District Not Recorded

Today, the Department of Justice announced Standards for Certification that will be used by credentialing bodies so they can begin certifying thousands of law enforcement agencies over the next three months. The Standards of Certification are a result of President Trump’s June Executive Order 13929, Safe Policing for Safe Communities.

 “The fundamental responsibility of government is to keep its citizens safe and today’s action to certify thousands of law enforcement agencies around the country will further enable us to do just that,” said Attorney General William P. Barr. “President Trump’s Executive Order on Safe Policing for Safe Communities affirms this administration’s commitment to protecting the American people. Furthermore, everyone loses when trust erodes between the community and law enforcement. That is why the Department of Justice has worked tirelessly to implement the President’s Executive Order in order to improve accountability, build trust, and ensure the safety of the public as well as members of law enforcement who risk their lives every day.”  

Executive Order 13929 requires that all state, local, and university law enforcement agencies be certified by independent credentialing agencies. The President’s Order requires agencies to meet two standards in order to be successfully credentialed: 1) that the agency’s use of force policies prohibit chokeholds, except in situations where the use of deadly force is allowed by law; and 2) that the agency’s use of force policies adhere to all applicable federal, state, and local laws.

Over the next 90 days, at least 3,000 law enforcement agencies will be certified by independent credentialing agencies. These agencies will conduct independent reviews of law enforcement policies and procedures, which, in turn, will ensure accountability, enhance citizen confidence and trust in law enforcement, and help correct internal issues before they result in injury to the public or to law enforcement officers.

The Department’s certification standards encourage an independent assessment of law enforcement policies and procedures, such as: 1) training protocols on use of force; 2) training protocols on de-escalation; 3) the scope of an officer’s duty and obligation to intervene in order to prevent excessive force by another officer; 4) when and how an officer should provide appropriate medical care; 5) officers identifying themselves as law enforcement and giving verbal warning of their intent to use deadly force; and 6) shooting at or from a moving vehicle. Additionally, law enforcement agencies are encouraged to implement early intervention systems to promote officer wellness and to identify officers who may be at risk of violating use of force policies, policies and procedures to help them recruit and promote the best and brightest, and community engagement plans to address each community’s specific needs.

Since the Executive Order was announced in June, the major stakeholders in law enforcement have been kept apprised of the implementation process, have reviewed the Safe Principles document, and many have endorsed their adoption. These principles provide for more accountability, transparency, and community engagement and will foster community trust, all critical elements in keeping both the public and law enforcement officers safe.

To learn more about Executive Order 13929, please see the interview with Assistant to the President Ja’Ron Smith and Attorney General William P. Barr.

Today, the Department of Justice announced Standards for Certification that will be used by credentialing bodies so they can begin certifying thousands of law enforcement agencies over the next three months. The Standards of Certification are a result of President Trump’s June Executive Order 13929, Safe Policing for Safe Communities.

 “The fundamental responsibility of government is to keep its citizens safe and today’s action to certify thousands of law enforcement agencies around the country will further enable us to do just that,” said Attorney General William P. Barr. “President Trump’s Executive Order on Safe Policing for Safe Communities affirms this administration’s commitment to protecting the American people. Furthermore, everyone loses when trust erodes between the community and law enforcement. That is why the Department of Justice has worked tirelessly to implement the President’s Executive Order in order to improve accountability, build trust, and ensure the safety of the public as well as members of law enforcement who risk their lives every day.”  

Executive Order 13929 requires that all state, local, and university law enforcement agencies be certified by independent credentialing agencies. The President’s Order requires agencies to meet two standards in order to be successfully credentialed: 1) that the agency’s use of force policies prohibit chokeholds, except in situations where the use of deadly force is allowed by law; and 2) that the agency’s use of force policies adhere to all applicable federal, state, and local laws.

Over the next 90 days, at least 3,000 law enforcement agencies will be certified by independent credentialing agencies. These agencies will conduct independent reviews of law enforcement policies and procedures, which, in turn, will ensure accountability, enhance citizen confidence and trust in law enforcement, and help correct internal issues before they result in injury to the public or to law enforcement officers.

The Department’s certification standards encourage an independent assessment of law enforcement policies and procedures, such as: 1) training protocols on use of force; 2) training protocols on de-escalation; 3) the scope of an officer’s duty and obligation to intervene in order to prevent excessive force by another officer; 4) when and how an officer should provide appropriate medical care; 5) officers identifying themselves as law enforcement and giving verbal warning of their intent to use deadly force; and 6) shooting at or from a moving vehicle. Additionally, law enforcement agencies are encouraged to implement early intervention systems to promote officer wellness and to identify officers who may be at risk of violating use of force policies, policies and procedures to help them recruit and promote the best and brightest, and community engagement plans to address each community’s specific needs.

Since the Executive Order was announced in June, the major stakeholders in law enforcement have been kept apprised of the implementation process, have reviewed the Safe Principles document, and many have endorsed their adoption. These principles provide for more accountability, transparency, and community engagement and will foster community trust, all critical elements in keeping both the public and law enforcement officers safe.

To learn more about Executive Order 13929, please see the interview with Assistant to the President Ja’Ron Smith and Attorney General William P. Barr.

Assistant Attorney General for Civil Rights Eric Dreiband issued the following statement today commemorating the twentieth anniversary of the Trafficking Victims Protection Act:

Twenty years ago, on Oct. 28, 2000, Congress enacted the Trafficking Victims Protection Act (TVPA), condemning human trafficking as a “contemporary manifestation of slavery” that is “abhorrent” to our ideals of freedom, human dignity, and unalienable rights.

On Oct. 19, 2020, I was pleased to participate in the President’s Interagency Task Force to Monitor and Combat Trafficking in Persons. During that meeting, 20 agency officials across the federal government, including the Department of Justice, explained how the federal government is combatting the modern-day slavery of human trafficking.

Even after the Thirteenth Amendment abolished state-sanctioned slavery in 1865, many ostensibly free citizens endured racial violence, abuses of authority, and conditions of involuntary servitude that both perpetuated badges and incidents of slavery for generations to come and violated the Thirteenth Amendment.  

Since its founding in 1957, the Civil Rights Division has fought to uphold guarantees of individual rights, freedom, and equality for all, including the prohibitions against involuntary servitude and slavery that the division vigorously enforced for decades before passage of the TVPA.

Accordingly, when the TVPA extended the reach of these involuntary servitude statutes and established vital victim protections and detection partnerships, the Civil Rights Division answered this call to action and led rapidly expanding nationwide anti-trafficking efforts. 

Before the TVPA, the Civil Rights Division and U.S. Attorney’s Offices charged, on average, fewer than four involuntary servitude cases a year, totaling 18 such cases over the five preceding years. The TVPA’s expanded criminal prohibitions, victim protections, and proactive detection programs sparked a surge in trafficking cases that rapidly intensified the need for specialized anti-trafficking expertise to guide increasingly complex cases. 

The Department of Justice again answered the call by creating its specialized Human Trafficking Prosecution Unit within the Criminal Section of the Civil Rights Division. The Human Trafficking Prosecution Unit is known as the “HTPU” and it consolidated the department’s anti-trafficking expertise. The HTPU leads the department’s nationwide enforcement efforts, guides the development of novel, complex, multi-jurisdictional, and international trafficking cases, and strengthened strategic partnerships.

Creation of this specialized Unit has proven vital to the department’s unprecedented anti-trafficking achievements since passage of the TVPA.  In the six years after HTPU’s inception, trafficking cases involving forced labor, sex trafficking of adults, and transnational trafficking rose over 115 percent, as convictions in such cases rose 83 percent. Since HTPU’s formation in 2007, HTPU and U.S. Attorney’s Offices have brought 945 such cases against 2,048 defendants, securing 1,747 convictions. In the two decades since passage of the TVPA, the department has initiated 1,069 such cases against 2,408 defendants and secured 1,986 convictions, all in addition to impressive numbers of child sex trafficking cases brought by the Criminal Division and U.S. Attorney’s Offices. 

These cases have vindicated the rights of thousands of victims. A few examples illustrate the point:  victims whose rights the department vindicated include a young West African girl held in domestic servitude for over sixteen years; an African-American man with an intellectual disability who was compelled into forced labor in a restaurant, without pay, through verbal abuse, racial epithets, and brutal assaults; and Guatemalan young men and boys who traffickers lured on false promises, then forced, under threats of harm to their families, to perform agricultural labor in grueling conditions for minimal pay. Our prosecutions also restored the lives of young women from large U.S. cities, small suburbs, rural communities, and tribal areas who criminal traffickers coerced into commercial sex by manipulating the victims’ dependence on addictive drugs.

HTPU has launched groundbreaking interagency enforcement initiatives that produced dozens of complex, high-impact cases to dismantle notorious transnational trafficking enterprises.

The Anti-Trafficking Coordination Team (ACTeam) Initiative has markedly increased trafficking prosecutions in participating districts, while the U.S.-Mexico Bilateral Human Trafficking Enforcement Initiative has resulted in over 270 U.S. convictions, and dozens of related Mexican state and federal prosecutions, against brutal sex trafficking enterprises that compelled hundreds of vulnerable victims into prostitution. 

HTPU has further accelerated nationwide anti-trafficking efforts by disseminating specialized expertise, training, and strategic guidance to thousands of anti-trafficking partners each year, strengthening victim-centered, trauma-informed strategies, chairing the INTERPOL Human Trafficking Experts Group, and advancing departmental anti-trafficking policy priorities.

While we proudly celebrate these achievements, we humbly redouble our resolve to tackle the challenges ahead. We are increasingly leveraging technology-enhanced, intelligence-driven targeting and analytics to combat trafficking threats involving encrypted communications, cryptocurrency, and dark web platforms. We are expanding cross-disciplinary partnerships with experts in countering related money laundering, transnational organized crime, narcotics, human rights, immigration, and labor violations. And we are increasingly incorporating the expertise of survivors themselves to make our anti-trafficking strategies more effective than ever before.

On this twentieth anniversary of the TVPA, we recommit to our mission of eradicating human trafficking and modern-day slavery, and we renew our unflagging resolve to work tirelessly to deliver on the promises of unalienable rights, fundamental freedoms, and human dignity for all.

Deputy Attorney General Jeffrey A. Rosen issued the following statement:

"Today marks the 20th Anniversary of the enactment of the Trafficking Victims Protection Act of 2000.  This landmark law criminalized sex trafficking and forced labor, created systems to protect victims of this crime at home and around the world, and created prevention programs.  The Department of Justice was given sole authority to prosecute these new federal crimes.  It is important to look back at the coordinated efforts that produced the TVPA – a collaboration of survivors, civil society advocates from faith-based groups and across the political spectrum, and policymakers.  That same spirit of collaboration will allow the Department and its federal, state, local and tribal law enforcement partners to redouble its efforts in bringing the fight to human trafficking.  The President’s National Action Plan to Combat Human Trafficking, released last week, will help us reach our goal, which is nothing less than to end human trafficking once and for all."

ST. LOUIS, MO – United States District Court Judge Rodney W. Sippel sentenced today Angela K. Williams, M.D to three years’ probation, $745 in restitution to Medicare and Medicaid and 100 hours community service today. The 34-year-old Brentwood, Missouri resident pleaded guilty, in January, to fraudulently obtaining oxycodone.

According to the plea agreement, Dr. Williams wanted to obtain prescription drugs containing controlled substances for her own personal use outside the bounds of professional medical practice and not for legitimate medical purposes.  Accordingly, Dr. Williams used her own prescription pad to write and sign numerous prescriptions for controlled substances using other persons’ names, including prescriptions for the narcotic opioid pain relief drugs hydrocodone and oxycodone.  Dr. Williams then went to pharmacies and posing as a patient presented the prescriptions for the drugs.  Dr. Williams also fraudulently used another doctor’s prescription pad, name, and Drug Enforcement Administration number to write herself additional controlled substance prescriptions.  

The Drug Enforcement Administration, Florissant Police Department, Town and Country Police Department, St. John Police Department, Bureau of Narcotic and Dangerous Drugs of the Missouri Department of Health & Senior Services, Medicaid Fraud Control Unit of the Missouri Attorney General’s Office and the St. Louis County Prosecuting Attorney’s Office investigated the case. 

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Guild Mortgage Company has agreed to pay the United States $24.9 million to resolve allegations that it violated the False Claims Act by knowingly breaching material program requirements when it originated and underwrote mortgages insured by the Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA), the Department of Justice announced today.  Guild Mortgage Company is headquartered in San Diego, California, with branches across the United States.

“Ensuring the integrity of federal lending programs is important to keeping those programs financially sound,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division.  “Together with our partners at HUD, we have worked hard to hold accountable FHA lenders that knowingly and materially violate program requirements that help Americans achieve the dream of home ownership.”

“The United States is committed to providing Americans opportunities to own their own homes,” said Acting U.S. Attorney for the District of Columbia Michael R. Sherwin.  “This settlement reflects the diligent work of officials from the Department of Justice and HUD to ensure that the programs that provide those opportunities are operated with integrity and in accordance with requirements established by law.”

“As this settlement demonstrates, we are committed to holding mortgage lenders accountable when they choose to abuse the integrity of vital government programs that are designed to assist homeownership,” said U.S. Attorney Robert Brewer for the Southern District of California.  “We also commend the whistleblower for coming forward, exposing these wrongs, and working with the government investigative team.”

“The Federal Housing Administration insurance program is a critical tool that helps hardworking Americans achieve their dream of homeownership.  Any abuse of that program is unacceptable and the bad actors will be held accountable,” said Rae Oliver Davis, U.S. HUD Inspector General.  “This case highlights the effectiveness and the importance of whistleblower programs.” 

Participants in the FHA mortgage insurance program are authorized to originate and underwrite mortgages without first having the government review the loans for compliance with the agency’s underwriting and origination requirements.  If an FHA-insured loan defaults, the holder of the loan can then recover from the United States for certain losses.  Lenders must follow FHA rules to ensure that only mortgages that meet critical credit and underwriting criteria are insured by the government. 

The settlement announced today resolves allegations that Guild Mortgage Company knowingly approved materially ineligible loans that later defaulted and resulted in claims to FHA for mortgage insurance, failed to comply with material program rules that require lenders to maintain quality control programs to prevent and correct underwriting deficiencies, and failed to self-report materially deficient loans that it identified.

The agreement resolves allegations brought by the former head of quality control at Guild Mortgage Company, Kevin Dougherty, under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  The Act permits the United States to intervene in such a lawsuit, as it did in part here.  Dougherty will receive $4,980,000 as his share of the government’s recovery.

The investigation, litigation, and settlement were the result of a coordinated effort among the Commercial Litigation Branch of the Department of Justice’s Civil Division, the U.S. Attorneys’ Offices for the District of Columbia and the Southern District of California, HUD, and HUD-OIG. 

The qui tam case is captioned United States ex rel. Dougherty v. Guild Mortgage Company, Civ. A. No. 16-2909 (S.D. Cal.). 

The claims asserted against the defendant are allegations only, and there has been no determination of liability.

A complaint and arrest warrants were unsealed today in federal court in Brooklyn charging eight defendants with conspiring to act in the United States as illegal agents of the People’s Republic of China (PRC).  Six defendants also face related charges of conspiring to commit interstate and international stalking.  The defendants, allegedly acting at the direction and under the control of PRC government officials, conducted surveillance of and engaged in a campaign to harass, stalk, and coerce certain residents of the United States to return to the PRC as part of a global, concerted, and extralegal repatriation effort known as “Operation Fox Hunt.” 

Zhu Yong, Hongru Jin, and Michael McMahon were arrested today and will be arraigned this afternoon via teleconference before U.S. Magistrate Judge Peggy Kuo.  Rong Jing and Zheng Congying were arrested in the Central District of California, and their initial appearances will take place in that district later today.  Zhu Feng, Hu Ji, and Li Minjun remain at large.

“With today’s charges, we have turned the PRC’s Operation Fox Hunt on its head — the hunters became the hunted, the pursuers the pursued,” said Assistant Attorney General for National Security John C. Demers.  “The five defendants the FBI arrested this morning on these charges of illegally doing the bidding of the Chinese government here in the United States now face the prospect of prison.  For those charged in China and others engaged in this type of conduct, our message is clear: stay out.  This behavior is not welcome here.”

“The Chinese government’s brazen attempts to surveil, threaten, and harass our own citizens and lawful permanent residents, while on American soil, are part of China’s diverse campaign of theft and malign influence in our country and around the world,” said FBI Director Christopher Wray.  “The FBI will use all of its tools to investigate and defeat these outrageous actions by the Chinese government, which are an affront to America's ideals of freedom, human rights, and the rule of law.”

“As alleged, the defendants assisted PRC officials in a scheme to coerce targeted individuals to return to the PRC against their will,” said Acting U.S. Attorney Seth D. DuCharme.  “The United States will not tolerate the conduct of PRC carrying out state-authorized actions on U.S. soil without notice to, and coordination with, the appropriate U.S. authorities.  Nor will we tolerate the unlawful harassment and stalking of U.S. residents to further PRC objectives.”  Acting U.S. Attorney DuCharme also extended his thanks and appreciation to the FBI’s Los Angeles Field Office for their work on the case.

“Today’s announcement of these charges further highlights the FBI’s ongoing and aggressive commitment to investigate China’s efforts to illegally impose its will in the United States”, said Special Agent in Charge George M. Crouch Jr. of the FBI Newark Field Office.  “This case should serve as a reminder to the People’s Republic of China that when it directs criminal activity within our borders, the FBI and its law enforcement partners will make sure the perpetrators are held accountable.”

“The worldwide presence and investigative capabilities of the Diplomatic Security Service enables us to work with our law enforcement partners domestically and around the world to bring criminals to justice,” said Keith Byrne, Special Agent in Charge of the New York Field Office of the Diplomatic Security Service.

According to the complaint, the defendants participated in an international campaign to threaten, harass, surveil and intimidate John Doe-1, a resident of New Jersey, and his family in order to force them to return to the PRC as part of an international effort by the PRC government known within the PRC as “Operation Fox Hunt” and “Operation Skynet.”  In furtherance of the operation, the PRC government targets Chinese individuals living in foreign countries that the PRC government alleges have committed crimes under PRC law and seeks to repatriate them to the PRC to face charges.  Rather than rely upon proper forms of international law enforcement cooperation, such as Interpol “red notices” and requests for information through appropriate governmental channels, the defendants allegedly engaged in clandestine, unsanctioned, and illegal conduct within the United States and facilitated the travel of PRC government officials (PRC Officials) to U.S. soil in order to further carry out these illegal acts.  Between 2016 and 2019, multiple PRC Officials directed the defendants, and several others, to engage in efforts to coerce the victims to return to the PRC, which included the following:

Surveillance and Coercion

In April 2017, defendants Zhu Feng, Hu Ji, Li Minjun, Hongru Jin, Zhu Yong, and Michael McMahon, together with others, including the PRC Officials, allegedly participated in a scheme to bring John Doe-1’s elderly father from the PRC to the United States against the father’s will and to use the surprise arrival of his elderly father to threaten and attempt to coerce John Doe-1’s return to the PRC.  Zhu Feng, Hu Ji, and Zhu Yong worked with Michael McMahon, a private investigator, to gather intelligence about and locate John Doe-1 and his wife in the United States.  PRC Officials coerced the father of John Doe-1 to travel from the PRC to the New York area in the company of Li Minjun, a doctor, who traveled with the elderly father from the PRC to the New York area.  Hongru Jin assisted with logistics of the operation when Zhu Feng, Li Minjun, John Doe-1’s elderly father, and other PRC officials arrived in the U.S.

