District Not Recorded

A Washington, D.C. man was sentenced to 18 months in prison for his April attack on a federal prosecutor outside the Superior Court for the District of Columbia, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.

Maurice Hight, 28, who pleaded guilty on Oct. 10 to one count of felony assault on a federal official, was sentenced by U.S. District Judge Paul L. Friedman of the District of Columbia to serve 18 months in prison followed by three years of supervised release.  According to admissions made in connection with his plea agreement, on April 5, 2018, Maurice and his sister and co-defendant, Tiera Hight, 21, were in a courtroom in the Superior Court for the District of Columbia waiting for a verdict against their brother, who was being tried for murder.  After the guilty verdict, Maurice and Tiera Hight exited the courthouse and waited outside.  Several minutes later, the murder victim’s daughter exited the courthouse, escorted by a federal prosecutor.  As they approached the street, Tiera Hight walked directly towards the pair and she and Maurice Hight began to circle them.  Tiera Hight then began to spit on the murder victim’s daughter and physically attacked her.  The federal prosecutor intervened, but Tiera Hight continued her attack.  Maurice Hight then joined the fight, forcibly grabbing the federal prosecutor, pulling her down and punching her in the right side of the face with a closed fist.  The federal prosecutor fell hard to the ground and sustained swelling and bruises to her face and arm.  Two deputy U.S. Marshals in the area placed Maurice Hight under arrest, and Maurice Hight proceeded to spit in the face of one of the deputy U.S. Marshals.  

“The Department of Justice is committed to protecting the safety of our federal officials,” said Assistant Attorney General Benczkowski.  “As this case demonstrates, we will not tolerate any violence against our federal prosecutors for doing their jobs in upholding the rule of law.”

Tiera Hight is scheduled to be sentenced on Feb. 19, 2019 before Judge Friedman.

The Criminal Investigations and Intelligence Unit for the U.S. Attorney’s Office for the District of Columbia investigated this case. Trial Attorneys Jennifer A. Clarke and Lauren Bell of the Criminal Division’s Public Integrity Section are prosecuting the case.

The owner of a Miami, Florida-area pharmacy who caused Medicare to pay more than $8.4 million over a six-year period for prescription drugs that were never provided to beneficiaries was sentenced today to 87 months in prison. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Antonio Perez Jr., 48, of Miami Beach, Florida, was sentenced by U.S. District Judge Federico A. Moreno of the Southern District of Florida, who also ordered Perez to pay $8,415,824 in restitution and to forfeit the same amount.  Perez was ordered to forfeit four Miami-area properties worth approximately $700,000 and multiple bank accounts totaling over $250,000.  Perez previously pleaded guilty to one count of conspiracy to commit health care fraud.

According to admissions made as part of his plea agreement, Perez was the owner of A.R.A. Medical Services Inc., which did business under the name Valles Pharmacy Discount.  Perez admitted to agreeing to pay illegal health care kickbacks to Medicare beneficiaries in exchange for a promise from the beneficiaries to fill their prescriptions at Valles Pharmacy Discount, and to allow Valles Pharmacy Discount to submit claims to Medicare for prescription drugs that were not provided to the beneficiaries.  Perez also admitted that he submitted claims to Medicare for expensive prescription medications that Valles Pharmacy never purchased, and were never provided to Medicare beneficiaries. 

During the course of the scheme, Medicare paid Valles Pharmacy Discount over $32 million, of which at least $8.4 million was for prescription drugs that Valles Pharmacy never purchased and never provided to Medicare beneficiaries, Perez admitted.

The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.  The case was prosecuted by Trial Attorney Timothy P. Loper of the Fraud Section.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and the U.S. Department of Health and Human Services (HHS) to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

The Justice Department today announced the filing of a complaint in federal district court against Watermark Solutions (Watermark), a private corporation located in Phoenix, Arizona. The complaint alleges that Watermark violated the employment rights of Staff Sergeant Larry Green (SSG Green), a reservist in the United States Air Force, under the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA).

According to the complaint, filed in United States District Court for the District of Arizona, SSG Green’s requirement to perform service in the Air Force Reserves was a motivating factor in Watermark’s decision to terminate his employment. At the time that SSG Green was hired by Watermark in July 2015, he informed Watermark of his military training obligations as an Air Force Reservist. Prior to his employment with Watermark, SSG Green served his country for six years on active duty and has been a member of the United States Air Force Reserves since 2015.  Despite the fact SSG Green submitted notice of his Reserve training duties when he was hired, the complaint alleges that in June 2016, Watermark terminated SSG Green’s employment within days of being notified of the dates of his pending military training obligations.   

“Our country depends on the men and women who faithfully carry out their military obligations and make personal sacrifices in order to protect our freedoms as Americans,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Department of Justice is committed to ensuring that the rights of service members, including maintaining their jobs, will be protected when they return to civilian employment from military service or training.”

The lawsuit filed by the United States seeks damages equal to the amount of SSG Green’s lost wages and benefits, as well as liquidated damages resulting from Watermark’s willful failure to comply with USERRA. The lawsuit also seeks SSG Green’s reemployment with the company.

SSG Green initially filed a complaint with the United States Department of Labor’s Veterans’ Employment and Training Service (VETS). The Department of Labor investigated the complaint and attempted to reach resolution between the parties. After resolution failed, VETS referred the complaint to the Department of Justice’s Civil Rights Division, Employment Litigation Section. 

The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA.  Additional information about USERRA can be found on the Justice Departments websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

Today, Acting Attorney General Matthew Whitaker announced that the Department of Justice has amended the regulations of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), clarifying that bump stocks fall within the definition of “machinegun” under federal law, as such devices allow a shooter of a semiautomatic firearm to initiate a continuous firing cycle with a single pull of the trigger. 

Acting Attorney General Whitaker made the following statement:  “President Donald Trump is a law and order president, who has signed into law millions of dollars in funding for law enforcement officers in our schools, and under his strong leadership, the Department of Justice has prosecuted more gun criminals than ever before as we target violent criminals. We are faithfully following President Trump’s leadership by making clear that bump stocks, which turn semiautomatics into machine guns, are illegal, and we will continue to take illegal guns off of our streets.”

On February 20, 2018, President Trump issued a memorandum instructing the Attorney General “to dedicate all available resources to… propose for notice and comment a rule banning all devices that turn legal weapons into machineguns.” In response to that direction the Department reviewed more than 186,000 public comments and made the decision to make clear that the term “machinegun” as used in the National Firearms Act (NFA), as amended, and Gun Control Act (GCA), as amended, includes all bump-stock-type devices that harness recoil energy to facilitate the continuous operation of a semiautomatic firearm after a single pull of the trigger. 

This final rule amends the regulatory definition of “machinegun” in Title 27, Code of Federal Regulations (CFR), sections 447.11, 478.11, and 479.11.  The final rule amends the regulatory text by adding the following language:  “The term ‘machine gun’ includes bump-stock devices, i.e., devices that allow a semiautomatic firearm to shoot more than one shot with a single pull of the trigger by harnessing the recoil energy of the semi-automatic firearm to which it is affixed so that the trigger resets and continues firing without additional physical manipulation of the trigger by the shooter.” Furthermore, the final rule defines “automatically” and “single function of the trigger” as those terms are used in the statutory definition of machinegun.  Specifically,

• “automatically” as it modifies “shoots, is designed to shoot, or can be readily restored to shoot,” means functioning as a result of a self-acting or self-regulating mechanism that allows the firing of multiple rounds through the single function of the trigger;
• “single function of the trigger” means single pull of the trigger and analogous motions.

Because the final rule clarifies that bump-stock-type devices are machineguns, the devices fall within the purview of the NFA and are subject to the restrictions of  18 U.S.C. 922(o).  As a result, persons in possession of bump-stock-type devices must divest themselves of the devices before the effective date of the final rule.  A current possessor may destroy the device or abandon it at the nearest ATF office, but no compensation will be provided for the device.  Any method of destruction must render the device incapable of being readily restored to its intended function. 

The final rule may be found here.

Information and instructions for destruction of the devices will be posted on ATF's website later today.

Please note:  This is the text of the final rule as signed by the Acting Attorney General, but the official version of the final rule will be as it is published in the Federal Register.

A Nigerian national was charged in court documents unsealed today for his role as the alleged ringleader of an international advance-fee scheme that allegedly involved false promises of investment funding by individuals who impersonated U.S. bank officials in person and over the internet to victims around the world, who were told they had to make certain payments before they could supposedly receive their funding.  Proceeds of the scheme were allegedly laundered through U.S. bank accounts and diverted back to the scheme’s perpetrators in Nigeria.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office and Special Agent in Charge Robert Smolich of the U.S. Department of State Office of Inspector General made the announcement. 

Osondu Victor Igwilo, 49, of Lagos, Nigeria, was charged in a complaint filed in the Southern District of Texas in December 2016 and unsealed today.  The complaint charges Igwilo with one count of wire fraud conspiracy, one count of money laundering conspiracy and one count of aggravated identity theft.  Igwilo remains a fugitive.

As alleged in the complaint, Igwilo was the leader of a criminal network of “catchers,” who sent phishing emails to potential victims falsely offering investment funding on behalf of BB&T Corporation, a U.S. bank headquartered in North Carolina.  When victims were interested in the supposed investment funding, Igwilo allegedly dispatched U.S. citizens whom he had recruited over the internet to pose as “representatives” of BB&T to meet in person with the victims and sign a supposed investment agreement on behalf of BB&T.  When traveling to the countries where the victims resided, these representatives, at Igwilo’s direction, would visit the local U.S. embassy or consulate and employ fake documents with fraudulent seals of the U.S. government to deceive the victims into believing that the investment agreement was sponsored by the U.S. government, the complaint alleges.  Igwilo then allegedly used the representatives and catchers to convince victims to make wire payments to bank accounts in the United States on the false belief that such payments were necessary to effectuate the investment agreements.  The holders of the U.S. bank accounts were “money movers,” who disposed of the funds as directed by Igwilo, including by purchasing luxury vehicles, from brands such as Mercedes Benz and Range Rover, and shipping them to Nigeria, the complaint alleges.

Uche Diuno, 52, also of Lagos, was charged in a separate case in a second superseding indictment filed on Oct. 3, 2018 with one count of wire fraud conspiracy, one count of money laundering conspiracy and one count of concealment money laundering.  Diuno was arrested in Paris, France on Sept. 29, 2018 and is awaiting extradition.

As alleged in the second superseding indictment, Diuno was a “chairman” or leader in the scheme, who operated his own network of catchers and money movers alongside Igwilo’s, which he used in furtherance of the same BB&T investment scam. 

Seven other individuals have been charged to date as part of the same investigation including Uju Okigbo, 49, of Houston, Texas, an alleged money mover; Chioma Okafor, 29, of Houston, an alleged money mover; Marita Ranalan Underwood, 62, of Manila, Philippines, an alleged representative; John Christian Rutledge, 65, of Yaphank, New York, an alleged representative; Osa May Martin, 69, of Carthage, Missouri, an alleged representative; Tochukwu Nwosisi, 47, of Indianapolis, Indiana, an alleged money mover and Tiffany Sourjohn, 48, of Miami, Oklahoma, an alleged representative.

Okigbo, Okafor, Rutledge and Sourjohn have pleaded guilty and are awaiting sentencing.  Underwood remains a fugitive.  Martin and Nwosisi are pending trial.     

The charges in the complaint and second superseding indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The case was investigated by the FBI and Department of State Office of Inspector General.  The case is being prosecuted by Trial Attorney William E. Johnston of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Suzanne Elmilady of the Southern District of Texas.  Forfeiture aspects of the case are being handled by Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas.

Acting Attorney General Matthew Whitaker today released the following statement:

"The Trump administration is taking action to prevent and deter violence in our schools," Acting Attorney General Whitaker said. "The Department of Justice is already directing funding to hire school resource officers, improving our background check systems, and prosecuting violent offenders at record levels. Today's report provides a substantive blueprint for this Administration's next steps to protect our young people. The Department of Justice will continue to support first responders and provide training for law enforcement officers and school personnel. I want to thank all of my fellow commissioners for their hard work on this report and thank the President for making our kids a priority."

The Justice Department’s U.S. Trustee Program (USTP) filed on Friday an objection to a debtor company’s proposed candidate for appointment as a Future Claimants’ Representative (FCR) in a bankruptcy case involving a trust to compensate those suffering from asbestos disease.  An FCR is appointed by the court to protect the interests of those exposed to asbestos products manufactured or sold by a debtor, but who have not yet become sick.  Current claimants are represented by attorneys who often control the asbestos trusts to the detriment of future asbestos victims.

This is the second time this year that the USTP has opposed the selection of a candidate proposed by a debtor company and endorsed by the plaintiffs’ lawyers representing current claimants.

In its objection, the USTP argued that the court is required to select the best candidate without deference to the debtor or plaintiffs’ lawyers.  The objection asserts that the proposed candidate currently serves as FCR for several other trusts and has other connections to trusts that have contained inadequate safeguards against fraudulent claims, inflated professional fees, and other costs that threaten to deplete the trusts and reduce compensation to future claimants.  The USTP asked the court to adopt an open selection process that allows candidates without connections to the professionals in the case or other conflicts to be considered.  As noted in its brief, “the USTP was created to be the ‘watchdog’ for the bankruptcy system to ensure that cases are not administered for the narrow benefit of the lawyers and other professionals instead of stakeholders such as creditors and employees.”

“In recent years, there have been credible allegations—and at least one court has found evidence—of misrepresentation, mismanagement, and abuse in the asbestos trust system,” said Principal Deputy Associate Attorney General Jesse Panuccio.  “A significant contributing factor is the failure of courts to appoint independent future claimants’ representatives who are free from conflicts of interest, including conflicts caused by their involvement in other asbestos trusts.  The Department of Justice is committed to protecting the rights of victims of asbestos disease and the integrity of the bankruptcy system.”  

The USTP is a component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and enforcing the bankruptcy laws.  Learn more about the Program at https://www.justice.gov/ust. 

A Miami, Florida-area woman was sentenced to 78 months in prison to be followed by three years of supervised release today for her role in a $4.65 million health care fraud scheme involving three home health agencies that purported to provide home health services to Medicare patients.   

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Margarita Palomino, 54, of Homestead, Florida, was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida.  Judge Martinez also ordered Palomino to pay $4,658,241.00 in restitution and to forfeit $186,650.50.  Palomino pleaded guilty on Oct. 10, 2018 to one count of conspiracy to commit health care fraud and wire fraud. 

Palomino worked at Sunshine Home Health Services Inc., Empire Home Health Agency Inc. and Mildred & Marce Home Health Care Services Inc., all in the Miami area.  As part of her guilty plea, Palomino admitted that from approximately January 2010 through approximately January 2014, she accepted kickbacks in return for the referral of Medicare beneficiaries, many of whom did not need or qualify for home health services, to act as patients at the three agencies.  Palomino—who was a physician in Cuba but never licensed in the United States—further admitted that she performed home health care nursing visits and prepared related medical records as if she were a licensed medical professional.  She also admittedly changed claims coding to increase reimbursement by Medicare. 

Palomino admitted that, as a result of false and fraudulent claims submitted as part of this conspiracy, Medicare made payments of at least $4.65 million.

Palomino was charged along with Norma Zayas, 29, of Miami, in an indictment returned on June 7, 2018.  Zayas pleaded guilty and is currently awaiting sentencing. 

