District Not Recorded

A New York man pleaded guilty today to supplying lists of consumers’ names and addresses for use in schemes that targeted vulnerable victims.

According to court documents, Norman Newman, 74, of Croton-on-Hudson, New York, was part of a conspiracy to supply lists of potential victims to those conducting fraudulent mass-mailing schemes. From 2005 to 2016, Newman worked as a list broker and senior vice president at Macromark Inc., a Connecticut direct mail services firm. Macromark pleaded guilty to facilitating elder fraud schemes in September 2020. The conspiracy resulted in at least $9.5 million in losses to consumers.

In pleading guilty, Newman admitted to assisting clients in obtaining victim lists for deceptive mailing campaigns. These fraudulent mass mailer clients sent out deceptive letters that appeared to be personalized, when, in actuality, the same letters were sent to thousands of consumers on the mailing lists that Newman provided. Each letter was intended to mislead the consumer into believing that he or she would receive a large amount of money, a valuable prize, or personalized psychic services upon payment of a fee to the mass mailers, who often operated under false names. Fraudsters paid commissions to Newman’s employer, Macromark, for brokering the sale of lists of potential victims. Newman then received a percentage of the commissions. Newman knew the content and fraudulent character of the mass-mailings, that they were intended to defraud thousands of consumers, and that some of the consumers were vulnerable to the scams.  

While brokering lists, Newman also assisted fraudulent mass mailing clients by engaging the services of data brokerage companies that operated cooperative databases, or “co-ops,” which stored large volumes of demographic and transactional data on American consumers. During the conspiracy, Newman and others routinely provided samples of clearly fraudulent letters to employees of data brokerage companies, who then provided data to fraudulent mass mailer clients.

“Providing victim lists and other data to help fraudsters target elderly or otherwise vulnerable consumers is a crime,” said Acting Assistant Attorney General Brian Boynton of the Justice Department’s Civil Division. “The Department of Justice can and will hold responsible individuals and companies who knowingly commit or facilitate these schemes.”

“While working for a large data firm, the defendant purposefully supplied the names and addresses of vulnerable Americans to known fraudulent clients targeting consumers via mass-mailings.  He knew each name he provided would result in another fraudulent mailing being delivered to the consumers’ mailbox,” said Inspector in Charge Delany De León-Colón of the U.S. Postal Inspection Service’s Criminal Investigations Group. “The U.S. Postal Inspection Service holds individuals responsible for their criminal actions when using the U.S. Mail. Today’s plea agreement demonstrates the U.S. Postal Inspection Service’s steadfastness in protecting consumers, especially the most vulnerable, from criminals who exploit them.”

Newman pleaded guilty to conspiracy to commit mail and wire fraud. He is scheduled to be sentenced on July 14 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The U.S. Postal Inspection Service investigated the case.

Trial Attorneys Alistair Reader and Ehren Reynolds of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Heather Cherry of the U.S. Attorney’s Office for the District of Connecticut are prosecuting the case.

If you believe you are a victim in this case and would like to opt-in to receive notifications or if you have any questions about your rights, please contact a Victim Witness Coordinator at (203) 821-3757 / (203)-985-9129 or through our website (https://www.justice.gov/civil/case/united-states-v-norman-newman).

For more information about the Consumer Protection Branch, visit its website at www.justice.gov/civil/consumer-protection-branch. 

WASHINGTON, D.C. – Hoy, en conmemoración del 40º aniversario de la Semana para los Derechos de Víctimas de Delitos (NCVRW, por sus siglas en inglés), la Iniciativa para la Aplicación de la Ley y la Prevención de Delitos de Odio del Departamento de Justicia anunció la traducción reciente a ocho idiomas de recursos contra los delitos de odio para el sitio web contra los delitos de odio del Departamento, www.justice.gov/hatecrimes.

El sitio web, que ha sido visitado por más de un millón de usuarios desde su lanzamiento en el 2018, ahora ofrece nuevas páginas en chino simplificado, chino tradicional, vietnamita, coreano, tagalo, árabe y japonés. Estas páginas incluyen información básica sobre los delitos de odio, recursos en el idioma extranjero e instrucciones sobre cómo denunciar los delitos de odio usando la línea informativa del FBI, con la ayuda de intérpretes cualificados. La experiencia ha demostrado que la comunicación con personas cuyo dominio del inglés es limitado (LEP, por sus siglas en inglés) en su idioma es un paso fundamental en la lucha nacional contra los delitos de odio.

 Ha hubo un incremento preocupante en la violencia, el acoso y la discriminación contra la comunidad estadounidense de origen asiático y de las islas del Pacífico (AAPI, por sus siglas en inglés). Las nuevas páginas en idiomas extranjeros pueden ayudar a víctimas y testigos cuyo dominio del inglés es limitado a reconocer y denunciar delitos de odio. El sitio web también tiene una nueva página en inglés con enlaces a recursos y noticias sobre incidentes de odio dirigidos a las comunidades AAPI. www.justice.gov/hatecrimes/addressing-hate-crimes-against-AAPI (en inglés). La página incluye un enlace a la guía del FBI contra amenazas de delitos de odio. La guía contra amenazas, una tabla de una única página, describe los tipos de amenazas de delitos de odio (físicas, verbales, por teléfono, electrónicas, por escrito o visuales) y enumera las respuestas recomendadas, incluyendo los pasos para la preservación de pruebas.

La guía está actualmente disponible en chino simplificado y tradicional.

Por otra parte, se ha ampliado el contenido en el sitio web en español contra los delitos de odio, www.justice,gov/hatecrimes-espanol, para incluir estadísticas actualizadas sobre los delitos de odio, ejemplos de casos y un mapa de los estados que disponen de leyes contra los delitos de odio, entre otras cosas.

«El apoyo de víctimas de delitos de odio es una parte esencial de la misión del Departamento y representa una medida de nuestro éxito», declaró la Fiscal General Auxiliar Adjunta Principal Pamela Karlan, de la División de Derechos Civiles del Departamento de Justicia. «Las personas cuyo dominio del inglés es limitado, así como los defensores y los líderes comunitarios que trabajan con ellos, se enfrentan a barreras adicionales a la justicia. Esperamos que estos nuevos recursos en idiomas extranjeros ayuden al Departamento y a nuestros socios a apoyar mejor a las víctimas de delitos de odio, crear confianza y conseguir la participación de las comunidades. Seguiremos expandiendo el número de idiomas en www.justice.gov/hatecrimes».

Los anuncios de hoy son solamente una parte de los esfuerzos del Departamento por combatir la discriminación y violencia mediante el fomento de la capacidad, la capacitación, el apoyo y el alcance a nuestros socios, incluyendo aquellos que trabajan con las comunidades AAPI o miembros del público cuyo dominio del inglés es limitado.

El 26 de enero, el presidente Biden emitió el «Memorando presidencial para la condenación y el combate del racismo, la xenofobia y la intolerancia dirigidos a los estadounidenses de origen asiático y de las islas del Pacífico en los Estados Unidos», que estipula que el «Fiscal General hará lo siguiente:

• explorará oportunidades para apoyar, conforme a las leyes aplicables, los esfuerzos de agencias locales o estatales, así como de comunidades y organizaciones comunitarias AAPI para prevenir la discriminación, la intimidación, el acoso y los delitos de odio contra personas AAPI y
• ampliará la recopilación de datos y la información pública en lo que se refieren a incidentes de delitos de odio infligidos a tales individuos.

Para más información sobre los esfuerzos del Departamento de Justicia por combatir y prevenir los delitos de odio, vaya a www.justice.gov/hatecrimes: un único portal con enlaces a recursos contra los delitos de odio para la policía, los medios de comunicación, investigadores, víctimas, grupos de apoyo y otras organizaciones y personas. Para más información sobre cómo garantizar el acceso lingüístico y la concentración de/idiomas hablados por personas cuyo dominio del inglés es limitado en un condado, estado o distrito judicial, vaya a www.lep.gov/.  

لقد حل الأسبوع الوطني لحقوق ضحايا الجرائم.  هذا الأسبوع، وعلى مدار العام، نود أن يعلم ضحايا جرائم الكراهية أنهم ليسوا وحدهم. لمعرفة المزيد من المعلومات عن جرائم الكراهية والتعرف على كيفية طلب المساعدة، يرجى زيارة الموقع: www.justice.gov/hatecrimes/translated-get-help-arabic  (Arabic)

本周是“全国犯罪受害者权利周”。 本周，乃至全年，我们想要让仇恨犯罪的受害者知道他们并不孤单。 要了解更多关于仇恨犯罪的信息和了解您可以如何求助，请访问：www.justice.gov/hatecrimes/translated-get-help-simplified-chinese  (Simplified Chinese)

本週是「全國犯罪受害者權利週」。本週，乃至全年，我們想讓仇恨犯罪的受害者知道他們並不孤單。要瞭解更多關於仇恨犯罪的資訊和瞭解您可以如何求助，請訪問：www.justice.gov/hatecrimes/translated-get-help-traditional-chinese (Traditional Chinese)

全国犯罪被害者の権利週間です。今週そして年間を通じ、自分は一人ではないということをヘイトクライム被害者に知っていただきたいです。ヘイトクライムの詳細および助けの求め方を知るには：www.justice.gov/hatecrimes/translated-get-help-japanese (Japanese)

전국 범죄 희생자의 권리 주간입니다.  이번 주 그리고 연중 내내, 저희는 증오 범죄의 희생자들이 혼자가 아니라는 것을 알게 되길 바랍니다.  증오 범죄에 대해 더 자세히 알고 도움을 요청할 수 있는 방법에 대해  알아보려면 다음을 방문해 주십시오:  www.justice.gov/hatecrimes/translated-get-help-korean (Korean)

Pambansang Linggo ng mga Karapatan ng Biktima ng Krimen ngayon.  Ang linggo ito, at sa buong taon, nais naming iparating sa mga biktima ng poot na hindi sila nag-iisa.  Para malaman pa ang tungkol sa mga krimen ng poot at para malaman kung paano kayo hihingi ng tulong, bisitahin ang: www.justice.gov/hatecrimes/translated-get-help-tagalog (Tagalog)

Đã đến Tuần lễ Quyền của Nạn nhân Tội phạm Quốc gia.  Tuần này, và trong suốt cả năm, chúng tôi muốn các nạn nhân của tội ác thù hận biết rằng họ không đơn độc.  Để tìm hiểu thêm về tội ác thù hận và tìm hiểu cách bạn có thể yêu cầu trợ giúp, vui lòng truy cập: www.justice.gov/hatecrimes/translated-get-help-vietnamese (Vietnamese)

The Justice Department announced today that the Office of Community Oriented Policing Services (COPS Office) has released approximately $58 million in three grant solicitations that will advance community policing, help combat the dual scourges of opioid and methamphetamine use, and promote the health and safety of our nation’s law enforcement officers.

“The grant solicitations announced today will help law enforcement agencies in their continuing struggles on two fronts – fighting against the public health and safety crisis of illegal drug use, and safeguarding the mental health and wellness of our law enforcement officers,” said Acting Director Robert Chapman of the COPS Office. “The COPS Office is pleased to make these resources available that will not only help to protect our nation’s citizens, but also the law enforcement officers who do so much to protect them.”

The Law Enforcement Mental Health and Wellness Act Program provides funding to improve the delivery of and access to mental health and wellness services for law enforcement through the implementation of peer support, training, family resources, suicide prevention, and other promising practices for wellness programs. The program will fund projects that develop knowledge, increase awareness of effective mental health and wellness strategies, increase the skills and abilities of law enforcement, and increase the number of law enforcement agencies and relevant stakeholders using wellness programs.

The COPS Office Anti-Heroin Task Force Program advances public safety by providing funds directly to state law enforcement to locate and investigate illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids. Funding is available only to state law enforcement agencies with primary law enforcement authority over heroin, fentanyl, carfentanil, and other opioids seizures and investigations.

The COPS Anti-Methamphetamine Program advances public safety by providing funds directly to state law enforcement agencies to investigate illicit activities related to the manufacture and distribution of methamphetamine. Funds must be used to locate or investigate illicit activities such as precursor diversion, laboratories, or methamphetamine traffickers.

For more information on COPS Office funding, please visit https://cops.usdoj.gov/grants.

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to agency for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers.

The Justice Department announced today that a federal court in the Northern District of Georgia permanently enjoined the owner of tax preparation businesses in Suwanee, Georgia, from preparing federal tax returns for others.

The complaint filed in the case alleged that Tiffany Nakia Expose of Buford owned and operated Expose Tax & Financial Services Inc. in Suwanee, and that Expose prepared tax returns that understated tax liabilities and/or overstated refunds. According to the court’s opinion, her alleged schemes included understating business income by fabricating or inflating reported business losses; fabricating or overstating itemized deductions; and claiming unsupported education credits. For example, on over 100 returns, Expose falsely claimed that taxpayers attended school at a particular institution despite knowing that they had not done so.  

In granting the United States’ request for injunction, the court found that Expose knowingly prepared and filed hundreds of false returns. It found that she did so despite two separate attempts by the IRS to bring her into compliance, both of which resulted in penalties assessed against her.

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.

In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

Attorney General Merrick B. Garland today recognized 13 individuals and teams for their advocacy on behalf of victims of crime. The award recipients were honored virtually during the annual National Crime Victims’ Service Awards Ceremony.

“Every day, we bear witness to stirring acts of heroism on the part of compassionate and courageous advocates – and crime victims themselves,” said Attorney General Garland. “One of our responsibilities is to ensure that victims are informed, have a voice, and are supported in the healing process. To the exceptional men and women we honor today – thank you for your service to crime victims, for your commitment to the safety of your communities, and for working to make America a more just and more compassionate place.”

The awardees were selected from public nominations in 10 categories, including federal service, special courage, public policy and victim services. The Office for Victims of Crime (OVC), a component of the Department’s Office of Justice Programs (OJP), leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW). Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims. The 40th observance of NCVRW takes place this year, April 18-24, and features the theme, “Support Victims. Build Trust. Engage Communities.”

