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26 February 2009
17 Members and Associates of Violent Gang IndictedRead the Press Release
WASHINGTON – A federal grand jury in Lubbock, Texas, has charged 17 members and associates of the violent gang known as the Almighty Latin King and Queen Nation (ALKQN) with various charges related to their alleged narcotics and weapons trafficking violations, a well as a variety of alleged violent crimes throughout Texas, Acting Assistant Attorney General of the Criminal Division Rita M. Glavin and Acting U.S. Attorney for the Northern District of Texas James T. Jacks announced today.
Four of the 17 defendants were arrested last night and today in Lubbock, Midland, Big Spring, and Mission, Texas, as well as in Chicago. Eleven defendants are already in federal or state custody on related and unrelated charges. Two are considered fugitives. The defendants arrested today will make their initial appearance in Abilene, Texas, before U.S. Magistrate Philip R. Lane, on Friday, Feb. 27, 2009.
The 11-count indictment, returned earlier this month and unsealed today, charges each of the defendants with conspiracy to distribute and possession with intent to distribute cocaine and marijuana. Three defendants are also charged with conspiring to deal in firearms. The indictment also includes drug distribution charges and various firearms charges, including using and carrying a firearm to commit murder during and in relation to a drug trafficking crime.
"The message this indictment sends not just to these defendants but to those who support and participate in gangs is that with the cooperation of our law enforcement partners at the federal, state and local level, we will work tirelessly to protect our communities and punish those who seek to corrupt them through violence and gun and drug trafficking," said Acting Assistant Attorney General of the Criminal Division Rita M. Glavin.
Acting U.S. Attorney Jacks said, "Regardless of what dramatic name they attached to their group, criminal gangs are just that – criminals. Like most criminals, their illegal activities of drug dealing and engaging in violent crime are a cancer on our communities; communities comprised of honest, hard working people who are simply trying to earn a living, raise their families and live in peace. As evidenced by this action, law enforcement is committed to removing that cancer through determined investigative effort and the cooperation of local, state and federal law enforcement agencies as was done in this case. All of these agencies, with the help and support of the community, will continue to pursue these groups until they are no longer a part of our environment."
The defendants arrested today are:
- Jesus Martinez, a/k/a Solid, 28, of Midland
- John Guzman, 30, of Big Spring
- Hiluterio Chavez, a/k/a Zeus, 33, of Chicago
Eliseo Perez, a/k/a Wicked, 28, of Mission, Texas was arrested Wednesday night.
Defendants indicted but not yet arrested are:
- Guerrero Olivas, a/k/a Screech, 26, of Big Spring
- Michael Conde, a/k/a Psycho, 21, of Lubbock
- Defendants previously arrested include:
- Jose Robledo Nava, a/k/a Chino, 30, of Lubbock
- Luis Nava, a/k/a Flaco, 25, of Midland
- Reynaldo Nava, a/k/a Rat, 27, of Big Spring
- Robert Allen Ramirez, a/k/a Nesyo, 27, of Big Spring
- Marie Chavez, a/k/a Shorty, 28, of Lubbock
- Carol Ann Rivas Nava, 20, of Big Spring
- Cecily Dominique Juarez, 20, of Midland
- James Jonathan Cole, a/k/a Blitz, 19, of Lamesa, Texas
- Eduardo Daniel Mares, a/k/a Pitt, 21, of Seminole, Texas
- Gabriel Lee Gonzales, 21, of Fort Stockton, Texas
- David Hellums, a/k/a CutThroat, 35, of Big Spring
The indictment alleges that from 2001 until Dec. 13, 2008, when six of the defendants were arrested, the defendants, as members of the ALKQN, conspired to distribute multi-kilogram quantities of cocaine and marijuana throughout Texas and elsewhere. They acquired, packaged, stored, and transported the cocaine and marijuana, and according to court documents filed in the case, imported the narcotics from Mexico into the South Texas region, and then on to Big Spring, Lubbock, and Midland for further distribution. In furtherance of their conspiracy, one or more of the defendants is alleged to have committed numerous acts of violence, including murder, aggravated assault and arson.
During part of the time of the conspiracy, from 2004 through mid-July 2005, defendants Jose Robledo Nava, Jesus Martinez, and Hiluterio Chavez are alleged to have conspired to deal in firearms. They allegedly acquired the firearms, stored and transported them, and traded them for cocaine. Court documents filed in the case allege that the defendants illegally transported and trafficked the firearms throughout Texas and Chicago.
Jose Robledo Nava is allegedly the ALKQN leader in Texas. He, along with James Johnathan Cole, Robert Allen Ramirez, Gabriel Lee Gonzales and Eduardo Daniel Mares are charged in the indictment with the May 4, 2008, murders of Valerie Garcia and Michael Cardona, in Big Spring.
According to an affidavit supporting a criminal complaint filed in the case, on May 4, 2008, Jose Nava allegedly directed James Cole and Robert Ramirez to go in two vehicles to conduct a drive-by shooting on their rivals. Robert Ramirez was to be the passenger in the lead vehicle to confirm the targets, and James Johnathan Cole, armed with an AK-47, was to be the shooter in the following vehicle, which was to be driven by Gabriel Lee Gonzales.
With Ramirez and Eduardo Daniel Mares in the lead vehicle and Cole and Gonzales following in the second vehicle, after Ramirez and Mares passed the house of the rival gang members, Ramirez allegedly called Gonzales’ cell phone and conveyed Jose Nava’s previous order to him. The shooter fired into a crowd of people, striking six persons, including a pregnant woman and a three-year-old girl. Two of those victims, the pregnant woman and one of three men shot, died of their wounds.
The affidavit states that Ramirez, Mares, Cole and Gonzales then allegedly drove the two vehicles to a body shop where Cole retrieved the spent AK-47 shell casings and discarded them. Cole, Ramirez and Mares then drove to a fellow ALKQN residence where Cole admitted shooting the AK-47 and killing at least one person at the residence where the narcotics trafficking rivals were located.
An indictment is merely an accusation by a federal grand jury and a defendant is entitled to the presumption of innocence unless proven guilty. However, if convicted, defendants Nava, Cole, Ramirez, Gonzales and Mares each face a maximum statutory sentence of death or life in prison. The remaining defendants face a maximum statutory sentence of life in prison and a fine of up to $4 million.
While stating the investigation is ongoing, acting U.S. Attorney Jacks praised the excellent investigative efforts of the Organized Crime Drug Enforcement Task Force, the Midland and El Paso U.S. Attorney’s Offices, DEA, FBI, ICE, ATF, U.S. Marshals Service, Texas Department of Public Safety, Lubbock Police Department, Lubbock County Sheriff’s Office, Midland Police Department, Houston Police Department, Big Spring Police Department, and the Howard County District Attorney’s Office.
Assistant U.S. Attorney Cody L. Skipper of the Lubbock U.S. Attorney’s Office and Trial Attorney Joseph A. Cooley of the Department of Justice’s Criminal Division’s Gang Unit are prosecuting the case.
Indictment
25 February 2009
United States Sues to Stop Florida Tax Return Preparer from Claiming Allegedly Bogus Tax CreditsRead the Press Release
WASHINGTON - The United States has sued Robert Cusenza, a West Palm Beach tax return preparer, seeking to bar him permanently from the tax preparation business, the Justice Department announced today. The government’s complaint asks the court to order Cusenza to stop preparing returns and to turn over his customer list to the Justice Department.
According to the government complaint, Cusenza, who operates C R Insurance Agency Inc., has prepared tax returns claiming nearly $200,000 in false fuel tax credits alone. The complaint also alleges that Cusenza prepared returns that fabricated his customers’ income and/or expenses in order to maximize the earned income tax credit and obtain refunds for his customers.
The fuel tax credit is a credit available only to taxpayers who operate farm equipment or other off-highway business vehicles. The equipment or vehicles must not be registered for highway uses; meaning, that fuel purchased by truck drivers and companies for commercial transport does not qualify. The government complaint alleges that Cusenza fraudulently claims this credit for highway drivers who are not qualified to receive the credit. Moreover, according to the complaint, Cusenza claimed absurdly large credits for his customers by falsely reporting purchases of huge quantities of gasoline. For example, the complaint asserts that Cusenza claimed that one customer purchased 48,000 gallons of gasoline for "off-highway business use of gasoline" and "other nontaxable use of gasoline." The complaint further asserts that, assuming $2.00 per gallon, the customer would have had to spend approximately $96,000 to purchase that amount of gasoline, despite reporting only $12,012 in income.
The complaint also alleges that Cusenza claimed a variety of other bogus deductions, like home mortgage interest. On one return, detailed in the complaint, Cusenza claimed that a husband and wife who collectively made $17,878 in wages and $780 in business income had the means to pay and were entitled to deduct $2,132,287 in interest on their home mortgage.
Over the past decade, the Justice Department has obtained injunctions against more than 375 tax return preparers and tax-fraud promoters. Information about the Justice Department’s Tax Division and its efforts to enjoin tax return preparers and tax-fraud promoters is available on the Justice Department Web site.
United States Sues to Shut Down Florida Tax Return PreparerRead the Press Release
WASHINGTON - The United States has filed suit against a Jacksonville, Fla., tax return preparer, seeking to shut down her business, the Justice Department announced today. According to the government complaint, Shirley Clark, who operates the Nichet Corp., has prepared at least 1,250 federal tax returns for her customers from 2004 until 2007 and, on those returns, Clark has claimed nearly $750,000 in fraudulent fuel tax credits. The complaint also alleges that Clark prepared returns that fabricated her customers’ income and expenses in order to fraudulently maximize the earned income tax credit (EITC).
The fuel tax credit is a credit available only to taxpayers who operate farm equipment or off-highway business vehicles. The complaint alleges that Clark fraudulently claims this credit for truck drivers who are not qualified to receive the credit. Moreover, the complaint asserts that Clark claimed absurdly large credits by falsely reporting purchases of huge quantities of gasoline; in most cases, the cost of the gasoline was more than the customers’ annual income.
Clark, according to the complaint, also fabricated earned income and/or expenses for her customers in order to attain the "sweet spot" and improperly maximize their earned income tax credit. As an example, the complaint details how Clark engaged in a pattern of using fabricated beauty salon or beautician income on Schedules C to hit the EITC sweet spot. The complaint asserts that Clark listed business income for fake salons that purportedly had no cost of goods sold and no expenses. In most cases, according to the complaint, without the fake earned income and/or expenses, her customers would not have earned enough to qualify for the earned income tax credit.
The complaint asks the court to order Clark to stop preparing returns and to turn over her customer list to the Justice Department. In the past decade, the Justice Department has obtained injunctions against more than 375 tax return preparers and tax-fraud promoters. Information about the Justice Department’s Tax Division and its efforts to enjoin tax return preparers and tax-fraud promoters is available on the Justice Department Web site.
United States Files Complaint Against Forest Laboratories for Allegedly Violating the False Claims ActRead the Press Release
WASHINGTON – A Complaint was unsealed today in U.S. District Court in Massachusetts against a New York pharmaceutical company for alleged False Claims Act violations arising from the company’s marketing the drugs Celexa and Lexapro for unapproved pediatric use and for paying kickbacks to induce physicians to prescribe the drugs.
Acting Assistant Attorney General Michael F. Hertz; United States Attorney Michael J. Sullivan; Warren T. Bamford, Special Agent in Charge of the Federal Bureau of Investigation - Boston Field Division; Susan J. Waddell, Special Agent in Charge of Health and Human Services - Office of Inspector General, Office of Investigations; Mark Dragonetti, Resident Agent in Charge of the Food and Drug Administration, Office of Investigations - Office of Inspector General; and Jeffrey Hughes, Special Agent in Charge of the Northeast Field Office of the Veterans Affairs Office of the Inspector General, announced that the civil Complaint against Forest Laboratories Inc., of New York, New York, alleged that the company’s illegal promotional practices surrounding its antidepressant drugs Celexa and Lexapro caused thousands of false and fraudulent claims to be submitted to federal health care programs.
The Complaint alleges that a double-blind, placebo-controlled, pediatric trial found Celexa no more effective than the placebo for pediatric use and that, in the study, more patients taking Celexa attempted suicide or reported suicidal thoughts than those in the group taking the placebo. The negative efficacy data led the FDA to deny Forest’s request to approve Celexa for pediatric use. It is further alleged that, despite the FDA’s denial of a pediatric indication, Forest actively promoted pediatric use of the drugs and misled physicians and the public by failing to disclose the results of the negative study. The same study was among those later considered by the FDA when it mandated that Forest add a "black box" warning to both the Celexa and Lexapro labels.
The Complaint alleges that Forest sought to induce physicians and others to prescribe Celexa and Lexapro by providing them with various forms of illegal remuneration, including cash payments disguised as grants or consulting fees, expensive meals and lavish entertainment and other valuable goods and services, all in violation of the federal anti-kickback statute.
Neither Medicaid nor TRICARE ordinarily cover drugs for off-label uses unless the off-label use is for a medically accepted indication. The United States alleges that federal health care programs have paid thousands of false and fraudulent claims for Celexa and Lexapro prescriptions that were not covered for off-label pediatric use and/or were ineligible for payment as a result of illegal kickbacks paid by Forest.
Prior to filing its Complaint, the government had intervened in two separate whistleblower actions against Forest that had been commenced under the qui tam provisions of the False Claims Act. The False Claims Act allows for private persons to file whistleblower suits to provide the government information about wrongdoing. Under the statute, if it is established that a person has submitted or caused others to submit false or fraudulent claims to the United States, the government can recover treble damages and $5,500 to $11,000 for each false or fraudulent claim filed. If the Government is successful in resolving or litigating its claims, a proper whistleblower can receive a share of between 15 percent and 25 percent of the amount recovered.
This investigation was conducted by the U.S. Attorney’s Office for the District of Massachusetts, the Civil Division of the U.S. Department of Justice, the Federal Bureau of Investigation, the Office of Inspector General of the Department of Health and Human Services, the Office of Criminal Investigations of the Food and Drug Administration and the Office of Inspector General of the Department of Veteran’s Affairs.
Justice Department Settles Lawsuit Alleging Military Discrimination Against the North Carolina Administrative Office of the Courts and Senior Resident Court JudgeRead the Press Release
WASHINGTON – The Justice Department announced today that it has reached a settlement that, if approved by the court, will resolve a lawsuit filed by the Department against the Administrative Office of the Courts of the State of North Carolina and the Honorable Jerry Braswell, Senior Resident Superior Court Judge for North Carolina Judicial District 8-B, in his official capacity.
The complaint, filed by the Department on Nov. 14, 2008, in U.S. District Court in Raleigh, N.C., alleged that the defendants discriminated against former magistrate James L. Myles when they failed to reappoint Myles to an additional term as a magistrate due to his service in the U.S. Army Reserve, in violation of the Uniformed Services Employment and Reemployment Rights Act in 1994 (USERRA). USERRA prohibits employment discrimination against individuals because of their service or service obligation in the uniformed services. Under the terms of the settlement, the defendants are required to pay Myles a monetary award of $12,000 that includes back pay.
"The Department demonstrates again with this settlement that it will vigorously defend the rights of service members to be free from discrimination based on their military service and obligation," said Acting Assistant Attorney General Loretta King of the Civil Rights Division.
The Justice Department’s lawsuit was filed after receiving Myles’s complaint from the Veterans’ Employment and Training Service of the Department of Labor (DOL), upon completion of its investigation.
The Department’s Civil Rights Division places a high priority on the enforcement of service members’ rights under USERRA. Additional information about USERRA can be found on the Department of Justice Web site at: http://www.servicemembers.gov, and on the DOLWeb site at: http://www.dol.gov/vets/programs/userra/main.htm.
Hundreds of Alleged Sinaloa Cartel Members and Associates Arrested in Nationwide Takedown of Mexican Drug TraffickersRead the Press Release
WASHINGTON – Today Attorney General Eric H. Holder Jr., announced the arrest of more than 750 individuals on narcotics-related charges and the seizure of more than 23 tons of narcotics as part of a 21-month multi-agency law enforcement investigation known as "Operation Xcellerator." The Attorney General was joined in announcing the current results of Operation Xcellerator by DEA Acting Administrator Michele M. Leonhart.
Today, 52 individuals in California, Minnesota and Maryland were arrested as part of Operation Xcellerator, which targeted the Sinaloa Cartel, a major Mexican drug trafficking organization, through coordination between federal, state and local law enforcement, as well as cooperation with authorities in Mexico and Canada.
The Sinaloa Cartel is responsible for bringing multi-ton quantities of narcotics, including cocaine and marijuana, from Mexico into the United States through an enterprise of distribution cells in the United States and Canada. The Sinaloa Cartel is also believed to be responsible for laundering millions of dollars in criminal proceeds from illegal drug trafficking activities. Individuals indicted in the cases are charged with a variety of crimes, including: engaging in a continuing criminal enterprise by violating various felony provisions of the Controlled Substances Act; conspiracy to import controlled substances; money laundering; and possession of an unregistered firearm.