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.  Trial Attorney Emily Gurskis of the Fraud Section and Assistant U.S. Attorney Leslie Wright of the District of Massachusetts (previously a Fraud Section trial attorney) are prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

A federal jury in Los Angeles, California found a pharmacy owner guilty today for her role in a Medicare fraud scheme involving more than $1.3 million in fraudulent claims for prescription drugs. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Nicola T. Hanna of the Central District of California, Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division and Special Agent in Charge Christian J. Schrank of the U.S. Department of Health and Human Services

Office of Inspector General’s (HHS-OIG) Los Angeles Regional Office made the announcement.

After a two-day trial, Tamar Tatarian, 39, of Pasadena, California, was convicted of one count of health care fraud and two counts of wire fraud.  Sentencing has been scheduled for Feb. 25, 2019 before U.S. District Judge John F. Walter of the Central District of California, who presided over the trial.  Tatarian was the owner of Akhtamar Pharmacy in Pasadena.

According to evidence presented at trial, from approximately October 2015 through approximately October 2017, Tatarian engaged in a scheme involving the submission of fraudulent claims to Medicare Part D plan sponsors for prescription drugs that Akhtamar Pharmacy never ordered from wholesalers, and thus never dispensed to Medicare beneficiaries.  Tatarian attempted to conceal the fraud through the creation of fake invoices, reflecting wholesale drug purchases by Akhtamar Pharmacy which had, in fact, never taken place.  As a result of this scheme, Tatarian through Akhtamar Pharmacy submitted claims to Medicare for more than $1.3 million in prescription drugs that she never purchased or dispensed to patients, the evidence showed.

This case was investigated by the FBI and HHS-OIG.  Trial Attorney Alexis Gregorian and Assistant Chief A. Brendan Stewart of the Criminal Division’s Fraud Section are prosecuting the case. 

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

The Department of Justice announced today that it will require Gray Television Inc., and Raycom Media Inc., to divest broadcast television stations in nine markets as a condition of resolving a challenge to the proposed $3.6 billion merger between Gray and Raycom.

The Justice Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed merger. At the same time, the Division filed a proposed settlement that, if approved by the court, would resolve the suit by remedying the competitive harms alleged in the complaint, through the divestitures and related conditions.

“Without the required divestitures, Gray’s merger with Raycom threatens serious competitive harm to cable subscribers and small businesses,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “I am pleased, however, that we have been able to reach a speedy and complete resolution of the Division’s concerns, thanks in part to the parties’ commitment to engage in good faith settlement talks from the outset of our investigation.”

According to the complaint, without the divestitures the merger would eliminate head-to-head competition between Gray and Raycom in the nine local markets in which the divestitures are being required. In each of those markets, the transaction would increase the number of “Big Four” affiliate stations owned by Gray (i.e., affiliates of NBC, CBS, ABC, or FOX), leaving Gray with two or more Big Four stations in each area. The divestiture markets are Knoxville, Tennessee; Toledo, Ohio; Waco–Temple–Bryan, Texas; Tallahassee, Florida–Thomasville, Georgia; Augusta, Georgia; Odessa-Midland, Texas; Panama City, Florida; Albany, Goergia; and Dothan, Alabama.

As a result of the merger, the combined company would likely charge cable and satellite companies higher retransmission fees to carry the combined company’s broadcast stations, resulting in higher monthly cable and satellite bills for millions of Americans.

The merger would also enable the company to charge local businesses and other advertisers higher prices for spot advertising in the divestiture markets. Businesses rely on competition among broadcast station owners to obtain reasonable advertising prices. Gray and Raycom compete with one another for the business of local advertisers, and the proposed merger would eliminate that competition, harming local businesses.

The Antitrust Division has determined that the divestitures would resolve antitrust concerns related to the licensing of Big Four television retransmission consent and the sale of broadcast television spot advertising that would otherwise result from the merger. The divestitures required under the settlement announced today would, if approved by the court, require Gray to sell the Big Four affiliate stations currently owned by either Raycom or Gray in each of the nine markets where the companies have Big Four overlaps. The settlement requires that the divestitures be accomplished in such a way as to satisfy the United States that the divested stations and associated assets will be used by the buyers as part of a viable, ongoing commercial television broadcasting business.

Gray Television Inc. is a Georgia corporation with its headquarters in Atlanta, Georgia.  Gray owns 92 television stations in 56 local markets, of which 83 are Big Four affiliate stations.

Raycom Media Inc. is a Delaware corporation with its headquarters in Montgomery, Alabama.  Raycom owns 51 television stations in 43 local markets, of which 45 are Big Four affiliate stations.

As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Owen Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4000, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.

A federal grand jury sitting in the Southern District of Texas returned an indictment on Dec. 12 charging a U.S. Customs and Border Protection (CBP) officer with converting federal funds to his own use, with concealing material facts from CBP, and with making false representations to CBP, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced. 

Daniel Lerchbacker, 35, of Conroe, Texas, was charged with three counts of theft for allegedly failing to pay three Canadian entities for expenses that the United States had already provided the funds to cover and for collecting federal funds to which he knew he was not entitled.  Lerchbacker was also charged with two counts of false statements for allegedly submitting to CBP copies of checks as proof of payment, despite knowing that such payments had not, in fact, been made.  Lerchbacker will be arraigned on the charges today at 2 p.m. CST before U.S. Magistrate Judge Christina A. Bryan in U.S. District Court in the Southern District of Texas in Houston.

According to the indictment, Lerchbacker, while stationed in Canada as a CBP officer between December 2015 and December 2017, allegedly received from the U.S. foreign monetary allowances for the lease of his family’s residence and private school education expenses for his children.  During this time, Lerchbacker received the full amount of federal funds that he requested for these expenses, but Lerchbacker allegedly failed to pay a property management company and two private schools a total of approximately $54,460.99 CAD.  Additionally, Lerchbacker allegedly requested, collected, and retained from the United States approximately $24,230.50 CAD in advance funds for educational expenses for his children while knowing that he was to leave Canada before the end of the school year.

An indictment is merely an allegation, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the Department of Homeland Security Office of Inspector General and is being prosecuted by Trial Attorney Rebecca Moses of the Criminal Division’s Public Integrity Section.

ALBUQUERQUE – Joe Lee Haines, 36, an enrolled member of the Navajo Nation who resides in Tinian, N.M., was sentenced today in federal court in Albuquerque, N.M., to one year and one day in prison for his child abuse conviction.  Haines will be on supervised release for one year after completing his prison sentence.

On Sept. 17, 2018, Haines pled guilty to child abuse.  He admitted that on Sept. 1, 2017, while he was intoxicated, he placed a rifle into a child’s mouth, accused the child of taking money from him, and threatened to pull the trigger.

The Gallup office of the FBI and the Navajo Nation Division of Public Safety investigated this case.  Assistant U.S. Attorney Kyle T. Nayback prosecuted the case.

The Department of Justice announced today that it has reached a settlement with Nexstar Media Group Inc., one of the largest owners of television stations in the country, as part of its ongoing investigation into exchanges of competitively sensitive information in the broadcast television industry. 

The Department filed an amended complaint today in the case United States v. Sinclair Broadcast Group, Inc., et al., adding Nexstar Media Group Inc. as a defendant.  At the same time, the Department filed a proposed settlement with Nexstar that, if approved by the court, would resolve the competitive harm alleged in the complaint.  The Department filed its original complaint in the case on Nov. 13, 2018, along with proposed settlements with six other television broadcasting companies.

“The Antitrust Division continues its efforts to stop the unlawful exchange of competitively sensitive information in the television broadcast industry,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “Robust competition among broadcast stations allows American businesses to obtain competitive advertising rates.  The unlawful sharing of information reduced that competition and harmed businesses and the consumers they serve.”

According to the amended complaint, Nexstar agreed with other entities in many metropolitan areas across the United States to exchange revenue pacing information, and also engaged in the exchange of other forms of non-public sales information in certain metropolitan areas.  Pacing compares a broadcast station’s revenues booked for a certain time period to the revenues booked in the same point in the previous year.  Pacing indicates how each station is performing versus the rest of the market and provides insight into each station’s remaining spot advertising for the period.

By exchanging pacing information, Nexstar and other broadcasters were better able to anticipate whether their competitors were likely to raise, maintain, or lower spot advertising prices, which in turn helped inform their stations’ own pricing strategies and negotiations with advertisers.  As a result, the information exchanges harmed the competitive price-setting process.

The proposed settlement prohibits the direct or indirect sharing of such competitively sensitive information. The Department has determined that prohibiting this conduct would resolve the antitrust concerns raised as a result of Nexstar’s conduct.  The proposed settlement further requires Nexstar to cooperate in the Department’s ongoing investigation and to adopt rigorous antitrust compliance and reporting measures to prevent similar anticompetitive conduct in the future.  The settlement has a seven year term, and it will continue to apply to stations currently owned by Nexstar, even if those stations are acquired by another company.

Nexstar Media Group Inc. is a Delaware corporation with headquarters in Irving, Texas. It owns or operates 105 television stations across 93 markets and had revenues in excess of $1.2 billion in 2017.

As required by the Tunney Act, the proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register.  Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Owen Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 4000, Washington, D.C. 20530.  At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.

An indictment was unsealed today in the U.S. District Court for the District of Maine charging Shou Chao Li, 37, and Derong Miao, 37, both of Concord, New Hampshire, with one count of conspiracy to engage in interstate transportation and travel for prostitution, two counts of sex trafficking by fraud and coercion, and five counts of interstate transportation for prostitution.  Li was also charged with possessing a victim’s passport as part of the sex trafficking scheme. The indictment was announced by Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division and U.S. Attorney Halsey B. Frank of the District of Maine.

According to the indictment, defendants Li and Miao operated an interstate prostitution and sex trafficking enterprise between July 2016 and at least February 2018. The defendants targeted Chinese women and recruited them to travel to Maine, where the defendants caused them to engage in prostitution, controlled their movements, and isolated them.  The defendants rented residences and hotel rooms in Maine, Vermont, and New Hampshire for purposes of prostitution, and they employed others outside of Maine to advertise the women on Backpage.com and to communicate with prostitution customers. 

An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty. Li faces up to five years on the passport charge. Both defendants face up to five years in prison on the conspiracy charge, between 15 years’ imprisonment and a maximum sentence of life on the sex trafficking charges, and up to 10 years on the interstate transportation for prostitution charges. Both also face fines up to $250,000 and mandatory restitution. 

The District of Maine is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam). ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.

The case is being investigated by the Portland and South Portland, Maine and the Manchester, Portsmouth, and Concord, New Hampshire Police Departments; the Cumberland County District Attorney’s Office; the FBI; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Department of State’s Diplomatic Security Service; and the U.S. Department of Labor, Office of Inspector General and Wage and Hour Division.  It is being prosecuted by Assistant U.S. Attorney Darcie N. McElwee with assistance from the Civil Rights Division’s Human Trafficking Prosecution Unit.

ALBUQUERQUE – Lane Michael Reed, 24, of Killeen, Texas, was sentenced today in federal court in Albuquerque, N.M., to 25 years in prison for armed robbery, carjacking and firearms charges arising out of a two-day violent crime spree in July 2017.  Reed will be on supervised release for 5 years after completing his prison sentence. 

            On July 19, 2018, Reed pled guilty to robbing the Pecos River Station convenience store in San Miguel County, brandishing a firearm during the robbery, and carjacking.  In entering his guilty plea, Reed also admitted that after the robbery, he attempted to evade arrest by driving at speeds up to 140 miles an hour and discharging his firearm at the law enforcement officers who were pursuing him.  During the pursuit, Reed caused extensive damage to the vehicle he stole as well as the law enforcement vehicles pursuing him.

            The Santa Fe office of the FBI, the New Mexico State Police and the Santa Fe County Sheriff’s Office investigated this case.  Assistant U.S. Attorney George C. Kraehe prosecuted the case under Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven 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.

Two Kingsmen Motorcycle Club gang members, who were convicted of RICO conspiracy, were sentenced today in the Western District of New York to 15 years and more than four years in prison, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney James P. Kennedy Jr. for the Western District of New York announced.

Gregory Willson, aka “Flip,” 52, of Allegany, New York, and Glen Stacharczyck, aka “Turbo,” 53, of Amherst, New York, were sentenced by U.S. District Judge Elizabeth A. Wolford to serve 180 months and 57 months in prison, respectively. Judge Willson also sentenced Willson and Stacharczyck to serve three years of supervised release following their prison sentence.  Willson pleaded guilty on Nov. 30, 2017 to RICO conspiracy and was also sentenced for being a felon in possession of a firearm.  Stacharczyck pleaded guilty to RICO conspiracy on July 16.

According to the plea agreements of the two defendants, Willson was a member of the Springville Chapter of the Kingsmen Motorcycle Club (KMC) and a KMC Nomad, while Stacharczyck was a member of the North Tonawanda and the South Buffalo Chapters of the KMC.  The KMC operated in Florida, New York, Pennsylvania and Tennessee.  The KMC Nomads did not belong to a particular chapter and were the enforcement and security arm of the KMC.

In September 2009, Willson admitted that he took a female victim from the state of New York to KMC clubhouses in the state of Pennsylvania. While visiting a KMC clubhouse in Meadville, Pennsylvania, Willson punched the victim in the face repeatedly, bloodying her face to the point where her eyes were swollen shut, after the two had a verbal altercation.  Neither the defendant nor any other KMC members or associates called for medical attention.  Willson then brought the woman back to New York where he and his mother cleaned up the female and kept her secluded against her will, for several days, in order to conceal her injuries.

On June 7, 2013, Willson and other KMC members forcibly shut down the Springville Chapter and stripped members of their colors because they were non-compliant members. Brandishing firearms, KMC members struck a victim in the head with a blunt object and stole items from the Springville clubhouse.  They then used bleach to clean areas where the victim bled and cut and removed portions of the rug, which contained blood.  As a result of the assault, Willson was elevated to the position of Nomad within the KMC.  A KMC Nomad was a KMC member that was not required to regularly attend meetings but was expected to serve the interests of the KMC enterprise including fighting other clubs and committing violent crimes.  

On Aug. 3, 2013, while at a KMC party, after learning that the former Springville KMC members were taking pictures wearing KMC patches and taunting the KMC, Willson and others decided to conduct a drive-by shooting. They drove to the former Springville KMC clubhouse where they located the former members.  At that point, they opened the sliding door on the side of the van and one of the defendant’s accomplices fired twice with a shotgun towards the group of former Springville KMC members who were outside.  One of the shots struck a vehicle, which was parked near where one of the targeted former KMC members was standing. 

In addition, Willson stored cocaine for sale at his then-girlfriend’s house in Buffalo, New York.  On Aug. 9, 2013, a firearm belonging to Willson, ammunition and a quantity of cocaine were recovered during the execution of a search at the residence. 

On July 31, 2015, a search warrant was executed at Willson’s Allegany residence and law enforcement officers recovered KMC paraphernalia, a quantity of marijuana, a quantity of psilocybin (“mushrooms”), a firearm and ammunition.  The defendant was previously convicted of felonies in both Federal and Cattaraugus County, New York Court and is legally prohibited from possessing a firearm.

Also, according to the plea agreements, KMC members and associates used and distributed marijuana, cocaine, methamphetamine, and other controlled substances at the North Tonawanda and South Buffalo KMC Chapter Clubhouses.  KMC members were also involved in firearm sales.  Stacharczyck also possessed firearms.

