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1 February 2011
Pennsylvania Woman Pleads Guilty in Plot to Recruit Violent Jihadist Fighters and to Commit Murder OverseasRead the Press Release
WASHINGTON – Colleen R. LaRose, aka “Jihad Jane,” 47, pleaded guilty today to all counts of a superseding indictment charging her with conspiracy to provide material support to terrorists, conspiracy to kill in a foreign country, making false statements and attempted identity theft. LaRose faces maximum potential sentence of life in prison and a $1 million fine when she is sentenced.
The guilty plea, which was entered today before U.S. District Court Judge Petrese B. Tucker in the Eastern District of Pennsylvania, was announced today by David Kris, Assistant Attorney General for National Security; Zane David Memeger, U.S. Attorney for the Eastern District of Pennsylvania; and George C. Venizelos, Special Agent-in-Charge of the FBI’s Philadelphia Division.
LaRose, a U.S. citizen and former resident of Montgomery County, Pa., was first charged by indictment in March 2010. A superseding indictment was filed in April 2010, adding co-defendant Jamie Paulin Ramirez, a U.S. citizen and former resident of Colorado. Ramirez is awaiting trial, which is scheduled to begin May 2, 2011.
According to documents filed with the court, LaRose and her co-conspirators recruited men on the Internet to wage violent jihad in South Asia and Europe, and recruited women on the Internet who had passports and the ability to travel to and around Europe in support of violent jihad.
LaRose and her co-conspirators used the Internet to establish relationships with one another and to communicate regarding their plans, which included martyring themselves, soliciting funds for terrorists, soliciting passports and avoiding travel restrictions (through the collection of passports and through marriage) in order to wage violent jihad. LaRose also stole another individual’s U.S. passport and transferred it in an effort to facilitate an act of international terrorism.
In addition, LaRose received a direct order to kill a citizen and resident of Sweden, and to do so in a way that would frighten “the whole Kufar [non-believer] world.” LaRose agreed to carry out her murder assignment and she and her co-conspirators discussed that her appearance and American citizenship would help her blend in while carrying out her plans. LaRose later traveled to Europe and tracked the intended target online in an effort to complete her task.
“Today’s guilty plea, by a woman from suburban America who plotted with others to commit murder overseas and to provide material support to terrorists, underscores the evolving nature of the threat we face,” said Assistant Attorney General Kris. “I applaud the many agents and analysts and prosecutors who helped bring about today’s result.”
“We are working diligently to protect the public by investigating and prosecuting terrorists,” said U.S. Attorney Memeger. “Today’s plea is an illustration of the dedication – by the FBI’s Joint Terrorism Task Force, this office, and the National Security Division – to achieve that goal.”
“The guilty plea in this case today demonstrates our need to remain vigilant to the continuing and evolving threats that we face in addressing terrorism,” said FBI Special Agent in Charge Venizelos. “Our Joint Terrorism Task Forces and our partners in the law enforcement and intelligence communities need to, more than ever, stay creative in our approaches to preventing acts of terrorism.”
This case was investigated by the FBI’s Joint Terrorism Task Force in Philadelphia, the FBI Field Division in New York, the FBI Field Division in Denver, and the FBI Field Office in Washington, D.C. Authorities in Ireland and Sweden also provided assistance in this matter.
The case is being prosecuted by Assistant U.S. Attorney Jennifer Arbittier Williams, in the Eastern District of Pennsylvania, and Matthew F. Blue, Trial Attorney from the Counterterrorism Section in the Justice Department’s National Security Division. The Office of International Affairs in the Justice Department’s Criminal Division also provided assistance.
Ohio-Based Managed Care Plan Contractor CareSource & Entities to Pay $26 Million to Resolve False Claims AllegationsRead the Press Release
WASHINGTON - CareSource, CareSource Management Group Co. and CareSource USA Holding Co. have agreed to pay the United States and the state of Ohio $26 million to resolve allegations that they caused Medicaid to make payments for assessments and case managements they failed to provide to children and adults, the Justice Department announced today.
CareSource, which is headquartered in Dayton, Ohio, provides managed care benefits to Medicaid beneficiaries in Ohio, Indiana and Michigan. The settlement resolves allegations that between January 2001 and December 2006, the CareSource entities knowingly failed to provide required screening, assessment and case management for adults, and children with special health care needs. As a result, it was alleged that CareSource received millions of dollars in Medicaid funds to which it was not entitled. The CareSource entities subsequently submitted false data to the state of Ohio so that it appeared they were providing these required services to improperly retain incentives received from Ohio Medicaid and to avoid penalties.
"Cash-strapped Medicaid programs, such as Ohio’s, can ill afford conduct such as this, designed to improve this company’s bottom line at the expense of a program benefitting the poor and disabled," said Tony West, Assistant Attorney General for the Civil Division.
"This settlement will help ensure the provision of crucial services to Medicaid patients, especially children with special health care needs," said Carter M. Stewart, U.S. Attorney for the Southern District of Ohio. "The cooperation between federal and state agencies, along with assistance from the former employees who brought this issue to the government’s attention, demonstrates the determination necessary to protect the public’s precious health care resources."
This settlement resolves a whistleblower action filed under the False Claims Act by two former employees at CareSource, Laura Rupert and Robin Herzog. The whistleblowers filed a suit in the Southern District of Ohio on behalf of the United States when they became aware of CareSource’s practices and sought to rectify the harms caused to these Medicaid recipients. The False Claims Act’s qui tam, or whistleblower, provisions allow private persons with knowledge of fraud to file suit on behalf of the United States and share in any recovery. As part of this settlement, Rupert and Herzog will receive a share of the federal portion of the settlement totaling approximately $3.1 million.
This settlement 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), which was announced in May 2009 by Attorney General Eric Holder and Kathleen Sebelius, Secretary of the Department of Health and Human Services (HHS). The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid 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 approximately $5.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 have topped $6.8 billion.
This settlement was the result of a coordinated effort by the Commercial Litigation Branch of the Justice Department’s Civil Division; the U.S. Attorney’s Office for the Southern District of Ohio; the Health Care Fraud Section of the Ohio Attorney General’s Office; and HHS Office of Inspector General in investigating and resolving the allegations.
New York Broker Indicted for Alleged Role in International Stock Fraud SchemeRead the Press Release
WASHINGTON - An indictment unsealed today in Detroit charges stock broker Gregg M. Berger of New York for his role in a wide-ranging fraud scheme to illegally pump-and-dump thinly-traded Chinese and Israeli stocks, announced Assistant Attorney General Lanny A. Breuer and U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade .
The single count superseding indictment returned in the Eastern District of Michigan alleges that Berger, 47, conspired with Alan Ralsky, Francis Tribble, How Wai John Hui, Scott Bradley and others to carry out a sophisticated stock fraud scheme from January 2005 through December 2007. The indictment alleges that during the course of the scheme, Berger caused the sale of approximately 30 million shares of stock, generating approximately $30 million for his co-conspirators and more than $600,000 in commissions for himself. Ralsky, Tribble, Hui and Bradley have all been previously convicted and sentenced for their roles in the case.
“Pump and dump schemes undermine the integrity of our stock markets,” said Assistant Attorney General Breuer. “When stock brokers exploit their trusted positions to enrich themselves at the expense of innocent investors, as Mr. Berger is charged with doing here, we will pursue them vigorously.”
“Investor fraud schemes like this one prey on small investors and are motivated by greed,” said U.S. Attorney McQuade. “Financial fraud is an important priority so that we can protect victims and the integrity of our financial systems.”
The charges arose after a multi-year investigation led by agents from the FBI, with assistance from the U.S. Postal Inspection Service and the Internal Revenue Service, which revealed a sophisticated and extensive “pump and dump” operation in which the defendants sent spam e-mails to manipulate thinly-traded stocks. After the e-mail recipients bought the stock being promoted, thereby driving up the share price, Berger and his coconspirators profited by selling their existing shares at the newly inflated prices.
According to the indictment, Berger’s role was to act as the stock broker for the conspiracy. Berger allegedly established brokerage accounts for trading the stocks that were illegally promoted, arranged for shares of the stocks to be transferred into the brokerage accounts, executed stock trades at the direction of co-conspirator Tribble rather than the direction of the named account holders and transferred funds from the trading of the stocks to bank accounts controlled by the conspirators. Berger also allegedly routinely provided confidential account information, including trade amounts, prices, cash balances and wire transfer details to Tribble, Bradley and others involved in the scheme who were not entitled to such information, all without authorization from the named account holders.
The stocks artificially inflated and then sold by Berger and his co-conspirators included China World Trade Corporation, Pingchuan Pharmaceutical Inc., China Digital Media Corporation, World Wide Biotech and Pharmaceutical Co., China Mobility Solutions and m-Wise.
The indictment charges Berger with one count of conspiracy to commit securities fraud and wire fraud. It also seeks forfeiture of criminal proceeds. If convicted, Berger faces a maximum penalty of 25 years in prison, and a $250,000 fine. Berger is scheduled to be arraigned on Feb. 8, 2011, in U.S. District Court in Detroit.
An indictment is merely an allegation, and a defendant is presumed innocent unless proven guilty in a court of law.
In a related action, the U.S. Securities and Exchange Commission (SEC) today filed civil fraud charges against Berger as well as seven other individuals and three companies involved in the scheme. The SEC seeks permanent injunctions, disgorgement and civil penalties, and a penny stock bar against Berger for violations of the antifraud and registration provisions of the securities laws.
The case is being prosecuted by Assistant U.S. Attorney Terrence Berg for the Eastern District of Michigan and Senior Counsel Thomas Dukes of the Criminal Division’s Computer Crime and Intellectual Property Section.
Iranian National Charged with Illegally Exporting Specialized Metals from the United States to IranRead the Press Release
WASHINGTON – Milad Jafari, 36, a citizen and resident of Iran has been indicted for illegally exporting and attempting to export specialized metals from the United States through companies in Turkey to several entities in Iran, including some entities that have been sanctioned for involvement in ballistic missile activities.
The 11-count indictment, returned by a grand jury in the District of Columbia on July 21, 2010 and unsealed today, was announced by David Kris, Assistant Attorney General for National Security; Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; Eric L. Hirschhorn, Under Secretary of Commerce for Industry and Security; and Sean Joyce, Executive Assistant Director of the FBI's National Security Branch.
The indictment charges Jafari with one count of conspiracy to illegally export materials to Iran and to defraud the United States; five separate counts of illegal export and attempted illegal export of materials to Iran and five additional counts of smuggling materials. The indictment also seeks forfeiture of $177,867.92 in connection with these offenses. Jafari remains at large and is believed to be in Iran. He faces a maximum potential sentence of five years in prison for the conspiracy count, 20 years in prison for each count of illegal exports to Iran, and 10 years in prison for each smuggling count.
Today, the U.S. Department of the Treasury also announced the designation of Jafari, several of his family members and associates, and several corporate entities in Iran and Turkey, under Executive Order 13382, which targets for sanctions proliferators of weapons of mass destruction and their supporters - thereby isolating them from the U.S. financial and commercial systems. According to the Treasury Department, Jafari and his associates operate a procurement network that provides direct support to Iran's missile program by securing metal products, including steel and aluminum alloys, for subordinates of Iran’s Aerospace Industries Organization (AIO).
The federal indictment unsealed today alleges that Jafari and others operated Macpar Makina San. Ve Ticaret A.S. (Macpar), a Turkish and Iranian business with locations in Istanbul and Tehran. Jafari and others also operated Standart Teknik Parca San. Ve Ticaret A.S. (STEP), a Turkish business with locations in Istanbul and Tehran.
From about February 2004 through about August 2007, the indictment alleges, Jafari engaged in a conspiracy to defraud the United States and to cause the export of goods to Iran in violation of the U.S. embargo and without the required U.S. government licenses for such exports. In carrying out the conspiracy, Jafari and his conspirators allegedly solicited orders from customers in Iran and purchased goods from U.S. companies on behalf of these Iranian customers. Jafari and others allegedly wired money to the U.S. companies as payment, concealed from the U.S. companies the end-use and end-users of the goods, and caused the goods to be shipped to Turkey and later to Iran.
Attempted Export to Sanam Industrial Group
For instance, the indictment alleges that in July 2006, Sanam Industrial Group – an entity in Iran that is controlled by Iran’s AIO and has been sanctioned by the United States and United Nations for involvement in nuclear and ballistic missile activities -- issued to Jafari’s company, STEP, a request for quote for 660 pounds of a specialized steel welding wire with aerospace applications. In May 2007, Jafari allegedly caused an order to be placed for 660 pounds of this exact type of welding wire with a Nevada company. The following month, the Nevada firm received more than $38,000 from Jafari’s company, Macpar.
According to the indictment, Jafari made arrangements with a freight forwarder for the welding wire to be picked up from the Nevada company. The shipment was detained by the Department of Commerce’s Office of Export Enforcement before it left the country. In response to questions from the Nevada company about the end-use of the welding wire, Jafari told the company that the materials “will not be exported from Turkey and will not be used for any nuclear, missile or chemical/biological weapons related applications,” the indictment alleges.
In another instance, the indictment alleges that in August 2006, Heavy Metals Industries in Iran placed an order with Jafari’s company, STEP, for 3,410 pounds of precipitation hardening steel made in the United States. The following year, Jafari caused Macpar to place an order with an Ohio company for 4,410 pounds of a high-grade, temperature resistant, stainless steel known to have aerospace applications. Jafari informed the Ohio firm that the steel would not be shipped to Iran. In August 2007, the stainless steel shipment was detained by the Department of Commerce’s Office of Export Enforcement before it left the country.
Other Alleged Shipments to Iran
The indictment alleges that Jafari and his conspirators were successful in causing several shipments of other materials to be exported from the United States to Iran via Turkey. In July 2006, Jafari allegedly caused three kilograms of custom-made brazing alloy to be shipped from a California company to Turkey, and, in 2007, to be shipped to Iran. According to the indictment, the brazing alloy had been requested by SAPICO, also known as the Sahand Aluminum Parts Industrial Company, in Iran. SAPICO was later sanctioned in June 2010 by the United Nations for being a cover for the Shahid Hemmat Industrial Group, which is involved in Iran’s ballistic missile program.
In March 2007, Jafari allegedly caused a shipment of 1,366 pounds of commercial bronze bars he purchased in the United States to be trucked from Turkey to Iran, and in September 2006, he caused electronic testing equipment to be shipped from an Illinois company to Iran via Turkey. The indictment notes additional exports of U.S. fiber-optic equipment and aerosol generators allegedly arranged by Jafari in 2004 and 2005.
“The allegations in the indictment unsealed today shed light on the reach of Iran’s illegal procurement networks and the importance of keeping U.S. materials from being exploited for Iran’s weapons development,” said David Kris, Assistant Attorney General for National Security. “I applaud the many agents, analysts and prosecutors who helped bring about these charges.”
“The indictment unsealed today against Milad Jafari demonstrates that the United States will relentlessly pursue those who are seeking to illegally acquire U.S. goods and technology for use in Iran, and we will continue to use every tool at our disposal to protect the national security of the United States,” said U.S. Attorney Ronald C. Machen, Jr. “I am proud of the efforts of our agents and prosecutors who have worked to bring this case.”
“Combating illegal exports to Iran is a top priority. We are committed to choking off rogue procurement networks by every means available to us,” said Under Secretary of Commerce Eric L. Hirschhorn.
“Shutting down the illegal acquisition of material destined for use in weapons programs is among the highest priorities in the FBI,” said Sean Joyce, Executive Assistant Director of the FBI's National Security Branch. “We'll continue to pursue illegal acquisition efforts and protect our nation from the grave threat these WMD-related activities pose to our national security.”
The investigation is being conducted by special agents of the San Jose, Calif., Washington field office and Operations Division of the Commerce Department’s Office of Export Enforcement and special agents of the FBI’s Charlotte, N.C., Field Division. The case is being prosecuted by Ryan Fayhee, Trial Attorney from the Counterespionage Section of the Justice Department’s National Security Division, and George Varghese, Assistant U.S. Attorney from the U.S. Attorney’s Office for the District of Columbia.
The details contained in the indictment are mere allegations. Defendants are presumed innocent unless and until proven guilty in a court of law.
Former Senate Office Manager Convicted in $75,000 Wire Fraud SchemeRead the Press Release
WASHINGTON – Ngozi T. Pole, 40, a former office manager in the U.S. Senate, was convicted today of five counts of wire fraud and one count of theft of government property, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.
Pole, of Waldorf, Md., was charged in an indictment returned on Dec. 15, 2009, by a federal grand jury in Washington. According to evidence presented during his trial, Pole worked as the office manager for former U.S. Senator Edward M. Kennedy. Pole’s responsibilities included transmitting salary information to the Senate Disbursing Office in order to adjust the pay of employees in the senator’s office.
According to evidence presented at trial, beginning in at least 2003 and continuing until January 2007, Pole repeatedly submitted paperwork causing the Senate to pay him larger bonus payments than had been approved by either the chief of staff or Senator Kennedy. According to the evidence presented at trial, these unauthorized bonus payments totaled more than $75,000. Pole hid the existence of these unauthorized payments by repeatedly transmitting information to the chief of staff that falsely showed that he received only those payments that had been authorized.
“Today, a federal jury found Mr. Pole guilty of using his position as a Congressional staffer to steal more than $75,000 of government money,” said Assistant Attorney General Breuer of the Criminal Division. “Employees of Congress are entrusted with performing their duties honestly and ethically. While hundreds of them live up to that important duty every day, we will, as today’s verdict shows, hold accountable those few who use their positions to illegally enrich themselves.”
“The public trusts that those in government service will obey the law and protect the interests of the people. When that trust is broken, it is the FBI’s responsibility to investigate and bring those who corrupt the system to justice,” said Assistant Director McJunkin of the FBI’s Washington Field Office.
Each wire fraud charge carries a maximum prison sentence of 20 years and a $250,000 fine. The theft of government property charge carries a maximum prison sentence of 10 years and a $250,000 fine. Sentencing has been scheduled for July 14, 2011.
This case is being prosecuted by Trial Attorneys Deborah Sue Mayer and Ethan H. Levisohn of the Criminal Division’s Public Integrity Section. The case is being investigated by the FBI’s Washington Field Office. Former Senator Kennedy’s office cooperated fully with the investigation.
El Departamento de Justicia anuncia el lanzamiento de la iniciativa de coacción optimizada contra el tráfico de personasRead the Press Release
WASHINGTON - Los Departamentos de Justicia, Seguridad Nacional y del Trabajo anunciaron hoy el lanzamiento de una Iniciativa de Coacción Optimizada contra el Tráfico de Personas, de ámbito nacional, diseñada para optimizar las investigaciones penales federales y los enjuiciamientos de delitos de tráfico de personas.
Como parte de la Iniciativa de Coacción Optimizada, Equipos de Coordinación contra el Tráfico especializados, conocidos como "ACTeams" se reunirán en distritos piloto selectos de todo el país. Los ACTeams, compuestos por fiscales y agentes de múltiples dependencias de las fuerzas del orden público federales, implementarán un plan de acción estratégico para combatir amenazas identificadas de tráfico de personas. Los ACTeams se concentrarán en desarrollar investigaciones y enjuiciamientos federales de tráfico de personas para reivindicar los derechos de las víctimas del tráfico de personas, enjuiciar a los traficantes y desmantelar redes de tráfico de personas.