As charged in the complaint, during this phase of the scheme, McMahon, whose task was to surveil John Doe-1’s father in order to locate John Doe-1 and his wife, suggested to Zhu Feng that they could “harass [John Doe-1].  Park outside his home and let him know we are there.”  Later, Zhu Feng told McMahon, “[t]hey definitely grant u a nice trip if they can get [John Doe-1] back to China haha.”

The conspirators also discussed the false statements John Doe-1’s father should make to U.S. immigration authorities about the purpose of his travel to the United States.  The conspirators also made efforts to destroy evidence and delete their electronic communications to avoid detection by U.S. law enforcement.

Targeting and Harassment of Victims’ Daughter

Between May 2017 and July 2018, Rong Jing and several co-conspirators allegedly targeted John Doe-1’s adult daughter for surveillance and online harassment.  Specifically, Rong Jing attempted to hire a private investigator to locate John Doe-1’s adult daughter in order to photograph and video record the daughter as part of a campaign to exert pressure on John Doe-1.  Around the same time, an unidentified co-conspirator sent harassing messages over social media to John Doe-1’s daughter and her friends related to the PRC’s interest in repatriating John Doe-1.

Continued Harassment of Victims

In September 2018, Zheng Congying and another unidentified co-conspirator allegedly affixed a threatening note to the door of the John Doe-1’s residence stating, “If you are willing to go back to mainland and spend 10 years in prison, your wife and children will be all right.  That’s the end of this matter!”  Between February 2019 and April 2019, other co-conspirators caused unsolicited packages to be sent to John Doe-1’s residence.  These packages contained letters and a video with messages intended to coerce John Doe-1’s return to the PRC by threatening harm to family members still residing in the PRC.

The charges in the complaint are allegations, and the defendants are presumed innocent unless and until proven guilty.  If convicted of the charged conspiracy to act as an agent of the PRC, each of the eight defendants charged today faces a maximum sentence of five years in prison.  Defendants Zhu Feng, Hu Ji, Li Minjun, Michael McMahon, Rong Jing, and Zheng Congying also face an additional charge of conspiracy to commit interstate and international stalking, which carries a maximum sentence of five years in prison.

The government’s case is being handled by the Office’s National Security and Cybercrime Section.  Assistant U.S. Attorneys Craig R. Heeren and J. Matthew Haggans are in charge of the prosecution, with assistance from Trial Attorney Scott A. Claffee of the National Security Division’s Counterintelligence and Export Control Section.

 

 

 

 

A Colorado resident was sentenced to 15 months in prison yesterday for his role in a biodiesel tax credit fraud scheme, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents and statements made in court, from 2010 to 2013, Calvin Glover and his coconspirators defrauded the United States of $7.2 million by filing false claims with the IRS for renewable fuel tax credits. Glover and his coconspirators formed a company, Shintan Inc. (Shintan), that purported to be in the business of producing renewable fuels. Glover and his coconspirators then submitted at least 22 claims to the IRS which falsely stated that Shintan had produced over seven million gallons of renewable fuel that qualified Shintan to receive refundable tax credits. Glover signed a number of false documents in support of these claims, even though he had no knowledge of Shintan ever producing any biodiesel or biodiesel mixtures.

For his role in the scheme, Glover received nearly $600,000 of the fraud proceeds, which he did not report on his individual tax returns.

On Aug. 8, 2020, Glover pleaded guilty to one count of conspiracy to defraud the United States.

In addition to the term of imprisonment imposed, U.S. District Judge Raymond P. Moore ordered Glover to serve three years of supervised release and to pay approximately $591,454 in restitution to the United States.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and Environmental Protection Agency-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sarah A. Kiewlicz and Stephen K. Moulton of the Tax Division, who prosecuted the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

The Department of Justice has announced that an interagency working group convened by Attorney General William P. Barr released a report to Congress on efforts to stop the scourge of illegal robocalls affecting the American public. The report − composed pursuant to the Telephone Robocall Abuse Criminal Enforcement and Deterrence Act (the TRACED Act) that President Trump signed into law in January 2020 − details the working group’s extensive work to end the harm caused by illegal robocalls, especially fraudulent robocalls that disproportionately affect elderly Americans, including through legal action, regulatory efforts, and private industry collaboration.

“The Department of Justice and its partners are committed to halting unlawful robocalls,” said Attorney General William P. Barr.  “As this report illustrates, we are working hand-in-hand with our federal and state partners to successfully halt the flow of robocalls domestically and abroad.  Americans should not have to put up with annoying and abusive robocalls, and the Department will continue to work to protect the American public, and particularly American seniors, from these illegal and harassing schemes.”

The report describes enforcement actions taken by the Department of Justice, including two civil actions filed in January 2020 against U.S.-based Voice over Internet Protocol (VoIP) companies.  The cases alleged that two sets of defendants engaged in wire fraud schemes by knowingly serving as “gateway carriers” for fraudulent robocalls from foreign customers targeting Americans, many of whom are elderly or otherwise vulnerable.  In both cases, the federal courts issued injunctions against the defendants, prohibiting them from carrying robocalls to U.S. consumers and selling U.S. phone numbers.  In the months following the department’s action in these cases, the number of robocalls that reached U.S. consumers sharply declined.

The report also describes how the Federal Trade Commission (FTC) is using all of the tools at its disposal to fight illegal calls, including filing an action jointly with the Ohio Attorney General in December 2019 against VoIP service provider Globex for providing the means to make allegedly illegal robocalls.  The action resulted in a settlement that requires Globex and its U.S.-based subsidiaries to pay $1.95 million and to abide by client screening and monitoring provisions.  According to the report, since the National Do Not Call Registry began accepting registrations in 2003, the FTC has brought almost 150 enforcement actions against more than 500 companies and more than 400 individuals, and the FTC has collected over $160 million in equitable monetary relief and civil penalties.

The report further describes the actions of the Federal Communications Commission (FCC) to combat illegal robocalls.  The actions include enforcement of laws that prohibit spoofing activities, which occur when a caller deliberately falsifies the information transmitted to caller ID displays to disguise the caller’s identity.  FCC actions also include a June 2020 Notice of Apparent Liability proposing a forfeiture of $225,000,000 against persons allegedly responsible for making, in the first quarter of 2019 alone, approximately one billion spoofed robocalls that transmitted prerecorded messages falsely claiming affiliation with a major health insurance company. 

The report highlights how the onset of the COVID-19 pandemic greatly increased the importance of the working group’s collaboration as illegal calls bombarded consumers with bogus coronavirus-related claims.  As a result, in March 2020, the Department of Justice, the FCC, the FTC, and other members increased joint efforts to identify and halt fraudulent robocall campaigns that exploited the health crisis.

The report notes the important role played by state attorneys general, who serve the public by tracking down illegal robocallers and violators of telemarketing laws, often based on alerts from the private telecommunications industry.  The report also highlights the important role that private industry groups can play in ending unlawful practices that negatively impact the American telecommunications infrastructure.

The Department of Justice’s work to combat robocalls falls within its broader efforts to combat elder fraud schemes, including those perpetrated by transnational criminal organizations.  As part of this work, the department conducts outreach around the country to educate seniors about the various types of elder fraud schemes.  With this information, seniors and other members of the public are better empowered to protect themselves and their loved ones.

If you or someone you know is 60-years-old or older and has been a victim of financial fraud, whether through robocalls or other schemes, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This hotline, managed by the Department of Justice’s Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step and can help authorities identify those who commit fraud and can increase the likelihood of recovering losses.  The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time.  English, Spanish, and other languages are available.

Today, the Department of Justice filed a petition in the U.S. District Court for the District of Massachusetts to enforce Bain & Company’s compliance with the department’s Civil Investigative Demand (CID).  

The department issued the CID to third-party Bain as part of its investigation of Visa, Inc.’s proposed acquisition of Plaid Inc.  As alleged in the petition, Bain, a consulting firm, has withheld important documents demanded under the CID, asserting unsupported claims of privilege over the documents, thereby stymying the Antitrust Division’s investigation. 

“American consumers rely on the Antitrust Division to investigate mergers promptly and thoroughly,”  said Assistant Attorney for the Antitrust Division Makan Delrahim.  “Collecting relevant third-party documents and data is essential to the division’s ability to analyze these transactions.  Too often, third parties seek to flout these requirements, hoping the division will lose interest and focus its enforcement efforts elsewhere.  The division’s petition against Bain is aimed at securing relevant documents and making clear that the division will hold third parties to the deadlines and specifications in the CIDs we issue.  Third parties, like Bain, must comply fully and expeditiously with our civil investigative demands and provide the documents and data we need to discharge our duties and serve the American people.” 

On June 11, 2020, the division issued Bain a CID requiring the company to answer interrogatories and produce documentary material, including documents that discuss Visa’s pricing strategy and competition against other debit card networks that may be important to the division’s analysis of the proposed acquisition’s effects.  The petition alleges that Bain has refused to produce these documents, claiming a seemingly blanket privilege over almost all of them.  

The division seeks to enforce the CID under Section 1314(a) of the Antitrust Civil Process Act.  Through filing the petition, the department seeks to enforce Bain’s CID compliance to support its investigation of Visa’s proposed acquisition of Plaid for the benefit of American consumers and competition.

Bain & Company, Inc. is a global management consultancy headquartered in Boston, Massachusetts.  Visa, Inc., a global payments company that operates the largest debit network in the United States, is incorporated in Delaware and headquartered in Foster City, California.  Plaid Inc. is a financial services company incorporated in Delaware and headquartered in San Francisco, California.

Five residents of Lima, Peru, were extradited to the United States and made their initial appearances in Miami federal court, where they stand accused of operating a large fraud and extortion scheme targeting Spanish-speaking consumers in the United States, the Department of Justice and U.S. Postal Inspection Service announced today.

“The Department of Justice’s Consumer Protection Branch will pursue and prosecute transnational criminals who defraud U.S. consumers, wherever they are,” said Acting Assistant Attorney General Jeffrey Bossert Clark.  “Criminals who defraud and threaten U.S. consumers by phone will not escape justice by placing their calls from abroad.  I thank the Republic of Peru for extraditing these individuals to face charges here in the United States.”  

“The U.S. Postal Inspection Service (USPIS) will not allow overseas criminal enterprises to illegally enrich themselves by using the mail to defraud consumers in the United States,” said USPIS Miami Division Inspector in Charge Antonio J. Gomez. “With the continued cooperation of foreign governments, these criminals will be aggressively pursued and brought to justice.”

Henrry Milla Campuzano, 36; Fernan Huerta Haro, 33; Evelyng Milla Campuzano, 35; Jerson Renteria Gonzales, 37; and Omar Cuzcano Marroquin, 32; all of Lima, Peru, face a 55-count indictment charging them with conspiracy, mail fraud, wire fraud, and extortion.  The indictment was filed in the U.S. District Court for the Southern District of Florida in June 2018 and unsealed upon the defendants’ extradition to the United States. 

According to the indictment, the defendants managed and operated a series of connected Peruvian call centers that used Internet-based telephone calls to contact Spanish-speaking consumers in the United States.  The call centers falsely told consumers they had won raffles for free products, including computer tablets with English-language courses.  Many consumer victims expressed interest in receiving the free products.  In later calls, those victims—many of whom were elderly — were told they were required to make large payments to receive the products.  When victims objected, the callers misrepresented that the victims had unlawfully failed to pay for or receive delivery of products. 

According to the indictment, the defendants and their employees falsely claimed to be lawyers, court officials, federal agents, and representatives of a supposed “minor crimes court.”  The defendants and their employees falsely told victims that they had a contractual obligation to pay for and receive products and had caused legal problems for themselves and others by allegedly failing to do so.  The indictment alleges that the callers also falsely threatened victims with court proceedings, negative marks on their credit reports, imprisonment, or immigration consequences if they did not immediately pay for the purportedly delivered products and settlement fees.  According to the indictment, many victims paid because of these baseless threats, and the defendants and their co-conspirators fraudulently collected over $3 million in victim payments. 

An indictment merely alleges that crimes have been committed.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The case is being prosecuted by Trial Attorney Phil Toomajian of the Department of Justice’s Civil Division, Consumer Protection Branch.  The USPIS investigated the case.  The Department of Justice's Criminal Division’s Office of International Affairs, the U.S. Attorney’s Office of the Southern District of Florida, the Diplomatic Security Service, and the Peruvian National Police provided critical assistance. 

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors.  In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities.  Later, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep.  The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. 

The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars senior lose to fraud schemes, including those perpetrated by transnational criminal organizations.  The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.

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

Watch the ceremony.

Read Judge Ginsburg's remarks.

The Antitrust Division of the Department of Justice today presented Judge Douglas H. Ginsburg with the John Sherman Award for his lifetime contributions to the development of antitrust law and the preservation of economic liberty.  The award is the Department of Justice’s highest antitrust honor. Assistant Attorney General Makan Delrahim presented the award and gave remarks celebrating Judge Ginsburg’s contributions during a ceremony displayed virtually and conducted at the Robert F. Kennedy Department of Justice Building.  Judge Ginsburg also delivered remarks in accepting the award.  

“I can think of no more deserving recipient for the Sherman Award than Judge Ginsburg,” said Assistant Attorney General Delrahim. “His career in public service and his scholarship have shaped the way that antitrust law is understood and practiced. We all are the beneficiaries of Judge Ginsburg’s brilliance, hard work, and dedication to public service.”

Created in 1994, the John Sherman Award is presented by the Justice Department's Antitrust Division to a person or persons for outstanding contributions to the field of antitrust law, the protection of American consumers, and the preservation of economic liberty.

Yesterday, Office of Justice Programs Principal Deputy Assistant Attorney General Katharine T. Sullivan and Office for Victims of Crime (OVC) Director Jessica E. Hart spoke to federal, state and local law enforcement leaders during a roundtable discussion focused on domestic violence. PDAAG Sullivan and Director Hart joined U.S. Attorney for the Western District of Pennsylvania Scott W. Brady for the discussion, which was followed by a roundtable with leadership from the Women’s Center and Shelter of Greater Pittsburgh. October is National Domestic Violence Awareness Month.

PDAAG Sullivan and Director Hart highlighted the incidence of domestic violence, the threats posed by domestic abusers to their partners and to law enforcement, and Department of Justice resources available to support victims. According to the Bureau of Justice Statistics’ National Crime Victimization Survey, Americans experienced more than 1.2 million domestic violence victimizations in 2019. Data from other sources suggest that lockdowns and stay-at-home orders have precipitated a rise in domestic violence hotline calls and more calls for service to police for domestic violence incidents.

PDAAG Sullivan emphasized the dangers these calls represent for law enforcement. “Officers who respond to domestic violence very often find themselves under attack, and some have lost their lives responding to these calls.”  She added, “In providing the safety, protection and support victims need, we realize you are putting your own lives at risk.”

Both described substantial investments made by the Department of Justice to address domestic violence. OVC recently awarded $1.8 billion to states to support victim compensation programs and thousands of local victim assistance programs. Victim assistance programs funded by OVC served more than seven million victims in 2019. Last week, OVC awarded a $1.5 million grant to the National Domestic Violent Hotline to expand its digital services and technology-based tools to assist victims.

At a press event held prior to the roundtable, PDAAG Sullivan and Director Hart announced $4 million in OVC funding to support the establishment or expansion of Sexual Assault Nurse Examiner, or SANE, programs on college and university campuses.

A Pemberton, New Jersey, man appeared in court yesterday on a federal grand jury indictment charging him with conspiring to defraud the United States, assisting in the filing of false tax returns, obstructing the internal revenue laws, and failing to file a tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division. The Sept. 2, 2020 indictment was unsealed following the court appearance.

According to the indictment, John W. Barry, Jr., conspired with individuals in Georgia, North Carolina, Virginia, and New York to promote a “mortgage recovery” tax fraud scheme in which they obtained for their clients tax refunds from the IRS based on fraudulent tax returns. Barry and his coconspirators allegedly represented to clients that they could extinguish their outstanding mortgage debts by filing forms with the IRS and then caused clients to file forms and tax returns that fraudulently claimed that a substantial amount of taxes had already been withheld from them. These false withholding claims allegedly caused the IRS to issue more than $3 million in refunds to clients. According to the indictment, Barry typically charged each client a fee of between 20 and 35 percent of the refund the client obtained, and then split those fees with his coconspirators. The indictment also charges that Barry did not file his own 2016 return, and thus did not report or pay any taxes on any income generated from his scheme. 

The indictment further alleges that when the IRS discovered the fraud and attempted to recover the wrongfully paid refunds, Barry took steps to obstruct the agency by: providing clients with fraudulent documents to send to the IRS, directing clients to conceal from the IRS his role in filing their false returns, and advising a client to remove funds from his bank account in order to thwart IRS collection efforts.

If convicted, Barry faces a maximum sentence of five years in prison for conspiracy, three years in prison for each false tax return count, three years in prison for obstructing the internal revenue laws, and one year in prison for failing to file a tax return. He also faces a period of supervised release, restitution, and monetary penalties. 

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant Chief John Kane and Trial Attorney Sean Green of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

The Department of Justice announced today that Waste Management, Inc. (WMI) will be required to divest 15 landfills, 37 transfer stations, 29 hauling locations, over 200 waste collection routes, and other assets in order to proceed with its $4.6 billion acquisition of Advanced Disposal Services, Inc. (ADS).  The department said that without the divestiture, the proposed acquisition would substantially lessen competition for small container commercial waste collection or municipal solid waste disposal services in over 50 local markets.

  The department’s Antitrust Division — along with five state Attorneys General — 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.  The participating state Attorneys General offices represent Florida, Illinois, Minnesota, Pennsylvania, and Wisconsin.

“Without divestitures, this merger would have harmed competition for essential waste collection and disposal services throughout the country,” said Assistant Attorney General Makan Delrahim.  “By requiring WMI and ADS to divest numerous facilities and assets in ten states, will ensure that businesses, municipalities, and towns continue to benefit from competition for these critical services.”

According to the complaint, WMI and ADS both supply small container commercial waste collection and municipal solid waste disposal services.  In each of the local markets alleged in the complaint, WMI and ADS compete vigorously against each other and are either the only two or two of only a few significant providers of one or both of these essential services.  The combination of the two companies would eliminate head-to-head competition between them and threaten the lower prices and better service that customers have realized from that competition. 

Under the terms of the proposed settlement, WMI and ADS must divest assets covering over 50 local markets including landfills, transfer stations, hauling locations, and waste collection routes to GFL Environmental Inc., or to an alternate acquirer approved by the United States.  GFL, based in Ontario, Canada, is a provider of small container commercial waste collection and MSW disposal in local markets in Canada and the Unites States.

WMI, a Delaware corporation, headquartered in Houston, Texas, had total revenues of over $15 billion in 2019. 

ADS, a Delaware corporation headquartered in Jacksonville, Florida, had total revenues of over $1.6 billion in 2019. 

As required by the Tunney Act, the proposed consent decree, 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 Department of Justice announced today that it is requiring Liberty Latin America Ltd. (Liberty), its subsidiary, Liberty Communications of Puerto Rico LLC (LCPR), and AT&T Inc. (AT&T) to divest certain fiber-based telecommunications assets and customer accounts in Puerto Rico, in order for Liberty to proceed with its proposed acquisition of AT&T’s wireline and wireless telecommunications operations in Puerto Rico and the U.S. Virgin Islands.  The department has approved WorldNet Telecommunications, Inc. (WorldNet) as the acquirer. 

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 merger.  At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the department’s complaint.

