Vinny P,” and Phillip Turner, 23, aka “Philly-C,” were sentenced this week to 100 months and 154 months in prison, respectively, after pleading guilty on Apr. 26 and Apr. 28, 2011, respectively, to conspiracy to engage in racketeering activity.
“The Brighton Place/Northview Heights Crips gang ruled certain neighborhoods in Pittsburgh, spreading violence and fear in their communities,” said Assistant Attorney General Breuer. “This extensive investigation has taken dangerous Crips leaders, members and associates off the streets and put them in prison, where they belong. Violent street gangs should take note, and know that we are determined to break their vice grip on communities, while ensuring that they face justice for their crimes.”
“Today’s pleas successfully resolve charges against the final members of the criminal conspiracy which was contributing to the victimization of law abiding citizens in our community,” said U.S. Attorney Hickton. “Justice has been served. The public welfare has been protected. This outstanding result was achieved by virtue of the great cooperation of all of our law enforcement partners, this office and the U. S. Department of Justice in Washington, D.C.”
According to the guilty pleas, Street, Steele, Evans and others participated in a pattern of racketeering activity that included robberies at gun point; attempted murders; distribution of cocaine, heroin and crack cocaine; and obstruction of justice and witness intimidation.
According to court documents, Steele, Pearson and Turner were members of the Northview Heights/ Fineview Crips, a criminal street gang that operated in the Northview Heights public housing venue on the North Side of Pittsburgh. Street and Evans were members of the Brighton Place Crips, a criminal street gang that controlled an area of Brighton Place and Morrison Street, also known as the Mad Cave, and Federal Street in the Northside area of Pittsburgh. In 2003, the Northview Heights/ Fineview Crips and Brighton Place Crips formed an alliance. The alliance expanded the gang’s drug trafficking territory, and increased the number of gang members and associates available to preserve and protect the gang’s power, territory and profits through violence.
The Brighton Place/Northview Heights Crips gang maintains exclusive control over drug trafficking in these neighborhoods through continuous violence and intimidation of rivals and witnesses. Members of the gang support each other through payment of attorneys’ fees and bonds, as well as payments to jail commissary accounts and support payments to incarcerated members’ families.
In addition, gang members had violent confrontations with members of the rival Manchester OGs, and other street gangs operating in the Northside Section of Pittsburgh. Members and associates obtained greater authority and prestige within the enterprise based on their reputation for violence and their ability to obtain and sell a steady supply of illegal drugs. According to court documents, the Brighton Place/Northview Heights Crips gang members identify themselves by wearing blue, flashing Crips gang hand signals, and using phrases such as “Cuz,” “C-Safe,” “Loc” and “G.K.”
Evans, Street, Steele, Turner and Pearson are five of 26 defendants charged in February 2010 with being members of, and conducting racketeering activity through, the Brighton Place/Northview Heights Crips gang. This prosecution resulted from a Project Safe Neighborhoods Task Force investigation that began in 2005. With today’s guilty pleas, there are no pending charges left against the 26 defendants originally charged in the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Charles A. Eberle and Troy Rive tti of the Western District of Pennsylvania and Trial Attorney Kevin Rosenberg of the Criminal Division’s Organized Crime and Gang Section. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives; the City of Pittsburgh Bureau of Police; the Allegheny County, Penn., Police Department; and the Allegheny County Sheriff’s Office.
Detroit-Area Clinic Owner Sentenced to 48 Months in Prison for Medicare Fraud Schemes Totaling More Than $15 MillionRead the Press Release
WASHINGTON— An owner of three Detroit-area clinics was sentenced to 48 months in prison today for his role in schemes that attempted to defraud the Medicare program of more than $15 million, the Departments of Justice and Health and Human Services (HHS) announced.
Jose Rosario, 54, was sentenced by U.S. District Judge Gerald E. Rosen in the Eastern District of Michigan. In addition to the prison term, Rosario was sentenced to three years of supervised release and was ordered to pay, jointly and severally with other defendants in the case, $10.7 million in restitution. Judge Rosen ordered the sentence to run consecutive to a 46 month sentence that Rosario received in the Southern District of Florida in July 2011, in connection with an unrelated mortgage fraud case.