According to the Department’s Bureau of Justice Statistics, 1.2 million Americans age 12 and older were victims of violent crime, excluding simple assault, in 2019, down from 1.4 million in 2018. An estimated 12.8 million U.S. households experienced one or more property victimizations. OVC supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory. Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.

“We come together each year during National Crime Victims’ Rights Week to show that we are united in our commitment to making sure all crime victims feel heard, respected and remembered,” said OJP Acting Assistant Attorney General Maureen A. Henneberg. “We honor these outstanding public safety professionals and advocates who work so hard to support crime victims as they walk the path from trauma to healing.”

Following is a list of the award recipients:

• The Allied Professional Award recognizes individuals working outside the victim assistance field for their service to victims.

Recipient:  Pfawnn Eskee, Montezuma Creek, Utah.

• The Award for Professional Innovation in Victim Services recognizes a program, organization or individual who expands the reach of victims’ rights and services.

Recipient: JoNell Efantis Potter, PhD, Miami, Florida.

• The Federal Service Award recognizes federal agency personnel for service to victims of federal, tribal or military crimes.

Recipient: Acquanette Lindsay, Dayton, Ohio.

• The First Responders Award recognizes an individual from the law enforcement, emergency services, firefighters and rescue professions for extraordinary acts of valor toward crime victims.

Recipients: John Guard, Greenville, North Carolina; and Robin Taylor, Chardon, Ohio.

• The National Crime Victim Service Award honors extraordinary efforts to provide direct services to crime victims.

Recipient: The Vegas Strong Resiliency Center, Las Vegas, Nevada; and Jennifer Dunn, Waukesha, Wisconsin.

• The Ronald Wilson Reagan Public Policy Award honors leadership, innovation and vision that lead to noteworthy changes in public policy on behalf of crime victims.

Recipient: Jeannette M. Adkins, Bellbrook, Ohio.

• The Special Courage Award honors extraordinary bravery in the aftermath of a crime or courageous act on behalf of a victim or potential victim.

Recipients: Jennifer Elmore, Chapel Hill, North Carolina; and Jennifer Luther, Tallahassee, Florida.

• The Tomorrow’s Leaders Award recognizes youth up to 24 years old for efforts to support crime victims.

Recipient: Sachiri Henderson, Shreveport, Louisiana.

• The Victims Rights Legend Award recognizes an individual whose work over an extended period of time has resulted in positive and substantial change in the field of victim advocacy and/or victims’ rights.

Recipient: Victor I. Vieth, Lewiston, Minnesota.

• The Volunteer for Victims Award recognizes individuals who serve without compensation.

Recipient: Tricia L. Everest, Nichols Hills, Oklahoma.

“It is important for us as a country to set aside time during National Crime Victims’ Rights Week to honor victims and to recognize those who advocate for resources and policies designed to meet the many serious challenges victims face,” said OVC Acting Director Katherine Darke Schmitt. “Few people expect to be a victim, and no one deserves the pain and injustice that burden every crime survivor. We should take it upon ourselves this week, and every week, to show our unity with and compassion for those who have experienced the pain of victimization.”

During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.

To learn more about past NCVRW recipients, visit www.ovc.gov/gallery.

The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.

On April 22, 1970, millions of people across America came together and sparked a movement that led to the enactment of many of our nation’s foundational environmental laws, including the Clean Air Act, the Endangered Species Act, the Clean Water Act, and the Safe Drinking Water Act. Today, as billions of people around the world celebrate Earth Day, I want to acknowledge Department of Justice attorneys, investigators, and professional staff who work every day to advance the cause of justice by enforcing those laws.

Although environmental crime and injustice can happen anywhere, communities of color, low-income communities, and tribal communities often bear the highest burden of the harm caused by environmental crime, pollution, and climate change. Earlier this week, I was proud to join EPA Administrator Michael Regan in announcing the nation’s first-ever Environmental Crime Victim Assistance Program.

This joint effort, which will empower environmental crime victims to participate fully and equally in our justice system, was developed and will be coordinated by the Justice Department’s Environment and Natural Resources Division and the EPA, with financial support from DOJ’s Office for Victims of Crime. The program will help ensure that victims of federal environmental crimes are properly identified, that their rights are protected, and that they receive the services and support they need — from the opening of an investigation through the final adjudication of the case.

For 151 years, the Justice Department’s mission has been to ensure equal justice under law. On this 51st Earth Day celebration, we honor our mission by advancing the cause of environmental justice.

Read the Attorney General’s remarks at the DOJ-EPA Listening Session on Promoting Justice for Victims of Environmental Crime here.

With less than one month left in this year’s tax season, the Department of Justice urges taxpayers to choose their return preparers wisely. Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams. Unscrupulous preparers who include errors or false information on a customer’s return could leave a taxpayer open to liability for unpaid taxes, penalties, and interest.

Over the last year, the Justice Department’s Tax Division has worked with U.S. Attorney’s Offices around the country to bring both civil and criminal action against dishonest tax preparers, seeking as appropriate civil injunctions to stop ongoing fraud, civil penalties or disgorgement of ill-gotten proceeds, and criminal sanctions. The department intends to send a strong message that those who prepare fraudulent returns will face serious and lasting consequences.

Examples of civil injunctions obtained by the Tax Division over the last year include:

• On Feb. 25, 2021, a federal court in Delaware enjoined return preparers Jorge Bravo, Michael Eller Income Tax Service, Nelson Graciano and Pedro Toala from preparing, filing or assisting in the preparation or filing of any federal tax returns which claim ineligible persons as dependents, claim improper business expenses or losses, or improperly claiming the Child Tax Credit and other credits. The injunction runs through Dec. 31, 2026, and requires the defendants to hire an independent monitor to examine selected returns.
• On Nov. 17, 2020, a federal court in the Northern District of New York entered a stipulated permanent injunction against Demetric Williams, individually and doing business as Poor No More LLP, that bars him from preparing returns for others, and from owning or operating a tax return preparation business, and from representing customers in connection with any matter before the IRS. Williams was required to notify his customers of the order.
• On Aug. 27, 2020, a federal court in the Western District of Tennessee permanently enjoined Rickey Greer and Stacie Smith (formerly Greer) from acting as federal tax return preparers, assisting in any way in the preparation of federal income tax returns, and representing any person before the IRS. Under the terms of the injunction, the Greers agreed to give up their IRS-assigned preparer identification numbers.

The Tax Division has also sought to strip fraudulent preparers of ill-gotten gains and to hold in contempt those who attempt to flout court-ordered restraints on further fraudulent activity. Over the last year,

• On March 3, 2021, a federal court in the Middle District of Florida, Orlando Division, enjoined Michelle Jenkins from acting as a return preparer, owning a tax preparation business, or training others in the preparation of tax returns. Jenkins must immediately, permanently close any tax preparation stores she owns, and may not franchise any tax return business to others or her customer lists. Jenkins was ordered to disgorge $25,000 in proceeds from her fraudulent tax preparation. On April 9, 2021, Jenkins’ co-defendants, Ben Philippe, Clebert Philippe, and Reliance 1 Tax Services LLC, were similarly enjoined. Ben Philippe was ordered to disgorge $96,945.10; Clebert Philippe and Reliance 1 Tax Services together were ordered to disgorge $134,633.00.
• On Jan. 27, 2021, a court in the Southern District of Florida permanently enjoined a West Palm Beach return preparer, Lena Cotton, and her business, Professional Accounting LDC, from preparing federal income tax returns for others. The court determined that the defendants were in contempt of several prior orders that had allowed them to prepare returns subject to restrictions and that, in light of previous violations by Cotton and Professional Accounting LDC of the court’s injunctions, “any remedy short of a permanent injunction on return preparation [was] inadequate.”
• On Aug. 5, 2020, a federal district court in the Northern District of Illinois sanctioned Courtney Norwood for contempt for continuing to prepare tax returns in violation of an earlier injunction. He was ordered to pay $91,200 in disgorgement, reflecting the fees he earned for any returns prepared after the injunction was entered.

Criminal convictions obtained by the Tax Division over the last year include:

• On Nov. 13, 2020, Kenneth Crawford Jr. was convicted at trial and sentenced to 78 months in prison for conspiring to defraud the United States, filing false claims, and obstructing the internal revenue laws. According to evidence presented at trial, between 2015 and 2016, Crawford and his co-conspirators promoted and sold a “mortgage recovery” tax fraud scheme that sought fraudulent refunds from the IRS for their clients.
• On Oct. 7, 2020, Terry Williamson was sentenced to 70 months in prison for conspiracy to commit mail and wire fraud, following his conviction at trial by a federal jury in Las Vegas. The evidence at trial proved that from January 2009 through April 2011, Williamson and his co-conspirators filed false tax returns with the IRS to fraudulently obtain tax refunds using the names and social security numbers of deceased taxpayers.

The Tax Division reminds taxpayers that the IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. (More information can also be found here.) The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.

In addition, IRS Free File, a public-private partnership, offers free online tax preparation and filing options on IRS partner websites for individuals whose adjusted gross income is under $72,000. For individuals whose income is over that threshold, IRS Free File offers electronical federal tax forms that can be filled out and filed online for free.

Acting Assistant Attorney General David A. Hubbert of the Tax Division made the announcement. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

The Justice Department concluded today, based upon a thorough investigation, that there is reasonable cause to believe that Alameda County is violating the Americans with Disabilities Act (ADA) in its provision of mental health services, and that conditions and practices at the county’s Santa Rita Jail violate the U.S. Constitution and the ADA.

The department’s investigation found that the county fails to provide services to qualified individuals with mental health disabilities in the most integrated setting appropriate to their needs. Instead, it unnecessarily institutionalizes them at John George Psychiatric Hospital and other facilities. In Olmstead v. L.C., the U.S. Supreme Court held that Title II of the ADA requires public entities to provide community-based services to persons with disabilities when appropriate services can reasonably be provided to individuals who want them. However, on any given day in Alameda County, hundreds of people are institutionalized for lengthy stays at one of several large, locked psychiatric facilities in the county or are hospitalized at John George Psychiatric Hospital, while others are at serious risk of admission to these psychiatric institutions because of the lack of community-based services. Without connection to adequate community-based services, people return to John George Psychiatric Hospital in crisis again and again. 

“The ADA protects individuals with mental health disabilities from unnecessary institutionalization, and the Constitution guarantees all prisoners necessary medical care, including mental health care,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “Our investigation uncovered evidence of violations that, taken together, result in a system where people with mental health disabilities in Alameda County find themselves unnecessarily cycling in and out of psychiatric institutions and jails because they lack access to proven services that would allow them to recover and participate in community life.”

The department also concluded that there is reasonable cause to believe that conditions at the jail violate the Eighth and Fourteenth Amendments of the Constitution, as well as the ADA. Specifically, the department concluded that there is reasonable cause to believe that the jail fails to provide constitutionally adequate mental health care to prisoners with serious mental health needs, including those at risk of suicide; that the jail violates the constitutional rights of prisoners with serious mental illness through its prolonged use of restrictive housing; and that the jail violates the ADA by denying prisoners with mental health disabilities access to services, programs, and activities because of their disabilities.

As a result of these failures, prisoners with serious mental health needs have experienced worsening mental health conditions, are sent repeatedly to John George Psychiatric Hospital for acute care, have experienced prolonged stays in restrictive housing, and, at times, have seriously injured themselves or died.

The Civil Rights Division’s Special Litigation Section initiated the investigation under the ADA and under the Civil Rights of Institutionalized Persons Act (CRIPA), which authorizes the department to address a pattern or practice of deprivation of constitutional rights of individuals confined to state or local government-run correctional facilities.

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Individuals with relevant information are encouraged to contact the department via phone at (844) 491-4946 or by email at Katelyn.Smith2@usdoj.gov.

Members of the public may report possible civil rights violations at https://civilrights.justice.gov/.

An Iowa woman pleaded guilty yesterday in federal court to hate crime charges for attempting to kill two children because of their race and national origin.

According to admissions Nicole Poole Franklin, 42, made during the hearing, on the afternoon of Dec. 9, 2019, Poole Franklin was driving her Jeep Grand Cherokee on Creston Avenue in Des Moines, Iowa, where the first child-victim was walking along the sidewalk with another young relative. Upon seeing the children and believing that the victim was of Middle Eastern or African descent, Poole Franklin drove her vehicle over the curb towards both children, striking one of them. Poole Franklin then drove away from the scene. The assault resulted in injury to the victim, including cuts, bruising, and swelling. Approximately 30 minutes later, Poole Franklin was driving her Jeep near Indian Hills Junior High School in Clive, Iowa, where the second child-victim was walking on the sidewalk. Poole Franklin, believing that the child was Mexican, drove her vehicle over the curb and struck the victim, causing serious injury, including a concussion, bruises, and cuts. Poole Franklin again drove away from the scene but was apprehended later that day.

Poole Franklin is also expected to plead guilty in state court later today to two counts of attempted murder.

“Nicole Poole Franklin attempted to kill two children because she thought they came from another country,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “All people in the United States, regardless where they come from, have the right to be free from fear of violence because of who they are. The Justice Department will continue to protect the civil rights of all individuals and prosecute hate crimes, as we have done in this case.”

“Our office will vigorously pursue civil rights prosecutions against individuals, such as Ms. Poole Franklin, for hate motivated attacks,” said Acting U.S. Attorney Richard Westphal of the Southern District of Iowa. “Protecting the rights of the residents of our community, more importantly, the families and children who live here, is one of the most important functions of the United States Attorney’s Office. These young and courageous victims, whatever their race, color, religion, or national origin, should not have to fear for their safety by merely walking down the street. The message from today’s hearing should be crystal clear – this sort of hateful violence is unacceptable, and the Department of Justice will continue to work with our federal, state, and local partners to hold accountable all who choose to violate another’s civil rights.” 

“FBI Omaha agents worked diligently with our law enforcement partners to bring Nicole Poole Franklin to justice,” said Special Agent in Charge Eugene Kowel of the FBI Omaha Field Office. “It’s unimaginable that violence based on race, sexual identity or religious beliefs still exists in this day and age. The FBI will not tolerate someone committing such abhorrent violence against two children, just because of the color of their skin. The FBI and our law enforcement partners will continue to ensure that if a crime is motivated by bias, it will be investigated, and the perpetrators held responsible for their actions. We encourage everyone to report such crimes to the FBI.”