"International drug trafficking organizations pose a sustained, serious threat to the safety and security of our communities," said Attorney General Holder. "As the world grows smaller and international criminals step up their efforts to operate inside our borders, the Department of Justice will confront them head on to keep our communities safe."
To date, Operation Xcellerator has led to the arrest of 755 individuals and the seizure of approximately $59.1 million in U.S. currency, more than 12,000 kilograms of cocaine, more than 16,000 pounds of marijuana, more than 1,200 pounds of methamphetamine, more than 8 kilograms of heroin, approximately 1.3 million pills of Ecstasy, more than $6.5 million in other assets, 149 vehicles, 3 aircraft, 3 maritime vessels and 169 weapons.
"We successfully concluded the largest and hardest hitting operation to ever target the very violent and dangerously powerful Sinaloa drug cartel," said DEA Acting Administrator Michele M. Leonhart. "From Washington to Maine, we have disrupted this cartel’s domestic operations—arresting U.S. cell heads and stripping them of more than $59 million in cash—and seriously impacted their Canadian drug operations as well. DEA will continue to work with our domestic and international partners to shut down the operations of the Sinaloa cartel and stop the ruthless violence the traffickers inflict on innocent citizens in the U.S., Mexico and Canada."
The 21-month investigation began shortly after the culmination of Operation Imperial Emperor, an investigation which resulted in the indictment of Organized Crime Drug Enforcement Task Force (OCDETF)-designated Consolidated Priority Organizational Target (CPOT) Victor Emilio Cazarez-Salazar, believed to be a command and control leader within the Sinaloa Cartel. CPOT Victor Cazarez-Salazar remains a fugitive.
As a result of today’s arrests, federal charges were unsealed against numerous individuals in California, Minnesota and Maryland. Cases resulting from Operation Xcellerator are being handled by prosecutors in 11 judicial districts, including the: Central District of California; Southern District of California, District of Minnesota; District of Maryland; Southern District of New York; District of Arizona; District of Massachusetts; Middle District of Pennsylvania; Northern District of Ohio; Western District of Texas; and Eastern District of California. Assistance for Operation Xcellerator was provided by the Criminal Division’s Narcotic and Dangerous Drug Section and Office of International Affairs. Additionally, local prosecutions will occur in Los Angeles, Orange County, Calif., and Riverside, Calif.
The investigative efforts in Operation Xcellerator were coordinated by the multi-agency Special Operations Division, comprised of agents and analysts from the DEA, FBI, U.S. Immigration and Customs Enforcement, Internal Revenue Service, U.S. Customs and Border Protection, U.S. Marshals Service, as well as attorneys from the Criminal Division’s Narcotic and Dangerous Drug Section. More than 200 federal, state, local and foreign law enforcement agencies contributed investigative and prosecutorial resources to Operation Xcellerator through OCEDTF.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Federal Court Permanently Bars Florida Tax Doctor from Preparing Tax ReturnsRead the Press Release
WASHINGTON - A federal court has permanently barred Harold Mette of Bradenton, Fla., from preparing federal income tax returns for others, the Justice Department announced today. Mette, who has a Ph.D. degree and calls his business "The Tax Doctor," consented to the permanent injunction order, which was entered by U.S. District Judge Richard A. Lazzara in U.S. District Court for the Middle District of Florida.
According to the government complaint, Mette promoted a sham home-based business scheme in the Manatee County area in Florida. The complaint alleges that Mette created a bogus corporation for each customer in order to fraudulently claim the customer’s non-deductible personal expenses as tax-deductible business expenses. Among the improper personal expenses allegedly claimed as deductions were customers’ personal utility bills, mortgage payments, car expenses, vacations, and children’s education expenses. The suit alleges that Mette deducted customers’ personal medical expenses as purported "incentive" payments on the corporation returns.
"Taxpayers should choose their preparer carefully and review their returns closely before signing to ensure that they are correct," said John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division. "If a preparer’s claim about a new way to save on taxes sounds too good to be true, it probably is."
Acting Assistant Attorney General DiCicco thanked Tax Division trial attorney Olivia R. Hussey, who handled the case for the government. During the past decade, the Justice Department has obtained injunctions against more than 375 tax return preparers and tax-fraud promoters. Information about these cases is available on the Justice Department Web site.
Falls Church, Va., Man Pleads Guilty to Harboring Indonesian Aliens for Financial GainRead the Press Release
WASHINGTON – Soripada Lubis, a naturalized American citizen originally from Indonesia, pleaded guilty today to harboring illegal aliens for commercial advantage and private financial gain, the Justice Department announced. Lubis’ wife, Siti Chadidjah Siregar, a citizen of Indonesia, pleaded guilty to making false statements to federal agents who were investigating the scheme.
According to the court documents, since at least 2000, Lubis and Siregar have kept up to 11 undocumented Indonesian women in their crowded basement. During the week, these women would live with and work as housekeepers for wealthy families in Potomac, Md. On the weekends, Lubis and Siregar transported the women back to their basement, where some of the women slept three to a bed. Lubis and Siregar also imposed various rules on the Indonesian women that restrained their freedom of movement and they confiscated the womens’ passports. Lubis and Siregar charged the women $375 per month for "rent" and transportation, plus fees for "taxes" and to send money to Indonesia. During the last five years, Lubis and Siregar made more than $90,000 from their enterprise.
When federal agents searched the defendants’ house in October 2008, they questioned Siregar about the Indonesian women. Siregar falsely told the agents that the women had requested that Siregar and Lubis keep their Indonesian passports.
In his guilty plea, Lubis admitted that he harbored between six and 24 aliens and that he was a leader and organizer of his enterprise. Lubis and Siregar also agreed to restitution for the Indonesian women.
"The Civil Rights Division vigorously investigates charges of labor trafficking and will prosecute those who are exploiting vulnerable aliens," said Loretta King, Acting Assistant Attorney General for the Civil Rights Division of the United States Department of Justice.
"For years, Soripada Lubis harbored vulnerable aliens in his home for his own financial gain," said Dana J. Boente, Acting U.S. Attorney for the Eastern District of Virginia. "Thanks to our law enforcement partners and those who cooperated with them, this criminal activity has been shut down."
"The recruitment, harboring and transportation of illegal aliens are very serious crimes that we will simply not tolerate" said Mark X. McGraw, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement (ICE), Office of Investigations, Washington, D.C. Field Office. "ICE strives to identify and bring to justice those who would engage in and profit by exploiting other human beings."
"Even the most innocent among us may blend into the scenery and be unseen victims," said Joseph Persichini, Jr., Assistant Director in Charge of the FBI Washington Field Office. "Suburban families who paid these women to clean likely never expected the abuses these women suffered as they tried to make a better life for themselves and their family."
At sentencing on May 15, 2009, Lubis faces up to 10 years in prison as well as an order to pay restitution to several women whom he hired out to work as maids. Siregar faces up to five years in prison at sentencing. A sentencing date has not yet been determined.
In fiscal year 2008, the Civil Rights Division and U.S. Attorneys’ Offices filed a record number of criminal civil rights cases, including record numbers of labor trafficking cases.
The investigation was conducted by ICE and the FBI. The case is being prosecuted by Assistant U.S. Attorney James P. Gillis and Civil Rights Division Trial Attorney Michael J. Frank.
24 February 2009
Two Oregon Men Plead Guilty to Federal Hate CrimeRead the Press Release
WASHINGTON - Gary Moss and Devan Klausegger of Medford, Ore., pleaded guilty today to conspiring to interfere with civil rights, announced Acting Assistant Attorney General Loretta King for the Civil Rights Division and U.S. Attorney Karin J. Immergut for the District of Oregon.
According to facts stipulated in their plea agreements and set forth in the indictment, on May 26, 2008, Moss poured a flammable liquid on the front lawn of the victims’ residence in the shape of a cross and the letters "KKK". Klausegger handed Moss a small explosive device that Moss used to ignite the flammable liquid. Moss and Klausegger admitted that this was done with the intent to interfere with the victims’ rights under the Fair Housing Act because one of the victims was African-American.
Moss and Klausegger were indicted by a federal grand jury on July 16, 2008.
"Bias-motivated acts of violence are offensive to our nation's fundamental values," said Loretta King, Acting Assistant Attorney General for the Civil Rights Division. "The Justice Department is committed to vigorously prosecuting the federal laws prohibiting violent acts motivated by hate."
"Crimes committed in the name of racial hatred tear at the very fabric of our society," said U.S. Attorney Karin J. Immergut. "All members of our society must be free to live without fear that they will be targeted because of their race."
Moss and Klausegger face a maximum punishment of 10 years in prison, up to three years of supervised release and a fine of up to $250,000.
Sentencing has been scheduled for May 5, 2009, before Judge Ann Aiken.
This case is being prosecuted by the Assistant U.S. Attorney Bud Fitzgerald and Trial Attorney Roy Conn from the Civil Rights Division.
Three Former Atlanta Police Officers Sentenced to Prison <br /> in Fatal Shooting of Elderly Atlanta WomanRead the Press Release
WASHINGTON - Three former Atlanta Police Department (APD) officers were sentenced to prison today by Chief U.S. District Judge Julie E. Carnes on a charge of conspiracy to violate civil rights resulting in death, arising from the fatal police shooting of Kathryn Johnston, a 92-year old Atlanta woman. Johnston was fatally shot at her home during the execution of a search warrant obtained by the defendants based upon false information on Nov. 21, 2006. The announcement was made by Acting Assistant Attorney General Loretta King of the Civil Rights Division; U.S. Attorney David E. Nahmias for the Northern District of Georgia; and Gregory Jones, Special Agent in Charge of the FBI’s Atlanta office.
Jason R. Smith, 36, of Oxford, Ga., was sentenced to 10 years in federal prison; Gregg Junnier, 42, of Woodstock, Ga., was sentenced to 6 years in federal prison; and Arthur Tesler, 42, of Acworth, Ga., was sentenced to 5 years in federal prison. There is no parole in the federal system. Each defendant was also sentenced to serve 3 years of supervised release following his prison term, and collectively to pay $8,180 in restitution for the costs of Johnston’s funeral and burying.
"The Justice Department is committed to vigorously prosecuting law enforcement officers who willfully disregard the Constitution and abuse their authority to violate the rights of others," said Acting Assistance Attorney General Loretta King. "This sort of unlawful behavior, resulting in Ms. Johnston's tragic death, undermines the efforts of law enforcement officers who honorably perform their duties."
In a news conference after the sentencing hearings, U.S. Attorney David E. Nahmias said in part, "As Atlanta police narcotics officers, these three defendants repeatedly failed to follow proper procedures and then lied under oath to obtain search warrants. Their routine violations of the Fourth Amendment led to the death of an innocent citizen. The death of Kathryn Johnson in a police shooting was a terrible tragedy for a law-abiding elderly woman, her family, and our entire community. But as her family and others hoped, from this tragedy have come two positive results. First, it has led the Atlanta Police Department to implement useful reforms in training and supervision and to entirely revamp its Narcotics Unit, reducing the possibility of a similar tragedy in the future. Second, the significant prison sentences imposed by the Court today should send a strong message to other law enforcement officers who may be tempted to lie under oath or otherwise violate the law. Officers who think, as these defendants once did, that the ends justify the means or that ‘taking shortcuts’ and telling lies will not be discovered and punished should realize that they are risking their careers and their liberty. And officers who try to obstruct justice when their misconduct faces exposure, rather than cooperating in the investigation, should realize that they will be face even more severe punishment."
Gregory Jones, Special Agent in Charge, FBI Atlanta, said, "This is a sad day in the law enforcement community. Few crimes are as reprehensible as those committed by police officers who violate the very laws they have sworn to uphold. Our thoughts and prayers are with the Johnston family, and we hope today's sentencing helps bring closure to this tradegy. Further, we want the public to know the FBI will continue to pursue and bring to justice those who violate their oaths of office and the civil rights of others."
Junnier and Smith pleaded guilty to the federal charge, as well as to voluntary manslaughter and related state charges in Fulton County, Ga., Superior Court, on April 26, 2007. According to their plea agreements, they will be sentenced in state court on March 5, 2009, to the same sentence imposed in federal court, with the sentences to be served concurrently. Tesler initially declined to plead guilty and was indicted in state court on charges of violation of oath of office by a public officer, false imprisonment and false statements. In 2008, Tesler was convicted at trial in state court on the false statement charges, but that conviction was reversed on appeal. Following the state trial, federal authorities re-evaluated Tesler’s case, conducted further investigation, and determined that federal prosecution of Tesler was appropriate. Tesler pleaded guilty to the federal charge on Oct. 30, 2008.
Junnier began cooperating truthfully with federal authorities shortly after the incident and provided valuable assistance in the investigation and prosecution of Smith and Tesler. Additionally, Junnier’s cooperation led to guilty pleas by two additional APD officers to federal charges, including the sergeant who commanded the narcotics team involved in the shooting. Smith cooperated to a more limited extent. Both former officers provided information relevant to a broader FBI investigation of misconduct by APD narcotics and other officers, which culminated in a report provided by the FBI to APD Chief Richard Pennington in October 2008 for consideration of potential administrative discipline against other APD officers. As a result of their cooperation, the court reduced Junnier’s sentence by 40 percent and Smith’s sentence by 20 percent. Tesler did not provide substantial assistance in the investigation and received no sentence reduction on that ground, although his sentence was reduced based on his lesser role in the conspiracy.
The facts and other details regarding the case are set forth in the Government’s sentencing memorandum.
This case was investigated by the FBI. The case was prosecuted by Assistant U.S. Attorney Jon-Peter Kelly, U.S. Attorney David E. Nahmias and Special Litigation Counsel Paige M. Fitzgerald of the Civil Rights Division.
Japanese Corporate Operator of Cargo Vessel Sentenced to Pay $1.75 Million for Conspiracy and Falsifying RecordsRead the Press Release
TAMPA, FLA. – U. S. District Judge Steven D. Merryday today sentenced the Japanese corporation Hiong Guan Navegacion Japan Co. Ltd., that operates the commercial cargo ship M/V Balsa-62, to three years probation and $1.75 million in penalties for conspiring to falsify and falsifying environmental compliance records, the Justice Department announced.
Four hundred thousand dollars of the $1.75 million that Hiong Guan must pay will go to the National Fish and Wildlife Foundation, which partners locally with the Pinellas County, Fla., Environmental Fund (PCEF). PCEF has funded numerous wide-ranging projects related to the protection, restoration and enhancement of fish and wildlife habitat in the Tampa Bay area. The court also ordered Hiong Guan to implement a detailed environmental compliance plan, including monitoring of its fleet-wide operations for the next three years, training for crew members, and engineering alterations to protect gulf and ocean waters.
On Nov. 20, 2008, Hiong Guan pleaded guilty to falsifying the "Oil Record Book" for the M/V Balsa-62. Federal and international law requires that all ships properly dispose of oily water and sludge by processing it through an oily-water separator and burning the sludge in the ship’s incinerator to avoid polluting ocean waters. Federal law also requires all ships traveling in United States waters to record accurately each disposal of oily water or sludge in an Oil Record Book, and to have the book available for inspection by the U.S. Coast Guard.
According to court documents, from Spring 2007 through February 2008, Francisco Bagatela, the chief engineer of the M/V Balsa-62, used a bypass pipe, which is referred to as a "magic pipe," to circumvent the pollution prevention equipment on board the ship and dump oily water and sludge directly overboard and into the ocean approximately twice a month. On Feb. 25, 2008, Robert Racho replaced Bagatela as chief engineer and continued using the magic pipe. The engineers used the pipe to dump oily water and sludge at night when the ship was underway, and they further concealed the discharges by not recording them in the ship’s Oil Record Book.
On Oct. 31, 2007, and again on May 31, 2008, the M/V Balsa-62 arrived in the Port of Tampa with its falsified Oil Record Book. The U.S. Coast Guard conducted an inspection of the ship on May 31, 2008, based in part on information from the ship’s crew. At that time, the officers on board presented the falsified book. The U.S. Coast Guard then located evidence on board the ship corroborating the crew members’ allegation that the ship had been unlawfully discharging oily waste.
Chief Engineers Bagatela and Racho both already have pleaded guilty to felony offenses relating to their falsification of the M/V Balsa-62's Oil Record Book. In December 2008, the court sentenced Bagatela to three years probation and a $1,500 fine and Racho to one year probation and a $1,000 fine.
"Hiong Guan is paying for failing to follow the law by, among other things, attempting to mislead the Coast Guard with falsified environmental-compliance records. Today’s substantial criminal fine and extensive environmental compliance plan should serve as deterrents to shipping companies and mariners who may consider violating the environmental laws that protect our oceans," said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.
