District Not Recorded

Real estate investor Avi Stern pleaded guilty today in West Palm Beach, in connection with an ongoing investigation into bid rigging at online public foreclosure auctions in Florida, the Department of Justice announced.  Stern is the third real estate investor to plead guilty in this investigation. 

Felony charges of bid rigging were filed against Stern on November 2, 2017, in the U.S. District Court for the Southern District of Florida.  According to court documents, from around January 2012 through around June 2015, Stern conspired with others to rig bids during online foreclosure auctions in Palm Beach County, Florida.

“Bid rigging at foreclosure auctions has produced enormous harm to many vulnerable communities around the country and directly affronts the values of a market economy,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “The Division will continue to prosecute similar antitrust violations, and will hold individuals who engage in such types of conduct accountable.”

“Real estate investors who think they can swindle the system to line their pockets with ill-gotten gains beware,” said George L. Piro, Special Agent in Charge, FBI Miami.  “The FBI and our law enforcement partners will vigorously investigate such schemes.”

The Department said that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected real estate offered at online foreclosure auctions at non-competitive prices.  When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with any remaining proceeds available to the homeowner.  According to court documents, the conspiracy artificially lowered the price paid at auction for such homes.  In the past several years, the Division and its law enforcement partners have secured convictions of more than 100 individuals for rigging public mortgage foreclosure auctions in six different states, including Florida. 

The investigation is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Miami Division – West Palm Beach Resident Agency.  Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal I Section of the Antitrust Division at 202-307-6694, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

A Maryland gang member pleaded guilty today to his participation in a racketeering enterprise in furtherance of the activities of the gang known as La Mara Salvatrucha, or MS-13.

Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland, Acting Special Agent in Charge Scott Hoernke of the U.S. Drug Enforcement Administration (DEA) Washington Field Division, Acting Special Agent in Charge Cardell T. Morant of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Baltimore Field Office, Chief J. Thomas Manger of the Montgomery County Police Department, Chief Henry P. Stawinski III of the Prince George’s County Police Department, Prince George’s County State’s Attorney Angela D. Alsobrooks, Chief Amal Awad of the Hyattsville Police Department and Montgomery County State’s Attorney John McCarthy made the announcement.

Kevin Alexis Hernandez-Guevara, aka “Stop,” 22, a citizen of El Salvador illegally residing in Elizabethtown, New Jersey, pleaded guilty before the Honorable Judge Paula Xinis in the District of Maryland to conspiracy to participate in a racketeering enterprise.  Hernandez-Guevara is scheduled to be sentenced on Feb. 15, 2019.

According to the plea agreement, MS-13 is a gang composed primarily of immigrants or descendants of immigrants from El Salvador, with members operating in the State of Maryland, including Montgomery County, Prince George’s County, and Frederick County, and throughout the United States.  Branches or “cliques” of MS-13 often work together cooperatively to engage in criminal activity and to assist one another in avoiding detection by law enforcement.  MS-13 members and associates are required to commit acts of violence within the gang and against rival gangs.  One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible. 

Pursuant to his plea agreement, Hernandez-Guevara admitted that from at least July 2016, he was a member and associate of the Sailors Clique.  Hernandez-Guevara admitted to participating in numerous acts in furtherance of the racketeering conspiracy.

For example, according to the plea agreement, on or about July 29, 2016, Hernandez-Guevara and three other members and associates of MS-13 planned and conspired to murder Victim-2, who was believed to be a member of a rival gang.  On July 29, 2016, pursuant to that plan, Hernandez-Guevara and other MS-13 members and associates lured Victim-2 to a secluded area in Hyattsville, Prince George’s County, Maryland.  One of the MS-13 members and associates shot at Victim-2, and missed.  Hernandez-Guevara collected the fired shell casings from the gunshots fired by Hernandez-Guevara’s co-conspirator.  Multiple MS-13 members and associates then assaulted and stabbed Victim-2 with the intention of killing him.  Victim-2 died as a result of injuries sustained during this attack, which included 61 sharp force injuries.

Additionally, according to the plea agreement, on or about Aug. 9, 2016, in Hyattsville, Hernandez-Guevara and other MS-13 members and associates planned and attempted to rob Victim-3 and Victim-4 of a pound of marijuana that Victim-3 and Victim-4 were going to sell to Hernandez-Guevara and his co-conspirators.  During the attempt, Victim-3 and Victim-4 resisted.  In the course of the struggle, Victim-3 and Victim-4 were shot, stabbed, and sustained serious, permanent, and life threatening bodily injuries.  Hernandez-Guevara and another co-conspirator were also shot. 

Hernandez-Guevara also admitted to distributing less than one kilogram of marijuana for and on behalf of the Sailors Clique.  His activities included receiving and distributing marijuana and proceeds from the sale of marijuana. 

Eight of Hernandez-Guevara’s co-defendants remain charged in the sixth superseding indictment with various racketeering violations, drug trafficking conspiracy, and extortion conspiracy.  The trial of the eight remaining defendants is scheduled to commence on March 12, 2019.

An indictment is merely an allegation.  Those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

HSI Baltimore, FBI Washington Field Office, DEA Washington Field Office, the Prince George’s County Police Department, the Montgomery County Police Department, the Prince George’s State’s Attorney’s Office, the Hyattsville Police Department, and the Montgomery County State’s Attorney’s Office investigated this case.  Trial Attorney Francesca Liquori of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau, Catherine K. Dick, and Daniel C. Gardner are prosecuting this case.

 

On Nov. 9, the U.S.-EU Ministerial Meeting on Justice and Home Affairs took place in Washington. D.C. The United States hosted the meeting and was represented by the U.S. Acting Attorney General Matthew G. Whitaker and Secretary for Homeland Security Kirstjen Nielsen.

The European Union was represented by the Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos, as well as by the Austrian Federal Minister for the Interior Herbert Kickl, the Austrian Federal Minister for Constitutional Affairs, Reforms, Deregulation and Justice Josef Moser, the Romanian Minister of the Interior Carmen Daniela Dan and the Romanian Secretary of State for Justice Sebastian Costea on behalf of the current and incoming Presidencies of the Council of the European Union.

The United States and the European Union reaffirmed their commitment to jointly address common challenges in the areas of justice and home affairs and praised the excellent level of exchanges and operational cooperation, for the benefit of the security of citizens on both sides of the Atlantic.

The United States and the European Union underlined the importance of effective information sharing for their shared efforts to combat terrorism, focusing on battlefield information, Passenger Name Records (PNR) and aviation security. Participants emphasized the importance of PNR information sharing as a tool for the prevention of terrorist travel and agreed to prepare for a joint evaluation in 2019, in compliance with the provisions of the US-EU PNR Agreement. The United States and the European Union recognized the need to enhance their efforts to address the challenge of terrorists’ use of the internet to direct and inspire attacks, while respecting individual rights, including freedom of speech. Both sides shared information on their respective initiatives, including efforts to better engage and partner with service providers.

The United States and the European Union recognized that electoral systems in democratic states face unprecedented challenges that require innovative and comprehensive solutions, as well as cooperation and best practice exchanges between like-minded countries. On that topic, participants briefed each other on current actions to build more resilient electoral systems. In order to promote exchanges between relevant experts from both sides on current challenges to elections, including such challenges as disinformation campaigns and other forms of online and offline interference, the United States and the European Union agreed to set up a regular dialogue on these matters, the details of which should be developed at the next senior officials meeting in 2019.  

The United States and the European Union reiterated the priority they attach to fighting cybercrime and enhancing cybersecurity. They recognized the need to maintain a global, open, stable and secure cyberspace for the promotion of economic and social development and, in this context, stressed the valuable contribution of joint work conducted by U.S. and EU law enforcement agencies to combat, deter and prevent cybercrime and called for the expansion of such cooperation, as appropriate. Participants also acknowledged the challenge in obtaining timely and lawful access to encrypted data, in accordance with individual rights and civil liberties, by those investigating and solving criminal offenses and exchanged views on their respective practices to counter such challenges. Participants took note of the dialogue that took place in Brussels between the cybersecurity experts at DHS and the EU and agreed to continue to collaborate to strengthen the cybersecurity posture on both sides of the Atlantic.

The United States and the European Union agreed on the importance for both law enforcement and judicial authorities of swift cross-border direct access to electronic evidence, as demonstrated by recent legislation approved or under examination in the United States and the EU.  Participants further recognized the benefit of exploring, and agreed to discuss, the possibility of an U.S.-EU agreement to facilitate access to electronic evidence.

The United States and the European Union exchanged information on developments in the area of migration and border management, with a particular focus on efforts to prevent and combat migrant smuggling and trafficking of human beings. The United States and the European Union agreed on the importance of advancing towards reciprocal visa free travel under their respective legal frameworks and, following the most recent tripartite meeting on visa reciprocity, welcomed the progress of the five concerned Member States towards meeting the statutory requirements of the Visa Waiver Program, in order to be considered for designation in the program.

The United States and the European Union underscored their shared concerns about the major international drug-control threats posed by illicit synthetic opioids, including fentanyl and its derivatives. Both sides took note of the U.S.-EU Political Dialogue on Drugs held on Oct. 18, 2018.

Reiterating the progress made and the need to face global challenges together, the United States and the European Union remain committed to reinforce their partnership and meet again in the first half of 2019 in Bucharest, Romania.

 

On November 7th, the Department of Homeland Security (DHS) Office of Intelligence and Analysis (OIA) recognized the partnership of INTERPOL Washington—the U.S. National Central Bureau—in homeland security intelligence sharing.  OIA nominated INTERPOL Washington for the “HSIN-Intel Partner of the Year” that honors National Fusion Center Association (NFCA) partners for significant contributions to the sharing of unclassified intelligence information and products, analytic collaboration, and real-time information exchange via the HSIN-Intel platform. The nomination was announced during the 2018 National Fusion Center Association (NFCA) Annual Training Event in Alexandria, VA.  

INTERPOL Washington was nominated for its sharing of Orange and Purple Notices with U.S. and international law enforcement. Orange notices warn of an event, a person, an object or a process representing a serious and imminent threat to public safety. Purple notices provide information on modus operandi, objects, devices and concealment methods used by criminals. Additional criteria for the award nominations include providing exceptional resources/services, serving as an example of best practices to the Nation; enhancing analytic collaboration and real-time information exchange Nationwide; and directly contributing to improving the awareness of threats and efforts to enhance security postures through information sharing.

Fusion centers operate as state and major urban area focal points for receiving, analyzing, gathering, and sharing threat-related information between federal; state, local, tribal, territorial (SLTT); and private sector partners. The NFCA represents the interests of those partners in order to promote the development and sustainment of fusion centers to enhance public safety; encourage effective, efficient, ethical, lawful, and professional intelligence and information sharing; and prevent and reduce the harmful effects of crime and terrorism on victims, individuals, and communities.

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

After President Trump’s Presidential Proclamation regarding the Southwest Border, Acting Attorney General Matthew Whitaker issued the following statement of strong support: "Our southern border is in crisis. The hundreds of thousands of illegal aliens who have unlawfully crossed our border are posing a significant threat to the government’s ability to effectively enforce our nation’s immigration laws. Plain and simple, there are too many loopholes in our current immigration system. The vast majority of asylum claims that originated from this system are not meritorious. What’s worse, large numbers of aliens fail to even pursue their claims in court and many fail to appear for their court hearings.

“Today, the President has made a strong statement that enough is enough. Aliens with legitimate claims to asylum can still receive it—they simply have to go to one of our ports of entry. Thanks to this decisive order from President Trump, we are continuing to provide a path to protection for those who truly need it, while stopping our generosity from being abused."

The total number of aliens referred to expedited removal proceedings has significantly increased over the last decade, from 161,516 aliens in 2008 to approximately 234,534 in FY 2018.  The total number of credible-fear referrals for interviews increased from about 5,000 a year in Fiscal Year (FY) 2008 to about 97,000 in FY 2018.

The vast majority of asylum applications are not meritorious.  In FY 2018, a total of about 6,000 aliens who passed through credible-fear screening (17 percent of all completed cases, 27 percent of all completed cases in which an asylum application was filed, and about 36 percent of cases where the asylum claim was adjudicated on the merits) established that they should be granted asylum. 

More than approximately 70,000 aliens a year (as of FY 2018) are estimated to enter between the ports of entry and then assert a credible fear in expedited removal proceedings.  Another 24,000 assert fear to return at our ports of entry.

As of November 2, 2018, there were approximately 203,569 total cases pending in the immigration courts that originated with a credible-fear referral—or 26 percent of the total backlog of 791,821 removal cases.

Of that number, 136,554 involved nationals of Northern Triangle countries.  89 percent of aliens from the Northern Triangle receive a positive credible-fear interview.

But in nearly half of the completed cases involving these aliens, the alien failed to appear at a hearing or failed to file an asylum application.

• 71 percent were of claims completed with the issuance of an order of removal.
• 31 percent were of claims completed where the alien failed to appear at a hearing.
• 40 percent were of claims completed without the alien filing an application for asylum
• Only nine percent were ultimately granted asylum.

Two employees of SK Engineering & Construction Co., Ltd. (SK), a large multinational corporation based in the Republic of Korea (South Korea), were charged today with participating in a scheme to defraud the United States by submitting fraudulent subcontracts to conceal bribes and kickbacks paid to an American public official, in relation to U.S. Army construction contracts in South Korea. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney D. Michael Dunavant of the Western District of Tennessee, Special Agent in Charge Ray Park of the U.S. Army Criminal Investigation Command (Army-CID) Pacific Fraud Field Office, Special Agent in Charge Stan Newell of the Defense Criminal Investigative Service (DCIS), and Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office made the announcement.

Hyeong-won Lee, 58, and Dong-Guel Lee, 48, both citizens of South Korea and employees of  SK Engineering & Construction Co., Ltd. (SK), were charged with one count of conspiracy to defraud the United States and to commit wire fraud and obstruction of justice, and one count of major fraud against the United States.  Hyeong-won Lee was also charged with two counts of wire fraud and one count of money laundering conspiracy, and Dong-Guel Lee was charged with one count of witness tampering in relation to a wide-ranging bribery and fraud scheme from 2008 to 2017.  The defendants are not related.

