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24 February 2011
Horizon Lines LLC Agrees to Plead Guilty to Price Fixing on Coastal Water Freight Services Between the Continental United States and Puerto RicoRead the Press Release
WASHINGTON – Horizon Lines LLC has agreed to plead guilty and to pay a $45 million criminal fine for its role in a conspiracy to fix prices in the coastal water freight transportation industry, the Department of Justice announced today.
According to a one-count felony charge, filed today in U.S. District Court for the District of Puerto Rico, Horizon Lines LLC, whose principal place of business is in Charlotte, N.C., engaged in a conspiracy to fix rates and surcharges for water transportation of freight between the continental United States and Puerto Rico from at least as early as May 2002, until at least April 2008.
Horizon Lines LLC transports a variety of cargo shipments, such as heavy equipment, medicines and consumer goods, on scheduled ocean voyages between the continental United States and Puerto Rico.
According to the charge, Horizon Lines LLC and co-conspirators carried out the conspiracy by agreeing during meetings and discussions to allocate customers of Puerto Rico freight services and to fix the rates and surcharges to be charged to purchasers of water transportation of freight between the continental United States and Puerto Rico. The department said that Horizon Lines LLC and co-conspirators also engaged in meetings for the purpose of monitoring and enforcing adherence to the agreed-upon rates and sold Puerto Rico freight services at collusive and noncompetitive rates.
In addition to today’s charge, as a result of this investigation, five former executives have been charged and sentenced to serve prison time. On Oct. 20, 2008, three former Horizon Lines LLC executives, R. Kevin Gill, Gregory Glova and Gabriel Serra, and another former shipping executive, Peter Baci, pleaded guilty to a wide-ranging conspiracy to rig bids, fix prices and allocate customers transporting goods between the continental United States and Puerto Rico by ocean vessel. On the same day, Alexander Chisholm pleaded guilty for his conduct in obstructing the Department of Justice’s investigation of the shipping conspiracy.
Horizon Lines LLC is charged with price fixing in violation of the Sherman Act, which carries a maximum fine of $100 million for corporations. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.
Today’s charge arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the coastal water freight transportation industry, which is being conducted by the Antitrust Division’s National Criminal Enforcement Section; the Baltimore Resident Agency of the Department of Defense’s Office of the Inspector General; Defense Criminal Investigative Service (DCIS); the Miami Field Office of the Department of Transportation’s Office of Inspector General; and the Jacksonville, Fla., Field Office of the FBI. Anyone with information concerning this investigation is urged to call the Antitrust Division’s National Criminal Enforcement Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.htm or contact DCIS’s Baltimore Resident Agency at 410-347-1620.
Hombre del Sur de Florida se declara culpable de fraude tributarioRead the Press Release
WASHINGTON - Ruben Reyes, un residente del Sur de Florida, se declaró culpable hoy de un cargo de presentación de una declaración de impuestos falsa, anunciaron el Departamento de Justicia y el Servicio de Impuestos Internos [Internal Revenue Service (IRS)].
De acuerdo con el expediente judicial, Reyes actuó como "reclutador" o "promotor" de dos empresas fantasma utilizadas por empresas de construcción para evadir impuestos asociados al empleo y exigencias de seguro de compensación del trabajador. Las empresas de construcción emitían cheques a las empresas fantasma de Reyes, de modo que pareciera que las empresas fantasma eran subcontratistas legítimos. En realidad, las empresas fantasma no realizaban ningún trabajo para las empresas de construcción.
Reyes realizó arreglos para que las empresas utilizaran sus empresas fantasmas y para que los cheques emitidos a dichas empresas fueran cambiados en tiendas locales de cambio de cheques. Luego, les daba el efectivo a las empresas de construcción, quienes, a su vez, pagaban a sus trabajadores en dinero en efectivo. Al hacer esto, las empresas de construcción lograban evitar declarar sus trabajadores al IRS o a compañías aseguradoras, evadiendo impuestos y primas de seguro más altas.
Reyes recibía una parte de cada cheque emitido a una de sus empresas fantasma. Entre 2005 y 2006, más de 15 millones de dólares en cheques fueron canalizados a través de empresas fantasma. Reyes obtuvo ingresos sustanciales de su parte de este dinero, los que no declaró en sus declaraciones de impuestos a la renta.
El tribunal programó la lectura de la sentencia de Reyes para el 4 de mayo de 2011. Enfrenta un máximo de tres años en prisión.
Agentes de Investigaciones Penales del IRS investigaron el asunto, y los abogados litigantes Jason Poole y Matthew Mueller de la División de Impuestos del Departamento de Justicia están a cargo de la acusación en el caso con la asistencia de la Fiscalía Federal para el Distrito Sur de Florida.
Existe información adicional sobre la División de Impuestos del Departamento de Justicia y su labor de coacción en http://www.usdoj.gov/tax.
Four CD and DVD Counterfeiters and Suppliers in Atlanta Sentenced to PrisonRead the Press Release
WASHINGTON – Four individuals have been sentenced this week in Atlanta by U.S. District Judge William S. Duffey Jr., for their involvement in a counterfeit DVD and CD ring, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Sally Quillian Yates for the Northern District of Georgia.
Mamadou Sadio Barry, 40, was sentenced to 60 months in prison; Moussa Baradji, 29, was sentenced to 50 months in prison; Sedikey Sankano, 42, was sentenced to 24 months in prison; and Won Ahn, 69, was placed on probation for one year. Barry, Baradji and Sankano also were ordered to serve three years of supervised release following their prison terms. Barry and Baradji were ordered to pay $70,894 in restitution and Sankano was ordered to pay $3,867 in restitution. The court found that these defendants were responsible for distributing illegal copies of products that, if legitimate, would have been valued at more than $2 million.
On Dec. 10, 2009, Sankano pleaded guilty to one count of conspiracy to commit criminal copyright infringement, to traffic in counterfeit goods and to traffic in counterfeit labels. On Sept. 24, 2010, Ahn pleaded guilty to being an accessory after the fact for illegally smuggling patent infringing digital media contrary to law.
On Oct. 6, 2010, a federal jury in Atlanta found Barry and Baradji guilty of one count each of criminal copyright infringement. The evidence at trial established that Baradji and Barry used space in warehouses on Metropolitan Parkway in Atlanta to “burn” or copy DVDs and CDs. According to evidence at trial, Baradji and Barry produced and paid others to produce counterfeit labels and packaging and to assemble the final product, which Baradji and Barry sold through their retail stores. According to the evidence at trial, the defendants’ warehouse operation reproduced thousands of CDs and DVDs per week for distribution. According to court records, Sankano also acquired labels, packaging and blank digital media at the warehouse for use in manufacturing infringing copies of copyrighted materials on DVDs and CDs. Ahn assisted in supplying the producers with blank DVDs and CDs that had been illegally smuggled into the United States.
The sentenced defendants were among 13 charged by a federal grand jury on May 19, 2009, in an indictment alleging various copyright, trademark and counterfeit goods offenses.
The case was prosecuted by Assistant U.S. Attorney Brian Pearce in the Northern District of Georgia and Senior Counsel John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section. The case was investigated by special agents of the FBI and the Department of Homeland Security, Immigration and Customs Enforcement, together with officers of the Atlanta Police Department Organized Crime Unit; College Park, Ga., Police Department; and East Point, Ga., Police Department. Assistance was provided by the Recording Industry Association of America and the Motion Picture Association of America.
Former Treasurer of Taylor, Bean & Whitaker <br /> Pleads Guilty to $1.9 Billion Fraud Scheme That <br /> Contributed to the Failure of Colonial BankRead the Press Release
WASHINGTON – Desiree Brown, the former treasurer of a private mortgage lending company, Taylor, Bean & Whitaker (TBW), pleaded guilty today to conspiring to commit bank, wire and securities fraud for her role in a more than $1.9 billion fraud scheme that contributed to the failures of Colonial Bank and TBW.
The guilty plea was announced today by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Neil H. MacBride for the Eastern District of Virginia; Special Inspector General Neil Barofsky for the Troubled Asset Relief Program (SIGTARP); Assistant Director in Charge James W. McJunkin of the FBI’s Washington Field Office; Michael P. Stephens, Inspector General of the Department of Housing and Urban Development (HUD OIG); Jon T. Rymer, Inspector General of the Federal Deposit Insurance Corporation (FDIC OIG); Steve A. Linick, Inspector General of the Federal Housing Finance Agency (FHFA OIG); and Victor F. O. Song, Chief of the Internal Revenue Service (IRS) Criminal Investigation.
Brown, 45, of Hernando, Fla., pleaded guilty before U.S. District Judge Leonie M. Brinkema in the Eastern District of Virginia. Brown faces a maximum penalty of 30 years in prison when she is sentenced on June 10, 2011. In a related action, the U.S. Securities and Exchange Commission (SEC) today filed an enforcement action against Brown in the Eastern District of Virginia.
According to court documents, Brown admitted that from late 2003 through August 2009, she and her co-conspirators, including former TBW chairman Lee Farkas engaged in a scheme to defraud various entities and individuals, including Colonial Bank, a federally-insured bank; Colonial BancGroup Inc.; shareholders of Colonial BancGroup; investors in Ocala Funding LLC, including Deutsche Bank and BNP Paribas; the Troubled Asset Relief Program (TARP); and the investing public. One of the goals of the scheme to defraud was to obtain funding for TBW to assist it in covering expenses related to operations and servicing payments owed to third-party purchasers of loans and/or mortgage-backed securities.
According to court documents, Brown and her co-conspirators referred to one aspect of the fraud scheme as “Plan B.” “Plan B” generated money for TBW through the fictitious “sales” of mortgage loans to Colonial Bank. The conspirators accomplished this by sending mortgage data to Colonial Bank for loans that did not exist or that TBW had already committed or sold to other third-party investors. As a result, the Plan B loan data was recorded in Colonial Bank’s books and records, and gave the false appearance that Colonial Bank had purchased legitimate interests in mortgage loans from TBW. Brown admitted that she and her co-conspirators caused Colonial Bank to pay TBW for assets that were worthless to Colonial Bank.
Brown admitted that, as part of the fraud scheme, she and her co-conspirators also caused TBW to sell fictitious trades, which had no pools of loans collateralizing them, to Colonial Bank. Brown and her co-conspirators caused false information about the trades to be entered on Colonial Bank’s books and records, giving the appearance that the bank owned interests in legitimate trades, when in fact the trades had no value and could not be sold.
Court documents indicate that the conspirators caused Colonial Bank to pay TBW more than $400 million for assets that in fact had no value, and caused Colonial Bank and Colonial BancGroup to hold these assets on their books as if they had actual value. Additionally, the conspirators caused TBW to misappropriate more than $1 billion in collateral from Ocala Funding LLC, a mortgage lending facility owned by TBW.
According to court documents, the fraud scheme also included an effort by the conspirators in the fall of 2008 to obtain $570 million in taxpayer funding through the Capital Purchase Program (CPP), a sub-program of the U.S. Treasury Department’s TARP program. In connection with the application, Colonial BancGroup submitted financial data and filings that included materially false information related to mortgage loan and securities assets held by Colonial Bank as a result of the fraudulent scheme admitted to by Brown. Colonial BancGroup never received the TARP funding.
In August 2009, the Alabama State Banking Department, Colonial Bank’s regulator, seized the bank and appointed the FDIC as receiver. Colonial BancGroup also filed for bankruptcy in August 2009.
In June 2010, Farkas was arrested and charged in a 16-count indictment for his role in the fraud scheme. His trial is scheduled to begin in April 2011. An indictment is merely a charge and a defendant is presumed innocent until proven guilty.
The case is being prosecuted by Deputy Chief Patrick Stokes and Trial Attorney Robert Zink of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Charles Connolly and Paul Nathanson of the Eastern District of Virginia. This case was investigated by SIGTARP, FBI’s Washington Field Office, FDIC OIG, HUD OIG, FHFA OIG and the IRS Criminal Investigation. The Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury also provided support in the investigation.
This prosecution was brought in coordination with 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.
BlueCross BlueShield of Illinois to Pay $25 Million to Settle Civil False Claims Act AllegationsRead the Press Release
WASHINGTON - BlueCross BlueShield of Illinois, a division of Health Care Service Corporation, has agreed to pay the United States and the state of Illinois $25 million to settle False Claims Act allegations, the Justice Department announced today. The settlement resolves claims by the United States that BlueCross BlueShield of Illinois wrongly terminated insurance coverage for private duty skilled nursing care for medically fragile, technologically dependent children, in order to shift the costs of such care to the Medicaid program. Medicaid funds a special program designed to provide home care for children at risk of institutionalization.
As a result, children whose specialized care should have been covered by BlueCross BlueShield of Illinois under the terms of existing insurance policies, were shifted to the government-funded Home and Community Based Services Medicaid program, operated by the Illinois Division of Specialized Care for Children under an agreement with the Illinois Department of Healthcare and Family Services. As a result, Medicaid spent millions of dollars providing care that should have been paid for by private insurance.
The settlement resolves claims that BlueCross BlueShield of Illinois denied patient claims based on internal, undisclosed guidelines that were more restrictive than the language provided to beneficiaries in plan policy materials. Additionally, the government alleged that BlueCross BlueShield of Illinois improperly told policy holders that children were not covered for private duty nursing during the claims review process sought after initial denials.
Under the agreement, BlueCross BlueShield of Illinois will pay $14.25 million to the state of Illinois and $9.5 million to the United States. The company will also pay $1.25 million to Illinois for allegations under the state consumer fraud statute.
“It is appalling for a major insurance company to terminate medical services coverage for sick children in need just to boost their bottom line at taxpayers’ expense, as we’ve alleged here,” said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. “When private insurance companies improperly force patients to turn to Medicaid for medical coverage those companies should be providing, we will hold them accountable.”
“The case filed today is a good example of this office's ongoing commitment to combat health care fraud, said Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois. We will make all efforts to return money to the federal Medicaid program as well as to the Illinois Medicaid program.”
The case was handled by the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of Illinois and the Office of Inspector General of the Department of Health and Human Services (OIG-HHS).
“Private insurance companies that deny properly payable claims in order to inappropriately shift costs to federal health care programs -- as BC/BS of IL is alleged to have done – will be held accountable,” said Daniel R. Levinson, Inspector General of the Department of Health & Human Services. “OIG, along with our federal and state partners, will continue to protect patients and taxpayers by prosecuting those behind these schemes."
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 the Department of Health and Human Services 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 $5.5 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 are nearly $7 billion.
<br /> <br /> Cuatro falsificadores y proveedores de CDs y DVDs en Atlanta fueron sentenciados a prisión<br /> <br />Read the Press Release
WASHINGTON - Cuatro personas fueron sentenciadas esta semana en Atlanta por el Juez Federal de Distrito William S. Duffey, Jr., por su participación en una red de DVDs y CDs falsificados, anunciaron el Secretario de Justicia Auxiliar Lanny A. Breuer de la División de lo Penal y la Fiscal Federal Sally Quillian Yates para el Distrito Norte de Georgia.
Mamadou Sadio Barry, 40, fue sentenciado a 60 meses en prisión; Moussa Baradji, 29, fue sentenciado a 50 meses en prisión; Sedikey Sankano, 42, fue sentenciado a 24 meses en prisión; y Won Ahn, 69, fue puesto en libertad condicional por un año. También se les ordenó a Barry, Baradji y Sankano cumplir con tres años de libertad bajo supervisión después de haber cumplido sus sentencias en prisión. Se les ordenó a Barry y Baradji pagar 70,894 dólares en restitución y a Sankano, 3,867 dólares en restitución. El tribunal encontró que estos demandados eran responsables de distribuir copias ilegales de productos que, si hubieran sido legítimas, hubieran valido más de 2 millones de dólares.
El 10 de diciembre de 2009, Sankano se declaró culpable de un cargo de conspiración para cometer violación delictiva de propiedad intelectual, tráfico de mercadería falsificada y tráfico de rótulos falsificados. El 24 de septiembre de 2010, Ahn se declaró culpable de ser cómplice por encubrimiento por contrabando ilegal de medios digitales que violan patentes contra la ley.
El 6 de octubre de 2010, un jurado federal en Atlanta encontró a Barry y Baradji culpables de un cargo cada uno de violación delictiva de derechos de propiedad intelectual. Las pruebas presentadas en el juicio establecieron que Baradji y Barry utilizaron espacio en almacenes en Metropolitan Parkway en Atlanta para "quemar" o copiar DVDs y CDs. Según las pruebas presentadas en el juicio, Baradji y Barry produjeron y pagaron a terceros para que produjeran rótulos y embalajes falsificados para armar el producto final vendido por Baradji y Barry a través de sus tiendas minoristas. De acuerdo con pruebas presentadas en el juicio, la operación de almacén de los demandados reprodujo miles de CDs y DVDs por semana para distribución. De acuerdo con el expediente judicial, Sankano también adquirió rótulos, embalaje y medios digitales en blanco en el almacén para su uso para la fabricación de copias ilegales de materiales con copyright en DVDs y CDs. Ahn asistió en proveer a los productores DVDs y CDs en blanco que habían sido ilegalmente contrabandeados a los Estados Unidos.
Los demandados sentenciados estaban entre 13 acusados por un gran jurado federal el 19 de mayo de 2009, en una acusación formal que alegaba diversos delitos asociados a copyright, marcas y falsificación.
Estuvieron a cargo de la acusación en el caso el Fiscal Federal Auxiliar Brian Pearce del Distrito Norte de Georgia y el Consejero Principal John H. Zacharia de la Sección de Delitos de Informática y Propiedad Intelectual de la División de lo Penal. El caso fue investigado por agentes especiales del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)] y el Departamento de Seguridad Nacional, Servicios de Inmigración y Control de Aduanas, en conjunto con agentes de la Unidad de Delincuencia Organizada del Departamento de Policía de Atlanta; el Departamento de Policía de College Park, Ga.; y el Departamento de Policía de East Point, Ga. Brindaron asistencia la Asociación de la Industria de Grabaciones de EE.UU. [Recording Industry Association of America] y la Asociación Cinematográfica de EE.UU. [Motion Picture Association of America].
23 February 2011
U.S. Sues Two California Lawyers & Kentucky Financial Professional to Block Nationwide Promotion of "Intermediary Transaction" Tax ShelterRead the Press Release
WASHINGTON – The United States has sued two Southern California attorneys and a Kentucky financial professional to bar them from promoting an allegedly abusive tax shelter known as an “intermediary transaction,” the Justice Department announced today. The lawsuit was filed in federal court in Camden, N.J., against Charles Klink of Fontana, Calif., Caleb Grodsky of Los Angeles and Steven Block of Louisville, Ky. According to the government’s civil injunction complaint, Klink is a former partner in the Los Angeles office of the law firm Manatt, Phelps & Phillips LLP, while Block has worked in the financial services industry for over two decades. The complaint asserts that Klink, Grodsky and Block have made millions of dollars helping individuals across the country sell corporate assets without paying federal corporate income taxes on the resulting capital gain income.
“Stopping the marketing and use of abusive tax shelters remains one of our top priorities for 2011,” said John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division. “White-collar professionals who promote these schemes face the prospect of significant legal sanctions. The IRS and the Justice Department are working diligently to ensure that people who buy into these sophisticated tax dodges ultimately have to pay the taxes they owe, along with interest and appropriate penalties.”
Klink, Grodsky and Block purportedly use an intricate web of trusts and corporations to act as intermediaries between their customers, who own closely held corporations, and buyers who want to buy the customers’ corporate assets. Examples of such assets discussed in the complaint include a $205 million, twelve-story office building in Washington, D.C.; a $3.5 million vineyard in St. Helena, Calif.; and a $22.2 million, six-building office campus in Laguna Hills, Calif.
According to the complaint, the defendants purchase all of the stock in a customer’s corporation shortly before or after the asset sale. The government alleges that they then falsely tell the customer that, following the defendants’ purchase of the corporation, the defendants will restructure the corporation into a profitable new business and have it pay federal income taxes on the capital gain from the asset sale.
However, the complaint alleges, Klink, Grodsky and Block never intend to pay the corporate income taxes on those capital gains. Rather, within days of taking control of the corporation, and following the sale of all its assets, the defendants allegedly implement what is known as a “distressed asset trust” (DAT) tax shelter and claim deductions for sham fees to offset most or all of the capital gains. The defendants also allegedly take steps to siphon off the corporation’s assets, leaving it with no funds to pay any taxes due once the Internal Revenue Service (IRS) learns of the scheme and assesses taxes.
According to the complaint, Klink, Grodsky and Block obtain the DAT tax shelters from John Rogers, a Chicago attorney and former partner at Seyfarth Shaw LLP. In November 2010 the Justice Department sued Rogers to bar him from promoting the DAT tax shelter. According to that lawsuit, Rogers’s DAT scheme involves a foreign business essentially selling low-value debt, such as bad checks, to a U.S. entity created and controlled by Rogers. In return, the U.S. entity allegedly pays the foreign company 1 to 2 percent of the debt’s face value and then contributes portions of the debt to multiple supposed “trusts,” which are also created and controlled by Rogers. Rogers then allegedly sells the trusts to his customers for a price pegged to the tax loss to be generated by the tax shelter.
The complaint against Klink, Grodsky and Block alleges that they have caused the corporations they acquired to deduct improperly over $112 million of distressed consumer receivables. The government estimates that the tax loss resulting from their promotion of the tax schemes at issue in this case exceeds $40 million. The complaint also asks the court to require them to produce any records identifying any persons who have participated in any tax scheme they promoted.
