District Not Recorded

Department of Justice Spokesperson Kerri Kupec has issued the following statement:

“Today, William Emmett LeCroy Jr., 50, was executed at U.S. Penitentiary Terre Haute in accordance with the capital sentence recommended by a federal jury and imposed by the U.S. District Court for the Northern District of Georgia in 2004.  LeCroy was pronounced dead at 9:06 p.m. EDT.

In October 2001, LeCroy robbed, raped and murdered Joann Lee Tiesler, a 30-year-old nurse. LeCroy had previously served 10 years in federal and state prison for, among other crimes, aggravated assault, burglary, child molestation, and statutory rape.  After his release to supervised probation, LeCroy began planning to flee the country.  In furtherance of that plan, LeCroy broke into Tiesler’s home in Gilmer County, Georgia.  Once she returned, LeCroy attacked her with a shotgun, bound her hands behind her back with cable ties, strangled her with an electrical cord, and raped and sodomized her at the foot of her bed.  He then slashed her throat with a knife and repeatedly stabbed her in the back.  After murdering her, LeCroy stole her vehicle and drove to the Canadian border, where he was arrested.  In March 2004, a federal jury found LeCroy guilty of carjacking resulting in death and unanimously recommended a sentence of death, which the district court imposed.  His conviction and sentence were affirmed on appeal, and his requests for collateral relief were rejected by every court that considered them. 

Nearly 19 years after brutally ending the life of Joann Lee Tiesler, William Emmett LeCroy finally has faced the justice he deserved.  Family members and loved ones of Tiesler, including her father and her fiancé, witnessed the execution.” 

The Justice Department today marked the 20th Anniversary of the Religious Land Use and Institutionalized Persons Act (RLUIPA) by releasing a comprehensive report detailing how RLUIPA has helped preserve the religious liberty rights of thousands of individuals and institutions. 

RLUIPA, which protects the rights to use land for religious purposes without discrimination or unduly burdensome regulation, and protects the religious exercise of persons confined to institutions, was signed into law by President Clinton 20 years ago today. The report recounts the history and purpose of RLUIPA, how it has been interpreted in the courts, and the Department of Justice’s enforcement efforts, which have protected the religious liberty of people of a wide range of faiths in a broad array of settings.

Eric Dreiband, Assistant Attorney General for the Civil Rights Division, stated: “For more than four centuries, religious people from all over the world have sought refuge here. Often, these people did so to escape persecution by monarchs, dictators, and other despots. Then, when our ancestors established the United States of America, the Founders adopted the First Amendment to the United States Constitution and thereby preserved in law the right of all people to exercise religion. Two decades ago, the Congress extended these protections when it passed RLUIPA. The Department of Justice is steadfastly committed to enforcing RLUIPA vigorously to protect the right of all people to practice their faith and worship together.”

Some key points in the report include:

• The Department of Justice has opened 553 preliminary and full investigations under RLUIPA; filed 28 RLUIPA lawsuits; filed 53 amicus briefs and statements of interest in privately filed RLUIPA cases; and intervened in more than 65 cases to defend the constitutionality of RLUIPA.
• Under the department’s Place to Worship Initiative, launched in June 2018, the department has filed double the number of RLUIPA cases and briefs, and 60% more full investigations, compared to the department’s RLUIPA filings in an average two-year period.
• Filed cases and briefs that have protected the rights of a wide range of religious groups, including Christians, Muslims, Jews, Sikhs, Hindus, Native Americans, and others.
• The department’s land use cases frequently involve the rights of minority faiths.  55% of the department’s court filings have involved Muslims and Jews. This is consistent with the legislative history of RLUIPA, where Congress found that minority faiths were disproportionately represented in zoning disputes.

The report is attached.  More information about the Place to Worship Initiative is available at www.justice.gov/crt/placetoworship. More information about the enforcement of the RLUIPA rights of prisoners and others confined to institutions is available at the Special Litigation Section RLUIPA page, https://www.justice.gov/crt/religious-land-use-and-institutionalized-persons-act-0.

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.

Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743, or through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.

At a press conference in Milwaukee today, Attorney General William P. Barr announced updates on Operation Legend. He was joined by Matthew D. Krueger, U.S. Attorney for the Eastern District of Wisconsin, who announced charges against 26 defendants who allegedly operated a violent drug trafficking organization in Milwaukee. Law enforcement resources allocated by Operation Legend contributed to the investigation and today’s enforcement operation. 

Since Operation Legend’s launch in July 2020, more than 3,500 arrests – including approximately 200 for homicide – have been made; more than 1,000 firearms have been seized; and nearly 19 kilos of heroin, more than 11 kilos of fentanyl (enough to deliver more than five million fatal doses), more than 94 kilos of methamphetamine, nearly 14 kilos of cocaine, and more than $6.5 million in drug proceeds have been seized.

Of the more than 3,500 individuals arrested, approximately 815 have been charged with federal offenses. More than 440 of those defendants have been charged with firearms offenses, while more than 300 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. A prime example of that partnership is the announcement made today by U.S. Attorney Krueger.

This morning, federal, state, and local law enforcement officers arrested 21 of the 26 defendants charged by criminal complaint with offenses related to a violent drug-trafficking organization that obtained multi-kilogram quantities of cocaine and marijuana from California for distribution in the Milwaukee area. The officers also executed search warrants in both Milwaukee and California, resulting in the seizure of approximately 33 firearms, $170,000, and over 700 grams of heroin from one location, as well as additional heroin, cocaine, and marijuana from other locations.

Included among the defendants is Louis R. Perez III, also known as “Eight Ball,” who is alleged to be a Mexican Posse gang member and the current leader of the nationwide drug trafficking organization. Several other Mexican Posse gang members have also been charged and arrested.

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

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.

147 defendants have been charged with federal crimes outlined below.

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

Chicago, IL.

150 defendants have been charged with federal crimes outlined below.

• 37 defendants have been charged with narcotics-related offenses;
• 108 defendants have been charged with firearms-related offenses; and
• 5 defendants have been charged with other violent crimes.

Albuquerque, NM.

60 defendants have been charged with federal crimes outlined below.

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

Cleveland, OH.

72 defendants have been charged with federal crimes outlined below.

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

Detroit, MI.

65 defendants have been charged with federal offenses outlined below. 

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

Milwaukee, WI.

47 defendants have been charged with federal crimes outlined below.

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

St. Louis, MO.

205 defendants have been charged with federal crimes.

• 93 defendants have been charged with narcotics-related offenses;
• 90 defendants have been charged with firearms-related offenses; and
• 22 defendants have been charged with other violent crimes.

Memphis, TN.

27 defendants have been charged with federal offenses.

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

Indianapolis, IN.

45 defendants have been charged with federal crimes outlined below.

• 7 defendants have been charged with narcotics-related offenses;
• 33 defendants have been charged with firearms-related offenses; and
• 5 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 Western District of Tennessee.  Operation Legend launched in Memphis on Aug. 6, 2020, in response to the city facing increased homicide and non-fatal shooting rates.

United States vs. Kendrick Monger, Corey Groves, and Martez Banks

 On Sept. 10, 2020, a federal grand jury returned a two-count indictment against three Memphis men for conspiracy and theft of firearms from a federally licensed firearms dealer.

“The proliferation of stolen firearms on the streets of Memphis contributes to the increased frequency and severity of shooting incidents and violent crime in our neighborhoods,” said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee.  “Under Operation LeGend, we are surging federal resources to assist local law enforcement, and we are committed in our resolve to reduce violent crime by aggressively prosecuting federal firearms offenses.  This indictment does just that.”

According to the indictment, on Aug. 2, 2020, Kendrick, Monger, 24; Corey Groves, 25; and Martez Banks, 25, all of Memphis, stole 32 firearms from the Shoot Point Blank gun range, a federally licensed firearms dealer in Memphis.

If convicted, the defendants each face up to 10 years in prison.  There is no parole in the federal system.

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 2,000 local, state, and federal arrests, with more than 592 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.

NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JARRELL FOX, (“FOX”) age 29, of New Orleans, was charged in an eight-count Indictment with four Hobbs Act Robberies, in violation of Title 18, United States Code, Section 1951(a), three counts of Brandishing a Firearm During a Crime of Violence in violation of Title 18, United States Code, Section 924(c)(1)(a)(ii), and one count of Possession of a Firearm During a Crime of Violence in violation of Title 18, United States Code, Section 924(c)(1)(a)(i).

The federal indictment alleges that FOX committed the armed robberies of four businesses located in the New Orleans East and Mid-City areas of New Orleans while either brandishing or possessing a firearm. 

If convicted of the Hobbs Act Robbery violations, FOX faces a maximum term of imprisonment of 20 years, a fine of up to $250,000.00, a period of up to 3 years supervised release, and a mandatory special assessment (”MSA”) of $100.00.  If convicted of Brandishing a Firearm During a Crime of Violence, FOX faces a mandatory consecutive sentence of 7 years to life  imprisonment, up to a $250,000.00 fine, up to 5 years supervised release, and a $100 MSA. If convicted of Possessing a Firearm During a Crime of Violence, FOX faces a mandatory consecutive sentence of 5 years to life imprisonment, up to a $250,000.00 fine, up to 5 years supervised release, and a $100 MSA.  Any sentence imposed regarding the firearm offenses will run consecutive to the sentence imposed for the violation of the Hobbs Act Robbery offenses.

U. S. Attorney Strasser reiterated that an 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.

This case was investigated by the New Orleans Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.

The Department of Justice today announced it has awarded nearly $101 million, through the department’s Office of Justice Programs (OJP) in funding to combat human trafficking and provide vital services to trafficking victims throughout the United States.

“The scourge of human trafficking is the modern-day equivalent of slavery, brutally depriving victims of basic human rights and essential physical needs as it erodes their sense of dignity and self-worth,” said Attorney General William P. Barr.  “The Department of Justice is relentless in its fight against the perpetrators of these heinous crimes.  Working with state and local law enforcement and community victim service providers, we will continue to bring these criminals to justice and deliver critical aid to survivors.”

The Office for Victims of Crime (OVC) awarded over $97.4 million to state, local and tribal jurisdictions, service providers and task forces all over the country, while OJP’s National Institute of Justice awarded the remaining $3.5 million to support research and evaluation on human trafficking.

“Human trafficking is a massive global enterprise with roots in cities and communities here in America and across the world,” said OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan.  “The Office of Justice Programs is using all the resources at its disposal to help our state, local and tribal partners uncover and eradicate trafficking operations and help victims open the door to a new life.”

Grants awarded under fiscal year (FY) 2020 OVC programs aim to enhance the quality and quantity of services available to survivors of human trafficking. Specific programs:

• The Enhanced Collaborative Model Task Force to Combat Human Trafficking program awards over $22.7 million total.  OVC awards over $17.7 million to 27 programs to support the effectiveness of collaborative and multidisciplinary task forces to combat human trafficking.  The purpose of this program is to develop and strengthen programs for victims of human trafficking, including enhancing the capacity of law enforcement and other stakeholders to identify victims and provide justice for those victims through the investigation and prosecution of their traffickers.  OVC also awards nearly $5 million in grants to three organizations for training and technical assistance for the task forces. 
• The Housing Assistance Grants for Victims of Human Trafficking program awards over $35.1 million total to 73 organizations to provide six to 24 months of transitional or short-term housing assistance for trafficking victims, including rental, utilities or related expenses, such as security deposits and relocation costs.  The grants will also provide funding to help victims locate permanent housing, secure employment and receive occupational training and counseling.
• The Improving Outcomes for Child and Youth Victims of Human Trafficking program awards over $4.2 million total to four recipients to integrate human trafficking policy and programming at the state or tribal level.  This program will enhance coordinated, multidisciplinary and statewide approaches to at-risk populations to improve outcomes for children and youth who are victims of human trafficking.
• The Preventing Trafficking of Girls program awards $1.8 million total to four organizations, including a training and technical assistance provider, to support prevention and early intervention services, including mentoring and other direct support services for girls who are at risk of or are victims of sex trafficking.
• The Services for Minor Victims of Sex Trafficking program gives over $6.8 million to four recipients to develop, expand and strengthen assistance programs for minor victims of sex trafficking.  Under this program, the funded states, tribes, and units of local government will provide (directly and through partnerships) an array of services that minor victims of human trafficking often require to address their need for safety, security, and healing.
• The Services for Minor Victims of Labor Trafficking program awards nearly $2 million total to three organizations to develop, expand, or strengthen victim service programs for minor victims of labor trafficking whose victimization occurred when they were under the age of 18.
• The Services for Victims of Human Trafficking program awards more than $23.6 million to 43 organizations to support services specific to victims of human trafficking.
• The Specialized Training and Technical Assistance on Housing for Victims of Human Trafficking program awards $643,163 total to deliver specialized training and technical assistance to victim service organizations to enhance their ability to provide appropriate housing for victims of human trafficking.
• OVC awards the Promoting Employment Opportunities for Survivors of Trafficking Training and Technical Assistance Project continuation funding in the amount of $300,000 to increase access to quality educational and employment opportunities for survivors of human trafficking.

Grants awarded under FY 2020 NIJ programs aim to understand law enforcement practices with regard to preventing and responding to victims of trafficking. Specific programs:

• The Research and Evaluation of Trafficking in Persons program awards over $2.5 million total to four organizations to build upon research and evaluation efforts to better understand, prevent and respond to trafficking in persons in the United States.
• The Research on Law Enforcement Responses to Sex Trafficking of Minors program awards nearly $1 million to understand how law enforcement practices with regard to preventing and responding to the sex trafficking of minors have evolved since passage of the Victims of Trafficking and Violence Protection Act of 2000.  NIJ was specifically interested in understanding how widely law enforcement agencies have adopted practices based on the perspective that the minor is a victim rather than a delinquent and the challenges that agencies have faced in adopting such practices.

For a complete list of individual grant programs, award amounts, and jurisdictions that will receive funding, visit: https://www.ojp.gov/sites/g/files/xyckuh241/files/media/document/ovchumantraffickingfactsheet.pdf. More information about OJP and its components can be found at www.ojp.gov.

UPDATE

The guidance and designations described in the press release below were withdrawn on February 25, 2021 pursuant to a memorandum signed by Acting Attorney General Monty Wilkinson. 

All Department grantmaking components shall ensure that no state or local jurisdictions are disfavored in any Departmental programs on the basis of the withdrawn guidance and designations below.

The U.S. Department of Justice today identified the following three jurisdictions that have permitted violence and destruction of property to persist and have refused to undertake reasonable measures to counteract criminal activities: New York City; Portland, Oregon; and Seattle, Washington. The Department of Justice is continuing to work to identify jurisdictions that meet the criteria set out in the President’s Memorandum and will periodically update the list of selected jurisdictions as required therein.

The list was published on DOJ’s website today in response to President Trump’s memorandum of September 2, 2020, entitled “Memorandum on Reviewing Funding to State and Local Government Recipients That Are Permitting Anarchy, Violence, and Destruction in American Cities.” 

“When state and local leaders impede their own law enforcement officers and agencies from doing their jobs, it endangers innocent citizens who deserve to be protected, including those who are trying to peacefully assemble and protest,” said Attorney General William P. Barr.  “We cannot allow federal tax dollars to be wasted when the safety of the citizenry hangs in the balance. It is my hope that the cities identified by the Department of Justice today will reverse course and become serious about performing the basic function of government and start protecting their own citizens.”

