District Not Recorded

The Justice Department today announced that United Communities, LLC, a private company that manages military housing at Joint Base McGuire-Dix-Lakehurst (JB-MDL), has agreed to pay $62,501.78 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by imposing early termination charges on 13 servicemembers who had exercised their right to terminate their residential leases upon receipt of qualifying military orders. The early termination charges ranged from $138 to $3,100. This case and the settlement with another company in United States v. Twin Creek, announced on Sept. 11, are the first two SCRA cases the Department has brought involving lease incentives.

The Department launched an investigation into United Communities’ leasing practices after receiving a referral from Air Force Community Legal Services. Army Captain Gregory Funk had sought to terminate his lease with United Communities after he received military orders to deploy to Qatar for up to 365 days as a part of Operation Inherent Resolve. United Communities agreed to release Captain Funk from the remainder of his lease term, but required him to pay back the $899.20 lease incentive that he had received when he signed the lease because he had not completed the 24-month term of the lease. The investigation revealed 12 other instances where SCRA-protected servicemembers were required to pay back their lease incentives.

Under the terms of the settlement, United Communities must pay a total of $45,001.78 in damages to 13 servicemembers. United Communities will also pay a civil penalty of $17,500 to the United States. In addition, United Communities must develop policies to ensure it complies with the SCRA, train its employees on the protections afforded by the SCRA, and report future SCRA-related complaints to the government.

“Members of the Army, Navy, and Air Force at Joint Base McGuire-Dix-Lakehurst, and servicemembers nationwide, have the right to terminate their leases without penalty when their military orders send them elsewhere,” said Acting Assistant Attorney General John Gore.  “We appreciate United Communities’ cooperation with the Department to compensate affected servicemembers.  We are resolute in our commitment to vigorously enforce the SCRA on behalf of our men and women in uniform.”

 “When the brave men and women of our armed services answer the call of duty, they should be confident that they and their families will receive every protection the SCRA offers,” said U.S. Attorney Craig Carpenito. “With this settlement agreement, I am proud to continue our robust enforcement of the SCRA in New Jersey.”

The SCRA extends various protections to servicemembers to allow them to devote their entire energy to the national defense. The SCRA provides protections for servicemembers in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. The SCRA also allows servicemembers to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment, or retirement. Landlords are prohibited from imposing an early termination charge on servicemembers who terminate their leases under the SCRA.

The agreement resolves a suit filed by the United States in the United States District Court for the District of New Jersey.

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 $468 million in monetary relief for servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.

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

Individuals who believe their civil rights have been violated in the District of New Jersey may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

The Justice Department today announced that it has filed a lawsuit alleging that female tenants and applicants in residential rental properties in or around Oklahoma City were subjected to sexual harassment, coercion, intimidation, and threats in violation of the federal Fair Housing Act. The complaint names four defendants: the Executor of the Estate of Walter Ray Pelfrey; Rosemarie Pelfrey, as Trustee of the W. Ray Pelfrey Revocable Trust and the Rosemarie Pelfrey Revocable Trust; Omega Enterprises, LLC; and Pelfrey Investment Company, LLC.

Today’s lawsuit, filed in the U.S. District Court for the Western District of Oklahoma, alleges that Walter Ray Pelfrey sexually harassed female tenants and applicants of rental properties from at least 2001 through 2017. According to the complaint, he engaged in harassment that included, among other things, making unwelcome sexual advances and comments, engaging in unwanted sexual touching, demanding or pressuring female applicants to engage in sexual acts to obtain rental housing, offering to reduce rent and overlooking or excusing late or unpaid rent in exchange for sex, evicting or threatening to evict female tenants who objected to or refused sexual advances, and entering the homes of female tenants without their consent. The lawsuit further alleges that, upon the death of Walter Ray Pelfrey on July 15, the Estate of Walter Ray Pelfrey assumed liability for discriminatory housing practices. In addition, the lawsuit alleges that Rosemarie Pelfrey in her role as trustee, Omega Enterprises, LLC, and Pelfrey Investment Company, LLC are liable under the Fair Housing Act because Walter Ray Pelfrey managed the rental properties on their behalf when he engaged in the harassment, coercion, intimidation, and threats.

“Female tenants should not be subjected to illegal harassment and demands for sex,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to enforce the Fair Housing Act against landlords who engage in this misconduct and cause women to feel unsafe in their own homes.”

“Tenants have the right to be free from unwanted sexual harassment and intimidation by their landlord under the federal Fair Housing Act,” said Robert J. Troester of the U.S. Attorney’s Office for the Western District of Oklahoma. “Today’s civil complaint represents a significant step toward achieving justice and compensation for vulnerable victims of civil rights violations.”

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

Since launching the initiative, the Justice Department has filed six lawsuits alleging a pattern or practice of sexual harassment in housing – more than it has filed in any previous fiscal year. The Justice Department has filed or settled 11 sexual harassment cases since January 2017, and has recovered over $1.6 million for victims of sexual harassment in housing.

Today’s lawsuit seeks monetary damages to compensate the victims, civil penalties and a court order barring future discrimination. The complaint contains allegations of unlawful conduct. The allegations must be proven in federal court.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings previously owned or operated by Walter Pelfrey, or who have other information that may be relevant to this case, can contact the Housing Discrimination Tip Line:

• English language: Call 1-800-896-7743, then press 1 to continue in English and select mailbox 991 to leave a message; or
• Spanish language: Call 1-800-896-7743, then press 2 to continue in Spanish and select mailbox 9 to leave a message.

Individuals can also report sexual harassment and other forms of housing discrimination by e-mailing the Justice Department at fairhousing@usdoj.gov. 

The Department of Justice and Drug Enforcement Administration (DEA) today announced that Epidiolex, the newly approved medication by the Food & Drug Administration (FDA), is being placed in schedule V of the Controlled Substances Act (CSA), the least restrictive schedule of the CSA.

In June 2018, the FDA announced it approved Epidiolex for the treatment of seizures associated with two rare and severe forms of epilepsy, Lennox-Gastaut syndrome and Dravet syndrome, in patients two years of age and older.

Epidiolex contains cannabidiol (CBD), a chemical constituent of the cannabis plant (commonly referred to as marijuana).  The CBD in Epidiolex is extracted from the cannabis plant and is the first FDA-approved drug to contain a purified extract from the plant.

“DEA will continue to support sound and scientific research that promotes legitimate therapeutic uses for FDA-approved constituent components of cannabis, consistent with federal law,” said Acting DEA Administrator Uttam Dhillon.  “DEA is committed to continuing to work with our federal partners to seek ways to make the process for research more efficient and effective.”

“The FDA is committed to advancing scientific research and drug development programs that properly evaluate the active ingredients contained in marijuana,” said FDA Commissioner Scott Gottlieb, M.D. “Adequate and well-controlled clinical studies supported Epidiolex’s approval, so prescribers can have confidence in the drug’s uniform strength and consistent delivery that support appropriate dosing needed for treating patients with these complex and serious epilepsy syndromes. The FDA will continue to support rigorous scientific research on the potential medical uses of marijuana-derived products and stand ready to work with product developers who are interested in bringing patients safe and effective, high quality products.”

Marijuana and CBD derived from marijuana remain against the law, except for the limited circumstances that it has been determined there is a medically approved benefit. In those instances, such as here, the drug will be made appropriately available to the public for medical use. 

Today—for the first time—the Justice Department’s U.S. Trustee Program (USTP) filed an objection to a debtor company’s proposed candidate for appointment as the Future Claimants’ Representative (FCR) in a case involving an asbestos bankruptcy trust.  An FCR is appointed to represent the possible future interests of individuals who are not yet, but may become, sick from exposure to asbestos from a company’s operations.  The interests of future claimants can be adverse to the interests of current claimants who are paid first and may deplete trust funds available to pay to future claimants.

In the objection filed in the Duro Dyne case, the USTP asserts that the candidate’s apparent conflicts of interest and close connections with lawyers representing current claimants may compromise his independence in serving as the FCR.  The proposed FCR was selected by the plaintiffs’ and debtors’ lawyers under a pre-negotiated trust plan that lacks protections against fraudulent claims (allowing depletion of the trust funds), but that provides the FCR with a long-term position that will continue long after confirmation of a bankruptcy plan.  The USTP seeks further discovery to determine if the apparent conflicts and connections are disqualifying. 

According to Principal Deputy Associate Attorney General Jesse Panuccio, “In recent years, evidence has emerged that asbestos trusts lack the transparency and rigorous auditing necessary to prevent fraud, waste, and abuse.  To best protect all victims, those appointed in asbestos cases should be held to the same conflicts prohibitions and standards of independence that are required of other fiduciaries appointed under the Bankruptcy Code.”

The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws.  The Program has 21 regions and 92 field office locations.  Learn more on the Program at: https://www.justice.gov/ust.

A federal grand jury indicted two Long Island corporations and their owners for their scheme to falsely label seafood that was later sold across the country. The indictment accuses Roy Tuccillo Sr., 58, and his son, Roy Tuccillo Jr., 31, both of Jericho, and two of their Westbury food processing and distribution companies, Anchor Frozen Foods Inc., and Advanced Frozen Foods Inc., of importing giant squid from Peru and marketing and selling it to grocery stores as octopus. The four defendants are charged with conspiracy to commit wire fraud and violate the Lacey Act, as well as four substantive Lacey Act violations.

Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division and Director James Landon of the National Oceanic and Atmospheric Administration’s (NOAA) Office of Law Enforcement (OLE) announced the indictment today.

“NOAA’s Office of Law Enforcement is dedicated to enforcing federal marine resource laws, including the Lacey Act and its provisions on mislabeling,” said James Landon, OLE’s Director. “This investigation is a great example of how we collaboratively work with other federal partners, such as the Food and Drug Administration, to combat seafood fraud.”

Octopus and squid are distinct species of fish with great variance in their taxonomy, habitat, and physical characteristics. The U.S. Food and Drug Administration permits that food companies selling squid market it by its name or as calamari, while octopus is the only acceptable name when selling octopus. In general, octopus has a greater retail price than squid. The indictment alleges that for over three years the defendants fraudulently imported, processed, marketed, sold, and distributed over 113,000 pounds of octopus that was actually squid. 

The Lacey Act prohibits submitting false descriptions of fish that were transported and sold in interstate commerce. The defendants are charged with four counts of defrauding grocery stores in New Jersey and Massachusetts.

This case was investigated by the Department of Commerce’s National Oceanic and Atmospheric Administration Office of Law Enforcement with assistance from the U.S. Food and Drug Administration. It is being prosecuted by Trial Attorney Ryan Connors and Senior Trial Attorney David Kehoe of the Justice Department’s Environmental Crimes Section.

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

Attorney General Sessions today issued the following statement of support for legislation to counter threats from unmanned aircraft systems:

“From the Wright Brothers to John Glenn to today, Americans have been at the leading edge of aeronautics and made breakthroughs that have changed our world for the better.  Drone technology, one of the latest of these inventions, promises to strengthen us economically by creating American jobs and transforming American industry.  Unfortunately, however, this new tool can also be used to wreak havoc by criminals, terrorists and other bad actors.  That is why the Trump administration has worked on legal reforms to enable law-abiding people to use this technology for good while protecting them from those who would use it for ill.  

“Bipartisan legislation in Congress called the Preventing Emerging Threats Act would finally give federal law enforcement the authority we need to counter the use of drones by drug traffickers, terrorists and criminals while protecting the freedom to use drones lawfully.  We need this authority today — and so I urge my former colleagues in Congress to send this legislation to President Trump’s desk.  That will let us get to work, fight this new threat and keep the American people safe.”

David Prejean, a former Sergeant in the K-9 Unit of the Iberia Parish Sheriff’s Office (IPSO), was sentenced yesterday to serve 30 months in prison and one year supervised release on his guilty plea to violating the civil rights of a detainee, announced John Gore, the Acting Assistant Attorney General of the Justice Department’s Civil Rights Division, David C. Joseph, the United States Attorney for the Western District of Louisiana, and FBI New Orleans Division Special Agent in Charge Eric J. Rommal. Prejean previously admitted, during a guilty plea hearing, that he acted without legal justification on Dec. 6, 2012, when he commanded his K-9 to bite the detainee, and then struck the detainee, resulting in bodily injury.

According to statements made in court and filings made in connection with the guilty plea, Prejean was a K-9 Sergeant on the IMPACT Unit, a specialized unit at IPSO, when he was called to the Iberia Parish Jail on Dec. 6, 2012, to assist with a shakedown. During the course of the shakedown, an inmate turned to look at Prejean after being told not to, at which point Prejean threw the inmate to the ground and then commanded his dog to bite him. Prejean also struck the inmate several times.  Despite the fact that the inmate had complied with Prejean’s commands and did not pose a threat to anyone on the rec yard, Prejean allowed the dog to bite the inmate for several seconds before pulling the K9 away. Prejean’s unlawful use of force resulted in injury to the inmate. Following the assault, Prejean wrote false report designed to cover up his unjustified use of force.

“The United States Constitution protects all individuals, including those who are incarcerated,” said Acting Assistant Attorney General John Gore. “The Justice Department will uphold the rule of law and aggressively prosecute any violation of an inmate’s civil rights.”  

“Law enforcement officers face danger in the field every day protecting the rights and safety of those in our communities,” said U.S. Attorney Joseph. “It is necessary that they follow the laws they are sworn to protect. Our district takes violations of the law seriously and will hold those accountable those who ignore those laws, especially those who tasked with their enforcement.”

“FBI New Orleans vigorously investigates all credible allegations of civil rights violations, including those who are incarcerated,” FBI New Orleans Division Special Agent in Charge Eric J. Rommal stated. “Violations of one’s civil rights will not be tolerated.”

This case was investigated by the Lafayette Resident Agency of the FBI, and was prosecuted by Assistant United States Attorney Mary Mudrick of the Western District of Louisiana and Trial Attorney Tona Boyd of the Civil Rights Division.

The Department of Justice announced the rollout of an updated United States Attorneys’ Manual, now titled the Justice Manual. It is the first comprehensive review and overhaul of the Manual in more than 20 years. The Department-wide effort involved the dedicated work of over 200 Department of Justice employees.

“This was truly a Department-wide effort, involving hundreds of employees collaborating from many different Department components,” said Deputy Attorney General Rod Rosenstein. “To mark this significant undertaking, and to emphasize that the Manual applies beyond the United States Attorneys’ Offices, we have renamed it the Justice Manual. Though the name has changed, the Manual will continue as a valuable means of improving efficiency, promoting consistency, and ensuring that applicable Department policies remain readily available to all employees as they carry out the Department’s vital mission.”