More information about the Tax Division’s enforcement efforts can be found on the Division’s website.
Two Shenandoah, Pa., Men Sentenced for the Fatal Beating of Luis RamirezRead the Press Release
WASHINGTON - Brandon Piekarsky,19, and Derrick Donchak, 21, both of Shenandoah, Pa., were sentenced today to nine years in prison for the fatal beating of Luis Ramirez, the Justice Department announced.
Piekarsky and Donchak were ordered to serve three years of supervised release and pay $550 to the Pennsylvania victim compensation fund, as well as the special assessments for each count. Donchak was also sentenced to an additional 30 months for obstruction, which will be served concurrently.
On Oct. 14 2010, a federal jury in the Middle District of Pennsylvania found both defendants guilty of a felony violation of the federal Fair Housing Act for fatally beating Luis Ramirez because he was Latino and because they did not want Latinos living in Shenandoah. In addition, the jury found that Donchak conspired to, and did in fact, obstruct justice during the investigation of this crime.
According to the evidence presented at trial, on July 12, 2008, the defendants came upon Ramirez in a park after leaving a community festival. The defendants and several of their friends, some of whom testified during the trial, attacked Ramirez. During the course of the beating, the defendants and their friends yelled racial epithets in which they repeatedly referred to Ramirez in derogatory racial terms and told him "This is Shenandoah. This is America. Go back to Mexico." According to testimony, Donchak beat Ramirez while holding a thick piece of metal identified at trial as a "fist pack." After another of their friends punched Ramirez in the face, causing him to fall back and hit his head on the ground, Piekarsky kicked Ramirez in the head as he lay unconscious and prone on the ground. After Piekarsky kicked Ramirez, he told a bystander who was married to a Latino man to "tell your Mexican friends to get out of Shenandoah or you will be lying next to him." After the fight concluded, Ramirez was air-lifted to Geisinger Regional Medical Center, where he died of massive head injuries. The jury also heard evidence that, immediately following the beating, Donchak conspired to obstruct the investigation of the fatal assault.
"Acts of violence, like the beating of Luis Ramirez, have no place in this country," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division of the Department of Justice. "As this case illustrates, the Civil Rights Division is committed to vigorously protecting the civil rights of every person who lives in this country."
This case was investigated by special agents from the FBI’s Philadelphia Division and was prosecuted by Myesha Braden and Gerard V. Hogan of the Civil Rights Division’s Criminal Section with assistance from the U.S. Attorney’s Office for the Middle District of Pennsylvania.
Texas Man Pleads Guilty to Federal Hate Crime in Connection with Mosque Arson in Arlington, TexasRead the Press Release
WASHINGTON – Henry Clay Glaspell, of Arlington, Texas, pleaded guilty today to a hate crime charge stemming from the ethnically-motivated arson of a children’s playground at the Dar El-Eman Islamic Center in Arlington in July 2010, the Justice Department announced today.
Glaspell, 34, pleaded guilty to damaging religious property in violation of federal hate crime laws before U.S. District Judge Terry R. Means in federal court in Fort Worth, Texas. During the plea hearing, Glaspell admitted that he set fire to playground equipment at the mosque as part of a series of ethnically-motivated acts directed at individuals of Arab or Middle Eastern descent associated with the mosque. Glaspell further admitted that he stole and damaged mosque property, threw used cat litter at the front door of the mosque, and shouted racial or ethnic slurs at individuals of Arab or Middle Eastern descent at the mosque on multiple occasions. This is the 50th prosecution of post-Sept. 11, 2001, backlash against Arab and Muslim Americans.
"Arab-Americans are part of the American family, and the defendant today admitted that he targeted Arabs at a Mosque where people worship peacefully and children play," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "Hate-fueled incidents of this kind will not be tolerated in our country. The Justice Department is committed to vigorously prosecuting hate crimes against all persons."
"All members of our community must be free to live without fear that they will be targeted because of their ethnicity or religion. This office will vigorously prosecute those who commit such despicable acts of hatred," said U.S. Attorney for the Northern District of Texas James T. Jacks.
"The crime in this case underscores the importance of enforcing the nation’s civil rights laws, and the FBI is firmly committed to that enforcement. One of our most important responsibilities is protecting the right to worship free from violence, fear or intimidation," said Robert E. Casey Jr., Special Agent in Charge, FBI, Dallas Division. "As this case indicates, the FBI, together with and our state and local law enforcement allies, will vigorously investigate and prosecute those who attack that right."
Glaspell’s sentencing has been set for July 11, 2011. Glaspell faces a maximum penalty of 20 years in prison for using fire to damage religious property in violation of federal hate crimes laws.
This case was jointly investigated by Arlington Police Department and the FBI. The case is being prosecuted by Trial Attorney Victor Boutros from the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Alex Lewis for the Northern District of Texas, with assistance from the Tarrant County District Attorney's Office.
Statement of the Attorney General on Litigation Involving the Defense of Marriage ActRead the Press Release
WASHINGTON – The Attorney General made the following statement today about the Department’s course of action in two lawsuits, Pedersen v. OPM and Windsor v. United States, challenging Section 3 of the Defense of Marriage Act (DOMA), which defines marriage for federal purposes as only between a man and a woman:
In the two years since this Administration took office, the Department of Justice has defended Section 3 of the Defense of Marriage Act on several occasions in federal court. Each of those cases evaluating Section 3 was considered in jurisdictions in which binding circuit court precedents hold that laws singling out people based on sexual orientation, as DOMA does, are constitutional if there is a rational basis for their enactment. While the President opposes DOMA and believes it should be repealed, the Department has defended it in court because we were able to advance reasonable arguments under that rational basis standard.
Section 3 of DOMA has now been challenged in the Second Circuit, however, which has no established or binding standard for how laws concerning sexual orientation should be treated. In these cases, the Administration faces for the first time the question of whether laws regarding sexual orientation are subject to the more permissive standard of review or whether a more rigorous standard, under which laws targeting minority groups with a history of discrimination are viewed with suspicion by the courts, should apply.
After careful consideration, including a review of my recommendation, the President has concluded that given a number of factors, including a documented history of discrimination, classifications based on sexual orientation should be subject to a more heightened standard of scrutiny. The President has also concluded that Section 3 of DOMA, as applied to legally married same-sex couples, fails to meet that standard and is therefore unconstitutional. Given that conclusion, the President has instructed the Department not to defend the statute in such cases. I fully concur with the President’s determination.
Consequently, the Department will not defend the constitutionality of Section 3 of DOMA as applied to same-sex married couples in the two cases filed in the Second Circuit. We will, however, remain parties to the cases and continue to represent the interests of the United States throughout the litigation. I have informed Members of Congress of this decision, so Members who wish to defend the statute may pursue that option. The Department will also work closely with the courts to ensure that Congress has a full and fair opportunity to participate in pending litigation.
Furthermore, pursuant to the President ’ s instructions, and upon further notification to Congress, I will instruct Department attorneys to advise courts in other pending DOMA litigation of the President's and my conclusions that a heightened standard should apply, that Section 3 is unconstitutional under that standard and that the Department will cease defense of Section 3.
The Department has a longstanding practice of defending the constitutionality of duly-enacted statutes if reasonable arguments can be made in their defense. At the same time, the Department in the past has declined to defend statutes despite the availability of professionally responsible arguments, in part because – as here – the Department does not consider every such argument to be a “reasonable” one. Moreover, the Department has declined to defend a statute in cases, like this one, where the President has concluded that the statute is unconstitutional.
Much of the legal landscape has changed in the 15 years since Congress passed DOMA. The Supreme Court has ruled that laws criminalizing homosexual conduct are unconstitutional. Congress has repealed the military’s Don’t Ask, Don’t Tell policy. Several lower courts have ruled DOMA itself to be unconstitutional. Section 3 of DOMA will continue to remain in effect unless Congress repeals it or there is a final judicial finding that strikes it down, and the President has informed me that the Executive Branch will continue to enforce the law. But while both the wisdom and the legality of Section 3 of DOMA will continue to be the subject of both extensive litigation and public debate, this Administration will no longer assert its constitutionality in court.
Six Alleged Bloods Gang Members and Associates Indicted in Tennessee on Federal Racketeering and Murder ChargesRead the Press Release
WASHINGTON – A superseding indictment returned by a federal grand jury in Nashville, Tenn., was unsealed today, charging s ix alleged members of the violent gang known as the Bloods with various racketeering and murder charges, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney for the Middle District of Tennessee Jerry E. Martin and Glenn Anderson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Nashville Field Division.
The superseding indictment charges the following defendants with conspiracy to participate in the racketeering activities of the Bloods:
· Keairus Wilson, aka “Key-Thang,” 21;
· Montez Hall, aka “Tez,” 21;
· Cedric Woods, aka “Lil Ced,” 22;
· Rondarius Williamson, aka “Killa,” 20;
· William Walden, aka “Wild Bill,” 22; and
· Kenneth Gaddie, aka “K.G.,” 21; all of Nashville.
The defendants are also charged with various counts of murder in aid of racketeering, murder resulting from the use and carrying of a firearm during and in relation to crimes of violence, using and carrying firearms during and in relation to crimes of violence, and conspiracy to use and carry firearms during and in relation to crimes of violence. Woods was arrested on Feb. 18, 2011, and appeared before U.S. Magistrate Judge John S. Bryant on that date. Walden was arrested this morning and is currently in state custody. Wilson, Hall and Williamson are currently in state custody. Gaddie has not yet been arrested.
“With today’s indictment, we have charged a total of 32 individuals with committing violent crimes, including murder, to advance the goals of their destructive gang,” said Assistant Attorney General Breuer. “The Bloods, like other street gangs, deal in violence and spread fear throughout our communities. But with these charges, and others we have announced in recent weeks, we are waging an aggressive fight against such violent organized groups.”
“The United States Attorney’s Office and our law enforcement partners will continue our vigilance directed at organized gangs and those who wreak havoc in our communities by their violent acts,” said U.S. Attorney Martin. “Those who choose to become involved in such a lifestyle should know that law enforcement at every level will work together tirelessly to bring them to justice.”
“If you insist on being involved in criminal activity with gangs and their undeniable acts of violence as alleged in the most recent indictment, be prepared for the consequences. It is only a matter of time until you will become the focal point of an investigation. Our goal is clear and has not changed. ATF and our law enforcement partners will continue to aggressively investigate those people who perpetuate the violence and remove them from the streets,” stated ATF Special Agent in Charge Anderson. “Cases like this continue to make communities large and small a safer place for all.”
“The tireless work of our Gang Unit and other police department investigative components ultimately showed that Bloods members were responsible for violence, including homicides, in more than one area of this city,” Nashville Police Chief Steve Anderson said. “This police department and our partners at the District Attorney’s Office and at the federal level will not tolerate this abhorrent behavior in our neighborhoods.”
According to the superseding indictment, the defendants were members and associates of the Bloods, a violent street gang that originated in Los Angeles in the 1970s, and ultimately migrated to cities throughout the United States, including Nashville. The Bloods gang has a hierarchal structure and a long-term and often lethal rivalry with the Crips gang.
The superseding indictment charges that from approximately 2006 until January 2011, Bloods gang members committed and conspired to commit acts of murder, attempted murder, robbery, narcotics trafficking, bribery and extortion. The superseding indictment alleges that the Bloods gang members met regularly to plan and agree upon the commission of crimes; maintained and circulated a collection of firearms for use in criminal activity by Bloods members; distributed controlled substances including cocaine, cocaine base, marijuana and hydromorphone, and used the proceeds of those drug transactions to help finance the gang’s illegal activities. The superseding indictment also alleges that Bloods gang members committed murder and other acts of violence against rival gang members and others.
The superseding indictment alleges that on June 14, 2008, Wilson shot and killed Michael Goins; on June 25, 2008, Gaddie shot and wounded two known individuals; on July 17, 2008, Wilson and Gaddie shot at a known individual; on July 19, 2008, Wilson, Hall and Woods shot and killed Alexandra Franklin; and on Dec. 20, 2008, Wilson assaulted a known individual during a gang-related incident at the Davidson County Jail. The superseding indictment also alleges that on Feb. 9, 2009, Williamson shot and wounded a known individual; on May 19, 2009, Williamson shot and killed Andreus Taylor; on Oct. 31, 2009, Williamson carjacked a known individual; and on Feb. 21, 2010, Walden and others, while armed with various firearms, shot and wounded two known individuals who were in a vehicle in Nashville.
The original indictment, returned by a federal grand jury in June 2010, charged 26 other members and associates of the Bloods with various racketeering, assault and murder charges. The indictment also alleged that Lonnie Greenlee, co-founder of the Galaxy Star Drug Awareness and Gang Prevention Center located in Nashville, allowed Bloods gang members to use the facility to conduct gang meetings. According to the indictment, Lonnie Greenlee and Galaxy Star employee Rodney Britton allegedly provided numerous Bloods gang members with fraudulent documentation of court-ordered community service hours in exchange for money.
An indictment is merely an accusation and is not evidence of guilt. All defendants have the right to a trial at which the government would have to bear the burden of proof beyond a reasonable doubt.
The case was investigated by the ATF; the Metropolitan Nashville Police Department; the Gallatin Police Department; and assisted by the U.S. Marshals Service and the Davidson County District Attorney’s Office.
The case is being prosecuted by Assistant U.S. Attorney Scarlett Singleton and Trial Attorney Cody L. Skipper of the Criminal Division’s Gang Unit.
The public is encouraged to report any information on Gaddie’s whereabouts to your local police department.
Los Angeles Man Pleads Guilty to Conspiracy to Violate the Clean Air Act’s Asbestos Work Practice StandardsRead the Press Release
WASHINGTON – John Bostick pleaded guilty today to conspiracy to violate the Clean Air Act’s asbestos work practice standards during the renovation of a 204-unit apartment building in Winnetka, Calif., in 2006.
The federal Clean Air Act requires those who own or supervise the renovation of buildings that contain asbestos to adhere to certain established work practice standards. These standards were created to ensure the safe removal and disposal of the asbestos and the protection of workers.
According to the plea agreement filed in federal court, Mr. Bostick knew in January 2006 that asbestos was present in the ceilings of the units of the apartment complex known as Forest Glen. Knowing that the asbestos was there, Mr. Bostick and his co-conspirators hired a group of workers who were not trained or certified to conduct asbestos abatements, and had them scrape the ceilings of the apartment units without telling the workers about the asbestos. The illegal scraping resulted in the repeated release of asbestos-containing material throughout the apartment complex and the surrounding area and also caused the unlicensed workers to potentially be exposed to asbestos. After the illegal asbestos abatement was shut down by an inspector from the California South Coast Air Quality Management District, the asbestos was cleaned up at a cost of about $1.2 million dollars.
On June 14, 2010, Joseph Yoon, the project manager, pleaded guilty to conspiracy to violate the Clean Air Act’s asbestos work place standards at the apartment site. A sentencing date has been set for April 25, 2011.
A six-count indictment charging conspiracy and multiple Clean Air Act violations is pending against co-defendant Charles Yi, who was the owner of the Forest Glen condominiums. The trial in this case is scheduled for Mar.15, 2011. The allegations in the indictment are mere accusations and all persons are presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the U.S. Environmental Protection Agency’s Office of Criminal Enforcement, the California South Coast Air Quality Management District and the California Department of Toxic Substances Control. The case is being prosecuted by the U.S. Attorney’s Office for the Central District of California and the U.S. Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Liberian Shipping Company Sentenced to Pay $2.4 Million for Falsifying Oil Record Book and Lying to Cover up Illegal Discharges of WasteRead the Press Release
WASHINGTON – Cardiff Marine Inc, a Liberian-registered shipping company, was sentenced today in federal court in Baltimore after pleading guilty to a felony violation of the Act to Prevent Pollution from Ships. The company admitted falsifying records of illegal discharges of oily waste from the M/V Capitola , making false statements to the Coast Guard and other acts of concealment. U.S. District Judge Marvin J. Garbis sentenced Cardiff to pay a $2.4 million fine and serve three years probation, subject to an environmental compliance plan that includes audits by an independent third party auditor.
The guilty plea and sentencing were announced by U.S. Attorney for the District of Maryland Rod J. Rosenstein; Ignacia S. Moreno, Assistant Attorney General, Environment & Natural Resources, U.S. Department of Justice; Rear Adm. Dean Lee, Commander of the U.S. Coast Guard's 5th District; Special Agent in Charge Otis E. Harris, Jr. of the Coast Guard Investigative Service-Chesapeake Region; and Special Agent in Charge David M. Dillon of Environmental Protection Agency’s Criminal Investigation Division.
According to court documents, the investigation into the M/V Capitola was launched on May 3, 2010, at the Port of Baltimore, after a crew member informed a clergyman, who was on board the Capitola on a pastoral visit, that there had been “monkey business in the engine room,” which involved a “magic pipe.” The magic pipe proved to be a bypass hose that allowed the dumping of waste oil overboard, circumventing pollution prevention equipment required by law. The crew member asked the minister to alert the Coast Guard and to pass on a flash drive bearing video taken in the ship’s engine room. That triggered an inspection of the Capitola, and ultimately, today’s guilty plea.
“The Department of Justice will continue to hold shipping companies like Cardiff accountable for breaking the laws that protect our oceans,” said Assistant Attorney General Moreno. “Shippers who fail to record discharges of oily waste, discharge waste illegally, or try to cover up this unacceptable and illegal practice will be prosecuted.”
“Cardiff Marine blatantly violated the law by dumping oil in the ocean and then lying to the Coast Guard about it,” said U.S. Attorney Rosenstein. “As part of the punishment for this crime, Cardiff Marine will pay a fine of $2.4 million, and Cardiff will remain under court supervision for three years.”
“The resolution of this case is a credit to our strong partnership with the Department of Justice,” said Rear Admiral Lee. “The Coast Guard brings to bear the expertise and detection capability of our marine inspectors, and our partnership with the Department of Justice allows us to hold marine polluters accountable.”
“The oceans must be protected from shipping companies that look to cut corners by dumping waste improperly,” said Special Agent-in-Charge Dillon. “Today’s action demonstrates that neither the government nor the public will tolerate the flagrant disregard of U.S. laws. Those who violate the law and pollute our waters will be vigorously prosecuted.”
An investigation, involving agents from the Coast Guard Investigative Service and EPA’s Criminal Investigative Division, with support from their agencies, confirmed that there had been an illegal discharge system on the Capitola as depicted in the whistleblower’s video. It showed a black hose tied in several places to overhead piping in the Capitola’s engine room. The hose connected one of the vessel’s waste oil tanks to a valve that opened directly to the ocean.
During its inspection, the Coast Guard interviewed members of the Capitola’s engine room crew, including the whistleblower. Three of these crew members had served on the Capitola for more than six months and during that time had witnessed multiple occasions when a hose was used to discharge the waste oil, sludge and water that had accumulated in the separated oil tank overboard, as directed by a senior engineering officer. None of these illegal discharges were recorded in the Oil Record Book, as required by law.
Investigators also learned that there had been a document called the Daily Sounding Record on the Capitola, and that it had tracked how much waste oil, sludge and bilge water was in each waste tank, on a daily basis. This record would have been useful during the Coast Guard’s inspection of the Capitola in that it could have shown when the levels of the waste tanks changed, which could be compared to entries in the Oil Record Book. Sudden, unexplained drops in the measurements could have indicated specific dates when wastes were discharged overboard. The Daily Sounding Record was not produced to the Coast Guard. The senior engineering officer who kept these records told the Coast Guard that the only record of waste tank levels that he had were undated scraps of paper in his office.
This prosecution was made possible through the combined efforts of the U.S. Coast Guard Sector-Baltimore; the Coast Guard Investigative Service-Baltimore; Coast Guard Fifth District Legal Office; Coast Guard Office of Maritime and International Law; Coast Guard Office of Investigations and Analysis; EPA Criminal Investigations Division. The cases were prosecuted by Thomas T. Ballantine of the Environmental Crimes Section of the U.S. Department of Justice and Justin S. Herring, Assistant U.S. Attorney in Baltimore.
Letter from the Attorney General to Congress on Litigation Involving the Defense of Marriage ActRead the Press Release
WASHINGTON – The Attorney General sent the following letter today to Congressional leadership to inform them of the Department’s course of action in two lawsuits, Pedersen v. OPM and Windsor v. United States, challenging Section 3 of the Defense of Marriage Act (DOMA), which defines marriage for federal purposes as only between a man and a woman. A copy of the letter is also attached.
The Honorable John A. Boehner
Speaker
U.S. House of Representatives
Washington, DC 20515Re: Defense of Marriage Act
Dear Mr. Speaker:
After careful consideration, including review of a recommendation from me, the President of the United States has made the determination that Section 3 of the Defense of Marriage Act (“DOMA”), 1 U.S.C. § 7, i as applied to same-sex couples who are legally married under state law, violates the equal protection component of the Fifth Amendment. Pursuant to 28 U.S.C. § 530D, I am writing to advise you of the Executive Branch’s determination and to inform you of the steps the Department will take in two pending DOMA cases to implement that determination.