La estructura de los ACTeams no solo optimiza la coordinación entre fiscales federales y agentes federales en las líneas de frente de las investigaciones y los enjuiciamientos federales de tráfico de personas, sino que también optimiza la coordinación entre la labor de coacción de las líneas de frente y las unidades especializadas en el Departamento de Justicia y las sedes principales de dependencias federales. La Iniciativa de los ACTeams fue desarrollada a través de la colaboración entre dependencias entre los Departamentos de Justicia, de Seguridad Nacional y de Trabajo para optimizar y rápidamente ampliar la labor de coacción contra el tráfico de personas.
"Esta esclavitud moderna es una afrenta a la dignidad humana, y cada caso que enjuiciemos debe transmitir una poderosa señal de que no se tolerará el tráfico de personas en los Estados Unidos", dijo el Secretario de Justicia de los Estados Unidos Eric Holder. "La Iniciativa de Coacción Optimizada contra el Tráfico de Personas mejora nuestra labor de coacción contra el tráfico al optimizar la herramienta más eficaz en nuestro arsenal contra el tráfico: las asociaciones".
"Trabajando unidos, el gobierno de EE.UU. entero sigue avanzando en lo que se refiere a condenar a los traficantes, desmantelar sus redes criminales y proteger a sus víctimas", dijo la Secretaria de Seguridad Nacional Janet Napolitano. "Combatir el tráfico de personas es una responsabilidad compartida, y la Iniciativa de los ACTeams es un paso crítico en el aprovechamiento de todos nuestros recursos federales, estatales y locales para desarticular a estos delincuentes. ”
"Este piloto es una herramienta necesaria en la desarticulación del tráfico de personas por el gobierno federal", agregó la Secretaria de Trabajo Hilda L. Solis. "Las víctimas de estos actos despreciativos han sido dejadas en tierra desconocida, sin familia, sin sistemas de apoyo y sin maneras de hacerse de una nueva vida. Debemos hacer todo lo posible para asegurar que las víctimas del tráfico reciban plena restitución, incluidos los sueldos denegados. ”
El 29 de octubre de 2010, en un evento de conmemoración del 10º aniversario de la Ley de Protección de Víctimas del Tráfico, el Departamento de Justicia anunció que la Iniciativa de ACTeams Interagencias se implementaría en conjunto con directivas dentro del Departamento de Justicia para mejorar la coordinación entre la Oficina Ejecutiva de Fiscales Federales, las Fiscalías Federales y los expertos en el asunto del departamento en la Unidad de Enjuiciamiento de Tráfico de Personas de la División de lo Civil y la Sección de Explotación y Obscenidad Infantiles de la División de lo Penal.
La iniciativa de los ACTeams se origina después del lanzamiento el 22 de julio de 2010 de la Campaña Azul del Departamento de Seguridad Nacional, la que incluye una nueva capacitación en Internet para agentes de las fuerzas del orden público, recursos optimizados para víctimas del tráfico y campañas ampliadas de concienciación pública. La Iniciativa ACTeams también viene después de el anuncio por parte del Departamento del Trabajo del 15 de marzo de 2010 de que, en coordinación con otras dependencias federales, comenzaría a certificar visas U de no inmigrante para víctimas del tráfico de personas y otras víctimas de delitos específicos identificadas en el transcurso de investigaciones de trabajo y acciones de coacción.
Se anunciarán las ubicaciones de los ACTeams piloto al completarse un proceso de selección interagencias competitivo.
Department of Justice Announces Launch of Human Trafficking Enhanced Enforcement InitiativeRead the Press Release
WASHINGTON – The Departments of Justice, Homeland Security and Labor announced today the launch of a nationwide Human Trafficking Enhanced Enforcement Initiative designed to streamline federal criminal investigations and prosecutions of human trafficking offenses.
As part of the Enhanced Enforcement Initiative, specialized Anti-Trafficking Coordination Teams, known as ACTeams, will be convened in select pilot districts around the country. The ACTeams, comprised of prosecutors and agents from multiple federal enforcement agencies, will implement a strategic action plan to combat identified human trafficking threats. The ACTeams will focus on developing federal criminal human trafficking investigations and prosecutions to vindicate the rights of human trafficking victims, bring traffickers to justice and dismantle human trafficking networks.
The ACTeam structure not only enhances coordination among federal prosecutors and federal agents on the front lines of federal human trafficking investigations and prosecutions, but also enhances coordination between front-line enforcement efforts and the specialized units at the Department of Justice and federal agency headquarters. The ACTeam Initiative was developed through interagency collaboration among the Departments of Justice, Homeland Security and Labor to streamline rapidly expanding human trafficking enforcement efforts.
“This modern-day slavery is an affront to human dignity, and each and every case we prosecute should send a powerful signal that human trafficking will not be tolerated in the United States,” said Attorney General Eric Holder. “The Human Trafficking Enhanced Enforcement Initiative takes our anti-trafficking enforcement efforts to the next level by building on the most effective tool in our anti-trafficking arsenal: partnerships.”
“Working together, the entire U.S. government continues to make progress in convicting traffickers, dismantling their criminal networks and protecting their victims,” said Secretary of Homeland Security Janet Napolitano. “Combating human trafficking is a shared responsibility, and the ACTeam Initiative is a critical step in successfully leveraging all our federal, state and local resources to crack down on these criminals.”
“This pilot is a necessary tool in the federal government’s crackdown on human trafficking,” added Secretary of Labor Hilda L. Solis. “Victims of these contemptuous acts have been left in an unfamiliar land with no family, no support systems, and no way to make a life for themselves. We must do whatever we can to ensure that victims of trafficking receive full restitution, including denied wages.”
On Oct. 29, 2010, at an event commemorating the 10th anniversary of the Trafficking Victims Protection Act, the Department of Justice announced that the Interagency ACTeam Initiative would be implemented in conjunction with directives within the Department of Justice to enhance coordination among the Executive Office of U.S. Attorneys, U.S. Attorney’s Offices and the department’s subject matter experts in the Civil Rights Division’s Human Trafficking Prosecution Unit and the Criminal Division’s Child Exploitation and Obscenity Section.
The ACTeam initiative follows the July 22, 2010, launch of the Department of Homeland Security’s Blue Campaign, which includes new web-based training for law enforcement officers, enhanced resources for trafficking victims and expanded public awareness campaigns. The ACTeam Initiative also follows the Department of Labor’s March 15, 2010, announcement that it would, in coordination with other federal agencies, begin certifying U non-immigrant visas for human trafficking victims and other qualifying crime victims who are identified during the course of labor investigations and enforcement actions.
The locations of the pilot ACTeams will be announced upon completion of a competitive interagency selection process.
Contratista de planes de atención médica administrada CareSource y entidades con sede en Ohio pagarán 26 millones de dólares en resolución de alegatos de reclamos falsosRead the Press Release
WASHINGTON - CareSource, CareSource Management Group Co. y CareSource USA Holding Co. han acordado pagar a los Estados Unidos y al estado de Ohio 26 millones de dólares en resolución de alegatos de que causaron que Medicaid pagara por evaluaciones y administración de casos que dejaron de proveer a niños y adultos, anunció hoy el Departamento de Justicia.
CareSource, con sede en Dayton, Ohio, provee beneficios de atención médica administrada a beneficiarios de Medicaid en Ohio, Indiana y Michigan. El acuerdo conciliatorio resuelve alegatos de que entre enero de 2001 y diciembre de 2006, las entidades CareSource, a sabiendas, dejaron de proveer estudios de detección, evaluaciones y administración de casos para adultos y niños con necesidades médicas especiales. Como resultado, se alega que CareSource recibió millones de dólares en fondos de Medicaid a los que no tenía derecho. Posteriormente, las entidades CareSource presentaron datos falsos al estado de Ohio para que pareciera que estaban prestando estos servicios requeridos para recibir incentivos indebidamente de Medicaid de Ohio y evitar multas.
"Los programas de Medicaid, carentes de recursos, tales como los de Ohio, mal pueden hacer frente a conductas como esta, diseñadas para mejorar los resultados de la empresa a expensas de un programa que beneficia a los pobres y a los discapacitados", dijo Tony West, Secretario de Justicia Auxiliar de la División de lo Civil.
"Este acuerdo conciliatorio ayudará a garantizar la provisión de servicios cruciales a pacientes de Medicaid, especialmente niños con necesidades médicas especiales", dijo Carter M. Stewart, Fiscal Federal para el Distrito Sur de Ohio. "La cooperación entre dependencias federales y estatales, junto con la asistencia prestada por los ex empleados que llevaron este tema a la atención del gobierno, demuestra la determinación necesaria para proteger a los recursos de atención médica valiosos del público. "
Este acuerdo conciliatorio resuelve una acción de denuncia presentada bajo la ley de Reclamos Falsos por dos ex empleados de CareSource, Laura Rupert y Robin Herzog. Los denunciantes entablaron una demanda en el Distrito Sur de Ohio en nombre de los Estados Unidos cuando se enteraron de las prácticas de CareSource y buscaron rectificar el daño causado a estos beneficiarios de Medicaid. Las disposiciones qui tam, o de denunciante, de la Ley de Reclamos Falsos permiten que personas privadas con conocimiento de algún fraude entablen una demanda en nombre de los Estados Unidos y reciban parte de la suma recuperada. Como parte de este acuerdo conciliatorio, Rupert y Herzog recibirán una parte de la suma del acuerdo conciliatorio que le corresponde al gobierno federal, por un total de aproximadamente 3.1 millones de dólares.
Este acuerdo conciliatorio es parte del énfasis puesto por el gobierno en combatir el fraude de atención médica y otro paso para el Equipo de Acción de Coacción y Prevención del Fraude de Atención Médica [Health Care Fraud Prevention and Enforcement Action Team (HEAT)], anunciado en mayo de 2009 por el Secretario de Justicia de los Estados Unidos Eric Holder y Kathleen Sebelius, Secretaria del Departamento de Salud y Servicios Humanos [Department of Health and Human Services (HHS)]. La asociación entre los dos departamentos ha concentrados sus esfuerzos en reducir y prevenir el fraude contra Medicare y Medicaid a través de la cooperación optimizada. Una de las herramientas más poderosas en dicha iniciativa es la Ley de Reclamos Falsos, utilizada por el Departamento de Justicia para recuperar aproximadamente 5.3 mil millones de dólares desde enero de 2009 en casos asociados al fraude contra los programas de salud federales. Las recuperaciones totales del Departamento de Justicia en casos asociados a la Ley de Reclamos Falsos desde enero de 2009 han superado los 6.8 mil millones de dólares.
Este acuerdo conciliatorio fue el resultado de una labor coordinada llevada a cabo por la División de Litigios Comerciales de la División de lo Civil del Departamento de Justicia; la Fiscalía Federal para el Distrito Sur de Ohio; la Sección de Fraude de Atención Médica de la Oficina del Secretario de Justicia de Ohio; y la Oficina del Inspector General del HHS en la investigación y resolución de los alegatos.
31 January 2011
Third Man Pleads Guilty to Federal Hate Crime Charge Related to Desecration of Synagogue and Churches in Modesto, CaliforniaRead the Press Release
WASHINGTON – Andrew Kerber, 22, of Chico, Calif., pleaded guilty today before U.S. District Judge Lawrence J. O’Neill in Fresno, Calif., to violating the civil rights of congregants of Congregation Beth Shalom, a synagogue in Modesto, Calif.
According to court documents, on or about Feb. 2, 2006, Kerber and two other men, Abel Mark Gonzalez, 23, of Morgan Hill, Calif., and Brian Lewis, 23, of Modesto, Calif., defaced and damaged the synagogue. Kerber admitted that the men spray-painted anti-Semitic and neo-Nazi graffiti on the synagogue’s exterior walls. Kerber further admitted that the men spray-painted anti-Christian graffiti on the exterior walls of, and caused other damage to, Our Lady of Fatima Church and School and the Greek Orthodox Church of the Annunciation, both located in Modesto. Lewis and Gonzalez pleaded guilty for their role in the offense on Jan. 14, 2011.
Kerber faces a maximum sentence of one year in prison and a fine of $100,000. A sentencing hearing has been set for Friday, April 8, 2011.
"The Constitution protects the right of all individuals to worship in peace, and strong enforcement of our nation’s civil rights laws safeguards that right," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The department will continue to aggressively prosecute those who seek to violate the rights of their fellow Americans to worship freely."
U.S. Attorney for the Eastern District of California Benjamin B. Wagner said, "This country was founded by people who sought to practice their religion without being harassed, threatened, or intimidated. It is our obligation to ensure that all Americans can be secure in the exercise of their First Amendment rights."
This case was investigated by the Modesto Resident Agency of the FBI’s Sacramento Field Office with assistance from the Modesto Police Department, and is being prosecuted by Assistant U.S. Attorney David Gappa of the U.S. Attorney’s Office for the Eastern District of California and Civil Rights Division Trial Attorney Karen Ruckert Lopez.
Oracle America to Pay United States $46 Million to Resolve False Claims Act Allegations Against Sun MicrosystemsRead the Press Release
WASHINGTON - Oracle America Inc. has agreed to pay the United States $46 million to settle claims that Sun Microsystems Inc., a corporation that merged with Oracle in 2010, submitted false claims and caused others to submit false claims to the General Services Administration (GSA) and other federal agencies, the Justice Department announced today.
This settlement resolves allegations under the False Claims Act (FCA) and Anti-Kickback Act that Sun knowingly paid kickbacks to systems integrator companies in return for recommendations that federal agencies purchase Sun’s products. Sun executed agreements with consulting companies that provided for the payment of fees each time the companies influenced a government agency to purchase a Sun product. These kickback allegations are part of a larger, ongoing investigation of government technology vendors that has resulted in settlements to date with six other companies.
The settlement also resolves claims under the FCA that Sun’s 1997 and 1999 GSA Schedule contracts were defectively priced because Sun provided incomplete and inaccurate information to GSA contracting officers during contract negotiations, as well as claims that the incomplete and inaccurate information resulted in defective pricing of Sun’s contract with the U.S. Postal Service and GSA Schedule contracts held by two resellers of Sun products. At the time Sun entered into its contracts with GSA to sell information technology products and services to federal agencies, applicable regulations and contract provisions required Sun to fully and accurately disclose to GSA how it conducted business in the commercial marketplace so that GSA could use that information to negotiate a fair price for government customers using the GSA contracts to purchase Sun products and services. The defective pricing information that Sun disclosed to GSA was subsequently relied on by the Postal Service in negotiating a contract with Sun, as well as by GSA in negotiating contracts with two resellers of Sun products.
“Kickbacks, illegal inducements, misrepresentations during contract negotiations – these undermine the integrity of the government procurement process and unnecessarily cost taxpayers money,” said Tony West, Assistant Attorney General for the Civil Division of the Department of Justice. “As this case demonstrates, we will take action against those who abuse the public contracting process.”
“In this district, we are committed to aggressively pursuing any actions in which the government has been defrauded,” said Christopher R. Thyer, U.S. Attorney for the Eastern District of Arkansas. “Ultimately, it is the taxpayers’ money at issue and our office works to protect the citizens of the United States.”
The allegations that Sun improperly paid kickbacks were first made in a lawsuit that whistleblowers Norman Rille and Neal Roberts filed in the U.S. District Court for the Eastern District of Arkansas in 2004. Under the FCA’s qui tam provisions, private citizens may file actions on behalf of the United States alleging the submission of false claims and share in any recovery. The United States intervened in the kickback allegations alleged in the complaint, and also added new claims that Sun defectively priced its GSA schedule contracts. The government’s defective pricing allegations were based on an audit conducted by the GSA Office of Inspector General, which concluded that Sun provided inaccurate information during contract negotiations.
“Our auditors did not waver. They pursued the facts until they got to the truth,” said GSA Inspector General Brian D. Miller. “This case shows that with a lot of hard work and tenacity, justice will prevail.”
“The U.S. Postal Service Office of Inspector General is firmly committed to pursuing possible fraud in Postal Service contracting. This settlement is a testament to that commitment,” said Brian E. Cropper, Assistant Special Agent in Charge, Major Fraud Investigations Division of the U.S. Postal Service Office of Inspector General.
“The Treasury Department’s Inspector General for Tax Administration is dedicated to ensuring that contractors working for the Internal Revenue Service are thoroughly scrutinized, and any scheme that denies the American people the absolute best value for its tax dollars will not be tolerated,” said J. Russell George, the Treasury Inspector General for Tax Administration.
“The American taxpayer expects the Department of Defense and the Department of Defense (DoD) Office of the Inspector General to be champions of fiscal accountability and acquisition integrity. Those who participate in corrupt procurement practices erode that public confidence and deny full support to America's armed forces. The Defense Criminal Investigative Service will continue to investigate violations of law and support the Justice Department in its efforts to uncover fraud in the federal procurement process,” said Edward T. Bradley, Special Agent in Charge, Northeast Field Office of DoD’s Defense Criminal Investigative Service.
The Assistant Attorney General acknowledges the contributions of the Civil Division of the Justice Department; the U.S. Attorney’s Office for the Eastern District of Arkansas; GSA’s Office of Inspector General; the U.S. Postal Service’s Office of Inspector General; the Treasury Department’s Inspector General for Tax Administration; DoD’s Office of Inspector, Defense Criminal Investigative Service; and the Department of Energy Office of Inspector General.
Maxwell Technologies Inc. Resolves Foreign Corrupt Practices Act Investigation and Agrees to Pay $8 Million Criminal PenaltyRead the Press Release
WASHINGTON – Maxwell Technologies Inc., a publicly-traded manufacturer of energy-storage and power-delivery products based in San Diego, has agreed to pay an $8 million criminal penalty to resolve charges related to the Foreign Corrupt Practices Act (FCPA) for bribing Chinese government officials to secure sales of Maxwell’s products to state-owned manufacturers of electric-utility infrastructure in several Chinese provinces. The resolution was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Laura Duffy for the Southern District of California.
The department filed a deferred prosecution agreement and a criminal information against Maxwell in U.S. District Court for the Southern District of California today. The two-count information charges Maxwell with one count of violating the FCPA’s anti-bribery provisions and one count of violating the FCPA’s books-and-records provisions.
According to court documents, Maxwell’s wholly-owned Swiss subsidiary, Maxwell S.A., engaged a Chinese agent to sell Maxwell’s products in China. From at least July 2002 through May 2009, Maxwell S.A. paid more than $2.5 million to its Chinese agent to secure contracts with Chinese customers, including contracts for the sale of Maxwell’s high-voltage capacitor products to state-owned manufacturers of electrical-utility infrastructure. The agent in turn used Maxwell S.A.’s money to bribe officials at the state-owned entities in connection with the sales contracts. Maxwell S.A. paid its Chinese agent approximately $165,000 in 2002 and increased the payments to the agent to $1.1 million in 2008. In its books and records, Maxwell mischaracterized the bribes as sales-commission expenses. According to court documents, Maxwell’s U.S. management discovered the bribery scheme in late 2002.