Poole Franklin’s federal sentencing date is set for Aug. 19. She faces a maximum statutory penalty of life in prison and a fine of up to $250,000 for each of the charged offenses.

This case was investigated by the FBI, with assistance from Des Moines and Clive Police Departments. Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa and Trial Attorneys Katherine DeVar and Andrew Manns of the Civil Rights Division are prosecuting the case.

United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI), will join the Drug Enforcement Administration (DEA) on Saturday, April 24th for its 20th National Prescription Drug Take Back Day.  The biannual event will be held from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including here in Guam and the NMI. This event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.

DEA will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illegal drugs will not be accepted.  DEA will continue to accept vaping devices, cartridges – in addition to tablets, capsules, patches, and any other medication in solid forms – at any of its drop off locations.  It is important to note that DEA cannot accept devices containing lithium-ion batteries. If batteries cannot be removed before dropping off, please consult with stores that recycle lithium-ion batteries.

In 2019, citizens of Guam and the NMI turned in over 1,650 pounds collectively.  According to the Centers for Disease Control and Prevention, the U.S. has seen an increase in overdose deaths during the COVID-19 pandemic, with 85,500 people dying of a drug overdose in just one year (August 2019 – August 2020), the largest number of overdoses recorded in a 12-month period.  The increase in drug overdose deaths appeared to begin prior to the COVID-19 health emergency but accelerated significantly during the first months of the pandemic.

Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards to others and the environment. This initiative addresses the public safety and public health issues that surround drugs languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.

The following sites in Guam and the NMI are designated to receive unused prescription drugs and vaping device products on Saturday, April 24, 2021, between 10:00 a.m. and 2:00 p.m.:

• Agana Shopping Center (Center Court)
• Andersen Air Force Base Exchange (Entrance to Store)
• Dededo Mayor’s Office
• Guam Premier Outlets (Cold Stone Yogurt Bar)
• K-Mart (Entrance)
• Naval Base Guam - Navy Exchange (Food Court)
• Saipan Commonwealth Health Center (Outpatient Pharmacy)
• Rota Health Center
• Tinian Health Center

Contact DEA Resident Agent in Charge Kenneth Bowman at 671-472-7384 regarding any questions about prescription drug abuse and any concerns regarding drug-related activity on Guam or in the NMI.

For more information, go to www.dea.gov, www.DEATakeBack.com

U.S. Supreme Court Justice Sonia Sotomayor and Puerto Rico Supreme Court Chief Justice Maite Oronoz today addressed over 157 judges from Argentina, Colombia, Costa Rica, Ecuador, El Salvador, Dominican Republic, Guatemala, Honduras, Mexico, Panama and Peru as part of a Department of Justice training program for the judiciaries of the Western Hemisphere. 

During the virtual event held at the Judicial Studies Institute (JSI), Justice Sotomayor discussed the role of the judge and judicial independence. She also stressed the importance of their contribution to the rule of law in the hemisphere and lauded them for their role in the transformation of Latin American justice.   

Chief Justice Maite Oronoz spoke about transparency, accountability and education as mechanisms to protect and strengthen judicial independence. She also encouraged the judges to participate in education initiatives to promote a better understanding of the role of the courts and therefore increase public confidence in the judiciary.

With the support of Justice Sotomayor, and in partnership with the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, the Justice Department’s Office of Prosecutorial Development, Assistance and Training (OPDAT) launched JSI in 2012 as a response to the wave of justice sector reforms in Latin America that saw many countries transition from an inquisitorial to an adversarial system of justice. Through Spanish instruction, practical exercises, and observations of courtroom proceedings, participating judges learned about evidentiary guidelines, the role of judges, and courtroom management in an adversarial justice system. 

This capacity building is critical to the region as there are significant differences between the two systems. For example, in an inquisitorial system, judges investigate charges and determine guilt through written deliberations behind closed doors. In an adversarial system, the judge acts as an impartial referee responsible for weighing evidence and guaranteeing the rights of both the victim and the accused in an open courtroom setting.

Since establishing JSI in 2012, OPDAT and its partners at the University of Puerto Rico and Inter-American University law schools have trained over 900 Latin American judges.

Please visit https://www.supremecourt.gov/ for more information about the U.S. Supreme Court and https://www.justice.gov/criminal-opdat for more information about OPDAT’s capacity building efforts around the world.

Today, Lisa O. Monaco was sworn in as the 39th Deputy Attorney General (DAG) of the United States. She returns to the Department of Justice where she first arrived as an intern 26 years ago, and went on to hold a variety of leadership roles at both the Department and the FBI. DAG Monaco held a series of meetings with DOJ staff and received briefings on the January 6th Capitol Attack investigation and on national security. In an all hands meeting with her immediate staff, DAG Monaco reiterated her commitment to reaffirming the Department’s foundational mission and core values, pursuing the Constitution’s promise of equal justice, and ensuring the safety of all who call America home. Late in the day she sent an email to the DOJ workforce thanking them for their dedication, and conveying how honored she is to serve alongside them.   

She is pictured here looking on as Attorney General Merrick Garland delivers remarks at her swearing in ceremony.

Today, a federal grand jury in the Eastern District of New York unsealed the indictment of one fisherman, a wholesale fish dealer, and two of its managers for conspiracy to commit mail and wire fraud and obstruction in connection with a scheme to illegally overharvest fluke and black sea bass. All four defendants are from Montauk.

Christopher Winkler, 61, Bryan Gosman, 48, Asa Gosman, 45, and Bob Gosman Co. Inc. were charged with one count of conspiracy to commit mail and wire fraud as well as to unlawfully frustrate the National Ocean and Atmospheric Administration's (NOAA) efforts at regulating federal fisheries. Winker and the corporate defendant each face substantive fraud charges. In addition, each of the defendants was charged with obstruction.

The indictment alleges that between May 2014 and July 2016, Winkler, as captain of the New Age, went on approximately 70 fishing trips where he caught fluke or black sea bass in excess of applicable quotas. This fish was then sold to a now-defunct company and unindicted co-conspirator in the New Fulton Fish Market in the Bronx. Both Asa Gosman and Bryan Gosman had an ownership interest in the defunct company. After the Bronx company went under, Winkler sold a smaller quantity of his illegal catch directly to Bob Gosman Co. Inc., a Montauk fish dealer in which Asa Gosman and Bryan Gosman had a management role. The overages of fish included at least 74,000 pounds of fluke, and the overall over-quota fish (of all species) were valued at least $250,000 wholesale.

Under federal law, a fishing captain is required to accurately detail his catch on a form known as a Fishing Vessel Trip Report (FVTR), which is mailed to NOAA. Similarly, the first company that buys fish directly from a fishing vessel is termed a fish dealer, and fish dealers are required to specify what they purchase on a federal form known as a dealer report, which is transmitted electronically to NOAA. Pursuant to statutory mandate, NOAA utilizes this information to set policies designed to ensure a sustainable fishery. The indictment alleges that the part of the conspiracy was to falsify both FVTRs and dealer reports in order to cover-up the fact that fish were taken in excess of quotas.

Additionally, Asa Gosman, Bryan Gosman, and Bob Gosman Co. Inc., acting through its agents and employees, were charged with obstructing the investigation into these crimes by corruptly withholding certain documents and records sought by a federal grand jury.

Initiated as part of Operation One-Way Chandelier, the indictment is part of a multi-year, ongoing investigation into fisheries fraud on Long Island. The case is being investigated by NOAA’s Office of Law Enforcement. Trial Attorney Christopher Hale of the Justice Department’s Environment and Natural Resources Division's Environmental Crimes Section is prosecuting the case.

The defendants will be arraigned at a future date.

An indictment is only an accusation, and the defendants are presumed innocent until proven otherwise before a jury at trial.

A Georgia correctional officer pleaded guilty today to violating the civil rights of an inmate.

According to documents filed in connection with the guilty plea, Jamal Scott, 33, an on-duty correctional officer at the Valdosta State Prison (VSP) in Valdosta, struck an inmate with his fist multiple times while the inmate was handcuffed and lying on the ground on Dec. 29, 2018. Specifically, Scott, along with Correctional Officer Brian Ford, Sergeant Patrick Sharpe, and other prison officials, escorted the handcuffed inmate to an outdoor area on the grounds of the prison for the purpose of assaulting the inmate in retaliation for an earlier altercation between the inmate and a female officer. Scott and Ford, carrying out a directive from their supervisor, Sharpe, took the inmate to the ground and struck him multiple times in the body. The inmate was handcuffed and compliant at the time of the assault.

Ford previously pleaded guilty on Nov. 9, 2020, to one count of deprivation of rights under color of law, for his role in this incident. Scott and co-defendant Sharpe were indicted in a four-count indictment on Dec. 11, 2020.

“When Scott assaulted this inmate, he violated the inmate’s civil rights and betrayed his oath of office as a correctional officer,” said Principal Deputy Assistant Attorney General Pam S. Karlan of the Justice Department's Civil Rights Division. “The Justice Department will continue to protect the civil rights of all individuals, and work to ensure that officers who abuse their power are held accountable.”

“Damaging repercussions are felt across our community and beyond whenever a sworn officer violates the civil rights of a person in their charge,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our office will work tirelessly to protect the civil rights of all people, and we will hold abusive officers accountable for breaking the laws they are sworn to uphold.”

“There is never a reason for a correctional officer to resort to violence that violates an inmate’s constitutional rights,” said Special Agent in Charge Chris Hacker of the FBI Atlanta Field Office. “The FBI understands that working in a correctional institution is stressful and dangerous work, and that the vast majority of the men and women working in these institutions do their jobs honorably on a daily basis. When an officer violates the rights of inmates in their care, it erodes public trust in these important positions and damages the reputation of the hard-working officers who continue to serve.”

Scott faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000. A sentencing hearing has not been scheduled at this time.

This case was investigated by the FBI and was prosecuted by Trial Attorneys Katherine G. DeVar and Nicole Raspa of the Civil Rights Division, with assistance from Criminal Chief Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia.

A federal grand jury in Denver, Colorado, returned an indictment charging a Bow Mar, Colorado, businessman with tax evasion, failing to pay over employment taxes, and failing to file tax returns.

According to the indictment, Frank Stevens owned Stevens & Soldwisch Oil and Gas Properties I LLC (Soldwisch) and Northeastern Energy Corporation (Northeastern). Soldwisch owned an oil producing field in Michigan, and Northeastern employed the workers hired to extract oil from Soldwisch’s field. The indictment alleges that during quarters in 2014 and 2015, Stevens withheld taxes from Northeastern employees, but did not pay those withheld funds over to the IRS. The indictment further alleges that Stevens evaded paying taxes that were assessed against Northeastern and himself personally, by transferring funds out of bank accounts in his and Northeastern’s names. He also allegedly did not file tax returns on behalf of his businesses as required by law. According to the indictment, the IRS had assessed more than $700,000 in penalties against Stevens for outstanding employment taxes. 

Stevens had his initial court appearance before U.S. Magistrate Judge Scott T. Varholak of the U.S. District Court for the District of Colorado. If convicted, he faces a maximum of five years imprisonment for each of the tax evasion and employment tax counts, and he further faces a maximum of one year in prison on each of the failing to file tax return counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS-Criminal Investigations is investigating the case.

Assistant Chief Yael T. Epstein and Trial Attorneys Peter J. Anthony and Julia M. Rugg of the Justice Department’s Tax Division are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Attorney General Merrick B. Garland announced today the Justice Department has opened a pattern or practice investigation into the City of Minneapolis (the City) and the Minneapolis Police Department (MPD). The investigation will assess all types of force used by MPD officers, including uses of force involving individuals with behavioral health disabilities and uses of force against individuals engaged in activities protected by the First Amendment. The investigation will also assess whether MPD engages in discriminatory policing. As part of the investigation the Justice Department will conduct a comprehensive review of MPD policies, training and supervision. The department will also examine MPD’s systems of accountability, including complaint intake, investigation, review, disposition and discipline. The Department of Justice will also reach out to community groups and members of the public to learn about their experiences with MPD.

“The investigation I am announcing today will assess whether the Minneapolis Police Department engages in a pattern or practice of using excessive force, including during protests,” said Attorney General Garland. “Building trust between community and law enforcement will take time and effort by all of us, but we undertake this task with determination and urgency, knowing that change cannot wait.”

This morning, Department of Justice officials informed Minneapolis Mayor Jacob Frey, MPD Chief Medaria Arradondo, City Attorney Jim Rowader, City Coordinator Mark Ruff, and City Council President Lisa Bender of the investigation. The department will continue to work closely with both the City and MPD as the investigation progresses.

“One of the Civil Rights Division’s highest priorities is to ensure that every person in this country benefits from public safety systems that are lawful, responsive, transparent and nondiscriminatory,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department's Civil Rights Division. “It is essential that police departments across the country use their law enforcement authority, including the authority to use force, in a manner that respects civil rights and the sanctity of human life.”

“People throughout the city of Minneapolis want a public safety system that protects and serves all members of our community,” said Acting U.S. Attorney W. Anders Folk for the District of Minnesota. “This investigation by the Department of Justice provides a vital step to restore and build trust in the Minneapolis Police Department and its officers.”

The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994,  which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Department of Justice to remedy such misconduct through civil litigation. The department will be assessing law enforcement practices under the First, Fourth and Fourteenth Amendments to the U.S. Constitution, as well as under the Safe Streets Act of 1968, Title VI of the Civil Rights Act of 1964 and Title II of the Americans with Disabilities Act.

The Special Litigation Section of the Department of Justice Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the District of Minnesota, in Minneapolis, are jointly conducting this investigation. Individuals with relevant information are encouraged to contact the Department of Justice via email at Community.Minneapolis@usdoj.gov or by phone at 866-432-0268. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at civilrights.justice.gov.

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of Minnesota is available on its website at https://www.justice.gov/usao-mn.

