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7 January 2009
Three Staten Island, NY Men Indicted<br /> on Federal Hate Crime Conspiracy ChargesRead the Press Release
WASHINGTON – The Department of Justice announced today the unsealing of an indictment charging three Staten Island, N.Y., men with conspiring to assault African-Americans in retaliation for President-Elect Barack Obama’s election victory.
Ralph Nicoletti and Michael Contreras, both 18, and Brian Carranza, 21, were arrested late Tuesday and are scheduled for arraignment today before U.S. Magistrate Judge Roanne L. Mann in Brooklyn. As alleged in the indictment and other court filings, on the night of Nov. 4, 2008, shortly after learning of Barack Obama’s election victory, the group, along with a fourth friend, decided to find African-Americans to assault.
"It is shocking and sobering that allegations of racial violence continue in this day and age," said Acting Assistant Attorney General Grace Chung Becker. "The Justice Department takes these allegations very seriously and the Civil Rights Division, working with U.S. Attorneys Offices across the country, will continue to use federal laws to prosecute individuals who conspire to commit such acts of violence and intimidation."
As cited in the indictment and other court filings, Nicoletti allegedly drove the other defendants to Park Hill, a predominantly African-American neighborhood in Staten Island, where they came upon a 17-year-old African-American who was walking home after watching the election at a friend’s house. One of the defendants yelled "Obama!" as they passed the youth, and all four men then got out of the car and beat him, using a metal pipe and a collapsible police baton. The young man, who managed to escape and run home, suffered injuries to his head and legs.
The group then found an African-American man in the Port Richmond section of Staten Island and assaulted him, pushing him to the ground. The defendants also accosted a Latino man, demanding to know for whom he had voted, and later yelled profanities about Obama as they drove past an Election Night gathering of African-Americans at a hair salon.
The group’s final assault involved a man they mistakenly believed to be African-American, whom they spotted walking along Blackford Avenue in Port Richmond. Nicoletti hit him with the car, causing the victim to be thrown onto the hood of the car and into the front windshield, shattering it. Although the victim survived, he was in a coma for a period of time after the attack.
The charges announced today are merely allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, each faces a sentence of up to 10 years in prison.
In addition to Becker, the charges were announced by Benton J. Campbell, United States Attorney for the Eastern District of New York, Joseph M. Demarest, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office, and Raymond W. Kelly, Commissioner of the New York City Police Department.
"Violence and intimidation aimed at interfering with the constitutional rights of every citizen, including the right to vote, which is the bedrock of democracy, will not be tolerated," stated United States Attorney Campbell. "Such conduct is loathsome and despicable, and those who engage in it will be arrested and prosecuted to the fullest extent of the law. We are grateful for our partnership with the Department of Justice Civil Rights Division, Criminal Section, the FBI, and the New York City Police Department, which has been vital to the success of this joint investigation and prosecution."
FBI Assistant Director-in-Charge Demarest stated, "The defendants, motivated by racial animus, committed violent assaults resulting in real, and in one case near-fatal, injuries. But the Election Night assaults, coming on the day when we participate most directly in our democracy, were also an attack on the democratic process and an affront to everyone. The FBI is committed to civil rights enforcement and policing hate crimes."
NYPD Commissioner Kelly stated, "I want to commend the NYPD detectives and their federal partners who pursued this case, particularly NYPD Inspector Michael J. Osgood, who as Commanding Officer of the NYPD Hate Crime Task Force had the foresight to assign a special team on Election Night until 4 a.m. the next morning. These officers were able to respond quickly to the bias attacks and begin an immediate investigation. They located an eyewitness to one of the attacks, and their subsequent distribution of flyers in the Rosebank area of Staten Island over three days led to the first major break in the case. History was made on Election Day. We wanted to make sure those who tried to retaliate did not escape justice."