While the Department has previously defended DOMA against legal challenges involving legally married same-sex couples, recent lawsuits that challenge the constitutionality of DOMA Section 3 have caused the President and the Department to conduct a new examination of the defense of this provision. In particular, in November 2010, plaintiffs filed two new lawsuits challenging the constitutionality of Section 3 of DOMA in jurisdictions without precedent on whether sexual-orientation classifications are subject to rational basis review or whether they must satisfy some form of heightened scrutiny. Windsor v. United States, No. 1:10-cv-8435 (S.D.N.Y.); Pedersen v. OPM, No. 3:10-cv-1750 (D. Conn.). Previously, the Administration has defended Section 3 in jurisdictions where circuit courts have already held that classifications based on sexual orientation are subject to rational basis review, and it has advanced arguments to defend DOMA Section 3 under the binding standard that has applied in those cases.ii
These new lawsuits, by contrast, will require the Department to take an affirmative position on the level of scrutiny that should be applied to DOMA Section 3 in a circuit without binding precedent on the issue. As described more fully below, the President and I have concluded that classifications based on sexual orientation warrant heightened scrutiny and that, as applied to same-sex couples legally married under state law, Section 3 of DOMA is unconstitutional.
Standard of Review
The Supreme Court has yet to rule on the appropriate level of scrutiny for classifications based on sexual orientation. It has, however, rendered a number of decisions that set forth the criteria that should inform this and any other judgment as to whether heightened scrutiny applies: (1) whether the group in question has suffered a history of discrimination; (2) whether individuals “exhibit obvious, immutable, or distinguishing characteristics that define them as a discrete group”; (3) whether the group is a minority or is politically powerless; and (4) whether the characteristics distinguishing the group have little relation to legitimate policy objectives or to an individual’s “ability to perform or contribute to society.” See Bowen v. Gilliard, 483 U.S. 587, 602-03 (1987); City of Cleburne v. Cleburne Living Ctr., 473 U.S. 432, 441-42 (1985).
Each of these factors counsels in favor of being suspicious of classifications based on sexual orientation. First and most importantly, there is, regrettably, a significant history of purposeful discrimination against gay and lesbian people, by governmental as well as private entities, based on prejudice and stereotypes that continue to have ramifications today. Indeed, until very recently, states have “demean[ed] the[] existence” of gays and lesbians “by making their private sexual conduct a crime.” Lawrence v. Texas, 539 U.S. 558, 578 (2003).iii
Second, while sexual orientation carries no visible badge, a growing scientific consensus accepts that sexual orientation is a characteristic that is immutable, see Richard A. Posner, Sex and Reason 101 (1992); it is undoubtedly unfair to require sexual orientation to be hidden from view to avoid discrimination, see Don’t Ask, Don’t Tell Repeal Act of 2010, Pub. L. No. 111-321, 124 Stat. 3515 (2010).
Third, the adoption of laws like those at issue in Romer v. Evans, 517 U.S. 620 (1996), and Lawrence, the longstanding ban on gays and lesbians in the military, and the absence of federal protection for employment discrimination on the basis of sexual orientation show the group to have limited political power and “ability to attract the [favorable] attention of the lawmakers.” Cleburne, 473 U.S. at 445. And while the enactment of the Matthew Shepard Act and pending repeal of Don’t Ask, Don’t Tell indicate that the political process is not closed entirely to gay and lesbian people, that is not the standard by which the Court has judged “political powerlessness.” Indeed, when the Court ruled that gender-based classifications were subject to heightened scrutiny, women already had won major political victories such as the Nineteenth Amendment (right to vote) and protection under Title VII (employment discrimination).
Finally, there is a growing acknowledgment that sexual orientation “bears no relation to ability to perform or contribute to society.” Frontiero v. Richardson, 411 U.S. 677, 686 (1973) (plurality). Recent evolutions in legislation (including the pending repeal of Don’t Ask, Don’t Tell), in community practices and attitudes, in case law (including the Supreme Court’s holdings in Lawrence and Romer), and in social science regarding sexual orientation all make clear that sexual orientation is not a characteristic that generally bears on legitimate policy objectives. See, e.g., Statement by the President on the Don’t Ask, Don’t Tell Repeal Act of 2010 (“It is time to recognize that sacrifice, valor and integrity are no more defined by sexual orientation than they are by race or gender, religion or creed.”)
To be sure, there is substantial circuit court authority applying rational basis review to sexual-orientation classifications. We have carefully examined each of those decisions. Many of them reason only that if consensual same-sex sodomy may be criminalized under Bowers v. Hardwick, then it follows that no heightened review is appropriate – a line of reasoning that does not survive the overruling of Bowers in Lawrence v. Texas, 538 U.S. 558 (2003).iv Others rely on claims regarding “procreational responsibility” that the Department has disavowed already in litigation as unreasonable, or claims regarding the immutability of sexual orientation that we do not believe can be reconciled with more recent social science understandings.v And none engages in an examination of all the factors that the Supreme Court has identified as relevant to a decision about the appropriate level of scrutiny. Finally, many of the more recent decisions have relied on the fact that the Supreme Court has not recognized that gays and lesbians constitute a suspect class or the fact that the Court has applied rational basis review in its most recent decisions addressing classifications based on sexual orientation, Lawrence and Romer.vi But neither of those decisions reached, let alone resolved, the level of scrutiny issue because in both the Court concluded that the laws could not even survive the more deferential rational basis standard.
Application to Section 3 of DOMA
In reviewing a legislative classification under heightened scrutiny, the government must establish that the classification is “substantially related to an important government objective.” Clark v. Jeter, 486 U.S. 456, 461 (1988). Under heightened scrutiny, “a tenable justification must describe actual state purposes, not rationalizations for actions in fact differently grounded.” United States v. Virginia , 518 U.S. 515, 535-36 (1996). “The justification must be genuine, not hypothesized or invented post hoc in response to litigation.” Id. at 533.
In other words, under heightened scrutiny, the United States cannot defend Section 3 by advancing hypothetical rationales, independent of the legislative record, as it has done in circuits where precedent mandates application of rational basis review. Instead, the United States can defend Section 3 only by invoking Congress’ actual justifications for the law.
Moreover, the legislative record underlying DOMA’s passage contains discussion and debate that undermines any defense under heightened scrutiny. The record contains numerous expressions reflecting moral disapproval of gays and lesbians and their intimate and family relationships – precisely the kind of stereotype-based thinking and animus the Equal Protection Clause is designed to guard against.vii See Cleburne, 473 U.S. at 448 (“mere negative attitudes, or fear” are not permissible bases for discriminatory treatment); see also Romer, 517 U.S. at 635 (rejecting rationale that law was supported by “the liberties of landlords or employers who have personal or religious objections to homosexuality”); Palmore v. Sidotti, 466 U.S. 429, 433 (1984) (“Private biases may be outside the reach of the law, but the law cannot, directly or indirectly, give them effect.”).
Application to Second Circuit Cases
After careful consideration, including a review of my recommendation, the President has concluded that given a number of factors, including a documented history of discrimination, classifications based on sexual orientation should be subject to a heightened standard of scrutiny. The President has also concluded that Section 3 of DOMA, as applied to legally married same-sex couples, fails to meet that standard and is therefore unconstitutional. Given that conclusion, the President has instructed the Department not to defend the statute in Windsor and Pedersen, now pending in the Southern District of New York and the District of Connecticut. I concur in this determination.
Notwithstanding this determination, the President has informed me that Section 3 will continue to be enforced by the Executive Branch. To that end, the President has instructed Executive agencies to continue to comply with Section 3 of DOMA, consistent with the Executive’s obligation to take care that the laws be faithfully executed, unless and until Congress repeals Section 3 or the judicial branch renders a definitive verdict against the law’s constitutionality. This course of action respects the actions of the prior Congress that enacted DOMA, and it recognizes the judiciary as the final arbiter of the constitutional claims raised.
As you know, the Department has a longstanding practice of defending the constitutionality of duly-enacted statutes if reasonable arguments can be made in their defense, a practice that accords the respect appropriately due to a coequal branch of government. However, the Department in the past has declined to defend statutes despite the availability of professionally responsible arguments, in part because the Department does not consider every plausible argument to be a “reasonable” one. “[D]ifferent cases can raise very different issues with respect to statutes of doubtful constitutional validity,” and thus there are “a variety of factors that bear on whether the Department will defend the constitutionality of a statute.” Letter to Hon. Orrin G. Hatch from Assistant Attorney General Andrew Fois at 7 (Mar. 22, 1996). This is the rare case where the proper course is to forgo the defense of this statute. Moreover, the Department has declined to defend a statute “in cases in which it is manifest that the President has concluded that the statute is unconstitutional,” as is the case here. Seth P. Waxman, Defending Congress, 79 N.C. L.Rev. 1073, 1083 (2001).
In light of the foregoing, I will instruct the Department’s lawyers to immediately inform the district courts in Windsor and Pedersen of the Executive Branch’s view that heightened scrutiny is the appropriate standard of review and that, consistent with that standard, Section 3 of DOMA may not be constitutionally applied to same-sex couples whose marriages are legally recognized under state law. If asked by the district courts in the Second Circuit for the position of the United States in the event those courts determine that the applicable standard is rational basis, the Department will state that, consistent with the position it has taken in prior cases, a reasonable argument for Section 3’s constitutionality may be proffered under that permissive standard. Our attorneys will also notify the courts of our interest in providing Congress a full and fair opportunity to participate in the litigation in those cases. We will remain parties to the case and continue to represent the interests of the United States throughout the litigation.
Furthermore, pursuant to the President’s instructions, and upon further notification to Congress, I will instruct Department attorneys to advise courts in other pending DOMA litigation of the President's and my conclusions that a heightened standard should apply, that Section 3 is unconstitutional under that standard and that the Department will cease defense of Section 3.
A motion to dismiss in the Windsor and Pedersen cases would be due on March 11, 2011. Please do not hesitate to contact us if you have any questions.
Sincerely yours,
Eric H. Holder, Jr.
Attorney General______________________________________
i DOMA Section 3 states: “In determining the meaning of any Act of Congress, or of any ruling, regulation, or interpretation of the various administrative bureaus and agencies of the United States, the word ‘marriage’ means only a legal union between one man and one woman as husband and wife, and the word ‘spouse’ refers only to a person of the opposite sex who is a husband or a wife.”
ii See , e.g., Dragovich v. U.S. Department of the Treasury, 2011 WL 175502 (N.D. Cal. Jan. 18, 2011); Gill v. Office of Personnel Management, 699 F. Supp. 2d 374 (D. Mass. 2010); Smelt v. County of Orange, 374 F. Supp. 2d 861, 880 (C.D. Cal.,2005); Wilson v. Ake, 354 F.Supp.2d 1298, 1308 (M.D. Fla. 2005); In re Kandu, 315 B.R. 123, 145 (Bkrtcy. W.D. Wash. 2004); In re Levenson, 587 F.3d 925, 931 (9th Cir. E.D.R. Plan Administrative Ruling 2009).
iii While significant, that history of discrimination is different in some respects from the discrimination that burdened African-Americans and women. See Adarand Constructors, Inc. v. Pena, 515 U.S. 200, 216 (1995) (classifications based on race “must be viewed in light of the historical fact that the central purpose of the Fourteenth Amendment was to eliminate racial discrimination emanating from official sources in the States,” and “[t]his strong policy renders racial classifications ‘constitutionally suspect.’”); United States v. Virginia, 518 U.S. 515, 531 (1996) (observing that “‘our Nation has had a long and unfortunate history of sex discrimination’” and pointing out the denial of the right to vote to women until 1920). In the case of sexual orientation, some of the discrimination has been based on the incorrect belief that sexual orientation is a behavioral characteristic that can be changed or subject to moral approbation. Cf. Cleburne, 473 U.S. at 441 (heightened scrutiny may be warranted for characteristics “beyond the individual’s control” and that “very likely reflect outmoded notions of the relative capabilities of” the group at issue); Boy Scouts of America v. Dale, 530 U.S. 640 (2000) (Stevens, J., dissenting) (“Unfavorable opinions about homosexuals ‘have ancient roots.’” (quoting Bowers, 478 U.S. at 192)).
iv See Equality Foundation v. City of Cincinnati, 54 F.3d 261, 266–67 & n. 2. (6th Cir. 1995); Steffan v. Perry, 41 F.3d 677, 685 (D.C. Cir. 1994); Woodward v. United States, 871 F.2d 1068, 1076 (Fed. Cir. 1989); Ben-Shalom v. Marsh, 881 F.2d 454, 464 (7th Cir. 1989); Padula v. Webster, 822 F.2d 97, 103 (D.C. Cir. 1987).
v See, e.g., Lofton v. Secretary of the Dep’t of Children & Family Servs., 358 F.3d 804, 818 (11th Cir. 2004) (discussing child-rearing rationale); High Tech Gays v. Defense Indust. Sec. Clearance Office, 895 F.2d 563, 571 (9th Cir. 1990) (discussing immutability). As noted, this Administration has already disavowed in litigation the argument that DOMA serves a governmental interest in “responsible procreation and child-rearing.” H.R. Rep. No. 104-664, at 13. As the Department has explained in numerous filings, since the enactment of DOMA, many leading medical, psychological, and social welfare organizations have concluded, based on numerous studies, that children raised by gay and lesbian parents are as likely to be well-adjusted as children raised by heterosexual parents.
vi See Cook v. Gates, 528 F.3d 42, 61 (1st Cir. 2008); Citizens for Equal Prot. v. Bruning, 455 F.3d 859, 866 (8th Cir. 2006); Johnson v. Johnson, 385 F.3d 503, 532 (5th Cir. 2004); Veney v. Wyche, 293 F.3d 726, 732 (4th Cir. 2002); Equality Foundation of Greater Cincinnati, Inc. v. City of Cincinnati, 128 F.3d 289, 292-94 (6th Cir. 1997).
vii See, e.g., H.R. Rep. at 15–16 (judgment [opposing same-sex marriage] entails both moral disapproval of homosexuality and a moral conviction that heterosexuality better comports with traditional (especially Judeo-Christian) morality”); id. at 16 (same-sex marriage “legitimates a public union, a legal status that most people . . . feel ought to be illegitimate” and “put[s] a stamp of approval . . . on a union that many people . . . think is immoral”); id. at 15 (“Civil laws that permit only heterosexual marriage reflect and honor a collective moral judgment about human sexuality”); id. (reasons behind heterosexual marriage—procreation and child-rearing—are “in accord with nature and hence have a moral component”); id. at 31 (favorably citing the holding in Bowers that an “anti-sodomy law served the rational purpose of expressing the presumed belief . . . that homosexual sodomy is immoral and unacceptable”); id. at 17 n.56 (favorably citing statement in dissenting opinion in Romer that “[t]his Court has no business . . . pronouncing that ‘animosity’ toward homosexuality is evil”).
Justice Department Sues Georgia Man to Stop Him from Preparing Tax Returns for OthersRead the Press Release
WASHINGTON – The United States has asked a federal court to stop Cecil Collier, who operates under the trade name "Cairo Fast Tax," from preparing federal tax returns for others, the Justice Department announced today. The government’s civil injunction complaint, filed in U.S. District Court in Albany, Ga., alleges that Collier prepares tax returns for customers that falsely claim the earned income tax credit (EITC).
The government alleges that Collier claimed the credit, or a far larger credit than was warranted, on his customers’ returns even though he knew or should have known that the customers were not entitled to the credit claimed. Collier allegedly did so by falsely claiming dependents or qualifying children and by overstating earned income. Collier also allegedly has not filed his own federal income tax returns since 2004, and in March 2010 the Internal Revenue Service (IRS) assessed over $37,000 in penalties against him.
According to the complaint, of the more than 3,500 tax returns prepared by Collier during the 2006 through 2009 tax years, at least 87 percent claimed an EITC. The complaint further states that, of the returns prepared by Collier that the IRS audited for issues concerning the EITC, 98 percent of them required adjustments. The government estimates that Collier’s tax return preparation may have resulted in more than $12 million in lost taxes.
Additional information about the Justice Department’s recent efforts to stop fraudulent claims for tax credits is available here . In the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop tax fraud promoters and tax return preparers. Information about these cases is available on the Justice Department website.
Hombre de Los Ángeles se declara culpable de conspiración para violar las normas de práctica laboral contra el amianto de la Ley de Aire LimpioRead the Press Release
WASHINGTON - John Bostick se declaró culpable hoy de conspiración para violar las normas de práctica laboral contra el amianto de la Ley de Aire Limpio durante la renovación de un edificio de apartamentos de 204 unidades en Winnetka, Calif., en 2006.
La Ley de Aire Limpio federal exige que quienes sean propietarios de o supervisen la renovación de edificios que contengan amianto cumplan con ciertas normas de práctica laboral establecidas. Dichas normas fueron creadas para garantizar la eliminación y remoción seguro del amianto y la protección de los trabajadores.
Según el acuerdo de declaración de culpabilidad presentado hoy al tribunal federal, el Sr. Bostick sabía en enero de 2006 que había amianto presente en los cielorrasos de las unidades del complejo de apartamentos conocido como Forest Glen. A sabiendas de que había amianto presente, el Sr. Bostick y sus coconspiradores contrataron a un grupo de trabajadores no capacitados o certificados para realizar la eliminación de amianto, haciéndolos raspar los cielorrasos de los apartamentos sin informar a los trabajadores acerca del amianto. El trabajo ilegal resultó en la liberación repetida de material que contenía amianto en todo el complejo de apartamentos y el área adyacente, causando también la exposición potencial al amianto de los trabajadores sin licencia. Después de que acabó con la eliminación ilegal de amianto un inspector del Distrito de Gestión de Calidad del Aire de la Costa Sur de California, se eliminó el amianto a un costo de alrededor de 1.2 millones de dólares.
El 14 de junio de 2010, Joseph Yoon, el gerente de proyecto, se declaró culpable de conspirar para violar las normas de lugar de trabajo con amianto de la Ley de Aire Limpio en el predio del complejo. La fecha de la lectura de la sentencia ha sido programada para el 25 de abril de 2011.
Una acusación formal de seis cargos que acusa al codemandado Charles Yi, propietario de los condominios Forest Glen, de conspiración y múltiples violaciones de la Ley de Aire Limpio se encuentra pendiente. El enjuiciamiento correspondiente ha sido programado para el 15 de marzo de 2011. Los alegatos en la acusación formal son meras acusaciones y se supone que todas las personas son inocentes hasta que se haya probado su culpabilidad más allá de la duda razonable en un tribunal.
El caso fue investigado por la Oficina de Coacción Penal de la Agencia de Protección Ambiental de EE.UU., el Distrito de Gestión de Calidad de la Costa Sur de California y el Departamento de Control de Sustancias Tóxicas de California. Están a cargo de la acusación en el caso la Fiscalía Federal para el Distrito Central de California y la Sección de Delitos Ambientales de la División de Recursos Naturales del Departamento de Justicia de EE.UU.
Four Swiss Bankers Charged with Helping U.S. Taxpayers Use Secret Accounts at Swiss Banks to Evade U.S. TaxesRead the Press Release
WASHINGTON – Marco Parenti Adami, Emanuel Agustino, Michele Bergantino and Roger Schaerer, bankers at an international bank incorporated and with its headquarters in Zurich, Switzerland, with offices worldwide, including New York City and Miami, were indicted by a federal grand jury in the Eastern District of Virginia and charged with conspiring with other Swiss bankers to defraud the United States, the Justice Department and the Internal Revenue Service (IRS) announced today.
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia; John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division; and Douglas Shulman, Commissioner of the IRS, made the announcement.
According to the indictment, the international bank’s managers and bankers engaged in illegal cross-border banking that was designed to assist U.S. customers evade their income taxes by opening and maintaining secret bank accounts at the bank and other Swiss banks. As of the fall of 2008, the international bank maintained thousands of secret accounts for customers in the United States with as much as $3 billion in total assets under management in those accounts. The conspiracy dates back to 1953 and involved two generations of U.S. tax evaders including U.S. customers who inherited secret accounts at the international bank.
The indictment asserts that Marco Parenti Adami, an Italian national, was a Geneva, Switzerland-based member of senior management at the bank where he catered to high net worth individuals in North America and managed other bankers with similar clientele. It is also alleged that Roger Schaerer, a Swiss national, worked for the bank in New York City where he assisted U.S. taxpayers with their secret accounts. The indictment also alleges that Emanuel Agustino and Michele Bergantino were bankers for the international bank who traveled to the United States to assist U.S. taxpayers in evading their U.S. taxes through the use of secret bank accounts in Switzerland. It is further alleged in the indictment that Emanuel Agustino left the international bank and continued the tax fraud scheme at two other private Swiss banks.
According to the indictment, the defendants and their co-conspirators solicited U.S. customers to open secret accounts because Swiss bank secrecy would permit them to conceal from the IRS their ownership of accounts at the bank and other Swiss banks. It is further alleged that they provided unlicensed and unregistered banking services and investment advice to customers in the United States in person while on travel to here, including at the international bank’s representative office in New York City and by mailings, e-mail and telephone calls to and from the United States.
The indictment further alleges that the defendants and their co-conspirators caused U.S. customers to travel outside the United States, to destinations including Switzerland and the Bahamas, to conduct banking related to their secret accounts; opened secret accounts in the names of nominee tax haven entities for U.S. customers; accepted IRS forms that falsely stated under penalties of perjury that the owners of the secret accounts were not subject to U.S. taxation; advised U.S. customers to structure withdrawals from their secret accounts in amounts less than $10,000 in an attempt to conceal the secret account and the transactions from American authorities; and advised U.S. customers to utilize offshore credit, and debit cards linked to their secret accounts and provided the customers with such cards, including cards issued by American Express, Visa and Maestro.