An indictment was unsealed today in the Eastern District of Michigan charging two Italian nationals, along with a previously charged co-conspirator, for their alleged role in a conspiracy to defraud U.S. regulators and customers by making false and misleading statements about the emissions controls and fuel efficiency of more than 100,000 diesel vehicles sold in the United States by FCA US LLC.

According to court documents, Sergio Pasini, 43, of Ferrera, Italy, and Gianluca Sabbioni, 55, of Sala Bolognese, Italy, two senior diesel managers at Fiat Chrysler Automobiles Italy S.p.A. (FCA Italy), a wholly owned subsidiary of Stellantis N.V. — along with a previously charged co-conspirator, Emanuele Palma, 42, of Bloomfield Hills, Michigan — were responsible for developing and calibrating the 3.0-liter diesel engine used in certain FCA diesel vehicles. Their responsibilities included calibrating several software features in the vehicles’ emissions control systems to meet emissions standards for nitrogen oxides (NOx), a family of poisonous gases that are formed when diesel fuels are burned at high temperatures, while also achieving best-in-class fuel efficiency targets set by FCA US LLC.

The superseding indictment alleges that Palma, Pasini, Sabbioni, and their co-conspirators, purposely calibrated the emissions control functions to produce lower NOx emissions under conditions when the subject vehicles would be undergoing testing on the federal test procedures or driving “cycles,” and higher NOx emissions under conditions when the subject vehicles would be driven in the real world. Palma, Pasini, Sabbioni, and their co-conspirators allegedly referred to the manner in which they manipulated one method of emissions control as “cycle beating.” As alleged, by calibrating the emissions control functions on the subject vehicles to produce lower NOx emissions while the vehicles were on the driving “cycle,” and higher NOx emissions when the vehicles were off the driving “cycle,” or “off cycle,” the three defendants purposely misled FCA’s regulators by making it appear that the subject vehicles were producing less NOx emissions than they were, i.e., in real world driving conditions. Palma, Pasini, and Sabbioni also allegedly made and caused others to make false and misleading representations to FCA’s regulators about the emissions control functions of the subject vehicles in order to ensure that FCA obtained regulatory approval to sell the subject vehicles in the United States. 

The superseding indictment also alleges that Palma, Pasini, and Sabbioni employed “cycle beating” to achieve best-in-class fuel efficiency and make the subject vehicles more attractive to FCA’s potential customers, i.e., by increasing fuel economy and reducing the frequency of a required emissions control system service interval. The superseding indictment alleges that the co-conspirators understood their “cycle beating” calibration would harm consumers who purchased the vehicle, leading them to acknowledge that “there will always be the unlucky customer who will have the misfortune of using our loser cal[ibration].” 

Pasini and Sabbioni are each charged with one count of conspiracy to defraud the United States and to violate the Clean Air Act, one count of conspiracy to commit wire fraud, and six counts of violating the Clean Air Act. If convicted, Pasini and Sabbioni each face up to five years in prison on the conspiracy count to defraud the United States and to violate the Clean Air Act, up to 20 years in prison on the conspiracy count to commit wire fraud, and up to two years in prison for each count of violating the Clean Air Act. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Palma is charged with one count of conspiracy to defraud the United States and to violate the Clean Air Act, one count of conspiracy to commit wire fraud, six counts of violating the Clean Air Act, and two counts of making false statements to representatives of the FBI and the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID). If convicted, Palma faces up to five years in prison on the conspiracy count to defraud the United States and to violate the Clean Air Act, up to 20 years in prison on the conspiracy count to commit wire fraud, up to two years in prison for each count of violating the Clean Air Act, and up to five years in prison for each count of making false statements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Principal Deputy Assistant Attorney General Kevin O. Driscoll of the Justice Department’s Criminal Division; Acting U.S. Attorney Saima S. Mohsin of the U.S Attorney’s Office for the Eastern District of Michigan; Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD); Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office; and Special Agent in Charge Lance Ehrig of the EPA-CID’s West-Central Region made the announcement.

Principal Assistant Chief Henry P. Van Dyck and Trial Attorneys Kyle W. Maurer and Jason M. Covert of the Criminal Division’s Fraud Section, ENRD Senior Trial Attorney Todd W. Gleason, and Assistant U.S. Attorneys John K. Neal and Timothy J. Wyse for the Eastern District of Michigan are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

U.S. Attorney General Merrick B. Garland's statement following the verdict in the state of Minnesota's trial of Derek Chauvin:

"The jury in the state trial of Derek Chauvin has fulfilled its civic duty and rendered a verdict convicting him on all counts. While the state’s prosecution was successful, I know that nothing can fill the void that the loved ones of George Floyd have felt since his death. The Justice Department has previously announced a federal civil rights investigation into the death of George Floyd. This investigation is ongoing."

A Richmond, Virginia, tax return preparer pleaded guilty today to tax evasion. 

According to court documents and statements made in court, Willette J. Holland owned Tax Professionals, a return preparation firm located in Richmond, Virginia. In August 2014, the IRS contacted Holland because she did not file personal tax returns for the years 2010 through 2013. Holland then presented false returns to an IRS Revenue Agent for those years, which substantially underreported her gross receipts and taxes due. Holland additionally attempted to evade taxes for 2014 by depositing income into a bank account held in the name of a nominee, thereby concealing her earnings from the IRS. In 2015 and 2016, Holland again did not file tax returns despite being required to do so by law.

Holland is scheduled to be sentenced on July 15 and faces a maximum penalty of five years in prison. She also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Francine Davis and Assistant Chief Michael Boteler of the Justice Department’s Tax Division and Assistant U.S. Attorney Kaitlin Cooke for the Eastern District of Virginia are prosecuting the case.

The Department of Justice announced today that Stone Canyon Industry Holdings LLC (Stone Canyon) and its portfolio company SCIH Salt Holdings Inc. (SCIH), which was previously named Kissner Group Holdings LP, will divest their entire evaporated salt business in order to proceed with their proposed acquisition of Morton Salt Inc. (Morton), among other assets. The department said that without the divestiture, the proposed acquisition would substantially lessen competition in the sale of several types of evaporated salt, including round-can table salt, pharmaceutical-grade salt, and bulk evaporated salt.

The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the complaint.

“Americans use and depend on evaporated salt products every day for nutritional, medical and cleaning purposes,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Without the divestiture, this merger likely would have led to higher prices and lower quality for consumers throughout the United States. Today’s settlement will ensure that consumers, patients, and businesses continue to benefit from competition for these critical products.”

According to the complaint, Morton and SCIH’s wholly-owned subsidiary, US Salt LLC (US Salt), are two of only three producers that manufacture and distribute round-can table salt in the United States. Morton is the largest branded supplier of this pantry staple in the United States, and US Salt is the largest supplier of private-label round-can table salt in the United States. The complaint also alleges that Morton and US Salt are the only firms producing pharmaceutical-grade salt in the United States and Canada. Pharmaceutical-grade salt is a critical ingredient for dialysis treatment, intravenous saline solution, and other medical products that must meet stringent purity standards.  

The complaint further alleges that Morton and US Salt are two of only three major suppliers that manufacture and distribute bulk evaporated salt in the northeastern United States. Bulk evaporated salt is used in various industries including food processing and chemical manufacturing to produce essential everyday items such as processed foods, disinfectants, soap, and bleach. The complaint alleges that the merger would eliminate competition between Morton and US Salt for all of these evaporated salt products, likely leading to higher prices, reduced supply availability, lower quality products, and longer delivery times.

To eliminate the potential for competitive harm threatened by this acquisition, Stone Canyon and SCIH have agreed to divest their US Salt subsidiary, including their refinery in Watkins Glen, New York, as well as other all other assets used in the production of its evaporated salt products. US Salt has been in operation for over 100 years and is operated as a largely independent entity within Stone Canyon and SCIH. The proposed settlement will fully preserve the competitive landscape that exists in these evaporated salt markets today, as US Salt constitutes Stone Canyon’s and SCIH’s entire business that competes in the sale of evaporated salt products, including round-can table salt, pharmaceutical-grade salt, and bulk evaporated salt.

Stone Canyon is an industrial holding company incorporated in Delaware and headquartered in Los Angeles, California. Stone Canyon acquired Kissner Group Holdings LP, which it later renamed SCIH, in April 2020. 

SCIH is a Delaware corporation headquartered in Overland Park, Kansas, and had 2020 revenues of approximately $1 billion. US Salt is a subsidiary of SCIH with approximately $95 million in revenues in 2020.

K+S Aktiengesellschaft (K+S AG) is a chemical company headquartered in Kassel, Germany. In 2020, K+S AG reported revenues of approximately €3.7 billion. K+S AG’s Operating Unit Salt Americas, is a bundle of several subsidiaries that includes Morton, K+S Windsor Salt, and Sociedad Punta de Lobos.

Morton is a K+S AG subsidiary and a Delaware corporation headquartered in Chicago, Illinois. Morton generated approximately $1 billion in revenue in 2020.

As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Katrina Rouse, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon a finding that it serves the public interest.

The claims resolved by the settlement are allegations only and there has been no determination of liability.

A federal grand jury in the Eastern District of Texas returned a superseding indictment charging two Texas men with conspiring to fix prices by lowering rates paid to certain health care workers and then conspiring and endeavoring to obstruct a Federal Trade Commission (FTC) investigation of their conduct.

According to court documents, Neeraj Jindal and John Rodgers violated the Sherman Act by agreeing with co-conspirators in 2017 to pay lower rates to certain physical therapists and physical therapist assistants in north Texas, including the Dallas-Fort Worth metropolitan area. At the time, Jindal was the owner and Rodgers was a clinical director of a Texas-based therapist staffing company providing in-home physical therapy services. The superseding indictment alleges their company paid lower rates for several months after entering into the agreement.

Additionally, Jindal and Rodgers are charged with conspiring to obstruct and make false statements in proceedings before the FTC and endeavoring to obstruct those proceedings. According to the superseding indictment, Jindal and Rodgers conspired and then made false and misleading statements and withheld and concealed information during the FTC’s investigation to determine whether their company or other therapist staffing companies violated the Federal Trade Commission Act. The superseding indictment follows an indictment against Jindal returned in December 2020.

“The charges announced today underscore the Antitrust Division’s ongoing commitment to enforcing antitrust laws, particularly when the victims are American workers who deserve the benefits of competitive wages, mobility, and competition among employers for their services,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department's Antitrust Division. “This prosecution also demonstrates how seriously we take our obligation to protect the integrity of investigations into anticompetitive conduct, whether those investigations are conducted by the Department of Justice or another agency.”

“Wage-fixing agreements are, at their core, an attempt to artificially rig the labor market to depress wages and deprive workers of competitive salaries and benefits,” said Acting U.S. Attorney Nicholas J. Ganjei for the Eastern District of Texas. “The present charges demonstrate that the Department of Justice and its partner agencies will not stand by and allow the exploitation of American workers and the manipulation of the market.” 

“Today’s charges should serve as a warning to those who choose to engage in corrupt practices at the expense of hard-working Americans,” said Assistant Director Calvin Shivers of the FBI's Criminal Investigative Division. “The FBI is committed to working closely with our law enforcement partners to uncover corruption and bring the individuals responsible to justice.” 

A violation of the Sherman Act carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than $1 million. The charged obstruction offenses carry a statutory maximum penalty of five years imprisonment and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Antitrust Division’s Washington Criminal I Section is prosecuting the case, which was investigated with the assistance of the Antitrust Division’s Washington Criminal II Section and the FBI’s International Corruption Unit.

The charges in this case were brought in connection with the Antitrust Division’s ongoing commitment to prosecute anticompetitive conduct affecting American labor markets. Anyone with information on market allocation or price fixing by employers should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Today the Justice Department announced a settlement agreement with the Coolidge Unified School District to resolve the department’s investigation into the school district’s programs for its English learner students.  The department’s investigation of the district found system-wide failures to provide the instruction, resources and teacher training that students need to master English, leaving them to struggle academically year after year.  The department conducted its investigation under the Equal Educational Opportunities Act of 1974.

“Every child deserves an equal opportunity to excel in school. Where there are language barriers, schools have an obligation to do more to put students on an equal footing,” said  Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Justice Department will continue to enforce the law to make sure students who are learning English get the help they need to truly thrive in the classroom. We commend the district for entering into this agreement and look forward to working together so that the district’s English learner students can realize their full potential.”

Under the settlement agreement, the district will increase language instruction for English learner students so they can become fluent in English and understand the coursework in all of their academic subjects. The agreement also requires the district to provide robust teacher training, obtain the special materials and curricula that English learner students need to succeed academically, and actively evaluate students’ progress. The Justice Department will monitor the district’s implementation of the settlement for three full school years.

The enforcement of the Equal Educational Opportunities Act of 1974 is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at https://www.justice.gov/crt/educational-opportunities-section.  Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report/.

WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con el Distrito Escolar Unificado de Coolidge, el cual resuelve la investigación del Departamento de los programas del distrito escolar para sus estudiantes que están aprendiendo inglés. La investigación que el Departamento realizó del distrito halló fracasos por todo el sistema a la hora de proporcionar la enseñanza, los recursos y la capacitación de maestros que los estudiantes necesitan para dominar el inglés, lo que les dejó en dificultades académicas un año tras otro. El Departamento llevó a cabo su investigación en virtud de la Ley de Igualdad de Oportunidades Educativas («EEOA», por sus siglas en inglés) de 1974.

«Cada niño se merece la igualdad de oportunidades para tener éxito en la escuela. Cuando existen barreras lingüísticas, las escuelas tienen la obligación de esforzarse más por fomentar la igualdad de condiciones para los estudiantes», dijo Pamela S. Karlan, la Fiscal General Auxiliar Adjunta Principal de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá haciendo cumplir la ley para garantizar que los estudiantes que están aprendiendo inglés consigan la ayuda que necesitan para poder florecer en el aula. Felicitamos al distrito por haber firmado este acuerdo y esperamos colaborar con ellos para que los estudiantes del distrito que están aprendiendo inglés puedan realizar su potencial completo».

