District Not Recorded

Allen Martin Kenna, 18, of Cuyahoga Falls, Ohio, was charged in a two-count indictment for Attempted Use of an Explosive Device and Interstate Communication of Threats. 

As alleged in the indictment, Kenna is charged with attempting to use an explosive device to damage or destroy buildings and real property associated with Cuyahoga Falls High School.  Kenna is also charged with making threatening communications to a Kansas elementary school.  Specifically, Kenna is alleged to have notified the Fort Rily Sheriff’s Office that he was holding a hostage inside of the school and that he would injure any person attempting to enter the school in response to this threat.   

“The indictment alleges that the defendant attempted to construct an explosive device that was to be used in an attack on a local high school,” U.S. Attorney Justin Herdman stated.  “The defendant is further alleged to have engaged in making interstate threats that were directed at another school in Kansas.  Law enforcement takes seriously all concerns about potentially violent individuals, but where we have specific, credible threats of violence against the public, especially in our schools, we will act swiftly and with appropriate federal charges.”

“Thanks to the awareness of private citizens and the hard work of our law enforcement partners, what could have been a horrific and tragic day was stopped,” said FBI Special Agent in Charge Eric B. Smith.  “Law enforcement has no higher priority than protecting others.  We will continue to ensure our schools remain a safe place where young people go to learn and thrive.  The FBI and our law enforcement partners urge parents, relatives, and friends to report suspicious and troubling behavior to authorities immediately.”

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal records, if any, the defendant’s role in the offense and the characteristics of the violation.  In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The investigation is being conducted by the Federal Bureau of Investigation’s Joint Terrorism Task Force.  The case is being prosecuted by Assistant U.S. Attorney Duncan T. Brown.

###

The Antitrust Division of the Department of Justice will present Judge Douglas H. Ginsburg with the John Sherman Award for his lifetime contributions to the development of antitrust law and the preservation of economic liberty.  Judge Ginsburg will deliver remarks and receive the award during a ceremony on May 8, 2020, in the Great Hall of the Robert F. Kennedy Department of Justice Building.  

“Judge Ginsburg’s role in the advancement of antitrust law and policy cannot be overstated,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “It is a privilege for the division to recognize his career and achievements with this award.  Judge Ginsburg’s leadership in the Antitrust Division, as well as his incisive and cogent scholarship, has brought sound economic analysis to the forefront of antitrust law.  His contributions have greatly improved the ability of antitrust law to protect consumer welfare and to spur economic growth.”

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

Judge Ginsburg received his undergraduate degree from Cornell University and his J.D. from the University of Chicago.  Following law school, Judge Ginsburg clerked for Judge Carl McGowan of the U.S. Court of Appeals for the D.C. Circuit and for U.S. Supreme Court Justice Thurgood Marshall.  He joined the faculty at Harvard Law School from 1975 to 1983, before serving as the Deputy Assistant Attorney General for Regulatory Affairs, Antitrust Division, U.S. Department of Justice, from 1983 to 1984; Administrator, Information and Regulatory Affairs, OMB, from 1984 to 1985; and Assistant Attorney General, Antitrust Division, U.S. Department of Justice, from 1985 to 1986.  Judge Ginsburg was appointed to the U.S. Court of Appeals for the District of Columbia Circuit in November 1986 and served as Chief Judge from July 2001 until February 2008.  Concurrent with his service on the federal bench, Judge Ginsburg has taught at the University of Chicago Law School and the New York University School of Law. He is currently a Professor of Law at the Antonin Scalia Law School, George Mason University, and a visiting professor at the University College London, Faculty of Laws. 

Judge Ginsburg’s efforts to incorporate economic analysis in antitrust enforcement is instrumental to how agencies and practitioners approach antitrust law today.  Of his many notable contributions, Judge Ginsburg elevated the role of economic analysis in antitrust enforcement by expanding the Division’s economics section and by creating the position of the Deputy Assistant Attorney General for Economic Analysis during his tenure as the Assistant Attorney General of the Antitrust Division.  Through his work with the Global Antitrust Institute at the Antonin Scalia Law School, Judge Ginsburg is renowned for helping international enforcers and judges apply economic insights in competition law.   Judge Ginsburg’s jurisprudence and scholarship further reflect the intellectual rigor that has marked his distinguished career.  He was an influential judge on the landmark United States v. Microsoft case in 2001, and the case remains foundational to understanding competition in high-tech markets. Judge Ginsburg’s scholarship is widely admired, and his academic works — ranging in topic from the application of antitrust law in a changing economy to the effects of extra-jurisdictional remedies — tackle complex questions and continue to influence students, enforcers, and practitioners alike. 

The award is named for the author of the Sherman Act of 1890, the nation's first and foremost antitrust law. John Sherman, a former congressman and senator, also served as Secretary of the Treasury from 1877 to 1881 and as Secretary of State from 1897 to 1898. Previous recipients have included Diane P. Wood (2015), James F. Rill (2012), Robert Pitofsky (2010), Herbert Hovenkamp (2008), Robert H. Bork (2005), Richard A. Posner (2003), Milton Handler (1998), Thomas Kauper and William Baxter (1996), Phillip Areeda (1995), and Howard Metzenbaum (1994).

Terry Lee Christian was sentenced today to 15 years of imprisonment for selling a mixture of cocaine, heroin and fentanyl that resulted in the fatal overdose of a man inside a downtown Cleveland hotel in July 2018.  Christian previously pleaded guilty to selling the fatal mixture to the victim.  This is the first prosecution in this District for causing the death of another by selling cocaine to a victim who was unaware that the cocaine was laced with heroin and fentanyl.

According to court records, members of the Cleveland Division of Police’s Heroin Involved Death Investigations Unit responded to a drug overdose at a hotel room in Cleveland on July 14, 2018.  Officers observed a bag of suspected cocaine on the dresser and suspected cocaine residue on the dresser and bathroom vanity.

The narcotics were tested and found to be a mixture of cocaine, heroin and fentanyl. The packaging material was tested and the DNA found on the package matched Christian’s DNA.

A review of the victim’s phone and other evidence revealed that the victim met with Christian on July 13, 2018, and later exchanged several calls that day to establish a time and place for the victim to purchase cocaine.  Specifically, Christian agreed to sell two grams of cocaine in exchange for $200.  Shortly after their brief meeting and subsequent calls, the victim was seen on nearby surveillance cameras arriving at the agreed location and engaging in a hand-to-hand transaction.  The victim neither requested nor knew that the cocaine he purchased from Christian was laced with heroin and fentanyl.

This matter was investigated by the Cleveland Division of Police and Drug Enforcement Administration, and prosecuted by Assistant U.S. Attorneys Vasile C. Katsaros and Margaret Sweeney.

###

Tenet Healthcare Corporation and its affiliated hospital Desert Regional Medical Center (DRMC), a general medical and surgical hospital located in Palm Springs, California, have agreed to pay $1.41 million to resolve allegations that they violated the False Claims Act by knowingly charging Medicare for implanting unnecessary cardiac monitors, the Justice Department announced today.

“Providers that bill for unnecessary services and devices contribute to the soaring cost of health care,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division.  “The Department of Justice holds accountable those providers that impose unnecessary treatments upon patients and pass the inflated costs on to federal health care programs.” 

Medicare only reimburses services and treatments that are reasonable and medically necessary.  This settlement resolves allegations that DRMC knowingly charged Medicare for unnecessary cardiac monitors (often called loop recorders) that DRMC cardiologists implanted in beneficiaries from 2014 to 2017.   

“Invasive medical procedures, such as implanting heart monitors, are not without risk,” said Timothy B. DeFrancesca, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services.  “Therefore, when these procedures are medically unnecessary, as contended in this case, people in government health programs are put at needless peril, and taxpayers end up with the bill.”          

The settlement resolves allegations filed in a lawsuit by Michael Grace, a former DRMC employee, under the qui tam provisions of the False Claims Act, which permit private individuals to sue for false claims on behalf of the government and to share in any recovery.  The civil lawsuit is docketed in the Central District of California and is captioned United States ex rel. Grace v. Tenet HealthCare Corp.; St. Francis Hospital-Memphis; Desert Regional Medical Center; and Apollo MD, Case No. 17-CV-1481.  As part of this settlement, Grace will receive $240,789 as his share of the government’s recovery. 

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

This matter was investigated by the Commercial Litigation Branch of the Department of Justice’s Civil Division, and the Office of Inspector General for the U.S. Department of Health and Human Services.

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

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.

Hagatña, Guam - SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MICHAEL LOUIS MCCARRON, age 34, from Washington, was sentenced in the District Court of Guam to 120 months imprisonment.  On October 31, 2019, a federal jury found McCarron guilty of Attempted Enticement of a Minor, in violation of Title 18, United States Code, Section 2422(b), and Attempted Transfer of Obscene Material to a Minor, in violation of Title 18, United States Code, Section 1470.  The Court also ordered five years of supervised release following McCarron’s term of imprisonment and the payment of a mandatory $200.00 special assessment fee.  Conditions of supervised release include that McCarron has no contact with minors and to register with the Sex Offender Registry in any jurisdiction in which he lives, works, or attends school.

          Between October 31, 2017, and November 30, 2017, McCarron attempted to persuade, induce, and entice a person he believed was a 13-year-old female to engage in sexual intercourse.  McCarron committed these acts through the use of the Internet and by attempting to make actual contact with the alleged minor.  The investigation determined that he also transferred 12 images and one video, which depicted his genitals, to this same alleged female minor. 

          U.S. Attorney Anderson states, “Our communities deserve protection from those who seek to prey on children.  McCarron engaged in a shocking pattern conduct.  Fortunately, no child was actually harmed during the course of the investigation.  I applaud the continuing efforts of our federal law enforcement partners and the Marianas Child Exploitation Task Force.  The public can expect the aggressive prosecution of child predators under the Department of Justice’s Project Safe Childhood initiative.  Unfortunately, victims of child pornography suffer for many years from the trauma of abuse and the repeated distribution of depictions of the crime. I applaud the hard work of our federal law enforcement partners in bringing this defendant to justice.”

          Defendants who have been convicted of sexual offenses, under federal and local laws, have a duty to register with the Sex Offender Registry in their jurisdiction and keep their registration current.  Sex offenders who travel to Guam and reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school.  The Sex Offender Registry was created in order to protect the public, including victims, from further victimization and to keep the public informed of the whereabouts of sex offenders.  Guam’s Sex Offender Registry is accessible online at www.guamcourts.org (link is external).

          This case was part of the Project Safe Childhood (PSC) Initiative, a nationwide initiative by the U.S. Department of Justice to aggressively prosecute people who engage in the sexual victimization of children, possess or receive child pornography, and fail to register as sex offenders.  For more information about Project Safe Childhood, please visit www.justice.gov/psc.

          The investigation was conducted by Federal Bureau of Investigations, Air Force Office of Special Investigations Detachment 602, and Naval Criminal Investigative Services with support from the Marianas Child Exploitation Task Force (MCETF).  The MCETF is a multi-agency federal and local law enforcement task force dedicated to conducting criminal investigations and prosecutions of sexual predators of children.  This case was prosecuted by Stephen F. Leon Guerrero, Assistant United States Attorney for the District of Guam and Justin Collins, Special Assistant United States Attorney.

Following the trial in New York v. Deutsche Telekom, Judge Victor Marrero of the U.S. District Court for the Southern District of New York has refused a request from a minority of state Attorneys General to block T-Mobile’s proposed acquisition of Sprint. In his opinion, Judge Marrero cited the Justice Department’s settlement as a key factor, noting that the Justice Department’s settlement made Dish “well poised to become a fourth MNO in the market, and its extensive preparations and regulatory remedies indicate that it can sufficiently replace Sprint’s competitive impact.”

“I am pleased and agree with Judge Marrero’s decision to deny the injunction, and particularly his conclusion that the department’s divestiture and remedy package resolves the competitive concerns in this case,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “This opinion is an important next step toward strengthening competition for high-quality 5G networks that will benefit American consumers nationwide.”

“I am also grateful that the judge recognized the expertise of the Department of Justice and the Federal Communications Commission (FCC) in his evaluation of the transaction. As I have noted before, should a minority group of states, or even one, be able to undo the nationwide relief secured by the federal government, it would wreak havoc on parties’ ability to merge, on the government’s ability to settle cases, and cause real uncertainty in the market for procompetitive mergers and acquisitions.”

The department’s Antitrust Division filed a civil antitrust lawsuit on July 26, 2019, in the U.S. District Court for the District of Columbia along with a proposed settlement that, if approved by the court, would resolve the department’s competitive concerns. The Attorneys General for the states of Arkansas, Colorado, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma, South Dakota, and Texas have each joined in this proposed settlement. That proposed settlement, along with the United States’ motion to enter final judgment, is pending before Judge Kelly in the U.S. District Court for the District of Columbia.

The FCC also approved the transaction after a thorough examination, with certain commitments as a condition of approval.

Under the terms of the proposed settlement, T-Mobile and Sprint must divest Sprint’s prepaid business, including Boost Mobile, Virgin Mobile, and Sprint prepaid, to Dish Network Corp., a Colorado-based satellite television provider. The proposed settlement also provides for a divestiture of substantial spectrum assets to Dish. Additionally, T-Mobile and Sprint must make available for divestiture to Dish at least 20,000 cell sites and hundreds of retail locations. T-Mobile must also provide Dish with robust access to the T-Mobile network for a period of seven years while Dish transitions the business and builds out its 5G network.