Willson and Stacharczyck are two of 21 KMC members and associates charged in this case. To date, all of the defendants have been convicted or pleaded guilty, including National President David Pirk, who was convicted following a four-month jury trial and will be sentenced on Feb. 28, 2019.

Today’s sentencings are the culmination of an investigation led by the FBI’s Safe Streets Task Force, under the direction of Special Agent in Charge Gary Loeffert. Assisting in the investigation were the FBI Knoxville, Tennessee, and Jacksonville, Florida field offices; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; the Erie County Sheriff’s Office; the Buffalo Police Department; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the New York State Police; the Olean Police Department; the Lancaster Police Department; the Amherst Police Department; the City of North Tonawanda Police Department; the Niagara Frontier Transportation Authority Police; the Cattaraugus County Sheriff’s Department and the Hamburg Police Department.  The case is being prosecuted by Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Joseph M. Tripi and Brendan T. Cullinane of the Western District of New York. 

The Justice Department announced today that it has reached a settlement with Afni Inc. (Afni), a customer service provider headquartered in Bloomington, Illinois. The settlement resolves a complaint that an Afni location in Tucson, Arizona, discriminated against a lawful permanent resident in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA).

The Department’s investigation, initiated based on a lawful permanent resident’s complaint, concluded that on more than one occasion Afni improperly rejected the worker’s valid documents establishing her work authority, and requested that the worker present more or different documents than necessary based on the worker’s citizenship status. These actions constitute unfair documentary practices in violation of the INA. Under the INA, workers are allowed to choose from lists of acceptable documents to prove that they are authorized to work and employers cannot reject valid documents or specify which documents the workers should present because of their citizenship.   

Under the settlement agreement, Afni will provide back pay to the injured worker and pay a civil penalty to the U.S. Department of the Treasury. Among other requirements, the company will be subject to staff training and monitoring requirements.

“Employers should familiarize themselves with the INA’s anti-discrimination requirements to avoid unnecessary and unlawful document requests that create obstacles for workers based on their citizenship status or national origin,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We commend Afni for working to ensure that, in the future, employees do not face discriminatory barriers when going through the employment eligibility verification process.”

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 and 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.

A federal jury in Atlanta, Georgia, convicted Saleem Hakim, 49, of three counts of failing to file federal income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents and evidence presented at trial, Saleem Hakim was in the business of brokering the sale of precious metals to clients.  As a precious metal broker, Hakim received funds from clients, converted a portion of the funds to precious metals, and kept the remainder for his personal use.  For the years 2011 through 2013, the total amount Hakim retained was in excess of $1 million.  Despite receiving income in excess of the filing thresholds and knowing his obligation to make and file tax returns, Hakim did not file any income tax returns. Hakim is a former resident of Smyrna, Georgia.

Sentencing is scheduled for February 26, 2019.  Hakim faces a maximum of one year in prison on each count, as well as a period of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Jeffrey Bender and Kathryn Sparks of the Tax Division, who are prosecuting this case.

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

A former U.S. government contractor was charged in an indictment filed today for his alleged role in selling falsified resumes and counterfeit U.S. government training certificates to individuals seeking employment on U.S. government contracts in Afghanistan between 2012 and 2015, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Inspector General for Afghanistan Reconstruction John F. Sopko.

Antonio Jones, 39, of Yorktown, Virginia, was charged in the District of South Carolina with one count of conspiracy to defraud government contractors and the United States, nine counts of wire fraud and three counts of false statements.  Jones is scheduled to make his initial appearance in the District of South Carolina on Jan. 22, 2019.

The indictment alleges that Jones created an entity known as Wolverine Inc., through which he offered job placement services to clients seeking employment with U.S. government contractors in Afghanistan and elsewhere.  Jones allegedly falsified his clients’ resumes and manufactured counterfeit U.S. government training certificates for his clients to make them appear more qualified than they actually were.  Jones and his clients then used the falsified documents in job applications that were submitted to U.S. government contractors, the indictment alleges.  At least two U.S. government contractors, one of which was based in the District of South Carolina, working on a multibillion-dollar Defense Department contract hired personnel allegedly based on false documents that Jones created and supplied or caused to be supplied to them.

This case was investigated by the Special Inspector General for Afghanistan Reconstruction, the FBI, the Defense Criminal Investigative Service and the U.S. Army’s Criminal Investigation Command.  The case is being prosecuted by Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section.

A former congressional staffer was sentenced today to 18 months in prison and ordered to pay $800,000 in restitution, to be followed by three years of supervised release, for participating in a multi-year scheme to defraud charitable donors of hundreds of thousands of dollars and secretly to funnel the proceeds to pay for personal expenses and to illegally finance campaigns for federal office. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas, Assistant Director in Charge Nancy McNamara of FBI’s Washington Field Office and Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation (IRS-CI) Houston Field Office made the announcement.

Thomas Dodd, 40, of Houston, Texas, was sentenced in the U.S. District Court for the Southern District of Texas by Chief U.S. District Judge Lee H. Rosenthal.  Dodd was also ordered to forfeit $153,044.28 in illicit gains.  Dodd pleaded guilty on March 20, 2017, to one count of conspiracy to commit mail and wire fraud and one count of conspiracy to make conduit contributions and false statements.  As part of his plea, Dodd admitted that he participated in a scheme led by former U.S. Representative Stephen E. Stockman, 62, who was convicted by a federal jury in Houston on April 12 of 23 counts of mail fraud, wire fraud, conspiracy to make conduit contributions and false statements to the Federal Election Commission (FEC), making false statements to the Federal Election Commission, making excessive coordinated campaign contributions, money laundering, and filing a false tax return.  Another of Stockman’s former congressional staffers, Jason T. Posey, 48, of Tupelo, Mississippi, pleaded guilty on Oct. 11, 2017, to one count of mail fraud, one count of wire fraud, and one count of money laundering.

According to the evidence presented at Stockman’s trial, from May 2010 to February 2014, Stockman and his co-defendants solicited $1,250,571.65 in donations from charitable organizations and the individuals who ran those organizations based on false pretenses, then used a series of sham nonprofit organizations and dozens of bank accounts to launder the money before it was used for a variety of personal and campaign expenses. 

Specifically, the evidence established that in 2010, Stockman and Dodd solicited an elderly donor in Baltimore, Maryland for $285,000 to be used for legitimate charitable and educational purposes.  Stockman and Dodd used a sham charity named the Ross Center to funnel the money to be used for a variety of personal expenses.  The evidence further established that, in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations from the Baltimore donor, much of which Stockman used illegally to finance his 2012 congressional campaign. 

The trial evidence also showed that shortly after Stockman took office as a member of the U.S. House of Representatives in 2013, he and Dodd used the name of another sham nonprofit entity, Life Without Limits, to solicit and receive a $350,000 charitable donation, to be used to create an educational center called the Freedom House.  Stockman, Dodd, and Posey instead used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent, an in-patient alcoholism treatment for a female associate, and payments for hundreds of thousands of robocalls and mailings promoting Stockman’s candidacy for U.S. Senate in early 2014.

In addition, the evidence established that, in connection with Stockman’s Senate campaign, Stockman and Posey used another sham nonprofit entity to secure a $450,571.65 donation in order to fund a purportedly legitimate independent expenditure promoting Stockman’s candidacy.  The evidence showed that the purportedly independent expenditure was in fact secretly controlled by Stockman, who directed his campaign and Posey to file false affidavits with the FEC covering up Stockman’s involvement. 

Finally, the evidence at trial demonstrated that Stockman failed to pay taxes on any of the $1,250,571.65 in fraudulently acquired donations.  In addition, during the early stages of the investigation, Stockman directed Posey to flee to Cairo, Egypt, for two and a half years so that Posey could not be questioned by law enforcement.

The FBI and IRS-CI investigated the case.  Deputy Chief Robert J. Heberle and Trial Attorney Ryan J. Ellersick of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas are prosecuting the case. 

The Department of Justice announced that it has received a court order yesterday awarding the United States $857,868 in civil penalties, along with other relief, in the Department’s immigration-related employment discrimination lawsuit against Louisiana-based Technical Marine Maintenance Texas LLC (TMMTX), which provides contract shipyard labor, and Gulf Coast Workforce LLC (GCW), a related company.  The court previously found that the companies violated the Immigration and Nationality Act (INA) by discriminating against workers based on their citizenship status during the employment eligibility verification process. 

The court’s Dec. 10 order follows its June 28 ruling that from at least January 2014 until at least July 2017, TMMTX limited the types of documentation different groups of workers could provide to establish their work authorization based on the workers’ citizenship status.  The United States’ complaint against the company, filed in July 2017, alleged that the company asked U.S. citizens to produce “IDs” and Social Security cards, while requesting immigration documents from non-U.S. citizens.  After the companies refused to comply with court procedures and orders during the litigation, the court sanctioned the companies and held both companies liable for discriminatory documentary practices. The INA prohibits employers from limiting workers’ choice of documentation to present for employment verification based on the workers’ citizenship, immigration status, or national origin.

The Dec. 10 order resolves outstanding issues about the penalties and remedies to be awarded to the United States.  In adopting the Department’s penalty recommendation, the court considered TMMTX’s and GCW’s misconduct during the litigation and the companies’ ongoing failure to submit any evidence to the court.  In addition to the $857,868 civil penalty for which TMMTX and GCW are jointly and severally liable, the court’s order yesterday granted the Department’s request that the companies train their staff on the INA and be subject to departmental monitoring and reporting requirements for three years. 

“The Civil Rights Division works tirelessly to enforce laws that protect U.S. citizens and non-U.S. citizens from discriminatory conduct in the workplace,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division.  “Today’s decision reminds employers that they must take seriously their obligations to avoid citizenship status-based discrimination in the employment eligibility verification process.” 

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 and 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.

A former procurement officer of Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA), pleaded guilty today for his role in a scheme to obstruct an investigation relating to bribes paid by the owner of U.S.-based companies to Venezuelan government officials in exchange for securing additional business with PDVSA and payment priority on outstanding invoices.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Mark Dawson of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Houston made the announcement.

Alfonso Eliezer Gravina Munoz (Gravina), 56, of Katy, Texas, who previously worked for PDVSA in Houston, Texas, pleaded guilty before U.S. District Judge Kenneth M. Hoyt of the Southern District of Texas in Houston to one count of conspiracy to obstruct an official proceeding.  Gravina is scheduled to be sentenced on Feb. 19, 2019 before Judge Gary H. Miller.  He was charged by indictment on Nov. 15.

Gravina pleaded guilty on Dec. 10, 2015 to one count of conspiracy to launder money and one count of making false statements on his federal income tax return.  Gravina’s plea agreement in that case was a cooperation plea agreement, and it contemplated the possibility that the United States would make a motion to reduce his sentence based on his cooperation.  Under the terms of the plea agreement, Gravina agreed to participate in interviews as requested by the United States, and to provide “truthful, complete and accurate information” to government agents and attorneys. 

According to admissions made in connection with Gravina’s plea in this case, after his plea in December 2015, Gravina met periodically with HSI special agents to provide information regarding corruption at PDVSA.  Despite knowing that U.S. government authorities were investigating corruption at PDVSA, and, specifically, that at the beginning of 2018 the government was focusing on bribes paid by companies controlled by an individual referred to as Co-Conspirator 1 in the indictment in this case, Gravina concealed facts about Co-Conspirator 1’s bribe payments to PDVSA officials in his interviews with the government.  In addition, Gravina informed Co-Conspirator 1 that U.S. government authorities were investigating Co-Conspirator 1, and provided Co-Conspirator 1 with information about the investigation, including the topics discussed in Gravina’s meetings with the government.  This passing of information led to the destruction of evidence by Co-Conspirator 1 and others, and to Co-Conspirator 1’s attempt to flee the country in July 2018.

Gravina becomes the latest individual to plead guilty as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.  Including Gravina, the Justice Department has announced the guilty pleas of a total of 15 individuals in connection with the investigation.

HSI Houston is conducting the ongoing investigation with assistance from HSI in Boston and Madrid, as well as from IRS Criminal Investigation.  Trial Attorneys Sarah E. Edwards and Sonali D. Patel of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case.  Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.

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

The Justice Department today announced that it has reached a settlement agreement with Walmart Inc. The agreement resolves claims that a Walmart store in Fort Worth, Texas, violated the Immigration and Nationality Act (INA) by unlawfully requesting specific work authorization documents from non-U.S. citizens based on their citizenship status.

The Department initiated an investigation after a lawful permanent resident filed a charge alleging that Walmart fired her on her first day of work because she could not fulfill a human resources employee’s request for a document issued by the Department of Homeland Security (DHS), even though she had already provided other documents sufficient to establish her work authorization.  When the worker protested her firing, a regional supervisor and hiring staff member at another nearby store incorrectly reaffirmed the unnecessary request for a DHS-issued document.  IER’s subsequent investigation concluded that the human resources employee had a practice of requesting unnecessary DHS documents from non-U.S. citizens to establish their work authorization because of their citizenship status.  The INA prohibits employers from (a) rejecting valid work authorization documents, (b) limiting workers’ choice of documentation to present for employment verification, and (c) subjecting workers to different or unnecessary documentary demands, based on the workers’ citizenship, immigration status, or national origin.

After the Department initiated its investigation, Walmart provided $1,944 in back pay to the worker and reinstated her employment.  Under the terms of the settlement, Walmart will pay a civil penalty to the United States, train staff in Fort Worth-area stores, and be subject to departmental monitoring and reporting requirements. 

“Employers should not ask employees for unnecessary work-authorization documents because of their citizenship or immigration status,” said Assistant Attorney General Eric Dreiband. “We are pleased that Walmart has agreed to work with the Department and to provide additional training to relevant employees.”

The Division’s Immigrant and Employee Rights Section (IER), formerly known as the Office of Special Counsel for Immigration-Related Unfair Employment Practices, 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; and 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 and Spanish websites.

Applicants or employees who believe they were subjected to 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.

The former president of a Texas-based non-profit pleaded guilty today for his role in a scheme to conceal the fact that a 2013 Congressional trip to Azerbaijan was funded by the Azerbaijan government.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Jessie K. Liu for the District of Columbia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.

Kemal Oksuz, aka "Kevin Oksuz," 49, and previously a resident of Arlington, Virginia, pleaded guilty to one count of devising a scheme to falsify, conceal and cover up material facts from the U.S. House of Representatives Committee on Ethics.  Oksuz will be sentenced on Feb. 11, 2019 before U.S. District Court Judge Tanya S. Chutkan for the District of Columbia.

According to admissions made in connection with his guilty plea, Oksuz lied on disclosure forms filed with the Ethics Committee prior to, and following, a privately sponsored Congressional trip to Azerbaijan.  Oksuz falsely represented and certified on required disclosure forms that the Turquoise Council of Americans and Eurasions (TCAE), the Houston non-profit for which Oksuz was president, had not accepted funding for the Congressional trip from any outside sources.  Oksuz admitted to, in truth, orchestrating a scheme to funnel money to fund the trip from the State Oil Company of Azerbaijan Republic (SOCAR), the wholly state-owned national oil and gas company of Azerbaijan, and then concealed the true source of funding, which violated House travel regulations.

A five-count indictment was returned earlier this year in the U.S. District Court for the District of Columbia and ordered unsealed in September.  Oksuz was recently extradited from Armenia where he was detained by authorities, pursuant to a warrant that was issued for his arrest.