“The merger, as originally structured, would have eliminated competition for critical fiber-optic-based telecommunications services that businesses in Puerto Rico rely on every day,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “Today’s settlement will ensure that businesses throughout Puerto Rico continue to benefit from vigorous competition in the provision of these services.”

According to the department’s complaint, Liberty and AT&T are two of the three largest wireline telecommunications providers in Puerto Rico and own two of the three most extensive fiber-based network infrastructures on the island.  Liberty and AT&T each use their extensive network infrastructures to provide fiber-based connectivity and telecommunications services to enterprise customers, including businesses of all sizes as well as institutions, such as universities, hospitals, and government agencies.  The complaint alleges that competition between Liberty and AT&T has resulted in lower prices and higher-quality services for these customers.  According to the complaint, the combination of Liberty and AT&T would leave many customers with only one alternative and others with no competitive choice at all, likely resulting in increased prices and lower-quality services for enterprise customers across Puerto Rico. 

Under the terms of the proposed settlement, Liberty, LCPR, and AT&T must divest certain wireline telecommunications assets and customer accounts in Puerto Rico to WorldNet or to an alternative purchaser approved by the United States.  Specifically, the settlement requires the sale of (a) the fiber-based Columbus network in the metropolitan San Juan area that Liberty acquired as part of its purchase of Cable & Wireless Communications in 2016; (b) additional fiber assets, including fiber facilities and indefeasible rights of use, on Liberty’s network across the rest of the island; (c) retail fiber-based enterprise customer accounts served by Liberty today, with limited exceptions; (d) the right to pull fiber through Liberty’s conduit and attach fiber to Liberty’s telephone poles; and (e) an option to purchase segments of AT&T’s aerial fiber-based core network.  The divestiture will place WorldNet in the position to become a strong competitor in the provision of fiber-based connectivity and telecommunications services to enterprise customers throughout Puerto Rico.

Liberty, a Bermuda corporation with its headquarters in Hamilton, Bermuda, and executive offices in Denver, Colorado, is a leading telecommunications operator in Latin America and the Caribbean.  Liberty provides video services, internet access, and home telephony services to more than 6 million subscribers and mobile wireless services to approximately 3.6 million subscribers across this region.  Liberty generated approximately $3.9 billion in revenues in 2019.

LCPR, a Puerto Rico limited liability company with its headquarters in San Juan, Puerto Rico, is an indirect wholly owned subsidiary of Liberty.  LCPR is the largest cable company and a leading provider of fiber-based connectivity and telecommunications services in Puerto Rico.  LCPR operates more than 3,000 route miles of fiber-optic infrastructure in Puerto Rico and uses this infrastructure to provide fiber-based connectivity and telecommunications services to enterprise customers located throughout the island.

AT&T, a Delaware corporation headquartered in Dallas, Texas, is a leading provider of telecommunications, media, and technology services globally and one of the largest providers of telecommunications services to enterprise customers in the United States.  In Puerto Rico, AT&T provides fiber-based connectivity and telecommunications services to enterprise customers over fiber-optic infrastructure that spans over 3,500 route miles.  AT&T generated approximately $180 billion in revenues in 2019.

WorldNet, a Puerto Rico corporation with its headquarters in Guaynabo, Puerto Rico, is the largest locally owned telecommunications provider in Puerto Rico.  WorldNet provides a range of telecommunications services to enterprise and residential customers on the island.

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 Scott Scheele, Chief, Telecommunications and Broadband Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, 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 finding it is in the public interest.

A federal grand jury in Raleigh, North Carolina returned an indictment charging Contech Engineered Solutions LLC and Brent Brewbaker, a former executive at the company, for participating in long-standing conspiracies to rig bids and defraud the North Carolina Department of Transportation (NC DOT), the Department of Justice announced.

According to the six-count indictment filed in the U.S. District Court for the Eastern District of North Carolina, Contech and Brewbaker conspired to rig bids for aluminum structure projects funded by the United States and North Carolina Department of Transportation for nearly a decade.  These aluminum structure projects included headwalls and other structures that facilitate drainage underneath or around paved roads, bridges, and overpasses.  Contech and Brewbaker were also charged with defrauding the NC DOT by submitting bids that were falsely held out to be competitive and free of collusion, and using the U.S. Postal Service and email to carry out their scheme.

“The Antitrust Division continues to redouble our efforts to detect and prosecute those who cheat and steal from taxpayers through collusion and fraud in government procurement,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “The division will work with all of our law enforcement partners to ensure that the individuals and corporations that defraud government programs are held fully responsible for their actions and pay for the harm they cause.”

“Federal laws prohibiting bid rigging and collusion in the award of government contracts are designed to protect the taxpayers and to ensure that they get the best quality service at the most competitive pricing,” said U.S. Attorney Robert J. Higdon Jr. for the Eastern District of North Carolina.  “Here, the defendants are accused of having conspired to violate those laws and to deprive the people of North Carolina of both the best service and the best pricing.  Prosecution of these types of cases is critical to ensuring fairness and integrity in our public contract bidding system.”

“Activities related to collusion, bid rigging, and market allocation do not promote an environment conducive to open competition which harms the consumer,” said Director Steven Stuller, U.S. Postal Service (USPS) Office of Inspector General.  “The USPS spends hundreds of millions of dollars on new construction, maintenance, and renovation of USPS facilities.  Along with the Department of Justice and our federal law enforcement partners, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of harmful conduct.”

“Today’s indictment sends a clear message to those who engage in bid rigging and other criminal conduct that such actions will not be tolerated,” stated Jamie Mazzone, regional Special Agent-in-Charge of the United States Department of Transportation Office of Inspector General. “We remain steadfast in our commitment to working with our prosecutorial and law enforcement partners to protect the taxpayers’ investment in our nation’s transportation infrastructure from fraud, waste, and abuse.”

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The offense charged in Count One carries a statutory maximum penalty of 10 years in prison and a $1 million fine for individuals, and a criminal fine of $100 million for corporations.  The offenses charged in Counts Two, Three, Four, Five, and Six each carry a statutory maximum penalty of 20 years in prison and $250,000 fines, and a criminal fine of $500,000 for organizations.  The maximum fines for each count may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum fine. 

This case is the result of an ongoing federal antitrust investigation into bid rigging and other criminal conduct in the aluminum structures industry, which is being conducted by the Antitrust Division with the assistance of the USPS Inspector General, the U.S. Department of Transportation Office on Inspector General, and the U.S. Attorney’s Office for the Eastern District of North Carolina. 

In November 2019, the Department of Justice created the Procurement Collusion Strike Force, a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government — federal, state, and local.  To contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging, and other anticompetitive conduct related to the aluminum structures industry, go to https://www.justice.gov/procurement-collusion-strike-force.

ST. LOUIS, MO – United States District Judge E. Richard Webber accepted a plea today from Tara Sabatini. The 45-year-old St. Charles, Missouri resident pleaded guilty to one count of wire fraud.

According to the plea agreement and Indictment, Sabatini was employed as the “Senior Director of Sales” by a company located in St. Louis, Missouri that sold wholesale amounts of food to various commercial customers, typically grocery store chains. The company provided Ms. Sabatini with a company-funded corporate credit card, and authorized her to use the credit card for official business, including work travel and some client expenses. 

During 2017-18, Sabatini used her corporate credit card to fund personal expenses, including but not limited to purchasing luxury ticket packages from a Major League Baseball team located in New York. She frequently engaged in electronic communications with New York employees of the team for ticket purchase and delivery purposes.  After receiving these tickets, Sabatini attended some of the baseball games and also gave some of the tickets to her friends and family.  Sabatini further sold some of the baseball tickets through an Internet service and spent the proceeds of the ticket sales on her personal expenses.   

The charge of wire fraud carries a maximum penalty of no more than 20 years of imprisonment and a fine of no more than $250,000.  In determining the actual sentence, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

Judge Webber has set sentencing for January 21, 2021 at 10:00 a.m.            

The Federal Bureau of Investigation investigated the case.

#####

At a roundtable with law enforcement in Indianapolis today, Attorney General William P. Barr announced that the Department of Justice’s Office of Justice Programs (OJP) is making up to $5.3 million available in grants to support Operation Legend. Eight Legend cities - Kansas City, Mo., Albuquerque, Cleveland, Detroit, Memphis, Milwaukee, St. Louis, and Indianapolis – will be eligible for up to $500,000 in grant funding to support Real Time Crime Centers, which provide police with rapid intelligence and instant information to help identify emerging crime patterns. In addition, more than $1.3 million will fund special prosecutors who have been cross-designated to try federal firearms cases originating in Albuquerque, Memphis, St. Louis, and Kansas City, Mo.

“Keeping its citizens safe is the primary responsibility of government,” said Attorney General Barr. “Cities plagued by violent crime need the resources to tackle it, and these grant awards will help do that. On the enforcement side, Real Time Crime Centers will make policing more efficient and targeted; and on the prosecution side, Special Assistant U.S. Attorneys will help bring more federal firearms cases to justice.”

Real Time Crime Centers are a considerable financial investment for any law enforcement agency. The funding being made available to each Legend city can assist police departments in purchasing critical equipment and paying for the overtime to keep these centers staffed around the clock.

Grants to the New Mexico 13th Judicial District Attorney’s Office ($278,460); Jackson County, Missouri ($247,236); Tennessee’s 30th District Attorney General’s Office ($398,864); and the Missouri Attorney General’s Office ($397,020) will allow these four Operation Legend sites to hire full-time local prosecutors who will be empowered to try firearms cases in federal court. Prosecuting gun crimes is central to the Justice Department’s strategy under Operation Legend, a sustained, systematic and coordinated initiative in which federal law enforcement agencies work in conjunction with state and local officials to fight violent crime. Funding comes from the Bureau of Justice Assistance, a component of OJP.

“We are pleased to support the outstanding work being undertaken through Operation Legend to reduce violent crime by focusing on cases involving illegal firearms,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan. “The Office of Justice Programs is pleased to make these resources available to support the brave crime-fighters who work so hard to deter violence and keep our communities safe.”

The Department of Justice launched Operation Legend in July, following the murder of four-year-old LeGend Taliferro, who was shot and killed while he slept in his Kansas City home. The initiative was subsequently expanded from Kansas City to Albuquerque, Chicago, Cleveland, Detroit, Memphis, Milwaukee, St. Louis, and Indianapolis. Since the summer launch, officials in Operation Legend sites have made more than 5,500 arrests, including approximately 276 for homicide, and seized more than 2,000 firearms. Of the more than 5,500 individuals arrested, approximately 1,124 have been charged with federal offenses. More than 600 of those defendants have been charged with firearms offenses.

For more information on Operation Legend, please visit https://www.justice.gov/operationlegend. 

A Texas grand jury charged the former president of ice cream manufacturer Blue Bell Creameries L.P. with wire fraud and conspiracy in connection with an alleged scheme to cover up the company’s sales of Listeria-tainted ice cream in 2015, the Justice Department announced today. 

In an indictment filed in federal court in Austin, Texas, former Blue Bell president Paul Kruse was charged with seven counts of wire fraud and conspiracy to commit wire fraud related to his alleged efforts to conceal from customers what the company knew about Listeria contamination in certain Blue Bell products. According to the indictment, Texas state officials notified Blue Bell in February 2015 that two ice cream products from the company’s Brenham, Texas, factory tested positive for Listeria monocytogenes, a dangerous pathogen that can lead to serious illness or death in vulnerable populations such as pregnant women, newborns, the elderly, and those with compromised immune systems.  Kruse allegedly orchestrated a scheme to deceive certain Blue Bell customers, including by directing employees to remove potentially contaminated products from store freezers without notifying retailers or consumers about the real reason for the withdrawal.  The indictment alleges that Kruse directed employees to tell customers who asked about the removal that there was an unspecified issue with a manufacturing machine.  The company did not immediately recall the products or issue any formal communication to inform customers about the potential Listeria contamination.

“American consumers trust that the individuals who lead food manufacturing companies will put the public safety before profits,”  said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division. “The Department of Justice will take appropriate action against those who ship contaminated products and choose not to tell consumers about known risks.”

“U.S. consumers rely on food producers and suppliers to ensure the safety of the nation’s food supply.  The charges announced today show that if an individual violates food safety rules or conceals relevant information, we will seek to hold them accountable,”  said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration (FDA). “We will continue to investigate and bring to justice those who jeopardize public health.”

“The Defense Criminal Investigative Service's number one priority is the safety and well-being of America's warfighters and their families,"  said Michael Mentavlos, Special Agent-in-Charge of the Department of Defense Criminal Investigative Service (DCIS) Southwest Field Office.  “The results of this investigation are an example of DCIS' determination to enforce food safety standards, as required by Defense Department contracts.  These standards not only protect individuals, but are paramount to military readiness.”

The indictment, returned Tuesday in U.S. District Court for the Western District of Texas, further alleges that March 2015 tests conducted by the FDA and the Centers for Disease Control and Prevention (CDC) linked the strain of Listeria in one of the Blue Bell ice cream products to a strain that sickened five patients at a Kansas hospital with listeriosis, the severe illness caused by ingestion of Listeria-contaminated food.  The FDA, CDC, and Blue Bell issued public recall notifications on March 13, 2015.  Subsequent tests confirmed Listeria contamination in a product made at another Blue Bell facility in Broken Arrow, Oklahoma, which resulted in a second recall announcement on March 23, 2015. Additional positive test results ultimately led Blue Bell to recall all ice cream products in April 2015.

Blue Bell pleaded guilty in a related case in May to two counts of distributing adulterated food products in violation of the Federal Food, Drug, and Cosmetic Act. On Sept. 17, 2020, the court sentenced the company to pay criminal penalties totaling $17.25 million. Blue Bell also agreed to pay an additional $2.1 million to resolve civil False Claims Act allegations regarding ice cream products manufactured under insanitary conditions and sold to federal facilities, including the military.  The total $19.35 million in fine, forfeiture, and civil settlement payments constitutes the second largest-ever amount paid in resolution of a food safety matter.

Blue Bell temporarily closed all of its plants in late April 2015 to clean and update its facilities. Since re-opening its facilities in late 2015, Blue Bell has taken significant steps to enhance sanitation processes and enact a program to test products for Listeria prior to shipment. 

Kruse was previously charged by criminal information on May 1, 2020, during the temporary closure of grand juries in the Western District of Texas due to the COVID-19 pandemic.  That criminal information later was dismissed without opposition from the government, and the new indictment returned by the grand jury, which has resumed operations, now sets out the charges against Kruse.

The indictment filed against Kruse merely alleges that crimes have been committed.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

Patrick Hearn and Matt Lash of the Civil Division’s Consumer Protection Branch are prosecuting the case with assistance from Shannon Singleton of the FDA’s Office of Chief Counsel.  The criminal investigation was conducted by the FDA’s Office of Criminal Investigations and the DCIS.   

For more information about the enforcement efforts of the Consumer Protection Branch, visit their website at http://www.justice.gov/civil/consumer-protection-branch.

Today, the Department of Justice released “Full Scale Response: A Report on the Department’s Efforts to Combat MS-13 from 2016-2020.”  This report describes the Department’s work to dismantle La Mara Salvatrucha (MS-13) in the United States and abroad.  The data show that since 2016, the Department has prosecuted approximately 749 MS-13 gang members.  So far, more than 500 of these MS-13 gang members have been convicted, including 37 who received life sentences.  Department prosecutors are using more than 20 federal criminal statutes to prosecute MS-13 members, including, for the first time, filing terrorism charges against MS-13’s leadership.  The data also show that for decades MS-13 has exploited weaknesses in border enforcement policies, as approximately 74 percent of the defendants prosecuted were unlawfully present in the United States.  The report also describes the Department’s efforts to combat MS-13 internationally through increased partnerships with law enforcement in Mexico and Central America.  Through international cooperation, hundreds of MS-13 members have been arrested abroad and more than 50 MS-13 members have been extradited to the United States.

Combating MS-13 has been a top priority for the Department of Justice.  On February 9, 2017, President Trump issued Executive Order 13773, directing the whole-of-government to develop and execute a comprehensive approach to dismantle Transnational Criminal Organizations (TCOs) such as MS-13 and restore safety for the American people.  In doing so, the President recognized that these organizations put the safety of the American people at risk through widespread illegal conduct, including acts of violence and abuse that exhibit a wanton disregard for human life.  The President directed the Department to support and improve the coordination of federal agencies’ efforts to identify, interdict, investigate, prosecute, and dismantle TCOs and subsidiary organizations within and beyond the United States.  Pursuant to the President’s Executive Order, on October 15, 2018, Attorney General Sessions created the Transnational Organized Crime Task Force to focus on the disruption and dismantlement of TCOs such as MS-13.

On August 16, 2019, Attorney General Barr created Joint Task Force Vulcan (JTFV) to coordinate and lead the efforts of the Department and U.S. law enforcement agencies against MS-13 in order to eradicate the group.  JTFV has successfully increased coordination and collaboration with international law enforcement partners, including El Salvador, Mexico, Honduras, and Guatemala; prioritized prosecutions against MS-13 cliques and leaders; and coordinated significant MS-13 indictments in U.S. Attorneys’ Offices across the country.

“In 2017, the President directed the Department of Justice to go to war against MS-13, and we did just that,” said Attorney General Barr.  “In coordination with our partners at the Department of Homeland Security, the Justice Department’s law enforcement components have successfully investigated, charged, and arrested command and control elements of MS-13 responsible for particularly heinous crimes against our communities.  Joint Task Force Vulcan’s operations have significantly degraded MS-13 capabilities.  While there is still work to be done, the Department of Justice remains steadfastly committed to protecting Americans from MS-13, and we will not rest until we have successfully eradicated this violent gang.”

Federal prosecutors from the Department’s National Security Division, the Criminal Division, and 10 U.S. Attorneys’ Offices have been assigned full-time to JTFV.  The U.S. Attorneys’ Offices represented include: the Eastern District of New York, the Eastern District of Virginia, the District of Nevada, the Southern District of California, the District of Massachusetts, the Northern District of Ohio, the District of New Jersey, the Eastern District of Texas, the District of Utah, and the District of Columbia.  In addition, the Department’s law enforcement agencies are involved in the effort, including the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Marshals Service (USMS), and the Bureau of Prisons.  DHS’s Homeland Security Investigations (HSI) has also played a critical role in JTFV.

In addition, components of the Department’s Criminal Division are involved in efforts to dismantle MS-13.  The Organized Crime and Gang Section, together with U.S. Attorneys’ Offices, has indicted and tried complex RICO prosecutions against significant MS-13 leaders, members, and associates across the country.  The Office of International Affairs has worked to pursue the extradition of high-level MS-13 targets and obtain crucial foreign evidence for MS-13 cases.  The Office of Overseas Prosecutorial Development, Assistance and Training has coordinated with counterparts in Central America on joint operations that have resulted in significant indictments of gang members and seizures of firearms and money.  And the Office of Enforcement Operations has provided critical support and assistance to MS-13 investigations.

Information Regarding the Immigration Status of MS-13 Defendants

The vast majority of the MS-13 members that the Department has prosecuted from 2016 through 2020 were unlawfully present in the United States.  The approximate immigration status makeup of the defendants is as follows:

• 74 percent were unlawfully present in the United States;
• 15 percent had an immigration status that could not be determined;
• 8 percent were U.S. Citizens;
• 3 percent had lawful status in the United States.