T-Mobile US Inc. is a Delaware corporation headquartered in Bellevue, Washington. In 2018, T-Mobile posted revenues of more than $43 billion. Deutsche Telekom AG, a German corporation headquartered in Bonn, Germany, is the controlling shareholder of T-Mobile US Inc.

Sprint Corporation is a Delaware corporation headquartered in Overland Park, Kansas. In 2018, its posted revenue was over $32 billion. Sprint is controlled by SoftBank Group Corp., a Japanese corporation headquartered in Tokyo, Japan.

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

The Department of Justice has released a final agenda for the Feb. 19, 2020, public workshop on Section 230 of the Communications Decency Act.  The public workshop, titled “Section 230 – Nurturing Innovation or Fostering Unaccountability?,” will discuss the evolution of Section 230 from its original purpose in granting limited immunity to Internet companies, its impact on the American people, and whether improvements to the law should be made.

The released agenda includes welcome remarks from Attorney General William P. Barr and distinguished panelists with a wide variety of perspectives on Section 230.  The final agenda, and more information on the event, can be found here: https://www.justice.gov/ag/webform/section-230-workshop-registration.  The workshop is free and open to the public, and will be held in the FBI Auditorium, 935 Pennsylvania Ave NW, Washington, D.C. 20535, from 9 a.m. Eastern Time to 12:45 p.m. Eastern Time. 

The department has registered over 350 attendees for the event, but limited seats are still available.  If you would like to attend, please RSVP before 5 p.m. on Wednesday, Feb. 12, 2020, through the event webpage.  As seating is limited, invitations to attend will be sent to registered participants on a first-come, first-served basis.  Members of the press should also email Alexei.Woltornist@usdoj.gov.

Reasonable accommodations for people with disabilities are available upon request.  If you need such an accommodation, please contact the department by sending an email to workshop@usdoj.gov.  Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.

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 Trump Administration today launched the federal school safety clearinghouse website: SchoolSafety.gov. This website is a one-stop-shop of resources for Kindergarten through Grade 12 (K-12) administrators, educators, parents and law enforcement to use to prepare for and address various threats related to safety, security, and support in schools. President Trump established the Federal Commission on School Safety to review safety practices and make meaningful and actionable recommendations of best practices to keep students safe.

“The Department of Justice has no higher priority than making sure our schools are safe and secure for our nation’s students, teachers and administrators,” said Attorney General William P. Barr. “I am grateful for President Trump’s leadership in this cause and am honored to stand with the rest of the leadership of his administration as we continue our efforts to promote school safety through SchoolSafety.gov. The Department of Justice is deeply grateful for the sacrifice and commitment of our nation’s school resource officers and police officers who are on the front lines of keeping our schools and country safe every day.”

“School safety is the number one priority of parents across the country, which is why the President directed DHS and other federal agencies to form a task force and provide schools, teachers, parents, and law enforcement with resources to identify, prepare for, respond to, and mitigate threats,” said Chad Wolf, Acting Secretary of the Department of Homeland Security. “The Department provided expertise and resources on a range of school safety issues including threat assessments, physical security, emergency planning, and trainings and exercises designed to help schools and local law enforcement prepare for incidents. With these resources, schools and law enforcement will be better equipped to handle a crisis.”

“All students deserve a safe learning environment, and the Federal School Safety Clearinghouse is an essential resource for information and best practices,” said U.S. Secretary of Education Betsy DeVos, Chair of the Federal Commission on School Safety. “Because every school community has its own unique needs, SchoolSafety.gov equips decision makers with resources for developing, customizing, and implementing actionable school safety plans.”

“Every child should feel safe at school, and every parent should feel their child is safe each day, too,” said Health and Human Services (HHS) Secretary Alex Azar. “SchoolSafety.gov will help equip schools with the tools they need to create safe, healthy environments, including resources for how to provide mental health services in schools. This new one-stop shop complements the evidence-based technical assistance HHS provides to local communities around mental health treatment, and we hope to see more and more schools explore these opportunities.”

SchoolSafety.gov is a resource for the American public, primarily K-12 school administrators, to access free information, guidance, best practices, and tools that make school safety initiatives more actionable in schools. Today’s launch represents the first phase of SchoolSafety.gov and we look forward to continually expanding and refining resource materials in coordination with our partners and stakeholders.

The Federal School Safety Clearinghouse and SchoolSafety.gov were developed to fulfill one of the key recommendations from the Federal Commission on School Safety.

SchoolSafety.gov includes:

• The School Safety Readiness Tool, an assessment that assists users in evaluating their respective school’s safety posture across ten foundational elements of school safety. After completing the assessment, users are provided an action plan with task prioritization, options for consideration, aligned resources, and grant opportunities specific to individual needs;
• A Secure Information Sharing Platform for designated school personnel to share school safety ideas, practices, plans, and tactics in a protected environment; and
• A wide array of resources and best practices on key school safety topics to assist with building awareness within the school community to promote vigilance and build capacity to respond to incidents.

SchoolSafety.gov empowers districts and schools to improve safety and security. Following the school shooting in Parkland, Florida in March 2018, President Trump established the Federal Commission on School Safety by Executive Order to make meaningful advancements in keeping students safe. The Trump Administration and DHS also released the 2019 strategy for targeted violence that defines ways that the Department will enhance security with increased preparedness, promoting community readiness, and enhancing defensive measures. The Department will continue to develop new techniques in protective practices.

Today, the U.S. Department of Justice filed suit against the State of New Jersey, New Jersey Governor Philip Murphy, and New Jersey Attorney General Gurbir Grewal. The lawsuit challenges New Jersey Attorney General Law Enforcement Directive 2018-6, which prohibits state officials from sharing information with U.S. Immigration and Customs Enforcement (ICE) related to the immigration status and release dates of individuals in their custody.

The directive also requires New Jersey law enforcement to “promptly notify a detained individual, in writing and in a language the individual can understand” if ICE files an immigration detainer request for the individual. According to the complaint filed today, on multiple occasions last year, New Jersey officials failed to provide information regarding the release dates of aliens who had been charged with or convicted of crimes. New Jersey’s decision to obstruct federal immigration enforcement by refusing to provide such information is unlawful under the Supremacy Clause of the U.S. Constitution.

A copy of the complaint is available here.

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 filed suit against California Governor Gavin Newsom, California Attorney General Xavier Becerra, and the State of California challenging California state law A.B. 32, which prohibits any individual or entity from operating private detention facilities in the state.

Under A.B. 32, prisoners and detainees currently housed in private facilities in California will have to be relocated at great cost, potentially isolating prisoners and detainees from their families and causing overcrowding in neighboring states. The U.S. Marshals Service (USMS), for example, which is responsible for the housing and transportation of federal prisoners awaiting trial and sentencing, will need to relocate nearly 50 percent of its inmates in the Southern District of California and nearly 30 percent of its total California inmates to out-of-state facilities.

A.B. 32 will also require frequent and costly transportation of prisoners and detainees. For USMS, pretrial inmates will have to be frequently transported to and from California to meet the demands of courts, defense attorneys, and any pretrial or probationary requirements. And for U.S. Immigration and Customs Enforcement (ICE), which is responsible for the housing and transportation of immigration detainees, any aliens apprehended in California (about 45,000 in fiscal year 2019) will have to be transported to out-of-state facilities using costly air or ground transportation. This drastic increase in USMS and ICE transportation requirements will also heighten security concerns. Finally, A.B. 32 may delay federal proceedings due to the out-of-state relocation of prisoners and detainees.

The lawsuit challenges A.B. 32 as unlawful under the Supremacy Clause of the U.S. Constitution because A.B. 32 substantially obstructs the federal government’s housing of federal prisoners and detainees, stands as an obstacle to the accomplishment of congressional objectives related to criminal law and immigration enforcement, directly regulates federal operations, and discriminates against the United States by granting exceptions for California that do not apply to the federal government or its contractors.

A copy of the complaint is available here. The Department of Justice has also moved to enjoin the enforcement of A.B. 32 against the federal government and its contractors. A copy of the motion is available here.

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, the Justice Department filed suit against King County, Washington, and King County Executive Dow Constantine challenging King County Executive Order PFC-7-1-EO, which has the purpose and intended effect of prohibiting U.S. Immigration and Customs Enforcement (ICE) contractors from using King County International Airport, also known as Boeing Field, as a terminal for flights to remove individuals from the United States or transport immigration detainees within the country.

The Executive Order directs King County officials to “ensure that all future leases, operating permits, and other authorizations for commercial activity at King County International Airport contain a prohibition against providing aeronautical or non-aeronautical services to enterprises engaged in the business of deporting immigration detainees (except for federal government aircraft), to the maximum extent permitted by applicable law.”

After the Executive Order was issued, the company providing fixed-based operator (FBO) services (fueling, aircraft maintenance, and similar services) to ICE’s contractor at Boeing Field informed the contractor that it would no longer service its flights, and no other FBO agreed to assist the contractor. As a result of similar refusals at other airports in the Seattle area, ICE’s contractor has been forced to relocate these flights to Yakima, Washington. This has created significant operational difficulties and additional costs for ICE due to: (1) the increased costs of flying in and out of Yakima’s airport, (2) the road conditions between Yakima and Tacoma, which often make transportation of detainees difficult, and (3) the inability to house detainees in or near Yakima in the event of delays or inclement weather. The lawsuit challenges the Executive Order as unlawful under the Supremacy Clause of the U.S. Constitution because the Order obstructs and burdens federal activities, discriminates against federal contractors, and is expressly preempted by the federal Airline Deregulation Act, which prohibits localities such as King County from enacting or enforcing laws or regulations that relate to prices, routes, or services of air carriers.

A copy of the complaint is available here.

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.

President Trump’s FY 2021 Budget proposal totals $31.7 billion for the Department of Justice to support federal law enforcement and criminal justice priorities of our state, local, and tribal law enforcement partners.  The request represents a comprehensive investment in the Justice mission and includes investments to sustain and enhance our vital work to counter incidents of mass violence, stem violent crime, combat cybercrimes, dismantle gangs, address illegal immigration and the immigration caseload, protect the elderly from fraud, help rural communities, strengthen the fight against illegal opioids, and continue the department’s commitment to National Security. 

“The President’s budget request would invest significant resources in our nation’s security, including efforts to prevent mass violence while ensuring overall reductions in violent crime that have been achieved in recent years continue,” said Attorney General William P. Barr. “This budget would also help us continue to fight the opioid epidemic, secure our international borders, and protect our citizens, our economy and infrastructure from cyber threats.  It also gives us the tools to reduce recidivism among federal offenders and provides strong support to the state, local, and tribal police who keep us safe.”

 The Department of Justice’s areas of investment include:

• +$942.2 million to strengthen federal law enforcement’s ability to counter violent crime and support communities to prevent violent crime.
• +$638.8 million in resources to counter incidents of mass violence and support state and local agencies in their efforts to prevent violent crime.
• +$379.6 million to fight the opioid crisis. Additional resources will be devoted to combatting transnational criminal organizations, known for supplying illicit substances to the United States.
• +$409.5 million to continue implementation of the First Step Act of 2018 (FSA). These investments support numerous programs dedicated to reducing recidivism among federal offenders.
• +$143.1 million in immigration related program enhancements to stem the tide of illegal immigration, address increased caseload, and enforce our Nation’s immigration laws.
• +$122.8 million in program enhancements to address critical national security and cyber threats.
• $4.3 billion in discretionary and mandatory funding for federal grants to state, local, and tribal law enforcement and victims of crime, to ensure greater safety for law enforcement personnel and the people they serve. Critical programs aimed at protecting the life and safety of state and local law enforcement personnel, including the Public Safety Partnership Program and the Project Safe Neighborhood Program, demonstrate our continuing commitment to supporting state, local, and tribal law enforcement.

For more information, view the FY 2021 Budget and Performance Summary at https://www.justice.gov/doj/fy-2021-budget-and-performance-summary

Countering Violent Crime

Nationwide crime rates continue to trend downward: the number of violent crimes decreased by 3.3 percent between 2017 and 2018, while the violent crime rate per 100,000 population decreased by 3.9 percent.   However, violent crimes continue to plague our cities and communities, a serious concern that the Department of Justice remains committed to mitigating.

In 2021, the department will build on the attorney general’s priority program, Operation Relentless Pursuit, to reduce violent crime, including human trafficking, transnational criminal activity, and criminal entities in our prisons, and endeavor to dismantle the worst criminal organizations and target the most violent offenders. The operation consists of participation from each DOJ law enforcement agency, including the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the United States Marshals Service (USMS).

The FY 2021 budget requests $942.2 million to reduce violent crime and the scourge of human trafficking.

For more information, view the Countering Violent Crime Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets

Countering Mass Violence

Mass violence incidents, such as the tragedies of El Paso, Dayton, Orlando, Dallas, and so many others, shatter communities and threaten the fabric of civil society.  This administration is taking bold actions to confront mass violence and violent crime, and ensuring that efforts go beyond traditional law enforcement efforts.  The budget supports a total of $719 million for the Department of Justice and the Department of Homeland Security (DHS) to address targeted violence and to reduce gun crimes. This includes $639 million for DOJ, including $332 million for targeted violence and $307 million for enhanced law enforcement. With this funding, DOJ will utilize a broad spectrum of response, combined with proactive efforts in identification and interdiction of specific threats in order to reduce the risk of mass violence across the United States. Additionally, the budget provides $80 million to DHS to confront these challenges, including $20 million for community grants to support efforts at the local level to identify and mitigate risks.       

The FY 2021 budget requests $638.8 million in program enhancements to counter mass violence and violent crime.  The Department of Justice is committed to restoring law and order by providing federal resources where they are most needed and most effective.  These resources will enable the department to detect, trace, and apprehend dangerous criminals, limiting their painful impact to American citizens. 

