District Not Recorded

A federal court has permanently barred Kathleen Sims-Crawford and KSC Business Support Services Inc. from preparing federal tax returns for others, the Justice Department announced today.  The civil injunction order, entered by Judge John J. Tharp Jr., of the U.S. District Court for the Northern District of Illinois, also prohibits Sims-Crawford from owning and managing a tax return preparation business. Sims-Crawford consented to the order.

According to the government complaint, Sims-Crawford, a Chicago resident who owns and operates KSC Business Support Services, Inc., prepared returns that reported false or inflated claims for the Earned Income Credit, fabricated or inflated business losses, and false rental income and/or expenses. The complaint alleged that these returns fraudulently reduced customers’ reported tax liabilities and helped taxpayers to obtain refunds to which they were not entitled. This conduct allegedly caused the United States hundreds of thousands of dollars in harm.

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.

Goose Pond Ag, Inc., a Florida corporation, and its manager of operations Farmland Management Services, Inc., an affiliate of the John Hancock Life Insurance Company, have agreed to pay a civil penalty, preserve streams and wetlands, and perform mitigation to resolve violations of the Clean Water Act (CWA) on property near the Sacramento River located in Tehama County, California, the Justice Department announced today.  The property in this case was acquired from Duarte Nursery Inc. and adjoins a Duarte site that was the subject of a settlement agreement announced by the Justice Department in August 2017 and approved by a federal judge on December 7, 2017. 

Goose Pond Ag and Farmland Management Services have agreed to pay $5.3 million in civil penalties and mitigation for substantial acres of disturbed streams and wetlands on the property that are connected to the Sacramento River.  In addition, the settlement requires the companies to permanently preserve hundreds of acres of streams, wetlands, and buffer areas.  The agreement allows the companies to continue using the site for cattle grazing, to apply for a CWA permit to conduct other activities in jurisdictional waters on the site, and to seek future determinations concerning jurisdictional waters at the site.

“Today’s agreement constitutes one of the largest settlements ever reached in a case involving the unpermitted filling of streams and wetlands.  Importantly, this result also finally draws to a close another chapter in long-running Clean Water Act litigation involving these properties near the Sacramento River in Tehama County,” said Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.  “Like the Duarte settlement last year, today’s agreement serves the public interest in enforcement of the Clean Water Act and deterrence of future violations.” 

“The Corps is satisfied that this enforcement action has been resolved against these companies,” said Michael Jewell, the Chief of the Regulatory Division for the U.S. Army Corps of Engineers’ Sacramento District.  “We encourage members of the public to contact the Corps prior to engaging in activities that are regulated under the Clean Water Act.  The Corps is always willing to talk to the public about the Regulatory Program and to provide information on jurisdiction, permit requirements, and any other aspects of the Program.”

This case stems from activities these companies conducted after they purchased property that had laid fallow and unfarmed for more than 20 years.  Goose Pond bought the 1,500-acre property in 2012 from Duarte Nursery, Inc. for $8.7 million, and shortly thereafter, Farmland Management Services began operating heavy machinery through streams and wetlands as part of the companies’ efforts to convert the property to a walnut orchard.  That machinery included “deep rippers” that drag long metal shanks through the ground to break up or pierce highly compacted, impermeable or slowly permeable surface layers, or other similar kinds of restrictive soil layers. The deep ripping in this case destroyed or significantly degraded the streams and wetlands at the site.

Even before Goose Pond’s purchase of the site, the companies received aerial photographs, advice from environmental consultants, and other information that alerted them to federally-protected streams and wetlands on the property.  Despite that information, the companies conducted extensive ripping and other activities in streams and wetlands without a CWA dredge-or-fill permit.  The settlement agreement reached today secures a significant penalty and mitigation for these violations, while providing fairness for farmers and other landowners who comply with the applicable laws.

Last year, in resolving a related case against John Duarte and Duarte Nursery, Inc., who had conducted unpermitted ripping activities immediately south of the property at issue here, the United States gave assurances that these cases are not (and will not be used as) a pretext for federal prosecution of farmers who engage in normal plowing on their farms.  No federal dredge-or-fill permit is required for plowing as defined in the regulations, and no such permit is required for discharges from "normal farming ... activities,"  such as plowing, if they are part of an established ongoing farming operation and not for the purpose of converting federally protected waters to new uses.  Those protections for farmers remain in the law today and will continue to be recognized.

The proposed consent decree, lodged in the U.S. District Court in Sacramento, is subject to a 30-day comment period and final court approval.  A copy of the proposed consent decree is available on the Justice Department Web site at www.usdoj.gov/enrd/Consent_Decrees.html.

A Romanian man pleaded guilty today in U.S. District Court in Springfield, Massachusetts to conspiracy to commit bank fraud, bank fraud, and aggravated identity theft in connection with a multi-state card skimming scheme. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Andrew E. Lelling of the District of Massachusetts, Special Agent in Charge Stephen Marks of the U.S. Secret Service (USSS) Boston Field Division, Special Agent in Charge Peter C. Fitzhugh of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) New England Division, Medford Police Chief Leo Sacco and East Meadow, Massacusetts Police Chief Jeffrey Dalessio made the announcement today. 

Bogdan Viorel Rusu, 38, of Romania and formerly residing in Queens, New York, pleaded guilty to an Information that charged him with one count each of conspiracy to commit bank, bank fraud, and aggravated identity theft.  U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Dec. 11.  Rusu was arrested on Nov. 14 2016, and initially charged by complaint in the District of New Jersey and has been in custody since. 

According to the agreed-upon statement of facts in Rusu’s plea agreement, between approximately Aug. 3, 2014 until his arrest on Nov. 14, 2016, Rusu engaged in a widespread bank fraud conspiracy that targeted various banks in Massachusetts, New York, and New Jersey.  As set forth below, Rusu and his co-conspirators captured payment card account information from customers as they accessed their accounts through automatic teller machines (ATMs) and then used that information to steal money from the customers’ bank accounts.

Rusu admitted that to capture the account information, he and his co-conspirators installed electronic devices (i.e., “skimming devices”) that surreptitiously recorded customers’ bank account information on the banks’ card-readers at the vestibule door, the ATM machine, or both.  In addition, Rusu and his co-conspirators installed other devices (generally either pinhole cameras or keypad overlays) in order to record the keystrokes of bank customers as they entered their personal identification numbers to access their bank accounts.  After enough customers accessed the ATM machine, Rusu and/or his co-conspirators removed the skimming devices.  They then transferred the illegally obtained information from the skimming devices and pinhole cameras to counterfeit payment cards.  Finally, they visited other ATM machines with the counterfeit cards to obtain cash from the skimmed bank accounts before the bank or the customers became aware of their illicit conduct.

Pursuant to his plea agreement, Rusu admitted that he and his co-conspirators caused losses of $364,419 in Massachusetts and $75,715 in New York (totaling $440,134 from 531 individual accounts), in addition to losses in New Jersey of $428,581.

The case was investigated by USSS, HSI, the Medford Police Department and the East Longmeadow Police Department.  The case is being prosecuted by Trial Attorney Marianne Shelvey of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Steven H. Breslow of the Springfield Branch Office.

The Justice Department today announced that Twin Creek Apartments, LLC (Twin Creek), owner of an apartment complex in Bellevue, Nebraska, adjacent to the Offutt Air Force Base, has agreed to a settlement to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by imposing lease termination charges against 65 servicemembers who had exercised their federal right to terminate their residential leases. The charges ranged from $72 to $1,498 per servicemember. The Department initiated an investigation into the practices of Twin Creek after receiving a referral from a U.S. Air Force Community Legal Services office.

The SCRA provides certain protections to servicemembers who must terminate their residential leases in order to comply with military orders for a permanent change of station, deployment, or retirement. Under the terms of the settlement, Twin Creek must pay a total of $76,516 in damages to the 65 identified servicemembers. Under the agreement, Twin Creek will also pay a civil penalty of $20,000 to the United States. The settlement also prohibits Twin Creek from engaging in future violations of the SCRA.

“The SCRA prohibits landlords from charging members of our armed forces an extra fee when they move due to military orders,” said Acting Assistant Attorney General John Gore. “We appreciate Twin Creek’s cooperation with the Department to reach a settlement. The Justice Department continues to ensure that we are doing all we can to protect the rights of servicemembers, veterans, and their families.”

“This is a just resolution for the former tenants and demonstrates our continuing commitment to protecting our servicemembers,” said Joe Kelly, U.S. Attorney for the District of Nebraska.

The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and United States Attorney’s Offices. Since 2011, the Department has obtained over $467 million in monetary relief for servicemembers through its enforcement of the SCRA. The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, prepaid 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. 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.

The former Director of the City of Detroit’s Office of Departmental Technology Services (DTS) was sentenced today to 20 months in prison, to be followed by two years of supervised release, for accepting more than $29,500 in bribe payments from two information technology companies providing services and personnel to the City of Detroit.

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

Charles L. Dodd, 48, of Canton, Michigan, previously pleaded guilty in the U.S. District Court for the Eastern District of Michigan to one count of federal program bribery.  U.S. District Judge Robert H. Cleland of the Eastern District of Michigan presided over the sentencing.

According to admissions made in connection with his plea, Dodd held numerous supervisory positions with the City of Detroit, culminating with his appointment as Director of DTS in 2014. In those positions, Dodd exercised supervisory authority over a staff of dozens of city employees and contractors, and held substantial influence over the administration of multi-million-dollar contracts between the City of Detroit and private information technology companies.

Dodd admitted that between 2009 and 2016, he accepted cash payments totaling more than $15,000 and a trip to North Carolina, among other things of value, from Parimal D. Mehta, 55, of Northville, Michigan, who was then the president and chief executive officer of an information technology company. During that same time period, Dodd also accepted more than $14,500 in cash payments from the chief executive officer and an employee of another information technology company. In return for these cash payments and other things of value, Dodd agreed to provide preferential treatment to the companies, he admitted.

This case was investigated by the FBI’s Detroit Division. Trial Attorneys Robert J. Heberle and James I. Pearce of the Criminal Division’s Public Integrity Section prosecuted the case.

A U.S.-based financial advisor pleaded guilty today for his role in an international money laundering conspiracy involving the proceeds of a scheme to pay bribes to officials of Ecuador’s state-owned and state-controlled energy company, Empresa Pública de Hidrocarburos del Ecuador (PetroEcuador).  

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida and Acting Special Agent in Charge Kelly Jackson of IRS Criminal Investigation’s (IRS-CI) Washington, D.C. office made the announcement.

Jose Larrea, 40, a U.S. citizen who lives in Miami, Florida, pleaded guilty in Miami before U.S. District Judge Marcia G. Cooke of the Southern District of Florida to one count of conspiracy to commit money laundering.  He is scheduled to be sentenced on Nov. 14, by Judge Cooke.

According to his admissions at the plea hearing, Larrea conspired with his co-defendant, Frank Roberto Chatburn Ripalda (Chatburn), 40, a dual U.S. and Ecuadorian citizen who also lives in Miami, and others to conceal the proceeds of an unlawful scheme, namely to pay bribes to PetroEcuador officials.  Larrea admitted to participating in the money laundering scheme by wiring more than $1 million from his own U.S.-based bank account to several U.S.-based bank accounts.  Those wire transfers were made to conceal a bribery scheme involving an oil services contractor who made payments to PetroEcuador officials in an effort to retain existing contracts and win new business with PetroEcuador.  Larrea further admitted that he created false and back-dated documents on behalf of the oil services contractor.  