By 2017, many provisions of the Manual no longer reflected current law and Department practice. This diminished the Manual’s effectiveness as an internal Department resource, and reduced its value as a source of transparency and accountability for the public. To bring the Manual up to date, employees from around the country, primarily career attorneys, undertook a yearlong, top-to-bottom review. The Department’s goals were to identify redundancies, clarify ambiguities, eliminate surplus language, and update the Manual to reflect current law and practice.

Some specific changes include expanding the Principles of Federal Prosecution to incorporate current charging and sentencing policies, and adding new policies on religious liberty litigation, third-party settlement payments, and disclosure of foreign influence operations.

The Department of Justice’s U.S. Trustee Program (USTP) has entered into a national settlement agreement with Citibank N.A. (Citibank), Department Stores National Bank (DSNB) (collectively Citi), and FDS Bank requiring Citi to pay $5 million to remediate robo-signed proofs of claim filed in consumer bankruptcy cases in connection with more than 71,000 Macy’s-branded credit card accounts, Director Cliff White of the Executive Office for U.S. Trustees announced today.

The proposed settlement has been filed in the U.S. Bankruptcy Court for the Northern District of Georgia, where it is subject to court approval.  In the settlement, Citi acknowledges that its affiliate DSNB issued Macy’s-branded consumer credit card accounts.  FDS Bank was responsible for account servicing activities and contracted certain bankruptcy-related services to vendors.  Between 2012 and 2015, tens of thousands of proofs of claim were filed in bankruptcy cases across the country on DSNB’s behalf.  These proofs of claim were improperly signed, under the penalty of perjury, by employees of a third-party vendor who had not reviewed and/or lacked knowledge of the contents of the proof of claim.  In some cases, the electronic credentials of the vendor’s employees were used to file claims where the employee did not review the claim.  These improper practices were identified when Citibank took over the servicing of the accounts in late 2015 from the third parties.  Citi self-reported the errors to the USTP. 

“I am pleased that Citi has acted responsibly by self-reporting these deficient bankruptcy practices and agreeing to remediate affected borrowers to address the errors,” said USTP Director White.  “I am also encouraged that Citi has instituted internal bankruptcy procedures to ensure that the vendor’s errors should not be repeated.  When creditors fail to comply with the bankruptcy laws and rules, they must be held accountable.  The U.S. Trustee Program remains diligent in its effort to ensure that creditors as well as debtors who disregard the law will be held accountable for their actions.”

Settlement Terms

Citi agrees to pay $5 million to remediate DSNB account holders in whose bankruptcy cases improperly signed proofs of claim may have been filed.  Using the former vendor’s data, Citi has undertaken a review and identified more than 71,000 eligible accounts.  Each eligible account will receive a pro rata share of the $5 million dollar payment.  Citi will also send a notice to eligible accounts informing the account holder of the reason for the payment.

Citi’s independent internal compliance group will perform an audit to ensure that Citi has met its obligations under the settlement.  Citi will then file a report with the Court certifying that it has completed its corrective action obligations under the settlement. 

While the settlement resolves any actions that could be brought by the USTP for the covered conduct, it does not impact the rights of borrowers or other third parties, including trustees.

The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 92 field office locations. Learn more information on the Program at: https://www.justice.gov/ust.

The Federal Bureau of Investigation today released the 2017 edition of its Crime in the United States (CIUS) report, a part of the FBI’s Uniform Crime Reports (UCR). The report, which covers January-December 2017, reflects that after two consecutive, historic increases in violent crime, in the first year of the Trump Administration the nationwide violent crime rate began to decline.  The report estimates that the nationwide violent crime rate decreased by approximately one percent in 2017, while the nationwide homicide rate decreased by nearly one and a half percent.  

“After historic increases in violent crime in 2015 and 2016, we are beginning to see encouraging signs,” Attorney General Jeff Sessions said. “But our work is not done. While we have made progress, violent crime and drug trafficking continue to plague our communities and destroy the lives of innocent, law-abiding Americans. Under the Trump administration, the Department of Justice has restored common sense criminal charging and sentencing policies, surged resources to jurisdictions facing some of the highest levels of violence and drug abuse, targeted enforcement efforts against the most violent offenders, and developed innovative approaches to address pervasive crime problems. And we are continuing our steadfast commitment to work with our state, local, and tribal partners across the country to confront the lawlessness, deter violent crime, dismantle criminal organizations and gangs, eradicate the scourge of drug trafficking, and restore the rule of law. The American people deserve no less.” 

The report released today also adjusts and corrects numbers for 2016, showing that the nationwide homicide rate actually increased by 8.8 percent (as opposed to 7.9 percent, as previously reported) in 2016. In 2017, the rate of rapes increased by 2.2 percent, while the aggravated assault rate increased by 0.3 percent and the robbery rate decreased by 4.7 percent. Aggravated assaults were 65 percent of violent crimes reported to law enforcement in 2017, while robberies and rapes were 25.6 percent and 8 percent, respectively. Murder accounted for 1.4 percent of violent crimes reported to law enforcement in 2017.

For the full report click here.

The former owner of a now-defunct marble mining company in Afghanistan was found guilty today by a federal jury for his role in defrauding the Overseas Private Investment Corporation (OPIC), a U.S. government agency, and defaulting on a $15.8 million loan.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Inspector General for Afghanistan Reconstruction (SIGAR) John F. Sopko and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office made the announcement.

After a seven-day trial, Azam Doost, aka “Adam Doost,” “Mohammad Azam Doost” and “Mohammad Azim” (Doost), 40, most recently of Freemont, California, was found guilty of three counts of major fraud against the United States, eight counts of wire fraud, four counts of false statements on loan applications or extensions and five counts of money laundering.  Doost is scheduled to be sentenced on Dec. 14 by U.S. District Judge Amit P. Mehta of the District of Columbia, who presided over the trial.

The evidence admitted at trial showed that in February 2010, while working at his company, Equity Capital Mining LLC, Doost, along with his brother, obtained a $15.8 million loan from OPIC for the development, maintenance and operation of a marble mine in western Afghanistan.  The loan proceeds were paid directly from OPIC to the alleged vendors who provided equipment for the mine, as reported to OPIC by Doost or his consultant.  Doost was required to deal with these companies in arms-length transactions or, to the extent any transactions were other than at arms-length, he was required to report to OPIC any affiliation he had with a vendor.  Instead, Doost falsely informed OPIC that he had no affiliation with any of the vendors with whom he dealt, when in fact he had financial relationships with several of them.  The evidence further showed that Doost’s business partner was listed on the bank accounts for a number of these vendors and, upon receipt of money from OPIC into the respective accounts, significant amounts of this money were then transferred from that respective account to companies and individuals with whom Doost was associated, or to pay debts Doost owed.  For example, Doost’s consultant received a commission of $444,000 for his purported consulting services with the first of three disbursements from OPIC, yet $40,000 was transferred from the consultant’s account to a Doost company in California.

The evidence at trial further showed that when the time came for Equity Capital Mining LLC to repay the loan to OPIC, Doost provided purported reasons to OPIC why it was not able to make those repayments at a time when Doost had control of sufficient funds to make those repayments.  Ultimately, Doost and his brother failed to repay any of the principal on the OPIC loan, paying only a limited amount of interest, and ultimately defaulted on the loan, the evidence showed.

SIGAR, with assistance from the FBI, investigated the case.  The Criminal Division’s Office of International Affairs also provided important assistance in this case.  Trial Attorneys Daniel Butler and Michael McCarthy of the Criminal Division’s Fraud Section are prosecuting the case.

Today, the U.S. Department of Justice and U.S. Environmental Protection Agency (EPA) announced a settlement with Derive Systems (Derive) addressing the sale of approximately 363,000 aftermarket products which the United States alleges were designed, in part, to defeat the emissions control systems of cars and trucks in violation of the Clean Air Act.

Over a span of multiple years, Derive sold products, including custom engine tuning software and parts, online and at distributers across the nation under the brand names of “Bully Dog” and “SCT” for use in many types of gasoline and diesel-fueled cars and trucks. Under the terms of the settlement, Derive will spend approximately $6.25 million to bring the company and its products into compliance with the Clean Air Act. Derive will also pay a civil penalty of $300,000. 

“For decades, Americans have worked hard to significantly reduce harmful emissions from cars and trucks. Tremendous progress has been made and the air is much cleaner today across the nation.  Unfortunately, not everyone is playing by the rules.  Today’s settlement will bring Derive Systems and its aftermarket products into compliance with the Clean Air Act, and demonstrates to other manufacturers that products designed to unlawfully thwart vehicle emissions control systems will not be tolerated,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The Department of Justice will continue to work with our partners at EPA to hold companies who violate environmental laws accountable, and to protect clean air for all Americans.”

“Manufacturers and sellers of automotive emissions control defeat devices should stand up and take notice of this settlement,” said Susan Bodine, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA will protect air quality by vigorously enforcing the Clean Air Act’s prohibition on these devices.”

Derive manufactured and sold custom tuning software designed to access and overwrite the original vehicle manufacturer’s software. Vehicle manufacturers design vehicle software to reduce air pollution, monitor the vehicle’s on-board diagnostics of emissions controls, and otherwise comply with the Clean Air Act.  Derive’s software enabled the user to remove emission control components that reduce tailpipe emissions, including catalysts, diesel particulate filters, exhaust gas recirculation systems, elements of on-board diagnostic systems, and other elements of design certified by vehicle manufacturers to comply with the Clean Air Act.

In addition, Derive sold parts or components for motor vehicles and motor vehicle engines that bypass, defeat, or render inoperative elements of design that were installed by the vehicle or engine manufacturer to comply with Clean Air Act emission standards. These handheld products—commonly known as “tuners”—enabled the user to easily turn off emission controls installed and certified by vehicle manufacturers to comply with the Clean Air Act.

Under the terms of the settlement, Derive must stop introducing new noncompliant tuners into commerce and retrofit existing tuners so that they comply with the Clean Air Act. All new and existing tuners offered for sale must have a reasonable basis demonstrating that the use of the products will not adversely affect vehicle emissions. Besides tuners, Derive must limit access to key emission control parameters in their custom tuning software and create a customer verification program for users of the custom tuning software, which includes training about vehicle functions, emission controls, and the Clean Air Act requirements. Derive must stop any marketing that would provide information on how consumers can defeat emission controls in their vehicles, and work with their national distributors to prevent the packaged sale of their products with companion defeat devices. Derive must train their employees to comply with the Clean Air Act. Derive must also pay a penalty of $300,000 based on the company’s demonstrated limited ability to pay a larger amount.

The proposed settlement is subject to a 30-day public comment period and final court approval, and will be lodged in the U.S. District Court for the District of Columbia. To view the consent decree or to submit a comment, visit the department’s website at: www.justice.gov/enrd/Consent_Decrees.html.

Attorney General Jeff Sessions today announced grant awards to Public Safety Partnership member sites as part of $10 million in funding to support state, local and tribal law enforcement departments and agencies and their partners who are fighting violent crime in jurisdictions across the United States.

The Office of Justice Programs’ Bureau of Justice Assistance, in partnership with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, is awarding $5 million under the Local Law Enforcement Crime Gun Intelligence Center Integration Initiative to encourage local jurisdictions to use intelligence, technology and community engagement to identify unlawfully used firearms and to prosecute those who commit violent crimes.

Grant recipients include the PSP cities of Indianapolis, Indiana, $798, 866; Memphis, Tennessee, $714,055; Tulsa, Oklahoma, $800,000 and Baton Rouge, Louisiana,   $634,971.  Other locations include Detroit, Michigan, $800,000; the Albuquerque, New Mexico, Police Department, $452,108, and the City/County of San Francisco, California, $800,000. The jurisdictions will use these awards to hire personnel to utilize the National Integrated Ballistic Information Network (NIBIN), to purchase technology required to operate a Crime Gun Intelligence Center and ammunition for ballistic tests of recovered weapons.

The Attorney General also announced awards for BJA’s Technology Innovation for Public Safety (TIPS): Addressing Precipitous Increases in Crime program.

This program supports the Department’s priorities of reducing violent crime and supporting law enforcement officers, including prosecutors. While many jurisdictions are making significant progress implementing justice information sharing solutions to address critical gaps in crime prevention and response activities across organizations and jurisdictions, there remain challenges for the criminal justice system to respond to threats to public safety. This is especially true for efforts addressing significant increases in crime.

Justice information sharing technology refers to any hardware and software, hosted residentially or remotely, that plays a role in the collection, storage, sharing and analysis of criminal justice data. Funding under this program is provided to help state, local, territorial, and tribal jurisdictions use innovative technological solutions to enhance their justice information-sharing capacity.

Grant recipients include the PSP cities of Memphis, Tennessee, $417,224; Toledo, Ohio, $492,553; Flint, Michigan, $499,694 and Houston, Texas, $500,000. Other locations include Arizona Criminal Justice Commission, $317,834; City of Boynton Beach, Florida, $465,860; Clark County Social Service, Nevada, $500,000; New Mexico Second Judicial District Attorney, $500,000; State of Connecticut Department of Emergency Services and Public Protection; $419,804; Bergen County Prosecutor’s Office, New Jersey, $500,000; and Georgia Bureau of Investigation, $499,339. Additional information on the grant awards can be found at: www.bja.gov   

Attorney General Jeff Sessions made the announcement during today’s National Public Safety Partnership Symposium on Violent Crime in Birmingham, Alabama. The National Public Safety Partnership is a DOJ-wide initiative that enables cities to consult with and receive a coordinated  array of resources from DOJ’s programmatic and law enforcement components: the Bureau of Justice Assistance; United States Attorneys’ Offices; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Federal Bureau of Investigation; the U.S. Drug Enforcement Administration; the U.S. Marshals Service; the Office on Violence Against Women; the Office of Justice Programs; the Office of Community Oriented Policing Services; and other federal agencies in order to improve local violence reduction strategies.  

The United States filed a civil injunction suit seeking to bar Phillip Mott Harris II and his Florida-based business, 24/7 Tax Services, LLC from owning, operating, or franchising a tax return preparation business or preparing tax returns for others, the Justice Department announced today. 