For more information, view the Countering Mass Violence Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets

Drug Enforcement and the Opioid Crisis

The United States is in the midst of the deadliest drug epidemic in American history.  According to the Centers for Disease Control and Prevention (CDC), more than 67,300 Americans died from drug overdoses in 2018.  Over 46,800, or over two-thirds, of these overdose deaths were caused by heroin, fentanyl, and prescription opioids.  While the number of overdose deaths represent a 4.1 percent decline from 2017, drug overdoses remain significantly high.  On March 18, 2018, the administration released the Initiative to Stop Opioid Abuse and Reduce Drug Supply and Demand, and the department remains committed to doing its part to protect the American people from the impact of drugs and drug-related crime nationwide.

The FY 2021 budget requests $379.6 million in program enhancements and transfers to combat the opioid crisis and bolster drug enforcement efforts.  These resources enable the department to target the drug trafficking organizations responsible for opioid abuse and drug-related violence in our communities.  It also enhances the capacity of department agents to deny revenues to drug traffickers using the best cyber capabilities and technologies, enabling the department to keep pace with these nefarious actors.

For more information, view the Drug Enforcement and the Opioid Crisis Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets

First Step Act

The timely, efficient, and effective implementation of the First Step Act of 2018 (FSA) is a priority for the department and the administration.  The landmark criminal justice reform bill includes numerous provisions to reduce recidivism among federal offenders, such as increasing inmates’ access to pre-release custody so that they can finish portions of their sentences in the community; expanding the Medication Assisted Treatment (MAT) program to assist and treat inmates with opioid use disorders; and increasing the availability of evidence-based risk-reduction programs, such as vocational, life skills, and mental health programs..

The FY 2021 budget requests $409.5 million to continue implementing the FSA.  These investments will allow an additional 8,700 inmates to ease transition back to their communities, bring MAT treatment to every Federal Bureau of Prisons facility in the nation, and increase inmate access to job and life skills training programs needed to successfully re-enter society.

For more information, view the First Step Act Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets

Enforce Immigration Laws

The FY 2021 budget strengthens the nation’s security through stronger enforcement of the nation’s immigration laws.  The department is requesting $143.1 million in immigration related program enhancements for FY 2021, to enforce the nation’s immigration laws and defend the federal government against challenges to immigration policies and actions.  These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration to the United States by expanding capacity, improving efficiency, and removing impediments to the timely administration of justice.  This budget supports the department’s efforts, along with our partners at the Department of Homeland Security, to fix our immigration system.

For more information, view the Enforce Immigration Laws Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets

National Security and Cyber

National security remains one of the Department’s highest priorities.  Threats are constantly evolving, requiring additional investments to mitigate those threats in innovative ways.  Terrorists seek to sabotage critical infrastructure; organized crime syndicates seek to defraud banks and corporations; and spies seek to steal defense and intelligence secrets and intellectual property.  Each threatens our nation’s economy and security. 

The FY 2021 budget supports the department in responding to those evolving threats by dedicating $122.8 million in program enhancements for the FBI and the National Security Division (NSD).

For more information, view the National Security and Cyber Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets

State, Local, and Tribal Assistance

The department is solidly committed to the president’s initiatives to reduce violent crime and address the opioid epidemic.  Federal law enforcement officers constitute only 15 percent of the total number of law enforcement officers nationwide; therefore, 85 percent of the officer support relies upon strong partnership with state and local law enforcement.  The department supports its partners in state and local law enforcement, who have critical intelligence about violent crime in their communities, and whose actions are crucial in the fight against violent crime and the opioid epidemic. 

The FY 2021 budget continues its commitment to state, local and tribal law enforcement by investing approximately $4.3 billion in discretionary and mandatory funding in programs to assist them.  Funding has been prioritized to meet the most pressing law enforcement concerns – violent crime and opioid abuse – and to help the victims of crime.

For more information, view the State, Local and Tribal Assistance Fact Sheet at https://www.justice.gov/doj/fy-2021-budget-fact-sheets

***

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

A Potomac, Maryland-based operator of companies providing food-services in government buildings pleaded guilty today to failing to account for and pay over more than $10 million in employment and sales tax, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Timothy J. Shea for the District of Columbia.

According to documents and information provided to the Court, Steve Choi was the founder, president, and operator of nine companies that provided food services within government buildings located in the DC area. As president and operator of the companies, Choi was responsible for withholding, accounting for, and paying over to the Internal Revenue Service (IRS) employment taxes.  Notwithstanding these obligations, and civil collection efforts by the IRS, Choi failed to pay the companies’ employment taxes.  Even after Choi acknowledged in a 2011 interview with IRS personnel that he had the authority and responsibility to pay employment taxes, from 2012 through 2015, Choi did not pay over $4.4 million in employment taxes.  During the same period, Choi also did not pay more than $6.2 million in sales taxes to the D.C. Office of Tax and Revenue on behalf of his food services companies. Rather than pay the sales and employment taxes, from 2011 through 2015, Choi directed his companies to pay millions of dollars in other expenditures, including over $1 million in personal salary, personal donations, and cash advances.

“Prosecuting employment tax fraud remains a priority for both the Tax Division and the Internal Revenue Service,” said Principal Deputy Assistant Attorney General Zuckerman. “As today’s guilty plea reflects, we will aggressively pursue those who do not comply with their employment tax obligations.”

“Choi chose to personally enrich himself rather than abide by the law and pay over employment taxes he already withheld,” said IRS-CI SAC Kelly R. Jackson. “The tax law is clear – every employer is responsible for withholding and paying over employment taxes from the salaries of their employees.”

U.S. District Judge Ketanji Brown Jackson scheduled sentencing for June 2, 2020.  At sentencing, Choi faces a statutory maximum sentence of five years in prison. He also faces a period of supervised release and monetary penalties. In his plea agreement, Choi has agreed to pay restitution of $6,490,515 to the Office of Tax and Revenue and of $4,903,820 to the United States.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Shea thanked special agents of IRS-Criminal Investigation and Office of Tax and Revenue who investigated the case, and Trial Attorneys Jack Morgan and Eric Schmale of the Tax Division, as well as Assistant U.S. Attorney Veronica Sanchez, who are prosecuting the case.

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

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

A Queens, New York, business owner pleaded guilty today to failing to pay employment taxes to the Internal Revenue Service (IRS), 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, Sergei Denko was the owner and operator of Denko Mechanical Inc. and Independent Mechanical Inc., both contracting businesses in Queens that specialized in plumbing. From 2010 through 2014, Denko cashed customer checks and used the cash to pay employees. Denko then filed false employment tax returns that failed to report the cash wages and the employment taxes due. Denko admitted that he caused a tax loss of more than $360,000 to the Internal Revenue Service (IRS).

U.S. District Judge Rachel P. Kovner scheduled sentencing for June 15, 2020. At sentencing, Denko faces a statutory maximum sentence of five years in prison, 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 Eric Schmale and Mark Kotila of the Tax Division, who prosecuted this case.

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

A federal grand jury returned an indictment charging Alan Gaines, a Missouri resident, with participating in a conspiracy to rig bids submitted to the General Services Administration (GSA) at online auctions for surplus government equipment, the Department of Justice announced.

According to the indictment filed in the U.S. District Court in Minneapolis, Gaines conspired to rig bids at public online GSA auctions of surplus government equipment from about July 2012 until as late as May 2018.  Gaines is the third individual charged in this investigation.  Two co-conspirators, Marshall Holland and Igor Yurkovetsky, previously pleaded guilty in the investigation.

“Rigging bids at government auctions cheats taxpayers out of the benefits of competition and steals from the public purse,” said Assistant Attorney General Makan Delrahim of the Department of Justice.  “This indictment affirms the Division’s commitment to safeguarding online markets and holding to account individuals who rig bids.” 

“The general public deserves a level playing field when doing business with the government,” said GSA Inspector General Carol Ochoa.  “GSA OIG is committed to prosecuting individuals who corrupt the system put in place for fair and competitive bidding.”

The GSA operates GSA Auctions, which offers the general public the opportunity to bid electronically on a wide variety of federal assets, including computer equipment that is no longer needed by government agencies. GSA Auctions sells that equipment via its online auctions, and the proceeds of the auctions are distributed to the government agencies or the U.S. Treasury general fund.  According to the charge, the primary purpose of the conspiracy was to suppress and eliminate competition.  Additionally, the co-conspirators obtained the equipment by agreeing which co-conspirators would submit bids for particular lots offered for sale by GSA Auctions and which co-conspirator would be designated to win a particular lot.

Gaines is charged with violating the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.  An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The ongoing investigation into bid rigging at GSA auctions is being conducted by the Antitrust Division’s Chicago Office and the GSA Office of Inspector General’s Great Lakes Regional Investigations Office in Chicago, Illinois.  Anyone with information concerning bid rigging or fraud related to GSA auctions should contact the Chicago Office of the Antitrust Division at 312-984-7200, the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit http://www.justice.gov/atr/report-violations or email the GSA Office of Inspector General at fraudnet@gsaig.gov.

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.

Carter Brett, an account executive for a large flooring manufacturer, has been charged for conspiring to rig bids and fix prices for commercial flooring products and services, and for his role in a money laundering conspiracy involving kickbacks, the Department of Justice announced.

“The bid-rigging and money laundering schemes charged today cheated a state-funded school out of competitive bids and lined the defendant’s pockets with kickbacks,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “This latest charge in the ongoing investigation demonstrates the Antitrust Division’s commitment to bringing to justice those in the commercial flooring industry who have victimized Chicago-area schools, hospitals, charities, and businesses.”

“When businesses rig bids to increase their own profits illegally, it is our citizens who suffer,” said Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Division. “Today’s charges illustrate our ongoing efforts to protect Americans from price fixing and other dishonest business practices.”

According to a two-count felony charge filed today in U.S. District Court in Chicago, Illinois, Brett engaged in a conspiracy to suppress and eliminate competition in the commercial flooring market by initiating and orchestrating a bid rotation conspiracy among three commercial flooring installation companies so that the designated company would win the bidding for jobs at a suburban community college. According to the charge, Brett and his co-conspirators carried out the conspiracy from at least as early as 2013 until as late as June 22, 2017.

The second count filed today charges Brett with engaging in a money laundering conspiracy wherein Brett solicited and accepted kickbacks from his co-conspirators in exchange for offering those co-conspirators unlawfully low pricing. The charge alleges that Brett established a shell corporation for the sole purpose of receiving the illegal kickback payments. According to the charge, Brett and his co-conspirators carried out this conspiracy from at least as early as 2013 until late 2017.

A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Conspiring to commit money laundering carries maximum penalties of a $500,000 criminal fine and 20 years in prison. The maximum fine may be increased to twice the value of the property involved in the money laundering transactions, if that amount is greater than the statutory maximum fine.

The information charging Brett is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The charges are the result of an ongoing federal antitrust investigation into bid rigging, price fixing, and other anticompetitive conduct in the commercial flooring industry, conducted by the Antitrust Division’s Chicago Office and the FBI’s Chicago Field Division. Brett is the fifth individual to be charged in the investigation; one corporation has also been charged to date.

Anyone with information on bid rigging, price fixing, or other anticompetitive conduct related to the commercial flooring industry should contact the Antitrust Division’s Chicago Office at 312-984-7200, contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

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

A tax return preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return, 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, between 2013 and 2016, Renita Jenifer, 52, of District Heights, Maryland, operated RAJen Business Tax Service (RAJen), a return preparation business in D.C. During those years, Jenifer prepared false tax returns for clients that included fraudulent and inflated business expenses and itemized deductions, such as charitable contributions and unreimbursed employee expenses. By including these false items, Jenifer’s secured refunds for her clients from the Internal Revenue Service (IRS) to which they were not entitled. 

In 2016, after IRS-Criminal Investigation executed a search warrant at RAJen’s office in D.C. and revoked Jenifer’s Electronic Filing Identification Number (EFIN), Jenifer formed DS Professional Tax Service LLC (DS Pro), a new tax preparation business in Maryland. As she had done at RAJen, Jenifer prepared false tax returns for clients of DS Pro. In 2018, Jenifer moved this new business to D.C. and continued to prepare false returns for clients. To conceal her fraud, Jenifer used the name of anothert individual to obtain an EFIN for DS Pro, and she listed that individual’s name on tax returns she prepared, instead of her own.

In 2013 and 2014, Jenifer also filed her false tax returns for herself, omitting income from her business. In 2017 and 2018, Jenifer did not file personal tax returns at all, despite earning income from DSPro. In total, Jenifer caused a tax loss to the United States of $373,090.     

U.S. District Judge Kentaji Brown Jackson set sentencing for May 12, 2020. Jenifer faces a prison term of up to three years, as well as monetary penalties. As part of her plea agreement, Jenifer has agreed to pay $357,819 in restitution to the United States.

Principal Deputy Assistant Attorney General Zuckerman thanked agents of IRS- Criminal Investigation and the D.C. Office of Tax and Revenue, who investigated this case, and Trial Attorneys Melissa Siskind and William Guappone of the Tax Division, who prosecuted this case.

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

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

In his State of the Union Address, President Trump underscored that the rule of law is central to American freedom and prosperity. This principle is what drives Department of Justice initiatives like Operation Relentless Pursuit and Project Guardian, which are helping to reduce violent crime across our country. We have aggressively fought the opioid epidemic and drug-overdose deaths declined last year for the first time in three decades. We have implemented the President’s landmark criminal-justice reform initiative, the First Step Act, through which thousands of Americans are being given a chance at redemption. We have continued to defend religious liberty for all Americans. We will continue to fight the unlawful practice of sanctuary jurisdictions, which put Americans at risk while aiding criminal aliens who are here illegally. 