Under the terms of the agreement, the department agreed to defer prosecution of Maxwell for three years. Maxwell agreed, among other things, to implement an enhanced compliance program and internal controls capable of preventing and detecting FCPA violations, to report periodically to the department concerning Maxwell’s compliance efforts, and to cooperate with the department in ongoing investigations. If Maxwell abides by the terms of the deferred prosecution agreement, the department will dismiss the criminal information when the term of the agreement expires. The agreement also acknowledges Maxwell’s voluntary disclosure of the FCPA violations to the Department of Justice and U.S. Securities and Exchange Commission (SEC).
Maxwell also reached a settlement of a related civil complaint filed by the SEC charging Maxwell with violating the FCPA’s anti-bribery, books and records, internal controls and disclosure provisions. As part of that settlement, Maxwell agreed to pay $5.654 million in disgorgement of profits and nearly $700,000 in prejudgment interest relating to those violations.
The criminal case is being prosecuted by Trial Attorney Stephen J. Spiegelhalter of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Eric Beste of the Southern District of California. The investigation in this case, which is ongoing, is being assisted by the FBI’s San Diego Field Office. The department expresses its gratitude to the SEC for its significant assistance in this matter.
Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Justice Department Sues Cincinnati Landlord for Sexual HarassmentRead the Press Release
WASHINGTON – The Justice Department today filed a lawsuit against Cincinnati landlord Henry E. Bailey alleging that Bailey sexually harassed female tenants at residential properties he has owned and managed in the Cincinnati metropolitan area.
The complaint, filed in the U.S. District Court for the Southern District of Ohio, alleges that Bailey violated the Fair Housing Act by subjecting female tenants and prospective tenants to unwanted verbal sexual advances and unwanted sexual touching; entering the apartments of female tenants without permission and notice; granting and denying tangible housing benefits based on sex; and taking adverse actions against female tenants when they refused his sexual advances.
"Every individual has the right under federal law to rent housing without being subjected to sexual harassment," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "Landlords who abuse their power and authority in this way should be on notice that the Justice Department steadfastly enforces the Fair Housing Act throughout the United States."
"A person’s home should provide a place of comfort and safety," said U.S. Attorney for the Southern District of Ohio Carter M. Stewart. "We must safeguard those values by investigating and prosecuting any person or group that seeks to interfere with them."
The suit seeks monetary damages for victims of the alleged harassment, civil penalties and a court order barring future discrimination and requiring additional preventive measures.
Fighting illegal housing discrimination is a top priority of the Justice Department. The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.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, e-mail the Justice Department at [email protected] or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777.
The complaint is an allegation of unlawful conduct. The allegations must be proved in federal court.
Justice Department Reaches Americans with Disabilities Act Settlement with H&R BlockRead the Press Release
WASHINGTON - The Justice Department today announced a comprehensive settlement agreement under the Americans with Disabilities Act (ADA) with HRB Tax Group Inc., H&R Block Tax Services LLC and HRB Advance LLC (H&R Block) to ensure effective communication with individuals who are deaf or hard of hearing in the provision of income tax preparation services and courses at more than 11,000 owned and franchised offices nationwide.
The settlement agreement, which resolves an ADA complaint filed by an individual who is deaf, requires, among other things, that H&R Block furnish appropriate auxiliary aids and services, including sign language interpreter services, when necessary to afford a person who is deaf or hard of hearing equal access to the goods, services and accommodations made available to others.
"By signing this agreement, H&R Block has affirmed its commitment to providing effective communication with people who are deaf and hard of hearing not only at their tax preparation offices in San Antonio, where the complaint originated, but at their locations across the country," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "The agreement will ensure that individuals who are deaf or hard of hearing have equal access to tax preparation services at more than 11,000 offices nationwide."
The agreement requires that H&R Block:
- Provide auxiliary aids and services, including qualified sign language interpreters, to persons who are deaf or hard of hearing when necessary to ensure effective communication of its tax preparation services, programs and courses;
- Adopt and enforce a policy on effective communication with individuals who are deaf or hard of hearing for all H&R Block offices nationwide, post the policy on its websites and in its employee manuals, and distribute the policy to current and new employees and contractors;
- Establish and maintain a list of sign language interpreter providers;
- Post and maintain in a conspicuous location in all reception areas of H&R Block offices a notice stating that individuals who are deaf or hard of hearing have a right under the ADA to request a sign language or oral interpreter or other form of auxiliary aid or service if needed;
- Provide staff training on the ADA and H&R Block’s obligations to provide effective communication to individuals with disabilities;
- Monitor franchisees' compliance with this requirement consistent with monitoring of compliance with the franchise agreements and other requirements of federal, state or local laws; and
- Pay $5,000 damages to the individual who filed an ADA complaint and a $20,000 civil penalty.
The ADA prohibits discrimination against customers with disabilities by businesses that serve the public. Among other things, the ADA requires tax preparation services, accountants, lawyers, doctors and other businesses to provide equal access to customers who are deaf or hard of hearing. When services such as tax preparation involve important, lengthy or complex oral communications with customers, businesses are generally required to provide qualified sign language interpreters and other auxiliary aids, free of charge, to individuals who are deaf, are hard of hearing or have speech disabilities. Other auxiliary aids may include the use of relay services for telephone communication, exchanging notes for brief and uncomplicated communications, providing assistive listening systems and receivers in classes for attendees who are hard of hearing, and providing captioned videos. The appropriate auxiliary aid to be provided depends on a variety of factors including the nature, length and importance of the communication; the communication skills and knowledge of the individual who is deaf or hard of hearing; and the individual’s stated need for a particular type of auxiliary aid.
Auxiliary aids must also be provided for individuals who are blind or have low vision, such as materials in Braille, large print or accessible electronic formats such as email or HTML, qualified readers and assistance in filling out forms.
Those interested in finding out more about this agreement or businesses’ effective communication obligations under the ADA may call the Justice Department’s toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may be filed by email to [email protected].
Food Processor to Pay $390,000 Penalty for Illegal Wastewater Discharges into Kansas-Oklahoma RiverRead the Press Release
WASHINGTON – An Illinois food processing company has agreed to pay a $390,000 civil penalty to the United States to settle allegations that its Baxter Springs, Kan., processing facility overloaded the city’s wastewater treatment system with millions of gallons of industrial wastewater, at times causing pollution along a 22-mile-long section of the Spring River in southeast Kansas and northeast Oklahoma.
Orval Kent Food Company Inc., headquartered in Wheeling, Ill., must also spend at least $32,500 on a project to re-stock fish in or near the watershed of the Spring River, under terms of a consent decree lodged today in Kansas City, Kan., by the U.S. Department of Justice. The project was designed in consultation with the Eastern Shawnee Tribe of Oklahoma.
“This settlement is meaningful not only because it helps to ensure compliance with the Clean Water Act but also because it addresses the impact that these violations have had on communities along the Spring River, including the Eastern Shawnee Tribe of Oklahoma,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “The environmental project to restock fish will help sustain the aquatic life of the river for the enjoyment and use of all.”
“EPA brought this case because Orval Kent’s decisions to overload the local discharge system hurt people all along this important river, which also plays a key part in Shawnee tribal culture,” Environmental Protection Agency (EPA) Regional Administrator Karl Brooks said. “The agency negotiated a settlement that targets relief to repair damages Orval Kent caused to the Spring River watershed. It demonstrates that companies can’t ignore their obligations to comply with the law.”
The company, which produces a variety of refrigerated salads and foods, was issued an administrative compliance order by EPA Region 7 in February 2008 after an inspection of the Baxter Springs publicly owned wastewater treatment works found that Orval Kent’s local processing facility was routinely overloading the city’s treatment system. As a result of the overloading, the city was unable to comply with the terms of its National Pollutant Discharge Elimination System (NPDES) permit.
After EPA issued the order to Orval Kent in 2008, the company installed new wastewater treatment equipment and changed its manufacturing processes to reduce waste material contained in the facility’s industrial wastewater.
Discharges from the Baxter Springs treatment system flow into the Spring River, which flows south from the city for about a mile before crossing the state line into northeast Oklahoma, where it continues to flow several miles through tribal lands of the Shawnee Tribe of Eastern Oklahoma.
Residents of Baxter Springs, tribal members and other communities downstream use the Spring River for fishing and recreation. The state of Kansas has designated the river as “exceptional” and containing “special aquatic life,” partly because of its populations of threatened or endangered species. In Oklahoma, the Spring River is designated an “impaired water” because of turbidity and bacteria.
As part of the settlement, Orval Kent must conduct monitoring and reporting of its wastewater discharges to detect trends and help avoid future violations of the Clean Water Act.
The consent decree is subject to a 30-day public comment period and court approval before it becomes final.
California Man Sentenced to 17 Years in Prison for Engaging in a Child Exploitation EnterpriseRead the Press Release
WASHINGTON – Stephen Sims, of Palm Springs, Calif., was sentenced today by Senior U.S. District Court Judge Gustave Diamond in the Western District of Pennsylvania to 17 years in prison 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.
Sims, 57, pleaded guilty to one count of engaging in a child exploitation enterprise before U.S. District Court Judge Arthur A. Schwab on July 13, 2010. According to court documents and proceedings, Sims and others distributed images and videos of children being sexually abused to other members of an international group that had restricted membership and was formed on a social networking website. Members of the group distributed to one another thousands of sexually explicit images and videos of children, many of which graphically depicted prepubescent, male children, including some infants, being sexually abused and sometimes sodomized or subjected to bondage.
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.
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 and CEOS Trial Attorney Andrew McCormack prosecuted the case.
28 January 2011
Lucas County, Ohio, Sheriff’s Sergeant Sentenced<br /> for Civil Rights Violations and Falsifying Written ReportsRead the Press Release
WASHINGTON – The Justice Department announced today that former Lucas County Sheriff’s Sergeant John E. Gray was sentenced today by Judge David A. Katz to three years in prison, followed by two years supervised release, for federal civil rights violations and records falsification relating to the in-custody death of a pretrial detainee at the Lucas County Jail.
Additionally, former Lucas County Deputy Jay M. Schmeltz was sentenced to one year and one day in prison followed by two years of supervised release and a $6,000 fine for writing a false report about the incident.
Gray and Schmeltz were found guilty by a jury on Dec. 3, 2010, after a month-long trial in Toledo, Ohio. Lucas County Sheriff James A. Telb and Internal Affairs Investigator Robert E. McBroom were acquitted on charges relating to an alleged subsequent cover-up of the role that jail personnel played in the 2004 death of Carlton Benton. Evidence at trial showed that on May 30, 2004, Gray assaulted Mr. Benton in a cell at the Lucas County Jail and left Benton lying unconscious without seeking medical help for him. Thereafter, according to trial evidence, Gray and Schmeltz wrote false reports concealing the incidents.
“Law enforcement officers are granted a great deal of power so that they can protect and serve their communities, and those who abuse their power will face consequences,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The department will aggressively prosecute all cases of police misconduct.”
“This sentence sends a strong message that we will protect the integrity of our criminal justice system and the rights of all,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio.
This case was investigated by the FBI’s Cleveland Division. The case was prosecuted by Deputy Chief Kristy L. Parker of the Civil Rights Division’s Criminal Section, Assistant U.S. Attorney Roger S. Bamberger of the U.S. Attorney’s Office for the Northern District of Ohio and trial attorney Ryan R. McKinstry of the Civil Rights Division’s Criminal Section.
Justice Department Signs Agreement with Fairfax County, Virginia, to Ensure Civic Access for People with DisabilitiesRead the Press Release
WASHINGTON - The Justice Department today announced an agreement with Fairfax County, Va., to improve access to all aspects of civic life for persons with disabilities. The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).
“Access to public programs and facilities is a civil right, and 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. “Fairfax County has made significant progress towards achieving full ADA compliance, and this agreement sets out a realistic plan for the county to get there. I commend the county officials for making this commitment to its residents and visitors with disabilities, and for working with us to attain equal access to all of its programs, activities and services.”
As part of the PCA initiative, Justice Department investigators, attorneys and architects survey state and local government facilities, services and programs in communities across the country to identify the modifications needed for compliance with ADA requirements. The agreements are tailored to address the steps each community must take to improve access. This agreement is the 186th under the PCA initiative.
Under the agreement announced today, Fairfax County will take important steps to improve access for individuals with disabilities, such as:
- Making physical modifications to facilities surveyed by the department so that parking, routes into the buildings, entrances, service areas and counters, restrooms, public telephones and drinking fountains are accessible to people with disabilities;
- Providing access to county programs;
- Surveying other facilities and programs and making modifications wherever necessary to achieve full compliance with ADA requirements;
- Administering a grievance procedure for resolving complaints of violations of Title II of the ADA;
- Ensuring that any county programs for victims of domestic violence and abuse are accessible to people with disabilities;
- Providing accessible polling places;
- Providing effective communication;
- Posting, publishing and distributing a notice to inform members of the public of the provisions of Title II and their applicability to the county’s programs, services and activities;
- 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 9-1-1 emergency service calls placed by persons with disabilities who use text telephones (TTYs) are answered as quickly as other calls, that such calls are monitored for timing and accuracy, and that employees are trained and practiced in using a TTY to make and receive calls;
- Ensuring that the county’s employment policies comply with the regulations of the U.S. Equal Employment Opportunity Commission implementing Title I of the ADA;
- Ensuring that the county’s official website and other web-based services are accessible to people with disabilities;
- Amending the county’s police policies and procedures for law enforcement; and
- Implementing a comprehensive plan to improve the accessibility of the county’s sidewalks and pedestrian crossings by installing accessible curb ramps throughout Fairfax County.
Fairfax County was formed in 1742. The county consists of 395 square miles of land and 12 square miles of water. It is the most populous county in Virginia, with more than 1 million residents, comprising more than 13 percent of the total population of the state. According to U.S. Census data, more than 100,000 Fairfax County residents have a disability.
Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The department will actively monitor the county’s compliance with the agreement, which will remain in effect for 7½ years. 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 Fairfax County, the PCA initiative, or the ADA Best Practices Tool Kit for State and Local Governments can access the ADA Web page at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Convenes First Meeting of New Science Advisory BoardRead the Press Release
WASHINGTON – The Department of Justice’s Office of Justice Programs’ (OJP) newly created Science Advisory Board convened its first meeting today in Washington, D.C. Created last year, the board is charged with providing OJP with guidance and recommendations for research, statistics and grant programs, ensuring the programs and activities are scientifically sound and pertinent to policymakers and practitioners.
Today’s meeting provided the board’s newly appointed members with information about OJP’s mission and goals, and how their participation will enhance the overall impact and performance of OJP’s activities in criminal and juvenile justice. In Fiscal Year 2010, OJP awarded nearly 5,000 grants totaling $2.6 billion to the criminal and juvenile justice field. This funding will be used for research and evaluation programs designed to encourage innovative approaches to prevent and control crime, to assist victims, and to increase the capacity of state, local and tribal law enforcement agencies.
“The Science Advisory Board will play a critical role in institutionalizing the protection of science at the Department of Justice,” said Laurie O. Robinson, OJP’s Assistant Attorney General. “The board’s members will provide valuable input and guidance to ensure adherence to the highest levels of scientific rigor, while serving as a bridge between research and practice in the criminal justice fields.”
In November 2010, Attorney General Eric Holder announced the 18 board’s members – experts and scholars in criminology, statistics, sociology and practitioners in the criminal and juvenile justice fields. The members are:
Chair: Alfred Blumstein, Ph.D., The H. John Heinz III College, Carnegie Mellon University. Dr. Blumstein is a previous winner of the Stockholm Prize in Criminology and serves as the J. Erik Jonsson Professor of Urban Systems and Operations Research at Carnegie Mellon Heinz College.
William J. Bratton, Chairman, Altegrity Risk International. Mr. Bratton most recently served as chief of the Los Angeles Police Department.
Andrea J. Cabral, Sheriff, Suffolk County, Mass. Sheriff Cabral was elected as the 30th Sheriff of Suffolk County and she is the first female in the commonwealth’s history to hold the position.
Frank Cullen, Ph.D., Distinguished Research Professor of Criminal Justice, University of Cincinnati. Dr. Cullen is the past editor of Justice Quarterly and Journal of Crime and Justice and was president of the Academy of Criminal Justice Sciences.
Tony Fabelo, Ph.D., Director of Research, Council of State Governments Justice Center. Dr. Fabelo was a member of the National Research Council panel of the National Academy of Sciences that issued two national reports in 2000 and 2001 on juvenile crime and juvenile justice.
James M. Lepkowski, Ph.D., Chair, Program in Survey Methodology, University of Michigan. Dr. Lepkowski is Senior Research Scientist at the Survey Research Center and Associate Professor of Bio-statistics at the University of Michigan.
Alan I. Leshner, Ph.D., Chief Executive Officer, American Association for the Advancement of Science (AAAS). Dr. Leshner has been the chief executive officer of the AAAS and Executive Publisher of the journal, Science, since December 2001.
Mark Lipsey, Ph.D., Director, Peabody Research Institute, Vanderbilt University.
Dr. Lipsey is the director of the Peabody Research Institute and his research and teaching interests include public policy, program evaluation and social intervention with an emphasis on programs for children and youth.
Colin Loftin, Ph.D., School of Criminal Justice, University at Albany, State University of New York. Dr. Loftin is co-director of the Violence Research Group, a research collaboration with colleagues at the University at Albany and the University of Maryland that conducts research on the causes and consequences of interpersonal violence.
The Honorable Theodore A. McKee, Chief Judge, U.S. Court of Appeals for the Third Circuit. Prior to his appointment to the bench, Judge McKee served as an Assistant U.S. Attorney where he prosecuted cases of public corruption, police brutality and civil rights violations.
Tracey L. Meares, J.D., Deputy Dean and Walton Hale Hamilton Professor of Law, Yale University. Professor Meares’ research and teaching interests center on criminal procedure and criminal law policy, with a particular emphasis on empirical investigation of these subjects.
Edward P. Mulvey, Ph.D., Director, Law & Psychiatry Research, University of Pittsburgh School of Medicine. Dr. Mulvey is a fellow of both the American Psychological Association and the American Psychological Society.
Joan Petersilia, Ph.D., Faculty Co-director, Stanford Criminal Justice Center
Dr. Petersilia is the author of 11 books about crime and public policy and has conducted research about parole reform, prisoner reintegration, and sentencing policy.
Joycelyn Pollock, Ph.D., Department of Criminal Justice, Texas State University. Dr. Pollock began her career in criminal justice as a probation and parole officer in the state of Washington. Her primary research areas include prisons, women in the system (as professionals, offenders and victims) and legal topics.
Richard Rosenfeld, Ph.D., Professor, Criminology and Criminal Justice, University of Missouri. Dr. Rosenfeld is the Curators Professor of Criminology and Criminal Justice at the University of Missouri-St. Louis. He recently served as the President of the American Society of Criminology. Dr. Rosenfeld is the co-author with Steven Messner of Crime and the American Dream, now in its fourth edition.