The government’s case is being prosecuted by Assistant United States Attorneys Pamela K. Chen and Margo K. Brodie and Special Litigation Counsel Kristy Parker.
Settlement Reached in Virginia Stream and Stormwater CaseRead the Press Release
WASHINGTON—Five defendants associated with the construction of the Liberty Village housing development in Lynchburg, Va., will pay a $300,000 penalty and fund more than $1 million in stream and wetlands restoration work for alleged violations of the Clean Water Act and permit restrictions during construction, the Justice Department and U.S. Environmental Protection Agency (EPA) announced.
The settlement with Savoy Senior Housing Corporation, Savoy Liberty Village LLC, SDB Construction, Inc., Best G.C., Inc., and Acres of Virginia, Inc., was part of a consent decree lodged today in the Western District of Virginia by the U.S. Department of Justice on behalf of the EPA.
The consent decree would resolve allegations that the defendants discharged and/or controlled and directed the discharge of pollutants including dredged and/or fill material, sediment, and other pollutants carried by stormwater into waters of the United States during the construction of a housing development without required permits, and then in violation of the stormwater permit after one was obtained.
Specifically, the defendants allegedly buried existing streams on the site and filled wetlands that formed the headwaters of one of the filled streams. Silt and sediment from the construction activities were also discharged into streams on and off the site and flowed downstream to Pine Lake and beyond.
The current owner of the property, Liberty Ridge, LLC, which is not a defendant, has agreed to implement approximately $250,000 in on-site restoration work, which will be funded by the defendants. The defendants will also pay approximately $825,000 to purchase credits to fund stream and wetland restoration projects in the region.
The alleged Clean Water Act violations at the Liberty Village site, located at 5700 Candlers Mountain Road in Lynchburg, Va., occurred from July 2001 through January 2003 when the defendants cleared and graded the site, installed roads and utilities, and completed or partially built several housing units. In the process, the defendants allegedly destroyed approximately 3,765 feet of stream, and wetlands at the headwaters of tributaries to the Roanoke and James Rivers. Silt and sediment were discharged into streams on and off the site and flowed downstream to Pine Lake and beyond.
These waters are important for flood control, nutrient and sediment retention, filtration, water quality improvement and maintenance of healthy aquatic ecological communities for other water bodies down stream. As the result of defendants’ actions, water now flows downstream faster and at a higher temperature, killing or stressing aquatic animals and plants.
The site restoration plan requires restoration of one stream, restoration and enhancement of four ponds, installation of plantings, and eradication of invasive species in certain areas. The consent decree also prohibits future disturbances of the restoration project area. A copy of the decree will be filed with the Circuit Court in Virginia and each future deed, title, or other conveyance instrument must contain a notice stating that the property is subject to this consent decree.
The consent decree is subject to a 30-day public comment period and final court approval. A copy of the consent decree is available on the Department of Justice Web site at: http://www.usdoj.gov/enrd/Consent_Decrees.html.
For more information about wetlands and permitting requirements, go to: http://www.epa.gov/owow/ . For more information on stormwater and permitting requirements, go to http://cfpub.epa.gov/npdes/home.cfm?program_id=6.
Justice Department Seeks Injunction <br /> Against New Black Panther PartyRead the Press Release
WASHINGTON - The Justice Department today filed a lawsuit under the Voting Rights Act against the New Black Panther Party for Self-Defense and three of its members alleging that the defendants intimidated voters and those aiding them during the Nov. 4, 2008, general election.
The complaint, filed in the United States District Court in Philadelphia, alleges that, during the election, Minister King Samir Shabazz and Jerry Jackson were deployed at the entrance to a Philadelphia polling location wearing the uniform of the New Black Panther Party for Self-Defense, and that Samir Shabazz repeatedly brandished a police-style baton weapon.
"Intimidation outside of a polling place is contrary to the democratic process," said Acting Assistant Attorney General Grace Chung Becker. "The Voting Rights Act of 1965 was passed to protect the fundamental right to vote and the Department takes allegations of voter intimidation seriously."