The complaint, filed in United States District Court in Florida, also requests that the court require Harris and the LLC to disgorge ill-gotten fees that they obtained from the U.S. Treasury through the alleged false tax return preparation.

According to the complaint, Harris and his tax preparation business prepare and file tax returns to falsely increase their customers’ refunds, and profit through exorbitant, often undisclosed fees, at the expense of their customers and the U.S. Treasury.

The complaint alleges that Harris and the LLC engage in misconduct, including:

• Falsely claiming the Earned Income Tax Credit;
• Claiming improper filing status (e.g., head of household even though the person is not entitled to that status);
• Fabricating businesses and related business income and expenses; and
• Charging deceptive and unconscionable fees. 

According to the complaint, Harris previously worked at LBS Tax Services. Since September 2014, the United States has filed over 20 similar lawsuits in Florida, North Carolina, and Georgia, including suits against the franchisor of LBS and numerous former LBS franchisees and managers, many of whom allegedly rebranded and continued to operate tax preparation businesses. Through these lawsuits, the United States has obtained permanent injunctions and money judgments disgorging millions in ill-gotten tax preparation fees.

The IRS has a list of steps on its website that you can take and ten tips for choosing a tax preparer. Each year, the IRS releases the top 12 scams, known as the Dirty Dozen. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2018, and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.

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

A resident of Colorado pleaded guilty yesterday in U.S. District Court for the District of Colorado to four counts of filing a false income tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents, Jason Tammen falsified his income tax returns for tax years 2012, through 2015, by fraudulently inflating his federal and state tax withholdings.  By claiming inflated federal and state withholding amounts, Tammen received tax refunds he was not entitled to and avoided paying taxes that he owed.

Sentencing is scheduled for November 29, 2018.  Tammen faces a statutory maximum sentence of three years in prison on each count, as well as a term of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Sarah A. Kiewlicz and Lee F. Langston, who are prosecuting the case.

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

A Houston physician and the owner of a pain management clinic were each sentenced to 420 months in prison today for their roles in running a pill mill that provided tens of thousands of unlawful prescriptions for millions of doses of opioids and other controlled substances.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ryan Patrick of the Southern District of Texas and Special Agent in Charge Will R. Glaspy of the U.S. Drug Enforcement Administration’s (DEA) Houston Field Office made the announcement.

Gazelle Craig D.O., 42, and Shane Faithful, 49, both of Houston, Texas, were sentenced by U.S. District Judge David Hittner of the Southern District of Texas.  Craig and Faithful were convicted at trial in March 2018 of one count of conspiracy to unlawfully distribute controlled substances and three counts of unlawfully distributing and dispensing controlled substances.  The defendants were charged in an indictment returned on July 6, 2017.

“Today’s sentences should serve as a stark warning to any medical professional considering exploiting the opioid crisis for profit: you will be caught, you will be prosecuted, and you will pay a steep price for abusing your prescription power for personal gain,” said Assistant Attorney General Benczkowski.   “In the midst of the deadliest drug crisis in our country’s history, Gazelle Craig and Shane Faithful sold millions of opioids and endangered the safety of an untold number of Americans. We should all be proud of the hard work being done by DEA’s Tactical Diversion Squad and the prosecutors in the Department of Justice’s Fraud Section.”

“Dr. Craig, along with clinic owner Shane Faithful, used their position of trust to illegally distribute over 2 million dosage units of hydrocodone into local communities across Houston,” said DEA Special Agent in Charge Glaspy.  “It is this kind of illegal distribution of prescription drugs that feed the opioid epidemic and destroys families.  The sentencing of Dr. Craig and Mr. Faithful is a victory for our communities while at the same time making a nationwide statement that the DEA and DOJ will not tolerate this type of illegal activity.”   

According to evidence presented at trial, from March 2015 through July 2017, Craig and Faithful ran Gulfton Community Health Center (Gulfton), which operated as an illegal pill mill.  The evidence showed that Craig unlawfully wrote approximately 18,252 prescriptions for over 2.1 million dosage units of hydrocodone, a Schedule II controlled substance, and approximately 15,649 prescriptions for over 1.3 million dosage units of carisporodal, a Schedule IV controlled substance.  The combination of hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit, the evidence showed.

Craig regularly issued unlawful prescriptions for controlled substances to more than 60 patients a day, the evidence showed.  “Crew leaders” ferried numerous patients to Gulfton so that Craig could provide them with unlawful prescriptions for controlled substances.  Faithful and Craig charged approximately $300 for each prescription and required payment in cash.  The defendants divided each day’s cash proceeds, often in excess of $15,000, from the sale of the unlawful prescriptions.              

This case was investigated by the DEA.  Trial Attorneys Scott Armstrong and Devon Helfmeyer of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in 12 cities across the country, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.  In addition, the U.S. Department of Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.

A federal grand jury sitting in Houston, Texas returned an indictment today charging a Houston attorney with one count of conspiracy to defraud the United States and three counts of tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Department of Justice’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.

According to the indictment, Jack Stephen Pursley, also known as Steve Pursley, conspired with another individual to repatriate more than $18 million in untaxed earnings from the co-conspirator’s business bank account located in the Isle of Man.  Knowing that his co-conspirator had never paid taxes on these funds, Pursley allegedly designed and implemented a scheme whereby the untaxed funds were made to appear to be stock purchases in United States corporations owned and controlled by Pursley and his co-conspirator.

The indictment alleges that Pursley received more than $4.8 million and an ownership interest in the co-conspirator’s ongoing business for his role in the fraudulent scheme.  The indictment further alleges that for tax years 2009 and 2010 Pursley evaded the assessment of and failed to pay the incomes taxes due on this money by, amongst other means, withdrawing the funds as purported non-taxable loans or returns of capital.  Pursley allegedly used the money he received to purchase personal assets, including a vacation home in Vail, Colorado and property in Houston.  

If convicted, Pursley faces a statutory maximum sentence of five years in prison for the conspiracy count, and five years in prison for each count of tax evasion.  He also faces a period of supervised release, monetary penalties, and restitution.

An indictment merely alleges that a crime has been committed. A defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Patrick commended special agents of IRS-Criminal Investigation, who investigated the case, and Senior Litigation Counsel Nanette Davis, Trial Attorney Grace Albinson, and Trial Attorney Sean Beaty of the Tax Division, who are prosecuting this case.

A former elected county executive for Jackson County, Missouri and his chief of staff were sentenced to 27 months and six months in prison, respectively, for engaging in a scheme to steal campaign contributions, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division.

Michael Sanders, 51, of Independence, Missouri, and Calvin Williford, 60, of St. Joseph, Missouri, were sentenced by U.S. District Judge Roseann A. Ketchmark of the Western District of Missouri.  Sanders was sentenced on Wednesday to serve 27 months in prison followed by three years of supervised release and ordered to pay $40,000 in forfeiture.  Williford was sentenced today to serve six months in prison followed by three years of supervised release and ordered to pay $36,000 in forfeiture.  The defendants each pleaded guilty to a one-count information charging them with conspiracy to commit wire fraud on Jan. 26.

According to admissions made in connection with their pleas, Sanders was the elected County Executive for Jackson County from January 2007 until December 2015.  Prior to serving as County Executive, Sanders was the elected Prosecuting Attorney for Jackson County.  Williford was a senior staff member for Sanders, and then later chief of staff, in the Office of the County Executive from 2007 to December 2015.  Prior to then, Williford served as Sanders’s Director of Public Affairs at the Jackson County Prosecuting Attorney’s Office.  Sanders and Williford defrauded political committees with which Sanders was affiliated by converting campaign contributions for their personal use.  Sanders and Williford misappropriated the money by directing the political committees to issue checks to certain individuals who performed little or no campaign-related work.  Instead, the individuals cashed the checks and then returned a portion of the money to Sanders or Williford, who used the cash at times to pay for personal expenses.   

The case was investigated by the FBI’s Kansas City Division.  The case is being prosecuted by Trial Attorneys Lauren Bell and Edward P. Sullivan of the Criminal Division’s Public Integrity Section.  

TULSA, Okla.— United States Attorney Trent Shores announced that Cherie Michelle Kelley, 36, of Tulsa, pleaded guilty in United States District Court, Tuesday, to participating in a methamphetamine and heroin distribution conspiracy and to possession of methamphetamine and heroin with intent to distribute.

From August 2017 to April 2018, Kelley conspired with Dannie Dill, 47, of Tulsa, along with others, to distribute illegal narcotics, including heroin and methamphetamine, in the greater Tulsa area. Dill was labeled by law enforcement as a “Top Ten” suspect of Operation Alpha, a Project Safe Neighborhoods initiative targeting northern Oklahoma’s most dangerous criminals.

As part of their scheme, Kelley and Dill stored narcotics and drug proceeds at two different houses where they lived together, one in Broken Arrow and one in Tulsa. Kelley would receive narcotics, including heroin, from her source of supply in Tulsa and use some of the heroin herself. Then she and Dill would resell the remainder of the narcotics. Kelley also agreed to allow her narcotics supply source to send illegal drug shipments for distribution from outside the state of Oklahoma to the Broken Arrow location. 

“Methamphetamine and heroin continue to plague neighborhoods in northeastern Oklahoma because of criminals like Kelley and Dill. Drug dealers should know that our community is not open for their business,” said U.S. Attorney Trent Shores.

Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders in an effort to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. 

The initiative originally started in 2001 but was revitalized in October 2017 as a result of the rise in violent crime the two previous years. Project Safe Neighborhoods has been upgraded and enhanced with new technologies, better accountability, and stronger partnerships within communities.

Several law enforcement agencies were involved in a coordinated effort to bring Kelley and Dill into custody in connection with the crime, including the Tulsa Police Department, the Federal Bureau of Investigation, the U.S. Marshals Service, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Joel-lyn A. McCormick and Thomas E. Duncombe prosecuted the case.

Defendants Mohamed Toure, 57, and Denise Cros-Toure, 57, of Ft. Worth, Texas, were charged today in a five-count indictment with forced labor, alien harboring for financial gain, and conspiracies to commit forced labor and alien harboring, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, and Special Agent in Charge Jeffrey McGallicher of the Department of State, Diplomatic Security Services’ Houston Field Office. Defendant Toure was also charged with making false statements to federal agents. The defendants were arrested on April 26, 2018, after being charged by criminal complaint.  

According to the indictment, in January 2000, the defendants arranged for the victim, then a minor child, to travel alone from her village in Guinea, West Africa, to Southlake, Texas, to work for them in their home. For more than 16 years, the Toures allegedly forced her to work long hours – demanding she handle childcare, cook, clean, and perform yardwork. Although the victim was close in age to their five biological children, the couple denied her access to schooling, medical care, and other opportunities they afforded their own children, and on several occasions Denise Cros-Toure slapped or struck her as punishment. Until neighbors helped the victim escape in August 2016, the defendants allegedly denied her any pay, isolated her from her family and threatened serious harm if she refused to work.

As part of their scheme to compel the victim’s labor, the defendants confiscated her official documents and caused her to remain unlawfully in the United States after her tourist visa expired in March 2000 and threatened to send her back to Guinea if her work was unsatisfactory.

An indictment is merely an accusation, and the defendants are presumed innocent unless and until proven guilty. If convicted of forced labor, the defendants face a maximum sentence of 20 years in prison, a $250,000 fine, and mandatory restitution. If convicted of alien harboring, the defendants face a maximum sentence of 10 years in prison and a $250,000 fine.

The case is being investigated by Diplomatic Security Services’ Houston Field Office. It is being prosecuted by Trial Attorneys Rebekah Bailey and William Nolan of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit and Assistant U.S. Attorney Chris Wolfe for the Northern District of Texas.

WASHINGTON – United States Attorney Trent Shores joined the Department of Justice today in announcing more than $113 million in grant awards to improve public safety, serve victims of crime, combat violence against women, and support youth programs in American Indian and Alaska Native communities, including the Cherokee Nation, the Eastern Shawnee Tribe of Oklahoma, the Miami Tribe of Oklahoma, the Muscogee (Creek) Nation, the Osage Nation of Oklahoma, the Quapaw Tribe of Oklahoma, and the Wyandotte Nation.

“I am proud of the productive partnership forged between my office and tribal nations. Our collaborative enforcement model delivers fair, impartial, and effective justice to tribal communities in the Northern District of Oklahoma. These justice focused grants will strengthen priority areas for each of the tribal recipients,” said U.S. Attorney Trent Shores. “Implementing the programs and services supported by this funding will have a lasting impact in Indian Country. As United States Attorney, I will uphold the federal trust responsibility to the federally recognized tribes in northeastern Oklahoma.”

Nationwide, grants were awarded to 133 American Indian tribes, Alaska Native villages, and other tribal designees through the Coordinated Tribal Assistance Solicitation, a streamlined application for tribal-specific grant programs. Of the $113 million, just over $53 million comes from the Office of Justice Programs, more than $35 million from the Office on Violence Against Women, and more than $24.7 million from the Office of Community Oriented Policing Services.

In addition, the Department is in the process of allocating up to $133 million in a first-ever set aside program to serve victims of crime in American Indian and Alaska Native communities.  The awards are intended to help tribes develop, expand and improve services to victims of crime by providing funding, programming and technical assistance.  Recipients will be announced in the near future.  

“With these awards, we are doubling the amount of grant funding devoted to public safety programs and serving victims of crime in Native American communities,” said Principal Deputy Associate Attorney General Jesse Panuccio, who made the announcement during his remarks at the 26th Annual Four Corners Indian Country Conference in Santa Fe, New Mexico.  “There is an unacceptable level of violent crime and domestic abuse in American Indian and Alaska Native communities.  This increase in resources, together with our aggressive investigation and prosecution of crimes, shows how seriously Attorney General Sessions and the entire Department of Justice take these issues.  We are committed to reducing violent crime and improving public safety.”

The Four Corners Conference is facilitated annually by U.S. Attorneys from Arizona, Colorado, New Mexico and Utah to provide a forum for discussion of justice-related topics with a large number of populous and diverse tribal nations located in the region.

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

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

A listing of today’s announced CTAS awards is available at: www.justice.gov/tribal/page/file/1095161/download.

The United States filed a civil injunction suit seeking to bar Lakeesha Tucker, Lakeesha Tucker LLC, and Simplified Financial Services LLC, from owning, operating, or franchising a tax return preparation business and preparing tax returns for others, the Justice Department announced today. 