 Criteria for evaluating each city is below:

• Whether a jurisdiction forbids the police force from intervening to restore order amid widespread or sustained violence or destruction.
• Whether a jurisdiction has withdrawn law enforcement protection from a geographical area or structure that law enforcement officers are lawfully entitled to access but have been officially prevented from accessing or permitted to access only in exceptional circumstances, except when law enforcement officers are briefly withheld as a tactical decision intended to resolve safely and expeditiously a specific and ongoing unlawful incident posing an imminent threat to the safety of individuals or law enforcement officers.
• Whether a jurisdiction disempowers or defunds police departments.
• Whether a jurisdiction unreasonably refuses to accept offers of law enforcement assistance from the Federal Government.
• Any other related factors the Attorney General deems appropriate.

New York City

• Shootings in New York City have been on the rise since looting and protests began on or about May 28, 2020.  For July 2020, shootings increased from 88 to 244, an increase of 177% over July 2019.  In August 2020, shootings increased from 91 to 242, a 166% increase over August 2019.
• While the city faced increased unrest, gun violence, and property damage, the New York City Council cut $1 billion from NYPD’s FY21 budget.
• The budget resulted in the cancellation of the new police recruiting class, cuts to overtime spending, and the transfer of certain police functions, including school safety, out of the NYPD.
• Meanwhile, the Manhattan and Brooklyn District Attorneys have declined to prosecute charges of disorderly conduct and unlawful assembly arising from the protests, and the District Attorneys in Queens and the Bronx have declined to prosecute other protest-related charges.
• Both Mayor de Blasio and Governor Cuomo have forcefully rejected federal law enforcement support.

Portland, Oregon

• This month, Portland marked 100 consecutive nights of protests marred by vandalism, chaos, and even killing.
• Those bent on violence regularly started fires, threw projectiles at law enforcement officers, and destroyed property. Numerous law enforcement officers, among others, suffered injury.
• Shootings increased by more than 140% in June and July 2020 compared to the same period last year.
• In the midst of this violence, the Portland City Council cut $15 million from the police bureau, eliminating 84 positions. Crucially, the cuts included the Gun Violence Reduction Team, which investigates shootings, and several positions from the police team that responds to emergency incidents.
• In August, Portland Mayor Wheeler sent a letter to President Trump expressly rejecting the Administration’s offer of federal law enforcement to stop the violent protests.

Seattle, Washington

• For nearly a month, starting in June, the City of Seattle permitted anarchists and activists to seize six square blocks of the city’s Capitol Hill neighborhood, naming their new enclave the “Capitol Hill Autonomous Zone” (CHAZ) and then the “Capitol Hill Occupied Protest” (CHOP).
• Law enforcement and fire fighters were precluded from entering the territory.  The Seattle Police Department was ordered to abandon their precinct within the CHOP.
• Person-related crime in the CHOP increased 525% from the same period of time in the same area the year before, including by Mayor Durkan’s own count “two additional homicides, 6 additional robberies, and 16 additional aggravated assaults (to include 2 additional non-fatal shootings).”
• The CHOP was allowed to stand for nearly a month, during which time two teenagers were shot and killed in the zone.
• The Seattle City Council, Mayor Durkan, and Washington Governor Jay Inslee publicly rejected federal involvement in law enforcement activities within the city of Seattle.

On Monday, September 21, Assistant Attorney General Makan Delrahim concurred in the Federal Trade Commission’s (FTC) Federal Register publication of a Notice of Proposed Rulemaking (NPRM) to revise the premerger notification rules (the Rules) that implement the Hart-Scott-Rodino Antitrust Improvements Act (HSR).

The NPRM proposes to create a new reporting exemption for certain de minimis investments of 10% or less.  The proposed amendments in the NPRM also change the definition of “person,” and make explanatory and ministerial changes to the HSR Rules as well as the HSR Form and Instructions to effect the proposed amendments.  In another Advance Notice of Proposed Rulemaking (ANPRM), also supported by the Antitrust Division, the FTC seeks to gather information, related to seven topics, that will help to determine the path for future amendments to the HSR Rules.

“One of my goals as Assistant Attorney General has been to right-size the HSR regime to better account for how the economy has changed in the decades since the HSR regime was first enacted, including changes in the investment landscape and investor behavior,” said Assistant Attorney General Delrahim.  “I am pleased to be working with the FTC towards this goal.  In particular, I have been an advocate for the creation of a new exemption for certain de minimis investments of 10% or less in order to address the regulatory burdens of an overbroad HSR requirement for certain minority investments that do not raise competition concerns.”

A comment period will follow publication in the Federal Register, and the Antitrust Division encourages all interested stakeholders to submit comments on both the NPRM and the ANPRM.  The Antitrust Division is particularly interested in comments on the following features of the NPRM, which will greatly benefit both the Antitrust Division and the FTC as they work collaboratively towards a final rule:

• The Director/Officer Carve-Out: Should this carve-out be removed, given that the new exemption already has carve-outs for competitors and common ownership?  How does it meaningfully increase the likelihood of receiving filings that have the potential to raise competition concerns?
• The Vendor/Vendee Carve-Out: Should this carve-out be removed?  Does it meaningfully increase the likelihood of receiving filings that have the potential to raise competition concerns?

Two Virginia attorneys were sentenced today on federal extortion charges for their roles in a scheme to extort a multinational chemicals company by threatening to inflict substantial financial and reputational harm on the company if their demands for a $200 million payment disguised as a purported “consulting agreement” were not met.

Timothy Litzenburg, 38, of Charlottesville, Virginia, was sentenced to 24 months in prison followed by one year of supervised release by U.S. District Judge Norman K. Moon of the Western District of Virginia.  Daniel Kincheloe, 41, of Glen Allen, Virginia, was separately sentenced to 12 months in prison followed by one year of supervised release by Judge Moon.  Both defendants had previously pleaded guilty to one count of transmitting interstate communications with the intent to extort.

“These two attorneys flagrantly violated their ethical duties to their own clients as they sought to extort a company out of $200 million,” said Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division.  “Attorneys who cross the line and abuse their status as officers of the court will be held accountable for their actions.”

“Today’s sentencing should serve as a strong notice to fraudsters that the U.S. Postal Inspection Service will pursue anyone who uses the mail for illegal schemes,” said Delany De Leon-Colon, Inspector in Charge at the U.S. Postal Inspection Service (USPIS) who oversees the Criminal Investigations Group.  “Whether it’s a private citizen or a major corporation, Postal Inspectors will never relent in protecting them from those who seek to use the U.S. Mail to further their dangerous scams.”  

Litzenburg and Kincheloe previously admitted that in approximately October 2019, Litzenburg approached a company (Company 1) and threatened to make public statements alleging that Company 1 had significant civil liability for manufacturing a purportedly harmful chemical used in a common household product used to kill weeds.  Litzenburg and Kincheloe also admitted that after describing the possibility of damaging lawsuits against Company 1, Litzenburg proposed, in sum and substance, that he and Kincheloe enter into a “consulting arrangement” with Company 1 that would create a purported conflict-of-interest that would effectively stop them from representing their clients as plaintiffs in litigation against Company 1.  Thereafter, Litzenburg and Kincheloe admitted that Litzenburg, with Kincheloe’s knowledge and agreement, demanded that Company 1 pay Litzenburg, Kincheloe, and others, a total of $200 million in purported “consulting fees.”

Litzenburg and Kincheloe also previously admitted that after making their demand for $200 million from Company 1, they registered a Virginia corporation for the purpose of receiving monies from Company 1, and that they agreed to split the funds from Company 1 amongst themselves and their associates, and to not distribute any of the monies Company 1 paid them as purported “consulting fees” to their existing clients.  Litzenburg and Kincheloe admitted that after making their demand for $200 million, Litzenburg threatened Company 1 that they and others would commence litigation that would become “an ongoing and exponentially growing problem for [Company 1], particularly when the media inevitably takes notice” and that such litigation would cost Company 1 and its publicly-traded parent company “billions, setting aside the associated drop in stock price and reputation damage.”

Litzenburg and Kincheloe also admitted pursuant to their guilty pleas that in an email written by Litzenburg, they threatened Company 1 that unless they were paid $200 million, Company 1 would have “thousands of future plaintiffs against [Company 1]” and that “in the absence of a so-called ‘global’ or final deal with me, this will certainly balloon into an existential threat to [Company 1].”

Litzenburg and Kincheloe also admitted that they met in person with attorneys representing Company 1 at a conference center in Charlottesville, Virginia, and during that meeting Litzenburg again threatened to injure the property and reputation of Company 1 and its parent company unless they were paid $200 million pursuant to purported “consulting arrangements,” and that without such a deal there was no way Company 1 “gets out of it for less” than “[a] billion. Yeah. No, I mean, nuisance value, uh, defense lawyer fees, a hit in the stock when this gets filed and served, maybe the press conference, whatever.”  Later in the same meeting, Litzenburg and Kincheloe admitted that Litzenburg again stated, in sum and in part, that if they commenced litigation it would have adverse effects on Company 1’s parent’s stock price, which Litzenburg described as “a 40 percent stock loss coming off the top.”

Litzenburg also admitted that, during other communications with Company 1, he told Company 1 that if he received the $200 million in “consulting fees” he would not discuss Company 1 or its parent company with his current clients, and that he was willing to “take a dive” during a deposition of a toxicology expert to deter potential future claims related to litigation against Company 1.

The USPIS investigated the case.  Principal Assistant Chief Henry P. Van Dyck and Assistant Chief L. Rush Atkinson of the Criminal Division’s Fraud Section are prosecuting the case.

The Criminal Division’s Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country.

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.

On Sept. 14 to 18, criminal investigators and attorneys from the U.S. Department of Agriculture’s Office of Inspector General (USDA-OIG) and the U.S. Justice Department’s Environment and Natural Resources Division (ENRD) collaborated to put on a week-long training for USDA-OIG criminal investigators, as well as other federal law enforcement agencies on animal welfare criminal investigations and prosecutions. 

“Animal fighting and other violations of federal animal welfare laws are serious offenses, and ending these cruel practices requires close partnerships among federal law enforcement agencies,” said ENRD Principal Deputy Assistant Attorney General Jonathan Brightbill.  “Our division is proud to be a leader in this worthy cause.  Our work with the U.S. Department of Agriculture to investigate and prosecute these cases sends a strong message that those who engage in such illegal and cruel practices will be punished.” 

“The USDA Office of Inspector General has consistently and successfully conducted investigations of animal fighting and welfare, and has a proven record of building strong partnerships with other law enforcement officials and nongovernmental organizations to help protect animals,” said USDA-OIG’s Acting Assistant Inspector General for Investigations Peter P. Paradis Sr.  “Partnering with the Justice Department to train our special agents ensures that we continue to attain optimal results for our efforts.”

“This in-depth training workshop is critical to the enforcement of our national animal laws,” said Professor David Favre of Michigan State University’s College of Law, and founder of its Animal Legal and Historical Center.  “In this ever-evolving world of animal law enforcement, there are always lessons to be learned and experiences to share.”

During the training, special agents with USDA OIG’s Office of Investigations and nine attorneys from ENRD, including Principal Deputy Assistant Attorney General Brightbill, joined by state law enforcement officials, experts from academia, and nongovernmental organizations, shared their expertise with attendees.  Instructors provided participants with an overview of the business of dogfighting and cockfighting, horse soring, overviews of federal animal welfare and cruelty statutes, effective investigative techniques, evidence collection best practices, available resources and authorities for the seizure and post-seizure care of animals, and successful sentencing strategies.  The training also included a session on biohazards and zoonotics.

The Federal Animal Welfare Act makes it a felony punishable by up to five years in prison to knowingly sell, buy, possess, train, transport, deliver, or receive any animal, including dogs, for purposes of having the animal participate in an animal fighting venture.  In 2014, the Justice Department designated ENRD as having concurrent responsibility, with the U.S. Attorney’s Offices, to enforce Federal animal cruelty laws.

The Department of Justice and USDA-OIG have had a number of successes in combating animal cruelty.  For example, Operation Grand Champion brought 12 individuals to justice for their roles in a dog fighting ring.  The operation began with a tip from a U.S. Drug Enforcement Administration agent surveilling drug crimes, and, from this tip, USDA-OIG investigators, working with the Department of Homeland Security and the FBI, uncovered a ring that crossed multiple states and involved hundreds of dogs.  The prosecutions, conducted by ENRD and U.S. Attorney’s Offices between 2017 and 2019, resulted in convictions of 12 defendants in four federal districts, who were sentenced to 315 months in prison, combined.  As a result of the investigation, 113 dogs were rescued and either surrendered or forfeited to the government.

The Justice Department has a robust and cross-cutting program to ensure effective enforcement of animal welfare law.  This includes a civil forfeiture process that often results in animals being removed from accused abusers more quickly, along with the needed care, medical treatment, and the best chance for recovery and adoption.  More than 1,200 dogs have been seized and rescued through this process.  In addition, the Justice Department has provided extensive training for federal, state, and local law enforcement; identified and successfully advocated for policy changes that improve enforcement; and convened state and local law enforcement, animal protection organizations, and academic institutions to coordinate efforts in this area.

For more information on the department's efforts, visit our website at: https://www.justice.gov/enrd/animal-welfare.

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.

Attorney General William P. Barr has released the following statement:

“On behalf of the Department of Justice, I extend my deepest sympathy on the passing of Justice Ruth Bader Ginsburg.  Justice Ginsburg led one of the great lives in the history of American law.  She was a brilliant and successful litigator, an admired court of appeals judge, and a profoundly influential Supreme Court Justice.  For all her achievements in those roles, she will perhaps be remembered most for inspiring women in the legal profession and beyond.  She and I did not agree on every issue, but her legal ability, personal integrity, and determination were beyond doubt.  She leaves a towering legacy, and all who seek justice mourn her loss.”  

Acting Solicitor General Jeffrey B. Wall has released the following statement:

“On behalf of the Office of the Solicitor General, we mourn the loss of Justice Ruth Bader Ginsburg.  Justice Ginsburg was rightly renowned among people of all backgrounds, but she has a special significance to Supreme Court lawyers.  She was herself a pathmarking advocate before the Court in landmark equal-protection cases in the 1970s.  And during her 40 years on the Supreme Court and D.C. Circuit, she was equally formidable from the other side of the lectern.  She was an incisive questioner, a clear and careful writer, and a model of dignity and civility.  In the process, Justice Ginsburg served as an inspiration to this office, the Supreme Court bar, and far beyond.  I extend our deepest condolences to her family, her colleagues on the Court, her former law clerks, and all who knew and admired her.”

The Department of Justice announced today that it is requiring Anheuser-Busch InBev SA/NV (ABI), its wholly-owned subsidiary Anheuser-Busch Companies LLC (AB Companies), and Craft Brew Alliance Inc. (CBA) to divest CBA’s entire Kona brand business in the state of Hawaii and to license to the acquirer the Kona brand in Hawaii in order for AB Companies, a minority shareholder in CBA, to proceed with its proposed acquisition of the remaining shares of CBA.  The department has approved PV Brewing Partners, LLC as the acquirer.  The proposed settlement will maintain competition in the beer industry in Hawaii benefitting consumers.

The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the Eastern District of Missouri to block the $220 million 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 lawsuit.

According to the department’s complaint, AB Companies’ acquisition of CBA likely would substantially lessen head-to-head competition in Hawaii between ABI brands, such as Stella Artois and Michelob Ultra, and CBA’s Kona brand.  If the transaction was allowed to proceed, ABI and CBA would have a combined share of approximately 41 percent in the moderately concentrated Hawaii beer market.  The merger would also likely harm future competition between ABI and CBA as, absent the merger, the companies would continue to invest and compete against each other for premium beer sales in the state.  By eliminating CBA’s Kona brand as a competitive restraint, ABI would also likely have greater ability to facilitate price coordination, resulting in higher prices for beer sold in Hawaii, amplifying competitive concerns.