The men and women of law enforcement have no greater supporter than President Trump, and America is a safer place under his leadership.

The United States has filed a civil suit in the Eastern District of Texas seeking to bar Desmond I. Chizoba from owning or operating a tax return preparation business and preparing tax returns for others, the Justice Department announced today. The complaint also requests that the court require Chizoba, who operated tax preparation stores under the names Liberty Tax Service and Kish Tax Service, to disgorge ill-gotten fees that he obtained from the U.S. Treasury through the alleged false tax return preparation.

According to the government’s complaint, Chizoba prepares returns claiming false credits and fabricated businesses, related losses, and itemized deductions.  For example, the government alleges that Chizoba prepared a return on which he concocted a business for a health insurance industry employee and fabricated a $29,510 loss for the phony business. By repeatedly underreporting tax liabilities and claiming bogus refunds on behalf of his customers, Chizoba has allegedly caused the United States to lose substantial tax revenue.

“Particularly during this time of year, when honest taxpayers are filing their returns, we want the public to know that the Justice Department will pursue those who would abuse our nation’s tax laws,” said Principal Deputy Assistant Attorney General for the Tax Division Richard Zuckerman.  “Fraudulent tax return preparers too often seek to take advantage of their customers and the U.S. Treasury, which undermines our tax system.”

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers.

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

The Justice Department announced that the Office of Community Oriented Policing Services (COPS Office) has released over $500 million in grant solicitations under the COPS Hiring Program (CHP) and several other grant programs that advance community policing, keep school students safe and promote the health and safety of our nation’s law enforcement officers. 

“There is no more noble a profession than serving as a law enforcement officer and putting your life on the line to protect your community. Our police officers fight an unrelenting fight, and it is more important than ever to support them,” said COPS Office Director Phil Keith. “This funding will provide critical support to state, local, and tribal agencies so that they can bolster their ranks and reinforce community policing strategies and programs, and further our commitment to reducing violent crime.”

The COPS Hiring Program is a competitive award program intended to reduce crime and advance public safety through community policing by providing direct funding for the hiring of career law enforcement officers.  In addition to providing financial support for hiring, CHP provides funding to state, local, and tribal law enforcement to enhance local community policing strategies and tactics.  In a changing economic climate, CHP funding helps law enforcement agencies maintain sufficient sworn personnel levels to keep their communities safe. Funding through this program had been on hold since the spring of 2018 due to a nationwide injunction, which was recently lifted.

The 2020 Community Policing Development Program will fund projects related to a Law Enforcement Injury Prevention and Rehabilitation Program Toolkit; Recruiting the Next Generation of Officers and Deputies; Promising Practices in Law Enforcement Victim Support; Rural Law Enforcement Training Center; and Managing High-Risk Law Enforcement Vehicular Pursuits.  This grant program provides 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 Law Enforcement Mental Health and Wellness Act Program provides funding to improve the delivery of and access to mental health and wellness services for law enforcement through training and technical assistance, demonstration projects, and implementation of promising practices related to peer mentoring mental health and wellness programs. This year’s program will fund projects related to Peer Support Implementation Projects and a National Peer Support Program for Small and Rural Agencies.

The Preparing for Active Shooter Situations Program provides funding for scenario-based training that prepares officers and other first responders to safely and effectively handle active-shooter and other violent threats. This year’s program will train at least 20,000 first responders through scenario-based, multi-disciplinary training classes.

The COPS Office Anti-Heroin Task Force Program advances public safety by providing funds directly to state law enforcement to locate and investigate illicit activities through statewide collaboration related to the distribution of heroin, fentanyl, or carfentanil or the unlawful distribution of prescription opioids.

The COPS Anti-Methamphetamine Program is designed to investigate illicit activities related to the manufacture and distribution of methamphetamine. Funding must be used to locate or investigate illicit activities such as precursor diversion, laboratories, or methamphetamine traffickers.

The STOP School Violence Prevention Program provides funding to improve security at schools and on school grounds in the grantees’ jurisdictions through evidence-based school safety programs.

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

The COPS Office is a federal agency 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 approximately 130,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance. For additional information about the COPS Office, please visit www.cops.usdoj.gov.

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

The Department of Justice, on behalf of the U.S. government, has executed a trilateral agreement with the governments of the Federal Republic of Nigeria (Nigeria) and the Bailiwick of Jersey (Jersey) to repatriate to Nigeria approximately $308 million traceable to the kleptocracy of former Nigerian dictator Sani Abacha and his co-conspirators. 

In 2014, U.S. District Judge John D. Bates for the District of Columbia entered judgment forfeiting approximately $500 million located in accounts around the world, as the result of a civil forfeiture complaint the Department of Justice filed against more than $625 million traceable to money laundering involving the proceeds of Abacha’s corruption.  After appeals in the United States were exhausted in 2018, the government of Jersey enforced the U.S. judgment against over $308 million located in that jurisdiction. 

“General Abacha and his cronies robbed Nigerians of vast public resources and abused the U.S. and international financial systems to launder their criminal proceeds,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.  “Today’s landmark agreement returns to the people of Nigeria hundreds of millions of the embezzled monies through a lawful process that ensures transparency and accountability.”

The forfeited assets represent corrupt monies laundered during and after the military regime of General Abacha, who assumed the office of the president of the Federal Republic of Nigeria through a military coup on Nov. 17, 1993, and held that position until his death on June 8, 1998.  The complaint alleges that General Abacha, his son Mohammed Sani Abacha, their associate Abubakar Atiku Bagudu and others embezzled, misappropriated and extorted billions from the government of Nigeria and others, then laundered their criminal proceeds through U.S. financial institutions and the purchase of bonds backed by the United States.  Jersey’s cooperation in the investigation, restraint and enforcement of the U.S. judgment, along with the valuable contributions of Nigeria and other law enforcement partners around the world, have been instrumental to the recovery of these funds.

Under the trilateral agreement signed today, the United States and Jersey will transfer 100 percent of the net forfeited assets to the Federal Republic of Nigeria to support three critical infrastructure projects in Nigeria that were previously authorized by Nigerian president Muhammadu Buhari and the Nigerian legislature.  Specifically, the laundered funds under this agreement will help finance the construction of the Second Niger Bridge, the Lagos-Ibadan Expressway and the Abuja-Kano road – investments that will benefit the citizens of each of these important regions in Nigeria. 

The agreement includes key measures to ensure the transparency and accountability, including administration of the funds and projects by the Nigeria Sovereign Investment Authority (NSIA), financial review by an independent auditor, and monitoring by an independent civil society organization with expertise in engineering and other areas.  The agreement also precludes the expenditure of funds to benefit alleged perpetrators of the corruption or to pay contingency fees for lawyers.  The agreement reflects the sound principles for ensuring transparency and accountability adopted at the Global Forum on Asset Recovery (GFAR) in December 2016 in Washington, D.C., which the United States and the United Kingdom (UK) hosted with support from the Stolen Asset Recovery Initiative of the World Bank and United Nations Office on Drugs and Crime.   

In addition to the more than $308 million forfeited in Jersey, the Department of Justice is seeking to enforce its forfeiture judgment against approximately $30 million located in the UK and over $144 million in France.  The United States is also continuing to seek forfeiture of over $177 million in additional laundered funds held in trusts that name Abacha associate Bagudu, the current governor of Kebbi State, and his relatives as beneficiaries.  The United States has asked the government of Nigeria to withdraw litigation it has instituted in the UK that hinders the U.S. effort to recover these additional funds for the people of Nigeria.  The United States entered into the trilateral agreement to repatriate the Jersey assets because of its longstanding commitment to recover asset for the benefit of those harmed by grand corruption and because of the important safeguards embodied in the agreement.  

This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section working in partnership with the FBI.  Through the Kleptocracy Asset Recovery Initiative, the Department of Justice and federal law enforcement agencies seek to safeguard the U.S. financial system from criminal money laundering and to recover the proceeds of foreign official corruption.  Where appropriate and possible, the department endeavors to use recovered corruption proceeds to benefit the people harmed by acts of corruption and abuse of public trust. 

Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov.  The department appreciates the extensive assistance provided by the governments of Jersey, France, Nigeria and the UK in this investigation.

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

The Department of Justice and Federal Trade Commission today announced two public workshops, on March 11, 2020 and March 18, 2020, to solicit public dialogue on the draft vertical merger guidelines released on Jan. 10, 2020. The two half-day workshops will allow for a dynamic discussion about the proposed guidelines to complement any written public comments about the draft guidelines that are submitted to the agencies. The agencies will select panelists for the workshops from those that file public comments and indicate their interest and availability to participate.

The agencies also announced today that they will extend the deadline for submitting public comments regarding the draft vertical merger guidelines. The new final deadline for submitting comments is Feb. 26, 2020.

“The Antitrust Division has benefitted greatly from public engagement in preparing the draft guidelines, and I expect that will continue through the comment and workshop process,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “Afterwards, we look forward to finalizing the first update to our vertical merger guidelines in more than three decades.”

The draft guidelines describe how the federal antitrust agencies review vertical mergers to evaluate whether they violate antitrust law. Vertical mergers combine two or more companies that operate at different levels of the supply chain. The draft guidelines outline the agencies’ principal analytical techniques, practices, and enforcement policy for vertical mergers. The agencies will consider both public comments and workshop discussions before issuing final Vertical Merger Guidelines.

The Department of Justice encourages comments from the public on the draft vertical merger guidelines. Interested parties may submit public comments online now through Feb. 26, 2020, by emailing verticalmergerguidelines@ftc.gov and verticalmergerguidelines@usdoj.gov. Commenters should indicate in the email if they are interested in participating in either workshop as a panelist and the date(s) they are available.

Both workshops are free and open to the public. The March 11, 2020 workshop will take place at the Robert F. Kennedy Department of Justice Building, 950 Pennsylvania Avenue, NW, Washington, D.C., from 1 p.m. Eastern Time to 5 p.m. Eastern Time and the March 18, 2020 workshop will take place at the Federal Trade Commission, 600 Pennsylvania Avenue, NW, Washington, D.C., from 1 p.m. Eastern time to 5 p.m. Eastern Time. A recording of the workshop will be available on the Division’s website. Registration information, an agenda, directions to the event, and a list of speakers will be available prior to each workshop on the event webpage. Attendees are encouraged, but not required, to register in advance for the workshop. Registration for the March 11 workshop may be completed on Eventbrite. Members of the press should also copy Alexei.Woltornist@usdoj.gov on their registration email. Seating will be on a first-come, first-served basis. Attendees should bring a valid government-issued photo ID (government badge, license, passport, etc.) and arrive in time to go through security.

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

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 today appointed Bobak (Bobby) Talebian as Director of the Office of Information Policy (OIP). He has served as Acting Director since October 2019, and replaces Melanie Ann Pustay as Director.

Mr. Talebian will be responsible for managing the Department’s responsibilities related to the Freedom of Information Act (FOIA), including responding to initial requests made to the Department’s senior leadership offices, adjudicating all appeals from denials by any Department component under the FOIA, developing FOIA policy guidance for all Executive Branch agencies, providing legal counsel and training to agency personnel on the procedural and substantive aspects of the Act, and for overseeing agency compliance with the law.

“Bobby brings a wealth of experience and knowledge to this position,” said Attorney General Barr. “OIP and the Department of Justice will continue to benefit from his insight, expertise and dedication to public service.”

Before becoming Acting Director, Mr. Talebian served as Acting Chief of Staff from August 2019 to October 2019, where he supervised and managed the day-to-day operations of the office.  Earlier, from May 2013 to August 2019, he was the Chief of OIP’s FOIA Compliance Staff, where his team executed OIP’s responsibilities to oversee and encourage government-wide compliance with the FOIA. 

Mr. Talebian graduated from the University of Tennessee College of Law where he served on Law Review.

###

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.

DES MOINES, Iowa – On January 30, 2020, following a four-day trial, a jury found Daeron Johnson Merrett guilty of conspiracy to distribute 500 grams or more of cocaine, 8 counts of distribution of a controlled substance, one count of possession with intent to distribute cocaine, and one count of possessing a firearm as a felon. The case was presided over by United States District Court Judge Rebecca Goodgame Ebinger. Sentencing is scheduled for May 29, 2020, at 9:00 a.m.

Merrett was arrested on March 27, 2019, during the coordinated execution of search and arrest warrants in Des Moines. Merrett was identified from the criminal complaint affidavit as a leader of C-Block, a criminal street gang based in Des Moines. In December 2018, law enforcement obtained authorization to intercept Merrett’s telephone communications, which led to the identification of Merrett’s cocaine trafficking network.

During trial, the government presented evidence that Merrett began traveling to Chicago, Illinois in January 2019 to obtain cocaine for distribution in Des Moines. Over the course of a one-month period, Merrett made four separate trips to Chicago to obtain cocaine, totaling over 500 grams. The evidence also showed that Merrett developed a Texas-based cocaine source of supply, from which he arranged to receive a kilogram of cocaine. Merrett had numerous cocaine customers and co-conspirators in Des Moines, many of whom were charged in the same Indictment and have entered guilty pleas.

On March 27, 2019, during a search warrant executed at Merrett’s Des Moines residence, law enforcement located cocaine, numerous digital scales, packaging materials, a loaded firearm, and various rounds of ammunition.

Merrett has a prior conviction for a serious drug felony, that is, a 2011 conviction in the Iowa District Court for Polk County for delivery of a controlled substance.