The investigation was conducted by the FBI.  The case is being prosecuted by Trial Attorney Marco Palmieri of the Criminal Division’s Public Integrity Section, Assistant U.S. Attorney David Misler and Will Mackie of the National Security Division’s Counterintelligence and Export Control Section. Assistance in the investigation was provided by Trial Attorney Amanda Vaughn of the Public Integrity Section, Assistant U.S. Attorney Jonathan Hooks and former Assistant U.S. Attorney Michelle Bradford of the District of Columbia.  Trial Attorney Natalya T. Savransky of the Criminal Division’s Office of International Affairs handled the extradition request to Armenia.  The Office of International Affairs, along with the U.S. Department of State and cooperating Armenian authorities provided substantial assistance with the extradition.

A former member of the board of directors of a publicly traded healthcare services company was arrested at John F. Kennedy (JFK) International Airport over the weekend for allegedly participating in a wide-spread scheme to defraud investors and others out of hundreds of millions of dollars in connection with a merger transaction designed to convert the company into a private entity, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Craig Carpenito for the District of New Jersey announced. 

Pavandeep Bakhshi, 41, of the United Kingdom, is charged by complaint with one count of conspiracy to commit securities fraud and one count of securities fraud.  Bakhshi was arrested Saturday evening at JFK Airport after arriving on a flight from London.  Bakhshi’s initial court appearance is today at 2:30 p.m. EST before U.S. Magistrate Judge Leda Dunn Wettre for the District of New Jersey.

According to the complaint unsealed this weekend:

From May 2015 through September 2017, Bakhshi and co-conspirators Parmjit Parmar, aka “Paul Parmar” (“Parmar”), Sotirios Zaharis, aka “Sam Zaharis” (“Zaharis”), and Ravi Chivukula (“Chivukula”), allegedly orchestrated an elaborate scheme to defraud a private investment firm and others out of hundreds of millions of dollars in connection with the funding of a transaction to take private a healthcare services company (Company A) traded publicly on the London Stock Exchange’s Alternative Investment Market. To fund the transaction, the private investment firm put up $82 million and a consortium of financial institutions put up another $130 million.  The scheme allegedly utilized fraudulent methods to grossly inflate the value of Company A and trick others into believing that Company A was worth substantially more than its actual value.

The complaint alleges that to present a positive picture of the company’s financial wealth, the conspirators allegedly sought to raise tens of millions of dollars in the public markets, purportedly to fund Company A’s acquisitions of various operating subsidiaries.  In reality, the complaint alleges, a number of those entities either did not exist or had only a fraction of the operating income attributed to them.  The conspirators allegedly funneled the proceeds of these secondary offerings through bank accounts they controlled and used the money for a variety of purposes that had nothing to do with acquiring the purported targets. The money from one of the offerings was instead used to make it appear as if the operating subsidiary had substantial customer revenue when, in fact, the funds were simply transfers of the money that had been raised in the secondary offering, the complaint alleges.  The conspirators allegedly went to great lengths to make it appear that these funds were revenue, concocting phony customers and altering bank statements to make it appear as if the funds were coming from customers.

The conspirators allegedly:

• Created fictitious operating companies that Company A purportedly acquired in sham acquisitions;
• Falsified and fabricated bank records of subsidiary entities in order to generate a phony picture of Company A’s revenue streams;
• Generated fake income streams and phony customers of Company A and its subsidiaries; and
• Made material misrepresentations and omissions to the private investment firm and others.

The defendants’ alleged actions caused the private investment firm and others to value Company A at more than $300 million for purposes of financing the transaction to take the company private.

The alleged scheme was uncovered around September 2017, when the conspirators resigned from their positions with Company A or were terminated. On March 16, Company A and numerous of its affiliated entities filed for bankruptcy, attributing the company’s financial demise, in large part, to the fraud scheme.

The United States filed a criminal complaint against Parmar, Zaharis and Chivukula on May 16 for their alleged roles in the scheme.  Zaharis and Chivukula currently are fugitives.  The United States also filed a separate civil complaint on the same date seeking forfeiture of four properties that Parmar owns or controls, including a house in Colts Neck and three apartments in New York City.  Separately, the U.S. Securities and Exchange Commission filed a civil complaint on May 16 against Parmar, Zaharis and Chivukula.

The investigation was conducted by the FBI.  The U.S. Securities and Exchange Commission’s New York Regional Office provided assistance in the investigation.

The case is being prosecuted by Chief Paul A. Murphy of the U.S. Attorney’s Office’s Economic Crimes Unit, Assistant U.S. Attorney Nicholas P. Grippo of the Economic Crimes Unit, Assistant U.S. Attorney Sarah Devlin of the U.S. Attorney’s Office’s Asset Recovery Money Laundering Unit and Trial Attorney Leslie Lehnert of the Criminal Division’s Money Laundering and Asset Recovery Section,.

The charges and allegations contained in the complaint are merely accusations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

A federal court in Florida sentenced Eugene Marotta, 49, to 46 months in prison, followed by two years of supervised release, for his role in a mail fraud scheme that victimized seniors and other vulnerable victims, the Department of Justice announced today.  The court also ordered restitution to victims.  Marotta is due to surrender to authorities to begin his sentence on Jan. 28, 2019.

The sentence imposed by United States District Judge Beth Bloom follows a guilty plea on Sept. 24, 2018, in which Marotta admitted that he participated in a mail fraud scheme that deceived thousands of victims into sending money to claim a falsely promised $350,000 prize.  The mailings sent to victims purportedly were from a business called Art Masters LLC, d/b/a Palm Beach Liquidation Gallery (PBLG).  Marotta was the registrant of PBLG, a shell company, and was responsible for receiving payments from victims and handling other administrative responsibilities for the scheme.  In his plea, Marotta admitted that victims had in fact won no prizes and never received anything for their submitted money.  The scheme caused more than $1,000,000 in victim losses.  At sentencing, Judge Bloom noted that Marotta and his co-conspirators targeted the elderly and vulnerable.

“The Department of Justice will pursue those who defraud Americans through false promises and fraudulent schemes,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division.  “Schemes like this often target the elderly and vulnerable, and shutting them down remains a top priority for the Department.”

“The U.S. Postal Inspection Service has been at the forefront of protecting consumers from fraud schemes for many years,” said Criminal Investigations Group Inspector in Charge Delany De Leon-Colon. “Deceptive solicitations take advantage of the American public with promises of large prizes, when in reality, the scammers are the only ones winning. Investigations like this one let the American public know that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail.” 

Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, The Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past February the Department announced the largest elder fraud enforcement action in American history, charging more than 200 defendants in a nationwide elder fraud sweep.  The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act.   

Trial Attorney Ehren Reynolds of the department’s Consumer Protection Branch prosecuted this case.  The U.S. Postal Inspection Service investigated the case.

An owner of a now-defunct Miami pharmacy was sentenced today to 46 months in prison for his participation in a scheme that caused Medicare to pay $2.5 million in false and fraudulent claims for prescription drugs that were never purchased. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Gregory Sanchez, 44, of Miami Lakes, Florida, was sentenced by U.S. District Judge Ursula Ungaro of the Southern District of Florida.  Judge Ungaro also ordered Sanchez to pay $2,507,942 in restitution, jointly and severally with his co-conspirators, and to forfeit the same amount.  Sanchez pleaded guilty in September 2018 to one count of conspiracy to commit health care fraud.

According to admissions made as part of his plea agreement, Sanchez was an undisclosed co-owner of Med Health Equipment, LLC (Med Health), which purported to operate as a pharmacy.  Sanchez admitted that he and his co-conspirators used Med Health to fraudulently bill Medicare by submitting claims for prescription drugs that Med Health never purchased and never dispensed.  To carry out the fraudulent scheme, Sanchez and his co-conspirators paid and caused the payment of kickbacks to patient recruiters in exchange for the referral of Medicare beneficiaries to Med Health.  As a result of fraudulent claims submitted in connection with the scheme, Medicare paid Med Health approximately $2.5 million, Sanchez admitted.  

Five co-conspirators were charged separately in this case.  Lazaro Perez, 55, of Miramar, Florida, and Maria Estrada, 40, of Doral, Florida, both additional co-owners of Med Health, each pleaded guilty to conspiracy to commit health care fraud and were sentenced in April 2018 and August 2018 to serve 63 and 57 months in prison, respectively.  Yulieth Dominguez Gonzalez, 40, of Miami, pleaded guilty to conspiracy to receive kickbacks and was sentenced in June 2018 to serve 21 months in prison.  Rosa Menendez, 65, of Homestead, Florida, pleaded guilty to conspiracy to commit money laundering and was sentenced in October 2018 to serve 18 months in prison.  Pablo Garcia Menendez, another co-owner of Med Health, was charged by indictment in February 2018 and remains a fugitive. 

All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida.  Trial Attorney David Snider of the Fraud Section is prosecuting the case.

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

A former Information Technology professional was sentenced to 30 months in prison and three years supervised release for conducting cyberstalking and threat campaigns against multiple Washington residents, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Annette L. Hayes of the Western District of Washington.  The victims’ names are being withheld to protect their privacy.

Joel Kurzynski, 39, of Seattle, Washington, was sentenced in the U.S. District Court for the Western District of Washington by U.S. District Judge Robert S. Lasnik. 

According to admissions made in connection with his plea, Kurzynski engaged in an extensive and rapidly escalating cyberstalking campaign that targeted two individuals known to him.  The online campaign involved -- among other things -- death threats, body shaming, and hate speech. Beginning in March 2017, Kurzynski orchestrated numerous spam phone calls to Victim 1. The conduct soon escalated to fake dating profiles wherein Kurzynski portrayed Victim 1 as seeking sadomasochistic or underage relationships. These profiles contained photographs of Victim 1 and his contact information, resulting in solicitations and harassing messages directed toward Victim 1 from multiple strangers.  Kurzynski then sent several anonymous death threats to Victim 1, including the threat, “faggot. Time to die.”  At one point, Kurzynski impersonated a journalist and contacted Victim 1, claiming that an upcoming article would levy sexual misconduct allegations against Victim 1 related to Victim 1’s work with a non-profit youth organization.

Kurzysnki also admitted that in November 2017, he began registering Victim 2 for numerous weight loss and suicide prevention programs, resulting in a wave of calls and emails from entities such as Overeaters Anonymous, Weight Watchers, Yellow Ribbon Suicide Prevention, and others. Within weeks, Kurzynski started sending anonymous death threats to Victim 2, many of which referenced Victim 2’s work address. One threat claimed that he was waiting for her in the lobby, and another that said, “Looking forward to seeing you today and how much you bleed.  Don’t go to the bathroom alone.”

The U.S. Secret Service’s Seattle Field Office investigated the case with substantial assistance from the Seattle Police Department and King County Prosecutor’s Office.  Senior Counsel Frank Lin of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Francis Franze-Nakamura of the Western District of Washington prosecuted the case.

Victims of cyberstalking campaigns such as this often may be hesitant to come forward.  The Justice Department encourages individuals who may be the victims of similar schemes to contact their local law enforcement agencies to report this conduct.

A Washington, D.C. resident pleaded guilty to conspiracy to defraud the United States and aggravated identity theft on December 4, 2018, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Kelly R. Jackson, Special Agent in Charge of IRS-Criminal Investigation, Washington D.C. Field Office. The guilty plea arose from a scheme to file false tax returns in the names of unemployed individuals that fraudulently claimed refunds. Scutchings and her co-conspirators cashed or deposited more than $1 million in Treasury checks illegally obtained through the scheme.

According to court documents, Sheila Scutchings and her co-conspirators prepared false returns and then filed the returns in the names of co-conspirators and individuals in the community, whose names and Social Security numbers Scutchings and her co-conspirators obtained. Scutchings requested that the Internal Revenue Service (IRS) send the fraudulent refunds to addresses that Scutchings and her co-conspirators controlled. Included among the addresses were Scutchings’s own address and those of members of her family. Scutchings and her co-conspirators then cashed the refund checks at check cashing businesses and deposited them in various bank accounts, including a bank account in Scutchings’s name. In total, more than $350,000 of fraudulently obtained tax refund checks were deposited in Scutchings’s bank account alone.

United States District Judge Rosemary M. Collyer scheduled sentencing for March 5, 2019. Scutchings faces a maximum sentence of five years in prison on the conspiracy charge and a mandatory two years in prison on the aggravated identity theft charge.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of the Department of Treasury – Office of Inspector General and IRS – Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Thomas Koelbl and William Guappone, who prosecuted the case.

Rashad Sabree, 37, of Boston, Massachusetts, was sentenced today in federal court in the District of Maine to 17 years in prison and ordered to pay restitution after previously pleading guilty to two count of sex trafficking. In sentencing the defendant, U.S. District Court Judge John D. Levy highlighted the degree of cruelty that the defendant’s crimes involved and its impact on the victims. The sentence was announced by Acting Attorney General Matthew Whitaker, Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division, U.S. Attorney Halsey B. Frank of the District of Maine, Peter C. Fitzhugh, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Boston, and Harold H. Shaw, Special Agent in Charge, FBI Boston Division.

According to court documents, the defendant coerced two young women to engage in commercial sex acts in Maine between December 2015 and Jan. 5, 2016, by exploiting their heroin addictions, verbally abusing them, and threatening them with violence. The defendant controlled the victims by supplying them with just enough heroin to avoid opiate withdrawal, which involves severe pain and physical sickness, and then threatening to cut off their supply and cause them to suffer withdrawal if they refused to engage in commercial sex. On Jan. 5, 2016, a motorist called 911 after observing the defendant striking one of the victims while driving on I-95 towards Massachusetts, resulting in the defendant’s arrest.

"Sex trafficking is a horrific crime against the human dignity of the victims, and a strong sentence like this one is deserved," Acting Attorney General Whitaker said. "This case is particularly cruel because in addition to the defendant’s use of violence and threats, he exploited the victims’ opioid addictions to compel them to perform commercial sex acts for his profit. I want to thank U.S. Attorney Halsey Frank and the District of Maine’s Anti-Trafficking Coordination Team, HSI Boston, FBI Boston, our Maine state and local partner police agencies, and especially AUSA Julia Lipez and Special Litigation Counsel William Nolan of the Department’s Human Trafficking Prosecution Unit for their hard work on this case. I also want to thank the Good Samaritan who reported seeing the defendant strike one of the victims on I-95. Together we have achieved a measure justice for the victims and sent a message to traffickers that this Department of Justice will bring the full force of the law against them."

“This case demonstrates the important role that the public can play in helping to protect those who are vulnerable,” said U.S. Attorney Frank.  “We encourage the public to say something if they see something. Here, thankfully, a good citizen did just that.”

“Homeland Security Investigations is proud to have assisted in this investigation, a case which clearly exposes the false claim that commercial sex trafficking is a so-called “victimless crime,” said Peter C. Fitzhugh, Special Agent in Charge, U.S Immigration and Customs Enforcement’s HSI Boston. “Close law enforcement coordination in this case has allowed justice to be done to the perpetrators of these vicious crimes and to, hopefully, provide some measure of compensation for the victims.” 

“This defendant preyed on the addictions of his victims and brutally exploited them in a scheme driven by cruelty and greed,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division. “With today's sentencing, Sabree will pay the price for his crimes, while his victims continue to recover from the abuse suffered at his hands. This case demonstrates the FBI's unwavering commitment to work with our law enforcement partners to hold sex traffickers like him accountable.”

The District of Maine is one of six districts designated through a competitive, nationwide selection process as a Phase II Anti-Trafficking Coordination Team (ACTeam). ACTeams focus on developing high-impact human trafficking investigations and prosecutions involving forced labor, international sex trafficking and sex trafficking by force, fraud or coercion through interagency collaboration among federal prosecutors and federal investigative agencies.