Elizabeth A. Stasny, Ph.D., Professor of Statistics and Vice Chair of Graduate Studies in Statistics and Bio-Statistics, Ohio State University . Dr. Stasny has served on the editor boards of the Journal of the American Statistical Association and Survey Methodology. She is a recognized expert in dealing with missing data and other response errors in surveys.
Robert J. Sampson, Ph.D., Professor of Social Sciences, Department of Sociology, Harvard University . Dr. Sampson is the 2011 co-recipient of the Stockholm Prize in Criminology. He and Dr. John H. Laub, Director of the National Institute of Justice, are joint winners for their work on understanding how and why criminals stop committing crime. Dr. Sampson currently is on a one-year research sabbatical from Harvard University to the Russell Sage Foundation. His research interests center on crime and violence, the life course, neighborhood effects and the sociology of the modern city.
David Weisburd, Ph.D., Professor of Law and Criminal Justice, Hebrew University and George Mason University. Dr. Weisburd is the 2010 winner of the Stockholm Prize in Criminology and one of the early proponents of place-based experimental research in criminology.
Georgia Man Sentenced to Life in Prison<br /> for Child Sex Abuse OffensesRead the Press Release
WASHINGTON - Dwain D. Williams, 37, was sentenced today by U.S. District Court Judge W. Louis Sands to life in prison for child sex abuse offenses, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.
Williams, of Pelham, Ga., was convicted on Aug. 19, 2010, by a federal jury in Valdosta, Ga., of one count of traveling in foreign commerce and engaging in illicit sexual conduct, one count of aggravated sexual abuse and one count of abusive sexual contact of a child under 12 years of age. The aggravated sexual abuse and the abusive sexual contact charges were committed while Williams was accompanying a member of the Armed Forces outside of the United States in violation of the Military Extraterritorial Jurisdiction Act (MEJA).
At trial, the female victim testified that Williams had repeatedly raped her starting from when she was nine years old until she was 13.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant U.S. Attorney Leah McEwen of the Middle District of Georgia and Trial Attorney Mi Yung Park of the Criminal Division’s CEOS. The case was investigated by the FBI and the Office of Special Investigations for Moody Air Force.
Former Uplands Park, Missouri, Police Officer Sentenced on Civil Rights ViolationsRead the Press Release
WASHINGTON - Leon Pullen, 32, of Foley, Mo., a former police officer employed by the Uplands Park Police Department in suburban St. Louis, was sentenced to 25 years in prison on civil rights violations stemming from several incidents where he sexually assaulted and stole money from women, the Justice Department announced.
According to court documents, Pullen was a police officer employed by the Uplands Park Police Department. On July 15, 2009, Officer Pullen responded to an advertisement placed on the internet. The woman posted her picture and contact information as a prostitute. Pullen contacted her via cell phone, identified himself as “Jimmy,” and, without identifying himself as a police officer, arranged to meet her at a specific location in Uplands Park. He agreed to pay $400 for sexual acts, and also asked her to bring a friend. When the woman arrived, a police vehicle pulled behind her car. Pullen, who was on duty and dressed in full uniform, including a badge and sidearm, approached her, showed her the ad she had posted on the Internet, and demanded to know how much money she had with her. Pullen made her follow him to the police station where he sexually assaulted her.
In February or March of 2009, Pullen answered another ad from a different woman and arranged to meet her at a hotel room that she had rented in St. Louis. When he arrived, he was wearing a blue jacket over a gray golf shirt that had a police badge embroidered onto the front with the words “Detective Pullen.” Once inside, he identified himself as a police officer and told her that she was under arrest. He displayed his firearm and handcuffs. After he sexually assaulted her, he took $100 in cash and her laptop computer. The victim told the FBI later that she was initially afraid to report the sexual assault when it happened because Pullen identified himself as a police officer.
Pullen sexually assaulted two more women using the same tactics in May and June 2009.
Following his arrest on Sept. 20, 2009, Pullen gave a voluntary statement to the FBI. First, he told the agents that he had never taken money from the victims, and denied to the FBI that he had ever engaged in sexual activity - consensual or otherwise - while on duty.
“Communities must be able to trust their law enforcement officers to protect public safety. When officers abuse their power and violate the rights of individuals in their communities, they will be prosecuted to the fullest extent of the law,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division.
Pullen pleaded guilty in July 2010 to one felony count of conspiracy to violate deprivation of rights under color of law, four felony counts of deprivation of rights under color of law, one felony count of conspiracy to commit interference with commerce by threats or violence, one felony count of interference with commerce by threats or violence, one felony count of tampering with a witness, and one felony count of making false statements. He appeared today for sentencing before U.S. District Judge Rodney W. Sippel.
This case was investigated by the FBI and prosecuted by Assistant U.S. Attorney Howard Marcus and Former Civil Rights Division trial attorney Eric Gibson.
Former Owner & Former In-House Counsel of Cincinnati Company Sentenced to Prison for Tax CrimesRead the Press Release
CINCINNATI – The former owner of Buddy’s Carpet, Leif D. Rozin, and Alan W. Koehler, the company’s former in-house counsel, were sentenced to prison for their roles in a tax fraud scheme for which they were convicted in 2008, the Justice Department announced today. Both men were formerly full-time Cincinnati residents. Rozin now resides in Westchester, Ohio, and Bonita Springs, Fla., and Koehler resides in Purcellville, Va. In 2008, a jury found Rozin and Koehler guilty of a conspiracy to defraud the United States. In addition, the jury found Rozin guilty of filing a false corporate income tax return and tax evasion, and found Koehler guilty of assisting in the filing of a false corporate income tax return. Buddy’s Carpet was a retail chain with more than 30 stores in Ohio, Kentucky and Indiana.
Rozin, 68, was sentenced by U.S. District Court Judge Susan J. Dlott to serve 12 months and one day in prison, a three-year period of supervised release, 2,000 hours of community service, and to pay a $30,000 fine as well as the cost of his prosecution and a special assessment. Koehler, age 50, was sentenced to serve 18 months in prison, a three-year period of supervised release, and to pay a $20,000 fine and a special assessment.
Another former owner of the company, Burton B. “Buddy” Kallick; their investment and insurance advisor, Milton Liss, of Cincinnati; and unlicensed financial and insurance salesman Bruce M. Cohen of Louisville, Ky., were indicted along with Rozin and Koehler. Kallick passed away in January 2007, and both Liss and Cohen pleaded guilty to the charged conspiracy to defraud the United States. Cohen was sentenced by Judge Dlott in 2008 to 37 months in prison for his role in the scheme. Liss, 67, was sentenced at the same time as Rozin and Koehler to serve 12 months and one day in prison, a three-year period of supervised release, 1,000 hours of community service, and to pay a $10,000 fine and a special assessment. Although Rozin had already deposited $387,687 with the Internal Revenue Service (IRS), which is the amount he was found guilty of evading on his 1998 income tax return, the court ordered Rozin, Koehler and Liss to pay to the IRS jointly an additional $387,687, which was the amount of Kallick’s unpaid 1998 income taxes.
John DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division; Carter M. Stewart, U.S. Attorney for the Southern District of Ohio; and Jose A. Gonzalez, Special Agent in Charge, IRS-Criminal Investigation, Cincinnati, announced the sentences today.
During the three-week trial, the evidence showed that Rozin and Koehler conspired with Liss, Cohen and others to defraud the United States by having Rozin, Inc., dba Buddy’s Carpet, purchase several sham “Loss of Income” insurance policies from an insurance company in the U.S. Virgin Islands. The co-conspirators used these sham insurance policies to evade approximately $775,000 in income taxes on the 1998 tax returns of Rozin and Kallick. In addition, the evidence showed that the co-conspirators intended to evade a similar amount of income taxes for the 1999 tax returns of Rozin and Kallick, but they did not file the returns because the IRS disclosed its criminal investigation.
The evidence showed that, prior to selling the business in 2000, the defendants caused the firm to spend a total of $3.6 million on eight “Loss of Income” insurance policies, the purpose of which was to provide substantial tax deductions to the company and to the owners, Rozin and Kallick. The evidence also demonstrated that these insurance policies were a sham. The evidence further showed that Rozin, Kallick, Koehler, Cohen and Liss attempted to conceal their participation in these sham arrangements by establishing offshore nominee entities in foreign countries, such as Nevis.
The former owners and operators of the source of the “Loss of Income” policies, Security Trust Insurance Company in the U.S. Virgin Islands, along with their attorney, were also prosecuted and convicted in a federal court in Grand Rapids, Mich., in 2009.
During the trial, the evidence revealed that Rozin and Koehler engaged in a series of purchases of these insurance policies and took numerous steps to conceal their scheme, including creating backdated documents. In addition, the evidence showed that Rozin, Koehler and others shared Liss’s commissions from their purchases of the policies, as well as the commissions from others’ purchases.
Acting Assistant Attorney General DiCicco, U.S. Attorney Stewart and Special Agent Gonzalez commended the investigative efforts of the IRS agents involved in this case, as well as Justice Department Tax Division attorneys Richard Rolwing and Patrick J. Murray, who prosecuted the case.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.usdoj.gov/tax.
Federal Officials Close the Investigation into the Death of Trey JoynerRead the Press Release
WASHINGTON – The Justice Department announced today that there is insufficient evidence to pursue federal criminal civil rights charges against U.S. Park Police detectives involved in the fatal shooting of Trey Joyner.
Officials from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Justice Department’s Civil Rights Division and the Washington Field Office of the FBI met today with the Joyner family and their representatives to inform them of this decision.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania conducted a comprehensive investigation into the events surrounding the June 8, 2009, shooting that resulted in Mr. Joyner’s death. The investigation reviewed all of the material and evidence generated by the Washington Field Office of the FBI, including witness statements, crime scene evidence, ballistics reports and medical reports.
U.S. Park Police detectives were attempting to question Mr. Joyner regarding a homicide investigation. Officers had credible information that Mr. Joyner was armed. Upon stopping his vehicle, Mr. Joyner began to flee, but turned back to his car to retrieve a handgun that had dropped to the ground as he exited. Civilian and police witnesses either saw or heard the gun hitting the ground and a loaded handgun with a round in the chamber was found near the location where Mr. Joyner was shot. As Mr. Joyner picked the gun up off of the ground, a detective ran to Mr. Joyner and grabbed him and a brief struggle ensued. The witness statements support that Mr. Joyner pointed the loaded gun at the detective during this struggle, and that he ignored repeated commands to drop the gun. The detective then fired his own gun, striking Mr. Joyner in his torso at close range. The detective fell back as other officers fired their weapons. Forensic examination of gunshot wounds to Mr. Joyner indicate that one of the fatal wounds came from close range fire to his torso consistent with the struggle described by officers. Contrary to some civilian witness statements that Mr. Joyner was shot in the back as he was fleeing, the autopsy revealed wounds to Mr. Joyner consistent with the officers’ version that Mr. Joyner spun around following an initial close-range shot during a struggle.
Under the applicable federal criminal civil rights laws, prosecutors must establish, beyond a reasonable doubt, that a law enforcement officer willfully deprived an individual of a constitutional right, meaning with the deliberate and specific intent to do something the law forbids. Accident, mistake, fear, negligence or bad judgment are not sufficient to establish such a criminal violation. After a careful and thorough review, federal prosecutors and FBI agents determined that the evidence was insufficient to prove beyond a reasonable doubt that the law enforcement personnel who fired at Mr. Joyner acted willfully, meaning with the deliberate and specific intent to do something the law forbids. Accordingly, the investigation into this incident has been closed without prosecution.
The U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Civil Rights Division and the Washington Field Office of the FBI devoted significant time and resources to complete a painstaking analysis of the evidence and facts developed during the investigation.
The Justice Department is committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources necessary to ensure that all allegations of serious civil rights violations are fully and completely investigated.
Attorney General Holder Speaks at First Meeting of the <br /> National Advisory Committee on Violence Against WomenRead the Press Release
WASHINGTON – Attorney General Eric Holder and Director of the Office on Violence Against Women, Susan B. Carbon today opened the first meeting of the re-chartered National Advisory Committee on Violence Against Women (NAC). The attorney general spoke with committee members, federal agency representatives and public guests about the importance of the work of the committee and their advice to improve the nation’s response to violence against women including domestic violence, dating violence, sexual assault and stalking.
"Addressing violence by implementing bold, innovative and collaborative solutions is a top priority for this administration," said Attorney General Holder. "We are committed to engaging a broad spectrum of community partners to help stem teen dating violence and safeguard our children"
The 15 member committee will provide practical and general policy advice to the Departments of Justice and Health and Human Services with a specific focus on successful interventions with children and teens who witness or are victimized by intimate partner and sexual violence. The committee will focus on the effective coordinated approach among agencies, organizations and federal, state, local and tribal governments. The link to the well-being of children to the safety and well-being of their mothers will also be explored.
Addressing the issue of children’s exposure to violence as victims or witnesses is a priority of the attorney general. He encouraged the committee to work toward the creation of a strategic, comprehensive action plan that can help more young people to understand and develop healthy relationships, to identify signs of abuse and to assist them in locating services if necessary. During today’s meeting committee members discussed priorities for their future work.
The 15 members of the NAC are:
· Dr. Jeffrey L. Edleson, Professor and Director of Research
University of Minnesota School of Social Work, St. Paul, Minn.
· Maria Jose Fletcher, Esq.,
Florida Immigrant Advocacy Center, Miami
· Neil Irvin, Executive Director
Men Can Stop Rape, Washington, D.C.
· Amber Johnson, Youth Advocate
Providence, R.I.
· Monika Johnson Hostler, Executive Director
North Carolina Coalition Against Sexual Assault, Raleigh, N.C.
· Debbie Lee, Senior Vice President
Family Violence Prevention Fund, San Francisco
· Susan Manheimer, Chief of Police
San Mateo Police Department, San Mateo, Calif.
· Betsy McAlister Groves, Director
Child Witness to Violence Project, Department of Pediatrics, Boston Medical Center, Boston
· Carol Post, Executive Director
Delaware Coalition Against Domestic Violence, Wilmington , Del.
· Francine Sherman , Esq., Clinical Professor
Boston College Law School, Newton, Mass.
· The Honorable Melvin Stoof , Associate Judge
Pascua Yaqui Tribal Court , Tucson, Ariz.
· Joe Torre , Chairman
The Joe Torre Safe at Home Foundation, New York
· Jerry Tello , Director
Sacred Circles; National Latino Fatherhood and Family Institute, Hacienda Heights, Calif.
· Gabrielle Union, Advocate
Beverly Hills, Calif.
· Dr. Sujata Warrier, Director
New York City Program of the New York Office for the Prevention of Domestic Violence, New York
More information about the NAC and its members is available at www.ovw.gov.
27 January 2011
United States Files Suit Against Guidant and Boston Scientific for Selling Defective Heart Devices That Were Implanted in Medicare PatientsRead the Press Release
WASHINGTON – The United States has filed a complaint against Boston Scientific Corp. and related Guidant entities under the False Claims Act for conduct relating to certain of its cardiac devices, the Justice Department announced today. The United States alleges that Guidant sold cardiac devices, the Ventak Prizm 2 and the Renewal 1 and 2, even though Guidant knew the devices were defective. Despite Guidant’s fixing the defect in these lines of devices, the company continued to sell their remaining stock of defective devices anyway.
The devices at issue are implantable cardioverter defibrillators, which are designed to deliver therapy to prevent sudden cardiac death. The devices are surgically implanted into patients’ chests. When they detect an irregular heartbeat, the devices send an electrical pulse to the heart to "shock" it back to normal rhythm.
The government’s complaint alleges that Guidant hid the problems with their defibrillators from patients, doctors and the Food and Drug Administration (FDA). In February 2010, Guidant pleaded guilty to misleading the FDA about the problems in the devices. A district court in Minnesota accepted the company’s plea on Jan. 12, 2011. Guidant was acquired by Boston Scientific in 2006.
"Patients with serious heart conditions who depend on these devices should not have to second-guess whether they are safe and effective," said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. "When a medical device manufacturer conceals problems with its products, as is alleged here, not only is taxpayer money wasted, but lives are put at risk."
"When companies like Guidant request and receive federal dollars for products they know to be defective, the United States is committed to aggressively seeking the recovery of those payments. That is especially true when the defective products endanger human lives. In today’s environment, it is essential that Medicare and other public health care programs be made whole to ensure their continued vitality for future generations," said John R. Marti, First Assistant U.S. Attorney for the District of Minnesota.
The United States alleges that Guidant knew as early as April 2002 that an implantable cardiac device it manufactured and sold, known as the Prizm 2, contained a potentially life-threatening defect. The government’s complaint also alleges that Guidant knew as early as November 2003 that another implantable device it manufactured and sold, the Renewal 1 and 2, contained a similar, potentially life-threatening defect. Yet, the United States alleges that, even after Guidant took corrective action to fix the defects, the company continued to sell its stock of the old, defective versions of the devices. Moreover, as information about the cause and nature of the defect grew within the top ranks of the company, the United States contends that Guidant took steps to hide the problem from patients, doctors and the FDA. According to the government’s complaint, instead of disclosing the problem, Guidant issued a misleading communication to doctors that misinformed them about the nature of the defect.
The United States alleges that Guidant did not fully disclose the problem in the devices to doctors and the FDA until May 2005, after first being contacted by a reporter. The company subsequently recalled the devices shortly after a front-page article about the defects appeared in The New York Times.
The United States joined a lawsuit filed under the qui tam or whisteblower provisions of the False Claims Act by James Allen, who allegedly received one of the defective devices. Under the act’s qui tam provisions, a private citizen, known as a "relator," can sue on behalf of the United States and share in any recovery. The case is United States ex rel. Allen v. Guidant LLC et al., No. 11-CV-22 (D. Minn.).
This action 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 $5.3 billion since January 2009 in cases involving fraud against federal health care programs. The Justice Department’s total recoveries in False Claims Act cases since January 2009 now exceeds $6.8 billion.
Two Former Shenandoah, Pennsylvania, Police Officers Convicted of Falsifying Information About Hate CrimeRead the Press Release
WASHINGTON - A federal jury in Wilkes-Barre, Pa., has convicted Matthew Nestor and William Moyer of falsifying information related to the investigation into the beating death of Luis Ramirez. Mr. Ramirez died on July 12, 2008, as a result of injuries he suffered after being attacked by Derrick Donchak and Brandon Piekarsky, two high school students from Shenandoah, Pa., who were convicted of a federal hate crime in October 2010 and await sentencing.
Nestor, the former chief of police in Shenandoah, Pa., was convicted of filing a false report regarding the incident. Evidence presented at trial established that a report to the Schuylkill County District Attorney’s Office filed by Nestor, contained materially false information intended to mislead the investigation. Nestor will face up to 20 years in prison.
William Moyer, a former lieutenant in the Shenandoah Police Department, was convicted of making false statements to FBI agents in reference to his involvement in the investigation of the Ramirez homicide. The jury found that Moyer deliberately relayed false information about what a witness told him on the scene. Moyer will face up to five years in prison.
"A community must be able to rely on its law enforcement officers to be honest and truthful," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "When they fail in this most fundamental duty, they must be held accountable. Today’s verdict does just that."