According to the indictment, after the bank decided to close the secret accounts maintained by U.S. customers, the defendants encouraged and assisted the customers to transfer their secret accounts to other banks in Switzerland and Hong Kong as a means of continuing to hide their assets from the IRS and discouraged the customers from disclosing their secret accounts to the IRS through the Voluntary Disclosure Program.
A criminal indictment is only an accusation and a defendant is presumed innocent until proven guilty. If convicted, the defendants each face a maximum of five years in prison and a maximum fine of $250,000.
U.S. Attorney MacBride and Acting Assistant Attorney General DiCicco commended the investigative efforts of the IRS agents involved in this case, as well as Senior Litigation Counsels Kevin M. Downing and John E. Sullivan and Trial Attorneys Mark F. Daly, Tino M. Lisella and Melissa Siskind of the Tax Division, and Assistant U.S. Attorney Mark Lytle, who are prosecuting the case.
Dos hombres de Shenandoah, Pa., fueron sentenciados por la golpiza fatal de Luis RamirezRead the Press Release
WASHINGTON - Brandon Piekarsky,19, y Derrick Donchak, 21, ambos de Shenandoah, Pa. , fueron sentenciados hoy a nueve años en prisión por la golpiza fatal de Luis Ramirez, anunció el Departamento de Justicia.
Se les ordenó a Piekarsky y Donchak cumplir con tres años de libertad bajo supervisión y pagar 550 dólares al fondo de compensación de víctimas de Pensilvania, así como las tasas especiales por cada cargo. Donchak fue sentenciado también a 30 meses adicionales por obstrucción, sentencia que cumplirá concomitantemente.
El 14 de octubre de 2010, un jurado federal en el Distrito Medio de Pensilvania encontró a ambos demandados culpables de violación delictiva de la Ley de Vivienda Justa federal por matar a Luis Ramirez a golpes por ser hispano y porque no deseaban que hispanos vivieran en Shenandoah. Además, el jurado encontró que Donchak conspiró para obstruir la justicia, y de hecho la obstruyó, durante la investigación de este delito.
De acuerdo con pruebas presentadas en el juicio el 12 de julio de 2008, los demandados se encontraron con Ramirez en una plaza al salir de un festival comunitario. Los demandados y varios de sus amigos, algunos de los cuales prestaron testimonio durante el juicio, atacaron a Ramirez. Durante la golpiza, los demandados y sus amigos gritaron epítetos raciales en los que repetidamente se refirieron a Ramirez en términos raciales derogatorios y le dijeron "Esto es Shenandoah. Esto es Estados Unidos. Vuelve a México". De acuerdo con el testimonio, Donchak golpeó a Ramirez sujetando un pedazo grueso de metal identificado en el juicio como siendo un "fist pack" (un elemento de metal grueso utilizado para intensificar el daño causado por un puñetazo). Después de que otro amigo golpeó a Ramírez en el rostro haciendo que se callera y se golpeara la cabeza contra el suelo, Piekarsky pateó a Ramirez en la cabeza cuando estaba inconsciente y caído. Después de patear a Ramirez, Piekarsky le dijo a una transeúnte casada con un hispano: "diles a tus amigos mexicanos que se vayan de Shenandoah o acabarás tirada al lado de él". Una vez terminada la pelea, Ramirez fue llevado al Centro Médico Regional Geisinger por vía aérea, donde falleció debido a lesiones masivas en la cabeza. El jurado también oyó testimonios de que, inmediatamente después de la golpiza, Donchak conspiró para obstruir la investigación de la agresión fatal.
"Los actos de violencia, como la golpiza que sufrió Luis Ramirez, no se aceptarán en este país", dijo Thomas E. Perez, Secretario de Justicia Auxiliar de la División de Derechos Civiles del Departamento de Justicia. "Como ilustra este caso, la División de Derechos Civiles se empeña en proteger enérgicamente los derechos civiles de cada persona que viva en este país".
Este caso fue investigado por agentes especiales de la División de Filadelfia del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)]. Estuvieron a cargo de la acusación Myesha Braden y Gerard V. Hogan de la Sección de lo Penal de la División de Derechos Civiles, con la asistencia de la Fiscalía Federal del Distrito Medio de Pensilvania.
Declaración del Secretario de Justicia de los Estados Unidos acerca del litigio asociado a la Ley de Defensa del MatrimonioRead the Press Release
WASHINGTON - El Secretario de Justicia de los Estados Unidos realizó la siguiente declaración hoy acerca de la línea de acción en dos demandas, Pedersen contra OPM y Windsor contra los Estados Unidos, que disputan la Sección 3 de la Ley de Defensa del Matrimonio [Defense of Marriage Act (DOMA)], la que define al matrimonio, para fines federales, como siendo únicamente entre un hombre y una mujer:
En los dos años desde que asumió este Gobierno, el Departamento de Justicia ha defendido la Sección 3 de la Ley de Defensa del Matrimonio en diversas ocasiones en el tribunal federal. Cada uno de esos casos que evaluaron la Sección 3 fue considerado en jurisdicciones en las que precedentes vinculantes del tribunal de circuito sostienen que las leyes que discriminen a personas con base en su orientación sexual, como ocurre en el caso de la DOMA, son constitucionales si existe una base racional para su promulgación. Si bien el Presidente se opone a la DOMA y cree que debe ser revocada, el Departamento la ha defendido en los tribunales porque pudimos presentar argumentos razonables bajo dicha norma de "base racional".
La Sección 3 de la DOMA ha sido ahora cuestionada en el Segundo Circuito, sin embargo, el que no tiene ninguna norma establecida o vinculante con respecto al tratamiento que se le debe dar a las layes asociadas a la orientación sexual. En estos casos, el Gobierno enfrenta por primera vez la cuestión de si las leyes asociadas a la orientación sexual están sujetas a la norma de revisión más permisiva, o si corresponde una norma más estricta, bajo la que las leyes contra grupos minoritarios con una historia de discriminación son consideradas sospechosas por los tribunales.
Después de consideración cuidadosa, incluido un análisis de mi recomendación, el Presidente ha concluido que, si se cumplen una serie de factores, incluida una historia documentada de discriminación, las clasificaciones que se basen en la orientación sexual deberían estar sujetas a una norma más estricta de escrutinio. El Presidente también ha concluido que la Sección 3 de la DOMA, en lo que se refiere a parejas del mismo sexo casadas, deja de cumplir con dicha norma y, por lo tanto, es inconstitucional. Dada dicha conclusión, el Presidente ha instruido al Departamento que no defienda la ley en dichos casos. Estoy totalmente de acuerdo con la determinación del Presidente.
En consecuencia, el Departamento no defenderá la constitucionalidad de la Sección 3 de la DOMA en lo que se refiere a parejas casadas del mismo sexo en los dos casos entablados en el Segundo Circuito. Sin embargo, seguiremos siendo partes en los casos y seguiremos representando los intereses de los Estados Unidos a lo largo del litigio. He informado a los Miembros del Congreso de esta decisión; por lo tanto, los Miembros que deseen defender la ley podrán hacerlo. El Departamento también trabajará estrechamente con los tribunales para garantizar que el Congreso tenga una oportunidad plena y justa de participar en litigios pendientes.
Asimismo, de acuerdo con las instrucciones del Presidente, una vez notificado el Congreso, instruiré a los abogados del Departamento que avisen a los tribunales en otros litigios pendientes asociados a la DOMA de las conclusiones del Presidente y mías de que correspondería una norma más estricta, de que la Sección 3 es inconstitucional bajo dicha norma y que el Departamento dejará de defender la Sección 3.
El Departamento tiene una práctica de larga trayectoria de defender la constitucionalidad de leyes debidamente promulgadas, si existen argumentos razonables para su defensa. Al mismo tiempo, en el pasado, el Departamento se ha negado a defender leyes, a pesar de la disponibilidad de argumentos profesionalmente responsables, en parte porque, como en este caso, el Departamento no considera que todos dichos argumentos sean "razonables". El Departamento también se ha negado a defender una ley en casos como este, en el que el Presidente ha concluido que la ley es inconstitucional.
Gran parte del panorama legal ha cambiado en los 15 años desde que el Congreso aprobó la DOMA. La Corte Suprema ha fallado que las leyes que criminalicen la conducta homosexual son inconstitucionales. El Congreso ha revocado la política "No pregunte, no cuente". Varios tribunales inferiores han fallado que la propia DOMA es inconstitucional. La Sección 3 de la DOMA seguirá vigente, a no ser que el Congreso la revoque o exista una conclusión judicial final que la invalide, y el Presidente me ha informado que el Poder Ejecutivo seguirá haciendo valer la ley. Sin embargo, si bien la sabiduría y la legalidad de la Sección 3 de la DOMA seguirá siendo objeto tanto de amplio litigio como de debate público, este Gobierno dejará de sostener su constitucionalidad en el tribunal.
Circus President and Former Employee Plead Guilty to Violating Endangered Species Act for Unlawful Purchase and Sale of Asian ElephantsRead the Press Release
WASHINGTON – John Pugh, Wilbur Davenport, and Cole Brothers Circus Inc., entered plea agreements yesterday in U.S. District Court in Beaumont, Texas to resolve Endangered Species Act (ESA) violations related to the purchase and sale of two Asian elephants named “Tina” and “Jewel.”
Pugh and Cole Brothers Circus Inc. were charged with unlawfully selling the two Asian elephants to Mr. Davenport, who was charged for unlawfully receiving the Asian elephants. Pugh is the owner and president of Cole Brothers and Davenport a former employee. Cole Brothers is a circus that performs in locations across the Eastern United States. Pugh was approached by Davenport in 2005 about the purchase of Tina and Jewel, who were owned by the circus.
Asian Elephants are listed as an endangered species under the ESA. It is unlawful to purchase or sell an endangered species in interstate commerce without a permit. In limited circumstances, permits are issued when applicants demonstrate the sale or transfer of the endangered species will further scientific research, or enhance the propagation and survival of the species. None of the parties possessed, nor had they obtained, any permit that would have authorized such a sale of Tina and Jewel.
The defendants executed a five-year lease to purchase agreement, with the final purchase price of both elephants being $150,000. Davenport performed with the elephants for the circus through the summer and fall of 2006 to pay off the balance owed for Tina and Jewel, and thereafter transported the elephants to his home in Leggett, Texas. Davenport intended to incorporate the two elephants into his own business, which included, among other things, offering the elephants for personal demonstrations, private parties and events, and elephant rides.
In accordance with the terms of the plea agreement, Mr. Pugh and Mr. Davenport were sentenced to three years of probation, a special condition of probation being that each must perform 100 hours of community service every year of their probationary term. Mr. Pugh was also sentenced to pay a $4,000 fine as well as make a $1,200 community service payment to an organization or organizations working for the conservation or rehabilitation of Asian elephants. Mr. Davenport was sentenced to pay a $5,200 fine. According to its plea agreement, Cole Brothers Circus was sentenced to four years of probation and a $150,000 fine.
As stated in the plea agreement, in August 2009, the U.S. Department of Agriculture (USDA) confiscated Jewel from Mr. Davenport pursuant to its authority under the Animal Welfare Act. Mr. Davenport then abandoned Tina to U.S. Fish and Wildlife Service, allowing USDA to transport the two elephants together to the San Diego Zoo.
This case was investigated by the USFWS. Trial Attorney Jessie Alloway and Senior Trial Attorney Elinor Colbourn of the U.S. Department of Justice’s Environmental Crimes Section, Environment and Natural Resources Division, and Assistant U.S. Attorney Joe Batte of the Eastern District of Texas prosecuted the case.
Cincinnati Area Return Preparer Sentenced to 30 Months in Prison for Preparing False Tax ReturnsRead the Press Release
WASHINGTON -- A former resident of Cincinnati was sentenced to 30 months in prison by U.S. District Judge Sandra S. Beckwith for aiding and assisting in the preparation of false client tax returns and for filing a false individual income return, the Justice Department and Internal Revenue Service (IRS) announced today.
According to court documents, Idrissa Bassoum began offering tax preparation services under the name Bassoum’s Consulting Service (BCS) in February 2003, operating out of his residence and catering primarily to immigrants. Through BCS, Bassoum prepared and filed hundreds of false tax returns for clients which claimed fraudulent expenses and deductions relating to, among other things, moving expenses, all done to lower his clients’ tax liabilities and increase their refunds. In addition to preparing false client tax returns, Bassoum fraudulently avoided the payment of any income taxes due on his business activities when he failed to report any earnings from his tax preparation activities on his personal income tax returns. As part of his plea agreement, Bassoum admitted that he caused between $400,000 and $1 million in tax loss to the U.S. government.
Bassoum’s tax preparation fees were typically subtracted from the refund amounts he obtained for his clients after arranging for Refund Anticipation Loans (RALs), a short-term consumer loan secured by the taxpayer’s expected tax refund. For each RAL approved for a client, Bassoum’s tax preparation fees were directly wired into his personal bank account. As part of his plea agreement, Bassoum admitted receiving at least $69,915 in unreported income during tax year 2004 and $80,771 in unreported income during tax year 2005.
In addition to the prison term, Judge Beckwith ordered Bassoum to serve one year of supervised release with special conditions that he not prepare any tax returns for others and to file amended personal tax returns for the years of prosecution. In addition, Bassoum was ordered to pay $44,887.80 in restitution, representing the tax loss caused by his personal income tax fraud, as well as a $300 special assessment.
Acting Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division and Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, commended IRS Criminal Investigation special agents who investigated the case and Tax Division Trial Attorneys Jorge Almonte and Sean Delaney, who prosecuted the case.
22 February 2011
Justice Department Settles with National Board of Medical Examiners over Refusal to Provide Testing Accommodations to Yale Medical School StudentRead the Press Release
WASHINGTON - The Justice Department today announced a settlement under the Americans with Disabilities Act (ADA) with the National Board of Medical Examiners (NBME), a private, non-profit organization that administers the U.S. Medical Licensing Examination (USMLE), a standardized examination related to medical licensing. Under the terms of the settlement agreement, NBME is committed to providing reasonable testing accommodations to persons with disabilities who seek to take the USMLE, in accordance with the requirements of the ADA. In addition, it will grant Frederick Romberg, a Yale Medical School student, the accommodations of double the standard testing time and a separate testing area to take the USMLE.
“In the past, demands for unnecessary or redundant documentation, burdensome and expensive repeated professional evaluations, or irrelevant evaluative testing unrelated to the ability to demonstrate one’s knowledge or skills on an examination prevented individuals with appropriately documented disabilities from pursuing their chosen professions.” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “By entering into this agreement, NBME is doing its part to ensure that people with a reading disability like Mr. Romberg will have the opportunity to take the USMLE with the reasonable testing accommodations they need to demonstrate their knowledge and ability.”
Under the agreement, the NBME will:
· Only request documentation about (a) the existence of a physical or mental impairment; (b) whether the applicant’s impairment substantially limits one or more major life activities within the meaning of the ADA; and (c) whether and how the impairment limits the applicant’s ability to take the USMLE under standard conditions;
· Carefully consider the recommendations of qualified professionals who have personally observed the applicant in a clinical setting and recommended accommodations based upon their clinical judgment that the individual is substantially limited in one or more major life activities within the meaning of the ADA and needs the requested test accommodations in order to demonstrate his or her ability and achievement level; such recommendations are to be based on generally accepted diagnostic criteria and supported by reasonable documentation.
· Carefully consider all evidence indicating whether an individual’s ability to read is substantially limited within the meaning of the ADA, including the extent to which it is restricted as to the conditions, manner or duration as compared to the reading ability of most people.
The Justice Department opened an investigation in response to a complaint from Mr. Romberg who alleged that the NBME had twice denied him reasonable testing accommodations to take the USMLE because of his disability, dyslexia, in violation of the ADA. Subsequently, the department and the NBME sought to resolve the investigation by reaching a settlement agreement.
The settlement was reached under Title III of the ADA which prohibits discrimination against individuals with disabilities by private testing entities that administer examinations related to professional licensing. More information about the Civil Rights Division and the laws it enforces is available at the website www.justice.gov/crt . More information about the settlement with NBME can be found at www.ada.gov or by calling the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
Alaska-Based Company Pays U.S. More Than $1.5 Million<br /> to Settle False Claims AllegationsRead the Press Release
WASHINGTON – General Communication Inc. (GCI) has paid $1,556,075 to settle allegations that Alaska DigiTel LLC, a former Alaska limited liability company now owned by GCI, submitted false claims to the Federal Communications Commission’s (FCC) Low Income Support Program, the Justice Department announced today.
The Low Income Support Program of the Universal Service Fund, which includes the Lifeline, LinkUp and Toll Limitation Services, was created by Congress in the Telecommunications Act of 1996 and is administered by the Universal Service Administrative Company for the FCC. Under the Low Income Support Program, eligible individuals may apply for free or discounted phone or wireless services. Reimbursement is paid directly to Eligible Telecommunications Carriers, such as Alaska DigiTel.
Today’s settlement resolves allegations that Alaska DigiTel violated the False Claims Act by submitting claims to the Low Income Support Program for improperly substantiated, duplicative, or otherwise ineligible subscribers for the period from Jan. 1, 2004, though Aug. 31, 2008.
“We simply won’t tolerate practices that misuse taxpayer dollars and undermine the integrity of important government programs aimed at helping the needy,” said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. “By submitting false claims to the Low Income Support Program, Alaska DigiTel tried to take advantage of a program designed to help individuals who otherwise could not afford telephone service.”
The government’s investigation of Alaska DigiTel was initiated by a lawsuit filed under the False Claims Act’s qui tam or whistleblower provisions, which permit private parties to sue for false claims on behalf of the United States and to share in any recovery. The whistleblower in this case, who alleged that Alaska DigiTel was signing up subscribers who did not qualify for the program, will receive $260,274 from the settlement.
Assistant Attorney General West acknowledged the cooperation among the many government agencies participating in this ongoing matter, including the Justice Department’s Civil Division, the U.S. Attorney’s Office for Alaska, and the FCC’s Office of the Inspector General and Office of General Counsel. The case is United States ex rel. Napolean v. Alaska Digitel et al., No. 3:08CV66-JWS (D. Ak.)
18 February 2011
U.S. Parole Commission Denies Lopez Parole ApplicationRead the Press Release
Chevy Chase, MD – The United States Parole Commission has denied parole to Oscar Lopez Rivera, announced Commission Chairman Isaac Fulwood, Jr.
Lopez, who has been incarcerated for 30 years, was sentenced to 55 years’ imprisonment following his August 11, 1981 conviction for seditious conspiracy, use of force to commit robbery, interstate transportation of firearms and ammunition to aid in the commission of a felony, and interstate transportation of stolen vehicles. The offenses arose out of his role in Fuerzas Armadas de Liberación Nacional Puertorriqueña (“FALN”), a Puerto Rican nationalist group whose activities included over 100 bombings in which six (6) people were killed and others maimed.
He was sentenced to an additional fifteen years’ incarceration on February 26, 1988, for his activities in conspiring to escape from the Leavenworth federal prison. Lopez solicited unincarcerated supporters to obtain weapons, grenades, and C-4 explosives for use in breaking him and fellow inmates – to whom Lopez had boasted about his leadership role in the FALN – out of prison.
In 1999, President Clinton offered clemency to Lopez on condition that he renounce violence and serve an additional ten years in prison with clear conduct. Lopez rejected the offer.
Chairman Fulwood noted, “We have to look at whether release would depreciate the seriousness of the offenses or promote disrespect for the law, whether release would jeopardize public safety, and the specific characteristics of the offender.”
For more information, please call Johanna Markind at (301) 492-5821 ext. 238.
U.S. Government Intervenes in False Claims Lawsuit Against Kellogg Brown & Root Services Inc.Read the Press Release
WASHINGTON – The government has intervened in a lawsuit against Kellogg Brown & Root Services Inc. (KBR) in the U.S. District Court for the Central District of Illinois, announced the Department of Justice. The lawsuit was filed in February 2007 by James A. Brady III, a former employee of KBR, and alleges that KBR violated the False Claims Act in connection with "LOGCAP III," the third generation of the U.S. Army’s Logistics Civil Augmentation Program awarded and administered at Rock Island, Ill. Under the contract, KBR was to provide logistics and sustainment support to U.S. military troops in Iraq, Kuwait and Afghanistan. KBR performed LOGCAP III largely through subcontractors.
According to the complaint, KBR entered into a subcontract with the Turkish company Yuksel-Reysas to do operations and maintenance work at Army camps near Mosul, Iraq. Brady alleges that KBR violated the False Claims Act because it was unable to account for materials paid for under the Yuksel-Reysas subcontract.
"Contractors hired to provide support to our men and women in uniform must play by the rules," said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. "As we’ve done today, the Justice Department will take action against those whom we believe charge the taxpayers for goods and services that were not provided to American troops."
"We’ve decided to pursue the allegation that money that was intended to support the troops was instead used to pay claims that were false," said Jim Lewis, U.S. Attorney for the Central District of Illinois.
The lawsuit was filed under the qui tam provisions of the False Claims Act, which permit private parties to sue on behalf of the United States when they believe that defendants submitted false claims for government funds. The private plaintiffs are called "relators," and, under the statute, are entitled to receive a share of any funds recovered through the lawsuit. The False Claims Act permits the government to recover three times its damages plus civil penalties. The government has asked the court for 60 days to file its own complaint stating the United States’ allegations.