Information Regarding the Department’s International Efforts to Combat MS-13

The Department and its federal law enforcement partners have assisted law enforcement in Central America and Mexico through training, operational support, the deployment of specialized technology, and intelligence sharing.  As part of these efforts, FBI special agents and analytical staff are embedded with their international law enforcement partners through Transnational Anti-Gang Units (TAG) where they jointly investigate MS-13 and other gangs found in El Salvador, Guatemala, and Honduras.  HSI has specially trained Central American law enforcement officers to target MS-13 in Central America through its Transnational Criminal Investigative Units (TCIUs) program.  TAGs and TCIUs have arrested hundreds of MS-13 members in Central America.

Federal law enforcement agencies have also provided technical support and intelligence to law enforcement in Central America.  After MS-13 and other gangs targeted Salvadoran law enforcement with a series of bombings, ATF assisted Salvadoran authorities in its investigation into the bombings.  The USMS has regularly shared intelligence with their international counterparts to locate MS-13 fugitives in the United States and El Salvador.  The increased cooperation has led to the arrest of MS-13 fugitives in Central America and the United States.  More than 50 MS-13 members have been extradited to the United States as a result of these partnerships.

DHS has deployed technology to Mexico and Central America to identify and track dangerous MS-13 members in order to stop them before they enter the United States.  DHS deployed the Biometric Identification Transnational Migration Alert Program (BITMAP) in Central America.  The BITMAP system stores biometric data for individuals enrolled in the system and shares it with law enforcement and immigration authorities in Central America and the United States.  By enrolling MS-13 gang members into BITMAP, HSI is able to ensure that these dangerous individuals are identified if they attempt to enter the United States.  Most MS-13 members who are illegally present in the United States enter via Mexico.  Working with its partners in Mexico, DHS deployed its DHS Biometric Encounter Analysis and Screening Team to Migration Centers in Mexico so that MS-13 members can be detected before they reach the United States.

Today, Deputy Attorney General Jeffrey A. Rosen presented remarks highlighting the Department of Justice’s work combating anti-Semitic acts at a virtual conference hosted by Secretary of State Michael Pompeo entitled “Ancient Hatred, Modern Medium”—the first ever government-sponsored event focused on online anti-Semitism.  Deputy Attorney General Rosen described just a few of the Department of Justice’s many recent accomplishments in combating anti-Semitism, focusing on social media and the internet.  His remarks as prepared for delivery are available here, and the full State Department conference may be viewed here.

Attorney General William Barr has emphasized that anti-Semitic acts, like other acts of violence motivated by hatred or bias, “violate the personal security of individuals, threaten the freedom of communities to pursue their faith and way of life, and disregard the common ties that bind our Nation together.”  The Department is committed to combating anti-Jewish hatred on multiple fronts and in a multi-faceted approach, using both criminal and civil statutes.  In this effort, federal law enforcement agencies work in conjunction with state law enforcement, local officials, and religious communities.  In the last three years, the Department of Justice has worked to protect the rights of the Jewish community, and of all faith communities, through a variety of initiatives and engagements.  In addition to those set out in today’s remarks at the State Department conference, those include the following:

Summit on Combating Anti-Semitism

On July 15, 2019, at its headquarters, the Department of Justice held a Summit on Combating Anti-Semitism.  The Summit brought together 150 leading members of the Jewish community and featured speeches by Attorney General Barr, Deputy Attorney General Rosen, FBI Director Christopher Wray, Treasury Secretary Steve Mnuchin, Education Secretary Betsy Devos, Assistant Attorney General Beth Williams, Assistant Attorney General Eric Dreiband, and Special Envoy Elan Carr, as well as prosecutors, academics, and community activists.  Speakers addressed the increase in anti-Semitic incidents on campuses, the balance between fighting anti-Semitic rhetoric while respecting First Amendment freedoms, and the Department’s record in prosecuting hate crimes against Jews.

Attorney General’s Meeting with Religious Leaders in Brooklyn, New York

Attorney General Barr traveled to Brooklyn, New York on January 28, 2020 to meet with the heads of local Jewish community councils in areas of Brooklyn suffering from a spike in hate crimes against Jews, as well as heads of major Jewish organizations in the city.  The Attorney General personally heard stories of how the Jewish community was affected by the hate crimes and exchanged ideas on how the Department could assist the community in responding to the spike.  At the meeting, the Attorney General announced that in recognition of an increase in anti-Jewish hate crimes across the country, the Department would prioritize investigating and federally prosecuting these crimes, even those that would typically be prosecuted at the local level.

Attorney General’s Memorandum on Combating Anti-Semitism

 In conjunction with his Brooklyn visit, Attorney General Barr issued a directive to all United States Attorneys directing them to initiate or reinvigorate contacts with the Jewish community in their respective districts to reassure the Jewish community of the Department of Justice’s commitment to protecting Jewish citizens.  The memo directed the United States Attorneys to establish a point of contact in each of their offices for the Jewish community to report hate crimes or other discrimination.  During the spring of 2020, United States Attorneys across the country met with Jewish clergy, local non-profits, and branches of national Jewish organizations. 

Prosecutions of Anti-Semitic Hate Crimes

Since January 2017, the Department has charged more than 80 defendants with anti-Semitic hate crimes and related conduct, and has obtained convictions of more than 65 defendants for the same.

The Department, through the diligent work of its Civil Rights Division and U.S. Attorney’s Offices around the country, has obtained convictions in a number of high-profile hate crime prosecutions affecting the Jewish community:

• U.S. v. James Fields—The United States Attorney’s Office for the Western District of Virginia indicted James Fields for his August 12, 2017 deadly car attack at a rally in Charlottesville, Virginia, which killed Heather Heyer and injured several other individuals. The defendant pleaded guilty to 29 federal hate crime charges and the Court sentenced him to 29 sentences of life imprisonment without the possibility of parole, along with restitution.
• U.S. v. Chadwick Grubbs—The United States Attorney’s Office for the Eastern District of Wisconsin charged the defendant with hate crimes for mailing letters to a Jewish community center threatening to attack the center with firearms and explosives.  The defendant pleaded guilty to three federal hate crime charges and the Court sentenced him to 36 months’ imprisonment along with supervised release and fines.
• U.S. v. Nolan Brewer—The United States Attorney’s Office for the Southern District of Indiana charged the defendant for conspiring to attack an Indiana synagogue. The defendant pleaded guilty and the Court sentenced him to 36 months’ imprisonment.

Active cases the Department is currently prosecuting include the following:

• U.S. v. Grafton Thomas—The United States Attorney’s Office for the Southern District of New York indicted Grafton Thomas for hate crimes after his December 28, 2019 machete attack against a rabbi and five others celebrating Hanukkah at the rabbi’s home.
• U.S. v. Robert Bowers—The United States Attorney’s Office for the Western District of Pennsylvania indicted Robert Bowers for his October 27, 2018 armed massacre of 11 worshippers at the Tree of Life Synagogue in Pittsburgh, Pennsylvania.
• U.S. v. John Earnest—The United States Attorney’s Office for the Southern District of California indicted John Earnest for his April 27, 2019 fatal shooting at the Chabad of Poway Synagogue and for his attempted arson of a California mosque.
• U.S. v. Tiffany Harris—The United States Attorney’s Office for the Eastern District of New York indicted Tiffany Harris for assaulting three Orthodox Jewish women during Hanukkah in December 2019 in Crown Heights, Brooklyn.
• U.S. v. Ethan Melzer—The Counterterrorism Section of the National Security Division, along with the United States Attorney’s Office for the Southern District of New York, indicted U.S. Army soldier Ethan Melzer for providing sensitive classified information about his unit to members of a Neo-Nazi group (whose core tenets include Holocaust denial), and urging them to disseminate the information to terrorists so that they could attack his fellow service members in Turkey.   
• Atomwaffen prosecutions—The United States Attorney’s Offices for the Western District of Washington, Middle District of Florida, Southern District of Texas, and District of Arizona, in coordination with the National Security Division, arrested multiple members of the white supremacist group Atomwaffen for making threats against African-American and Jewish journalists.

Supporting Religious Freedom including through the Place to Worship Initiative

On June 13, 2018, former Attorney General Jeff Sessions announced the Place to Worship Initiative, which focuses on protecting the rights of religious individuals and communities to build, expand, buy, or rent houses of worship and other religious facilities as guaranteed by the Religious Land Use and Institutionalized Persons Act (RLUIPA).  Since launching the initiative in 2018, the Civil Rights Division doubled the number of RLUIPA investigations to 15, up from an average seven a year since 2010.  Cases involving the Jewish community include:

• U.S. v. Borough of Woodcliff Lake—The Department filed a lawsuit alleging that the Borough of Woodcliff Lake, New Jersey violated RLUIPA when its zoning board denied zoning approval for the Valley Chabad to build a new place of worship on its land.  This case was resolved in a settlement announced September 15, 2020, which will allow the congregation to build its facility. 
• U.S. v. Township of Jackson—The Department filed a lawsuit alleging that the Township of Jackson, New Jersey had taken various actions to stop yeshivas from locating in the Township.

Defending Constitutional Rights During the COVID-19 Pandemic

On April 27, 2020, Attorney General Barr directed the Department, including the Civil Rights Division and all United States Attorney’s Offices, to review state and local policies to ensure that civil liberties are protected during the COVID-19 pandemic.

• On June 19, 2020, pursuant to this initiative, the Department sent a letter to New York City Mayor Bill de Blasio alerting him that the city’s response to COVID-19 must respect the First Amendment’s protection of religious exercise.  The Department urged Mayor de Blasio to reconsider his posture toward religious gatherings in the Jewish community and expressed concern over reports that the city “sent police officers to break up numerous gatherings of the Jewish community in New York, including outdoor gatherings for funerals.”
• The Department continues to work to protect all communities of faith and will continue to take action when the constitutional rights of the Jewish community are infringed.

As Deputy Attorney General Rosen stated in his remarks at today’s conference, “the United States Department of Justice stands firmly and unequivocally against anti-Semitism.  We will not hesitate to take action where anti-Semitic conduct rises to the level of a federal crime.  That is as true online as it is offline.  We have no tolerance for that behavior and will continue to prosecute such conduct as appropriate.   Most importantly, we will continue to uphold the rule of law for all Americans.”

During a visit with law enforcement in Memphis today, Attorney General William P. Barr announced updates on Operation Legend, which was expanded to Memphis on Aug. 6, 2020.

Since Operation Legend’s launch in July 2020, nearly 5,500 arrests – including approximately 276 for homicide, 66 of which occurred in Memphis – have been made; more than 2,000 firearms have been seized; and nearly 28 kilos of heroin, nearly 16 kilos of fentanyl, more than 200 kilos of methamphetamine, more than 30 kilos of cocaine, and more than $7.3 million in drug proceeds have been seized.

Of the more than 5,500 individuals arrested, approximately 1,124 have been charged with federal offenses.  Approximately 602 of those defendants have been charged with firearms offenses, while approximately 441 have been charged with drug-related crimes.  The remaining defendants have been charged with various offenses.

The Attorney General launched the operation as a sustained, systematic and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime.

Breakdown of Operation Legend charges:

The initiative, which was first launched first in Kansas City, MO., on July 8, 2020, is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City.  The operation was subsequently expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020.  A breakdown of the federal charges in each district is below. 

Kansas City, MO

174 defendants have been charged with federal crimes outlined below.

• 67 defendants have been charged with narcotics-related offenses;
• 94 defendants have been charged with firearms-related offenses; and
• 13 defendants have been charged with other violent crimes.

Chicago, IL

176 defendants have been charged with federal crimes outlined below.

• 40 defendants have been charged with narcotics-related offenses;
• 130 defendants have been charged with firearms-related offenses; and
• 6 defendants have been charged with other violent crimes.

Albuquerque, NM

126 defendants have been charged with federal crimes outlined below.

• 52 defendants have been charged with narcotics-related offenses;
• 64 defendants have been charged with firearms-related offenses; and
• 10 defendants have been charged with other violent crimes.

Cleveland, OH

101 defendants have been charged with federal crimes outlined below.

• 59 defendants have been charged with narcotics-related offenses;
• 38 defendants have been charged with firearms-related offenses; and
• 4 defendants have been charged with other violent crimes.

Detroit, MI

100 defendants have been charged with federal offenses outlined below. 

• 33 defendants have been charged with narcotics-related offenses;
• 64 defendants have been charged with firearms-related offenses; and
• 3 defendants have been charged with other violent crimes.

Milwaukee, WI

57 defendants have been charged with federal crimes outlined below.

• 25 defendants have been charged with narcotics-related offenses;
• 27 defendants have been charged with firearms-related offenses; and
• 5 defendant has been charged with other violent crimes.

St. Louis, MO

274 defendants have been charged with federal crimes.

• 125 defendants have been charged with narcotics-related offenses;
• 125 defendants have been charged with firearms-related offenses; and
• 24 defendants have been charged with other violent crimes.

Memphis, TN

64 defendants have been charged with federal offenses.

• 35 defendants have been charged with narcotics-related offenses;
• 16 defendants have been charged with firearms-related offenses; and
• 13 defendants have been charged with other violent crimes.

Indianapolis, IN

65 defendants have been charged with federal crimes outlined below.

• 10 defendants have been charged with narcotics-related offenses;
• 46 defendants have been charged with firearms-related offenses; and
• 9 defendants have been charged with other violent crimes.

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Update: This rule was enjoined in its entirety on November 19, 2020. See Pangea Legal Servs., et al., v. U.S. Dep’t of Homeland Sec., et al., No. 3:20-cv-07721 (N.D. Cal.) (“Pangea I”)

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Today, the Department of Justice and the Department of Homeland Security announced the publication of a Final Rule amending their respective regulations to prevent certain categories of criminal aliens from obtaining asylum in the United States.  The rule takes effect 30 days after publication of the Final Rule in the Federal Register, which is scheduled to occur on Wednesday, Oct. 21.

Asylum is a discretionary immigration benefit that generally can be sought by eligible aliens who are physically present or arriving in the United States, irrespective of their status, as provided in section 208 of the Immigration and Nationality Act (INA), 8 U.S.C. § 1158.  However, in the INA, Congress barred certain categories of aliens from receiving asylum.  In addition to the statutory bars, Congress delegated to the Attorney General and the Secretary of Homeland Security the authority to establish by regulation additional bars on asylum eligibility to the extent they are consistent with the asylum statute, as well as to establish “any other conditions or limitations on the consideration of an application for asylum” that are consistent with the INA.

To ensure that criminal aliens cannot obtain this discretionary benefit, the Attorney General and Secretary of Homeland Security have exercised their regulatory authority to limit eligibility for asylum for aliens who have engaged in specified categories of criminal behavior.

The new bars apply to aliens who are convicted of:

(1) A felony under federal or state law;

(2) An offense under 8 U.S.C. § 1324(a)(1)(A) or § 1324(a)(1)(2) (Alien Smuggling or Harboring);

(3) An offense under 8 U.S.C. § 1326 (Illegal Reentry);

(4) A federal, state, tribal, or local crime involving criminal street gang activity;

(5) Certain federal, state, tribal, or local offenses concerning the operation of a motor vehicle while under the influence of an intoxicant;

(6) A federal, state, tribal, or local domestic violence offense, or who are found by an adjudicator to have engaged in acts of battery or extreme cruelty in a domestic context, even if no conviction resulted; and

(7) Certain misdemeanors under federal or state law for offenses related to false identification; the unlawful receipt of public benefits from a federal, state, tribal, or local entity; or the possession or trafficking of a controlled substance or controlled-substance paraphernalia.

Aliens who have committed certain domestic violence offenses, even if not convicted, will also be barred from asylum.

Attorney General William P. Barr released the following statement:

“This morning the Department of Justice, along with eleven states, filed a civil lawsuit against Google for unlawfully maintaining a monopoly in general search services and search advertising in violation of the U.S. antitrust laws.  This is a monumental case for the Department of Justice and, more importantly, for the American consumer.

Today, millions of Americans rely on the Internet and online platforms for their daily lives.  For years, there have been broad, bipartisan concerns about business practices leading to massive concentrations of economic power in our digital economy.  Hearing those concerns, I have made it a primary commitment of my tenure as Attorney General for the Department of Justice to examine whether technology markets have been deprived of free, fair, and open competition.

To that end, the Department of Justice formally opened a review of online market-leading platforms in July 2019.  One part of this review is the Antitrust Division’s investigation of Google.  Over the course of the last 16 months, the Antitrust Division collected convincing evidence that Google no longer competes only on the merits but instead uses its monopoly power – and billions in monopoly profits – to lock up key pathways to search on mobile phones, browsers, and next generation devices, depriving rivals of distribution and scale.  The end result is that no one can feasibly challenge Google’s dominance in search and search advertising.

This lack of competition harms users, advertisers, and small businesses in the form of fewer choices, reduced quality (including on metrics like privacy), higher advertising prices, and less innovation.

The complaint filed today against Google is based on violations of the U.S. antitrust laws and is separate and distinct from concerns raised about content moderation and political censorship by online platforms.  As part of the Department’s broader review of market-leading online platforms, we listened to myriad public concerns about how online platforms fail their users.  While many of the concerns we heard were competition-related, others were not – like online child exploitation, public safety, and censorship.  Outside the Antitrust Division, the Department has considered these issues separately, including by advocating for Section 230 legislative reforms.  Our antitrust investigation of Google, by contrast, is based solely on traditional antitrust principles and is aimed at promoting consumer welfare through robust competition.  

Twenty-five years ago, the Department of Justice sued Microsoft, paving the way for a new wave of innovative tech companies – including Google.  The increased competition following the Microsoft case enabled Google to grow from a small start-up to an Internet behemoth.  Unfortunately, once Google itself gained dominance, it resorted to the same anticompetitive playbook.  If we let Google continue its anticompetitive ways, we will lose the next wave of innovators and Americans may never get to benefit from the “next Google.”  The time has come to restore competition to this vital industry.

Today’s challenge against Google – the monopoly gatekeeper of the Internet – shows the tremendous efforts of the Department, in particular the hardworking men and women of the Antitrust Division, and our state partners to restore competition in markets beholden to an unlawful monopolist.  This is an important milestone, but not the end of our review of market-leading online platforms.  The Department will continue to vigorously investigate and enforce the antitrust laws where appropriate to protect and promote competition in the digital economy for the benefit of the American consumer.”

A federal grand jury sitting in the Eastern District of North Carolina returned an indictment on Oct. 14 charging a North Carolina Department of Public Safety official with a bribery and smuggling scheme that funneled drugs and other contraband into Caledonia Correctional Institution.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Special Agent in Charge Robert R. Wells of the FBI’s Charlotte Field Office made the announcement. 

Ollie Rose III, 61, of Pleasant Hill, North Carolina, was charged with one count of conspiring to use a facility in interstate commerce in furtherance of unlawful activity, five counts of extortion under color of official right, one count of attempted possession with intent to distribute a controlled substance, and four counts of possession with intent to distribute a controlled substance.  He made his initial appearance today before U.S. Magistrate Judge Kimberly A. Swank.

According to the indictment, Rose, a case manager at Caledonia Correctional Institution, used his position as a public official to smuggle contraband, including marijuana, tobacco, and synthetic cannabinoids, into the prison for inmates.  The indictment alleges that in exchange for smuggling illegal drugs and other contraband, Rose received payments ranging from $500 to $1,200 in cash or via a mobile application.  Rose is alleged to have engaged in the smuggling scheme from at least November 2018 through October 2020.

An indictment is not a finding of guilt.  It merely alleges that crimes have been committed.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt.

The case was investigated by the FBI and the North Carolina Department of Public Safety.  The case is being prosecuted by Trial Attorneys Rebecca M. Schuman and Lauren E. Britsch of the Criminal Division’s Public Integrity Section. 