“Hyeong-won Lee and Dong-Guel Lee allegedly submitted fraudulent construction subcontracts to disguise millions in kickback payments to a public official and then tried to cover their tracks,” said Assistant Attorney General Benczkowski.  “The Department of Justice is dedicated to protecting taxpayer dollars by safeguarding the integrity of government contracts and construction projects that support our U.S. military and civilian personnel, wherever they serve around the world.”

“Protecting the U.S. Treasury and the interests of the federal government abroad is a top priority of this office, and this indictment shows our commitment to hold foreign actors accountable for major fraud committed against the United States,” said U.S. Attorney Dunavant.

According to the indictment, the defendants, acting on behalf of SK, submitted fraudulent subcontracts to the U.S. Army as part of two construction contracts at Camp Humphreys, South Korea, worth hundreds of millions of dollars.  The indictment alleges that the defendants and their co-conspirators used these fraudulent subcontracts to launder millions of dollars in kickbacks for a U.S. public official who had steered two Camp Humphreys construction contracts to SK.  

The indictment also alleges that the defendants obstructed investigations into the scheme.  According to the indictment, Hyeong-won Lee ordered SK employees to destroy documents related to the fraudulent subcontract, and SK employees burned boxes of documents in order to prevent their use by investigators.  The indictment also alleges that Dong-Guel Lee, acting on SK’s behalf, impeded federal investigations by dissuading witnesses from testifying about their knowledge of the scheme.

Army-CID, DCIS, and the FBI are investigating the case.  Assistant Chief Justin Weitz of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Tony Arvin of the Western District of Tennessee are prosecuting the case.  The Fraud Section is grateful for the assistance of the Criminal Division’s Public Integrity Section in this case.

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

Antitrust agency heads from the United States, Canada, and Mexico meet today in Mexico City to discuss their ongoing work to ensure consistent and effective antitrust enforcement and increased cooperation among the three nations.

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

The discussions will cover a wide range of topics including developments and priorities, challenges for enforcers in times of antitrust populism, and procedural fairness in antitrust investigations. The officials also are exploring ways to deepen cooperation and convergence on sound antitrust principles.

“The Division’s close relationship with our antitrust colleagues in Mexico and Canada is critical to sound antitrust enforcement in North America,” said Assistant Attorney General Delrahim.  “We look forward to our continued efforts to work with our international partners to promote competition to the benefit of consumers.”

“Strengthening ties with our closest neighbors is always a top priority, and I look forward to finding new avenues for cooperation,” said Federal Trade Commission Chairman Joseph J. Simons.

The owner of a Michigan home health agency was sentenced to 84 months in prison today for her role in a scheme involving approximately $1.6 million in fraudulent Medicare claims for home health services that were procured through the payment of kickbacks, and that were medically unnecessary and not provided.

Assistant Attorney General Brian A. Benczowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.

Editha Manzano, 70, of Troy, Michigan, was sentenced by U.S. District Judge Gershwin A. Drain of the Eastern District of Michigan.  Judge Drain also ordered Manzano to pay $1,593,804.35 in restitution, jointly and severally with her co-conspirators, and to forfeit $758,407.07.  On Dec. 4, 2017, Manzano was convicted after a two-week trial on all counts that were charged in the indictment -- one count of conspiracy to commit health care and wire fraud, one count of conspiracy to pay and receive kickbacks in connection with Medicare beneficiaries, and one count of health care fraud.

According to evidence presented at trial, from 2013 to 2016, Manzano masterminded a scheme to defraud Medicare of approximately $1.6 million by submitting false and fraudulent claims for home health care services in connection with Anointed Care Services (Anointed), a Detroit-area home health care agency.  Medicare requires that physical therapy and skilled nursing services in the home be provided only to Medicare beneficiaries who are homebound and need the services.  The evidence showed that Manzano paid illegal kickbacks in exchange for recruited beneficiaries’ signatures on blank home health documents.  The evidence further showed that Manzano conspired with physicians to admit beneficiaries for home health care with Anointed when they did not qualify for such services.  Manzano and her co-conspirators then billed Medicare for home health services that were never provided, the evidence showed.  To make it appear that the services were medically necessary and actually provided, Manzano and her co-conspirators fabricated and falsified medical records, the evidence showed. 

The evidence further showed that Manzano conspired with physicians to provide medically unnecessary opioids to beneficiaries who signed up for home health care with Anointed.  Some of these beneficiaries sold the opioids to drug dealers to be resold on the street; others traded the opioids to drug dealers in exchange for crack cocaine.

Manzano was charged along with Liberty Jaramillo, 68, also of Troy; Roberto Quizon, M.D., 72, of Bloomfield Hills, Michigan; Juan Yrorita, R.N., 64, of Sterling Heights, Michigan, and Victoria Gallardo-Navarra, M.D., 75, also of Bloomfield Hills, in an indictment returned on Sept. 1, 2016.  Jaramillo and Quizon pleaded guilty prior to trial and were sentenced to serve 36 months and 18 months in prison, respectively.  Gallardo-Navarra was acquitted, and Yrorita pleaded guilty on the fifth day of trial and was sentenced to serve 36 months in prison. 

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 Eastern District of Michigan.  Trial Attorneys Jacob Foster and Rebecca Yuan of the Fraud Section prosecuted 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.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MARKHAM LYNCH, age 52, from Tamuning, was sentenced today in District Court by Senior District Judge Alex R. Munson for Conspiracy to Commit Marriage Fraud, in violation of Title 18, United States Code, Section 371. Defendant LYNCH was sentenced to 50 hours of community service, two years probation, $8,500 fine, and a $100 special assessment fee.

          LYNCH and Jong Yun Kim conspired for LYNCH to illegally marry and petition for Kim’s girlfriend to receive a Permanent Resident Card and remain in the United States. LYNCH would receive $20,000 or more if the plan succeeded. At the time, Kim’s girlfriend was unlawfully present in the United States under the terms of the Guam Visa Waiver Program. LYNCH and Kim’s girlfriend were married in the Superior Court of Guam in 2014. LYNCH informed immigration officials that he and Kim’s girlfriend were living together when, in fact, they were not. Kim’s girlfriend had been residing with Kim since her entry into Guam.  LYNCH received $8,500 for the fraudulent marriage.  Kim was convicted earlier this year for his part in the scheme.

          U.S. Attorney Anderson stated, “The Guam Visa Waiver program allows the entry of certain foreign nationals for not more than 45 days for the limited purposes of business and tourism. The program has the potential to greatly benefit Guam’s economy. However, as demonstrated by this case, those admitted may use the program as a means to commit criminal offenses once on island. Abuse of the waiver system by foreign nationals or United States citizens risks its continued viability. Foreign nationals who are convicted of violating our immigration laws also risk deportation and being barred from future entry. Our office will assist Homeland Security Investigations at every opportunity to enforce federal immigration laws on Guam and the Northern Mariana Islands.”

          Special Agents from the Department of Homeland Security, Homeland Security Investigations (HSI) conducted the investigation. Assistant United States Attorney Stephen F. Leon Guerrero prosecuted the case.

The former CEO of Citrades pleaded guilty today for his role in a scheme to defraud investors out of $8.3 million in the United States and across the world in financial instruments known as “binary options,” announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office.  Citrades was a purported internet-based investment platform.

Jason Benjamin Scharf, 37, of Los Angeles, California, pleaded guilty to one count of conspiracy to commit wire fraud before U.S. District Judge George H. Wu of the Central District of California.  Sentencing has been scheduled for Feb. 25, 2019, before Judge Wu. 

As part of his guilty plea, Scharf admitted that from February 2013 through December 2015, he oversaw the day-to-day operations of Citrades as the company’s CEO, and that he agreed with his co-conspirators to induce investors to purchase binary options based on materially misleading misrepresentations and omissions.  As described in the plea agreement, a binary option is a type of option contract in which the payout depends on the outcome of a discrete event, typically related to whether the price of a particular asset—such as a stock or a commodity—will rise above or fall below a specified amount. 

Scharf admitted that representatives of Citrades falsely claimed to be representing the interests of investors in binary options when in reality they were representing the financial interests of Citrades.  Scharf further admitted that while Citrades marketed itself as a trading platform through which binary options could be traded, investors were not actually trading with other investors.  Instead, they were investing in transactions whose parameters, including the “strike price” associated with the binary option, were set by a separate company that served as a platform provider.  Scharf admitted that Citrades operated its binary options business principally out of Israel, but had representatives and co-conspirators working on its behalf in the United States. 

Scharf further admitted that after being served with an administrative subpoena, he deleted potentially incriminating emails from an account that he used to conduct Citrades-related business. 

This case was investigated by the FBI.  Trial Attorney Ankush Khardori of the Criminal Division’s Fraud Section is prosecuting the case.  The Criminal Division’s Office of International Affairs and the Israeli National Police also provided assistance. 

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

Attorney General Jeff Sessions signed a memorandum yesterday providing direction to all civil litigating components and United States Attorneys’ Offices (USAOs) on the principles that should be followed when resolving a civil lawsuit against a state or local governmental entity. State and local governments have unique roles under the Constitution, and the Department is committed to ensuring that its practices in these cases are transparent, impartial, and consistent with fundamental constitutional principles, including democratic control and accountability.   

The memo includes guidelines on:

• How civil litigating components and USAOs should handle investigations and reports of allegations;
• The notice, approval, and substantive requirements for consent decrees[1] and settlement agreements, as well as constitutional and policy considerations;
• Use and limits of monitors for state and local governmental entities.

These guidelines are designed to ensure that consent decrees with state and local governments are narrowly tailored to remedy the alleged violations, and are not used to extract greater relief from the state or local government than the Department could obtain through litigation.  They are also structured to ensure that, where appropriate, responsibility is returned to democratically accountable state and local institutions.  Requirements include, but are not limited to, limits on duration of a consent decree, clear triggers for termination, and prohibitions on using consent decrees to achieve general policy goals. The memo also clarifies the approval process for both consent decrees and settlement agreements, to ensure that they receive appropriate review by the Office of the Deputy Attorney General, the Associate Attorney General, and other senior Department leadership.

The full text of the memo can be found

here .  

---

[1] A consent decree is a negotiated agreement entered as a court order that is enforceable by the court. A settlement agreement is an out-of-court resolution that requires a signed agreement, or memorandum of understanding, and performance by the defendant. Required periodic assessment of compliance or noncompliance is handled by consultation of the parties without involving a court. If there is a breach of contract by the defendant, the government may file a lawsuit to enforce the agreement. 

 

Daniel Davis, 41, a former Major at Louisiana State Penitentiary (LSP) in Angola, Louisiana, was found guilty by a jury today in federal court for beating an inmate who was handcuffed, shackled, and not resisting.  In a previous trial in January, Major Davis was convicted of conspiring with other officers to cover up the beating by devising a false cover story, submitting false reports documenting that cover story, tampering with witnesses, and lying under oath.  Four other officers—former Captains James Savoy, John Sanders, and Scotty Kennedy, and former Sergeant Willie Thomas—have all previously pleaded guilty for their roles in the beating and cover up.  At Davis’s trial, Captains Sanders and Kennedy testified for the government and described the abuse and the extensive cover up.

After hearing testimony over the course of three days, the jury convicted Davis of willfully depriving the inmate of his right to be free from cruel and unusual punishment.  The evidence showed that Davis initiated the beating by yanking the inmate’s leg chains, causing the inmate to fall face-first onto the concrete breezeway. At that point, Davis and the other officers punched, kicked, and stomped on the inmate, leaving the inmate with a bloody gash under his eye, a dislocated shoulder, broken ribs, and a collapsed lung. 

“Mr. Davis abused the justice system by beating an inmate, writing false reports, and using his influence and power as a corrections officer to encourage others to lie,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “The Justice Department will continue to prosecute correctional officers who violate federal criminal law.”

“Our office is committed to protecting the civil rights of all citizens and ensuring that government employees in positions of authority don’t abuse that authority,” said U.S. Attorney Brandon J. Fremin. “I want to thank the  Civil Rights Division of the Department of Justice, the  FBI, and the Louisiana Office of Inspector General for their work on this matter. “

"Charged with protecting the civil rights of others, to include those in custody, is a responsibility the FBI takes very seriously,” said Eric J. Rommal, FBI New Orleans Special Agent in Charge.  “Law enforcement officers and correctional officers acting under the color of law must ensure a person's civil rights are not violated. The jury's decision today reinforces the FBI's commitment that civil rights and color of law violations will not be tolerated.”

“Corrections officers are given great authority and power in our system because public safety depends on them doing their jobs well,” said Louisiana Inspector General Stephen Street. “When those corrections officers commit crimes by choosing to abuse their power, as defendant Davis did in this case, they must be held accountable, or public trust in the system suffers.  The jury’s guilty verdict should send a clear message that we have zero tolerance for it and will continue to aggressively pursue these cases whenever and wherever they may arise. I wish to thank the FBI, United States Attorney Brandon Fremin and the prosecutors from the DOJ Civil Rights Division for their outstanding work on this case.”

No date has been set for Davis’s sentencing. He faces a maximum penalty of five years of imprisonment on the conspiracy and perjury counts, 10 years of imprisonment on the excessive force count, and 20 years of imprisonment on each of the remaining obstruction counts.

This case was investigated by the FBI’s Baton Rouge Resident Agency Office and the Louisiana Office of the State Inspector General. The case was tried by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Frederick A. Menner, Jr., of the Middle District of Louisiana.

A former West Palm Beach, Florida resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.

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

Braulio De la Cruz Vasquez, 54, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments and the use or possession of hardware or software configured to obtain telecommunications services; one count of wire fraud and one count of aggravated identity theft.  Sentencing is scheduled for Jan. 18, 2019, before U.S. District Judge Beth Bloom of the Southern District of Florida. 

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

De la Cruz admitted that his role in the scheme included operating a “call site” from his residence in West Palm Beach.  He admitted that he would receive telecommunication identifying information associated with customers’ accounts from his co-conspirators and use that data, as well as other software and hardware, to reprogram cellphones that he controlled.  According to the plea agreement, De la Cruz’s co-conspirators would then transmit thousands of international calls over the internet to De la Cruz’s residence, where he would route them through the re-programmed cellphones to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates.  The calls were billed to the customers’ compromised accounts. 