“This merger, as originally structured, would have significantly increased market concentration in Hawaii and eliminated the growing competition between ABI and CBA brands,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “Today’s settlement with its divestitures will ensure that consumers continue to benefit from this competition today and into the future.”

Under the terms of the proposed settlement, ABI and CBA must divest CBA’s entire Kona Hawaii business — Kona Brewery LLC — to PV Brewing Partners or to an alternative purchaser approved by the United States.  Specifically, the settlement requires the sale of the Kona brewing facilities in Hawaii, including a new 100,000-barrel capacity brewery currently under construction; the granting of a perpetual, exclusive license of the Kona brand for the brewing, distribution, and sale of Kona beer in Hawaii as well as other assets, rights, and interests necessary to ensure that PV Brewing Partners, LLC, is able to compete in the Hawaii beer market using the Kona brand.

ABI is a corporation organized and existing under the laws of Belgium, with its headquarters in Leuven, Belgium.  ABI is already a minority shareholder in CBA.  ABI proposes to acquire 100 percent ownership of CBA through AB Companies, a Delaware limited liability company that currently holds a minority ownership stake in CBA.  ABI owns numerous major beer brands sold in the United States, including in Hawaii.  These brands include Bud Light, Budweiser, Busch Light, Natural Light, Michelob Ultra, Stella Artois, and Golden Road.

CBA is a corporation organized and existing under the laws of Washington, with its headquarters in Portland, Oregon.  CBA owns several beer brands sold in the United States, including Widmer Brothers, Omission, Redhook, and Kona, a brand that originated in Hawaii and is especially popular in that state. 

PV Brewing Partners LLC, is a Delaware limited liability company with its headquarters in Overland Park, Kansas.  The entity was formed by VantEdge Partners LP, a private equity company based in metropolitan Kansas City.

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 Robert A. Lepore, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 8000, Washington, D.C., 20530.  At the conclusion of the 60-day comment period, the U.S. District Court for the Eastern District of Missouri may enter the final judgment upon finding it is in the public interest.

WASHINGTON – The Department of Justice announced today that it is requiring Anheuser-Busch InBev SA/NV (ABI), its wholly-owned subsidiary Anheuser-Busch Companies LLC (AB Companies), and Craft Brew Alliance Inc. (CBA) to divest CBA’s entire Kona brand business in the state of Hawaii and to license to the acquirer the Kona brand in Hawaii in order for AB Companies, a minority shareholder in CBA, to proceed with its proposed acquisition of the remaining shares of CBA.  The department has approved PV Brewing Partners, LLC as the acquirer.  The proposed settlement will maintain competition in the beer industry in Hawaii benefitting consumers.

The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the Eastern District of Missouri to block the $220 million 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 lawsuit.

According to the department’s complaint, AB Companies’ acquisition of CBA likely would substantially lessen head-to-head competition in Hawaii between ABI brands, such as Stella Artois and Michelob Ultra, and CBA’s Kona brand.  If the transaction was allowed to proceed, ABI and CBA would have a combined share of approximately 41 percent in the moderately concentrated Hawaii beer market.  The merger would also likely harm future competition between ABI and CBA as, absent the merger, the companies would continue to invest and compete against each other for premium beer sales in the state.  By eliminating CBA’s Kona brand as a competitive restraint, ABI would also likely have greater ability to facilitate price coordination, resulting in higher prices for beer sold in Hawaii, amplifying competitive concerns.

“This merger, as originally structured, would have significantly increased market concentration in Hawaii and eliminated the growing competition between ABI and CBA brands,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “Today’s settlement with its divestitures will ensure that consumers continue to benefit from this competition today and into the future.”

Under the terms of the proposed settlement, ABI and CBA must divest CBA’s entire Kona Hawaii business — Kona Brewery LLC — to PV Brewing Partners or to an alternative purchaser approved by the United States.  Specifically, the settlement requires the sale of the Kona brewing facilities in Hawaii, including a new 100,000-barrel capacity brewery currently under construction; the granting of a perpetual, exclusive license of the Kona brand for the brewing, distribution, and sale of Kona beer in Hawaii as well as other assets, rights, and interests necessary to ensure that PV Brewing Partners, LLC, is able to compete in the Hawaii beer market using the Kona brand.

ABI is a corporation organized and existing under the laws of Belgium, with its headquarters in Leuven, Belgium.  ABI is already a minority shareholder in CBA.  ABI proposes to acquire 100 percent ownership of CBA through AB Companies, a Delaware limited liability company that currently holds a minority ownership stake in CBA.  ABI owns numerous major beer brands sold in the United States, including in Hawaii.  These brands include Bud Light, Budweiser, Busch Light, Natural Light, Michelob Ultra, Stella Artois, and Golden Road.

CBA is a corporation organized and existing under the laws of Washington, with its headquarters in Portland, Oregon.  CBA owns several beer brands sold in the United States, including Widmer Brothers, Omission, Redhook, and Kona, a brand that originated in Hawaii and is especially popular in that state. 

PV Brewing Partners LLC, is a Delaware limited liability company with its headquarters in Overland Park, Kansas.  The entity was formed by VantEdge Partners LP, a private equity company based in metropolitan Kansas City.

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 Robert A. Lepore, Chief, Transportation, Energy, and Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street N.W., Suite 8000, Washington, D.C., 20530.  At the conclusion of the 60-day comment period, the U.S. District Court for the Eastern District of Missouri may enter the final judgment upon finding it is in the public interest.

Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend.  Today’s case is out of the Western District of Missouri.  Operation Legend launched in Kansas City on July 8, 2020, in response to the city facing increased homicide and non-fatal shooting rates.

United States vs. Leamandreal Dorsey

“Court documents cite a long history of gun violence and drug trafficking by this defendant who terrorized his neighborhood, allegedly shooting several victims,” Garrison said.  “This is his second federal charge for illegally possessing firearms.  Operation LeGend is successfully taking armed, violent criminals like this off the street to make our neighborhoods safer.”

A Kansas City, Missouri, man was charged with a firearm crime on July 24, 2020, in federal court in the Western District of Missouri after he was arrested for allegedly shooting three victims in an incident that week.

Leamandreal Dorsey, 40, was charged in federal court with being a felon in possession of a firearm.  According to the charging document, Dorsey illegally possessed a firearm, specifically a Glock .40-caliber handgun attached to an extended drum magazine that contained 40 live rounds of ammunition. 

On April 1, 2020, Kansas City police officers responded to a reported weapons disturbance.  One of Dorsey’s neighbors told officers that Dorsey pointed a gun at him and threatened him.  Officers contacted Dorsey at his home, sitting on the roof of a black Mercedes-Benz C300.  It is alleged that Dorsey jumped into the driver’s seat when officers approached.  Dorsey was removed from his vehicle and taken into custody.  The owner of the vehicle provided consent for the officers to search the car, and they found a backpack in the passenger’s seat that contained the Glock .40-caliber handgun attached to an extended drum magazine, as well as a spare magazine.

Although this incident occurred on April 1, Dorsey was arrested following a separate shooting incident that occurred the week of July 24 during which three individuals were wounded by gunfire.

According to charging documents, on July 22, 2020, Kansas City, Missouri, police officers responded to a shooting.  Six individuals were on the front porch of a residence when an individual - later identified as Dorsey - started shooting at them.  According to the victims, Dorsey walked away, but returned minutes later and began shooting again; he then fled on foot.  Three of the individuals were struck by gunfire and transported to the hospital.  Investigators found 31 spent shell casings at the scene.

Later the same day, investigators received a Crime Stoppers tip that identified Dorsey as the shooter.

Because of a previous felony conviction punishable by more than one year in prison, Dorsey is prohibited from possessing a firearm.  His prior convictions includes being a felon in possession of a firearm, for which he served three years in federal prison.  He also has two prior felony convictions for unlawful use of a weapon, two prior felony convictions for possession of a controlled substance, and a prior felony conviction for drug trafficking. 

The charging document also alleges four previous instances in which Dorsey pointed firearms at people and threatened them.  Among those incidents, Dorsey shot a man in the hip who was running from Dorsey’s residence following a disagreement.

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.

This case was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

Background on Operation Legend

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.

Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with more than 592 defendants charged with federal crimes.

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 International Competition Network (ICN) held its 19th annual conference on September 14-17, 2020.  Co-hosted by the Antitrust Division and the Federal Trade Commission (FTC), the conference was the ICN’s first virtual conference.  

Originally planned as an in-person conference in Los Angeles in May, the conference transitioned to a virtual format as a result of the COVID-19 pandemic.  Assistant Attorney General Makan Delrahim of the Antitrust Division and FTC Chairman Joseph J. Simons led the U.S. delegation.

“Global engagement through ICN is essential to our work in preserving market competition in the United States," said Assistant Attorney General Delrahim.  "We are proud to have co-hosted this year’s ICN conference and to have had conversations on issues of great national importance, such as the role of antitrust enforcement in the digital economy, made available to the public."

“In these challenging times, it has been uplifting to see the strong commitment of the global competition community to reaffirming the central importance of competition policy to growth, innovation, and economic recovery,” said FTC Chairman Simons.  “The FTC is proud to have co-hosted the ICN’s 19th annual conference and looks forward to working with our colleagues around the world to meet the challenges of the digital economy and ensure competitive markets that serve consumers.”

The conference examined a range of competition enforcement and policy issues, including those involving the digital economy.  Over 2,500 delegates from around the world participated in the conference, including agency leadership and staff, as well as competition experts from international organizations and the legal, business and academic communities.  

Assistant Attorney General Delrahim and Chairman Simons opened the conference and participated in a showcase program that explored competition enforcement in the digital economy, including enforcement tools and international cooperation.

During the conference, the ICN working groups on cartels, unilateral conduct, advocacy, mergers, and agency effectiveness highlighted achievements and developments with respect to their projects.

Deputy Assistant Attorney General for International and Policy, Rene Augustine, led the Division’s international team in the strategic development and implementation of the international conference.

Deputy Assistant Attorney General Richard Powers of the Antitrust Division spoke on a panel discussing big data and cartelization inspired by a scoping paper finalized this year by the Cartel Working Group.  Under the Antitrust Division’s leadership, the group also finalized guidance on enhancing cross-border leniency cooperation.

FTC Commissioner Christine Wilson spoke on a panel on the objectives, design, and implementation of remedies in unilateral conduct s cases involving digital markets.  The Unilateral Conduct Working Group produced a report detailing the results of an ICN survey on dominance and substantial market power in digital markets. 

The Advocacy Working Group held a panel on competition advocacy in the digital age.  The group also issued a report on providing input to policymakers on the competitive impact of government regulations. 

The Merger Working Group organized a panel on merger investigations in the digital sector that addressed the characteristics of digital mergers, theories of harm, remedies, and the scope for international cooperation.  The group also issued a report on agency experiences with conglomerate mergers and work exploring the impact of procedural infringements by parties during merger investigations.

The Agency Effectiveness Working Group’s panel focused on competition agencies’ strategies to address the challenges of the digital economy.  The group also has led the ICN’s efforts since the outset of the COVID-19 pandemic to share operational experiences and information on agencies’ adaptation policies.

The ICN Steering Group has also begun exploring the issues related to competition enforcement and advocacy pertaining to the intersection between competition, consumer protection, and data privacy law and policy, a project initiated by the FTC. 

The ICN also unveiled its plan to conduct a comprehensive organizational review, co-led by the FTC, of the ICN’s substantive coverage, tools, and operational framework with a view to preparing for future developments and challenges as the ICN enters its third decade in 2021. 

Recordings of the conference will be available on the ICN conference webpage after the close of the conference.  Materials and recordings related to the Antitrust Division’s participation are available on the division’s International Program page 

Supplemental annual conference programming will be held throughout the fall, including additional sessions organized by each of the ICN’s five Working Groups.  The Antitrust Division, together with its co-chairs, will also lead a session for participants in the ICN Framework on Competition Agency Procedures (CAP).

The ICN was created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world.  It was founded by 15 agencies including the Antitrust Division and the FTC, and has grown to 140 agencies from 129 jurisdictions, supported by a wide network of non-government advisors from around the world. 

Akshay Aiyer, a former currency trader at a major multinational bank, was sentenced to serve eight months in jail and ordered to pay a $150,000 criminal fine for his participation in an antitrust conspiracy to manipulate prices for emerging market currencies in the global foreign currency exchange (FX) market, the Justice Department announced today.

On Nov. 20, 2019, Aiyer was convicted after a three-week jury trial in the U.S. District Court for the Southern District of New York for conspiring to fix prices and rig bids in Central and Eastern European, Middle Eastern, and African (CEEMEA) currencies, which were generally traded against the U.S. dollar and the euro, from at least October 2010 through at least January 2013.

“Today’s sentence, including prison time, serves as yet another reminder of the consequences for those who cheat and compromise the integrity of the global financial markets,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “This case, which the Antitrust Division litigated, is another step forward in the department’s ongoing commitment to prosecute and deter cartels in the financial markets that harm American consumers.”

“Today’s sentencing demonstrates the gravity of the defendant’s egregious behavior to manipulate emerging market currencies, as well as the importance of bringing him to justice,” said FDIC Inspector General Jay N. Lerner.  “This extensive conspiracy represents a serious breach of trust with both his clients and the major multinational bank for whom he worked.  We appreciate the cooperation of our law enforcement partners, and we remain committed to investigate such unscrupulous crimes that impact the integrity of our banking sector.”

According to evidence presented at trial, the defendant engaged in near-daily communications with his co-conspirators by phone, text, and through an exclusive electronic chat room to coordinate their trades of the CEEMEA currencies in the FX spot market.  The jury heard evidence that the defendant and his co-conspirators manipulated exchange rates by agreeing to withhold bids or offers to avoid moving the exchange rate in a direction adverse to open positions held by co-conspirators and by coordinating their trading to manipulate the rates in an effort to increase their profits.  By agreeing not to buy or sell at certain times, the conspiring traders protected each other’s trading positions by withholding supply of or demand for currency and suppressing competition in the FX spot market for emerging market currencies.  They also heard evidence that the defendant and his co-conspirators took steps to conceal their actions by, among other steps, using code names, communicating on personal cell phones during work hours, and meeting in person to discuss particular customers and trading strategies.  

The Antitrust Division has charged five companies and six individuals in its investigation of collusion in the FX spot market.  On May 20, 2015, four major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC, and The Royal Bank of Scotland plc – pleaded guilty and agreed to collectively pay more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy in the euro-U.S. dollar FX spot market.  On Jan. 25, 2018, BNP Paribas USA, Inc. pleaded guilty and agreed to pay a $90 million criminal fine for its participation in an antitrust conspiracy involving emerging market FX prices.  On Jan. 4, 2017 and Jan. 12, 2017, plea agreements were announced for two former traders in connection with an antitrust conspiracy involving emerging market FX prices. 

The sentence announced today is a result of an ongoing investigation into collusion in the financial markets, which is being conducted by the Antitrust Division’s New York Office, FDIC Office of Inspector General, and the FBI’s Washington Field Office.  The Criminal Division’s Fraud Section also provided substantial assistance in this matter.  Anyone with information on price fixing, bid rigging, or other anticompetitive conduct in the financial markets should contact the Antitrust Division’s New York Office at 212-335-8000 or visit www.justice.gov/atr/contact/newcase.html.