Upon Hiong Guan’s sentencing, U.S. Attorney A. Brian Albritton stated, "Protecting our waters from pollution is crucial to our marine life as well as human life. The U.S. Coast Guard did a great job investigating and uncovering this filthy practice of allowing oily water to discharge from the Balsa-62. Fortunately, a large portion of the penalty the company has to pay will stay right here in the Tampa Bay area to restore and enhance our bay and gulf waters."
Captain Timothy Close, the Coast Guard Captain of the Port of Tampa, St. Petersburg and Manatee said, "The successful investigation and prosecution of this case by the U.S. Coast Guard and Department of Justice sends a clear message to owners and operators of commercial vessels that those who choose to intentionally pollute our oceans will be met with swift repercussions and stiff penalties. This case highlights the importance of Coast Guard boarding teams inspecting vessels for compliance with U.S. and international pollution prevention standards."
This case was investigated by the U.S. Coast Guard, Coast Guard Investigative Service. It was prosecuted by Leslie E. Lehnert, Trial Attorney for the Justice Department’s Environmental Crimes Section, Cherie L. Krigsman, Assistant U.S. Attorney for the Middle District of Florida and Lieutenant William George, U.S. Coast Guard.
Former Employee of the Export-Import Bank of the United States Charged with Corruption and Tax ViolationsRead the Press Release
WASHINGTON – A former employee of the Export-Import Bank of the United States (Ex-Im Bank) has been indicted on corruption and tax violations arising from her alleged receipt of a $100,000 bribe while working at the Ex-Im Bank, Acting Assistant Attorney General Rita M. Glavin of the Criminal Division and Acting U.S. Attorney Dana J. Boente for the Eastern District of Virginia announced today.
Maureen Njideka Edu, a/k/a Maureen N. Scurry, 42, of Potomac, Md., was indicted by a federal grand jury in Washington on Feb. 20, 2009, for conspiring to solicit and accept bribes and to deprive the United States and the Ex-Im Bank of her honest services, as well as substantive counts of bribery, honest services wire fraud and filing a false tax return. The indictment, which was unsealed today following Edu’s arrest, also seeks the forfeiture of $100,000 from Edu.
According to the indictment, Edu worked for the Ex-Im Bank from May 2000 to October 2004 as a business development specialist covering Africa and focused on sub-Saharan Africa, which included the West African nation of Nigeria. During the course of her work, according to the indictment, Edu was introduced to Nigerian businessmen who were seeking to buy certain products and services from a Kentucky-based technology company in a deal worth approximately $44 million. The Nigerian businessmen were seeking financial support from the Ex-Im Bank to support the business deal. The indictment alleges that the Nigerian businessmen agreed to pay Edu a bribe of $173,500, with an initial installment of $100,000, in return for her promise to perform official acts to assist the Nigerian businessmen and their company in obtaining loan guarantees and other financial support from the Ex-Im Bank.
The indictment also alleges that, on Feb. 24, 2004, one of the Nigerian businessmen wrote a letter to a bank in Nigeria captioned "Facilitation Fees to Maureen Scurry," in which the businessman asked that $100,000 be, "transferred to Miss Maureen Scurry of US-EXIM Bank to enable her to facilitate our guarantees with Ex-im [sic] Bank." According to the indictment, the letter also stated that the Board of Directors requested the personal assistance of Scurry to expedite the processes with the Ex-Im Bank and that the, "total amount agreed upon between ourselves was US$173,500" but that, "the balance will be paid once the transaction is over and monies are disbursed." According to the indictment, on Feb. 27, 2004, a wire transfer of $100,000 was sent to the Edu’s personal bank account at a bank in the District of Columbia. Due to disputes between the Nigerian businessmen and the Kentucky-based technology company, according to the indictment, the business deal later ended in mid-2004 before any products or services were provided.
An indictment is merely a charge and the defendant is presumed innocent until proven guilty.
The case is being prosecuted by Assistant Chief Charles E. Duross of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark D. Lytle and Rebeca H. Bellows of the U.S. Attorney’s Office for the Eastern District of Virginia, who have been specially appointed to prosecute the matter in the District of Columbia. The U.S. Attorney’s Office for the District of Columbia’s Fraud and Public Corruption Section also provided considerable support and assistance. The case was investigated by the FBI and the Internal Revenue Service, Criminal Investigation. The Export-Import Bank of the United States assisted and cooperated throughout the investigation of this matter.
Indictment
23 February 2009
United States Transfers Binyam Mohammed to United KingdomRead the Press Release
WASHINGTON – The Department of Justice today announced the transfer to the United Kingdom of Binyam Mohammed, an Ethiopian national and former resident of the United Kingdom who had been held at the Guantanamo detention facility since 2004.
As directed by the Executive Order issued by President Obama on January 22, 2009, an interagency panel has reviewed Mohammed’s case and determined that his transfer, pursuant to an arrangement between the United States and the United Kingdom, is consistent with the national security and foreign policy interests of the United States and the interests of justice.
"The friendship and assistance of the international community is vitally important as we work to close Guantanamo, and we greatly appreciate the efforts of the British government to work with us on the transfer of Binyam Mohammed," said Attorney General Eric Holder.
Mohammed is the first Guantanamo detainee to be transferred under the review of all Guantanamo detainees directed by the President. He departed Guantanamo aboard a United Kingdom aircraft Sunday night and arrived in the United Kingdom today.
U.S. District Court Judge Pleads Guilty to Obstruction of JusticeRead the Press Release
WASHINGTON – U.S. District Judge Samuel B. Kent pleaded guilty today to obstruction of justice in federal court in Houston, Acting Assistant Attorney General Rita M. Glavin and Andrew R. Bland III, Special Agent in Charge of the FBI’s Houston office announced.
Kent, 59, a district judge in the Southern District of Texas, pleaded guilty to making false statements to a special investigative committee of the U.S. Court of Appeals for the Fifth Circuit during an investigation of a judicial misconduct complaint filed against him. Kent’s guilty plea was accepted by the Hon. Roger Vinson, Senior U.S. District Judge for the Northern District of Florida, who was sitting by designation in the Southern District of Texas.
A grand jury in the Southern District of Texas indicted Kent in August 2008 on two counts of abusive sexual contact and one count of attempted aggravated sexual abuse for his alleged repeated assaults on an employee of the Office of the Clerk of Court, identified as Person A. In January 2009, the grand jury returned a superseding indictment against Kent, maintaining the original charges and adding one count each of abusive sexual contact and aggravated sexual abuse for Kent’s alleged repeated assaults on another U.S. District Court employee, identified as Person B. The January 2009 superseding indictment also added one count of obstruction of justice, alleging Kent obstructed an investigation into a misconduct complaint filed by Person A.
As part of his plea, Kent admitted that in both 2003 and 2007, he engaged in non-consensual sexual contact with Person A. He also admitted that he engaged in non-consensual contact with Person B from 2004 through at least 2005. According to court documents, when Person A filed a misconduct complaint against Kent, the Fifth Circuit appointed a committee to investigate whether Kent had engaged in unwanted sexual contact with Person A or any other individuals. Kent admitted that when he appeared before the committee in June 2007, he falsely testified about his conduct with Person B.
Sentencing is scheduled for May 11, 2009.
The case is being prosecuted by Senior Deputy Chief Peter J. Ainsworth and Trial Attorneys John P. Pearson and AnnaLou T. Tirol of the Criminal Division’s Public Integrity Section, which is headed by Section Chief William M. Welch II. The case was investigated by the FBI.
Memphis Man Pleads Guilty to Federal Sex Trafficking ChargesRead the Press Release
WASHINGTON – Leonard Fox a/k/a Anton a/k/a "Daddy" pleaded guilty today to a federal civil rights charge for sex trafficking of minors, announced Acting Assistant Attorney General Loretta King of the Civil Rights Division and U.S. Attorney Lawrence J. Laurenzi for the Western District of Tennessee.
In U.S. District Court in Memphis, Fox admitted to recruiting and obtaining underage girls and arranging for those girls to engage in commercial sex acts for his financial benefit.
"The defendant forced children into the brutal and demeaning world of human trafficking," said Acting Assistant Attorney General Loretta King. "To sexually prey upon young girls in this manner for financial gain is particularly damaging to the victims and an affront to the society in which we live."
"Fox faces up to life in prison after his plea today where he admitted to preying upon the innocence of young girls so that he could profit at their expense," said U. S. Attorney Laurenzi. "The United States Attorney’s Office takes seriously the victimization of our community’s children and will continue to investigate and prosecute these cases."
Fox faces a mandatory minimum of 10 years in prison and a maximum sentence of life in prison as well as a fine of up to $250,000. Sentencing is schedule for May 28, 2009.
Human trafficking prosecutions are a top priority of the Justice Department. In Fiscal Year 2008, the Civil Rights Division and U.S. Attorneys’ Offices filed a record number of criminal civil rights cases, including record numbers of both sex trafficking and labor trafficking cases.
The case is being prosecuted by Assistant U.S. Attorney Steve Parker and Civil Rights Division Trial Attorney Jim Felte. The case was investigated by the FBI, the Memphis Police Department and the Fayette County Sheriff’s Department.
Justice Department Sues Housing Authority in Wayne County, Ill., for Race DiscriminationRead the Press Release
WASHINGTON — The Justice Department today filed a lawsuit against the Wayne County Housing Authority (WCHA), in Fairfield, Ill., as well as Jill Masterson and Danna Sutton, WCHA’s executive director and assistant director, respectively, alleging that they violated the Fair Housing Act when they tried to discourage a white couple from renting their property in Fairfield to an African-American woman.
The complaint, filed in U.S. District Court for the Southern District of Illinois, alleges that the defendants discriminated against a white couple who were planning to rent a house to an African-American woman through the Housing Choice Voucher program (also known as Section 8). The Housing Choice Voucher program provides rental assistance to eligible low-income families, the elderly and persons with disabilities. Wayne County, Ill., receives federal funding from the U.S. Department of Housing and Urban Development (HUD) to administer the Housing Choice Voucher program.
The complaint alleges that the defendants made racially discriminatory statements to the couple, and "failed" their property at the mandatory inspection, which required the couple to make certain repairs and be inspected again before they could rent their unit under the Housing Choice Voucher program. By contrast, the complaint alleges that when WCHA found similar deficiencies at other properties in the Housing Choice Voucher program, its practice has been to "pass" the property and verbally counsel the landlords to make the repairs. The complaint alleges that defendants took these actions to discourage the couple from renting the property to the African-American woman. The complaint also alleges that the defendants determined that the property would have to be re-inspected because the couple had complained about racially discriminatory comments allegedly made by Sutton.
The lawsuit originated from a complaint filed with HUD by the couple. After an investigation, HUD found reasonable cause to believe that unlawful discrimination had occurred and referred the matter to the Justice Department.
"It is against the law for public housing authorities to engage in racially discriminatory housing practices. Public housing authorities should support, not hinder, landlords who want to rent their properties in compliance with the Fair Housing Act," said Acting Assistant Attorney General Loretta King. "We will continue to vigorously prosecute those who stand in the way of achieving the Fair Housing Act’s goal of allowing all people to live in the communities of their choice, regardless of their race."
U.S. Attorney A. Courtney Cox for the Southern District of Illinois emphasized the importance of all people receiving equal treatment under the law regardless of race. "The United States Attorney’s Office will do everything in its power to assure that all of the citizens of Southern Illinois have equal access to housing as guaranteed by law."
"All housing discrimination is deplorable. It’s worse still when taxpayer-supported public housing authorities allegedly use federal dollars to discriminate," said Bryan Greene, General Deputy Assistant Secretary for Fair Housing and Equal Opportunity at HUD. "HUD will pursue allegations of housing discrimination in all their forms, whether it’s in public or private housing. We’re pleased to have the Department of Justice as a partner in this effort."
The lawsuit seeks monetary damages for the couple and a court order barring future discrimination.
Fighting illegal housing discrimination is a top priority of the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at http://www.usdoj.gov/crt. Additional information about the Fair Housing Act is also available at www.HUD.gov.
The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.
Justice Department Resolves Lawsuit with State of Vermont Regarding Reporting Requirements of Uniformed and Overseas Citizens Absentee Voting ActRead the Press Release
WASHINGTON - The Justice Department announced today the resolution of the lawsuit filed by the United States against the state of Vermont to enforce the reporting requirements of the Uniformed Overseas Citizen Absentee Voting Act (UOCAVA). UOCAVA is designed to ensure that members of the uniformed services and overseas citizens may effectively participate in federal elections.
The state of Vermont and the Vermont Secretary of State, Deborah L. Markowitz, are responsible for collecting and reporting the number of absentee ballots that are sent to uniformed service voters and overseas citizens. The United States filed a lawsuit against the state of Vermont and its Secretary of State, on Oct. 10, 2008, because Vermont had failed to comply with UOCAVA’s reporting obligations after both the 2004 and 2006 general elections. Today, the United States voluntarily dismissed the lawsuit because Vermont brought its UOCAVA reporting into compliance.
"Accurate and complete information about whether our uniformed service members and overseas citizens are being given an effective opportunity to have their votes counted is essential," said Acting Assistant Attorney General Loretta King for the Civil Rights Division. "We are pleased that Vermont and its Secretary of State have now provided this important information."
The UOCAVA specifically mandates that all states and local governments report to the Election Assistance Commission (EAC) no later than 90 days after the date of each regularly scheduled general election for federal office the combined number of absentee ballots that are sent to absent uniformed services voters and overseas voters for the election and the combined number of such ballots that were returned by these voters and cast in the election. The EAC publishes a report every two years and provides data concerning UOCAVA ballots for every state and jurisdiction in the United States.
The Civil Rights Division enforces UOCAVA and the Voting Rights Act. To file complaints about discriminatory voting practices, including difficulties experienced by UOCAVA voters, voters may call the Voting Section of the Justice Department’s Civil Rights Division at 1-800-253-3931. More information about the Voting Rights Act and other federal voting laws is available on the Department of Justice website at http://www.usdoj.gov/crt/voting/index.htm.
Fraudulent Tax Return Preparer Sentenced to PrisonRead the Press Release
WASHINGTON - Rodrick Williams, a former tax return preparer from District Heights, Md., was sentenced to 24 months in prison by U.S. District Judge Roger W. Titus for preparing false tax returns for customers, the Justice Department and Internal Revenue Service (IRS) announced today.
In May 2008, Williams pleaded guilty to conspiracy to impede the IRS. Williams’s co-defendant, DaJuan Jackson was convicted in November 2008, by a Greenbelt, Md., jury of eight counts of aiding and assisting in the preparation and presentation of false tax returns.
According to the evidence introduced in the plea agreement and at trial, Williams and Jackson, both currently of Atlanta, prepared tax returns at a branch office of American Tax Associates Inc. (ATA), located in a Run ’N Shoot gym in District Heights. Williams and Jackson were the two main preparers in the branch office, which was responsible for preparing almost 1000 tax returns per year at the height of its business in 2004.
Williams cooperated with the government, and at trial, he testified that he and Jackson devised a scheme to place false information on the tax returns of ATA clients. In particular, Williams and Jackson falsified itemized deductions and business expenses so clients could fraudulently obtain bigger refunds.
Jackson was sentenced to 51 months in prison by Judge Titus on Feb. 19, 2009.
Acting Assistant Attorney General John DiCicco commended the IRS special agents who investigated the case, as well as Tax Division trial attorneys Jerrod Patterson and Shawn Noud who prosecuted the case.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at http://www.usdoj.gov/tax/.
20 February 2009
Justice Department Files Lawsuit Against the Chicago Board of Education for Alleged Pregnancy DiscriminationRead the Press Release
WASHINGTON - The Department of Justice today filed a lawsuit against the Board of Education of the City of Chicago (Board), alleging pregnancy discrimination in employment against former elementary school teacher Traci Meziere, Acting Assistant Attorney General Loretta King of the Civil Rights Division announced.
The complaint, filed in U.S. District Court in Chicago, alleges that the Board discriminated against Meziere on the basis of sex while she was employed at Norwood Park Elementary School by: rescinding her accrued seniority after she took a leave associated with her pregnancy; releasing her from her position as a full-time substitute teacher and then demoting her to a position with less pay, fewer benefits and diminished responsibilities; and denying her a requested leave associated with her pregnancy. The complaint was filed under Title VII of the Civil Rights Act of 1964, which prohibits discrimination in the workplace that is based on race, color, sex, national origin and religion.
"Pregnancy discrimination in the workplace, including in the educational system, will not be tolerated, and public employers must take prompt and effective action to stop it," said Acting Assistant Attorney General Loretta King. "The Department of Justice will vigorously pursue such violations of Title VII."
The continued enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its Web site at http://www.usdoj.gov/crt/.
John Doe # 17 Indicted in Child Pornography CaseRead the Press Release
"John Doe 17," a white male with curly brown hair weighing approximately 210-250 pounds, has been indicted by a federal grand jury for transporting child pornography via the Internet on or about May 5, 2007, Acting Assistant Attorney General of the Criminal Division Rita M. Glavin and U.S. Attorney for the District of Maryland Rod J. Rosenstein announced today.