Rosario pleaded guilty on Aug. 18, 2009, to one count of conspiracy to commit health care fraud. According to court documents, Rosario acknowledged that in approximately September 2006, he and a co-defendant incorporated Sacred Hope Medical Center Inc. in Michigan. Sacred Hope purported to specialize in providing injection and infusion therapy services to Medicare patients. Rosario admitted that he and the co-defendant were the owners of the clinic, and agreed to split the profits generated there evenly between them.
According to court documents, during the time that Sacred Hope was open, the clinic routinely billed the Medicare program for services that were medically unnecessary and/or never provided. Rosario admitted that he knew the clinic purchased only a small fraction of the medications that the clinic billed to Medicare. Rosario admitted he participated in hiring co-conspirators to falsify the medical files to make the treatments purportedly provided at Sacred Hope appear legitimate, when in fact he knew they were not.
Rosario also admitted that Medicare beneficiaries were not referred to Sacred Hope by their primary care physicians or for any legitimate medical purpose. Rather, they were recruited to come to the clinic through the payment of kickbacks. In exchange for the kickbacks, the beneficiaries visited the clinic and signed documents falsely indicating that they had received the services billed to Medicare. According to information contained in the plea documents, kickbacks came in the form of cash and prescriptions for narcotic drugs.
In addition to the conduct at Sacred Hope, Rosario admitted to being a part owner of Dearborn Medical Rehab Center (DMRC), another infusion clinic, and to playing similar roles at a third Detroit-area infusion clinic, Xpress Center. Rosario admitted that he was fully aware that the DMRC and Xpress Center routinely billed the Medicare program for services that were medically unnecessary and, in many instances, never provided. Rosario admitted that the purpose of the DMRC and Xpress Center was not to provide legitimate health care to patients, but rather to defraud the Medicare program.
Between approximately March 2006 and March 2007, Rosario admitted to causing the submission of approximately $15.3 million in false and fraudulent claims to Medicare for services purportedly provided at Sacred Hope, DMRC and Xpress Center. Based on the fraudulent claims, approximately $10.7 million was paid.
Today’s sentence 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 Benjamin D. Singer and Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section, and Assistant U.S. Attorney John K. Neal of the Eastern District of Michigan. 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 its inception in March 2007, Medicare Fraud Strike Force operations in nine districts have charged 1,000 defendants that collectively have billed the Medicare program for more than $2.3 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 HEAT team, go to: www.stopmedicarefraud.gov.
Detroit Occupational Therapist Pleads Guilty to Medicare Fraud SchemeRead the Press Release
WASHINGTON – A Detroit-area occupational therapist pleaded guilty today for her participation in a Medicare fraud scheme, announced the Departments of Justice and Health and Human Services (HHS).
Carol Gant, 66, pleaded guilty before U.S. District Judge Avern Cohn in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. At sentencing, Gant faces a maximum penalty of 10 years in prison and a $250,000 fine.
According to the plea documents, Gant was an occupational therapist who worked for Jos Campau Physical Therapy, which purported to provide physical and occupational therapy services. In 2005, Gant was hired by Jos Campau Physical Therapy to create and sign falsified occupational therapy files. Gant created patient evaluation forms for Medicare beneficiaries whom she had never met, seen or evaluated.
Gant admitted that she hired an uncertified occupational therapy assistant, who fabricated and signed notes for occupational therapy patient visits that the assistant purported to perform. Gant paid the uncertified assistant for creating these fictitious patient visit notes and countersigned them. Gant also filled out patient discharge paperwork. Gant provided no services to the patients whose files she created and countersigned. Gant was paid for each patient file that she created. Gant knew that neither she nor the uncertified occupational therapy assistant were providing occupational therapy services to the beneficiaries as stated in the falsified files.
Gant admitted that between approximately June 2005 and May 2007, she and her co-conspirators at Jos Campau submitted or caused the submission of fraudulent claims to the Medicare program. Gant submitted or caused to be submitted approximately $897,512 in claims for occupational therapy services that were never rendered.