Larrea is the fourth individual to plead guilty in this case.  In addition to Larrea, two former officials of PetroEcuador who received bribe payments and the contractor described above have previously pleaded guilty to date in connection with the government’s ongoing investigations into the PetroEcuador bribery and money laundering schemes. 

Chatburn was charged in the same indictment on April 19, with one count of conspiring to violate the Foreign Corrupt Practices Act (FCPA), one count of violating the FCPA, one count of conspiring to commit money laundering and two counts of money laundering.  Chatburn has pleaded not guilty, and his trial is currently set for Oct. 15. 

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

The FBI’s International Corruption Squad in Miami and IRS-CI are investigating the case.  Assistant Chief Lorinda Laryea and Trial Attorneys David Fuhr and Katherine Raut of the Criminal Division’s Fraud Section, Trial Attorneys Randall Warden and Mary Ann McCarthy of the Criminal Division’s Money Laundering and Asset Recovery Section, and Assistant U.S. Attorneys Karen Rochlin and Nalina Sombuntham of the Southern District of Florida are prosecuting the case. 

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

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.

A Detroit-area podiatrist was sentenced to 28 months in prison today for his participation in a $1 million scheme involving podiatry services that were billed to Medicare but were never rendered.   

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

Lawrence Young, D.P.M., 70, of Bloomfield Hills, Michigan, was sentenced by U.S. District Judge Judith E. Levy of the Eastern District of Michigan, who also ordered the defendant to serve one year of supervised release following his prison sentence and ordered him to pay $337,907.31 in restitution to HHS and to forfeit the same amount.  Young pleaded guilty to one count of health care fraud in January 2018.  

As part of his guilty plea, Young admitted that from approximately January 2010 through April 2017, he engaged in a scheme to defraud the Medicare program by causing the submission of false and fraudulent claims to Medicare for the application of an “Unna Boot,” which is a type of medicated dressing typically applied after surgery to control swelling of the leg or foot.  Young admitted regularly submitting these claims for reimbursement even though he knew that his patients routinely received nothing more than a non-medicated dressing.  The scheme involved the submission of more $1 million in fraudulent claims to Medicare, he admitted.      

This case was investigated by the FBI and HHS-OIG.  Trial Attorneys Tom Tynan and Steve Scott of the Criminal Division’s Fraud Section are prosecuting the case. 

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, 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. 

A Seattle, Washington man pleaded guilty in U.S. District Court in the Western District of Washington for conducting cyberstalking and threat campaigns against multiple Washington residents. The victims’ names are being withheld to protect their privacy. 

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and U.S. Attorney Annette L. Hayes of the Western District of Washington made the announcement.  

“Joel Kurzynski’s guilty plea demonstrates that conduct occurring online can cause victims serious harm and anguish offline,” said Assistant Attorney General Benczkowski. “While this prosecution cannot undo the damage this defendant inflicted, it sends a clear message that the Criminal Division and our law enforcement partners are firmly committed to protecting the public and aggressively pursuing malicious actors who hide behind the anonymity of the Internet.”

“This defendant thought he could use a computer keyboard to stalk and harass others with remarkable cruelty -- all while hiding in the shadows.  He could not have been more wrong,” said U.S. Attorney Hayes.  “Conduct that we all know is wrong in the real world, is just as wrong in cyberspace and will be punished accordingly.”

Joel Kurzynski, 38, of Seattle, Washington, a former Information Technology professional, was charged in a felony information with two counts of cyberstalking.  Kurzynski had his initial appearance and pleaded guilty today before Chief U.S. Magistrate Judge Brian A. Tsuchida of the Western District of Washington.  The Court scheduled the sentencing hearing for Dec. 7 before Senior U.S. District Judge Robert S. Lasnik. 

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

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

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

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

Attorney General Jeff Sessions today issued the following statement on Chinese Narcotics Scheduling:

“The Trump Administration is fighting back against the opioid crisis, and the Department of Justice has taken a number of aggressive and innovative steps to combat many of the contributing factors to the havoc inflicted in our neighborhoods and communities across the country.

“However, full cooperation on an international level is required to eradicate the scourge of fentanyl and opioids from the world. In recent weeks, as the Justice Department announced multiple accomplishments in the fight against opioids, I expressed hope that China’s Ministry of Public Security would schedule fentanyl-based substances as a class.

“The Ministry of Public Security announced—effective September 1, 2018—the scheduling of 32 substances, including two opioids, as narcotics. This is an important step in the global fight against opioids and, by providing Chinese law enforcement additional tools, it affords our federal law enforcement authorities a greater opportunity to continue working on important joint investigations. I thank the Government of China for this action and I look forward to further cooperation.”

A federal jury found a South Florida pharmacist guilty today of health care fraud for his role in a $5 million compounding pharmacy scheme.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the Department of Health and Human Services Office of Inspector General (HHS-OIG)’s Miami Regional Office, Special Agent in Charge John F. Khin of the Department of Defense Office of Inspector General – Defense Criminal Investigative Service (DCIS)’s Southeast Field Office and Florida Attorney General Pam Bondi made the announcement.

After a four-day trial, Stephen Chalker, 42, of Wellington, Florida, was convicted of one count of conspiracy to commit health care fraud and two substantive counts of health care fraud. Sentencing has been scheduled for Nov. 15 before U.S. District Judge Donald M. Middlebrooks of the Southern District of Florida, who presided over the trial.  

According to evidence presented at trial, from approximately September 2014 to August 2016, Chalker engaged in a scheme to defraud Medicare, TRICARE and Medicaid by submitting false and fraudulent claims for compounded drugs and other prescription medications that were not medically necessary and/or never provided.  The evidence established that in his role as the pharmacist-in-charge at Pop’s Pharmacy, a now-defunct pharmacy located in Deerfield Beach, Florida, Chalker submitted or caused the submission of claims in the amount of several thousands of dollars each for a single tube of pain and scar creams that patients did not want, did not need, and in some cases did not receive.  Chalker and his co-conspirators ran a nationwide telemarketing and telemedicine scheme in which there was no real patient-prescriber relationship or actual patient care.  As a result of claims submitted in connection with the scheme, Medicare, TRICARE and Medicaid made payments totaling nearly $5 million, the evidence showed.

Two other defendants have been charged in this case. Christopher Liva, 40, of Boca Raton, Florida, and Elaina Liva, 66, of Pompano Beach, Florida, both of whom pleaded guilty and are awaiting sentencing.

This case was investigated by the FBI, HHS-OIG, DCIS and the State of Florida Medicaid Fraud Control Unit.  Trial Attorneys Jim Hayes and Leslie Wright of the Criminal Division’s Fraud Section are prosecuting the case. 

The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force.  Since its inception in March 2007, the Medicare Fraud Strike Force, 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 HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

A former fugitive and social security disability lawyer was sentenced to 15 years in prison today for his role in retaliating against an informant and fleeing from the United States.  The sentence is to run consecutive to the 12 years in prison previously imposed for his role in the underlying scheme to defraud the Social Security Administration (SSA) of more than $550 million.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge Michael McGill of the Social Security Administration Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division; Special Agent in Charge Ryan L. Korner of the IRS Criminal Investigation (IRS-CI) Cincinnati Ohio Field Office and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Atlanta Regional Office made the announcement.

Eric Christopher Conn, 58, of Pikeville, Kentucky, was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky, who also ordered Conn to pay $72,574,609 in restitution.  On June 4, Conn was convicted of one count of conspiracy to defraud the United States, one count of conspiracy to escape, and one count of conspiracy to retaliate against an informant.  Judge Reeves further ordered that the 15-year term of imprisonment imposed run consecutive to the 12-year term of imprisonment the Court imposed on July 12, 2017, for convictions of paying illegal gratuities to a Social Security Administrative Law Judge and theft of government money.  In total, for his role in the largest fraud scheme in the history of the Social Security program, Conn was sentenced to serve 27 years in prison.

“After orchestrating a massive $550 million social security fraud, Eric Conn tried to escape justice by fleeing to Honduras,” said Assistant Attorney General Benczkowski. “But thanks to the tremendous work of U.S. law enforcement, not only was Conn’s fraud discovered and prosecuted, he was brought back to the United States to answer for his crimes.  This case should serve as a strong warning to those who think they can steal from our taxpayer funded programs and escape liability: our law enforcement partners will find you and you will be brought to justice.” 

“Mr. Conn directed a scheme that defrauded millions of dollars from Social Security and affected many people in Kentucky and West Virginia,” said SSA-OIG Special Agent in Charge McGill. “Despite his best efforts to escape justice for his actions, Mr. Conn has finally been held accountable with today’s significant sentencing. The SSA-OIG thanks all of our law enforcement partners for their assistance during this investigation, and we remain committed to pursuing Social Security fraud and improving disability program integrity.”

“Conn’s sentencing brings closure to the promise the FBI made that we would not rest until Conn was held accountable for the lives he devastated and the trust he betrayed,” said FBI Special Agent in Charge Hess. 

“Theft from American taxpayers in any capacity is a serious crime,” said IRS-CI Special Agent in Charge Ryan L. Korner.  “Eric Conn’s actions were particularly egregious, as he victimized those who are most vulnerable and then made a cowardly attempt to escape punishment.  Thanks to the coordinated efforts of our law enforcement partners and their commitment to seeking justice for all Americans, Conn was made to face the consequences of his actions.”

“When individuals are approved for certain Social Security and SSI benefits, they become entitled to Medicare or Medicaid,” said HHS-OIG Special Agent in Charge Jackson.  “As a result, a large portion of Conn’s fraudulent scheme drained federal health care plans and cheated needy patients out of the limited dollars available for these vital taxpayer-funded programs.”

According to admissions made as part of Conn’s June 2018 plea, from October 2004 to December 2017, Conn participated in a scheme with former SSA administrative law judge David Black Daugherty, multiple doctors, including clinical psychologist Alfred Bradley Adkins, and others to submit thousands of falsified medical documents to the SSA to fraudulently obtain disability benefits totaling more than $550 million for thousands of individuals.  According to the admissions, upon a former SSA employee discovering and providing information about the scheme to federal agents, Conn and former SSA administrative law judge Charlie Paul Andrus conspired and acted to have the former SSA employee terminated in an effort to discredit the employee.  Finally, Conn admitted that after pleading guilty in March 2017, and prior to being sentenced on June 2, 2017, he fled the country with the help of Curtis Lee Wyatt by severing the electronic monitoring device from his ankle and fleeing across the Mexican border.   

Conn was originally charged in April 2016, along with Daugherty and Adkins, in an 18-count indictment with conspiracy to commit mail and wire fraud and other related offenses in connection with the disability fraud scheme.  Conn subsequently pleaded guilty on March 24, 2017, to a two-count information charging him with theft of government money and paying illegal gratuities, and, after fleeing, he was sentenced in absentia on July 14, 2017 to 12 years in prison on those charges.  After his flight from the United States, Conn was charged, along with Wyatt, in September 2017, in a seven-count indictment with conspiracy to escape, escape and other related offenses.  On Dec. 5, 2017, Conn was returned to the United States from Honduras after being apprehended by Honduran authorities. 

Andrus pleaded guilty in June 2016 to a one-count information charging him with conspiracy to retaliate against an informant, and was sentenced Aug. 7, 2017 to six months in prison.  Daugherty pleaded guilty in May 2017 to a two-count information charging him with receiving illegal gratuities, and was sentenced on Aug. 25, 2017, to four years in prison.  Adkins was found guilty following a six-day trial in June 2017 of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements, and was sentenced on Sept. 22, 2017, to 25 years in prison.  Wyatt pleaded guilty in March 2018, and, on June 29, 2018 was sentenced to seven months in prison. 