According to the complaint, party Chairman Malik Zulu Shabazz confirmed that the placement of Samir Shabazz and Jackson in Philadelphia was part of a nationwide effort to deploy New Black Panther Party members at polling locations on Election Day. The complaint alleges a violation of Section 11(b) of the Voting Rights Act of 1965, which prohibits intimidation, coercion or threats against "any person for voting or attempting to vote." The Department seeks an injunction preventing any future deployment of, or display of weapons by, New Black Panther Party members at the entrance to polling locations.
The New Black Panther Party for Self-Defense, which claims active chapters nationwide, is distinct from the Black Panther Party founded by Bobby Seale in the 1960s.
The Civil Rights Division enforces the Voting Rights Act of 1965. To file complaints about discriminatory voting practices, including acts of harassment or intimidation, voters may call the Voting Section of the 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’s web site at www.usdoj.gov/crt/voting/index.htm.
Court Orders Sacramento Employer to Timely Pay Withholding and Unemployment TaxesRead the Press Release
WASHINGTON – A federal court in Sacramento, Calif., issued a preliminary injunction ordering Capitol Waste Inc. and Iva and Kenneth Whitmire of Sacramento to comply with federal employment tax withholding requirements and to timely pay all present and future employment tax, unemployment tax and income tax liabilities, the Justice Department announced today. Capitol Waste, Inc. and the Whitmires agreed to the preliminary injunction order.
The Justice Department filed suit on Oct. 8, 2008, seeking to enjoin the defendants from interfering with the administration of the Internal Revenue laws. The complaint alleges that the defendants have failed to comply fully with Capitol Waste’s employment tax, unemployment tax and income tax obligations since 2000. According to the complaint, Capitol Waste failed to pay almost $2.6 million in federal employment and unemployment taxes between 2000 and 2007.
According to court documents, Capitol Waste is a commercial waste disposal business based in Sacramento County, Calif. The complaint also alleges that the Whitmires have failed to comply with their individual income tax obligations since 2000.
Capitol Waste, Inc. was also ordered to file of all of its back employment, unemployment and income tax returns, and the Whitmires are required to file all of their back individual income tax returns within 90 days. The court order also prevents Capitol Waste from transferring any assets that would prevent timely payment of all present and future tax liabilities.
"All employers must comply with federal employment tax laws," said Nathan J. Hochman, Assistant Attorney General for the Justice Department’s Tax Division. "Employers face not only a federal court injunction for failing to withhold and pay federal taxes, but also significant civil penalties and, in some cases, criminal prosecution. When employers fail to withhold FICA and income taxes, they are harming their employees as well as the United States, and the government will take action."
Assistant Attorney General Hochman thanked Tax Division trial attorney Adair F. Boroughs, who is handling the case for the government, for her efforts. More information about the Justice Department and its efforts to enforce the federal employment tax laws is available at http://www.usdoj.gov/tax/.
6 January 2009
U.S. District Court Judge Charged in Superseding Indictment with Aggravated Sexual Abuse <br /> and Abusive Sexual ContactRead the Press Release
WASHINGTON - A federal grand jury in Houston returned a superseding indictment today charging U.S. District Judge Samuel B. Kent, 59, with aggravated sexual abuse, abusive sexual contact and obstruction of justice, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division announced. Kent was previously indicted on Aug. 28, 2008, on one count of attempted aggravated sexual abuse and two counts of abusive sexual contact of a clerk’s office employee.
The superseding indictment charges three counts based on alleged offenses involving an additional victim who is also a court employee. The first two additional counts charge Kent with aggravated sexual abuse and abusive sexual contact. The third count of the superseding indictment charges obstruction of justice related to an inquiry by a special investigative committee of the U.S. Court of Appeals for the Fifth Circuit into a complaint of judicial misconduct filed against Kent by the clerk's office employee.