The case was investigated by U.S. Immigration and Customs Enforcement’s HSI, the FBI, and the Biddeford Police Department, with assistance from the Maine State Police and the Sanford, Kittery, and Portland Police Departments. It was prosecuted by Assistant U.S. Attorney Julia Lipez and Special Litigation Counsel William E. Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.

Kassim Tajideen, the operator of a network of businesses in Lebanon and Africa whom the U.S. Department of the Treasury designated as an important financial supporter to the Hezbollah terror organization, pleaded guilty today to charges associated with evading U.S. sanctions imposed on him.

The announcement was made by Acting Attorney General Matthew G. Whitaker; Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; Assistant Attorney General for National Security John C. Demers; U.S. Attorney Jessie K. Liu for the District of Columbia; Special Agent in Charge Raymond Donovan of the Special Operations Division of the U.S. Drug Enforcement Administration (DEA); Special Agent in Charge Valerie A. Nickerson of the DEA’s New Jersey Field Division and Commissioner Kevin K. McAleenan of U.S. Customs and Border Protection (CBP).

Tajideen, 63, of Beirut, Lebanon, pleaded guilty before U.S. District Court Judge Reggie B. Walton in the U.S. District Court for the District of Columbia, to conspiracy to launder monetary instruments, in furtherance of violating the International Emergency Economic Powers Act (IEEPA).  Tajideen was designated by the U.S. Department of the Treasury as a Specially Designated Global Terrorist in May 2009 as a result of his provision of significant financial support to Hezbollah, which was named a Foreign Terrorist Organization by the U.S. Department of State.  This designation prohibited Tajideen from being involved in, or benefiting from transactions, involving U.S. persons or companies without a license from the Department of the Treasury.

“This Department of Justice has put a target on Hezbollah,” Acting Attorney General Whitaker said. “In January, we started the Hezbollah Financing and Narcoterrorism Team, and in October, former Attorney General Sessions named Hezbollah one of the five priority organizations for our Transnational Organized Crime Task Force.  The DEA worked for three years to bring this prosecution of a Treasury Department-designated terrorist for sanctions violations to successful completion.  I want to thank the prosecutors and agents Trial Attorney Joseph Palazzo and AUSAs Thomas Gillice, Luke Jones, Karen Seifert, Deborah Curtis, and SAUSA Jacqueline Barkett for helping us achieve this victory today. We are going to keep targeting Hezbollah and other terrorist groups and their supporters, and we are going to keep winning.”

“This guilty plea demonstrates our commitment to vigorously investigate and prosecute violations of U.S. economic sanctions,” said U.S. Attorney Liu. “Through the efforts of law enforcement here and abroad, this defendant has been held accountable for violating laws protecting our national security and foreign policy interests.”

“This is the latest example of DEA’s recent successes against Hezbollah’s global criminal support network and reflects DEA’s determination in combatting this transnational criminal organization,” said Special Agent in Charge Donovan.

 According to the statement of facts signed by Tajideen in conjunction with his plea, after his designation, Tajideen conspired with at least five other persons to conduct over $50 million in transactions with U.S. businesses that violated these prohibitions.  In addition, Tajideen and his co-conspirators knowingly engaged in transactions outside of the United States, which involved transmissions of as much as $1 billion through the United States financial system from places outside the United States.

The plea, which is contingent upon the Court’s approval, calls for an agreed-upon sentence of 60 months in prison. The plea agreement also calls for Tajideen to pay $50 million as a criminal forfeiture in advance of his sentencing.  Tajideen has been detained since extradition to the United States in March 2017 after his arrest overseas.  Sentencing is scheduled to occur on Jan. 18, 2019.

This guilty plea is the result of a three-year investigation by the DEA’s Special Operations Division (SOD)/Counter Narcoterrorism Operations Center (CNTOC) and the DEA New Jersey Field Division, with the assistance by CBP. Assistance was provided by the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

Tajideen’s case falls under DEA’s Project Cassandra, which targets Hezbollah’s global criminal support network - dubbed by the DEA as the Business Affairs Component (BAC) - that operates as a logistics, procurement and financing arm for Hezbollah.  This investigation and others are part of the Department of Justice’s Hezbollah Financing and Narcoterrorism Team (“HFNT”), a component of the Department’s Transnational Organized Crime initiative (TOC).  The HFNT was formed in January 2018 to ensure an aggressive and coordinated approach to prosecutions and investigations, including Project Cassandra cases, targeting the individuals and networks supporting Hezbollah.  Comprised of experienced international narcotics trafficking, terrorism, organized crime, and money laundering prosecutors and investigators, the HFNT works closely with partners like the DEA, the Department of the Treasury, and the Federal Bureau of Investigation, among others, to advance and facilitate prosecutions of Hezbollah and its support network in appropriate cases.

This case is being prosecuted by the Criminal Division’s Money Laundering and Asset Recovery Section, U.S. Attorney’s Office for the District of Columbia, the DEA and CPB’s National Targeting Center Counter Network Division, with assistance from the Criminal Division’s Office of International Affairs and the Counterintelligence and Export Control Section of the National Security Division.

The case is being prosecuted by Trial Attorney Joseph Palazzo of the Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys Thomas A. Gillice, Luke Jones, Karen Seifert and Deborah Curtis and Special Assistant U.S. Attorney Jacqueline L. Barkett of the U.S. Attorney’s Office for the District of Columbia.

The Justice Department today filed a lawsuit alleging that St. Bernard Parish, Louisiana, has discriminated against persons with disabilities in violation of the Fair Housing Act. The lawsuit, filed in the U.S. District Court for the Eastern District of Louisiana, alleges that St. Bernard Parish failed to provide reasonable accommodations to its zoning ordinance by repeatedly refusing to allow two proposed group homes for children with disabilities to operate. The two group homes had satisfied all of the relevant licensing requirements of the State of Louisiana.

“The Fair Housing Act prohibits municipalities from applying their zoning laws in a manner that discriminates against persons with disabilities,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Civil Rights Division is committed to enforcing the Fair Housing Act zealously to ensure that such discrimination against people with disabilities does not continue to occur.”

“Nondiscriminatory housing is a fundamental right for all Americans, including those with disabilities, according to the Fair Housing Act,” said U.S. Attorney for the Eastern District of Louisiana Peter G. Strasser. “Our office, along with the Department’s Housing and Civil Enforcement section, will continue to protect the rights of all citizens within our district to attain housing.”

 “It’s hard enough for individuals with disabilities to find adequate places to live without having the creation of housing that meets their needs intentionally blocked,” said Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity.  “HUD will continue to work with the Justice Department to take appropriate action anytime housing providers and others in a position to control access to housing violate the Fair Housing Act.”

This case arose when St. Bernard Parish denied reasonable accommodations to allow two group homes, which would have been licensed by the State of Louisiana, to operate in single-family neighborhoods of the Parish. The Parish’s zoning code prohibits group homes from operating in these neighborhoods. There are only 13 group homes operating throughout the State of Louisiana that serve children with disabilities in the same manner as the homes proposed in St. Bernard Parish. The two group home operators filed complaints with the U.S. Department of Housing and Urban Development (HUD) after their requests for reasonable accommodations were denied.

The lawsuit seeks a court order prohibiting St. Bernard from applying its zoning code in a manner that discriminates against persons with disabilities. The lawsuit also seeks monetary damages to compensate victims, as well as payment of a civil penalty. A related case challenging St. Bernard’s conduct was filed by the operators of the two proposed group homes. That case, Angelicare et al. v. St. Bernard Parish, is pending before the U.S. District Court for the Eastern District of Louisiana.

The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at fairhousing@usdoj.gov, or contact the Department of Housing and Urban Development at 1-800-66-9777 or through its website at https://www.hud.gov/program_offices/fair_housing_equal_opp.

The complaint is an allegation of unlawful conduct. The allegations must still be proven in federal court.

The Justice Department today announced that it has reached a settlement agreement with Mrs. Fields’ Original Cookies Inc. (Mrs. Fields), headquartered in Broomfield, Colorado. Mrs. Fields’ brands produce, distribute, and sell specialty items, including cookies, brownies, and chocolates. The settlement resolves a claim that Mrs. Fields’ production and distribution center located in Salt Lake City, Utah, violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by discriminating against work-authorized non-U.S. citizens when verifying their work authorization. 

The Department’s independent investigation concluded that, from at least March 21, 2016, to March 20, 2017, Mrs. Fields required lawful permanent residents to provide specific documentation issued by the Department of Homeland Security to prove their work authorization, while not imposing this requirement on U.S. citizens.  All work-authorized individuals, regardless of citizenship status, have the right to choose which document to present, from a range of valid documents, to demonstrate their authority to work in the United States.  The anti-discrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on employees’ citizenship status or national origin.

“Workers should not have to face discrimination because of citizenship status or national origin in the employment eligibility verification process,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division.  “We are pleased that Mrs. Fields has agreed to work with the Division and ensure that its staff is trained on the anti-discrimination provision of the INA, and we look forward to working with the company to reach this shared goal.”

Under the settlement, Mrs. Fields will pay $26,400 in civil penalties to the United States and be subject to departmental monitoring and reporting requirements.  In addition, certain employees will be required to attend training on the requirements of the INA’s anti-discrimination provision.

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 and 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.

The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in U.S. District Court in Washington, D.C., against James Dolan for violating the premerger notification and waiting period requirements of the Hart-Scott-Rodino (HSR) Act of 1976 when he acquired voting securities of Madison Square Garden Company in 2017.  At the same time, the department filed a proposed settlement, subject to approval by the court, under which Dolan has agreed to pay a $609,810 civil penalty to resolve the lawsuit.

The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo premerger antitrust review.  Federal courts can assess civil penalties for premerger notification violations under the HSR Act in lawsuits brought by the department.  The maximum civil penalty for an HSR violation, which is adjusted annually, is currently $41,484 per day.

Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint and competitive impact statement.

Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register.  Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Roberta S. Baruch, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, CC-8407, Washington, D.C. 20580.  At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.

Washington, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Mrs. Fields’ Original Cookies Inc. (Mrs. Fields), cuya sede se encuentra en Broomfield, Colorado. Las marcas de Mrs. Fields producen, distribuyen y venden artículos especiales, entre ellos galletas, brownies y chocolates. El acuerdo resuelve una queja de que el centro de producción y distribución de Mrs. Fields en Salt Lake City, Utah vulnerara la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a individuos con autorización para trabajar que no eran ciudadanos de los EE. UU. a la hora de verificar su permiso para trabajar.

La investigación independiente del Departamento concluyó que, desde al menos el 21 de marzo del 2016 hasta el 20 de marzo del 2017, Mrs. Fields obligó a residentes permanentes legales a proporcionar documentos específicos emitidos por el Departamento de Seguridad Nacional para comprobar su autorización para trabajar mientras que no impusieron tales requisitos a ciudadanos estadounidenses. Todo individuo con autorización para trabajar, independientemente de su estatus de ciudadanía, tiene derecho a elegir, dentro de una lista de documentos válidos, el que desea presentar para demostrar su autoridad para trabajar en los Estados Unidos. La disposición antidiscriminatoria de la INA prohíbe que los empleadores sometan a sus empleados a requisitos documentales innecesarios con base en el estatus de ciudadanía o la nacionalidad de origen de los mismos.

«Los trabajadores no deben ser discriminados a causa de su estatus de ciudadanía o nacionalidad de origen durante el proceso de verificación de la elegibilidad para trabajar», declaró el Fiscal General Auxiliar de la División de Derechos Civiles, Eric Dreiband. «Nos complace ver que Mrs. Fields ha acordado colaborar con la División y asegurar que su personal esté capacitado en cuanto a la disposición antidiscriminatoria de la INA. Esperamos con interés la continua colaboración de la empresa para lograr esta meta en común».

Conforme el acuerdo, Mrs. Fields pagará $26,400 en sanciones civiles a los Estados Unidos y se someterá a los requisitos de supervisión y declaración del departamento. Además, se requerirá a ciertos empleados acudir a una capacitación acerca de los requisitos de la disposición antidiscriminatoria de la INA.

La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés) de la División es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias y la intimidación.

Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para 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 personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; envíe un correo electrónico a IER@usdoj.gov o visite la página web de la IER en inglés o español.

Aquellos postulantes o empleados que creen haber sido sometidos a represalias, otros requisitos documentales por motivos de su nacionalidad de origen o su estatus migratorio o de ciudadanía; o discriminación por motivos de su nacionalidad de origen o su estatus migratorio o de ciudadanía en los procesos de contratación, despido o reclutamiento o recomendación por comisión deben llamar a la línea directa de la IER para trabajadores para pedir ayuda.

Pharmaceutical company Actelion Pharmaceuticals US, Inc. (Actelion), based in South San Francisco, California, has agreed to pay $360 million to resolve claims that it illegally used a foundation as a conduit to pay the copays of thousands of Medicare patients taking Actelion’s pulmonary arterial hypertension drugs, in violation of the False Claims Act, the Justice Department announced today. 

When a Medicare beneficiary obtains a prescription drug covered by Medicare, the beneficiary may be required to make a partial payment, which may take the form of a copayment, coinsurance, or a deductible (collectively “copays”).  These copay obligations may be substantial for expensive medications.  Congress included copay requirements in the Medicare program, in part, to serve as a check on health care costs, including the prices that pharmaceutical manufacturers can demand for their drugs. 

Under the Anti-Kickback Statute, a pharmaceutical company is prohibited from offering or paying, directly or indirectly, any remuneration—which includes money or any other thing of value— to induce Medicare patients to purchase the company’s drugs.  This prohibition extends to the payment of patients’ copay obligations. 

Actelion sells a number of pulmonary arterial hypertension drugs, including Tracleer, Ventavis, Veletri, and Opsumit (the “Subject Dugs”).  The government alleged that Actelion used a foundation, which claims 501(c)(3) status for tax purposes, as an illegal conduit to pay the copay obligations of thousands of Medicare patients taking the Subject Drugs and to induce those patients to purchase them, because it knew that the prices Actelion set for the Subject Drugs could otherwise pose a barrier to those purchases.  From 2014 to 2015, Actelion made donations to the foundation, which, in turn, used those donations to pay copays of patients prescribed the Subject Drugs.  The government alleged that Actelion routinely obtained data from the foundation detailing how much the foundation had spent for patients on each Subject Drug; it then used this information to decide how much to donate to the foundation and to confirm that its contributions were sufficient to cover the copays of only patients taking the Subject Drugs.  The Government further alleged that Actelion engaged in this practice even though the foundation had warned the company against receiving such information.  The Government also alleged that, meanwhile, Actelion had a policy of not permitting Medicare patients to participate in its free drug program, which was open to other financially needy patients, even if those Medicare patients could not afford their copays for the Subject Drugs.  Instead, to generate revenue from Medicare and induce purchases of the Subject Drugs, the government alleged that Actelion referred such Medicare patients to the foundation, which allowed the patients copays to be paid and resulted in claims to Medicare for the remaining cost.   

 “This settlement, like prior settlements concerning similar misconduct, makes clear that the government will hold accountable companies that pay illegal kickbacks,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division.  “Pharmaceutical companies cannot increase drug prices while engaging in conduct designed to defeat mechanisms put in place to check such prices and then expect Medicare to pay for the ballooning costs."