The case was investigated by the SSA-OIG, FBI, IRS-CI and HHS-OIG.  Trial Attorneys Dustin M. Davis of the Criminal Division’s Fraud Section and Ann Marie Blaylock and Rebecca Caruso of the Criminal Division’s Money Laundering and Asset Recovery Section prosecuted the case, with previous co-counsel including Assistant U.S. Attorneys Elizabeth G. Wright of the District of Maryland and Trey Alford of the Western District of Missouri as well as Investigative Counsel Kristen M. Warden of the Justice Department’s Office of the Inspector General.

Each year, as the anniversary of the Sept. 11, 2001, terrorist attacks approaches, the country is reminded of the unprecedented losses suffered.  As we approach the anniversary and honor the fallen, the Justice Department also honors the survivors, particularly those who are experiencing 9-11 health related illnesses.  The September 11th Victim Compensation Fund (VCF) is increasing its efforts to identify those who may be eligible for compensation because they suffer physical health effects as a result of their exposure but are not aware of the VCF, and seeks to award compensation to those who continue to suffer. As part of this outreach effort, FBI Director Christopher Wray and VCF Special Master Rupa Bhattacharyya hosted a public forum for approximately 150 federal law enforcement officers today to provide vital information about federal programs that are available to those who responded to the attacks in New York City, at the Pentagon, and in Shanksville, Pennsylvania, on Sept. 11, 2001.

“Like so many first responders, our agents were fearless in their response on September 11 and in the days and months that followed, exposing themselves to what we now know were toxic conditions,” said FBI Director Wray.  “We are here today to spread the word about the VCF and the World Trade Center Health Program – two long-standing programs that provide vital assistance to those who have become sick as a result of their 9/11 exposure.”

“We are extremely grateful to have Director Wray, Assistant Attorney General Jody Hunt of the Justice Department’s Civil Division and U.S. Attorney Geoffrey S. Berman of the Southern District of New York with us here today to raise awareness of the VCF as a resource for this brave community,” said VCF Special Master Bhattacharyya.  “In addition to providing critical relief from financial hardship that results from 9/11 injuries and deaths, the VCF compensates victims – at least to some degree - for their pain and suffering, and can provide some peace of mind, though sadly, for many who fear leaving their families in need.”

After opening comments by the National September 11th Memorial and Museum President Alice Greenwald, Director Wray spoke with the group about the first responders who served their country in its greatest hour of need.  “You fought for justice,” he said.  “You fought to bring peace to the families who lost their loved ones.  You fought to make sure that what happened that day would never -- ever -- happen again.  So let us help you now.  Let us fight for you.  We’re in this together, and we’ll tackle it together, just as we have in the past 17 years.”

Director Wray was followed by retired FBI Supervisory Special Agent Lu Lieber, who talked about becoming sick years after her 9/11 exposure, and failing to connect the two until being invited to an FBI/VCF information sharing event last October.  “Prior to Oct. 11, 2017, I was unaware of the World Trade Center Health Program and unaware that I was eligible to file a claim with the VCF,” said Lieber.  “I did not connect my symptoms to 911 exposure.  I have since registered with the WTC Health Program, and I am certified with six different conditions related to 911 exposure.  Even if you don't feel sick, it is crucial to register with the World Trade Center Health Program and the VCF if you are certified with WTC related conditions.  These programs are vital, they are available to help you and they may save your life.”

Lt. (Fmr.) Michael O’Connell, retired FDNY but a rookie when he was a first responder, spoke of his 9/11 experience and the illnesses that followed, and he, too, encouraged audience members to sign up for the World Trade Center Health Program, and to register with the VCF.  “Those two programs saved my life, and saved my family,” said O’Connell.  “They are there for you – go find them.”  

The public forum, which included representatives from the World Trade Center Health Program, Department of Justice’s Bureau of Justice Assistance, the FealGood Foundation, 9/11 Health Watch, the FBI Agents Association, and the Federal Law Enforcement Officers Association, featured presentations on both the VCF and the World Trade Center Health Program, followed by a Q&A session with Special Master Bhattacharyya and Lieutenant Commander Brittany Rizek, Medical Benefits Team Lead of the World Trade Center Health Program.  The audience was largely federal law enforcement officers who responded on 9/11 to the attacks in New York City, at the Pentagon, and at the Shanksville site.

“It’s critically important that we continue to reach out to individuals who may qualify for medical benefits through the World Trade Center Health Program,” said Lieutenant Commander Brittany Rizek. “We are dedicated to helping all eligible members affected by the September 11th attacks receive expert care.”

The VCF is also participating in the Voices of 9/11 17th Annual Day of Remembrance Information Forum on Monday, Sept. 10, to increase awareness and answer questions regarding the VCF. 

As of Aug. 31, the VCF has found 20,874 claimants eligible for compensation. The VCF has made initial award determinations on 19,204 of those claims, and has issued revised awards on 5,011 claims due to an amendment or appeal. The total amount awarded to date is more than $4.28 billion to VCF claimants.  In all, the VCF has compensated claims from more than 15,300 responders to the attacks in New York City, at the Pentagon, and at the Shanksville site, as well as almost 3,500 others who lived, worked, or traveled through areas of lower Manhattan and were exposed to debris and toxins generated by the attacks and their aftermath.

For additional information about the VCF and how to file a claim, please visit the VCF’s website at www.vcf.gov.  If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555.  

U.S. District Judge Federico A. Moreno sentenced a Miami area man to four years in prison, three years’ supervised release, and $1,800 in restitution for obstructing the free exercise of religious beliefs by threatening, in a phone message, to detonate a bomb at a mosque in Pembroke Pines, Florida, Acting Assistant Attorney General of the Civil Rights Division John Gore, U.S. Attorney Benjamin G. Greenberg, and Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office announced.

Dustin Allen Hughes, 26, pleaded guilty in June 2018 in the Southern District of Florida to one count of obstructing the free exercise of religious beliefs for making the threatening call.  During the plea hearing, Hughes admitted that on May 5, he called an emergency contact for the Jamaat Ul Muttaqeen Mosque of Pembroke Pines, Florida, and left a hate-filled and profanity-laden voicemail message denigrating Islam and threatening to blow up the mosque.  Hughes further admitted that in his message he specifically stated that he had a detonator, that he was “going to blow your . . . temple up,” and that “you guys are all going to be up in flames after I’m done with you.”

Following the threatening voice message, law enforcement was contacted and immediately responded, but no bomb was uncovered after an extensive exterior and interior sweep of the mosque.

“The sentence handed down today reflects the seriousness of threats to places of worship, which can instill fear in whole communities,” said Acting Assistant Attorney General John Gore. “The Justice Department will continue to vigorously prosecute hate crimes so that all people, no matter how they worship, can live their lives freely and without fear.”

“This prosecution sends a clear message that committing hate crimes has serious consequences,” said U.S. Attorney Benjamin Greenberg. “Along with our law enforcement partners, the U.S. Attorney’s Office will continue to prosecute those individuals who threaten members of our South Florida community because of their religious beliefs.”

“Freedom of religion is a fundamental right for every American,” said Robert F. Lasky, Special Agent in Charge of the FBI Miami Field Office. “The FBI and its partners will work tirelessly to ensure anyone who threatens those rights is held accountable.”

This case was investigated by the FBI’s Miami Area Corruption Task Force and the FBI’s Joint Terrorism Task Force (JTTF). The Pembroke Pines Police Department, the Miami-Dade Police Department, and the City of Miami Police Department also provided assistance with this matter.  The case was prosecuted by Assistant U.S. Attorney Michael Davis of the Southern District of Florida and Trial Attorney Samantha Trepel of the Civil Rights Division.

The Department of Justice today filed a Statement of Interest on the side of the plaintiff in Students For Fair Admissions, Inc. v. President And Fellows Of Harvard College in the U.S. District Court for the District of Massachusetts. The plaintiff, Students For Fair Admissions, an organization of students and parents, alleges that Harvard College intentionally discriminates against Asian-American applicants when making admissions decisions. The plaintiff seeks relief from Harvard’s alleged discrimination under Title VI of the Civil Rights Act of 1964, a cornerstone civil rights law that prohibits discrimination on the basis of race, color, or national origin in programs and activities that receive federal financial assistance. The Department opened a Title VI investigation into Harvard’s admissions process in 2017 based upon a complaint filed by more than 60 Asian-American organizations.

The United States’ Statement of Interest filed today argues that Harvard has failed to show that it does not unlawfully discriminate against Asian Americans.

As a condition1 of receiving millions of dollars in taxpayer funding every year, Harvard specifically agrees to not discriminate on the basis of race in its admissions decisions. However, the students and parents who brought this suit have presented compelling evidence that Harvard’s use of race unlawfully discriminates against Asian Americans. In today’s filing, the United States urges the court to grant the plaintiffs the opportunity to prove these claims at trial.

In filing the Statement of Interest, Attorney General Jeff Sessions provided the following statement:

“No American should be denied admission to school because of their race. As a recipient of taxpayer dollars, Harvard has a responsibility to conduct its admissions policy without racial discrimination by using meaningful admissions criteria that meet lawful requirements. The Department of Justice has the responsibility to protect the civil rights of the American people. This case is significant because the admissions policies at our colleges and universities are important and must be conducted lawfully.”

Harvard admits that it uses race to decide whether to admit certain applicants to the college. Under Supreme Court precedent, Harvard must demonstrate that its use of race does not result in illegal discrimination. Harvard has failed to do so, and the Department filed a Statement of Interest that argues the plaintiffs should be allowed to proceed to a trial.

While Harvard admits to using race in its admissions process, it has failed to provide any meaningful criteria to explain how it weighs race against other factors in a candidate’s application (e.g., test scores and extracurricular activities), and how it limits its use of race to ensure that no illegal discrimination occurs. Supreme Court precedent requires Harvard to provide such an explanation, which it has failed to do in this case.

Further, the evidence shows that Harvard uses a “personal rating” that may be biased against Asian Americans. Based solely on a review of the applicant’s file, Harvard scores its applicants based on “subjective” factors such as “likability” and being a “good person” with “human qualities.” Harvard admits that, on average, it scores Asian-American applicants lower on this “personal rating” than applicants of other races.

Substantial evidence also demonstrates that Harvard admissions officers and committees consistently monitor and manipulate the racial makeup of incoming classes, which has resulted in stable racial demographics in Harvard’s admitted classes from year to year. The Supreme Court has called such attempts to “racially balance” the makeup of a student body “patently unconstitutional.”

Finally, the Justice Department has determined that Harvard—while using race to make admissions decisions for more than 45 years—has never seriously considered alternative, race-neutral ways to compile a diverse student body, which it is required to do under existing law.

More information about the Civil Rights Division and the civil rights laws it enforces is available at www.usdoj.gov/crt.

1See 42 U.S.C. § 2000d; Gratz v. Bollinger, 539 U.S. 244, 275-76 & n.23 (2003) (“[D]iscrimination that violates the Equal Protection Clause of the Fourteenth Amendment committed by an institution that accepts federal funds also constitutes a violation of Title VI.”). 

Today, the Office of Justice Programs’ Bureau of Justice Assistance (BJA) released the Fentanyl Safety Recommendations for First Responders’ companion training video Fentanyl: The Real Deal. The video was produced by U.S. Customs and Border Protection to help first responders protect themselves when the presence of fentanyl is suspected or encountered on the job. The video is available here. 