This is the seventeenth such case to be investigated and the twelfth prosecuted through the Endangered Child Alert Program (ECAP), which was initiated by the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and the FBI in 2004. The program uses national and international media exposure of unknown adult perpetrators featured in child pornography in an effort to identify, locate, apprehend and prosecute such offenders and to rescue abused children.
The case arose from an investigation of a global enterprise utilizing newsgroups to trade more than 400,000 images of child pornography. An individual in the newsgroup posted two videos of a perpetrator, John Doe #17, engaged in the sexual exploitation of a pre-pubescent female. Forensic analysis of the video clip yielded clear pictures of John Doe #17’s profile and other identifying features that will better enable the public to assist with this case without encroaching on the victim’s privacy.
If convicted, the defendant faces between five and 20 years in prison and up to a $250,000 fine.
In many ECAP cases, the pictures of other John Doe offenders have been featured on the "America’s Most Wanted" Web site and television show, as well as "The O’Reilly Factor" television program. Since ECAP’s inception, viewers of the television programs and Web site have provided information leading to the investigation and indictment of several other offenders, and at least 30 child victims have been identified.
The prosecution is being handled by CEOS Trial Attorney LisaMarie Freitas and Assistant U.S. Attorney Bonnie Greenberg from the District of Maryland. The investigation is being handled by the FBI’s Innocent Images Unit in Calverton, MD.
See photo of "John Doe 17"
Indictment
Federal Court Bars Tennessee Resident from Preparing Tax Returns for OthersRead the Press Release
WASHINGTON - A federal district court in Tennessee has permanently barred Chattanooga resident Demita Brown-Watkins from preparing federal income tax returns for others, the Justice Department announced today. Brown-Watkins agreed to the civil injunction order.
According to the government complaint, Brown-Watkins ran her tax-preparation business through two companies —Fastax and Rapid Tax Service —and advertised the "largest refund in town." The government complaint alleged that Brown-Watkins listed fictitious expenses (such as gifts to charity) on her customers’ Schedules A; selected the incorrect filing status or listed ineligible dependants on her customers’ returns; filed claims for education credits for customers who she knew were ineligible for them; and listed fictitious Schedule C businesses on the tax returns of customers who were ineligible to file a Schedule C.
The complaint further asserts that Brown-Watkins prepared more than 3,000 returns since 2004 and that, based on IRS estimates, Brown-Watkins deprived the U.S. Treasury of over $8 million in tax revenue.
Acting Assistant Attorney General John A. DiCicco thanked Tax Division trial attorney Curtis Weidler for his efforts in obtaining the injunction. In the past decade, the Justice Department has obtained injunctions against more than 375 tax return preparers and tax-fraud promoters. Information about those cases is available on the Justice Department Web site.
Department of Justice Statement on the Abandonment of the JBS/National Beef TransactionRead the Press Release
WASHINGTON – The Department of Justice issued the following statement today after JBS and National Beef announced the abandonment of the JBS/National Beef transaction, which the Department had filed suit to block in October:
"The Antitrust Division welcomes this decision. Had the acquisition gone forward, it would have combined two of the top four U.S. beef packers resulting in lower prices paid to cattle suppliers and higher beef prices for consumers. The decision to abandon the transaction will preserve competition in the purchase of cattle that has been critical to ensuring competitive prices to the nation’s thousands of producers, ranchers and feedlots. It will also preserve competition in the sale of boxed beef to grocers, food service companies and ultimately American consumers. The Department remains vigilant in protecting competition in this industry with more than $50 billion in total commerce at stake."
The Department intends to move to terminate the pending litigation.
Background
On Oct. 20, 2008, the Department filed an antitrust lawsuit in the U.S. District Court in Chicago to block the proposed acquisition, alleging that the deal would result in lower prices paid to cattle suppliers and higher beef prices for consumers. At that time, Attorneys General of Colorado, Iowa, Kansas, Minnesota, Missouri, Montana, North Dakota, Ohio, Oklahoma, Oregon, South Dakota, Texas and Wyoming joined the Department’s lawsuit. On Nov. 7, 2008, the states of Arizona, Connecticut, New Mexico and Mississippi joined the lawsuit as well.
Attorney General Appoints Executive Director to Lead New Task Force on Review of Guantanamo Bay DetaineesRead the Press Release
WASHINGTON – Attorney General Eric Holder today announced the appointment of an Executive Director to lead a new interagency task force charged with continued implementation of the President’s Jan. 22 Executive Order calling for an immediate review of the status of individuals currently detained at Guantanamo Bay Naval Base.
The Executive Director, Matthew G. Olsen, will lead the Guantanamo Detainee Review Task Force, which is responsible for assembling and examining relevant information and making recommendations regarding the proper disposition of each individual currently detained at Guantanamo Bay.
In accordance with the President’s Order, the Task Force will consider whether it is possible to transfer or release detained individuals consistent with the national security and foreign policy interests of the United States; evaluate whether the government should seek to prosecute detained individuals for crimes they may have committed; and, if none of those options are possible, the Task Force will recommend other lawful means for disposition of the detained individuals.
The Order provides that the Attorney General shall coordinate this review in conjunction with the Secretaries of Defense, State, and Homeland Security, the Director of National Intelligence and the Chairman of the Joint Chiefs of Staff in order for the detention facilities at Guantanamo Bay to be closed within one year from the date of the Executive Order.
"As a leader of the Department’s National Security Division and 12-year career federal prosecutor, Mr. Olsen has the experience and judgment to lead the team’s evaluation of these individual cases," said Attorney General Holder. "We’ve established a solid framework for the administration to make the right decision on each individual detainee -- decisions that will most effectively serve the interests of justice and the national security and foreign policy objectives of the United States."
As Executive Director for the detention review process, Mr. Olsen will be responsible for managing the consideration and disposition of individual detainee cases as set forth in the President’s Order. He will supervise review teams consisting of representatives from the Justice Department and the other agencies identified in the President’s Order.
These multi-agency teams will conduct the specific detainee reviews and develop options and recommendations for the Executive Director to present to a Review Panel consisting of senior-level officials from each of the relevant Departments and agencies who are authorized to make decisions as to the disposition of each detainee. Review Panel members will be responsible for ensuring that each department or agency devotes the necessary resources so that the Task Force can conduct this review and enable closure of the facility within the one-year time frame required under the Executive Order.
Until his appointment today, Mr. Olsen served as the Acting Assistant Attorney General for National Security, where he managed the Justice Department’s National Security Division. Previously, as Deputy Assistant Attorney General, he helped establish the National Security Division in 2006 and supervised the Department’s intelligence operations and oversight.
19 February 2009
United States Joins Suits Against Scios and Johnson & JohnsonRead the Press Release
WASHINGTON – The United States has intervened in two whistleblower suits filed in the Northern District of Californiaagainst the drug manufacturer Scios Inc. and its parent company, Johnson & Johnson Inc., alleging that the companies marketed the cardiac drug Natrecor for a use not approved by the Food and Drug Administration (FDA) and caused false and fraudulent claims to be submitted to the federal health care programs, the Justice Department announced today. Such an unapproved use is also known as an "off-label" use because it is not included in the drug’s FDA approved product label.
Under the Food, Drug and Cosmetic Act, a company must specify the intended uses of a product in its new drug application to the FDA. Before approving a drug, the FDA must determine that the drug is safe and effective for the use proposed by the company. Once approved, the drug company may not market or promote the drug for off-label uses.
In August 2001, the FDA approved Natrecor for "the intravenous treatment of patients with acutely decompensated congestive heart failure who have dyspnea [shortness of breath] at rest or with minimal activity." The study upon which this approval was based involved hospitalized patients who had severe heart failure and who received infusions of Natrecor over an average 36-hour period. The government’s investigation revealed that shortly after receiving this approval in 2001, Scios began an aggressive campaign to market Natrecor for scheduled, serial outpatient infusions for patients with less severe heart failure – a use not included in the FDA-approved label. These patients were prescribed Natrecor infusions for less than 6 hours on a scheduled basis over an extended period of time.
Medicare does not cover drugs used for off-label uses unless such off-label use is established to be medically necessary. The federal health care programs – in particular, Medicare – paid substantial amounts for the serial outpatient off-label use of Natrecor.
In mid-2005, a panel of leading cardiologists told Scios that it should stop promoting the scheduled, serial outpatient use of Natrecor. Scios subsequently sent a letter to healthcare providers in which it acknowledged that there was insufficient clinical evidence supporting the safety and efficacy for scheduled, serial outpatient use of the drug. In 2007, Scios released the results of a clinical study that showed no significant benefits of serial outpatient Natrecor infusions.
The two separate civil False Claims Act suits – called qui tam actions – were filed by former Scios sales managers against Scios and Johnson & Johnson in the Northern District of California. The False Claims Act allows for private persons to file whistleblower suits to provide the government information about wrongdoing. Under the statute, if it is established that a person has submitted or caused others to submit false or fraudulent claims to the United States, the government can recover treble damages and $5,500 to $11,000 for each false or fraudulent claim filed. If the government is successful in resolving or litigating its claims, the whistleblower who initiated the action can receive a share of between 15 percent to 25 percent of the amount recovered.
The qui tam or whistleblower actions contain additional allegations. However, the United States is only intervening with regard to allegations that Scios marketed the drug Natrecor for serial infusions in the outpatient setting.
The investigation was conducted by the Civil Division of the U.S. Department of Justice, the U.S. Attorney’s Office for the Northern District of California, the Federal Bureau of Investigation, and the Offices of Inspector General of the Department of Health and Human Services, the FDA, the Department of Veterans Affairs, the Office of Personnel Management, and the Department of Defense.
United States Asks Court to Enforce Summons<br /> for UBS Swiss Bank Account RecordsRead the Press Release
WASHINGTON - The government filed a lawsuit today in Miami against Swiss bank UBS AG, the Justice Department announced. The lawsuit asks the court to order the international bank to disclose to the Internal Revenue Service (IRS) the identities of the bank’s U.S. customers with secret Swiss accounts. According to the lawsuit, as many as 52,000 U.S. customers hid their UBS accounts from the government in violation of the tax laws.
The government alleges in the lawsuit that of those 52,000 secret accounts, about 20,000 contained securities and about 32,000contained cash. According to a UBS document filed with the lawsuit, as of the mid-2000s, those secret accounts held about $14.8 billion in assets. Court documents allege that U.S. citizens failed to report and pay U.S. income taxes on income earned in those secret accounts.
According to the lawsuit, Swiss-based bankers actively marketed UBS’s services to wealthy U.S. customers within the United States. UBS documents filed with the lawsuit show that UBS bankers came to the United States to meet with U.S. clients nearly 4,000timesper year, in violation of U.S. law. According to court documents, the government alleges that UBS trained its bankers to avoid detection by U.S. authorities. Court documents further assert that many U.S. contacts occurred through UBS-sponsored sporting and cultural events, designed to appeal to extremely wealthy Americans.
The lawsuit alleges that UBS engaged in cross-border securities transactions in the United States that it knew violated U.S. security laws. The lawsuit also alleges that UBS helped hundreds of U.S. taxpayers set up dummy offshore companies, to make it easier forthose taxpayerstoavoid their reporting obligations under U.S. tax laws.
"At a time when millions of Americans are losing their jobs, their homes and their health care, it is appalling that more than 50,000 of the wealthiest among us have actively sought to evade their civic and legal duty to pay taxes," said John A. DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division. "It is time for those who are trying to hide from the IRS to rethink their actions. The Department of Justice is committed to do all that it can to aid the IRS in locating those who would seek to hide behind secret accounts and in holding them accountable under the federal tax laws."
"We are committed to moving forward with the summons enforcement process. This action sends a strong signal to taxpayers hiding their money offshore. The IRS will be aggressive in pursuing people who shirk their obligations under the tax law. These people owe it to their fellow citizens to pay their fair share of taxes," said IRS Commissioner Doug Shulman. "As Commissioner, I am committed to bringing to bear the full arsenal of IRS resources to pursue egregious offshore tax abuse. International tax issues are a top priority, and we will continue to aggressively pursue people hiding assets offshore. For people who are hiding money offshore, this serves as a wake-up call that they need to get right with their government. Taxpayers should talk to a tax professional and come forward under our voluntary disclosure process. Having the IRS find you could mean a much heavier price than coming forward on your own."
Information about the Justice Department’s Tax Division and its enforcement efforts is available at http://www.usdoj.gov/tax/.
Shipping Company, Chief Engineer and Second Engineer Indicted for Covering up PollutionRead the Press Release
WASHINGTON—A federal grand jury in Newark, N.J., has returned an eight-count indictment charging a Liberian company that manages an oceangoing bulk carrier vessel, M/V Myron N, along with the ship’s chief engineer and second engineer for covering up discharges of oil-contaminated waste at sea, the Justice Department announced today.
Dalnave Navigation Inc., a company incorporated in Liberia with offices in Athens, Greece, Chief Engineer Panagiotis Stamatakis and Second Engineer Dimitrios Papadakis, both of Greece, were each charged with conspiracy and violating the Act to Prevent Pollution from Ships (APPS) by failing to maintain an accurate ship record concerning the disposal of oil-contaminated waste. They were also charged with making false statements to U.S. Coast Guard authorities regarding the pumping of oil-contaminated waste overboard and five counts of obstruction of justice concerning the statements made to the Coast Guard.
The indictment alleges that between 2004 and September 2008, Dalnave, and more recently through its two senior engineers on the M/V Myron N, Stamatakis and Papadakis, directed subordinate crew members to use a metal pipe to bypass the ship’s oil water separator and instead discharge the oil-contaminated waste directly overboard. Thereafter, on Sept. 8, 2008, in the port of Newark, N.J., the defendants presented a fabricated oil record book that failed to disclose prior discharges into the ocean of oil-contaminated waste by the M/V Myron N. The indictment alleges the defendants knowingly maintained the oil record book that failed to disclose the overboard discharge of oil-contaminated waste without the use of the ship’s pollution prevention equipment and further alleges that the defendants falsely stated to Coast Guard authorities that, among other things, they never ordered the pumping of oil-contaminated waste overboard.
Federal and international law requires that all ships follow pollution regulations that include proper disposal of oily water through an oil water separator on board the vessel. Large vessels generate oil-contaminated water waste when water mixes in the bottom of the vessel, the bilge, with oil leaked from the machinery and the lubrication and fuel systems. Such oil-contaminated bilge waste may properly be disposed of by off-loading it to a licensed hauler and disposal facility at port, or by discharging it overboard after the oil is separated out using the vessel’s oil water separator. Federal law further requires ships to accurately record each disposal of oil-contaminated bilge water in an oil record book and to have the oil record book available for inspection by the Coast Guard within the internal waters of the United States.
If convicted, Dalnave faces a statutory maximum fine of $500,000 on each of the eight counts or, alternatively, twice the gross gain resulting from the offenses. If convicted of the conspiracy, obstruction of justice and false statement charges, Stamatakis and Papadakis face up to 5 years in prison followed by 3 years of supervised release and a $250,000 fine per count. If convicted on the APPS charge, the two face up to 6 years in prison, followed by 3 years of supervised release and a $250,000 fine.
The case was investigated by the U.S. Coast Guard, Sector New York, Coast Guard Investigative Service, Mid-Atlantic Region and the Environmental Protection Agency’s Criminal Investigation Division. It is being prosecuted by Gary N. Donner of the Justice Department’s Environmental Crimes Section, Assistant U.S. Attorney Kathleen P. O’Leary for the District of New Jersey, and Special Assistant U.S. Attorney Christopher P. Mooradian of the U.S. Coast Guard First District Legal Office.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kentucky Man Pleads Guilty to Producing Child <br /> Pornography and Is Sentenced to 20 YearsRead the Press Release
WASHINGTON – Jack A. Taylor, 68, a resident of Rolling Springs, Ky., pleaded guilty today to producing child pornography and was sentenced to 20 years in prison, Acting Assistant Attorney General of the Criminal Division Rita M. Glavin and U.S. Attorney for the Southern District of Indiana Timothy M. Morrison announced.
Taylor, appearing before U.S. District Court Judge David F. Hamilton in Indianapolis, was also ordered to serve a lifetime of supervised release following completion of his prison term, forfeit all items seized during the investigation that were used to commit his offense, and to pay $4,000 in restitution to his victim.
At the plea hearing, Taylor admitted that the statement of facts presented by the government was accurate. The statement of facts established that during the early fall of 2006 Taylor traveled from Kentucky to Lebanon, Ind., where he took sexually explicit photos of a minor, Jane Doe, who was approximately four years old at the time. The statement of facts further established that Taylor engaged in sexually abusive conduct with the four-year-old minor. Finally, the statement detailed how Taylor also transported images of child pornography on a computer CD from Kentucky to Indiana, and that he possessed thousands of images of child pornography on various computer media devices, both in Lebanon and at his home in Rolling Springs.