In addition, De la Cruz admitted that from March 2011 through April 2013, co‑conspirators sent him more than 700 emails containing approximately 2,158 telecommunications identifying numbers associated with cellphone account holders around the United States.  He also admitted that, as part of the conspiracy, he received tens of thousands of dollars from at least one Voice over Internet Protocol (VoIP) company for fraudulently routing international calls through his call center.

De la Cruz is a citizen of the Dominican Republic.  He was arrested in the Dominican Republic at the request of the United States and then, in August 2018, extradited to Miami, where he is currently in custody.

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

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

A federal court in Las Vegas, Nevada permanently enjoined six individuals and 14 corporate entities from activities related to an alleged mail fraud scheme, the Department of Justice announced today.

In a complaint filed in February, 2018, the United States alleged that the defendants mailed thousands of fraudulent solicitations each week. The solicitations purported to inform recipients that they had won large cash or prize packages, but needed to pay a fee to claim the winnings. The solicitations were styled as individual notices and stressed to recipients that they must return the requested fee quickly. According to the complaint, some of the solicitations contained what appeared to be handwritten notes congratulating the recipients on their good fortune, while others reassured recipients that the letters were not a scam. Individuals who sent the requested fees did not receive the expected prizes. The complaint alleged that the Las Vegas-based scheme defrauded consumers out of more than $10 million.

“Consumers should be able to open their mail without encountering false promises of wealth,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “The Department has and will continue to relentlessly pursue schemes like this one.”

“Some of these defendants constantly changed their schemes in attempts to stay one step ahead of the law,” said Delany DeLeon-Colon, Inspector in Charge for the U.S. Postal Inspection Service. “These results make clear that we will peel back the layers, find the individuals behind these schemes, and hold them to account.”

The complaint alleged that defendant Patti Kern orchestrated the activities of the other individual defendants, all of whom live in the Las Vegas area. The complaint alleged that defendants Edgar Del Rio, Sean O’Connor, and Epifanio Castro printed the solicitations; defendant Andrea Burrow opened and processed victim responses; and defendant Stephen Fennell managed the scheme’s lists of recipients. The solicitations were mailed under a plethora of company names, including 11 of the entities named as corporate defendants in the complaint.  

The district court entered a default judgment against 11 defendants today and previously entered consent decrees against the nine other defendants named in the complaint. Those orders prohibit the defendants from mailing solicitations like those identified in the complaint, as well as from engaging in activities related to such mailings, including receiving, handling, or opening any victim mail responding to solicitations and using or benefiting from lists of victims who previously responded to solicitations. Additionally, the orders authorize the U.S. Postal Inspection Service to open mail that was detained by law enforcement and return payments to the scheme’s victims. 

The matter was handled by Trial Attorney Jacqueline Blaesi-Freed of the Civil Division’s Consumer Protection Branch, in coordination with the United States Attorney’s Office for the District of Nevada and the United States Postal Inspection Service.  Additional information on the original enforcement actions and Department of Justice’s efforts to combat elder fraud is at: https://www.justice.gov/opa/pr/justice-department-coordinates-nationwide-elder-fraud-sweep-more-250-defendants. 

The Department of Justice’s Office of Prosecutorial Development and Training (OPDAT), with the support of the Department of State’s International Narcotics and Law Enforcement Division (INL), celebrated the release of “Reflections on the Accusatory System: Shared Experiences” in the Salón Marqués-Conde of the Hotel Marquis Reforma in Mexico City on the evening of Nov. 7.

This volume, authored by a cohort of judges from the Puerto Rican Judiciary, the Federal Judiciary of the United States, and the Judiciary of Colombia, gathers the insights of OPDAT’s closest judicial partners on the role of judges within Mexico’s new accusatory criminal justice system.  These judges have generously volunteered their time and expertise to work with OPDAT’s Judicial Studies Institute (JSI) in Mexico and Puerto Rico since 2016.  The Honorable Edgardo Rivera García, Associate Justice of the Supreme Court of Puerto Rico, and the Honorable Gustavo Gelpí, Chief Judge of U.S. District Court for the District of Puerto Rico, have been especially instrumental in supporting OPDAT’s programming. The JSI program, funded by the Merida Initiative, strengthens the effectiveness of hundreds of Mexican federal appellate and amparo judges.  

“The exchange among our dear friends at the Puerto Rican Supreme Court and the Puerto Rican federal courts, gave us a completely distinct outlook from the judicial trainings in countries like Chile and Colombia,” said Justice of the First Chamber of the Mexican Supreme Court Justice, the Honorable Jorge Mario Pardo Rebolledo.  “The shared experience [of the Mexico-Puerto Rico Judicial Studies Institute] has been and continues to generate the most useful knowledge for Mexico’s new accusatory criminal justice system.”

This event commemorated the commitment of OPDAT and its partners to supporting Mexico’s judicial sector in the face of the challenges presented by transnational organized crime. 

 

Acting Attorney General Matthew Whitaker and Department of Homeland Security Secretary Kirstjen Nielsen today announced an Interim Final Rule declaring that those aliens who contravene a presidential suspension or limitation on entry into the United States through the southern border with Mexico issued under section 212(f) or 215(a)(1) of the Immigration and Nationality Act (INA) will be rendered ineligible for asylum. 

The Acting Attorney General and the Secretary issued the following joint statement: “Consistent with our immigration laws, the President has the broad authority to suspend or restrict the entry of aliens into the United States if he determines it to be in the national interest to do so. Today's rule applies this important principle to aliens who violate such a suspension or restriction regarding the southern border imposed by the President by invoking an express authority provided by Congress to restrict eligibility for asylum.  Our asylum system is overwhelmed with too many meritless asylum claims from aliens who place a tremendous burden on our resources, preventing us from being able to expeditiously grant asylum to those who truly deserve it.  Today, we are using the authority granted to us by Congress to bar aliens who violate a Presidential suspension of entry or other restriction from asylum eligibility.”

Section 212(f) of the Immigration and INA states that “[w]henever the President finds that the entry of any aliens or of any class of aliens into the United States would be detrimental to the interests of the United States, he may by proclamation, and for such period as he shall deem necessary, suspend the entry of all aliens or any class of aliens as immigrants or nonimmigrants, or impose on the entry of aliens any restrictions he may deem to be appropriate.”

Further, Section 215(a) of the INA states that it is “unlawful…for any alien to depart from or enter or attempt to depart from or enter the United States except under such reasonable rules, regulations, and orders, and subject to such limitations and exceptions as the President may prescribe.”

In Section 208(d)(5)(B) of the INA, Congress specified that the Attorney General “may provide by regulation for any other conditions or limitations on the consideration of an application for asylum.”

Today’s new rule applies to prospective presidential proclamations, and is not retroactive.

Asylum is a discretionary form of relief granted by the Executive Branch on a discretionary basis to those fleeing persecution on the basis of their race, religion, nationality, membership in a particular social group, or political opinion.  The rule does not render such aliens ineligible for withholding of removal under the INA or protection from removal under the Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment.

 

The Interim Final Rule can be found here.

A U.S. national and former medical student was sentenced to 264 months in prison for the 2017 shooting of a U.S. diplomat stationed at the U.S. Consulate in Guadalajara, Mexico.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia, Acting Special Agent in Charge Tom Jones of the FBI’s Miami Field Office and Principal Deputy Assistant Secretary Christian J. Schurman for U.S. Department of State Diplomatic Security and Director for Diplomatic Security Service (DSS), made the announcement.

Zia Zafar, 33, of Chino Hills, California, previously pleaded guilty to one count of attempted murder of an internationally protected person and one count of discharging a firearm during a crime of violence.  Zafar was sentenced by U.S District Judge Anthony J. Trenga of the Eastern District of Virginia.  In addition to the prison sentence, Zafar was sentenced to serve eight years of supervised release.

“Zia Zafar targeted a U.S. government employee and surveilled him before shooting him in the chest at close range,” said Assistant Attorney General Benczkowski.  “The Department of Justice will do everything in its power to prosecute anyone who targets U.S. officials at home or abroad.  I commend the investigative team and our law enforcement partners in Mexico for their outstanding work in bringing Zafar to justice for this premediated heinous act.”

“The FBI works closely with international partners and security services in order to conduct complex investigations and acquire evidence from abroad for criminal prosecutions in the United States,” said FBI Acting Special Agent in Charge Jones.  “I want to thank the Mexican government for their full support and cooperation throughout this investigation.”

“The Vice Consul was targeted and shot because he represented the United States,” said U.S. Attorney Terwilliger. “No one should doubt the resolve of law enforcement to steadfastly investigate and apprehend those who attack us. I wish to express our sincere thanks to the many United States and Mexican law enforcement agencies involved in the apprehension and return of this defendant to the United States to face justice.”“The Vice Consul was targeted and shot because he represented the United States,” said U.S. Attorney Terwilliger. “No one should doubt the resolve of law enforcement to steadfastly investigate and apprehend those who attack us. I wish to express our sincere thanks to the many United States and Mexican law enforcement agencies involved in the apprehension and return of this defendant to the United States to face justice.”

“Today’s sentencing of Zia Zafar sends a strong message: Diplomatic Security is committed to making sure those who attack diplomatic personnel representing America abroad face serious consequences,” said Principal Deputy Assistant Secretary Schurman.  “Diplomatic Security’s strong relationships with the U.S. Department of Justice and U.S. and foreign law enforcement partners around the world continue to be essential in the pursuit of justice.  Such crimes threaten the national security of the United States.”

According to admissions made in connection with his guilty plea and facts presented at the sentencing hearing, on Jan. 6, 2017, Zafar, then living in Guadalajara, Mexico, armed himself with a firearm and wore a wig and sunglasses to disguise his appearance.  He then waited in a parking garage for the victim, a vice consul who worked at the U.S Consulate in Guadalajara, following him as he walked towards his vehicle.  After noticing a security guard nearby, Zafar changed his location to the vehicle exit ramp, where he waited for the vice consul to exit.  When the vice consul approached the exit in his car, Zafar fired a single shot into the vehicle, striking the vice consul in his chest.  The vice consul survived, but the bullet remains lodged in his spinal column, as it was deemed too dangerous to remove.  Zafar admitted that he targeted the vice consul because he knew from earlier surveillance that the victim worked at the U.S. Consulate. 

FBI and DSS investigated the case in close cooperation with Mexican authorities and with valuable assistance from the Justice Department’s Office of International Affairs, the U.S. Drug Enforcement Administration and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  Trial Attorney Jamie Perry of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Ron Walutes of the Eastern District of Virginia prosecuted the case. 

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants THOMAS J.S. ATOIGUE, age 27, from Dededo, and AUSTIN JAY SAN NICOLAS, age 23, from Santa Rita, were sentenced on November 6, 2018, in District Court by Senior District Judge Alex R. Munson, for Theft of Mail, in violation of Title 18, United States Code, Section 1708. Defendant ATOIGUE was sentenced to two years probation, 100 hours of community service, and a $100 special assessment fee. Defendant SAN NICOLAS was sentenced to five months home detention with electronic monitoring, two years supervised release, 100 hours of community service, and a $100 special assessment fee.

          ATOIGUE worked as a cargo screener for Unlimited Services Group, which at the time sub- contracted under United Airlines for the handling of cargo for the United States Postal Service. SAN NICOLAS was a cargo lead for Unlimited Services Group. Both defendants processed mail for delivery to Guam.  During their employment, ATOIGUE and SAN NICOLAS stole numerous items from the mail system, including consumer electronics, Hydro Flasks, and vape juice. ATOIGUE retained, gifted, and sold approximately $16,037.87 in stolen items. SAN NICOLAS kept some of the stolen items and gave others to friends. SAN NICOLAS also stole a Springfield firearm during the course of his criminal conduct.  The total value of the items SAN NICOLAS stole and received was approximately $6,412.98.

          U.S. Attorney Anderson stated, “These are two of many recent cases involving the theft of mail by people working in positions of trust within a restricted-access area of Antonio B. Won Pat International Airport. Consumers expect to receive their goods that are shipped via the United States Postal Service. I am concerned that this pattern of activity is deterring off-island retailers from shipping to Guam, or otherwise increasing their cost of doing business here. The Department of Justice, in partnership with the United States Postal Inspection Service, will continue our enforcement efforts to ensure the integrity of the mail system. Those who engage in this unlawful activity should expect prosecution by our office and the consequences of a felony conviction.”

          Inspectors from the United States Postal Inspection Service conducted the investigation.  Assistant United States Attorney Stephen F. Leon Guerrero prosecuted the case.

          United States Attorney SHAWN N. ANDERSON announced today that Assistant United States Attorney (AUSA) Eric O’Malley will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 13, 2018, general election in the Northern Mariana Islands (NMI) which was delayed due to Typhoon Yutu.  AUSA O’Malley has been appointed to serve as the District Election Officer (DEO) for the District of the NMI and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

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

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

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

            The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 13, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Anderson stated that AUSA/DEO O’Malley will be on duty in this District while the polls are open.  Mr. O’Malley can be reached by the public by calling (670) 236-2980.

            In addition, the local FBI office will be available to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public by calling Special Agent Brandon Ridenhour at (670) 237-0205.

            Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

            United States Attorney Anderson said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

The Justice Department today announced that it has reached a settlement with MJFT Hotels of Flushing LLC (MJFT), the management company operating the Hyatt Place Hotel -- Flushing/Laguardia Airport in Queens, New York.  The settlement resolves a complaint that the company discriminated against a work-authorized immigrant in violation of the anti-discrimination provision of the Immigration and Nationality Act (INA). 

The Department’s investigation, initiated based on a worker’s complaint, concluded that MJFT engaged in citizenship status discrimination against an asylee by removing him from the hiring process for a job at the hotel because he was not a lawful permanent resident or U.S. citizen.  Asylees have permanent work authorization, like U.S. citizens, U.S. nationals, refugees, and lawful permanent residents, and employers may not discriminate against them in hiring unless they have a specific legal justification for doing so. 

Under the settlement agreement, MJFT will pay a civil penalty, train its staff, and be subject to departmental monitoring and reporting requirements for three years. 