The complaint, filed in United States District Court in Florida, also requests that the court require Tucker and the LLCs to disgorge ill-gotten fees that they obtained from the U.S. Treasury through the alleged false tax return preparation.

According to the complaint, Tucker and her tax preparation businesses, Lakeesha Tucker LLC and Simplified Financial Services LLC, which in 2018 operated stores in Florida and Mississippi, but in the past have also operated stores in North Carolina and Tennessee, prepare and file tax returns to falsely increase their customers’ refunds and profit through exorbitant and often undisclosed fees, at the expense of their customers and the U.S. Treasury.

The complaint alleges that Tucker and the businesses engage in misconduct, including:

• Falsely claiming the Earned Income Tax Credit;
• Claiming improper filing status (e.g., head of household even though the person is not entitled to that status);
• Fabricating businesses and related business income and expenses;
• Fabricating deductions, such as charitable contributions and unreimbursed, employee business expenses; and
• Charging deceptive and unconscionable fees. 

According to the complaint, Tucker previously worked at LBS Tax Services. Since September 2014, the United States has filed 20 similar lawsuits in Florida, North Carolina, and Georgia, including suits against the franchisor of LBS and numerous former LBS franchisees and managers, many of whom allegedly rebranded and continued to operate tax preparation businesses. Through these lawsuits, the United States has obtained permanent injunctions and money judgments disgorging millions in ill-gotten tax preparation fees.

The IRS has a list of steps on its website that you can take and ten tips for choosing a tax preparer. Each year, the IRS releases the top 12 scams, known as the Dirty Dozen. Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2018, and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on its website for choosing a return preparer and has launched a free directory of federal tax preparers.

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

A federal grand jury in Little Rock, Arkansas, returned a seven-count superseding indictment against a man who was residing on the Misawa Air Base, a military base in Japan, charging him with multiple counts relating to the assault of three U.S. Air Force airmen.  The federal grand jury also returned a two-count indictment against his son, charging him with two counts relating to his role in the assault.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Cody Hiland of the Eastern District of Arkansas and Colonel Kirk B. Stabler of the U.S. Air Force Office of Special Investigations made the announcement.

Rodrigo Pineda Gomez, 44, who was residing in Japan, is charged with one count of attempted voluntary manslaughter, one count of assault with a dangerous weapon, three counts of assault by striking, beating, or wounding, one count of resisting a federal officer, and one count of making a false statement to law enforcement.  Miguel Gomez, 21, is charged with one count of resisting a federal officer and one count of assault by striking, beating, or wounding.  The defendants had their initial court appearance earlier today before Magistrate Judge Patricia S. Harris in the Eastern District of Arkansas.

The superseding indictment, which was returned on Aug. 7, alleges that on Dec. 31, 2016, on Misawa Air Base in Japan, the defendants, Rodrigo Gomez and his son, Miguel Gomez, assaulted three U.S. Air Force airmen.  The superseding indictment alleges that defendant Rodrigo Gomez attempted to kill one of the airmen, resisted arrest after law enforcement arrived, and then later made a false statement about the incident.  Defendant Miguel Gomez assaulted one of the airmen and also resisted arrest after law enforcement arrived at the scene.  At the time of the assault, defendant Rodrigo Gomez was the dependent spouse and Miguel Gomez the son of an active duty service member assigned to the base.  Their last known U.S. address is alleged to be Jacksonville, Arkansas. 

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

The investigation was conducted by the U.S. Air Force Office of Special Investigations. The prosecution is being handled by Trial Attorney Frank Rangoussis of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Stacy Williams of the Eastern District of Arkansas.

MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Samuel Jason Nutt, age 50, of Sallisaw, Oklahoma, was sentenced to 30 months imprisonment and 3 years supervised release for Felon In Possession Of Firearm, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e). The charges arose from an investigation by the Sallisaw Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.

The Indictment alleged that on December 29, 2017, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year,  knowingly possessed a Chinese, Model 54-1, 7.62 x 25mm caliber pistol, serial number 3700126799, a firearm which had been shipped and transported in interstate commerce.

United States Attorney Brian J. Kuester said, “Working with local, state, tribal, and federal law enforcement agencies to combat violent crime is a priority of the Department of Justice and U.S. Attorney’s Offices. One of the federal laws available to us to carry out that priority prohibits convicted felons from possessing firearms. The defendant in this case violated that federal law and is being held accountable accordingly. This joint effort by the Sallisaw Police Department, ATF, and members of this office is an example of interagency team work that occurs on a daily basis in the Eastern District of Oklahoma and across the country. When agencies work together, the public benefits.”

This case was part of the Project Safe Neighborhoods (PSN) initiative which encourages federal, state, local, and tribal agencies to cooperate in a unified team effort against gun crime, targeting repeat offenders who continually plague their communities. 

The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Dean Burris represented the United States. The defendant will remain in custody pending transportation to the designated federal facility at which the non-paroleable sentence will be served.

Attorney General Jeff Sessions and Justice Department leadership today announced the recipients of the Second Annual Attorney General’s Award for Distinguished Service in Policing, recognizing the exceptional work of 25 law enforcement officers and deputies from 12 jurisdictions across the country.

“The Trump Administration supports law enforcement at all levels—and we always will,” said Attorney General Sessions. “Today’s awards honor the incredible work that is being done across this country every day.  This Department of Justice takes pride in announcing today’s winners of the Attorney General’s Award for Distinguished Service in Policing.”

The Justice Department has been committed to supporting law enforcement and continues to back the “women and men in blue,” as directed by President Trump’s February 2017 Executive Order. The Department has recently awarded grants to assist law enforcement and first responders who supported mass shootings in Las Vegas, Nevada, Parkland, Florida, and Santa Fe, Texas.  In addition, the Department has helped police departments across America to hire hundreds more police officers through the COPS grant program.

The Attorney General’s Award recognizes individual state, local, and tribal sworn rank-and-file police officers and deputies for exceptional efforts in policing. The awarded officers and deputies have demonstrated active engagement with the community in one of three areas: criminal investigations, field operations or innovations in community policing. The Department received 207 nominations for 469 individuals ranging from state police departments, to local police, to campus public safety agencies. This award highlights the work that officers and deputies do to prevent, intervene in, and respond to crime and public safety issues. The individuals recognized today are listed below:

INNOVATIONS IN COMMUNITY POLICING

Sergeant Sean Crotty of the Little Egg Harbor Police Department, New Jersey:

Sergeant Sean Crotty is the school resource officer at the local high school. His main responsibility is the protection of the school community. However, he also takes on the arguably greater role of getting involved with students, shaping the way they view law enforcement, and helping mold them into productive community members. While Sergeant Crotty’s “beat” is the high school, this does not limit him to creating relationships with the younger students in the community. In his years with the department, Sergeant Crotty started a Junior Police Academy for middle school students, enhanced free Police Athletic League (PAL) programs, and added a Junior Police Explorers program.

Detective John Rastetter of the Canton Police Department, Ohio:

Detective Michael Rastetter’s work with those suffering from opioid addiction has set him apart  among a department full of dedicated officers continuously looking for innovative ways to serve their community. Detective Rastetter became the point person for the newly created Stark County Outreach Support (SOS) team, a quick response team made up of a nurse, a social worker and a vice detective. SOS has engaged 70 overdose survivors and 33 family members, connected 30 individuals with rehabilitation services and provided 19 Naloxone kits, leading to a reduction of nearly 60 percent in opioid-related overdose deaths in 2017. Detective Rastetter is a large part of the success of the program and decline in the overdose deaths.

Officer Laurie Reyes of the Montgomery County Police Department, Maryland:

Officer Laurie Reyes noticed that repeated searches for the same critically missing people (individuals with autism, intellectual and developmental disabilities [IDD], and Alzheimer’s disease) demanded a large portion of departmental resources, both in money and in officers’ time. She created the nationally recognized “Autism, Intellectual, Developmental Disabilities, and Alzheimer’s Outreach Program” as a way to promote awareness and safety through education, outreach, follow-up, empowerment and response. Officer Reyes identified a problem and developed a creative solution, which had a significant impact on public safety and public trust, all at no additional fiscal cost to the agency.

CRIMINAL INVESTIGATIONS

Officer Megan Freer of the Middleton Township Police Department, Pennsylvania:

In the summer of 2017, a 19-year-old man went missing near Middletown Township. Officer Freer began an intensive investigation into the missing person case, which eventually led to the discovery of a horrific quadruple homicide in Solebury Township, about 20 miles away. Officer Freer’s incredible investigative efforts led to the arrest of two 20-year-olds charged with murder of the four young men, and providing closure for the families of those missing young men. This was a tremendous effort of policing and police investigation, and Officer Freer has received several awards for her investigative effort, including the Philadelphia National Liberty Museum Award of Valor in September 2017.

Detective Andrew Beuschel, Jr. of the Evesham Township Police Department, New Jersey:

In December 2017, a father called the police when he found his 15-year-old daughter unresponsive due to a possible drug overdose; an ambulance transported the victim to the hospital, where she subsequently died from a heroin overdose two days later. Detective Beuschel investigated the case, including interviews and evidence from numerous warrants on cell phones, computers, and social media accounts, and was able to locate the suspected seller. Detective Beuschel’s persistence led to arrest warrants for possession of heroin, distribution of heroin, and ultimately, strict liability of the suspect for the drug-induced death of the 15-year-old victim.

Trooper Joel D. Follmer of the Pennsylvania State Police:

State Trooper Joel D. Follmer’s determined efforts and innovative policing techniques on an 18-month series of kidnapping and rape investigations throughout Pennsylvania led to the arrest of a serial rapist with assaults dating back as far as 1994. Trooper Follmer arrested the suspect in December of last year, who immediately confessed to several cases, and provided information on many others that he had attempted in the past and was planning in the future. The suspect is currently awaiting trial. 

FIELD OPERATIONS

Sergeant Girard Tell III and Sergeant Ryan VanSyckle of the Pleasantville Police Department, New Jersey:

Since 2016, Sergeants Tell and VanSyckle have consistently led the department in arrests and drug seizures by their dogged persistence to seek out and dismantle criminal street gangs, including a regional investigation, which netted more than 100 felony indictments against the South Side Mob street gang. Their tireless drive to remove the most dangerous and violent offenders has had a significant impact on the criminal operating environment within the community, including a steady downward trend of gun violence and a 55 percent decrease in confirmed shooting calls for service.

Corporal Richard White III of the Ohio County Sheriff’s Office, West Virginia:

In June 2017, dispatchers notified law enforcement and fire department agencies regarding several people who had flipped over their boats while kayaking and got caught in the swift current in Wheeling Creek. Corporal White arrived on the scene and waded into the heavy current, rescuing two females caught in the downstream. Corporal White was instrumental in preventing a possible tragic incident while putting himself in harm’s way. About a year earlier, a little boy had died after falling into the creek. Corporal White’s quick and selfless action helped ensure that those circumstances were not repeated.

Deputy Ned Nemeth of the Washoe County Sheriff’s Office, Nevada:

Deputy Nemeth has demonstrated active exceptional performance in field operations. As a full time K-9 handler, he works highway interdiction and has successfully reduced illegal operations in the past year along the I-80 corridor, including seizing 206 pounds of illegal marijuana, 359.42 grams of methamphetamine, and 43 contraband prescription opioid pain pills. Deputy Nemeth is known for providing high quality information about his interstate contacts to other agencies across the country. His efforts as a part of the HIDTA task force in northern Nevada not only have positive effects on his own community but also make meaningful contributions to other jurisdictions working to disrupt and dismantle organized drug trafficking operations nationwide.

Detective Thomas Curley of the Wilmington Police Department, Delaware:

Over the past 14 years, Wilmington Detective Thomas Curley has provided outstanding efforts in conducting criminal investigations to protect the people of Wilmington from gangs and violent crime, including the first successful illegal gang prosecution in the State of Delaware, which was later upheld by the Delaware Supreme Court. He possesses the ability to seek out and successfully talk with witnesses to develop leads and works tirelessly coordinating complex investigations. Detective Curley is dedicated to his job and strives for justice for the victims of violent crimes.

Officers Jeremiah Beason, Patrick Burke, Monty Fetherston, and Steve Morris, Jr., of the Las Vegas Metropolitan Police Department, Nevada:

On October 2017, at approximately 10:05 p.m., a lone gunman fired into a crowd of 22,000 concertgoers attending a country music festival in Las Vegas, killing 58 innocent people and injuring more than 850. Las Vegas Metropolitan Officers Beason, Burke, Fetherston, and Morris were the first four first responders to react during this active shooter situation. These four officers rescued injured civilians, cleared the surrounding rooms near the shooter, and secured the perimeter.  By running towards the danger, they saved countless lives.

Officers Jose Arriaga, Ruben Avalos, Carlos Escobar, Randy Jreisat, Arthur Meza, Ashley Mitchell, David Nick, Jr., Adrian Nuñez, Christina Salas, and Solly Samara of the Los Angeles Police Department, California:

In September 2017, the Los Angeles Police Department created the MacArthur Park Task Force to conduct uniform patrol in and around MacArthur Park and other surrounding areas. This team worked to restore order to the community around MacArthur Park by applying constant law enforcement and community involvement to the area to combat all crime and quality of life issues. These ten officers made 1,125 arrests in 32 weeks, issued 980 citations and offered services to hundreds of individuals. Their work is directly responsible for a 40 percent reduction of Part 1 crimes and a 46 percent reduction of violent crimes in the zone. These 10 officers helped transform this park and its surrounding neighborhood from its former blight, turning it into a clean, beautiful park.

The Justice Department today reached a settlement agreement with Palmetto Beach Hospitality LLC (Palmetto), a company that provides housekeeping services to hotels in the Myrtle Beach, South Carolina area. The agreement resolves the Department’s investigation into whether Palmetto unlawfully denied employment to qualified and available U.S. workers because it preferred to hire temporary foreign workers with H-2B visas. It is the fourth settlement under the Civil Rights Division’s Protecting U.S. Workers Initiative, which is aimed at targeting, investigating, and taking enforcement actions against companies that discriminate against U.S. workers in favor of temporary visa workers.

The Department’s investigation determined that Palmetto failed to consider applications from qualified U.S. workers for its housekeeper positions, even though employers are required to recruit and hire available and qualified U.S. workers before they receive permission to hire temporary foreign workers under the H-2B visa program. After ignoring applications from U.S. workers, Palmetto represented to the U.S. Department of Labor (DOL) that it could not find qualified U.S. workers and obtained authorization to employ temporary visa workers.  