The case was investigated by the U.S. Secret Service, with the assistance of the Lebanon, Ind., Police Department, the Boone County, Ind., Prosecutor’s Office and the Russell County, Ky., Sheriff’s Department. It is being prosecuted by Assistant U.S. Attorney Steve DeBrota of the U.S. Attorney’s Office for the Southern District of Indiana and Trial Attorney Steve Grocki of the Child Exploitation and Obscenity Section of the Criminal Division.
Fraudulent Tax Return Preparer Sentenced to PrisonRead the Press Release
WASHINGTON - DaJuan Jackson, a former tax return preparer in District Heights, Md., was sentenced to 51 months in prison by U.S. District Judge Roger W. Titus for preparing false tax returns for customers, the Justice Department and Internal Revenue Service (IRS) announced.
In November 2008, a Greenbelt, Md., jury convicted Jackson of eight counts of aiding and assisting in the preparation and presentation of false tax returns. Jackson’s co-defendant, Rodrick Williams, pled guilty to conspiracy to impede the IRS in May 2008.
According to the evidence introduced at trial, Jackson and Williams, both currently of Atlanta, prepared tax returns at a branch office of American Tax Associates Inc. (ATA), located in a Run ’N Shoot gym in District Heights, Md. Jackson and Williams were the two main preparers in the branch office, which was responsible for preparing almost 1,000 tax returns per year at the height of its business in 2004. Williams cooperated with the government, and at trial, he testified that he and Jackson devised a scheme to place false information on the tax returns of ATA clients. In particular, Jackson and Williams falsified itemized deductions and business expenses so clients could fraudulently obtain bigger refunds.
Williams is scheduled to be sentenced by Judge Titus on Feb. 23, 2009.
Acting Assistant Attorney General John DiCicco commended the IRS special agents who investigated the case, as well as Tax Division trial attorneys Jerrod Patterson and Shawn Noud who prosecuted the case.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at http://www.usdoj.gov/tax.
Five Maryland Commercial Fishermen Plead Guilty to Illegally Overfishing Striped BassRead the Press Release
WASHINGTON—Five St. Mary’s County, Md., commercial fisherman pleaded guilty today to illegally overfishing striped bass also known as rockfish, the Justice Department announced.
“Fishing limits in the Chesapeake Bay and Potomac River are designed to protect the healthy sustainable population of striped bass and ensure a viable fishery up and down the eastern seaboard. Commercial fishermen who knowingly conceal their illegal activities, and who traffic in illegally harvested rockfish are undercutting an honest market and risking the continuation of the species,” said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.
“Most rockfish return from the Atlantic Ocean to the freshwater of the Chesapeake Bay to spawn,” said Rod J. Rosenstein, U.S. Attorney for the District of Maryland. “If commercial fishermen obey the rules, we can all enjoy rockfish forever. If we allow overfishing, the rockfish population could be wiped out very quickly.”
According to their plea agreements, Thomas L. Crowder Jr. of Leonardtown, Md.; John W. Dean of Scotland, Md.; Charles Quade of Churchtown, Md.; Thomas L. Hallock of Catharpin, Va.; and Keith A. Collins of Deale, Md., are all commercial fisherman operating in or near St. Mary’s County, Md., and the surrounding waters of the Chesapeake Bay. As commercial fishermen in Maryland, they were each subject to a maximum quota in pounds of striped bass that they were allowed to harvest in a year and were also required to record each day’s harvest of striped bass on a permit allocation card issued by the state of Maryland. Each day’s harvest and its corresponding entry on the permit allocation were required to be verified by a Maryland designated check-in station. All striped bass caught by the defendants were required to be “tagged” with a plastic tag issued by the state. In addition to catching striped bass to fulfill their own quota, each defendant also entered into agreements to utilize the quota issued to other Maryland striped bass fishermen.
According to their statements of fact, from 2003 to 2007, Crowder, Dean, Quade, Hallock and Collins, with the help and assistance of a Maryland designated check-in station, falsely recorded the amount of striped bass that each harvested. In each year, the defendants failed to record some of the striped bass they caught. In addition, in each year the defendants recorded, and the check-in station certified on their Maryland permit allocation cards a lower weight of striped bass than was actually caught. The defendants and the check-in station operator would also falsely inflate on these records the actual number of fish harvested.
By under-reporting the weight of fish harvested, and over-reporting the number of fish taken, the records would make it appear that the defendants had failed to reach the maximum poundage quota for the year, but had nonetheless run out of tags. As a result, the state would issue additional tags that could be used by the defendants allowing them to catch striped bass above their maximum poundage quota amount, yet still have tags to place on those fish and fish that were never reported to Maryland as being harvested. In addition, Hallock, Quade, Dean and Collins falsely tagged striped bass, hiding the manner or location where they were caught. Hallock also fished out of season.
According to their plea agreements, Quade and Hallock further concealed the striped bass over-harvesting and under-reporting by having seafood wholesalers provide false receipts for their striped bass sales, claiming that the sales involved different species of fish.
Crowder, Dean, Quade, Hallock and Collins sold their illegal catch knowing that the fish would be sold to retail and wholesellers in other states. According to their plea agreements, the estimated fair market value of the fish involved in the illegal transactions for Crowder is $956,285; for Collins is between $600,000 and $750,000; for Hallock is $342,210; for Quade is $151,507; and for Dean is $100,267.
“This concerted federal and state investigation sheds light on a pattern of abuse that completely undermines the states’ ability to manage and set quotas for striped bass,” said Acting Special Agent in Charge Sal Amato of the U.S. Fish and Wildlife Service’s Northeast Region. “Violations of fishing laws rob future generations of this important Chesapeake Bay resource.”
“The Maryland Department of Natural Resources applauds and was happy to support these enforcement actions to preserve and protect our striped bass resource,” said DNR Secretary John R. Griffin. “Through the enforcement efforts of the Maryland Natural Resources Police and through innovative partnerships with the U.S. Fish and Wildlife Service and our sister states, we are working to ensure that our waterways are used in a lawful manner which provides for enjoyment of these public trust resources for current and future generations.”
“This is a great example of a cooperative law enforcement initiative to protect our natural resources,” said Commissioner Steven G. Bowman of the Virginia Marine Resources Commission, which includes the Virginia Marine Police. “Trafficking in illegal rockfish is not a harmless offense, and the Virginia Marine Police take this quite seriously.”
In a related case, commercial fisherman Joseph Peter Nelson, Jr., of Great Mills, Md., and his father Joseph Peter Nelson, of Avenue, Md., were indicted on Oct. 15, 2008, for conspiracy to violate the Lacey Act, and six substantive felony Lacey Act counts. The indictment also seeks forfeiture of vessels and vehicles allegedly used by the Nelsons in carrying out the offenses. A trial date has not been set.
Additionally, Cannon Seafood Inc., located in the District of Columbia, its owner and president Robert Moore Sr. of Falls Church, Va., and Robert Moore Jr. of Ashburn, Va., each pleaded guilty to one felony violation of the Lacey Act on Feb. 12, 2009 in U.S. District Court for the District of Columbia. The company faces fines and the individuals face fines and prison sentences according to their plea agreements. Their sentencing date has been set of May 8, 2009, at 9:30 A.M.
Each defendant faces a maximum sentence of five years in prison and a $250,000 fine. The Nelsons also face five years in prison on the conspiracy charge. U.S. District Judge Peter J. Messitte has scheduled sentencing for Crowder and Dean on April 16, 2009; Quade and Hallock on April 17, 2009; and Collins on April 22, 2009, all beginning at 9:30 A.M.Today’s guilty pleas are the result of the investigation by an interstate task force formed by the U.S. Fish and Wildlife Service, the Maryland Natural Resources Police and the Virginia Marine Police, Special Investigative Unit in 2003. The task force conducted undercover purchases and sales of striped bass in 2003, engaged in covert observation of commercial fishing operations in the Chesapeake Bay and Potomac River area, and conducted detailed analysis of area striped bass catch reporting and commercial business sales records from 2003 through 2007. The investigation is continuing, and charges against others are possible.
The case is being prosecuted by Assistant U.S. Attorney Stacy Dawson Belf for the District of Maryland and Senior Trial Attorney Wayne Hettenbach of the Justice Department’s Environmental Crimes Section.BP Products to Pay Nearly $180 Million to Settle Clean Air Violations at Texas City RefineryRead the Press Release
WASHINGTON—BP Products North America Inc. has agreed to spend more than $161 million on pollution controls, enhanced maintenance and monitoring, and improved internal management practices to resolve Clean Air Act violations at its Texas City, Texas, refinery, the Justice Department and U.S. Environmental Protection Agency (EPA) announced today. The company will also pay a $12 million civil penalty and spend $6 million on a supplemental project to reduce air pollution in Texas City.
Today’s settlement addresses the company’s noncompliance with a 2001 consent decree and Clean Air Act regulations requiring strict controls on benzene and benzene-containing wastes generated during petroleum refining operations. The company is required to upgrade control equipment and processes used to handle these materials and conduct in-depth audits to ensure compliance and minimize the amount of benzene-containing wastes generated at the refinery. It is estimated that these actions will reduce emissions of benzene and other volatile organic compounds (VOCs) by approximately 6,000 pounds annually.
“The Department of Justice and the EPA will aggressively pursue those who fail to comply with the laws that protect our environment, and we will hold them accountable,” said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This new agreement requires stringent new measures to protect air quality and public health in Texas beyond those originally required at the Texas City Refinery.”
“BP failed to fulfill its obligations under the law, putting air quality and public health at risk,” said Catherine R. McCabe, Acting Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement will benefit the people living in and around Texas City, many of whom come from minority and low-income backgrounds.”
EPA identified the violations addressed in today’s settlement during a series of inspections of the Texas City refinery initiated after a catastrophic explosion and fire in March 2005 that killed 15 people and injured more than 170 others. In October 2007, the company pleaded guilty to a felony violation of the Clean Air Act and agreed to pay a $50 million fine for violations related to the explosion, the largest criminal fine ever assessed against a corporation for Clean Air Act violations. The plea is still under review by the U.S. District Court for the Southern District of Texas, and today’s settlement does not address any claims arising from the March 2005 explosion.
The settlement requires that BP address violations of Clean Air Act requirements limiting emissions of stratospheric ozone-depleting hydrochlorofluorocarbons (HCFCs) from leaking cooling appliances. BP will eliminate approximately 51,000 pounds of HCFCs by retrofitting industrial and commercial cooling appliances at Texas City to use non-ozone-depleting refrigerants. The company also has agreed to improve its oversight and management of asbestos-containing wastes generated during routine renovation and demolition activities at the Texas City refinery.
As part of the settlement, the company will spend an additional $6 million to reduce air pollution from diesel vehicle emissions in Texas City and the surrounding area. BP will convert approximately 100 diesel municipal vehicles, including several dozen school buses, to operate on compressed or liquefied natural gas and will construct four refueling stations for the converted vehicles. As a result, emissions of particulate matter, nitrogen oxides and hydrocarbons from these vehicles will be substantially reduced.
Exposure to benzene, a hazardous air pollutant, is known to cause a number of acute and chronic health effects, including cancer, nerve and immunity impairment, and adverse reproductive and developmental effects, among others.
HCFCs and other ozone-depleting substances, when released into the environment, destroy the earth’s protective stratospheric ozone layer. Exposure to asbestos, a known human carcinogen, can cause asbestosis and two types of cancer: lung cancer and mesothelioma.
BP Products North America, headquartered in Warrenville, Ill., operates petroleum refineries in California, Indiana, Ohio, Texas and Washington. The Texas City refinery, the third largest in the nation, has a production capacity of more than 460,000 barrels per day.
The proposed settlement, lodged today in the U.S. District Court for the Northern District of Indiana, is subject to a 30-day public comment period and final court approval. A copy of the consent decree is available on the Justice Department Web site at http://www.usdoj.gov/enrd/Consent_Decrees.html.
18 February 2009
United States Files Clean Air Lawsuit Against Louisiana GeneratingRead the Press Release
WASHINGTON — The United States has filed a complaint against Louisiana Generating alleging that the company violated the Clean Air Act by operating the Big Cajun 2 Power Plant, a coal-fired power plant in New Roads, La., without also installing and operating modern pollution control equipment after the generating units had undergone major modifications, the Justice Department and U.S. Environmental Protection Agency (EPA) announced today.
The complaint alleges that for more than a decade, the Big Cajun 2 Power Plant has operated without the best available emissions-control technology required by the New Source Review provisions of the Clean Air Act to control emissions of sulfur dioxide and nitrogen oxide, contributing to formation of fine particulate matter, smog and acid rain.
The lawsuit, filed by the Justice Department on behalf of the EPA, asks the court to order Louisiana Generating to install and operate appropriate air pollution control technology in order to substantially reduce sulfur dioxide and nitrogen oxide emissions from the Big Cajun 2 Power Plant. The United States also seeks civil penalties up to the maximum amount authorized by law, as well as actions by the energy provider to mitigate the adverse effects alleged to have been caused by the violations.
Coal-fired power plants collectively produce more pollution than any other industry in the United States. They account for nearly 70 percent of sulfur dioxide emissions each year and 20 percent of nitrogen oxides emissions. Emissions from coal-fired power plants have detrimental health effects on asthma sufferers, the elderly and children. Additionally, these emissions have been linked to forest degradation, waterway damage, reservoir contamination and deterioration of stone and copper in buildings.
To combat these adverse effects, the EPA and the Justice Department are pursuing a national initiative, targeting electric utilities whose coal-fired power plants violate the law. The suit was filed in the U.S. District Court in Baton Rouge, La.
UBS Enters into Deferred Prosecution AgreementRead the Press Release
WASHINGTON – UBS AG, Switzerland’s largest bank, has entered into a deferred prosecution agreement on charges of conspiring to defraud the United States by impeding the Internal Revenue Service (IRS), the Justice Department announced today.
As part of the deferred prosecution agreement and in an unprecedented move, UBS, based on an order by the Swiss Financial Markets Supervisory Authority (FINMA), has agreed to immediately provide the United States government with the identities of, and account information for, certain United States customers of UBS’s cross-border business. Under the deferred prosecution agreement, UBS has also agreed to expeditiously exit the business of providing banking services to United States clients with undeclared accounts. As part of the deferred prosecution agreement, UBS has further agreed to pay $780 million in fines, penalties, interest and restitution. Earlier today, the agreement was accepted in Ft. Lauderdale, Fla. by U.S. District Judge James I. Cohn.
A criminal information was unsealed today that charges UBS with conspiring to defraud the United States by impeding the IRS. According to court documents, in 2000, after it purchased the brokerage firm Paine Webber, UBS voluntarily entered into an agreement with the IRS that required UBS to report to the IRS income and other identifying information for its United States clients who held United States securities in a UBS account. Court documents allege that the agreement also required UBS to withhold income taxes from United States clients who directed investment activities in foreign securities from the United States. The information further asserts that, in order to evade those new reporting requirements, employees and managers within the cross-border business, with the knowledge of certain UBS executives, helped United States taxpayers open new UBS accounts in the names of nominees and/or sham entities. According to court documents, the assets of the individual’s accounts were then transferred to the newly created accounts, as to which the U.S. taxpayer would not be identified as a beneficiary.
The information asserts that this device was used by UBS to justify evading its reporting obligations and helped United States taxpayers to continue to conceal their identities and assets from the IRS.
The information also alleges that Swiss bankers routinely traveled to the United States to market Swiss bank secrecy to United States clients interested in attempting to evade United States income taxes. Court documents assert that, in 2004 alone, Swiss bankers allegedly traveled to the United States approximately 3,800 times to discuss their clients’ Swiss bank accounts. The information further alleges that UBS managers and employees used encrypted laptops and other counter-surveillance techniques to help prevent the detection of their marketing efforts and the identities and offshore assets of their U.S. clients. According to the information, clients of the cross-border business in turn filed false tax returns which omitted the income earned on their Swiss bank accounts and failed to disclose the existence of those accounts to the IRS.
In light of the bank’s willingness to acknowledge responsibility for its actions and omissions, its cooperation and remedial actions to date, and its promised continuing cooperation and remedial actions, the government will recommend dismissal of the charge, provided the bank fully carries out its obligations under the agreement.
In November 2008, UBS executive Raoul Weil was indicted by a federal grand jury in Fort Lauderdale and charged with conspiring to defraud the United States for his alleged role in overseeing the United States cross-border business. The district court recently declared him to be a fugitive.
In June 2008, former UBS private banker Bradley Birkenfeld pleaded guilty to a charge of conspiring to defraud the United States for similar conduct. Birkenfeld is scheduled to be sentenced on May 1, 2009. Also, in June 2008, the U.S. District Court in Miami authorized the Internal Revenue Service to serve upon UBS a so-called "John Doe" summons seeking records that would identify United States taxpayers with accounts at UBS in Switzerland who have elected to conceal the existence of their accounts from the IRS.