The year 2020 marks the 150th anniversary of the Department of Justice.  Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.

A resident of Newburgh, New York, pleaded guilty today to conspiracy to defraud the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to the indictment, Jose Andreu filed false tax returns with the assistance of a return preparer. From 2011 through 2019, Andreu and others prepared and filed false returns through two tax preparation firms that reported significant tax withholdings based on fictitious Forms 1099-OID, in an effort to fraudulently obtain refunds from the IRS. The Forms 1099-OID falsely reported that financial institutions, creditors, and other entities had withheld federal income tax, when in reality no such taxes had been withheld. Andreu also filed false returns for himself and others, claiming more than $2,125,872 in refunds from the IRS.

U.S. District Judge Eric R. Komitee scheduled sentencing for Feb. 24, 2021. Andreu faces up to five years in prison, as well as monetary penalties. As part of his plea agreement, Andreu has agreed to pay restitution to the IRS.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Ann Marie Cherry and Mark Kotila of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the Division’s website.

Note: Click for Attorney General Barr's statement and Deputy Attorney General Rosen's remarks. 

Today, the Department of Justice — along with eleven state Attorneys General — filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to stop Google from unlawfully maintaining monopolies through anticompetitive and exclusionary practices in the search and search advertising markets and to remedy the competitive harms. The participating state Attorneys General offices represent Arkansas, Florida, Georgia, Indiana, Kentucky, Louisiana, Mississippi, Missouri, Montana, South Carolina, and Texas.

“Today, millions of Americans rely on the Internet and online platforms for their daily lives.  Competition in this industry is vitally important, which is why today’s challenge against Google — the gatekeeper of the Internet — for violating antitrust laws is a monumental case both for the Department of Justice and for the American people,” said Attorney General William Barr. “Since my confirmation, I have prioritized the Department’s review of online market-leading platforms to ensure that our technology industries remain competitive.  This lawsuit strikes at the heart of Google’s grip over the internet for millions of American consumers, advertisers, small businesses and entrepreneurs beholden to an unlawful monopolist.”

 “As with its historic antitrust actions against AT&T in 1974 and Microsoft in 1998, the Department is again enforcing the Sherman Act to restore the role of competition and open the door to the next wave of innovation—this time in vital digital markets,” said Deputy Attorney General Jeffrey A. Rosen.

As one of the wealthiest companies on the planet with a market value of $1 trillion, Google is the monopoly gatekeeper to the internet for billions of users and countless advertisers worldwide. For years, Google has accounted for almost 90 percent of all search queries in the United States and has used anticompetitive tactics to maintain and extend its monopolies in search and search advertising.  

As alleged in the Complaint, Google has entered into a series of exclusionary agreements that collectively lock up the primary avenues through which users access search engines, and thus the internet, by requiring that Google be set as the preset default general search engine on billions of mobile devices and computers worldwide and, in many cases, prohibiting preinstallation of a competitor. In particular, the Complaint alleges that Google has unlawfully maintained monopolies in search and search advertising by:

• Entering into exclusivity agreements that forbid preinstallation of any competing search service.
• Entering into tying and other arrangements that force preinstallation of its search applications in prime locations on mobile devices and make them undeletable, regardless of consumer preference.
• Entering into long-term agreements with Apple that require Google to be the default – and de facto exclusive – general search engine on Apple’s popular Safari browser and other Apple search tools.
• Generally using monopoly profits to buy preferential treatment for its search engine on devices, web browsers, and other search access points, creating a continuous and self-reinforcing cycle of monopolization.

These and other anticompetitive practices harm competition and consumers, reducing the ability of innovative new companies to develop, compete, and discipline Google’s behavior. 

The antitrust laws protect our free market economy and forbid monopolists from engaging in anticompetitive practices. They also empower the Department of Justice to bring cases like this one to remedy violations and restore competition, as it has done for over a century in notable cases involving monopolists over other critical industries undergirding the American economy like Standard Oil and the AT&T telephone monopoly. Decades ago the Department’s case against Microsoft recognized that the antitrust laws forbid anticompetitive agreements by high-technology monopolists to require preinstalled default status, to shut off distribution channels to rivals, and to make software undeletable. The Complaint alleges that Google is using similar agreements itself to maintain and extend its own dominance. 

The Complaint alleges that Google’s anticompetitive practices have had harmful effects on competition and consumers. Google has foreclosed any meaningful search competitor from gaining vital distribution and scale, eliminating competition for a majority of search queries in the United States. By restricting competition in search, Google’s conduct has harmed consumers by reducing the quality of search (including on dimensions such as privacy, data protection, and use of consumer data), lessening choice in search, and impeding innovation. By suppressing competition in advertising, Google has the power to charge advertisers more than it could in a competitive market and to reduce the quality of the services it provides them. Through filing the lawsuit, the Department seeks to stop Google’s anticompetitive conduct and restore competition for American consumers, advertisers, and all companies now reliant on the internet economy.

Google is a limited liability company organized and existing under the laws of the State of Delaware, and is headquartered in Mountain View, California. Google is owned by Alphabet Inc., a publicly traded company incorporated and existing under the laws of the State of Delaware and headquartered in Mountain View, California.

Yesterday, the Department of Justice issued its Annual Report to Congress on Department of Justice Activities to Combat Elder Fraud and Abuse.  The report summarizes the department’s extensive efforts from July 1, 2019 through June 30, 2020.

“The Department of Justice’s unwavering commitment to protecting our nation’s seniors from fraud and abuse is clearly illustrated in this year’s report to Congress,” said Attorney General William P. Barr.  “I appreciate the men and women of the department, our federal, state, local, and tribal law enforcement partners, and those in the private sector who support our mission.  Their hard work and dedication is to credit for our mutual and ongoing efforts to end elder fraud and abuse.”

This year’s report details the department’s incredible successes, despite the challenges presented by the Coronavirus pandemic.  The report notes that while the pandemic presented numerous barriers to investigating and advancing cases, the department nonetheless charged almost 300 cases involving a wide variety of fraud targeting or affecting the elderly.  Examples of these cases include government imposter scams, computer tech scams, romance scams, investment scams and lottery scams, among others.  The report also describes the department’s extraordinary efforts to end transnational criminal organizations from committing fraud on seniors, including by obtaining court orders to prevent robocalls from overseas organizations and by prioritizing the annual Money Mule Initiative to disrupt the flow of fraud proceeds to perpetrators, particularly those who are overseas.

The report additionally describes the department’s significant outreach efforts — including over 575 events around the country, reaching over 165,500 participants, including seniors and other community members, financial and business partners, and state, local, and tribal governments and law enforcement partners.  The report also details the department’s many grants to our partners around the country.

The report features the department’s Elder Fraud Sweep — the largest coordinated sweep of elder fraud cases in history, with over 400 defendants charged for causing more than $1 billion in losses — and the launch of the National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311).  The hotline, managed by the department’s Office for Victims of Crime, is staffed by trained caseworkers, and to date has received thousands of calls, providing help to seniors and generating leads for further investigation.  The department’s National Nursing Home Initiative is also highlighted in the report — launched earlier this year, the Nursing Home Initiative is designed to coordinate and enhance civil and criminal efforts to investigate and prosecute nursing homes that provide grossly substandard care to their residents.

In addition to these historic achievements, the department urges Congress to enact legislation that would strengthen our response to fraud and other crimes that have increased during the COVID-19 pandemic, and have disproportionately impacted seniors.

For more information on the Department of Justice’s work on Elder Justice, please visit https://www.justice.gov/elderjustice.

The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) awarded more than $536.7 million in Fiscal Year 2020 to increase law enforcement hiring and to improve school safety, combat opioids and methamphetamine, advance community policing efforts, provide training to the law enforcement field, and protect the health of our nation’s officers and deputies.

“Building on the successes in reducing violent crime in 2017, 2018, and 2019, these Department of Justice grants for 2020 help to fight violent crime and deadly narcotics, to improve public safety, and to support the officers who put their lives on the line every day to keep us safe,” said Deputy Attorney General Jeffrey A. Rosen.  “Strong partnerships of federal, state, and local law enforcement can produce better results for the public we all serve.”

“Supporting the men and women of law enforcement as they serve their communities is of paramount importance to the COPS Office,” said COPS Office Director Phil Keith.  “Now more than ever, it is critical that we continue to provide state, local and tribal agencies the resources they desperately need to continue to advance public safety, which they are so committed to doing.  We are all the beneficiaries of that work.”

Funds awarded by the COPS Office in FY2020 include:

COPS Hiring Program (CHP):  Nearly $400 million in CHP grant funding was awarded to 605 law enforcement agencies across the nation, which will allow those agencies to hire 2,761 additional full-time law enforcement professionals.  CHP provides funding for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts.

School Violence Prevention Program (SVPP):  Through SVPP, nearly $49 million was awarded to 160 states, units of local government, Indian tribes, and public agencies to be used to improve security at schools and on school grounds.  Awards included funding for coordination with local law enforcement; training for local law enforcement officers to prevent school violence against others and self; placement and use of metal detectors, locks, lighting, and other deterrent measures; acquisition and installation of technology for expedited notification of local law enforcement during an emergency; and other measures providing significant improvements in security.

Community Policing Development (CPD):  Through CPD, 24 awards were announced totaling nearly $8 million in funding to advance the practice of community policing in law enforcement.  CPD funds are used to develop the capacity of law enforcement to implement community policing by providing guidance on promising practices through the development and testing of innovative strategies; building knowledge about effective practices and outcomes; and supporting new, creative approaches to preventing crime and promoting safe communities.

Community Policing Development Microgrants Program:  Through CPD Microgrants, nearly $2.2 million was awarded to 29 local, state, and tribal law enforcement agencies to implement demonstration or pilot projects in their jurisdictions offering creative ideas to advance crime fighting, community engagement, problem solving, or organizational changes to support community policing.

COPS Anti-Methamphetamine Program (CAMP):  Through CAMP, approximately $12 million in grant funding was awarded to 12 state law enforcement agencies that have demonstrated numerous seizures of precursor chemicals, finished methamphetamine, laboratories, and laboratory dump seizures.  This funding will support the location or investigation of illicit activities related to the manufacture and distribution of methamphetamine, including precursor diversion, laboratories, or methamphetamine traffickers.

Anti-Heroin Task Force (AHTF) Program:  More than $29.7 million in AHTF grant funding was awarded to 14 state law enforcement agencies with multijurisdictional reach and interdisciplinary team (e.g., task force) structures in states with high per capita rates of primary treatment admissions for heroin, fentanyl, carfentanil, and other opioids.  This funding will support the location or investigation of illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.

Law Enforcement Mental Health and Wellness Act (LEMHWA):  Through LEMHWA, 41 awards were announced totaling $4.5 million to improve the delivery of and access to mental health and wellness services for law enforcement through training and technical assistance, demonstration projects, implementation of promising practices related to peer mentoring mental health and wellness, and suicide prevention programs.

Preparing for Active Shooter Situations (PASS):  Approximately $8.8 million in PASS funding was awarded to Texas State University / ALERRT to offer integrated, scenario-based response courses and cross-disciplinary active shooter training to law enforcement and other first responders nationally.

Coordinated Tribal Assistance Solicitation (CTAS):  CTAS provides resources for federally recognized tribes from the COPS Office, the Office of Justice Programs, and the Office on Violence Against Women.  Through CTAS, the COPS Office made 64 Tribal Resources Grant Program awards for tribal officer hiring, equipment, and/or training to 41 tribes, with funding totaling approximately $22.5 million.

Tribal Resources Grant Program - Technical Assistance (TRGP-TA):  Through TRGP-TA, the COPS Office provided $800,000 to fund projects related to the topics of (1) cold cases and missing or murdered indigenous persons and (2) developing an Alaskan law enforcement recruitment strategy.

Full lists of all announced COPS Office awards are available here.

WASHINGTON – San Diego Christian College (SDCC), based in Santee, California, will pay $225,000 to resolve allegations under the False Claims Act for submitting false claims to the U.S. Department of Education in violation of the federal ban on incentive-based compensation, the Justice Department announced today.    

Title IV of the Higher Education Act (HEA) prohibits any institution of higher education that receives federal student aid from compensating student recruiters with a commission, bonus, or other incentive payment based on the recruiters’ success in securing student enrollment.  The incentive compensation ban protects students against admissions and recruitment practices that serve the financial interests of the recruiter rather than the educational needs of the student.

“Higher education enrollment decisions should put students first,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division.  “Offering recruiters financial incentives to enroll students undermines students’ ability to make educational decisions in their own best interests.”

“Colleges should be places for students to learn and grow, not places to be taken advantage of by recruiters watching out for the own financial interests,” said U.S. Attorney Peter M. McCoy, Jr. for the District of South Carolina.  “This office will continue its efforts to protect students against illegal recruiting practices.”

“Today’s settlement is a result of the hard work and effort of the Office of Inspector General and the Department of Justice to protect and maintain the integrity of the Federal student aid programs,” said Neil Sanchez, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southern Regional Office.  “We will continue to work together to ensure that Federal student aid funds are used as required by law. America’s taxpayers and students deserve nothing less.”

The settlement, which was based on SDCC’s ability to pay, resolves allegations that between 2014 and 2016, SDCC hired Joined, Inc., a California-based student recruiting company, to recruit students to SDCC.  The United States contended that SDCC compensated Joined with a share of the tuition that SDCC received from the enrollment of recruited students, in violation of the prohibition on incentive compensation. 

The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Maurice Shoe, the co-owner of Joined.  The Act permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  As part of today’s resolution, the whistleblower will receive $33,750.

This matter was investigated by the U.S. Attorney’s Office for the District of South Carolina and the Civil Division’s Commercial Litigation Branch.  Investigative assistance was provided by the Office of Inspector General of the Department of Education.

The claims resolved by the settlement are allegations only, and there has been no determination of liability.  The case is captioned United States ex rel. Shoe v. San Diego Christian College, No. 6:16-cv-01570 (D.S.C.).

            United States Attorney SHAWN N. ANDERSON announces the assignment of Assistant United States Attorneys (AUSA) to lead the efforts of the United States Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 3, 2020, general election.  AUSA Marivic P. David will serve as the District Election Officer (DEO) for the District of Guam.  AUSA Eric S. O’Malley will serve as the DEO for the District of the Northern Mariana Islands.  These AUSAs are responsible for overseeing the Districts’ handling of complaints of election fraud and voting rights concerns in consultation with Justice Department Headquarters in Washington.

 

            United States Attorney Anderson said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud.  The Department of Justice will always act appropriately to protect the integrity of the election process.”

 

            The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur.  The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open through election day.

 

            Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from acts that intimidate or harass them.  For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law.  Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or illiteracy).

 

            The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights concerns during the voting period that ends on November 3, 2020, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Anderson stated that the AUSAs/DEOs will be on duty while the polls are open, including periods of early voting.  Ms. David can be reached by the public at (671) 479-4120 or (671) 988-3260.  Mr. O’Malley can be contacted at (670) 236-2986.

 

            In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public by calling (671) 645-1805 or (670) 322-6934.

 

            Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/ .

 

            Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

 

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The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of our agency at www.Justice.gov/Celebrating150Years.
 

The Department of Justice’s Office of Justice Programs today announced it has awarded funding totaling over $54 million to provide services that protect officers and improve overall public safety. OJP’s Bureau of Justice Assistance awarded grants to law enforcement departments, local jurisdictions, and training and technical assistance organizations throughout the United States.

The FBI’s official crime data for 2019, the most recent available, reflects a decrease in the number of law enforcement officers killed feloniously between 2018 and 2019, from 43 to 32 killed as of September 30, 2019. The number of law enforcement officers reported accidentally killed in 2019 decreased slightly from 33 to 29 in the same reporting period. Additionally, officers experienced nearly 59,000 assaults in 2018.

 “The Office of Justice Programs stands proudly with the Attorney General and the President in our commitment to the health and safety of 700,000 sworn law enforcement professionals who selflessly place their lives in jeopardy to keep us all safe,” said OJP’s Principal Deputy Assistant Attorney General Katharine T. Sullivan. “Bulletproof vests, body-worn cameras, professional training on wellness and safety—these resources, equipment and strategies will help officers do their jobs effectively, keep them safe from harm and protect their health.”

More than $19 million will support the training and implementation of law enforcement agencies’ body-worn camera programs. Almost $24 million will reimburse jurisdictions for up to 50 percent of the cost of body armor vests, while more than $11 million will support law enforcement safety and wellness programs, research and services.

A full list of the awards, organized under specific grant programs and listing awardees by state, is available here.

Additional information about Fiscal Year 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

Attorney General William P. Barr today directed the Federal Bureau of Prisons to schedule the executions of two federal death-row inmates, both of whom were convicted of especially heinous murders at least 13 years ago.

• Lisa Montgomery fatally strangled a pregnant woman, Bobbie Jo Stinnett, cut open her body, and kidnapped her baby. In December 2004, as part of a premeditated murder-kidnap scheme, Montgomery drove from her home in Kansas to Stinnett’s home in Missouri, purportedly to purchase a puppy.  Once inside the residence, Montgomery attacked and strangled Stinnett—who was eight months pregnant—until the victim lost consciousness.  Using a kitchen knife, Montgomery then cut into Stinnett’s abdomen, causing her to regain consciousness.  A struggle ensued, and Montgomery strangled Stinnett to death.  Montgomery then removed the baby from Stinnett’s body, took the baby with her, and attempted to pass it off as her own.  Montgomery subsequently confessed to murdering Stinnett and abducting her child.  In October 2007, a jury in the U.S. District Court for the Western District of Missouri found Montgomery guilty of federal kidnapping resulting in death, and unanimously recommended a death sentence, which the court imposed.  Her conviction and sentence were affirmed on appeal, and her request for collateral relief was rejected by every court that considered it.  Montgomery is scheduled to be executed by lethal injection on December 8, 2020, at U.S. Penitentiary Terre Haute, Indiana. 
• Brandon Bernard and his accomplices brutally murdered two youth ministers, Todd and Stacie Bagley, on a military reservation in 1999. After Todd Bagley agreed to give a ride to several of Bernard’s accomplices, they pointed a gun at him, forced him and Stacie into the trunk of their car, and drove the couple around for hours while attempting to steal their money and pawn Stacie’s wedding ring.  While locked in the trunk, the couple spoke with their abductors about God and pleaded for their lives.  The abductors eventually parked on the Fort Hood military reservation, where Bernard and another accomplice doused the car with lighter fluid as the couple, still locked in the trunk, sang and prayed.  After Stacie said, “Jesus loves you,” and “Jesus, take care of us,” one of the accomplices shot both Todd and Stacie in the head—killing Todd and knocking Stacie unconscious.  Bernard then lit the car on fire, killing Stacie through smoke inhalation.  In June 2000, a jury in the U.S. District Court for the Western District of Texas found Bernard guilty of, among other offenses, two counts of murder within the special maritime and territorial jurisdiction of the United States, and unanimously recommended a death sentence.  His conviction and sentence were affirmed on appeal, and his request for collateral relief was rejected by every court that considered it.  Bernard is scheduled to be executed by lethal injection on December 10, 2020, at U.S. Penitentiary Terre Haute, Indiana.  One of his accomplices, Christopher Vialva, was executed for his role in the Bagleys’ murder on September 22, 2020.

Today, the Department of Justice and the Department of Homeland Security released the Alien Incarceration Report for Fiscal Year 2019.  The data shows that 94 percent of confirmed aliens incarcerated in Federal Bureau of Prisons (BOP) and United States Marshals Service (USMS) facilities were unlawfully present in the United States.  Additionally, the report found that nearly 70 percent of known or suspected aliens in BOP custody had been convicted of a non-immigration-related offense, and 39 percent of known or suspected aliens in USMS custody had committed a non-immigration-related offense.