The case is being prosecuted by Senior Deputy Chief for Litigation 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. This case is being investigated by the FBI.
An indictment is merely an allegation. Defendants are presumed innocent until and unless proven guilty in a court of law.
Tyson Foods Pleads Guilty and Agrees to Pay Fine for OSHA Violation That Led to Worker DeathRead the Press Release
WASHINGTON—Tyson Foods Inc. pleaded guilty today in U.S. District Court in Arkansas and agreed to pay the maximum fine for willfully violating worker safety regulations that led to a worker’s death in its River Valley Animal Foods (RVAF) plant in Texarkana, Ark., the Justice Department announced.
According to the information filed along with a plea agreement, Tyson operated several RVAF plants that recycled poultry products into protein and fats for the animal food industry. As part of the rendering process in four of the plants, the company used high-pressure steam processors called hydrolyzers to convert the poultry feather into feather meal.
Decomposition of biological material such as poultry feathers produces hydrogen sulfide gas, an acute-acting toxic substance. Employees at the Tyson facilities often were exposed to the toxic gas when working on or near the hydrolyzers, which required frequent adjustment and replacement.
As of October 2003, corporate safety and regional management were aware that hydrogen sulfide gas was present in the RVAF facilities and three of the four facilities with hydrolizers had taken measures to protect employees from hydrogen sulfide gas near the hydrolyzers. However, Tyson Foods did not take sufficient steps to implement controls or protective equipment to reduce exposure within prescribed limits or provide effective training to employees on hydrogen sulfide gas at the Texarkana facility despite an identical exposure, resulting in hydrogen sulfide poisoning of an RVAF Texarkana employee in March 2002.
As a result, at approximately 1 a.m. on Oct. 10, 2003, RVAF maintenance employee Jason Kelley was overcome with hydrogen sulfide gas while repairing a leak from a hydrolyzer and later died. Another employee and two emergency responders were hospitalized due to exposure during the rescue attempt. Two employees also were treated at the scene.
"Federal laws require employers to undertake steps that limit exposure to dangerous substances like the gas that killed Jason Kelley. Tyson Foods willfully ignored these regulations and today is being held responsible," said Ronald J. Tenpas, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "The Justice Department takes its enforcement responsibility seriously and companies that ignore these laws and risk their employees’ lives will be prosecuted."
The Occupational Safety and Health Act (OSHA) requires that employers furnish places of employment free from recognized hazards that are likely to cause death or serious physical harm to employees. This includes taking steps to ensure that employee exposure to dangerous substances such as hydrogen sulfide gas remains within prescribed limits. Tyson Foods pleaded guilty today to a "willful violation of an OSHA standard resulting in the death of an employee," the most serious offense available to OSHA.
According to today’s plea agreement, Tyson Food has agreed to pay $500,000, the maximum criminal fine. The company also will serve one year probation.
The investigation was conducted by the Department of Labor and prosecuted by the Justice Department's Environmental Crimes Section and the U.S. Attorney’s Office for the Western District of Arkansas under the Environmental Crimes Section’s worker endangerment initiative.
Settlement Clears Way for Continued Funding of New Jersey Superfund CleanupRead the Press Release
WASHINGTON—A multi-party settlement involving the federal government, the state of New Jersey and approximately 300 parties will ensure that clean-up efforts continue to be funded at the Combe Fill South Superfund Site Landfill (CFS) in Morris County, N.J., the Justice Department and the U.S. Environmental Protection Agency announced today.
Among the many parties potentially responsible for contamination at the site are Honeywell International Inc., Warner-Lambert Company doing business as Pfizer, the Colgate-Palmolive Company as a successor to The Mennen Company, Mars Inc., and Waste Management.