"Today’s agreement is but one milestone in an ongoing law enforcement effort to reassure hard-working and law-abiding taxpayers who pay their fair share of taxes that those who don’t will pay a heavy price," said John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division. "The veil of secrecy has been pulled aside and we will continue to aggressively pursue those who shirk their federal tax obligations or assist others in doing so."
"UBS executives knew that UBS’s cross-border business violated the law," said R. Alexander Acosta, U.S. Attorney for the Southern District of Florida. "They refused to stop this activity, however, and in fact instructed their bankers to grow the business. The reason was money -- the business was too profitable to give up. This was not a mere compliance oversight, but rather a knowing crime motivated by greed and disrespect of the law."
Acting Assistant Attorney General DiCicco and U.S. Attorney Acosta commended Tax Division attorneys Kevin Downing and Michael Ben’Ary, and Assistant U.S. Attorney Jeffrey Neiman, along with special agents from the Internal Revenue Service who provided invaluable assistance in investigating this case.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at http://www.usdoj.gov/tax/.
U.S. Court Issues Permanent Injunction Order Against Maine Tax Return PreparerRead the Press Release
WASHINGTON – A federal court in Maine permanently barred Donna L. Hamilton from preparing federal tax returns for others, the Justice Department announced today. The court also ordered the Maine resident to provide her customer lists to the government and to mail copies of the court order to her customers. Hamilton consented to the civil injunction order.
According to the government complaint, Hamilton operated a tax return preparation service under the name East Coast Accounting from her mother’s residence in Topsham, Maine. Hamilton allegedly purchased the business from her mother, Carol East Palesky, who had previously operated a business that provided tax return preparation and other accounting services under the name East Accounting Associates. On Dec. 12, 2007, U.S. District Judge D. Brock Hornby issued an order of permanent injunction against Palesky prohibiting her from preparing federal tax returns and advising anyone about the preparation of a federal income tax return.
The complaint states that Hamilton prepared approximately 82 returns during the 2006 and 2007 filing seasons. The government complaint also alleges that Hamilton prepared federal tax returns during the 2005 filing season but did not sign any of the returns. The complaint further alleges that the IRS estimates a potential $123,000 loss to the U.S. Treasury.
According to the complaint, Hamilton fabricated and/or inflated deductions relating to employees’ business expenses, capital losses and education credits. One example in the complaint asserts that Hamilton reported a $1,000 education credit on her customers’ tax return even though the customers had never provided her with any information that would suggest that they were enrolled in college or had incurred any educational expenses during the tax.
Acting Assistant Attorney General John A. DiCicco thanked Tax Division trial attorney Lisa Bellamy for her handling of the government’s case. The Justice Department has obtained injunctions against more than 375 tax return preparers and tax-fraud promoters over the past decade. Information about the Justice Department’s Tax Division and its efforts to stop fraudulent return preparers is available on the Justice Department Web site.
Statement from Matthew A. Miller, Director of the Office of Public Affairs, Regarding Issuance of the National Research Councils Report on Forensic ScienceRead the Press Release
"We appreciate the diligent work of the National Research Council’s committee on forensic science in preparing this report. The Department of Justice’s principal focus in dealing with forensic evidence is on applying it dispassionately to law enforcement challenges, and we regularly use forensics to not only convict the guilty, but also to exonerate the innocent.
"We look forward to working with the law enforcement community and members of Congress to evaluate this report and consider how best to address its findings and recommendations."
North Carolina Man Pleads Guilty<br /> to Possessing Child PornographyRead the Press Release
WASHINGTON – Timothy Christenbury, of Charlotte, N.C., pleaded guilty today to possessing child pornography, Acting Assistant Attorney General of the Criminal Division Rita M. Glavin and U.S. Attorney for the Western District of North Carolina Gretchen C.F. Shappert announced.
Christenbury, 46, pleaded guilty before U.S. Magistrate Judge Carl Horn III to one count of possession of child pornography. He was indicted on those charges on Dec. 16, 2008. According to the indictment, Christenbury possessed computer files containing child pornography from on or about Sept. 2 to Sept. 4, 2007.
Christenbury was identified through "Operation Joint Hammer" – the U.S. component of an ongoing global enforcement operation targeting transnational rings of child pornographers. The operation already has led to the arrest of more than 60 people in the United States involved in the trade of child pornography.
Operation Joint Hammer was initiated through evidence developed by European law enforcement and shared with U.S. counterparts by Europol and Interpol. The European portion of this global enforcement effort, "Operation Koala," was launched after the discovery of a handful of people in Europe who were molesting children and producing photographs of that abuse for commercial gain. Further investigation unveiled a number of online child pornography rings – some of which hosted dangerous offenders who not only traded child pornography, but who themselves sexually abused children. Law enforcement has determined that the customers of the Web site were located in nearly 30 countries around the world, including the United States.
Christenbury faces a maximum of 10 years in prison, forfeiture of all seized property, and up to a $250,000 fine. Christenbury also will face the imposition of supervised release following his release from prison for a term of at least five years to life.
The case is being prosecuted by Assistant U.S. Attorneys Cortney Escaravage and Kimlani Ford of the Western District of North Carolina and Trial Attorney Alecia Riewerts Wolak of the Criminal Division’s Child Exploitation and Obscenity Section. The investigation is being handled by Immigration and Customs Enforcement.
Justice Department Obtains $120,000 Settlement in Discrimination Lawsuit Against Chicago Area RealtorsRead the Press Release
WASHINGTON —RE/MAX East-West, a real estate firm in Elmhurst, Ill., and one of its former real estate agents, John DeJohn, have agreed to pay $120,000 to settle allegations that they illegally steered prospective homebuyers toward and away from certain neighborhoods based on race and national origin, the Justice Department announced today. The consent decree was signed on Feb. 17, 2009, by U.S. District Judge Ruben Castillo.
The lawsuit originated from a complaint filed by the National Fair Housing Alliance (NFHA) with the U.S. Department of Housing and Urban Development (HUD). Testing conducted by NFHA of RE/MAX East-West in 2004 and 2005 revealed that DeJohn had steered an Hispanic tester toward homes in predominantly African-American or Hispanic neighborhoods, but had encouraged a similarly situated white tester to look at listings in predominantly white neighborhoods. Both testers had contacted DeJohn about the same advertised listing. According to the complaint, DeJohn also told the white tester that, "I don’t care if you are a bigot. If we go to an area and you don’t like it, just let me know. I can’t be a bigot but you can be one," or words to that effect. After an investigation, HUD found reasonable cause to believe that unlawful discrimination had occurred and referred the matter to the Justice Department, which filed a lawsuit in the Northern District of Illinois on July 18, 2008.
"Unlawful steering by real estate agents frustrates the rights of people to make fully informed housing choices and perpetuates segregated housing patterns," said Acting Assistant Attorney General Loretta King of the Civil Rights Division. "We appreciate the efforts of NFHA and of investigators at HUD who have helped shine a light on this problem. We will continue to vigorously pursue such discrimination."
"Real estate firms and their agents who steer buyers to different neighborhoods based on race or nationality have violated the Fair Housing Act, and we will enforce the law to ensure that people may purchase homes where they choose and are free from unlawful discrimination," said Patrick Fitzgerald, United States Attorney for the Northern District of Illinois.
"The elimination of racial steering was a principal goal of the Fair Housing Act, when it was signed into law in 1968," said Bryan Greene, HUD's General Deputy Assistant Secretary for Fair Housing and Equal Opportunity. "Today, steering still rears its head. Where it does, HUD will wield the law against it, and in partnership with the Department of Justice, obtain meaningful relief for its victims."
The lawsuit named as defendants S&W Elmhurst LLC, an Elmhurst company that does business under the name RE/MAX East West, and DeJohn. The settlement requires the defendants to pay $120,000 to the NFHA. The settlement also requires RE/MAX East-West to hire a qualified organization to provide fair housing training to its agents and to maintain records and submit periodic reports to the Justice Department. DeJohn is no longer working as a realtor and his Illinois real estate license expires in April 2009. However, the settlement requires DeJohn to comply with similar training and reporting requirements if he decides to become a real estate agent again in Illinois or any other state.
Fighting illegal housing discrimination is a top priority of the Justice Department. The Federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at http://www.usdoj.gov/crt. Persons who believe they have experienced or witnessed unlawful housing discrimination may call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777. More information about the Fair Housing Act can also be found at www.usdoj.gov/fairhousing or www.HUD.gov.
17 February 2009
U.S. Court Permanently Shuts Down Two Pennsylvania Tax PreparersRead the Press Release
WASHINGTON – A federal judge in Pennsylvania has permanently barred Chalamar Muhammad and her husband, Curtis Muhammad, from preparing tax returns for others, the Justice Department announced today. Judge Harvey Bartle III of the U.S. District Court for the Eastern District of Pennsylvania entered the order of permanent injunction after the Coatesville, Pa., couple failed to defend against the government’s allegations. The case against the third defendant, Chalamar’s mother, Doranna Muhammad, remains pending.
According to the government complaint in the case, the three family members operated CDC Tax Preparation and Financial Services. The firm allegedly prepared federal income tax returns for customers claiming fabricated deductions and credits. Examples of bogus tax deductions mentioned in the government’s court papers include false claims of contributions of thousands of dollars to churches and charities, and false claims of education credits. According to the complaint, the Internal Revenue Service (IRS) has identified more than $2.2 million in unreported tax liability on returns prepared by the defendants that it has audited, and estimates that the total cost to the U.S. Treasury from the defendants’ misconduct may exceed $7 million.
The government complaint alleges that the firm prepared more than 2,600 tax returns for customers since 2003. Chalamar Muhammad allegedly tried to obstruct IRS audits of her customers’ returns by submitting documents that she fabricated to purportedly substantiate bogus deductions and credits. The complaint alleges that the Muhammads changed the business’s name and its IRS electronic filing number frequently in order to stay a step ahead of the law. As part of the court’s order, Chalamar and Curtis Muhammad are permanently barred from using the IRS’s E-File program to file tax returns for others.
Acting Assistant Attorney General John A. DiCicco thanked Tax Division trial attorney Ellen Weis for her handling of the government’s case, and Revenue Agent Julie Hersh of the Internal Revenue Service’s Small Business Self-Employed Division for her extensive investigative work. Over the past decade, the Justice Department’s Tax Division has obtained injunctions against more than 375 tax return preparers and tax-fraud promoters.
Information about the Justice Department’s Tax Division and its efforts to stop tax-fraud promoters and fraudulent tax preparers is available on the Justice Department’s Web site.
Injunction
Texas Man Sentenced to 41 Months in Prison for Selling Counterfeit <br /> Software Worth $1 Million on Web SitesRead the Press Release
WASHINGTON - Timothy Kyle Dunaway, 24, of Wichita Falls, Texas, was sentenced today to 41 months in prison by U.S. District Court Judge Reed O’Connor in Wichita Falls for selling counterfeit computer software through the Internet in violation of criminal copyright infringement laws, Acting Assistant Attorney General Rita M. Glavin of the Criminal Division and Acting U.S. Attorney James T. Jacks for the Northern District of Texas announced. The software sold by Dunaway had a combined retail value of more than $1 million.
Dunaway was also sentenced to two years of supervised release and ordered to pay $810,257 in restitution. Judge O’Connor also ordered Dunaway to forfeit a Ferrari 348 TB and a Rolex watch purchased with illegal proceeds of the scheme. Dunaway pleaded guilty in Wichita Falls on Oct. 30, 2008, to one count of criminal copyright infringement for selling pirated business software through the Internet.
According to court documents, from July 2004 through May 2008, Dunaway operated approximately 40 Web sites that sold a large volume of downloadable counterfeit software without authorization from the copyright owners. Dunaway admitted he operated computer servers in Vienna, Austria and Malaysia. Agents of U.S. Immigration and Customs Enforcement (ICE), working in cooperation with foreign law enforcement, seized Dunaway’s international computer servers. According to court documents, Dunaway promoted his illicit scheme by purchasing advertising for his Web sites from major Internet search engines. Throughout the entire course of the scheme, the defendant processed more than $800,000 dollars through credit card merchant accounts under his control.
The case is part of the Department of Justice’s ongoing initiative to combat the sale of pirated software and counterfeit goods through commercial Web sites and online auction sites such as eBay. To date, the Department has obtained 33 convictions involving online auction and commercial distribution of counterfeit software. The Department’s initiative to combat online auction piracy is just one of several steps being undertaken to address the losses caused by intellectual property theft and hold responsible those engaged in criminal copyright infringement.
The case is being prosecuted by Trial Attorney Marc Miller of the Criminal Division’s Computer Crime and Intellectual Property Section as well as Assistant U.S. Attorneys Alex C. Lewis and Diane Kozub for the Northern District of Texas. The case was investigated by the multi-agency Intellectual Property Rights Coordination Center, the ICE Cyber Crimes Center and the Dallas office of ICE.
Justice Department Receives $4 Billion in Grant Funding as a Result of the American Recovery and Reinvestment Act of 2009Read the Press Release
WASHINGTON — Today President Obama signed the American Recovery and Reinvestment Act of 2009 (H.R.1), which includes $4 billion in Department of Justice grant funding to enhance state, local, and tribal law enforcement efforts, including the hiring of new police officers, to combat violence against women, and to fight internet crimes against children, the Department of Justice announced.
“This funding is vital to keeping our communities strong,” said Attorney General Eric Holder. “As governors, mayors, and local law enforcement professionals struggle with the current economic crisis, we can’t afford to decrease our commitment to fighting crime and keeping our communities safe. These grants will help ensure states and localities can make the concerted efforts necessary to protect our most vulnerable communities and populations.”
Specific Department of Justice investments in the Act include:
- $1 billion to fund local police officers through Community Oriented Policing Services (COPS) program. These grants will fund an estimated 5,500 local police officers through the COPS Hiring Recovery Program.
- $2 billion in the Edward Byrne Justice Assistance Grant (JAG) program through the Office of Justice Programs (OJP) to fund grants for state and local programs that combat crime. The Byrne JAG program is distributed by formula – 60 percent to the states and 40 percent to the local law enforcement efforts.
- Resources from the Office on Violence Against Women for programs that help our most vulnerable populations -- $225 million in Violence Against Women Act Grants. Also provides $100 million through OJP for grants to assist victims of crime, $225 million for tribal law enforcement assistance, and $50 million for the Internet Crimes Against Children Task Forces.
- Provides an additional $390 million from OJP for local law enforcement assistance, including $225 million in competitive Byrne grants, $125 million targeted for rural areas, and $40 million for the Southern border (including $10 million for ATF’s Project Gunrunner).
The Act also includes funds for the administration of the Department’s Recovery Act grants and associated oversight and accountability.
Information regarding COPS can be found at http://www.cops.usdoj.gov. Press inquiries may be directed to Corey Ray, 202-616-1728.
Information about the Office of Justice Programs can be found at http://www.ojp.usdoj.gov. Press inquiries may be directed to OJP’s Office of Communications at 202-307-0703.
Information about the Office on Violence Against Women can be found at http://www.ovw.usdoj.gov. Press inquiries may be directed to Joan LaRocca at 202-307-6026.
Atlantic City Tax Return Preparer Sentenced to Jail for FraudRead the Press Release
WASHINGTON – Eduardo Cortez, a resident of Mays Landing, N.J., was sentenced to 36 months incarceration and three years of supervised release by U.S. District Judge Noel L. Hillman in Camden, N.J., the Justice Department and Internal Revenue Service (IRS) announced today. According to his plea agreement, Cortez and his employees knowingly prepared false and fraudulent tax returns for customers that included false and inflated deductions, credits and adjustments. Cortez, who is also known as Eduardo Cortes, Edward Cortez, Eduardo Perez, and Eduardo Cottes, was also ordered to pay restitution of $442,734.
In August 2008, Cortez pleaded guilty to tax evasion and conspiracy to defraud the IRS. According to his plea agreement, Cortez defrauded the IRS by preparing false tax returns for customers of his business, Peoples Multiple Services, located in Atlantic City. Peoples also operated under the names People Tax Services, Perez Income Tax Services, People Multiple Services Inc., Peoples Multi Level Services and Cormel Inc.
According to his plea agreement, Cortez entered into an agreement with the IRS in 2000 stating that he owed over $114,000 in taxes, exclusive of interest and penalties, for calendar years 1993 through 1995. The plea agreement states that Cortez evaded these assessed taxes by taking various steps to conceal his assets and income from the IRS. His conduct, according to the plea agreement, included submitting false documents to the IRS which misrepresented his ability to pay his taxes and understated his net worth.
The plea agreement states that Cortez also used nominees to hide his income from the IRS. It further states that he had his business income paid to nominees and deposited into bank and brokerage accounts opened in the names of those nominees. Cortez also admitted in his plea agreement that he caused his personal expenses to be paid for by the nominees and caused tax returns to be filed in the names of nominees which falsely reported Cortez’s business income and assets.