Fentanyl: The Real Deal provides recommendations to law enforcement on how to navigate safely around the increased prevalence of fentanyl in the illicit drug market. The video provides first responders with unified, scientific, and evidence-based recommendations for protective actions first responders should take when the presence of fentanyl is suspected, when exposure occurs, and when individuals exhibit signs of opioid intoxication.

"Exposure to synthetic opioids like fentanyl is one of the most dangerous threats facing law enforcement officers," Deputy Attorney General Rod J. Rosenstein said. "The Department of Justice worked with the White House, other Cabinet agencies, and many law enforcement organizations to produce a new safety video and training recommendations for first responders. I urge law enforcement officers to review the advice and take precautions to stay safe."

“We have a duty to protect those who keep our communities safe,” said DEA Acting Administrator Uttam Dhillon. “As we continue to fight this opioid epidemic, it is critical that we provide every tool necessary to educate the public, law enforcement, and first responders about the dangers of fentanyl. This video is a positive step in that direction.”

The new training video released today, as well as the Fentanyl Safety Recommendations for First Responders released in November 2017, is the result of a Federal Interagency Working Group coordinated by the White House National Security Council. Agencies represented on the working group include the Department of Justice, the Department of Health and Human Services, the Department of Transportation, and the Department of Homeland Security; the Office of the Director of National Intelligence; the Office of National Drug Control Policy; the National Institute for Occupational Safety and Health; and the U.S. Postal Inspection Service, in collaboration with 24 stakeholder organizations.

The collaboration of agencies and organizations on the safety recommendations guide and training video reflect concerns about increased prevalence of fentanyl in the illicit drug market. As a result, law enforcement and fire/EMS personnel must balance safety with mobility and efficiency. The training video provides tools and tips for first responders to take appropriate protective actions if they encounter fentanyl in the field.  

For additional information about today’s BJA rollout event visit www.bja.gov 

The Department of Justice today announced that a federal grand jury sitting in the U.S. District Court for the Eastern District of Michigan returned a six-count indictment charging former Hamtramck, Michigan, police officer Ryan McInerney, 42, with civil rights violations, obstruction of justice, and firearms offenses in connection with two civilian arrests on July 22, 2014.  McInerney is charged with violating two civilians’ civil rights when he assaulted them with a pistol without justification during separate arrests on the same night. The indictment further charges McInerney with two counts of using a firearm during and in relation to the civil rights offenses, as well as with writing false reports to cover up his excessive uses of force. As a result of the assaults, one of the civilians suffered broken facial bones and lacerations requiring stitches, and the other civilian suffered broken teeth, among other injuries.

The civil rights charges carry a statutory maximum sentence of 10 years in prison for each offense. The obstruction charges carry a statutory maximum sentence of 20 years in prison for each offense. The firearms charges carry a mandatory minimum, consecutive sentence of five to seven years in prison for each offense.

This case is being investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Frances Lee Carlson of the Eastern District of Michigan and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division.

An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless and until proven guilty.

The Justice Department today announced that it reached a settlement agreement with Clifford Chance US LLP, a large, international law firm with its U.S. headquarters located in New York. This agreement resolves the Department’s investigation into whether the law firm engaged in hiring discrimination by refusing to consider work-authorized non-U.S. citizens and dual citizens to staff a client project, in violation of the Immigration and Nationality Act (INA). 

The Department determined that there was reasonable cause to believe that from March 30, 2017, until at least July 7, 2017, Clifford Chance unlawfully restricted its staffing for 36 positions on a document review project based on citizenship status. The Department’s investigation determined that Clifford Chance’s unlawful practice of excluding otherwise qualified non-U.S. citizens and dual U.S. citizens from the document reviewer positions was based on the law firm’s misunderstanding of the requirements of the International Traffic in Arms Regulations (ITAR). The Department found that the law firm improperly terminated or removed three individuals from their positions based on their citizenship status.

The ITAR regulates specific exports of defense articles and services, and – absent State Department authorization – limits access to certain sensitive information to U.S. citizens, U.S. nationals, lawful permanent residents, asylees, and refugees.  The ITAR thus does not authorize or require employers to hire only U.S. citizens. Employers that limit their hiring to U.S. citizens without a proper legal basis may violate the INA’s anti-discrimination provision, which prohibits hiring discrimination based on citizenship and national origin.

“Employers subject to the ITAR must be careful not to engage in unlawful discrimination against U.S. workers,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department of Justice is committed to ensuring that employers do not unlawfully exclude U.S. citizens and work authorized non-U.S. citizens from employment opportunities.”

Under the settlement, Clifford Chance will offer to pay lost wages to three individuals who were removed from the project, pay a $132,000 civil penalty to the United States, train  relevant employees about the requirements of the INA’s discrimination provision, inform clients who request citizenship status restrictions for staff of the INA’s requirements, and be subject to departmental monitoring and reporting requirements for two years. 

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

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

The Justice Department’s Office on Violence Against Women (OVW) today announced 54 grants totaling $32 million through its Improving the Criminal Justice Response to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program.

These grants will help fund state, local, and tribal governments and courts’ efforts to ensure that the crimes of sexual assault, domestic violence, dating violence and stalking are treated as serious violations of criminal law through the coordinated involvement of the entire criminal justice system and community-based victim service providers. The recipients of these grants will work collaboratively with justice system and victim service provider partners to identify problems and share ideas that will result in enhanced responses that support victim safety and offender accountability.

Recipients of awards under OVW’s Improving the Criminal Justice Response to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program are:

• One Place Metro Alabama Family Justice Center (Alabama);
• Alaska Network on Domestic Violence and Sexual Assault (Alaska);
• City of Tucson (Arizona);
• City and County of San Francisco (California);
• City of San Jose (California);
• County of Contra Costa (California);
• County of Riverside (California);
• WEAVE Incorporated (California);
• Young Women’s Christian Association of Silicon Valley (California);
• Rose Andom Center (Colorado);
• City of Gainesville (Florida);
• City of Homestead (Florida);
• Hillsborough County Board of County Commissioners (Florida);
• Pinellas County Board of County Commissioners (Florida);
• City of Rockford (Illinois);
• Freedom House (Illinois);
• Iowa State Judicial Branch (Iowa);
• City of Richmond (Kentucky);
• Mountain Comprehensive Care Center (Kentucky);
• New Orleans Family Justice Center (Louisiana);
• Wellspring Alliance for Families, Incorporated (Louisiana);
• Cumberland County (Maine);
• Maine Coalition to End Domestic Violence (Maine);
• City of Lowell (Massachusetts);
• Council on Domestic Violence and Sexual Assault (Michigan);
• Judiciary Courts of the State of Minnesota (Minnesota);
• City of Lee’s Summit (Missouri);
• Lake County (Montana);
• Montana Department of Justice (Montana);
• Nevada Office of the Attorney General (Nevada);
• Strafford County (New Hampshire);
• Jersey Battered Women’s Service, Incorporated (New Jersey);
• YWCA of Eastern Union County (New Jersey);
• Bronx County Borough President (New York);
• City of Auburn (New York);
• Erie County (New York);
• Opportunities for Otsego, Incorporated (New York);
• Queens County Office of the Borough President (New York);
• Suffolk County (New York);
• Town of Pound Ridge (New York);
• Buncombe County (North Carolina);
• Family Violence Prevention Center, Incorporated (North Carolina);
• Oklahoma District Attorneys Council (Oklahoma);
• Deschutes County (Oregon);
• County of Schuylkill (Pennsylvania);
• Metropolitan Government of Nashville-Davidson County (Tennessee);
• Citizens Against Physical and Sexual Abuse, Incorporated (Utah);
• Circle, Incorporated (Vermont);
• HOPE Works, Incorporated (Vermont);
• Empowerhouse (Virginia);
• James City County (Virginia);
• Family Support Center of South Sound (Washington);
• Washington State Department of Commerce (Washington); and
• West Virginia Foundation for Rape Information and Services (West Virginia).

“Improving criminal justice response to domestic violence, sexual assault, dating violence and stalking is the backbone of VAWA and our OVW programs,” said OVW Acting Director Katharine Sullivan.  “Funding programs that utilize a coordinated community response to providing victim services and holding offenders accountable is effective in combatting the VAWA four crimes.  We are pleased to announce our 2018 awards today and look forward to working with law enforcement, prosecutors, the judiciary, treatment providers and advocates around this country in their quest to bettering their communities.”  

The Justice Department’s Office on Violence Against Women (OVW) today announced 57 grants totaling over $18 million to help campuses respond to the crimes of sexual assault, domestic violence, dating violence and stalking. 

OVW’s Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence, and Stalking on Campus Program support institutions of higher education in implementing comprehensive, coordinated responses to violent crimes on campus through partnerships with victim services providers and justice agencies. The recipients of these grants will work collaboratively with local law enforcement and prosecutors, campus athletic programs, Greek life organizations, and off-campus victim services, as each plays a critical role in making campuses safer and more just. The awards will make possible a range of services, including specialized training for campus law enforcement, healthcare providers, university personnel and others who are often first responders. 

Recipients of awards under OVW’s Campus Grant Program are:

• South Arkansas Community College (Arkansas);
• California State University Bakersfield (California);
• Humboldt State University Sponsored Programs Foundation (California);
• Regents of the University of California, Santa Barbara (California);
• Shasta-Tehama-Trinity Joint Community College District (California);
• Southwestern Community College District (California);
• Albertus Magnus College (Connecticut);
• Asnuntuck Community College (Connecticut);
• Fairfield University (Connecticut);
• District Board of Trustees of Pensacola State College (Florida);
• Florida State University (Florida);
• Miami Dade College (Florida);
• Spelman College (Georgia);
• Dominican University (Illinois);
• Northeastern Illinois University (Illinois);
• Northern Illinois University (Illinois);
• Trustees of Indiana University (Indiana);
• Indian Hills Community College (Iowa);
• Northern Kentucky University (Kentucky);
• St. Joseph’s College (Maine);
• University of Maine at Augusta (Maine);
• Anne Arundel Community College (Maryland);
• Harford Community College (Maryland);
• University of Maryland Eastern Shore (Maryland);
• Bentley University (Massachusetts);
• Kalamazoo College (Michigan);
• Mississippi Valley State University (Mississippi);
• Avila University (Missouri);
• Community College District of Jefferson County (Missouri);
• Salish Kootenai College (Montana);
• College of Saint Mary (Nebraska);
• Board of Regents, University of Nevada, Reno (Nevada);
• Caldwell University, Incorporated (New Jersey);
• Centenary University (New Jersey);
• Passaic County Community College (New Jersey);
• William Paterson University (New Jersey);
• University of New Mexico (New Mexico);
• Medaille College (New York);
• Molloy College (New York);
• Paul Smith’s College of Arts & Sciences (New York);
• St. Bonaventure University (New York);
• St. John’s University, New York (New York);
• Trocaire College (New York);
• Lourdes University (Ohio);
• Miami University (Ohio);
• Tiffin University (Ohio);
• University of Akron (Ohio);
• Lewis & Clark College (Oregon);
• Arcadia University (Pennsylvania);
• Juniata College (Pennsylvania);
• Wilson College (Pennsylvania);
• Augustana College (South Dakota);
• Dakota Wesleyan University (South Dakota);
• University of Texas at El Paso (Texas);
• University of Lynchburg (Virginia);
• Bellevue College (Washington); and
• Edmonds Community College (Washington).

“It is vital to keep our students safe on campuses by supporting programs that take a coordinated community approach to education and prevention of sexual assault on our college and university campuses,” said OVW Acting Director Katharine Sullivan.  “OVW is proud of our innovative approach to the development of the campus grant programs.  We welcome our new grantees and congratulations to our continuing grantees.”  