“The Department of Justice will fight to ensure that U.S. workers are not denied jobs because an employer has a discriminatory preference for hiring temporary visa workers,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “I commend Palmetto for its cooperation with the Department’s investigation, and its agreement to engage in domestic recruitment efforts far surpassing the minimal recruiting requirements to participate in the H-2B visa worker program.”

Failing to consider or hire qualified U.S. workers based on their citizenship status violates the anti-discrimination provision of the Immigration and Nationality Act (INA), regardless of whether an employer has complied with other rules governing the use of temporary employment-based visa programs.

Under the settlement, Palmetto must engage in several types of enhanced recruiting and job advertising efforts to attract qualified U.S. workers, far beyond those required by the H-2B visa rules. Palmetto also must set aside $35,000 to pay any wages lost by U.S. workers whose applications it improperly rejected or ignored, pay $42,000 in civil penalties to the United States, and be subject to departmental monitoring.

Under the Protecting U.S. Workers Initiative, the Civil Rights Division has opened dozens of investigations, filed one lawsuit, and reached settlement agreements with four employers. Since the Initiative’s inception, employers have agreed to pay or have distributed over $320,000 in back pay to affected U.S. workers. The Division has also increased its collaboration with other federal agencies, including a new formalized partnership with DOL to combat discrimination and abuse by employers using foreign visa workers. 

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

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

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

HELENA - The United States Attorney’s Office announced today that 29-year-old Branden Miesmer of Great Falls was sentenced to 120 months in prison, 5 years of supervised release, and a $100 special assessment, to run consecutive to Miesmer’s state conviction for deliberate homicide.  Additionally, the defendant received $1,000 in fines for contempt of court. Senior U.S. District Judge Charles C. Lovell presided over the hearing.  

During the early morning hours of September 7, 2015, after committing a murder in Great Falls, Miesmer fled in a car reaching speeds of more than 110 mph on the interstate just north of Helena.  Officers pursued Miesmer, but lost sight of his car.  They found Miesmer’s car stopped next to another car at the intersection of Lincoln Road and Hauser Dam Road.  Miesmer was removing people from a smaller station wagon located next to his car.  Miesmer then quickly got in the new car and drove north. 

According to the driver of the carjacked vehicle, he had stopped at the intersection when Miesmer pulled up, got out of his car, and approached the driver’s side door with a black semi-automatic pistol.  Miesmer pointed the gun at the driver’s face and demanded that he get out of the car.  Miesmer pulled the car door open and yanked the driver out of the car while the driver yelled for his kids to get out.  The defendant later acknowledged his use of the firearm to the police in order to obtain the car. 

The case was prosecuted by Assistant U.S. Attorney Jessica Betley and investigated by the Federal Bureau of Investigation, the Great Falls Police Department, and the Helena Police Department.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

Acting Assistant Attorney General John Gore and U.S. Attorney Peter G. Strasser today announced that former St. Bernard Parish correctional officer Timothy Williams pled guilty to violating the civil rights of inmate Nimali Henry, who died in the St. Bernard Parish Prison on April 1, 2014.

In pleading guilty, Williams admitted that Ms. Henry died as a result of his intentional deprivation of her constitutional right to be free from a correctional officer’s deliberate indifference to her serious medical needs. Williams acknowledged that he willfully disregarded a substantial risk of serious harm to Henry’s health and safety by failing to take reasonable measures to address her medical conditions.

“Williams deliberately deprived the victim of necessary medical attention, resulting in her death,” said Acting Assistant Attorney General John Gore. “Williams admittedly violated federal law and his sworn duty as a corrections officer to adequately care for and protect the constitutional rights of an inmate under his supervision.”

“Today’s conviction demonstrates DOJ’s commitment to hold accountable those individuals entrusted to protecting the rights of all citizens, including inmates,” said U.S. Attorney Strasser.  “It is extremely important that our office, along with our law enforcement partners, continue to vigorously protect the rights of all citizens within the Eastern District and seek justice for those subjugated by civil rights violations.”

Sentencing is set before the Honorable Ivan L.R. Lemelle on Jan. 16, 2019.  Williams faces a sentence of up to life imprisonment.

The FBI investigated this matter. The case is being prosecuted by Assistant U.S. Attorneys Tracey N. Knight and Chandra Menon and Trial Attorney Christine M. Siscaretti of the Civil Rights Division’s Criminal Section.

Michael Kaim, 28, a former police officer with the Veterans Affairs Medical Center Police Department, was sentenced today in U.S. District Court in Indianapolis, Indiana, for deprivation of civil rights, announced John Gore, Acting Assistant Attorney General for the Civil Rights Division; United States Attorney Josh J. Minkler of the Southern District of Indiana; and Grant Mendenhall, Special Agent in Charge of the FBI’s Indianapolis Division. Kaim was sentenced to serve 12 months in prison and pay a fine of $1,000.

According to the defendant’s plea agreement and admissions in court, the defendant shoved and repeatedly punched a patient-employee whom he was in the process of arresting outside of the Richard L. Roudebush Veterans Affairs Medical Center.

“Any law enforcement official who uses excessive force against an arrestee violates the Constitution, which is designed to protect the civil rights of all individuals, including veterans who sacrifice their lives for our freedoms,” said Acting Assistant Attorney General John Gore. “The Department of Justice will continue to aggressively prosecute officer misconduct.”

“When excessive force is used by police officers against members of our community, particularly our veterans, it erodes confidence in our justice system and does irreparable damage to public confidence,” said U.S. Attorney Josh Minkler.  “Anyone who violates the civil rights of others will be held accountable.”

"The public has a right to expect better from their law enforcement officers, especially those who work with our military veterans - men and women who have bravely served our country," said Grant Mendenhall, Special Agent in Charge of the FBI's Indianapolis Division. "The FBI will continue to hold accountable members of the law enforcement community who violate the civil rights of individuals they should be protecting."

This case was investigated by the FBI. The case was prosecuted by Trial Attorney Anita T. Channapati of the Justice Department’s Civil Rights Division with assistance from the United States Attorney’s Office in Indianapolis.

On Sept. 14, a federal jury in North Dakota convicted a Providence, Rhode Island woman after a week-long trial, on all 15 counts for her participation in a Jamaican lottery fraud scheme, which has affected about 100 identified victims with reported losses totaling more than $6.7 million.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Christopher Myers of the District of North Dakota, and Special Agent in Charge Jill Sanborn of FBI Minneapolis Division, made the announcement.

Melinda Bulgin, 28, was convicted on conspiracy and substantive mail fraud and wire fraud charges, as well as one count of money laundering conspiracy.  According to the evidence presented at trial, Bulgin worked with members of a Jamaican lottery fraud conspiracy in the United States and Jamaica, and had multiple roles in the scheme.  The scheme’s conspirators located in Jamaica purchased lists containing information about U.S. citizens, and contacted them over the phone.  They told victims they had won large cash prizes and cars, but would need to pay taxes and fees in order to receive the prize.  The scammers deliberately targeted victims over the age of 55.  Victims were first courted with the lure of prizes, and additional scam callers would then also identify themselves as FBI, IRS or other trusted authorities that falsely confirmed that the prize winnings were real.  Some victims lost their savings, their life insurance and their homes before running out of money and turning to public or family assistance.  Victims lost anywhere from $200 to more than $100,000.

Evidence presented at trial further showed that Bulgin participated in the scheme via several roles - by buying the names of future victims to call, by collecting checks and cash from victims at her home address, and via wire transfers victims sent to her bank accounts.  She also sent fraudulent mailings, such as letters and photos of the fake checks, to victims to convince them of their prize.  She was caught while carrying $14,800 to Jamaica to share with her conspirators, money from an elderly woman in Arizona, who testified that she wired the money to Bulgin as advance fees for a large prize she had been told she won.

“Melinda Bulgin and her coconspirators deliberately targeted senior citizens as part of a lottery fraud scheme that affected dozens of victims, some of whom lost their life savings, life insurance, and even their homes,” said Assistant Attorney General Benczkowski.  “The conviction in this case is the result of the hard work and determination of our domestic and foreign law enforcement partners, along with the prosecutors in the District of North Dakota and Criminal Division—and it demonstrates our firm commitment to stopping those who exploit senior citizens and other vulnerable populations.”

“This case involves a unique kind of victimization,” said U.S. Attorney Myers.  “It is an assault of victims’ trust and dreams, in addition to their pocket books.  Victims are targeted because their age or personal circumstances make them particularly vulnerable; the resulting harm is financial, psychological, and physical.  Until recently, these scammers operated with impunity.  We are helping to find them and hold them accountable for their crimes.”

“The bedrock of the FBI lies in protecting our most vulnerable, including older Americans who often find themselves on fixed incomes and tight budgets,” said FBI Special Agent in Charge Sanborn.  “While nothing can fully replace the victimization felt by those who fell prey to this scheme, we hope that this conviction ensures the defendants will never be able to harm anyone again.  I’m grateful to all of our law enforcement partners who worked beyond borders to ensure the defendants could not hide and that justice was done.”

The government’s case included testimony  by an FBI case agent who traced victim money from around the country to Bulgin, several American and Jamaican cooperators, one of whom was extradited from Jamaica, multiple banks, Fedex, and remitters such as Western Union.  A Jamaican law officer who questioned Bulgin when she landed in Jamaica from the United States with $14,800 in cash also testified at trial.  In addition, multiple victims testified to the financial devastation, fear and emotional toll caused by the scammers; several victims who testified had sent money directly to Bulgin, via cash, check or wire, totaling over $100,000.

In addition to Bulgin, 14 other defendants from Jamaica and the United States were charged in the same indictment, many of whom have pleaded guilty.  The FBI led investigation of Bulgin and others has led to the successful prosecution of more than 30 defendants in related cases and the extradition of 14 Jamaican nationals.

U.S. v. Melinda Bulgin, et al. arises from the investigation of Sanjay Williams, Lavrick Willocks and others who led and operated criminal advance fee lottery telemarketing fraud organizations, with operations in the United States, Jamaica, Canada, United Kingdom, Israel, Costa Rica and elsewhere. The Jamaican lottery fraud scheme is listed in the United States as a Top International Criminal Organization Target (TICOT).  Nationwide, the number of Jamaican Lottery Fraud victims is in the millions, with some estimates of annual losses in excess of $1 billion.  The lottery scam victims in the United States are not the only victims of Melinda Bulgin’s crimes.  Top Jamaican law enforcement officials emphasize that lottery scamming has directly led to a dramatic increase in violent crime – including murder, shootings, and extortion - in Jamaica, as rival scammers battle one another over the names of potential victims and profits.

The FBI, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, and a host of state and local authorities throughout the United States, along with foreign enforcement authorities, including Jamaican Constabulary Force (JCF) Major Organised Crime and Anti-Corruption Agency (MOCA) and Jamaican Operations Linked to Telemarketing (JOLT) task force, have assisted in the investigation and the extradition of the defendants in the indictment.  The Justice Department’s Office of International Affairs provided significant assistance in the extraditions.  Trial Attorney Leila E.  Babaeva of the Criminal Division Fraud Section, and Assistant U.S. Attorneys Clare Hochhalter, James Patrick Thomas, Nick Chase and Jonathan O’Konek of the District of North Dakota are prosecuting the case.

An illegal alien and MS-13 gang member from El Salvador was convicted today by a federal jury of using physical force to tamper with a witness; being an illegal alien in possession of a firearm; illegally re-entering the United States after previously being deported; multiple counts of cocaine distribution; and multiple counts of other firearms violations, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Don Cochran of the Middle District of Tennessee.

Gerson Serrano-Ramirez, aka “Frijole,” 31, was indicted in August 2017 and convicted today after a three-day jury trial in U.S. District Court in Nashville, Tennessee.

“MS-13 is one of the most violent and dangerous gangs in America, and the conduct that occurred in this case is further evidence of the gang’s ruthlessness,” said Assistant Attorney General Benczkowski.  “The Department of Justice and our law enforcement colleagues are committed to combatting MS-13 here in the Middle District of Tennessee and in every other jurisdiction where the gang operates.  We will seek out members of MS-13 and other violent gangs wherever they may be and prosecute them to the fullest extent of the law.”

“The jury’s verdict will ensure that another violent criminal alien will be removed from our community for a very long period of time and he will have little, if any chance of ever inflicting harm outside of his new home - a federal penitentiary,” said U.S. Attorney Cochran.  “I commend the excellent work of our law enforcement partners and our prosecutors and appreciate the jury’s time and attention during this trial.”

According to evidence and testimony presented at trial, in July 2017, the activities of Serrano-Ramirez and other MS-13 gang members were disrupting the normal operation and business of a local nightclub and this was brought to the attention of Serrano-Ramirez by an acquaintance, with a request to tone down their disruptive behavior.  Serrano-Ramirez later invited the individual to his home in the Antioch, Tennessee area, where he subsequently assaulted him by pointing an assault rifle at him; strangling him with the rifle strap; spraying bleach into his eyes and then attempted to suffocate him by placing a plastic bag over his head.  Finally, while clamping the individual’s finger with a pair of pliers and holding an assault rifle on him, Serrano-Ramirez told the individual that if he told anyone about the assault that he would kill him and his mother. 

Evidence introduced during the trial also included video of the assault which was captured on an in-home security system at Serrano-Ramirez’ house and videos of him packaging and selling cocaine from the residence.  This video was discovered and seized during the subsequent execution of a search warrant.  Also seized during this search was an AK-47 assault rifle, multiple rifle magazines, 582 rounds of ammunition, body armor and a small amount of cocaine and marijuana.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the Metropolitan Nashville Police Department Gang Unit.  Trial Attorney Matthew Hoff of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Ahmed Safeeullah of the Middle District of Tennessee.

Pablo Duran Ramirez, 50, pleaded guilty today in U.S. District Court in Cleveland, Ohio, to encouraging the illegal entry of Guatemalan nationals, including unaccompanied minors, into the United States for financial gain, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Justin E. Herdman of the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division. Duran Ramirez is the fourth defendant to plead guilty in connection with a labor trafficking scheme that forced Guatemalan minors to work at egg farms in central Ohio.

According to the defendant’s plea agreement and admissions in court, the defendant, through his company, Haba Corporate Services, contracted to provide labor to Trillium Farms, knowing that the workers were unlawfully present in the United States. He further admitted to knowing that some of the workers were unaccompanied minors who had been coerced or threatened to enter the United States and then housed in an isolated trailer park in Marion, Ohio. In 2013 and 2014, Trillim Farms paid the defendant’s company approximately $6 million for its labor services.