The jury acquitted former Shenandoah Police Officer Jason Hayes of all charges relating to allegations that he obstructed justice and falsified reports.
Today’s conviction resulted from the investigative work of the FBI. The case was prosecuted by Trial Attorneys Myesha Braden and Shan Patel from the Department of Justice’s Civil Rights Division, with assistance from the U.S. Attorney’s Office for the Middle District of Pennsylvania.
Illinois Firefighter Pleads Guilty to Child Exploitation ChargesRead the Press Release
WASHINGTON – A Rochester, Ill., firefighter pleaded guilty today to one count of production of child pornography, one count of possession of child pornography and one count of destruction of evidence, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and U.S. Attorney for the Central District of Illinois James A. Lewis.
Justin D. Weaver, 26, pleaded guilty before U.S. Magistrate Judge Byron G. Cudmore in U.S. District Court in Springfield, Ill. During the plea hearing, Weaver admitted to molesting a 7-year-old minor victim and producing child pornography of the molestation. Additionally, Weaver admitted to knowingly possessing images of child pornography, and destroying evidence of his child pornography offenses.
Weaver is scheduled to be sentenced on June 6, 2011. At sentencing, Weaver will face a minimum mandatory sentence of 15 years in prison and a maximum sentence of 60 years in prison, a fine of up to $750,000 and a lifetime term of supervised release. Weaver will be required to register as a sex offender in accordance with state and federal law. Weaver was arrested on May 7, 2009, and remains in custody pending sentencing.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was prosecuted by Assistant U.S. Attorney Elly Peirson of the Central District of Illinois and Trial Attorney Mi Yung Park of the Criminal Division’s CEOS. The case was investigated by the U.S. Immigration and Customs Enforcement (ICE) Office of Homeland Security Investigations (HSI), the Springfield Police Department, the Adams County Sheriff’s Department, and CEOS’s High Technology Investigative Unit.
Federal Court Permanently Bars Joliet, Illinois, Man from Preparing Federal Tax Returns for OthersRead the Press Release
WASHINGTON – A federal court in Chicago has permanently barred Sidney Dove, a tax-return preparer from Joliet, Ill., from preparing federal income tax returns for others, the Justice Department announced today. U.S. District Judge Charles Kocoras also ordered Dove, who does business under the name "Sid’s Tax," to prepare a list of every person for whom he has prepared a federal income tax return since Jan. 1, 2006, and to provide the list to the government. The court had previously entered a preliminary injunction order against Dove on April 16, 2010.
The court found that an Internal Revenue Service investigation of Dove revealed a pattern of overstated deductions for charitable contributions, employee business expenses and Schedule C business expenses. The court also found that Dove prepared a number of returns that significantly understated individuals’ tax liabilities because they contained positions that had no possibility of being sustained on the merits. For example, according to the court, Dove habitually deducted 10 percent of his customers’ income as charitable donations without ensuring that the customers had documents to support the deductions. The court concluded that a permanent injunction order against Dove was necessary because of his continuous and knowing violations of the tax laws over the last three years and his stated intention to continue preparing tax returns in the future.
The court’s order also requires Dove to mail a copy of the court’s order to all customers for whom he has prepared federal income tax returns.
In the past decade, the Justice Department’s Tax Division has obtained hundreds of injunctions to stop the promotion of tax-fraud schemes and the preparation of false tax returns. Details of these cases are available on the Justice Department website.
26 January 2011
Patient Recruiter Sentenced to 40 Months in Prison for<br /> His Role in a Fraudulent Diagnostic Testing SchemeRead the Press Release
WASHINGTON – A Detroit-area patient recruiter was sentenced today to 40 months in prison for his role in a conspiracy to defraud the Medicare program, the Departments of Justice and Health and Human Services (HHS) announced today.
Melvin Young, 57, was also sentenced by U.S. District Judge Patrick J. Duggan in the Eastern District of Michigan to three years of supervised release following his prison term and was ordered to pay restitution, joint and several with co-defendants, in the amount of $533,643. Young pleaded guilty in April 2010 to one count of conspiracy to commit health care fraud.
According to the plea documents, beginning in approximately September 2007, Young and a co-conspirator began recruiting and transporting patients to a clinic called Ritecare LLC. Ritecare was owned and operated by co-conspirators and had locations in Detroit and Livonia, Mich. Young admitted that he and this co-conspirator, Emma King, paid kickbacks to Medicare beneficiaries whom they recruited and transported to Ritecare. According to the plea documents, the owners and operators of Ritecare were the source of the funds used by Young to pay the Medicare beneficiaries he recruited. Young admitted that he would keep part of these funds as a kickback. Typically, the owners of Ritecare would provide $100-$150 per patient Young recruited, with Young retaining $50-$75 of that amount.
According to the plea documents, the patients Young recruited had to subject themselves to medically unnecessary tests to receive the money. Per instructions from the owners and operators of Ritecare, Young admitted that he instructed the patients to claim they had certain symptoms to trigger medically unnecessary tests. Consequently, the patients’ medical records contained false symptoms allowing Ritecare to deceive Medicare as to the legitimacy and medical necessity of the tests it performed.
Young admitted that King and he were responsible for recruiting at least 269 patients to Ritecare. Through his recruitment efforts, Young caused the submission of approximately $940,760 in false or fraudulent billings by Ritecare. Medicare paid approximately $533,643 on those claims.
King pleaded guilty in April 2010 to one count of conspiracy to commit health care fraud and was sentenced on Dec. 14, 2010, to 8 months in prison.
Today’s sentence was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney for the Eastern District of Michigan Barbara L. McQuade; Special Agent in Charge Andrew G. Arena of the FBI’s Detroit Field Office; and Special Agent in Charge Lamont Pugh III of the HHS Office of Inspector General’s (OIG) Chicago Regional Office.
The case was prosecuted by Assistant Chief John K. Neal and Trial Attorney Gejaa T. Gobena of the Criminal Division’s Fraud Section. The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan.
Since its inception in March 2007, Medicare Fraud Strike Force operations in seven districts have obtained indictments of more than 850 individuals and organizations that collectively have billed the Medicare program for more than $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
Nation’s Second Largest Refinery to Pay $700 Million to Upgrade Pollution Controls at U.S. Virgin Islands FacilityRead the Press Release
WASHINGTON – HOVENSA LLC, owner of the second largest petroleum refinery in the United States, has agreed to pay a $5.375 million civil penalty and spend more than $700 million in new pollution controls to resolve Clean Air Act violations at its St. Croix, U.S. Virgin Islands, refinery, the Department of Justice and Environmental Protection Agency (EPA) announced today.
The settlement requires new and upgraded pollution controls, more stringent emission limits and aggressive monitoring, leak-detection and repair practices to reduce emissions from refinery equipment and process units.
“This important settlement with the second largest refinery in the United States will result in significant improvements to human health and the environment of the U.S. Virgin Islands,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “Because of this settlement, HOVENSA will install advanced pollution control and monitoring technology, will adopt more stringent emissions limits, and will also create a fund dedicated to local environmental projects. This is another major step in our efforts, alongside EPA, to bring the petroleum refining sector into compliance with our nation’s environmental laws.”
“This settlement will produce significant benefits for the environment and for the people of the Virgin Islands,” said Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “The commitments made by HOVENSA to install state-of-the-art pollution controls will mean cleaner air for years to come.”
“Residents of the Virgin Islands expect and deserve to live in an environment free from harmful emissions and other pollutants,” said Ronald W. Sharpe, U.S. Attorney for the District of the Virgin Islands. “This agreement further illustrates the U.S. Department of Justice’s commitment to enforcing environmental laws so that current and future generations will be able to enjoy the natural beauty so prevalent in the Virgin Islands.”
The consent decree, lodged in the U.S. District Court of the Virgin Islands, is subject to a 30-day public comment period and court approval.
The government’s complaint, filed concurrently with today’s settlement, alleged that the company made modifications to its refinery that increased emissions without first obtaining pre-construction permits and installing required pollution control equipment. The Clean Air Act requires major sources of air pollution to obtain such permits before making changes that would result in a significant emissions increase of any pollutant.
Once fully implemented, the pollution controls required by the settlement are estimated to reduce emissions of nitrogen oxides (NOx) by more than 5,000 tons per year and sulfur dioxide (SO2) by nearly 3,500 tons per year. The settlement will also result in additional reductions of volatile organic compounds, particulate matter, carbon monoxide and other pollutants that affect air quality. Additional pollution-reducing projects at the refinery’s coking unit under the settlement will also reduce greenhouse gas emissions by over 6,100 tons per year.
High concentrations of SO2 and NOx , two key pollutants emitted from refineries, can have adverse impacts on human health, and are significant contributors to acid rain, smog and haze.
The government of the U.S. Virgin Islands has joined in the settlement and will receive a portion of the civil penalty. In addition, the company will set aside an additional $4.875 million for projects to benefit the environment of the U.S. Virgin Islands. The projects will be identified jointly by the U.S. Virgin Islands government and HOVENSA, in consultation with EPA.
The settlement with HOVENSA is the 28th under an EPA initiative to improve compliance among petroleum refiners and to reduce significant amounts of air pollution from refineries nationwide through comprehensive, company-wide enforcement settlements. The first of EPA’s settlements was reached in 2000, and with today’s settlement, 105 refineries operating in 32 states and territories – more than 90 percent of the total refining capacity in the United States – are under judicially enforceable agreements to significantly reduce emissions of pollutants. As a result of the settlement agreements, refiners have agreed to invest over $6 billion in new pollution controls designed to reduce emissions of sulfur dioxide, nitrogen dioxide and other pollutants by over 360,000 tons per year.
HOVENSA is one of the 10 largest refineries in the world and has the capacity to refine more than 525,000 barrels of crude oil per day.
To read the proposed consent decree:
www.justice.gov/enrd/Consent_Decrees.html
For more information on the HOVENSA settlement:
www.epa.gov/compliance/resources/cases/civil/caa/hovensa.html
For more information on EPA’s Petroleum Refinery Initiative:
www.epa.gov/compliance/resources/cases/civil/caa/oil/index.html
Deputy Attorney General James Cole Appoints Stuart M. Goldberg as Chief of Staff and Lisa O. Monaco as Principal Associate Deputy Attorney GeneralRead the Press Release
WASHINGTON – Deputy Attorney General James Cole today announced the appointment of Lisa O. Monaco as the Principal Associate Deputy Attorney General and Stuart M. Goldberg as the Chief of Staff to the Deputy Attorney General.
“Lisa and Stuart are veteran career prosecutors who have served the department in a number of capacities over the years and I am grateful that they will continue their service in the Deputy Attorney General's office,” said Deputy Attorney General Cole. “Stuart and Lisa have demonstrated an unrivaled commitment to this institution and I am confident they will be key assets in our efforts to keep the American people safe, ensure the fairness and integrity of our financial markets, and protect the traditional missions of the department.”
Since 2010, Monaco has served as the acting Principal Associate Deputy Attorney General and before that served as an Associate Deputy Attorney General since 2009. Prior to joining the Deputy Attorney General's office, Monaco was the Chief of Staff to FBI Director Robert S. Mueller, working on a wide range of national security and law enforcement issues. She also served as Deputy Chief of Staff and Counselor to Director Mueller during her tenure at the FBI.
From 2001 to 2007, Monaco served as a federal prosecutor. She was appointed to the Enron Task Force, serving as a co-lead trial counsel in the prosecution of five former executives of Enron Broadband Services. For her work on the Enron Task Force, Monaco received the Attorney General’s Award for Exceptional Service, the Justice Department’s highest award. Prior to her appointment to the Enron Task Force, she served as the Assistant U.S. Attorney for the District of Columbia.
Monaco served as Counsel to Attorney General Janet Reno from 1998 to 2001, providing advice and guidance on national security, law enforcement, budget and oversight issues.
Before joining the department, Monaco clerked for the Honorable Jane R. Roth, U.S. Court of Appeals for the Third Circuit. She earned her J.D. from the University of Chicago Law School and her B.A. from Harvard University.
Since 2005, Goldberg has served as the First Assistant U.S. Attorney for the District of Maryland, where he oversaw the work of over 85 Assistant U.S. Attorneys involved in criminal prosecutions and civil litigation. In December 2010, he was awarded a Director’s Award for his superior performance as a manager at the 2010 Executive Office for U.S. Attorneys Director’s Awards ceremony.
Prior to joining the U.S. Attorney’s Office, Goldberg was Principal Deputy Chief of the Public Integrity Section, the office that oversees the federal effort to combat corruption through the prosecution of officials and employees at all levels of government. Goldberg began his career with the Department as a trial attorney at Public Integrity in 1988. He also served the section as Deputy Chief for Litigation and Senior Litigation Counsel.
Before joining the Department, Goldberg worked as a civil litigator at Rogers & Wells LLP, focusing largely on securities and commodities fraud, First Amendment and antitrust cases.
Goldberg has been a member of the adjunct faculty at Georgetown University Law Center, teaching courses on professional responsibility. He received his J.D. from Harvard Law School and his B.A. from the University of Virginia.
Attorney General Holder, Justice Department Officials Meet with Defending Childhood RepresentativesRead the Press Release
WASHINGTON – Attorney General Eric Holder today met with Defending Childhood representatives from eight communities across the country to discuss local efforts to address children’s exposure to violence. The week-long Defending Childhood meeting brought together the initiative’s eight demonstration sites for a series of presentations, peer-to-peer exchanges and dialogue with Justice Department leadership. Attorney General Eric Holder, Associate Attorney General Tom Perrelli and department officials discussed the initiative with representatives and their ongoing efforts in their communities.
“I am grateful for this opportunity to discuss our shared goals – and your front-line efforts – to prevent, reduce, and combat childhood exposure to violence,” said Attorney General Eric Holder. “The issue of children’s exposure to violence has been both a personal and professional concern for decades. As our nation’s Attorney General, and as a parent of three young children, addressing this crisis – and implementing bold, innovative, and collaborative solutions – is a top priority.”
Attorney General Holder launched Defending Childhood to focus on addressing children’s exposure to violence. A key component of the initiative is a multi-year demonstration program. This included Justice Department funding for eight demonstration sites to develop and implement multi-disciplinary plans that specifically address prevention, intervention, treatment and response strategies to address children’s exposure to violence.
The eight sites are:
· City of Boston ($160,000)
· City of Portland , Maine ($160,000)
· Chippewa Cree Tribe, Mont. ($153,210)
· City of Grand Forks , N.D. ($159,967)
· Cuyahoga County Board of Commissioners, Ohio ($157,873)
· Multnomah County Department of Human Services, Ore. ($159,349)
· Rosebud Sioux Tribe, S.D. ($159,534)
· Shelby County, Tenn. ($159,099)
The goals of the initiative are to prevent children’s exposure to violence as victims and witnesses, mitigate the negative effects experienced by children exposed to violence and develop knowledge about and increase awareness of this issue. More information about this initiative can be found at: www.justice.gov/ag/defendingchildhood/ .
25 January 2011
Statement of the Attorney General on the Sentencing of Ahmed GhailaniRead the Press Release
WASHINGTON – “Today’s sentencing of Ahmed Ghailani shows yet again the strength of the American justice system in holding terrorists accountable for their actions. Ghailani will now rightly serve the rest of his life in prison for his role in the attacks against American embassies in Kenya and Tanzania that left 224 dead, including twelve Americans.
Ghailani is the fifth person to be convicted in federal court in connection with the embassy bombings, and we hope this life sentence brings some measure of justice to the victims of these attacks and their families and friends who have waited so long for this day. Hundreds of individuals have now been convicted in federal court of terrorism or terrorism-related crimes since September 11, 2001. As this case demonstrates, w e will not rest in bringing to justice terrorists who seek to harm the American people, and we will use every tool available to the government to do so.”
Ripley, Ohio, Man Sentenced for Tax CrimesRead the Press Release
CINCINNATI – Robert C. Welti, a resident of Ripley, Ohio, was sentenced today in U.S. District Court for the Southern District of Ohio, the Justice Department announced. Welti previously pleaded guilty to one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue Code.
U.S. District Court Senior Judge Sandra S. Beckwith sentenced Welti to six months in prison and one year of supervised release. The court also ordered Welti to pay $5,000 in fines.
According to court documents, in April of 2002, Welti, who represented Douglas and Donald Frichtl in an Internal Revenue Service (IRS) audit, attempted to obstruct the audit by preventing properly summonsed documents from being turned over to the IRS, preventing the Frichtls from responding to the auditors’ questions, proposing meritless and frivolous questions and arguments to the IRS auditors, and accusing the IRS auditors of engaging in a criminal racketeering conspiracy.
The case resulted from an investigation by the IRS, Criminal Investigation. IRS Special Agent Ankur Arora conducted the investigation. Tax Division attorneys Thomas Voracek and Rita Calvin prosecuted the case.
Tax Division Acting Assistant Attorney General John A. DiCicco and Carter M. Stewart, U.S. Attorney for the Southern District of Ohio, made the announcement.
Importer of Defective Zylon Fiber Used in Bullet Proof Vests Reaches Settlement with United StatesRead the Press Release
WASHINGTON - N.I. Teijin Shoji Co. Ltd., aka N.I. Teisho of Japan, and an American subsidiary, N.I. Teijin Shoji (USA) Inc., have agreed to pay the United States $1.5 million to resolve potential claims under the False Claims Act in connection with the companies’ importation and sale of defective Zylon fiber which was used as the key ballistic material in bulletproof vests, the Justice Department announced today.
The Teijin companies imported the fiber on behalf of the Zylon manufacturer, Toyobo Co. Ltd. of Japan. The United States alleged that the Teijin companies were aware that the fiber degraded quickly over time and that this degradation rendered bulletproof vests containing woven Zylon unfit for use. The government further alleged that, despite this knowledge, the Teijin companies did not inform the United States of any degradation concerns or stop selling Zylon fiber for use in ballistic applications. Rather, Teijin personnel actively participated in the marketing of the Zylon fiber and downplayed the extent of the degradation problem. Furthermore, for a period of time in 2002, Teijin purchased Zylon fabric back from the Canadian weaver to whom it had sold the fiber for weaving, and sold it directly to American body armor manufacturers, after the weaver itself refused to sell the Zylon fabric due to its fears of potential liability.
"Those who knowingly provide defective material for bulletproof vests not only cheat the taxpayers, they put the lives of law enforcement officers at risk," said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. "We will pursue any company that is aware of problems with Zylon fiber, yet continues to market and sell it anyway."
This settlement is part of a larger investigation of the body armor industry’s use of Zylon in body armor. The United States previously has settled with eight other participants in the Zylon body armor industry for more than $59 million. Additionally, the federal government has lawsuits pending against Toyobo Co. and several of the vest manufacturers. As part of today’s agreement, Teijin has pledged its cooperation in the government’s on-going investigation.
Assistant Attorney General West acknowledged the contributions of the many government agencies assisting the government’s ongoing investigation of those who participated in the manufacture and sale of Zylon vests, including the Justice Department’s Civil Division; the U.S. Attorney’s Office for the District of Columbia; the General Services Administration, Office of the Inspector General; the U.S. Army Criminal Investigative Command; the Department of Commerce, Office of Inspector General; the Department of the Treasury’s Inspector General for Tax Administration; the Defense Criminal Investigative Service; the Air Force Office of Special Investigations; the Department of Energy, Office of the Inspector General; the Defense Contracting Audit Agency; and the FBI.