The Department of Justice established the National Center for Disaster Fraud (NCDF) in the wake of Hurricane Katrina, when billions of dollars in federal disaster relief poured into the Gulf Coast region, which opened opportunities for criminals to exploit people during vulnerable times.  The NCDF, a national coordinating agency within the Department’s Criminal Division, operates a call center at Louisiana State University in Baton Rouge and serves as a centralized clearinghouse for disaster fraud complaints and information relating to both natural and man-made disasters. The NCDF seeks to improve and further the detection, prevention, investigation, and prosecution of fraud related to natural and man-made disasters, and to advocate for victims of such fraud.  More than 20 federal, state, and local agencies participate in the NCDF, which allows them to forward on complaints to the appropriate agency for investigation.

 “Committing fraud against natural disaster victims is an inexcusable crime,” said Deputy Attorney General Rod Rosenstein.  “We are now in hurricane season, and it is important for people to be on the lookout for fraudsters who seek to profit from natural disasters through identity theft schemes and solicitations for fake charities.  The Department of Justice is committed to detecting this type of fraud, and we will aggressively prosecute the offenders. Through our National Center for Disaster Fraud, and in conjunction with our law enforcement partners, we are working to keep Americans from becoming victims of these schemes.”

The recent Carr Fire in California, though largely contained, has caused severe damage; the Pacific Hurricane Season has already proven to be quite active, as demonstrated by Hurricane Lane’s destructive landfall in Hawaii; and we are already 90 days into the 2018 Atlantic Hurricane Season. Unfortunately, and inevitably, natural and man-made disasters will continue to occur across our great nation. These terrible and often tragic events leave many people without food, water, or shelter, and often cause devastating damage to life and property. Nevertheless, there are criminals ready to take advantage of victims before, during, and especially after a natural disaster. They are looking to strike those at their most vulnerable time.

While compassion, assistance, and solidarity are generally prevalent in the aftermath of natural disasters, unscrupulous individuals and organizations also use these tragic events to take advantage of those in need. Examples of illegal activity being reported to the NCDF and law enforcement include:

• Impersonation of federal law enforcement officials;
• Identity theft;
• Fraudulent submission of claims to insurance companies and the federal government;
• Fraudulent activity related to solicitations for donations and charitable giving;
• Fraudulent activity related to individuals and organizations promising high investment returns from profits from recovery and cleanup efforts;
• Price gouging;
• Contractor Fraud;
• Debris removal fraud;
• Theft, looting, and other violent crime 

Numerous U.S. Attorney Offices in districts impacted by recent hurricanes have established task forces comprised of local, state and federal agencies in their respective areas to combat disaster fraud. 

In ongoing efforts to strengthen partnerships and better inform the American people of its mission, the NCDF has joined with Louisiana Attorney General Jeff Landry, who was recently installed as the President of the National Association of Attorneys General (NAAG), in an effort to spread the message of the NCDF to more of our partners nationwide. We at the NCDF are collaborating with Attorney General Landry and the NAAG to inform every state Attorney General of the mission and function of the NCDF as part of Attorney General Landry’s presidential initiative on disaster fraud.

“The NCDF has an excellent staff of investigators, analysts, call center operators, and managers who are well prepared to handle the anticipated volume of complaints during hurricane season and help ensure that each report of fraud reaches the appropriate investigative agency,” said U.S. Attorney Brandon J. Fremin for the Middle District of Louisiana, who is also the NCDF’s Executive Director.  “Our collaboration with the National Association of Attorneys General and Attorney General Landry is yet another example of our efforts to better serve the American people before, during and after a natural disaster. Raising public awareness by spreading the message of the NCDF through the state Attorneys General is a great way for the NCDF to reach thousands of people who may one day be subjected to fraudulent schemes.” 

“As President of the National Association of Attorneys General, my goal is to use the next 18 months to gather as much intel as possible so we may better prepare state and federal leaders for future crises,” said Louisiana Attorney General Jeff Landry.  “We are fortunate to have the NCDF right here in Louisiana and it has served as a great resource to our citizens through hurricanes, floods, and other natural disasters. I am proud to team up with U.S. Attorney Fremin and the great men and women at the NCDF as we continue to look for ways to move our Louisiana and other states forward in terms of emergency preparedness and management.”

Members of the public are reminded to apply a critical eye and do their due diligence before trusting anyone purporting to be working on behalf of disaster victims and before giving contributions to anyone soliciting donations on behalf of disaster victims as well as being extremely cautious before providing personal identifying or financial information to anyone, especially those who may contact you after a natural disaster.  Solicitations can originate from e-mails, websites, door-to-door collections, mailings and telephone calls, and similar methods.  Members of the public who suspect fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, or believe they have been the victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721.   The telephone line is staffed by live operators 24 hours a day, seven days a week. You can also fax information to the Center at (225) 334-4707, or email it to disaster@leo.gov (link sends e-mail).  Learn more about the NCDF at www.justice.gov/disaster-fraud and watch a public service announcement here.  Tips for the public on how to avoid being victimized of fraud are at https://www.justice.gov/opa/pr/tips-avoiding-fraudulent-charitable-contribution-schemes.

TULSA, Okla.— Richard C. Cole, 36, of Joplin, Missouri, was charged today by way of criminal complaint with possession of an unregistered destructive device discovered at a residence in Afton, Oklahoma, from which he was recently evicted.

According to the Complaint affidavit, on August 25, Delaware County Sheriff’s deputies were called to 27950 South Highway 25, Unit 27-1, in Afton, OK, when a landlord discovered a suspected improvised explosive device.  The Oklahoma Highway Patrol Bomb Squad was contacted, and upon arrival, they observed two, one pound canisters of what appeared to be “mixed Tannerite,” two boxes of ammunition, along with the explosive device in an ammunition container.

United States Attorney Trent Shores stated, “I am thankful no one was injured by the pipe bomb. The Oklahoma Highway Patrol Bomb Squad and the Delaware County Sheriff’s Office are to be commended for quickly handling the situation in order to protect the public and render this destructive device safe.”

Agencies involved in the investigation and arrest included the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Oklahoma Highway Patrol Bomb Squad, and the Delaware County Sheriff’s Office. Assistant United States Attorney Robert T. Raley is prosecuting the case.  AUSA Raley is the National Security Anti-Terrorism (ATAC) Prosecutor for the U.S. Attorney’s Office in the Northern District of Oklahoma

A Complaint is a set of allegations that, if the case were to proceed to trial, the government would need to prove beyond a reasonable doubt. Defendants are presumed innocent until proven guilty in a court of law.

The husband and wife co-owners of a Miami pain management clinic and a patient recruiter pleaded guilty today to conspiracy to distribute controlled substances for their participation in a scheme to unlawfully distribute thousands of pills of oxycodone.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division; U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida; Special Agent in Charge Robert Lasky of the FBI’s Miami Field Office; Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); Special Agent in Charge Brian Swain of the U.S. Secret Service (USSS), and Special Agent in Charge Adolphus P. Wright of the U.S. Drug Enforcement Administration (DEA) Miami Field Division made the announcement.  

“The so-called ‘pain clinic’ owned by David Bosch and Tania Sanchez traded oxycodone prescriptions for cash, resulting in bogus, medically unnecessary prescriptions for at least 7,500 tablets of oxycodone,” said Assistant Attorney General Benczkowski.  “Pill mills like this must be shut down.  The Department of Justice is committed to reducing the staggering number of opioid overdoses in this country, and holding accountable all responsible parties, from owners of illegal clinics to patient recruiters, for their roles in this deadly scourge.”

David Bosch, 46, and Tania Sanchez, 47, of Hialeah, Florida, and Odalys Abreu, 45, of Miami, Florida, pleaded guilty to one count of conspiracy to distribute controlled substances before U.S. Magistrate Judge John O’Sullivan of the Southern District of Florida.  Sentencing has been scheduled for Nov. 7 before U.S. District Judge Joan A. Lenard of the Southern District of Florida.  Ledif Acanda Machado, 39, who was charged in this conspiracy, remains a fugitive.

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

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

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

This case was investigated by the FBI, HHS-OIG, USSS, and the DEA.  Trial Attorney Adam Yoffie of the Criminal Division’s Fraud Section is prosecuting the case.

The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in 10 locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,700 defendants who collectively have falsely billed the Medicare program over $14 billion.

Attorney General Jeff Sessions welcomed the confirmation of Joseph H. (Jody) Hunt as the Assistant Attorney General of the Department of Justice’s Civil Division.

“I applaud the Senate for the confirmation of Jody Hunt,” said Attorney General Jeff Sessions. “His Department of Justice career extends for nearly 20 years. He has served as Director of the Federal Programs Branch for 15 years, a part of the Civil Division. This branch litigates some of the Justice Department’s most challenging cases at the trial level. I am deeply indebted to Jody for his outstanding service as my Chief of Staff. He is a man of great integrity, energy, and legal skill. He is uniquely qualified to lead the Department’s largest litigation division, where I am confident he will ably advocate this administration’s legal agenda.”

The Civil Division, which functions as the Government’s law firm, is the largest litigating component of the U.S. Department of Justice.  Each year, the Civil Division represents the United States and its agencies, Members of Congress, Cabinet Officers, and other federal employees in tens of thousands of cases.  In total, the Civil Division litigates matters on behalf of over 100 different federal agencies. 

Most recently, Hunt served as Senior Advisor in the Office of Legal Policy following his service as Chief of Staff and Senior Counselor to Attorney General Sessions. Prior to this appointment, he served for fifteen years as Director of the Federal Programs Branch in the Civil Division, where he supervised the Government’s litigation efforts with respect to numerous legal challenges in federal district courts. His litigation responsibilities have concerned a wide range of matters on behalf of many executive agencies, including the Department of State, the Department of Defense, the Department of the Treasury, and components of the United States Intelligence Community. Hunt is a past recipient of the Attorney General’s Distinguished Service Award.

Prior to joining federal service in 1999, Hunt worked as a lawyer in private practice. Hunt clerked for Judge James H. Hancock of the U.S. District Court for the Northern District of Alabama following his graduation in 1989 from Columbia School of Law.

Acting Assistant Attorney General John Gore and United States Attorney Halsey B. Frank today announced that Maurice Diggins, 34, and Dusty Leo, 27, both of Biddeford, Maine, were indicted by a federal grand jury in the District of Maine for conspiracy to violate and for violating the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act, by assaulting an African-American man.  

According to the indictment, on about April 15, Diggins and Leo willfully caused bodily injury to an African-American man in the parking lot of a 7-Eleven convenience store in Biddeford, targeting the victim because of his race. The indictment alleges that the defendants drove a truck into the 7-Eleven parking lot at a high rate of speed as the victim walked across the lot. Diggins got out of the truck, repeatedly called the victim a racial slur, blocked his entry into the store, and circled him, turning the victim’s back to the truck. According to the indictment, Leo got out of the truck, walked up behind the victim, and struck him forcefully in the head. It is alleged that as the victim ran away, the defendants followed him in the truck, continuing to shout racial epithets.

If convicted, Diggins and Leo face up to 10 years in prison and a $250,000 fine on the hate crime charge, and five years in prison and a $250,000 fine on the conspiracy charge.

Diggins and Leo were arrested on Friday and are scheduled to make their initial appearances today in U.S. District Court in Portland.

The case was investigated by the Biddeford Police Department and the FBI. It is being prosecuted by Assistant United States Attorney Sheila W. Sawyer of the District of Maine and Trial Attorney Timothy Visser of the Civil Rights Division of the Department of Justice. 