Conspiracy to distribute more than 500 grams of cocaine following a conviction for a serious drug felony carries a mandatory minimum term of imprisonment of ten years and a maximum term of imprisonment of life.

The case was investigated by the Federal Bureau of Investigation’s Central Iowa Gang Task Force, Des Moines Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Drug Enforcement Administration, Dallas County Sheriff’s Office, Polk County Sheriff’s Office, Story County Sheriff’s Office, and the Altoona Police Department. The case was prosecuted by Assistant United States Attorneys Mikaela J. Shotwell and Adam J. Kerndt.

Attorney General William P. Barr today announced that Erin Nealy Cox, U.S. Attorney for the Northern District of Texas, has been elevated from Vice Chair to Chair of the Attorney General’s Advisory Committee (AGAC).

Attorney General Barr also announced Justin Herdman, U.S. Attorney for the Northern District of Ohio, will become the new Vice Chair.

“Erin Nealy Cox has shown herself to be a leader in the U.S. Attorney community, a fierce advocate for the rule of law who has spearheaded prosecution efforts targeting domestic abusers and other violent criminals,” said Attorney General Barr. “Justin Herdman has also been a leader at the forefront of the department’s fight against the deadly trade in fentanyl and other dangerous drugs. I am pleased to have them leading my AGAC team.”

U.S. Attorney Nealy Cox replaced former Chair, Jessie Liu who resigned this week as U.S. Attorney for the District of Columbia.

In addition, Attorney General Barr appointed U.S. Attorney John Bash to the Attorney General’s Advisory Committee.

The AGAC represents the voice of the U.S. Attorneys and provides advice and counsel to the Attorney General on policy, management and operational issues impacting the Offices of the U.S. Attorneys.

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

The Department of Justice will hold a public workshop in Washington, D.C. on Feb. 19, 2020, titled “Section 230 – Nurturing Innovation or Fostering Unaccountability?,” to discuss Section 230 of the Communications Decency Act of 1996, its expansive interpretation by the courts, its impact on the American people and business community, and whether improvements to the law should be made.

Drafted nearly 25 years ago in the early years of the internet to protect online businesses in their incipiency, Section 230 limited certain liabilities for interactive computer service providers for third-party content on their platforms.  Courts have interpreted the scope of Section 230 broadly, leaving a wide array of online activity immune from lawsuits.  Now that the industry has matured, valid questions have been raised regarding the broad scope of Section 230 and whether the immunity is still required in its current form.

Proponents claim that Section 230 immunity led to the flourishing of the internet and the creation of the online ecosystem we see today.  Opponents, on the other hand, believe that the broad interpretation of Section 230 has prevented solutions to a variety of problems that continue to proliferate to the detriment of victims, law enforcement, and civil discourse.  The Justice Department intends to examine these issues and identify and discuss potential solutions.

The workshop is free and open to the public, and will be held in the FBI Auditorium, 935 Pennsylvania Ave NW, Washington, D.C. 20535, from 9 a.m. Eastern Time to 12:45 p.m. Eastern Time.  If you are interested in attending, please register at https://www.justice.gov/ag/webform/section-230-workshop-registration by Feb. 9, 2020.  As seating is limited, invitations to attend will be sent to registered participants on a first-come, first-served basis.  Members of the press should also email Alexei.Woltornist@usdoj.gov.  

Following the public workshop, the Justice Department will invite stakeholders with diverse perspectives for private listening sessions and roundtables to seek additional input and discuss the problems, benefits, and potential improvements to Section 230.  The department will publish readouts on the various perspectives and debate from those meetings.

Reasonable accommodations for people with disabilities are available upon request.  If you need such an accommodation, please contact the department by sending an email to workshop@usdoj.gov.  Such requests should include a detailed description of the accommodations needed and a way to contact you if we need more information.

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

The Department of Justice, the Department of the Interior and the Department of Health and Human Services today held the first meeting of a White House task force to address the incidence of missing and murdered American Indians and Alaska Natives. The task force, co-chaired by Attorney General Barr and Secretary of the Interior Bernhardt, is composed of federal officials charged with enhancing the criminal justice response, consulting with tribal governments on potential solutions, and empowering native communities with information.

“The disappearance and death of American Indian and Alaska Native people, particularly women and girls, is an especially tragic chapter in a long story of marginalization and trauma suffered by native people,” said Attorney General William P. Barr. “We are committed to addressing this challenge, to reducing the violence and protecting the vulnerable from exploitation and abuse. The task force is eager to get to work to address the issues that underlie this terrible problem, and work with our tribal partners to find solutions, raise awareness, and bring answers and justice to the grieving.”

“President Trump is committed to addressing systemic challenges in Indian Country, and this task force will develop and implement an aggressive, government-wide strategy to combat the crisis of missing and murdered American Indians and Alaska Natives,” said Secretary of the Interior David Bernhardt. “By working together and listening to impacted citizens and tribal communities, we intend to tackle these complex issues.”

“I am grateful that President Trump has made it a priority to tackle the tragic issue of missing and murdered American Indians and Alaska Natives,” said Health and Human Services Secretary Alex Azar. “Native Americans deserve safety and security in their communities, and HHS has a vital role in helping by providing culturally appropriate prevention and trauma informed services to victims and their families. I am committed to working in partnership with President Trump, Attorney General Barr, Secretary Bernhardt, and tribal leaders and members to make a positive impact on this important challenge.”

American Indians and Alaska Natives experience disproportionately high rates of violence. President Trump has called the crisis of missing and murdered Native Americans “sobering and heartbreaking.” The task force, designated Operation Lady Justice, has been empowered to review Indian Country cold cases, to strengthen law enforcement protocols, and work with tribes to improve investigations, information sharing and a more seamless response to missing persons investigations. Specifically, it will:

• Consult with tribal governments on the scope and nature of the problem; the task force will hold regional consultations and listening sessions at several locations around the country the task force will also host a listening session at the National Congress of American Indians’ Executive Council Winter Session in Washington, D.C. on Feb. 12.
• Develop model protocols and procedures for addressing both new and unsolved cases of missing and murdered persons in tribal communities;
• Establish a multi-disciplinary, multi-jurisdictional team, which will include tribal law enforcement, to review cold cases;
• Address issues related to roles, authorities and jurisdiction among tribal, local, state and federal agencies; and
• Develop and execute a public awareness, education and outreach campaign for affected communities.

The members of the task force are:

• Katharine Sullivan, Principal Deputy Assistant Attorney General, Office of Justice Programs, designee for the Attorney General;
• Tara Sweeney, Assistant Secretary for Indian Affairs, designee for the Secretary of the Interior;
• Terry Wade, Executive Assistant Director, Criminal, Cyber, Response and Services Branch, Federal Bureau of Investigation;
• Laura Rogers, Acting Director, Office on Violence Against Women;
• Charles Addington, Deputy Bureau Director, Bureau of Indian Affairs, Office of Justice Services;
• Trent Shores, U.S. Attorney for the Northern District of Oklahoma and Chair of the Native American Issues Subcommittee of the Attorney General’s Advisory Committee; and
• Jean Hovland, Deputy Assistant Secretary for Native American Affairs and Commissioner, Administration for Native Americans, Department of Health and Human Services.

In accordance with the President’s Executive Order, Attorney General Barr designated Marcia Good of the Department of Justice, to serve as Executive Director of the task force, which will present a progress report to the President by Nov. 26, 2020, and a final report detailing its activities and accomplishments by Nov. 26, 2021.

The year 2020 marks the 150th anniversary of the Department of Justice. Learn more about the history of the Department of Justice at www.Justice.gov/Celebrating150Years.  2020 also marks 171st anniversary of the Department of the Interior.  Learn more about the history of DOI at www.doi.gov/history/.

The Justice Department announced today that it has reached a settlement with the South Dakota Department of Social Services (Department of Social Services or DSS), a state agency that assists South Dakotans seeking public benefits, resolving allegations that DSS intentionally discriminated against Native American job applicants at its Pine Ridge Indian Reservation Office. Under the terms of the settlement agreement, subject to court approval, the Department of Social Services will pay $350,000 in back pay and other monetary relief to approximately 60 Native American job applicants. The Department of Social Services also must comply with reporting requirements regarding its hiring of Specialists at the Pine Ridge Office. 

“The Civil Rights Division is committed to enforcing the nation’s anti-discrimination laws on behalf of all Americans, including Native Americans, to make sure they are—as the Reverend Dr. Martin Luther King challenged 56 years ago—judged by the ‘content of their character’ and not the ‘color of their skin,’” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “This settlement helps move our nation towards Dr. King’s dream of making opportunity available to all unfettered by unlawful discrimination. It provides monetary relief for Native American applicants, ensures equal opportunity to compete for jobs, and establishes a reporting and oversight process to guard against racial discrimination in the future.”  

The amended complaint, filed in November 2016 in the U.S. District Court for the District of South Dakota, alleged that in failing to select qualified Native American applicants for several positions at DSS’s Pine Ridge Office, DSS engaged in a pattern or practice of discrimination that violated Title VII of the Civil Rights Act of 1964, as amended. Title VII is a federal statute that prohibits employment discrimination on the basis of race, sex, color, national origin, and religion. 

According to the amended complaint, in October 2010, Cedric Goodman, a Native American job candidate, applied for a Specialist position at DSS’s Pine Ridge Office. DSS determined that Goodman was qualified for the position and offered him an interview. After interviewing Goodman and other qualified Native American candidates, DSS removed the job posting and hired no one. The next business day, however, DSS re-posted the position and ultimately selected a white applicant with qualifications inferior to Goodman’s. In addition to the intentional discrimination claim involving Goodman, the United States also alleged that denying Goodman’s application was part of an intentional pattern or practice of race discrimination by DSS, where the Pine Ridge Office repeatedly removed job postings and used subjective, arbitrary hiring practices to disfavor qualified Native American applicants for Specialist positions. 

Goodman originally filed a charge of race discrimination with the Equal Employment Opportunity Commission (EEOC). The EEOC’s Minneapolis Area Office, in its Chicago District, investigated the matter and found reasonable cause to believe that DSS discriminated against Goodman and a class of similarly situated Native American applicants. After unsuccessful conciliation efforts, the EEOC referred the matter to Department of Justice’s Civil Rights Division.

The Civil Rights Division brought this lawsuit as part of a joint effort to enhance collaboration between the Justice Department and the EEOC in the vigorous enforcement of Title VII. Additional information about the Division, including copies of the amended complaint and the settlement agreement can be found online on its website at www.usdoj.gov/crt.

This lawsuit was handled by Trial Attorneys Jeff Morrison, Alisa Philo, Jen Swedish, and Shayna Bloom in the Employment Litigation Section of the Department of Justice’s Civil Rights Division.

The Department of Justice’s Antitrust Division announced on Dec. 19, 2019, that it would file a petition asking the court to clarify and extend by five and a half years the Final Judgment entered by the court in United States v. Ticketmaster Entertainment, Inc., et al., Case No. 1:10-cv-00139-RMC (July 30, 2010). Today, the court entered the Amended Final Judgment.  The court also set the procedure for naming of the Independent Monitoring Trustee.  The Independent Monitoring Trustee is just one term within the Amended Final Judgment that will make enforcement of the decree for the extended time period more efficient.

“Live Nation broke the promises they made to the court and the American people when they merged with Ticketmaster in 2010; today, we are holding them accountable,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “The amended decree reimburses the American people millions of dollars and makes it easier for the Antitrust Division and state enforcers to identify and prosecute future transgressions.”

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.

Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division today announced the appointment of Alexander Okuliar to serve as a Deputy Assistant Attorney General. He will be responsible for civil merger and conduct investigations and litigation.

“Alex has distinguished himself throughout his career in the government and in private practice,” said Assistant Attorney General Delrahim. “We are excited to welcome Alex back to the Division, where his elite antitrust experience will bolster the Front Office’s impressive ranks and help us fulfill our mission to protect American consumers.”

Alex’s 20-year career has taken him through tours at both federal antitrust agencies and the private sector. Most recently, Alex was a partner in the antitrust group of an international law firm where he represented clients in transactions and litigation, with an emphasis on matters involving technology, data, media, and finance. From 2012-2015, he was Attorney Advisor to Commissioner Maureen Ohlhausen of the Federal Trade Commission, where he advised the Commissioner on merger reviews, conduct investigations, and administrative litigation before the agency, as well as key privacy and competition policy developments around the world. Earlier, from 2010-2012, he was a Trial Attorney in the Technology and Financial Services Section (then-Networks & Technology Enforcement Section) of the Antitrust Division, where he led numerous investigations, including of the proposed (and subsequently abandoned) merger between the New York Stock Exchange and Deutsche Börse.

Alex is a frequent writer and speaker on competition policy issues associated with technology, data, digital markets and innovation, as well as the intersection of intellectual property and antitrust. He is an active member of the antitrust bar and has served in leadership roles at both the ABA Antitrust Law Section and Federalist Society.  Alex received his J.D. from Vanderbilt University Law School and his B.S. in Economics and B.A. in History from the Wharton School and the College of Arts & Sciences of the University of Pennsylvania.

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 the Judicial Studies Institute (JSI) in San Juan, Puerto Rico, U.S. Supreme Court Justice Sonia Sotomayor addressed 24 judges from El Salvador, Mexico, and Panama as part of a Department of Justice (DOJ) training program for the judiciaries of the Western Hemisphere.  Justice Sotomayor stressed the importance of their contribution to rule of law in the hemisphere and lauded them for their role in the transformation of Latin American justice.   

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

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

Since establishing JSI in 2012, OPDAT and its partners at the University of Puerto Rico and Inter-American University law schools have trained over 800 Latin American judges.