Hawaii Man Sentenced to 32 Years in Prison for Providing Defense Information and Services to People’s Republic of ChinaRead the Press Release
WASHINGTON – Noshir S. Gowadia, 66, of Maui, Hawaii, was sentenced late yesterday to 32 years in prison for communicating classified national defense information to the People’s Republic of China (PRC), illegally exporting military technical data, as well as money laundering, filing false tax returns and other offenses.
The sentence, handed down by Chief U.S. District Judge Susan Oki Mollway in the District of Hawaii, was announced by David Kris, Assistant Attorney General for National Security, and Florence T. Nakakuni, U.S. Attorney for the District of Hawaii.
On Aug. 9, 2010, following six days of deliberation after a trial spanning nearly four months in Honolulu, a federal jury found Gowadia guilty of five criminal offenses relating to his design for the PRC of a low-signature cruise missile exhaust system capable of rendering a PRC cruise missile resistant to detection by infrared missiles.
The jury also convicted Gowadia in three counts of illegally communicating classified information regarding lock-on range for infrared missiles against the U.S. B-2 bomber to persons not authorized to receive such information. The B-2 bomber is one of America’s most critical defense assets, capable of utilizing its stealth characteristics to penetrate enemy airspace and deliver precision guided weapons on multiple targets. Gowadia was also convicted of unlawfully exporting classified information about the
B-2, illegally retaining information related to U.S. national defense at his home, money laundering and filing false tax returns for the years 2001 and 2002.
“Mr. Gowadia provided some of our country’s most sensitive weapons-related designs to the Chinese government for money. He is now being held accountable for his actions. This prosecution should serve as a warning to others who would compromise our nation’s military secrets for profit. I commend the prosecutors, analysts and agents - including those from the FBI and the Air Force - who were responsible for this investigation and prosecution,” said Assistant Attorney General Kris.
“Justice is finally done in this lengthy and complex case where highly classified information and sensitive technology was unlawfully disclosed and transferred to the People’s Republic of China, and other persons and entities as well. Mr. Gowadia went beyond disclosing information to China, he performed defense work in that nation with the purpose of assisting them in their stealth weapons design programs. While the full damage of his activities may never be known, we are comforted that justice has been done, and that Mr. Gowadia will spend 32 years in federal prison, incapable of betraying the United States of America again. It must be remembered also that Mr. Gowadia’s sentence also addresses his creation of an international identity to hide his income and launder his ill gotten gains. I deeply appreciate the hard work of the FBI, the U.S. Air Force Office of Special Investigations, and the IRS Criminal Investigation Division in assisting us in obtaining the espionage, arms export, tax and money laundering convictions in this important case,” said U.S. Attorney Nakakuni.
“Along with our partners in the law enforcement and intelligence communities, the FBI will continue to pursue anyone who attempts to sell America’s national security secrets for personal gain. The safety of the American people remains our highest priority, and we will use every tool at our disposal to find, stop, and prosecute anyone engaging in espionage,” said Frank Montoya, Special Agent in Charge of the Honolulu Division of the FBI.
“This case has set the example for interagency cooperation focused singularly to protect Americans from harm. The sentencing reflects the successful prosecution of Mr. Gowadia for espionage and other crimes and highlights the many contributions of AFOSI personnel and our partner organizations worldwide,” said Brigadier General Kevin Jacobsen, Commander, U.S. Air Force Office of Special Investigations (AFOSI).”
“This defendant betrayed us in at least two ways, said Marcus Williams, the IRS Special Agent in Charge of Hawaii. Not only did he sell out his country for personal gain, but he also cheated us all out of the tax owed on those ill-gotten gains. In short, his actions were despicable from beginning to end,” said Marcus Williams, Internal Revenue Service (IRS) Special Agent in Charge of Hawaii.
Gowadia was first arrested in October 2005 on a criminal complaint alleging that he willfully communicated national defense information to a person not entitled to receive it. He was charged with additional violations in a 2005 indictment, a 2006 superseding indictment and a 2007 second superseding indictment.
According to information produced during the trial, Gowadia was an engineer with Northrop Grumman Corporation from approximately 1968 to 1986, during which time he contributed to the development of the unique propulsion system and low observable capabilities of the B-2 Spirit bomber, sometimes referred to as the “Stealth” bomber. Gowadia also continued to work on classified matters as a contractor with the with the U.S. government until 1997, when his security clearance was terminated.
Evidence at the trial revealed that from July 2003 to June 2005, Gowadia took six trips to the PRC to provide defense services in the form of design, test support and test data analysis of technologies for the purpose of assisting the PRC with a cruise missile system by developing a stealthy exhaust nozzle. At the time of his arrest, Gowadia had been paid at least $110,000 by the PRC. The jury convicted Gowadia of two specific transmissions of classified information: a PowerPoint presentation on the exhaust nozzle of a PRC cruise missile project and an evaluation of the effectiveness of a redesigned nozzle, and a computer file providing his signature prediction of a PRC cruise missile outfitted with his modified exhaust nozzle and associated predictions in relation to a U.S. air-to-air missile.
The prosecution also produced evidence that documented Gowadia’s use of three foreign entities he established and controlled, including a Liechtenstein charity purportedly for the benefit of children, to hide, launder and disguise the income he received from foreign countries. Gowadia admitted on cross examination at trial that he never donated money to any charity using the foundation, despite repeatedly representing that he did to the IRS and others. In addition to demonstrating that Gowadia under-reported his income and falsely denied having control over foreign bank accounts for the two tax years involved in his convictions, the evidence at trial revealed that Gowadia had not paid any income tax since from at least 1997 until 2005 when he was arrested. Trial evidence showed that during this time Gowadia built a luxurious ocean side home located on a cliff in Maui, Hawaii.
This case was investigated by FBI, the U.S. Air Force Office of Special Investigations, the IRS’s Criminal Investigation Division, U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement and the State Department’s Directorate of Defense Trade Controls.
The case was prosecuted by Assistant U.S. Attorney Ken Sorenson of the U.S. Attorney’s Office for the District of Hawaii and Senior Trial Attorney Robert E. Wallace Jr., of the Counterespionage Section of the Justice Department’s National Security Division.
Former Upstate New York Financial Advisor Pleads Guilty to Using and Selling Abusive Trust Schemes to Obstruct the IRSRead the Press Release
WASHINGTON - Richard A. Muto of Buffalo, N.Y., has pleaded guilty to corruptly endeavoring to obstruct and impede the administration of the internal revenue laws, the Justice Department announced today. A federal grand jury in Buffalo returned an indictment against Muto in December 2005.
According to the indictment and documents filed in the district court, Muto, a former resident of Lewiston, N.Y., was a financial advisor who owned and operated a business called Tax and Investment Strategies, located in Niagara Falls, N.Y. Between February 1996 and March 2000, Muto promoted abusive tax shelters that involved a multi-layered abusive trust scheme. The fraudulent scheme allowed clients to illegally reduce their federal income taxes by diverting business income through a series of sham corporations and trusts. Through these trusts, Muto helped his clients conceal their true income from the Internal Revenue Service (IRS). This fraudulent scheme resulted in an unlawful reduction in reported taxes by his clients.
Muto also counseled his clients to submit frivolous documents and correspondence to the IRS to obstruct audits and thwart the IRS revenue agents. In addition to promoting the fraudulent trusts, Muto also utilized them. The use of these fraudulent trusts resulted in Muto also filing false income tax returns for the tax years 1996, 1997 and 1998. According to the plea documents, the scheme promoted by Muto caused a tax loss to the United States of more than $1.7 million.
The charge against Muto carries a maximum sentence of up to three years in prison and up to one year of supervised release. He is scheduled to be sentenced on May 9, 2011.
"The IRS and the Justice Department will continue to investigate and prosecute people who use schemes and scams to obstruct our nation’s tax system," said John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division. He thanked the IRS
Criminal Investigation agents who investigated the case as well as Tax Division trial attorneys John N. Kane and Jeffrey Shih who prosecuted the case.
This prosecution is one of several prosecutions against the fraudulent trust schemes promoted nationwide by The Aegis Company based in Palos Hills, Ill. In May 2008, a federal jury in Chicago convicted the six Aegis principals who ran the nationwide scheme out of Illinois and with whom Muto had a business relationship to promote the trusts.
Former Senior Employee with U.S. Military Contractor Sentenced to 37 Months in Prison for Bribery Scheme Related to Contracts Used to Support Iraq WarRead the Press Release
WASHINGTON - A former senior employee of a U.S. military contractor was sentenced today by U.S. District Judge David Hittner in Houston to 37 months in prison for participating in a conspiracy to pay $360,000 in bribes to U.S. Army contracting officials stationed at a U.S. military base in Kuwait, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division.
In addition, Judge Hittner ordered Dorothy Ellis, 53, of Texas City, Texas, to serve three years of supervised release following her prison term and ordered her to pay $360,000 in restitution. Ellis pleaded guilty in U.S. District Court for the Southern District of Texas on Sept. 2, 2010, to one count of conspiracy to bribe public officials.
The case against Ellis arose from a corruption probe focusing on Camp Arifjan, a U.S. military base in Kuwait. As a result of this investigation, 16 individuals, including Ellis, have been charged, of which 14 have pleaded guilty. These individuals include Ellis’s former boss and military contractor, Terry Hall, and several U.S. Army contracting officials, including former Army Majors James Momon and Christopher Murray.
According to court documents, from spring 2004 through fall 2007, Hall operated and had an interest in several companies, including Freedom Consulting and Catering Co. and Total Government Allegiance, which, at various times during this period, provided goods and services to the U.S. Department of Defense (DoD) and its components. The goods and services were provided based on a blanket purchase agreement (BPA) to deliver bottled water and a contract to construct a security fence in Kuwait and elsewhere. A BPA is a type of contract by which the DoD agrees to pay a contractor a specified price for a particular good or service. Based on a BPA, the DoD orders the supplies on an as-needed basis. The contractor is then obligated to deliver the supplies ordered at the price agreed upon in the BPA. The term for such an order by the DoD is a “call.”
According to court documents, Ellis was Hall’s most senior employee. In that role, she was responsible for serving as the liaison between Hall and U.S. Army contracting officials stationed at Camp Arifjan. Ellis admitted that she participated in the bribery scheme by providing Momon and Murray access to secret bank accounts established on their behalf in the Philippines to enable Hall and others to transfer bribe payments to them. Ellis also admitted that, to further Hall’s unlawful dealings with Momon, she obtained confidential Army contract pricing information from Momon that was designed to give Hall an unlawful advantage in the bidding process for an ice contract from the DoD.
According to court documents, Hall obtained the calls made under the bottled water BPA and the fence contract by bribing certain U.S. Army contracting officers, including, among others, Momon and Murray. Assisted by Ellis, Hall paid Momon approximately $330,000 and Murray approximately $30,000. In exchange for these bribe payments, Momon arranged for the DoD to pay Hall’s companies more than $6.4 million based on calls for bottled water, and Murray arranged for the DoD to pay Hall to construct security fencing.
On Feb. 18, 2010, Hall pleaded guilty to bribery conspiracy and money laundering conspiracy and agreed to forfeit $15.7 million to the U.S. government in connection with his payment of more than $3 million in bribes to former U.S. Army Majors John Cockerham, Eddie Pressley, Momon and Murray.
On Aug. 13, 2009, Momon pleaded guilty to receiving approximately $1.6 million in bribes and agreed to pay $5.7 million in restitution. On Jan. 8, 2009, Murray pleaded guilty to charges of bribery and making a false statement. He was sentenced on Dec. 17, 2009, to 57 months in prison and ordered to pay $245,000 in restitution.
On Jan. 31, 2008, Cockerham pleaded guilty to participating in a bribery and money laundering scheme at Camp Arifjan. He was sentenced on Dec. 2, 2009, to 210 months in prison and ordered to pay $9.6 million in restitution.
The case against Hall’s co-defendants, Eddie Pressley and his wife, Eurica Pressley, is scheduled for trial Jan. 31, 2011, in Decatur, Ala. These defendants are presumed innocent until proven guilty in a court of law.
The case is being prosecuted by Trial Attorneys Edward J. Loya, Jr. and Peter C. Sprung of the Criminal Division’s Public Integrity Section. The case is being investigated by special agents of the Defense Criminal Investigative Service, the Army Criminal Investigation Command Division, the FBI and the Special Inspector General for Iraq Reconstruction.
24 January 2011
Two Individuals Plead Guilty to Defrauding FCC Video Relay Service ProgramRead the Press Release
WASHINGTON – Two individuals pleaded guilty today for their participation in a conspiracy to defraud the Federal Communications Commission’s (FCC) Video Relay Service (VRS) program, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division and James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office.
Ellen Thompson, 44, pleaded guilty before U.S. District Court Judge Joel A. Pisano in Trenton, N.J., to one count of conspiracy to commit wire fraud. Wanda Hutchinson, 36, pleaded guilty before Judge Pisano to one count of conspiracy to commit mail fraud. Thompson and Hutchinson were indicted in the fall of 2009, along with others alleged to have been involved in the criminal conspiracy. The defendants and their co-conspirators are alleged to have caused the FCC to pay millions of dollars in fraudulent reimbursements.
According to court documents, Thompson was the chief operating officer for Deaf Studio 29, Verson Studio and Deaf News Network, California corporations that contracted with a certified VRS provider company to use the company’s VRS service. Hutchinson was a call center manager for Innovative Communication Services for the Deaf Corporation (ICSD), a company that operated VRS call centers in Florida. Thompson and Hutchinson both conspired with others to generate illegitimate VRS call minutes for reimbursement by the FCC.
According to the indictment, VRS is an online video translation service that allows people with hearing disabilities to communicate with hearing individuals through the use of interpreters and web cameras. A person with a hearing disability who wants to communicate with a hearing person can do so by contacting a VRS provider through an audio and video Internet connection. The VRS provider, in turn, employs a video interpreter to view and interpret the hearing disabled person’s signed conversation and relay the signed conversation orally to a hearing person. VRS is funded by fees assessed by telecommunications providers from telephone customers, and is provided at no cost to the VRS user.
On Jan. 6, 2011, Marc Velasquez, the founder and owner of Deaf Studio 29, Verson Studio and Deaf News Network, pleaded guilty for his role in the conspiracy. On March 9, 2010, Yosbel Buscaron and Lazaro Fernandez, the co-owners of ICSD, pleaded guilty for their roles in the conspiracy. Jessica Bacallao, an ICSD call center manager, pleaded guilty on Oct. 28, 2010.
Thompson and Hutchinson are scheduled to be sentenced on Sept. 6, 2011. Both defendants face a maximum sentence of 20 years in prison, a fine of $250,000 and mandatory restitution and forfeiture.
This case was prosecuted by Deputy Chief Hank Bond Walther and current and former Trial Attorneys Robert Zink and Brigham Cannon of the Criminal Division’s Fraud Section. The case was investigated by the FBI’s Washington Field Office, the U.S. Postal Inspection Service and the FCC Office of Inspector General.
Seafood Wholesaler Owners Plead Guilty to Selling Falsely Labeled Fish, Smuggling, and Misbranding of Seafood ProductsRead the Press Release
WASHINGTON– Karen L. Blyth and David H.M. Phelps pleaded guilty today in federal court in Mobile, Ala., to 13 felony offenses for their roles in purchasing and selling farm raised Asian catfish and Lake Victoria perch falsely labeled as grouper; selling foreign farm-raised shrimp falsely labeled as U.S. wild caught shrimp, selling shrimp that falsely claimed to be larger, more expensive shrimp than they actually were; and for buying fish they knew had been illegally imported into the United States. The defendants pleaded guilty to one conspiracy count, nine violations of the Lacey Act, two counts of receiving smuggled goods and one misbranding count. A third defendant charged in the case, John J. Popa, of Lisbon, Conn., had previously pleaded guilty to similar offenses.
Blyth, of Paradise Valley, Ariz., was the co-owner and president of two companies, Consolidated Seafood Enterprises Inc., located in Phoenix, and Reel Fish and Seafood, Inc., located in Pensacola, Fla., which traded in a variety of seafood products. Phelps, of Scottsdale, Ariz., co-owned Consolidated Seafood and Reel Fish and served as a vice president in both companies. John J. Popa managed and co-owned Reel Fish with Blyth and Phelps and served as the company’s vice president.
The defendants admitted using Consolidated Seafood to buy frozen fillets of a type of farm raised catfish from Vietnam with the genus Pangasius, called sutchi, that they knew had been imported into the United States and falsely declared as wild caught sole, in order to avoid anti-dumping duties that were owed on this product.
“These defendants have admitted to flouting federal laws in a misguided scheme to defraud the American consumer,” said Ignacia S. Moreno, Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice. “Today’s convictions send the message that we will pursue others who engage in illegal activity. This type of scam floods the market with falsely labeled fish, thereby misleading consumers, artificially deflating the cost of wild-caught fish, and depriving law-abiding fishermen of the full measure of their labor.”
“These prosecutions should send a clear message that instances of consumer fraud will be vigorously prosecuted and that this U.S. Attorney’s Office will continue to protect local seafood consumers and all components of the local seafood market and industry,” said Kenyen R. Brown, U.S. Attorney for the Southern District of Alabama.
Anti-dumping duties went into effect on frozen fillets of sutchi, basa and swai in Jan. 2003, after an investigation by the Department of Commerce established that this product was being sold in the United States at less than fair value and were therefore injuring domestic catfish producers. In all, the defendants conspired to falsely label and buy approximately 283,500 pounds of farm raised sutchi, which was imported without $145,625 of anti-dumping duties having been paid.
“These anti-dumping duties are designed to protect domestic catfish producers from unfair foreign competition,” said Raymond R. Parmer, Jr., Special Agent in Charge, U.S. Department of Homeland Security, Homeland Security Investigations. “Those that conspire to and buy such a product knowing that it was imported illegally will be brought to justice and punished.”
“We will continue to investigate all false labeling and substitution of this country’s fish and seafood, and work to protect fisheries in the Southeast region and the American consumer which are harmed by this kind of criminal activity,” said Harold Robbins, Special Agent in Charge, Southeast Region, National Oceanic and Atmospheric Administration, Office of Law Enforcement.
Some of the fish seized during the investigation tested positive for malachite green and Enrofloxin, both of which are banned from U.S. food. Malachite green is a chemical compound often used in overseas fish farming, and Enrofloxin is an antibiotic used in some foreign fish farming but for which there is zero tolerance by the Food and Drug Administration in food sold in the United States. The defendants ultimately received 81,000 pounds of this illegally imported sutchi, and sold 34,100 pounds of it to Reel Fish, which in turn sold it to customers in Alabama, Florida and elsewhere.
The defendants would change the marking on this sutchi and other imported basa to grouper, and sell it to customers in Alabama, Florida and Mississippi as more desirable grouper, at a higher cost. The defendants sold more than 100,000 pounds of this falsely labeled basa and sutchi to these customers.