“Using data from CVC that it knew it should not have, Actelion effectively set up a proprietary fund to cover the co-pays of just its own drugs,” said United States Attorney Andrew E. Lelling for the District of Massachusetts. “Such conduct not only violates the anti-kickback statute, it also undermines the Medicare program’s co-pay structure, which Congress created as a safeguard against inflated drug prices. During the period covered by today’s settlement, Actelion raised the price of its main PAH drug, Tracleer, by nearly 30 times the rate of overall inflation in the United States.”

“Today’s settlement against Actelion is a victory for the public and underscores the FBI's commitment to safeguarding the financial integrity of the Medicare program,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Simply put, the goal of the FBI's Health Care Fraud program is to ensure that patients receive the appropriate treatments and therapies according to their medical needs, without corrupt or profit-driven influence of drug manufacturers.”

“Kickback schemes can undermine our healthcare system, compromise medical decisions, and waste taxpayer dollars,” said Phillip Coyne, Special Agent in Charge, Office of the Inspector General of the Department of Health and Human Service’s Boston Regional Office.  “We will continue to hold pharmaceutical companies accountable for subverting the charitable donation process in order to circumvent safeguards designed to protect the integrity of the Medicare program.”

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

The investigation was conducted by the Justice Department’s Civil Division and the U.S. Attorney’s Office for the District of Massachusetts, in conjunction with the Department of Health and Human Services, Office of Inspector General; and the Federal Bureau of Investigation. 

On June 16, 2017, after the conduct alleged in today’s settlement agreement, Johnson & Johnson acquired Actelion.  The claims resolved by the settlement are allegations only; there has been no determination of liability. 

Today, Acting Attorney General Matthew G. Whitaker hosted the 2018 Project Safe Neighborhoods (PSN) National Conference’s Award Ceremony in Kansas City, Missouri, to recognize individuals, task forces, and organizations for their dedication and contribution to the success of PSN.

"Project Safe Neighborhoods is making our prosecutions more targeted and more effective—and that makes the American people safer," said Acting Attorney General Whitaker. "Today the Department recognizes 16 examples of those who go above and beyond the call of duty in using PSN to reduce violent crime. We had a lot of impressive nominees, but even with tough competition, these 16 stood out. I want to thank each one of them for their service and congratulate them on a job well done."

This year, 16 awards were presented in six categories:

The award for Outstanding Individual Contribution to the PSN Program is the Department’s award to those in law enforcement who individually pioneered this frontier of justice.

Robert C. Troyer

Former United States Attorney

District of Colorado

Former United States Attorney Robert Troyer helped create and lead one of the very first Crime Gun Intelligence Centers (CGICs) in the country. His tireless support of the CGIC in Denver, Colorado, was instrumental to its success. As a result of Troyer’s vision, leadership, and commitment to violent crime reduction, two additional CGICs are now operating in Colorado, enabling quick reaction to and revealing new connections between gun crimes being committed in the most violent places in the state. The CGIC approach Troyer pioneered serves as a national model for effectively using NIBIN, gun shot detection systems, training and other intelligence to identify current shooters and ensure their prosecution in the most appropriate jurisdiction. The ATF now has CGICs in each of its 25 field offices and Troyer has consulted with U.S. Attorneys’ offices nationwide as they have integrated CGICs into their PSN programs. His effort and energy for this violent crime reduction strategy have had a significant impact not only in the District of Colorado, but nationwide.

Captain Paul Lusczynski

Violent Crime Bureau

Tampa Police Department

Middle District of Florida

In response to a significant rise in shootings in Tampa, Florida, Captain Paul Lusczynski designed and implemented a strategy known as the Violent Impact Player (VIP) program, which has had a direct and substantial impact on driving down violent crime in Tampa. Captain Lusczynski studied lessons learned from targeted and prioritized enforcement strategies throughout the United States and tailored them to Tampa’s unique needs. Using a broad set of criteria, including violent crime indicators such as criminal history, known criminal use of violence and weapons, and gang membership, the Tampa Police Department (TPD) identified the most violent offenders in its jurisdiction. At a weekly meeting, federal, state, and local law enforcement discuss the individuals and screen cases for the most appropriate jurisdiction for prosecution. A 2017 study credits the VIP program with a 7.9% drop in violent crime. Captain Lusczynski created a culture of interagency cooperation that yielded tremendous results for the community and the Tampa VIP model is now being replicated in other cities. Captain Lusczynski has displayed leadership, vision, and devotion to duty that are in keeping with the highest traditions of American law enforcement.

Didi Nelson

Law Enforcement Coordination Manager

Northern District of Georgia

Since the beginning of PSN in 2001 through its reinvigoration in 2017, Didi Nelson has been a guiding light for PSN in the Northern District of Georgia and beyond. Nelson – who has more than 30 years of service to the Department – has worked to implement the PSN program faithfully and consistently since its inception. She is the bridge between the Department and local and state law enforcement whose partnership is so crucial for PSN’s success. Nelson has also worked to create strong relationships with the community and has been instrumental in creating connections with non-traditional partners, such as social service providers, faith-based organizations and other groups. As a result of her commitment, credibility, and extensive knowledge of PSN, the district’s reinvigorated PSN strategy has expanded rapidly since the fall of 2017 and spread the USAO’s anti-violence initiatives into every county of the District. Nelson continues to impact the PSN program nationwide by serving as an expert to other Districts in the country that are seeking to develop effective PSN strategies of their own.

Trisha Stein

Director of Administrative Operations

City of Detroit Police Department

Eastern District of Michigan

Trisha Stein has played an important coordination role in the Eastern District of Michigan’s PSN program. Stein is responsible for interfacing with PSN task force members, fiscal agents, and her internal administration to ensure the Detroit PSN program is successfully executed. Stein interfaces with agency heads, program managers, and community and faith leaders to ensure everyone remains focused on the goals of PSN. Stein is also responsible for local oversight and leveraging resources from most grant-funded programs. She is familiar with all the grants awarded to the city and leverages those resources so that the outcome is a force multiplier for all programs. There is no doubt Stein’s efforts to oversee, coordinate and facilitate the moving parts of PSN played a key role in the program’s success. Homicides are at the lowest level in 50 years, and fatal and non-fatal shooting are down by over 30%.

Gary Mervis

Founder

Camp Good Days and Special Times/Partners Against Violence Everywhere

Western District of New York

Gary Mervis changes lives. After his daughter was diagnosed with cancer, he single-handedly founded what is today one the largest and most successful camps for sick children in the world. Following his daughter’s death, Mervis decided to broaden his reach in helping others. Using the many connections he made while creating Camp Good Days and Special Times, Mervis set out to curb the growing violent crime problem in Rochester by establishing Partners Against Violence Everywhere (PAVE). Through his leadership, partners from state and federal law enforcement, business alliances, faith-based groups, education leaders, hospitals, and social services  were brought together to effect positive change in the community. PAVE has served as the platform on which Rochester’s violent crime reduction projects have launched, including the long-running Project Exile effort. For over 20 years, Mervis has led the Project Exile Board and ensured that it remains the model for how law enforcement and the community can work together to effectuate lasting change. The PAVE/Exile board and partnerships formed the base for the original PSN efforts and have been supporting the program, and its reinvigoration, ever since.

Sarah Wannarka

Chief of Major Crimes

San Antonio Division

Western District of Texas

Since the 1990s, people living in the east side of San Antonio have fallen victim to the growing swell of gang violence. The Bloods and Crips openly fought for control of the residential area through drive by shootings and murders. In the summer of 2017, the violence peaked when a 4-year old was shot and killed while playing video games with his 8-year old brother in their own home. Assistant United States Attorney Sarah Wannarka indicted members of the gang involved in that shooting. She also led a federal and state multi-agency law enforcement effort that fought to return peace to this neighborhood. Her efforts resulted in a federal indictment against 21 members of the Bloods and Crips, 189 state and local arrests, the seizure of 67 firearms, and nearly $200,000 worth of drugs being taken off the streets. In addition to her impactful caseload, AUSA Wannarka  leads  the PSN efforts in the District and ensures seamless coordination between the many task force members. She has engaged prevention service providers to participate in the program and spends countless hours of her personal time in community outreach activities, connecting the communities to the PSN program and to law enforcement more generally.

The award for Outstanding Overall Partnership/Task Force is the Department’s award to the groups of individuals that made the greatest impact for Project Safe Neighborhoods as we continue to bring peace to pair with the prosperity of all Americans.

Project EJECT Task Force

Southern District of Mississippi

In December 2017, the Southern District of Mississippi launched its PSN task force to combat violent crime occurring in Jackson, MS. The United States Attorney’s Office, ATF, DEA, FBI, and VSMS joined forces with HSI, the Jackson Police Department, Hinds County District Attorney’s Office, Mississippi State Crime Laboratory, city councilmen, community leaders, non-profits, and faith leaders to form Project EJECT, a holistic, multi- disciplinary approach to combating violent crime. EJECT stands for “Empower Jackson Expel Crime Together.” Project EJECT employs four platforms: prevention; prosecution; reentry and rehabilitation; and awareness. In addition to undertaking significant enforcement efforts, members of the task force conduct prevention activities at schools and non- profits, and engage the  community  through  regular town hall meetings. This coordinated and comprehensive approach helped reduce violent crime in the city of Jackson by over 16% in the last year.

Dallas PSN Task Force

Northern District of Texas

Formed in April 2018, the Dallas PSN Task Force is comprised of more than 60 individual officers and agents from at least 11 different local and federal partners, local government and schools, and more than 15 community stakeholder organizations. The goals of the Task Force are threefold: (1) to eliminate violence in the target area and reduce violence in Dallas as a whole; (2) to engage the community in the effort; and (3) to develop effective strategies for re- entry and prevention particularly as it relates to youth in the area. The law enforcement subcommittee of the Task Force has developed a close partnership through weekly meetings and close collaboration, which has led to over 100 arrests of violent individuals. In addition, over the last six months alone, the Task Force and its community engagement subcommittee have participated in over 40 community meetings and events designed to engage the community, including a large unity festival that served more than 1,000 citizens. The Task Force has also engaged in extensive outreach at schools and with local businesses and has translated its PSN materials into eight different languages due to the diverse population in the target enforcement area. The Task Force holds a monthly reentry night, where its  members  have  met with approximately 300 people returning from prison or beginning probation. Importantly,  the  Task Force has opened new lines of communication between residents and law enforcement in the target enforcement area that did not previously exist.

The award for Outstanding Local Prosecutor’s Office/Local Prosecutor is the Department’s award to the offices and attorneys that set the greatest example that we should consummately strive to emulate.

West Valley City Prosecutor’s Office

District of Utah

Since the inception of PSN, the West Valley City Prosecutor’s Office has dedicated a full-time prosecutor as a Special Assistant United States Attorney (SAUSA) to exclusively prosecute federal firearm cases. The West Valley City Prosecutor’s Office SAUSA has successfully prosecuted hundreds of federal violent crime cases. Through strategic enforcement, the Office has focused its efforts on  the most violent criminals, especially violent gang members, domestic violence abusers, and armed drug traffickers. The efforts of the Office have led    to the removal of the most violent armed criminals from West Valley. And for most of the 18 years, West Valley has not received any federal compensation for the dedicated SAUSA. The West Valley SAUSA has always been one of the top PSN producers for the District of Utah, and the district’s PSN success is, in large part, a result of the dedication of the West Valley City Prosecutor’s Office.

Branden B. Miles

Weber County Prosecutor’s Office

District of Utah

Branden Miles is one of the longest tenured SAUSAs in the District of Utah and has made one of the greatest contributions to the Utah’s PSN program.  As a state prosecutor in the Weber County Attorney’s Office, Miles was first cross-deputized as a SAUSA    in 2007. Since that time, he has worked tirelessly to prosecute dangerous firearm offenders, armed drug traffickers, and violent gang members. Miles, who currently serves as Chief Criminal Deputy in his office, has mentored five of his colleagues in becoming productive federal gun prosecutors. Most recently, he played an instrumental role in establishing the target enforcement area in downtown Ogden, Utah, shepherding crucial components  of  local,  state, and federal law enforcement in a collaborative and strategic approach to reducing violent crime in this area. Miles’s work has  made  a  significant  impact on northern Utah’s violent crime problems and has resulted in extricating many of the most violent and dangerous criminals from this community.

The award for Outstanding Local Police/Sheriff Department Involvement is the Department’s award to the officers and departments that have laid the groundwork and spent time in the trenches fighting violent crime in the field, so others can fight it in the courtroom.

Wilmington Police Department

District of Delaware

The West Center City project is at the heart of Delaware’s PSN efforts. In 2017, Wilmington Police Department (WPD) began working with local and federal agencies to achieve a common goal: to remove violent actors from the target neighborhood and improve residents’ quality of life. A newly-established patrol unit conducted foot patrols and implemented community policing strategies. Officers worked with city agencies to shut down nuisance properties and provide other services to improve residents quality of life such as collecting garbage and cutting down tree branches. WPD officers worked with federal law enforcement to arrest drug dealers selling openly and to investigate shootings and murders. WPD has also established a “Real Time Crime Center” to support data-driven policing strategies. These efforts have made Wilmington safer for everyone. The WPD has reduced homicides by 33%, shootings by over 70%, burglaries by 31%, and rapes by 100% in the target neighborhood.

West Palm Beach Police Department

Southern District of Florida

The West Palm Beach Police Department’s commitment to the core principles of the reinvigorated PSN has had, and continues to have, a dramatic effect in the Southern District of Florida. West Palm Beach officers serve full time as task force officers with ATF, DEA, and FBI to combat violent crime. In 2018, the West Palm Beach Police Department created a “Real Time Crime Center” that uses intelligence from a number of sources to generate current and actionable law enforcement leads. In addition to enforcement activity, West Palm Beach PD has also made a commitment to community engagement, which successfully built bridges between law enforcement and the communities they serve. The West Palm Beach’s community engagement initiatives are extensive, and include not only national programs, but also local programs like the “R.I.P.” program that interacts weekly with juvenile offenders arrested for gun and violent crimes, and “Cops and Scholars,” which champions kids in vulnerable communities. West Palm Beach PD also serves as a partner to many outside organizations and programs. All of these efforts are contributing to the success of PSN in this community.

The award for Outstanding Community Involvement is the Department’s award to the regular citizens who saw a need for action and filled that need with their every effort. They too set an example and prove a point that Project Safe Neighborhoods is not something top-down, but rather bottom-up.

Better Family Life Initiative, James Clark

Vice President Community Outreach

Eastern District of Missouri

James Clark is the Vice President, Community Outreach, for Better Family Life, Inc. (BFL), a community development organization that promotes positive change through cultural, economic, and educational programs. When the reinvigorated PSN  program was launched in the Eastern District of Missouri, Clark readily joined the U.S. Attorney’s violent crime reduction working group. Among his numerous contributions to PSN, Clark greatly expanded the BFL’s Gun Violence De-escalation Program.

The goal of the de-escalation program is to prevent violent confrontations between feuding parties, and thereby save lives. The program involves identifying situations in which there  is  an  impending  threat  of violence involving two or more adversaries. Community members notify  BFL  of  feuds  and other impending altercations; BFL also learns about feuds from members of the St. Louis Metropolitan Police Department and the St. Louis County Police Department. Upon learning of a feud, Clark dispatches trained staff members to investigate the  dispute. BFL identifies persons who have influence in  the lives of the combatants, including family members, coaches, clergy, or anyone who has influence over the adversary. With the help of this group, Clark and BFL provide conflict resolution assistance to mediate and de-escalate the dispute. BFL has successfully thwarted over 50 conflicts involving ongoing, escalating gun battles between combatants in the St. Louis area, with its results verified and studied by Washington University’s Brown School of Social Work.

