District Not Recorded

Two former owners and an employee of an ambulance services provider headquartered in Guam pleaded guilty yesterday for their roles in a health care fraud and money laundering scheme that resulted in a loss to the United States of approximately $10.8 million.  This is one of the largest single Medicare ambulance fraud cases prosecuted nationwide.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Shawn N. Anderson of the Districts of Guam and the Northern Mariana Islands, Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office, Special Agent in Charge Justin Campbell of IRS Criminal Investigation’s (IRS-CI) Seattle Field Office and Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.

Clifford P. Shoemake, 63, of Guam, Casey C. Conner, 60, of Saipan, and Nicholas A. Shoemake, 31, of Guam, the former owners and an employee, respectively, of Guam Medical Transport (GMT), pleaded guilty before U.S. District Judge Frances Tydingco-Gatewood of the District of Guam, to one count of conspiracy to commit health care fraud and one count of conspiracy to engage in monetary transactions with the proceeds of specified unlawful activity.  The defendants are scheduled to be sentenced on Jan. 29, 2020.

Medicare and TRICARE are federal health benefit programs, which, under certain conditions, reimburse providers for medically necessary, non-emergency, scheduled ambulance transportation to and from dialysis treatments, provided to beneficiaries with end stage renal disease (ESRD).  Ambulance services are medically necessary when provided to such beneficiaries who cannot be transported by any other means without endangering their health, or were bed confined before, during and after the transportation.

According to their admissions at the plea hearing, from approximately March 11, 2010, to approximately March 21, 2014, the defendants engaged in a conspiracy to defraud Medicare and TRICARE by submitting claims for reimbursement for medically unnecessary ambulance services that GMT provided to patients with ESRD.  The defendants admitted they were aware that GMT was transporting patients who did not qualify for ambulance transportation under applicable Medicare and TRICARE regulations and guidelines, with which they had failed to familiarize themselves.  Specifically, the defendants admitted they were aware that many of GMT’s patients were not bed-confined, and did not have acute medical conditions that would otherwise qualify them for ambulance transportation.  As part of the scheme, the defendants directed GMT employees to remove from internal documents references to GMT patients’ ability to walk because they knew that Medicare and TRICARE would not provide reimbursement for the patients.  The defendants further admitted they were aware of, but failed to address, concerns about GMT’s Medicare and TRICARE billing practices raised by other GMT employees.  The conspiracy resulted in improper payments to GMT of approximately $10.8 million, the defendants admitted.

The defendants further admitted to conspiring to engage in money transactions involving the proceeds of their health care fraud scheme.  Specifically, they admitted that they used the proceeds of their health care fraud scheme to pay for personal expenses, such as vacations, personal income taxes, a personal residence and other items.  They then caused these expenses to be falsely categorized as business expenses of GMT, thereby improperly reducing GMT’s taxable income and GMT’s corresponding tax liability, they admitted.

To date, five former GMT owners and employees have pleaded guilty to their roles in defrauding Medicare and TRICARE in this scheme.  One additional former employee pleaded guilty to obstructing justice by falsifying materials that GMT prepared in response to an HHS subpoena that was served on GMT in approximately September 2012.

The FBI, IRS-CI and HHS-OIG investigated the case.  Senior Litigation Counsel John A. Michelich and Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Marivic P. David of the Districts of Guam and the Northern Mariana Islands prosecuted the case.

The Office for Victims of Crime (OVC), a component of the Department’s Office of Justice Programs (OJP), has released awards totaling more than $2.3 billion to state victim assistance and compensation programs, funding thousands of local victim assistance programs across the country and providing millions in compensation to victims of crime.

OVC’s flagship formula grant program is supported by the Crime Victims Fund (the Fund), which was established under The Victims of Crime Act (VOCA). The Fund supports a broad array of programs and services that focus on helping victims in the immediate aftermath of crime and continuing to support them as they rebuild their lives. In FY18 alone, VOCA grants served over 6.3 million victims (a 24 percent increase over FY17) and paid more than $400 million in compensation claims. The Fund is financed by fines and penalties paid by convicted federal offenders and does not include tax dollars.

“Building on the historic amount of victim assistance and victim compensation funding awarded last year, these new awards have the potential to alter the landscape of the victims’ field, putting services and support within reach of every crime victim in America,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General of the Office of Justice Programs. “Backed by Attorney General William Barr, whose commitment to crime victims is second to none, we are proud to make these resources available to help meet the emotional, psychological and financial needs that victims face in the aftermath of crime.”

The vast majority of the over $2.3 billion in victim assistance funding goes to approximately 6,000 local direct service programs, including children’s advocacy centers, domestic violence shelters, rape crisis centers, human trafficking and elder abuse programs, civil legal services, crime victims’ rights enforcement, as well as victim assistance positions in prosecutors’ offices and law enforcement departments.

State victim compensation programs will receive over $136 million to supplement the state funds that offset victims’ financial burdens resulting from crime. This compensation is often extremely vital to victims who face enormous financial setbacks from medical fees, lost income, dependent care, funeral expenses, and other costs.

“The services made available by this funding represent a lifeline for tens of thousands of survivors each month, many of whom otherwise would have no place to turn in a moment of profound crisis,” said Darlene Hutchinson, Director of OJP’s Office for Victims of Crime. “These awards will help service providers, as well as law enforcement agencies and prosecutor offices respond to the many emotional and material challenges that crime victims in our country face every day.”

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 justice and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov. For a full database of OVC awardees, visit: https://www.ovc.gov/grants/grant_award_search.html.

The Department of Justice announced today that hospital entities Sanford Health, Sanford Medical Center, and Sanford Clinic (collectively, Sanford), of Sioux Falls, South Dakota, have agreed to pay $20.25 million to resolve False Claims Act allegations that they knowingly submitted false claims to federal healthcare programs resulting from violations of the Anti-Kickback Statute and medically unnecessary spinal surgeries.  The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid, and other federally-funded programs. 

“Kickbacks can compromise a physician’s medical judgment, result in unnecessary procedures, and increase healthcare costs for everyone,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “We will continue to hold healthcare providers accountable when they violate the rules intended to safeguard the integrity of federal healthcare programs and the welfare of their beneficiaries.”

The settlement announced today resolves allegations that Sanford knew that one of its top neurosurgeons was improperly receiving kickbacks from his use of implantable devices distributed by his physician-owned distributorship (POD).  Sanford allegedly received warnings from the neurosurgeon’s physician colleagues and others about the alleged kickback scheme and was aware of the heightened compliance risks associated with PODs.  In addition, the neurosurgeon’s colleagues and others repeatedly warned Sanford that the neurosurgeon was performing medically unnecessary procedures involving the devices in which he had a substantial financial interest.  The United States alleged that, despite these repeated warnings, Sanford continued to employ the neurosurgeon, continued to allow him to profit from the devices he used in surgeries performed at Sanford, and continued to submit claims to federal healthcare programs for these surgeries, including procedures that were medically unnecessary. 

“Kickback schemes and other improper financial incentives create inherent conflicts of interest and warp the medical decision-making process,” said U.S. Attorney Ron Parsons for the District of South Dakota.  “This office will continue to aggressively pursue anyone who colludes to violate federal law and compromise the integrity of our healthcare system.”

Contemporaneous with the civil settlement, Sanford entered into a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services Office of Inspector General.  The CIA requires, among other things, that Sanford maintain a compliance program, implement a risk assessment program, and hire an Independent Review Organization to review Medicare and Medicaid claims at Sanford Medical Center.  It also increases individual accountability by requiring compliance-related certifications from Sanford Medical Center’s board of directors and key executives.

“More than six years ago the Department of Health and Human Services Office of the Inspector General warned in a fraud alert that PODs were inherently suspect under the Anti-Kickback Statute.  Unfortunately, these distributors remain questionable,” said Curt L. Muller, Special Agent in Charge, Office of Inspector General at the U.S. Department of Health and Human Services (HHS-OIG).  “Patients in government healthcare programs rightly expect that surgeries are medically indicated, not performed to increase provider profits.”

The settlement resolves allegations originally brought in a lawsuit filed by Drs. Carl Dustin Bechtold and Bryan Wellman, surgeons at Sanford, under the whistleblower, or qui tam, provision of the False Claims Act, which allows private parties to bring suit on behalf of the government and to share in any recovery.  The whistleblowers will receive $3.4 million of the settlement proceeds.

The settlement was the result of an investigation by the Department of Justice’s Civil Division, the U.S. Attorney’s Office for the District of South Dakota, and HHS-OIG.  As part of the settlement, Sanford has agreed to cooperate with the Department of Justice in litigation related to alleged co-defendants, and the hospital system has taken various remedial steps, including terminating the employment of the neurosurgeon in question and prohibiting all Sanford physicians from profiting from their use of medical devices at Sanford. 

The lawsuit is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

Assistant Attorney General Makan Delrahim of the U.S. Department of Justice Antitrust Division, President Alejandra Palacios of the Mexican Federal Economic Competition Commission, Federal Trade Commission Chairman Joseph J. Simons and Canadian Commissioner of Competition Matthew Boswell.

The heads of the antitrust agencies of the United States, Canada and Mexico met today in Ottawa, Canada, to hold an annual dialogue on antitrust enforcement and policy priorities.

The meeting included Assistant Attorney General Makan Delrahim of the U.S. Department of Justice Antitrust Division, Federal Trade Commission Chairman Joseph J. Simons, Canadian Commissioner of Competition Matthew Boswell and President Alejandra Palacios of the Mexican Federal Economic Competition Commission.

The discussions covered a range of topics including enforcement and collaboration involving digital markets, updates on agency developments, international cooperation and challenges to antitrust enforcement faced by each agency.

“International collaboration is a vital part of the work of the Antitrust Division and it is especially important for us to maintain close relationships with our enforcement partners next door,” said Assistant Attorney General Delrahim. “Our shared tradition of cross-border collaboration helps ensure a competitive marketplace for consumers throughout North America.”  

“As the economies of the U.S., Canada, and Mexico become increasingly interconnected, it is vital that we cooperate closely with our Canadian and Mexican counterparts on emerging digital economy competition matters and other issues of mutual concern,” said FTC Chairman Simons. “As today’s meeting demonstrates, our close cooperation can serve as a model for the world.”

The meetings build on the foundations built by the 1995 cooperation agreement between the United States and Canada, the 2000 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico.  The agreements commit the antitrust agencies to cooperate and coordinate with each other to make their antitrust policies and enforcement as consistent and effective as possible.

A Texas woman was sentenced to 37 years in prison for her role as the leader of several robbery crews that traveled across the United States in order to conduct armed home invasions of families of Indian and Asian descent.  Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Steven M. D’Antuono of the FBI’s Detroit Field office made the announcement.

Chaka Castro, 44, of Houston, Texas, was sentenced by U.S. District Court Judge Laurie J. Michelson of the Eastern District of Michigan, who presided over the trial.  After a five-week trial, Castro was convicted of one count of Racketeer Influenced and Corrupt Organizations (RICO) conspiracy, four counts of assault with a dangerous weapon in aid of racketeering and four counts of use of a firearm during and in relation to a crime of violence.

According to evidence presented at trial, from 2011 to 2014, Castro and her robbery crews committed a string of home invasions in Georgia, New York, Ohio, Michigan and Texas.  The leader of the robbery crews was Castro, who would generate lists of robbery targets in various states around the county, specifically families of Asian and Indian ancestry, and then assign crews to carry out the armed robberies of these families within their homes.  Once Castro assigned a crew to a particular area, members of the group would travel to that location, conduct surveillance and execute the robberies.  The crews utilized a particular modus operandi in each of the robberies.  They disguised their appearance with clothing and bandanas so that victims of their robberies would have difficulty identifying them.  They would openly carry and brandish firearms to gain control of the victims and then immediately corral the victims, including children, into one location in the home.  At least one robber would then restrain the victims with duct tape and threats of violence, as another partner would ransack the home in search of cash, jewelry and electronics to steal.  The group organized their trips to involve multiple home invasion robberies over a series of days.

The FBI’s Ann Arbor Office investigated the case with the assistance of federal agencies including U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations, U.S. Secret Service and local law enforcement agencies in Michigan, including Washtenaw County Sherriff’s Office, Ann Arbor Police Department and Canton Police Department; local law enforcement agencies in Ohio, including Beachwood Police Department; local law enforcement agencies in Georgia, including the Cobb County District Attorney’s Office, Cobb County Police Department, Gwinnett County Police Department, Duluth Police Department and Milton Police Department; local law enforcement agencies in New York, including Nassau County Police Department; the Tennessee Highway Patrol and local law enforcement agencies in Texas including Allen Police Department, Coppell Police Department, Flower Mound Police Department, Carrollton Police Department, Lewisville Police Department and Southlake Police Department.

Trial Attorneys Marianne Shelvey and Beth Lipman of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.

 

Colorado is seeking to join the United States, Florida, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota in settling claims relating to the proposed merger of T-Mobile and Sprint, the Department of Justice announced today.  The settlement requires a substantial divestiture package in order to enable a viable facilities-based competitor to enter the market.  Further, the settlement will facilitate the expeditious deployment of multiple high-quality 5G networks for the benefit of American consumers and entrepreneurs.

“We are pleased that Colorado has left the New York and California litigation and is seeking to join our settlement,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “The merger, with the divestitures, will benefit Coloradoans and American consumers nationwide.” 