“Motivated by greed, the defendant violated the immigration laws and contributed to the exploitation of vulnerable children who lacked immigration status,” said Acting Assisting Attorney General Gore.  “The Department of Justice will use its resources to prosecute individuals who unlawfully victimize others for their own monetary profit.”

“This defendant profited off the desperation of children and their parents and other relatives,” said U.S. Attorney Justin Herdman for the Northern District of Ohio. “He knew some of the workers he delivered to Trillium Farms were underage, in the country illegally and were threatened or coerced. We will continue to work to eliminate human trafficking in all its forms.”

“This defendant, in conspiracy with three other previously convicted individuals, coerced and assisted individuals to enter the United States illegally, many of them children, forcing them to live in deplorable conditions and work for little to no wages,” said Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division. “These reprehensible actions are unacceptable and rest assured the FBI will continue to work with our partners to bring to justice those who engage in human trafficking.”

Duran Ramirez faces a sentence of up to 10 years in prison. His sentencing date has been set for Jan. 7, 2019.

Three other defendants—Aroldo Castillo-Serrano, of Guatemala, Ana Angelica Pedro-Juan, of Guatemala, and Conrado Salgado-Soto, of Mexico—previously pleaded guilty for their roles in the same labor trafficking scheme. Castillo-Serrano, the lead smuggler and primary enforcer, was sentenced to 188 months in prison; Pedro-Juan, who oversaw the victims in Ohio, was sentenced to 120 months; and Salgado-Soto, a subcontractor hired by Duran Ramirez, was sentenced to 51 months.

Those defendants admitted to recruiting workers from Guatemala, some as young as 14 or 15 years old, falsely promising them good jobs and a chance to attend school in the United States.  The defendants then smuggled and transported the workers to a trailer park in Marion, Ohio, where they ordered them to live in dilapidated trailers and work at physically demanding jobs at Trillium Farms for up to 12 hours a day.  The work included cleaning chicken coops, loading and unloading crates of chickens, de-beaking chickens and vaccinating chickens. During their sentencing, Senior United States District Judge James G. Carr found that they had threatened workers with physical harm and withheld their paychecks in order to compel them to work. Eight minors and two adults were identified as victims of the scheme.

Three additional defendants, including Duran Ramirez’s son, pleaded guilty for their roles in encouraging the workers’ illegal entry into the United States.

This case is being investigated by the FBI’s Cleveland Office, Mansfield Resident Agency and the Department of Homeland Security. The case is being jointly prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Chelsea Rice.

Former Village of Biscayne Park Chief of Police, Raimundo Atesiano, pleaded guilty in federal court to conspiring with subordinate officers to violate individuals’ civil rights by making false arrests, announced Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, FBI Miami Field Office, Katherine Fernandez Rundle, Miami-Dade State Attorney, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE).     

According to documents filed in connection with the plea entered today, Atesiano was acting under color of law as chief of police when on three separate occasions he ordered officers under his command to falsely arrest and charge individuals with unsolved burglaries.  In court filings related to the plea, Atesiano admitted that on one occasion he instructed an officer to falsely arrest and charge an individual for several vehicle burglaries based upon what Atesiano knew were false confessions. According to the documents, Atesiano intentionally encouraged officers to arrest individuals without a legal basis in order to have arrests effectuated for all reported burglaries, which created a fictitious 100% clearance rate for that category of crime.

Guillermo Ravelo, a former Biscayne Park Officer who is named in the superseding indictment, previously entered a guilty plea for his role in the conspiracy with Atesiano to violate individuals’ civil rights. Charlie Dayoub and Raul Fernandez, former Biscayne Park officers who also are named in the superseding indictment, previously entered guilty pleas for their roles in effecting false arrests.

The Court set the sentencing date for Atesiano on Nov. 27. Guillermo Ravelo is scheduled to be sentenced on Oct. 4, and Charlie Dayoub and Raul Fernandez are scheduled to be sentenced on Oct. 16. 

“The right to be free from false arrests is fundamental to our Constitution and system of justice,” said Acting Assistant Attorney General John Gore. “Law enforcement officers who abuse their authority and deny any individual this right will be held accountable. As the Chief of Police, Defendant Atesiano was trusted by his community to lead their police officers by example; he has failed his community and the officers of Biscayne Park.”

“The vast majority of law enforcement officers across the nation serve our communities with honor and integrity,” stated U.S. Attorney Benjamin G. Greenberg.  “We will not allow the minority of officers who cast aside their oaths to tarnish the reputation of those who protect us all.  Instead, as evidenced today with former Chief Raimundo Atesiano’s guilty plea, we will continue to hold them accountable in federal court for criminal acts that threaten our constitutional guarantees.” 

“Law enforcement officers are entrusted with a great deal of responsibility and authority and therefore must be held to a high standard. Raimundo Atesiano failed to meet this standard by abusing his authority and breaking laws,” said Scott A. Rottman, Acting Special Agent in Charge, FBI Miami.  "Unfortunately, the actions of a very few dishonest officers, such as Atesiano and his co-conspirators, undercut the public’s trust and they must be rooted out. His actions do not represent the overwhelming majority law enforcement officers who are diligent, honorable professionals who are worthy of that trust."

“It is a deliberate injustice to intentionally charge and arrest an innocent man. Police Chief Raimundo Atesiano’s actions were intended to give his community a false sense of security and were a betrayal of his oath to protect the residents of Biscayne Park and all the people of Miami-Dade County,” commented State Attorney Katherine Fernandez Rundle.  “I applaud the combined efforts of our law enforcement partnership to end this calculated abuse of power.” 

 “Law enforcement officers must be held to the highest moral standards and when that trust is broken, FDLE will work aggressively to investigate and find the truth ensuring all citizens are treated justly,” said FDLE Miami Special Agent in Charge Troy Walker.  

The case was investigated by the FBI, the FBI Miami Area Corruption Task Force and the FDLE, with assistance from the Miami-Dade State Attorney’s Office. The case was prosecuted by Assistant U.S. Attorney Harry C. Wallace, Jr., Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice, and Assistant State Attorney Trent Reichling.

A federal grand jury in Fresno, California returned a five-count indictment yesterday against 16 members and associates of La Mara Salvatrucha (MS-13), Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney McGregor W. Scott for the Eastern District of California announced.

The defendants are charged with assault with a dangerous weapon in aid of racketeering (two counts); conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine, and marijuana; and being an alien in possession of a firearm (two counts). The defendants are:

• Denis Barrera-Palma, 24, of Mendota, California, charged with assault with a dangerous weapon (a pipe) and drug conspiracy;
• Mario Alexander Garcia, 31, of Mendota, charged with drug conspiracy;
• Francisco Lizano, 24, of Mendota, charged with drug conspiracy and alien in possession of a firearm;
• Jefferson Guevara, 19, of Los Angeles, California, charged with drug conspiracy;
• Ever Membreno, 18, of Mendota, charged with drug conspiracy;
• Edgar Torres-Amador, 21, of Mendota, charged with assault with a dangerous weapon (a pipe);
• Lorenzo Amador, 20, of Mendota, charged with assault with a dangerous weapon (a stabbing instrument) and drug conspiracy;
• Jose Wilson Navarette-Mendez, 21, of Mendota, charged with drug conspiracy;
• Denis Alfaro-Torres, 22, of Mendota, charged with drug conspiracy;
• Santos Bonilla, 26, of Mendota, charged with drug conspiracy;
• Henry Bonilla, 18, of Mendota, charged with drug conspiracy;
• Marvin Villegas-Segovia, 21, of Mendota, charged with drug conspiracy;
• Christian Hidalgo, 21, of Mendota, charged with drug conspiracy;
• Brenda Yajaria Morales, 25 of Mendota, charged with drug conspiracy and alien in possession of a firearm;
• Claudia Lizaola, 39, of San Bernardino, California, charged with drug conspiracy; and
• Oscar Reyes, 29 of Mendota, charged with drug conspiracy.

According to the complaint and indictment, the defendants were allegedly members of MS-13 operating in Mendota and Los Angeles.  MS-13 is a violent criminal street gang that engages in racketeering activity, including murder, kidnapping, extortion, and drug trafficking.  Its members span the nation and are active internationally as well.  The charges allege that in May 2018, Denis Barrera-Palma and Edgar Torres-Amador assaulted another individual with a dangerous weapon in furtherance of MS-13 and in order to gain entrance to, or maintain or increase their status within, MS-13.  They further allege that in August 2018, Lorenzo Amador assaulted another individual with a dangerous weapon in furtherance of MS-13 and in order to gain entrance to, or maintain or increase his status within, MS-13.  The charges also allege that all defendants, except Amador-Torres, engaged in a conspiracy to distribute and possess with intent to distribute methamphetamine, cocaine and marijuana.

These charges follow initial charges filed via complaint in August 2018, after which most of the defendants were arrested on Aug. 30.  As set forth in the complaint, MS-13 allegedly engaged in street level drug sales to fund the gang’s various criminal activities.  The gang allegedly would acquire drugs, parse them out among members with a directive that they sell the drugs within a certain period of time and return all proceeds to the gang.  Those proceeds would then allegedly be used for a variety of purposes, including funding trips to obtain drugs or commit acts of violence, putting money on the books of incarcerated MS-13 members, sending money to MS-13 members in El Salvador, and obtaining more narcotics to sell.  Among the alleged assaults gang members engaged in were the May 2018 pipe attack in front of an elementary school in Mendota and an Aug. 12 stabbing in Mendota.  Both alleged events involved MS-13 members assaulting individuals believed to be members of a rival gang to MS-13.

A number of the defendants are also facing charges in Fresno County Superior Court, including Denis Barrera-Palma and Ever Membreno, who are charged with conspiracy to commit murder with a gang enhancement.

The investigation was conducted by the California Department of Justice and California Highway Patrol Special Operations Unit, the Multi-Agency Gang Enforcement Consortium (MAGEC), the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation Special Services Unit (SSU). The CHP Special Operations Unit is a collaborative investigative effort between the California Department of Justice and California Highway Patrol that provides statewide enforcement to combat violent career criminals, gangs, and organized crime groups, along with intrastate drug traffickers. Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section, along with Assistant U.S. Attorneys Ross Pearson, Angela Scott, Kathleen Servatius and Kimberly Sanchez of the Eastern District of California are prosecuting this and related cases.  Senior Fresno County Deputy District Attorney Dennis Lewis is prosecuting related cases in Fresno County Superior Court.

All defendants, except Lorenzo Amador are in custody.  Amador is at large and a warrant for his arrest is outstanding.

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.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.  Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. 

The Justice Department today announced that a federal grand jury in Wisconsin returned an indictment charging Chadwick Grubbs, 33, with obstruction and attempted obstruction of the free exercise of religious beliefs, by mailing threats on three separate dates in May to the Harry and Rose Samson Family Jewish Community Center in Whitefish Bay. In addition to three religious obstruction charges, the indictment also charges Grubbs with three counts of mailing threatening communications and one count of threatening to injure and destroy property by fire and an explosive.

The defendant is currently being held in state custody on separate cases.

The charges contained in the indictment are merely allegations, and the defendant is presumed innocent unless and until proven guilty.

The FBI is leading the investigation. Assistant United States Attorney Gregory Haanstad of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Kathryn Gilbert of the Justice Department’s Civil Rights Division are prosecuting this case.

Attorney General Sessions today issued the following statement on the Election Security Executive Order:

 “The American people will not tolerate attempts to undermine the integrity of our electoral process—especially by foreign countries and other bad actors.  President Trump is committed to taking definitive action to prevent anyone—foreign or domestic—from illegally interfering in our elections, and the Department of Justice is proud to support him in this mission.

“Pursuant to the President’s executive order, the Department will work with our partners at the State Department, Treasury Department, and Department of Homeland Security, in order to identify enemies of our country who put our electoral integrity at risk.  Once we do, we will take action to bring them to justice.

“I applaud President Trump’s leadership on this issue, and I want to echo the clear message he has sent today: we will not accept attacks on our free elections and we will do whatever it takes to protect them.  This is what the American people demand, and this is what they deserve.”

A federal grand jury in Alexandria, Virginia returned an indictment today charging an Evansville, Indiana man with one count of conspiracy to receive and distribute child pornography, one count of distribution of child pornography, and one count of receipt of child pornography.

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, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office and Chief Michael L. Brown of the Alexandria Police Department, made the announcement. 

Bradley Robert Segert, 30, is charged with one count of conspiracy to receive and distribute child pornography, one count of distribution of child pornography, and one count of receipt of child pornography.  According to the indictment, between January 2015 and August 2015, Segert allegedly administered a private chat group on Kik Messenger, a mobile messaging application, dedicated to sharing and trading images and videos of child pornography.  During this period, Segert and another administrator living within the Eastern District of Virginia allegedly required Kik users interested in becoming members of the group to send them images and videos of child pornography in order to gain admission.  Additionally, the indictment alleges that Segert knowingly distributed and received child pornography in interstate commerce, including to and from the Eastern District of Virginia.    

FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, specifically the Alexandria Police Department, is investigating the case. The Task Force is comprised of agents of the FBI, U.S. Marshals, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies.  Trial Attorneys James E. Burke IV, Gwendelynn Bills and William Clayman of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case. 

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

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 the Child Exploitation and Obscenity Section (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.

William Dukes, Jr., a former sergeant with the Providence, Kentucky, Police Department, was sentenced today to 42 months in federal prison and three years’ supervised release for willfully depriving a Kentucky citizen of his constitutional rights under color of law, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and U.S. Attorney Russell Coleman for the Western District of Kentucky.

The jury found that Dukes willfully violated the Constitution by arresting the victim, while knowing that he did not have probable cause to believe that the victim had committed any crime. The evidence presented at trial established that after the victim called the authorities seeking to file a complaint about an earlier interaction with Dukes, he wrongfully arrested the victim.

The jury heard evidence presented in court that when the victim called the Providence Police Department to complain about Dukes, Dukes responded by threatening to arrest him if he called back again.  Still determined to file a complaint, the victim then called the local sheriff’s office and the Kentucky State Police. When Dukes became aware of these additional calls, he drove to the victim’s home in the middle of the night, without a warrant, to arrest him.