Under terms of a consent decree lodged in the U.S. District Court in Newark, N.J., the defendants will pay at least $61 million in past costs with interest running from Dec. 8, 2007 with up to an additional $8 million as other municipal defendants join; pay more than $3.2 million for natural resource damage claims to be used for restoration projects; and purchase a $27 million annuity paying $900,000 a year for 30 years for the continued performance of the remedy.
The CFS site is contaminated with both chemical wastes and refuse as a result of its use as a sanitary landfill from the early 1950s until it was closed down in 1981. A 1986 EPA Record of Decision called for the containment of the waste through a landfill cap and continuous operation of a pump and treat facility. The cap and pump and treat facility have been in place for more than 10 years. The state is currently conducting a study of the deep aquifer to determine what additional work may be required.
"Today’s agreement is an excellent result that recovers money spent by federal and state agencies to clean up contamination at the site and provides funding for the remaining work for years to come," said Michael Guzman, Principal Deputy Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. "This legal action, which has spanned more than 10 years, is an example of the Justice Department’s dedication to protecting the environment and taxpayer dollars while holding those responsible for the costs of cleanup."
"With this important settlement, we are recovering most of the money that EPA and the state spent to clean up this site," said Alan J. Steinberg, EPA Region 2 Administrator. "This is an example of Superfund working just as it should. We went forward with the cleanup while still pursuing those responsible for the contamination, with today’s successful result."
The CFS site is located in Chester and Washington Townships in Chester, N.J. Contaminants found in the ground and surface waters include benzene, ethylbenzene, toluene and chlorethane.
The consent decree, lodged in the U.S. District Court in Newark, New Jersey, is subject to a 30-day federal comment period and a statutory state comment period, as well as final court approval. The consent decree is available on the Justice Department Web site at www.usdoj.gov/enrd/Consent_Decrees.html.
Presidents Corporate Fraud Task Force Adds Six New Member AgenciesRead the Press Release
WASHINGTON – The President’s Corporate Fraud Task Force has been expanded to include six new agencies to help in the focus on mortgage and securitization fraud cases, Deputy Attorney General Mark R. Filip, the Task Force Chairman, announced today.
The Task Force’s expanded roster includes the Federal Housing Finance Agency, the Office of the Comptroller of the Currency, the Office of Thrift Supervision, the Federal Reserve, the Department of Housing and Urban Development, and the Special Inspector General for the Troubled Asset Relief Program (TARP). The new member agencies represent a continuing focus by the Task Force to crack down on mortgage fraud, particularly with regard to ongoing investigations into securitization fraud. The additions mark the largest expansion of the Task Force since it was formed in July 2002.
“The Task Force is uniquely suited to providing the kind of thoughtfulness and collaboration that can be invaluable in tackling mortgage fraud at the corporate level, and in trying to analyze whether and when law enforcement action is appropriate,” said Deputy Attorney General Filip. “These new members reflect the breadth and depth of the mortgage crisis that we are now confronting, and the urgency of the task before us.”
In addition to remarks by the Deputy Attorney General, the Task Force was briefed today by representatives from several of the regulatory agencies on their efforts to tackle mortgage fraud and heard from the Special Inspector General of the newly formed TARP.
The Task Force’s current members include the Assistant Attorneys General for the Justice Department’s Civil and Tax Divisions, the Director of the FBI, seven U.S. Attorneys Offices, the Secretaries of the Departments of Treasury and Labor, and the heads of the Securities and Exchange Commission, Commodity Futures Trading Commission, Federal Energy Regulatory Commission, Federal Communications Commission, United States Postal Inspection Service, and the Department of Housing and Urban Development's Office of Federal Housing Enterprise Oversight.
Since July 2002, the task force has yielded remarkable results with nearly 1,300 corporate fraud convictions to date, including more than 200 chief executive officers and presidents, more than 120 corporate vice presidents, and more than 50 chief financial officers.