The Department’s Antitrust Division and now eight co-plaintiff states have sued to block this transaction, and have agreed to settle the lawsuit based on the proposed settlement.  That settlement, if approved by the court, would resolve the Justice Department’s and the co-plaintiff states’ competitive concerns.

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 the divestiture of certain spectrum assets to Dish.  Additionally, T-Mobile and Sprint must make available 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 builds out its own 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.

Attorney General William P. Barr and Housing and Urban Development (HUD) Secretary Ben Carson today issued a Memorandum of Understanding (MOU) between the two agencies that sets prudential guidance on the appropriate use of the False Claims Act (FCA) for violations by Federal Housing Administration (FHA) lenders. 

“This MOU sets forth a robust and collaborative process for deciding when to pursue False Claims Act cases to remedy material and knowing FHA violations,” said Attorney General Barr. “DOJ and HUD will work together to determine when HUD’s administrative remedies are sufficient, or other recourse is appropriate, to address harm to the borrower, the taxpayer, or the government. Importantly, this MOU is the product of the excellent working relationship that has developed between our two agencies in our shared pursuit of greater clarity and fairness.”

“This agreement clearly outlines our FHA mortgage program requirements, so they do not impede or discourage lenders from offering affordable FHA-insured loans to credit-worthy borrowers,” said Secretary Carson. “In taking these steps, we are fulfilling an important element our Housing Finance Reform Plan and making clear to all responsible lenders that FHA’s mortgage program is a program they should participate in. At the same time, HUD will not tolerate irresponsible or fraudulent lenders who defraud borrowers and taxpayers. We are thankful for the excellent relationship we have with our colleagues at the Department of Justice who have worked diligently with us on this effort and share our goal of advancing affordable housing finance while protecting the interests of taxpayers.”   

As the MOU makes clear, HUD expects that FHA requirements will be enforced primarily through HUD’s administrative proceedings, but the MOU specifically addresses how HUD and DOJ, including the U.S. Attorneys’ Offices, will consult with each other regarding use of the FCA in connection with defects on mortgage loans insured by FHA. HUD will utilize the Mortgagee Review Board (MRB), which was created by statute and empowered to take certain actions for non-compliance by FHA lenders, to review and refer FCA claims. The MOU prescribes the standards for when HUD, through the MRB, may refer a matter to DOJ for pursuit of FCA claims, and also sets forth how DOJ and HUD will cooperate during the investigative, litigation, and settlement phases of FCA matters when DOJ receives a referral from a third party, such as in qui tam cases. The MOU also recognizes that application of the FCA requires, among other elements of proof, a material violation of HUD requirements, and DOJ attorneys will solicit HUD’s views to determine whether the elements of the FCA can be established.

This interagency understanding is intended to address concerns that uncertain and unanticipated FCA liability for regulatory defects led to many well-capitalized lenders, including many banks and credit unions statutorily required to help meet the credit needs of the communities in which they do business, to largely withdraw from FHA lending. For decades, FHA has been the hallmark product for the nation’s first time homebuyers. This important segment of the market currently constitutes over 80 percent of FHAs loans. Additionally, a third of FHA loans are made to minority borrowers. This has dramatically shifted FHA’s lender base during the last decade. Today, depository institutions originate less than 14 percent of FHA-insured mortgages, down significantly from approximately 45 percent in 2010.

The MOU is part of a comprehensive plan to bring greater clarity to regulatory expectations within the FHA program, and fulfills a key component of the HUD Housing Finance Reform Plan. In addition to the MOU, FHA is simplifying the certifications that lenders make in connection with the FHA program. The certifications will better track statutory requirements and address materiality and culpability considerations. FHA is also refining its defect taxonomy that it uses to assess the appropriate remedies for identified loan underwriting defects. Together, these new and revised components are intended to make affordable FHA-insured mortgages more accessible to qualified borrowers, reduce risks within the FHA program, and preserve appropriately tailored remedies.

Today, the Department of Justice has announced a pilot program that will allow – for the first time – federally deputized task force officers to use body-worn cameras while serving arrest warrants, or other planned arrest operations, and during the execution of search warrants. The Department of Justice, through its law enforcement agencies, partners with state, local and tribal law enforcement on hundreds of federal task forces throughout the nation. Together, these task forces work to combat violent crime, stem the flow of illegal narcotics and arrest dangerous fugitives. Several of the Department’s partner state and local agencies require their officers to wear body-worn cameras and have requested their officers wear these cameras on federal task forces when the use of force is possible.

“I am pleased that this pilot program takes into account the interests and priorities of all the law enforcement agencies involved in federal task forces,” said Attorney General William P. Barr. “These are some of the most dangerous jobs in law enforcement, and I am grateful for the sacrifice of those who serve. The Department of Justice has no higher priority than ensuring the safety and security of the American people and this pilot program will continue to help us fulfill that mission.”

“ATF’s partnerships with local and state law enforcement are crucial to protecting our communities from those who commit violent crimes involving firearms, explosives, and arson; we continually strive to be the best possible partner,” said Acting Director Regina Lombardo of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). “ATF’s commitment to our partners includes adopting the appropriate use of technology to enhance effectiveness and accountability. ATF, FBI, DEA and the U.S. Marshals have worked closely with the Attorney General and leadership from local law enforcement agencies in the development of a pilot policy for the use of body-worn cameras by local officers participating in federal task forces. I look forward to implementation of this pilot as ATF continues to work with local and state law enforcement to remove the most violent offenders from our communities.”

“The Drug Enforcement Administration values its partnerships with state and local law enforcement agencies throughout the country, and we look forward to continued collaboration,” said Acting Administrator Uttam Dhillon of the Drug Enforcement Administration (DEA). “Task force officers working alongside DEA special agents play a critical role in safeguarding our communities from violent criminals, drug traffickers, and dangerous cartels, and their local knowledge and expertise are vital to making our streets safer.”

“We appreciate the Attorney General’s intentions to improve accountability through DOJ’s new body worn camera pilot policy,” said FBI Director Christopher Wray. “The FBI’s very mission is to protect the American public and uphold the Constitution. We value the continued support of our task force officers as our close collaboration is a vital part of that mission. It’s our hope this program will help us to fulfill our mission and build trust within our communities – a common goal among all of our task force partners.”

 “The U.S. Marshals Service has long-standing and extremely successful partnerships with state and local law enforcement agencies throughout the country. These partnerships result in the arrest of nearly 100,000 violent fugitives each year, bringing immediate relief to communities and protecting the most vulnerable populations,” said United States Marshals Service (USMS) Director Donald Washington. “The USMS remains committed to assisting our task force partners in performance of the critical fugitive apprehension mission that contributes to the safety of our communities.”

The Department of Justice’s pilot program will go into effect in select cities on Nov. 1, 2019. The Department would like to thank ATF, the DEA, the FBI and the USMS, as well as all of the state and local law enforcement leaders that have provided input and guidance.

          United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI), will join the Drug Enforcement Administration (DEA) on October 26th for its 18th National Prescription Drug Take Back Day. The biannual event will be held from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including here in Guam and the NMI. This event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.

          For the first time, DEA will also accept vaping devices, cartridges – in addition to tablets, capsules, patches, and any other medication in solid forms – at any of its drop off locations. It is important to note that DEA cannot accept devices containing lithium-ion batteries. If batteries cannot be removed before drop off, please consult with stores that recycle lithium-ion batteries. DEA is doing all it can to help dispose safely of vaping devices and liquids to get these products off our streets and out of the hands of children.

          Last April, citizens of Guam and the NMI turned in 675 pounds collectively.  Nationwide, Americans turned in 469 tons (940,000 pounds) of prescription drugs at almost 6,300 sites operated by the DEA and more than 5,000 by its state and local law enforcement partners. Overall, in its 17 previous Take Back events, DEA and its partners have taken in over 12 million pounds—more than 5,900 tons of medication from circulation. The disposal service is free and anonymous; no questions asked.

          Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from home medicine cabinets. According to the Centers for Disease Control and Prevention, more than 46 Americans die every day from overdoses involving opioid prescriptions. Some opioid abusers move on from prescription drugs to heroin: Four out of five new heroin users started with painkillers.

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

          The following sites in Guam and the NMI are designated to receive unused prescription drugs and vaping device products on Saturday, October 26, 2019, between 10:00 a.m. and 2:00 p.m.:

 

• Agana Shopping Center (across from Vitamin World)
• K-Mart (Entrance)
• Andersen Air Force Base Exchange (Inside Entrance)
• Naval Base Guam (Navy Exchange Food Court)
• Saipan Commonwealth Health Center (in front of the pharmacy)
• Rota Health Center
• Tinian Health Center
   

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

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

 

Jackson, Miss. – James Lyles, 37, of Mobile, Alabama, was sentenced today by Chief U.S. District Judge Daniel P. Jordan III to serve 195 months in federal prison, followed by five years of supervised release, for possessing with intent to distribute 50 grams or more of methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Mike Hurst and Special Agent in Charge Brad L. Byerley with the Drug Enforcement Administration.  Lyles was also ordered to pay a $1,500 fine.

On January 25, 2018, Mississippi Bureau of Narcotics agents were conducting surveillance on a residence in Jackson, Mississippi, believed to be involved in illegal drug distribution.   While conducting the surveillance, agents observed a Jeep Liberty depart the residence. The vehicle was stopped for a traffic violation.  The driver attempted to drive off, but was unable to do so. As a result, agents approached both sides of the vehicle and ordered the driver and passenger, James Lyles, out of the vehicle. While assisting Lyles out of the passenger side of the vehicle, agents discovered several bags of methamphetamine.  Agents also discovered a .22 caliber pistol in the passenger door where Lyles was sitting.  The methamphetamine was tested and determined to be 197 grams. 

The case is the result of an extensive investigation, dubbed “Drama Queen” targeting illegal methamphetamine distribution in central Mississippi.  The case was investigated by the Mississippi Bureau of Narcotics, Drug Enforcement Administration, Bureau of Alcohol Tobacco Firearms and Explosives, U.S. Marshals Service, Hinds County Sheriff’s Office, Jones County Sheriff’s Office, Jackson Police Department, Pearl Police Department and the Richland Police Department. It was prosecuted by Assistant United States Attorney Chris Wansley.

 

Francis Alvarez, owner of a large freight forwarding company, pleaded guilty to an antitrust charge for her role in a multi-year, nationwide conspiracy to fix prices for international freight forwarding services, the Department of Justice announced today.

According to a one-count felony charge filed in the Southern District of Florida in Miami, Florida, Alvarez and her co-conspirators agreed to fix, raise and maintain prices for freight forwarding services provided in the United States and elsewhere from at least as early as September 2010 until at least August 2014.  Alvarez is president and owner of a Houston-based freight forwarding company.

In addition to admitting to participating in this conspiracy, Alvarez has agreed to pay a criminal fine and cooperate with the ongoing investigation.  The terms of the plea agreement are subject to approval of the court.  Alvarez will be sentenced at a later date.

Alvarez is the third individual to face charges for participating in this conspiracy.  Two of Alvarez’s co-conspirators, Roberto Dip and Jason Handal, were charged and pleaded guilty in November 2018.  In June 2019, Dip and Handal were sentenced to eighteen- and fifteen-month prison terms, respectively, for their roles in the scheme.

“Alvarez and her co-conspirators cheated American consumers shipping goods to Honduras by conspiring to raise prices and pocket the proceeds of their illegal scheme,” said Assistant Attorney General Makan Delrahim of the Justice Department's Antitrust Division.  “The Antitrust Division is committed to working with our law enforcement partners to protect those consumers and restore integrity to this market.”

“This is an example of businesses and their executives manipulating commerce and deceiving the American public for their own financial gain,” said Special Agent in Charge Bryan A. Vorndran of the FBI’s New Orleans Office. “Francis Alvarez and her co-conspirators violated U.S. antitrust laws. Using their knowledge and experience in the freight-forwarding trade, they exploited consumers through an elaborate price-fixing scheme. The FBI, along with our partners at the Department of Justice Antitrust Division, remain committed to upholding the Constitution and protecting consumers against fraud, deceit and illegal activity.”

Freight forwarders arrange for and manage the shipment of goods, including by receiving, packaging and otherwise preparing cargo destined for international ocean shipment.

Alvarez is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million fine for individuals.  The maximum fine for an individual 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.

The ongoing investigation into price fixing in the international freight forwarding industry is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s New Orleans Field Office.  Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.  

A federal grand jury in Brooklyn, New York, indicted a New York City resident yesterday on multiple counts of willfully failing to collect, truthfully account for, and pay over federal 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 the indictment, Steven Heppenheimer owned and operated temporary employment staffing businesses located in Long Island City, New York, including PTP Staffing Associates Inc. (PTP), and PPS Associates Inc. (PPS). As the alleged sole owner of PTP and PPS, Heppenheimer was required to collect, account for, and pay to the IRS federal employment taxes withheld from the wages of PTP and PPS employees. As alleged in the indictment, from 2013 through 2017, Heppenheimer failed to report more than $270,000 in employment taxes to the IRS. 

If convicted, Heppenheimer faces a statutory maximum sentence of five years imprisonment for each count charged. He also faces substantial monetary penalties, supervised release, and restitution.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated this case, and Trial Attorneys Brittney Campbell and Ann Marie Cherry of the Tax Division, who are prosecuting this case.