Upon arriving at the victim’s home after 1 a.m., Dukes attempted to arrest the victim based solely on the phone calls he had made complaining about Dukes.  When the victim insisted he had done nothing wrong and retreated into his home, Dukes entered the victim’s home without a warrant.  Dukes then tased the victim, sprayed him in the face with pepper spray, struck him repeatedly with a police baton, and punched him in the face, breaking the victim’s nose. Next, Dukes handcuffed the victim and charged him with four crimes, including a charge of property damage because blood from the victim’s broken nose got onto Dukes’s police uniform. 

The jury convicted Dukes of willfully violating the victim’s constitutional rights, and found that the offense involved the use of a dangerous weapon or resulted in bodily injury.

“Police officers have a duty to protect the rights of members of their communities and safeguard them from harm or injury,” said Acting Assistant Attorney General John Gore. “Dukes abused his authority as a law enforcement officer by illegally arresting his victim and also by inflicting unwarranted physical harm, and the Justice Department held him responsible.”

“Kentucky lawmen and women are among the finest in the nation,” said U.S. Attorney Russell Coleman “But when they cross a clear line, as did Mr. Dukes, they will be held accountable like any other citizen of our Commonwealth.”

This case was investigated by the Louisville Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Seth Hancock of the Western District of Kentucky and Trial Attorney Zachary Dembo of the Criminal Section of the Civil Rights Division.

A consultant along with his co-conspirators, the President of an Arkansas college and a former Arkansas State Representative, were sentenced in the past week for their roles in a bribery scheme in which state funds were directed to non-profit entities in exchange for kickbacks, announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Duane “DAK” Kees for the Western District of Arkansas.

Randell G. Shelton Jr., 39, of Kemp, Texas, a consultant, was sentenced on Sept. 6 by U.S. District Judge Timothy L. Brooks to serve 72 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $660,698 and to forfeit $664,000.  Shelton was convicted by a federal jury on May 3 of 12 counts, including conspiracy and honest services wire and mail fraud. Also convicted in the scheme was former Arkansas State Senator Jonathan E. Woods, 41, of Springdale, Arkansas, of 15 counts, including conspiracy, honest services wire and mail fraud, and money laundering. 

Oren Paris III, 50, of Springdale, Arkansas, President of Ecclesia College, was sentenced yesterday to serve 36 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $621,500. Paris pleaded guilty before Judge Brooks to one count of honest services wire fraud on April 5. 

Micah Neal, 43, of Springdale, Arkansas, a former Arkansas State Representative was sentenced today to three years probation including the first year to be served as home confinement and the second and third years to include 300 hours of community service.  Neal was also ordered to pay restitution in the amount of $200,000 to the State of Arkansas and the Northwest Arkansas Economic Development District (NWAEDD).  Neal previously pleaded guilty before Judge Brooks to one count of conspiracy to commit honest services fraud. 

 According to admissions made in his plea agreement, Neal served as an Arkansas State Representative from 2013 to 2017.  Neal admitted, and evidence presented at trial for Woods and Shelton revealed, that between sometime in 2013 and January 2015, Neal conspired with Woods to use their official positions to appropriate and direct government money, known as General Improvement Funds (GIF), to two non-profit entities in exchange for bribes.  Specifically, Neal and Woods authorized and directed the NWAEDD, which was responsible for disbursing the GIF, to award a total of approximately $600,000 in GIF money to the two non-profit entities.  Pursuant to his plea agreement, Neal admitted that of the $600,000, he personally authorized and directed a total of $175,000 to the entities.  In return for his official actions, Neal received approximately $38,000 in bribes from the two non-profit entities.

Neal was the fourth defendant involved in this bribery scheme to be sentenced within the past week.  On Sept. 5, Woods was sentenced by Judge Brooks to serve 220 months in prison, followed by three years of supervised release, and was ordered to pay restitution in the amount of $1,621,500 and to forfeit $1,097,005. 

The FBI and IRS-Criminal Investigation investigated the case.  Trial Attorney Sean F. Mulryne of the Criminal Division’s Public Integrity Section and First Assistant U.S. Attorney Kenneth Elser and Assistant U.S. Attorneys Kyra Jenner and Aaron Jennen of the Western District of Arkansas prosecuted the case.

On Monday, September 10th, Kenneth S. Giannoules, the first Chief of INTERPOL Washington, the U.S. National Central Bureau (USNCB), visited the agency. He led the USNCB from 1969 to 1974 when the organization was an office in the Department of the Treasury. Giannoules met with current Director Wayne H. Salzgaber, toured the facilities, and addressed INTERPOL Washington staff. A career Secret Service agent, Giannoules helped to protect U.S. Presidents Truman, Eisenhower, Kennedy, and Johnson.

A former manager of a U.S.-based logistics and freight forwarding company pleaded guilty to a foreign bribery charge today for his role in a scheme to corruptly secure contracts and contract extensions from Venezuela’s state-owned and state-controlled energy company, Petroleos de Venezuela S.A. (PDVSA).  The guilty plea of the foreign official who was bribed was also unsealed today. 

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

Juan Carlos Castillo Rincon (Castillo), 55, of Conroe, Texas, previously of Miami, Florida, pleaded guilty before U.S. Magistrate Judge Nancy K. Johnson of the Southern District of Texas in Houston to one count of conspiracy to violate the Foreign Corrupt Practices Act (FCPA).  Castillo is scheduled to be sentenced on Feb. 21, 2019 by U.S. District Judge Gray H. Miller of the Southern District of Texas. 

Judge Johnson also unsealed the guilty plea of Jose Orlando Camacho (Camacho), 46, of Miami, Florida, previously of Katy, Texas, the PDVSA official whom Castillo bribed.  In July 2017, Camacho pleaded guilty under seal before Judge Miller to conspiracy to commit money laundering.  Camacho is also scheduled to be sentenced on Feb. 21, 2019 by Judge Miller.

“Corruption undermines the rule of law, tilts the playing field away from law-abiding businesses, and exposes our financial system to the distorting effects of illicit cash flows,” said Assistant Attorney General Benczkowski.  “The guilty pleas announced today are the latest in a series of actions arising out of an ongoing investigation of bribery at PDVSA.  The Department will continue to combat corruption wherever we find it.”

“These guilty pleas reflect the hard work of agents and investigators and mark another step in the joint effort to combat foreign corruption,” said U.S. Attorney Patrick.  “Our office will continue to prosecute those who bribe foreign officials or use our financial networks to launder the proceeds of these bribes.”    

“Foreign bribery schemes like this pose a significant threat to the public trust and fair trade practices,” said HSI Houston Special Agent in Charge Dawson.  “Today’s pleas are a step in the right direction, but we will continue to aggressively investigate individuals and corporations who violate the FCPA to ensure a fair and equal playing field for U.S. companies and consumers.”

Castillo was arrested in Miami on April 19, after a federal grand jury returned a five-count indictment against him.  According to admissions made in connection with Castillo’s plea, beginning in or around 2011 and continuing through at least 2013, Castillo, a manager at a Houston-based logistics and freight forwarding company, conspired with others to bribe a PDVSA official in exchange for the official providing assistance in connection with the company’s business with PDVSA.  In exchange for bribe payments, the PDVSA official assisted the company in obtaining PDVSA contracts, contract extensions and favorable contract terms; provided Castillo with inside information concerning the PDVSA bidding process; and supported the company in internal PDVSA meetings regarding purchasing decisions.

As part of his guilty plea, Camacho admitted that while employed by PDVSA or its wholly owned subsidiaries or affiliates, he accepted bribes from Castillo and the logistics and freight forwarding company for which Castillo was a manager in exchange for taking certain actions to assist the company in its business with PDVSA.  Camacho also admitted that he conspired with Castillo to launder the proceeds of the bribery scheme. 

As part of their plea agreements, both Castillo and Camacho have agreed to forfeit the proceeds of their criminal activity. 

With Castillo’s plea today and the unsealing of Camacho’s plea, the Justice Department has announced charges against 18 individuals, 14 of whom have pleaded guilty, as part of a larger, ongoing investigation by the U.S. government into bribery at PDVSA.  The HSI Houston Field Office is conducting the ongoing investigation, with assistance from HSI in Boston and from IRS Criminal Investigation.  Trial Attorneys Jeremy R. Sanders and Sarah E. Edwards of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John P. Pearson and Robert S. Johnson of the Southern District of Texas are prosecuting the case.  Assistant U.S. Attorney Kristine Rollinson of the Southern District of Texas is handling the forfeiture aspects of the case.

The Criminal Division’s Office of International Affairs and the Cayman Islands’ Office of the Director of Public Prosecutions also provided assistance. 

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

Attorney General Jeff Sessions today issued litigation guidelines to aid Department of Justice attorneys involved in litigation challenging a federal government program, regulation, order, or law. The litigation guidelines will arm Department litigators handling these cases to present strong and consistent arguments in court against the issuance of nationwide injunctions and to reaffirm the existing constitutional and practical limitations on the authority of judges. The Department opposes the issuance of nationwide injunctions, consistent with the longstanding position of the Executive Branch under previous Administrations from both parties.

Nationwide injunctions—sometimes called “non-party injunctions”—prevent the federal government from enforcing an Executive Branch law or policy as to any person or organization, across the entire United States, regardless of whether such broad injunctions are necessary to provide relief to the specific plaintiffs involved in the case. In effect, they allow a single unelected federal district judge to set or veto a national policy. The increase in the number of nationwide injunctions in recent years, across Administrations of both parties, highlights the problem of judges acting outside of the bounds of their authority to grant relief to people or organizations that extends beyond the particulars of a specific case. 

In releasing the litigation guidelines, Attorney General Sessions provided the following statement:

“Increasingly, we are seeing individual federal district judges go beyond the parties before the court to give injunctions or orders that block the entire federal government from enforcing a law or policy throughout the country. This kind of judicial activism did not happen a single time in our first 175 years as a nation, but it has become common in recent years. It has happened to the Trump administration 25 times in less than two years. This trend must stop. We have a government to run. The Constitution does not grant to a single district judge the power to veto executive branch actions with respect to parties not before the court. Nor does it provide the judiciary with authority to conduct oversight of or review policy of the executive branch. These abuses of judicial power are contrary to law, and with these new guidelines, this Department is going to continue to fight them.”

In a recent speech to the Eighth Circuit Judicial Conference, the Attorney General stressed that the use of nationwide injunctions threatens the rule of law. The Attorney General also emphasized how nationwide injunctions are a danger to our constitutional order in a March op-ed. The litigation guidelines published today will strengthen the Department’s efforts to help restore order, boundaries, and common sense to the U.S. judicial system.

An Alexandria, Virginia man pleaded guilty today to one count of receipt of child pornography. 

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, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office and Chief Michael L. Brown of the Alexandria Police Department made the announcement. 

Edward Thomas Parsons, 64, a former physical security specialist with the Department of Defense, pleaded guilty today before Senior U.S. District Judge Claude M. Hilton of the Eastern District of Virginia to receipt of child pornography.  According to admissions made in connection with his plea, Parsons administered an online group chat on Kik Messenger, a mobile messaging application, dedicated to soliciting child pornography from other Kik users.  Between January 2015 and August 2015, Parsons received and distributed images and videos of child pornography from this Kik group chat.  In addition, through the course of its investigation, law enforcement seized Parsons’s personal desktop computer and cell phone and found hundreds of images and videos of child pornography on the devices.

Parsons is scheduled to be sentenced on Feb. 1, 2019.

FBI Washington Field Office’s Child Exploitation and Human Trafficking Task Force, specifically the Alexandria Police Department, is investigating the case.  The Task Force is comprised of agents of the FBI, U.S. Marshals, and detectives from the Prince William County Police, Fairfax County Police, Loudoun County Sheriff’s Office, Metropolitan Police, Alexandria City Police, Arlington County Police, Leesburg Police, Virginia State Police and the Offices of Inspector General of several federal agencies.  Trial Attorneys James E. Burke IV, Gwendelynn Bills and William Clayman of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting 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.

The Justice Department announced that Gary Ola, 54, a sergeant at the Cheatham County Jail in Ashland City, Tennessee, pleaded guilty late yesterday to two counts of making false statements to FBI agents.

Ola was indicted on June 26 and the charges resulted from false statements about his knowledge of an incident in which another corrections officer used a Taser to stun a restrained detainee inside the Cheatham County Jail.  The other corrections officer was charged in a separate indictment with two counts of deprivation of rights under color of law and two counts of obstruction of justice and his trial is set for early 2019. He is presumed innocent until proven guilty.

In his plea agreement, Ola admitted to making false statements during two separate interviews with federal agents investigating the Taser incident. In the first interview in August 2017, Ola falsely told agents with the FBI and the Tennessee Bureau of Investigation that, after he helped secure a detainee in a restraint chair in the Cheatham County Jail on Nov. 5, 2016, he walked away and did not see another corrections officer deploy a Taser and stun the detainee. In a second interview with the FBI in May 2018, the Ola stated that he did not see the corrections officer stun the detainee after officers placed the detainee in handcuffs. Ola admitted that he made these false statements because he feared retaliation if he reported that the corrections officer had used his Taser in violation of the jail’s policy and training.

Ola faces a maximum sentence of five years in prison and a $250,000 fine on each count.  A sentencing date has yet to be scheduled. 

This case was investigated by the FBI and the Tennessee Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee and Civil Rights Division Trial Attorney Michael J. Songer.

Peter Yuryevich Levashov, aka “Petr Levashov,” “Peter Severa,” “Petr Severa” and “Sergey Astakhov,” 38, of St. Petersburg, Russia, pleaded guilty today in U.S. District Court in Hartford, Connecticut, to offenses stemming from his operation of the Kelihos botnet, which he used to facilitate malicious activities including harvesting login credentials, distributing bulk spam e-mails, and installing ransomware and other malicious software.

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 Special Agent in Charge Brain C. Turner of the FBI’s New Haven Division made the announcement.

 “For over two decades, Peter Levashov operated botnets which enabled him to harvest personal information from infected computers, disseminate spam, and distribute malware used to facilitate multiple scams,” said Assistant Attorney General Benczkowski. “We are grateful to Spanish authorities for his previous arrest and extradition.  Today’s guilty plea demonstrates that the Department will collaborate with our international law enforcement partners to bring cybercriminals to justice, wherever they may be.”