Starting on Sept. 14, 2020 and continuing through today, the Department of Justice, the Federal Bureau of Investigation, the Department of Homeland Security, and the Department of the Treasury have engaged in a coordinated effort to disrupt and deter malicious cyber activities by actors associated with the Islamic Republic of Iran’s (Iran) Ministry of Intelligence and Security (MOIS) and Islamic Revolutionary Guard Corps (IRGC), as well as other Iran-based individuals.  These malicious cyber actors targeted victims in Australia, Europe, the Middle East, Southeast Asia, and the United States. 

“This week’s unsealing of indictments and other disruptive actions serves as another reminder of the breadth and depth of Iranian malicious cyber activities targeting not only the United States, but countries all over the world,” said Assistant Attorney General for National Security John C. Demers.  “Whether directing such hacking activities, or by offering a safe haven for Iranian criminal hackers, Iran is complicit in the targeting of innocent victims worldwide and is deepening its status as a rogue state.  By contrast, the Department of Justice and its U.S. government partners stand with such victims, regardless of their location, and we will continue our cooperative efforts domestically and internationally to disrupt Iranian hacking activities.”

“The FBI is using its unique partnerships and world-class capabilities to hold Iranian cyber actors publicly accountable for their actions,” said Executive Assistant Director Terry Wade of the FBI's Criminal, Cyber, Response, and Services Branch. “Those malicious activities, as once again outlined this week, highlight Iran’s persistent use of cyber methods to harm the citizens of the United States and its allies. No cyber actor should think they can compromise U.S. networks, steal our intellectual property, or hold our critical infrastructure at risk without incurring risk themselves. The FBI will continue to work with our partners to protect U.S. interests and to impose consequences on those cyber actors working on behalf of the Government of Iran in furtherance of their nefarious goals.”

On Sept. 14, 2020, the FBI and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency jointly published a Cybersecurity Advisory regarding tactics, techniques, and procedures (TTPs) of an Iran-based malicious cyber actor targeting several U.S. federal agencies and other U.S.-based networks.

On Sept. 15, 2020, in the District of Massachusetts, the Department announced the unsealing of a three-count indictment charging two hackers in relation to their intrusions into, and defacements of, websites hosted in the United States.  The hackers, Behzad Mohammadzadeh, aka “Mrb3hz4d,” a citizen and resident of the Iran, and Marwan Abusrour, aka “Mrwn007,” a stateless national under the jurisdiction of the Palestinian Authority, conspired to and subsequently damaged computers in perceived retaliation for the January 2, 2020 U.S. military strike that killed Qasem Soleimani, the head of the IRGC-Quds Force, a U.S.-designated Foreign Terrorist Organization.  These defacements were a subset of the over 1,400 defacements around the world for which the defendants claimed responsibility between in or around June 2016 and July 2020.

On Sept. 16, 2020, in the District of New Jersey, the Department announced the unsealing of a 10-count indictment charging two hackers, who sometimes operated under the using the pseudonym “Sejeal,” in relation to coordinated cyber intrusions and hacking campaigns targeted computer systems in Europe, the Middle East, and the United States.  The defendants, Hooman Heidarian, aka “neo,” and Medhi Farhadi, aka “Mehdi Mahdavi,” both Iranian nationals residing in Iran, stole hundreds of terabytes of data, which typically included confidential communications pertaining to national security, foreign policy intelligence, non-military nuclear information, aerospace data, human rights activist information, victim financial information and personally identifiable information, and intellectual property, including unpublished scientific research.  In some instances, the defendants’ hacks were politically motivated or at the behest of the government of Iran, including instances where they obtained information regarding dissidents, human rights activists, and opposition leaders.  In other instances, the defendants sold the hacked data and information on the black market for private financial gain.

On Sept. 17, 2020, in the Eastern District of Virginia, the Department announced the unsealing of a nine-count indictment charging three hackers in relation to an approximately four-year campaign to steal and attempt to steal critical information related to aerospace and satellite technology and resources, including sensitive commercial information, intellectual property, and personal data.  The defendants, Said Pourkarim Arabi, Mohammad Reza Espargham, and Mohammad Bayati, all Iranian nationals residing in Iran, conducted their activity at the direction of the IRGC, of which Arabi was a member.  The defendants primarily accomplished their intrusions through socially engineered spearphishing campaigns, using at least one target list of over 1,800 individuals in Australia, Israel, Singapore, the United States, and the United Kingdom.  Upon successfully enticing a victim to click on a link in such a spearphishing e-mail, a member of the conspiracy would deploy malware that allowed the conspirators to gain access credentials, escalate their privileges, maintain their unauthorized access to victim networks, and ultimately steal the sought-after data.  To accompany the unsealing of this indictment, and to aid potential targets in the identification of malicious activity, the FBI released a Private Industry Notification (PIN) that identified the conspiracy’s TTPs and indicators of compromise.

Also on Sept. 17, 2020, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) imposed sanctions against 45 individuals and one front company associated with the MOIS who comprised the cyber threat group known publicly as “Advanced Persistent Threat 39” (APT39), “Chafer,” “Remexi,” “Cadelspy,” or “ITG07.”   According to OFAC, masked behind its front company, Rana Intelligence Computing Company (Rana), the MOIS employed a years-long malware campaign that targeted Iran’s own citizens, the government networks of Iran’s neighboring countries, and U.S.-based travel services companies. Concurrent with OFAC’s action, and following a long-term FBI investigation, the FBI released technical indicators about Rana’s malware in an FBI FLASH alert.  This alert provides information to assist organizations and individuals in determining whether they were targeted by Rana.

The above disruptive actions targeting Iranian malicious cyber activities were the result of investigations conducted by the FBI’s Boston, Newark, and Washington Field Offices and Cyber Division, the United States Attorney’s Offices for the Eastern District of Virginia, District of Massachusetts, and District of New Jersey, and the National Security Division’s Counterintelligence and Export Control Section.  Several of the disruptive actions were the result of the close partnership between these Department of Justice components and the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency and Department of the Treasury’s OFAC, and coordination through the National Cyber Investigative Joint Task Force.

The details contained in the above-described charging document are allegations.  The defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A federal court in Texas sentenced ice cream manufacturer Blue Bell Creameries L.P. to pay $17.25 million in criminal penalties for shipments of contaminated products linked to a 2015 listeriosis outbreak, the Justice Department announced today.

Blue Bell pleaded guilty in May 2020 to two misdemeanor counts of distributing adulterated ice cream products.  The sentence, imposed by U.S. District Judge Robert Pitman in Austin, Texas, was consistent with the terms of a plea agreement previously filed in the case.  The $17.25 million fine and forfeiture amount is the largest-ever criminal penalty following a conviction in a food safety case.

“American consumers must be able to trust that the foods they purchase are safe to eat,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division.  “The sentence imposed today sends a clear message to food manufacturers that the Department of Justice will take appropriate actions when contaminated food products endanger consumers.”

“The health of American consumers and the safety of our food are too important to be thwarted by the criminal acts of any individual or company,”  said Judy McMeekin, Pharm.D., Associate Commissioner for Regulatory Affairs, U.S. Food and Drug Administration.  “Americans expect and deserve the highest standards of food safety and integrity.  We will continue to pursue and bring to justice those who put the public health at risk by distributing contaminated foods in the U.S. marketplace.”    

 “The results of this investigation reflect the determination of the Defense Criminal Investigative Service to hold companies that sell food products to the military accountable and ensure they comply with food safety laws,”  said Michael Mentavlos, Special Agent-in-Charge of the DCIS Southwest Field Office.  “The health and safety of our service members and their dependents is of paramount importance.”

The plea agreement and criminal information filed against Blue Bell allege that the company distributed ice cream products that were manufactured under insanitary conditions and contaminated with Listeria monocytogenes, in violation of the Food, Drug and Cosmetic Act.  According to the plea agreement, Texas state officials notified Blue Bell in February 2015 that samples of 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.  Blue Bell directed its delivery route drivers to remove remaining stock of the two products from store shelves, but the company did not recall the products or issue any formal communication to inform customers about the potential Listeria contamination.  Two weeks after receiving notification of the first positive Listeria tests, Texas state officials informed Blue Bell that additional state-led testing confirmed Listeria in a third product.  Blue Bell again chose not to issue any formal notification to customers regarding the positive tests. Blue Bell’s customers included military installations.  

In March 2015, tests conducted by the Food and Drug Administration (FDA) and 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 all 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 led to a second recall announcement on March 23, 2015. 

According to the plea agreement with the company, FDA inspections in March and April 2015 revealed sanitation issues at the Brenham and Broken Arrow facilities, including problems with the hot water supply needed to properly clean equipment and deteriorating factory conditions that could lead to insanitary water dripping into product mix during the manufacturing process.  Blue Bell temporarily closed all of its plants in late April 2015 to clean and update the 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. 

Trial Attorneys Patrick Hearn and Matt Lash of the Civil Division’s Consumer Protection Branch prosecuted the case with assistance from Shannon Singleton and Michael Varrone of the FDA’s Office of Chief Counsel.  The criminal investigation was conducted by the FDA’s Office of Criminal Investigations and the Department of Defense Criminal Investigative Service.   

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

In August 2019 and August 2020, a federal grand jury in Washington, D.C., returned two separate indictments charging five computer hackers, all of whom were residents and nationals of the People’s Republic of China (PRC), with computer intrusions affecting over 100 victim companies in the United States and abroad, including software development companies, computer hardware manufacturers, telecommunications providers, social media companies, video game companies, non-profit organizations, universities, think tanks, and foreign governments, as well as pro-democracy politicians and activists in Hong Kong.

 The intrusions, which security researchers have tracked using the threat labels “APT41,” “Barium,” “Winnti,” “Wicked Panda,” and “Wicked Spider,” facilitated the theft of source code, software code signing certificates, customer account data, and valuable business information.  These intrusions also facilitated the defendants’ other criminal schemes, including ransomware and “crypto-jacking” schemes, the latter of which refers to the group’s unauthorized use of victim computers to “mine” cryptocurrency. 

Also in August 2020, the same federal grand jury returned a third indictment charging two Malaysian businessmen who conspired with two of the Chinese hackers to profit from computer intrusions targeting the video game industry in the United States and abroad.  Shortly thereafter, the U.S. District Court for the District of Columbia issued arrest warrants for the two businessmen.  On Sept. 14, 2020, pursuant to a provisional arrest request from the United States with a view to their extradition, Malaysian authorities arrested them in Sitiawan.  The department appreciates the significant cooperation and assistance provided by the Government of Malaysia, including the Attorney General’s Chambers of Malaysia and the Royal Malaysia Police.

In addition to arrest warrants for all of the charged defendants, in September 2020, the U.S. District Court for the District of Columbia issued seizure warrants that resulted in the recent seizure of hundreds of accounts, servers, domain names, and command-and-control (C2”) “dead drop” web pages used by the defendants to conduct their computer intrusion offenses.  The FBI executed the warrants in coordination with other actions by several private-sector companies, which included disabling numerous accounts for violations of the companies’ terms of service.  In addition, in partnership with the department, Microsoft developed and implemented technical measures to block this threat actor from accessing victims’ computer systems.  The actions by Microsoft were a significant part of the overall effort to deny the defendants continued access to hacking infrastructure, tools, accounts, and command and control domain names.  In coordination with today’s announcement, the FBI has also released a Liaison Alert System (FLASH) report that contains critical, relevant technical information collected by the FBI for use by specific private-sector partners.

“The department of Justice has used every tool available to disrupt the illegal computer intrusions and cyberattacks by these Chinese citizens,” said Deputy Attorney General Jeffrey A. Rosen.  “Regrettably, the Chinese communist party has chosen a different path of making China safe for cybercriminals so long as they attack computers outside China and steal intellectual property helpful to China.”

 “Today’s charges, the related arrests, seizures of malware and other infrastructure used to conduct intrusions, and coordinated private sector protective actions reveal yet again the department’s determination to use all of the tools at its disposal and to collaborate with the private sector and nations who support the rule of law in cyberspace,” said Assistant Attorney General John C. Demers.  “This is the only way to neutralize malicious nation state cyber activity.”

“Today’s announcement demonstrates the ramifications faced by the hackers in China but it is also a reminder to those who continue to deploy malicious cyber tactics that we will utilize every tool we have to administer justice,” said FBI Deputy Director David Bowdich. “The arrests in Malaysia are a direct result of partnership, cooperation and collaboration. As the cyber threat continues to evolve larger than any one agency can address, the FBI remains committed to being an indispensable partner to our federal, international and private sector partners to stop rampant cyber crime and hold those carrying out these kind of actions accountable.”

“The scope and sophistication of the crimes in these unsealed indictments is unprecedented. The alleged criminal scheme used actors in China and Malaysia to illegally hack, intrude and steal information from victims worldwide,” said Michael R. Sherwin, Acting U.S. Attorney for the District of Columbia.  “As set forth in the charging documents, some of these criminal actors believed their association with the PRC provided them free license to hack and steal across the globe.  This scheme also contained a new and troubling cyber-criminal component – the targeting and utilization of gaming platforms to both defraud video game companies and launder illicit proceeds.”

“The actions announced today reflect a years-long commitment by the FBI Washington Field Office to pursue the perpetrators of the computer intrusion campaigns described in the indictments, and to bring those perpetrators to justice,” said Acting Assistant Director in Charge James A. Dawson, FBI Washington Field Office. “This case demonstrates the FBI’s dedication to pursuing these criminals no matter where they are, and to whom they may be connected.” 

The August 2019 indictment charged Zhang Haoran (张浩然), 35, and Tan Dailin (谭戴林), 35, with 25 counts of conspiracy, wire fraud, aggravated identity theft, money laundering, and violations of the Computer Fraud and Abuse Act (“CFAA”).  The indictment charged Zhang and Tan with participating in a “Computer Hacking Conspiracy,” which targeted high-technology and similar organizations.  The indictment also charged that, as an additional way to make money, Zhang and Tan participated in a “Video Game Conspiracy,” through which Zhang and Tan, together with others, sought to make money by hacking video game companies, obtaining and otherwise generating digital items of value (e.g., video game currency), and then selling such items for profit.  In several instances, they used their unauthorized access to gaming company networks take action against other unrelated groups engaged in the same fraudulent generation of gaming artifacts, thereby attempting to eliminate the criminal competition.

One of the August 2020, indictments charged Jiang Lizhi (蒋立志), 35, Qian Chuan (钱川), 39, and Fu Qiang (付强), 37, with nine counts of racketeering conspiracy, conspiracy to violate the CFAA, substantive violations of the CFAA, access device fraud, identity theft, aggravated identity theft, and money laundering.  The racketeering conspiracy pertained to the three defendants’ conducting the affairs of Chengdu 404 Network Technology (“Chengdu 404”), a PRC company, through a pattern of racketeering activity involving computer intrusion offenses affecting over 100 victim companies, organizations, and individuals in the United States and around the world, including in Australia, Brazil, Chile, Hong Kong, India, Indonesia, Japan, Malaysia, Pakistan, Singapore, South Korea, Taiwan, Thailand, and Vietnam.  The defendants also compromised foreign government computer networks in India and Vietnam, and targeted, but did not compromise, government computer networks in the United Kingdom.  In one notable instance, the defendants conducted a ransomware attack on the network of a non-profit organization dedicated to combating global poverty.

The defendants associated with Chengdu 404 employed sophisticated hacking techniques to gain and maintain access to victim computer networks.  One example was the defendants’ use of “supply chain attacks,” in which the hackers compromised software providers and then modified the providers’ code to facilitate further intrusions against the software providers’ customers.  Another example was the hackers’ use of C2 “dead drops,” which are seemingly legitimate web pages that the hackers created, but which were surreptitiously encoded instructions to their malware.  However, they also employed publicly available exploits and tools, including the following common vulnerabilities and exposures (“CVE”):  CVE-2019-19781, CVE-2019-11510, CVE-2019-16920, CVE-2019-16278, CVE-2019-1652/CVE-2019-1653, and CVE-2020-10189.