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

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.

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

“Sadly, in 2017, more than 1,000 Americans died every two weeks from fentanyl and fentanyl-related substances.  In an effort to combat this deadly drug epidemic, DOJ’s Drug Enforcement Administration (DEA) in February 2018 issued a temporary emergency two-year order that made illegal all fentanyl-related substances.  Our country has seen a marked supply impact from DEA’s temporary scheduling of fentanyl-related substances during the past two years, with a 50 percent decrease in fentanyl-related substances encountered across the United States.  However, DEA’s emergency authority expires at midnight on February 6, 2020, unless Congress acts to extend it.

“On January 16, 2020, the Senate unanimously passed a commonsense, bipartisan 15-month extension of DEA’s temporary scheduling of fentanyl-related substances (S.3201).   It is essential that House leadership now schedule a vote to do the same. 

“If the House fails to act by midnight on February 6, traffickers of deadly opioids will again have the upper hand.   This cannot be allowed to happen.  The House of Representatives needs to act to help save Americans from more overdoses and deaths.”

See relevant op-eds on the fentanyl topic:

Attorney General William P. Barr op-ed.

U.S. Attorney Robert M. Duncan op-ed.

U.S. Attorney Justin Herdman op-ed.

U.S. Attorney John R. Lausch op-ed.

U.S. Attorneys for each New England District op-ed.

Earlier today, U.S. Attorney General William P. Barr met with the Attorney General of Guatemala Maria Consuelo Porras Argueta in Washington, DC. They discussed ways to strengthen efforts to combat transnational organized crime and reduce illegal migration to the United States through increased cooperation and capacity building of law enforcement partners. They discussed their shared commitment to protecting the security and safety of the citizens of both the United States and Guatemala from transnational criminal organizations (TCOs) and gangs. Today’s meeting was a follow-up dialogue to the May 2019 Third Ministerial of the Northern Triangle Attorneys General in El Salvador.

They discussed the continued progress of the Justice Department’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) capacity-building efforts in the Guatemalan judicial sector and key role in bringing together the Attorneys General from Guatemala, Honduras, and El Salvador to form the Regional Shield operations targeting MS-13 and other gangs. Additionally, they discussed ongoing accomplishments in combating violence in the region from transnational gangs, particularly MS-13 and 18th Street gangs. Regional Shield anti-gang efforts led to the arrest of more than 1,000 gang members in the past year.  Also during that time, eleven smuggling/trafficking structures were dismantled in Guatemala.

Both Attorneys General agreed to continue working closely together through greater operational collaboration and intelligence sharing, including increased law enforcement coordination to fight corruption and impunity and strengthen the rule of law for the benefit of all Guatemalans and further criminal investigations in drug and human trafficking, emerging organized criminal groups, cyber and intellectual property crimes.

Attorney General Barr thanked the Government of Guatemala for extraditing fugitives to the United States and said that extradition sends a strong message to criminal organizations that our countries remain committed to the rule of law and are not safe havens for criminals. Additionally, Attorney General Barr applauded Guatemala’s efforts to fight corruption and criminal organizations engaged in human trafficking and its continual efforts to root out organizations involved in human smuggling.

The Attorneys General agreed that transnational crime affects both countries and that with continual cooperation we can dismantle these organizations, reduce violent crime, and generate stability and prosperity.  

Continued bilateral law enforcement collaboration and successful law enforcement programs between the United States and Guatemala remain a priority for the U.S. Government.

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

A federal court in Columbus, Georgia, permanently barred Stacy Lee and Heather Lee from preparing tax returns for others and from owning, operating, or franchising a tax return preparation business, the Justice Department announced today. The court also ordered Stacy Lee and Heather Lee to close their tax return preparation stores. Stacy Lee and Heather Lee consented to the relief.

According to the complaint, Stacy Lee operated two tax return preparation stores under the names Fast Track Tax Service in Talbotton, Georgia, and TimeLee Tax Service in Columbus, Georgia. Stacy Lee’s daughter, Heather Lee, allegedly prepared tax returns at the two stores as well. From 2013 to 2018, Stacy Lee prepared 3,728 tax returns and Heather Lee prepared 1,116 tax returns, the complaint alleges.

The government further claimed that Stacy and Heather Lee prepared false federal income tax returns, understated federal income tax liabilities, and improperly claimed tax credits in order to obtain inflated tax refunds for customers. In particular, according to the complaint, the defendants fabricated deductions for charitable contributions, unreimbursed employee business expenses, and medical expenses; reported profits and losses for fictitious businesses; and claimed false education credits, energy credits, and childcare credits. 

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

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams. The IRS has information on its website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

BIRMINGHAM, Ala. – “This tragedy is a heartbreaking reminder of the dangers all law enforcement face.  While they keep us safe.  While they do the job.  Our thoughts and prayers are with Detective Finke, his family, and all of Birmingham PD.  We should never forget that the line of duty is endowed by sacrifice, selflessness, and courage.”

A citizen and resident of the Dominican Republic was sentenced today in Miami, Florida, to 65 months in prison for multiple criminal charges in connection with a sophisticated global cellphone fraud scheme that involved compromising cellphone customers’ accounts in the United States and “cloning” their phones to make fraudulent international calls.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement. 

Edgar Estarlin Peralta Lopez, 42, pleaded guilty earlier to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft.  He was sentenced by U.S. District Judge Beth Bloom of the Southern District of Florida. 

According to the plea agreement, Peralta and his co-conspirators participated in a scheme to steal access to existing cellphone accounts, and fraudulently open new cellphone accounts, using the personal information of individuals around the United States. 

Peralta admitted that he played at least two roles in the conspiracy.  First, he was a telecommunications trafficker.  Specifically, Peralta would contract with telecommunication companies to transmit international calls for them for payment and then route those calls through cellphones reprogrammed with stolen or compromised telecommunications identifying information located at “call sites” in the United States.  Peralta and other co-conspirators transmitted thousands of calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates.  The calls were later billed to United States customers’ compromised accounts.  Second, Peralta was a “line” supplier, providing his co-conspirators with stolen or compromised telecommunications identifying information that they then used to reprogram the cellphones they controlled at call sites.

In addition, Peralta admitted to trafficking in approximately 3,158 combinations of stolen or compromised telecommunications identifying information, which were found in around over 1,390 emails he exchanged with co-conspirators.  Verizon Wireless reported that fraudulent use of just three of these combinations resulted in a loss of over $33,000.  Peralta admitted to a loss amount of at least $315,800.    

Peralta is a citizen of the Dominican Republic.  He was arrested in the Dominican Republic at the request of the United States and then, in August 2019, extradited to Miami where he is currently in custody.

Peralta is the sixth and last defendant to be sentenced in the case.  Previously, defendants Edwin Fana, Farintong Calderon, Jose Santana, Ramon Batista and Braulio de la Cruz pleaded guilty to similar charges and have already been sentenced to prison terms ranging from 36 months to 75 months. 

The FBI Miami’s Cyber Task Force investigated the case, dubbed Operation Toll Free, which is part of the FBI’s ongoing effort to combat large-scale telecommunications fraud.  The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service.  Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section is prosecuting the case.

NEW ORLEANS, La. – U.S. Attorney Peter G. Strasser announced that ALEX MILLER, age 37, from Washington Parish, Louisiana, was sentenced to 130 months in prison in connection with his convictions for heroin and gun charges.

On July 23, 2019, MILLER pled guilty to conspiring to distribute 100 grams or more of heroin, two counts of possessing a firearm despite being a felon, and one count of possessing a firearm in furtherance of drug trafficking.

For the heroin conspiracy charge and the two felon-in-possession charges, Judge Wendy B. Vitter sentenced MILLER to (5) five years (60 months) in prison. For the charge of possessing a firearm in furtherance of drug trafficking, Judge Vitter sentenced MILLER to 70 months in prison, consecutive to his sentences for the other counts. This resulted in a total sentence of 130 months in prison. MILLER’s term of imprisonment will be followed by (4) four years of supervised release.

MILLER’s codefendant, LARRY DAVIS, pled guilty on August 6, 2019 to the same heroin conspiracy charge and a single count of possessing a firearm as a felon. Judge Wendy B. Vitter set sentencing for DAVIS for March 10, 2020.

U.S. Attorney Strasser praised the work of the Drug Enforcement Administration, the Louisiana State Police, the Washington Parish Sheriff’s Office Drug Task Force, and the Bogalusa Police Department. Assistant United States Attorneys Nicholas D. Moses and André Jones are in charge of the prosecution.

This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

                                                   *      *      *

A 12-count indictment was unsealed today in federal court in Brooklyn charging Daniel E. Russo, a pharmacist, with conspiracy to distribute and possess with intent to distribute oxycodone, distribution and possession of oxycodone, distribution of oxycodone by a pharmacist without legitimate prescription and filing false tax returns.  Russo was arrested this morning by federal agents and arraigned this afternoon before United States Magistrate Judge Cheryl L. Pollak.  The defendant was released on a $1.5 million bond.

Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division, Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ray Donovan, Special Agent-in-Charge, Drug Enforcement Administration (DEA), and Jonathan D. Larsen, Special Agent-in-Charge, Internal Revenue Service Criminal Investigation (IRS-CI), announced the charges.

According to the indictment, Russo owned and operated Russo’s Pharmacy Inc., a drug store located in Far Rockaway, New York. From March 2011 through June 2014, Russo allegedly conspired with others including medical professionals and employees of a physician, to fill fraudulent prescriptions for oxycodone and dispense thousands of oxycodone pills in return for hundreds of thousands of dollars in cash. The indictment also alleges that for the years 2013 through 2016, Russo filed with the Internal Revenue Service (IRS) false tax returns on behalf of Russo’s Pharmacy that omitted cash received from the illegal oxycodone distribution scheme. The indictment further charges that during those years, Russo underreported income on his own personal returns. In total, Russo is charged with failing to report over $1 million in cash, most of it generated from his oxycodone distribution scheme. 

More than a dozen physicians for whom Russo filled prescriptions have since been convicted of crimes related to the distribution of oxycodone.

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

If convicted, Russo faces a statutory maximum sentence of 20 years in prison for each of the conspiracy and possession with intent to distribute counts, and three years in prison for each count of filing a false tax return. The defendant also faces a period of supervised release, restitution and monetary penalties, as well as forfeiture.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Donoghue commended special agents of the Drug Enforcement Administration and IRS-Criminal Investigation, who are investigating the case, and Assistant U.S. Attorney Nomi D. Berenson and Trial Attorney Michael C. Vasiliadis of the Tax Division, who are prosecuting the case.

An Ecuadorian businessman living in Miami, Florida, pleaded guilty today in connection with a $4.4 million bribery and money laundering scheme that funneled bribes to public officials of Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador), the state-owned and state-controlled oil company of Ecuador, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office.

Armengol Alfonso Cevallos Diaz (Cevallos), 57, pleaded guilty before U.S. District Judge Rodney Smith of the Southern District of Florida to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA) and one count of conspiracy to commit money laundering.  Sentencing is scheduled for April 2, 2020.   

Cevallos admitted at the plea hearing that, from 2012 through 2015, he conspired with others to pay bribes of $4.4 million to PetroEcuador officials by using the mails and means and instrumentalities of interstate commerce, including U.S.-based companies and U.S.-based bank accounts, in order to obtain and retain business.  Cevallos also admitted that he conspired with others to conceal and promote the bribe scheme by laundering funds through Miami-based shell companies and bank accounts and by purchasing properties in the Miami area for the benefit of certain PetroEcuador officials.  Specifically, as alleged in the indictment, Cevallos admitted that he solicited and intermediated bribe payments from an oil services company for the benefit of PetroEcuador officials, and that he helped launder those bribes and others he had paid to PetroEcuador officials on behalf of Ecuadorian contractors and his own companies. 

Today’s plea follows 12 public charges and guilty pleas against other individuals in the department’s ongoing investigation into bribery and money laundering involving PetroEcuador.  The individuals who have been charged to date for their roles in the bribery and money laundering schemes include former PetroEcuador officials who received and concealed the bribe payments, businessmen and contractors who paid the bribes to obtain lucrative oil services contracts from PetroEcuador, and financial advisors and other intermediaries who enabled and facilitated the bribery through the use of U.S. and offshore companies and bank accounts. 

The FBI’s International Corruption Squad in Miami is investigating the case.  Assistant Chiefs David Fuhr and Lorinda Laryea and Trial Attorneys Jonathan Robell and Katherine Raut of the Criminal Division’s Fraud Section and Trial Attorneys Mary Ann McCarthy and Randall Warden of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case.

IRS-Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Marshals Service and the Criminal Division’s Office of International Affairs have provided significant assistance in this case, as have public authorities in, among other countries, Ecuador and Panama.

MLARS’s Bank Integrity Unit investigates and prosecutes banks and other financial institutions, including their officers, managers, and employees, whose actions threaten the integrity of the individual institution or the wider financial system.

The Fraud Section is responsible for investigating and prosecuting all FCPA matters.  Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

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

The Department of Justice announced today that it is requiring ZF Friedrichshafen AG (ZF) and WABCO Holdings Inc. (WABCO) to divest WABCO’s North American steering components business, R.H. Sheppard Co. Inc., as well as other related WABCO assets, in order for ZF to proceed with its proposed acquisition of WABCO.  Without the divestiture, the proposed acquisition would eliminate competition between the only two suppliers of steering gears used on large commercial vehicles in North America, the department’s lawsuit alleges.