Clark’s and BFL’s efforts to reduce gun violence through community involvement has been noteworthy and effective in other areas as well. For example, BFL organizes monthly summer “Clean Sweeps” where neighbors, members of law enforcement, and local construction companies clear and clean-up vacant and abandoned properties in distressed areas. Finally, Clark organized with the United States Attorney’s Office and Crime Stoppers over 40 public service announcements aimed at reducing violent crime which are aired on local radio.

Omaha 360° Violence Prevention Collaborative, Willie Barney

Executive Director

District of Nebraska

The Omaha 360° Violence Prevention Collaborative serves as a model of how PSN and federal prosecutors can partner with community-based efforts to enhance the law enforcement response to violent crime. The success of this program has dramatically decreased gun violence in Omaha and demonstrates that partnerships with non-criminal justice can greatly assist enforcement efforts through comprehensive prevention and community support.

Omaha 360°, a group of more than 400 organizations and thousands of participants, grew out of the Empowerment Network founded in 2006 by Willie Barney. He began by engaging members of his church and community and facilitating small group meetings with concerned citizens to address gun violence and improve the quality of life in the community. Barney also met with the Omaha Police Department (OPD) and worked to build a stronger relationship between OPD and the community. Today these stakeholders meet on a weekly basis and work together to address the root causes of gun violence and develop positive opportunities as alternatives to violence. Police- community relations  have  significantly  improved  as a result of this collaboration and OPD’s strong community engagement programs. These efforts have been key to violence reduction and community- building resulting in increased calls for service, witness cooperation, and clearance rates.

Omaha 360° has fully embraced its partnership with the United States Attorney’s Office. This partnership allows the United States Attorney’s Office to focus on its primary role—enforcing the law and, by doing so, improving public safety—while supporting other individuals and organizations to address the factors that contribute to violent crime. The combination of these efforts has made a significant impact in Omaha and is an integral component of the PSN effort.

The award for Innovative Prevention/Reentry Strategy is the Department’s award to those who made an impact to reduce offenses, preventing crime by mitigating risk, and preventing recidivism on the part of those reintegrating into society.

Offender Alumni Association

Northern District of Georgia

The Offender Alumni Association (OAA) organizes support groups for high-risk adult felons being released from custody to provide peer-to-peer support, help them solve dilemmas, and connect them with resources.  The organization is made up  of former offenders who are uniquely motivated and committed to helping those about to be released from prison. OAA’s model recognizes that continuous and consistent support is crucial to help prevent recidivism, accordingly, OAA meets with offenders while they are still incarcerated, and maintains relationships with them and their families to connect them with networks of support in their communities upon release. OAA has supported more than 650 offenders returning to the community.  In  2018, OAA expanded in support of the Northern District  of Georgia’s PSN strategy and now partners with the USAO, state and federal agencies, and other providers to support high-risk adult offenders being released from custody into PSN target enforcement areas.

The Justice Education Center, Inc.

District of Connecticut

The USAO for the District of Connecticut and The Justice Education Center developed the Career Pathways Technology Collaborative, a program designed to provide skilled vocational, credentialed training to at-risk youth, 16-24 years of age. Career Pathways enables young people to acquire credits toward their high school diploma or GED, obtain entry or competitive level employment, or seek further technology certifications through union or community college programs. This Collaborative is deeply community-based, as the Justice Education Center has developed partnerships with  local  Boards of Education, community colleges, workforce development boards, and unions. Of the 33 youths enrolled in the program since 2015, over 70% received credit towards graduation. The success of the partnership between the District of Connecticut and The Justice Education Center has fostered the development of new investments in education, risk reduction and career readiness – with PSN funds serving as critical leverage for additional state, municipal and foundation support.

Today, Acting Attorney General Matthew Whitaker issued the following statement on the National Day of Mourning for President George H.W. Bush: "President George H.W. Bush was a patriot who dedicated his life to serving this great nation," Acting Attorney General Matthew Whitaker said. "As President, he was a strong supporter of law enforcement and helped to lay the foundation for almost three decades of declining crime in America. This was an historic achievement that changed millions of American lives. For me personally, he was the first presidential candidate that I ever voted for. His example has always been an inspiration to me--and it always will. This Department of Justice is determined to continue his legacy of supporting law enforcement officers and protecting the right to be safe. President Bush’s memory will live on, not just in the history books, but in the hearts of a grateful nation. "

A federal jury in the Eastern District of Virginia convicted a Honduran man yesterday of leading a drug trafficking organization that helped smuggle thousands of kilograms of cocaine into the United States over the last decade. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Acting Special Agent in Charge Scott W. Hoernke for the Drug Enforcement Administration’s (DEA) Washington Field Division, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement.

Arnulfo Fagot-Maximo, 57, was convicted of conspiracy to distribute cocaine knowing that the cocaine was to be unlawfully imported into the United States following a five-day trial before U.S. District Judge Liam O’Grady.  Fagot-Maximo had been extradited to the United States following his indictment in the Eastern District of Virginia.  According to court records and evidence presented at trial, Arnulfo Fagot-Maximo was the leader of a drug trafficking organization based in the La Mosquitia region of the Departamento Gracias a Dios, Honduras. His organization was a critical link between Colombian cocaine suppliers and other major Honduran traffickers. For over a decade, Fagot-Maximo received cocaine from Colombia along the Mosquitia coast by “go fast” boats, small aircraft, and submersible vessels in quantities ranging from a few hundred to several thousand kilograms per delivery. Most of this cocaine was transferred to the Montes Bobadilla organization in Francia, Honduras, where it was received by other traffickers. Eventually the cocaine was transported by land through Honduras and Guatemala, and it was then delivered to Mexican cartels for importation into the United States. Fagot-Maximo received tens of millions of dollars in U.S. currency for the sale and delivery of this cocaine. 

He faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison when sentenced on March 29, 2019. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

The case was investigated by the DEA as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Harpoon through DEA’s HIDTA Task Force in Annandale Virginia. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

Assistance in the investigation and prosecution was provided by the U.S. Attorney’s Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida, as well as assistance from the U.S. Coast Guard, and the Honduran National Police. Trial Attorney Anthony T. Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys James L. Trump and Thomas W. Traxler of the Eastern District of Virginia are prosecuting the case.  The Criminal Division’s Office of International Affairs assisted with the extradition in this matter.

Two Miami, Florida residents pleaded guilty today to health care fraud charges for their roles in an $8.6 million health care fraud scheme.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Miami Air and Marine Branch Director Martin G. Wade of the U.S. Customs and Border Protection (CBP) Air and Marine Operations made the announcement.

Alexander Ros Lazo, 54, an owner and operator of T.L.C. Health Services Inc., a home health agency, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Jose E. Martinez of the Southern District of Florida.  Misleidy Ibarra, 46, also of Miami, a licensed massage therapist, pleaded guilty before Judge Martinez to one count of conspiracy to commit health care fraud.  Sentencing has been scheduled for Feb. 5, 2019 before Judge Martinez. 

As part of his guilty plea, Ros Lazo admitted that he paid kickbacks and bribes to his co-conspirators in exchange for home health services prescriptions and the referral of Medicare beneficiaries to T.L.C. Health Services, a company based in Miami.  He further admitted that he and his co-defendant, Misleidy Ibarra, agreed with their co-conspirators to commit health care fraud by arranging for Ibarra to render therapy services on behalf of licensed therapists despite the fact that they knew she was not licensed to render the physical and occupational therapy services to the Medicare beneficiaries and billed Medicare for those services.   As part of her guilty plea, Ibarra admitted to conspiring with Ros Lazo to commit health care fraud by rendering physical therapy services to Medicare beneficiaries when Ibarra was not licensed to provide these services.  Ros Lazo admitted that as a result of the fraudulent claims, Medicare paid $8.6 million in benefits that it otherwise would not have.  Ros Lazo was charged along with Ibarra in an indictment returned on June 21, 2018. 

The case was investigated by the FBI, HHS-OIG and CBP Air and Marine Operations.  Trial Attorney Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Yisel Valdes of the Southern District of Florida are prosecuting the case. 

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

A Colombian national was sentenced to 180 months in prison for his role in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.

Fredis Valencia Palacios, 30, a Colombian national extradited to the United States in April 2018 to face these charges, previously pleaded guilty to one count of conspiracy to encourage and induce aliens to come to the Unites States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Valencia Palacios was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered him to serve three years of supervised release following his prison sentence.

“When Valencia Palacios conspired to smuggle illegal aliens into the United States, he launched them on a deadly journey during which one was sexually assaulted and murdered, another also was brutally murdered, and a third was left for dead in the water,” said Assistant Attorney General Benczkowski.  “Today’s sentence once again demonstrates the Department of Justice’s commitment to hold accountable those who violate U.S. immigration laws.”

“The 15-year federal prison sentence imposed today against Fredis Valencia Palacios is a reminder to all that the high seas do not protect criminals from prosecution in the United States,” said U.S. Attorney Fajardo Orshan.  “When human smugglers knowingly plan to violate U.S. immigration laws and expose illegal aliens to grave danger during their arduous journey, the U.S. Attorney’s Office, with the assistance of our domestic and foreign law enforcement partners, stand ready to prosecute the offenders on American soil.”

“This case highlights the tragic perils involved with illegal alien smuggling,” said HSI Miami Special Agent in Charge Mark Selby.  “While exploiting human cargo for pure greed, this was a horrific tragedy resulting in sexual assault and two deaths.  HSI continues to aggressively target and dismantle transnational criminal organizations that profit from the suffering of individuals.”

According to the court record, including agreed-upon factual proffers, since 2014, Valencia Palacios, and his co-defendants, including Jhoan Stiven Carreazo Asprilla and Carlos Emilio Ibarguen Palacios, organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States.  In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami. 

On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by Valencia Palacios to a boat captained by his co-defendants to begin their journey to Panama. During the boat trip, the co-defendants pulled a knife and a gun on the victims.  One of the co-defendants tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard the co-defendants sexually assault the female victim before cutting her throat and murdering her.  The surviving victim also heard the co-defendants cut the other male victim’s throat, killing him.  While that was happening, the survivor managed to free himself and escape by swimming away.  The co-defendants left him for dead. 

The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy.  The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water.  The co-defendants were subsequently located and arrested.

Carreazo Asprilla and Ibarguen Palacios are scheduled to be sentenced on Jan. 4, 2019 before U.S. District Judge Martinez.

This case was investigated by HSI Miami, with assistance from the HSI Bogota field office.  The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation.  The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition.  The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities. 

Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida prosecuted the case.

A jury sitting in the Eastern District of Pennsylvania convicted longtime political operative Kenneth Smukler, 58, of Villanova, Pennsylvania, today on charges of making and concealing illegal campaign contributions in two Congressional primary elections, and of obstructing justice in an investigation by the Federal Election Commission (FEC), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney William M. McSwain for the Eastern District of Pennsylvania.

“Today’s convictions demonstrate the Department of Justice’s commitment to ensuring a level playing field in the financing of federal elections,” said Assistant Attorney General Benczkowski. “We will hold accountable those who violate campaign finance and other laws designed to protect the fairness and transparency of our democracy.” 

“Smukler was the mastermind of multiple crooked political schemes,” said U.S. Attorney McSwain.  “He showed a true pattern of deception by misusing funds and lying to corrupt the entire political process. The only way to guarantee open and fair elections is to have everyone play by the same rules.  Smukler ignored those rules and broke the law so that his candidates could try to win at all costs.  We are grateful that the jury saw through his lies and held him accountable for his widespread criminal conduct.”

The jury found Smukler guilty of conspiracy to violate federal law, making and causing unlawful campaign contributions and causing false statements to the FEC in connection with a 2012 congressional primary campaign in a Philadelphia-area Congressional district.  The jury further found Smukler guilty of making and causing unlawful campaign contributions, causing the filing of false reports to the FEC concerning contributions and expenditures, causing false statements to the FEC in connection with a 2014 congressional primary campaign in another Philadelphia-area Congressional district, and obstructing an FEC investigation.

In 2012, Smukler engaged in a conspiracy to make a concealed payment of $90,000 to Congressional candidate and former Philadelphia Municipal Judge Jimmie Moore to get Judge Moore to drop out of the primary election race.  Smukler, who worked for another candidate, orchestrated the payment of the money through his own companies, a shell company of Judge Moore’s campaign manager, Carolyn Cavaness, and another campaign consultant, D.A. Jones.  Judge Moore, Cavaness, and Jones all have pleaded guilty separately.

From 2014 through 2015, Smukler, as a campaign manager, also made, caused, and concealed excess and conduit contributions and engaged in a falsification and obstruction scheme involving a different Congressional candidate.  The excess contributions came from associates of Smukler and were funneled through two of Smukler’s consulting companies.  The conduit contributions were routed through another political consultant and the candidate.

The jury found that in or about April 2014, Smukler became aware that the campaign was running out of funds that it could spend on primary election expenses.  Smukler nevertheless directed the campaign to continue paying for goods and services associated with the primary election.  In or about May 2014, one of Smukler’s companies made a $78,750 payment to the campaign that was used to pay for primary election expenses.  Smukler falsely told the campaign that this money came from a “segregated media account,” when in fact the payment was funded by an associate of Smukler’s and therefore constituted an illegal campaign contribution. 

Moreover, after Smukler’s candidate lost the primary election, the campaign did not have sufficient funds to repay the contributions that the campaign had received for the general election.  To conceal this shortfall, Smukler funneled illegal contributions totaling $150,000 from an associate to the campaign through two of Smukler’s consulting companies.  Smukler falsely told the campaign that these payments were refunds of money that had been “escrowed” in Smukler’s companies for general election expenses, when, in fact, the money had come not from any such account but from Smukler’s associate, and the money could not have been “escrowed” campaign funds because Smukler’s companies had already spent a significant portion of the funds they had received from the campaign.

Smukler further caused the campaign to falsely characterize the payments from his companies as refunds in FEC reports and in a letter to the FEC from unwitting campaign counsel, which led the FEC to dismiss a pending complaint against the campaign by another candidate in the primary.

The jury also convicted Smukler of making unlawful conduit contributions to the campaign in 2014, through Jones, and again in 2015 through the candidate herself. 

Judge Jan E. DuBois set sentencing for March 13, 2019.

The case was investigated by the FBI and prosecuted by Richard C. Pilger, Director of the Election Crimes Branch of the Public Integrity Section of the Criminal Division; Rebecca Moses, Trial Attorney of the Public Integrity Section and by Assistant U.S. Attorney Eric L. Gibson of the Eastern District of Pennsylvania.

The former chief executive officer of FutureNet Group Inc., an information technology company, was sentenced today to 12 months in prison followed by one year of supervised release and a fine in the amount of $10,000 for his role in orchestrating a scheme to bribe an official from the City of Detroit to obtain benefits for FutureNet.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Timothy Slater of the FBI’s Detroit Division made the announcement.

Parimal D. Mehta, 55, of Northville, Michigan, previously pleaded guilty to one count of federal program bribery before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan.

According to admissions made in connection with his plea, from 2009 through August 2016, Mehta hand-delivered more than $6,500 to Charles L. Dodd, the former Director of Detroit’s Office of Departmental Technology Services, including two cash bribes paid in the restroom of a Detroit-area restaurant in 2016.  Dodd previously pleaded guilty to bribery and was sentenced to 20 months in prison on Sept. 11, 2018.