The second August 2020 indictment charged Wong Ong Hua, 46, and Ling Yang Ching, 32, both Malaysian nationals and residents, with 23 counts of racketeering, conspiracy, identity theft, aggravated identity theft, access device fraud, money laundering, violations of the CFAA, and falsely registering domain names.  The indictment alleged that Wong and Ling conducted the affairs of Sea Gamer Mall, a Malaysian company founded by Wong, through a pattern of racketeering activity involving computer intrusion offenses targeting the video game industry in the United States, France, Japan, Singapore, and South Korea.  The indictment alleged that Wong and Ling worked with various hackers, including Zhang and Tan, to profit from the hackers’ criminal computer intrusions at video game companies. 

The indictment against Zhang and Tan charges the defendants with two counts of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; two counts of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison; five counts of wire fraud, which carries a maximum sentence of 20 years in prison; nine counts of intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison; four counts of unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; two counts of aggravated identity theft, which carries a mandatory sentence of two years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison.

The indictment against Jiang, Qian, and Fu charges the defendants with one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison; one count of conspiracy to commit computer fraud, which carries a maximum sentence of five years in prison; one count of intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison; one count of unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; one count of threatening to damage a protected computer, which carries a maximum sentence of five years in prison; one count of access device fraud, which carries a maximum sentence of 10 years in prison; one count of identity theft, which carries a maximum sentence of five years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison.

The indictment against Wong and Ling charges the defendants with one count of racketeering conspiracy, which carries a maximum sentence of 20 years in prison; one count of racketeering, which carries a maximum sentence of 20 years in prison; three counts of intentional damage to a protected computer, which carries a maximum sentence of 10 years in prison; five counts of unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; five counts of furthering fraud by unauthorized access to a protected computer, which carries a maximum sentence of five years in prison; two counts of access device fraud, which carries a maximum sentence of 10 years in prison; two counts of identity theft, which carries a maximum sentence of five years in prison; one count of aggravated identity theft, which carries a mandatory sentence of two years in prison; and three counts of money laundering, which carries a maximum sentence of 20 years in prison.  The indictment also alleges false registration of domain names, which would increase the maximum sentence of imprisonment for money laundering to 27 years; the maximum sentence of imprisonment for unlawful access to a protected computer to 10 years instead of five years; the maximum sentence of imprisonment for intentional damage to a protected computer to 17 years instead of 10 years; and the mandatory sentence of imprisonment for aggravated identity theft to four years instead of two years.

The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only; any sentencing's of the defendants will be determined by the assigned judge.

The investigation was conducted jointly by the U.S. Attorney’s Office for the District of Columbia, the National Security Division of the Department of Justice, and the FBI’s Washington Field Office.  The FBI’s Cyber Division assisted in the investigation and, along with FBI’s Cyber Assistant Legal Attachés and Legal Attachés in countries around the world, provided essential support.  Numerous victims cooperated and provided valuable assistance in the investigation. 

The department is also grateful to Microsoft, including Microsoft’s Threat Intelligence Center (MSTIC) and Digital Crimes Unit (DCU), to Google, including its Threat Analysis Group (TAG), to Facebook, and to Verizon Media, including its Paranoids Advanced Cyber Threats Team, for the assistance they provided in this investigation.

Assistant U.S. Attorney Demian Ahn of the District of Columbia, Assistant U.S. Attorney Tejpal Chawla of the District of Columbia, and Trial Attorney Evan Turgeon of the National Security Division’s Counterintelligence and Export Control Section are prosecuting this case.

The Justice Department’s Office of International Affairs provided critical assistance. 

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

A diner owner pleaded guilty today to failing to pay employment taxes, 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, Nikolaos Avgoustidis, the owner and operator of the Rocky Point Town House Diner, did not pay employment taxes for all of the diner’s employees. From 2011 to 2013, Avgoustidis paid certain employees in cash, without reporting it to the IRS, and further, without paying the social security and Medicare taxes that must be withheld from the employees’ wages. In total, Avgoustidis caused a tax loss to the IRS of approximately $130,000.

U.S. District Judge Gary R. Brown scheduled the sentencing for Jan. 15, 2021. At sentencing, Avgoustidis faces a maximum sentence of 5 years. He also faces a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Sean Green 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.

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 Indiana.  While not a designated Legend district, the U.S. Attorney’s Office for the Northern District of Indiana works closely with the U.S. Attorney’s Office for the Northern District of Illinois, which encompasses Chicago.  Operation Legend launched in Chicago on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates.  Similarly, Legend was also launched in the Southern District of Indiana, which includes Indianapolis, on Aug. 14, 2020.

United States vs. Darryl Ivery Jr.

“This case demonstrates my office’s commitment to partnering with our neighbors in Chicago to aggressively prosecute those who illegally supply guns to criminals in Indiana and Illinois,” said Thomas L. Kirsch II, U.S. Attorney for the Northern District of Indiana.  “My office is committed to reducing gun violence, and the state line will not save criminals from federal investigations and prosecutions.”

Darryl Ivery Jr. was charged on Aug. 26, 2020, with making a material false statement in the acquisition of a firearm.

According to the charging document, during the course of an ATF investigation into straw purchasers, i.e. individuals who lie on ATF Form 4473 about their status as legal purchasers of firearms, Darry Ivery Jr. became a person of interest based on a large number of firearms he had purchased, some of which had been recovered by law enforcement.

It is alleged that between Jan. 7, 2019, and Aug. 10, 2020, Ivery purchased a minimum of 26 firearms from Federal Firearm Licensed (FFL) gun dealers in Indiana.  Seven of the guns he purchased have been recovered by various law enforcement agencies, including six that were recovered in Chicago, Illinois, one of which was recovered at the scene of a shooting.

For each of the guns Ivery purchased, he answered, “Yes” on ATF Form 4473: “Are you the actual transferee/buyer of the firearm(s) listed on this form?”

When interviewed by ATF Special Agents, it is alleged that Ivery admitted that with the exception of one of the firearms that he purchased, all of the others were bought for individuals who resided in Chicago who asked him to buy firearms for them.  They all paid Ivery in cash for every purchase he made.

Ivery purchased the following firearms:

01/07/2019

S & W

SD9VE

9mm

02/18/2020

Jimenez

IA

.380

02/18/2020

SCCY

CPX-1

9mm

03/03/2020

Jimenez

JA

9mm

03/03/2020

S & W

SD40

40

03/13/2020

Glock

27

40

03/13/2020

Glock

er

40

03/31/2020

S & W

M&P

40

04/19/2020

Glock

26

9mm

04/30/2020

Glock

43

9mm

04/30/2020

05/13/2020

Glock Century Arms

22

Micro Draco

40

7.62x.39

06/06/2020

Glock

17

9mm

06/10/2020

Glock

22

40

06/10/2020

Glock

48

9mm

06/10/2020

S & W

SD9VE

9mm

06/19/2020

Taurus

PT111 G2

9mm

06/19/2020

Taurus

PT111 G2

9mm

06/19/2020

HS Produkt

XD45

.45

07/06/2020

Glock

30

.45

07/07/2020

Glock

43x

9mm

07/13/2020

FN

509T

9mm

07/23/2020

Shadow

MR920

SSCO11797

07/23/2020

Springfield

XDM

.45

08/10/2020

Ruger

57

5.7x.28

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
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.

Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with more than 592 defendants charged with federal crimes.

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.

A resident of Topeka, Kansas, has been indicted by a federal grand jury in the U.S. District Court for the District of Kansas on federal child pornography charges, Acting Assistant Attorney General Brian Rabbitt of the Justice Department’s Criminal Division announced today.

The three-count indictment charged Jeffrey Pierce with producing and possessing child pornography.  Pierce is alleged to have solicited sexually explicit images and videos from minor victims.

This case is brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.

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 Justice Department announced today that a federal court in Orlando, Florida, permanently enjoined Advanced Tax Services Inc. and Genson Financial Group LLC from preparing federal tax returns for others and ordered the businesses to disgorge $710,191.55, jointly and severally, representing the ill-gotten gains that they received for the preparation of tax returns. The court also entered permanent injunctions and disgorgement judgments against defendants Lenorris Lamoute and Dosuld Pierre, whom the court found prepared tax returns for compensation at Advanced Tax Services. The order was entered on default because the defendants failed to defend against the government’s allegations.

The court found that the defendants prepared tax returns making false or fraudulent claims for the Earned Income Tax Credit, often based on fabricated business income and expenses, bogus or improperly claimed dependents, and false filing status. The court further determined that the defendants prepared returns reporting non-existent Schedule A businesses, false itemized deductions, false or fraudulent fuel tax credits, and bogus education expenses.

Previously, the court entered permanent injunctions against Marcgenson Marc, the owner of Advanced Tax Services and Genson Financial Group, as well as Tiana Character and Character’s business, Character Financial Solutions LLC, and Shirleen Thales, and ordered Marc to disgorge $710,191.55.

“The Tax Division will work with its IRS partners to shut down return preparers who claim improper or illegal deductions and credits for their customers” said Principal Deputy Assistant Attorney General Zuckerman of the Justice Department’s Tax Division. “Taxpayers should be vigilant so they do not file tax returns claiming false deductions.”

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

The Department of Justice announced today that QuantaDyn Corporation (QuantaDyn), headquartered in Ashburn, Virginia, has agreed to resolve civil claims arising from allegations that it engaged in a bribery scheme to steer government contracts for training simulators to the company, as part of a broader settlement that includes a guilty plea by the company.  As part of the plea agreement, QuantaDyn has agreed to pay $37,757,713.91 in restitution, which also will resolve the company’s civil False Claims Act liability for the scheme.  William T. Dunn Jr., the majority owner, President, and Chief Executive Officer of QuantaDyn, has separately paid $500,000 to resolve his personal False Claims Act liability. 

“When government contractors pay bribes to military contracting officials to obtain contracts, they prevent both our military and the American taxpayers from receiving products that are procured fairly and objectively and at a reasonable price,” said Acting Assistant Attorney General Jeffrey Bossert Clark for the Department of Justice’s Civil Division.  “Today’s settlement demonstrates our continuing commitment to protecting the integrity of the government’s procurement process and ensuring that is untainted by fraud and corruption.” 

“I am proud that our team and our law-enforcement partners were able to obtain justice for the American taxpayer in this case.  We will not tolerate fraud against important federal programs,” stated U.S. Attorney John F. Bash for the Western District of Texas.

“The integrity of GSA’s contracting is vital to good government,” said U.S. General Services Administration (GSA) Inspector General Carol Ochoa.  “Our special agents have been tireless in investigating corruption, and we will continue to work with our law enforcement partners to vigorously prosecute it wherever we find it.”

Founded in 2000, QuantaDyn is a privately held software engineering firm specializing in developing training simulation systems for Department of Defense agencies, including the Air Force and the Air National Guard, both as a prime contractor and a subcontractor.  

The civil settlement announced today, which was based on the company and Dunn’s ability to pay, resolves allegations that QuantaDyn, during the time period when Dunn was President, engaged in a bribery scheme to steer the award of government contracts for training simulators to QuantaDyn.  The United States alleged that while Dunn was QuantaDyn’s President, the company formed a corrupt partnership with an Air Force contracting official who provided procurement-sensitive information to QuantaDyn during the pre- and post-award phases of the contract in exchange for bribes.  The United States contended that, as a result of this scheme, QuantaDyn caused a prime contractor to submit false invoices to the United States.

Contemporaneous with the civil settlement, U.S. Attorney John F. Bash for the Western District of Texas announced that the United States and QuantaDyn have entered into a plea agreement to resolve criminal allegations related to the bribery scheme.  On Jan. 15, 2020, the U.S. Attorney’s Office for the Western District of Texas unsealed indictments against QuantaDyn, the former Air Force contracting official, and other individuals.  Under the plea agreement, QuantaDyn has agreed to plead guilty to conspiracy to commit wire fraud, serve a five-year term of probation and to take certain remedial measures, and pay $37,757,713.91 in restitution, a criminal penalty of $6,300,000, and forfeiture of $7,099,863.77.

This civil settlement was the result of a coordinated effort among the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Western District of Texas; the GSA Office of Inspector General (OIG), Greater Southwest and Rocky Mountain Investigations Division; the Defense Criminal Investigative Service (DCIS), Southwest Field Office; the U.S. Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 3 in San Antonio; the U.S. Army Criminal Investigation Command, Major Procurement Fraud Unit (CID/MPFU), Southwestern Fraud Field Office; the Internal Revenue Service-Criminal Investigation (IRS-CI); and the Defense Contract Audit Agency (DCAA), Headquarters, Operations Investigative Support Division (OIS).

Except as admitted in the plea agreement, the claims resolved by the civil settlement are allegations only and there has been no determination of liability. 

Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend.  Today’s case is out of the District of New Mexico.  Operation Legend launched in Albuquerque on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates.

United States vs. Eugene Samuel Ouzts III

“This case illustrates the need for our persistence and vigilance in the pursuit of justice,” said U.S. Attorney John Anderson for the District of New Mexico.  “The perpetrators of dangerous crimes in Albuquerque and across the country have shown that they will take advantage of any crack they perceive in the system. We cannot and will not let down our guard.”

Eugene Samuel Ouzts III was charged in federal court in New Mexico on Sept. 1, 2020, with possession with intent to distribute 100 grams and more of heroin; possession of a firearm in furtherance of drug trafficking; and being a felon in possession of a firearm.

According to the charging document, on Aug. 23, 2020, local law enforcement conducted a traffic stop of a vehicle allegedly connected to an aggravated assault.  Ouzts was identified as the driver of the vehicle, and upon being stopped, admitted to law enforcement that there was a firearm in the vehicle and that he was a convicted felon.  Ouzts’ vehicle was then impounded pending a search warrant.

On Aug. 30, during a search of Ouzts’ vehicle, law enforcement seized a loaded silver Taurus PT 145 Pro pistol with one cartridge in the chamber and three clear baggies containing more than 169 grams of heroin. 

It is alleged that while Ouzts’ vehicle was impounded between Aug. 23 and Aug. 30, Ouzts attempted to break into his vehicle at the impound lot and attempted to bribe employees in an attempt to get into his vehicle to retrieve the illicit drugs and firearm.

Because of a previous felony conviction punishable by more than one year in prison, Ouzts is prohibited from possessing firearms.

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
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.

Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with more than 592 defendants charged with federal crimes.

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.

The Justice Department today announced that it has reached a settlement with the City of Venice, Florida, resolving its race discrimination lawsuit against the city. 

The suit alleged the city violated Title VII of the Civil Rights Act of 1964 when it subjected James Williamson, a 30-year Black city employee, to a series of unwarranted disciplinary actions, including two unpaid suspensions and ultimately termination, because of his race. Title VII is a federal statute that prohibits employment discrimination on the basis of race, color, national origin, sex, and religion.

“It is both morally wrong and illegal to single out any employee for harsh and unwarranted discipline because of the employee’s race, and to subject individuals, like Mr. Williamson, to discharge because of race,” said Assistant Attorney General for the Civil Rights Division, Eric S. Dreiband. “In this free country, all workers have a right to work without suffering unjust and unlawful race discrimination. This settlement agreement reflects the Civil Rights Division’s continued commitment to vigorous enforcement of the Civil Rights Act’s prohibition against race discrimination by state and local governmental employers.”