Conforme el acuerdo conciliatorio, el distrito expandirá la enseñanza lingüística para estudiantes que están aprendiendo inglés para que puedan dominar el inglés y comprender las tareas escolares en cada una de sus asignaturas académicas. Asimismo, el acuerdo requiere que el distrito capacite plenamente a sus maestros, que obtenga los materiales y currículos especiales que estudiantes que están aprendiendo inglés necesitan para su éxito académico y que evalúe activamente el progreso de los estudiantes. Por otra parte, el Departamento de Justicia supervisará la implementación del acuerdo por parte del distrito durante tres años escolares.

La aplicación de la EEOA es una de las prioridades principales de la División de Derechos Civiles del Departamento de Justicia. Para más información sobre la División de Derechos Civiles, puede visitar su sitio web en www.justice.gov/crt. Para más información sobre la labor de la Sección de Oportunidades Educativas, vaya a https://www.justice.gov/crt/educational-opportunities-section. Miembros del público también pueden informar de posibles vulneraciones de derechos civiles en https://civilrights.justice.gov/report/.

A federal grand jury in San Francisco returned an indictment today charging a Houston-based tax attorney of conspiring with the Chairman and Chief Executive Officer of a private equity firm to defraud the IRS. The grand jury further charged him with three counts of aiding and assisting in the preparation of the CEO’s false tax returns for the 2012 to 2014 tax years.

According to the indictment, from 1999 to 2014, Carlos E. Kepke helped Robert F. Smith create and maintain offshore entities that were used to conceal from the IRS approximately $225,000,000 of capital gains income that Smith had earned. In approximately March 2000, Kepke allegedly created a Nevisian limited liability company (Flash Holdings) and a Belizean trust (Excelsior Trust) to serve as the tax evasion vehicles. When Smith earned capital gains income from his private equity funds, a portion was allegedly deposited into Flash’s bank accounts in the British Virgin Islands and Switzerland. As alleged, Smith was able to hide this income because Excelsior, and not Smith, was the nominal owner of Flash. Smith then allegedly failed to timely and fully report his income to the IRS. Kepke allegedly assisted in the preparation of Smith’s false 2012 to 2014 returns.  

For his services, Smith has allegedly paid Kepke nearly $1,000,000 since 2007. These fees, as charged, included an annual payment for Kepke to purge or “securitize” his records related to Smith, Excelsior, and Flash.

Kepke is scheduled for his initial court appearance on April 22 before U.S. Magistrate Judge Corley of the U.S. District Court for the Northern District of California. If convicted, Kepke faces up to five years in prison on the conspiracy count and three years in prison for each count of assisting in the preparation of a false return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division; Acting U.S. Attorney Stephanie M. Hinds of the U.S. Attorney’s Office in the Northern District of California; and Jim Lee, Chief of the IRS Criminal Investigations (IRS-CI), made the announcement.

IRS-CI are investigating the case.

Senior Litigation Counsel Corey Smith, Assistant U.S. Attorney Michael G. Pitman, and Trial Attorneys Lee Langston and Christopher Magnani are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A Maine man was charged today in federal court in Springfield, Massachusetts, in connection with setting the Dec. 28, 2020, fire that destroyed the Martin Luther King Jr. Community Presbyterian Church in Springfield.

Dushko Vulchev, 44, of Houlton, was charged by criminal complaint with four counts of damage to religious property involving fire and one count of use of fire to commit a federal felony. Vulchev is currently in state custody and will make an initial appearance in federal court in Springfield at a later date.

The Martin Luther King Jr. Community Presbyterian Church in Springfield has a primarily Black congregation, and the church is named in honor of civil rights leader Dr. Martin Luther King Jr. According to court documents, an intentionally set fire caused extensive damage to the church in the early morning hours of Dec. 28, 2020. In court documents, the government alleges that Vulchev set the Dec. 28 fire. The government also alleges that Vulchev is also responsible for several other fires set on church property and for a series of tire slashings on church property and in the surrounding area. The additional fires alleged include a fire at the backdoor of the church on Dec. 13, 2020, and two additional fires near the rear door of the church on Dec. 15, 2020. The investigation, including the review of security videos and location data from Vulchev’s mobile telephone, showed Vulchev at or near the scene of many of the alleged crimes, including the Dec. 28, 2020, fire that severely damaged the church.

In addition, according to charging documents, a subsequent search of Vulchev’s vehicle and electronic devices revealed messages from Vulchev demonstrating Vulchev’s hatred of Black people, including recent messages from Vulchev in December 2020 calling to “eliminate all N****s.” In addition, the devices contained images demonstrating Vulchev’s racial animus toward Black people.

The charge of damage to religious property involving fire provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $250,000. The charge of use of fire to commit a federal felony provides for a sentence of at least 10 years in prison, in addition to any sentence received for the other charged crimes. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division; Acting U.S Attorney Nathaniel R. Mendell of the District of Massachusetts;  Special Agent in Charge Joseph R. Bonavolonta of the FBI Boston Field Division; Special Agent in Charge Kelly Brady of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF)'s Boston Field Division; and Massachusetts State Police Fire Marshal Peter Ostroskey made the announcement.

Assistance was provided by Hampden District Attorney’s Office; Berkshire District Attorney’s Office; Springfield Police Department; Springfield Fire Department; Pittsfield Police Department; American International College Police Department; Houlton (Maine) Police Department; and Newington (Conn.) Police Department.

The case is being prosecuted by Assistant U.S. Attorney Deepika Bains Shukla, Chief of Mendell’s Springfield Branch Office, and Trial Attorneys Timothy Visser and Kyle Boynton of the Justice Department’s Civil Rights Division.

The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The Department of Justice, together with the Federal Trade Commission (FTC), today announced a civil complaint against defendants Eric Anthony Nepute and Quickwork LLC, doing business as Wellness Warrior, in the first enforcement action alleging violations of the COVID-19 Consumer Protection Act.

According to a complaint filed in the U.S. District Court for the Eastern District of Missouri, the defendants advertised that their vitamin D and zinc nutritional supplements could prevent or treat COVID-19 without competent or reliable scientific evidence to support their claims. Further, the defendants allegedly advertised without scientific support that their supplements were equally or more effective therapies for COVID-19 than the currently available vaccines. The complaint seeks civil penalties and injunctive relief to stop the defendants from continuing to make deceptive advertising claims.

The COVID-19 Consumer Protection Act, passed by Congress in December 2020, prohibits deceptive acts or practices associated with the treatment, cure, prevention, mitigation or diagnosis of COVID-19. Persons who violate the COVID-19 Consumer Protection Act may be subject to civil penalties, injunctive relief and other remedies available under the FTC Act. The complaint also alleges violations of the FTC Act, which prohibit unfair and deceptive conduct, and false advertising, respectively.

“The Justice Department is committed to preventing the unlawful marketing of unproven COVID-19 treatments,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “Deceptive marketing of unproven products discourages consumers from following health and safety guidelines provided by public health officials. The unlawful spreading of COVID-19 misinformation to sell a product will not be tolerated.”

“The defendants’ claims that their products can stand in for approved COVID-19 vaccines are particularly troubling: we need to be doing everything we can to stop bogus health claims that endanger consumers,” said Acting Chairwoman Rebecca Kelly Slaughter of the FTC. “With this case, the Commission has quickly put to use its new authority to stop false marketing claims related to the pandemic.”

This matter is being handled by Trial Attorneys Benjamin Cornfeld and Brandon Robers of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Suzanne Moore from the U.S. Attorney’s Office for the Eastern District of Missouri. Kristin M. Williams, Mary L. Johnson and Brady C. Williams represent the FTC.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.

The Justice Department announced today that it has entered into a proposed consent decree to settle a voting rights lawsuit with the City of West Monroe, Louisiana.

The Justice Department’s lawsuit, brought under Section 2 of the Voting Rights Act, challenges the current at-large method of electing the West Monroe Board of Aldermen. Under this agreement, the City of West Monroe will change its method of electing its Board of Aldermen to ensure compliance with the protections of the Voting Rights Act.

The proposed consent decree was filed in federal court in conjunction with a lawsuit brought by the Justice Department. The department’s complaint alleges that the current method of electing the West Monroe Board of Aldermen results in Black citizens in West Monroe having less opportunity than white citizens to participate in the political process and to elect candidates of their choice, in violation of Section 2 of the Voting Rights Act. Although Black residents comprise nearly 30% of the electorate, no Black candidate has ever been elected to the West Monroe Board of Aldermen. The complaint does not allege that the current method of election was adopted or maintained with discriminatory intent.

“The Voting Rights Act remains a vital tool to ensure that underrepresented citizens have a fair chance to choose their representatives,” said Principal Deputy Assistant Attorney General Pamela S, Karlan for the Justice Department’s Civil Rights Division. “We appreciate that the City of West Monroe has worked diligently and cooperatively with the department to adopt a solution that provides all the City’s citizens with an equal opportunity to participate in the political process and elect aldermen of their choice.”

“We join the Civil Rights Division in bringing this important lawsuit under the Voting Rights Act and appreciate that the City of West Monroe has worked with the Justice Department to adopt a solution that brings about fair representation,” said Acting U.S. Attorney Alexander C. Van Hook of the Western District of Louisiana.

The department gave notice to the City of West Monroe of its intent to bring suit under the Voting Rights Act on March 4, and the parties worked collaboratively to achieve this agreement. Under the parties’ consent decree — and subject to approval by the federal district court in Louisiana — West Monroe will discontinue use of its current at-large method of electing the five members of its Board of Aldermen. Beginning with the next municipal election, currently scheduled for March 26, 2022, three members of the Board of Aldermen will be elected from single-member districts and two members will be elected at-large. The agreement also provides West Monroe will publicize the new method of election.

More information about the Voting Rights Act and other federal voting rights laws is available on the Justice Department website at https:www.justice.gov/crt/voting-section.

A federal grand jury in Philadelphia returned a superseding indictment charging a Pennsylvania man with sixteen counts of assisting in the preparation of federal tax returns. 

According to the superseding indictment, Jean Coq of Philadelphia prepared tax returns for clients for tax years 2013 and 2014 that claimed inflated itemized deductions, including unreimbursed employee expenses and gifts to charity. As a result of these false items, Coq’s clients sought tax refunds to which they were not entitled.

If convicted, Coq faces a maximum penalty of three years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania made the announcement.

The IRS-Criminal Investigations is investigating the case.

Trial Attorney Ann M. Cherry of the Justice Department’s Tax Division and Assistant U.S. Attorney David Ignall of the U.S. Attorney’s Office for the Eastern District of Pennsylvania are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Attorney General Merrick B. Garland spoke yesterday with David Lametti, the Minister of Justice and Attorney General of Canada. In their inaugural conversation, the Attorneys General discussed a number of transborder law enforcement issues, including cybercrime, as well as violence against women, minorities, Indigenous peoples and other historically disadvantaged persons. The Attorneys General discussed their shared commitment to combatting systemic racism and discrimination and to further enhancing bilateral cooperation on law enforcement matters, including through the reinstitution of the U.S./Canada Cross-Border Crime Forum.

A New Hampshire man was sentenced today to 18 months in prison for employment tax fraud.

According to court documents, Walter Rodriguez, of Manchester, aided and abetted several drywall companies that were evading the payment of employment taxes from 2011 to 2013. Rodriguez found workers for the companies for construction jobs. The companies then issued checks in the names of fictitious or fraudulent identities and provided those checks to Rodriguez, who converted the checks to cash at local check-cashing businesses and paid the workers off-the-books. In total, Rodriguez enabled the payment of $1.7 million in unreported wages, causing a tax loss of $416,000.

In addition to the term of imprisonment, U.S. District Judge Steven J. McAuliffe ordered Rodriguez to serve one year of supervised release and to pay approximately $416,163 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney John J. Farley for the District of New Hampshire made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorney Brittney Campbell of the Justice Department’s Tax Division and Assistant U.S. Attorney Seth Aframe of the District of New Hampshire prosecuted the case.

A federal grand jury in Indianapolis, Indiana, returned a 17-count superseding indictment charging three officers and one sergeant of the Muncie Police Department with excessive force and obstruction.

According to court documents, Officers Joseph Chase Winkle, 34, Jeremy Gibson, 30, Corey Posey, 28, and Sergeant Joseph Krejsa, 50, were indicted for their roles in using excessive force against arrestees and attempting to cover up the misconduct.

The superseding indictment charges Winkle with 11 felony offenses, Gibson with three felony offenses, Krejsa with two felony offenses, and Posey with one felony offense.

Winkle is charged with five counts of depriving five different arrestees of their rights to be free from excessive force, and six counts writing false reports about his uses of force against those arrestees, as well as two other arrestees. According to the superseding indictment, Winkle’s actions included kicking, punching, knee-striking, and using a taser on arrestees without justification, and resulted in bodily injury to the arrestees.

Gibson is charged with two counts of depriving two arrestees of their rights to be free from excessive force, and one count of writing a false report about his use of force against one of those arrestees. According to the superseding indictment, Gibson’s actions included punching, stomping on, and knee-striking arrestees without justification, and resulted in bodily injury to both arrestees.

Krejsa is charged with two counts of writing false reports related to two of Winkle’s excessive force incidents. According to the superseding indictment, on one occasion, Krejsa minimized the level of force used by Winkle during one arrest, and, on another occasion, falsely represented that a different Muncie Police Department sergeant cleared Winkle of his use of force when it was actually Krejsa who conducted that review.

Posey is charged with one count of writing a false report related to one of Winkle’s excessive force incidents. According to the superseding indictment, Posey’s use of force report misrepresented the arrestee’s behavior, and mischaracterized and omitted Winkle’s unlawful use of force during the incident.

Winkle, Gibson, and Krejsa were previously charged in a 12-count indictment with civil rights and obstruction offenses arising from five of the six incidents charged in the superseding indictment. The superseding indictment adds additional excessive force and false report charges against Winkle and Gibson related to a sixth incident, and charges Posey (who was not included in the previous indictment) with obstruction.

The maximum penalty for the deprivation-of-rights offenses is 10 years of imprisonment and the maximum penalty for false report offenses is 20 years of imprisonment.

The FBI conducted the investigation. Trial Attorneys Mary J. Hahn and Katherine G. DeVar of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Nicholas J. Linder of the Southern District of Indiana are prosecuting the case.