Blyth and Phelps also admitted to buying more than 25,000 pounds of Lake Victoria perch from Africa, mislabeling and selling this fish as grouper to customers in Alabama and Florida at a higher cost, and in greater quantities than if it had been accurately labeled.
The defendants also admitted that they conspired to mislabel and create false labels for shrimp they sold to customers in these areas. The defendants, through Reel Fish, would repackage farm raised foreign shrimp as U.S. wild caught shrimp. The defendants would also falsely label the shrimp as being larger than they were. By falsely labeling the shrimp in these manners, the defendants were able to sell more and charge more for the shrimp that they sold.
Sentencing for Blyth and Phelps is set for May 4, 2011. Popa’s sentencing is set for Feb. 22, 2011. The maximum penalty for each smuggling count is up to 20 years in prison and a $250,000 fine. The maximum penalty for each violation of the Lacey Act includes up to five years in prison and a $250,000 fine. The maximum penalty for each misbranding count includes up to three years in prison and a $250,000 fine.
The case was investigated by the National Oceanic and Atmospheric Administration, Office of Law Enforcement; the Department of Homeland Security, Immigration and Customs Enforcement; the U.S. Air Force Office of Special Investigations; and the Department of Defense, Defense Criminal Investigative Service. The case was prosecuted by Wayne D. Hettenbach and Susan L. Park of the Environmental Crimes Section of the Department of Justice Environment and Natural Resources Division, and Deborah A. Griffin of the U.S. Attorney’s Office for the Southern District of Alabama.
Propietarios de mayorista de mariscos se declaran culpables de vender pescado etiquetado falsamente, contrabandear y falsificar marcas de mariscosRead the Press Release
WASHINGTON — Karen L. Blyth y David H.M. Phelps se declararon culpables hoy en el tribunal federal en Mobile, Ala., de 13 delitos graves por sus papeles en la compra y venta de bagre asiático de criadero y perca del Lago Victoria etiquetados falsamente como mero; vender camarones extranjeros de criadero falsamente etiquetados como camarones silvestres pescados en EE.UU., vender camarones que alegaban ser de mayor tamaño y más caros de lo que realmente eran; y comprar pescado que sabían que había sido ilegalmente importado a los Estados Unidos. Los demandados se declararon culpables de un cargo de conspiración, nueve violaciones de la Ley Lacey, dos cargos de recibir bienes contrabandeados y un cargo de falsificación de marca. Un tercer demandado acusado en el caso, John J. Popa, de Lisbon, Conn., se había declarado culpable anteriormente de delitos similares.
Blyth, de Paradise Valley, Ariz., era el copropietario y presidente de dos compañías, Consolidated Seafood Enterprises, Inc., ubicada en Phoenix, y Reel Fish and Seafood, Inc., ubicada en Pensacola, Fla., las que comercializaban una variedad de pescados y mariscos. Phelps, de Scottsdale, Ariz., copropietario de Consolidated Seafood and Reel Fish, también fue vicepresidente de ambas compañías. John J. Popa administraba y era copropietario de Reel Fish con Blyth y Phelps y fue vicepresidente de la compañía.
Los codemandados admitieron haber utilizado a Consolidated Seafood para comprar filetes congelados de un tipo de bagre de criadero de Vietnam con el género Pangasius, llamado sutchi, que sabían haber sido importado a los Estados Unidos y declararon falsamente que se trataba de lenguado pescado en forma silvestre, a fin de evitar cargos anti-dumping que incidían sobre este producto.
"Estos demandados han admitido haber burlado las leyes federales en un ardid para defraudar al consumidor estadounidense", dijo Ignacia S. Moreno, Secretaria de Justicia Auxiliar de la División de Medio Ambiente y Recursos Naturales del Departamento de Justicia. "Las condenas de hoy transmiten el mensaje de que iremos atrás de cualquier otra persona que realice actividades ilegales. Este tipo de ardid inunda el mercado con pesado falsamente etiquetado, engañando, por lo tanto, a los consumidores, reduciendo artificialmente el costo de los pescados pescados en forma silvestre, y privando a los pescadores respetuosos de la ley de los frutos plenos de su trabajo".
"Estos enjuiciamientos deben transmitir un mensaje claro de que se enjuiciarían enérgicamente los casos de fraude al consumidor y que esta Fiscalía Federal seguirá protegiendo a los consumidores locales de mariscos y a todos los componentes del mercado y la industria de mariscos locales", dijo Kenyen R. Brown, Fiscal Federal para el Distrito Sur de Alabama.
Los cargos antidumping entraron en vigencia para filetes congelados de sutchi, basa y swai enero de 2003, después de que una investigación realizada por el Departamento de Comercio estableciera que este producto estaba siendo vendido en los Estados Unidos a un valor menor que el justo, perjudicando, por lo tanto, a los productores domésticos de bagre. En total, los demandados conspiraron para etiquetar falsamente y comprar aproximadamente 283,500 libras de sutchi de criadero importado sin que se pagaran los cargos anti-dumping de $145,625.
"Estos cargos antidumping fueron diseñados para proteger a los productores domésticos de bagre contra la competencia injusta extranjera", dijo Raymond R. Parmer, Jr., Agente Especial a Cargo, Departamento de Seguridad Nacional de EE.UU., Investigaciones de Seguridad Nacional. "Quienes conspiren para comprar y compren tal producto sabiendo que fue importado ilegalmente enfrentarán a la justicia y serán castigados".
"Seguiremos investigando todo etiquetado falso y la sustitución del pescado y los mariscos de este país, y trabajaremos para proteger a las pescaderías en la región sudeste y al consumidor estadounidense perjudicados por este tipo de actividad delictiva", dijo Harold Robbins, Agente Especial a Cargo, Región Sudeste, Administración Nacional Oceánica y Atmosférica, Oficina de Coacción Legal.
Parte del pescado confiscado durante la investigación tuvo resultado positivo en pruebas realizadas para constatar la presencia de verde malaquita y enrofloxina, ambos los cuales están prohibidos en alimentos estadounidenses. El verde malaquita es un compuesto químico utilizado con frecuencia en criaderos de peces en el exterior, y la enrofloxina es un antibiótico utilizando en algunos criaderos de peces extranjeros, pero para el cual existe tolerancia cero por parte de la Administración de Alimentos y Fármacos para alimentos vendidos en los Estados Unidos. Los demandados recibieron 81,000 libras de este sutchi ilegalmente importado, y vendieron 34,100 libras del mismo a Reel Fish, quien a su vez lo vendió a clientes en Alabama, Florida y otros lugares.
Los demandados cambiaron las etiquetas en estos sutchi y otros basa importados a mero, vendiéndoselo a clientes en Alabama, Florida y Mississippi como un mero más deseable, a un costo más alto. Los demandados vendieron más de 100,000 libras de estos basa y sutchi con falsamente etiquetados a estos clientes.
Blyth y Phelps también admitieron haber comprado más de 25,000 libras de perca del Lago Victoria de África, haber falsificado sus etiquetas y haber vendido este pescado como siendo mero a clientes en Alabama y Florida a un costo más alto, y en cantidades mayores que si hubieran estado correctamente etiquetados.
Los demandados también admitieron que conspiraron para etiquetar engañosamente y crear etiquetas falsas para camarones que vendieron a clientes en dichas áreas. Los demandados, a través de Reel Fish, re embalaban camarones extranjeros de criadero como camarones pescados de manera silvestre en EE.UU. Los demandados también etiquetaron los camarones falsamente indicando un tamaño mayor que el que tenían en realidad. Al etiquetar el camarón falsamente, los demandados lograron vender más y cobrar más por el camarón vendido.
Se ha programado la lectura de la sentencia para Blyth y Phelps para el 4 de mayo de 2011. La lectura de la sentencia de Popa fue programada para el 22 de febrero de 2011. La pena máxima por cada cargo de contrabando es de hasta 20 años en prisión y una multa de 250,000 dólares. La pena máxima por cada violación de la Ley Lacey incluye hasta cinco años en prisión y una multa de 250,000 dólares. La pena máxima por cada cargo de falsificación de marca incluye hasta tres años en prisión y una multa de 250,000 dólares.
El caso fue investigado por la Administración Nacional Oceánica y Atmosférica, Oficina de Coacción Legal; el Departamento de Seguridad Nacional, Servicio de Inmigración y Control de Aduanas; Oficina de Investigaciones Especiales de la Fuerza Aérea de EE.UU.; y el Departamento de Defensa, Servicio de Investigaciones Penales de Defensa. Estuvieron a cargo de la acusación en el caso Wayne D. Hettenbach y Susan L. Park de la Sección de Delitos Ambientales de la División de Medio Ambiente y Recursos Naturales del Departamento de Justicia, y Deborah A. Griffin de la Fiscalía Federal para el Distrito Sur de Alabama.
Michigan Businessman Pleads Guilty to Defrauding the Federal E-Rate ProgramRead the Press Release
WASHINGTON - A Michigan businessman pleaded guilty to wire fraud in connection with the federal E-Rate program, the Department of Justice announced today.
Jeremy R. Sheets pleaded guilty to a charge filed in U.S. District Court in Grand Rapids, Mich., on Dec. 9, 2010, for engaging in wire fraud in connection with the E-Rate program funding applications of two school districts in western Michigan. The department said Sheets engaged in the wire fraud beginning in or about December 2001 and continuing until about December 2007.
According to the charge, Sheets, the president and part owner of an Internet and technology services company, violated E-Rate program rules by compensating two school districts for their share of E-Rate expenses. In addition, Sheets utilized E-Rate funds to purchase undisclosed items, some of which were not eligible for E-Rate funding. Sheets concealed his violation of E-Rate program rules from the E-Rate program by fraudulently misrepresenting that the schools had been billed for their E-Rate expenses when, in fact, Sheets had reimbursed the schools for their share of expenses.
The E-Rate program was created by Congress in the Telecommunications Act of 1996 and is administered by the Universal Service Administrative Company, under the auspices of the Federal Communications Commission (FCC). The program provides subsidies to economically disadvantaged schools and libraries. Depending on the financial needs of the applicant schools, the program pays 20 to 90 percent of the cost for Internet access and telecommunications services, as well as internal computer and communications networks.
As a result of the Antitrust Division’s investigation into fraud and anticompetitive conduct in the E-Rate program, a total of seven companies and 20 individuals have pleaded guilty or have been convicted and found guilty or entered civil settlements. Those companies and individuals have paid, agreed to pay, or been sentenced to pay criminal fines and restitution totaling more than $40 million. Fifteen individuals have been sentenced to serve jail time.
The wire fraud charge carries a maximum penalty of 20 years in prison and a $250,000 fine for an individual. 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 amount is greater than the statutory maximum fine.
The charge announced today resulted from an ongoing investigation by the Department of Justice Antitrust Division’s Chicago Field Office, with the assistance of the U.S. Attorney’s Office in Grand Rapids, the FBI’s Grand Rapids Office of its Detroit Division and the FCC’s Office of Inspector General. Anyone with information concerning violations of the E-Rate Program or other anti-competitive conduct is urged to call the Antitrust Division’s Chicago Field Office at 312-353-7530 or visit www.justice.gov/atr/contact/newcase.htm.
Lockheed Martin to Pay $2 Million to Resolve Allegations Resulting from Fraudulent Submission of Government ContractRead the Press Release
WASHINGTON – Lockheed Martin Inc. has reached a $2 million settlement with the United States to resolve False Claims Act claims in a whistleblower suit, the Justice Department announced today. The suit, filed in June 2009, in the Southern District of Mississippi, alleges that the defendants knowingly violated the False Claims Act (FCA) when they submitted or caused the submission of false claims and conspired to submit such claims under a contract with the General Services Administration (GSA) in support of the Naval Oceanographic Major Shared Resource Center (NAVO MSRC).
That contract was to provide support services for the National Center for Critical Information Processing and Storage (NCCIPS) at the NAVO MSRC at the John C. Stennis Space Center in Hancock County, Miss. GSA awarded the NCCIPS task order in April 2004 to Science Applications International Corporation (SAIC), which teamed with Lockheed Martin and Applied Enterprise Solutions (AES) to perform under the task order. SAIC was paid a total of $115 million under the contract, of which Lockheed Martin was paid $2 million according to the terms of its subcontract with SAIC.
The suit alleges that prior to the issuance, and once the NCCIPS solicitation had been publicized, that then government employees, Stephen Adamec and Robert Knesel, conspired with Lockheed Martin, Galloway, SAIC and AES to ensure that SAIC and its teaming partners were awarded the task order by (a) sharing non public, advance procurement information with the SAIC team that was not provided to other potential bidders; (b) sharing information about the solicitation with the SAIC team before providing that information to other bidders; and choosing a type of contract and putting language in the solicitation in order to bias the selection process to favor the SAIC team.
“Companies that do business with the federal government and get paid by the taxpayers must act fairly and comply with the law,” said Tony West, Assistant Attorney General for the Justice Department’s Civil Division. “Whistleblowers have helped us to enforce the law by bringing to light schemes that misuse taxpayer dollars and abuse the public trust by undermining the integrity of the procurement process.”
The suit was filed under the qui tam, or whistleblower, provisions of the FCA by David Magee, a former employee at the NAVO MSRC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of the recovery. As a result of today’s settlement, the whistleblower will receive $560,000 as his share of the recovery.
The cases is U.S. ex. rel. Magee v. Lockheed Martin, et al., Case Number 1:09cv324 HSO (JMR) (S.D. Ms.), brought by David Mageeagainst SAIC SAIC; Lockheed Martin; AES; Dale Galloway, Chief Executive Officer of AES; Stephen Adamec, former Director of NAVO MSRC; and Robert Knesel, Deputy Director of NAVO MSRC. The United States intervened in the suit against all parties with the exception of Lockheed Martin.
The investigation was conducted by the Justice Department’s Civil Division, the Department of Defense’s Defense Criminal Investigative Service, the Naval Criminal Investigative Service and the GSA Office of Inspector General.
Justice Department Releases Proposed Rule in Accordance with the Prison Rape Elimination ActRead the Press Release
WASHINGTON - The Justice Department today released a proposed rule that aims to prevent and respond to sexual abuse in incarceration settings, in accordance with the Prison Rape Elimination Act (PREA). Based on recommendations of the National Prison Rape Elimination Commission (NPREC), the proposed rule contains four sets of national standards aimed at combating sexual abuse in four types of confinement facilities: adult prisons and jails, juvenile facilities, lockups and community confinement facilities.
A 60-day public comment period will follow publication in the Federal Register, after which the department will make revisions as warranted and the standards will be published as a final rule. The department expects the final rule will be published by the end of the year.
“Sexual abuse is a crime, not punishment for a crime,” said Attorney General Eric Holder. “The Department of Justice’s goal is to eliminate these acts of violence by taking deliberative and concrete steps to ensure the health and safety of prisoners. In crafting our proposed rule, we have aimed to build a durable set of standards that are attainable, effective and consistent with the Prison Rape Elimination Act’s requirements and goals.”
In developing the proposed rule, the department convened listening sessions with key stakeholders, performed an extensive analysis of the anticipated costs and benefits of the standards, and reviewed more than 650 comments that were submitted in response to an Advance Notice of Proposed Rulemaking. The standards are based on recommendations by the NPREC, which was created by PREA to study sexual abuse in confinement settings and disbanded in 2009 after issuing its final report, which included recommended standards. The department’s revisions aim to make the standards more effective, clarify the responsibilities imposed on correctional agencies, and comply with relevant law, including PREA’s requirement that the new standards not “impose substantial additional costs compared to the costs presently expended by federal, state and local prison authorities.” In addition, the department attempted to ensure that correctional agencies will be able to implement these standards without jeopardizing other programs vital to protecting inmates and ensuring their eventual reintegration into society.
The standards seek to prevent sexual abuse and to reduce the harm that it causes when it occurs. Each of the four sets of standards consists of 11 categories: prevention planning; responsive planning; training and education; screening for risk of sexual victimization and abusiveness; reporting; official response following an inmate report; investigations; discipline; medical and mental care; data collection and review; and audits.
Among other things, the proposed standards would require correctional agencies to:
- Ban cross-gender strip searches, and for juveniles, cross-gender pat-down searches;
- Check the backgrounds of new hires and not hire past abusers;
- Establish an evidence protocol to preserve evidence following an incident and train investigators to act promptly and diligently;
- Screen inmates through a process that takes into account their safety and assign them to housing in a way that best protects them;
- Provide multiple methods to report sexual abuse;
- Provide inmates access to outside victim advocates for emotional support services related to sexual abuse;
- Provide appropriate medical and mental health care to victims;
- Prepare a written policy mandating zero tolerance toward all forms of sexual abuse and sexual harassment;
- Discipline staff and inmate assailants appropriately, with termination as the presumptive disciplinary sanction for staff who have engaged in sexual touching;
- Train employees on their responsibilities in preventing, recognizing and responding to sexual abuse;
- Allow inmates a reasonable amount of time to file grievances so as to preserve their ability to seek legal redress after exhausting administrative remedies; and
- Conduct audits to assess compliance.
The Justice Department’s complete rule can be found online at: www.ojp.usdoj.gov/programs/pdfs/prea_nprm.pdf . Following publication in the Federal Register, the proposed rule will be available at www.regulations.gov , through which comments on the proposed rule may be submitted.
Once published, the standards will be immediately binding on the federal Bureau of Prisons. States that do not comply with the standards are subject to a five percent reduction in funds they would otherwise receive for prison purposes from the department unless the governor certifies that five percent of such funds will be used to enable compliance in future years.
Health Care Fraud Prevention and Enforcement Efforts Recover Record $4 Billion; New Affordable Care Act Tools Will Help Fight FraudRead the Press Release
WASHINGTON – Associate Attorney General Tom Perrelli and Department of Health and Human Services (HHS) Secretary Kathleen Sebelius today released a new report showing that the government’s health care fraud prevention and enforcement efforts recovered more than $4 billion in taxpayer dollars in Fiscal Year (FY) 2010. This is the highest annual amount ever recovered from people who attempted to defraud seniors and taxpayers, or from those who sought payments to which they were not entitled. In addition, HHS today announced new rules authorized by the Affordable Care Act that will help the department prevent and fight fraud, waste and abuse in Medicare, Medicaid and the Children’s Health Insurance Program (CHIP).
These findings, released today, in the annual Health Care Fraud and Abuse Control Program (HCFAC) report, are a result of President Obama making the elimination of fraud, waste and abuse a top priority in his administration. The success of this joint Department of Justice and HHS effort would not have been possible without the Health Care Fraud Prevention & Enforcement Action Team (HEAT), created in 2009 to prevent waste, fraud and abuse in the Medicare and Medicaid programs, and to crack down on the fraud perpetrators who are abusing the system and costing American taxpayers billions of dollars. These efforts to reduce fraud will continue to improve with the new tools and resources provided by the Affordable Care Act, including the new rules announced today.