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

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

The United States today filed a civil complaint against the state of California, several of its officers, the California Air Resources Board, and the Western Climate Initiative Inc., for unlawfully entering a cap and trade agreement with the Canadian Province of Quebec.

“The state of California has veered outside of its proper constitutional lane to enter into an international emissions agreement.  The power to enter into such agreements is reserved to the federal government, which must be able to speak with one voice in the area of U.S. foreign policy,” said Assistant Attorney General Jeffrey Bossert Clark of the Justice Department’s Environment and Natural Resources Division. “California’s unlawful cap-and-trade agreement with Quebec undermines the President’s ability to negotiate competitive agreements with other nations, as the President sees fit.”

The Supreme Court has recognized that the interests of cities, counties and states, and the American people as a whole, requires the federal power in foreign relations to be reposed exclusively in the federal government, keeping it free from local interference.

According to the complaint, filed today in the Eastern District of California, the defendants have pursued or are attempting to pursue an independent foreign policy in the area of greenhouse gas regulation.  The Constitution prohibits states from making treaties or compacts with foreign powers, yet California entered into a complex, integrated cap-and-trade program with the Canadian province of Quebec in 2013 without congressional approval.

California’s agreement with Quebec, which the Western Climate Initiative facilitates (and where the Western Climate Initiative’s board is run by California and Quebec governmental actors), interferes with the proper execution of these federal responsibilities.  Accordingly, today’s complaint asks the court to uphold the exclusive role of the federal government in conducting our foreign policy by declaring the agreement — and related statutes and regulations —unconstitutional, and enjoining their operation.

Deputy Attorney General Jeffrey A. Rosen today announced the appointment of antitrust litigator Ryan A. Shores as Associate Deputy Attorney General and Senior Advisor for Technology Industries. Shores will serve in the Office of the Deputy Attorney General, which oversees all of the Department’s civil and criminal litigating components, including the Antitrust Division. As previously announced, the Department has underway an antitrust review of market-leading online platforms.

“The addition of Associate Deputy Attorney General Ryan A. Shores for this important role reflects the significance of the Department’s review of competitive conditions among online platforms,” said Deputy Attorney General Jeffrey A. Rosen. “His years of high-stakes antitrust and litigation expertise will bring invaluable experience to the review as he works closely with our Antitrust Division.”

Previously, Associate Deputy Attorney General Shores was a partner at an international law firm. Earlier in his career, he served as a law clerk for Chief Justice William H. Rehnquist of the United States Supreme Court. He also clerked for Judge Kenneth F. Ripple of the U.S. Court of Appeals for the Seventh Circuit.

As previously announced, the Department of Justice’s review will “assess the competitive conditions in the online marketplace in an objective and fair-minded manner and … ensure Americans have access to free markets in which companies compete on the merits to provide services that users want.” The Department of Justice will vigorously seek to remedy any violations of law, if any are found.  

The Department of Justice today issued a notice of proposed rulemaking (NPRM) that would restore to the Attorney General the authority vested in him by the bipartisan DNA Fingerprint Act of 2005 to authorize and direct the Department of Homeland Security (DHS) to collect DNA samples from the non-United States persons it detains.  Once implemented, this rule will facilitate federal, state, and local crime reduction and investigation efforts.

“The proposed rule change would help to save lives and bring criminals to justice by restoring the authority of the Attorney General to authorize and direct the collection of DNA from non-United States persons detained at the border and the interior by DHS, with the ultimate goal of reducing victimization of innocent citizens,” said Deputy Attorney General Jeffrey A. Rosen.  “Today’s proposed rule change is a lawful exercise of the Attorney General’s authority, provided by Congress, to collect DNA samples from non-United States persons who are properly detained under the authority of the United States.”

As a result of this rule change, the Department of Justice will ensure that all federal agencies—including DHS—are in full compliance with the bipartisan DNA Fingerprint Act, which was a component of a larger legislative package that passed the House of Representatives by an overwhelming vote of 415 to four and the Senate by Unanimous Consent.  The DNA Fingerprint Act provided the Attorney General with the exclusive authority to draft regulations to authorize and direct any federal agency to “collect DNA samples from individuals who are arrested, facing charges, or convicted or from non-United States persons who are detained under the authority of the United States.” 24 U.S.C. § 40702(a)(1)(A).

On Dec. 10, 2008, the Department of Justice published in the Federal Register a final rule implementing the collection of DNA samples under the DNA Fingerprint Act.  That rule included a provision at 28 C.F.R. § 28.12(b)(4) that permitted DHS to exempt itself from collecting DNA samples from its non-United States citizen detainees by consulting with the Attorney General.  Today’s proposed rule change would eliminate that exception, and restore to the Attorney General the plenary authority to authorize and direct federal agencies’ DNA collection efforts that Congress vested in him on an overwhelmingly bipartisan basis in the DNA Fingerprint Act.

Since Congress’ passage of the bipartisan DNA Fingerprint Act, the Federal Bureau of Investigation (FBI) has built a high-throughput DNA sample processing infrastructure through its Combined DNA Index System (CODIS).  The CODIS database is a vital tool for federal, state, and local law enforcement investigations.  All fifty states, the District of Columbia, Puerto Rico, and federal law enforcement participate in the national sharing of DNA profiles through CODIS.  The FBI also has consistently reduced the operational burden for individual federal agencies to collect DNA through technological enhancements.

In advance of this rule change, the Department of Justice and DHS have been working collaboratively to initiate a pilot program for the collection of DNA from non-U.S. persons detained by DHS.  As with all other DNA samples that federal agencies collect under the authority of the bipartisan DNA Fingerprint Act, the DNA samples that DHS collects from its non-United States person detainees will be entered into the Federal Bureau of Investigation’s Combined DNA Index System (CODIS).  The FBI’s laboratory has the capacity to handle the increased input from DHS, and its capabilities can be scaled up to meet additional capacity.  The FBI will provide DHS with the DNA collection kits, analyze the samples, and ensure that law enforcement agencies use the results in accordance with the FBI’s stringent CODIS privacy requirements.

Today, the Department of Justice announced it has awarded more than $85.3 million to bolster school security — including funding to educate and train students and faculty — and support first responders who arrive on the scene of a school shooting or other violent incident.

“These federal resources will help to prevent school violence and give our students the support they need to learn, grow, and thrive,’ said Attorney General William P. Barr. “By training faculty, students and first responders, and by improving school security measures, we can make schools and their communities safer.”

The 2018 STOP School Violence Act authorized the Department of Justice to create a series of grant award programs under a School Violence Prevention Program. This year, the Department made 215 awards to schools, districts and other jurisdictions throughout the United States.  

The Bureau of Justice Assistance, within the Department’s Office of Justice Programs, and the Office of Community Oriented Policing Services manage the programs and administer the grants, which include funds to:

• Develop school threat assessment teams and pursue technological solutions to improve reporting of suspicious activity in and around schools;
• Implement or improve school safety measures, including coordination with law enforcement, as well as the use of metal detectors, locks, lighting and other deterrent measures;
• Train law enforcement to help deter student violence against others and themselves;
• Improve notification to first responders through implementation of technology that expedites emergency notifications;
• Develop and operate anonymous reporting systems to encourage safe reporting of potential school threats;
• Train school officials to intervene when mentally ill individuals threaten school safety; and
• Provide training and technical assistance to schools and other awardees in helping implement these programs.

More details about these individual award programs, as well as listings of individual 2019 awardees, can be found here. 

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 justice system. More information about OJP and its components can be found at www.ojp.gov.

About the Office of Community Oriented Policing Services:

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 Department of Justice announced today that it has awarded over $273.4 million in grants to improve public safety, serve victims of crime, combat violence against women and support youth programs in American Indian and Alaska Native communities.

“Violent crime and domestic abuse in American Indian and Alaska Native communities remain at unacceptably high levels, and they demand a response that is both clear and comprehensive,” said Attorney General William P. Barr. “We will continue to work closely with our tribal partners to guarantee they have the resources they need to curb violence and bring healing to the victims most profoundly affected by it.”  

President Trump is the first President to sign a proclamation recognizing acts of violence committed against American Indian and Alaska Native people, particularly women and children.

Two-hundred and thirty six grants were awarded to 149 American Indian tribes, Alaska Native villages and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $118 million awarded via CTAS, just over $62.6 million comes from the Office of Justice Programs, about $33.1 million from the Office on Violence Against Women and more than $23.2 million from the Office of Community Oriented Policing Services. A portion of the funding will support tribal youth mentoring and intervention services, help native communities implement requirements of the Sex Offender Registration and Notification Act, and provide training and technical assistance to tribal communities. Another $5.5 million was funded by OJP’s Bureau of Justice Assistance to provide training and technical assistance to CTAS awardees.

The Department also announced awards and other programming totaling $167.2 million in a set-aside program to serve victims of crime. The awards are intended to help tribes develop, expand and improve services to victims by supporting programming and technical assistance. About $25.6 million of these awards were awarded under CTAS and are included in the $118 million detailed above.

CTAS funding helps tribes develop and strengthen their justice systems’ response to crime, while expanding services to meet their communities’ public safety needs. The awards cover 10 purpose areas: public safety and community policing; justice systems planning; alcohol and substance abuse; corrections and correctional alternatives; children’s justice act partnerships; services for victims of crime; violence against women; juvenile justice; violent crime reduction; and tribal youth programs.

The Department also provided $6.1 million to help tribes to comply with federal law on sex offender registration and notification, $1.7 million in separate funding to assist tribal youth and nearly $500,000 to support tribal research on missing and murdered indigenous women and children and other public safety-related topics.

Today’s announcement is part of the Justice Department’s ongoing initiative to increase engagement, coordination and action on public safety in American Indian and Alaska Native communities.

A listing of today’s announced CTAS awards is available at: https://www.justice.gov/tribal/awards. A listing of all other announced tribal awards are available at: https://ojp.gov/newsroom/pressreleases/2019/factsheets/FY19_FINAL_Tribal%20Awards%20Fact%20Sheet.pdf.     

Attorney General Barr announced the public safety funding for Alaska Native villages in a video teleconference with the Alaska Federation of Natives yesterday evening that can be viewed at:

https://www.justice.gov/opa/video/attorney-general-william-p-barr-gives-remarks-through-video-conference-alaska-federation.

A Commerce Township, Michigan, resident pleaded guilty today in Detroit, Michigan to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents, Firas Hajjar owns and operates Your Fantasy Warehouse Inc. (YFW), an internet-only retail business that sells popular-culture shirts, sweaters, and other items. Hajjar provided fraudulent information to his accountant regarding corporate sales’ deposits for YFW, resulting in the filing of a false corporate return for 2012 underreporting YFW’s income. Hajjar also filed a false personal tax return for 2012, failing to report his full income from YFW.

United States District Court Judge Denise Page Hood scheduled sentencing for Jan. 28, 2020.  Hajjar faces a maximum sentence of five years in prison, three years 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 Attorney Mark McDonald of the Tax Division, who is prosecuting the case.

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

The Department of Justice announced today that it has reached a settlement agreement with MUY Brands LLC, a San Antonio, Texas-based owner and operator of approximately 78 Taco Bell restaurant franchises in six states, and a related management company, MUY Consulting Inc. The settlement resolves the Department’s investigation into whether the companies violated the Immigration and Nationality Act (INA) by discriminating against lawful permanent residents because of their citizenship status when verifying their authorization to work in the United States. 

"Employers cannot require that a worker provide more or different documents than necessary to legally prove work authorization based on the worker’s citizenship status or national origin,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division is committed to enforcing the Immigration and Nationality Act and rooting out unlawful discrimination in the employment eligibility verification process to help ensure equal employment opportunities.”

The Department’s investigation concluded that, from at least July 2015 to March 2017, MUY Brands and MUY Consulting required specific work authorization documents from all lawful permanent residents who worked at their Taco Bell restaurants, while not imposing a similar requirement on U.S. citizens. As a result, some lawful permanent residents lost work opportunities, even though they had presented sufficient documentation to prove their authorization to work. Federal law allows all work-authorized individuals, regardless of citizenship status, to choose which valid, legally acceptable documents to present to demonstrate their ability to work in the United States. The anti-discrimination provision of the INA prohibits employers from requesting more or different documents than necessary to prove work authorization based on employees’ citizenship status or national origin.

Under the terms of the agreement, the companies will pay a civil penalty of $175,000, establish a $50,000 backpay fund to pay affected workers, and be subject to departmental monitoring and reporting requirements. Additionally, certain employees will be required to attend training on the requirements of the INA’s anti-discrimination provision. 

The Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation. 

More information on how employers can avoid discrimination in the Form I-9 and E-Verify processes is available here. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email IER@usdoj.gov; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.

Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; or discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.

The U.S. Delegation to the INTERPOL General Assembly.

Wayne H. Salzgaber, director of INTERPOL Washington—the U.S. National Central Bureau—is leading the U.S. Delegation to the 88th INTERPOL General Assembly this week in Santiago, Chile. The General Assembly meets annually and makes all of the major decisions affecting general policy, the resources needed for international cooperation, working methods, finances and programs of activities for INTERPOL.

From October 15th to 18th, the conferees will discuss proposals to advance INTERPOL’s technical and operational support to police worldwide. This year’s gathering of law enforcement officials from around the world will also address current and future organized crime and terrorism threats.