“In general, employers may not restrict the employment opportunities of asylees because of their citizenship or immigration status,” said Principal Deputy Assistant Attorney General John Gore of the Civil Rights Division.  “The Department is committed to enforcing workplace laws that prohibit discrimination to ensure that individuals have an opportunity to be fully and fairly evaluated based on their merits when they apply for jobs.”

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; 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.

Former U.S. Congressman Stephen E. Stockman was sentenced today to serve 120 months in prison and ordered to pay $1,014,718.51 in restitution, to be followed by three years of supervised release, for orchestrating a four-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 his campaigns for public 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, Special Agent in Charge Matthew J. DeSarno of the FBI’s Washington Field Office’s Criminal Division and Special Agent in Charge D. Richard Goss of the IRS Criminal Investigation (IRS-CI) Houston Field Office, made the announcement.

“Former Representative Stockman stole hundreds of thousands of dollars from charities, then used the money to pay personal expenses and fund his political campaigns,” said Assistant Attorney General Benczkowski.  “As this case demonstrates, the Justice Department and our law enforcement partners will aggressively pursue corrupt public officials, including those who seek to corrupt our elections for personal gain.”

“At trial, the government proved to the jury that former Congressman Stockman ran his campaign and fraudulent charities to simply enrich himself and defrauded well-meaning donors,” said U.S. Attorney Patrick. “This type of corruption by public officials gives our entire democratic system a black eye.”

Former U.S. Representative Stephen E. Stockman, 61, 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, making false statements to the Federal Election Commission, making excessive coordinated campaign contributions, money laundering, and filing a false tax return.  Two of Stockman’s former congressional staffers previously pleaded guilty in the case.  Thomas Dodd, 39, of Houston, Texas, 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.  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.

“Former Congressman Stockman was entrusted by his constituents to serve in their best interest,” said FBI Special Agent in Charge DeSarno.  “Instead, Stockman used his position in a series of schemes for personal gain at the expense of the public. Today’s sentence should send a clear message that the laws of the land apply to everyone, regardless of position or power. The FBI and our partners at the IRS will continue our efforts to identify fraudulent practices carried out by elected representatives. Public officials who abuse their position will be investigated, prosecuted, and subjected to the full punishment of the law for their actions.”

“Congressman Stockman used his position to defraud charitable foundations to advance his political career and pay for personal expenses,” said IRS-CI Special Agent in Charge Goss.  “His actions and failure to pay taxes on these illicit funds not only undermines the American tax system, but cultivates a lack of trust in our elected officials.  Today’s sentencing demonstrates IRS-Criminal Investigation’s commitment to bring justice to those public officials who believe they are above the law.”

According to the evidence presented at 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.  Trial Attorneys Ryan J. Ellersick and Robert J. Heberle 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. 

A former recruiter of U.S. military language interpreters was charged in an indictment filed today for his role in an alleged scheme to recruit unqualified language interpreters to be deployed with U.S. combat forces in Afghanistan in 2011 and 2012, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Inspector General for Afghanistan Reconstruction John F. Sopko.

Abdul Aman, 34, of Fairfax, Virginia, was charged in the District of Maryland with one count of conspiracy to commit mail fraud and wire fraud and one count of major fraud against the United States.  Aman will be arraigned on the charges on Nov. 8.

The indictment alleges that Aman, while working as a recruiter for a U.S. government contractor, circumvented procedures designed to ensure that candidates for jobs as language interpreters for the U.S. military met minimum proficiency standards, which resulted in unqualified language interpreters being hired and later deployed alongside U.S. combat forces in Afghanistan.  Aman’s employer was a subcontractor on a multimillion-dollar Defense Department contract to supply qualified language interpreters to support U.S. military operations around the world.  To carry out the fraud, the indictment alleges, Aman arranged for a close associate to take language tests for candidates who Aman knew did not meet minimum proficiency standards. Aman allegedly obtained financial bonuses from his employer based on the number of candidates whom his employer hired through his efforts.

This case was investigated by the Special Inspector General for Afghanistan Reconstruction 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.

The husband and wife co-owners of a Miami, Florida pain management clinic and a patient recruiter who doubled as a drug diverter were sentenced to prison today for their participation in a scheme to unlawfully distribute thousands of pills of oxycodone.

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 U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration’s (DEA) Miami Field Division made the announcement.  

David Bosch, 46, and Tania Sanchez, 47, both of Hialeah, Florida, and Odalys Abreu, 45, of Miami, were sentenced by Chief U.S. District Judge K. Michael Moore of the Southern District of Florida.  Bosch, Sanchez and Abreu were sentenced to serve 108, 97 and 57 months in prison followed by three years of supervised release, respectively.  In addition to the prison term, U.S. District Court Judge Moore ordered Abreu to pay a forfeiture money judgment of $75,000 and ordered Bosch and Sanchez to pay a forfeiture money judgment in the amount of $131,250, jointly and severally.  Each of the defendants pleaded guilty in August 2018 to one count of conspiracy to distribute controlled substances.

“The three defendants sentenced today ran a pill mill masquerading as a cash-only ‘pain clinic’ that issued medically unnecessary prescriptions for thousands of tablets of oxycodone,” said Assistant Attorney General Benczkowski.  “The Department of Justice will use every tool at its disposal to aggressively pursue the pill mills—and their owners and operators—flooding our communities with illicit opioids that kill tens of thousands of Americans every year.”

“We are committed to investigating healthcare providers who illegally distribute opioids like common drug dealers,” said HHS-OIG Special Agent in Charge Richmond.  “We will continue to work closely with our law enforcement partners to hold accountable those who are fueling the deadly opioid epidemic.”

According to admissions made as part of their plea agreements, Bosch and Sanchez owned and operated East Medical Office Inc. (East), purportedly a pain management clinic, located at 3778 West 12th Avenue, in Hialeah.  Bosch incorporated the cash-only clinic in April 2017 and ran it with Sanchez until their arrests on May 3, 2018.  Bosch and Sanchez hired a physician to be the purported medical doctor of East because they knew the physician would write prescriptions for oxycodone without regard to medical necessity, they admitted.   They paid the physician $125 for each prescription.  They also admittedly conspired with patient recruiters and drug diverters to distribute oxycodone.  Bosch introduced a purported patient recruiter to Abreu and informed the recruiter that the recruiter could make money by obtaining oxycodone pills from medically unnecessary prescriptions from East and then selling the pills, Bosh admitted.  Additionally, Sanchez filled out fraudulent medical paperwork for purported patients, she admitted.  

According to admissions made as part of her plea agreement, Abreu recruited her own patients to visit East.  Abreu brought to East at least 18 individuals who paid approximately $250 for each purported “medical consultation” in order to receive controlled substances, especially oxycodone, that were not medically necessary.  Abreu’s recruits received prescriptions for at least 5,000 tablets of oxycodone 30 mg.  Abreu also offered to purchase pills from another individual whom she believed was a patient recruiter at East, she admitted.   

Ledif Acanda Machado, 39, of Miami, Florida, who was charged in this conspiracy, remains a fugitive.

This case was investigated by the FBI, HHS-OIG, USSS and the DEA.  Trial Attorney Adam Yoffie of the Criminal Division’s Fraud Section is 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, now operating in 14 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.

Two former commodities traders of a New York, New York-based financial services firm have pleaded guilty for their participation in a $60 million commodities fraud and spoofing conspiracy that was perpetrated through the U.S. commodities markets.  One of the traders also pleaded guilty for his participation in a second commodities fraud and spoofing conspiracy at another financial services firm based in Chicago, Illinois.

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 Jeffrey S. Sallet of the FBI’s Chicago Field Office made the announcement.

Krishna Mohan, 33, of New York, New York, pleaded guilty today to one count of conspiracy to engage in wire fraud, commodities fraud and spoofing.  Sentencing is scheduled for Feb. 28, 2019 before U.S. District Judge Gray H. Miller of the Southern District of Texas.

Kamaldeep Gandhi, 36, of Chicago, pleaded guilty on Nov. 2 to two counts of conspiracy to engage in wire fraud, commodities fraud and spoofing.  Sentencing is scheduled for Feb. 22, 2019 before U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas.

As part of their pleas, Gandhi and Mohan admitted that, from March 2012 to March 2014, they conspired with Yuchun “Bruce” Mao and others at the first firm (Trading Firm A) to mislead the markets for E-Mini S&P 500 and E‑Mini NASDAQ 100 futures contracts traded on the Chicago Mercantile Exchange (CME) and E-Mini Dow futures contracts traded on the Chicago Board of Trade (CBOT).  Gandhi and Mohan further admitted that they and their co-conspirators placed thousands of orders that they did not intend to execute, or “spoof orders,” in order to obtain executions of other orders, or “primary orders,” at better prices, quantities and/or times than otherwise possible, to the benefit of the co-conspirators and Trading Firm A.  Gandhi and Mohan further admitted that the United States has calculated that the scheme resulted in market losses of over $60 million.

Also, as part of Gandhi’s plea, he further admitted that, from May 2014 through October 2014, while employed at the second firm (Trading Firm B), he conspired with others to mislead the markets for E‑Mini S&P 500 futures contracts traded on the CME by agreeing to place, and himself placing, hundreds of spoof orders for E-Mini S&P 500 futures contracts in order to create the false and misleading appearance of increased supply or demand.  Gandhi further admitted that the United States has calculated that the scheme resulted in market losses of over $1.3 million.

The FBI’s Chicago Field Office is investigating the case.  Trial Attorneys Mark Cipolletti, Jeffery Le Riche and Matthew Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney John Lewis of the Southern District of Texas are prosecuting the case.  The Commodity Futures Trading Commission’s Division of Enforcement provided substantial assistance in this case and referred this matter to the Department.

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

A former precious metals trader at a United States bank (Bank) pleaded guilty in a proceeding unsealed yesterday to commodities fraud and a spoofing conspiracy in connection with his participation in fraudulent and deceptive trading activity in the precious metals futures contracts markets.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney John H. Durham of the District of Connecticut and Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office made the announcement.

John Edmonds, 36, of Brooklyn, New York, pleaded guilty under seal on Oct. 9 in the District of Connecticut to an information charging him with one count of commodities fraud and one count of conspiracy to commit wire fraud, commodities fraud, commodities price manipulation and spoofing.  Sentencing is scheduled for Dec. 19 before U.S. District Judge Robert N. Chatigny of the District of Connecticut. 

“For years, John Edmonds engaged in a sophisticated scheme to manipulate the market for precious metals futures contracts for his own gain by placing orders that were never intended to be executed,” said Assistant Attorney General Benczkowski.  “The Criminal Division is committed to prosecuting those who undermine the investing public’s trust in the integrity of our commodities markets through spoofing or any other illegal conduct.”

“This defendant was involved in manipulating the precious metals commodity markets for several years, and I thank the FBI for its diligent investigation of this matter and its commitment to hold accountable those who use technology to their advantage to cheat these markets.” said U.S. Attorney Durham.  “The investigation of deceptive trading practices by others involved in this scheme is ongoing.”

"With his guilty plea, Edmonds admitted he intended to introduce materially false and misleading information into the commodities markets,” said FBI Assistant Director in Charge Sweeney. “By conspiring with his trading partners to place spoof orders, he blatantly attempted to profit off of an unfair market that he helped create.  The FBI will continue to work with our partners to insure financial markets remain a level playing field for all investors."

As part of his plea, Edmonds admitted that from approximately 2009 through 2015, he conspired with other precious metals traders at the Bank to manipulate the markets for gold, silver, platinum and palladium futures contracts traded on the New York Mercantile Exchange Inc. (NYMEX) and Commodity Exchange Inc. (COMEX), which are commodities exchanges operated by CME Group Inc.  Edmonds and his fellow precious metals traders at the Bank routinely placed orders for precious metals futures contracts with the intent to cancel those orders before execution (the Spoof Orders), he admitted.  This trading strategy was admittedly intended to inject materially false and misleading liquidity and price information into the precious metals futures contracts markets by placing the Spoof Orders in order to deceive other market participants about the existence of supply and demand.  The Spoof Orders were designed to artificially move the price of precious metals futures contracts in a direction that was favorable to Edmonds and his co-conspirators at the Bank, to the detriment of other market participants.  In pleading guilty, Edmonds admitted that he learned this deceptive trading strategy from more senior traders at the Bank, and he personally deployed this strategy hundreds of times with the knowledge and consent of his immediate supervisors.

This case is the result of an ongoing investigation by the FBI’s New York Field Office.  Trial Attorney Matthew F. Sullivan of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Avi M. Perry of the District of Connecticut are prosecuting the case.

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

On Friday, Nov. 2, a federal jury found a patient recruiter guilty for her role in a scheme involving approximately $1.1 million in fraudulent Medicare claims for home health care that were procured through the payment of kickbacks. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy Slater of the FBI’s Detroit Division, Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office, and Special Agent in Charge Manny Muriel of the IRS Criminal Investigation (IRS-CI) Detroit Office, made the announcement.

Sophia Eggleston, 56, of Detroit, Michigan, was convicted of one count of conspiracy to receive health care kickbacks and two counts of receipt of health care kickbacks following a three-day trial.  Sentencing has been scheduled for Feb. 6, 2019 before U.S. District Judge Bernard Friedman of the Eastern District of Michigan, who presided over the trial.

According to evidence presented at trial, from 2009 to 2012, Eggleston and her co-conspirators engaged in an illegal kickback scheme to defraud Medicare of approximately $1.1 million through fraudulent home health claims.  The evidence showed that Eggleston solicited and received kickbacks in exchange for referring Medicare beneficiaries to serve as patients at a home health agency owned by her co-conspirators.  Eggleston’s co-conspirators then submitted claims to Medicare for home health services that were purportedly provided to those beneficiaries.

The FBI, HHS-OIG and IRS-CI investigated the case.  Trial Attorneys Stephen Cincotta and Howard Locker 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.

The Justice Department today announced its Election Day plans for the Nov. 6, 2018 general election. The Civil Rights Division will monitor compliance with the federal voting rights laws by deploying personnel to 35 jurisdictions in 19 states.