Tribunal Federal prohíbe a mujer de Florida preparar declaraciones de impuestos para tercerosRead the Press Release
WASHINGTON - Se ha prohibido permanentemente a una mujer de Florida preparar declaraciones de impuestos a la renta federales para terceros, anunció hoy el Departamento de Justicia. La orden de interdicto, a la que consintió Milagros Espinal, exige que provea una copia de la orden a sus clientes, publique una copia en The Miami Herald y El Nuevo Herald, y entregue al gobierno información que identifique a sus clientes.
De acuerdo con la demanda, desde por lo menos 2004, Espinal, de Hialeah, Fla. ha preparado como rutina declaraciones de impuestos que contienen deducciones inventadas o exageradas y reclamos indebidos o falsos de créditos tributarios, tales como el crédito fiscal por ingresos devengados o el crédito fiscal por hijo. El gobierno estima que su preparación de declaraciones resultó en declaraciones de impuestos a la renta federales de sus clientes 10 millones de dólares o más inferiores a la realidad entre 2004 y 2007. Se alega que preparó al menos 2,000 declaraciones durante dicho periodo.
Para obtener información adicional sobre la labor reciente del departamento para acabar con los reclamos fraudulentos de créditos fiscales, haga clic aquí. En los últimos 10 años, la División de Impuestos del Departamento de Justicia ha obtenido centenas de interdictos para detener la promoción de ardides de fraude tributario y la preparación de declaraciones de impuestos fraudulentas. Existe información acerca de estos casos disponible en el sitio web del departamento.
Securities Attorney and Five Others Indicted for Conspiracy, Wire and Mail Fraud in Stock Manipulation SchemeRead the Press Release
WASHINGTON – Six individuals, including a securities attorney, were charged in an indictment unsealed today with defrauding investors in a stock manipulation scheme from 2003 to 2008, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, Deputy Chief Inspector Daniel S. Cortez for the U.S. Postal Inspection Service (USPIS) and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office. In a related action, the U.S. Securities and Exchange Commission (SEC) filed a civil complaint in the Southern District of Florida, Miami division.
The defendants charged in the indictment returned in the Southern District of Florida are: Jonathan Randall Curshen, 46, of Sarasota, Fla.; Michael Simon Krome, 49, a securities attorney from Long Island, N.Y.; Ronald Salazar Morales, aka “Ronny Salazar,” 39, of Costa Rica; Robert Lloyd Weidenbaum, 44, of Miami; and Eric Ariav Weinbaum, 37, and Izhack Zigdon, 47, of Israel. Curshen was arrested this morning in Sarasota, Fla., and made an initial appearance in U.S. District Court in Tampa, Fla. Krome was arrested in Long Island, N.Y., and will make an initial appearance later today in U.S. District Court in Central Islip, N.Y. Weidenbaum was arrested today in Miami and is making his initial appearance in U.S. District Court in Miami at 2 p.m. EST. Zigdon was previously arrested in Germany in October 2010 and the United States is seeking his extradition.
“The indictment unsealed today alleges that the defendants used their access and training to illegally manipulate stock prices for their own advantage,” said Assistant Attorney General Breuer. “Pump and dump schemes like the one alleged in this case leave legitimate investors holding worthless stocks. Anyone who defrauds the investing public in this way – whether you are a securities lawyer, a stock trader, or a simple fraudster – will be held to account.”
According to the indictment, Curshen was the principal behind Red Sea Management and Sentry Global Securities, two companies located in San Jose, Costa Rica, that provided offshore accounts and facilitated trading in penny stocks. The indictment alleges that Weinbaum and Zigdon took control of the outstanding shares of a company called CO2 Tech (ticker CTTD), which traded in the over-the-counter market through listings on Pink Sheets, an inter-dealer electronic quotation and trading system. Weinbaum and Zigdon allegedly obtained the shares by retaining Krome who allegedly employed a method to evade federal securities registration requirements in order to provide co-conspirators with millions of unregistered and “free-trading” shares of CO2 Tech that the co-conspirators could not have otherwise legally obtained.
The indictment alleges that the shares were subsequently sold to the general investing public by Weinbaum, Zigdon, Curshen and Salazar, a Sentry Global stock trader, through Sentry Global’s stock trading floor in Costa Rica. According to the indictment, the co-conspirators were able to hide from the investing public the actual financial condition and business operations of the company by evading the registration requirements. The indictment also alleges that Weidenbaum was paid approximately $1 million by Weinbaum and Zigdon to participate in sham stock trades of CO2 Tech to make it appear that there were genuine investors in the market that were buying the shares.
As alleged in the indictment, coordinated trades were often made between the co-conspirators in conjunction with the issuance of false and misleading press releases that were designed to make CO2 Tech appear that it had significant business prospects. According to these press releases, CO2 Tech purported to have a business relationship with Boeing to reduce polluting gases emitted from airplanes. The indictment alleges that these relationships never existed.
After fraudulently “pumping” the market price and demand for CO2 Tech stock through these press releases and coordinated trades, Weinbaum, Zigdon, Curshen and Salazar allegedly “dumped” shares by selling them for large profits to the general investing public in the over-the-counter market through listings on Pink Sheets. These shares were allegedly purchased by unsuspecting investors, including in the Southern District of Florida, and were often rendered virtually worthless.
The defendants are charged with one count of conspiracy to commit securities, mail and wire fraud. Additionally, Weinbaum and Zigdon are charged with three counts of wire fraud, Weidenbaum with two counts of wire fraud and Krome with one count of wire fraud; Curshen and Salazar are charged with two counts of mail fraud, Weinbaum and Weidenbaum with one count of mail fraud; and Krome is charged with one count of violating the securities registration laws and one count of obstruction of justice. The indictment also seeks forfeiture from the defendants.
The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine. Each count of wire fraud and mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The securities registration violation carries a maximum penalty of five years in prison and a $10,000 fine, while the obstruction count carries a maximum penalty of 20 years in prison and a $250,000 fine.
In a related civil matter, the SEC charged Curshen, Krome, Salazar, Weinbaum and Zigdon with violations of the Securities Act of 1933 and violations of the Securities Exchange Act of 1934. Weidenbaum is charged with aiding and abetting certain violations by Weinbaum and Zigdon.
An indictment is merely a charge and defendants are presumed innocent until proven guilty.
The case was investigated by the FBI’s Washington Field Office and the USPIS. The case is being prosecuted by Trial Attorneys N. Nathan Dimock and Rina Tucker Harris of the Criminal Division’s Fraud Section. The U.S. Attorney’s Office for the Southern District of Florida provided significant assistance in this case. The Department of Justice acknowledges the significant assistance of the Financial Industry Regulatory Authority (FINRA) and the SEC in its investigation. The Criminal Division’s Office of International Affairs and Costa Rican authorities also provided assistance.
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.
Ohio Businessman Charged with Failing to Report Foreign Bank Account at UBS in SwitzerlandRead the Press Release
WASHINGTON - An Ohio man residing in Switzerland was charged by information in the Northern District of Ohio for filing false personal income tax returns for the years 2004 through 2008, the Department of Justice announced today. The announcement was made by John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio and Jose A. Gonzalez, Special Agent-in-Charge from the Internal Revenue Service (IRS) Criminal Investigation in Cincinnati.
According to court records, Edward Gurary, 45 lived in Orange Village, Ohio during the prosecution years. From approximately 2002 through 2008, Gurary owned and controlled a financial account at UBS AG (UBS) which was in the name of a Bahamian entity called Demko, Ltd., and which contained balances ranging from $490,000 to $947,000. Gurary controlled transactions in the Demko account by sending faxes using a code name “Vanda” to UBS from an OfficeMax in the Cleveland area, rather than his home or business. UBS would, in turn, send his requests for authorizations to officers of Demko in the Bahamas in order to make it appear that Demko owned and controlled the account. During the prosecution years, interest was paid by UBS into the Demko account in amounts ranging from $3,400 to more than $21,000.
The information charged Gurary with filing false income tax returns for 2004 through 2008 that failed to report interest income earned on his Demko bank account at UBS. In addition, for three of the years (2004, 2006 and 2007) the information charged Gurary with falsely stating on his Schedule B attached to his income tax return that he did not have signature or other authority over a foreign financial account. Finally, the information described that between 2004 and 2008, Gurary did not file any FBARs or otherwise disclose his Demko account at UBS to the IRS. An FBAR form is a form separate from an income tax return that the law requires taxpayers to file with the IRS every June to disclose additional information about foreign financial accounts over which a taxpayer has signature or other control over, and which had an aggregate value exceeding $10,000 at any time during the year.
An information merely alleges that crimes have been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Gurary faces a maximum of 3 years in prison and a fine of $250,000.
The case is being prosecuted by Assistant U.S. Attorney John M. Siegel and Tax Division Trial Attorney Richard M. Rolwing, following an investigation by the IRS in Cleveland.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.usdoj.gov/tax.
Office Manager of Los Angeles Medical Supply Business Pleads Guilty to Conspiring to Defraud Medicare of More Than $6 Million in Wheelchair SchemeRead the Press Release
WASHINGTON – The office manager of a Los Angeles durable medical equipment (DME) company pleaded guilty today to conspiring with her former church pastor to run a power wheelchair scheme that defrauded Medicare of more than $6 million, the Departments of Justice and Health and Human Services (HHS) announced.
Darawn Shadene Vasquez, 26, pleaded guilty today before U.S. District Judge George H. King in the Central District of California. Vasquez admitted that between January 2006 and September 2009, she conspired with her former church pastor, Christopher Iruke, and others to submit false claims to Medicare for expensive, high-end power wheelchairs and other DME through four DME companies that Iruke either owned or controlled through alleged straw owners. The companies included Pascon Medical Supply, Horizon Medical Equipment and Supply Inc., Contempo Medical Equipment Inc. and Ladera Medical Equipment Inc. Vasquez was charged, along with Iruke and four other individuals, in an indictment returned on Sept. 30, 2009.
Vasquez admitted in court documents that she and others used fraudulent prescriptions and documents they purchased from various individuals to support the false power wheelchair and DME claims that Pascon, Horizon, Contempo and Ladera submitted to Medicare. Vasquez admitted that she and her co-conspirators submitted claims to Medicare prior to delivering the power wheelchairs and DME to Medicare beneficiaries in order to ensure that Medicare would pay them. Vasquez admitted that she and her co-conspirators often knew that the Medicare beneficiaries did not need the wheelchairs, either because the beneficiaries said they did not need them, or Vasquez observed them walking. As a result of this scheme, Medicare paid Pascon, Horizon, Contempo and Ladera approximately $6.1 million on the false claims they submitted to Medicare.
Vasquez also admitted that in approximately August 2009, after subpoenas were received for the records of the four companies, she and another individual shredded pages from two ledgers containing the names of all the individuals who sold them fraudulent prescriptions and medical documents, and the amounts of money paid and owed those individuals. According to court documents, when the shredder overheated, they flushed the remaining ledger pages down the toilet.
At sentencing, scheduled for Oct. 3, 2011, Vasquez faces a maximum penalty of 10 years in prison and a $250,000 fine.
Iruke’s trial is scheduled to begin on May 3, 2011, and he is presumed innocent unless proven guilty beyond a reasonable doubt in a court of law
Today’s guilty plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney André Birotte Jr. for the Central District of California; Tony Sidley, Assistant Chief of the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse (CAL-DOJ); Glenn R. Ferry, Special Agent-in-Charge for the Los Angeles Region of the Office of Inspector General (OIG) for HHS (HHS-OIG); and Steven Martinez, Assistant Director in Charge of the FBI’s Los Angeles Field Office.
The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since their inception in March 2007, Strike Force operations in nine districts have charged more than 990 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.
The case is being prosecuted by Trial Attorney Jonathan T. Baum of the Criminal Division’s Fraud Section. The case is being investigated by HHS-OIG.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Federal Court Bars Florida Woman from Preparing Tax Returns for OthersRead the Press Release
WASHINGTON – A Florida woman has been permanently barred from preparing federal income tax returns for others, the Department of Justice announced today. The injunction order, to which Milagros Espinal consented, requires her to provide a copy of the order to her customers, publish a copy of the order in The Miami Herald and El Nuevo Herald, and turn over to the government information identifying her customers.
According to the complaint, since at least 2004, Espinal, of Hialeah, Fla., has routinely prepared tax returns containing fabricated or overstated deductions and improper or false claims for tax credits, such as the earned-income tax credit and the child tax credit. The government estimates that her return preparation resulted in an understatement of her customers’ federal income tax liabilities of $10 million or more between 2004 and 2007. She allegedly prepared at least 2,000 returns during that period.
Additional information about the department’s recent efforts to stop fraudulent claims for tax credits is available here . In the past 10 years, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of fraudulent returns. Information about these cases is available on the department’s website .
Eleven Alleged Aryan Brotherhood of Texas Members Charged for Roles in AssaultRead the Press Release
WASHINGTON - Eleven alleged members of the Aryan Brotherhood of Texas (ABT) have been indicted for their alleged roles in the 2008 beating of a gang prospect in Tomball, Texas, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Jose Angel Moreno of the Southern District of Texas.
The superseding indictment, returned by the federal grand jury on Feb. 16, 2011, and unsealed today in Houston, charges the defendants with violent crimes in aid of racketeering activity (VICAR) and conspiracy to engage in violent crimes in aid of racketeering. The defendants charged in the indictment are Zechariah Aaron Johnston, 31; Steven Walter Cooke, 47; Stephen Kyle Knebel, 33; David Bruce Harlow, 46; Robert Lynn Sheats, 33; Justin Northrup, 25; Benjamin Christian Dillon, 28; Rusty Dwayne Plante, 34; Johnny Ray Nichols, 35; Shane Everett Dallmeyer, 30; and Michael Raymond Burkett, 33. All of the defendants are from the greater Houston-area.
According to the indictment, in order to be considered for ABT membership, a person must be sponsored by another ABT member. Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.
The indictment alleges that a prospect member of ABT sustained serious bodily injury after he was severely beaten on Sept. 22, 2008, at Cooke’s home in Tomball. The beating was allegedly administered by ABT gang members because the prospect member violated certain ABT rules of conduct.
If convicted, the defendants face a maximum sentence of 20 years in prison and a $250,000 fine on the VICAR charge. They face a maximum penalty of three years in prison and a $250,000 fine on the conspiracy charge. The defendants who were not already in federal prison are making initial appearances today in U.S. District Court in Houston.
According to the indictment, the ABT is a race-based, state-wide organization that operates inside and outside of state and federal prisons throughout Texas and elsewhere in the United States. The ABT was established in the early 1980s within the Texas prison system. As alleged in the indictment, it modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s. According to the indictment, previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism. Over time, however, the ABT has expanded its criminal enterprise to include illegal activities for profit.
As alleged in the indictment, the ABT enforces its rules and promotes discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, are required to follow the orders of higher-ranking members, often referred to as "direct orders."
An indictment is merely a charge and defendants are presumed innocent until proven guilty.
This case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the FBI; the U.S. Marshals Service; the Texas Rangers; the Texas Department of Public Safety; the Walker County, Texas, Sheriff’s Office; the Montgomery County, Texas, Sheriff’s Department; the Houston Police Department-Gang Division; and the Harris County, Texas, Sheriff’s Office.
The case is being prosecuted by David Karpel of the Criminal Division’s Gang Unit and Assistant U.S. Attorney Jay Hileman of the Southern District of Texas in Houston.
17 February 2011
Utah Businessman Charged with Tax CrimesRead the Press Release
WASHINGTON – The former president of Infinia Healthcare LLC, a company that operated long-term healthcare facilities in several states, was indicted by a federal grand jury in the U.S. District Court in Utah for three counts of tax evasion, the Department of Justice and the Internal Revenue Service (IRS) announced today.
According to the indictment, Jon Robertson, of Bountiful, Utah, attempted to evade taxes he owed in 2003 through 2005 by filing false tax returns, causing money to be transferred to bank accounts he controlled, and by directing others to make false record entries.
An indictment merely allege that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Jon Robertson faces a maximum of 15 years in prison and a fine of $250,000.
The case is being prosecuted by Tax Division trial attorneys Monica B. Edelstein and Kimberly M. Shartar, and is being investigated by IRS-Criminal Investigation in Salt Lake City.
Additional information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax.
Romanian Man Pleads Guilty for Role in International Fraud Scheme Involving Online Auction WebsitesRead the Press Release
WASHINGTON – A Romanian man pleaded guilty today before U.S. District Judge Matthew F. Kennelly in Chicago to one count each of wire fraud and conspiracy for his role in moving and hiding the illicit proceeds of an international fraud scheme, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Patrick J. Fitzgerald for the Northern District of Illinois and U.S. Attorney Ronald C. Machen Jr. for the District of Columbia.
Adrian Ghighina, 33, of Bucharest, Romania, was indicted by a federal grand jury in the Northern District of Illinois in April 2008 on seven counts of wire fraud. In May 2010, Ghighina was separately indicted by a federal grand jury in Washington on charges of conspiracy, bank fraud and money laundering.
According to court documents, Ghighina, who entered the United States legally in late 2004, acted as a “money mule” in a complex Internet fraud conspiracy. Ghighina’s co-conspirators, many of whom are in Romania, created fraudulent online auctions for expensive items such as cars, motorcycles and RVs on websites such as eBay, Craigslist and AutoTrader.com. Victims who responded to these fraudulent listings were directed, in some cases by e-mail or telephone, to transmit payment for the non-existent items using Western Union and bank wire transfers to accounts controlled by Ghighina. Ghighina admitted that he moved from city to city opening new accounts at various banks using false identification as part of the conspiracy. The victims never received the items for which they had paid. From approximately September 2005 until his arrest in October 2009 in Miami, Ghighina opened accounts and/or received funds in Illinois, the District of Columbia, Florida, New York, Arizona and elsewhere.
Ghighina faces a maximum penalty of 20 years in prison and a $250,000 fine on the count of wire fraud from the Chicago indictment, and a maximum penalty of 20 years in prison and a $250,000 fine on the count of conspiracy to commit wire fraud from the Washington indictment. Both counts also include up to three years of supervised release following any prison term. Sentencing is scheduled for May 9, 2011. Ghighina also previously was convicted on related charges of wire and visa fraud in the Southern District of Florida and sentenced on those charges to 27 months in prison.
The Chicago case is being prosecuted by Assistant U.S. Attorney Brian Hayes with the Northern District of Illinois. The Washington case is being prosecuted by Special Assistant U.S. Attorney Joseph Springsteen for the District of Columbia. Mr. Springsteen also serves as a Trial Attorney with the Criminal Division’s Computer Crime and Intellectual Property Section. Assistance on the Washington case was also provided by CCIPS Trial Attorneys Gavin Corn and Mysti Degani. The Criminal Division’s Office of International Affairs provided assistance in this matter. This case is being investigated by the Chicago and Washington Field Offices of the FBI, as well as the Chicago Police Department and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.
Medicare Fraud Strike Force Charges 111 Individuals for More Than $225 Million <br /> in False Billing and Expands Operations to Two Additional CitiesRead the Press Release
WASHINGTON – The Medicare Fraud Strike Force today charged 111 defendants in nine cities, including doctors, nurses, health care company owners and executives, and others, for their alleged participation in Medicare fraud schemes involving more than $225 million in false billing, announced Attorney General Eric Holder, Health and Human Services (HHS) Secretary Kathleen Sebelius, FBI Executive Assistant Director Shawn Henry, Assistant Attorney General Lanny A. Breuer of the Criminal Division and HHS Inspector General Daniel Levinson. Also today, the Department of Justice (DOJ) and HHS announced the expansion of Medicare Fraud Strike Force operations to two additional cities – Dallas and Chicago. Today’s operation is the largest-ever federal health care fraud takedown.
The joint DOJ-HHS Medicare Fraud Strike Force is a multi-agency team of federal, state, and local investigators designed to combat Medicare fraud through the use of Medicare data analysis techniques and an increased focus on community policing. More than 700 law enforcement agents from the FBI, HHS-Office of Inspector General (HHS-OIG), multiple Medicaid Fraud Control Units, and other state and local law enforcement agencies participated in today’s operation. In addition to making arrests, agents also executed 16 search warrants across the country in connection with ongoing strike force investigations.
“With this takedown, we have identified and shut down large-scale fraud schemes operating throughout the country. We have safeguarded precious taxpayer dollars. And we have helped to protect our nation’s most essential health care programs, Medicare and Medicaid,” said Attorney General Holder. “As today’s arrests prove, we are waging an aggressive fight against health care fraud.”
“Over the last two years our joint efforts have more than quadrupled the number of anti-fraud Strike Force teams operating in fraud hot spots around the country from two to nine -- with the latest additions Chicago and Dallas -- bringing hundreds of charges against criminals who had billed Medicare for hundreds of millions of dollars. Last year alone, our partnership recovered a record $4 billion on behalf of taxpayers. From 2008-2010, every dollar the Federal Government spent under its Health Care Fraud and Abuse Control programs averaged a return on investment of $6.80,” said HHS Secretary Sebelius.
The defendants charged today are accused of various health care fraud-related crimes, including conspiracy to defraud the Medicare program, criminal false claims, violations of the anti-kickback statutes, money laundering and aggravated identity theft. The charges are based on a variety of alleged fraud schemes involving various medical treatments and services such as home health care, physical and occupational therapy, nerve conduction tests and durable medical equipment.