An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.

A Maryland tax preparer pleaded guilty today to conspiring to defraud the United States and to assisting in the preparation of a false tax return.

According to court documents and statements made in court, Veronica Fortune and two co-conspirators provided return preparation services from an office in Temple Hills. Fortune operated under several business names, including Fortune’s Professional Services LLC. Beginning in 2015, Fortune began preparing false returns for clients and permitted her co-conspirators to file false returns using Fortune’s IRS e-filing credentials. The IRS later expelled Fortune from its e-filing program, but she continued to prepare fraudulent returns through the 2018 tax year. In total, Fortune and her co-conspirators caused a tax loss to the IRS of $189,748.

Fortune is scheduled to be sentenced on Aug. 20, 2021. She faces a maximum penalty of five years on the conspiracy charge, and three years on the preparing a false tax return offense. A period of supervised release, restitution and monetary penalties also may be imposed. A federal district court judge will determine Fortune’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jonathan Lenzner for the District of Maryland made the announcement.

The IRS-Criminal Investigation is investigating the case.

Trial Attorney Kathryn Sparks of the Justice Department’s Tax Division and Assistant U.S. Attorney Leah Grossi of the U.S. Attorney’s Office for the District of Maryland are prosecuting the case.

The Algoma Central Corporation (Algoma), headquartered in St. Catharines, Ontario, was fined $500,000 after pleading guilty to dumping wastewater into Lake Ontario.

Algoma operated a fleet of dry and liquid bulk carriers on the Great Lakes. One of the vessels in the defendant’s fleet was the M/V Algoma Strongfield (Strongfield). Built in China, the Strongfield was delivered to Canada on May 30, 2017, by a crew from Redwise Maritime Services, B.V. (Redwise), a vessel transport company based in the Netherlands.

“The Great Lakes are our nation’s largest source of fresh water, and this prosecution shows the Administration’s commitment to preserving a natural resource that will be crucial for generations to come,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD).

“The very purpose of the Clean Water Act is to protect our natural resources, including one of our nation’s greatest natural treasures, the Great Lakes, from harm,” said U.S. Attorney James P. Kennedy for the Western District of New York. “This conviction and the fine imposed sends a strong message that those who violate the Clean Water Act will be held accountable for their actions. This penalty also ensures that this defendant will be monitored in the future and will be strictly obligated to comply with those environmental laws and regulations that protect our waters, our fisheries, our wildlife, and each of us.”

During the Strongfield’s delivery voyage, while manned by a Redwise crew, the oily water separator and oil content monitor malfunctioned or failed on multiple occasions, which resulted in an accumulation of unprocessed oily bilge water. On May 5, 2017, an Algoma employee directed Redwise to transfer and store the unprocessed oily bilge water in the Strongfield’s used wash water tank to avoid an overboard discharge of unprocessed bilge water into the Pacific Ocean. The wash water tank was intended to store deck and cargo hold wash water and is not listed on the Strongfield’s International Oil Pollution Prevention certificate. Between May 5, 2017, and the Strongfield’s arrival in Canada, the Redwise crew made several additional transfers of unprocessed oily bilge waste into the wash water tank to avoid overboard discharges of untreated bilge water.

On May 19, 2017, as the Strongfield was transiting the Panama Canal, an Algoma employee boarded the vessel and remained onboard until the vessel’s arrival in Canada, where he assumed the duties of Chief Engineer. On May 30, 2017, the Strongfield arrived in Sept-Iles, Quebec, Canada, where the Redwise crew handed over operation of the vessel to an Algoma crew. Although some of the Algoma crew were advised that the wash water tank contained unprocessed oily bilge water, Algoma acted negligently in failing to inform all onboarding Algoma crewmembers and the inspectors of the contents of the wash water tank.

On June 6, 2017, the Stongfield was transiting Lake Ontario. While in the waters of the United States within the Western District of New York, the 3rd officer on board the Strongfield requested permission to empty the contents of the wash water tank into Lake Ontario, and the captain approved the discharge. Because Algoma had negligently failed to inform the 3rd officer and the captain what the wash water tank contained, approximately 11,887 gallons of unprocessed oily bilge water were released into Lake Ontario. The discharge was stopped when another Algoma employee learned of the discharge and informed the 3rd officer and captain that the wash water tank contained unprocessed oily bilge water and instructed them to stop the discharge immediately. After the incident, Algoma contacted Canadian and U.S. authorities to report the discharge. 

In addition to the fine, Algoma was put on probation for a period of three years during which it must implement an environmental compliance plan.  

The sentencing is the result of an investigation by the U.S. Coast Guard Investigative Service, under the direction of Resident Agent in Charge Cindy C. Buckley, Buffalo, New York, and Resident Agent in Charge Edward L. Songer, Detroit, Michigan.

Trial Attorney Patrick M. Duggan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Aaron J. Mango of the Western District of New York are prosecuting the case.

A federal grand jury in Atlanta, Georgia, returned an indictment yesterday charging a Georgia man with failing to pay employment taxes and with obstructing the collection efforts of the IRS.

According to the indictment, from 2009 through 2018, Douglas Mittleider, of Adairsville, was in charge of several long-term care facilities located throughout the United States, and was responsible for withholding and paying employment taxes on behalf of his employees. Notwithstanding his obligations, Mittleider allegedly did not fully pay over these withholdings, resulting in an outstanding balance of more than $10,000,000 being owed to the IRS. From approximately November 2011 to the present, Mittleider allegedly attempted to obstruct IRS efforts to collect employment taxes that were due by filing false employment tax returns and directing payment of corporate funds to his family members instead of to the IRS.

The defendant’s initial court appearance will be scheduled at a later date in the U.S. District Court for the Northern District of Georgia. If convicted, he faces a maximum penalty of three years in prison on the obstruction charge and five years in prison on each of the other charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys William Guappone and Mitchell Galloway of the Justice Department’s Tax Division and Assistant U.S. Attorney Alana Black of the Northern District of Georgia are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The Justice Department, U.S. Environmental Protection Agency (EPA) and the State of Illinois have announced an amendment to the 2005 Clean Air Act (CAA) consent decree signed with ExxonMobil Oil Corporation to resolve violations at its petroleum refinery in Joliet.

“This new agreement requires ExxonMobil to clean up its act and pay penalties for its past violations,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD). “EPA and our Illinois state partner deserve credit for policing ExxonMobil’s compliance with the Clean Air Act and our prior settlement with the company.”

“I’m pleased that the agreement announced today with ExxonMobil will reduce air emissions from their Joliet refinery,” said Acting Assistant Administrator for Enforcement and Compliance Assurance Larry Starfield of the EPA. “The result will be cleaner air for communities in Illinois and lower environmental impacts.”

The consent decree amendment will reduce air pollution through upgrades and improvements and address violations of the 2005 consent decree and the CAA. ExxonMobil will make physical and operational changes to its sulfur recovery plant that will reduce emissions of hydrogen sulfide and sulfur dioxide and will meet a lower sulfur dioxide emission limit at its north sulfur recovery unit. ExxonMobil will also make physical and operational changes to the emission controls for its fluidized catalytic cracking unit, also referred to as the FCCU, and it will meet lower emission limits for sulfur dioxide and nitrogen oxides at the FCCU.

To address leak detection and repair violations, ExxonMobil will update its program to include procedures for properly monitoring valves that are covered in insulation or that are located inside fireboxes. ExxonMobil will also use an optical gas imaging camera to monitor its open-ended lines for leaks. To address continuous emissions monitoring system violations, ExxonMobil will develop a comprehensive plan to ensure implementation and compliance with regulatory requirements. 

Under the consent decree amendment, ExxonMobil will pay $1,515,463 in penalties, $1,086,640 to the federal government and $428,823 to the State of Illinois. The amendment also includes an estimated $10 million of improvements to reduce air emissions from the facility.

Today’s settlement, lodged with the U.S. District Court for the Northern District of Illinois, will be subject to a 30-day public comment period after notice of the settlement is published in the Federal Register. To view the consent decree amendment or to submit a comment, visit the Justice Department’s website: www.justice.gov/enrd/Consent_Decrees.html.

For more information about the 2005 consent decree and the consent decree amendment with ExxonMobil: https://www.epa.gov/enforcement/exxonmobil-refinery-settlement.

A federal grand jury in Waco, Texas, returned an indictment today charging a Texas tax preparer with 11 counts of assisting in the preparation of false tax returns.

According to the indictment, Rossalynn Thomas operated TaxPros, a tax return preparation business in Temple. Between November 2014 through January 2017, Thomas allegedly falsified clients’ tax returns by claiming, among other things, false business income and education credits in order to generate tax refunds. The indictment further alleges that one of Thomas’s clients was an IRS agent acting in an undercover capacity. Thomas allegedly prepared a tax return for the IRS agent that falsely claimed charitable contributions and unreimbursed business expenses.

If convicted, Thomas faces a maximum sentence of three years in prison for each count. She also faces a period of supervised release and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Robert A. Kemins and Matthew C. Hicks of the Justice Department’s Tax Division are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Note: A full copy of the unsealed court documents can be viewed here.

WASHINGTON – The Justice Department today announced a court-authorized operation to copy and remove malicious web shells from hundreds of vulnerable computers in the United States running on-premises versions of Microsoft Exchange Server software used to provide enterprise-level e-mail service.

Through January and February 2021, certain hacking groups exploited zero-day vulnerabilities in Microsoft Exchange Server software to access e-mail accounts and place web shells (which are pieces of code or scripts that enable remote administration) for continued access. Other hacking groups followed suit starting in early March after the vulnerability and patch were publicized. Although many infected system owners successfully removed the web shells from thousands of computers, others appeared unable to do so, and hundreds of such web shells persisted unmitigated. Today’s operation removed one early hacking group’s remaining web shells, which could have been used to maintain and escalate persistent, unauthorized access to U.S. networks. The FBI conducted the removal by issuing a command through the web shell to the server, which was designed to cause the server to delete only the web shell (identified by its unique file path). This is unrelated to Microsoft’s 13 April announcement.

“Today’s court-authorized removal of the malicious web shells demonstrates the Department’s commitment to disrupt hacking activity using all of our legal tools, not just prosecutions,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division. “Combined with the private sector’s and other government agencies’ efforts to date, including the release of detection tools and patches, we are together showing the strength that public-private partnership brings to our country’s cybersecurity. There’s no doubt that more work remains to be done, but let there also be no doubt that the Department is committed to playing its integral and necessary role in such efforts.”

“Combatting cyber threats requires partnerships with private sector and government colleagues,” said Acting U.S. Attorney Jennifer B. Lowery of the Southern District of Texas. “This court-authorized operation to copy and remove malicious web shells from hundreds of vulnerable computers shows our commitment to use any viable resource to fight cyber criminals. We will continue to do so in coordination with our partners and with the court to combat the threat until it is alleviated, and we can further protect our citizens from these malicious cyber breaches.”

“This operation is an example of the FBI’s commitment to combatting cyber threats through our enduring federal and private sector partnerships,” said Acting Assistant Director Tonya Ugoretz of the FBI’s Cyber Division. “Our successful action should serve as a reminder to malicious cyber actors that we will impose risk and consequences for cyber intrusions that threaten the national security and public safety of the American people and our international partners. The FBI will continue to use all tools available to us as the lead domestic law enforcement and intelligence agency to hold malicious cyber actors accountable for their actions.”

On March 2, 2021, Microsoft announced that a hacking group used multiple zero-day vulnerabilities to target computers running Microsoft Exchange Server software. Various other hacking groups also have used these vulnerabilities to install web shells on thousands of victim computers, including those located the United States. Because the web shells the FBI removed today each had a unique file path and name, they may have been more challenging for individual server owners to detect and eliminate than other web shells.

Throughout March 2021, Microsoft and other industry partners released detection tools, patches, and other information to assist victim entities in identifying and mitigating this cyber incident. Additionally, the FBI and the Cybersecurity and Infrastructure Security Agency released a Joint Advisory on Compromise of Microsoft Exchange Server on March 10, 2021. Despite these efforts, by the end of March, hundreds of web shells remained on certain U.S.-based computers running Microsoft Exchange Server software.

Although today’s operation was successful in copying and removing those web shells, it did not patch any Microsoft Exchange Server zero-day vulnerabilities or search for or remove any additional malware or hacking tools that hacking groups may have placed on victim networks by exploiting the web shells. The Department strongly encourages network defenders to review Microsoft’s remediation guidance and the March 10, 2021 Joint Advisory for further guidance on detection and patching.

The FBI is attempting to provide notice of the court-authorized operation to all owners or operators of the computers from which it removed the hacking group’s web shells. For those victims with publicly available contact information, the FBI will send an e-mail message from an official FBI e-mail account (@FBI.gov) notifying the victim of the search. For those victims whose contact information is not publicly available, the FBI will send an e-mail message from the same FBI e-mail account to providers (such as a victim’s ISP) who are believed to have that contact information and ask them to provide notice to the victim.

If you believe you have a compromised computer running Microsoft Exchange Server, please contact your local FBI Field Office for assistance. The FBI continues to conduct a thorough and methodical investigation into this cyber incident.

The Justice Department announced today that it has reached a settlement, through a court-supervised settlement agreement, with the Commonwealth of Pennsylvania and the Pennsylvania State Police (PSP) resolving the United States’ claims that PSP’s use of physical tests as part of the entry-level hiring process for state troopers resulted in a pattern or practice of employment discrimination against women, in violation of Title VII of the Civil Rights Act of 1964.

Title VII is a federal law that prohibits discrimination in employment on the basis of race, color, religion, sex, and national origin. The suit alleged that PSP violated Title VII beginning as early as May 14, 2003, by administering physical tests that assessed physical skills not required to perform the job and that disproportionately excluded female applicants.

“Employers cannot impose selection criteria that unfairly screen out qualified female applicants,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “When the Pennsylvania State Police use a physical fitness test as part of the process for choosing state troopers, they must ensure that the test complies with federal law. This settlement agreement reflects the Civil Rights Division’s continued commitment to removing artificial barriers that prevent women from becoming law enforcement officers.”