In addition to setting INTERPOL’s agenda and budget, the General Assembly voted yesterday to reappoint Mr. Jürgen Stock INTERPOL Secretary General to a second and final five-year term.

The General Assembly is INTERPOL's supreme governing body and comprises delegates appointed by the governments of member countries.

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

WASHINGTON - El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con MUY Brands LLC, un propietario y operador de aproximadamente 78 franquicias del restaurante Taco Bell en seis estados, con sede en San Antonio, Texas, y una empresa relacionada de gestión empresarial, MUY Consulting Inc. El acuerdo  resuelve la investigación del Departamento sobre posibles contravenciones por parte de las empresas de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a los residentes permanentes legales por motivos de su estatus de ciudadanía cuando verificaron su autorización para trabajar en los Estados Unidos.

“Los empleadores no deben pedir que sus empleados entreguen documentos adicionales o diferentes a lo necesario para comprobar legalmente su autorización para trabajar por motivos del estatus de ciudadanía o de la nacionalidad de origen del trabajador,” dijo el Fiscal General Adjunto Eric Dreiband de la División de Derechos Civiles. “La División de Derechos Civiles se compromete con hacer cumplir la Ley de Inmigración y Nacionalidad, y con erradicar la discriminación ilegal en el proceso de verificación de la elegibilidad para trabajar para asegurar la igualdad de oportunidades de empleo.”

A raíz de la investigación, el Departamento concluyó que entre al menos julio de 2015 y marzo de 2017, MUY Brands y MUY Consulting exigieron documentos específicos de autorización para trabajar a todos los residentes permanentes legales que trabajaban en sus restaurantes Taco Bell, mientras que no impusieron un requisito similar a los ciudadanos estadounidenses. Por consiguiente, algunos residentes permanentes legales perdieron oportunidades de empleo a pesar de haber presentado documentación suficiente para comprobar su autorización para trabajar. Las leyes federales les permiten a todas las personas con autorización para trabajar, independientemente de su estatus de ciudadanía, que elijan cuáles documentos válidos y legalmente aceptables presentarán para demostrar su competencia para trabajar en los Estados Unidos. La disposición antidiscriminatoria de la INA les prohíbe a los empleadores que soliciten más documentos de lo necesario o documentos distintos para comprobar la autorización para trabajar con fundamento en el estatus de ciudadanía o nacionalidad de origen de los empleados.

Según los términos del acuerdo, las empresas pagarán una sanción civil de $175,000, establecerán un fondo de $50,000 para sueldos retroactivos, y estarán sujetas a los requisitos de monitoreo por parte del Departamento así como la entrega de informes. Asimismo, ciertos empleados tendrán que asistir a capacitaciones sobre los requisitos de la disposición antidiscriminatoria de la INA. 

La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) tiene la responsabilidad de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe, entre otras cosas, la discriminación por motivos de estatus de ciudadanía y origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; las prácticas documentales injustas; las represalias; y la intimidación. 

Para mayor información sobre las maneras en que los empleadores pueden evitar la discriminación en el Formulario I-9 y procesos de E-Verify consulte este enlace. Para mayor información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para las personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con discapacidades auditivas); inscríbase en un seminario web gratis; envíe un correo electrónico a IER@usdoj.gov; o visite los sitios web del IER en inglés y en español. Suscríbase a GovDelivery para recibir boletines de la IER.

Los postulantes o empleados que crean que han sido objeto de discriminación por motivos de su ciudadanía, estatus migratorio u nacionalidad de origen en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; o discriminación en el proceso de verificación de la elegibilidad para trabajar (Formulario I-9 y E-Verify) con fundamento en su ciudadanía, estatus migratorio u origen nacional; o represalias, podrán presentar una denuncia o solicitar ayuda comunicándose con la línea directa de la IER para trabajadores.

 The Justice Department today announced that in fiscal year 2019 (FY19), its U.S. Attorneys’ Offices prosecuted the highest number of immigration-related offenses since record keeping began more than 25 years ago. These numbers successfully reverse the trend in previous years of declining prosecutions for felony Illegal Reentry defendants, misdemeanor Improper Entry defendants and felony Alien Smuggling defendants.

“These record-breaking numbers are a testament to the dedication of our U.S. Attorneys’ Offices throughout the nation, especially our Southwest border offices,” said Deputy Attorney General Jeffrey A. Rosen. “In addition to the usual workload of each case the Department prosecutes, this effort was made possible after our U.S. Attorneys’ Offices restored essential partnerships with national, state and local law-enforcement partners.”

The newly announced numbers show the U.S. Attorneys’ Offices charged 25,426 defendants with felony Illegal Reentry (8 U.S.C. §1326) in FY19, an increase of 8.5 percent from FY18.

80,866 defendants were charged with misdemeanor Improper Entry (8 U.S.C. §1325(a)), surpassing the record set just last year by 18.1 percent. 

4,297 defendants were charged with Alien Smuggling (8 U.S.C. §1324), an increase of 15.4 percent from FY18. 

The increased prosecutions are part of the Department of Justice’s commitment to enforcing America’s laws to address the crisis at the border. This announcement comes one week after the Department of Justice announced its Executive Office for Immigration Review completed 275,000 cases in FY19, the second highest number of completed cases in the court’s history.

In commemoration of the tenth anniversary of the enactment of the Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act, the Department of Justice today announced technical assistance resources to fight hate crimes across the country, including development of a new hate crimes training curriculum for law enforcement, and a hate crimes outreach and engagement program for communities entitled ‘United Against Hate: Cultivating Community Partnerships.’

 “Hate crimes are especially reprehensible because of the toll they take on families, communities, and our nation as a whole. Precisely because they are fueled by bias against specific people and groups, they also are a grave affront to America’s foundational principles and ideals,” said Attorney General William P. Barr. “That is why the Department of Justice is committed to using every tool at its disposal to combat crimes motivated by this kind of intolerance. The measures announced at today’s commemoration of the tenth anniversary of the Hate Crimes Prevention Act will strengthen our ability to identify and prosecute those who perpetrate these unconscionable acts of hatred.”

“The tenth anniversary of the Shepard-Byrd Act reminds us of the Act’s continued importance. Today Department of Justice officials, law enforcement, and other Americans have come together to highlight both the substantial efforts we have made to combat, prevent, and prosecute hate crimes, and the critical work still to be done,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.

A year ago this month, in October 2018, the Department’s Hate Crimes Enforcement and Prevention Initiative convened a law enforcement roundtable on hate crimes. The day and a half–long event, highlighted in a forthcoming report, brought law enforcement and other leaders from around the country together with Department of Justice officials to explore successful practices and challenges in identifying, reporting, and tracking hate crimes. At the roundtable, it was announced that technical assistance through the Collaborative Reform Initiative for Technical Assistance Center (CRI-TAC) – a partnership with the International Association of Chiefs of Police and nine leading law enforcement leadership and labor organizations, -- funded through the Office of Community Oriented Policing Services (COPS Office) -- would be extended to help state, local, and tribal law enforcement with hate crimes prosecution and prevention. 

The Department today announced that the COPS office is supporting the development of a new hate crimes curriculum through CRI-TAC. This important training will focus on law enforcement response, investigation, and reporting of hate crimes consistent with the Administration’s guidance.  The course when developed and made available will be focused on increasing the capacity and competency to investigate and accurately report hate crimes, and pursuing the best option for prosecution of perpetrators.

At last year’s roundtable, law enforcement emphasized the single most important tool the federal government could provide would be training to improve investigating and reporting of hate crimes to state, local, and tribal law enforcement.

“The training is directly responsive to the requests from the field that we heard at the Initiative’s Law Enforcement Roundtable, and embodies our philosophy of ‘by the field, for the field,’” said COPS Director Phil Keith.

In addition to the hate crimes training, the Department is also launching a two-phase hate crimes outreach and engagement program. The outreach program “United Against Hate: Cultivating Community Partnerships,” aims to address the underreporting of hate crimes to law enforcement.  In phase two of the outreach program the U.S. Attorney’s Offices will have the opportunity to facilitate trainings across the country, convening a wide array of community groups, such as advocacy organizations, educators, and local leaders (including religious leaders) to discuss the impact of hate crimes and explore strategies to build trust with federal, state, local, and tribal law enforcement.

In recent years, the Department has strengthened its hate crimes prosecution program and increased training of federal, state, and local law enforcement officers to ensure that hate crimes are identified and prosecuted to the fullest extent possible.   Over the past 10 years, the Department of Justice has charged more than 330 defendants with hate crimes offenses, including more than 70 defendants total during FY 2017, 2018, and 2019.  During this three-year time period, the Department has obtained convictions of more than 65 defendants for hate crimes incidents with some cases still pending.

Hate crimes prosecutions are often high profile and their impact is felt nationally and sometimes internationally.  This year, the Department’s hate crimes prosecutors have handled several high-profile investigations and criminal prosecutions, including cases in Charlottesville, VA, Pittsburgh, PA, and Jeffersontown, KY.   

In southern California, after a shooter killed one and wounded three others at the Chabad of Poway Synagogue, and set fire to the Dar-ul-Arqam Mosque in Escondido, the Department secured a 113-count indictment that included numerous hate crimes charges.  And in Dallas, Texas, the Department secured a guilty plea from a man for kidnapping and conspiracy charges for his involvement in a scheme to single out men because of their sexual orientation. The defendant conspired with others to use Grindr, a social media platform, to lure gay men to areas around Dallas for robbery, carjacking, kidnapping, and violent hate crimes.

“The FBI's mission is simple but profound: to uphold the Constitution and protect the American people. It's why battling hate crime is one of the FBI's top priorities,” said FBI Director Christopher Wray. “Hate crime strikes at the very heart of our society, targeting people in our communities based solely on who they are. The FBI will not allow this threat to cast a shadow over our safety and our security. We'll continue to work with our law enforcement partners and use every tool at our disposal to prevent and investigate acts of hate and protect the American people.”

“Prosecuting hate crimes is critical to keeping our community safe. When one member of a group in the community is the victim of a hate crime, all members carry with them a fear that they too may be targeted because of who they are,” said U.S. Attorney for the District of Columbia Jessie K. Liu, Chair of the Attorney General’s Advisory Committee. “The Department of Justice will use every tool at its disposal to protect the people of the United States from these cowardly crimes.”

The Department offers a variety of training and outreach programs to work with local communities and organizations and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits.

“For example, in Fiscal Year 2019, the Community Relations Service (CRS) facilitated 19 Protecting Places of Worship forums and 10 Hate Crime Forums across the United States where law enforcement and other experts shared best practices with community groups working to prevent and respond to hate crimes,” said Gerri Ratliff, CRS Deputy Director. 

More information about the Department’s hate crimes efforts, including facts and statistics, case examples, and a searchable collection of the Department’s resources for law enforcement, community groups, researchers and others, are available at www.justice.gov/hatecrimes. Launched a year ago this month, this website provides a centralized portal for the Department’s hate crimes resources, and has attracted over 200,000 visitors to date. 

The Department of Justice today announced awards of more than $29 million to support public safety efforts in the Northern District of Ohio. The funding from the Office of Justice Programs (OJP), Office on Violence Against Women (OVW), and the Office of Community Oriented Policing Services (COPS) will support violent crime reduction, opioid/substance abuse reduction efforts, victim services, transitional housing for domestic violence victims, law enforcement activities, justice mental health, and juvenile justice.

“The Department of Justice is proud to announce funding for the Northern District of Ohio to further reduce violent crime, train judges and prosecutors, and serve victims of crime,” said Attorney General William P. Barr. “We applaud U.S. Attorney Justin Herdman for his fine work there, and we are confident that his stewardship of the additional resources will yield tangible results in his community.”

“It was an honor to announce the Department’s awards in and beyond Cleveland today, and to meet with those working on the ground to end domestic and sexual violence,” said Laura L. Rogers, Acting Director of the Office on Violence Against Women. “During Domestic Violence Awareness Month, it is heartening to hear about efforts in Cleveland, including the high risk team’s use of innovative strategies to prevent domestic violence homicides. I am delighted to announce funding for specialized courts, prosecutors, law enforcement, and victims services providers who are working around the clock to protect and bring justice for victims.”

“Community safety and justice is a round-the-clock operation in communities across the country, including the Northern District of Ohio,” said Katharine T. Sullivan, Principal Deputy Assistant Attorney General for the Office of Justice Programs. “This is why the Office of Justice Programs is pleased to announce critical grant funding going to the Northern District of Ohio that will support opioid and substance abuse reduction, bolster law enforcement, create specialized courts to handle domestic violence cases, and give over $3 million toward the Sexual Assault Kit Initiative that addresses the growing number of unsubmitted SAKs in law enforcement custody and helps provide resolution for victims when possible.”

OVW Acting Director Rogers made the announcement at the Cuyahoga County Justice Center on Wednesday afternoon along with U.S. Attorney Justin Herdman and Judge Sherrie Miday. Acting Director Rogers also recognized U.S. Attorney Herdman and his work in the Northern District of Ohio. Corresponding with National Domestic Violence Awareness Month, Acting Director Rogers and U.S. Attorney Herdman discussed the Department’s work in bolstering law enforcement and providing services in the District that victims need to find safety, stability, and justice.

“These funds will save lives, whether that is expanding a program that identifies the most dangerous abusers, provides emergency shelter to our most vulnerable victims, allows law enforcement to do a better job tracking and sharing crime data, just to name a few,” U.S. Attorney Justin Herdman said. “These grant awards demonstrate the Justice Department’s commitment to working across the state and country, with jurisdictions large and small, to make our communities safer.”