Rosalind Kengkart, a co-defendant of Cortez who pleaded guilty to conspiracy to impede the IRS in July 2008, is scheduled to be sentenced by Judge Hillman on Feb. 18, 2009. According to her plea agreement, Kengkart, a resident of Atlantic City, prepared false tax returns for customers at Peoples that included false and inflated deductions, credits, and adjustments.
John A. DiCicco, Acting Assistant Attorney General of the Justice Department’s Tax Division, commended the IRS special agents who investigated the case, as well as Tax Division trial attorneys Shawn T. Noud and Mark F. Daly who prosecuted the case. More information about the Justice Department’s Tax Division and its enforcement efforts is available at http://www.usdoj.gov/tax/.
13 February 2009
U.S. Asks Federal Court to Shut Down Iowa Tax PreparersRead the Press Release
WASHINGTON — The United States has sued a Clive, Iowa, couple to bar them from preparing federal tax returns for others, the Justice Department announced today. According to the government complaint, Jill Schwartz-Musin, her husband Howard Musin, and their business, SSC Services, prepare fraudulent federal income tax returns for small business owners.
The complaint alleges that the couple prepares income tax returns for customers throughout the nation, many of whom operate home-based businesses. According to the complaint, Schwartz-Musin promoted her tax business at an annual conference for Shaklee Corporation distributors.
The complaint also alleges the couple claim fabricated business expenses on customers’ returns —sometimes for tens of thousands of dollars —in order to reduce their taxes. The suit alleges the couple improperly claimed business expense deductions on customers’ returns for costs of such personal items as clothing, hair care, nail care, use of tanning salons, a hot tub, furniture in a vacation home, gifts to family members and vacation trips to Sweden and Cancun, Mexico. In what the complaint calls an egregious example of misconduct, the couple allegedly claimed business deductions on one customer’s return for wedding expenses that included payments for flowers, photography and makeup.
The government alleges that Schwartz-Musin and Musin have prepared over 5,500 income tax returns between 2003 and 2006. The complaint estimates that the fraudulent deductions on returns the defendants prepared have cost the United States over $21 million between 2003 and 2007.
Over the past decade, the Justice Department has obtained injunctions against more than 370 tax preparers and tax-fraud promoters. Information about these cases is available on the Justice Department website.
Three Miami Physicians and Three Medical Workers Charged with $10 Million Medicare Fraud SchemeRead the Press Release
WASHINGTON – Six Miami-Dade County residents have been indicted in connection with an alleged $10 million Medicare fraud scheme operated out of Midway Medical, a Miami clinic that purported to specialize in treating HIV/AIDS patients, Acting Assistant Attorney General Rita M. Glavin of the Criminal Division and U.S. Attorney R. Alexander Acosta of the Southern District of Florida announced.
Carmen Lourdes del Cueto, M.D., 65, Roberto Rodriguez, M.D., 54, Carlos Garrido, M.D., 69, Gonzalo Nodarse, 38, Alexis Carrazana, 41, and Alexis Dagnesses, 44, were all indicted by a grand jury in Miami on Feb. 12, 2009, for conspiracy to commit health care fraud. Del Cueto, Rodriguez, Garrido and Nodarse were also charged with conspiracy to launder health care fraud proceeds, as well as three counts each of substantive money laundering. The indictment seeks the forfeiture of assets from all named defendants.
According to the indictment, the three physicians, del Cueto, Rodriguez and Garrido, were part-owners of Midway Medical. Midway Medical purported to be an infusion clinic that specialized in providing infusions and injections to HIV-positive patients. The indictment alleges that the physicians ordered medically unnecessary infusions and injections, and falsified medical records to make it appear that the HIV services were necessary. The indictment also alleges that many of the infusions or injections were never actually provided.
The indictment also alleges that medical assistants Nodarse and Carrazana assisted the physicians in falsifying the medical records to make it appear that the services were needed. As part of the scheme, Dagnesses is alleged to have manipulated HIV-positive blood samples in order to obtain laboratory reports indicating that the patients had illnesses that they in fact did not have.
Del Cueto, Rodriguez, Garrido and Nodarse are further charged with distributing the proceeds of the fraud through a series of financial transactions involving more that $10,000 in tainted funds.
The indictment alleges that the physicians at Midway Medical billed more than $10 million to the Medicare program for services that were medically unnecessary and not actually provided between September 2002 and June 2005. During that time frame, Medicare paid more than $4.8 million on those fraudulent claims submitted by Midway Medical. If convicted on all charges, Del Cueto, Rodriguez, Garrido and Nodarse each face maximum prison sentences of 50 years. Carrazana and Dagnesses face 10 year maximum terms in prison.
An indictment is merely a charge and defendants are presumed innocent until proven guilty.
The case is being prosecuted by Trial Attorney John K. Neal and Deputy Chief Kirk Ogrosky of the Criminal Division’s Fraud Section. The case was investigated by the FBI and the Department of Health and Human Services, Office of Inspector General. The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and U.S. Attorney Acosta of the Southern District of Florida. Since strike force operations began in March 2007, 107 cases including 196 defendants have been indicted. Collectively, these defendants are alleged to have fraudulently billed the Medicare program for more than $600 million.
Justice Department Seeks to Shut Down Sacramento Tax Preparation FirmRead the Press Release
WASHINGTON – The United States has sued a Sacramento, Calif., tax preparer, Chris Elmer, his firm – Associated Tax Planners Inc. (ATP) – and several members of his family associated with ATP, seeking to bar them all permanently from the tax-preparation business, the Justice Department announced today. The civil injunction suit was filed in Sacramento with the U.S. District Court for the Eastern District of California.
The complaint alleges that ATP prepares thousands of federal income tax returns for individuals and businesses each year, and repeatedly claims false or inflated business deductions. Many of the deductions are allegedly claimed as purported business expenses of sham partnerships. The complaint alleges that in many instances the defendants claimed purported partnership business losses on customers’ individual tax returns regardless of whether the customers actually had a partnership or other business enterprise.
The complaint further alleges that the defendants and their customers often do not file a corresponding partnership return when the customers report partnership losses on their individual returns. The defendants also allegedly fabricate phony Internal Revenue Service (IRS) tax identification numbers for the partnerships to conceal their sham nature.
The defendants allegedly told customers and other tax preparers that the IRS is unlikely to detect the defendants’ deductions because the IRS is unlikely to audit a small partnership. Chris Elmer allegedly told one customer that this made a small partnership an ideal vehicle in which to "tuck" personal expenses as business-expense deductions.
"The public should beware of tax preparers who claim to know how to hide deductions from the Internal Revenue Service," said John DiCicco, Acting Assistant Attorney General for the Justice Department’s Tax Division. "Taxpayers should carefully review their returns before they are filed with the IRS."
Over the past decade, the Justice Department has obtained injunctions against more than 370 tax preparers and tax-fraud promoters. Information about these cases is available on http://www.usdoj.gov/tax/.
German National Arrested for Smuggling Coral from the PhilippinesRead the Press Release
WASHINGTON—Gunther Wenzek, a German national, was arraigned today in U.S. District Court in Alexandria, Va., on a nine count indictment charging him with three felony counts of smuggling protected coral into the United States port of Portland, Ore., three felony counts of violating the Lacey Act and three misdemeanor charges of violating the Endangered Species Act, the Justice Department announced. Wenzek appeared today before U.S. Magistrate Judge T. Rawles Jones, Jr. of the Eastern District of Virginia.
A grand jury in Portland, Ore. indicted Wenzek in July 2008. The indictment had been sealed pending Wenzek’s scheduled appearance at the Global Pet Expo in Orlando, Fla., this week. Law enforcement officials arrested Wenzek Wednesday night as he entered the United States at Dulles airport outside of Washington, D.C., en route to the pet exposition.
According to the indictment, Wenzek owns a company named CoraPet, based in Essen, Germany, and has sold various coral products to retailers in the United States. An investigation was launched in 2007 after Wenzek tried to ship a container loaded with fragments of endangered coral from reefs off the Philippine coast to Portland. After this initial shipment, agents subsequently seized two full containers of endangered coral shipped by Wenzek to a customer in Portland. These two shipments made up a total of over 40 tons of coral.
The corals seized have been identified as corals from the scientific order Scleractinia, genera Porites, Acropora, and Pocillopora, common to Philippine reefs. Due to the threat of extinction, stony corals, such as those seized in this case are protected by international law. Philippine law specifically forbids exports of all coral. Moreover, the Convention on International Trade in Endangered Species (CITES) bars importation of the coral Wenzek tried to import to customers in the United States, absent a permit.
“Protection of coral reefs continues to play an important role in the Department of Justice’s environmental enforcement efforts both domestically and internationally, said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “Preventing the further decline of coral reefs is of paramount importance in preserving our marine environment and fisheries.”
Andrew Bruckner, a biologist from the National Oceanic Atmospheric Administration, Office of Law Enforcement said, “The removal of dead coral and live rock is of major concern for coral reefs, including those reefs protecting coastal communities from storms. These corals are the fundamental building blocks of the coral reef ecosystem. Unsustainable collection of coral frequently results in the loss of important nursery areas, feeding grounds, refuge for fish and invertebrates, and increased erosion of reef systems.”Karin J. Immergut, U.S. Attorney for the District of Oregon, said, “We will not allow criminals to profit from the illegal devastation of the world’s coral reefs. We will scour the globe for those responsible for this devastation and bring them to justice.”
“We appreciate the support from fellow law enforcement on this very important investigation,” said Paul Chang, Special Agent in Charge of Law Enforcement for the U.S. Fish and Wildlife Service's Pacific Region, based in Portland. “Stopping the type of criminal activity alleged in this case ranks among our highest priorities because of the very significant impact it has on the dwindling coral reefs of the world.”
The Lacey Act prohibits import, export, transportation, sale, receipt, acquisition or purchase of fish, wildlife, or plants that are taken, possessed, transported or sold in violation of any federal, state, tribal or foreign law.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty in a court of law.The case was investigated by the U.S. Fish and Wildlife Service, U.S. Immigration and Customs Enforcement, and the National Marine Fisheries Service. The case is being prosecuted by Assistant U.S. Attorney, Dwight Holton from the District of Oregon and Senior Trial Attorney J. Ronald Sutcliffe of the Justice Department’s Environmental Crimes Section, with assistance from the Eastern District of Virginia.
Co-Founder of Casino-Cheating Criminal Enterprise Pleads Guilty to Racketeering Conspiracy Targeting Casinos in the United States and CanadaRead the Press Release
WASHINGTON – Tai Khiem Tran, 47, pleaded guilty today in San Diego to conspiring to participate in a racketeering enterprise, the "Tran Organization," in a scheme to cheat casinos across the United States and Canada, Acting Assistant Attorney General Rita M. Glavin of the Criminal Division and U.S. Attorney Karen P. Hewitt for the Southern District of California announced today. Tran admitted that he and his co-conspirators unlawfully obtained up to $1 million during card cheats.
A three-count indictment was returned May 22, 2007, and unsealed in the Southern District of California on May 24, 2007, charging Tran and 13 others each with one count of conspiracy to participate in the affairs of a racketeering enterprise; one count of conspiracy to commit several offenses against the United States, including conspiracy to steal money and other property from Indian tribal casinos; and one count of conspiracy to commit money laundering. The indictment also charged five separate individuals each with one count of conspiracy to commit several offenses against the United States, including conspiracy to steal money and other property from Indian tribal casinos; and one count of conspiracy to commit money laundering.
In his plea agreement, Tran admitted that in or about August 2002, he, with co-conspirators Phuong Quoc Truong, Van Thu Tran, and others, created a criminal enterprise defined in the indictment as the "Tran Organization" based in San Diego and elsewhere for the purpose of participating in gambling cheats at casinos across the United States.
In his plea agreement, Tran admitted that on numerous occasions between approximately August 2002 and June 2005, he participated in gambling cheats together with other alleged members of the Tran Organization at casinos in California and Canada. Tran admitted to targeting at least seven casinos in the racketeering conspiracy, including:
- Agua Caliente Casino, in Palm Springs, Calif.;
- Barona Valley Ranch Resort and Casino, in Lakeside, Calif.;
- Cache Creek Casino Resort, in Brooks, Calif.;
- Casino Rama, in Orillia, Ontario, Canada;
- Pechanga Resort and Casino, in Temecula, Calif.;
- Spa Resort Casino, in Palm Springs, Calif.; and
- Sycuan Casino, in El Cajon, Calif.
According to the indictment, the defendants and others executed a "false shuffle" cheating scheme at casinos in the United States and Canada during blackjack and mini-baccarat games. The indictment alleges that members of the criminal organization bribed casino card dealers and supervisors to perform false shuffles during card games, thereby creating "slugs" or groups, of un-shuffled cards. The indictment also alleges that after tracking the order of cards dealt in a card game, a member of the organization would signal to the card dealer to perform a "false shuffle," and members of the group would then bet on the known order of cards when the slug appeared on the table. By doing so, members of the conspiracy repeatedly won thousands of dollars during card games, including winning up to $868,000 on one occasion.
The indictment also alleges that the members of the organization used sophisticated mechanisms for tracking the order of cards during games, including hidden transmitter devices and specially created software that would predict the order in which cards would reappear during mini-baccarat and blackjack games.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Tran’s sentencing is scheduled for July 13, 2009, in San Diego before U.S. District Judge John A. Houston. At sentencing, Tran faces a maximum sentence of 20 years in prison on the racketeering conspiracy charge. Tran agreed to a personal money judgment in the amount of $823,612, which will be entered by way of a preliminary order of forfeiture. He also acknowledged that the restitution that he may be ordered to pay by the court at sentencing is not limited by the forfeiture amount. Tran agreed to the forfeiture of his interests in various assets, including a house in the San Diego area, a 2006 Mercedes Benz, and various pieces of jewelry. Tran was also charged in Orillia, Ontario, Canada, for his admitted cheating activities at Casino Rama.
A second indictment has alleged that 11 additional defendants conspired to commit offenses on behalf of the Tran Organization. A one-count indictment, unsealed in the Southern District of California on Sept. 11, 2008, charged Bryan Arce; Don Man Duong; Hogan Ho; Thang Viet Huynh; Outtama Keovongsa; Leap Kong, a/k/a Lanida Kong; Qua Le; Khunsela Prom, a/k/a Danny Prom; James Root; Darrell Saicocie; and Dan Thich each with one count of conspiracy to commit several offenses against the United States, including conspiracy to steal money and other property from Indian tribal casinos, and conspiracy to travel in interstate and foreign commerce in aid of racketeering.
To date, 26 defendants, including Tran, have pleaded guilty to charges relating to the casino-cheating conspiracy: Phuong Quoc Truong; Anh Phuong Tran; Phat Ngoc Tran; Martin Lee Aronson; Liem Thanh Lam; George Michael Lee; Tien Duc Vu; Son Hong Johnson; Barry Wellford; Willy Tran; Tuan Mong Le; Duc Cong Nguyen; Han Truong Nguyen; Roderick Vang Thor; Sisouvanh Mounlasy; Navin Nith; Renee Cuc Quang; Ui Suk Weller; Phally Ly; Khunsela Prom; Hop Nguyen; Hogan Ho; Darrell Saicocie; Bryan Arce; and Qua Le. These defendants admitted to targeting, with the aid of coconspirators, a combined total of approximately 24 casinos during the course of the conspiracy.
The case is being investigated by the FBI’s San Diego Field Office; the Internal Revenue Service-Criminal Investigation; the San Diego Sheriff’s Department; and the California Department of Justice’s Bureau of Gambling Control. The investigation has received assistance from federal, state, tribal and foreign authorities, including: the Ontario Provincial Police; the National Indian Gaming Commission; the U.S. Attorney’s Office for the Western District of Washington; FBI Resident Agencies in Gulfport, Miss., Tacoma, Wash., and Toledo, Ohio; the Indiana State Police; the Rumsey Rancheria Tribal Gaming Agency; the Sycuan Gaming Commission; the Barona Gaming Commission; the Mississippi Gaming Commission; and the Washington State Gambling Commission.
The prosecution of the case is led by the Criminal Division’s Organized Crime and Racketeering Section (OCRS). Department of Justice Trial Attorneys Joseph K. Wheatley, Robert S. Tully and Gavin A. Corn are prosecuting the indictment in San Diego.
AT&T Technical Services Corp. to Pay U.S. more than $8.2 Million to Settle False Claims Involving the E-Rate ProgramRead the Press Release
WASHINGTON – AT&T Technical Services Corp. (AT&T-TSCO) has agreed to pay $8,266,414.33 as part of a civil settlement relating to allegations that the company violated the False Claims Act in connection with the Federal Communication Commission's E-Rate program, the Justice Department announced today.
The E-Rate program, created by Congress in the Telecommunications Act of 1996, provides funding for needy schools and libraries to connect to and utilize the Internet. Under the E-Rate program, which is funded by monies collected from telephone users, schools apply for funds to pay for hardware and monthly connectivity service fees. The FCC oversees the E-Rate program.