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

“The merger, as originally structured, would have given ZF a monopoly over an essential steering systems component used in trucks and buses that move products and people across the United States,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “Today’s settlement, which requires the divestiture of WABCO’s entire U.S. steering systems business, will ensure that commercial vehicle manufacturers continue to benefit from competition as they design and build the trucks and buses of today and tomorrow.”

According to the Justice Department’s complaint, ZF and WABCO are the only North American suppliers of the steering gears that are an essential steering system component used in large commercial vehicles.  These steering gears direct the front wheels of trucks and buses, and are also a key component of advanced driver assistance system (ADAS) steering features.  ADAS steering features, such as lane-keeping assist, are already being implemented today, and are expected to be an area of continued importance as companies develop autonomous vehicle operations.  The department’s complaint alleges that competition between ZF and WABCO has resulted in lower prices, higher quality, better service, and more favorable contractual terms, and has fostered innovation that has led to the development of features that are integral to the current and future development of ADAS technologies.  According to the complaint, the combination of ZF and WABCO would leave manufacturers of large commercial vehicles in North America without a sufficient competitive alternative for this critical input and likely result in higher prices, less favorable contract terms, and reduced research and development efforts.

Under the terms of the proposed settlement, ZF and WABCO must divest the entirety of WABCO’s R.H. Sheppard steering systems subsidiary, including its manufacturing facilities in Hanover, Pennsylvania, and Wytheville, Virginia, as well as other WABCO assets related to steering gears.

ZF is a German company headquartered in Friedrichshafen, Germany.  It has 149,000 employees in 40 countries, and had annual sales of $36.9 billion in 2018, $9.6 billion of which were in the United States. 

WABCO is a Delaware corporation with a North American headquarters in Auburn Hills, Michigan, and a global headquarters in Bern, Switzerland.  It has 16,000 employees in 40 countries, and had annual sales in 2018 of $3.8 billion, $850 million of which were in the United States. 

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 John Read, Acting Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530.  At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.

Maria Christina “Meta” Ullings, the former senior vice president of cargo sales and marketing for Martinair N.V. (Martinair Cargo) and a Dutch national, pleaded guilty for her role in a long-running air cargo price-fixing conspiracy, the Department of Justice announced. 

Ullings’ extradition is the second extradition on an antitrust charge.  A fugitive for almost 10 years, Ullings was apprehended by Italian authorities in July 2019 while visiting Sicily.  Ullings initially contested extradition in the Italian courts, but after the Court of Appeals of Palermo ruled that she be extradited, she waived her appeal.  She arrived in Atlanta on Jan. 10, 2020, and made her initial appearance on Jan. 13 in the U.S. District Court for the Northern District of Georgia.  Ullings was sentenced to 14 months in prison with credit for the time she was held in the custody of the Italian government pending her extradition.  She has also been sentenced to pay a $20,000 criminal fine.    

“Today’s guilty plea demonstrates the Antitrust Division’s commitment to bringing those who violate the antitrust laws – wherever located – to justice,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “The Antitrust Division and its partners are committed to rooting out international price-fixing cartels that cheat American consumers and producers.”

“The ultimate loser in price fixing schemes is the American consumer,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office.  “Individuals and companies that feel like they don’t need to follow the rules should understand the FBI and our federal law enforcement partners will pursue anyone who threatens our economy and our citizens.  We are committed to exposing these cases of corruption in the United States and around the world.”

Ullings pleaded guilty to conspiring with others to suppress and eliminate competition by fixing and coordinating certain surcharges, including fuel surcharges, charged to customers located in the United States and elsewhere for air cargo shipments.  These air cargo shipments included heavy equipment, perishable commodities, and consumer goods destined for American consumers and shipped by American producers.  Ullings participated in the conspiracy from at least as early as January 2001 until at least February 2006.  

Including Ullings, a total of 22 airlines and 21 executives have been charged in the Justice Department’s investigation into price fixing in the air transportation industry.  To date, more than $1.8 billion in criminal fines have been imposed and eight executives have been sentenced to serve prison time.

The investigation into the air transportation industry has been conducted by the Antitrust Division, the FBI, the Department of Transportation’s Office of the Inspector General, and the U.S. Postal Service’s Office of the Inspector General. Assistance with the extradition was provided by the Department of Justice Criminal Division’s Office of International Affairs and the U.S. Marshals Service.  Anyone with information concerning price fixing or other anticompetitive conduct is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694 or visit www.justice.gov/atr/contact/newcase.html.

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

A Chicago-area resident was arrested today on a federal grand jury indictment charging him with mail fraud, submitting false claims to the United States for tax refunds, and aggravated identity theft, announced Principle Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. The Jan. 16, 2020, indictment was unsealed following today’s arrest. 

According to the indictment, Wilmer Alexander Garcia Meza allegedly used personal identifying information of third parties—including their names, dates of birth, and identification documents such as foreign passports—to fraudulently obtain Individual Taxpayer Identification Numbers (ITINs) from the Internal Revenue Service (IRS). An ITIN is a tax processing number issued by the IRS to individuals who do not have, and are not eligible to obtain, a social security number. The indictment further alleges that from 2013 through 2017, Garcia used these ITINs to file fraudulent tax returns in the names of the third parties to claim thousands in fraudulent refunds.  Garcia also allegedly used the identification documents to cash the fraudulently obtained refund checks.   

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

If convicted, Garcia faces a maximum sentence of 20 years in prison for each mail fraud count, five years in prison for each false claim count, and a mandatory minimum sentence of two years in prison for aggravated identity theft. He also faces a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, Homeland Security Investigations, and the U.S. Postal Inspection Service, who are investigating the case, and Trial Attorneys Thomas Flynn and Michael Landman of the Tax Division, who are prosecuting this case.

The Department of Justice today joined the Federal Law Enforcement Training Centers (FLETC) and federal and local law enforcement officials at a roundtable to discuss the challenges posed by human traffickers. The meeting was held following the launch of FLETC’s Human Trafficking Awareness Training last week.

Bill Woolf, Senior Advisor for Human Trafficking in the Department of Justice’s Office of Justice Programs (OJP), participated in the event along with Tania Groover, Assistant U.S. Attorney and Human Trafficking Coordinator for the Southern District of Georgia, and Kai Munshi, FLETC’s Chief of Security and Professional Responsibility.

“Human trafficking is a sophisticated and obscenely profitable global enterprise, and combating it demands the full coordination of law enforcement agencies at all levels,” said OJP’s Woolf. “The Department of Justice is very pleased and proud to lend its support to the brave men and women here in southeastern Georgia — and throughout the country — who pursue trafficking perpetrators and bring aid to trafficking victims.”

The roundtable convened law enforcement leaders from Glynn County and the City of Brunswick, as well as officials from the enforcement units of the Department of Justice and the Department of Homeland Security. They and their counterparts from across the nation are among the first to take part in FLETC’s human trafficking training program. The training was piloted in May and is now part of the permanent training catalog.

“Human trafficking is modern-day slavery, subjecting individuals to involuntary servitude for the profit of others,” said U.S. Attorney Bobby L. Christine of the Southern District of Georgia. “Building awareness of these fast-growing criminal enterprises will help in the fight to eradicate human trafficking, and our office will vigorously prosecute those who would illegally exploit victims of this despicable trade.”

“Educating our first responders about human trafficking is a shared responsibility, and FLETC is committed to doing its part,” said FLETC Director Thomas J. Walters.

Woolf and Munshi also took part in an event organized by the Georgia Human Trafficking Initiative titled “Prisoners of Darkness.” The program brought together about 400 advocates and concerned citizens from the Golden Isles region to raise awareness of human trafficking. Prosecutions led by the Southern District of Georgia’s Human Trafficking Task Force, spearheaded by the U.S. Attorney’s Office, have freed at least 39 human trafficking victims.

In November 2019, Department of Justice officials, including Principal Deputy Associate Attorney General Claire Murray and OJP Principal Deputy Assistant Attorney General Katharine T. Sullivan, joined Georgia First Lady Marty Kemp in announcing $4.3 million in grants to help officials in Georgia investigate and prosecute human traffickers and serve trafficking survivors. The Department of Justice, through OJP, awarded more than $100 million in fiscal year 2019 grants to agencies and organizations across the United States to combat human trafficking and provide vital services to victims. More funding is available this year, including up to $13.5 million to provide housing for human trafficking survivors.

About the Office of Justice Programs:

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

About the Federal Law Enforcement Training Centers:

FLETC trains the majority of federal law enforcement officers and agents in the United States. In addition to providing training for over 90 federal partner organizations, FLETC provides training to state, local, tribal and international police in advanced programs. FLETC graduates approximately 70,000 students annually and is the largest law enforcement training organization in the country. To learn more about FLETC, visit www.fletc.gov.

Today, Attorney General William P. Barr announced the establishment of the Presidential Commission on Law Enforcement and the Administration of Justice. On Oct. 28, 2019, President Donald J. Trump signed Executive Order No. 13896, authorizing and designating the Attorney General to create such a Commission that would explore modern issues affecting law enforcement that most impact the ability of American policing to reduce crime.

“There is no more noble and important profession than law enforcement. A free and safe society requires a trusted and capable police force to safeguard our rights to life and liberty,” said Attorney General William P. Barr. “But as criminal threats and social conditions have changed the responsibilities and roles of police officers, there is a need for a modern study of how law enforcement can best protect and serve American communities. This is why the President instructed me to establish this critical Commission, whose members truly reflect the best there is in law enforcement. Together, we will examine, discuss, and debate how justice is administered in the United States and uncover opportunities for progress, improvement, and innovation.”

The Executive Order instructs the Commission to conduct its study by focusing on the law enforcement officers who are tasked with reducing crime on a daily basis. It also directs the Commission to research “important current issues facing law enforcement and the criminal justice system,” and recommends a variety of subjects for study, such as, but not limited to:

• The challenges to law enforcement associated with mental illness, homelessness, substance abuse, and other social factors that influence crime and strain criminal justice resources;
• The recruitment, hiring, training, and retention of law enforcement officers, including in rural and tribal communities;
• Refusals by State and local prosecutors to enforce laws or prosecute categories of crimes;
• The need to promote public confidence and respect for the law and law enforcement officers; and
• The effects of technological innovations on law enforcement and the criminal justice system, including the challenges and opportunities presented by such innovations.

The Commission will principally conduct its study through a series of hearings, panel presentations, field visits, and other public meetings. At these events, the Commission will hear from subject matter experts, public officials, private citizens, and other relevant stakeholders and institutions who can provide valuable insight into these issues.

The Commissioners, appointed by the Attorney General and announced today, are urban police chiefs, state prosecutors, county sheriffs, members of rural law enforcement, federal agents, U.S. Attorneys, and a state attorney general. In addition to their diverse experiences and backgrounds, each member brings to the Commission an expertise in formulating and shaping law enforcement policy and leading police departments and law enforcement organizations.

Commissioners on the Presidential Commission on Law Enforcement and the Administration of Justice include:

• Chair: Phil Keith, Director, Community Oriented Policing Services
• Vice-Chair: Katharine Sullivan, Principal Deputy Assistant Attorney General, Office of Justice Programs
• David Bowdich, Deputy Director, Federal Bureau of Investigation
• Donald Washington, Director, United States Marshals Services
• Regina Lombardo, Acting Director, Bureau of Alcohol, Tobacco, Firearms & Explosives
• Erica Macdonald, United States Attorney, District Of Minnesota
• D. Christopher Evans, Chief of Operations, Drug Enforcement Administration
• James Clemmons, Sheriff, Richmond County, North Carolina
• Frederick Frazier, City Council, McKinney, Texas/ Police Officer, Dallas Police Department
• Robert Gualtieri, Sheriff, Pinellas County, Florida
• Gina Hawkins, Chief of Police, Fayetteville, North Carolina
• Ashley Moody, Florida Attorney General
• Nancy Parr, Commonwealth’s Attorney, Chesapeake, Virginia
• Craig Price, South Dakota Secretary of Public Safety
• Gordon Ramsay, Chief of Police, Wichita, Kansas
• David B. Rausch, Director, Tennessee Bureau of Investigation
• John Samaniego, Sheriff, Shelby County, Alabama
• James Smallwood, Police Officer, Nashville Metropolitan Police Department

The Commission will meet monthly for the next year and then report its findings to the Attorney General, who will submit a final report to the President.

Propex Derivatives Pty Ltd (Propex), a Sydney, Australia-based proprietary trading firm, has entered into a resolution with the Department of Justice to resolve criminal charges related to a spoofing scheme involving thousands of instances of unlawful trading activity in U.S. commodities markets by a former Propex trader, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Emmerson Buie Jr. of the FBI’s Chicago Field Office.

Propex entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the Northern District of Illinois charging the company with one count of spoofing.  Spoofing is the illegal practice of bidding or offering (i.e., placing an order to buy or sell) with the intent to cancel the bid or offer before execution.  Under the terms of the DPA, Propex agreed to pay $1 million that is comprised of a criminal monetary penalty ($462,271), criminal disgorgement ($73,429), and victim compensation ($464,300) with the criminal monetary penalty credited for any payments made to the Commodity Futures Trading Commission (CFTC).

Propex also agreed to, among other things, conduct appropriate reviews of its internal controls, policies and procedures, and to modify its compliance program, where necessary and appropriate, to ensure it is designed to effectively detect and deter violations of the Commodity Exchange Act and commodities fraud statute.