President Bush created the President’s Corporate Fraud Task Force on July 9, 2002 to restore public and investor confidence in America’s corporations following a wave of major corporate scandals. Since its inception, the Task Force has compiled a strong record of combating corporate fraud and punishing those who violate the trust of employees and investors. Prosecutors and agency attorneys who are part of the Task Force have brought charges for accounting fraud, securities fraud, insider trading, market manipulation, wire fraud, obstruction of justice, false statements, money laundering, Foreign Corrupt Practices Act violations, stock option backdating and conspiracy, among others. More information on the task force can be found at http://www.usdoj.gov/dag/cftf/ .
Former Chief Operating Officer Pleads Guilty in $132 Million Scheme <br /> to Defraud Clients of Funds Allegedly Held in TrustRead the Press Release
WASHINGTON - A former chief operating officer of Investment Properties of America, based in Richmond, Va., pleaded guilty today to conspiring to commit mail and wire fraud and to making a material false statement to federal investigators, Acting Assistant Attorney General Matthew Friedrich of the Criminal Division and Acting U.S. Attorney Dana Boentefor the Eastern District of Virginia announced.
On July 10, 2008, a federal grand jury returned a superseding indictment against Lara Coleman, 40, for her role in a scheme to defraud and obtain millions of dollars in client funds held by the 1031 Tax Group (1031TG), a qualified intermediary company owned by the same person who owned Investment Properties of America.
Coleman, a resident of Houston, entered the guilty plea in U.S. District Court in Richmond before U.S. District Judge Robert E. Payne. Coleman pleaded guilty to one count of the superseding indictment that charged her with conspiracy to commit mail and wire fraud and to a one-count information charging her with making a material false statement to federal investigators.
According to the plea agreement and statement of facts, Coleman and others used 1031TG and its subsidiaries in a scheme to obtain millions of dollars of client funds by false pretenses. Section 1031 of the Internal Revenue Code allows investment property owners to defer the capital gains tax that would otherwise be due on properties sold, if the proceeds are used to purchase new property in a specified time frame. To facilitate such exchanges, investment property owners deposit the proceeds from the sale of their property with qualified intermediaries and sign exchange agreements, which include various promises by the qualified intermediaries to clients regarding the safekeeping of exchange funds in trust.
In the plea agreement and statement of facts, Coleman admitted that 1031TG falsely represented that it would hold client funds solely to complete the clients’ 1031 exchanges. Coleman admitted that after obtaining clients’ exchange proceeds with that false promise, she and others misappropriated approximately $132 million in client funds to support the lavish lifestyle of the owner of 1031TG, pay operating expenses for the owner’s various companies, invest in commercial real estate and purchase additional qualified intermediary companies to obtain access to additional client funds. In addition, Coleman admitted that she lied to federal investigators about statements that she had made in 2006 to internal attorneys for Investment Properties of America about the amount of money that she and others had misappropriated.
Coleman has agreed, under the terms of the plea, to a sentence of 10 years in prison. At sentencing, scheduled for May 1, 2009, she also faces a $500,000 fine. In addition, the indictment seeks forfeiture of all funds and assets owned by Coleman that were derived from or connected to the misappropriation of the approximately $132 million in 1031TG funds.
In related cases, Robert D. Field II and Richard E. Simring have pleaded guilty to participating in the conspiracy to defraud 1031TG customers. Field was the chief financial officer and Simring was the chief legal officer of a holding company that was set up, in part, to oversee both Investment Properties of America and 1031TG, however neither company was ever officially made a subsidiary of the holding company. Both men are also scheduled to be sentenced on May 1, 2009.
This case is being prosecuted by Assistant U.S. Attorney Michael S. Dry for the Eastern District of Virginia and Trial Attorney Brigham Cannon of the Criminal Division’s Fraud Section. This continuing investigation is being conducted by the U.S. Postal Inspection Service, Internal Revenue Service and the FBI.