The United States contended that AT&T-TSCO engaged in non-competitive bidding practices for E-rate contracts. Additionally, the government alleged that AT&T-TSCO claimed and received E-rate funds for goods and services that were ineligible for the program’s discounts, overbilled the E-Rate program for services provided and facilitated a payment or profit to the applicant from E-Rate funds.
The agreed-to resolution announced today resulted from an ongoing federal investigation of fraud and anti-competitive conduct in the E-Rate program in Indiana. The investigation is being conducted jointly by the Justice Department’s Civil Division, the U.S. Attorney's Office for the Southern District of Indiana and the FCC Office of the Inspector General.
APL Ltd. to Pay U.S. $26.3 Million to Resolve Fraud Allegations for Inflated Shipping Costs to Military in Iraq and AfghanistanRead the Press Release
WASHINGTON– APL Limited has agreed to pay the government $26.3 million to resolve allegations that it submitted false claims to the United States in connection with contracts to transport cargo in shipping containers to support U.S. troops in Iraq and Afghanistan, the Justice Department announced today. The government alleges that APL, a wholly-owned American subsidiary of Singapore-based Neptune Orient Lines Limited, knowingly overcharged and double-billed the Department of Defense to transport thousands of containers from ports to inland delivery destinations in Iraq and Afghanistan.
The government alleges that APL inflated its invoices in several ways. For example, APL billed in excess of the rate it paid to plug refrigerated containers holding perishable cargo into a source of electricity at a port in Karachi, Pakistan; billed in excess of the contractual rate to maintain the operation of refrigerated containers at a port in Karachi and at U.S. military bases in Afghanistan; and billed for various non-reimbursable services performed by APL’s subcontractor at a Kuwaiti port.
"Today’s settlement demonstrates our commitment to ensure that contractors doing business with the military in Iraq and Afghanistan perform their contracts ethically, and that taxpayer funds are not misused," said Acting Assistant Attorney General Michael F. Hertz of the Justice Department’s Civil Division.
The settlement resolves allegations against APL that were filed in San Francisco, Calif., by Jerry H. Brown II, an employee of the company. The lawsuit was filed under the qui tam or whistleblower provisions of the federal False Claims Act, which permit private individuals called "relators" to bring lawsuits on behalf of the United States and receive a portion of the proceeds of a settlement or judgment awarded against a defendant. The relator in this action will receive $5.2 million as his statutory share of the proceeds of this settlement.
"The prosecution of this lawsuit and this settlement demonstrate the importance of the Federal Civil False Claims Act in, on the one hand, rewarding "whistle blowers" who have valuable credible information about fraud waste and abuse and the courage to bring that information to the attention of the Department of Justice and, on the other, allowing the government to conduct a thorough investigation of the allegations, usually without first having to disclose that an investigation is underway, thereby achieving the maximum recovery possible in an efficient and cost-effective way," said Joseph P. Russoniello, U.S. Attorney for the Northern District of California.
The settlement with APL was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division; the U.S. Attorney’s Office for the Northern District of California, Affirmative Civil Enforcement Unit; the Defense Criminal Investigative Service of the Department of Defense; the Army’s Criminal Investigation Command; and the Defense Contract Audit Agency of the Department of Defense.
"The Defense Criminal Investigative Service (DCIS) is thoroughly committed to pursuing any and all allegations of fraud that drain precious resources from America's war fighters, said Sharon Woods, Director, DCIS. "This particular fraud was directly related to the supply lines supporting our brave soldiers, sailors, airmen, marines and U.S. civilians in Iraq and Afghanistan. The settlement with APL was only made possible by the hard work of the prosecutors from the Department of Justice and agents from the DCIS/Army Criminal Investigation Command with support from auditors of the Defense Contract Audit Agency."
"The fighting men and women of America who serve in our Armed Forces today are putting their lives on the line for this country. Allegations that someone would attempt to illegally profit from this situation will be aggressively investigated," said Brigadier General Rodney Johnson, the commanding general of the U.S. Army Criminal Investigation Command. "We will do everything in our investigative power to ensure our Special Agents are aggressively pursuing allegations of this nature and helping to hold those responsible accountable."
Assistant U.S. Attorney Steven J. Saltiel handled the matter on behalf of the U.S. Attorney’s Office, with the assistance of Legal Assistant Kathy Terry, together with Civil Division attorney Andrew A. Steinberg.
12 February 2009
Four Individuals Indicted for Racially-Motivated Assault in Nampa, IdahoRead the Press Release
WASHINGTON – Four individuals have been arrested and charged with carrying out a racially-motivated beating and conspiring to interfere with the civil rights of an African-American man in Nampa, Idaho.
The indictment, returned on Feb. 11, 2009, by a federal grand jury in the District of Idaho, was announced by Acting Assistant Attorney General Loretta King of the Civil Rights Division; U.S. Attorney Thomas E. Moss for the District of Idaho; Timothy J. Fuhrman, Special Agent in Charge of the FBI’s Salt Lake City Field Office; and Chief Bill Augsburger of the Nampa Police Department.
The indictment alleges that on July 4, 2008, Michael J. Bullard, Jennifer J. Hartpence, a/k/a Jennifer J. Erickson, Richard C. Armstrong and James D. Whitewater, encountered an African-American man inside a Wal-Mart Supercenter store. As the defendants left the store, they discussed beating this African-American man and made preparations for the attack. When the African-American man left the store, the defendants allegedly threatened him, called him racial slurs and Bullard asked him what country he thought he was in. The African-American man tried to run away, but Bullard, Armstrong and Whitewater allegedly chased him across the store’s parking lot, where they tackled him and repeatedly hit and kicked him.
"Hate crimes tear at the very fabric of our great nation and we must remain vigilant in our efforts to combat them," said Acting Assistant Attorney General Loretta King.
"We are well past the time in Idaho when a person’s race, color, religion or ethnicity can be the basis for an assault," said U.S. Attorney Thomas E. Moss. "Everyone has a legal right to frequent a business that serves as a public accommodation without being injured or intimidated based on race. This office will vigorously pursue prosecution of individuals who perpetrate hate crimes."
"One cannot help but note the irony that the terrible acts described in the indictment occurred on the 4th of July last year," said Timothy J. Fuhrman, Special Agent in Charge of the FBI’s Salt Lake City Field Office. "The initial aggressive investigative efforts by the Nampa Police Department in this matter were instrumental in leading to the indictment of these four individuals. In this day and age law enforcement cannot tolerate such activity, and the FBI is committed to investigating these incidents aggressively and without fail."
"This case is important in so much as the vigorous investigation by Nampa Detectives, cooperation by the citizens of Nampa and of the hard work on the part of the Federal Bureau of Investigation shows that hate bias crimes are taken very seriously and will not be tolerated," said Nampa Police Department Chief Bill Augsburger.
If convicted, Bullard, Hartpence, Armstrong and Whitewater face a maximum prison sentence of 20 years. The details contained in the indictment are only allegations; the defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the FBI and the Nampa Police Department. It is being prosecuted by Assistant U.S. Attorney Wendy Olson of the U.S. Attorney’s Office for the District of Idaho and Trial Attorney Erin Aslan of the Justice Department’s Civil Rights Division.
Five Defendants Convicted of International Sex Trafficking for Forcing Central American Girls and Women into ProstitutionRead the Press Release
WASHINGTON – Five defendants, all members or associates of an extended family, face potential life sentences after being found guilty of sex trafficking for participating in a scheme that lured young Central American women and girls into the Los Angeles area and forced them into prostitution, announced Acting Assistant Attorney General Loretta King for Civil Rights Division and U.S. Attorney Thomas O’Brien for the Central District of California.
The defendants, four Guatemalan nationals and one Mexican citizen, were convicted on Feb. 11, 2009, of conspiracy; sex trafficking by force, fraud or coercion; and importation of aliens for purposes of prostitution. The jury in the case was unable to reach unanimous verdicts on additional charges.
During a six-week trial, the government presented evidence that the defendants targeted young, uneducated, impoverished and undocumented women and girls from Central America. The defendants conspired to lure and smuggle their victims into the United States for prostitution by enticing them with false promises of legitimate jobs. But after arranging for the victims to be smuggled across the U.S.-Mexico border, the defendants used a combination of threats, including deception, rape, physical violence and witchcraft, to compel the victims to perform acts of prostitution.
The defendants intimidated and controlled their victims, the evidence showed, by threatening that if the victims tried to escape, the defendants or their associates would find them, beat them and kill their loved ones in Guatemala. Some defendants also used witch doctors to threaten the girls that a curse would be placed on them and their families if they tried to escape. Two defendants further restrained the victims by locking them in at night and blockading windows and doors to prevent their escape. The defendants’ scheme of coercion and control also included, according to the evidence presented at trial, beatings and threats; manipulation of debts; verbal abuse; psychological manipulation; strict controls over the victims’ work schedules; and ominous comments about consequences that befell the families of other victims who attempted to escape.
Defendants collected the profits generated by the compelled prostitution, and maintained control of the prostitution proceeds, earning tens of thousands of dollars for their profit while the victims received almost nothing.
The defendants found guilty are Gladys Vasquez Valenzuela, aka Gladys, 38; Mirna Jeanneth Vasquez Valenzuela, aka Miriam, 27; Gabriel Mendez, 34; Maria de los Angeles Vicente aka Angela, 29; and Maribel Rodriguez Vasquez, 29. All of the defendants face statutory maximum penalties of life in prison. All of the defendants except Rodriguez Vasquez face a mandatory minimum sentence of 15 years in prison.
U.S. District Judge Margaret M. Morrow, who presided over the trial, will sentence the defendants later this year.
Additional defendants Flor Morales Sanchez, Pablo Bonifacio, Luis Vicente Vasquez and Albertina Vasquez Valenzeula previously pleaded guilty to various offenses in connection with the defendants’ scheme.
"It is heart-wrenching to see young girls and women being victimized and exploited in this horrific way. The Civil Rights Division will work in conjunction with U.S. Attorneys Offices nationwide to stamp out this vicious and intolerable crime and seek significant prison sentences for anyone engaging in these despicable acts," said Loretta King, Acting Assistant Attorney General for Civil Rights. "This verdict is a message to all international and domestic sex traffickers that they cannot escape justice for committing egregious human rights violations."
"The defendants in this case trafficked in human beings, using these victims’ desire for a better life to lure them into a situation where they were deprived of their basic human rights," said U.S. Attorney Thomas P. O’Brien. "No one should be victimized in this way."
Human trafficking prosecutions are a top priority of the Justice Department. In Fiscal Year 2008, the Civil Rights Division and U.S. Attorneys’ Offices filed a record number of criminal civil rights cases, including record numbers of both sex trafficking and labor trafficking cases.
The case was prosecuted by Assistant U.S. Attorneys Cheryl O’Connor Murphy, Curtis A. Kin, Anthony J. Lewis, Sara J. Heidel and Special Litigation Counsel Andrew J. Kline from the Civil Rights Division. The case was investigated by Special Agents Tricia Whitehill and Valerie Venegas of the FBI, Miguel Palomino of U.S. Immigration and Customs Enforcement and Jesus Quezada from the U.S. Department of Labor.
District of Columbia Seafood Company, Owner and Employee Plead Guilty to Federal Trafficking ChargesRead the Press Release
WASHINGTON—A fish wholesaler, its owner and an employee have all pleaded guilty in U.S. District Court for the District of Columbia for the illegal purchase and sale of striped bass from the Chesapeake Bay and Potomac River from 2003 through 2007, the Justice Department announced today.
Cannon Seafood Inc., its owner and president Robert Moore Sr. of Falls Church, Va., and Robert Moore Jr. of Ashburn, Va., each pleaded guilty to one felony violation of the Lacey Act. The Act prohibits individuals or corporations from creating false records for fish, and from transporting, selling, or buying fish harvested illegally.
Under the terms of the plea agreement, Cannon Seafood has agreed to pay a fine of $80,000 and pay $28,000 in restitution to the congressionally established National Fish and Wildlife Foundation (NFWF). Moore Sr. has agreed to pay a $40,000 fine and pay $15,000 in restitution to the NFWF and Moore Jr. has agreed to pay a $30,000 fine and pay $10,000 in restitution to the same foundation. The court set a sentencing date of May 8, 2009, at 9:30 A.M.
According to the plea agreement, from April 2003 until June 30, 2007, Moore Sr., Cannon’s majority owner and president and Moore Jr. bought striped bass from Thomas Hallock, a commercial fisherman from Maryland, and Jerry Decatur Sr. and Jerry Decatur Jr., two Virginia fisherman. The Moores knew that striped bass was regulated with various closed seasons and size limits and that Virginia and Maryland required all commercially harvested striped bass to have plastic tags affixed when they were caught.
According to the plea agreement, during this time period, Hallock harvested more striped bass than allowed under his Maryland limit, and did not report the striped bass that he was selling to Cannon. He also caught striped bass during the spawning season when commercial harvest was prohibited, and sold this fish to Cannon. In turn, Moore, Jr. and other Cannon employees, on behalf of Cannon, generated and provided Hallock false receipts for the Maryland-caught striped bass that had been transported from Maryland into the District of Columbia.
Moore Sr. knew that Moore, Jr. and other Cannon employees were generating and providing these false Cannon sales receipts. These receipts falsely reflected that Cannon had purchased another species of fish from Hallock, and also altered the weight and price of the fish in order to conceal the striped bass purchase. During this time period, Cannon generated 168 false receipts for over 62,000 pounds of Maryland striped bass, and paid Hallock over $139,000 for this fish.
Further, Moore Sr. and other Cannon employees, on behalf of Cannon, arranged for and purchased striped bass from the Decaturs that had been transported from Virginia into the District of Columbia, and which did not have plastic tags affixed to the fish as required by Virginia law. Moore Jr., regularly saw striped bass that had been purchased from the Decaturs without affixed tags and, knew that Cannon was buying these striped bass illegally. The majority of untagged fish that Cannon bought from the Decaturs was caught and bought during the spring striped bass spawning seasons when fishing was prohibited because of its importance to the long term propagation of the species. During this time period, Cannon purchased over 30,000 pounds of untagged striped bass from the Decaturs, and paid over $87,000 for the fish.
“Fishing limits in the Chesapeake Bay and Potomac River are designed to protect the healthy sustainable population of striped bass and ensure a viable fishery up and down the eastern seaboard. Seafood wholesalers, like Cannon Seafood, who knowingly help fishermen conceal their illegal activities, and who purchase and resell illegally harvested rockfish are undercutting honest fishermen and risking the continuation of the species,” said John C. Cruden, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.
“This concerted federal and state investigation sheds light on a pattern of abuse that completely undermines the states’ ability to manage and set quotas for striped bass,” said Acting Special Agent in Charge Sal Amato of the U.S. Fish and Wildlife Service’s Northeast Region. “Violations of fishing laws rob future generations of this important Chesapeake Bay resource.”
“The Maryland Department of Natural Resources applauds and was happy to support these enforcement actions to preserve and protect our striped bass resource,” said DNR Secretary John R. Griffin. “Through the enforcement efforts of the Maryland Natural Resources Police and through innovative partnerships with the U.S. Fish and Wildlife Service and our sister states, we are working to ensure that our waterways are used in a lawful manner which provides for enjoyment of these public trust resources for current and future generations.”
“This is a great example of a cooperative law enforcement initiative to protect our natural resources,” said Commissioner Steven G. Bowman of the Virginia Marine Resources Commission, which includes the Virginia Marine Police. “Trafficking in illegal rockfish is not a harmless offense, and the Virginia Marine Police take this quite seriously.”
In related cases, five commercial fishermen have been charged with Lacey Act violations for allegedly transporting and selling striped bass, knowing that they had falsely recorded the numbers and weight on their permit-allocation cards and failed to accurately record the times when the fish were actually harvested. Two additional St. Mary’s County commercial fishermen, Joseph Peter Nelson and Joseph Peter Nelson Jr., have been indicted in the District of Maryland for conspiracy to violate the Lacey Act, and six substantive felony Lacey Act counts. The indictment also seeks forfeiture of vessels and vehicles allegedly used by the Nelsons in carrying out the offenses.
Today’s guilty pleas are the result of the investigation by an interstate task force formed by the U.S. Fish and Wildlife Service, the Maryland Natural Resources Police and the Virginia Marine Police, Special Investigative Unit in 2003. The task force conducted undercover purchases and sales of striped bass in 2003, engaged in covert observation of commercial fishing operations in the Chesapeake Bay and Potomac River area, and conducted detailed analysis of area striped bass catch reporting and commercial business sales records from 2003 through 2007. The investigation is continuing, and charges against others are possible.
These cases are being prosecuted by Senior Trial Attorney Wayne Hettenbach of the Justice Department’s Environmental Crimes Section, and Assistant U.S. Attorney Stacy Belf of the U.S. Attorney’s Office for the District of Maryland with assistance from the U.S. Attorneys’ Office for the District of Columbia.