Today’s guilty plea 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 (OIG) Chicago Regional Office.
This case was prosecuted by Trial Attorney Catherine K. Dick of the Criminal Division’s Fraud Section. It was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since their inception in March 2007, Strike Force operations in nine locations have charged more than 1,000 individuals who collectively have falsely billed the Medicare program for more than $2.3 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the HEAT team, go to: www.stopmedicarefraud.gov.
24 August 2011
Vice Lord Gang Members in Tennessee Convicted for Roles in Two Murders and Multiple Attempted MurdersRead the Press Release
WASHINGTON – A federal jury has convicted three Vice Lord gang members for their various roles in the murder of two individuals, and attempted murders of additional victims, announced Assistant Attorney General Lanny A. Breuer of the Justice Department’s Criminal Division and U.S. Attorney Jerry E. Martin for the Middle District of Tennessee.
Roger Wayne Battle, 30, aka “T-Wayne,” of Nashville, Tenn.; Jessie Lobbins, 26, aka “Jessie Oliver” and “Trap,” of Memphis, Tenn.; and Gary Eugene Chapman, 32, aka “Wheat,” of Morristown, Tenn., all were convicted yesterday in U.S. District Court in Nashville.
Battle was found guilty on 57 charged counts, including for the murder of Moss James Dixon and Brandon Harris, aka “Chicago.” He also was convicted on charges of conspiracy to murder and attempted murder in aid of racketeering related to 13 additional victims; carrying and using firearms during and in relation to crimes of violence; and conspiracy to distribute cocaine and marijuana.
Lobbins was found guilty on six counts, including for his role in Harris’s murder; conspiracy to commit murder in aid of racketeering; carrying and using firearms during and in relation to crimes of violence; assault with a dangerous weapon resulting in serious bodily injury of a federal inmate in aid of racketeering; and tampering with a witness.
Chapman was found guilty on 29 counts, including conspiracy to commit murder; assault with a dangerous weapon; carrying and using firearms during and in relation to crimes of violence; and conspiracy to distribute marijuana.
“Mr. Battle and his co-defendants committed brutal acts of violence in the name of the Vice Lords gang,” said Assistant Attorney General Breuer. “Yesterday, a Tennessee jury emphatically rejected their pattern of murder and mayhem. Gang violence too often begets more gang violence, leading to ruthless retaliations, instilling fear among innocent civilians, and causing harm to mere bystanders. We cannot, and we will not, slow down in our efforts to hold members of violent criminal enterprises like the Vice Lords to account for their crimes.”
“We will continue to vigorously pursue those who choose to become involved in violent gangs and wreak havoc on our communities,” said U.S. Attorney Jerry Martin. “The verdicts in this case clearly demonstrate the dedication and commitment of our prosecutors and law enforcement partners to rid our communities of violent offenders. Middle Tennessee will certainly be a safer place without the presence of these individuals.”
According to evidence presented at trial, Battle was the leader of the Traveling Vice Lords, holding the rank of Five Star Universal Elite and controlling Middle and East Tennessee. The murders and attempted murders were a result of Battle and other members of the Traveling Vice Lords and the Conservative Vice Lords seeking revenge for the killing of Donnell Valentine, aka “Hitman,” the leader of the Conservative Vice Lords in Murfreesboro, Tenn.
In the early morning hours of Nov. 10, 2007, according to evidence presented at trial, multiple fights between members of the Vice Lords and the Gangster Disciples erupted at a party held at the Armory in Murfreesboro. Valentine believed that during the course of the fighting, Antwan Butler, aka “Tweezy,” had not come to his aid. Butler was a fellow member of the Traveling Vice Lord gang. Failure to come to Valentine’s aid was a violation of Vice Lords’ rules, as Butler held a lower rank than Valentine’s Five Start Universal Elite rank. As a result, Valentine complained to Battle, who then decided to “put” Butler out of the gang, meaning he would no longer be a member of the Vice Lords.