“Voting rights are constitutional rights, and they’re part of what it means to be an American,” Attorney General Jeff Sessions said. “The Department of Justice has been entrusted with an indispensable role in securing these rights for the people of this nation.  This year we are using every lawful tool that we have, both civil and criminal, to protect the rights of millions of Americans to cast their vote unimpeded at one of more than 170,000 precincts across America.  Citizens of America control this country through their selection of their governmental officials at the ballot box. Likewise, fraud in the voting process will not be tolerated. Fraud also corrupts the integrity of the ballot.”

State and local governments have primary responsibility for administering elections in the United States. The Civil Rights Division is charged with enforcing the federal voting rights laws that protect the rights of all citizens to access the ballot on Election Day. Since the passage of the Voting Rights Act in 1965, the Division has regularly monitored all kinds of elections in the field around the country throughout every year to protect the rights of all voters, and not just in federal general elections. On Nov. 6, the Division again will be monitoring in the field around the country.

On Election Day, the Division staff members will be available all day by telephone to receive complaints from the public related to possible violations of the federal voting rights laws (1-800-253-3931 toll free or 202-307-2767 or TTY 202-305-0082).  In addition, individuals may also report complaints by fax to 202-307-3961, by email to voting.section@usdoj.gov, and by a complaint form on the Department’s website: www.justice.gov/crt/votercomplaint.

Allegations of election fraud are handled by the 94 U.S. Attorneys’ Offices across the country and the Criminal Division’s Public Integrity Section. Complaints may be directed to the local U.S. Attorneys’ Office or local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and their telephone numbers can be found at www.fbi.gov/contact-us.

Complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the Department after local authorities have been contacted.

On Election Day, the Civil Rights Division plans to deploy personnel to 35 jurisdictions in 19 states to monitor for compliance with the federal voting rights laws: 

• Bethel Census Area, Alaska;
• Dillingham Census Area, Alaska;
• Kusilvak Census Area, Alaska;
• Yukon-Koyukuk Census Area, Alaska;
• Apache County, Arizona;
• Cochise County, Arizona;
• Maricopa County, Arizona;
• Navajo County, Arizona;
• Sacramento County, California;
• San Mateo County, California;
• DeSoto County, Florida;
• Palm Beach County, Florida;
• Pinellas County, Florida;
• Fulton County, Georgia;
• Gwinnett County, Georgia;
• Buena Vista County, Iowa;
• Ford County, Kansas;
• Lowell, Massachusetts;
• Malden, Massachusetts;
• Clark County, Nevada;
• Washoe County, Nevada;
• Middlesex County, New Jersey;
• Union County, New Jersey;
• Erie County, New York;
• Benson County, North Dakota;
• Rolette County, North Dakota;
• Texas County, Oklahoma;
• Lehigh County, Pennsylvania;
• Pawtucket, Rhode Island;
• Buffalo County, South Dakota;
• Harris County, Texas;
• Tarrant County, Texas;
• Waller County, Texas;
• San Juan County, Utah; and
• Fairfax County, Virginia.

The Civil Rights Division will gather information on, among other things, whether voters are subject to different voting qualifications or procedures on the basis of race, color or membership in a language minority group; whether jurisdictions are complying with the language minority provisions of the Voting Rights Act; whether jurisdictions permit a voter to receive assistance by a person of his or her choice if the voter has a disability or is unable to read or write; whether jurisdictions provide polling locations and voting systems allowing voters with disabilities to cast a private and independent ballot; whether jurisdictions comply with the voter registration list requirements of the National Voter Registration Act; and whether jurisdictions comply with the provisional ballot requirements of the Help America Vote Act.  Division personnel will also maintain contact with local election officials.

The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act, and the Civil Rights Acts. The Division’s Disability Rights Section enforces the Americans with Disabilities Act to ensure that persons with disabilities have a full and equal opportunity to vote. Information about the Americans with Disabilities Act and about how to file a disability related complaint can be found at www.ada.gov. The Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion.  

Last week, the Justice Department announced efforts to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.  More information about the federal voting rights laws is available on the Civil Rights Division’s website at www.justice.gov/crt/voting-section.

Former St. Martinville, Louisiana, Police Department (SMPD) Deputy Chief of Investigations Codi Dodge, 35, was found guilty today in the Western District of Louisiana of four felony counts, including a civil rights violation for using excessive force against an arrestee, and three counts of obstruction and conspiracy to cover up the incident.   

After five days of trial, the jury convicted Dodge of using excessive force on an arrestee, in violation of the arrestee’s Fourth Amendment rights to be free from unreasonable force. The jury also convicted Dodge of obstructing justice by falsifying records related to the unlawful use of force incident, and by conspiring with other members of the St. Martinville Police Department to cover up his actions. 

“Illegal conduct by officers who abuse their power and violate the civil rights of the citizens they promise to serve harms the public trust and will not be tolerated,” said Principal Deputy Assistant Attorney General John Gore. “The Department will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”

“Law enforcement officers are sworn to uphold and defend the laws of our nation,” said U.S. Attorney David C. Joseph. “When they themselves break those laws, they violate not just the rights of their victims, but also compromise the public's trust in law enforcement. My office will hold them accountable.”

Evidence presented at trial established that, on Aug. 13, 2016, Dodge forced entry into the home of an individual he suspected had stolen from him. After unlawfully entering the individual’s home, Dodge threatened the individual before striking him in the face with a firearm, causing bodily injury. Dodge then arrested the individual, and brought him back to the St. Martinville Police Department, where Dodge continued to threaten him. After learning that the incident had been reported to the FBI, Dodge conspired with other members of the St. Martinville Police Department to falsify reports regarding the incident, and to mislead the FBI in its investigation of the matter.

Dodge faces a statutory maximum of 55 years in prison, though the actual sentence will be set by the court at a later date.

This case was investigated by the FBI’s Lafayette, Louisiana, Resident Agency. The case is being prosecuted by Deputy Chief Bobbi Bernstein and Trial Attorney Tim Visser of the Civil Rights Division and Assistant U.S. Attorney John Luke Walker of the Western District of Louisiana. Trial Attorney Risa Berkower of the Civil Rights Division participated in the investigation of the case.

A former paralegal specialist for the San Diego Division of the FBI was sentenced today to 24 months in prison for embezzling nearly $250,000 in government funds.  Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge James K. Cheng of the Department of Justice Office of the Inspector General’s (DOJ-OIG) Los Angeles Field Office made the announcement.

Lynn M. Morris, 56, of San Diego, California, pleaded guilty on March 7 to one count of embezzlement of government property.  In addition to the prison term, U.S. District Court Judge Larry Alan Burns ordered Morris to pay $278,000 in restitution. 

“Lynn Morris capitalized on her position at the FBI to line her own pockets with stolen government funds,” said Assistant Attorney General Benczkowski.  “This conviction demonstrates the Department of Justice’s commitment to investigating and prosecuting government employees who abuse their authority.  Individuals who violate the public trust will be held accountable.”

“Lynn Morris abused her position for personal gain and betrayed the trust of her FBI colleagues,” said DOJ-OIG Special Agent in Charge Cheng.  “The Office of the Inspector General is resolute in its commitment to protecting the integrity of the Department of Justice by investigating those engaged in corruption.”

“After Lynn Morris’ guilty plea in March of this year, the San Diego FBI worked closely with the Department of Justice Office of Inspector General in order to fully investigate the conduct of our employee,” said FBI San Diego Division Special Agent in Charge John Brown.  “We were resolute to restoring the integrity and trust that these criminal actions had tarnished by locating every dollar she had stolen from the government.” 

According to documents submitted in connection with her plea, between July 2014 and November 2016, Morris embezzled approximately $159,821.90 that belonged to the United States and converted the funds for her own personal use.  The funds were held in an account owned by the FBI San Diego Division’s Asset Forfeiture Unit (AFU), where Morris was a paralegal specialist and the AFU’s designated coordinator.  The court found that Morris also embezzled $92,010.92 from an additional AFU account and stole $26,351.10 from FBI evidence rooms.  Morris admitted that to convert government funds to her own use, she used her knowledge and position within the FBI to withdraw cash from the AFU’s account undetected and deposited portions of the stolen proceeds into her personal checking account.

This case was investigated by the Department of Justice Office of the Inspector General, with assistance from the FBI San Diego Division.  Trial Attorneys Marco A. Palmieri and Jessica C. Harvey of the Criminal Division’s Public Integrity Section prosecuted the case.

 

 

A Port St. Lucie, Florida, man was convicted by a federal jury today in the U.S. District Court for the Southern District of Florida of ten counts of aiding and assisting in the filing of false income tax returns and three counts of filing false income tax returns announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ariana Fajardo Orshan.

According to court documents and evidence presented at trial, from 2012 through 2015, Richard Maurival prepared income tax returns for clients that claimed false education credits and false business expenses, and other deductions to inflate by thousands of dollars refunds paid by the Internal Revenue Service.  In addition to filing fraudulent income tax returns for his clients, Maurival falsified his own income tax returns, by not fully reporting the fees he earned in his tax preparation business for tax years 2012, 2013, and 2014.

U.S. District Judge James Ivan Cohn for the Southern District of Florida set sentencing for January 17, 2019. The defendant faces a maximum possible sentence of 3 years in prison on each count, as well as a period of supervised release, restitution, and monetary penalties. 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Orshan commended special agents of the Internal Revenue Service Criminal Investigation, who investigated the case, and Tax Division Trial Attorney Grace Albinson and Assistant U.S. Attorney Diana Acosta, who prosecuted the case.

On Friday, November 2, 2018, a federal court in West Palm Beach, Florida, held that Renel Herard violated a permanent injunction entered against him on October 18, 2016, which barred him from preparing, filing, or assisting in the preparation or filing of federal tax returns for others.

In March 2017, following an investigation of Herard’s activities, the United States filed a Motion for Order to Show Cause asking the court to hold Herard in civil contempt based on evidence that he was assisting a business located three doors down from his own to prepare returns for his former customers in violation of the injunction against him. That investigation was undertaken by the Tax Division as part of its effort to monitor the conduct of return preparers who have been enjoined from preparing returns, and hold those who have continued to do so accountable for violating that ban. 

Faced with the evidence against him, Herard admitted that he assisted others to prepare returns in 2017 and agreed to reimburse the United States for the cost of its investigation into his activities.  Based on those admissions, the U.S. District Court for the Southern District of Florida found that Herard violated the injunction entered in October, 2016, and held him in civil contempt. For that contempt, the court ordered Herard to pay the United States $52,654 to reimburse the government for the costs that it incurred to investigate Herard’s post-injunction conduct.

Additionally, the court further enjoined Herard from maintaining any interest in, working at, or providing any direct or indirect assistance to an individual or entity that provides tax preparation services.

The injunction barring Herard from preparing tax returns remains in effect, and the court authorized the United States to continue to monitor his compliance with its orders.

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

In anticipation of the upcoming midterm elections on November 6, 2018, the Department of Justice today provided information about its efforts through the Civil Rights Division, the Criminal Division, the National Security Division, and the FBI to assist state and local jurisdictions in ensuring that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.

 “The Department of Justice and its component agencies protect our democratic process year-round,” said Attorney General Jeff Sessions. “During election season, we put in place additional security awareness and monitoring measures with our federal, state, and local partners to ensure the securest possible settings for our elections.  Any attempts to interfere or subvert our democratic process by foreign or domestic entities will be met with severe consequences.  The American people can be confident that their voices will be heard.”

Complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911.  They should also be reported to the Department of Justice after local authorities are contacted.

Below is a list of recent and ongoing action the Department of Justice has undertaken to ensure election security. The Department of Justice works year-round to ensure free and fair elections for all Americans.

 

Department of Justice’s Election Day Watch Program

In order to strengthen election security efforts, the Department of Justice and the FBI will host a live Election Day Watch at the FBI’s Strategic Information and Operations Center. President Trump outlined the Administration’s efforts to protect the elections from foreign interference in a Sept. 12 announcement.

 

Civil Rights Division

On Nov. 6, the Civil Rights Division will implement a comprehensive program to help protect the right to vote that will include the following:

• The Civil Rights Division will conduct monitoring in the field at polling places around the country.
• Civil Rights Division staff in Washington, D.C., will be ready to receive election-related complaints of potential violations relating to any of the federal statutes the division enforces. The division will take appropriate action and will coordinate with other entities within the Department of Justice concerning these complaints before, during, and after Election Day.
• Civil Rights Division staff will be available to receive complaints related to voting by telephone (1-800-253-393 or 202-307-2767) or by TTY (202-305-0082), by fax (202-307-3961), by email (voting.section@usdoj.gov), and by complaint form on the Department of Justice’s website at https://www.justice.gov/crt/voting-section.

For more information on the Justice Department's efforts to protect the right to vote and prosecute ballot fraud, see here and here.

 

Criminal Division

On Nov. 6, the U.S. Attorneys’ Offices will work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible voter fraud are handled appropriately.  Specifically:

• In consultation with federal prosecutors at the Department of Justice’s Public Integrity Section in Washington, D.C., the District Election Officers in U.S. Attorneys’ Offices, FBI officials at Headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open, to receive complaints from the public.
• Election-crime complaints should be directed to the local U.S. Attorney’s Office or the local FBI office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at https://www.justice.gov/usao/find-your-united-states-attorney. A list of FBI offices and accompanying telephone numbers can be found at https://www.fbi.gov/contact-us/
• Department of Justice Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorneys’ Offices and the FBI regarding the handling of election-crime allegations.

For more information on the Criminal Division’s efforts to fight election crime, see here and here.

 

National Security Division

On Nov. 6, National Security Division attorneys will participate in interagency Election Day sync meetings to ensure that the Department of Justice is aware of the latest information from the Intelligence Community, to secure necessary authorizations from Department leadership in the event of a federal response, and to coordinate any interagency response. 

In addition, lawyers from the National Security Division’s Counterterrorism Section and Counterespionage Section will be co-located at the FBI’s national monitoring Command Post (CP) at the Strategic Information and Operations Center (SIOC) at FBI Headquarters to provide operational guidance to local U.S Attorney’s Office and FBI field offices in the event of any election-related incident involving international or domestic terrorism, malicious cyber activities, or other threats to national security.

For more information on the National Security Division’s Counterterrorism Section, see here.