Mehta admitted that he sought preferential treatment for FutureNet in exchange for the bribes he paid to Dodd.  Among other things, Mehta asked Dodd to cause FutureNet to be selected to fill open positions for contract personnel and to implement particular technological projects in various city departments.  Mehta also asked Dodd to supply him with confidential information regarding Detroit’s internal operations, including information regarding Detroit’s internal budgets for particular technology projects and personnel, which would benefit FutureNet in its dealings with Detroit.

The FBI’s Detroit Division investigated the case.  Deputy Chief Robert J. Heberle and Trial Attorney James I. Pearce of the Criminal Division’s Public Integrity Section are prosecuting the case. 

A Homestead, Florida man was sentenced today in federal court in Miami to 36 months in prison for surreptitiously producing and distributing pornographic audio and video recordings of himself engaging in sexual activity with multiple men.      

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan for the Southern District of Florida, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office, made the announcement today.  Deneumostier was arrested in July 2018 and has been held in custody since then.

Bryan Deneumostier, 34, a national of Peru, also known by the screen name “susanleon33326,” was sentenced today by U.S. District Judge Cecilia M. Altonga of the Southern District of Florida.  Judge Altonga also ordered Deneumostier to serve three years of supervised release following his prison sentence.  Deneumostier pleaded guilty in September 2018 to two counts of illegal interception of oral communications. 

According to admissions made in connection with his plea and evidence presented at the sentencing hearing, Deneumostier assisted in the operation of a subscription-based pornography website called “straightboyz.net.”  The site offered for streaming approximately 619 “hook up” videos that depicted sexual activity between Deneumostier and other men.  The defendant had surreptitiously made audio and video recordings of the sexual encounters, without the victims’ knowledge or consent.  In many of the videos, the individuals, at Deneumostier’s direction, wore a blindfold and restraints and could not see the defendant or the room (or recording equipment) in which they were located.  Deneumostier later sold the “hook up” videos to a third party located overseas and caused them to be posted onto the website. 

In many cases, in order to find men for his surreptitious recordings, Deneumostier would use social media accounts or Craigslist to post that he would be hosting sexual parties or encounters at his residence.  In several of these advertisements, Deneumostier would state he was either a man looking for men (m4m), a transvestite looking for men (t4m), or a woman looking for men (w4m).  In most advertisements he stated he was looking for “young sexy guys.” 

The indictment and plea agreement refer to four known victims whose identities are being withheld to protect their privacy.  Deneumostier admitted that he recorded himself engaging in sexual activity with approximately 150 men whom were featured on his website and that approximately 80 of those did not know that he was recording them; one of the victims recorded was a blindfolded 16-year-old male. 

The investigation was conducted by HSI.  Senior Trial Attorney Mona Sedky of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Cary Aronovitz of the Southern District of Florida prosecuted the case. 

The Department of Justice announced today the filing of a civil forfeiture action in the U.S. District Court for the District of Columbia seeking to forfeit and recover more than $73 million in funds associated with an international conspiracy to defraud U.S. financial institutions and to launder funds controlled by Jho Taek Low, also known as “Jho Low,” an individual who is the subject of an indictment filed in the Eastern District of New York, alleging that Low and others conspired to launder billions of dollars embezzled from 1Malaysia Development Berhad (1MDB), Malaysia’s investment development fund, and pay hundreds of millions of dollars in bribes to foreign officials, among other things.

The announcement was made by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Assistant Director in Charge William F. Sweeney Jr. of the FBI New York Field Office, and Special Agent in Charge Keith A. Bonanno of the Department of Justice Office of the Inspector General (DOJ-OIG) Cyber Investigations Office.

As alleged in the forfeiture complaint, multiple bank accounts were opened at U.S. financial institutions by Prakazrel (“Pras”) Michel and former Justice Department employee George Higginbotham in 2017 to receive tens of millions of dollars in funds from overseas accounts controlled by Jho Low.  In opening these accounts, Michel and Higginbotham allegedly made false and misleading statements to U.S. financial institutions that housed the accounts in order to mislead these institutions about the source of the funds and to obscure Jho Low’s involvement in these transactions.  Michel and Higginbotham allegedly intended to use these funds to attempt to influence the Justice Department’s investigation of Jho Low and 1MDB.  As alleged in the complaint, Higginbotham, as a Justice Department employee, played no role in any aspect of the investigation and failed to influence any aspect of the Department’s investigation of Low or 1MDB.

“According to the allegations in the complaint, Michel and Higginbotham defrauded U.S. financial institutions and laundered millions of dollars into the United States as part of an effort to improperly influence the Department’s investigation into the massive embezzlement and bribery scheme involving 1MDB,” said Assistant Attorney General Benczkowski. “The Criminal Division and our law enforcement partners will do everything we can to trace, seize, and forfeit the proceeds of foreign corruption that flow through the U.S. financial system.”

“Corruption is often at the root of national security, terrorism, and criminal threats, and those who seek to take advantage of our financial systems to perpetuate fraud and abuse will not be tolerated,” said FBI Assistant Director in Charge Sweeney.  “The FBI is committed to investigating and uncovering corruption no matter where it occurs, in conjunction with our domestic and international partners.”

“Ensuring the integrity of Department of Justice employees is of paramount importance,” said DOJ-OIG Special Agent in Charge Bonanno.  “An employee who facilitates or participates in this type of illicit activity will be thoroughly investigated by the OIG, including situations where attempts are made to influence the Department’s independence.”

This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office.  Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov (link sends e-mail).

The investigation was conducted jointly by the FBI’s International Corruption Unit and the Department of Justice Office of the Inspector General. The case is being prosecuted by Deputy Chief Woo S. Lee, and Trial Attorneys Joshua L. Sohn and Rebecca A. Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section.  The Criminal Division’s Office of International Affairs provided substantial assistance.  

The Justice Department today announced that the Office of Justice Programs’ (OJP) Office for Victims of Crime (OVC) awarded more than $16.7 million in Antiterrorism and Emergency Assistance Program (AEAP) funding to aid survivors of the Oct. 1, 2017, mass shooting in Las Vegas, Nevada. Acting Attorney General Matthew Whitaker made the announcement in a speech to state, local, and federal law enforcement in Cincinnati this morning.

Fifty-eight people were killed and more than 600 physically injured when a man opened fire on the Route 91 Harvest Festival, an open-air music venue, from a hotel room on the 32nd floor of the Mandalay Bay hotel and casino on the Las Vegas strip. When officers located the gunman and entered the room, he was found dead with self-inflicted wounds. In June, the Department awarded over $2 million to support first responders in the aftermath of the shooting. In addition, earlier this month the Department announced a new $8.7 million grant to provide multi-disciplinary, scenario-based active shooter training to first responders across the country.

“This Department of Justice stands with our first responders and victims of crime," Acting Attorney General Matthew Whitaker said. "We have already provided $3 million to cover expenses for state and local law enforcement in Las Vegas and in Clark County following last October's horrific mass shooting. Today we take the next step of providing more than $16 million for the victims of that tragedy and for the first responders who came to the scene, to help pay for counseling, therapy, rehabilitation, trauma recovery, and legal aid. While we cannot undo the harm that has been done, this Department of Justice is doing what we can to help Las Vegas heal."

The funding, totaling $16,735,720, will assist victims of this incident, including ticket holders, concert staff, vendors, witnesses, law enforcement personnel, and other first responders. It also will support close family members, medical personnel, coroner’s staff, taxi drivers, and others who helped the concert attendees. The grant will defray the costs of counseling and therapy, vocational rehabilitation, and trauma recovery for victims and emergency responders. Funds will also help with legal aid and supplement the massive outlays incurred by the Nevada victim compensation program.

AEAP is a non-competitive solicitation specifically created to provide supplemental emergency and longer-term victim support to jurisdictions where a criminal mass violence or domestic terrorism incident occurred. OVC can award funding once local and state authorities have determined the costs associated with responding and have submitted a request for assistance.

For more information about AEAP, please visit: https://www.ovc.gov/AEAP/

The Office of Justice Programs, led by Principal Deputy Assistant Attorney General Matt M. Dummermuth, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking. More information about OJP and its components can be found at: www.ojp.gov.

A former Davidson County, Tennessee judge was sentenced today to 44 months in prison, restitution of $18,000 and a forfeiture of $13,500 for obstruction of justice, witness tampering, and stealing money from an organization receiving federal funds, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran for the Middle District of Tennessee.

Cason “Casey” Moreland, 61, of Smyrna, Tennessee, was sentenced by Chief U.S. District Judge Waverly D. Crenshaw Jr.  The defendant pleaded guilty to five counts of a superseding information on May 24.

According to admissions made in connection with Moreland’s plea agreement, in January 2017, the FBI began investigating whether Moreland solicited sexual favors in exchange for favorable judicial treatment while sitting as a General Sessions Court Judge in Nashville and Davidson County, Tennessee.  Moreland admitted that in February 2017, he became aware that he was a target of an investigation and took steps to try to obstruct it.  Specifically, he devised a scheme to pay a material witness to sign a false affidavit recanting her previous statements, which implicated his criminal conduct in trading judicial favors for sex.  He also devised a scheme to have drugs planted in the witness’s car, and then to have her stopped by police, so that she would be arrested and her credibility would be destroyed.  Moreland carried out these schemes by using a burner phone registered in the name of “Raul Rodriguez” and communicating with an individual who subsequently became an informant, working at the direction of the FBI.    

Moreland also admitted to criminal conduct stemming from his involvement with the General Sessions Drug Treatment Court, a specialized court program designed to provide alternatives to incarceration for certain defendants.  The work of the Drug Treatment Court was supported by a nonprofit entity called the Davidson County Drug Court Foundation (the “Drug Court Foundation”).  Although Moreland did not have an official position with the Drug Court Foundation, he admitted that he exercised de facto authority over the Drug Court Foundation’s operations. 

In connection with his plea agreement, Moreland admitted that beginning in spring 2016, he began embezzling cash from the Drug Court Foundation by directing the Drug Court Foundation’s director to deliver to his office envelopes of cash that she had collected from individuals seeking outpatient treatment for substance abuse.  Then, in February 2017, after learning of the FBI’s investigation, Moreland instructed the Drug Court Foundation’s director to destroy all documents and records relating to the cash payments that he had embezzled. Finally, in February 2018, at a time when he was on pre-trial release for the original charges, Moreland admitted that he attempted to tamper with a witness by suggesting to the Drug Court Foundation’s director that she lie to the grand jury investigating his conduct.

This case was investigated by the FBI’s Nashville Resident Agency of the Memphis Division and is being prosecuted by Trial Attorney Lauren Bell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Cecil VanDevender of the Middle District of Tennessee.

A former employee with the U.S. Department of Justice pleaded guilty today for his role in a conspiracy to deceive banks in the United States about the source and purpose of millions of dollars sent from overseas to finance a lobbying campaign on behalf of foreign interests, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.

George Higginbotham, 46, of Washington, D.C., who was employed at the Justice Department as a Senior Congressional Affairs Specialist from July 2016 to August 2018, pleaded guilty to one count of conspiracy to make false statements to a bank before U.S. District Judge Colleen Kollar-Kotelly of the District of Columbia.

According to admissions made in connection with his plea, in 2017 Higginbotham helped facilitate the transfer of tens of millions of dollars from foreign bank accounts to accounts in the United States to finance a lobbying campaign to resolve civil and criminal matters related to the Department of Justice’s investigation of the embezzlement and bribery scheme concerning 1Malaysia Development Berhad (1MDB).  Higginbotham admitted that the foreign principal behind the lobbying campaign was alleged to be the primary architect of the 1MDB scheme.  Higginbotham, as a Justice Department employee, played no role in any aspect of the investigation and failed to influence any aspect of the Department’s investigation of 1MDB.  Higginbotham further admitted that another purpose of the lobbying campaign was an attempt to persuade high-level U.S. government officials to have a separate foreign national, who was residing in the United States on a temporary visa at the time, removed from the United States and sent back to his country of origin. 

In order to conceal the identity of the foreign principal behind the lobbying campaign, Higginbotham admitted to conspiring to make false statements to financial institutions in the United States concerning the source and purpose of the funds.  Higginbotham also admitted to working on various fake loan and consulting documents in order to deceive banks and other regulators about the true source and purpose of the money. 

The Department of Justice Office of the Inspector General and the FBI are investigating the case.  Deputy Chief John Keller and Trial Attorneys Ryan Ellersick, James Mann, Sean Mulryne, and Nicole Lockhart of the Criminal Division’s Public Integrity Section, and Deputy Chief Woo Lee and Trial Attorney Joshua Sohn of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case. 

A Bangladeshi national residing in Monterrey, Mexico, was arrested yesterday on arrival at George Bush Intercontinental Airport to face a criminal indictment issued in the Laredo Division of the Southern District of Texas for his role in a scheme to smuggle aliens from Mexico into the United States.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Shane M. Folden of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) San Antonio made the announcement.

The unsealed indictment alleges that from March 2017 to August 2018, Moktar Hossain, 30, conspired to bring and brought 14 Bangladeshi nationals to the United States at the Texas border in exchange for a fee.  Hossain operated out of Monterrey, Mexico, where he maintained a hotel that housed aliens before they were transported to the U.S. border by drivers paid by Hossain. 

Hossain was presented today before U.S. Magistrate Judge Dena Hanovice Palermo in the Southern District of Texas for his initial appearance.  At the hearing, Judge Palermo ordered that Hossain be held pending transfer to Laredo for further criminal proceedings.

“Protecting our country from illegal immigration and the national security threat it poses is a priority for the Department of Justice,” said Assistant Attorney General Benczkowski. “The Criminal Division is dedicated to working with our law enforcement partners both here and abroad to disrupt the flow of illegal aliens into the United States, and bring those who facilitate their travel to justice.”

“Homeland Security Investigations remains steadfast in vigorously pursuing members of transnational criminal networks that exploit and endanger the people they smuggle into the United States,” said HSI Special Agent in Charge Folden.  “Smugglers are driven by simple greed with no thought for human compassion.  HSI continues to work with our law enforcement partners to maintain the integrity of our border and the safety of our communities.”

This case is being investigated by HSI Laredo, with assistance from HSI Monterrey, HSI Houston, HSI Calexico, U.S. Customs and Border Protection, U.S. Border Patrol and the U.S. Marshals Service.  The investigation is being conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

This case is being prosecuted by Trial Attorneys James Hepburn and Erin Cox of the Criminal Division’s Human Rights and Special Prosecutions Section with assistance from the U.S. Attorney’s Office for the Southern District of Texas.

The charges contained in the indictment are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.  

A Virginia Beach man was sentenced to 120 months in prison today, to be followed by 20 years of supervised release for possession of child pornography, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.

Mark Earle Johnson, 61, pleaded guilty on Aug. 27, before U.S. District Judge Robert J. Krask of the Eastern District of Virginia to one count of possession of child pornography with a prior conviction. U.S. District Judge Arenda L. Wright Allen imposed the sentence today.

According to court documents, in July 2016, Virginia Beach Police Department officers were alerted to the fact that Johnson was in possession of child pornography, shortly after he was arrested for a violation of probation related to a previous conviction for child pornography in the state of Maryland.  A forensic examination of Johnson’s electronic storage devices confirmed that he had possessed and viewed images of child pornography while living in Virginia Beach, which Johnson admitted to viewing. 

The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Virginia Beach Police Department.  Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Elizabeth M. Yusi of the Eastern District of Virginia prosecuted the case.

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