The awards were made by the three grant-making components of the Department of Justice—OVW, the Office of Community Oriented Policing Services and the Office of Justice Programs.

A full list of COPS awards is available online at https://cops.usdoj.gov/grants. OJP awards, organized under specific grant programs, are available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. For OVW awards, visit https://www.justice.gov/ovw/awards.

About the Office of Community Oriented Policing Services:

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.

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 justice system. More information about OJP and its components can be found at www.ojp.gov.

About the Office on Violence Against Women:

The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

The owner of a Cincinnati-area medical practice pleaded guilty today for illegally distributing opioids.   

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Keith Martin of the Drug Enforcement Administration’s (DEA) Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.

Raymond Noschang, M.D., 59, of Cincinnati, Ohio, pleaded guilty to eight counts of unlawful distribution of oxycodone before U.S. District Judge Susan J. Dlott of the Southern District of Ohio.  Sentencing has not yet been scheduled.

As part of his guilty plea, Noschang admitted that he prescribed controlled substances to patients in amounts and for lengths of time that were outside the scope of legitimate medical practice.  Noschang also admitted that he routinely prescribed controlled substances to patients even though various “red flags” suggested that he should stop writing those prescriptions, change the prescriptions and/or counsel patients accordingly.  Further, Noschang admitted that he prescribed dangerous combinations of drugs known to heighten the risk of overdose and death.

As part of his guilty plea, Noschang admitted that the amount of drugs attributable to his conduct is between 400 and 700 kilograms of converted drug weight.

The DEA, HHS-OIG and the Ohio Board of Pharmacy investigated the case.  Trial Attorneys Tom Tynan, Leslie Garthwaite and Chris Jason of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the ARPO Strike Force.  Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 70 defendants who are collectively responsible for distributing more than 40 million pills.  The Health Care Fraud Unit, in general, maintains 15 strike forces operating in 24 districts, and has charged nearly 4,200  defendants who have collectively billed the Medicare program for more than $15 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.

The Department of Justice announced today that it reached a settlement agreement with Marion County School District 103, aka Woodburn School District, a public school district that serves suburban and rural communities in Marion County, Oregon. The settlement resolves a complaint that the Woodburn School District violated the anti-discrimination provision of the Immigration and Nationality Act (INA) when it refused to hire a work-authorized non-U.S. citizen as a teacher.

“The Department of Justice is committed to removing unlawful discriminatory barriers that deprive workers of opportunities because of their citizenship status or national origin,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend the Woodburn School District for working with the Division to swiftly resolve this matter and prevent future violations.”

The Department’s investigation concluded that the Woodburn School District discriminated against an applicant for a teaching position by refusing to hire him because of his citizenship status even though the District’s hiring committee considered him to be the most qualified applicant. The Department also concluded that the Woodburn School District pre-screened the applicant when it asked for specific documentation to verify the applicant’s citizenship status and work authorization, but did not make similar requests of U.S. citizens. The INA generally prohibits employers from refusing to hire certain work-authorized non-U.S. citizens because of their citizenship status. It also prohibits employers from pre-screening applicants by requesting specific documentation to prove work authorization based on employees’ citizenship status or national origin.

Under the settlement, the Woodburn School District will pay the rejected applicant $5,774.81; pay the maximum civil penalties applicable ($5,543) to the United States; and be subject to departmental monitoring, training, and reporting requirements for a three-year period.

The Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. 

For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email IER@usdoj.gov; or visit IER’s English or Spanish websites.

Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status, or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.

Office on Violence Against Women (OVW) Acting Director Laura L. Rogers today announced awards of more than $16.5 million to support public safety efforts in the Northern District of Texas. Funds will help law enforcement agencies, local cities and counties, campus safety, and victim service providers and domestic violence shelters fight gun, gang, drug and domestic and sexual violence and bring criminals to justice.

“The Department of Justice is providing well-deserved funding to local law enforcement in North Texas to help further advance the critical efforts of fighting violent crime and serving victims of crime and abuse,” said Attorney General William P. Barr. “I’m grateful to U.S. Attorney Erin Nealy Cox for her leadership there and, especially, for her steadfast work with the Department in the prevention of domestic-violence homicides.”

Acting Director Rogers made the announcement at Family Place Inc., a domestic violence shelter in Dallas. Acting Director Rogers also recognized U.S. Attorney for the Northern District of Texas, Erin Nealy Cox, for her work as the Vice Chair of the Advisory Committee to the Attorney General and Chair of the Workgroup on prosecuting gun crimes to stop and reduce domestic violence. Corresponding with National Domestic Violence Awareness Month, Acting Director Rogers and U.S. Attorney Nealy Cox discussed the Department’s work in bolstering law enforcement, providing victim services, and keeping firearms out of the hands of abusers.

“The Department of Justice is proud to make this critical funding available to the Northern District of Texas, making public safety resources available to help law enforcement officers reduce crime and protect the citizens of Texas,” said Acting Director Rogers. “We are also grateful for the hard work  and exceptional leadership of U.S. Attorney Erin Nealy Cox, who represents the Justice Department’s most vital link between Washington and the communities of her district and represents the Attorney General’s priority of ending violent crime—especially violent domestic and sexual violence. We congratulate the award recipients and look forward to seeing the good work that the awards will produce.”

“We’re grateful to all our grantees for their work protecting and empowering victims of domestic abuse,” said U.S. Attorney Nealy Cox. “The Justice Department is proud to stand alongside them in the fight to end domestic violence.”  

The awards were made by the three grant-making components of the Department of Justice—OVW, the Office of Community Oriented Policing Services and the Office of Justice Programs.

A full list of COPS awards is available online at https://cops.usdoj.gov/grants. OJP awards, organized under specific grant programs, are available online at https://ojp.gov/funding/Explore/OJPAwardData.htm. For OVW awards, visit https://www.justice.gov/ovw/awards.

About the Office of Community Oriented Policing Services:

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.

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 justice system. More information about OJP and its components can be found at www.ojp.gov.

About the Office on Violence Against Women:

The Office on Violence Against Women provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

HUNTSVILLE – A joint federal, state, and local law enforcement initiative has resulted in the arrests of 36 individuals on a variety of criminal charges, including drug trafficking, money laundering, using communication facilities to facilitate drug trafficking and various firearms offenses, announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris, FBI Special Agent in Charge Johnnie Sharp, Jr., and United States Postal Inspector in Charge, Houston Division, Adrian Gonzalez.  The majority of the defendants were arrested in north Alabama, however some defendants were arrested in California, Iowa, Virginia and Tennessee. 

“There is no daylight between local, state and federal law enforcement,” Town said.  “These indictments represent the hard work of many of our law enforcement partners, and exemplify our global efforts of taking on the most dangerous criminals menacing our neighborhoods. Our relationships across the board have never been stronger.”

"These arrests are indicative of DEA's commitment to rid our communities of drug trafficking organizations determined to profit on the backs of addiction," said Morris.  "Citizens in Northern Alabama can rest assured that the DEA and our law enforcement partners are determined to ensure these communities remain safe and a great place to live.  The success of this investigation is an outstanding example of our law enforcement community's resolve and determination."
 

"North Alabama is safer today as a result of this operation," Sharp said. "This was an outstanding example of law enforcement partnerships working together to remove dangerous criminals from our neighborhoods."

“The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs or other harmful substances,” Gonzalez said.  “Postal Inspectors will continue to work with our local and federal law enforcement partners to investigate and hold accountable those who misuse the U.S. Mail. Through our joint efforts, we have dismantled a criminal organization that posed a direct threat to various communities in multiple states.”

“We thank our State and Federal partners for their efforts and support in helping rid our community of illegal activity,” Madison County Sheriff Kevin Turner said.  “We value our partnerships and will continually look for opportunities to enhance our ability to protect and serve all of Madison County”.

The arrests made on October 9, 2019, resulted from the combined efforts of local law enforcement agencies across eight counties in Northern Alabama, along with State and Federal law enforcement partners.  Law enforcement agencies participating in the investigation included:  Drug Enforcement Agency; United States Attorney’s Office; Federal Bureau of Investigation; Bureau of Alcohol Tobacco and Firearms; United States Postal Inspection Service; Office of the Attorney General State of Alabama; Alabama Law Enforcement Agency; Morgan County Sheriff’s Department; Lawrence County Sheriff’s Department; Decatur Police Department; Lauderdale County Sheriff’s Department; Colbert County Sheriff’s Department; Franklin County Sheriff’s Department; Russellville Police Department; Marion County Sheriff’s Department; Huntsville Police Department, Madison Police Department, Cullman County Sheriff’s Department, Cullman Police Department, and the Wayne County (Tennessee) Sheriff’s Department.

In the spring of 2018, Special Agents of the DEA, and members of the Morgan County Sheriff’s Office, Lawrence County Sheriff’s Office and ALEA began an investigation involving quantities of high quality methamphetamine being sold in Morgan and Lawrence County. Agents quickly learned that the methamphetamine was being distributed not only in those areas, but also in the surrounding areas as far south as Cullman and as far north as Tennessee, by multiple affiliated individuals.  Agents also learned that the methamphetamine was coming from the San Bernardino area of California. 

During the course of the investigation, over 74 pounds of “ice” methamphetamine, a kilo of cocaine hydrochloride and 46 grams of “crack” cocaine was seized.  Twenty guns were seized, including two assault rifles and a short barrel shotgun.  Some of the guns seized were identified as stolen. Over $123,000 was seized by federal agencies.  This amount does not include amounts of money seized and forfeited by state and local agencies.

DEA, FBI, and USPIS, investigated the case, which Mary Stuart Burrell is prosecuting.

The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

HUNTSVILLE – A joint federal, state, and local law enforcement initiative has resulted in the arrests of 36 individuals on a variety of criminal charges, including drug trafficking, money laundering, using communication facilities to facilitate drug trafficking and various firearms offenses, announced U.S. Attorney Jay E. Town, DEA Assistant Special Agent in Charge Clay Morris, FBI Special Agent in Charge Johnnie Sharp, Jr., and United States Postal Inspector in Charge, Houston Division, Adrian Gonzalez.  The majority of the defendants were arrested in north Alabama, however some defendants were arrested in California, Iowa, Virginia and Tennessee. 

“There is no daylight between local, state and federal law enforcement,” Town said.  “These indictments represent the hard work of many of our law enforcement partners, and exemplify our global efforts of taking on the most dangerous criminals menacing our neighborhoods. Our relationships across the board have never been stronger.”

"These arrests are indicative of DEA's commitment to rid our communities of drug trafficking organizations determined to profit on the backs of addiction," said Morris.  "Citizens in Northern Alabama can rest assured that the DEA and our law enforcement partners are determined to ensure these communities remain safe and a great place to live.  The success of this investigation is an outstanding example of our law enforcement community's resolve and determination."

“North Alabama is safer today as a result of this operation,” Sharp said. “This was an outstanding example of law enforcement partnerships working together to remove dangerous criminals from our neighborhoods.”

“The Postal Service has no interest in being the unwitting accomplice to anyone using the U.S. Mail to distribute illegal drugs or other harmful substances,” Gonzalez said.  “Postal Inspectors will continue to work with our local and federal law enforcement partners to investigate and hold accountable those who misuse the U.S. Mail. Through our joint efforts, we have dismantled a criminal organization that posed a direct threat to various communities in multiple states.”

“We thank our State and Federal partners for their efforts and support in helping rid our community of illegal activity,” Madison County Sheriff Kevin Turner said.  “We value our partnerships and will continually look for opportunities to enhance our ability to protect and serve all of Madison County”.

The arrests made on October 9, 2019, resulted from the combined efforts of local law enforcement agencies across eight counties in Northern Alabama, along with State and Federal law enforcement partners.  Law enforcement agencies participating in the investigation included:  Drug Enforcement Agency; United States Attorney’s Office; Federal Bureau of Investigation; Bureau of Alcohol Tobacco and Firearms; United States Postal Inspection Service; Office of the Attorney General State of Alabama; Alabama Law Enforcement Agency; Morgan County Sheriff’s Department; Lawrence County Sheriff’s Department; Decatur Police Department; Lauderdale County Sheriff’s Department; Colbert County Sheriff’s Department; Franklin County Sheriff’s Department; Russellville Police Department; Marion County Sheriff’s Department; Huntsville Police Department, Cullman County Sheriff’s Department, Cullman Police Department, and the Wayne County (Tennessee) Sheriff’s Department.

In the spring of 2018, Special Agents of the DEA, and members of the Morgan County Sheriff’s Office, Lawrence County Sheriff’s Office and ALEA began an investigation involving quantities of high quality methamphetamine being sold in Morgan and Lawrence County. Agents quickly learned that the methamphetamine was being distributed not only in those areas, but also in the surrounding areas as far south as Cullman and as far north as Tennessee, by multiple affiliated individuals.  Agents also learned that the methamphetamine was coming from the San Bernardino area of California. 

During the course of the investigation, over 74 pounds of “ice” methamphetamine, a kilo of cocaine hydrochloride and 46 grams of “crack” cocaine was seized.  Twenty guns were seized, including two assault rifles and a short barrel shotgun.  Some of the guns seized were identified as stolen. Over $123,000 was seized by federal agencies.  This amount does not include amounts of money seized and forfeited by state and local agencies.