According to evidence presented at trial, that same day, Butler was lured to an apartment at the Rutherford Woodlands apartment complex in Murfreesboro where he was beaten by Battle, Chapman and Valentine to the point of being unrecognizable by family members. Christopher Imes, a co-defendant, was also present. After the beating, Butler told family and friends, including Kevin Herrin, aka “Light Skin,” that Battle, Chapman, Imes and Valentine had beaten him.
That same night, members of the Traveling Vice Lords, including Battle, Chapman, Imes and members of the Conservative Vice Lords, including Valentine, Samuel Gaines, aka “Born Ready,” and Frederick Carney, aka “Little Fred,” went to a club called The Drink, in Murfreesboro. There, Herrin and others approached the Vice Lords and a fight erupted. During the course of the fight, Valentine was shot and killed.
As a result of the assault and murder at The Drink, Battle, Chapman, Imes, Demarco Smith, Danielle Hightower, Curtis Green (Battle’s cousin), Carney and Gaines conspired to retaliate against people they believed had been involved in the assault and murder by shooting at locations where they thought those individuals lived. According to evidence presented at trial, while the targets were people at the fight, the Vice Lords were willing to shoot anyone staying in a house where their targets were visiting or living.
According to evidence presented at trial, five retaliatory shootings then occurred around Murfreesboro, including at the following locations:
- On Nov. 13, 2007, at 431 East State Street, five people were in a house when shots were fired, including two individuals hit by the gunfire;
- On Nov. 14, 2007, at 907 West Main Street, four people were in a house, including Dixon who was shot and died two weeks later as a result of his injuries;
- On Nov. 18, 2007, at 1401 Eagle Street, three people were in a house when shots were fired, though none were injured; and
- On Jan. 1, 2008, at 424 Castleview Street, three people were in a house when shots were fired, including two individuals hit by the gunfire.
The fifth retaliatory shooting, on Feb. 10, 2008, was carried out by Battle and Lobbins and resulted in Harris’ death. According to evidence presented at trial, Harris was a member of the Mikey Cobras, a gang aligned with the Vice Lords. Battle believed that Harris had made statements regarding Battle having some involvement in the death of Valentine. Subsequently, Battle lured Harris to O’Charley’s, a restaurant on Bell Road in Nashville, under the guise of a drug transaction. Lobbins accompanied Battle to the location. Battle and Lobbins then led Harris, in a car driven by Gaines, to Rice Road in Antioch, Tenn., where Battle and Lobbins then shot Harris to death. According to evidence presented at trial, Battle admitted in a call from jail with Chapman to killing Harris, saying that he could only “let it slide for so long” and that he (Battle) had “personally demonstrated,” meaning that Battle had personally killed Harris.
Eight individuals have pleaded guilty to various crimes related to their involvement in the Vice Lord gang. Smith and Imes each pleaded guilty to conspiracy to commit murder and to the murder of Dixon. Hightower pleaded guilty to conspiracy to commit murder and assault. Gaines pleaded guilty to conspiracy to commit murder related to the retaliatory shootings that occurred from Nov. 13, 2007, to Jan. 1, 2008. Delregus Alexander pleaded guilty to conspiracy to use and carry firearms during and in relation to crimes of violence related to the retaliatory shootings on Jan. 1, 2008. Curtis Green pleaded guilty to conspiracy to commit murder. These six individuals are currently awaiting sentencing. Carney was a juvenile at the time of the shootings, and has subsequently been convicted of federal charges unrelated to these events and serving a prison sentence. Herrin has subsequently been convicted of federal charges unrelated to these events and is currently in prison.
Battle and Lobbins face mandatory life prison sentences. Chapman faces a maximum penalty of life in prison. Chief U.S. District Court Judge Todd J. Campbell scheduled sentencing for Jan. 27, 2012.
The investigation was a joint operation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Murfreesboro Police Department; and the Metropolitan Nashville Police Department. The case was prosecuted by Assistant U.S. Attorney Van S. Vincent for the Middle District of Tennessee and Trial Attorney Cody L. Skipper of the Criminal Division’s Organized Crime and Gang Section.