According to court documents, the defendants charged today participated in schemes to submit claims to Medicare for treatments that were medically unnecessary and oftentimes, never provided. In many cases, indictments and complaints allege that patient recruiters, Medicare beneficiaries and other co-conspirators were paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could submit fraudulent billing to Medicare for services that were medically unnecessary or never provided. Collectively, the doctors, nurses, health care company owners, executives and others charged in the indictments and complaints are accused of conspiring to submit a total of more than $225 million in fraudulent billing.
“Every American bears the burden of health care fraud, and the FBI, in conjunction with our inter-agency partners, will continue to dismantle criminal networks that bilk the system,” said Shawn Henry, Executive Assistant Director of the FBI’s Criminal, Cyber, Response and Services Branch. “Our agents and analysts use task forces and undercover operations to identify individuals who treat the health care system as a vehicle to line their pockets.”
“Today, Strike Force operations have charged doctors, nurses, health care executives, and others – from Los Angeles to New York and cities in between – with engaging in Medicare fraud schemes that cheat taxpayers and patients alike,” said Assistant Attorney General Breuer. “With this nationwide takedown and the expansion of the Strike Force to two additional cities, our message is clear: we are determined to put Medicare fraudsters out of business.”
“Today, more than 300 special agents from OIG, in partnership with federal and state agencies across the country, are making more than a hundred arrests on charges of health care fraud,” said Daniel R. Levinson, HHS Inspector General. “These unprecedented operations send a clear message – we will not tolerate criminals lining their pockets at the expense of Medicare patients and taxpayers.”
In Miami, 32 defendants, including 2 doctors and 8 nurses, were charged for their participation in various fraud schemes involving a total of $55 million in false billings for home health care, durable medical equipment and prescription drugs. Twenty-one defendants, including three doctors, three physical therapists and one occupational therapist, were charged in Detroit for schemes to defraud Medicare of more than $23 million. The Detroit cases involve false claims for home health care, nerve conduction tests, psychotherapy, physical therapy and podiatry.
In Brooklyn, N.Y., 10 individuals, including three doctors and one physical therapist, were charged with fraud schemes involving $90 million in false billings for physical therapy, proctology services and nerve conduction tests. Ten defendants were charged in Tampa for participating in schemes involving more than $5 million related to false claims for physical therapy, durable medical equipment and pharmaceuticals.
Nine individuals were charged in Houston for schemes involving $8 million in fraudulent Medicare claims for physical therapy, durable medical equipment, home health care and chiropractor services. In Dallas, seven defendants were indicted for conspiring to submit $2.8 million in false billing to Medicare related to durable medical equipment and home health care.
Five defendants were charged in Los Angeles for their roles in schemes to defraud Medicare of more than $28 million. The cases in Los Angeles involve false claims for durable medical equipment and home health care. In Baton Rouge, La., six individuals were charged for a durable medical equipment fraud scheme involving more than $9 million in false claims.
In Chicago, charges were filed against 11 individuals associated with businesses that have billed Medicare more than $6 million for home health, diagnostic testing and prescription drugs.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.
Since their inception in March 2007, Strike Force operations in nine districts have charged more than 990 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.
The cases announced today are being prosecuted and investigated by Strike Force teams comprised of attorneys from the Fraud Section in the Justice Department’s Criminal Division and from the U.S. Attorney’s Offices for the Southern District of Florida, the Eastern District of Michigan, the Eastern District of New York, the Middle District of Florida, the Southern District of Texas, the Central District of California, the Middle District of Louisiana; the Northern District of Illinois, and the Northern District of Texas; and agents from the FBI, HHS-OIG, and state Medicaid Fraud Control Units.
An indictment is merely a charge and defendants are presumed innocent until proven guilty.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Justice Department Announces Settlement with Developer of Idaho Condominium ComplexRead the Press Release
WASHINGTON – A developer of a condominium complex in Post Falls, Idaho, has agreed to settle a lawsuit alleging that they violated the Fair Housing Act by developing the complex with features that made it inaccessible to persons with disabilities, announced the Department of Justice. Under the settlement, which must still be approved by the U.S. District Court for the District of Idaho, Riverwalk Condominiums LLC will pay $18,500 and take other steps to retrofit the complex in order to make it accessible.
The lawsuit, filed in August 2009, alleged that Riverwalk designed and constructed the condominiums on Greensferry Road in Post Falls, Idaho, with features that made the complex inaccessible to persons with disabilities. If approved by the court, the settlement will require the defendant to:
· Retrofit the complex to make it more accessible;
· Ensure that future or ongoing construction meets the accessibility requirements of the Fair Housing Act;
· Pay a total of $13,500 to an individual with a disability who inquired about housing at Riverwalk and to the Intermountain Fair Housing Council (IFHC), a non-profit fair housing organization that assisted the individual and helped document accessibility barriers at the complex: and
· Pay a $5,000 civil penalty to the United States.
“Since 1991, the Fair Housing Act has required that new multi-family housing meet basic accessibility requirements, and there is no excuse for noncompliance at new developments,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Enforcement actions like this one illustrate the department’s commitment to ensuring accessible housing is available for persons with disabilities.”
“Builders and designers of multi-family housing have an obligation to ensure that their housing is accessible to persons with disabilities,” said Wendy J. Olson, U.S Attorney for the District of Idaho. “We commend the work of the Department of Housing and Urban Development (HUD) and IFHC for their commitment to the fundamental principles of fair housing for all.”
“While most get it right, HUD and the Justice Department will continue to work together to ensure that all architects, builders and developers comply with their legal responsibility to build housing that is accessible,” said John Trasviña, HUD Assistant Secretary for Fair Housing and Equal Opportunity.
The complex’s condominium association, which is also a party to the proposed settlement, has agreed to allow access to the complex so that the retrofits can be completed.
The lawsuit arose from complaints filed with HUD by an individual seeking housing. After investigating the complaints, HUD issued a charge of discrimination and referred the case to 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.justice.gov/crt . Individuals who believe that they may have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Guam Bar Owner Found Guilty for Sex Trafficking and Related CrimesRead the Press Release
WASHINGTON – An owner of bar in Guam was found guilty today of sex trafficking, and coercion and enticement for prostitution related to a scheme to force young women and one juvenile girl into prostitution, the Department of Justice announced. The jury in Guam found Song Ja Cha, 69, guilty on all 20 counts of an indictment returned on July 23, 2008. The trial lasted eight days.
According to court documents, from 2004 through January 2008, Cha and others in the conspiracy recruited and enticed approximately nine victims to come to Guam from the island of Chuuk in the Federated States of Micronesia. The victims were largely poor, young and uneducated. Cha lured the young women and one 16-year-old girl to Guam by promising them legitimate employment in a restaurant or store. In actuality, Cha was the proprietor of Blue House Lounge, a bar that included approximately six VIP rooms offering commercial sex.
According to evidence presented in court, Cha and her co-conspirators compelled the victims to work in the VIP rooms for 12 to 14 hours a day for the financial benefit of the conspiracy. Upon the victims’ arrival to the Blue House Lounge, Cha stripped the young women of their passports, clothing and identities. Cha then used a variety of means to compel the victims to engage in prostitution, including physical assaults, threats of arrest, manipulation of debt, withholding food and restricted access to the outside world. The victims testified that they were terrified of Cha and her co-conspirators, and that Cha used the fact that police officers frequented the lounge to make the victims believe that she was "connected" and could have them arrested and jailed.
"The sexual exploitation of vulnerable individuals is an affront to fundamental rights and will not be tolerated in our country. The defendant preyed on the hopes and dreams of these young victims, forcing them into a life of prostitution," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The Department of Justice is committed to vigorously prosecuting the trafficking of human beings to uphold the rights of those held in modern-day slavery, whether for labor or for sexual exploitation."
"Human traffickers trick, lie and coerce young women with a promise of work in a legitimate job," said Alicia Limtiaco, U.S. Attorney for the District of Guam and the Northern Mariana Islands. "In reality, these young women lose their freedom and are horribly demeaned by the sexual acts that they are forced to perform. Defendant Cha preyed on vulnerable victims and used threats and abuse to force them into prostitution. The jury’s verdict makes clear that sex trafficking schemes will not be tolerated. We will continue to find traffickers and hold them accountable for their crimes."
Cha faces a maximum sentence of life in prison. Sentencing has been set for May 18, 2011.
The Department of Justice has identified human trafficking prosecutions such as this one as a top priority.
This case was investigated by special agents of U.S. Immigration and Customs Enforcement and the Guam Police Department. This case was prosecuted by trial attorneys Jared Fishman and Shan Patel of the Justice Department’s Civil Rights Division Criminal Section with assistance from Assistant U.S. Attorney Rosetta San Nicolas and the U.S. Attorney’s Office for Guam and the Northern Mariana Islands.
To report trafficking crimes, please call the Department of Homeland Security Tip Line at 1-866-347-2423.
Arkansas Woman Barred from Preparing Federal Tax Returns for OthersRead the Press Release
WASHINGTON – An Arkansas woman who operates Foster’s Income Tax Service in Knobel, Ark., has been permanently barred from preparing federal tax returns for others, the Justice Department announced today. The injunction order against Betty J. Foster, to which she consented, was entered by Judge J. Leon Holmes of the U.S. District Court for the Eastern District of Arkansas.
The government’s complaint alleges that Foster, through her company, prepares federal income tax returns for her customers that claim losses for non-existent businesses, as well as inflated or fabricated deductions, in order to understate tax liabilities unlawfully. According to the complaint, Foster has been preparing tax returns for a fee for approximately 25 years, and she consistently prepares approximately 450 tax returns per year. The government estimates that Foster’s unlawful return preparation activity has cost the United States $5 million or more for the 2007 through 2009 tax years.
This civil injunction action is part of the Justice Department’s nationwide efforts to halt abusive tax scams and the preparation of fraudulent federal tax returns. Since 2001, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax fraud schemes and the preparation of false returns. More information about these cases and the Tax Division can be found at www.usdoj.gov/tax.
16 February 2011
Two Virginia Businessmen Charged with Illegally Reimbursing Senate and Presidential Campaign ContributionsRead the Press Release
WASHINGTON - A federal grand jury in Alexandria, Va., today returned an indictment charging William P. Danielczyk Jr. and Eugene R. Biagi with reimbursing $186,600 in contributions to the Senate and Presidential campaign committees of a candidate for federal office, and obstructing the Federal Election Commission (FEC) and the FBI, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney Neil H. MacBride of the Eastern District of Virginia and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.
The indictment charges Danielczyk, 49, of Oakton, Va., and Biagi, 76, also of Oakton, each with one count of conspiracy, two counts of reimbursing contributions, one count of using corporate funds to reimburse contributions and one count of obstructing justice. The indictment also charges Danielczyk with two counts of causing false statements to be submitted to the FEC.
The defendants are expected to make initial court appearances Friday in U.S. District Court in Alexandria.
According to the indictment, Danielczyk co-hosted a September 2006 fundraiser for a candidate’s 2006 campaign for the U.S. Senate, and in March 2007, he co-hosted a fundraiser for the same candidate’s 2008 campaign for President of the United States. Danielczyk and Biagi allegedly reimbursed $30,200 to eight contributors to the 2006 Senate campaign, and reimbursed $156,400 to 35 contributors to the 2008 Presidential campaign. Additionally, the indictment alleges that Danielczyk and Biagi reimbursed the contributions to the 2008 Presidential campaign with corporate funds.
As part of the scheme, Danielczyk and Biagi allegedly created and distributed back-dated letters to 15 contributors that falsely characterized reimbursements for contributions as “consulting fees.” According to the indictment, Danielczyk and Biagi also created checks to 17 contributors containing a memorandum line falsely stating that each check was for “consulting fees.” In addition, according to the indictment, some or all of these checks were delivered with back-dated letters falsely stating that the contributor had received and would receive money for certain work.
According to court documents and information presented in court, Danielczyk and Biagi were aided by Danielczyk’s assistant, April G. Spittle. On Feb. 4, 2011, Spittle pleaded guilty in the Eastern District of Virginia to one count of making reimbursed contributions to the 2008 Presidential campaign.
According to a statement of facts filed with her plea agreement, Spittle participated in raising the $186,600 in reimbursed contributions at Danielczyk’s direction, received her own contribution reimbursement from Biagi, and distributed other reimbursement checks from Biagi. According to the court documents filed at the time of her guilty plea, Spittle participated, at Danielczyk’s direction, in creating back-dated and false letters for Biagi's signature, which sought to disguise the reimbursed contributions.
According to the indictment, Danielczyk caused the candidate’s campaign committee to unwittingly file with the FEC a 2007 report containing false information about the source and amount of contributions to the campaign. Danielczyk allegedly also caused the submission of correspondence to the FEC, which falsely stated that reimbursements of contributions to a candidate were bonus payments for work performed.
The maximum penalty for the conspiracy charge is five years in prison, while the charges of reimbursing contributions and contributing corporate funds each carry a maximum penalty of 10 years in prison. Obstruction of justice is punishable by up to 20 years in prison, and each count of making a false statement carries a maximum penalty of five years in prison. Each count of the indictment is additionally punishable by a $250,000 fine, with the exception of the reimbursing contribution counts, which are punishable by a fine of up to 10 times the contribution amount.
An indictment is merely an accusation, and defendants are presumed innocent unless proven guilty in a court of law.
This case is being prosecuted by Richard C. Pilger, Director of the Election Crimes Branch of the Criminal Division’s Public Integrity Section, Trial Attorney Ethan H. Levisohn of the Public Integrity Section, and Assistant U.S. Attorney Mark D. Lytle. The case was investigated by the FBI.
Two Individuals Plead Guilty in Connection with Costa Rica-based Business Opportunity Fraud VenturesRead the Press Release
WASHINGTON –Two individuals pleaded guilty today to conspiracy to commit mail and wire fraud for their roles in business opportunity fraud schemes, the Department of Justice and the U.S. Postal Inspection Service announced today.
Silvio Carrano and Gregory Britt Fleming were arrested following their indictment by a Miami federal grand jury on March 9, 2010, based on charges that they and their co-conspirators sold vending machine, beverage and greeting card business opportunities, including fraudulent promises of assistance in establishing, maintaining and operating such businesses. The charges are part of the government’s continued nationwide crackdown on business opportunity fraud.
"Business opportunity fraud imposes significant financial hardship on innocent, hardworking victims," said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. "The Department of Justice will continue to aggressively prosecute those who defraud Americans in an effort to make a quick buck."
"Business opportunity schemers need to realize that this type of fraud will be prosecuted vigorously. This is true even if they operate from outside of the United States," said Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida. "International law enforcement cooperation eliminates safe havens for those who cheat American citizens from overseas."
Two others involved in this scheme have been arrested and pleaded guilty. On June 29, 2010, Donald Williams pleaded guilty to conspiracy to commit mail and wire fraud. On Oct. 27, 2010, he was sentenced to 78 months in prison. On Jan. 18, 2011, Patrick Williams pleaded guilty to conspiracy to commit mail and wire fraud, 10 counts of mail fraud and three counts of wire fraud. Patrick Williams is scheduled to be sentenced on March 30, 2011.
According to court documents, beginning in June 2004, Carrano, Patrick Williams, Donald Williams, Fleming and their co-conspirators fraudulently induced purchasers in the United States to buy business opportunities in Apex Management Group Inc., USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc., The Coffee Man Inc. and Nation West Distribution Company. The defendants sold business opportunities costing thousands of dollars each, and most purchasers paid at least $10,000. Each company operated for several months, and after one company closed, the next opened. The various companies used bank accounts, office space and other services in the Southern District of Florida and elsewhere.
The defendants, using aliases, participated in a conspiracy that used various means to make it appear to potential purchasers that the businesses were located entirely in the United States. In reality, Carrano, Patrick Williams, Donald Williams and Fleming operated out of Costa Rica to fraudulently induce potential purchasers in the United States to buy the purported business opportunities, according to court documents.
Carrano and Fleming admitted that the companies made numerous false statements to potential purchasers of the business opportunities. Potential purchasers were falsely told they would likely earn substantial profits; that prior purchasers of the business opportunities were earning meaningful profits; and that the business opportunity worked with locators familiar with the potential purchaser’s area who would secure or had already secured high-traffic locations for the potential purchaser’s merchandise stands.
According to court documents, the companies employed various types of sales representatives, including "fronters," "closers" and references. A fronter spoke to potential purchasers when the prospective purchasers initially contacted the company in response to an advertisement. A closer subsequently spoke to potential purchasers to close deals. References spoke to potential purchasers about the financial success they purportedly had experienced since purchasing one of the business opportunities.
Carrano admitted that, using aliases, he worked as a fronter and reference for USA Beverages; a fronter and reference for Twin Peaks; a fronter and reference for Cards-R-Us; a reference for Premier Cards; and a reference for The Coffee Man. He was also listed on a corporate document as the treasurer of USA Beverages. Fleming admitted that he worked for USA Beverages and Nation West.
Each of the companies was registered as a corporation and rented office space to make it appear to potential purchasers that its operations were fully in the United States. Apex was registered as a Florida corporation and rented office space in Ft. Lauderdale, Fla., while USA Beverages was registered as a Florida and New Mexico corporation and rented office space in Las Cruces, N.M. Twin Peaks was registered as a Florida and Colorado corporation and rented office space in Fort Collins, Colo. Cards-R-Us was registered as a Nevada corporation and rented office space in Reno, Nev. Premier Cards was registered as a Colorado and Pennsylvania corporation and rented office space in Philadelphia. The Coffee Man and Nation West were both registered as a Colorado corporation and rented office space in Denver. These locations made it appear to potential purchasers that the businesses were located entirely in the United States when in fact they were not.
"Telemarketing fraud is not limited to operations in the United States. This international and domestic investigation illustrates the Postal Inspection Service’s resolve to protect the American public from business opportunity scams," said Henry Gutierrez, U. S. Postal Inspector in Charge in Miami.
Sentencing has been scheduled for April 20, 2011.
Assistant Attorney General West and U.S. Attorney Ferrer commended the investigative efforts of the Postal Inspection Service, and thanked the Federal Trade Commission which previously brought a related civil suit and made a criminal referral. The case is being prosecuted by trial attorneys Jeffrey Steger and Alan Phelps with the Civil Division’s Office of Consumer Protection Litigation.
Three Plead Guilty to Civil Rights Conspiracy in Connection with Cross Burning in Athens, LouisianaRead the Press Release
WASHINGTON – The Justice Department announced that U.S. District Judge Donald E. Walter accepted the guilty plea of Jeremy Matthew Moro, 33, for conspiring to burn a cross near the home of an interracial couple in Athens, La., in October 2008. Earlier this week, Judge Walter accepted the guilty plea of Joshua James Moro, 25, on the same charge.
Another defendant, Sonya Marie Hart, 31, pleaded guilty on Jan. 31, 2011, to misprision of a felony because she withheld information from the FBI regarding the defendants’ attempt to cover up the cross burning. The Moros’ cousin, Daniel Danforth, was previously convicted by a federal jury for organizing, carrying out and attempting to cover up the same cross burning.
During their pleas, entered before Magistrate Judge Mark L. Hornsby on Jan. 21, and Jan. 26, 2011, Joshua and Jeremy Moro admitted that in October 2008, they agreed with their cousin, Daniel Danforth, to build, erect and burn a cross near the home of another cousin, her African-American boyfriend (now husband), her 11-year-old son and their grandmother who was believed to approve of the cousin’s interracial relationship. Joshua Moro admitted that he offered Danforth diesel fuel to use to burn the cross, and that later that evening he sent a text message to see if Danforth and Jeremy Moro still needed the diesel to burn the cross. Jeremy Moro admitted that he helped Danforth find an accelerant, transport the cross to an area near the victims’ homes, and watched Danforth light the cross on fire because Danforth was upset about the presence of the African-American man living with their cousin. During her plea, on Jan. 31, 2011, Hart admitted that she affirmatively withheld information from the FBI in connection with the investigation into the cross burning and attempted cover-up.
Evidence during Danforth’s trial in January 2010, showed that in the days following the cross burning, Danforth, Jeremy Moro and Hart agreed to remove the burned cross when they learned that the FBI was going to investigate the matter. With Jeremy Moro’s and Hart’s assistance, Danforth removed the cross, disassembled it and hid it in the woods. The evidence also showed that Josh Moro, Jeremy Moro and Hart lied to the FBI and a federal grand jury during the investigation into the cross burning.
“Driven by bigotry and hate, the defendants threatened a member of their own family with violence simply because she associated with persons of another race,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “Incidents of this kind have no place in this country, and they are a reminder of the civil rights challenges we still face.”
“Cross burning, unfortunately, remains a terrible symbol of hatred and intolerance. Every citizen has a right to feel safe and secure in their homes and neighborhoods. Intimidation of citizens in this district will not be tolerated. This office will continue to prosecute individuals who participate or facilitate crimes which violate the civil rights laws,” said U.S. Attorney for the Western District of Louisiana Stephanie Finley.
“All families in America have the right to live where they chose, undisturbed by racial intolerance, racist threats and intimidation. These guilty pleas send a clear message of the FBI’s commitment to aggressively investigate this type of criminal conduct,” said David W. Welker, Special Agent in Charge of the New Orleans Division of the FBI.