Columbus, Ohio, Accountant Sentenced to 120 Months for FraudRead the Press Release
WASHINGTON – Dennis G. Sartain of Hilliard, Ohio, was sentenced to 120 months in prison by U.S. District Judge Michael H. Watson, the Justice Department and Internal Revenue Service (IRS) announced today. The judge found the tax loss to be more than $1million and the fraud loss to be nearly $3.7 million.
In November 2007, a federal grand jury returned a superseding indictment against Sartain, charging him with conspiracy to defraud the United States, four counts of aiding in the filing of false tax returns, one count of aiding and abetting credit and loan application fraud and one count of aiding and abetting money laundering. In February 2008, Sartain pleaded guilty to all charges. According to court documents, Sartain was the accountant for two Columbus, Ohio, businesses involved in home building and real estate brokerage services.
According to the indictment, Sartain conspired with others to pay the Realtors and others who worked for these two companies "under the table." Court documents asserted that Sartain either prepared false Forms 1099 that underreported the amount of compensation paid to the individuals working for the companies, or he did not prepare and file any Forms 1099 with the IRS reporting any compensation paid. In addition, the superseding indictment alleged that Sartain prepared or helped prepare false individual income tax returns that underreported the income earned and taxes owed by the individuals who had received payments from these companies. Finally, the indictment claimed that Sartain and others shredded and discarded documents and business records and concealed electronic records maintained on computers and memory sticks that were relevant to the investigation.
Sartain also pleaded guilty to filing false individual income tax returns on behalf of himself and his wife. He did not report all of the income he was paid by one of these companies in the years 2001 through 2004. According to the superseding indictment, in two of those four years, Sartain listed his occupation as "unemployed."
Additionally, Sartain admitted aiding in the submission of a false loan application by helping submit false payroll check stubs to a mortgage company. The false payroll stubs misrepresented the loan applicant’s position and salary for the purpose of fraudulently obtaining a mortgage.
Finally, Sartain aided and abetted money laundering by engaging in conduct that contributed to a $54,295 payment to the buyer of a home sold by a local real estate business, according to court documents. That payment represented excess fraudulently obtained loan proceeds derived from the credit and loan application fraud.
"Today’s sentence shows that taxpayers who fail to comply with their federal tax obligations or assist others in doing so will pay a heavy price," said Nathan J. Hochman, Assistant Attorney General of the Justice Department’s Tax Division. "Mr. Sartain has been branded a convicted felon for the rest of his life, will spend ten years in prison, and still has to pay back all of the taxes plus interest and steep penalties."
"Paying individuals ‘under the table’ in an effort to circumvent the tax laws is criminal activity," said Eileen Mayer, IRS Chief, Criminal Investigation. "Unfortunately, there are individuals who are relentless in their efforts to thwart our nation's tax laws; however, we are equally relentless in our efforts to investigative these individuals and hold them accountable."
In addition to the charges for which he was sentenced today, Sartain faces additional charges stemming from a September 2008 indictment for conspiracy, obstruction of justice and witness tampering. This matter is currently scheduled for a December 2008 trial.
Assistant Attorney General Hochman commended the IRS special agents who investigated the case, as well as Tax Division trial attorneys Richard M. Rolwing, Jill M. Cassara and Sean B. O’ Connell, 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/
Chicago Advertising Firm Pays United States $15.5 Million to Settle Overbilling Allegations on Army ContractRead the Press Release
WASHINGTON - Leo Burnett Company, a Chicago advertising firm, has agreed to pay the U.S. $15.5 million to settle allegations that the company submitted false claims to the U.S. Army, the Justice Department announced today. The firm had a contract from 2000 to 2005 with the Army to provide advertising services for the military service’s recruiting mission.
The settlement resolves allegations that Leo Burnett improperly billed the Army while developing the recruiting Web site and for advertising under the "Army of One" multimedia advertising campaign. Leo Burnett will make a cash payment of $12.1 million and credit the Army $3.4 million in work performed, but not billed.