“Our aggressive pursuit of health care fraud has resulted in the largest recovery of taxpayer dollars in the history of the Justice Department,” said Associate Attorney General Perrelli. “These actions are in large part because of the great work being led by the Health Care Fraud Prevention and Enforcement Action Team. Through this initiative, we are working in partnership with government, law enforcement and industry leaders, and the public to protect taxpayer dollars, control health care costs, and ensure the strength and integrity of our most essential health care programs.”
“President Obama has made it very clear that fraud and abuse of taxpayers’ dollars are unacceptable. And for too long, our fraud prevention efforts have focused on chasing after taxpayer dollars after they have already been paid out,” said Secretary Sebelius. “Thanks to the President’s leadership and the new tools provided by the Affordable Care Act, we can focus on stopping fraud before it happens.”
HCFAC Report
More than $4 billion stolen from federal health care programs was recovered and returned to the Medicare Health Insurance Trust Fund, the Treasury and others in FY 2010. This is an unprecedented achievement for HCFAC, a joint effort of the two departments to coordinate federal, state and local law enforcement activities to fight health care fraud and abuse.
The Affordable Care Act provides additional tools and resources to help fight fraud that will help boost these efforts, including an additional $350 million for HCFAC activities. The administration is already using tools authorized by the Affordable Care Act, including enhanced screenings and enrollment requirements, increased data sharing across government, expanded overpayment recovery efforts and greater oversight of private insurance abuses.
The Departments of Justice and HHS have enhanced their coordination through HEAT and have expanded Medicare Fraud Strike Force teams since 2009. The departments hosted a series of regional fraud prevention summits around the country, and sent letters to state attorneys general urging them to work with HHS and federal, state and local law enforcement officials to mount a substantial outreach campaign to educate seniors and other Medicare beneficiaries about how to prevent scams and fraud. During FY 2010, HEAT and the Medicare Fraud Strike Force expanded local partnerships and helped educate Medicare beneficiaries about how to protect themselves against fraud.
In FY 2010, the total number of cities with strike force prosecution teams was increased to seven, all of which have teams of investigators and prosecutors dedicated to fighting fraud. The strike force teams use advanced data analysis techniques to identify high-billing levels in health care fraud hot spots so that interagency teams can target emerging or migrating schemes along with chronic fraud by criminals masquerading as health care providers or suppliers. Strike force enforcement accomplishments in all seven cities during FY 2010 include:
· 140 indictments involving charges filed against 284 defendants who collectively billed the Medicare program more than $590 million;
· 217 guilty pleas negotiated and 19 jury trials litigated, winning guilty verdicts against 23 defendants; and
· 146 defendants were sentenced to prison during the fiscal year, averaging more than 40 months of incarceration.
Including strike force matters, federal prosecutors opened 1,116 criminal health care fraud investigations as of the end of FY 2010, and filed criminal charges in 488 cases involving 931 defendants. A total of 726 defendants were convicted for health care fraud-related crimes during the year.
In addition to these criminal enforcement successes, 2010 was a record year for recoveries obtained in civil health care matters brought under the False Claims Act—more than $2.5 billion, which is the largest in the history of the Department of Justice.
The HCFAC annual report can be found here, oig.hhs.gov/publications/hcfac.asp . For more information on the joint DOJ-HHS Strike Force activities, visit: www.StopMedicareFraud.gov/
New Affordable Care Act Rules to Fight Fraud
Today, HHS also announced new rules authorized by the Affordable Care Act which will help stop health care fraud. The provisions of the Affordable Care Act implemented through this final rule include new provider screening and enforcement measures to help keep bad actors out of Medicare, Medicaid and CHIP. The final rule also contains important authority to suspend payments when a credible allegation of fraud is being investigated.
“Thanks to the new law, CMS now has additional resources to help detect fraud and stop criminals from getting into the system in the first place,” said Centers for Medicare and Medicaid Services (CMS) Administrator Donald Berwick, M.D. “The Affordable Care Act’s new authorities allow us to develop sophisticated, new systems of monitoring and oversight to not only help us crack down on fraudulent activity scamming these programs, but also help us to prevent the loss of taxpayer dollars across the board for millions of American health care consumers.”
A copy of the regulation is on display today at the Federal Register and may be downloaded from the following link: www.ofr.gov/inspection.aspx . Several days after the regulation is published, the preceding link will be deactivated and the published version of the regulation will be available on the National Archives website at www.archives.gov/federal-register/news.html. CMS will continue to take public comments on limited areas of this final rule for 60 days.
More information can be found at www.HealthCare.gov, a web portal made available by the U.S. Department of Health and Human Services. A fact sheet on the new rules is available at www.HealthCare.gov/news/factsheets .
Attorney General Holder Joins President Obama, Administration Officals to Announce Presidential Initiative Supporting Military FamiliesRead the Press Release
WASHINGTON – Attorney General Eric Holder today joined President Barack Obama and other administration officials to announce the presidential initiative aimed at establishing a coordinated and comprehensive federal approach to supporting military families. Strengthening Our Military Families: Meeting America’s Commitment is the result of an effort led by the National Security Staff and Domestic Policy Council responding to the Presidential Study Directive-9 calling on all members of the cabinet and other agency heads to find better ways to provide our military families with the support they deserve.
As part of the presidential initiative, the Justice Department today identified three strategic priorities to better serve our military families.
“Our military men and women have served the cause of justice across this country and around the world – in areas of great danger and in times of urgent need,” said Attorney General Eric Holder. “The Department of Justice is committed to supporting our military members, families and veterans, and the President’s initiative is an important step in addressing the primary challenges facing military families.”
The three strategic priorities announced by the Justice Department today include:
• Assisting in the development and enhancement of veterans courts around the nation, focusing on those military veterans and families with substance abuse and mental health needs. In response to the growing need for veterans courts, Bureau of Justice Assistance provided funding to the National Drug Court Institute to create and deliver a curriculum for “veterans only” drug courts. Training and technical assistance dollars have already been reallocated to address this growing need. The first Veterans Drug Court Planning Initiative occurred in October 2010 and due to the high demand, a second planning initiative will be held in February 2011.
• Working collaboratively with other federal agencies to enforce the federal laws that protect the civil rights of service members. The department will continue to coordinate with the Department of Defense and any other appropriate agencies to ensure military families are aware of their rights under the Uniformed Services Employment and Reemployment Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the Service members Civil Relief Act and the Americans with Disabilities Act.
• Coordinating with the Justice Department’s Office of Violence against Women to enhance communication between civilian and military agencies to combat domestic violence and sexual assault.
The presidential initiative will also help to ensure that the U.S. military recruits and retains America’s best; service members can maintain both strong families and high states of readiness; family members can live fulfilling lives while supporting their service member(s); and the American people better understand and appreciate the experience strength and commitment of those who serve and sacrifice on their behalf.
21 January 2011
Mobile, Alabama, Man Sentenced on Federal Civil Rights and Weapons Charge Related to Desecration of SynagogueRead the Press Release
WASHINGTON – A judge sentenced Thomas Hayward Lewis to 12 months and one day in prison, followed by three years of supervised release, for violating the civil rights of congregants of the Congregation Tree of Life Messianic Synagogue, as well as possession of an unregistered firearm, the Justice Department announced.
Lewis, 24, of Mobile, Ala., pleaded guilty last year to violating one count of the Church Arson Act by defacing the Congregation Tree of Life Messianic Synagogue with threatening graffiti and neo-Nazi markings. Lewis admitted in court that between the late night of Jan. 3, 2009, and the early morning of Jan. 4, 2009, he and an accomplice, Christian Rodney Ice, spray painted the synagogue with anti-Semitic graffiti and neo-Nazi markings. Lewis also pleaded guilty to unlawful possession of an unregistered firearm. Ice, who also pleaded guilty to violating the Church Arson Act, is currently serving a two-year probation sentence.
"Threats against religious institutions and their members have no place in this country and will not be tolerated," said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. "This case should send a clear message to others who would carry out similar criminal acts that they will be held accountable for their actions."
"The U.S. Attorney’s Office is committed to the protection of our citizens’ civil rights. The U.S. Constitution’s guarantee of freedom of religion is one of our citizen’s most sacred civil rights," said U.S. Attorney for the Southern District of Alabama Kenyen R. Brown.
This case was investigated by the FBI and the city of Mobile Police Department. This case was prosecuted by Assistant U.S. Attorney John Cherry of the U.S. Attorney’s Office for the Southern District of Alabama and Trial Attorney D. W. Tunnage of the Civil Rights Division’s Criminal Section.
Michigan Man Sentenced 48 Months for Attempting to Spy for the People’s Republic of ChinaRead the Press Release
WASHINGTON – Glenn Duffie Shriver, 29, of Grand Rapids, Mich., was sentenced today to 48 months in prison for conspiring to provide national defense information to intelligence officers of the People’s Republic of China (PRC).
Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, and David Kris, Assistant Attorney General for National Security, made the announcement after sentencing by U.S. District Court Judge Liam O’Grady.
On Oct. 22, 2010, Shriver pleaded guilty to a one-count criminal information charging him with conspiracy to communicate national defense information to a person not entitled to receive it.
“Mr. Shriver sold out his country and repeatedly sought a position in our intelligence community so that he could provide classified information to the PRC,” said U.S. Attorney MacBride. “Attempts to gain access to sensitive information are a serious threat to our national security. We are doing everything in our power to find and punish those who seek to betray our country.”
According to a statement of facts filed with his plea agreement, Shriver is proficient in Mandarin Chinese and lived in the PRC both as an undergraduate student and after graduation. While living in Shanghai in October 2004, Shriver developed a relationship with three individuals whom he came to learn were PRC intelligence officers. At the request of these foreign agents, Shriver agreed to return to the United States and apply for positions in U.S. intelligence agencies or law enforcement organizations.
Shriver admitted in court that he knew that his ultimate objective was to obtain a position with a federal department or agency that would afford him access to classified national defense information, which he would then transmit to the PRC officers in return for cash payments.
From 2005 to 2010, Shriver attempted to gain employment as a U.S. Foreign Service Officer with the Department of State and as a clandestine service officer with the Central Intelligence Agency. Shriver admitted that, during this time, he maintained frequent contact with the PRC intelligence officers and received more than $70,000 in three separate cash payments for what the officers called his “friendship.”
In December 2009, Shriver received notice that he was to report to Washington, D.C., in May 2010 for employment processing activities with the CIA. Shriver admitted that he communicated with a PRC intelligence officer that he was “making some progress” in obtaining a position with the CIA and that he would not be free to travel to PRC for another meeting because it could raise suspicion with federal agents conducting his background investigation.
Shriver admitted that he made false statements on the CIA questionnaire required for employment stating that he had not had any contact with a foreign government or its representative during the last seven years, when in fact he had met in person with one or more of the officers approximately 20 times since 2004. He also deliberately omitted his travel to PRC in 2007 when he received a $40,000 cash payment from the PRC for applying to the CIA. In addition, Shriver made false statements during a series of screening interviews at the CIA, and he admitted he made each of the false statements to conceal his illicit relationship with the PRC intelligence officers.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Stephen M. Campbell of the U.S. Attorney’s Office for the Eastern District of Virginia and Trial Attorney Brandon L. Van Grack of the Counterespionage Section in the National Security Division are prosecuting the case.
Justice Department Commemorates 50th Anniversary of Robert F. Kennedy’s Swearing-In as Attorney General with Kennedy Family, Civil Rights Leaders and Former EmployeesRead the Press Release
WASHINGTON – In honor of the 50th anniversary of Robert F. Kennedy’s swearing-in as the nation’s 64th Attorney General, the Justice Department today welcomed Kennedy family members, including Ethel Kennedy, renowned civil rights leaders, historians and current and former Justice Department employees to pay tribute to Attorney General Kennedy’s service.
The two-hour event celebrated the accomplishments of Kennedy’s tenure from January 1961 to September 1964, focusing on his strong commitment to protecting the civil rights of all Americans and the department’s dedicated efforts to combat organized crime. The event was held in the Great Hall of the department’s main building, the Robert F. Kennedy Justice Building, named after the late Attorney General in 2001.
“Attorney General Kennedy championed the cause of the least among us – and made our nation more just, more fair, and more humane. He was not afraid to dream a better world and to act to create it,” said Attorney General Eric Holder. “ As we celebrate Robert Kennedy’s life and his impact on this Department, let us also commit ourselves to carrying on – and carrying out – his mission to make gentle the life of this world, and to make good on the promise of our nation.”
The celebration included remarks from Attorney General Eric Holder and Kathleen Kennedy Townsend, Attorney General Kennedy’s daughter and the former Lieutenant Governor of Maryland.
Following the remarks and a video retrospective, Jack Rosenthal, a chief press officer at the Justice Department under Attorney General Kennedy, moderated a panel discussion featuring John Seigenthaler, Administrative Assistant to Attorney General Kennedy; John Doar, the First Assistant of the Civil Rights Division during the Kennedy Administration; distinguished journalist Charlayne Hunter-Gault, who was the first African American to graduate from the University of Georgia; and Congressman John Lewis. After the panel, former Attorney General Nicholas Katzenbach, who served as Deputy Attorney General under Attorney General Kennedy, shared a special video message.
Former Justice Department leaders were present in the audience, including former attorneys general, assistant attorneys general, first assistants and personal aides to Attorney General Kennedy.
Protecting voter registration laws was a priority for Kennedy. During his tenure, the Civil Rights Division brought 57 voting rights lawsuits. In 1961, Kennedy sent U.S. Marshals to Montgomery, Ala., to protect the “freedom riders,” who rode buses in the South to desegregate interstate transportation. Kennedy also established the first coordinated federal law enforcement program to prosecute organized crime. While he was attorney general, the organized crime conviction rate increased dramatically.
A compilation of photographs from the tenure of Attorney General Kennedy are available at www.justice.gov/css-gallery/gallery-rfk.html .
An archive of speeches and statements from the tenure of Attorney General Kennedy are available at www.justice.gov/ag/rfk-speeches.html .
For more information about the legacy of Robert F. Kennedy, visit www.rfkcenter.org/ .
Related Resources:
- Speeches of Attorney General Robert F. Kennedy, 1961-1964
- Photos of Attorney General Robert F. Kennedy, from the Justice Department archives.
- Attorney General Holder's full remarks at the event to honor Attorney General Robert F. Kennedy
Former Controller of a Miami-Dade County Telecommunications Company Sentenced to 24 Months in Prison for His Role in Foreign Bribery SchemeRead the Press Release
WASHINGTON - The former controller of a Miami-Dade County, Fla., telecommunications company was sentenced to 24 months in prison for his participation in a conspiracy to pay and conceal bribes to former Haitian government officials, announced Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; and Daniel W. Auer, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI) Miami Field Office.
Antonio Perez, 52, of Miami was also ordered by U.S. District Court Judge Jose E. Martinez to serve two years of supervised release following his prison term, and to forfeit $36,375. Perez pleaded guilty on April 27, 2009, to conspiring to making corrupt payments for a Miami-Dade County telecommunications company to officials of the Republic of Haiti’s state-owned national telecommunications company, Telecommunications D’Haiti, in violation of Foreign Corrupt Practices Act (FCPA) and money laundering laws.
In his guilty plea, Perez admitted to conspiring to make corrupt payments to foreign government officials for the purpose of securing business advantages for the telecommunications company from Telecommunications D’Haiti. According to court documents, Perez conspired with Robert Antoine, the former director of international relations for Telecommunications D’Haiti and Juan Diaz, the owner of J.D. Locator Services, along with others. Perez and his co-conspirators concealed the bribe payments in part by conducting financial transactions that involved wiring money to shell companies and mislabeling invoices, checks and ledgers. Perez admitted that he was personally involved with two bribe payments totaling approximately $36,375.
On July 30, 2010, Diaz was sentenced to 57 months in prison after pleading guilty to paying and concealing $1,028,851 in bribes to former Haitian government officials while serving as an intermediary for three private telecommunications companies. Antoine admitted his acceptance of bribes, including bribes from Diaz, and pleaded guilty on March 12, 2010, to money laundering conspiracy. Antoine was sentenced to four years in prison.
Joel Esquenazi and Carlos Rodriguez, the owners of the telecommunications company where Perez worked, as well as Jean Rene Duperval, who was director of international relations for Telecommunications D’Haiti from June 2003 to April 2004, and Duperval’s sister, Marguerite Grandison, were indicted along with Antoine, on Dec. 4, 2009. Trial for these remaining defendants is scheduled to begin Feb. 28, 2011, in U.S. District Court in Miami. An indictment is merely an accusation, and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The Department of Justice is grateful to the government of Haiti for providing substantial assistance in gathering evidence during this investigation. In particular, Haiti’s financial intelligence unit, the Unité Centrale de Renseignements Financiers, the Bureau des Affaires Financières et Economiques, which is a specialized component of the Haitian National Police, and the Ministry of Justice and Public Security provided significant cooperation and coordination in the investigation.
The case is being prosecuted by Assistant U.S. Attorney Aurora Fagan of the U.S. Attorney’s Office for the Southern District of Florida, Senior Trial Attorney Nicola J. Mrazek of the Criminal Division’s Fraud Section and Trial Attorney Kevin Gerrity of the Criminal Division’s Asset Forfeiture and Money Laundering Section. The Criminal Division’s Office of International Affairs also provided assistance in this matter. The case was investigated by the IRS-CI Miami Field Office.
Former Chicago Police Officer Jon Burge Sentenced for Lying About Police TortureRead the Press Release
WASHINGTON - The Justice Department announced today that former Chicago Police Department Commander Jon Burge, 63, of Apollo Beach, Fla., was sentenced to 54 months in prison followed by three years of supervised release for lying in a deposition in a civil case about torture and abuse of suspects by Chicago Police Department officers. Burge’s sentence was an upward departure from the recommended Guidelines’ sentence.
Burge was convicted last June of two counts of obstruction of justice and one count of perjury stemming from false answers he gave in a civil case in 2003. In those answers, Burge denied ever using, or being aware of other officers using, any type of improper coercion, physical abuse or torture with suspects who were in custody at Chicago Police Department’s Area Two. However, evidence at trial showed that Burge abused multiple victims in Area Two, suffocating them with plastic bags; shocking them with electrical devices; and placing a loaded gun to their heads.
In a 23-year career with the Chicago Police Department, Burge rose through the ranks to commander before being fired in 1993 over allegations of abuse. Special prosecutors were appointed in 2002 to investigate claims of abuse by Burge and others. A four-year investigation concluded that the abuse was outside the statute of limitations. It was a pending civil suit that was the basis for the federal charges in this case.
“Burge abused his power and betrayed the public trust by abusing suspects in his custody, and then by lying under oath to cover up what he and other officers had done,” said Thomas E. Perez, Assistant Attorney General for the Civil Rights Division. “The department will aggressively prosecute any officer who violates the Constitution.”
“Today, we put to rest the decades of denials that torture of suspects in police custody occurred,” said Patrick J. Fitzgerald, U.S. Attorney for the Northern District of Illinois. “This sentence delivers a measure of justice, which Burge obstructed for so long.”
The case was prosecuted by Assistant U.S. Attorneys David Weisman and April Perry from the U.S. Attorney’s Office for the Northern District of Illinois and Trial Attorney Betsy Biffl from the Civil Rights Division of the U.S. Department of Justice.