An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty in a court of law.

After a 10-week trial, a federal jury in the Eastern District of Michigan convicted four members of the Seven Mile Bloods Street Gang today for their participation in various criminal acts, including racketeering conspiracy and related firearm offenses.                          

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan and Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Division made the announcement.

“The Seven Mile Bloods and its rival conducted a gang war on the east side of Detroit, leading to an increase in murders and shootings in that part of the city,” said Assistant Attorney General Benczkowski.  “We commend our prosecutors and law enforcement partners for their hard work to hold members of the gang accountable for their crimes.  Today’s verdict sends a strong message that the Department of Justice and its partners will use every tool available as we continue our work to disrupt and dismantle violent street gangs like the Seven Mile Bloods.”

“These guilty verdicts are a tremendous victory for the Detroit community that was plagued by the violence, drug dealing and mayhem inflicted by this violent street gang,” said U.S. Attorney Schneider.  “The jury’s guilty verdicts highlight that our community has no tolerance for the senseless murders and violence spread by gang members.” 

“The FBI, our Task Force partners and the U.S. Attorney’s Office, will continue to vigorously combat gang, drug and gun crimes in our neighborhoods so that all residents of the City of Detroit can live in an environment that is safe and free of violence,” said FBI Special Agent in Charge Slater.

The trial was conducted before U.S. District Judge George Caram Steeh in Detroit, Michigan.  The jury deliberated approximately seven days before reaching their verdicts.  Amongst those convicted are:
 

• Corey Bailey, aka “Sonny,” “Cocaine Sonny,” 30, of Detroit, was convicted of RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence;
• Arlandis Shy, aka “Grymee,” “Vil,” 29, of Clinton Township was convicted of RICO conspiracy and possession of a firearm in furtherance of a crime of violence;
• Robert Brown II, aka “R.O.,” 36, of Warren, Michigan, was convicted of RICO conspiracy, attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence; and
• Keithon Porter, aka “KP,” 32, of Detroit; was convicted of RICO conspiracy; murder in aid of racketeering; attempted murder in aid of racketeering; and possession of a firearm in furtherance of a crime of violence.

A fifth defendant, Eugene Fisher, aka “Fes,” 38, of Detroit, was convicted of two counts of felon in possession of a firearm.

According to evidence presented during the trial,  the Seven Mile Bloods gang operates on the east side of Detroit, between Gratiot Avenue and Kelly Road and between Seven and Eight Mile Roads.  Seven Mile Bloods or “SMB” members have claimed this area as their territory and refer to it as the “Red Zone.”  The area is in zip code 48205, which SMB members refer to as “4-8-2-0-Die” in some of their rap lyrics.

Evidence presented at trial showed an ongoing gang war between the Seven Mile Bloods and an alliance of other gangs operating on Detroit’s east side stemming from a murder that occurred in July 2014.  These rival gangs have been violently attacking one another and have posted respective “hit lists” on social media.  This shooting war has led to increased homicides and non-fatal shootings on Detroit’s east side.

This case was the work of the Detroit One Initiative.  Investigators were able to bring together separate probes into various members of this organization and its criminal activities into one encompassing investigation. Partners include the Detroit Police Department Gang Intelligence Unit, the FBI Violent Gang Task Force, which consists of representatives of Detroit Police Department, U.S. Border Patrol, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, Michigan Department of Corrections and Michigan State Police, with the cooperation of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Drug Enforcement Administration (DEA). 

The investigation further resulted in the seizure of more than 20 firearms, including several high-powered assault rifles.

The case was prosecuted by Trial Attorney Julie A. Finocchiaro of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Justin Wechsler, Mark Bilkovic and Tare Wigod of the U.S. Attorney’s Office for the Eastern District of Michigan.

Attorney General Jeff Sessions issued the following statement on the passing of Senator John McCain:

"For John McCain, his country was his life. He was tireless in its service. Courage, determination, and relentless drive made him a great leader.

"To me, having served with him in the Senate for 20 years, his support for President Bush's surge in Iraq at a time when things had been going badly and public support had eroded, was one of the most dramatic, important, patriotic, and selfless actions I had the honor to witness in that body. His presidential aspirations were entirely set aside. He totally deployed his considerable strength and energy to what he believed was best for his country—and in service to those then fighting valiantly for the mission the nation had given them. It was a very contentious debate. His personal dedication and leadership moved a very uncertain decision to a  favorable outcome.

"His ferocious tenacity for his country was unmatched. America has lost one of its greatest patriots."

The Justice Department today announced that it settled a lawsuit against the Village of Tinley Park, Illinois, a suburb of Chicago, alleging that it violated the Fair Housing Act when it refused to approve a low-income housing development in response to race-based community opposition.

The suit, filed in U.S. District Court in Chicago, Illinois, in November 2016, alleged that the Village of Tinley Park discriminated against prospective tenants of a proposed development when it refused to approve the project, despite the Tinley Park Planning Department’s finding that the project was in “precise conformance” with the applicable building requirements. Under Tinley Park’s zoning ordinances, Tinley Park’s Plan Commission should have approved the project and allowed construction to begin. Instead, the lawsuit alleged that in response to race-based community opposition, Tinley Park trustees requested the Plan Commission table consideration of the project. The Plan Commission did so, stalling the project indefinitely. 

Under the settlement, the Village will pay a total of $360,000 in monetary damages to the Village’s former planning director who was placed on leave because of her support for the project, as well as a $50,000 civil penalty to the United States. In addition, the Village will also take a number of actions to guard against further housing discrimination, including training  elected officials and individuals involved in the planning process, developing a fair housing policy, and hiring a fair housing compliance officer. The developer of the property reached a separate settlement with the Village in April 2017. 

“Increasing access to housing, including through affordable housing, is important to the development of our communities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to enforce federal civil rights laws, and protect against discrimination, including on the basis of race, with respect to access to affordable housing.”

“Access to housing free from discrimination is a right afforded to all Americans,” said U.S. Attorney John R. Lausch, Jr. of the Northern District of Illinois. “This settlement is an example of our office’s continuing effort to enforce anti-discrimination laws that protect those rights.”

Individuals who believe they have been victims of housing discrimination practices may file a complaint with the Department of Housing and Urban Development (HUD) or a lawsuit in federal or state court. Individuals must file their complaint with HUD within one year of a housing discrimination incident or file a lawsuit in federal or state court within two years of an incident. For more information about housing discrimination laws, call (202) 514-4713 or visit the Department of Justice website at https://www.justice.gov/crt/housing-and-civil-enforcement-section

A West Warwick, Rhode Island tax preparer pleaded guilty today in the U.S. District Court for the District of Rhode Island to 44 counts of filing fraudulent tax returns for clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney for the District of Massachusetts Andrew Lelling.

According to documents and information provided to the court, Raymond Petrarca owned and operated Stratus Financial Group, a tax preparation business in Warwick, Rhode Island. Petrarca admitted to falsifying 44 tax returns prepared for his clients between tax years 2010 and 2015, seeking refunds from the Internal Revenue Service to which his clients were not entitled. Petrarca admitted to falsifying the returns by including false and inflated deductions for home mortgage interest and charitable donations and false and inflated credits for purported home energy improvements.

Sentencing is scheduled for December 5, 2018. Petrarca faces a maximum sentence of three years in prison on each count, as well as a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Lelling thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Victor A. Wild and Trial Attorney Kimberly G. Ang of the Tax Division, who are prosecuting the case.

Nebraska Railcar Cleaning Services LLC (NRCS), its president and owner, Steven Michael Braithwaite, and its vice president and co-owner, Adam Thomas Braithwaite, were charged in a 22-count indictment with conspiracy, violating worker safety standards resulting in worker deaths, violating the Resource Conservation and Recovery Act (RCRA) which governs hazardous waste management, and submitting false documents to a federal agency. Adam Braithwaite was also charged with perjury. The indictment was returned by a grand jury in Omaha, Nebraska today and announced by Acting Assistant Attorney General for the Environment and Natural Resources Division Jeffrey H. Wood and United States Attorney Joseph P. Kelly. 

According to the indictment, NRCS and Steve and Adam Braithwaite failed to implement worker safety standards and then tried to cover that up during an inspection by the Occupational Safety and Health Administration (OSHA).  The defendants also mishandled hazardous wastes removed from rail tanker cars during the cleaning process. 

Two of the company’s workers were later killed and another injured when the contents of a railcar ignited while being cleaned.

“Protecting the health and safety of American workers at hazardous job sites is of paramount importance,” said Acting Assistant Attorney General Wood. “The defendants in this case failed to live up to that responsibility, even falsifying documents to evade worker safety requirements. Tragically, employees at the defendants’ facility lost their lives while working in these unsafe conditions. Today’s indictment shows that the Department of Justice will prosecute those who knowingly seek to thwart federal laws that protect the safety of American workers.”

“Whenever a company or its employees knowingly fail to comply with environmental laws, both the public and the environment are placed at risk” said Assistant Administrator Susan Bodine of EPA’s Office of Enforcement and Compliance Assurance.  “This case demonstrates the importance of environmental compliance to safeguard public health and safety.”

“An important mission of the Office of Inspector General is to investigate allegations of fraud committed against the Department of Labor's regulatory agencies, including the Occupational Safety and Health Administration (OSHA). We will continue to work with our law enforcement partners to defend the missions of those regulatory agencies, which includes assuring safe and healthful working conditions for American workers,” said Steven Grell, Special Agent-In-Charge, Dallas Region, U.S. Department of Labor Office of Inspector General.

The indictment alleges that after a 2013 inspection of NRCS, Steve Braithwaite entered into a written agreement where he represented that NRCS had been testing for benzene since July 2014. After OSHA returned to NRCS in March 2015 to conduct a follow-up inspection and was turned away by Steve Braithwaite, Steve and Adam Braithwaite created documents that were submitted to OSHA to falsely show that NRCS had been purchasing equipment to test the contents of railcars for benzene and had taken other required safety precautions. During inspections by the Nebraska Department of Environmental Quality and the U.S. Environmental Protection Agency in 2013 and 2014 respectively, NRCS was informed that it was required to test its wastes to determine if they were hazardous in order to properly dispose of them, rather than send all untested waste to a landfill not permitted to receive hazardous waste. The indictment alleges that was not done before April 2015.

On April 14, 2015, the contents of a railcar ignited while being cleaned by NRCS employees. Two employees were killed and a third injured. Two days after the explosion, NRCS had three railcars tested to assess whether their contents were hazardous; two were determined to be hazardous.

OSHA regulations under the Occupational Safety and Health Act require that the air in confined spaces such as rail tanker cars be tested for various gases including flammable and explosive ones before workers are allowed to enter, and that workers exposed to certain chemicals wear respirators for which they must be assessed and fit tested. EPA regulations under RCRA require assessments of wastes for whether they are hazardous and that hazardous wastes be treated and disposed of at appropriate facilities. Hazardous wastes include those that are ignitable and those that contain benzene. According to the Centers for Disease Control and Prevention, benzene causes human cancer and has other health effects.

The case was investigated by EPA Criminal Investigation Division and the U.S. Department of Labor Office of Inspector General. Senior Counsel Krishna S. Dighe of the Department of Justice, Environmental Crimes Section, and Assistant U.S. Attorney Donald J. Kleine of the District of Nebraska are prosecuting the case.

United States Attorney Kelly reminds the public that an Indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.

For more information about EPA’s hazardous waste program and its requirements, visit https://www.epa.gov/hw.