According to the United States’ complaint filed today in the U.S. District Court for the Middle District of Florida, the City of Venice did not have legitimate, non-discriminatory reasons for treating Williamson far more harshly in imposing discipline than the city did toward his comparable white coworkers. According to the lawsuit, the city disciplined Williamson nine times, over a two-year period, including three separate reprimands in one day. These punishments were predicated on Williamson’s supposed violations of work rules, such as taking normal lunch breaks in public parks, that were never enforced against his white coworkers. 

The city ultimately fired Williamson, the only Black employee working in the Parks Division of the city’s Public Works Department, without justification and after he had been subjected to prolonged use of racial slurs, including the n-word, directed towards him and in his presence, and to close scrutiny of, and finding fault with, his work without legitimate reasons.

Under the terms of the settlement agreement, the city will pay Williamson $195,000 for lost wages and compensatory damages. The settlement agreement also requires the city to develop and submit to the Justice Department for approval anti-discrimination policies and to provide its supervisors and managers with training on those policies and on the types of conduct in the workplace that constitute unlawful employment practices under Title VII.   

The Tampa Field Office, which is part of the Miami District Office of the Equal Employment Opportunity Commission (EEOC), investigated and attempted to resolve Williamson’s charge of discrimination before referring it to the Department of Justice as an enforcement action. More information about the EEOC’s jurisdiction is available on its website at www.eeoc.gov.  

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

Turab Lookman, 68, of Santa Fe, New Mexico, was sentenced on Sept. 11 to five years of probation and a $75,000 fine for providing a false statement to the Department of Energy.  Lookman is not allowed to leave New Mexico for the term of his probation.

On June 6, 2018, Lookman, then an employee at Los Alamos National Laboratory, falsely denied to a counterintelligence officer that he had been recruited or applied for a job with the Thousand Talents Program, established by the Chinese government to recruit individuals with access to or knowledge of foreign technology and intellectual property.  Lookman pleaded guilty to the charge in January.

The FBI investigated this case. Assistant U.S. Attorneys George Kraehe and Jon Stanford prosecuted the case.

A federal court permanently enjoined a Chicago firm from preparing and distributing adulterated sprouts and soybean products in violation of federal law, the Department of Justice announced today.

In a civil complaint filed September 15, 2020 at the request of the U.S. Food and Drug Administration (FDA), the United States alleged that Fortune Food Product, Inc., company president Steven Seeto, and supervisor Tiffany Jiang violated the Federal Food, Drug, and Cosmetic Act by growing sprouts and preparing soy products that FDA inspections showed did not comply with food safety regulations. According to the complaint, FDA issued a warning letter to the company in 2018, and tests in 2018 and 2019 revealed Listeria species inside the facility and E. coli in water used to irrigate sprouts. 

“The food consumers buy must be safe to eat,” said Acting Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Civil Division.  “The Department of Justice will continue to partner with the FDA to ensure that companies follow food safety rules and prepare food in sanitary conditions.” 

The defendants agreed to be bound by a consent decree filed with the complaint in U.S. District Court for the Northern District of Illinois.  The order entered by the court permanently enjoins the defendants from violating the Food, Drug, and Cosmetic Act and the Produce Safety Rule, and it requires Fortune Food to stop growing and packing sprouts or preparing other foods unless it complies with specific remedial measures set forth in the injunction.

“We are committed to protecting the food supply and when a company fails to follow the law, we will take action,” said FDA Chief Counsel Stacy Cline Amin, J.D.  “The FDA worked closely with DOJ to obtain this injunction and protect consumers.”

Trial Attorney Douglas Ross of the Civil Division’s Consumer Protection Branch represented the United States with the assistance of Associate Chief Counsel for Enforcement William Thanhauser of FDA’s Office of the Chief Counsel, and the U.S. Attorney’s Office for the Northern District of Illinois.

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

The Department of Justice’s Antitrust Division and the Federal Trade Commission (FTC) are co-hosting the International Competition Network’s (ICN) 19th annual conference, which opens today and runs through Thursday, September 17, 2020.  Assistant Attorney General Makan Delrahim and FTC Chairman Joseph J. Simons are leading the U.S. agencies’ participation in the ICN’s first virtual conference.  Assistant Attorney General Delrahim and Chairman Simons will deliver opening remarks and speak on the conference’s showcase program addressing the challenges of enforcement in the digital economy.

Originally planned as an in-person event in Los Angeles in May, the multi-day conference features discussions across a range of competition enforcement and policy issues, including those that involve the digital economy, and highlights the progress of the ICN Working Groups on mergers, cartels, unilateral conduct, advocacy and agency effectiveness.  ICN members and non-governmental advisors (NGAs) will participate, including leadership from antitrust agencies, as well as competition experts from international organizations and the legal, business and academic communities.  

“We are proud to co-host the ICN annual conference, an important forum for our international partners in antitrust enforcement and others who are dedicated to effective competition policy,” said Assistant Attorney General Makan Delrahim. “As the economy moves to greater globalization and digitization, convergence and cooperation are more important than ever to ensuring sound antitrust enforcement.”

“The ICN’s work benefits consumers by promoting sound enforcement and policy, and by reinforcing competition’s central role in driving productivity, innovation, and economic recovery,” said FTC Chairman Joseph Simons.  It is a great honor for the FTC to support the ICN’s critical work and to co-organize this year’s conference.”

The ICN was created in October 2001 to increase understanding of competition policy and promote convergence toward sound antitrust enforcement around the world.  It was founded by 15 agencies including the Antitrust Division and FTC, and has grown to 140 agencies from 129 jurisdictions, supported by a wide network of NGAs from around the world. 

Registration is not required.  A link to view the entire conference will be provided on the conference webpage immediately before the start of the conference at 8:00 am EDT.

The U.S. Department of Justice, Environmental Protection Agency (EPA), and California Air Resources Board (CARB) announced today a proposed settlement with German automaker Daimler AG and its American subsidiary Mercedes-Benz USA, LLC (collectively, “Daimler”) resolving alleged violations of the Clean Air Act and California law associated with emissions cheating. 

Under the proposed settlement, lodged with the U.S. District Court for the District of Columbia, Daimler will recall and repair the emissions systems in Mercedes-Benz diesel vehicles sold in the United States between 2009 and 2016 and pay $875,000,000 in civil penalties and roughly $70,300,000 in other penalties.  The company will also extend the warranty period for certain parts in the repaired vehicles, perform projects to mitigate excess ozone-creating nitrogen oxides (NOx) emitted from the vehicles, and implement new internal audit procedures designed to prevent future emissions cheating.  The recall program and federal mitigation project are expected to cost the company about $436,000,000.  The company will pay another $110,000,000 to fund mitigation projects in California.  Taken together, the settlement is valued at about $1.5 billion.    

Vehicle manufacturers are required by the Clean Air Act and federal regulations to apply for and receive a certificate of conformity from EPA before selling a new model year vehicle in the United States.  As part of the application process, manufacturers must demonstrate through testing that a vehicle meets applicable emissions standards and disclose to EPA all auxiliary emission control devices (AECDs) and any defeat devices installed in the vehicle. 

The settlement addresses allegations made in separate civil complaints filed by the United States and CARB today in the District of Columbia that, from 2009 to 2016, Daimler manufactured, imported, and sold more than 250,000 diesel Sprinter vans and passenger cars with undisclosed AECDs and defeat devices programmed into the vehicles’ complex emissions control software.  These devices cause the vehicles to produce compliant results during emissions testing.  But when not running a test, the vehicles’ emissions controls perform differently, and less effectively, resulting in an increase in NOx emissions above compliant levels. 

NOx emissions from vehicles play a key role in ground-level ozone production and negatively impact human health.  Indeed, studies have indicated that breathing ozone may cause damage to lung tissue in children and adults, and it may worsen conditions like asthma, emphysema, and bronchitis.  The pollutant has also been linked to cardiac disease. 

“By requiring Daimler to pay a steep penalty, fix its vehicles free of charge, and offset the pollution they caused, today’s settlement again demonstrates our commitment to enforcing our nation’s environmental laws and protecting Americans from air pollution,” said Deputy Attorney General Jeffrey Rosen.

“The message we are sending today is clear.  We will enforce the law.  We will protect the environment and public health.  And if you try to cheat the system and mislead the public, you will be caught,” said EPA Administrator Andrew Wheeler.  “Those that violate public trust in pursuit of profits will forfeit both.”

EPA and CARB discovered the defeat devices through testing conducted in the wake of the Volkswagen scandal at EPA’s National Vehicle and Fuel Emissions Laboratory in Michigan and at CARB’s test laboratory in El Monte, California. 

The settlement requires Daimler to implement a recall and repair program to remove all defeat devices from the affected vehicles at no cost to consumers and bring the vehicles into compliance with applicable emissions standards under the Clean Air Act.  The repair will consist of a software update and replacement of select hardware, which differs across models and model years. 

Daimler must repair at least 85 percent of the affected passenger cars within two years and at least 85 percent of the affected vans within three years.  The company must also offer an extended warranty covering all updated software and hardware, and it must test repaired vehicles each year for the next five years to ensure the vehicles continue to meet emissions standards over time.  Daimler will face stiff penalties if any category of updated vehicles fails to meet applicable emissions standards or if it fails to meet the 85 percent recall rate for passenger cars or vans.   

The settlement further requires Daimler to implement systemic corporate reforms to detect and try to eliminate violations in the future.  This includes conducting significant testing on new diesel and gasoline motor vehicles using a portable emissions measurement system to assess compliance under real-world conditions, installing a robust whistleblower program, enhancing annual AECD and defeat device training for its employees, and performing internal audits subject to review and critique by an external compliance consultant.

Daimler must also replace 15 old locomotive engines with new, less-polluting engines to offset excess NOx emitted from its vehicles. 

The proposed settlement is subject to a 30-day public comment period and court review and approval.  Copies of the consent decree lodged with the court are available here. Further information about the settlement is available on EPA’s website at: https://www.epa.gov/enforcement/daimler-ag-and-mercedes-benz-usa-llc-clean-air-act-civil-settlement.

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

United States vs. Gregory Dulaney

“Operation Legend continues to show results,” said U.S. Attorney Matthew Schneider for the Eastern District of Michigan.  “Positive changes can happen when law enforcement agencies from across the board work together to make our streets safer.  Removing the scourge of drugs and guns from our communities is our top priority.”

Gregory Dulaney was charged on Aug. 19, 2020, with being a felon in possession of a firearm and distributing narcotics.

According to the charging document, ATF special agents conducted an undercover operation in which confidential informants purchased suspected crack cocaine from Dulaney at a motel in Detroit.  On July 30, 2020, while purchasing 19 baggies of crack cocaine from Dulaney, a confidential informant also allegedly noticed a firearm in Dulaney’s pants pocket.

On Aug. 8, 2020, local police conducted a traffic stop of an individual wanted on a no-bond warrant for cocaine possession.  During the stop, an officer allegedly observed the front seat passenger – later identified as Dulaney – placing something on the floorboard or under the seat.  The officer asked Dulaney for identification, and Dulaney provided a false name.

During a subsequent search of Delany, he was found in possession of a crack pipe and a small amount of heroin.  Officers then searched the vehicle Delaney had been in and found a loaded Hi-Point, C9, 9mm handgun under the front passenger seat.  It is alleged that Delaney eventually admitted to providing the officer with a fake name because he was on parole for a previous felony conviction.

Because of a previous felony conviction punishable by more than one year in prison, Dulaney is prohibited from possessing firearms.

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

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.  Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 592 defendants charged with federal crimes.

On Friday, Sept. 11, Judge James T. Jones of the U.S. District Court for the Western District of Virginia denied a request for a preliminary injunction against the Administration’s landmark new regulations implementing under the National Environmental Policy Act (NEPA), which will modernize environmental review, enhance the information-gathering process, and facilitate more meaningful public participation in the protection of our environment.  These regulations had not been subject to a major revision since 1978, when they were first promulgated, and they were in need of modernization to improve the infrastructure permitting process.

“We are gratified that the Court rejected plaintiff’s injunction request, and the Department will continue to defend these vital rules,” said Deputy Attorney General Jeffrey A. Rosen. “The modernization of the NEPA process advances both environmental protection and economic development.”

“I am pleased to have argued this case for the President’s Council of Environmental Quality and that Judge Jones agreed to deny the nationwide preliminary injunction,” said Jeffrey Bossert Clark, Assistant Attorney General of the Environment and Natural Resources Division.

The Scripps Research Institute (TSRI) has agreed to pay the U.S. $10 million to settle claims that it improperly charged NIH-funded research grants for time spent by researchers on non-grant related activities such as developing, preparing, and writing new grant applications, teaching, and engaging in other administrative activities, the Department of Justice announced today. 

“The NIH has finite resources to support important research across the nation,” said Acting Assistant Attorney General Jeffrey Clark for the Department of Justice’s Civil Division.  “Today’s settlement demonstrates our commitment to protect those resources by ensuring that NIH grants funds are used for the purposes for which they were intended."

“Federal grant recipients must use the grant funds they receive on tasks that specifically relate to the funded project.  Those that improperly charge the government for costs unrelated to the project must be held accountable,” said U.S. Attorney Robert K. Hur.  “The U.S. Attorney’s Office and the Department of Justice have a duty to protect government resources and ensure they are used appropriately.”

“Taxpayers funds for medical research are finite and the need for scientific advances is great; therefore, it’s critical that these resources are used as intended,” said Special Agent in Charge Maureen R. Dixon, U.S. Department of Health and Human Services Office of Inspector General.  “Working with our law enforcement partners, our investigators will continue to protect these resources so that they are spent appropriately.”

TSRI is a non-profit biomedical research institute with campuses located in Jupiter, Florida and La Jolla, California. TSRI receives millions of dollars in funding from NIH through hundreds of grants each year.  The settlement resolves allegations that between 2008 and 2016, TSRI failed to have a system in place for its faculty to properly account for time spent on activities that cannot be charged directly to NIH-funded projects or are unrelated to the research activities of the NIH-funded project.  Consequently, the U.S. contended that TSRI improperly charged time spent by faculty on developing, preparing, and writing new grant applications directly to existing NIH-funded projects, rather than allocating such charges as indirect costs.  The U.S. also alleged that TSRI improperly charged NIH-funded projects for time spent by its faculty on other activities unrelated to the funded projects, such as teaching, TSRI committee work, and other administrative tasks. 

The settlement resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the False Claims Act by Thomas Burris, Ph.D, a former TSRI employee.  The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery.  Dr. Burris will receive $1.75 million.

The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the District of Maryland, and the Office of Inspector General of the Department of Health and Human Services.

The case is captioned U.S. ex rel. Burris v. The Scripps Research Institute, Case No. 1:15-CV-01443 (D. Md.).  The claims resolved by the settlements are allegations only; there has been no determination of liability.

Attorney General William P. Barr has released the following statement:

“Nineteen years ago this morning, our nation was subjected to a horrific, unprovoked terrorist attack that killed nearly 3,000 Americans in New York City, the Pentagon, and aboard United Flight 93 — which was downed by heroic passengers who saved untold numbers of lives.  On behalf of the Department of Justice, I convey my sympathy to the families of the victims of all who were lost that tragic day.  Although nearly two decades have passed, we will never forgot those who were murdered.  Nor will we forget who murdered them.  This department’s resolve to protect the people of the United States — and to bring to justice those who would harm them — is as strong as it was on September 12, 2001. 