“Mr. Levashov used the Kelihos botnet to distribute thousands of spam e-mails, harvest login credentials, and install malicious software on computers around the world,” said U.S. Attorney Durham.  “He also participated in online forums on which stolen identities, credit card information and cybercrime tools were traded and sold.  For years, Mr. Levashov lived quite comfortably while his criminal behavior disrupted the lives of thousands of computer users.  Thanks to the collaborative work of the FBI and our partners in law enforcement, private industry and academia, a prolific cybercriminal has been neutralized, and has now admitted his guilt in a U.S. courtroom.”

“Today justice has finally arrived for Peter Levashov, who is perhaps better known in the cyber community by his online identity, Peter Severa,” said FBI Special Agent in Charge Turner.  “The FBI’s New Haven Division has been engaged in a multiyear investigation of Levashov, with evidence gathered from a number of countries around the world.   Today’s guilty plea should serve as an unequivocal reminder to all those who use the internet for illicit purposes:  The FBI will pursue you regardless of what country you live in and the length of time it might take to secure your eventual arrest.  As we move forward, no cyber criminal should rest easy.  The men and women of the FBI’s New Haven Division, along with the members of our Cyber Task Force and our many other federal, state, local, and tribal partners across the state, will continue to employ the same dedication and hard work, which made this effort such a success, to the continued protection of the citizens of Connecticut and the nation as a whole.”

According to court documents and statements made in court, a botnet is a network of computers infected with malicious software that allows a third party to control the entire computer network without the knowledge or consent of the computer owners.  Since the late 1990s until his arrest in April 2017, Levashov controlled and operated multiple botnets, including the Storm, Waledac and Kelihos botnets, to harvest personal information and means of identification (including email addresses, usernames and logins, and passwords) from infected computers.  To further the scheme, Levashov disseminated spam and distributed other malware, such as banking Trojans and ransomware, and advertised the Kelihos botnet spam and malware services to others for purchase in order to enrich himself.  Over the course of his criminal career, Levashov participated in and moderated various online criminal forums on which stolen identities and credit cards, malware and other criminal tools of cybercrime were traded and sold.

Spanish authorities arrested Levashov in Barcelona on April 7, 2017, based upon a criminal complaint and arrest warrant issued in the District of Connecticut.  At the time of Levashov’s arrest, Kelihos infected at least 50,000 computers.

On April 10, 2017, the Justice Department announced that it had taken action to dismantle the Kelihos botnet.

On April 20, 2017, a grand jury in the District of Connecticut returned an indictment charging Levashov with multiple offenses related to this scheme.  Levashov was extradited to the United States in February.

Levashov pleaded guilty before U.S. District Judge Robert N. Chatigny to one count of causing intentional damage to a protected computer, one count of conspiracy, one count of wire fraud and one count of aggravated identity theft.

Judge Chatigny scheduled sentencing for Sept. 6, 2019.  Levashov is detained pending sentencing.

The FBI’s New Haven Division and Anchorage Division are investigating the case, with the assistance from the Spanish National Police.  Senior Trial Attorney Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Vanessa Richards and David Huang of the District of Connecticut are prosecuting the case.  The Criminal Division’s Office of International Affairs handled the extradition in this matter, with assistance from the U.S. Marshals Service.  The University of Alabama at Birmingham, ThreatStop, SpamHaus, Cisco, Cambridge University, and Cloudmark also provided invaluable assistance in the investigation and prosecution of Mr. Levashov.

A New Jersey man pleaded guilty today to tax evasion in connection with over $1.2 million in income related to the proceeds of a sale of a purportedly original Caravaggio painting.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Matthew D. Line, Acting Special Agent in Charge of IRS Criminal Investigation’s (IRS-CI) Nashville Field Office and Special Agent in Charge Troy Sowers of the FBI’s Knoxville Field Office made the announcement. 

Brian Gimelson, 48 of Lawrenceville, New Jersey, pleaded guilty to two counts of attempting to evade or defeat a tax before U.S. District Judge Tanya Walton Pratt of the Southern District of Indiana.  He is scheduled to be sentenced on Feb. 1, 2019 by Judge Pratt.

According to admissions made in connection with his guilty plea, Gimelson earned a substantial income for his role in a transaction involving the sale of a purportedly original painting by the Italian painter Michelangelo Merisi, commonly known as Caravaggio titled David With the Head of Goliath (the Caravaggio Painting).  Despite earning over $1.2 million in income on this transaction, Gimelson did not timely file income tax returns and he did not timely pay tax due and owing to the United States. 

In order to conceal his income and evade the payment of his tax liabilities, Gimelson created a company, had his wife serve as managing member of the company, and used this company to facilitate the Caravaggio Painting transaction.  Despite creating this company in his wife’s name, Gimelson admitted that he controlled the company and its bank accounts, including the fees Gimelson received for his role in the Caravaggio Painting transaction.  Gimelson further admitted that he directed his wife to make frequent and substantial cash withdrawals on his behalf from company accounts, and Gimelson used company funds to purchase collectibles and precious metals, among other things. 

The case is being investigated by IRS-CI’s Nashville Field Office and the FBI’s Knoxville Field Office.  The case is being prosecuted by Trial Attorneys Danny Nguyen and Caitlin Cottingham of the Criminal Division’s Fraud Section. 

Edward Gibson, a former officer at a Mississippi juvenile detention facility, was sentenced today in federal court to 24 months incarceration followed by three years supervised release for beating a shackled juvenile, announced Acting Assistant Attorney General John Gore for the Justice Department’s Civil Rights Division, U.S. Attorney William C. Lamar of the Northern District of Mississippi, and Christopher Freeze, Special Agent in Charge of the FBI, Jackson Field Division.

Gibson, 28, was working as an officer at the Leflore County Juvenile Detention Center on June 16, 2016, when he assaulted a teenage victim who was in handcuffs and leg shackles. Gibson threw an electric fan at the victim, hitting him in the upper chest. Gibson then punched the victim multiple times before being pulled off by two other officers. The other officers had to step in two more times to prevent Gibson from further assaulting the victim, who was in restraints throughout the entire incident.

According to admissions made by Gibson during the plea hearing, the victim was never physically aggressive toward Gibson, and Gibson assaulted him only because the victim made statements that angered him. Gibson weighed approximately 315 pounds; the victim weighed approximately 130 pounds. 

Gibson’s supervisor, Dianne Williams, was sentenced on Aug. 23 to time served for helping cover up the assault. She had pleaded guilty to misprision of a felony, admitting that she knew the assault had occurred, did not inform a responsible authority, and helped cover it up by writing a false report.

“Detention officers have an important duty to protect juveniles in their care from abuse or bodily harm,” said Acting Assistant Attorney General John Gore. “This Department will continue to prosecute detention officers who engage in illegal acts of violence or attempts to obstruct justice, in order to better protect the civil rights of detained individuals.”

“We are morally, constitutionally, and legally obligated to treat people humanely and we will continue to enforce the laws protecting the civil rights of all individuals,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi.

“Deprivation of civil rights by a public official compromises the public’s trust,” said Special Agent in Charge Freeze. “The FBI will continue to rigorously investigate violations of civil rights.”

This case was investigated by the Jackson Division of the FBI, with the cooperation of the Leflore County Detention Center and the Leflore County Detention Center. It was prosecuted by Assistant United States Attorney Robert Mims of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.   

TULSA, Okla.— United States Attorney Trent Shores announced that Robin Tracy Zumwalt, 36, of Miami, Oklahoma, was sentenced today in United States District Court to three years of probation with eight months of home detention for her role in a methamphetamine drug distribution conspiracy.

At a plea hearing on June 7, 2018, Zumwalt admitted to discussing the distribution of more than 500 grams of methamphetamine facilitated by cell phone calls with an inmate, Slint Tate, who used contraband cell phones. When the calls were made, Zumwalt was living in Miami, Oklahoma, while Tate was serving a life sentence in Oklahoma state prison. On Tuesday, United States District Judge Claire V. Eagan sentenced Tate to 20 years in prison for orchestrating the drug conspiracy.

“This drug trafficking organization wreaked havoc in the lives of many in northeastern Oklahoma. Zumwalt and her co-conspirators earned the punishments received,” said U.S. Attorney Shores. “This prosecution was successful because of strong partnerships among federal, state, and local law enforcement officials. Working together, we achieved a result that makes our communities safer.”

This prosecution resulted from a joint investigation, known as “Operation Mama Tried,” conducted by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, State of Oklahoma District 13 Task Force, Oklahoma Bureau of Narcotics, Miami Police Department, and Grove Police Department. Assistant U.S. Attorneys Shannon Cozzoni and Catherine Depew prosecuted the case. 

A Latvian man was sentenced today in Minneapolis for participating in a lucrative “scareware” hacking scheme that targeted visitors to the Minneapolis Star Tribune’s website.  Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Erica H. MacDonald of the District of Minnesota and Special Agent in Charge Jill Sanborn of the FBI’s Minneapolis Field Office made the announcement.

Peteris Sahurovs aka “Piotrek” and “Sagade,” 29, was sentenced to 33 months in prison for conspiracy to commit wire fraud.  District Judge Ann D. Montgomery of the District of Minnesota imposed the sentence.  Sahurovs will be removed from the United States to Latvia following his prison sentence.  Sahurovs was arrested on a District of Minnesota indictment in Latvia in June 2011, but was released by a Latvian court and later fled.  In November 2016, Sahurovs was located in Poland and apprehended by Polish law enforcement and extradited to the United States in June 2017. Sahurovs was at one time the FBI’s fifth most wanted cybercriminal and a reward of up to $50,000 had been offered for information leading to his arrest and conviction.  He pleaded guilty before Judge Montgomery on Feb. 7.

According to admissions made in connection with his plea, from at least May 2009 to June 2011, Sahurovs operated a “bullet-proof” web hosting service in Latvia, through which he leased server space to customers seeking to carry out criminal schemes without being identified or taken offline.  The defendant admitted that he knew his customers were using his servers to perpetrate criminal schemes, including the transmission of malware, fake anti-virus software, spam, and botnets to unwitting victims, and he received notices from Internet governance entities (such as Spamhaus) that his servers were hosting malicious activity.  Nonetheless, Sahurovs admitted he took steps to protect the criminal schemes from being discovered or disrupted, and hosted them on his servers for financial gain.

Sahurovs admitted that from in or about February 2010 to in or about September 2010, he registered domain names, provided bullet-proof hosting services, and gave technical support to a “scareware” scheme targeting visitors to the Minneapolis Star Tribune’s website.  On Feb. 19, 2010, the Minneapolis Star Tribune began hosting an online advertisement, purporting to be for Best Western hotels, on its website, startribune.com.  Two days later, however, the advertisement began causing the computers of visitors to the website to be infected with malware.  This malware, also known as “scareware,” caused visitors to experience slow system performance, unwanted pop-ups and total system failure.  Website visitors also received a fake “Windows Security Alert” pop-up informing them that their computer had been infected with a virus and another pop-up that falsely represented that they needed to purchase the “Antivirus Soft” computer program to fix their security issues, at a price of $49.95.

Website visitors who clicked the “Antivirus Soft” window were presented with an online order form to purchase a purported security program called “Antivirus Soft.”  Users who purchased “Antivirus Soft” would receive a file download that “unfroze” their computers and stopped the pop-ups and security notifications.  However, the defendant admitted, the file was not a real anti-virus product and did not perform legitimate computer security functions, and merely caused malware that members of the conspiracy had previously installed to cease operating.  Meanwhile, the defendant admitted, victim users who did not choose to purchase “Antivirus Soft” became immediately inundated with so many pop-ups containing fraudulent “security alerts” that all information, data, and files on their computers were rendered inaccessible.  Members of the conspiracy defrauded victims out of substantial amounts of money as a result of the scheme.  The defendant admitted that as a result of his participation, he made between $150,000 and $250,000 U.S. dollars.

This case was investigated by the FBI’s Minneapolis Field Office.  The Criminal Division’s Office of International Affairs secured the extradition from Poland and the Polish National Police, the National Prosecutor’s Office, and the Ministry of Justice provided substantial assistance in this matter. Assistant U.S. Attorney Timothy C. Rank of the District of Minnesota and Trial Attorney Aaron R. Cooper of the Criminal Division’s Computer Crime and Intellectual Property Section prosecuted the case.

Former Tuskegee Police Department Lieutenant Alex Huntley, 54, was sentenced to 36 months in prison and three years’ supervised release for beating a handcuffed and compliant arrestee, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Louis V. Franklin, Sr., of the Middle District of Alabama, and FBI Special Agent in Charge James Jewell.

On June 8, a federal jury convicted Huntley of one count of violating an individual’s civil rights resulting in bodily injury. Huntley was sentenced today by Chief United States District Court Judge W. Keith Watkins of the Middle District of Alabama.

According to evidence presented at trial, on Dec. 24, 2014, Huntley arrested a man who scuffled with police near the Tuskegee town square and directed a fellow police officer to transport the arrestee back to the Tuskegee Police Department for booking. Once there, Huntley sprayed pepper spray in the arrestee’s face, even though the arrestee was handcuffed and following police instructions. Huntley then took the arrestee inside the police station, where Huntley knocked the still-handcuffed arrestee to the ground, stomped on him, and repeatedly kicked and punched him. In between blows, Huntley stood over the arrestee and yelled threats at him as the arrestee screamed in pain. A police officer recruit who witnessed the beating was so horrified that he surreptitiously audio-recorded the assault on his cell phone and subsequently provided the recording to federal authorities.

“This defendant abused his police powers by beating a restrained man in his custody,” said Acting Assistant Attorney General John Gore. “The Department will not tolerate such abuses, and will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”

“The vast majority of our police officers are dedicated to protecting and serving the public with strength, courage, and valor. Unfortunately, Mr. Huntley was not so dedicated,” said U.S. Attorney Franklin. “Police officers have an increasingly difficult job. This office will strive to support our law enforcement brothers and sisters, but will also prosecute those law enforcement officers who abandon their oath to protect and serve and chose to engage in criminal conduct that they are sworn to oppose.”

“Lady Justice wears a blindfold for a reason, and a violation of someone’s civil rights by a sworn law enforcement officer cannot be tolerated. The FBI will continue to pursue these types of cases with all available resources,” said FBI Special Agent in Charge James Jewell.

This case was investigated by the FBI. The Alabama State Bureau of Investigation also assisted in the investigation. Trial Attorney Samantha Trepel of the Justice Department’s Civil Rights Division and Assistant United States Attorney Denise O. Simpson of the United States Attorney’s Office for the Middle District of Alabama prosecuted the case.