Propex admitted as part of the DPA, that from approximately July 2012 until March 2016, a former Propex trader, Jiongsheng (Jim) Zhao, engaged in a trading strategy that involved placing thousands of large-volume orders to buy and sell E-mini S&P 500 futures contracts on the Chicago Mercantile Exchange (CME) that Zhao intended to cancel before execution (the Spoof Orders).  On Dec. 26, 2018, Zhao pleaded guilty to one count of spoofing.  As part of his plea, Zhao admitted that his trading strategy was intended to inject materially false and misleading liquidity and price information into the E-mini S&P 500 futures contracts market by placing the Spoof Orders in order to deceive other market participants about the existence of supply and demand.  The Spoof Orders were designed to artificially move the price of E-mini S&P 500 futures contracts in a direction that was favorable to Zhao, and to the detriment of other market participants.  Zhao’s sentencing is scheduled for Feb. 4, 2020, before U.S. District Judge John J. Tharp Jr. of the Northern District of Illinois.

A number of relevant considerations contributed to the department’s criminal resolution with Propex, including the company’s cooperation with the United States and Propex’s remedial efforts.  In addition, the department considered the fact that in May 2014 Zhao’s trading was flagged for Propex senior management, yet he continued placing Spoof Orders through March 2016.  Further, Zhao made false and misleading statements to the CME during its investigation into Zhao’s trading activity.  In March 2018, Propex undertook a significant enhancement of its compliance program and internal controls after engaging an independent compliance consulting firm to conduct an assessment of the adequacy and effectiveness of Propex’s compliance program.  As part of that enhancement, Propex increased the resources dedicated to compliance and contracted with a third-party vendor to provide automated trade surveillance, including surveillance for manipulative and deceptive trading such as spoofing.  The department determined that the criminal monetary penalty of $462,271 imposed as part of the DPA is appropriate given the facts and circumstances of this case and given Propex’s inability to pay an amount within the range calculated under the sentencing guidelines because it would threaten the continued viability of Propex and impair its ability to make restitution to victims.  As part of the agreement, the department has filed an unopposed motion, which is subject to approval by the Court, to defer for the term of the DPA any prosecution and trial of the criminal information filed against Propex.

The CFTC announced today a separate settlement with Propex in connection with a related, parallel proceeding.  Under the terms of that resolution with the CFTC, Propex agreed to pay $1 million, which includes a civil monetary penalty of $462,271, as well as restitution and disgorgement that will be credited for any such payments made to the department.  In addition, the CFTC order imposes upon Propex other remedial and cooperation obligations in connection with any CFTC investigation pertaining to the underlying conduct.

The FBI’s Chicago Field Office investigated this case.  Trial Attorney Matthew F. Sullivan and Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section prosecuted the case, which is part of the Fraud Section’s commodities enforcement program.  The Australian Government's Attorney-General’s Department, the Australian Federal Police and the Criminal Division’s Office of International Affairs provided significant assistance in connection with the arrest and extradition of Zhao.  The CFTC’s Division of Enforcement and the Australian Securities and Investments Commission also provided substantial assistance in this case.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website at https://www.justice.gov/criminal-vns/case/propex-derivatives-dpa or call (888) 549-3945.

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.

Detloff Marketing and Asset Management Inc. (Detloff Marketing), a real estate company based in Hopkins, Minnesota; its owner, Jeffrey J. Detloff; and its accountant, Lori K. Detloff, were sentenced today in the U.S. District Court in St. Paul, Minnesota, for their participation in a long-running fraudulent bidding and kickback scheme in connection with foreclosed properties, the Department of Justice announced.

Jeffrey Detloff was sentenced to 16 months’ imprisonment and two years of supervised release. Lori Detloff was sentenced to seven months’ imprisonment and one year of supervised release. Detloff Marketing was sentenced to a pay a $593,000 criminal fine. The defendants were also sentenced to pay full restitution to the victims of the scheme.

“Today’s sentences reflect the significant harm caused by the defendants’ years long scheme that lined their pockets by defrauding lenders and undermining competition,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. “The Antitrust Division and its partners are committed to rooting out anticompetitive conduct, whatever its form, and holding companies and executives accountable.”

“The defendants created a scheme to squeeze as much money as they could from these properties with no regard for the victim,” said FBI Special Agent in Charge Jill Sanborn of the Minneapolis Division. “These scams victimize a large number of people and the FBI along with our law enforcement partners will continue to work these schemes and hold accountable those responsible for defrauding the system.”

According to court documents, from September 2007 and continuing until June 2015, Jeffrey Detloff, of Minnetonka, Minnesota, conspired to defraud mortgage lenders and guarantors who had hired Detloff, a realtor, to oversee maintenance and repairs on foreclosed homes in the Minneapolis-St. Paul area. Jeffrey Detloff steered maintenance and repair contracts to contractors who would pay a kickback to Detloff Marketing. Unbeknownst to his customers, Jeffrey Detloff and Detloff Marketing included the kickbacks within bids and invoices sent to the lender or guarantor for reimbursement on maintenance and repairs. Lori Detloff, also of Minnetonka, Minnesota, was an accountant responsible for ensuring the kickbacks were paid by contractors to Detloff Marketing. In all, Detloff Marketing received over $291,505 in kickbacks.  

Detloff Marketing and Jeffery Detloff pleaded guilty to Count 1 of the Indictment, which charged a conspiracy to commit mail and wire fraud affecting a financial institution.  Lori Detloff pleaded guilty to aiding and abetting the principal offense described in Count 4 of the indictment, mail fraud affecting a financial institution.  As part of their plea agreements, the Antitrust Division agreed to move to dismiss the remaining counts against Detloff Marketing, Jeffery Detloff, and Lori Detloff upon sentencing. 

The underlying investigation of housing repair contracts in the Minneapolis area is being conducted by the Antitrust Division’s Chicago Office and the FBI’s Minneapolis Division. Anyone with information on customer allocation, bid rigging, price fixing, or other anticompetitive conduct related to the real estate industry in Minnesota should contact the Antitrust Division’s Chicago Office at 312-984-7200 or visit www.justice.gov/atr/contact/newcase.html.

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, the U.S. Environmental Protection Agency (EPA) and the state of Colorado today announced a settlement with Denver-based K.P. Kauffman Company Inc. (KPK) resolving alleged violations of the federal Clean Air Act and Colorado air quality regulations. The settlement, set forth in a consent decree lodged with the U.S. District Court for the District of Colorado, requires KPK to implement pollution control measures at 67 well production facilities – for a total estimated expenditure of $2.5 million. The company will also pay a $1 million civil penalty.

Today’s settlement resolves allegations made in an Oct. 5, 2018, complaint that KPK violated requirements to minimize volatile organic compound (VOC) emissions from its oil and natural gas production operations in the Denver-Julesburg Basin. VOCs are a key component in the formation of ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.

The well production facilities covered by this settlement are in an area that does not meet National Ambient Air Quality Standards established under the Clean Air Act for ground-level ozone: the Denver Metro/Northern Front Range ozone nonattainment area. Today’s action will contribute to the improvement of air quality in communities across the Front Range by reducing the emissions of VOCs that lead to the formation of ground-level ozone.

“Oil and gas production fuels our economy, but it must be done responsibly,” said Jeffrey Bossert Clark, Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “We will continue to take action where operators fail to comply with our nation’s clean air laws.”

“This is the fourth joint settlement EPA has completed with the State of Colorado to secure compliance and reduce emissions from storage tanks at oil and gas operations,” said EPA Regional Administrator Gregory Sopkin. “The EPA continues to enforce the Clean Air Act, and our partnership with the State continues to deliver cleaner, healthier air for Colorado’s communities.” 

This settlement covers 67 KPK oil and gas production facilities in Colorado’s Denver-Julesburg Basin. As part of the agreement, KPK will implement measures to improve operation and maintenance practices and ensure the vapor control systems on its storage tanks are adequately designed and sized. These improvements, including monthly or quarterly inspections using infrared cameras and the installation of pressure monitors to detect and respond to excess emissions, are expected to reduce VOC emissions from KPK’s operations by approximately 424 tons per year.

KPK will also implement three environmental mitigation projects to further reduce VOC emissions. First, KPK will install rod lifts at 12 oil and gas wells to reduce or eliminate the need to unload the well – a procedure used to increase well production during which emissions are vented to the atmosphere. Second, KPK will use a Boreal Laser to scan for methane emissions at all well production facilities covered by the consent decree, and if necessary, will follow up with corrective actions to address the emissions. Third, KPK will implement operation and maintenance requirements, including increased inspections, at four production facilities not covered by air pollution regulations due to their small size. KPK estimates that these mitigation projects will reduce VOC emissions by an additional 131 tons per year.

The settlement also requires KPK to pay the United States and the state of Colorado a $1 million civil penalty, split evenly between the governments.

Today’s action is based on inspections of KPK operations conducted from 2013 to 2018 by EPA and the Colorado Department of Public Health and Environment, which found VOC emissions from many of KPK’s storage tanks. Through these inspections and information requests, EPA and the state of Colorado identified alleged violations of Colorado’s Regulation Number 7, including undersized vapor control systems and inadequate operation and maintenance practices. These alleged violations include federally enforceable requirements of Colorado’s State Implementation Plan to improve air quality in the Denver Metro/Northern Front Range non-attainment area.

This settlement represents the latest in a series of EPA and state actions to secure compliance and reduce emissions from oil and gas sources in the nonattainment area, including recent settlements with Noble Energy Inc. (2015), PDC Energy Inc. (2017), and HighPoint Operating Co. (2019). With today’s action, a total of 3,141 well production facilities in the area are now subject to compliance requirements mandated by joint federal/state consent decrees. In addition, when combined with state-issued compliance orders, 93 percent of production facilities with condensate storage tanks in the Denver ozone nonattainment area are currently subject to enhanced design or maintenance requirements, or both.

The consent decree, lodged in the U.S. District Court for the District of Colorado, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at: https://www.justice.gov/enrd/consent-decrees.

For more information about the settlement, visit https://www.epa.gov/enforcement/kp-kauffman-company-settlement.

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 issued the following statement:

Today, we honor the life and legacy of Dr. Martin Luther King, Jr. “Injustice anywhere is a threat to justice everywhere,” Dr. King wrote in his famous letter while confined to a narrow cell in the Birmingham city jail. In the face of grave intolerance, Dr. King exemplified great moral and physical courage, playing a seminal role in the fight for civil rights and leading our nation to a better destiny. As the Department of Justice celebrates its sesquicentennial year, let us be motivated by the example of Dr. King, always seeking and striving for the fair and impartial administration of justice for all Americans. 

Today, U.S. Attorney General William P. Barr concluded his second trip to Mexico City. The Attorney General participated in high-level meetings regarding joint counter-narcotic efforts as well as efforts to combat transnational criminal organizations (TCOs) and the trafficking of arms and drugs.

The Attorney General reiterated the United States’ commitment to protecting U.S. and Mexican citizens and leaders from both countries reaffirmed their commitment to bilateral law enforcement cooperation. 

To that end, leaders from both countries agreed to a joint meeting in February between key U.S. Attorneys' offices and their Mexican counterparts. 

Together with U.S. Ambassador Christopher Landau, the Attorney General met with Mexico’s Attorney General Alejandro Gertz, Mexico’s Secretary of Foreign Relations, Marcelo Ebrard Casaubon, Secretary of Public Security and Citizen Protection, Alfonso Durazo Montaño, Defense Secretary General Luis Crescencio Sandoval, Navy Secretary Admiral José Rafael Ojeda Duran, and Security Undersecretrary Ricardo Mejía Berdeja.

The Department of Justice announced today that Thong Cao and his wife, Mai Cao, will be obligated to pay $160,000 in damages and civil penalties to resolve a Fair Housing Act lawsuit alleging that Thong Cao sexually harassed numerous female tenants since at least 2009 at residential properties he owned or operated in Wichita, Kansas. Mai Cao is named as a defendant in this lawsuit because she owned or co-owned certain rental properties at which harassment took place.

Under the consent order in United States of America v. Thong Cao, et al., which was entered today by the U.S. District Court for the District of Kansas, defendants are required to pay a total of $160,000, which includes $155,000 in monetary damages to eleven former tenants who were harmed as a result of the sexual harassment, and a $5,000 civil penalty. The consent order also bars the defendants from participating in the rental or management of residential properties in the future. 

“Sexual harassment of women in their homes is indecent, destructive, and illegal,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The Fair Housing Act protects the right of women and their families to live in peace and security and without the fear that deviant people will intimidate and bully them for sexual favors. This department will continue tirelessly to pursue landlords and others who abuse their authority by preying upon vulnerable women.” 

“Access to fair housing is every person’s right,” said U.S. Attorney Stephen R. McAllister for the District of Kansas. “Landlords, property managers and their employees are legally prohibited from making sexual favors a condition of obtaining or maintaining a place to live.”

The department’s lawsuit, filed in 2017, arose from two complaints that former tenants filed with the U.S. Department of Housing and Urban Development (HUD).  The lawsuit alleged that Thong Cao sexually harassed multiple female residents at the rental properties from at least 2009 to 2014. According to the complaint, Thong Cao engaged in harassment that included, among other things, making unwelcome sexual advances and comments, engaging in unwanted sexual touching, and terminating the tenancies of women who refused to engage in sexual conduct with him.

In October 2017, the Justice Department launched a new initiative to combat sexual harassment in housing. In April 2018, the Department of Justice announced the nationwide rollout, including three major components:  an outreach toolkit to leverage the department’s nationwide network of U.S. Attorney’s Offices, a public awareness campaign, including the launch of a national Public Service Announcement, and a new joint Task Force with HUD to combat sexual harassment in housing.

Since launching the initiative, the Department of Justice has filed 13 new lawsuits alleging a pattern or practice of sexual harassment in housing. The Justice Department has filed or settled 18 sexual harassment cases since January 2017, and has recovered over $2.7 million for victims of sexual harassment in housing.

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp/online-complaint.

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.