Under the terms of the settlement agreement, subject to court approval, PSP will pay $2,200,000 million into a settlement fund that will be used to compensate those women who were harmed by the employment practices challenged by the United States. The agreement also requires PSP to offer priority hiring relief, with retroactive seniority, for up to 65 women for entry-level state trooper jobs. All priority hiring candidates must meet the employer’s lawful selection criteria, including the successful passing of any physical fitness test that meets the requirements of Title VII.

In a joint filing today in the U.S. District Court for the Middle District of Pennsylvania, the parties moved for a court order provisionally approving the terms of the settlement agreement. The motion also asks the court to schedule a fairness hearing to provide an opportunity for individuals potentially affected by the proposed agreement to provide comments on the terms of the settlement. The proposed settlement, once approved by the District Court, will resolve the United States’ complaint filed on July 29, 2014.

The case was brought by the Civil Rights Division’s Employment Litigation Section, which makes the full and fair enforcement of Title VII a top priority. Additional information about the Civil Rights Division and the jurisdiction of the Employment Litigation Section is available on its websites at www.justice.gov/crt/ and https://www.justice.gov/crt/employment-litigation-section.

The Justice Department announced today that it has filed a lawsuit against Allen and Heidi Woodcock, owners and managers of rental properties in Oil City, alleging sexual harassment and retaliation in violation of the Fair Housing Act.

The lawsuit, filed in the U.S. District Court for the Western District of Pennsylvania, alleges that Allen Woodcock sexually harassed a female tenant in April 2019 after he entered her home to perform maintenance. According to the complaint, Allen Woodcock touched the tenant’s body without her consent and forcibly tried to kiss her, and the Woodcocks evicted the tenant after she reported the harassment to Heidi Woodcock.

“People should never have to endure sexual harassment in their home, where they should feel safe and secure,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Justice Department will vigorously enforce the Fair Housing Act against landlords who engage in this kind of abusive and illegal behavior.”

“Combatting sexual harassment in housing is a high priority at the Department of Housing and Urban Development (HUD),” said Acting Assistant Secretary for Fair Housing Jeanine Worden. “This is an example of how HUD and the Justice Department work together to enforce the Fair Housing Act.”

“Sexual harassment in housing is illegal,” said Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania. “Landlords, property managers or anyone else with control over housing should recognize by the filing of this lawsuit that we take action to combat such despicable conduct.”

The lawsuit arose from a complaint that the former tenant filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.

Today’s lawsuit seeks monetary damages to compensate the victim and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in court.

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the Initiative in October 2017, the Justice Department has filed 21 lawsuits alleging sexual harassment in housing.

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.

Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Allen and Heidi Woodcock, or who have other information that may be relevant to this case, should call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at fairhousing@usdoj.gov, or submit a report online. 

Individuals can also report sexual harassment and other forms of housing discrimination by contacting HUD at 1-800-669-9777 or by filing a HUD complaint online.

A federal grand jury in the Southern District of Florida returned an indictment Thursday charging two U.S. citizens and a Dutch national with conducting a foreign exchange trading scheme to steal $30 million from their investor victims.

According to court documents, Patrick Gallagher, 44, of Middleborough, Massachusetts, Michael Dion, 49, of Orlando, Florida, and Emade Echadi, 41, a resident of the Netherlands, allegedly devised a scheme in which Dion and Gallagher would solicit victims to invest in their foreign exchange company, Global Forex Management, by promising them large returns based on fabricated prior trading results. The defendants allegedly told the victims that their funds would be traded using an online trading platform provided by Echadi’s company, IB Capital. However, according to the indictment, Gallagher, Dion, and Echadi instead were working together to steal the victim investors’ money. In May 2012, they allegedly executed their scheme by intentionally creating losing trades for the investors and stole $30 million from their victims. After fabricating the massive trading loss, the defendants allegedly concealed the scheme from victims by creating fraudulent trading records and then routed the stolen money through shell companies they had set up all over the world.

The defendants are charged with conspiracy to commit securities fraud, securities fraud, conspiracy to commit wire fraud, and conspiracy to commit money laundering. If convicted, the defendants face a maximum penalty of five years in prison for conspiracy to commit securities fraud and 20 years in prison for each of the other charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, and Inspector in Charge Delany E. De Leon-Colón of the U.S. Postal Inspection Service made the announcement.

Trial Attorneys Brittain Shaw and Vasanth Sridharan of the Criminal Division’s Fraud Section are prosecuting the case.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The Biden-Harris Administration today submitted to Congress the President’s priorities for fiscal year 2022 discretionary spending. The funding request invests in the core foundations of our country’s strength and advances key Justice Department priorities, including increasing funding for federal civil rights enforcement, addressing the rise of domestic terrorism, combatting gun violence and reforming criminal justice systems.

“The President’s proposed funding request prioritizes resources the Justice Department needs to advance its mission of ensuring equal justice under law,” said U.S. Attorney General Merrick B. Garland. “This proposal makes critical investments in a wide range of departmental priorities, including strengthening civil rights enforcement and defending against domestic and international terrorism.”

The President’s 2022 discretionary request:

• Reinvigorates Federal Civil Rights Enforcement. In order to protect marginalized communities, the discretionary request invests $209 million, an increase of $33 million, in the department’s Civil Rights Division, Community Relations Service, and other programs. These funds would support: police reform; the prosecution of hate crimes across the nation, and especially in communities uniquely impacted by bias, xenophobia, and driven by the COVID-19 pandemic crisis, such as Asian-American communities; the enforcement of voting rights in the Civil Rights Division; mediation and conciliation services for community conflicts arising from discriminatory practices; and other activities.
• Addresses Domestic Terrorism. The discretionary request provides an additional $101 million to address the rising threat of domestic terrorism while respecting civil rights and civil liberties. This increase includes $45 million for the Federal Bureau of Investigation (FBI) for domestic terrorism investigations, $40 million for the U.S. Attorneys to manage increasing domestic terrorism caseloads, $12 million for additional response capabilities at the U.S. Marshals Service, and $4 million to the National Institute of Justice (NIJ) to support research on domestic terrorism threats. These investments complement funding provided for the Department of Homeland Security (DHS).
• Combats the Gun Violence Public Health Epidemic. The discretionary request includes $2.1 billion, an increase of $232 million above the 2021 enacted level, for DOJ to address the gun violence public health crisis plaguing communities across the nation. Investments include $401 million in state and local grants, an increase of $162 million or 68 percent above the 2021 enacted level.
• Invests in Community Policing, Police Reform, and Other Efforts to Address Systemic Inequities. Policies that create strong, positive ties between law enforcement and the communities they serve are critical to making the nation’s communities safer and to rooting out systemic inequities in the justice system. The discretionary request provides $1.2 billion, an increase of $304 million, to support a range of programs supporting police-community relationships, including the Community Oriented Policing Services (COPS) hiring program and programs that support community-oriented policing policies and practices, such as racial sensitivity and implicit bias training and additional support for hate crime training and police innovation programs.
• Invests in Efforts to End Gender-Based Violence. The discretionary request proposes a historic investment of $1 billion to support Violence Against Women Act (VAWA) programs at DOJ, a $487 million or 95-percent increase over the 2021 enacted level. This funding supports substantial increases for longstanding VAWA programs, in addition to funding for new programs to expand restorative justice efforts, protect transgender victims, and support women at Historically Black Colleges and Universities (HBCUs), Hispanic-Serving Institutions (HSIs), and Tribal Colleges.
   

These discretionary investments reflect only one element of the President’s broader agenda. In the coming months, the Administration will release the President’s Budget, which will present a unified, comprehensive plan to address the overlapping crises we face in a fiscally and economically responsible way. 

For more information on the President’s FY22 discretionary funding request, please visit: https://www.whitehouse.gov/omb/FY-2022-Discretionary-Request/.

 A federal jury convicted a California man today of a federal hate crime for attacking a Black man with a knife on a street in Santa Cruz.

Ole Hougen, 44, of Santa Cruz, was convicted of willfully attempting to cause bodily injury by using a dangerous weapon because of a person’s actual or perceived race and color.

According to evidence presented at trial, Hougen confronted a 29-year-old Black man who was crossing a street in Santa Cruz. Hougen took out a nine-inch knife and swiped multiple times at the man’s head, chest, and stomach, while yelling racial slurs at him. At the time of the attack, Hougen was on probation after pleading no contest to state charges that he committed a racially motivated assault on a different Black man in 2018.

“The Justice Department will continue to vigorously prosecute bias-motivated crimes like this one in an effort to secure justice for victims of these crimes and the communities they are meant to target and intimidate,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division.

“Strict enforcement of laws prohibiting the targeting of vulnerable groups is essential to the proper functioning of our democratic society,” said Acting U.S. Attorney Stephanie Hinds for the Northern District of California. “This office is one of the four U.S. Attorney’s offices throughout the country chosen by the Attorney General to work with other Justice Department components to review our structure of anti-hate law enforcement and make recommendations to improve the system. This is just another indication that this office is committed to ensuring the thoughtful deployment of resources to address hate crimes and unlawful discrimination.”

“The FBI worked closely with the Santa Cruz Police Department to bring justice for this shocking, horrific attack,” said Special Agent in Charge Craig Fair of the FBI San Francisco Field Office. “The FBI will use all authority granted to us by federal law to investigate hate crimes meant to threaten and intimidate an entire community. Acts of hate and racism have no place here and will not be tolerated. I urge members of our community to report any hate incidents to local or federal law enforcement so we can bring offenders to justice.” 

Hougen is scheduled to be sentenced on July 26 and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant U.S. Attorney Marissa Harris and Trial Attorney Michael J. Songer of the Civil Rights Division are prosecuting the case on behalf of the government. The FBI San Francisco Field Office conducted the investigation with the assistance of the Santa Cruz Police Department.

The verdict comes on the heels of a decision by U.S. Attorney General Merrick Garland to conduct a 30-day review of the department’s enforcement efforts to address hate-based violence and discrimination. The working group was assembled to make recommendations for improving hate crime and unlawful discrimination investigations and prosecutions. Additional information regarding the Attorney General’s working group can be obtained here. 

For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes. If you believe you have been a victim of a civil rights violation, please visit: https://civilrights.justice.gov/ to file a report.

ALBUQUERQUE, N.M. – Joshua Gutierrez, 22, an enrolled member of the Navajo Nation, was sentenced April 7 in federal court to 12 years in prison for voluntary manslaughter involving the use of a firearm in Indian Country.

            Gutierrez pleaded guilty Oct. 15, 2020.  According to the plea agreement and other court documents, on March 29, 2020, while visiting the home of his girlfriend and her father, Gutierrez was awakened by an argument. He armed himself with a handgun, walked toward the room where the argument was taking place, and passed one of the men involved in the argument. As they passed each other, the man swung at Gutierrez, and Gutierrez shot the man in the chest, killing him. Gutierrez then pointed the gun at two other people and threatened to shoot them if they did not leave. The incident took place in To’hajiilee, New Mexico, on the Navajo Nation. In his plea, Gutierrez waived any claim of self-defense.

            Upon his release from prison, Gutierrez will be subject to three years of supervised release.

            The FBI investigated this case with assistance from Navajo Nation Police Department and the Navajo Nation Department of Criminal Investigation.  Assistant U.S. Attorney Allison Jaros prosecuted the case.

As tax filing season continues, the Department of Justice's Tax Division reminds taxpayers to pay careful attention to their reporting and filing obligations and to timely pay all taxes due. Willfully filing false tax returns or deliberately evading paying taxes are serious criminal offenses.

“Our criminal prosecutors are prepared for tax filing season too,” said Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Tax Division. “Honest, law abiding taxpayers should know that the Tax Division is aggressively using its resources and expertise to identify, investigate, and prosecute those attempting to defraud and obstruct the IRS.”

Throughout the past year, the Tax Division, in collaboration with U.S. Attorney’s Offices, other  Justice Department litigating offices and the IRS, has investigated and prosecuted a broad array of tax offenses from businesses and white-collar professionals underreporting income to employment tax fraud to identity theft. Enforcement efforts are continually ongoing. Here are a few recent examples:

Prosecution of Business Owners

• On Dec. 1, 2020, a New York City restaurateur was sentenced to 24 months in prison for tax evasion. Adel Kellel, the owner of Raffles Bistro, diverted business income for personal expenses, including rent for a high-end Manhattan apartment, college tuition payments for his children, and purchases from luxury retailers. As part of his sentence, Kellel was ordered to pay $613,478 to the IRS.
• On Oct. 20, 2020, two biofuel company owners were sentenced to prison for conspiracy to defraud the IRS and preparing a false tax claim, among other offenses. Ben Wootton, 55 of Savannah, Georgia, was sentenced to 70 months and Race Miner, 51, of Marco Island, Florida, was sentenced to 66 months, after a jury convicted both defendants and their company, Keystone Biofuels Inc., in April 2019.

Prosecution of White-Collar Professionals & Individuals

• On Dec. 21, 2020, two Atlanta-area tax professionals pleaded guilty to promoting a syndicated conservation easement tax scheme involving more than $1.2 billion in fraudulent charitable deductions. Stein Agee of Canton, Georgia, and Corey Agee of Atlanta, Georgia, are currently awaiting sentencing for their role in the scheme.
• On Nov. 2, 2020, a New Jersey man was sentenced to 78 months in prison for conspiring to defraud the United States, filing false claims, and obstructing the internal revenue laws, following his conviction at trial. According to evidence presented at trial, between 2015 and 2016, Kenneth Crawford Jr. and his co-conspirators promoted and sold a “mortgage recovery” tax fraud scheme in which they obtained fraudulent refunds from the IRS for their clients. As a result of Crawford’s scheme, more than $2.5 million in fraudulent refunds were sought from the IRS.
• On Aug. 21, 2020, a North Carolina risk consultant pleaded guilty to filing a false tax return and illegally possessing a firearm. From 2011 through 2017, Charles Atkins underreported income from several risk consulting businesses, causing a tax loss of more than $800,000 to the IRS. Atkins is currently awaiting sentencing.