For more information about OSHA’s confined space entry program and its requirements, visit https://www.osha.gov/SLTC/confinedspaces/.

For more information about benzene, visit https://emergency.cdc.gov/agent/benzene/basics/facts.asp.

While in Cleveland, Ohio, Attorney General Jeff Sessions today announced the unsealing of a 43-count indictment in federal court in Cleveland, which charges two Chinese citizens with operating a conspiracy that manufactured and shipped deadly fentanyl analogues and 250 other drugs to at least 25 countries and 37 states.  The indictment also alleges the drugs sold by the group directly led to the fatal overdoses of two people in Akron, Ohio.

Fujing Zheng, aka Gordon Jin, 35, and his father Guanghua Zheng, 62, both of whom reside in Shanghai, China, are charged with conspiracy to manufacture and distribute controlled substances, conspiracy to import controlled substances into the United States, operating a continued criminal enterprise, money laundering and other crimes. The charges carry a potential sentence of life imprisonment because the drugs involved resulted in death, and the defendants’ conduct qualifies for an enhancement under the kingpin statute.

The indictment was announced by Attorney General Jeff Sessions, Assistant Attorney General Brian A. Benczkowski for the Justice Department’s Criminal Division, U.S. Attorney Justin Herdman for the Northern District of Ohio, Acting Administrator Uttam Dhillon of the U.S. Drug Enforcement Administration (DEA), Special Agent in Charge Timothy Plancon of DEA’s Detroit Field Office, Special Agent in Charge Steve Francis of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) for Michigan and Ohio and Special Agent in Charge Ryan Korner of IRS Criminal Investigation (CI) Cincinnati Field Office.

“Fentanyl and its analogues are the number one killer drug in America today, and most of them come from China,” said Attorney General Sessions.  “That’s why the Department of Justice under President Donald Trump has taken historic new steps against the threat of Chinese fentanyl. In October, we announced the first-ever indictments of Chinese nationals for fentanyl trafficking; 32 defendants have been charged in those cases. Today we are announcing an indictment of the leaders of the Zheng drug trafficking organization based in China, who the indictment alleges sold drugs that have killed at least two Ohioans. I want to thank U.S. Attorney Herdman and his fabulous Assistant U.S. Attorneys, our Criminal Division, DEA, FBI, Homeland Security Investigations, and IRS Criminal Investigation special agents and our Postal Inspectors for all of their hard work on this case. By cutting off fentanyl and its analogues at the source, we can save American lives.”

“As detailed in this indictment, the trail from at least two dead bodies in Akron, Ohio, leads to the Zhengs,” said U.S. Attorney Herdman. “This group has shipped deadly fentanyl analogues and other drugs around the globe for a decade. Law enforcement will follow the evidence wherever it leads, including overseas, to stop the flow of drugs that have caused so much heartbreak and destruction in Ohio.”

“DEA will relentlessly pursue anyone shipping deadly fentanyl analogues to the United States wherever they may be and bring them to justice,” said DEA Acting Administrator Dhillon.  “These Chinese drug traffickers are directly responsible for the deaths of U.S. citizens and we will hold them accountable in a U.S. court of law.”

“This case clearly shows that our collaborative efforts with law enforcement at every level continue to have an impact,” said HSI Special Agent in Charge Francis.  “These efforts exhibit the combined resources of American law enforcement agencies’ resolve to ending this deadly epidemic.”

“Today’s indictments, which include charges related to the defendants’ smuggling drug profits in and out of the United States, are a victory for the American public and a defeat to drug traffickers everywhere,” said IRS-CI Special Agent in Charge Korner.  “The special agents of IRS Criminal Investigation continue in their mission to disrupt the flow of ill-gotten gains that are the life-blood for these criminals.” 

According to the indictment: The Zhengs and others used numerous companies, including Global United Biotechnology, Golden Chemicals, Golden RC, Cambridge Chemicals, Wonda Science, and others, to manufacture and distribute hundreds of controlled substances, including fentanyl analogues such as carfentanil, acetyl fentanyl, furanyl fentanyl, and others. They created and maintained numerous websites to advertise and sell illegal drugs in more than 35 languages.

From 2008 to the present, the Zheng drug trafficking organization (Zheng DTO) engaged in this conspiracy from its base of operations in Shanghai. The organization claimed to ship “over 16 tonnes of chemicals every month” from its “own laboratory” and to “synthesize nearly any chemical on a bespoke basis in any quantity.”

The Zheng DTO touted its ability to create custom-ordered drugs and avoid detection from customs and law enforcement when shipping the drugs. The Zheng DTO explained in emails and online that it had “special ways” to “go through customs safely” in “USA, Russia, Europe,” and other locations around the world.  If customs still managed to seize the parcels, the DTO promised it would “re-ship free.”

The Zheng DTO used co-conspirators in other countries, including the United States, to receive, repackage, and redistribute the drug shipments, thereby hiding their Chinese origin. For example, it used companies run by Massachusetts-based co-conspirator Bin Wang to smuggle drugs past customs agents in China and the United States. Wang then shipped the drugs to customers across the country.

Wang has pleaded guilty to his role in the conspiracy and is scheduled to be sentenced Nov. 13.

The Zheng DTO has sent millions of lethal doses of fentanyl analogues and other drugs linked to overdoses in the United States and around the world.

On Feb. 15, 2015, Akron, Ohio resident, Leroy Steele, emailed the Zheng DTO saying he “would like to purchase Acetyl fentanyl.” The Zheng DTO explained in its correspondence with Steele that it was “a professional acetyl fentanyl manufacturer in China” and that “a lot of U.S. and Europe customers purchase largely from us monthly.”  The acetyl fentanyl that the Zheng DTO distributed to Steele resulted in the overdose deaths in Ohio of Thomas Rauh, 37, and Carrie Dobbins, 23, on or about March 21 and 28, 2015.

Steele was subsequently convicted of drug offenses and is currently serving a 20-year prison sentence.

Despite the deadly consequences of its actions, the Zheng DTO continued manufacturing and distributing drugs. In 2015, it advertised that it delivered “to all 50 USA states” and “worldwide to Australia, Europe, Asia and Africa.”

When China would ban a synthetic narcotic, the Zheng DTO would use its chemical expertise to create an analogue of the drug with a slightly different chemical structure but the same or even more potent effect. In this manner, the DTO entirely bypassed China’s restrictions on international narcotics sales. 

Last month, the Zheng DTO agreed to manufacture adulterated cancer medication, creating counterfeit pills that replaced the active cancer-fighting ingredient with dangerous synthetic drugs. It also created and shipped counterfeit Adderall pills that were adulterated with deadly bath salts.

The Zheng DTO laundered its drug proceeds by using digital currency such as Bitcoin, transmitted drug proceeds into and out of bank accounts in China and Hong Kong, and bypassed currency restrictions and reporting requirements.

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

This investigation was conducted by the DEA, HSI, and IRS-CI. The following agencies assisted in the investigation: U.S. Postal Inspection Service, FBI, Organized Crime and Drug Enforcement Task Force, Special Operations Division, the Medway Drug Task Force, Akron Police Department, federal law enforcement on assignment at the U.S. Embassy in Beijing and federal law enforcement in the following districts: District of Massachusetts, Middle District of Florida, District of Colorado, District of Missouri, District of Minnesota and Western District of Texas. The Criminal Division’s Office of International Affairs provided assistance.  The Chinese Ministry of Public Security provided assistance during the course of the investigation.

Assistant U.S. Attorney Matthew J. Cronin of the Northern District of Ohio and Justice Department Criminal Division Trial Attorneys Adrienne Rose of the Narcotic and Dangerous Drug Section and Deputy Unit Chief Stephen Sola of the Money Laundering and Asset Recovery Section, are prosecuting the case.

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

Today, the Department of Justice, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Postal Inspection Service (USPIS), Federal Bureau of Investigation (FBI), and the Drug Enforcement Administration (DEA) announced several arrests, charges and guilty pleas as a result of “Operation Darkness Falls,” a joint operation targeting people and organizations that sell fentanyl and other drugs over the dark net.

Attorney General Jeff Sessions was joined by U.S. Attorney for the Northern District of Ohio Justin Herdman and other Justice Department officials in Cleveland today to make the announcement, which included, at the time of their arrest in April, the most prolific dark net fentanyl vendor in the United States and the fourth most prolific in the world—MH4Life.

Making the announcement, Attorney General Jeff Sessions said, “Today’s announcements are a warning to every trafficker, every crooked doctor or pharmacist, and every drug company, every chairman and foreign national and company that puts greed before the lives and health of the American people: this Justice Department will use civil and criminal penalties alike and we will find you, put you in jail, or make you pay.”

“The mechanics of drug dealing has changed, and law enforcement has changed with it,” U.S. Attorney Justin E. Herdman said. “These cases demonstrate that those who think they are hiding behind a cloak of anonymity on the dark net will be uncovered and brought to justice for selling the drugs killing our friends and neighbors.”

According to court documents, MH4Life—Matthew Roberts and Holly Roberts, both 35 and of San Antonio—were charged earlier this year with conspiracy to distribute controlled substances and other crimes.

The Roberts’ created and operated several dark net marketplace accounts, including MH4LIFE, TRAPPEDINTIME, FASTFORWARD and MRHIGH4LIFE. They operated these accounts on dark net marketplace websites including Dream Market, Silk Road, AlphaBay, Darknet Heroes League, Nucleus and several others.

They used these accounts between 2011 and May 12, 2018 to possess and distribute fentanyl, MethoxyAcetylFentanyl (MAF), other fentanyl analogues, heroin, cocaine, methamphetamine, MDMA, LSD, marijuana, Xanax, Oxycodone and other drugs.

The Roberts’ MH4LIFE vendor account on Dream Market had 2,800 verified transactions with a 4.89/5 rating as of May 2018. Dream listed that MH4LIFE had 500 verified transactions on the Agora marketplace and 719 transactions on the Nucleus marketplace. The only products listed for sale by MH4LIFE were illegal narcotics.

MH4LIFE had the highest number of verified transactions worldwide of any fentanyl vendor based upon a review of Dream Market.

The Roberts’ used private messaging, encryption software, Virtual Private Networks and proxies through the TOR network to provide security for the criminal organization. They used decoys, such as glow bracelets and other mundane items, to hide the fact they were mailing narcotics. They also purchased postage from third parties with cryptocurrency in an effort to conceal their activities.

Customers used digital currency to purchase narcotics, which the defendants sent to digital currency exchangers, where the funds were converted into official fiat currency and spent on person goods and services, as well as prepaid Visa and gift cards.

Their criminal case, filed in U.S. District Court in Cleveland, is pending.

Other cases charged as part of Operation “Darkness Falls” include: DF44: Robert Kiessling was the third-largest fentanyl vendor in North America as of early this year, based on number of sales. Kiessling was arrested in coordination with the Royal Canadian Mounted Police in Canada. A search of his residence uncovered fentanyl and other narcotics tied to the dark net scheme. He was released on bond in Canada and committed suicide. 

The Source, BonnieNClyde: Nick Powell is charged with being a Xanax distributor and dark net money launderer.  Powell was arrested and agents seized $438,000 in Bitcoin. He has been charged in federal court in Cleveland with conspiracy to distribute controlled substances. The case is pending. 

Dark King 22: Antoin Austin, of Euclid, recently pleaded guilty to operating a dark net fentanyl business from an apartment cohabitated with children and within a short distance from an elementary school. He is scheduled to be sentenced Nov. 5.

MotleyFool: James Halpin recently pleaded guilty to his role as a national dark net fentanyl vendor. 