 

Report of The Attorney General’s Cyber Digital Task Force

On July 19, 2018, Deputy Attorney General Rod Rosenstein formally issued the Report of The Attorney General’s Cyber Digital Task Force in response to the establishment of the Cyber Digital Task Force by Attorney General Jeff Sessions in February of 2018.  The report addresses the Department of Justice’s efforts to address cyber-enabled threats, including malign foreign influence operations that target U.S. elections. The Deputy Attorney General’s full remarks at the Aspen Security Forum can be found here.

United States Attorney Announces Resources for Election Day Program

District Election Officer and Law Enforcement Resources Will Be AvailableTo Receive Complaints of Election Fraud and Voting Rights Abuses

NEWS RELEASE SUMMARY – November 2, 2018

            Adam L. Braverman, United States Attorney for the Southern District of California, announced today that Assistant United States Attorney Christopher P. Tenorio will lead the efforts on behalf of the United States Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming elections on November 6, 2018. Mr. Tenorio has been appointed to serve as the District Election Officer for the Southern District of California, which includes San Diego and Imperial Counties. He will be responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington, D.C.  

            United States Attorney Braverman said, “We are committed to ensuring that every citizen will have the right to vote without interference or discrimination.  Anyone with information regarding voting fraud or election abuses is encouraged to immediately contact our local FBI Office or our District Election Officer.” 

            The Department of Justice hopes to deter and prosecute election fraud and discrimination occurring at the polls. The Department also seeks to ensure public confidence in the integrity of the election process by providing local points of contact for the public to report possible election fraud and voting rights violations. United States Attorney Braverman stated that Mr. Tenorio will be on duty while the polls are open during Election Day. He can be reached at (619) 546-8413.

            In addition, the FBI will have Special Agents available to receive allegations of election fraud, intimidation, suppression of votes, and other election abuses.  The FBI can be reached at 858-320-1800.  Information can also be submitted to tips.fbi.gov.  Complaints may also be made directly to the Department of Justice’s Civil Rights Division, Voting Section in Washington, D.C. at (800) 253-3931 or (202) 307-2767.

Federal law protects against crimes such as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots against voters’ wishes or without their input. The law also contains special protections for eligible voters to exercise their rights free from intimidation or harassment. Prohibited actions include those designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that such actions are necessary to uncover illegal voting. Further, federal law protects the right of voters to cast their own ballot or receive assistance from a person of their choice.

On Nov. 2, a federal indictment against three Puerto Rican men was unsealed after their arrest for their roles in a conspiracy to provide pirated DISH Network (DISH) services to thousands of Puerto Ricans, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodriguez-Velez for the District of Puerto Rico.  DISH is a Colorado based company that provides satellite television to its customers for a fee and has invested heavily in measures to ensure that its services are not intercepted by copyright infringers, also known as pirates. 

The three-count indictment charges Arnaldo Vazquez, 41, aka “Naldo,” aka “naldo.dish;” Awildo Jimenez, 36, aka “Wildo,” “joselo626,” and “wildo20;” and Higinio Lamboy, 46, aka “Ingi,” with one count of conspiracy to circumvent protective systems, infringe copyrights and traffic in satellite decryption devices, one substantive count of trafficking in technology designed to circumvent technology copyright protection systems and one substantive count of circumventing a technological measure that protects a copyrighted work. 

The indictment describes Vazquez and Jimenez as owners and operators of a company that provided the pirated services to customers who paid a monthly cash fee to receive copyrighted content delivered from DISH satellites and identifies Lamboy as their salesman and repairman for the hardware that they provided to their customers.  The indictment further describes a complex scheme to steal the copyrighted content for financial gain through the interception of encrypted DISH signals that were distributed to paying DISH customers and decrypted through DISH-issued hardware.  For example, the indictment alleges that the defendants used DISH’s network control words, or decrypted code, and placed them onto an Internet Key Sharing (IKS) server, which was under their control.  Placing the control words on the IKS server aided the decryption and distribution of the pirated content.  The defendants also provided their customers with receivers that were programmed with software that allowed them to bypass DISH’s anti-piracy measures, which then allowed their customers to connect to the conspirators’ bootleg IKS server to access the copyrighted content. 

The indictment alleges that the defendants used online chat forums to discuss their criminal enterprise, resolve technical problems related to their DISH piracy, and facilitate the payment for their criminal deeds and purchase of equipment needed to further their scheme.

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case is the result of the investigative efforts of the FBI.  The case is being prosecuted by Senior Trial Attorney Kebharu Smith of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Nicholas Cannon of the District of Puerto Rico.

Today, the Drug Enforcement Administration (DEA) released its 2018 National Drug Threat Assessment, a comprehensive, strategic assessment of the illicit drug threats facing the United States. Attorney General Sessions made the following statement about the report:

“This new report from the DEA confirms that transnational drug cartels and foreign drug labs, working with street gangs, are flooding our communities with drugs like heroin, fentanyl, cocaine, and methamphetamines,” Attorney General Sessions said. “But under the Trump Administration, we are hammering these groups.  I have restored commonsense criminal charging and sentencing policies with our prosecutors, surged resources to jurisdictions facing some of the highest levels of violence and drug abuse, and targeted enforcement against the most violent offenders and organizations. Last year, the average federal sentence for drug trafficking rose, and we are already seeing encouraging results. Preliminary data from the CDC shows that drug overdose deaths actually began to decline in late 2017 and opioid prescriptions fell significantly. We also saw an actual decline in homicides and violent crimes in 2017 after increases in 2015 and 2016. Law enforcement is crime prevention—and that's what we're doing every day across America.  The Department of Justice will continue to focus resolutely on drug traffickers and protect the American people.”

Background:

According to the report’s summary: “Illicit drugs, as well as the transnational and domestic criminal organizations who traffic them, continue to represent significant threats to public health, law enforcement, and national security in the United States. Drug poisoning deaths are the leading cause of injury death in the United States; they are currently at their highest ever recorded level and, every year since 2011, have outnumbered deaths by firearms, motor vehicle crashes, suicide, and homicide. In 2016, approximately 174 people died every day from drug poisoning.”

As the report also notes:

“National and neighborhood-based street gangs and prison gangs continue to dominate the market for the street-sales and distribution of illicit drugs in their respective territories throughout the country. Struggle for control of these lucrative drug trafficking territories continues to be the largest factor fueling the street-gang violence facing local communities. . . .  Gangs’ desire to secure the largest share of the profits and the most lucrative territories for themselves drives violent turf wars that often result in the murder or attempted murder of rival gang members and drug dealers. Firearm-related violence will likely continue to be associated with the illicit drug trade due to the constant turf wars between gangs vying for control of territory. . . . Street gangs are increasingly distributing fentanyl and fentanyl-laced products as the drugs continue to flow into the United States. The monies involved with its street sale, and the demand for fentanyl by the consumers of illicit drugs, encourages gangs to become more involved with selling fentanyl.”

A Fairfax, Virginia man was sentenced today to 15 years in prison for downloading child pornography, followed by a lifetime term of supervised release, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger of the Eastern District of Virginia and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office announced.

Christopher James Tator, 31, a newspaper carrier, was sentenced by Senior U.S. District Judge T.S. Ellis III of the Eastern District of Virginia.  In August, Tator pleaded guilty to one count of receipt of child pornography by a person with a prior conviction relating to aggravated sexual abuse, sexual abuse, or abusive sexual conduct involving a minor. 

According to court documents, Tator was discovered by the FBI making child pornography files available over an Internet file-sharing network. A computer forensic examination of devices seized from Tator’s residence during a search warrant revealed that he had used a computer to download child pornography videos from a Dropbox cloud storage account.  Tator’s devices also contained hundreds of thumbnail images of children being sexually abused, many of which depicted the sexual abuse of infants. Tator is a registered sex offender as a result of a 2010 Prince William County conviction of attempting to take indecent liberties with children.

The case was investigated by the FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, with assistance from the High Technology Investigative Unit (HTIU) of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS).  CEOS Trial Attorney Kyle P. Reynolds prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. 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.

          United States Attorney SHAWN N. ANDERSON announced today that Assistant United States Attorney (AUSA) Marivic P. David will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 6, 2018, general election.  AUSA David has been appointed to serve as the District Election Officer (DEO) for the District of Guam and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.

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

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

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

            The franchise is the cornerstone of American democracy.  We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of election fraud or voting rights abuses on November 6, 2018, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Anderson stated that AUSA/DEO David will be on duty in this District while the polls are open.  Ms. David can be reached by the public by calling 479-4120.

            In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The local FBI field office can be reached by the public by calling Special Agent Joshua Kipp at 472-7465 or 645-1806.

            Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to voting.section@usdoj.gov or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.

            United States Attorney Anderson said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate.  It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”

The Justice Department today announced that Hudson Valley Federal Credit Union has agreed to pay $95,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing vehicles owned by SCRA-protected servicemembers without first obtaining the required court orders. Under the agreement, Hudson Valley has agreed to pay $65,000 to compensate seven servicemembers whose cars it unlawfully repossessed and will pay a civil penalty of $30,000 to the United States.

The Department launched an investigation into Hudson Valley’s repossession practices after learning of two private lawsuits filed in the Southern District of New York.  In both lawsuits, the plaintiffs alleged that Hudson Valley violated the SCRA by repossessing the plaintiffs’ vehicles after plaintiffs had entered military service.  The Department’s subsequent investigation identified seven additional violations and revealed that, prior to August 2014, Hudson Valley did not have any written policies or procedures that addressed the SCRA’s protections against non-judicial auto repossessions.  

Hudson Valley, headquartered in Poughkeepsie, New York, is one of the largest credit unions in the country.

“Financial institutions must recognize and honor their responsibilities to our men and women in uniform,” said Acting Assistant Attorney General John Gore.  “Our nation depends upon the selfless devotion and sacrifice of our servicemembers and we must ensure that they receive all rights and protections afforded to them by law.”

“Protecting service members is a high priority for this Office and the country,” said U.S. Attorney Geoffrey S. Berman. “We are pleased that Hudson Valley has taken these remedial steps, and this Office will continue to protect the rights of men and women in uniform.”

The agreement requires Hudson Valley to provide $10,000 in compensation to each of the six affected servicemembers, plus any lost equity in the vehicle with interest.  An additional servicemember, whose vehicle was repossessed but returned within 24 hours, will receive $5,000.  Hudson Valley has also taken steps to repair the credit of the affected servicemembers.   

The agreement resolves the claims and causes of action asserted in the United States’ Complaint against Hudson Valley filed in the United States District Court for the Southern District of New York.  Hudson Valley will contact servicemembers to be compensated through this settlement in the upcoming months and will distribute payments at no cost to servicemembers.

The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country.  Since 2011, the Department has obtained over $467 million in monetary relief for servicemembers through its enforcement of the SCRA.  For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov. 

Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office.  Office locations may be found at legalassistance.law.af.mil/content/locator.php.

Today, Attorney General Jeff Sessions issued the following statement regarding the court’s ruling in the Eastern District of California declaring California Senate Bill 50 (SB 50) unconstitutional:

“The court’s ruling is a firm rejection of California’s assertion that, by legislation, it could dictate how and when the federal government sells federal land. This was a stunning assertion of constitutional power by California, and it was properly and promptly dismissed by the district judge.  It is unfortunate that, in the interim, California forced both the Justice Department and the court to spend valuable time and resources to dispose of its baseless position.   

“This is the third time in the last few months that a federal court has struck down as unconstitutional all or parts of a law that California designed to frustrate federal law.  This trend is concerning, and the Department of Justice will continue to vigorously defend the rightful duties of the federal government in court, and ensure that no state, including California, subverts the enforcement of federal law.”    

In April this year, the Department of Justice filed a civil action in the U.S. District Court for the Eastern District of California against the State of California, Governor of California Edmund G. “Jerry” Brown Jr., and the California State Lands Commission, seeking a declaration that California Senate Bill 50 (SB 50), enacted in October 2017, is unconstitutional and seeking an injunction against implementation of this state law. The California law purported to give a state agency the power to block the sale, donation or exchange of federal lands by the federal government to any other person or entity. SB 50 also sought to penalize (up to $5,000) any person who knowingly filed real estate records pertaining to a federal land transfer unless the California government certified that the transfer complies with state law.

The District Court for the Eastern District of California found that SB 50 interfered with the federal government's constitutional authority to convey federal land in the State of California.  Under a range of federal laws, Congress has empowered federal agencies with the responsibility to determine when, to whom, for what purpose, and under what conditions federal interests in property will be conveyed. Federal conveyances serve a broad range of purposes such as supporting national defense, promoting local economic development, furthering land conservation, or otherwise providing important public benefits. 

Today, the U.S. Department of Justice, the U.S. Environmental Protection Agency (EPA), the State of Oklahoma, the Pennsylvania Department of Environmental Protection, and the State of West Virginia announced a settlement agreement with MPLX LP (MPLX) and 11 of its subsidiaries that will strengthen air pollution controls at 20 natural gas processing plants located in Pennsylvania, Ohio, West Virginia, Kentucky, Texas and Oklahoma.

The settlement addresses alleged violations of federal and state clean air laws governing the control of emissions from equipment leaks, pressure relief devices, storage tanks, truck and railcar loading, combustion devices, and process heaters. As part of the settlement, MPLX will also perform Supplemental Environmental Projects (SEPs), install equipment to control volatile organic compound (VOC) emissions from truck loading operations at two natural gas compressor stations, and pay a $925,000 penalty.

“This agreement will eliminate harmful air pollutants and create cleaner air for communities in six states,” said EPA Office of Enforcement and Compliance Assurance Assistant Administrator Susan Bodine.  “By improving air pollution control at 20 of their gas processing facilities, MPLX will reduce VOC emissions by more than 1,500 tons a year.”