DEA, FBI, and USPIS, investigated the case, which Mary Stuart Burrell is prosecuting.

The charges in the indictment are merely allegations, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

 

defendants_1.pdf

A financial advisor based in Miami, Florida, pleaded guilty today to a money laundering conspiracy for his role in using the U.S. financial system to launder money to promote violations of the Foreign Corrupt Practices Act (FCPA) and Ecuadorian bribery law violations and to conceal and disguise the true nature of those illegal bribe payments.  Specifically, this conspiracy related to a scheme to pay bribes to officials of Ecuador’s state-owned and state-controlled oil company, Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador).

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Kelly Jackson of the IRS-Criminal Investigation’s (IRS-CI) Washington, D.C. office, Special Agent in Charge Raymond Villanueva of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Washington, D.C., office, and Special Agent in Charge George Piro of the FBI’s Miami Field Office made the announcement.

Frank Roberto Chatburn Ripalda (Chatburn), 42, a dual U.S. and Ecuadorian citizen, pleaded guilty in federal district court in Miami before the Honorable Marcia G. Cooke to one count of conspiracy to commit money laundering, which carries a 20-year statutory maximum sentence.  Chatburn is scheduled to be sentenced by Judge Cooke on Dec. 18.

According to his admissions at the plea hearing, Chatburn conspired with an oil services contractor to pay nearly $3 million in bribes to Ecuadorian government officials in an effort to obtain and retain contracts with PetroEcuador.  As a financial advisor to the contractor, Chatburn agreed to make bribe payments for the benefit of several then-PetroEcuador officials through the use of shell companies and bank accounts in the United States, Panama, the Cayman Islands, Curacao and Switzerland.  To conceal the bribe payments and to promote the scheme, Chatburn established Panamanian shell companies with Swiss bank accounts on behalf of two then-PetroEcuador officials.

Chatburn further admitted that he conspired with another Ecuadorian government official to conceal bribe payments intended for the official from Odebrecht S.A., the Brazilian construction conglomerate.  Chatburn facilitated hiding these bribe payments by conducting the transactions through several shell companies and bank accounts in multiple jurisdictions, including in the United States.  Odebrecht S.A. pleaded guilty on Dec. 21, 2016, in the Eastern District of New York to conspiring to violate the anti-bribery provisions of the FCPA in connection with a broader scheme to pay nearly $800 million in bribes to public officials in twelve countries, including Angola, Argentina, Brazil, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Mozambique, Panama, Peru and Venezuela.

To date, 10 individuals, including former Ecuadorian government officials, oil services contractors and financial advisors, have pleaded guilty to criminal charges in U.S. courts for their involvement in the PetroEcuador bribery and money laundering schemes. 

This case was investigated by HSI and IRS-CI, jointly under the auspices of the Global Illicit Financial Team, and by the FBI’s International Corruption Squad in Miami.  Deputy Chief Brian Young, Assistant Chiefs David Fuhr and Lorinda Laryea, Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section, and Trial Attorneys Randall Warden and Mary Ann McCarthy of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) are prosecuting the case.

The U.S. Marshals Service and the Criminal Division’s Office of International Affairs have provided significant assistance by obtaining evidence in this case, as have public authorities in, among other countries, Ecuador, Panama and the Cayman Islands.

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.

To learn more about the government’s FCPA enforcement efforts, go to www.justice.gov/criminal/fraud/fcpa.

A Texas tax return preparer was sentenced yesterday to 60 months in prison for her role in a scheme to defraud the United States and for 27 months (consecutive) for filing a false federal tax return, for a total of 87 months, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to the indictment and information provided to the court, Stacey Anderson owned a tax return preparation business, Anderson Professional Tax Services, and operated the business out of her residence. With the assistance of co-defendant Janell Lightner, Anderson prepared 2013 and 2014 tax returns claiming false business items and/or education tax credits, in order to fraudulently increase their clients’ tax refunds from the Internal Revenue Service (IRS). These returns were prepared for clients in Texas, Maryland, and the District of Columbia. Anderson also filed a 2014 tax return for herself, falsely claiming an education credit and reporting a fraudulent income amount. The total tax loss generated from this scheme exceeded $10 million.  

In addition to the term of imprisonment, U.S. District Judge Alan D. Albright, in Waco, Texas, ordered Anderson to serve a term of three years of supervised release and to pay restitution to the United States in the amount of $8,100,492.64.

On Aug. 6, 2019, co-defendant Janell Lightner pleaded guilty to conspiring to defraud the United States. Her sentencing, also in front of Judge Albright, is currently scheduled for Dec. 5, 2019.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation and the Inspector General of the Social Security Administration, who conducted the investigation, and Tax Division Trial Attorneys Robert Kemins and David Zisserson, who prosecuted the case.  Mr. Zuckerman also thanked the U.S. Attorney’s Office for the Western District of Texas (Waco Division) for their substantial assistance on this case.

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

The Justice Department’s Executive Office for Immigration Review (EOIR) today announced the agency’s case completion numbers topped 275,000 cases for fiscal year 2019 (FY19), the second highest number of case completions in EOIR’s history. This number marks an increase of roughly 80,000 case completions from fiscal year 2018 (FY18), the same year that EOIR established case completion goals for immigration judges in response to years of declining or stagnant productivity. The FY19 numbers are nearly double the number of completed cases from just three years ago.

“Our immigration courts are doing everything in their power to efficiently adjudicate immigration cases while respecting due process rights, but efficient adjudication alone cannot resolve the crisis at the border,” said EOIR Director James McHenry. “While EOIR is doing an unprecedented job adjudicating cases fairly and expeditiously, the nearly one million case backlog will continue to grow unless Congress acts to address the crisis at the border.”

As part of a continued effort to return the rule of law to America’s immigration system, the Justice Department has introduced initiatives to improve EOIR’s efficiency in adjudicating cases without compromising due process. The Department has also worked to reduce EOIR’s “backlog” of cases by hiring new judges, expanding court capacity, and emphasizing the importance of timely completing cases consistent with the law. However, due to the high volume of immigration cases filed by the Department of Homeland Security (DHS) driven by the ongoing border crisis, EOIR’s pending caseload was approximately 987,000 as of the end of FY19. The 444,000 new cases filed by DHS in FY19 is the highest number in history and is well over the historical average of 225,294 from FY09 to FY16.

EOIR had 442 immigration judges as of Sept. 30, 2019, the highest number in its history. Additionally, 92 new judges were hired in four classes over FY19, and another class of judges is expected to join EOIR in November 2019. On average, immigration judges who performed over the whole year completed 708 cases each in FY19.

The Justice Department announced today that UTC Laboratories Inc. (RenRX) has agreed to pay $41.6 million, and its three principals, Tarun Jolly M.D., Patrick Ridgeway, and Barry Griffith, have agreed to pay $1 million to resolve allegations that they violated the False Claims Act by paying kickbacks in exchange for laboratory referrals for pharmacogenetic testing and for furnishing and billing for tests that were not medically necessary.  RenRX, a laboratory company headquartered in New Orleans, Louisiana, also agreed to a twenty-five year period of exclusion from participation in any federal health care program. 

“The payment of kickbacks in exchange for medical referrals undermines the integrity of our healthcare system.  Today’s settlement reflects the Department of Justice’s commitment to ensuring that taxpayer monies are well spent and not wasted on unnecessary medical testing,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.

“Healthcare fraud, in any incarnation, hurts patients, honest medical practitioners, and all of the nation’s taxpayers,” said United States Attorney Peter G. Strasser of the Eastern District of Louisiana.  “The favorable resolution of this False Claims Act matter illustrates the collaborative efforts and firm commitment by our federal partners to use all available remedies, both civil and criminal, to address signs of waste and abuse by providers in our healthcare markets.”

The government alleged that between 2013 and 2017, UTC and its principals offered and paid remuneration to physicians to induce the ordering of pharmacogenetic tests, purportedly in return for their participation in a clinical trial known as the Diagnosing Adverse Drug Reactions Registry (DART), clinical trial identifier NCT01970709.  The government also alleged that UTC and its principals offered and paid remuneration, including sales commissions, to entities and individuals as part of the scheme, and furnished pharmacogenetic tests that were not medically necessary and billed the Medicare program.

“The payment of cash and thinly-disguised referral bribes, as contended by the government, resulted in a more than $42 million dollar resolution in this case," said Special Agent in Charge CJ Porter of the Department of Health and Human Services Office of Inspector General (HHS-OIG).  “Additionally, my agency barred RenRX from receiving any payments from federal health programs for a full 25 years.  Genetic testing scams are becoming all too common. OIG has a genetic testing fraud alert here.” 

The settlement announced today resolves allegations in six lawsuits pending in the United States District Court for the Eastern District of Louisiana:  United States ex rel. Bergeron v. UTC Labs., LLC, et al., No. 16-15440 (E.D. La.); United States ex rel. McNeil v. Tarun Jolly, UTC Labs., LLC, et al., No. 14-2247 (E.D. La.); United States ex rel. Green &  Lawson v. UTC Labs., LLC d/b/a Renaissance RX & Stone Surgical, LLC, No. 15-297 (E.D. La.); United States ex rel. Church v. UTC Labs., LLC d/b/a Renaissance RX, No. 15-877 (E.D. La.); United States ex rel. Outerbridge v. UTC Labs., LLC d/b/a Renaissance RX, No. 15-1445 (E.D. La.).  The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  The Act also allows the government to intervene and take over the action, as it did in these cases.  The whistleblower shares to be awarded have not yet been determined.

The government’s 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 (HHS), at 800-HHS-TIPS (800-447-8477).

The investigation was conducted by the U.S. Attorney’s Office for the Eastern District of Louisiana and the Department of Justice’s Civil Division, in conjunction with the HHS-OIG and the FBI.

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

Today, Attorney General William P. Barr and Australian Minister for Home Affairs Peter Dutton hosted a government-industry roundtable discussion titled, “Shaping a Trusted Technology Ecosystem,” with more than a dozen representatives from the tech-industry landscape.

“Communications networks and supply chains are increasingly vast and complex, and even aggressive efforts by responsible governments will not be able to identify and neutralize every threat,” said Attorney General William P. Barr. “What this highlights is the need to facilitate trusted markets and secure sources of supply to meet the continuing demands we have for innovation and security.”

This dialogue was a critical step in jointly addressing complex supply chain challenges faced by both nations.  The collaborative discussion presented an opportunity for industry, Australia and the United States to work together on solutions to ensure an open marketplace, achieve a diverse range of secure technology options, and enhance global technology markets characterized by trust, transparency, and fair competition.

“We already rely on internet-based technologies, but the next suite of developing technologies represent a new challenge in the way that they are securely integrated into our societies and economies,” said Home Affairs Minister Peter Dutton. “It’s clear our existing policy settings are not keeping pace with this technological change and we should be under no illusions that securing these new technologies is a simple task. Government and industry must work together to identify practical solutions to this challenge, and this dialogue today has been a vital first step towards that goal.”

Areas of potential cooperation discussed included more strategically shaping international standards bodies; the creation of public-private partnerships or international consortia that can deliver alternative and trusted solutions to market; and coordinated investment in research and development to support and further our innovative edge.

Also discussed were the concerted, collective and coordinated actions from both government and industry required to achieve meaningful change.  The dialogue was a critical step in jointly addressing global supply chain challenges and highlighting the opportunity to work together on solutions.

The United States has filed a civil suit in the Middle District of Georgia seeking to bar Stacy Lee and Heather Lee from owning or operating a tax return preparation business, and preparing tax returns for others, the Justice Department announced today.

The complaint alleges that Stacy Lee has operated her tax return preparation stores under the names of Fast Track Tax Service in Talbotton and TimeLee Tax Service in Columbus. 

The complaint further alleges that the defendants fabricate deductions, businesses and related profit or losses, and claim various false credits, including education, energy and childcare credits. By repeatedly underreporting tax liabilities and claiming bogus refunds on behalf of their customers, the defendants have caused the United States to lose substantial tax revenue, according to the complaint.

Return preparer fraud is one of the IRS’ 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 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.

The United States and Australia and have entered into formal negotiations for a bilateral agreement under the U.S. Clarifying Lawful Overseas Use of Data Act (the CLOUD Act), as the first step towards significantly boosting law enforcement cooperation between the two allies, with strong protections for rule of law, privacy and civil liberties.

United States Attorney General William Barr and Australian Minister for Home Affairs, Peter Dutton, announced the negotiations during a meeting on Oct. 7, 2019.

Attorney General Barr said that the United States is pleased that Australia has begun formal negotiations with the United States under the CLOUD Act.  “The CLOUD Act was created to permit our close foreign partners who have robust protections for privacy and civil liberties, such as Australia, to enter into executive agreements with the United States,” said U.S. Attorney General Barr.  “This agreement, if finalized and approved, will allow service providers in Australia and the United States to respond to lawful orders from the other country without fear of running afoul of restrictions on disclosure, and thus provide more access for both countries to providers holding electronic evidence that is crucial in today’s investigations and prosecutions.”

The Attorney General also noted that the conclusion of an executive agreement with Australia will strengthen public safety for both countries.  “The United States looks forward to working with the Australian Government on this agreement, which will enhance each country’s ability to fight crime by allowing faster access to data needed for quick-moving investigations.  By increasing the effectiveness of investigations and prosecutions of serious crime, including terrorism, in both countries, citizens of both countries will be safer.”