Sentencing for Joshua Moro, Jeremy Moro and Hart has been set for April 28, 2011. Joshua and Jeremy Moro each face a maximum punishment of 10 years for conspiring to interfere with another person’s civil rights. Hart faces a maximum punishment of three years for affirmatively withholding information from the FBI regarding the defendants’ attempt to cover up the cross burning. Danforth was sentenced in May 2010 to 48 months in prison for his role in the cross burning and attempted cover-up.
This case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorney Mary J. Mudrick for the Western District of Louisiana and Trial Attorney Erin Aslan from the Justice Department’s Civil Rights Division.
Statement of the Attorney General on the Shootings in Elkins, West VirginiaRead the Press Release
WASHINGTON – “Today’s shootings in Elkins, West Virginia, demonstrate yet again the danger that our nation’s law enforcement officers confront on a daily basis. This morning, while attempting to serve a felony arrest warrant, three Deputy United States Marshals were met with gunfire from a dangerous fugitive who was eventually killed. In fulfilling their critical duties, these courageous Deputies put their lives on the line and put the safety of others above their own.
“Our thoughts and prayers are with the family of Deputy U.S. Marshal Derek Hotsinpiller, who made the ultimate sacrifice today, and with the two Deputies who were injured in the line of duty. Their valiant actions and their service to our nation will not be forgotten, and the Justice Department’s ongoing efforts to ensure the safety of all those who serve in law enforcement will continue to be a top priority.”
Secretary Napolitano and Attorney General Holder Form Joint Task Force to Assist Mexico’s Investigation into Yesterday’s Shooting of Two ICE Agents in MexicoRead the Press Release
WASHINGTON—Secretary of Homeland Security Janet Napolitano and Attorney General Eric Holder today met to discuss the shooting by unknown assailants of two U.S. Immigration and Customs Enforcement (ICE) special agents in the line of duty yesterday while driving in Mexico.
During their meeting, Secretary Napolitano and Attorney General Holder decided to establish a joint task force between the Department of Homeland Security and the Department of Justice, which will be led by the Federal Bureau of Investigation and will leverage the investigative capabilities of both agencies to work with Mexico in tracking down the perpetrators and swiftly bring them to justice.
“This joint task force reflects our commitment to bring the investigatory and prosecutorial power of the U.S. Government to bear as we work with the Mexican Government to bring these criminals to justice,” said Secretary Napolitano. “Our thoughts and prayers are with the ICE agents’ families and loved ones, as we are reminded of the risks and sacrifices undertaken every day by the men and women on the frontlines in protecting the safety and security of the American people.”
“The murder of Special Agent Jaime Zapata and the shooting of another ICE agent provide a sad reminder of the dangers American law enforcement officers face every day,” Attorney General Eric Holder said. “Working with our Mexican counterparts, we have already launched an aggressive investigation, and this joint task force will ensure that every available resource is used to bring the perpetrators of this terrible crime to justice.”
During their meeting, Secretary Napolitano and Attorney General Holder underscored the United States’ commitment to work closely with Mexican law enforcement in full support of the ongoing effort. They also reiterated their commitment to the U.S. government’s broader support for Mexico’s efforts to combat violence within its borders.
Today, Secretary Napolitano also spoke with Mexican Interior Minister Fernando Blake Mora. During the call, Secretary Napolitano emphasized to Minister Blake Mora that violence against DHS personnel in Mexico represents an attack against all those who serve our nation and put their lives at risk for our safety, and will not be tolerated by either country.
In yesterday’s attack, one U.S. law enforcement official, ICE Special Agent Jaime J. Zapata, was critically wounded and died from his injuries. The second agent was shot in the leg and has been discharged from the hospital. More information will be released when it is available.
More Than 100 Members and Associates of Transnational Organized Crime Groups Charged with Offenses Including Bank Fraud, Kidnapping, Racketeering and Health Care FraudRead the Press Release
WASHINGTON – One hundred and two members and associates of transnational organized criminal groups operating in the United States have been charged in indictments unsealed today in Los Angeles; Santa Ana, Calif.; Miami and Denver. Today, teams of federal, state and local authorities have arrested more than 80 of the 102 charged defendants, with arrests expected to continue throughout the day.
The charges were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney André Birotte Jr. for the Central District of California; U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida; Executive Assistant Director Shawn Henry of the FBI; members of the Eurasian Organized Crime Task Force in Los Angeles; and other federal, state and local law enforcement agencies.
“Today’s indictments allege literally hundreds of criminal acts in three states – from extortion and kidnapping to firearms trafficking and health care fraud,” said Assistant Attorney General Lanny A. Breuer of the Criminal Division. “The common denominator among these defendants and their criminal enterprises is the use of violence and intimidation to commit crimes for profit. But we are determined to fight back. In less than one month, the Justice Department has announced the largest one-day takedown against La Cosa Nostra, coordinated a nationwide gang takedown and, today, arrested more than 80 Armenian Power members, associates and others with ties to organized crime. These groups bring fear into our communities, defraud innocent victims, and put the safety and security of our neighborhoods at risk. We are taking an aggressive stand against these organized criminal groups and will continue our efforts to put them out of business.”
“The Southern California indictments that target the Armenian Power organized crime enterprise provide a window into a group that appears willing to do anything and everything illegal to make a profit. These types of criminal organizations – through the use of extortions, kidnappings and other violent acts – have a demonstrated willingness to prey upon members of their own community,” U.S. Attorney Birotte. “As we have seen in Los Angeles and elsewhere, these groups also engaged in various fraud schemes that clearly have had a significant impact on financial institutions and their customers who have lost millions of dollars and lost their sense of security through identity theft and credit card fraud.”
“Organized crime relies on extortion and the intimidation of victims through violence and fear,” said U.S. Attorney Ferrer. “Today’s takedown has removed 100 members and associates of organized crime groups from the streets of Miami, Los Angeles and Denver. We stand firm in our resolve to help eliminate organized criminal activity, be it domestic or transnational.”
“We have seen organized crime spread from shakedowns on street corners to complex cyber schemes, human trafficking and other crimes perpetrated across international borders,” said Executive Assistant Director Shawn Henry of the FBI. “Transnational enterprises are siphoning hundreds of millions of dollars from our economy to perpetuate their cycle of greed.”
In Los Angeles, two indictments charge 88 defendants with a wide variety of violent and fraud-related crimes. The alleged crimes include kidnapping, extortion, assault, witness intimidation, bank fraud, credit card fraud and drug distribution. Numerous defendants are alleged to be members and associates of Armenian Power (AP), a racketeering enterprise with a significant presence in Los Angeles.
According to the indictments, AP’s membership consists primarily of individuals whose heritage goes back to Armenia and other Eastern Bloc countries. AP is an international organized crime group that started as a street gang in East Hollywood, Calif., in the 1980s.
A 134-count indictment (U.S. v. Darbinyan, et al) charges 29 of its 70 defendants with violating the Racketeer Influenced and Corrupt Organizations Act, or RICO, and alleges a host of illegal activities, including fraud schemes involving identify theft, credit card skimming and manufacturing of counterfeit checks. The financial fraud crimes allegedly committed on behalf of AP were highly sophisticated, targeting thousands of victims and resulting in millions of dollars of actual and intended losses to banks and individual victims.
Among the schemes charged in the Darbinyan indictment is a bank fraud and counterfeit credit card scheme that victimized hundreds of customers of 99 Cents Only Stores throughout Southern California when AP members and associates allegedly installed sophisticated “skimming” devices to steal customer account information. According to the Darbinyan indictment, these devices gave the AP members information, which they used to create counterfeit debit cards and credit cards, and steal thousands of dollars from the accounts.
In addition, AP members allegedly engaged in a large-scale check fraud scheme using a wide network of associations in which they unlawfully obtained customer information for high-value bank accounts, impersonated the bank customers to acquire checks, and then cashed and deposited checks in an effort to deplete the accounts. At times, members of the conspiracy allegedly went to victims’ residences to steal bank checks that had been mailed to them.
In addition to the RICO count that includes nearly 450 alleged overt acts, the indictment charges AP members with kidnapping, extortion, bank fraud, aggravated identity theft, credit card fraud, marijuana distribution, conducting an illegal gambling business and numerous firearms offenses. In one kidnapping scheme, several AP members allegedly seized a victim and forced him to pay ransom by taking him to an auto body shop belonging to an AP member and threatening him with violence. Several defendants allegedly targeted another victim in an extortion scheme lasting several months, in which they threatened the victim and his family in order to extract repeated payments from the victim. The indictment alleges that the defendants repeatedly possessed and distributed drugs and firearms. During the course of the investigation, law enforcement made numerous seizures of marijuana grows, firearms, ammunition and skimming devices.
The second California indictment (U.S. v. Sharopetrosian, et al) was returned by a federal grand jury in Santa Ana and charges 20 defendants, two of whom are also charged in the Darbinyan indictment. In addition to alleging schemes similar to those alleged in the Darbinyan indictment, the Sharopetrosian indictment alleges that AP members engaged in a bank fraud scheme that targeted elderly and vulnerable victims. Members of AP allegedly joined with members of other gangs and allegedly obtained confidential information about bank accounts. The conspirators paid bank insiders for the confidential information, which included social security numbers and passwords used to access the accounts. According to the indictment, the conspirators then used that information to take control of the bank accounts and stole at least $10 million from hundreds of accounts.
The investigation of AP also revealed that its members took great efforts to conceal their criminal activities from law enforcement, and some continued to be involved in various schemes even after they were incarcerated. Two of the defendants are accused of using smuggled mobile phones to coordinate bank fraud schemes while in state prison, and one of those incarcerated defendants allegedly helped organize a scheme to threaten and extort another person while still in prison.
According to the Darbinyan indictment, AP is closely allied with the Mexican Mafia, a prison gang that controls much of the narcotics distribution and other criminal activities within California correctional facilities. In addition to its connections to criminal groups operating in California, such as the Mexican Mafia, AP leadership is alleged to maintain ties to Armenia and Russia and to deal directly with high-level Armenian/Russian organized crime figures, both within the United States and abroad. Among those high-level crime figures are traditional “Thieves-in-Law,” who are used to resolve disputes and address criminal activity. According to the indictment, because of its large network of members and associates, its demonstrated ability to carry out acts of violence, and its strong relationship with the Mexican Mafia, Armenian Power leaders interact with traditional Thieves-in-Laws as equals. At times, AP members and associates confront and commit acts of violence against associates of traditional Thieves-in-Law in a demonstration of the authority of AP leadership.
In addition to the federal indictments, the Los Angeles County District Attorney has charged 11 defendants in California state court, bringing the total number of AP members charged with crimes to 99.
Also today, in a related case, 13 defendants were charged in three indictments unsealed in Miami with extortion conspiracy, credit card fraud, money laundering, smuggling of firearms and health care fraud, among other crimes. According to the Miami court documents, several of the defendants maintain associations with members and associates of AP as well as with a “thief-in-law” who was arrested in the Southern District of New York in October 2010. According to court documents, Aram Khranyan, 41, of Sunny Isles Beach, Fla., was the “overseer” of the extortion conspiracies and maintains strong ties to Armenia and Russia.
In addition, according to court documents, Khranyan entered into a false marriage with Mira Shatkhin, 35, of Sunny Isles Beach, in order to obtain permanent legal status in the United States. Three defendants (Andranik Itchmelyan, 48, of Davie, Fla.; Gegam Kalashyan, 41, of Hallandale Beach, Fla.; and Vladimir Okun, 44, of Davie) also are charged with transporting numerous firearms in 2009 from the United States to Yerevan, Armenia, without obtaining the appropriate license to do so.
Two indictments unsealed today in Miami allege health care fraud schemes running from 2007 to the present. The first health care fraud indictment charges three defendants (Andranik Itchmelyan, 48; Anahit Karapetyan, 40 of Davie; and Frank Rodriguez, 52, of North Miami Beach, Fla.) with conspiracy to commit health care fraud and substantive counts of health care fraud in connection with their ownership and operation of Hallandale Medical Associates Inc. The second health care fraud indictment charges another three defendants (Vladimir Okun; Andrey Schegolev, 49, of Hollywood, Fla; Harvey Lerfelt, 51 of North Miami Beach) with conspiracy to commit health care fraud and substantive counts of health care fraud in connection with their ownership and operation of Family Chiropractic Center Inc. Both of these clinics allegedly paid individuals to refer “patients” of staged accidents. The clinics billed private insurance carriers for treatments that were either not medically necessary or were not provided.
Finally, in an indictment unsealed today in U.S. District Court for the District of Colorado, Nadezda Nikitina, 24, of Denver, was charged with conspiring with others to make false statements to the United States on credit and loan applications. The indictment charges that Nikitina, acting under the control of a transnational criminal group, established a shell company and then used that shell company to apply for business and personal credit cards, car loans and leases, consumer loans and a home equity loan. In those credit applications, Nikitina allegedly claimed that she was the owner or an employee of the company. The indictment charges that Nikitina and her co-conspirators would conduct little activity on the credit card accounts and then go on a spending splurge, or “bust out” the lines of credit up to and over the credit limits on her various accounts. The indictment also charges Nikitina with 10 counts of false statements on credit and loan applications, bank fraud and wire fraud.
An indictment is merely an accusation and defendants are presumed innocent until proven guilty in a court of law. Copies of court documents can be found at www.justice.gov/opa/ioc.htm.
The two-year investigation of Armenian Power in Los Angeles – known as Operation Power Outage – was conducted by the Eurasian Organized Crime Task Force, which is made up of investigators from federal and local law enforcement agencies, including the FBI, the U.S. Secret Service, U.S. Immigration and Customs Enforcement (ICE), the Office of Inspector General (OIG) for the U.S. Department of Health and Human Services (HHS), Internal Revenue Service (IRS) – Criminal Investigation, the Los Angeles County Sheriff’s Department, the Los Angeles Police Department, the Glendale Police Department and the Burbank Police Department. The mission of the Task Force is to investigate and disrupt or dismantle Eurasian organized crime groups operating within the Los Angeles area, and elsewhere.
The Eurasian Organized Crime Task Force Task Force worked with several other law enforcement agencies that provided substantial assistance during this morning’s takedown, including the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Drug Enforcement Administration; the Los Angeles County District Attorney’s Office, Bureau of Investigation; the U.S. Marshals Service; and investigators with the California Department of Motor Vehicles.
The Miami cases were investigated by the FBI, IRS, ICE, Customs and Border Patrol and the Sunny Isles Beach Police Department. Valuable assistance was also provided by the International Organized Crime Intelligence and Operations Center (IOC-2); Miami-Dade Police Department; North Miami Beach Police Department; Hallandale Beach Police Department; U.S. Secret Service; HHS – Office of the Inspector General, Florida Department of Financial Services, Division of Insurance Fraud; the National Insurance Crime Bureau and the Serious Organised Crime Agency of the United Kingdom.
These cases are being prosecuted separately and independently of each other. The Los Angeles cases are being prosecuted by Assistant U.S. Attorneys E. Martin Estrada, Sarah Levitt, Stephen G. Wolfe and Joseph McNally, as well as Trial Attorney Cristina Moreno of the Criminal Division’s Organized Crime and Racketeering Section (OCRS). The Miami cases are being prosecuted by Assistant U.S. Attorneys Joseph Huynh and Cynthia Stone, as well as OCRS Trial Attorney Margaret Honrath and Trial Attorney Constantine Lizas of the Criminal Division’s Asset Forfeiture and Money Laundering Section. The Denver case is being prosecuted by OCRS Trial Attorneys Robert S. Tully and Joe Wheatley.
Joint U.S.-Croatia Statement on Preventing and Combating Serious Crime AgreementRead the Press Release
WASHINGTON – The United States and Croatia today signed an Agreement on Preventing and Combating Serious Crime. The agreement was signed on behalf of the United States by Attorney General Eric Holder and Secretary of Homeland Security Janet Napolitano. On behalf of Croatia, the agreement was signed by Interior Minister Tomislav Karamarko.
The U.S. Department of Justice, the U.S. Department of Homeland Security and the Republic of Croatia Ministry of Interior released the following statement:
“This agreement reflects, and further advances, the close collaboration between U.S. and Croatian law enforcement and border security personnel in fighting terrorism and transnational crime. It also provides an opportunity for overall security cooperation between the United States and Croatia as well as avenues in which to explore the possible further strengthening of such cooperation.
“The Agreement on Preventing and Combating Serious Crime provides 21st century tools to fight terrorism and transnational crime, while protecting individual privacy. It reinforces our shared commitment to international cooperation and will help prevent known criminals and terrorists from causing harm to our citizens. It allows for fingerprint matching “hit/no hit” queries between our two nations, pursuant to which law enforcement officials in either country may submit the fingerprint information of a suspected criminal or terrorist to the other country for an immediate determination whether the queried country holds matching fingerprint records, while incorporating important privacy protections. If this initial inquiry results in a match, only then may follow-up inquiries be made through law enforcement or mutual legal assistance channels.
This agreement – which is modeled on the EU’s “Prüm” Agreement – provides for the sharing of important law enforcement information regarding criminal and terrorists, while ensuring that the privacy of citizens is protected.”
El Secretario Napolitano y el Secretario de Justicia de los Estados Unidos Holder forman una Fuerza de Tarea Conjunta para ayudar en la investigación mexicana de los disparos de ayer contra dos Agent...Read the Press Release
WASHINGTON - La Secretaria de Seguridad Nacional Janet Napolitano y el Secretario de Justicia de los Estados Unidos Eric Holder se reunieron hoy para discutir los disparos contra dos agentes especiales del Servicio de Inmigración y Control de Aduanas de EE.UU. [U.S. Immigration and Customs Enforcement (ICE)] en cumplimiento del deber, realizados por dos atacantes desconocidos mientras conducían un vehículo en México.
Durante la reunión, la Secretaria Napolitano y el Secretario de Justicia de los Estados Unidos Holder decidieron establecer una fuerza de tarea conjunta entre el Departamento de Seguridad Nacional y el Departamento de Justicia, a ser encabezada por el Buró Federal de Investigaciones. Dicha fuerza de tarea aprovechará las capacidades de investigación de ambas dependencias para trabajar en México en encontrar a los autores del delito y llevarlos ante la justicia.
"Esta fuerza de tarea conjunta es un reflejo de nuestro compromiso de utilizar todo el poder de investigación y enjuiciamiento del Gobierno de EE.UU. al trabajar con el gobierno mexicano para lograr el enjuiciamiento de estos delincuentes", dijo la Secretaria Napolitano. "Nuestros pensamientos y oraciones están con las familias y los seres queridos de los agentes del ICE, al ser recordados de los riesgos y sacrificios asumidos cada día por los hombres y mujeres en las las líneas de frente, para proteger la seguridad del pueblo estadounidense".
"El homicidio del Agente Especial Jaime Zapata y los disparos efectuados contra otro agente del ICE son un triste recordatorio de los peligros que los agentes de las fuerzas armadas de los Estados Unidos enfrentan todos los días", dijo el Secretario de Justicia de los Estados Unidos Eric Holder. "Trabajando con nuestros homólogos mexicanos, ya hemos lanzado una investigación agresiva, y esta fuerza de tarea conjunta asegurará que todo recurso disponible se utilice para enjuiciar a los autores de este terrible delito. ”
Durante su reunión, la Secretaria Napolitano y el Secretario de Justicia de los Estados Unidos Holder destacaron el compromiso de los Estados Unidos de trabajar estrechamente con las fuerzas del orden público mexicanas en pleno apoyo a la labor en curso. También reiteraron su compromiso de un mayor apoyo del gobierno estadounidense a la labor de México de combate a la violencia dentro de sus fronteras.
Hoy, la Secretaria Napolitano también habló con el Ministro del Interior de México Fernando Blake Mora. Durante la llamada, la Secretaria Napolitano enfatizó al Ministro Blake Mora que la violencia contra personal del Departamento de Seguridad Nacional [Department of Homeland Security (DHD)] en México representa un ataque contra todos aquellos que sirven a nuestra nación y ponen en riesgo sus vidas para nuestra seguridad, y no será tolerada por ninguno de los dos países.
En el ataque de ayer, un agente de las fuerzas del orden público estadounidenses, el Agente Especial del ICE Jaime J. Zapata, recibió heridas críticas que causaron su fallecimiento. El segundo agente recibió disparos en la pierna y ha recibido el alta hospitalaria. Se divulgará más información al respecto a medida que esté disponible.
Dos personas se declaran culpables en conexión con empresas de oportunidades comerciales fraudulentas con sede en Costa RicaRead the Press Release
WASHINGTON - Dos personas se declararon culpables hoy de conspiración para cometer fraude postal y telegráfico por sus papeles en ardides de oportunidades comerciales fraudulentas, anunciaron hoy el Departamento de Justicia y el Servicio de Inspección Postal de EE.UU.
Silvio Carrano y Gregory Britt Fleming fueron arrestados después de su acusación formal emitida por un gran jurado federal en Miami el 9 de marzo de 2010, con base en cargos de que ellos y sus coconspiradores vendieron oportunidades de máquinas expendedoras, bebidas y tarjetas de felicitaciones, incluidas promesas fraudulentas de asistencia en el establecimiento, mantenimiento y operación de dichas empresas. Los cargos son parte de la campaña nacional continua del gobierno contra el fraude de oportunidades comerciales.