On this anniversary, I extend particular gratitude to the law enforcement personnel and others who responded courageously to the attacks, many of whom gave the last full measure of devotion to save others that day and many of whom have later suffered from illness related to the attacks.  The deadliest day in the history of American law enforcement was also its finest hour.  In the images of police officers and firefighters charging into the burning towers and carrying to safety victims from all walks of life, we see the true character of those who volunteer to protect and serve.  All Americans owe them their gratitude and steadfast support.  The Department of Justice is proud to stand with the law enforcement heroes of September 11, 2001, and we strongly support the permanent September 11th Victim Compensation Fund — signed into law last year by President Trump — that has awarded more than $7 billion to them and others still suffering the costs of the attacks.  The Department of Justice honors the courage and sacrifice of all who saved lives on September 11, 2001, and we will be forever grateful to all who selflessly serve in American law enforcement.”  

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

United States vs. Jeffrey R. Jones

“The defendant is alleged to have maintained an arsenal of firearms to facilitate his drug trafficking,” said U.S. Attorney Matthew D. Krueger for the Eastern District of Wisconsin.  “By bringing federal agents to work side-by-side with state and local investigators, Operation Legend is leading to prosecutions that will make Milwaukee a safer place to live.”

Jeffrey R. Jones was charged on Aug. 25, 2020, with federal drug trafficking and firearms offenses.

According to the indictment, Jones is charged with seven drug-related offenses, including distributing methamphetamine, heroin, and more than 40 grams of fentanyl, and possessing with the intent to distribute more than half a kilo of methamphetamine.

The indictment also alleges that Jones possessed firearms in furtherance of the aforementioned drug trafficking crimes.  In addition, Jones is charged with being a felon in possession of the following firearms:

• a Sig Sauer P226 .40 caliber semi-automatic pistol;
• an FN Herstal FS2000 5.56 x 45 semi-automatic Carbine rifle;
• an Action Arms Uzi Model 45 semi-automatic Carbine rifle;
• a Glock 23 Gen 4. 40 caliber semi-automatic pistol;
• an American Tactical M1911 GI semi-automatic pistol;
• a Ruger LCP II 380 semi-automatic pistol;
• a Glock 23 .40 caliber semi-automatic pistol; and
• a Taurus .357 Magnum revolver.

Because of a previous felony conviction punishable by more than one year in prison, Jones is prohibited from possessing firearms.

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
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.  Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 592 defendants charged with federal crimes.

INTERPOL Washington—the U.S. National Central Bureau (USNCB)—has partnered with the U.S. Department of State and INTERPOL to dramatically improve Nigeria’s border security screening capacity. Under the U.S.-funded Project TERMINUS, on September 7th, Nigeria became the first African country to implement an automated system for uploading stolen and lost passport documents (SLTD) into the INTERPOL database that can be queried by all 194 INTERPOL member countries. This automation was made possible by implementing INTERPOL Washington’s SLTD Uploader software solution.

INTERPOL Washington’s Project TERMINUS, funded by the U.S. Department of State, executes solutions to upgrade INTERPOL member nations’ access to INTERPOL information sharing services.  The goal of Project TERMINUS is to extend INTERPOL's I-24/7 secure global police communications system in high risk areas and select host nations. “INTERPOL Washington is pleased to continue our partnership with the U.S. Department of State to develop and deploy advanced tools and technology to assist our worldwide law enforcement partners in the fight against transnational crime and terrorism.  By improving border security in Nigeria, we not only improve the safety of Nigerian citizens, we also strengthen the global chain of law enforcement tools linking together INTERPOL’s member countries,” said USNCB Director Uttam Dhillon.

This initiative also helps member countries to meet their United Nations Security Council obligations to “… prevent the movement of terrorists and terrorist groups by effective border controls … and to “… improve international, regional, and sub-regional cooperation through increased sharing of information.” Due to any number of challenges, many countries, such as Nigeria, lacked access to INTERPOL’s 97-million-document SLTD database. 

The SLTD Uploader software solution is a USNCB custom design which allows both the Nigeria Immigration Service and the National Central Bureau (NCB) in Abuja to connect directly to the INTERPOL database. Nigeria’s first document stream automatically uploaded approximately 150,000 SLTD records held in the Nigerian domestic SLTD database. This accomplishment culminated more than four months of active collaboration between the USNCB, the State Department, INTERPOL, and the Government of Nigeria, all of which was conducted virtually for the first time. “The completion of this project illustrates the ability of the USNCB to continue fulfilling its important around-the-clock mission in the midst of a worldwide pandemic,” said Dhillon.

The Nigeria project is the latest in a series of successful SLTD access improvement projects under the TERMINUS initiative, each building on prior lessons learned. Similar efforts have been executed in Malaysia and Indonesia, over the last three years.

INTERPOL’s SLTD database is a critical tool for combatting terrorism by preventing Foreign Terrorist Fighter (FTF) movements by identifying and interdicting FTFs and other transnational criminals using stolen, lost or revoked documents such as passports, visas and identity documents. By ensuring that law enforcement officers have access to INTERPOL’s I-24/7 system, front line authorities can search and cross check traveler data in a matter of seconds and share sensitive or urgent police information with their counterparts around the globe in real time, 24 hours a day, 7 days a week.

A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to the International Criminal Police Organization on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.

This week, Attorney General William P. Barr traveled to Chicago, Illinois, and Phoenix, Arizona, to announce updates on Operation Legend and the results of Operation Crystal Shield, respectively.

In Chicago yesterday, Attorney General Barr held a press conference at the U.S. Attorney’s Office for the Northern District of Illinois during which he provided updates on Operation Legend. Joined by ATF Acting Director Regina Lombardo, FBI Deputy Director David Bowdich, U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois, U.S. Attorney Justin Herdman for the Northern District of Ohio, and U.S. Attorney Thomas Kirsch II for the Northern District of Indiana, the Attorney General announced that since Operation Legend was launched on July 8, there have been more than 2,000 arrests, with nearly 600 defendants charged in federal courts. He also announced that since launching Operation Legend in Chicago on July 22, the homicide rate has declined significantly. In fact, when comparing the seven weeks prior to the operation’s launch with the five weeks immediately following the launch, homicides in Chicago declined 50%.

As a designated Operation Legend city, the Bureau of Justice Assistance will make available $3.5 million in funding to reimburse the Chicago Police Department and City of Chicago for the work of local law enforcement on the federal task forces supporting Operation Legend’s violent crime reduction efforts.  The COPS Office has also made $9.375 million available to the Chicago Police Department to fund the hiring of 75 officers. 

Immediately following the press conference, Attorney General Barr visited the Chicago Police Department’s (CPD) 7th District, where he met with the CPD superintendent, the 7th district commander, and officers. During his time at CPD, the Attorney General received briefings on active cases, as well as on the technologies, such as shot spotters and LPRs, that CPD is utilizing to help them prevent violent crime and enforce the law. The Attorney General then went on a ride-along to the Englewood neighborhood of Chicago with the commander of the 7th district.

Today, the Attorney General and DEA Acting Administrator Timothy J. Shea held a press conference at the DEA’s Phoenix Field Division to announce the results of Operation Crystal Shield, a DEA-led initiative targeting the command and control elements of Mexican cartels that operate major methamphetamine “transportation hubs” throughout the United States. Joined by DEA Chief of Operations Chris Evans, DEA Special Agent in Charge Cheri Oz, and U.S. Attorney Michael Bailey, AG Barr and Acting Administrator Shea announced that since Operation Crystal Shield was launched in February 2020, the DEA seized nearly 29,000 pounds of methamphetamine, $43.3 million in drug proceeds, and 284 firearms.

Following the press conference, the Attorney General, Acting Administrator Shea, SAC Oz, and U.S. Attorney Bailey met with police chiefs, sheriffs, and officers from around the state of Arizona to get an on-the-ground sense of what local law enforcement is experiencing with regards to violent crime, drug trafficking, officer wellness, and other important issues facing law enforcement. 

After meeting with local law enforcement, the Attorney General attended a working lunch with the leaders of federal law enforcement in Arizona - the ATF, DEA, leaders from the High Intensity Drug Trafficking Area (HIDTA) program, FBI, United States Marshals Service, Homeland Security Investigations, Customs and Border Protection Tucson Sector Border Patrol, the United States Attorney’s Office, and the IRS.

The Attorney General completed his day at the DEA Phoenix Field Division with a briefing on the DEA’s clandestine lab cleanup capabilities.

The Justice Department today issued a supplement to its Feb. 2, 2015 Business Review Letter from the Antitrust Division to the Institute of Electrical and Electronics Engineers, Incorporated (IEEE) (“the 2015 Letter”).  The 2015 Letter analyzed proposed revisions to the IEEE’s Patent Policy of that same year pursuant to the department’s Business Review Procedure, 28 C.F.R. § 50.6.  The Antitrust Division took this step to address concerns raised publicly by industry, lawmakers, and former department and other federal government officials that the 2015 letter has been misinterpreted, and cited frequently and incorrectly, as an endorsement of the IEEE’s Patent Policy.  Additionally, aspects of the 2015 letter had become outdated based on recent jurisprudential and policy developments.

“The Department’s Business Review Procedure provides enforcement transparency to companies and organizations wishing to gain valuable insight into the department’s prospective enforcement views,” said Assistant Attorney General Makan Delrahim.  “The 2015 IEEE Letter, however, has proven outdated and we fear that reliance on its analysis, both in the United States and abroad, could actually harm competition and chill innovation.  The division concluded this supplement is necessary to provide increased clarity, given recent developments and potential misinterpretations of the division’s enforcement views.”

Under the Department of Justice’s Business Review Procedure, an organization may submit proposed conduct to the Antitrust Division and receive a statement as to the division’s current antitrust enforcement intentions based on the information provided.  In addition to providing assurance to the requesting party, the Antitrust Division’s responses often explain the application of complex areas of antitrust law, such as patent pooling.  The department, however, reserves the right to challenge the proposed conduct under the antitrust laws if its actual operation proves to be anticompetitive in purpose or effect.  The department’s action today does not affect the Business Review Procedure.

The Antitrust Division’s supplemental letter explains that it is meant to align the now outdated analysis in the 2015 letter with current U.S. law and policy, which has evolved in important ways over the last five years in relation to the licensing of standard essential patents, and the governance of standards development organizations.  The supplemental letter encourages IEEE to consider the supplementary letter and all applicable facts when assessing whether an update to the IEEE’s Patent Policy is warranted.  The supplemental letter is available on Antitrust Division’s website, along with the 2015 letter and IEEE’s original business review request.

The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced nearly $50 million in school safety funding through its School Violence Prevention Program (SVPP).  SVPP provides up to 75 percent funding for school safety measures in and around primary and secondary schools and school grounds.

“With the new school year underway, the safety of our nation’s students remains paramount,” said COPS Office Director Phil Keith.  “Although this school year may look different at the start, now is the ideal time to make preparations to enhance school safety for when all of our children are back in the classroom.”   

The Students, Teachers, and Officers Preventing School Violence Act of 2018 (STOP School Violence Act of 2018) gave the COPS Office authority to provide awards directly to states, units of local government, Indian tribes, and public agencies (such as school districts and law enforcement agencies) to improve security at schools and on school grounds in the jurisdiction of the grantee through evidence-based school safety programs.  The 160 awards announced today can be used for coordination with law enforcement; training for local law enforcement officers to prevent student violence; metal detectors, locks, lighting, and other deterrent measures; technology for expedited notification of local law enforcement during an emergency; and other measures that provide a significant improvement in security.  The full list of SVPP awards can be found here: https://cops.usdoj.gov/pdf/2020AwardDocs/svpp/Award_List.pdf.

In addition to the school safety grants announced today, the COPS Office School Safety Working Group, which is composed of representatives from eight national law enforcement organizations, has identified 10 essential actions that can be taken by schools, school districts, and law enforcement agencies to help prevent critical incidents involving the loss of life or injuries in our nation's schools and to respond rapidly and effectively when incidents do occur.  The Ten Essential Actions to Improve School Safety are applicable to school shootings as well as to other areas of school safety, including natural disasters and traumatic events such as student suicide.  Adopting policies and practices based on the recommendations in this publication can help make school communities safer and save lives.  

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide.  Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance.  For more information, please visit: https://cops.usdoj.gov/. 

The Justice Department’s Antitrust Division (DOJ) and the U.S. Patent and Trademark Office (USPTO) will host a virtual public workshop on Sept. 23rd and 24th, 2020 to discuss the importance of intellectual property rights and pro-competitive collaborations for life sciences companies, research institutions, and American consumers. 

“Now more than ever, it is essential that we consider the role of regulation and antitrust enforcement on incentives for innovation in key areas of discovery, such as biotechnology and the life sciences,” said Assistant Attorney General for the Antitrust Division Makan Delrahim.  “We look forward to a robust discussion of the current legal climate and its impact on competitiveness, and are honored to collaborate with Director Iancu and his talented team at the PTO in hosting this event.”

The workshop will feature a fireside chat between Assistant Attorney General Delrahim and Under Secretary of Commerce for Intellectual Property and Director of the USPTO, Andrei Iancu.  Former Director of the National Institutes of Health, Dr. Elias A. Zerhouni will deliver a keynote address.  The workshop will include panel discussions of how patents and copyrights incentivize and reward innovation in the life science sector and the USPTO’s guidance on patentability for life sciences inventions.  In addition, panels will discuss how partnerships and collaboration can facilitate the development of complex biologics, and the role of antitrust enforcement and regulation in preserving competition and incentives for innovation among drug developers and their partners.  Panelists include leading figures from industry, government agencies, prominent research labs, the non-profit sector, academia, and the broader legal and economic community. 

The workshop is free and open to the public, although registration is required, and will be webcast from approximately 1–5 PM Eastern Time each day.  A recording of the workshop will be made available on DOJ and USPTO’s websites.  Registration information, an agenda, instructions on accessing the webcast, and a list of speakers will be available in the near future on the USPTO and DOJ event webpages.  Members of the press should email Brianna Herlihy at Brianna.Herlihy@usdoj.gov to register.

Reasonable accommodations for people with disabilities are available upon request. If you need such an accommodation, please contact Lakeshia Harley at Lakeshia.Harley@uspto.gov.  Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.

Today, Attorney General William P. Barr and Drug Enforcement Administration Acting Administrator Timothy J. Shea announced the results of Operation Crystal Shield, a DEA–led effort targeting the command and control elements of Mexican cartels that operate major methamphetamine “transportation hubs” throughout the United States.

At a press conference in Phoenix, Arizona, Attorney General Barr and Acting Administrator Shea announced that in the first six months, Operation Crystal Shield generated more than 750 investigations, resulting in nearly 1,840 arrests, and the seizures of more than 28,560 pounds of methamphetamine, $43.3 million in drug proceeds, and 284 firearms.

“Methamphetamine is a brutal drug linked to violent crime and responsible for far too many fatal overdoses,” said Attorney General Barr.  “The astounding results of Operation Crystal Shield clearly demonstrate the commitment by the DEA and our state and local partners to prevent this deadly drug from reaching the streets of our communities.  Prosecuting individuals who traffic these poisons remains a top priority for President Trump and the entire Department of Justice.”

“In the months leading up to the launch of Operation Crystal Shield, communities across the United States experienced a surge of methamphetamine,” said Acting Administrator Shea.  “The COVID pandemic locked down many communities and impacted legitimate businesses, but the drug trade continued.  Under difficult conditions, DEA – along with our federal, state, and local partners – never stopped working as we helped stem the flow of methamphetamine onto our streets, even as violent drug traffickers sought new ways to smuggle it into the United States.  The success of Operation Crystal Shield reflects the devotion of DEA and our partners to protect our communities from the scourge of drug trafficking and violent crime under any circumstances.”