In January 2017, President Trump issued an Executive Order on Enhancing Public Safety in the Interior of the United States, directing “the Secretary [of Homeland Security] and the Attorney General … to collect relevant data and provide quarterly reports on the following: (a) the immigration status of all aliens incarcerated under the supervision of the Federal Bureau of Prisons; (b) the immigration status of all aliens incarcerated as Federal pretrial detainees under the supervision of the United States Marshals Service; and (c) the immigration status of all convicted aliens incarcerated in State prisons and local detention centers throughout the United States.”

At the end of FY 2019, a total of 51,074 known or suspected aliens were in Department of Justice custody, with 27,494 known or suspected aliens in BOP facilities and 23,580 known or suspected aliens in USMS facilities.  Of those 51,074 known or suspected aliens, 27,266 individuals (53.4 percent) had been confirmed by U.S. Immigration and Customs Enforcement (ICE) to be aliens who had orders of removal or who had agreed to depart voluntarily.  18,308 individuals (35.8 percent) were still under investigation by ICE to determine alienage, 3,691 individuals (7.2 percent) were illegal aliens who were under adjudication, and 936 individuals (1.8 percent) were legal aliens who were under adjudication.  873 individuals (1.7 percent) were aliens who had been granted relief or protection from removal.

By the end of FY 2019, the USMS had directly expended $162 million to house the 23,580 known or suspected aliens remanded to their custody in state, local, and private facilities.  The average cost to house noncitizens in these facilities is $88.19 per prisoner, per day.

Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons

At the end of FY 2019, a total of 27,494 known or suspected aliens were in BOP custody.  Of those individuals, approximately 72 percent had been confirmed to be illegal aliens.

• 16,970 individuals (61.7 percent) were unauthorized aliens and had orders of removal;
• 2,797 individuals (10.2 percent) were unlawfully present and in removal proceedings;
• 6,120 individuals (22.3 percent) were under investigation to determine alienage;
• 830 individuals (3 percent) were lawfully present and in removal proceedings; and
• 777 individuals (2.8 percent) were granted relief or protection from removal.

Of the 27,494 known or suspected aliens in BOP custody, 27,125 had been convicted of an offense (369 inmates were in pretrial status).  Of those 27,125 individuals:

• 13,727 individuals (51 percent) had committed drug offenses;
• 8,403 individuals (approximately 31 percent) had committed immigration offenses;
• 1,380 individuals (5.1 percent) had committed fraud;
• 1,086 individuals (4 percent) had committed weapons offenses;
• 1,007 individuals (3.7 percent) had committed racketeering and continuing criminal enterprise offenses (including murder for hire);
• 553 individuals (2 percent) had committed sex offenses; and
• 969 individuals (3.6 percent) had committed offenses including kidnapping, murder, larceny, terrorism, escape, bribery and extortion, and rape.

Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees

At the end of FY 2019, a total of 63,725 individuals were in USMS custody.  Of those 63,725 individuals, 23,580 individuals (37 percent) were known or suspected aliens.  Of those 23,580 individuals:

• 10,296 individuals (43.7 percent) were unauthorized aliens and had orders of removal;
• 894 individuals (3.8 percent) were unlawfully present and in removal proceedings;
• 12,188 individuals (51.7 percent) were under investigation to determine alienage;
• 106 individuals (0.4 percent) were lawfully present and in removal proceedings; and
• 96 individuals (0.4 percent) were granted relief or protection from removal.

Of the 23,580 known or suspected aliens in USMS custody, 22,359 were being held for reasons other than being material witnesses.  Of those 22,359 individuals:

• 13,662 individuals (61 percent) had committed immigration offenses;
• 4,833 individuals (21.6 percent) had committed drug offenses;
• 1,205 individuals (5.4 percent) had violated conditions of supervision;
• 1,037 individuals (4.6 percent) had committed property offenses;
• 457 individuals (2 percent) had committed violent offenses;
• 422 individuals (1.9 percent) had committed weapons offenses; and
• 743 individuals (3.3 percent) were in USMS custody due to a writ, hold, or transfer, or an unlisted offense.

Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers Throughout the United States

The departments continue to progress towards establishing data collection of the immigration status of convicted aliens incarcerated in state prisons and local detention centers through the Department of Justice’s Office of Justice Programs, Bureau of Justice Statistics (BJS) and the Department of Homeland Security’s Office of Immigration Statistics.

BJS annually collects aggregate numbers of noncitizens in state and federal prisons through the National Prisoner Statistics (NPS) program.  The most recent counts, released in April 2019, were from December 31, 2017.  According to Prisoners in 2017, data from 45 states shows that an estimated 69,300 non-U.S. citizens were held in public and private state prison facilities at year-end 2017.

The Department of Justice today announced grant awards totaling more than $341 million to help fight America’s addiction crisis. Office of Justice Programs (OJP) Principal Deputy Assistant Attorney General Katharine T. Sullivan discussed this year's grant awards during a roundtable discussion of mental health and addiction issues led by Second Lady Karen Pence.

“The addiction crisis has taken an enormous toll on America’s families and communities, eroding public health, threatening public safety and claiming tens of thousands of lives year after year,” said Attorney General William P. Barr. “Through comprehensive measures taken by this administration, we have been able to curtail the opioid epidemic, but new and powerful drugs are presenting exceptional challenges that we must be prepared to meet. The Justice Department’s substantial investments in enforcement, response, and treatment will help us overcome these challenges and work towards freeing Americans from abuse and addiction.”

“If we hope to defeat an enemy as powerful, persistent and adaptable as illicit drugs, we must be at least as determined and versatile, focusing our ingenuity and resources on curbing abuse and fighting addiction,” said OJP's Principal Deputy Assistant Attorney Katharine T. Sullivan. “It was a privilege to join the Second Lady in announcing these investments, which will enable criminal justice officials and substance abuse, mental health and other medical professionals to pool their assets and bring the full weight of our public safety and treatment systems down on this epidemic that has already caused so much harm.”

Illegal drugs and illicit drug use have claimed the lives of nearly 400,000 Americans since the turn of the century. Powerful synthetic opioids like fentanyl are exacting an enormous toll on families and communities, and an emergence in the use of methamphetamines and other psychostimulants is drawing drug traffickers and driving up overdose rates. Three years ago, President Trump declared a Public Health Emergency and initiated a whole-of-government approach dedicated to ending this national tragedy. The Department of Justice has invested unprecedented levels of funding in combating the addiction crisis. The awards announced today build on those earlier investments.

Funding is made available through the Bureau of Justice Assistance (BJA), the National Institute of Justice (NIJ), the Office for Victims of Crime (OVC), and the Office of Juvenile Justice and Delinquency Prevention (OJJDP), components of OJP.

• More than $147 million under BJA’s Comprehensive Opioid, Stimulant and Substance Abuse Site-based Program will help prosecutors develop strategies to address violent crime caused by illegal opioid distribution and abuse.
• More than $57 million will fund BJA’s Adult Drug Court and Veterans Treatment Court Discretionary Grant Program, which helps states, state courts, local courts and federally recognized tribal governments implement and enhance the operations of adult drug courts and veteran treatment courts. BJA also awarded more than $12 million for related training and technical assistance.
• BJA awarded more than $28 million to fund the Harold Rogers Prescription Drug Monitoring Program, which enhances the capacity of regulatory and law enforcement agencies and public health officials to collect and analyze controlled substance prescription data and other scheduled chemical products through a centralized database administered by an authorized agency.
• BJA awarded $28 million to support the Residential Substance Abuse Treatment for State Prisoners Program, which helps states develop and implement residential substance abuse treatment programs within state and local correctional facilities, as well as detention facilities, in which inmates are incarcerated for a time sufficient to permit substance abuse treatment.
• BJA awarded $2.6 million to fund the National Community Courts Site-based and Training and Technical Assistance Initiative, which helps community court grantees and practitioners develop effective responses to low-level and non-violent offenses.
• OJJDP awarded over $19 million across 21 jurisdictions under its Family Drug Court Program to build the capacity of state and local courts, units of local government and federally recognized tribal governments to enhance existing family drug courts or implement statewide or countywide family drug court practices. The program aims to increase collaboration with substance abuse treatment and child welfare systems to ensure the provision of treatment and other services for families that improve child, parent and family outcomes.
• More than $5 million will support OJJDP’s Juvenile Drug Treatment Court Program, designed to help jurisdictions that want to establish or enhance a juvenile drug treatment court and to improve court system operations and treatment services.
• OJJDP awarded $14 million under two categories of its Mentoring Opportunities for Youth Initiative to address opioid and other substance abuse.
• Just over $4 million was awarded to support youth mentoring organizations that have a partnership with a public or private substance abuse treatment agency to provide mentoring services for youth impacted by unlawful or addictive opioid use.
• Nearly $10 million was awarded to build mentoring program capacity in targeted regions throughout the country to support statewide or regional approaches to expanding mentoring services for youth impacted by opioids.
• Nearly $9 million will fund OJJDP’s Opioid Affected Youth Initiative, which will support states, communities, tribes and nonprofits implementing programs and strategies that identify, respond to, treat and support children, youth and families impacted by the opioid epidemic.
• Another $1 million will fund specialized training to serve families impacted by opioids as part of a larger award under OJJDP’s Child Abuse Training for Judicial and Court Personnel
• OVC will fund more than $12 million under the Enhancing Community Responses to America’s Drug Crisis: Serving Our Youngest Crime Victims Program to support direct services to children and youth who are crime victims as a result of the nation's addiction crisis; and nearly $1.5 million to one organization to support training and technical assistance for the direct services grantees.
• NIJ will fund nearly $1.5 million on Research and Evaluation on Drugs and Crime, which will support rigorous applied research on evidence-based tools, protocols and policy efforts that will address drug traffickers, markets and related violence. It will also fund over $2.3 million for other related research.

A full list of the awards, organized under specific grant programs and listing awardees by state, is available here.

Additional information about FY 2020 grant awards from the Office of Justice Programs can be found online at the OJP Award Data Page.

NEW ORLEANS – United States Attorney Peter G. Strasser announced that HAROLD FOSTER, age 29, and MARC DALTON, age 30, both of New Orleans, Louisiana, were charged in a five-count indictment by a Federal Grand Jury for carjacking, use of a firearm during a crime of violence, and possession of a firearm by a convicted felon in violation of Title 18, United States Code, Sections 2119, 924, and 922.

According to court documents, FOSTER and DALTON were the offenders in two separate armed carjacking incidents in New Orleans. On April 10, 2020, the two men used firearms to forcefully take a Chevrolet Envoy. On April 12, 2020, they committed a second armed carjacking of a Mercedes C230. Both have prior felony criminal convictions. If convicted of carjacking and the firearms offenses, FOSTER and DALTON face a maximum term of life imprisonment, a fine of $250,000.00 and three (3) years of supervised release following any term of imprisonment.     

U.S. Attorney Strasser reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.  

Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws.  Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.  The United States Attorney’s Office has prosecuted this case with support from the following Project Guardian partners:  Bureau of Alcohol, Tobacco, Firearms and Explosives .  For more information about Project Guardian, please see https://www.justice.gov/usao-edla/project-guardian.

The case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.

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A federal court in Texas sentenced two former dietary supplement company executives to prison and ordered two companies to pay a combined $10.7 million in criminal forfeiture for their roles in fraudulently selling popular workout supplements, the Justice Department announced today.

On Oct. 13, 2020, U.S. District Judge Sam A. Lindsay sentenced former USPlabs CEO Jacobo Geissler, 44, of University Park, Texas, to 60 months’ imprisonment. On October 15, Judge Lindsay sentenced former USPLabs president Jonathan Doyle, 41, of Dallas, to 24 months’ imprisonment. In addition, the Court ordered each defendant to pay a criminal fine of $250,000. The Court previously sentenced USPlabs to pay $4.7 million in criminal forfeiture, and sentenced another company, SK Laboratories Inc., to forfeit $6 million in connection with the case. All of the defendants were charged in a 2015 indictment returned by a federal grand jury in the Northern District of Texas.

 “Consumers rely on dietary supplement manufacturers to accurately represent the ingredients in their products and ensure that they are safe to consume,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division.  “We will tirelessly investigate and prosecute individuals and companies that place profits before the safety of consumers.”

“Dietary supplement companies cannot be allowed to deceive their consumers and hide the fact that they are including untested ingredients in their products,” said U.S. Attorney for the Northern District of Texas Erin Nealy Cox. “We are committed to holding people who harm consumers accountable for their unconscionable behavior.”

“Consumers of dietary supplements do not expect the products they purchase to put their health at risk. Distributing supplements that jeopardize consumer health by being falsely or misleadingly labeled will not be tolerated. The FDA will continue to investigate and bring to justice those who endanger the public’s health and violate the law,” said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration.

“The defendants in this case thought they could profit off the boom in dietary supplements, while blatantly concealing the true nature of the products they were peddling,” said Assistant Special Agent in Charge Kevin Caramucci, Dallas Field Office. “IRS-CI is proud to stand with our federal partners in investigating financial crimes that bilk millions of dollars from our honest taxpayers, especially when products such as those distributed by Mr. Geissler and Mr. Doyle caused so much harm.”

The defendants each played roles in developing, manufacturing, or marketing the popular workout and weight loss supplements known as Jack3d and OxyElite Pro, which were distributed by USPlabs. In pleading guilty last year to conspiracy to introduce misbranded food into interstate commerce, Doyle and Geissler admitted that they imported substances with false and misleading labeling to avoid law enforcement and regulatory agency attention. SK Laboratories pleaded guilty to introduction of misbranded food into interstate commerce, and USPlabs pleaded guilty to conspiracy to introduce misbranded food into interstate commerce. The misbranding charges relate in part to OxyElite Pro, which was recalled in 2013 in the wake of an investigation by the Food and Drug Administration into whether the supplement caused liver injuries in consumers. The indictment alleged that the defendants sold some of their products without determining whether they would be safe to use.

Three other individuals also pleaded guilty and are expected to be sentenced in the coming months. Cyril Willson, 39, of Ralston, Nebraska, and Matthew Hebert, 42, of Dallas, pleaded guilty to introducing misbranded food into interstate commerce with the intent to defraud or mislead. Sitesh Patel, 37, of Irvine, California, the vice president of S.K. Laboratories, a California dietary supplement manufacturer, pleaded guilty to conspiracy to introduce misbranded food into interstate commerce and to the introduction of misbranded food into interstate commerce.

According to the indictment, sales of USPlabs products related to the conspiracy brought the company hundreds of millions of dollars in revenue. The indictment alleged that the defendants participated in a conspiracy to import dietary supplement ingredients from China, including the stimulant known as “DMAA,” using false certificates of analysis and false labeling, and then lied about the source and nature of those ingredients. According to the indictment, the defendants told some of their retailers and wholesalers that USPlabs products contained natural plant extracts, when in fact they contained a synthetic stimulant manufactured in a Chinese chemical factory.

The case was investigated by Special Agent Chad Medaris and former Special Agent Liam Gimon of FDA’s Office of Criminal Investigations and Special Agent Larissa Wilson of the Internal Revenue Service. The case is being prosecuted by Trial Attorneys David Sullivan, Patrick Runkle, and Raquel Toledo with the Consumer Protection Branch of the Department of Justice’s Civil Division, and Assistant United States Attorneys Errin Martin and John DelaGarza of the U.S. Attorney’s Office for the Northern District of Texas.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Texas, visit its website at https://www.justice.gov/usao-ndtx.

NEW ORLEANS, LOUISIANA – U.S. Attorney Peter G. Strasser announced that on October 13, 2020, BRIAN STEPHENS, a/k/a “Toomer,” age 35, of New Orleans, was sentenced for possessing firearms after felony convictions. 

According to court documents,  STEPHENS an armed career criminal, possessed firearms on three occasions.  On July 16, 2017, STEPHENS was stopped in a vehicle in possession of a firearm with an obliterated serial number, and then fled on foot.  On October 3, 2018,  STEPHENS discarded a stolen firearm during a foot chase with police officers.  On December 20, 2018, law enforcement officers executed a search warrant at STEPHENS’s home in Metairie and located two firearms, one of which was stolen.

U. S. District Court Judge Wendy B. Vitter sentenced STEPHENS to serve (15) fifteen years in prison, to be followed by three (3) years of supervised release.  Judge Vitter also imposed a $300 special assessment. 

Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

U.S. Attorney Strasser praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Louisiana State Police, the Federal Bureau of Investigation, the New Orleans Police Department, and the Jefferson Parish Sheriff’s Office in investigating this matter.  Assistant United States Attorney Maria M. Carboni was in charge of the prosecution.

 

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A Birmingham, Michigan, resident pleaded guilty today to conspiring to defraud the IRS and to steal from an organization receiving federal funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to court documents, from at least July 2014 through April 2018, Mathew Schwartz, the owner and operator of the law firm Legal Genius P.L.L.C., along with co-conspirators, took and distributed to other co-conspirators Detroit Police Department traffic crash reports, many of which were marked “unapproved” and not publicly available. The co-conspirators then used their access to these illegally obtained reports to solicit crash victims for personal injury lawyers, chiropractors, healthcare professionals, and other businesses.

Court documents also show from 2015 through 2017, Schwartz took steps to obstruct and impede the IRS. He diverted Legal Genius business income into his personal bank account, and paid individuals performing services for Legal Genius with checks made payable to “cash,” to assist those individuals with concealing their taxable income from the IRS and the Social Security Administration.

U.S. District Court Judge Matthew F. Leitman scheduled sentencing for Schwartz for Feb. 18, 2021. Schwartz faces a maximum of five years in prison on each count and a $250,000 fine for each of the conspiracy offenses. Schwartz also faces a period of supervised release, restitution, and monetary penalties.

Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation and the FBI, who conducted the investigation, and Tax Division Trial Attorney Mark McDonald of the Tax Division, who is prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

The Department of Justice today announced awards totaling more than $29 million to support adult and juvenile justice initiatives designed to reduce crime and recidivism associated with mental illness and co-occurring disorders.

“More and more people with mental illness are coming into contact with the criminal justice system, straining law enforcement resources and placing exceptional demands on our jails and prisons,” said Office of Justice Programs (OJP) Principal Deputy Assistant Attorney General Katharine T. Sullivan. “By supporting partnerships between justice system professionals and treatment providers, we are making substantial investments in addressing the link between mental health and public safety.”

Through OJP’s Bureau of Justice Assistance (BJA), the Justice and Mental Health Collaboration Program is providing $18.6 million to support innovative cross-system collaboration for individuals with mental illnesses or co-occurring mental health and substance abuse disorders who come into contact with the justice system. The program funds collaborative projects between criminal justice and mental health partners to plan, implement or expand a justice and mental health program.

Through BJA’s Collaborative Mental Health and Anti-Recidivism Initiative, nearly $900,000 is being provided to the Wisconsin Department of Corrections to establish a statewide pilot program that partners with the appropriate agencies within the state. The initiative will establish a collaborative prison anti-recidivism effort to provide comprehensive care before, during, and after incarceration for persons with serious mental illness, with a goal of reducing recidivism.

Through BJA’s Improving Justice and Mental Health Collaboration - Training and Technical Assistance to Grantees and the Field Program, $4.6 million is being awarded to the Council of State Governments in Lexington, Kentucky, to provide training and technical assistance to law enforcement and other criminal justice agencies and their partner mental health and substance abuse authorities to reduce crime and recidivism associated with people with mental illnesses.