"The Justice Department is committed to vigorously pursuing all those who knowingly submit false claims with respect to military contracts," said Gregory G. Katsas, Assistant Attorney General for the Civil Division.
The settlement resolves the lawsuit filed on behalf of the U.S. government by former Leo Burnett employees, Greg Hamilton and Michele Casey, who received $2,790,000 as their share of the recovery in the case. Under the False Claims Act, private citizens can bring suit on behalf of the United States and share in any recovery obtained by the government.
The litigation and settlement of this case were conducted by the U.S. Attorney’s Office for the Northern District of Illinois and the Justice Department’s Civil Division.
"The Pentagon’s Defense Criminal Investigative Service will aggressively pursue allegations of fraud that are perpetrated against the Department of Defense," said Sharon Woods, Defense Criminal Investigative Service director.
"The American people trust us to ensure their tax dollars are spent appropriately and we will continue to aggressively seek out and investigate those who intend to defraud the Army and the American taxpayer," said Brigadier General Rodney Johnson, Commanding General of the U.S. Army Criminal Investigation Command.
The case was investigated by the Defense Criminal Investigative Service of the Inspector General for the Department of Defense, the U.S. Department of the Army Criminal Investigation Command - Major Procurement Fraud Unit, and the Defense Contract Audit Agency.
This case was prosecuted as part of a National Procurement Fraud Initiative. In October 2006, the Deputy Attorney General announced the formation of a National Procurement Fraud Task Force designed to promote the early detection, identification, prevention and prosecution of procurement fraud associated with the increase in government contracting activity for national security and other government programs. The Procurement Fraud Task Force is chaired by the Assistant Attorney General for the Criminal Division and includes the Civil Division, the U.S. Attorneys’ Offices, the FBI, the U.S. Inspectors General community and a number of other federal law enforcement agencies. This case, as well as others brought by members of the task force, demonstrate the Justice Department’s commitment to helping ensure the integrity of the government procurement process.
5 January 2009
Statement of Attorney General Michael B. Mukasey on the Death of Former Attorney General Griffin BellRead the Press Release
"Judge Bell’s long record of public service, especially his efforts to enact FISA and champion civil rights, exemplified his dedication, integrity, and fearless pursuit of justice. He was not only an outstanding Attorney General, but also a true gentleman. The Justice Department mourns his passing."
Former South Carolina Highway Patrol Trooper Pleads Guilty to Civil Rights ViolationRead the Press Release
WASHINGTON – John B. Sawyer, a former trooper with the South Carolina Highway Patrol, pleaded guilty today in federal court in Charleston, S.C., to using excessive force during an arrest.
During his plea, Sawyer acknowledged that he abused his authority as a law enforcement officer when, on May 26, 2006, he unnecessarily and repeatedly kicked the head and neck area of a man who had been apprehended in Sumter County after a chase on Interstate 95. Sawyer agreed that his conduct violated federal law and the constitutional rights of the arrested man.
"The overwhelming majority of police officers perform their duties with honor and professionalism," said Grace Chung Becker, Acting Assistant Attorney General for the Civil Rights Division. "However, if an officer commits a criminal act by violating another person’s civil rights, the Justice Department will not hesitate to step in and vigorously enforce the law."
"This is an important case, as the public places great trust in law enforcement to protect and serve them," said Walt Wilkins, U.S. Attorney for the District of South Carolina. "When an officer violates this oath, and the civil rights of those he encounters, the public’s trust is eroded and fellow officers suffer as a result. We are dedicated to prosecuting those who engage in abusive police conduct, and who tarnish the reputation of the dedicated officers who serve each day with honor and distinction."
The case was investigated by the Federal Bureau of Investigation and the South Carolina Law Enforcement Division and was prosecuted by Assistant U.S. Attorney Alston C. Badger and Special Assistant U.S. Attorney Brent Alan Gray formerly of the Civil Rights Division.