Under the terms of the settlement, MPLX is expected to spend approximately $2.78 million to install and operate new technologies as well as improve and expand existing control techniques that minimize VOC emissions at its natural gas processing plants. Certain provisions of the consent decree also include measures to ensure MPLX’s compliance with nitrogen oxide (NOx) emission limits applicable to process heaters at MPLX’s facilities. In addition, MPLX will implement a mitigation project to reduce VOC emissions at two natural gas compressor stations in Pennsylvania and Ohio, respectively, through the installation of new technology to capture and control VOC emissions during truck loading operations, which is expected to cost at least $700,000. MPLX will also implement SEPs involving the installation and operation of ambient air monitoring stations adjacent to four natural gas processing plants located in Pennsylvania, West Virginia, Kentucky, and Texas, respectively, at a cost of $2.5 million. Finally, MPLX will implement a SEP involving the study of the effectiveness of computer predictive modeling of fugitive leaks as a potential emission reduction tool, at a cost of $75,000. 

VOCs include a variety of chemicals that may produce adverse health effects such as eye, nose, and throat irritation, headaches, nausea, and damage to the liver, kidney, and the central nervous system. VOCs also contribute to the formation of ground level ozone, which is not emitted directly into the air, but is created by chemical reactions between NOx and VOCs in the presence of sunlight. Breathing ozone can trigger a variety of health problems, particularly for children, the elderly, and anyone with lung diseases such as asthma. Ground level ozone can also have harmful effects on sensitive vegetation and ecosystems. Besides ground level ozone, NOx emissions also contribute to acid rain, particulate matter, water quality deterioration, and visual impairment.

The consent decree has been lodged with the U.S. District Court for the Northern District of Ohio and is subject to public comment for a period of at least 30 days. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.

For more information on the settlement, please visit: https://www.epa.gov/enforcement/mplx-lp-clean-air-act-settlement-information-sheet.

The Federal Circuit Court of Appeals issued a precedential opinion today affirming the Court of Federal Claims decision that federal corporate taxpayers may not deduct as a cost of goods sold expense an excise tax expense that was never actually incurred or paid, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and Deputy Assistant Attorney General Travis A. Greaves of the Justice Department’s Tax Division.

In Sunoco, Inc. v. United States, No. 2017-1402, the Federal Circuit Court of Appeals affirmed the decision of the Court of Federal Claims and the position of the United States. Sunoco, Inc., a petroleum and petrochemical company, claimed approximately $1 billion in alcohol fuel mixture credits on its federal excise tax returns thereby reducing its federal fuel excise tax liability by the same amount. By including the $1 billion in excise tax expenses in its cost of goods sold, Sunoco, Inc. sought to reduce its federal corporate income taxes with an excise tax expense that was never paid. The Federal Circuit held that the plain language of the Internal Revenue Code precluded Sunoco, Inc.’s attempt to obtain a $300 million dollar “windfall” reduction in tax. The court also stated, “We have already established that Congress does not generally allow taxpayers to receive a tax benefit twice.”

Principal Deputy Assistant Attorney General Zuckerman thanked Tax Division attorneys Judith Hagley, Gilbert Rothenberg, and Richard Farber, who handled the case on appeal for the government.

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

Principal Deputy Associate Attorney General Jesse Panuccio, Director Phil Keith of the Department of Justice’s Office of Community Oriented Policing Services (COPS Office), and Dr. Pete Blair, Executive Director of the Advanced Law Enforcement Rapid Response Training (ALERRT) Center at Texas State University today announced an $8.7 million grant to provide multi-disciplinary, scenario-based active shooter training to first responders across the country.

Today’s announcement took place during the ALERRT Active Shooter Integrated Response Conference, where emergency personnel heard from subject matter experts on best practices and lessons learned from some of the nation’s most tragic and horrific mass casualty events.  ALERRT is part of Texas State University, which has trained approximately 130,000 first responders since its inception in 2002.

“Training for first responders to take swift and effective action in active shooting situations is critically important,” said Principal Deputy Associate Attorney General Jesse Panuccio. “We can mitigate the loss of life in these horrific incidents by providing resources to better equip first responders and prepare community members, local law enforcement, and local government leaders. The Department of Justice fully supports the brave first responders who risk their own lives to protect the safety of our children, colleagues, and community members.”

“The funding announced here today comes at a critical time for our country,” said COPS Office Director Keith.  “As the demands placed on our nation’s first responders continue to grow with these violent mass casualty incidents, I believe it is our responsibility to make sure they have the tools, resources and training to properly respond to these attacks.”  

“This COPS funding will allow ALERRT to provide the training needed to prepare police, fire, and EMS services across the country to save as many lives as possible when these horrific attacks occur,” said Dr. Pete Blair, Executive Director of the ALERRT Center at Texas State University.

Physician stakeholders working in the fields of emergency medicine, trauma surgery, anesthesia, blood bank, critical care and blood collection center directors will join law enforcement, fire services, EMS, emergency communications and emergency management for the first time during this year’s ALERRT conference.  ALERRT’s multi-disciplinary approach is recognized as one of the nation’s leading training models, and the Department of Justice is pleased to announce additional funding for this effort.   

The 2018 investment from the Department of Justice for ALERRT will provide in-person training to an estimated 15,000 first responders, in addition to the 9,000 individuals that received the training in 2017.  ALERRT and the COPS Office are currently developing an online civilian training program, which will reach tens of thousands of citizens – helping to prepare them to take effective actions if they should find themselves in an attack.  

The ALERRT Center at Texas State University was created as a partnership between Texas State University, the San Marcos (TX) Police Department, and the Hays County (TX) Sheriff’s Office to address the need for active shooter response training for first responders.  In 2013, ALERRT was named the National Standard in Active Shooter Response Training by the FBI.

The COPS Office awards grants to hire community policing officers, develop and test innovative policing strategies, and provide training and technical assistance to community members, local government leaders, and all levels of law enforcement.  Since 1994, the COPS Office has invested more than $14 billion to help advance community policing.

Former fugitive and social security disability lawyer Eric Christopher Conn, 58, of Pikeville, Kentucky, was sentenced in September to a total of 27 years in prison for his role in retaliating against an informant, fleeing from the United States, and defrauding the U.S. Social Security Administration (SSA) of more than $550 million.  When he went to prison, however, approximately 6,000 to 7,000 client files relating to claims for social security benefits remained in his former Kentucky law office.  The building and land was forfeited to the United States and will be sold.  Before the building can be sold, the client files had to be removed and ultimately distributed to his former clients – a daunting task made even more difficult by the fact that they are attorney-client privileged materials.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Assistant Director Timothy Virtue of the U.S. Marshals Service’s Asset Forfeiture Division announced today that two Receivers were selected by Judge Danny C. Reeves of the Eastern District of Kentucky on Oct. 12, and that the Receivers have now successfully removed the files from the law office property to begin their inventory and distribution.  The files were located in the property that formerly housed Conn’s law practice at 9420 US Highway 23 South, Stanville, Kentucky. 

Judge Reeves appointed veteran attorneys Cary B. Howard and Barry Stilz, of the law firm Kinkead & Stilz, in Lexington, Kentucky, as the Court’s Receivers after the Kentucky State Bar refused to take on the project.  The Court directed the Receivers to collect, inventory, and to the extent possible, distribute the files to Conn’s former clients. 

Former clients of Eric Conn, or their counsel, should contact the Receivers if they wish to obtain their files.  The Receivers can be contacted at (859) 226-7580, or by e-mail at Receivers@ksattorneys.com

The case was investigated by the SSA Office of Inspector General, FBI, IRS Criminal Investigation and U.S. Department of Health and Human Services, Office of Inspector General.  Deputy Chief Darrin L. McCullough and Trial Attorney Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section are handling the forfeiture portion of the case, with previous forfeiture co-counsel including Assistant U.S. Attorneys Ann Marie Blaylock of the Western District of Kentucky, Elizabeth G. Wright of the District of Maryland, and Trey Alford of the Western District of Missouri, as well as Investigative Counsel Kristen M. Warden of the U.S. Department of Justice Office of the Inspector General.  Lead counsel on the criminal case was Trial Attorney Dustin M. Davis of the Department of Justice’s Fraud Section

A Roanoke, Virginia man was sentenced to 360 months in prison today, to be followed by a lifetime of supervised release, for enticement of a minor, receipt or attempted receipt of child pornography, and possession of child pornography.  Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia made the announcement.

Scott Curtiss Pieritz, 57, pleaded guilty on June 19, before Chief U.S. District Judge Michael F. Urbanski of the Western District of Virginia to one count of enticement of a minor, one count of receipt or attempted receipt of child pornography and one count of possession of child pornography. 

According to court documents, in July 2017, law enforcement agents were notified that Pieritz, who had a duty to register as a sex offender as a result of three prior child pornography convictions, was using social media applications to communicate with minors and ask them for nude images of themselves.   Forensic examination of Pieritz’s electronic devices seized pursuant to a search warrant confirmed that he was in possession of numerous images and videos of child pornography, had used applications such as Omegle and Musical.ly to entice minors to produce and send him child pornography, and had posed as a minor online.  At times, Pieritz also exchanged money and gifts for child pornography images from minors.  At the time of his arrest, Pieritz was employed as a cashier and dishwasher at K&W Cafeteria, in Roanoke.         

The case was investigated by the Virginia State Police.  Trial Attorney Nadia Prinz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Nancy Healey of the Western 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.

A federal grand jury sitting in the U.S. District Court for the Western District of Pennsylvania charged a Pennsylvania man with federal hate crimes, including the murder of 11 people, for his actions during the Oct. 27, 2018 shootings at the Tree of Life Synagogue in Pittsburgh’s Squirrel Hill neighborhood.  United States Attorney General Jeff Sessions, Acting Assistant Attorney General John Gore for the Civil Rights Division, U.S. Attorney for the Western District of Pennsylvania Scott W. Brady, and FBI-Pittsburgh Special Agent in Charge Robert Jones made the announcement.

Robert Bowers, 46, of Baldwin, Pa., was charged in a 44-count indictment returned today.

According to the indictment, on Oct. 27, 2018, Bowers drove to the Tree of Life Synagogue in Pittsburgh, Pennsylvania, where members of the Tree of Life, Dor Hadash, and New Light Jewish congregations gathered to engage in religious worship.  Bowers entered the building armed with multiple firearms, including Glock .357 handguns a Colt AR-15 rifle. The indictment alleges that while inside the Tree of Life Synagogue, Bowers opened fire, killing and injuring members of the three congregations, as well as injuring multiple responding public safety officers.  While inside the Tree of Life Synagogue, Bowers made statements indicating his desire to “kill Jews.”

Specifically, the indictment charges:

• Eleven counts of obstruction of free exercise of religious beliefs resulting in death; 
• Eleven counts of use and discharge of a firearm to commit murder during and in relation to a crime of violence;
• Two counts of obstruction of free exercise of religious beliefs involving an attempt to kill and use of a dangerous weapon and resulting in bodily injury;
• Eleven counts of use and discharge of a firearm during and in relation to a crime of violence;
• Eight counts of obstruction of free exercise of religious beliefs involving an attempt to kill and use of a dangerous weapon, and resulting in bodily injury to a public safety officer; and
• One count of obstruction of free exercise of religious beliefs involving use of a dangerous weapon and resulting in bodily injury to a public safety officer.

“Hatred and violence on the basis of religion can have no place in our society,” Attorney General Jeff Sessions said. “Every American has the right to attend their house of worship in safety. The defendant in this case allegedly murdered 11 innocent people during religious services and injured four law enforcement officers. These alleged crimes are incomprehensibly evil and utterly repugnant to the values of this nation. Therefore this case is not only important to the victims and their loved ones, but to the city of Pittsburgh and the entire nation. I want to express my thanks and admiration for the courage and professionalism of those officers who so quickly responded to this event, and especially to those that suffered wounds in the process. Our thanks is also extended to the Pittsburgh Bureau of Police, the FBI, and the ATF for their outstanding response to this violent and deadly attack. The Department of Justice, working with our state and local partners, will bring the full force of the law against anyone who would violate the civil rights of the American people and we are resolutely determined to achieve justice in this case.”

“A federal grand jury in western Pennsylvania returned a 44-count indictment against Robert Bowers for the killing of 11 worshipers at the Tree of Life synagogue on Saturday, October 27, 2018,” stated U.S. Attorney Brady.  “Today begins the process of seeking justice for the victims of these hateful acts, and healing for the victims’ families, the Jewish community, and our city.  Our office will spare no resource, and will work with professionalism, integrity and diligence, in a way that honors the memories of the victims.  This is what the public expects from the US Department of Justice.  And truly we, as Pittsburghers, can do no other.  It is time to go to work.”

“I want to assure everyone that the FBI has teams of professionals working toward a single goal: to piece together the facts, answer the questions and ensure justice is served,” said FBI Pittsburgh Special Agent in Charge Robert Jones. “We, as a community, are all united. I also want to thank local law enforcement and first responders for their heroic work. They showed professionalism and extraordinary bravery and their quick actions no doubt saved the lives of many other people that day. We are very lucky that such good people choose lives of service in law enforcement.”

The victims include 11 worshipers at the Tree of Life Synagogue who were killed, 2 members of the congregation who were critically injured by Bowers and 9 other members of the congregation who escaped unharmed.  Additionally, four law enforcement officers were injured trying to stop Bowers’ rampage.

Assistant United States Attorneys Troy Rivetti and Soo C. Song, along with Trial Attorney Julia Gegenheimer of the Civil Rights Division’s Criminal Section, are prosecuting this case on behalf of the government.

The FBI conducted the investigation leading to the Indictment in this case.

The defendant faces a maximum possible penalty of death, or life without parole, followed by a consecutive sentence of 535 years’ imprisonment.

An indictment is a formal accusation of conduct, not evidence of guilt. A defendant is presumed innocent unless and until proven guilty.

Racehorse training-center operator Evangeline Enterprises LLC has agreed to pay $300,000 in civil penalties and to make changes in its handling of polluted wastewater at its Louisiana facility to settle Clean Water Act claims filed by the U.S. Environmental Protection Agency (EPA) and the Louisiana Department of Environmental Quality (LDEQ), the Department of Justice and EPA announced today.

The settlement, contained in a proposed consent decree lodged today with the U.S. District Court for the Western District of Louisiana, resolves claims by EPA and LDEQ in a complaint filed on October 19, 2017.  The complaint alleged that Evangeline is illegally discharging process wastewater, contaminated with horse manure, urine, and other biological materials, from its facility into the Vermilion River and its tributary, the Francois Coulee, in violation of the Clean Water Act and the Louisiana Environmental Quality Act.