DEA launched Operation Crystal Shield on Feb. 20, 2020, after identifying nine major methamphetamine trafficking hubs: Atlanta, Dallas, El Paso, Houston, Los Angeles, New Orleans, Phoenix, San Diego, and St. Louis.  Together these nine cities accounted for more than 75 percent of the methamphetamine seized by DEA in 2019.  Under this operation, DEA directed enforcement resources to these cities where methamphetamine is often trafficked in bulk and then distributed across the country, and partnered with other federal, state, and local law enforcement to interdict these shipments and target the transportation networks behind them.  

Operation Crystal Shield leveraged existing DEA initiatives that target major drug trafficking networks, including the Mexican cartels responsible for virtually all of methamphetamine trafficked into and within the United States.  From FY 2017 to FY 2019, DEA domestic seizures of methamphetamine increased 127 percent from 49,507 pounds to 112,146 pounds.  During the same timeframe, the number of DEA arrests related to methamphetamine increased by nearly 20 percent. 

Dave O’Mara Contractor Inc. (DOCI), an Indiana-based asphalt contractor, has agreed to resolve allegations that it violated the False Claims Act by misrepresenting to the government the materials that it was using to pave federally-funded roads in the state of Indiana, the Department of Justice announced today.  Under the settlement agreement, DOCI has agreed to pay over $4.25 million over a period of four years.    

“Today’s settlement demonstrates our commitment to hold accountable companies that provide false information to obtain government contracts,” said Acting Assistant Attorney General Jeffrey Clark for the Department of Justice’s Civil Division.  “Misrepresenting the materials that will be used to pave federally-funded roads not only defrauds the government but potentially endangers the lives of motorists.”

“The safety and security of the citizens of Indiana are paramount to this office,” stated Josh Minkler, U.S. Attorney for the Southern District of Indiana. “To risk the safety of the motoring public for the sake of saving money cannot be tolerated.  This recovery sends the message that contractors must comply with various applicable state and federal regulations when billing the U.S. Government, or they will face the consequences of their choices.”

“It is important to ensure that taxpayers get what they pay for so that the quality of products used in highway transportation projects is not compromised,” stated Andrea M. Kropf, Regional Special Agent-In-Charge, U.S. Department of Transportation Office of Inspector General.  “Today’s settlement sends a message that putting the safety of the travelling public at risk for personal gain is an unacceptable way of conducting business.” 

The settlement resolved allegations that in applying for government contracts, DOCI falsely represented the materials it would use to pave roads that are funded in part by the Federal Highway Administration.  Specifically, the government alleged that DOCI claimed that its hot mix asphalt mixture contained a sufficient amount of binder or glue to hold the mix together when, in fact, DOCI frequently failed to meet the minimal levels of binder required to pave the roads.  DOCI thereby allegedly created the false impression that its mixture met the contract requirements and that the roads would last a reasonable period of time before they would develop cracks and become unsafe for driving.

The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Southern District of Indiana, and the Chicago Office of the Office of Inspector General for the U.S. Department of Transportation.  The U.S. Government also received significant assistance in this matter from Indiana’s Department of Transportation.

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

Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division announced today that the Antitrust Division has implemented two uniform updates to its Civil Investigative Demand (CID) forms and deposition process: 

First, all CIDs issued by the Antitrust Division — including CIDs for documentary material, written interrogatories, oral testimony, or any combination thereof — will now provide notice to all recipients that their documents, answers to interrogatories, and/or testimony may be used by the Department of Justice in other civil, criminal, administrative, or regulatory cases or proceedings.  Specifically, CIDs issued by the division will now include the following notice:

The information you provide may be used by the Department of Justice in other civil, criminal, administrative, or regulatory cases or proceedings.  Individuals may refuse, in accordance with the rights guaranteed to them by the Fifth Amendment to the Constitution of the United States, to produce documents and/or answer any question that may tend to incriminate them.

Second, division attorneys taking oral testimony pursuant to a CID will ask the deponent questions on the record at the outset of every deposition to confirm that the deponent understands the ways in which the information they provide can be used by the Department of Justice.

These updates are consistent with long-standing division policies and aim to further promote transparency in antitrust investigations.

William M. Kelly Inc. and Omega Imaging Inc., together, operate 11 radiology facilities in Southern California, have agreed to pay the United States $5 million to resolve allegations that they violated the False Claims Act (FCA) by knowingly submitting claims to Medicare and the military healthcare program, TRICARE, for unsupervised radiology services and services provided at unaccredited facilities, the Department of Justice announced today.

“Today’s settlement demonstrates the department’s unrelenting commitment to protect the public fisc and patient safety,” said Acting Assistant Attorney General Jeffrey Clark of the Department of Justice’s Civil Division.  “The department will aggressively pursue unscrupulous healthcare providers who cut corners that could jeopardize the health and safety of Medicare and TRICARE beneficiaries.” 

“Patients rightly expect that medical providers follow the proper procedures and protocol when administering complex treatments to ensure patient safety,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “Working with our law enforcement partners we remain steadfast in our commitment to uphold the integrity of government health programs.”

The settlement resolves allegations that the defendants submitted claims for CT scans and MRIs involving contrast injections that were not properly supervised by a physician.  Applicable program rules require a physician to be present in the office suite when a patient undergoes an examination that involves the administration of intravenous contrast material.  The defendants allegedly performed and billed for these procedures when no supervising physician was present in the office suite.  The settlement also resolves allegations that a certain number of the defendants’ facilities lacked accreditation.

Contemporaneous with the settlement, William M. Kelly, Inc. and Omega Imaging Inc. entered into a three-year Integrity Agreement (IA) with the Department of Health and Human Services Office of Inspector General requiring, among other things, the implementation of a risk assessment and internal review process designed to identify and address evolving compliance risks.  The IA requires training, auditing, and monitoring designed to address the conduct alleged in the case.

The settlement, which was based on the defendants’ ability to pay, resolves allegations originally brought in a lawsuit filed under the qui tam, or whistleblower, provisions of the FCA by Syd Ackerman, who was formerly employed by the defendants.  The FCA permits private parties to sue on behalf of the government for false claims and to receive a share of any recovery.  The FCA permits the United States to intervene in such a lawsuit, as it did in part here.  Mr. Ackerman will receive approximately $925,000 of the settlement proceeds.

This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch; the U.S. Attorney’s Office for the Central District of California; the Department of Health and Human Services, Office of Counsel to the Inspector General and Office of Investigations; the Defense Criminal Investigative Service; and the Defense Health Agency Office of General Counsel. The qui tam case is captioned United States ex rel. Syd Ackerman v. William M. Kelly, M.D., Inc. and Omega Imaging, Inc., No. EDCV 13-02195 JGB (DTBx) (C.D. Cal.). 

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

Illinois Man Charged with Discharging a Firearm While Carjacking a Vehicle from Two Victims
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 Illinois. Operation Legend launched in Chicago on July 22, 2020, in response to the city facing increased homicide and non-fatal shooting rates.

United States vs. Michael C. Pearson

“Carjacking is a senseless act of violence that has no place in our society,” said U.S. Attorney John R. Lausch, Jr. for the Northern District of Illinois. “Our office is committed to working closely with our federal, state, and local law enforcement partners to pursue and prosecute violent offenders.”

Michael C. Pearson was charged on August 20, 2020, with carjacking and using a firearm during a crime of violence.

According to the indictment, on July 28, 2020, Pearson discharged a firearm, specifically a .22 caliber Glock semiautomatic pistol, while carjacking a 2006 Buick Lucerne from two victims on the North Side of Chicago. The firearm charge carries a maximum sentence of life in federal prison, while the carjacking charge is punishably by up to 15 years.

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

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 Chicago. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 592 defendants charged with federal crimes.

The Department of Justice’s Office of Community Oriented Policing Services (COPS Office) today announced nearly $8 million in funding to advance the practice of community policing in law enforcement.  Community Policing Development (CPD) program 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.

The COPS Office also announced a new $8.5 million award under the Preparing for Active Shooter Situations (PASS) program to the Advanced Law Enforcement Rapid Response Training (ALERRT) Center at Texas State University to provide multi-disciplinary, scenario-based active shooter training to first responders.

“One of the top priorities of the Department of Justice is to keep communities safe from violent crime,” said COPS Office Director Phil Keith.  “The two grant programs announced today will promote promising best practices to advance community policing, which is a proven public safety approach, and provide much-needed training against active shooters, which remain a constant threat to the citizens of this great country.”

Highlights of today’s 24 CPD awards include $500,000 to the International Association of Chiefs of Police to document and advance victim support services; $1.3 million to the University of Tennessee to establish a rural law enforcement training center; and $500,000 to Movement Forward, which is a national law enforcement and faith-based partnership program.  Additionally, $1.3 million is being awarded in partnership with the U.S. Department of Transportation’s National Highway Traffic Safety Administration to expand training opportunities for officers and create updated resource guides for law enforcement on safe and effective vehicular pursuits.  The full list of awards is available on the COPS Office website at: https://cops.usdoj.gov/pdf/2020AwardDocs/cpd/Award_List.pdf

Since 2017, COPS Office funding through the PASS program has provided active shooter training for approximately 53,000 first responders across the nation.  The additional $8.5 million announced today will fund training for roughly 20,000 additional first responders.  Additional information about the PASS program can be found here: https://cops.usdoj.gov/pdf/2020AwardDocs/pass/Award_List.pdf.

The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide.  Since 1994, the COPS Office has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of more than 134,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.  For more information, please visit: https://cops.usdoj.gov/. 

A Glendale, California attorney pleaded guilty today for conspiring to make and conceal conduit and excessive campaign contributions during the U.S. presidential election in 2016 and thereafter.

Acting Assistant Attorney General Brian C. Rabbitt of the Justice Department’s Criminal Division and Acting Assistant Director in Charge James A. Dawson of the FBI’s Washington Field Office made the announcement.

Rudy Dekermenjian, 42, of Glendale, California, pleaded guilty to one count of conspiracy to make conduit contributions, make excessive contributions, cause false statements, and cause false entries in records before the Honorable Randolph D. Moss of the U.S. District Court for the District of Columbia.  A sentencing hearing has not yet been scheduled. 

According to admissions made in connection with his plea, between March 2016 and June 2018, Dekermenjian conspired with Ahmad “Andy” Khawaja and others to make unlawful contributions to political committees, thereby circumventing contribution limits and causing the political committees to unwittingly submit false reports to the Federal Election Commission.  Specifically, Dekermenjian admitted that in October 2016, Khawaja gave him $50,000 to contribute in Dekermenjian’s name to a political committee supporting a candidate running for U.S. president in the 2016 election cycle.  The purpose of making the contribution in Dekermenjian’s name was to allow Khawaja to exceed contribution limits set by federal law with respect to the political committee at issue.  The contribution was made in connection with a political event hosted by Khawaja in October 2016.

Additionally, Dekermenjian admitted that in January 2018, Khawaja gave him approximately $50,000 to contribute in Dekermenjian’s name to another political committee.  Again, the purpose of making the contribution in Dekermenjian’s name was to allow Khawaja to exceed contribution limits with respect to the political committee at issue.  The contribution was made in connection with another political event hosted by Khawaja in March 2018.

Charges remain pending against Khawaja, who is a fugitive, and others in the indictment.  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 is being investigated by the FBI’s Washington Field Office and is being prosecuted by Trial Attorneys James C. Mann and Michael J. Romano 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.

Today, at a press conference in Chicago, Attorney General William P. Barr announced updates to Operation Legend.

Since the operation’s launch, there have been more than 2,000 arrests, including defendants who have been charged in state and local courts. Of those arrests, approximately 592 defendants have been charged with federal crimes. In addition, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) has seized 587 firearms, more than 1.2 kilos of heroin, and more than five kilos of methamphetamine; the Drug Enforcement Administration (DEA) has seized almost 70 kilos of methamphetamine, more than 16 kilos of heroin, more than 7 kilos of fentanyl, more than 12 kilos of cocaine, 268 firearms, and approximately $5.19 million in drug proceeds; the FBI has recovered 241 weapons; and, the U.S. Marshals Service has recovered 169 firearms and made 1,810 arrests, including 163 for homicide and 120 for sexual assault.

In Chicago, there has been a 50 percent decrease in homicides in the first seven weeks of the operation, when compared to the five weeks prior to the operation’s launch. In fact, between April 2020 and the end of July 2020, Chicago was experiencing a steady and distressing increase in fatal shootings, which precipitously declined in August.

The Attorney General launched Operation Legend on July 8, 2020, 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. The initiative 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. 

Launched first in Kansas City, MO., on July 8, 2020, the operation was 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.

113 defendants have been charged with federal crimes outlined below.

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

Chicago, IL.

124 defendants have been charged with federal crimes outlined below.

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

Albuquerque, NM.

45 defendants have been charged with federal crimes outlined below.

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

Cleveland, OH.

66 defendants have been charged with federal crimes outlined below.

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

Detroit, MI.

58 defendants have been charged with federal offenses outlined below.  

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

Milwaukee, WI.

16 defendants have been charged with federal crimes outlined below.

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

St. Louis, MO.

123 defendants have been charged with federal crimes.

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

Memphis, TN.

16 defendants have been charged with federal offenses.

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

Indianapolis, IN.

31 defendants have been charged with federal crimes outlined below.

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

Tennessee: Memphis Man Charged with Federal Firearms Offense

Each weekday, the Department of Justice will highlight a case that has resulted from Operation Legend. Today’s case is out of the Western District of Tennessee. Operation Legend launched in Memphis on Aug. 6, 2020, in response to the city facing increased homicide and non-fatal shooting rates.

United States vs. DeQuan Johnson

"Prohibited persons in possession of firearms or ammunition, such as convicted felons, persons with histories of domestic violence, and unlawful users of illegal narcotics present a known and immediate risk of violence to the community at large,” said U.S. Attorney D. Michael Dunavant for the Western District of Tennessee. “Operation Legend is leveraging our collaboration between federal, state, and local law enforcement, and is already making a difference in our collective fight against violent crime in Memphis by interrupting the shooting cycle and holding trigger-pullers accountable. As long as this indiscriminate and senseless violence rules the streets, we will use the resources of Operation Legend and the authority of federal charges to incapacitate these community predators, reduce violent crime rates, and ultimately save lives."

DeQuan Johnson, of Memphis, was charged on Aug. 25, 2020, with unlawful possession of a firearm by a drug user.

According to the charging document, in January 2020, the ATF assisted the U.S. Marshals Service(USMS) with the arrest of Johnson, who was wanted by police for reckless endangerment with a deadly weapon and aggravated assault stemming from a shooting incident that occurred on Nov. 24, 2019.

It is alleged that on Nov. 24, 2019, Memphis Police Department officers responded to a shooting in which victims reported that two men approached the back porch of their residence and began firing shots into their home, which was filled with 12 people. One of the victims reported hearing approximately 15 gunshots coming from the back of the residence, and local police subsequently collected 15 spent cartridge casings from the scene. The investigation led to Johnson, who was positively identified by one of the victims.

On Jan. 22, 2020, members of the USMS Fugitive Task Force made contact with Johnson at his residence in Memphis. During a protective search of Johnson’s home, law enforcement located a loaded Smith & Wesson, Model SD40 VE, .40 caliber pistol; an extended magazine containing 20 .40 caliber rounds of ammunition; and marijuana. Because Johnson had active warrants out for his arrest, he was taken into custody.

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

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. Since its inception, Operation Legend has yielded more than 2000 local, state, and federal arrests, with approximately 476 defendants charged with federal crimes.