Minister Dutton said Australia was very pleased to have taken this step. 

“Last year, Australia congratulated the United States for its leadership in passing this legislation, which recognized that timely access to electronic information held by U.S.-based service providers is critical to efforts to combat serious crime,” said Mr. Dutton. “Current processes for obtaining electronic information held by service providers in other countries risk loss of evidence and unacceptable delays to criminal justice outcomes. When police are investigating a terrorist plot or serious crime such as child exploitation, they need to be able to move forward without delay, but within the law – and the CLOUD Act strikes exactly that balance.  This is the way of the future between likeminded countries.  We have some way to go before the agreement is finalized, but once in place it will mean service providers based in the United States can respond directly to electronic data requests issued by our enforcement agencies under Australian law for data critical for the prevention, detection, investigation and prosecution of serious crime.”

The United States enacted the CLOUD Act in 2018 to speed access by foreign partners to electronic information held by U.S.-based global providers that is critical to such foreign partners’ investigations of serious crime.  The Act creates a new paradigm: an efficient, privacy and civil liberties-protective approach to ensure effective access to electronic data through executive agreements between the United States and trusted foreign partners.     

While this electronic data can currently be sought through the mutual legal assistance (MLA) process, the CLOUD Act provides an alternative expedited framework for obtaining the data.  The number of MLA requests for electronic information held by service providers in the United States has increased dramatically in recent years, straining resources and slowing response times.  The CLOUD Act addresses delays in the MLA process by providing a new route for trusted partner countries to obtain electronic data. 

Underpinned by Australian legislation yet to be introduced, a bilateral CLOUD Act agreement would enable Australian law enforcement to serve domestic orders for communications data needed to combat serious crime directly on U.S.-based companies, and vice versa.

For more information on the CLOUD Act, go to: https://www.justice.gov/dag/page/file/1153466/download and https://www.justice.gov/dag/cloudact.

 

The Department of Justice today unveiled a new public service announcement (PSA) created in collaboration with AARP and the Oak Ridge Boys.

In announcing the launch of the video and accompanying social media campaign, Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division issued the following statement:

“Fraudsters are targeting and stealing billions of dollars from unsuspecting Americans every year. In order to fight this epidemic, Americans must report fraud schemes and spread the word among their families and friends. I want to thank AARP’s Fraud Watch Network and the Oak Ridge Boys for working with us to fight this critical issue. Through increased awareness and reporting, the Department of Justice can continue to take swift action to end the victimization of vulnerable elderly Americans across the country.”

“Americans are targeted by fraudsters from all over the world,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “The scams run by con artists can wreck the financial security of retired Americans. A threat to one’s hard earned savings is a threat to one’s liberty. I am proud to stand with AARP and the Oak Ridge Boys to educate and empower elder Americans to defend themselves against fraudsters.”

“Helping people spot the signs of a scam is key to helping them avoid becoming victims,” said Kathy Stokes, director of fraud prevention programs, AARP. “And encouraging people to report scam attempts and victimization will help others know what to look for, and it will help the good guys in their efforts to go after the bad guys.”

“The Oak Ridge Boys are honored to bring awareness to elder fraud and abuse. For too long people have taken advantage of our senior citizens, and we are teaming up with the Department of Justice and the AARP Fraud Watch Network to help you and your loved ones stay safe from scammers,” said Duane Allen of the Oak Ridge Boys.

"So happy to see the Department of Justice and AARP stepping up to address this problem of elder fraud abuse. We are honored to be stepping up with you. Everyone is susceptible via phone or online, but the elderly are often the targets and victims of identity thieves and scammers. The Oak Ridge Boys are honored to lend our name and image to this worthy cause,” said Joe Bonsall of the Oak Ridge Boys.

If you or a family member, friend, or colleague have been a victim of a fraud scheme, please report to www.aarp.org/fraudwatchnetwork. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

View the PSA here.

 

The Department of Justice today unveiled a new public service announcement (PSA) created in collaboration with AARP and the Oak Ridge Boys.

In announcing the launch of the video and accompanying social media campaign, Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division issued the following statement:

“Fraudsters are targeting and stealing billions of dollars from unsuspecting Americans every year. In order to fight this epidemic, Americans must report fraud schemes and spread the word among their families and friends. I want to thank AARP’s Fraud Watch Network and the Oak Ridge Boys for working with us to fight this critical issue. Through increased awareness and reporting, the Department of Justice can continue to take swift action to end the victimization of vulnerable elderly Americans across the country.”

“Americans are targeted by fraudsters from all over the world,” said U.S. Attorney Trent Shores of the Northern District of Oklahoma. “The scams run by con artists can wreck the financial security of retired Americans. A threat to one’s hard earned savings is a threat to one’s liberty. I am proud to stand with AARP and the Oak Ridge Boys to educate and empower elder Americans to defend themselves against fraudsters.”

“Helping people spot the signs of a scam is key to helping them avoid becoming victims,” said Kathy Stokes, director of fraud prevention programs, AARP. “And encouraging people to report scam attempts and victimization will help others know what to look for, and it will help the good guys in their efforts to go after the bad guys.”

“The Oak Ridge Boys are honored to bring awareness to elder fraud and abuse. For too long people have taken advantage of our senior citizens, and we are teaming up with the Department of Justice and the AARP Fraud Watch Network to help you and your loved ones stay safe from scammers,” said Duane Allen of the Oak Ridge Boys.

"So happy to see the Department of Justice and AARP stepping up to address this problem of elder fraud abuse. We are honored to be stepping up with you. Everyone is susceptible via phone or online, but the elderly are often the targets and victims of identity thieves and scammers. The Oak Ridge Boys are honored to lend our name and image to this worthy cause,” said Joe Bonsall of the Oak Ridge Boys.

If you or a family member, friend, or colleague have been a victim of a fraud scheme, please report to www.aarp.org/fraudwatchnetwork. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

View the PSA here.

The United States and the United Kingdom entered into the world’s first ever CLOUD Act Agreement that will allow American and British law enforcement agencies, with appropriate authorization, to demand electronic data regarding serious crime, including terrorism, child sexual abuse, and cybercrime, directly from tech companies based in the other country, without legal barriers.

The current legal assistance process can take up to two years, but the Agreement will reduce this time period considerably, while protecting privacy and enhancing civil liberties.  The historic agreement was signed by U.S. Attorney General William P. Barr and UK Home Secretary Priti Patel at a ceremony at the British Ambassador’s residence in Washington, D.C.

Attorney General William Barr said: “This agreement will enhance the ability of the United States and the United Kingdom to fight serious crime -- including terrorism, transnational organized crime, and child exploitation -- by allowing more efficient and effective access to data needed for quick-moving investigations.  Only by addressing the problem of timely access to electronic evidence of crime committed in one country that is stored in another, can we hope to keep pace with twenty-first century threats.  This agreement will make the citizens of both countries safer, while at the same time assuring robust protections for privacy and civil liberties.”

Home Secretary Priti Patel said: “Terrorists and paedophiles continue to exploit the internet to spread their messages of hate, plan attacks on our citizens and target the most vulnerable.  As Home Secretary I am determined to do everything in my power to stop them. This historic agreement will dramatically speed up investigations, allowing our law enforcement agencies to protect the public.  This is just one example of the enduring security partnership we have with the United States and I look forward to continuing to work with them and global partners to tackle these heinous crimes.”

Both governments agreed to terms which broadly lift restrictions for a broad class of investigations, not targeting residents of the other country, and assure providers that disclosures through the Agreement are compatible with data protection laws.  Each also committed to obtain permission from the other before using data gained through the agreement in prosecutions relating to a Party’s essential interest—specifically, death penalty prosecutions by the United States and UK cases implicating freedom of speech. 

The novel US-UK Bilateral Data Access Agreement will dramatically speed up investigations by removing legal barriers to timely and effective collection of electronic evidence.  Under its terms, law enforcement, when armed with appropriate court authorization, may go directly to tech companies based in the other country to access electronic data, rather than going through governments, which can take years.  The current Mutual Legal Assistance (MLA) request process, which sees requests for electronic data from law enforcement and other agencies submitted and approved by central governments, can often take many months.  Once in place, the Agreement will see the timeline obtaining evidence significantly reduced.

The Agreement will accelerate dozens of complex investigations into suspected terrorists and pedophiles, such as Matthew Falder who was convicted in 2018 in the UK of 137 offenses after an eight-year campaign of online child sexual abuse, blackmail, forced labor and sharing of indecent images, which highlighted the need to speed up these investigations.

The United States will have reciprocal access, under a U.S. court order, to data from UK communication service providers.  All requests for access to data will be subject to independent judicial authorization or oversight.

In March 2018, Congress passed the CLOUD Act, which authorizes the United States to enter into bilateral executive agreements with rights-respecting partners that lift each party’s legal barriers to the other party’s access to electronic data for certain criminal investigations.  The Agreement was facilitated by the UK’s Crime (Overseas Production Orders) Act 2019, which received Royal Assent in February this year.  The Agreement will enter into force following a six-month Congressional review period mandated by the CLOUD Act, and the related review by UK’s Parliament. 

We anticipate releasing a copy of the agreement in the near future following Congressional and Parliamentary notification.

For more information on the CLOUD Act, go to: https://www.justice.gov/dag/cloudact.

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

Throughout the past two years, the department’s United States Attorneys have partnered with all levels of law enforcement, local organizations, and members of the community to reduce violent crime and make our neighborhoods safer for everyone.  

According to FBI’s 2018 Crime in the United States Report released this week, for the second consecutive year, the estimated number of violent crimes in the nation decreased 3.3 percent from the 2017 number.  The violent crime rate fell 3.9 percent when compared with the 2017 rate.  The 2018 statistics show the estimated rate of violent crime was 368.9 offenses per 100,000 inhabitants.

“The revitalized Project Safe Neighborhoods program is a major success,” said Attorney General William P. Barr. “It packs a powerful punch by combining advanced data with local leadership, further reducing violence in communities across the country and improving overall public safety. U.S. Attorneys continue to focus their enforcement efforts against the most violent criminals and work in partnership with federal, state, local, and tribal police. The Justice Department’s relationships across the board have never been stronger.”

The Department of Justice today published an open letter to Facebook from international law enforcement partners from the United States, United Kingdom, and Australia in response to the company’s publicly announced plans to implement end-to-end-encryption across its messaging services.

The letter is signed by Attorney General William P. Barr, United Kingdom Home Secretary Priti Patel, Australia’s Minister for Home Affairs Peter Dutton, and Acting Homeland Security Secretary Kevin McAleenan.

Addressed to Facebook’s CEO, Mark Zuckerberg, the letter requests that Facebook not proceed with its end-to-end encryption plan without ensuring there will be no reduction in the safety of Facebook users and others, and without providing law enforcement court-authorized access to the content of communications to protect the public, particularly child users.

Facebook’s proposals would put at risk its own vital work that keeps children safe. In 2018, Facebook made 16.8 million reports of child sexual exploitation and abuse content to the National Center for Missing & Exploited Children (NCMEC), 12 million of which it is estimated would be lost if the company pursues its plan to implement end-to-end encryption. 

The concerns highlighted in this letter to Facebook are at the core of the Department of Justice’s Lawful Access Summit that will take place on Friday, Oct. 4, 2019, on warrant-proof encryption and its impact on child exploitation cases.

The summit will feature a keynote address by Attorney General Barr along with remarks by Deputy Attorney General Jeffrey A. Rosen, FBI Director Christopher Wray, and NCMEC co-founder John Walsh. The summit also includes a dialogue with Australian Minister Dutton and U.K. Home Secretary Patel, who will discuss international perspectives on the area of encryption and why Facebook must reconsider its plan to implement end-to-end encryption.

Use of end-to-end encryption, which allows messages to be decrypted only by end users, leaves service providers unable to produce readable content in response to wiretap orders and search warrants. This barrier allows criminals to avoid apprehension by law enforcement by limiting access to crucial evidence in the form of encrypted digital communications. The use of end-to-end encryption and other highly sophisticated encryption technologies significantly hinders, or entirely prevents serious criminal and national security investigations.

Many service providers, device manufacturers, and application developers who use encryption fail to implement technology that would allow the government to obtain electronic evidence necessary to investigate and prosecute threats to public safety and national security. Law enforcement believes it is crucial for technology companies to include lawful access mechanisms in the design of their products or services. The Department of Justice is committed to developing a coherent national and international policy that encourages responsible encryption, enhances public safety, while protecting privacy and cybersecurity.

On Sept. 30, Mexico’s Federal Economic Competition Commission (COFECE) issued guidelines setting forth the agency’s procedures for treatment of attorney-client communications.  Previously there had been no specific recognition of attorney-client privilege in Mexico.  Protection of privileged material is an essential element of procedural fairness that is included both in the United States-Mexico-Canada-Agreement’s (USMCA’s) Competition Policy Chapter and in the Framework on Competition Agency Procedures (CAP) that the United States and over 60 other jurisdictions launched in May at the annual multilateral conference of the International Competition Network (ICN) in Cartagena, Colombia.  The Antitrust Division applauds COFECE’s guidelines, issued after a public consultation. 

“These guidelines will add to the due process rights of all firms operating in Mexico and help to harmonize the antitrust enforcement environment in North America,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “They will also encourage firms to seek legal advice and thus contribute to a more effective compliance regime in Mexico.”