"El fraude de oportunidades comerciales impone dificultades financieras significativas a víctimas inocentes y trabajadoras", dijo Tony West, Secretario de Justicia Auxiliar de la División de los Civil del Departamento de Justicia. "El Departamento de Justicia seguirá enjuiciando enérgicamente a quienes defrauden a los ciudadanos estadounidenses con la finalidad de ganar dinero rápido".
"Los estafadores de oportunidades comerciales necesitan darse cuenta de que este tipo de fraude será enérgicamente enjuiciado. Esto es así aunque operen desde afuera de los Estados Unidos", dijo Wifredo A. Ferrer, Fiscal Federal para el Distrito Sur de Florida. "La cooperación internacional de las fuerzas del orden público elimina los refugios para quienes estafen a ciudadanos estadounidenses desde el exterior".
Otros dos individuos involucrados en este ardid han sido arrestados y se han declarado culpables. El 29 de junio de 2010, Donald Williams se declaró culpable de conspiración para cometer fraude postal y telegráfico. El 27 de Octubre de 2010, fue sentenciado a 78 meses en prisión. El 18 de enero de 2011, Patrick Williams se declaró culpable de conspiración para cometer fraude postal y telegráfico, 10 cargos de fraude postal y tres cargos de fraude telegráfico. La lectura de la sentencia de Patrick Williams está programada para el 30 de marzo de 2011.
De acuerdo con el expediente judicial, a partir de junio de 2004, Carrano, Patrick Williams, Donald Williams, Fleming y sus coconspiradores convencieron fraudulentamente a compradores en los Estados Unidos que compraran oportunidades comerciales en Apex Management Group Inc. , USA Beverages Inc., Twin Peaks Gourmet Coffee Inc., Cards-R-Us Inc., Premier Cards Inc., The Coffee Man Inc. y Nation West Distribution Company. Los demandados vendieron oportunidades comerciales por miles de dólares cada una, y la mayoría de los compradores pagó por lo menos 10,000 dólares. Cada compañía operó durante varios meses, y después de que se cerraba una, se abría otra. Las diversas compañías utilizaron cuentas bancarias, oficinas y otros servicios en el Distrito Sur de Florida y otros lugares.
Los demandados, utilizando nombres ficticios, participaron en una conspiración que utilizó diversos medios para que los potenciales compradores pensaran que las empresas estaban plenamente ubicadas en los Estados Unidos. En realidad, Carrano, Patrick Williams, Donald Williams y Fleming operaban desde Costa Rica para convencer fraudulentamente a potenciales compradores en los Estados Unidos a comprar las supuestas oportunidades comerciales, de acuerdo con el expediente judicial.
Carrano y Fleming admitieron que las empresas realizaron numerosas declaraciones falsas a potenciales compradores de las oportunidades comerciales. Se les dijo falsamente a los compradores potenciales que probablemente recibirían lucros significativos; que compradores anteriores de las oportunidades comerciales recibían lucros significativos; y que la oportunidad comercial trabajaba con localizadores familiarizados con el área del comprador potencial, quienes obtendrían o ya habían obtenido ubicaciones de alto tráfico para los puestos comerciales del comprador potencial.
De acuerdo con el expediente judicial, las empresas emplearon diversos tipos de representantes de ventas, incluidos "personal de frente", "personal de cierre" y referencias. El personal de cierre hablaba con los potenciales compradores cuando inicialmente entraban en contacto con la compañía en respuesta a un aviso publicitario. A seguir, el personal de cierre hablaba con potenciales compradores para cerrar los negocios. Las referencias hablaban con potenciales compradores acerca de su supuesto éxito financiero desde que habían comprado una de las oportunidades comerciales.
Carrano admitió que, usando aliases, trabajó como empleado de frente y referencias para USA Beverages; empleado de frente y referencias para Twin Peaks; empleado de frente y referencias para Cards-R-Us; referencia para Premier Cards; y referencia para The Coffee Man. También figuraba en un documento societario como tesorero de USA Beverages. Fleming admitió que trabajó para USA Beverages y Nation West.
Cada una de las compañías estaba registrada como una sociedad y alquilaba oficinas para que los potenciales compradores pensaran que sus operaciones estaban plenamente ubicadas en los Estados Unidos. Apex estaba registrada como una empresa de Florida y alquilaba oficinas en Ft. Lauderdale, Fla., mientras que USA Beverages estaba registrada como una empresa de Florida y Nuevo México y alquilaba oficinas en Las Cruces, N.M. Peaks estaba registrada como una empresa de Florida y Colorado y alquilaba oficinas en Fort Collins, Colo. Cards-R-Us estaba registrada como una empresa de Nevada y alquilaba oficinas en Reno, Nev. Premier Cards estaba registrada como una empresa de Colorado y Pensilvania y alquilaba oficinas en Filadelfia. The Coffee Man y Nation West estaban ambas registradas como empresas de Colorado y alquilaban oficinas en Denver. Estas ubicaciones hicieron con que los potenciales compradores pensaran que las empresas estaban totalmente ubicadas en los Estados Unidos, cuando de hecho no lo estaban.
"El fraude de telemarketing no se limita a operaciones en los Estados Unidos. Esta investigación internacional y nacional ilustra la determinación del Servicio de Inspección Postal de proteger al público estadounidense contra los ardides de oportunidades comerciales", indicó Henry Gutierrez, Inspector Postal de EE.UU. a Cargo en Miami.
La lectura de la sentencia ha sido programada para el 20 de abril de 2011.
El Secretario de Justicia Auxiliar West y el Fiscal Federal Ferrer felicitaron al Servicio de Inspección Postal por su labor de investigación, y agradecieron a la Comisión Federal de Comercio quien había entablado una demanda relacionada anteriormente y realizado una remisión penal. Están a cargo de la acusación en el caso los abogados litigantes Jeffrey Steger y Alan Phelps de la Oficina de Litigio de Protección al Consumidor de la División de lo Civil.
15 February 2011
Virginia Man Sentenced to 15 Years in Prison for<br /> Engaging in a Child Exploitation EnterpriseRead the Press Release
WASHINGTON – Fred Woolum of Lexington, Va., was sentenced today in the Western District of Pennsylvania to 15 years in prison and a lifetime of supervised release for engaging in a child exploitation enterprise, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division, U.S. Attorney for the Western District of Pennsylvania David J. Hickton and U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) Special Agent in Charge John Kelleghan.
Woolum, 59, pleaded guilty to one count of engaging in a child exploitation enterprise before U.S. District Court Judge Arthur J. Schwab on July 22, 2010. According to court documents and proceedings, Woolum and others distributed images and videos of children being sexually abused to other members of an international group that had restricted membership and was formed on a social networking website. Members of the group distributed to one another thousands of sexually explicit images and videos of children, many of which graphically depicted prepubescent, male children, including some infants, being sexually abused and sometimes sodomized or subjected to bondage.
This case was investigated by HSI in Pittsburgh and the High Technology Investigative Unit of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Assistant U.S. Attorney Craig W. Haller of the Western District of Pennsylvania and CEOS Trial Attorney Andrew McCormack prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Twenty People Indicted in Florida for Health Care Fraud Scheme Involving Approximately $200 Million in Medicare BillingRead the Press Release
WASHINGTON – Twenty individuals, including three doctors, were charged today in the Southern District of Florida for various health care fraud, kickback and money laundering charges related to their alleged participation in a fraud scheme involving approximately $200 million in Medicare billing for purported mental health services, announced the Departments of Justice and Health and Human Services (HHS).
The 38-count indictment unsealed today in U.S. District Court in the Southern District of Florida alleges that the defendants worked with and for American Therapeutic Corporation (ATC) and Medlink Professional Management Group Inc. According to court documents, the defendants participated in a scheme to defraud Medicare by submitting false claims for mental health services administered at ATC facilities that were medically unnecessary or not provided at all. The indictment alleges that various defendants paid kickbacks to patient brokers and owners and operators of halfway houses and assisted living facilities (ALFs), in exchange for delivering patients to ATC facilities. Various defendants are charged with participating in an extensive and complicated money laundering scheme related to the cash for kickback payments. Sixteen defendants were arrested this morning in the Southern District of Florida and are expected to appear in U.S. District Court in Miami later today. Arrests are expected to continue in the coming days.
ATC’s and Medlink’s owners and managers, Lawrence S. Duran, Marianella Valera, Judith Negron and Margarita Acevedo, were originally indicted along with the corporate entities, ATC and Medlink, in October 2010. A superseding 38-count indictment unsealed today in the Southern District of Florida charges them with additional offenses.
“As today’s charges reflect, defrauding the Medicare system was not an aberration at ATC, but instead part and parcel of its business operations,” said Assistant Attorney General Lanny A. Breuer of the Criminal Division. “The alleged scheme was brazen in scope, and carried out by the company’s owners, doctors, marketers and others. By exploiting positions of trust, these defendants masked their fraudulent operation as a legitimate mental health business. These charges are evidence that we will pursue Medicare cheats no matter their position.”
“Community mental health centers are an essential element of the nation’s health care system and serve vulnerable populations,” said Daniel R. Levinson, HHS Inspector General. “Today’s arrests by OIG agents and our law enforcement partners show that we will not tolerate criminals who pay kickbacks for referrals of Medicare business or who bill for services that were either medically unnecessary or never provided.”
“Community Mental Health Centers can no longer use phantom medical care as a front to bilk Medicare for unnecessary or nonexistent medical services,” said FBI Special Agent in Charge John V. Gillies of the Miami Field Office. “The FBI and our law enforcement partners will investigate and criminally prosecute such fraud to the fullest extent of the law.”
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida stated, “Health care fraud has evolved from DME fraud, to infusion fraud, to home health care fraud, and now, as this case shows, to community mental health treatment fraud. Worse yet, health care fraud has come to permeate every level of the health care industry, from the owners and managers of dirty clinics, to complicit doctors, program directors, therapists, marketers, and patient recruiters. Today’s prosecution confirms that we are well-equipped and primed to fight the changing face of Medicare fraud in the Southern District of Florida, and that we will prosecute every link in the fraud chain.”
According to court documents, ATC, headquartered in Miami, operated purported partial hospitalization programs (PHPs) in seven different locations throughout Florida, from Homestead to Orlando. A PHP is a form of intensive treatment for mental illness. Court documents allege that Duran and Valera orchestrated the fraud, kickback and money laundering schemes. Negron assisted Duran and Valera in operating the schemes. Acevedo operated the kickback scheme.
According to court documents, doctors Mark Willner, Alan Gumer and Alberta Ayala were medical directors for ATC, and Vanja Abreu (Ph.D.), Nancy Merced-Sola and Lydia Ward (Ph.D.) served as program directors who managed ATC facilities. Nichole Eckert was a therapist at ATC. Court documents allege that Duran, Negron and Valera, along with the program directors and Eckert, regularly altered and instructed others to alter patient charts and notes from therapy sessions at ATC in order to make it appear that the patients being treated qualified for PHP treatments, when, in fact, they did not. According to the indictment, Willner, Gumer and Ayala then signed the false patient charts authorizing unnecessary treatment or continued treatment for patients who were not eligible for PHP treatment, without examining the patients or the charts. Duran and Valera also allegedly instructed employees and doctors at ATC, including Willner, Gumer and Ayala, to alter diagnoses and medication types and levels to falsely make it appear that the patients qualified for PHP treatments.
According to court documents, Valera, Willner, Gumer and Ayala manipulated the length of patients’ stays in order to maximize the number of days Medicare would pay for the PHP services. According to a civil complaint filed in the Southern District of Florida, ATC routinely admitted patients to the PHP program who suffered from Alzheimer’s and severe dementia and therefore were not eligible for the PHP program because their mental capacity did not allow them to benefit from group therapy.
The indictment also alleges that Sandra Jimenez, Hilario Morris and Joseph Valdes were marketers for ATC and participated in the kickback operation. These marketers, along with Duran, Valera, Negron and Acevedo, allegedly paid kickbacks to patient brokers and owners and operators of ALFs and halfway houses in exchange for delivering patients from their facilities to ATC. The indictment alleges that defendants Mathis Moore, Nelson Fernandez, Leyanes Placeres, James Edwards, Frank Criado and Curtis Gates were patient brokers and, in exchange for kickbacks, provided patients to ATC every month from ALFs and halfway houses with which they had relationships. The indictment alleges that the kickback payments totaled millions of dollars.
The indictments allege that the kickback scheme was supported by a money laundering scheme whereby individuals received checks in their own names or in the names of shell corporations they created, cashed the checks and returned the cash to Duran and Valera, which Duran and Valera then used to pay the kickbacks. Defendants Adriana Mejia, Pedro Sosa, Yoisel Cancio and an unnamed coconspirator, along with Moore, Fernandez, Placeres, Edwards, Criado and Gates, allegedly participated with Duran, Valera, Negron and Acevedo in the charged money laundering conspiracy. According to the indictment, Mejia, Sosa and Cancio received monthly, bi-weekly and weekly payments from Medlink despite the fact that they had no job functions at Medlink or ATC, other than laundering money. The indictments also charge that Duran, Valera, Negron, Mejia, Sosa and Cancio engaged in transactions designed to conceal proceeds of unlawful activity and structured their transactions to avoid reporting requirements that require banks to report certain transactions. According to the indictments, these defendants together laundered millions of dollars over several years.
The alleged scheme also involved a company called American Sleep Institute (ASI), which purportedly provided sleep study services. The defendants paid additional kickbacks for some patients to also visit ASI. Court documents allege that Willner, Gumer and Ayala furthered the health care fraud conspiracy by referring patients to ASI.
In a separate action in October 2010, a civil complaint for injunctive relief was filed in U.S. District Court in the Southern District of Florida and a preliminary injunction was obtained to freeze the assets of Duran, Valera, Negron, Acevedo, ATC and Medlink as well as ASI and D&V Development Inc., as participants in the health care fraud. Civil court documents allege that D&V Development was owned and operated by Valera and Duran and was established in an effort to divert funds received by ATC and ASI.
An indictment is merely a charge and defendants are presumed innocent until proven guilty.
Today’s actions were announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida; Special Agent in Charge John V. Gillies of the FBI’s Miami Field Office; and Daniel R. Levinson, Inspector General of HHS.
The criminal cases are being prosecuted by Trial Attorneys Jennifer L. Saulino, Maria Gonzalez Calvet and Joseph S. Beemsterboer of the Criminal Division’s Fraud Section. The related civil action is being prosecuted by Vanessa I. Reed and Carolyn B. Tapie of the Civil Division and Assistant U.S. Attorney Ted L. Radway of the Southern District of Florida. The cases are being investigated by the FBI and HHS Office of Inspector General (OIG). The cases were brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.
Since their inception in March 2007, Strike Force operations in seven districts have obtained indictments of more than 850 individuals who collectively have falsely billed the Medicare program for approximately $2.1 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov
Latin Kings Leader Sentenced to 60 Years in Prison for a Racketeering Conspiracy Related to His Gang ActivitiesRead the Press Release
WASHINGTON – A leader of the Almighty Latin King and Queen Nation (Latin Kings) in Maryland was sentenced yesterday by U.S. District Judge Alexander Williams Jr. to 60 years in prison for conspiracy to participate in a racketeering enterprise in connection with his gang activities as a member and leader of the Latin Kings.
Erick Roman, aka “Erick Javier Sierra,” “Malian-T” and “King Malian-T,” 34, of Laurel, Md., was also ordered to serve five years of supervised release following his prison term.
The sentence was announced by Assistant Attorney General Lanny A Breuer of the Justice Department’s Criminal Division; U.S. Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Theresa R. Stoop of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Chief J. Thomas Manger of the Montgomery County Police Department; Montgomery County State’s Attorney John McCarthy; Interim Chief Mark Magaw of the Prince George’s County Police Department; and Prince George’s County State’s Attorney Angela Alsobrooks.
“As the founder and leader of a Latin Kings tribe in Maryland, Mr. Roman orchestrated a series of violent crimes, including a murder, firebombings and robberies,” said Assistant Attorney General Breuer. “As this case shows, the Justice Department is committed to working with state and local law enforcement to target the leadership of local gangs and make our communities safer.”
“The strategy of combining the resources and intelligence of local, state and federal law enforcement agencies to pursue federal racketeering charges against criminal gangs is proving effective in removing violent offenders from the streets and making our neighborhoods more safe,” said U.S. Attorney Rosenstein.
“ATF did not relent in our pursuit to eradicate the founding leadership of the Maryland Latin Kings,” said ATF Special Agent in Charge Stoop. “Our solid investigation brought down the man who was directing these malignant acts of violence.”
According to court documents and statements made at yesterday’s hearing, the Latin Kings is a violent street gang with thousands of members across the country and overseas. The Latin Kings have a detailed and uniform organizational structure, which is outlined – along with various “prayers,” codes of behavior and rituals – in a written “manifesto” widely distributed to members throughout the country. Members of the Latin Kings are also traditionally given “King Names” or “Queen Names,” which are names other than their legal names, by which they are known to members of the gang and to others. At the local level, groups of Latin Kings are organized into “tribes,” including the Royal Lion Tribe, MOG, Sun Tribe and UTL.
Prosecutors advised the court that Roman brought the Latin Kings to Maryland and founded the Royal Lion Tribe. He served as the Inca of the tribe and, in that capacity, sanctioned or ordered numerous violent acts, including a home invasion robbery of a drug dealer at the Marylander Condominiums in Langley Park, Md.; the robbery of a prostitute at a motel in Laurel; the firebombing of an apartment on July 24, 2007; the firebombing of a house on Jan. 8, 2008; and the murder of John Realpe-Montoya on April 25, 2008.
Eight co-defendants have previously pleaded guilty to the racketeering conspiracy.
The ATF-led Regional Anti-Gang Enforcement (RAGE) Task Force, which includes the Gaithersburg, Md., Police Department; the Montgomery County Department of Police; the Montgomery County State’s Attorney’s Office; the Prince George’s County Police Department; the Prince George’s County State’s Attorney’s Office; the Montgomery County Sheriff’s Office; the Maryland National Capital Park Police - Prince George’s County Division; and the Maryland State Police; as well as the New York City Police Department, the U.S. Secret Service and the Internal Revenue Service - Criminal Investigation provided assistance in the investigation and prosecution.
The case was prosecuted by Assistant U.S. Attorneys Emily Glatfelter and David Salem, and Trial Attorney Lara M. Peirce with the Criminal Division’s Gang Unit.
Justice Department Signs Agreement with the Town of Swansea, Massachusetts, to Ensure Civic Access for People with DisabilitiesRead the Press Release
WASHINGTON - An agreement has been reached with the town of Swansea, Mass., to improve access to all aspects of civic life for persons with disabilities, the Justice Department today announced. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
“Individuals with disabilities must have the opportunity to participate in local government programs, services and activities on an equal basis with their neighbors,” said Thomas E. Perez, Assistant Attorney General of the Civil Rights Division. “I commend Swansea’s officials for their big commitment to make this small town’s programs and facilities accessible to residents and visitors with disabilities. We hope that other cities and counties throughout the country will follow Swansea’s example by working with us to make their communities fully accessible.”
PCA was initiated to ensure that persons with disabilities have an equal opportunity to participate in civic life, a fundamental part of American society. As part of the PCA initiative, Justice Department investigators, attorneys and architects survey state and local government facilities, services and programs in communities across the country to identify the modifications needed for compliance with the ADA. The agreements are tailored to address the steps each community must take to improve access. This agreement is the 187th reached under the PCA initiative.
Under the agreement announced today, Swansea will take several important steps to improve access for individuals with disabilities, such as:
- Making physical modifications to facilities surveyed by the department so that parking, routes into buildings, entrances, service areas and counters, restrooms, public telephones and drinking fountains are accessible to people with disabilities;
- Surveying other facilities and programs and making modifications wherever necessary to achieve full compliance with ADA requirements;
- Posting, publishing and distributing a notice to inform members of the public of the provisions of Title II of the ADA and their applicability to the town’s programs, services and activities;
- Training town staff in using the Massachusetts Relay Service as a key means of communicating with individuals who are deaf, are hard-of-hearing or have speech impairments;
- Undertaking the required planning and modifications to ensure equal, integrated access to emergency management for individuals with disabilities, including emergency preparedness, notification, evacuation, sheltering, response, clean up and recovery;
- Ensuring that the town’s official website and other web-based services are accessible to people with disabilities;
- Developing a method for providing information for interested persons with disabilities concerning the existence and location of the town’s accessible services, activities and programs;
- Installing signs at any inaccessible entrance to a facility directing individuals with disabilities to an accessible entrance or to information about accessing programs and services at other accessible facilities; and
- Implementing a comprehensive plan to improve the accessibility of sidewalks, transportation stops and pedestrian crossings by installing accessible curb ramps throughout the town of Swansea.
Swansea was established in 1663 as a colonial site. The historical town is located in Bristol County at the mouth of the Taunton River in southeastern Massachusetts, less than 50 miles from Boston. According to U.S. Census data, Swansea has just under 16,000 residents. Approximately 16 percent of Swansea residents have a disability and will benefit from this agreement.
Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The agreement will remain in effect for three years from Feb. 15, 2011, or until all actions required by the agreement have been completed, whichever is later. The department will actively monitor compliance with the agreement until all required actions have been completed.
People interested in finding out more about the ADA, today’s agreement with the town of Swansea, the Project Civic Access initiative or the ADA Best Practices Tool Kit for State and Local Governments can access the ADA Web page at www.ada.gov or call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TTY).
More information regarding the agreement is available at www.ada.gov/swansea_pca/swansea_facsht.html .