OJP’s Office of Juvenile Justice and Delinquency Prevention is providing nearly $5 million through the Juvenile Justice and Mental Health Collaboration Program to improve outcomes for youth with mental illness or co-occurring mental health and substance abuse disorders who come into contact with the juvenile justice system. The funding may be used for mental health courts, specialized training and collaborative efforts between juvenile justice and mental health agencies to promote public safety by offering mental health treatment services and substance abuse treatment services.

For a complete list of grant programs, amounts awarded, and recipients, click here.

Additional information about these awards and other FY 2020 grant awards made by the Office of Justice Programs can be found online at the OJP Awards Data webpage.

The Office of Justice Programs, directed by Principal Deputy Assistant Attorney General Katharine T. Sullivan, provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, assist victims and enhance the rule of law by strengthening the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

A federal court has ordered an individual and 5 companies to stop engaging in a technical-support fraud scheme that is alleged to have defrauded hundreds of elderly and vulnerable U.S. victims, the Department of Justice announced today. 

The temporary restraining order issued by the court follows the filing of a complaint by the United States, which seeks both preliminary and permanent injunctions to prevent the defendants from further victimizing U.S. consumers.  The complaint filed by the Civil Division’s Consumer Protection Branch and the U.S. Attorney’s Office for the Southern District of Florida was coordinated through the Department’s Transnational Elder Fraud Strike Force, which Attorney General Barr established last year to combat foreign fraud schemes targeting older Americans.

According to the complaint filed today in the U.S. District Court for the Southern District of Florida, the defendants’ scheme contacted U.S. consumers via internet pop-up messages that falsely appeared to be security alerts from Microsoft or another well-known company.  The pop-up messages fraudulently claimed that the consumer’s computer was infected by a virus, purported to run a scan of the consumer’s computer, falsely confirmed the presence of a virus and malware, and then provided a toll-free number to call for assistance.  When victims called the toll-free number, they were connected to India-based call centers participating in the fraud scheme.  Call center workers asked victims to give them remote access to their computers and told victims that they detected viruses or other malware on their computers.  Eventually, the call center workers would falsely diagnose non-existent problems and ask victims to pay hundreds of dollars for unnecessary services and software. 

In an unprecedented collaborative effort, the Central Bureau of Investigation (CBI) in India took actions in parallel with today’s filing against corporate and individual participants in the scheme located in Delhi, Noida, Gurgaon, and Jaipur.  CBI, India’s federal investigative agency, took note of the international fraud being perpetrated by these companies operating from various locations in India.  CBI registered a criminal case against five companies involved in the scheme and conducted an investigation to identify and locate the perpetrators of the crime.  Coordinated search operations were conducted at the offices of these companies and at the residences of the directors of the entities.  According to CBI, incriminating digital evidence related to the scheme was collected and seized during the searches.

“Today’s filing reflects the Department of Justice’s continuing commitment to use all tools available to protect seniors from fraud, especially schemes perpetrated by transnational criminal organizations,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Civil Division.  “The Department of Justice sincerely appreciates the CBI’s efforts to disrupt and prosecute technical-support fraud, government imposter fraud, and all other schemes directed at the American public.”  

“Fraud schemes that target the most vulnerable members of our society, including the elderly, will be not be tolerated in our district,” said U.S Attorney Ariana Fajardo-Orshan for the Southern District of Florida.  “Our Office has and will continue to protect consumers through both civil and criminal prosecutions.  We urge consumers not to click on any pop-up messages or links that appear on their computer devices claiming that the devices are infected by viruses and at risk of irreversible damage.  Consumers should delete those pop-ups and instead contact their software provider or local computer consultant directly.”

“The FBI works with its local, state, federal and international partners to combat technical fraud schemes,” said Assistant Director of the International Operations Division Charles Spencer. “We will continue to collaborate with law enforcement partners in order to hold criminals who engage in this type of deceptive activity accountable.  However, we cannot do this alone, therefore we encourage anyone who suspects that they may be a victim of internet related fraud to report it to the FBI’s Internet Crime Complaint Center.”

“Postal Inspectors are prepared to defend the U.S. Mail from anyone who attempts to use it to defraud American citizens,” said Inspector-In-Charge Delany De Leon-Colon of the U.S. Postal Inspection Service’s Criminal Investigations Group.  “Through our partnerships with federal law enforcement agencies and our international counterparts, we’re able to extend our defense of the Nation’s mail across the globe.  Today’s action marks a strong step forward towards stopping these ruthless scammers from using the mail to further their scheme,” said De Leon-Colon.

The complaint alleges that Michael Brian Cotter, 59, of Glendale, California, knowingly provided U.S. support for India-based accomplices in furtherance of the scheme.  Cotter facilitated the scheme through several companies, including Singapore registered Global Digital Concierge Pte. Ltd., formerly known as Tech Live Connect Pte. Ltd., Nevada registered companies Sensei Ventures Incorporated and NE Labs Inc., New York registered Kevisoft LLC, and United Kingdom registered Kevisoft UK LTD.  The temporary restraining order issued by the court today dismantles these defendants’ U.S. infrastructure, such as websites and payment processing relationships, and prohibits the defendants from continuing to facilitate the alleged scheme.

According to law enforcement officials with CBI, “as India’s premier federal investigative agency, CBI reaffirms its commitment for continued close collaboration with the FBI and promoting cooperation with U.S. law enforcement agencies on cybercrime and cyber security.  CBI has been making concerted efforts to identify and rapidly dismantle any network of transnational cyber frauds operated out of India. This case further reinforces our continued commitment towards safer cyber space for all citizens globally.” 

The filed complaint asserts that, since at least 2011, Cotter has worked with co-conspirators in India to operate the alleged scheme, including registering website domains, setting up shell companies, and entering into relationships with banks and payment processors to facilitate the collection of funds from victims of the scheme.  Individual victims are alleged to have reported paying hundreds to thousands of dollars to the scheme for unwanted and unnecessary technical-support services.

The complaint seeks an injunction under the Anti-Fraud Injunction Statute immediately shutting down the defendants’ role in the fraudulent schemes in order to protect U.S. victims from further harm.  The injunctions sought by the United States would authorize the immediate shutdown of websites used to contact and collect payments from victims, and would enjoin Cotter and the corporate defendants from engaging in telemarketing activity related to computer technical support or accepting payments related to any purported technical support service.

The widespread fraud allegedly committed in this case was brought to the Transnational Elder Fraud Strike Force’s attention by Microsoft, which often is impersonated by those engaged in technical-support fraud schemes. 

Acting Assistant Attorney General Clark thanked the Postal Inspection Service for its investigation of the case, and the FBI’s Economic Crimes Unit and Legal Attaché’s Office in Delhi, India, for their substantial coordination efforts.  He also expressed appreciation to Microsoft for apprising the Strike Force of the alleged offenses.  The U.S. case is being handled by Trial Attorney Ann Entwistle of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney James Weinkle of the U.S. Attorney’s Office in the Southern District of Florida.

The claims made in the complaint are allegations only, and there has been no determination of liability.

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act  (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors.  In January 2020, the department designated “Preventing and Disrupting Transnational Elder Fraud” as an Agency Priority Goal, one of its top four priorities.  Later, in March 2020, the department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep.  The department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. 

The department’s extensive and broad-based efforts to combat elder fraud seek to halt the billions of dollars senior lose to fraud schemes, including those perpetrated by transnational criminal organizations.  The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).  This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps.  Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis.  Reporting is the first step.  Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.  The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time.  English, Spanish and other languages are available.

The Department of Justice is reminding members of the public to be vigilant against fraudsters who are using the COVID-19 pandemic to exploit American consumers and organizations and to cheat disaster relief programs.  In particular, the department is warning the public about scams perpetrated through websites, social media, emails, robocalls, and other means that peddle fake COVID-19 vaccines, tests, treatments, and protective equipment, and also about criminals that fabricate businesses and steal identities in order to defraud federal relief programs and state unemployment programs. 

“A pandemic is a time when people should come together to pursue the common good, but sadly there are some who instead use it as an opportunity to deceive and thieve,” said Deputy Attorney General Jeffrey A. Rosen.  “From the outset, the Justice Department has acted quickly to detect, investigate, and prosecute wrongdoing relating to this crisis.  Pursuing these criminals and deterring would-be bad actors will remain a priority for the foreseeable future.”

At the direction of Attorney General William Barr on March 16, 2020, the Department of Justice mobilized to safeguard Americans from coronavirus-related fraud and other illegal activity.  On March 18, Deputy Attorney General Rosen instructed the National Center for Disaster Fraud (NCDF) to take coronavirus-related complaints from the public and facilitate information sharing among law enforcement partners and regulators, like the Federal Trade Commission and the Federal Drug Administration.  The Deputy Attorney General also tasked U.S. Attorneys to appoint Coronavirus Fraud Coordinators in each judicial district, and many U.S. Attorneys also established state-wide and regional task forces to improve federal, state, and local law enforcement coordination.  On March 24, following the President’s invocation of his authorities under the Defense Production Act, the Attorney General formed the DOJ Hoarding & Price Gouging Task Force, which is a nationwide effort to deter, detect, and prosecute hoarding and profiteering in the sale of health and medical resources essential to combatting the spread of COVID-19.  Memoranda from the Attorney General and Deputy Attorney General prescribing these measures may be found at www.justice.gov/coronavirus/DOJresponse.

To date, the NCDF has received more than 76,000 tips concerning COVID-19-related wrongdoing.  Similarly, the FBI’s Internet Crime Complaint Center has also received more than 20,000 tips regarding suspicious websites and media postings.  These tips, as well as reports made directly to the offices of U.S. Attorneys, FBI field offices, and other law enforcement agencies, have led to federal law enforcement opening hundreds of investigations.

The department charged its first COVID-19-related fraud case on March 25, and since then, the department has filed criminal charges in 33 cases across the country involving scam vaccines, treatments, or testing or price gouging in the sale of scarce medical supplies.  Additionally, the department has initiated civil actions in 11 cases to enjoin fraudulent coronavirus schemes targeting consumers, including cases against defendants marketing ozone gas, silver-ion solution, and bleach-based solution as treatments.

The department has also focused on prosecuting bad actors who have exploited federal relief programs enacted on March 27 under the CARES Act that are intended to assist hard-hit Americans and businesses.  In particular, the department has charged 65 defendants in 50 separate cases to date that relate to the Paycheck Protection Program (PPP).  The total intended loss to the PPP in those cases is more than $227 million.  The defendants in these cases include those brazen enough to submit PPP loan applications for fabricated businesses named after “Game of Thrones” characters and to spend PPP loan proceeds on exotic cars, boats, and expensive jewelry.  

The department has coordinated closely with the Department of Labor Office of Inspector General (DOL-OIG) and various other federal law enforcement agencies to stand up the U.S. Department of Justice National Unemployment Insurance Fraud Task Force.

(See /media/1093226/dl?inline.)  This task force is charged with investigating numerous fraud schemes targeting the unemployment insurance programs of state workforce agencies, which have been distributing additional Pandemic Unemployment Assistance funds provided for under the CARES Act.  To date, the department has charged fraud or money laundering in 12 cases relating to unemployment insurance, and has also been supporting DOL-OIG’s efforts to mitigate the threats that transnational criminal organizations and other identity thieves continue to pose to the important benefits programs on which unemployed Americans rely.  The department’s leadership has been crucial in organizing and focusing the whole of federal law enforcement on this important issue, including by leveraging the capabilities and resources of the International Organized Crime Intelligence and Operations Center and by hiring additional prosecutors to investigate and charge these schemes.

Moving forward, the department also is concerned about, and will aim to deter and prevent, attempts by wrongdoers to prey upon potential victims by leveraging news about anticipated approval of a COVID-19 vaccine or about the potential enactment of new disaster relief bills that extend or expand upon CARES Act relief.   

The department encourages the public to continue to report wrongdoing relating to the pandemic to the NCDF and to remain vigilant against bad actors looking to exploit this national emergency.  To report a scam relating to COVID-19, or if you have information on hoarding or price gouging of critical supplies necessary to respond to the spread of COVID-19, you can report it without leaving your home by calling the NCDF Hotline at 866-720-5721 or via the NCDF Web Complaint Form, available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

Medical device maker Merit Medical Systems Inc. (MMSI), of South Jordan, Utah, has agreed to pay $18 million to resolve allegations that the company caused the submission of false claims to the Medicare, Medicaid, and TRICARE programs by paying kickbacks to physicians and hospitals to induce the use of MMSI products, the Department of Justice announced today. 

“Paying kickbacks to doctors in exchange for referrals undermines the integrity of federal healthcare programs,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Department of Justice’s Civil Division.  “When medical devices are used in surgical procedures, patients deserve to know that their device was selected based on quality of care considerations and not because of improper payments from manufacturers.”

The Anti‑Kickback Statute prohibits offering or paying anything of value to induce the referral of items or services covered by Medicare, Medicaid, TRICARE, and other federal healthcare programs.  The statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives.

The settlement announced today resolves allegations that, for over six years, MMSI engaged in a kickback scheme to pay physicians, medical practices, and hospitals to induce their use of MMSI products in medical procedures performed on Medicare, Medicaid, and TRICARE beneficiaries.  Under the guise of an internal program known as the Local Advertising Program, MMSI allegedly provided remuneration to healthcare providers in the form of millions of dollars in free advertising assistance, practice development, practice support, and purported unrestricted “educational” grants to induce the healthcare providers to purchase and use a wide variety of MMSI products.  These products included MMSI’s EmboSphere devices, which generally were used for uterine fibroid embolization procedures, and its QuadraSphere devices, which generally were used for other types of embolization procedures.  Despite publicly claiming that its financial assistance was designed to “increase the awareness” of medical treatments, MMSI allegedly provided it only to select healthcare providers to reward past sales, induce future sales, and steer business to MMSI and away from MMSI’s competitors.  The government alleged that MMSI disregarded numerous warnings that its conduct may violate the Anti-Kickback Statute, including warnings from MMSI’s own Chief Compliance Officer, during the course of the alleged kickback scheme.  Of the $18 million to be paid by MMSI, $15.21 million will be returned to the federal government, and a total of $2.79 million will be returned to individual states, which jointly funded claims involving MMSI devices that were submitted to state Medicaid programs.

“Merit Medical provided millions of dollars of advertising and other marketing support to healthcare providers to induce sales of its products,” Attorney for the United States Rachael A. Honig.  “Unlawful kickbacks like these distort the market for medical devices upon which our healthcare system depends.  For years, Merit Medical ignored internal warnings and refused to abide by the rules that apply to every other medical device company.  With today’s settlement, they are paying the price for that refusal.”

 Along with the civil settlement, MMSI entered into a five-year Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General (HHS-OIG).  The CIA requires MMSI to hire a compliance expert and an independent review organization to analyze its systems and transactions.  “No health care company’s compliance program can be effective without commitment and support from the company’s leaders,” said HHS-OIG Chief Counsel Gregory Demske.  “As happened here, ignoring your compliance officer’s concerns about payments to referral sources is a great way to become a defendant in a kickback case.”

The allegations were originally made in a lawsuit filed under the whistleblower provisions of the False Claims Act by Charles J. Wolf, M.D., the former Chief Compliance Officer of MMSI.  The act permits private parties to sue for false claims on behalf of the United States and to share in any recovery.  Dr. Wolf will receive $2.65 million from the federal share of the settlement.

The government’s pursuit of this lawsuit illustrates the government’s emphasis on combating healthcare fraud.  One of the most powerful tools in this effort is the False Claims Act.  Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).   

The settlement with Merit Medical was the result of a coordinated effort among the Commercial Litigation Branch of the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of New Jersey, with investigative support by HHS-OIG and the Federal Bureau of Investigation. 

The lawsuit is captioned United States ex rel. Wolf v. Merit Medical Systems, Inc., No. 2:16-cv-01855-CCC-MF (D.N.J.).  The claims resolved by the settlement are allegations only and there has been no determination of liability.

At a roundtable with law enforcement in Albuquerque today, Attorney General William P. Barr announced updates on Operation Legend, which was expanded to Albuquerque on July 22, 2020.

Since Operation Legend’s launch in July 2020, more than 5,000 arrests – including approximately 247 for homicide – have been made; more than 2,000 firearms have been seized; and nearly 22 kilos of heroin, more than 15 kilos of fentanyl (enough to deliver more than 7.5 million fatal doses), more than 130 kilos of methamphetamine, more than 28 kilos of cocaine, and more than $7.3 million in drug proceeds have been seized.

Of the more than 5,000 individuals arrested, approximately 1,057 have been charged with federal offenses. Approximately 568 of those defendants have been charged with firearms offenses, while approximately 411 have been charged with drug-related crimes. The remaining defendants have been charged with various offenses.

The Attorney General launched the operation as a sustained, systematic, and coordinated law enforcement initiative in which federal law enforcement agencies work in conjunction with state and local law enforcement officials to fight violent crime.

Breakdown of Operation Legend charges:

The initiative, which was first launched first in Kansas City, MO., on July 8, 2020, is named in honor of four-year-old LeGend Taliferro, who was shot and killed while he slept early in the morning of June 29 in Kansas City. The operation was subsequently expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on August 6, 2020; and to Indianapolis on August 14, 2020. A breakdown of the federal charges in each district is below. 

Kansas City, MO.

136 defendants have been charged with federal crimes outlined below.

• 49 defendants have been charged with narcotics-related offenses;
• 76 defendants have been charged with firearms-related offenses; and
• 11 defendants have been charged with other violent crimes.

Chicago, IL.

176 defendants have been charged with federal crimes outlined below.

• 40 defendants have been charged with narcotics-related offenses;
• 130 defendants have been charged with firearms-related offenses; and
• 6 defendants have been charged with other violent crimes.

Albuquerque, NM.

113 defendants have been charged with federal crimes outlined below.

• 47 defendants have been charged with narcotics-related offenses;
• 56 defendants have been charged with firearms-related offenses; and
• 10 defendants have been charged with other violent crimes.

Cleveland, OH.

94 defendants have been charged with federal crimes outlined below.

• 54 defendants have been charged with narcotics-related offenses;
• 36 defendants have been charged with firearms-related offenses; and
• 4 defendants have been charged with other violent crimes.

Detroit, MI.

96 defendants have been charged with federal offenses outlined below. 

• 31 defendants have been charged with narcotics-related offenses;
• 62 defendants have been charged with firearms-related offenses; and
• 3 defendants have been charged with other violent crimes.

Milwaukee, WI.

54 defendants have been charged with federal crimes outlined below.

• 25 defendants have been charged with narcotics-related offenses;
• 25 defendants have been charged with firearms-related offenses; and
• 4 defendant has been charged with other violent crimes.

St. Louis, MO.

274 defendants have been charged with federal crimes.

• 125 defendants have been charged with narcotics-related offenses;
• 125 defendants have been charged with firearms-related offenses; and
• 24 defendants have been charged with other violent crimes.

Memphis, TN.

51 defendants have been charged with federal offenses.

• 30 defendants have been charged with narcotics-related offenses;
• 14 defendants have been charged with firearms-related offenses; and
• 7 defendants have been charged with other violent crimes.

Indianapolis, IN.

65 defendants have been charged with federal crimes outlined below.

• 10 defendants have been charged with narcotics-related offenses;
• 46 defendants have been charged with firearms-related offenses; and
• 9 defendants have been charged with other violent crimes.

Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend.  Today’s case is out of the Northern District of Ohio.  Operation Legend launched in Cleveland on July 29, 2020, in response to the city facing increased homicide and non-fatal shooting rates.