“Louisiana is a beautiful state with a vast, diverse ecosystem that is rich in natural resources, including its rivers, bayous, and coastal waters,” said U.S. Attorney David C. Joseph. “My office is committed to protecting these treasures from those who would illegally exploit or damage them. Today’s settlement is but one example of my commitment to aggressively prosecute, both civilly and criminally, those who poison Louisiana's environment and to seek restitution for any damages they inflict.”

“This agreement is the result of extensive cooperation between the state of Louisiana and EPA,” said Regional Administrator Anne Idsal for EPA Region 6. “Ensuring the lawful handling of wastes will mean cleaner streams and waterways in Louisiana, which is important for aquatic habitats, safe drinking water, and public recreation.”

Under the Clean Water Act, facilities like Evangeline’s that house more than 150 horses for 45 days or more in any 12-month period and discharge pollutants must obtain a permit and comply with rules to ensure that pollutants, including contaminated process wastewater, are not discharged to waters of the United States or waters of the State. Evangeline discharged process wastewater into drainage ditches and pipes at the facility that then flowed into the Francois Coulee and Vermilion River. To correct this, the retention control structure required under the settlement agreement will store all process wastewater at the facility and allow it to be routed for proper treatment to stop the unauthorized discharges to the Francois Coulee and Vermilion River.

Under the settlement, Evangeline will pay the civil penalties and submit an application for a Louisiana National Pollutant Discharge Elimination System permit, comply with best management practices for waste at the facility, and construct a waste retention control structure in compliance with federal and state regulations. In the event that Evangeline chooses to close the facility, the agreement provides alternative measures to require the company to eliminate further discharges of pollution into area waterways.

The proposed consent decree is subject to a 30-day federal public comment period, a 45-day Louisiana public comment period, and final court review and approval. A copy of the consent decree is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.

For more information on the settlement visit: https://www.epa.gov/enforcement/evangeline-enterprises-llc-settlement-information-sheet.

A former executive director at the Venezuelan state-owned oil company, Petróleos de Venezuela, S.A. (PDVSA), pleaded guilty today for his role in a billion-dollar international scheme to launder funds embezzled from PDVSA.

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.

Abraham Edgardo Ortega, 51, a Venezuelan national, who was PDVSA’s executive director of financial planning, pleaded guilty to one count of conspiracy to commit money laundering.  He is scheduled to be sentenced on Jan. 9, 2019 by U.S. District Judge Kathleen M. Williams of the Southern District of Florida, who accepted his plea today.

As part of his plea, Ortega admitted that in his position with PDVSA, he accepted $5 million in bribes to give priority loan status to a French company and a Russian bank, which were both minority shareholders in joint ventures with PDVSA.  Ortega was paid for this bribery scheme with the proceeds of a currency exchange scheme, through which $1.2 billion was embezzled, through bribery and fraud from PDVSA.  Ortega also admitted that in his position with PDVSA, he accepted $12 million in bribes for his participation in a PDVSA embezzlement scheme involving a loan and foreign-exchange contract.     

Ortega admitted that he worked with a co-defendant to launder $12 million that he received as bribe payments.  Ortega admitted that he and his co-defendant laundered $12 million through a sophisticated false-investment scheme that received money from a payment made to look like an investment into a fund, but, in fact, the payment was actually laundered out of the fund.  Surrounding and supporting this false-investment laundering scheme were complicit money managers, brokerage firms, banks and real estate investment firms in the United States and elsewhere, operating as a network of professional money launderers, Ortega admitted.   

Ortega’s co-conspirators indicted on Aug. 16 include former PDVSA officials, professional third-party money launderers and members of the Venezuelan elite, sometimes known as “boliburgués.”

An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. 

This case is the result of ongoing efforts by the Organized Crime Drug Enforcement Task Force’s (OCDETF) “Operation Money Flight,” a partnership among federal, state and local law enforcement agencies.  The OCDETF mission is to identify, investigate and prosecute high-level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.

HSI Miami, HSI London, HSI Rome and HSI Madrid investigated this case.  This case is being prosecuted by Assistant Chief David Johnson and Trial Attorney Gwendolyn A. Stamper of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Michael B. Nadler of the Southern District of Florida’s Economic and Environmental Crimes Section.  Assistant U.S. Attorney Nalina Sombuntham of the Southern District of Florida is handling the asset forfeiture aspects of the case.

The Criminal Division’s Office of International Affairs provided substantial assistance in this matter.   The National Crime Agency of the United Kingdom and Italian, Spanish and Maltese law enforcement authorities also provided assistance. 

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

A former correctional officer at Elayn Hunt Correctional Center in St. Gabriel, Louisiana, was indicted today by a federal grand jury on charges of beating a handcuffed and shackled inmate, and conspiring with other officers to cover up their misconduct by falsifying official reports and lying to investigators.  Two other correctional officers, Eric Norwood and Charles Philson, have previously pleaded guilty for their roles in the assault of the inmate.

Today’s indictment accuses Adrian Almodovar of federal civil rights, conspiracy, and obstruction violations. According to the indictment, Almodovar and other members of the tactical team assaulted an inmate during the course of a cell extraction, during transportation to the medical unit, and inside the medical unit. The inmate was handcuffed and shackled during the course of the assaults.

It is alleged that the defendants then drafted false reports in which they intentionally omitted that they used force on the inmate. Days after the assault, the defendants met with another officer at the a local restaurant in which they agreed that, if questioned about the assault by investigators, they would stick to the false story they wrote in their reports and claim that they did not use unlawful force.

An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty.

This case is being investigated by the Baton Rouge Division of the FBI and the Office of Louisiana Inspector General, and is being prosecuted by Trial Attorneys Christopher J. Perras and Zachary Dembo of the Department’s Civil Rights Division.

A federal jury today convicted eight Baltimore, Maryland men for conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG), a subset of the Black Guerrilla Family (BGF) gang, including nine murders, drug trafficking, and witness intimidation, as well as on conspiracy to distribute and possess with intent to distribute heroin, marijuana, and cocaine.  Several of the defendants were also convicted of related drug and firearms charges.   

The defendants convicted today are: Montana Barronette, aka “Tana,” and “Tanner,” 23; Terrell Sivells, aka “Rell,” 27; John Harrison, aka “Binkie,” 28; Taurus Tillman, aka “Tash,” 29; Linton Broughton, aka “Marty,” 25; Dennis Pulley, aka “Denmo,” 31; Brandon Wilson, aka “Ali,” 24; and Timothy Floyd, aka “Tim Rod,” 28.

The convictions were announced by Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Robert K. Hur for the District of Maryland; Special Agent in Charge Gordon B. Johnson of the FBI Baltimore Field Office; Interim Commissioner Gary Tuggle of the Baltimore Police Department; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration (DEA), Baltimore District Office and Anne Arundel County Police Chief Tim Altomare.

“For six years, Trained To Go terrorized the Sandtown neighborhood, committing murders, robberies, and other violence as they sold their poison on the streets of Baltimore,” said Assistant Attorney General Benczkowski.  “Today’s convictions ensure that Montana Barronette and the other seven defendants in this vicious gang now will be held accountable for their horrible crimes.”  

 “Federal, state and local law enforcement joined together to target the leaders and key members of one of the most violent gangs operating in Baltimore City,” said U.S. Attorney Hur. “Today’s convictions prove our continuing commitment to removing armed, violent criminals from our neighborhoods and bringing them to justice in the federal system, which has no parole—ever.”

“This investigation represents the epitome of law enforcement agencies working together to target and dismantle violent street gangs that threaten the safety and stability of our neighborhoods,” said FBI Baltimore Special Agent in Charge Johnson.  “The citizens of Baltimore City and Maryland have the FBI’s commitment that we will work with our local, state and federal partners to attack these dealers and remove violent criminals from their neighborhoods.”

According to the evidence presented at their 24-day trial, the defendants are all members of TTG, a criminal organization and subset of the Black Guerrilla Family (BGF) gang that operated in the Sandtown neighborhood of West Baltimore, whose members engaged in drug distribution and acts of violence including murder, armed robbery, and witness intimidation. Members and associates of TTG sold heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.

Specifically, the evidence proved that between May 20, 2010 and May 25, 2016, the defendants and other members of TTG committed acts of violence, including nine murders, shootings, armed robbery, and witness intimidation. The violent acts were intended to further the gang’s activities, protect the gang’s drug territory, and maintain and increase a member’s position within the organization.  Murders were committed in retaliation for individuals robbing TTG members of drugs and drug proceeds, or while TTG members robbed others of their drugs and drug proceeds, as well as in murder-for-hire schemes.  Further, the defendants engaged in witness intimidation through violence or threats of violence, to prevent individuals from cooperating with law enforcement.

The defendants all face a maximum sentence of life in prison on the racketeering and drug conspiracies.  Pulley and Wilson each also face a maximum sentence of 10 years in prison for being felons in possession of a firearm; and a mandatory minimum of five years, consecutive to any other sentence imposed, and up to life in prison for possession of a firearm in furtherance of a drug trafficking crime.  Tillman and Sivells also face up to 20 years in prison for distribution and possession with intent to distribute heroin.  U.S. District Judge Catherine C. Blake has scheduled sentencing.  The defendants remain detained.

Three other TTG members, all of Baltimore, previously pleaded guilty.  Brandon Bazemore, aka Man Man, 25, pleaded guilty to the racketeering conspiracy, including three murders and an attempted murder, as well as to the drug conspiracy.  Bazemore and the government have agreed that if the Court accepts the plea, Bazemore will be sentenced to 25 years in federal prison at his sentencing on Nov. 13.  Co-defendants Hisaun Chatman, 31, and James Woodfolk, 20, pleaded guilty to the drug conspiracy and were each sentenced to five years in prison, to be served concurrent to the state sentence each is currently serving.   

Co-defendant Roger Taylor, of Baltimore, is still a fugitive, and the charges against him are pending.  Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI Baltimore Field office at (410) 265-8080.

The investigation was conducted by the FBI, the Baltimore Police Department, the ATF, the DEA and the Anne Arundel County Police Department, including the FBI Baltimore Safe Streets Violent Gang Task Force, which includes FBI special agents and task force officers from the Baltimore, Baltimore County and Anne Arundel County Police Departments.  FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area, to address gang violence and the associated homicides in Baltimore.  The vision of the program is to use federal racketeering statutes to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities.                                                 

Special Assistant U.S. Attorney John C. Hanley of the Justice Department’s Organized Crime and Gang Section and Assistant U.S. Attorneys Christopher J. Romano and Daniel Gardner of the District of Maryland prosecuting the case.

 

Two Springfield Police Officers, one current and one former officer, were arrested today and charged in federal court in Springfield, Massachusetts, on allegations that they used unreasonable force against two Latino juveniles during an arrest. One of the officers is also charged with threatening the juveniles during an interrogation and falsifying subsequent reports regarding the incident. Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division; United States Attorney Andrew E. Lelling; and Harold H. Shaw, Special Agent in Charge of the FBI, Boston Field Division, made the announcement.

Gregg A. Bigda, 48, of Wilbraham, was charged in an indictment unsealed today with three counts of violating the civil rights of arrestees and one count of obstructing justice by writing a false report. Steven M. Vigneault, 48, of East Longmeadow, was charged in the same indictment with one count of violating the civil rights of an arrestee.

The indictment charges that, on Feb. 27, 2016, Bigda used unreasonable force against a juvenile, and that afterward, Bigda spat on him and said, “Welcome to the white man’s world.”  The indictment further charges that Vigneault used unreasonable force against a different juvenile.  According to the indictment, both uses of force involved the use of dangerous weapon and resulted in bodily injury.

"Even in the face of adversity, law enforcement officers are expected to conduct themselves professionally, respectfully, and with integrity,” said U.S. Attorney Andrew E. Lelling. “They are ambassadors for the rule of law, and when they themselves break those laws, they violate not just the rights of their victims, but compromise the public's trust in law enforcement. My Office is committed to holding our public servants accountable under the law and prosecuting those who abuse their positions of power."

"Most law enforcement officers are dedicated, honest, and fully committed to building trust within their communities, but those who break the law stain the reputation of the law enforcement profession,” said Harold H. Shaw, Special Agent in Charge of the FBI, Boston Field Division. “Badges and guns do not come with the authority to ignore the Constitution or the rights of others, and those who violate it will be held accountable."

The indictment further alleges that after the arrests, Bigda interrogated the juveniles without their parents present and without reading them their Miranda rights, and that, during the course of the interrogations, Bigda threatened the juveniles in a number of different ways.  For example, Bigda made the following threats against the first juvenile: to “crush [the juvenile’s] skull and [expletive] get away with it,” “bring the dog back [and] let him [expletive] go after” the juvenile; “[expletive] kill [the juvenile] in the parking lot”; “charge [the juvenile] with killing Kennedy and [expletive] make it stick,” “stick a [expletive] kilo of coke in [the juvenile’s] pocket and put [the juvenile] away for [expletive] 15 years,” and “kick [the juvenile] right in the [expletive] face as soon as [they] cross the Springfield line.” Bigda made the following threats against the second juvenile: to “beat the [expletive] out of [the juvenile],” “tune [the juvenile] the [expletive] up,” and “bloody [the juvenile’s] body.”

Bigda subsequently attempted to obstruct the investigation into the assaults on the juveniles by falsifying his reports to the Springfield Police Department Internal Investigations Unit, allegedly writing that he did not kick anyone or see any officer kick anyone during the course of the arrests of the juveniles. Bigda filed a second report in which he denied spitting on anyone or yelling “welcome to the white man’s world” during the arrest of the juveniles. 

The charges of depriving arrestees of their civil rights carry a maximum possible sentence of 10 years for counts alleging that a dangerous weapon was used or that bodily injury resulted, and a maximum sentence of one year for the charges that allege no weapon or injury. The charges of falsifying a police report provide for a maximum possible sentence of 20 years. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.

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

Assistant U.S. Attorneys Deepika Bains Shukla and Katharine Wagner of Lelling’s Springfield Branch Office and Trial Attorney Christopher J. Perras of the Department of Justice’s Civil Rights Division are prosecuting the case.