WASHINGTON – Statement from Deputy Attorney General Jeffrey A. Rosen on the United States v. Safehouse ruling:

“The Department is disappointed in the Court’s ruling and will take all available steps to pursue further judicial review.  Any attempt to open illicit drug injection sites in other jurisdictions while this case is pending will continue to be met with immediate action by the Department.”

A Philadelphia tax return preparer pleaded guilty to aiding and assisting in the preparation of a false tax return before the United States District Court in Philadelphia, Pennsylvania yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwaim for the Eastern District of Pennsylvania.

“Tax return preparers, who take advantage of their clients and the tax system to file false tax returns and line their own pockets with refund money, will be prosecuted and held accountable for their criminal conduct,” said Principal Deputy Assistant Attorney General Zuckerman.

“When our tax laws are ignored, especially to this extent, we all lose,” said U.S. Attorney McSwain. “The defendant not only violated the tax laws, but also he victimized individuals who simply wanted to do the right thing and pay their taxes. This sentence should send a message to anyone who thinks he can flout the law: the federal government will investigate and prosecute you.”

“Mr. Coumbassa blatantly ignored the tax laws by preparing false tax returns,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “He used a variety of methods to cheat the government, including falsifying information on tax returns to generate larger refunds for his clients. We owe it to every American taxpayer to use all lawful means to identify and prosecute unscrupulous tax returns preparers like Mr. Coumbassa.”

Abdoulaye Coumbassa (Coumbassa) owned and operated Abbi Tax Services and Accounting (Abbi Tax). From at least 2012 to 2015, Coumbassa prepared and filed fraudulent U.S. Individual Income Tax Returns Forms 1040 (“Forms 1040”) and related forms and schedules on behalf of his clients with the Internal Revenue Service (IRS). The indictment alleged that Coumbassa falsified clients’ returns by, among other things, attaching false Schedules C to the clients’ Forms 1040. These Schedules C falsely claimed that the client had a business that lost money, which loss was used to offset taxable income and therefore inflate the refunds or create a refund rather than tax due and owing. The defendant agreed in his plea agreement that a reasonable estimate of the total tax loss exceeded $2 million.

Sentencing is scheduled for Jan. 30, 2020, before United States District Judge R. Barclay Surrick. Coumbassa faces a statutory maximum sentence of three years in prison and a $250,000 fine for aiding in the preparation of a false tax return. He also faces a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman thanked a special agent of IRS-Criminal Investigation, who conducted the investigation, Assistant United States Attorney Bea Witzleben, and Trial Attorney Sarah Ranney of the Tax Division, who are prosecuting the case.

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

A Philadelphia tax return preparer pleaded guilty to aiding and assisting in the preparation of a false tax return before the United States District Court in Philadelphia, Pennsylvania yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney William M. McSwaim for the Eastern District of Pennsylvania.

“Tax return preparers, who take advantage of their clients and the tax system to file false tax returns and line their own pockets with refund money, will be prosecuted and held accountable for their criminal conduct,” said Principal Deputy Assistant Attorney General Zuckerman.

“When our tax laws are ignored, especially to this extent, we all lose,” said U.S. Attorney McSwain. “The defendant not only violated the tax laws, but also he victimized individuals who simply wanted to do the right thing and pay their taxes. This sentence should send a message to anyone who thinks he can flout the law: the federal government will investigate and prosecute you.”

“Mr. Coumbassa blatantly ignored the tax laws by preparing false tax returns,” said IRS Criminal Investigation Special Agent in Charge Guy Ficco. “He used a variety of methods to cheat the government, including falsifying information on tax returns to generate larger refunds for his clients. We owe it to every American taxpayer to use all lawful means to identify and prosecute unscrupulous tax returns preparers like Mr. Coumbassa.”

Abdoulaye Coumbassa (Coumbassa) owned and operated Abbi Tax Services and Accounting (Abbi Tax). From at least 2012 to 2015, Coumbassa prepared and filed fraudulent U.S. Individual Income Tax Returns Forms 1040 (“Forms 1040”) and related forms and schedules on behalf of his clients with the Internal Revenue Service (IRS). The indictment alleged that Coumbassa falsified clients’ returns by, among other things, attaching false Schedules C to the clients’ Forms 1040. These Schedules C falsely claimed that the client had a business that lost money, which loss was used to offset taxable income and therefore inflate the refunds or create a refund rather than tax due and owing. The defendant agreed in his plea agreement that a reasonable estimate of the total tax loss exceeded $2 million.

Sentencing is scheduled for Jan. 30, 2020, before United States District Judge R. Barclay Surrick. Coumbassa faces a statutory maximum sentence of three years in prison and a $250,000 fine for aiding in the preparation of a false tax return. He also faces a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman thanked a special agent of IRS-Criminal Investigation, who conducted the investigation, Assistant United States Attorney Bea Witzleben, and Trial Attorney Sarah Ranney of the Tax Division, who are prosecuting the case.

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

A Las Vegas, Nevada, tax return preparer pleaded guilty yesterday to multiple tax crimes, which caused a total tax loss of more than $3.4 million, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.

Michael A. Sandoval pleaded guilty to one count of tax evasion, one count of aiding and assisting in the preparation and filing of a false tax return, and one count of making and subscribing a false tax return.

According to documents filed with the court, Sandoval provided payroll and tax preparation services for individuals and companies through his Las Vegas business Nevada Financial Solutions Inc. (NFS). Sandoval used NFS to commit multiple tax crimes. First, when two of his clients provided NFS with $471,178 in payments to be forwarded to the Internal Revenue Service (IRS) as money due for their quarterly employment taxes, Sandoval did not provide those payments to the IRS, but instead spent the funds for his personal benefit. Second, Sandoval filed and caused the filing of false individual income tax returns for a substantial number of clients by reporting fraudulent deductions, including false Schedule C business losses and charitable contribution and state and local tax deductions. These fraudulent deductions caused a tax loss of over $2.8 million. Lastly, Sandoval fraudulently understated his income from NFS on his individual income tax returns for the years 2010 through 2017, causing an additional tax loss of $100,138. In total, Sandoval caused a tax loss totaling $3,425,654.

Sentencing is scheduled for Jan. 9, 2020. Sandoval faces a statutory maximum of five years in prison on the tax evasion charge and three years in prison for each of the false tax return charges. Sandoval also faces a period of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who are prosecuting the case.

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

Florida Attorney General Ashley Moody announced today that the state of Florida is joining the United States, Kansas, Louisiana, Nebraska, Ohio, Oklahoma and South Dakota in settling claims relating to the proposed merger of T-Mobile and Sprint.  The settlement requires a substantial divestiture package in order to enable a viable facilities-based competitor to enter the market.  Further, the settlement will facilitate the expeditious deployment of multiple high-quality 5G networks for the benefit of American consumers and entrepreneurs.

“Florida has been one of the states leading this investigation since the beginning, and I am pleased that they have chosen to join our settlement after completing their thorough review,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “The merger, with the divestitures, will strengthen competition for high-quality 5G networks that will benefit Floridians and American consumers nationwide.” 

The Department’s Antitrust Division and now seven co-plaintiff states have sued to block this transaction, and have agreed to settle the lawsuit based on the proposed settlement.  That settlement, if approved by the court, would resolve the Justice Department’s and the co-plaintiff states’ competitive concerns.

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 the divestiture of certain spectrum assets to Dish.  Additionally, T-Mobile and Sprint must make available 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 builds out its own 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 Department of Justice filed a lawsuit today alleging that defendant Guaranteed Auto Sales, a used car dealership, along with its owner and manager, defendants Kelly Ann West and Robert Chesgreen, violated the federal Equal Credit Opportunity Act by offering different terms of credit based on race to those seeking to purchase and finance used cars in Glen Burnie, Maryland. The lawsuit is based on the results of testing conducted by the department’s Fair Housing Testing Program, in which individuals pose as prospective car buyers to gather information about possible discriminatory practices.

The complaint, which was filed in the U.S. District Court for the District of Maryland, alleges that defendants engaged in a pattern or practice of discrimination by offering less favorable auto loan terms to African American testers than white testers. Most significantly, the complaint alleges that employees of Guaranteed Auto Sales told African American testers that they needed larger down payments than white testers for the same used cars, and told African American testers that they were required to fund their down payments in one lump sum, while they gave white testers an option of paying in two installments. 

“Using race as a factor in determining credit terms, including the amount of down payment that a customer must pay, is despicable and illegal,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division.  “By filing this lawsuit, the Justice Department is acting to ensure that all individuals are treated equally regardless of their race as they seek information about auto financing terms and apply for credit.”

The federal Equal Credit Opportunity Act prohibits lending discrimination based on race, color, religion, national origin, sex, marital status, age, because an applicant receives income from a public assistance program, or because an applicant has in good faith exercised any right under the Consumer Credit Protection Act. The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Additional information about the Section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals who believe that they may have information that relevant to this case can contact the U.S. Department of Justice at (202) 514-4713.

The Justice Department today filed a Statement of Interest explaining that the First Amendment protects the right of the Roman Catholic Archdiocese of Indianapolis to interpret and apply Catholic doctrine. The lawsuit was brought against the Archdiocese by a former teacher who was fired from a Catholic high school within the diocese because he was in a same-sex marriage in contradiction to Catholic teaching on marriage. The Archdiocese indicated that the school had to terminate the teacher, or the school would forfeit its Catholic identity, which would have led to several repercussions for the school.

“The First Amendment to the United States Constitution protects the right of religious institutions and people to decide what their beliefs are, to teach their faith, and to associate with others who share their faith,” said Assistant Attorney General Eric Dreiband for the Civil Rights Division. “The First Amendment rightly protects the free exercise of religion.” 

“If the First Amendment’s Religion Clauses stand for anything, it is that secular courts cannot entangle themselves in questions of religious law,” said United States Attorney Josh Minkler.   

This case stems from a directive issued by the Archdiocese to Cathedral High School, a Catholic school in Indianapolis. The Archdiocese told Cathedral that the school’s continued employment of a teacher in a public, same-sex marriage in contradiction to Catholic teachings on marriage would result in Cathedral’s forfeiture of its Catholic identity. After much deliberation, the school terminated the teacher. The teacher then filed suit against the Archdiocese, claiming the directive to Cathedral interfered with his employment and his contractual relationship with the school.  

The government explains in the Statement of Interest that the First Amendment prevents courts from impairing the constitutional rights of religious institutions. The former teacher’s lawsuit attempts to penalize the Archdiocese for determining that schools within its diocese cannot employ teachers in public, same-sex marriages, and simultaneously identify as Catholic. Supreme Court precedent clearly holds that the First Amendment protects the Archdiocese’s right to this form of expressive association, and courts cannot interfere with that right.

The Statement of Interest also makes clear that courts cannot second-guess how religious institutions interpret and apply their own religious laws. Supreme Court precedent explains that the First Amendment forbids courts from engaging in “quintessentially religious controversies.” Instead, as the Statement of Interest explains, “the legitimacy of the Archdiocese’s decision as a matter of Catholic law” is committed exclusively “to the judgment of the Archdiocese.”   

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

A Brooklyn, New York, businessman pleaded guilty today to failing to collect, truthfully account for, and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. 

According to documents and information provided to the court, Zhi Hui Zheng owned and operated Good Time Sewing Inc. and Perfect Made Apparel Inc., which did business in Brooklyn. As the owner and operator of these businesses, Zheng was responsible for collecting, truthfully accounting for and paying over to the Internal Revenue Service (IRS) Social Security, Medicare and income taxes withheld from his employees’ wages. For seventeen consecutive quarters, beginning from the first quarter of 2012 and continuing through the first quarter of 2016, Zheng failed to collect and pay over the required employment taxes and failed to file the corresponding Forms 941 with the IRS. Zheng has admitted that he did not pay approximately $688,234 in employment taxes due to the IRS. 

Sentencing is scheduled for Jan. 14, 2020, before U.S. District Court Judge Nicholas G. Garaufis. The defendant faces a statutory maximum sentence of five years in prison as well as a period of supervised release, restitution and monetary penalties.  

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark Kotila and Christopher O’Donnell of the Tax Division, who are prosecuting the case. 

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

U.S. Department of Justice and European Commission officials met yesterday to begin formal negotiations on an E.U.-U.S. agreement to facilitate access to electronic evidence in criminal investigations. After a productive first discussion, there was agreement to regular negotiating rounds with the view to concluding an agreement as quickly as possible. Progress will be reviewed at the next E.U.-U.S. Justice and Home Affairs Ministerial in December. 

European Commissioner for Justice, Věra Jourová said, “I welcome the start of formal negotiations. Criminals use fast, modern technologies to organize their crimes and cover up their evidence. We need to work together with our American partners to speed up the access of our enforcement authorities to this evidence. This will strengthen our security, while protecting the data privacy and procedural safeguards of our citizens. The launch of negotiations marks an important step towards achieving this.”

U.S. Attorney General William Barr said, “We are pleased that the Council adopted a mandate to authorize the Commission to negotiate an agreement with the United States on facilitating access to certain e-evidence, and that we have obtained authorization to negotiate with the European Union. This type of agreement can enhance public safety and national security by providing an improved and more rapid ability to identify and respond to criminal threats on both sides of the Atlantic, in a manner that assures respect for the rule of law, privacy, and civil liberties. The U.S. is committed to working with the E.U. on this important issue.”