A Cleveland man has been charged with federal firearms and drug trafficking offenses after an Operation Legend taskforce conducted surveillance and executed a search warrant at the defendant’s residence and seized multiple firearms and illicit drugs. 

“Trafficking drugs by itself is a dangerous enterprise, but mix in several loaded firearms and some high-powered rifles, and the result is a deadly combination that could hurt many people in more ways than one,” said U.S. Attorney Justin Herdman.  “I want to thank law enforcement agents with DEA and Cleveland Police for their collaborative work to identify this individual and remove him from the community.”

Angel Chacon, 37, of Cleveland, was charged with one count of possession with intent to distribute a controlled substance and one count of possessing a firearm in furtherance of a drug trafficking crime.

According to court documents, law enforcement agents working as part of an Operation Legend taskforce executed a search warrant at Chacon’s residence after observing drug trafficking activity and executing a controlled buy.

During the search of the property, agents allegedly located the following items: cocaine, marijuana, drug trafficking paraphernalia and supplies, $5,000, a 9mm pistol, 55 rounds of 9mm ammunition, a .22 caliber rifle, 165 rounds of .22 caliber rifle ammunition, a .17 caliber rifle with five rounds of .17 caliber ammunition, a custom .223 caliber rifle with two magazines, 59 rounds of .223 caliber ammunition and two bags of miscellaneous ammunition and magazines.

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

Background on Operation Legend

Since its inception, Operation Legend has yielded more than 3,500 local, state, and federal arrests, with more than 800 defendants charged with federal crimes.

President Trump promised to assist America’s cities that have been plagued by violence.  In July, Attorney General William P. Barr announced the launch of Operation Legend, a sustained, systematic and coordinated law enforcement initiative across all federal law enforcement agencies working in conjunction with state and local law enforcement officials to fight violent crime in cities across America that were experiencing an uptick in violence.  Operation Legend is named after four-year-old LeGend Taliferro, who was shot and killed on June 29th in Kansas City, Missouri, while asleep in his home.

Operation Legend was launched in Kansas City, Mo., on July 8, 2020, and expanded to Chicago and Albuquerque on July 22, 2020; to Cleveland, Detroit, and Milwaukee on July 29, 2020; to St. Louis and Memphis on Aug. 6, 2020; and to Indianapolis on Aug. 14, 2020.  As part of Operation Legend, Attorney General Barr has directed federal agents from the FBI, U.S. Marshals Service, DEA and ATF to surge resources to these cities to help state and local officials fighting violent crime.  The Department of Homeland Security is also contributing agents to these efforts in St. Louis.

Today, the Justice Department announced it has charged more than 14,200 defendants with firearms-related crimes during Fiscal Year (FY) 2020, despite the challenges of COVID-19 and its impact on the criminal justice process.

These cases have been a department priority since November 2019 when Attorney General William P. Barr announced his commitment to investigating, prosecuting, and combatting gun crimes as a critical part of the department’s anti-violent crime strategy.  These firearms-related charges are the result of the critical law enforcement partnership between U.S. Attorneys’ Offices and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), led by Acting Director Regina Lombardo, who has made firearms-related investigations a priority.

“The number one priority of government is to keep its citizens safe,” said Attorney General Barr.  “By preventing firearms from falling into the hands of individuals who are prohibited from having them, we can stop violent crime before it happens.  Violating federal firearms laws is a serious crime and offenders face serious consequences.  The Justice Department is committed to investigating and prosecuting individuals who illegally buy, sell, use, or possess firearms.  Reducing gun violence requires a coordinated effort, and we could not have charged more than 14,000 individuals with firearms-related crimes without the hard work of the dedicated law enforcement professionals at the ATF, our U.S. Attorneys’ Offices across the country, and especially all of our state and local law enforcement partners.”

“Protecting the public from violent crime involving firearms is at the core of ATF’s mission,” commented ATF Acting Director Regina Lombardo.  “Every day the men and women of ATF pursue and investigate those who use firearms to commit violent crimes in our communities, many of whom are prohibited from possessing firearms from previous convictions.  ATF, in collaboration with the U.S. Attorneys’ Offices across the nation, is committed to bringing these offenders to justice for their egregious and violent criminal acts.”

Under federal law, it is illegal to possess a firearm if you fall into one of nine prohibited categories including being a felon, illegal alien, or unlawful user of a controlled substance.  Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime.  It is also illegal to purchase – or even to attempt to illegally purchase - firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others.  Lying on ATF Form 4473, which is used to lawfully purchase a firearm, is also a federal offense.  The department is committed to prosecuting these firearms offenses as well as using all modern technologies available to law enforcement such as the National Integrated Ballistic Information Network, known as NIBIN, to promote gun crime intelligence.  Keeping illegal firearms out of the hands of violent criminals will continue to be a priority of the Department of Justice and we will use all appropriate, available means to keep the law abiding people of this country safe from gun crime. 

For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.      

The Department of Justice (DOJ) today announced the protection activities undertaken by the FBI to counter the threat posed by Unmanned Aircraft Systems (UAS) at certain National Special Security Events (NSSEs), Special Events Assessment Rating (SEAR) events, and select mass gatherings throughout the country over the past fiscal year.  DOJ and the FBI are publicizing protection activities in an effort to deter careless and criminal UAS operators in light of an anticipated increase in enforcement activity in response to the misuse of UAS. 

The Preventing Emerging Threats Act of 2018 (codified at 6 U.S.C. § 124n) provides DOJ a tailored grant of authority for authorized DOJ components such as the FBI to take appropriate and lawful action against unmanned aircraft or unmanned aircraft systems that threaten the safety and security of the public, covered facilities and assets, and DOJ missions, consistent with the Constitution, applicable federal laws and regulations, and department policy. 

“Drones are an amazing technology that offer great commercial promise, but they also present a serious challenge to ensuring public safety,” said Deputy Attorney General Jeffrey A. Rosen.  “As events return during and after this global pandemic, we will be out in force where needed, collaborating with our partners from the Federal Aviation Administration and the Department of Homeland Security, to protect the public from unsafe, careless, or malicious drone operators.”

From Oct. 1, 2019, to Sept. 30, 2020, the FBI has provided counter-UAS support at dozens of events, including national level sporting events such as Super Bowl LIV in Miami, the 2019 World Series, and the 2020 Rose Bowl Game, as well as at other major events that draw large crowds like Washington, D.C.’s A Capitol Fourth and New York City’s New Year’s celebration.  During this period, the FBI has detected over 200 UAS unlawfully flying in national security airspace restricted by the Administrator of the Federal Aviation Administration at such events, and has taken corrective action. 

“The FBI is heavily invested in ensuring public safety at special events and we are engaged, with our federal, state, and local partners, to ensure UAS do not pose a threat to these events,” said FBI Executive Assistant Director Terry Wade.  “The FBI remains committed to identifying, investigating, and disrupting the careless or criminal use of UAS.” 

Operators who violate the national security-related flight restrictions put in place to protect these events risk facing criminal charges.  This past fiscal year authorities arrested and charged drone operators with violating a national defense airspace Temporary Flight Restriction (TFR), in violation of 49 U.S.C. § 46307.  For example, in the lead up to Super Bowl LIV, the U.S. Attorney’s Office for the Southern District of Florida charged two drone operators with flying drones in national defense airspace. 

In addition, the FBI has seized about a dozen UAS based on violations of flight restrictions at events during fiscal year 2020.

The department is particularly committed to preventing and prosecuting the increased use of drones for criminal purposes.  Last October, Eric Lee Brown was sentenced to 48 months in federal prison after attempting to use a drone to deliver marijuana to a state prison in Georgia.  In March of this year, the U.S. Attorney’s Office for the District of New Jersey announced charges against two men for conspiring to smuggle contraband into a federal correctional facility using drones.  These two cases illustrate the department’s effort to prevent, deter, and prosecute the use of drones to smuggle contraband into federal and state prisons. 

The department is also committed to prosecuting drone operators who use unmanned aircraft to facilitate violence.  The five-year prison sentence imposed last month on Jason Muzzicato, who used an unregistered drone to drop improvised explosive devices in the Eastern District of Pennsylvania, among other offenses, reflects this commitment.

On Sept. 28, 2020 the U.S. Attorney for the District of Oregon announced that two individuals were charged with flying a drone within national defense airspace during civil disorder events in Portland, Oregon. 

The department has expanded its use of counter-UAS technology and anticipates that, if violations still occur, its prosecutions will continue to increase.  As UAS become more common in our everyday lives, and offer many potential benefits, the need to operate UAS responsibly is paramount.

We, the undersigned, support strong encryption, which plays a crucial role in protecting personal data, privacy, intellectual property, trade secrets and cyber security.  It also serves a vital purpose in repressive states to protect journalists, human rights defenders and other vulnerable people, as stated in the 2017 resolution of the UN Human Rights Council[1].  Encryption is an existential anchor of trust in the digital world and we do not support counter-productive and dangerous approaches that would materially weaken or limit security systems. 

Particular implementations of encryption technology, however, pose significant challenges to public safety, including to highly vulnerable members of our societies like sexually exploited children. We urge industry to address our serious concerns where encryption is applied in a way that wholly precludes any legal access to content.  We call on technology companies to work with governments to take the following steps, focused on reasonable, technically feasible solutions:

• Embed the safety of the public in system designs, thereby enabling companies to act against illegal content and activity effectively with no reduction to safety, and facilitating the investigation and prosecution of offences and safeguarding the vulnerable;
• Enable law enforcement access to content in a readable and usable format where an authorisation is lawfully issued, is necessary and proportionate, and is subject to strong safeguards and oversight; and
• Engage in consultation with governments and other stakeholders to facilitate legal access in a way that is substantive and genuinely influences design decisions.

IMPACT ON PUBLIC SAFETY

Law enforcement has a responsibility to protect citizens by investigating and prosecuting crime and safeguarding the vulnerable. Technology companies also have responsibilities and put in place terms of service for their users that provide them authority to act to protect the public.  End-to-end encryption that precludes lawful access to the content of communications in any circumstances directly impacts these responsibilities, creating severe risks to public safety in two ways:

1. By severely undermining a company’s own ability to identify and respond to violations of their terms of service. This includes responding to the most serious illegal content and activity on its platform, including child sexual exploitation and abuse, violent crime, terrorist propaganda and attack planning; and
2. By precluding the ability of law enforcement agencies to access content in limited circumstances where necessary and proportionate to investigate serious crimes and protect national security, where there is lawful authority to do so.

Concern about these risks has been brought into sharp focus by proposals to apply end-to-end encryption across major messaging services.  UNICEF estimates that one in three internet users is a child.  The WePROTECT Global Alliance – a coalition of 98 countries, 39 of the largest companies in the global technology industry, and 41 leading civil society organisations – set out clearly the severity of the risks posed to children online by inaccessible encrypted services in its 2019 Global Threat Assessment: “Publicly-accessible social media and communications platforms remain the most common methods for meeting and grooming children online. In 2018, Facebook Messenger was responsible for nearly 12 million of the 18.4 million worldwide reports of CSAM [child sexual abuse material to the US National Center for Missing and Exploited Children (NCMEC)]. These reports risk disappearing if end-to-end encryption is implemented by default, since current tools used to detect CSAM [child sexual abuse material] do not work in end-to-end encrypted environments.”[2]  On 3 October 2019 NCMEC published a statement on this issue, stating that: “If end-to-end encryption is implemented without a solution in place to safeguard children, NCMEC estimates that more than half of its CyberTipline reports will vanish.”[3]  And on 11 December 2019, the United States and European Union (EU) issued a joint statement making clear that while encryption is important for protecting cyber security and privacy: “the use of warrant-proof encryption by terrorists and other criminals – including those who engage in online child sexual exploitation – compromises the ability of law enforcement agencies to protect victims and the public at large.”[4]

RESPONSE

In light of these threats, there is increasing consensus across governments and international institutions that action must be taken: while encryption is vital and privacy and cyber security must be protected, that should not come at the expense of wholly precluding law enforcement, and the tech industry itself, from being able to act against the most serious illegal content and activity online.

In July 2019, the governments of the United Kingdom, United States, Australia, New Zealand and Canada issued a communique, concluding that: “tech companies should include mechanisms in the design of their encrypted products and services whereby governments, acting with appropriate legal authority, can gain access to data in a readable and usable format. Those companies should also embed the safety of their users in their system designs, enabling them to take action against illegal content.”[5]  On 8 October 2019, the Council of the EU adopted its conclusions on combating child sexual abuse, stating: “The Council urges the industry to ensure lawful access for law enforcement and other competent authorities to digital evidence, including when encrypted or hosted on IT servers located abroad, without prohibiting or weakening encryption and in full respect of privacy and fair trial guarantees consistent with applicable law.”[6] 

The WePROTECT Global Alliance, NCMEC and a coalition of more than 100 child protection organisations and experts from around the world have all called for action to ensure that measures to increase privacy – including end-to-end encryption – should not come at the expense of children’s safety[7].

CONCLUSION

We are committed to working with industry to develop reasonable proposals that will allow technology companies and governments to protect the public and their privacy, defend cyber security and human rights and support technological innovation.  While this statement focuses on the challenges posed by end-to-end encryption, that commitment applies across the range of encrypted services available, including device encryption, custom encrypted applications and encryption across integrated platforms.  We reiterate that data protection, respect for privacy and the importance of encryption as technology changes and global Internet standards are developed remain at the forefront of each state’s legal framework.  However, we challenge the assertion that public safety cannot be protected without compromising privacy or cyber security.  We strongly believe that approaches protecting each of these important values are possible and strive to work with industry to collaborate on mutually agreeable solutions.

SIGNATORIES

Rt Hon Priti Patel MP, United Kingdom Secretary of State for the Home Department

William P. Barr, Attorney General of the United States

The Hon Peter Dutton MP, Australian Minister for Home Affairs

Hon Andrew Little MP, Minister of Justice, Minister Responsible for the GCSB, Minister Responsible for the NZSIS

The Honourable Bill Blair, Minister of Public Safety and Emergency Preparedness

India

Japan

11 October 2020

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[1] https://documents-dds-ny.un.org/doc/UNDOC/LTD/G17/073/06/PDF/G1707306.pdf?OpenElement

[2] WePROTECT Global Alliance, 2019 Global Threat Assessment, available online at: <https://static1.squarespace.com/static/5630f48de4b00a75476ecf0a/t/5deecb0fc4c5ef23016423cf/1575930642519/FINAL+-+Global+Threat+Assessment.pdf>,

[3] http://www.missingkids.org/blog/2019/post-update/end-to-end-encryption

[4] https://www.consilium.europa.eu/en/press/press-releases/2019/12/11/joint-eu-us-statement-following-the-eu-us-justice-and-home-affairs-ministerial-meeting/

[5] https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/822818/Joint_Meeting_of_FCM_and_Quintet_of_Attorneys_FINAL.pdf

[6] https://data.consilium.europa.eu/doc/document/ST-12862-2019-INIT/en/pdf

[7] http://www2.paconsulting.com/rs/526-HZE-833/images/WePROTECT%202019%20Global%20Threat%20Assessment%20%28FINAL%29.pdf?_ga=2.109176709.1865852339.1591953966-1877278557.1591953966, http://www.missingkids.org/blog/2019/post-update/end-to-end-encryption, https://www.nspcc.org.uk/globalassets/documents/policy/letter-to-mark-zuckerberg-february-2020.pdf

Assistant Attorney General for Civil Rights Eric Dreiband and Acting U.S. Attorney Michael Sherwin for the District of Columbia issued the following statements:

“Yesterday, in the heart of our nation’s capital, Washington, D.C., a federal district court ruled that the fundamental right of all Americans to worship endures during our COVID-19 response,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division.  “Last night’s decision is a victory for religious liberty and the rule of law. In an overwhelming vote, Congress passed the Religious Freedom Restoration Act in order to guarantee our nation’s first freedom is always upheld. The Department of Justice is grateful the court ruled preliminarily with this in mind and is grateful that members of Capitol Hill Baptist Church will be able to worship together on Sunday.”

“I am gratified that the court upheld the right of worshipers in the District of Columbia to exercise their First Freedom of religious exercise, in a safe manner,” said Acting U.S. Attorney Michael Sherwin for the District of Columbia.

Background

On Oct. 2, 2020, the Justice Department filed a statement of interest in federal district court in Washington D.C., arguing that the Religious Freedom Restoration Act (RFRA) — a 1993 federal law signed by President Clinton — and the First Amendment to the U.S. Constitution made the District of Columbia’s restrictions on Capitol Hill Baptist church illegal.

On Oct. 9, 2020, the federal court — after hearing oral argument and “review[ing] the statement of interest submitted by the United States” — 

granted a preliminary injunction motion .  In issuing its injunction, the court held that Capitol Hill Baptist “Church has shown that it is likely to succeed in proving that the District’s actions impose a substantial burden on its exercise of religion.  For its part, the District has not shown that it is likely to prove a compelling interest in prohibiting the Church from holding outdoor worship services with appropriate precautions, or that its restrictions are the least restrictive means available to achieve its public health objectives.”

The Justice Department’s statement of interest was filed in Capitol Hill Baptist Church v. Bowser, a case challenging the District of Columbia’s refusal to allow outdoor worship because of the city’s COVID-19 restrictions. The suit challenges the permit denial under the Free Speech and Free Exercise Clause of the First Amendment, and the Religious Freedom Restoration Act (RFRA). The suit alleges that while places of worship are limited to 100 people at outdoor worship services, these limits do not apply to, among other things, outdoor protests and rallies accommodating thousands.

The statement of interest is part of Attorney General William P. Barr's initiative, announced April 27, directing Assistant Attorney General for Civil Rights, Eric Dreiband, and the U.S. Attorney for the Eastern District of Michigan, Matthew Schneider, to review governmental policies around the country to ensure that civil liberties are protected during the COVID-19 pandemic.

Capitol Hill Baptist Church is a church of more than 850 members with a strong religious conviction that it should meet in person as a complete body for worship each Sunday. It therefore sought a permit to hold worship outdoors in excess of the 100-person limit, which the city denied.

The United States’ statement of interest explained that there is no constitutional or statutory basis for allowing protests and rallies attended by thousands of people, while at the same time silencing religious worship. The brief also explained that the District of Columbia bears a high burden of proof to justify its actions under the First Amendment and RFRA because its actions impose a “substantial burden” on religious exercise, as the church has shown here.

Though seeking to prohibit the Church’s socially-distanced outdoor worship, the District of Columbia nonetheless denied that the protests it had encouraged this past summer caused infection.  The Court observed:  “In fact, the District’s brief explains that the protests did not trigger any spike in COVID-19 ‘outbreaks,’ undermining the notion that large gatherings are always exceptionally dangerous.”

On Sept. 22, 2020, the Justice Department marked the 20th Anniversary of another federal law enacted to protect religious liberty, the Religious Land Use and Institutionalized Persons Act (RLUIPA)—a law enforced by the department’s Civil Rights Division, by releasing a comprehensive report detailing how RLUIPA has helped preserve the religious liberty rights of thousands of individuals and institutions.  https://www.justice.gov/opa/pr/department-justice-marks-20th-anniversary-religious-land-use-and-institutionalized-persons   

In July 2018, the Department of Justice announced the formation of the Religious Liberty Task Force. The Task Force brings together department components to coordinate their work on religious liberty litigation and policy, and to implement the Attorney General’s 2017 Religious Liberty Guidance.

More information about the Department of Justice’s efforts to protect religious exercise, including its Place to Worship Initiative is available at www.justice.gov/crt/placetoworship.