Employment Tax Prosecutions

• On April 7, 2021, the manager of the San Diego Home Cooking restaurant chain was sentenced to 30 months in prison for employment tax fraud. According to court records, from the last quarter of 2014 through 2017, Aleksandar Sreckovic did not file employment tax returns nor pay employment taxes for San Diego Home Cooking, causing a tax loss of over $1.5 million. Instead of paying employment taxes, Sreckovic paid other creditors and his own personal expenses.
• On March 24, 2021, A Montana businessman pleaded guilty today to employment tax fraud. According to court documents, Thomas O’Connell owned and operated three plumbing businesses, Quality Plumbing and Heating, Orbit Plumbing and Heating, and Orbit PHC, each based in Great Falls. From at least 2005 through 2016, O’Connell did not pay employment taxes for several quarters, despite being obligated to ensure such taxes were paid to the IRS. Instead, he directed payments to other creditors and to his own personal expenses. The total tax loss to the IRS from O’Connell’s conduct is more than $550,000.

Identity Theft Prosecutions

• On Oct. 7, 2020, a Las Vegas, Nevada, man was sentenced to 70 months in prison for mail and wire fraud conspiracy, following his jury trial convictions. The trial evidence proved that from January 2009 through April 2011, Terry Williamson and his co-conspirators filed false tax returns with the IRS to fraudulently obtain tax refunds. To facilitate the fraud, they used the names and social security numbers of deceased taxpayers. More than 480 fraudulent tax refund checks totaling almost $2 million were deposited into Williamson’s account.

More information about the Tax Division’s enforcement efforts in these and other areas can be found on the division’s website.

The Justice Department today moved to intervene in a disability discrimination lawsuit that private plaintiffs with visual disabilities brought against the City of Chicago under the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act (Section 504). The department’s proposed complaint alleges that the city fails to provide people who are blind, have low vision, or are deaf-blind with equal access to pedestrian signal information at intersections. Pedestrian signal information, such as a flashing “Walk/Don’t Walk” signal, indicates when it is safe to cross the street. 

Accessible pedestrian signals (APSs) are devices that provide pedestrians with safe-crossing information in a non-visual format, such as through audible tones, speech messages, and vibrotactile surfaces. Since at least 2006, Chicago has recognized the need to install APSs for pedestrians with visual disabilities. Yet, while Chicago currently provides sighted pedestrians visual crossing signals at nearly 2,700 intersections, it has installed APSs at only 15 of those intersections. The proposed suit alleges that the lack of APSs at over 99% of Chicago’s signalized intersections subjects people who are blind, have low vision, or are deaf-blind to added risks and burdens not faced by sighted pedestrians, including fear of injury or death. 

“The ADA and Section 504 require that individuals with disabilities have equal access to public services, including access to pedestrian crossing information that is critical for safety and for full participation in community life,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “Chicago has determined that safe-crossing information is necessary for sighted pedestrians to navigate throughout the city, and this suit seeks to ensure that the city provides the same benefit to people with visual disabilities.” 

“The U.S. Attorney’s Office is taking this action to ensure that Chicagoans with disabilities are provided equal access to city services, particularly those services whose purpose is public safety,” said U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois. “We are concerned about the serious lack of accessibility to safe intersection crossings for Chicagoans who are blind, have low vision, or are deaf-blind, and we are confident that our involvement in this important case will ultimately bring a meaningful resolution to the city and its millions of residents, daily commuters, and visitors.”

The motion and complaint seeking intervention were jointly filed by the Disability Rights Section of the department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Illinois. The case is being handled by Assistant U.S. Attorneys Patrick Johnson and Sarah J. North, and Trial Attorney Matthew Faiella. To read the motion to intervene, please click here: https://www.ada.gov/acbmc/acbmc_motion.html.

For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.  Members of the public may report possible civil rights violations at https://civilrights.justice.gov/report.

An indictment was unsealed Wednesday in Denver charging a Colorado man with stealing nearly $300,000 in government funds from three different COVID relief programs and with making false statements in connection with bankruptcy proceedings.

According to court documents, Francis F. Joseph, 56, of Highlands Ranch, allegedly transferred approximately $118,000 in COVID relief funding from a medical clinic’s account into his personal bank account, after which he spent the money on, among other things, travel and home improvements. The stolen funds came from two programs that were designed to aid medical providers during the COVID-19 pandemic — the Accelerated and Advance Payment Program and the Provider Relief Fund.

The Accelerated and Advance Payment Program provides necessary funds in national emergencies in order to accelerate cash flow to impacted Medicare providers. The Provider Relief Fund, through which $50 billion was allocated to providers for the coronavirus response, was part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, a federal law enacted March 29, 2020 and designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic.

Today’s indictment constitutes the nation’s second set of criminal charges related to the misuse of Provider Relief Fund moneys and the first time that charges have been brought in connection with fraud on the Accelerated and Advance Payment Program.

The indictment further alleges that following his termination from the clinic, Joseph applied for a $179,999 loan under the Paycheck Protection Program (PPP) on behalf of the medical practice, which he then directed into his personal bank account. Finally, the indictment alleges that Joseph filed for bankruptcy on behalf of (but unbeknownst to) the clinic following his termination and submitted documents containing materially false statements regarding his misappropriation of funds from the clinic in connection with that proceeding.

In April 2020, Congress authorized over $300 billion in additional PPP funding through the CARES Act. The PPP allows qualifying small business and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.

Joseph is charged with theft in connection with health care, theft of government property, wire fraud, and making a false statement in connection with a bankruptcy proceeding. Joseph is scheduled to make his initial court appearance on May 25 before U.S. Magistrate Judge S. Kato Crews of the U.S. District Court for the District of Colorado. If convicted, he faces maximum penalties of 10 years in prison for each theft count, 20 years for wire fraud, and five years for the bankruptcy proceeding false statement. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Curt Muller of the U.S. Department of Health and Human Services’ Office of Inspector General’s (HHS-OIG) Kansas City Region; and Special Agent in Charge Weston King of the U.S. Small Business Administration’s Office of Inspector General’s (SBA-OIG) Western Region made the announcement.

Trial Attorney Emily Gurskis of the Justice Department’s Fraud Section is prosecuting the case. 

This case was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which organizes efforts to address illegal activity involving health care programs during the pandemic. The Department of Justice also thanks the U.S. Attorney’s Office for the District of Colorado and the Colorado State Medicaid Fraud Control Unit for assistance they provided. 

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A New York woman pleaded guilty today to illegally removing and disposing of asbestos.

According to court documents, between 2015 and 2016, Stephanie Laskin, 45, of Newburgh, along with several others, conspired to illegally remove asbestos from a former IBM site in Kingston, now known as TechCity. The facility in question contained over 400,000 square feet of regulated asbestos-containing material (RACM), as well as an additional 6,000 linear feet of RACM pipe wrap.

Laskin, the owner of A2 Environmental Services (A2ES), who had special asbestos abatement training, hired numerous workers and supervisors to conduct the asbestos removal. She and her co-conspirators pressured these workers to expedite the removal of asbestos at the site to meet contract deadlines. In doing so, she led them to cut corners, violate their remediation training, and handle RACM in dangerous and illegal ways.

At times, she and other A2ES supervisors, including Gunay Yakup who pleaded guilty in March, instructed workers to remove RACM dry. Wetting is required by law and helps to prevent airborne asbestos fibers. When the workers questioned her, Laskin gave them the choice of following her directions or losing their jobs. This resulted in numerous violations of the Clean Air Act’s “work practice standards,” which address how asbestos can be stripped, bagged, removed, and disposed of with relative safety. Laskin is scheduled to be sentenced on July 27 and faces a maximum penalty of five years in prison.

“Defendant Laskin went into this project with her eyes open, planning to do it on the cheap,” said Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD). “But, that meant doing this project in knowing violation of the law and her supervisor training, placing others at risk of inhaling asbestos fibers. This criminal prosecution holds her accountable.”

Laskin admitted that she and her supervisors, workers, and other co-conspirators removed substantial amounts of RACM from the site in violation of the work-practice standards and were issued numerous notices of violation (NOVs) associated with dry removal, storing bulk quantities of RACM waste on-site in open containers, failing to properly contain work areas to avoid discharges of RACM to the outside air, sweeping dry RACM in ways that produced visible emissions, and conducting work outside containment and other dry removal abatement techniques. In light of the repeated violations, New York State Department of Labor (NYSDOL) inspectors issued “red tags” for the site on Aug.1, 2016, which stopped all work and ended Laskin’s company’s illegal abatement efforts.

The site was later deemed to be contaminated by the Environmental Protection Agency (EPA) and municipal authorities. Cleanup costs associated with asbestos contamination at the site are estimated to be in the millions. Asbestos has been determined to cause lung cancer, asbestosis, and mesothelioma, an invariably fatal disease. The EPA has determined that there is no safe level of exposure to asbestos.

Special agents of the EPA and individuals from the New York Departments of Labor and Environmental Conservation investigated the case. Todd W. Gleason and Gary N. Donner of ENRD’s Environmental Crimes Section prosecuted the case with the assistance of paralegal Chloe Harris.

A California restaurant chain manager was sentenced today to 30 months in prison for employment tax fraud.

According to court documents, Aleksandar Sreckovic, of San Diego, was a manager for San Diego Home Cooking, a restaurant group with over 110 employees and five restaurants in the San Diego area: Café 56 & Bar and Mission Valley Café & Bar in San Diego, Lake Murray Café in La Mesa, Lakeside Café in Lakeside, and Centre City Café in Escondido. Sreckovic had significant control over the finances of San Diego Home Cooking and had a duty to account for and pay employment taxes on behalf of the company’s employees to the IRS.

In November 2014, Sreckovic directed an outside payroll company to stop making employment tax payments to the IRS. From the last quarter of 2014 through the last quarter of 2017, Sreckovic did not file employment tax returns, nor did he pay employment taxes for San Diego Home Cooking. Instead, Sreckovic paid other creditors and his own personal expenses. In total, Sreckovic caused a tax loss of over $1.5 million.

In addition to the term of imprisonment, U.S. District Judge Cathy Ann Bencivengo ordered Sreckovic to serve one year of supervised release and to pay approximately $2.3 million in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Randy Grossman for the Southern District of California made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorney Matthew Hoffman of the Justice Department’s Tax Division and Assistant U.S. Attorney Andrew Galvin of the Southern District of California prosecuted the case.

A Maryland return preparer pleaded guilty today to conspiring to defraud the United States and to assisting in the preparation of a false tax return.

According to court documents and statements made in court, Lenore Worthy provided tax return preparation services in Temple Hills under several business names, including United Tax Services LLC. For the tax years 2012 through 2018, Worthy and her co-conspirators fraudulently inflated client refunds by adding false deductions and business losses. The IRS later expelled Worthy and United Tax Services from the IRS e-file program after Worthy prepared a false return for an undercover IRS agent. Worthy then began using another co-conspirator’s e-filing credentials in order to continue preparing clients’ returns. In total, Worthy caused a tax loss to the IRS of $189,748.

Worthy is scheduled to be sentenced on Aug. 20, 2021, and faces a maximum penalty of eight years in prison. Worthy also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland made the announcement.

The IRS-Criminal Investigation is investigating the case.

Trial Attorney Kathryn Sparks of the Justice Department’s Tax Division and Assistant U.S. Attorney Leah Grossi of the U.S. Attorney’s Office for the District of Maryland are prosecuting the case.

A Washington state man pleaded guilty today to federal hate crime and conspiracy charges in the U.S. District Court for the Western District of Washington.

Cameron Shea, 25, a leader of the neo-Nazi group Atomwaffen Division, pled guilty to federal conspiracy and hate crime charges for threatening journalists and advocates who worked to expose anti-Semitism. 

Shea pleaded guilty to one count of conspiring to commit three offenses against the United States: interference with federally-protected activities because of religion; mailing threatening communications; and cyberstalking. He also pleaded guilty to one count of interfering with a federally protected activity because of religion.

Shea and three co-defendants were charged with conspiring via an encrypted online chat group to identify journalists and advocates they wanted to threaten in retaliation for the victims’ work exposing anti-Semitism. The group focused primarily on those who are Jewish or journalists of color. The group created posters, which featured Nazi symbols, masked figures with guns and Molotov cocktails, and threatening messages, to deliver or mail to the journalists or advocates the group targeted. Shea messaged the group that he wanted Atomwaffen members in different locations to place posters on their victims’ homes on the same night to catch journalists off guard and accomplish a “show of force.” The posters were delivered to victims in Tampa, Seattle, and Phoenix. Shea mailed posters to several victims, including a poster sent to an official at the Anti-Defamation League (ADL) that depicted a Grim Reaper-like figure wearing a skeleton mask holding a Molotov cocktail outside a residence, with the text “Our Patience Has Its Limits . . . You have been visited by your local Nazis.” Two of Shea’s co-defendants, Ashley Parker-Dipeppe and Johnny Roman Garza, previously pled guilty to the conspiracy charge and were sentenced. The fourth co-defendant, Kaleb Cole, pled not guilty and is awaiting trial.

Shea will be sentenced on June 28. He faces a maximum penalty of 10 years in prison for the hate crime charge and five years for the conspiracy charge.

The case is being investigated by the FBI’s Joint Terrorism Task Forces in Tampa, Seattle, Houston, and Phoenix with assistance from National Security Division Counterterrorism Section Trial Attorney David Smith and the Seattle Police Department.

The case is being prosecuted by Trial Attorney Michael J. Songer of the Justice Department’s Civil Rights Division and by Assistant U.S. Attorney Thomas Woods of the Western District of Washington with assistance from the U.S. Attorneys’ Offices in the Middle District of Florida, Southern District of Texas, District of Arizona, and Central District of California.

As U.S. Attorney General Merrick Garland recently stated: “[The Justice Department] will persist in our efforts to investigate and appropriately prosecute those who attack members of our communities, set fire to places of worship, or use the Internet to threaten bodily injury to other persons because of their real or perceived protected characteristics.”

For more information on the department’s commitment to serving the cause of justice and protecting the safety of all of our communities, please see: . For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes. If you believe you have been a victim of a civil rights violation, please visit https://civilrights.justice.gov/ to file a report.