Panachecak: Ryan Kluth recently pleaded guilty to crimes involving fentanyl and child pornography via the dark net. His plea agreement calls for a sentence of approximately 10 years in prison.

“HSI and our partners are proud to be at the tip of the spear combating illicit activities and financial crimes on the dark net,” said Steve Francis, special agent in charge of HSI for Michigan and Ohio. “Criminals groups who continue to peddle their illegal contraband via the dark net are increasingly learning that they do not escape the reach of law enforcement.”

“Postal Inspectors and their law enforcement partners will spare no resource or expense to shine a light on the sale and distribution of illicit and dangerous items on the dark net, that serve to destroy the lives of many through addiction and despair,” said Postal Inspector in Charge Tommy Coke.  “Our law enforcement partnership and operation sends a strong message to those who choose this illegal path, we are watching and will bring you to justice for your crimes against the American public.”

FBI Special Agent in Charge Stephen D. Anthony said: “Criminals who think they can use the dark net and cryptocurrencies to hide their actions are wrong, we will continue to work with, and leverage the capabilities of, our partner agencies. The FBI is proud to have partnered with Postal Inspection, HSI and others to identify and disrupt this criminal organization.”

These cases are the result of a joint investigation involving Homeland Security Investigations, U.S Postal Inspection Service, the FBI and the Internal Revenue Service – Criminal Investigations. Federal agents around the country, including in the Western District of Texas, Western District of Pennsylvania, Middle District of Florida and elsewhere, have assisted in the ongoing operation.

These cases are being prosecuted by Assistant U.S. Attorney Matthew J. Cronin and Daniel J. Riedl.

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

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

A federal jury in Las Vegas, Nevada convicted a Las Vegas man of conspiracy to commit mail and wire fraud announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Dayle Elieson of the District of Nevada.

According to court documents and evidence presented at trial, Terry Williamson conspired with others to file false and fraudulent tax returns with the Internal Revenue Service using the names and social security numbers of deceased taxpayers. To further the scheme, Williamson opened and managed a bank account to receive the fraudulent tax refunds.  In total, more than 480 fraudulent tax refund checks totaling more than $2 million were deposited into Williamson’s account.  Williamson withdrew substantial amounts of money from that bank account and also transferred large portions of the proceeds to his personal account and to the accounts of co-conspirators.  Williamson spent his cut of the money on personal expenses including over $60,000 on a fully-loaded pick-up truck.

Sentencing is scheduled for a later date. Williamson faces a statutory maximum sentence of 20 years in prison as well as a period of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys John Mulcahy and Sarah Kiewlicz of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found at www.justice.gov/tax.

The Justice Department filed a complaint to bar two Ohio doctors from prescribing medications after an investigation revealed they recklessly and unnecessarily distributed painkillers and other drugs. Temporary restraining orders—a first-of-its-kind against doctors allegedly prescribing opioids illegally under the Controlled Substances Act (CSA)—were served this week that forbid Michael P. Tricaso, D.O., of Akron, and Gregory J. Gerber, M.D., of Sandusky, from writing prescriptions.

Attorney General Jeff Sessions was joined by U.S. Attorney for the Northern District of Ohio Justin Herdman and other Justice Department officials in Cleveland today to make the announcement.

On March 19, 2018, President Trump announced the Initiative to Stop Opioid Abuse and Reduce Drug Supply and Demand. The initiative seeks to “reduce the over-prescription of opioids which has the potential to lead Americans down a path to addiction or facilitate diversion to illicit use.”

Pursuant to the President’s Initiative and as part of the goal to reduce opioid over-prescription, the Justice Department’s Prescription Interdiction & Litigation (PIL) Task Force aggressively deploys and coordinates all available criminal and civil law enforcement tools to reverse the tide of opioid overdoses in the United States.

As a result of the PIL Task Force’s efforts, Attorney General Sessions’ announcement of the temporary restraining orders for Triasco and Geber mark the first ever civil injunctions under the CSA against doctors who allegedly prescribed opioids illegally.

Making the announcement, Attorney General Jeff Sessions said, “Today’s announcements are a warning to every trafficker, every crooked doctor or pharmacist, and every drug company, every chairman and foreign national and company that puts greed before the lives and health of the American people: this Justice Department will use civil and criminal penalties alike and we will find you, put you in jail, or make you pay.”

 “These doctors were simply drug dealers in white lab coats,” said U.S. Attorney Justin Herdman. “They illegally prescribed painkillers and other drugs for no legitimate medical purpose. Putting so-called physicians like these out of business is one of several steps we are taking to turn the tide on the opioid and drug crisis that has caused so much death and heartbreak in our community.”

“The physicians in this investigation were nothing short of automatic prescription machines to anyone who solicited,” said DEA Special Agent in Charge Timothy Plancon. “Their reckless actions and corruption has had a tremendous affect in opioid addiction that is plaguing America. Agents are working in communities affected by the opioid epidemic and the DEA’s upmost priority, is arresting and dismantling the largest opioid traffickers, such as Tricaso and Gerber. We will not stop until illegal trafficking of prescription pills and other harmful drugs are out of Northern Ohio and off the streets of America.”

“Excessive prescribing and reckless distribution of opioids and other drugs have harmed our communities and fueled the public health crisis we are currently dealing with,” said Ohio Attorney General Mike DeWine. “At the Ohio Attorney General’s Office, we are committed to protecting Ohio families and collaborating with our law enforcement partners to ensure that those who ignore the law, put people at risk, and contribute to this crisis are held accountable for their actions.”

According to documents filed in U.S. District Court for the Northern District of Ohio, Tricaso operates the Better Living Clinic, currently located at 1236 Weathervane Lane, Suite 300, in Akron. He promotes the Better Living Clinic at gyms across Northeast Ohio and also serves as the “gym doctor” at a gym in Painesville.

In May 2016, Tricaso met a confidential source (CS1), who was working for the DEA, at a gym. Tricaso sold CS1 steroids and other controlled substances numerous times this year.

CS1 met Tricaso at a hotel parking lot on June 26, 2018, where CS1 asked Tricaso for a prescription of the opioid Vicodin. Tricaso declined because he does not “like writing scripts,” but offered to provide CS1 with Percocet without a prescription. According to court documents, Triasco told CS1, “It’s easier for me to get them for you, than to write a script, ‘cause it gets traced, you know? So, how many would you want? I mean, I can get them for like five bucks apiece…I can probably get like 50 to 100 of them…”

Tricaso later texted to CS1 that he could sell him 50 Percocet pills for $500 and write a prescription for 20 Percocet, which Tricaso described as an “under the radar amount and won’t be a red flag.”

On July 2, Tricaso met CS1 in the hotel parking lot, where Tricaso sold 50 Percocet for $500 and wrote CS1 a prescription for 20 Percocet.

On July 18, Tricaso and CS1 met again in the hotel parking lot, where Tricaso sold CS1 100 Percocet for $1,000.

Tricaso is alleged to have violated the CSA.

Gerber operated Gregory J. Gerber, M.D. LLC  from 2819 Hayes Avenue, Suite 4 in Sandusky. Gerber received $175,000 between 2013 and 2016 from Insys Therapeutics, Inc. to promote Subsys, a liquid formulation of fentanyl applied under the tongue a spray used to treat cancer-related pain. These payments violate the False Claims Act prohibition against kickbacks, according to the complaint.

Gerber in October 2017 began seeing an undercover agent. The undercover agent did not complain of pain during each of their six visits with Gerber and received a minimal medical examination, but each time Gerber prescribed controlled substances for the undercover agent, including Oxycodone, Dronabinol and alprazolam.

Gerber is alleged to have violated the CSA and the False Claims Act.

Both investigations are ongoing.

“These doctors pledged an oath dedicating their lives to treating patients but instead they traded that commitment for the pursuit of ill-gotten profits through the fraudulent prescribing of opioids,” said FBI Special Agent in Charge Stephen D. Anthony. “This case should serve as a warning to other physicians of the perils of engaging in such activities, law enforcement will continue collaborative efforts to hold individuals accountable.”

“We rely on doctors to be part of the solution to the opioid epidemic -- not part of the problem,” said Special Agent in Charge Lamont Pugh of the U.S. Department of Health and Human Services Office of Inspector General. “We will continue our aggressive efforts to protect patients and taxpayers from physicians who abuse their position in order to enrich themselves.”​

“The State of Ohio Board of Pharmacy is committed to protecting Ohio patients from criminal prescribing practices,” said Executive Director Steven Schierholt. “I applaud the coordinated efforts at the local, state, and federal level. By enforcing state and federal regulations, these criminal prescribers can be stopped.”

These cases were investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, Health and Human Services – Office of Inspector General, the Ohio Attorney General’s Medicaid Fraud Control Unit, the State of Ohio Board of Pharmacy, the Cuyahoga Falls Police Department, the State Medical Board of Ohio, and other members of the PIL Task Force.

These cases are being handled by Assistant U.S. Attorneys Patricia Fitzgerald, Margaret Sweeney, Matthew Cronin, Angelita Cruz Bridges, Gene Crawford, and Chelsea Rice, with assistance from Deputy Director Jill Furman and Trial Attorneys James Harlow and David Frank of the Department of Justice’s Consumer Protection Branch.

If people have information about their interactions with Dr. Gerber, they are encouraged to call  419-254-2803.

Tulsa, Okla.– Attorney General Jeff Sessions today announced that Tulsa is one of five cities selected to the National Public Safety Partnership (PSP) as the Department of Justice continues its efforts to fulfill President Trump’s commitment to reducing violent crime in America.

PSP delivers a framework for enhancing federal support of state, local, and tribal law enforcement officials and prosecutors as they aggressively investigate and pursue violent criminals, specifically those involved in gun crime, drug trafficking, and gang violence.

PSP provides cities the opportunity to consult with, receive coordinated training and technical assistance from, and have access to an array of resources from the Justice Department and its law enforcement components.  The partnership will further enhance the ability of the U.S. Attorney’s Office in the Northern District of Oklahoma and its local, state, and federal partners to investigate and prosecute violent crime.

 “Attorney General Sessions meant business when he directed United States Attorneys to target alpha criminals and reduce violent crime across America. The Public Safety Partnership will bring resources to Tulsa to aid us in that effort. I am proud to bring these crime fighting tools to northeastern Oklahoma.” said U.S. Attorney Trent Shores. “When I was sworn in as United States Attorney, I pledged to combat violent crime. These resources will enhance our ability to partner with the Tulsa Police Department, Tulsa County Sheriff’s Office, and federal law enforcement agencies to keep citizens safe. I have assembled a dedicated and talented team of federal prosecutors. They stand ready to enforce the law and fight for justice for all.”

PSP offers two separate approaches to the assistance provided by the Justice Department, the Diagnostic Approach and the Operations Approach:

• PSP Diagnostic teams help participating cities develop tools to diagnose and address violent crime issues.
• PSP Operations teams partner directly with federal, state, local, and tribal officials to strategically address violent crime issues.

Five sites have been selected to receive this significant assistance:

2018 PSP Diagnostic Sites:

• Saginaw, Michigan
• Salisbury, North Carolina

2018 PSP Operations Sites:

• Kansas City, Missouri (participated as a PSP Diagnostic Site in 2017)
• Miami, Florida
• Tulsa, Oklahoma

“Reversing the recent troubling increase in violent crime in our country is a top priority of the Department of Justice as we work to fulfill the President’s promise to make America safer,” said Attorney General Sessions. “Cooperation with our fabulous state and local partners is the single most important aspect of our strategy to reduce crime. The National Public Safety Partnership program will help five American cities to build up their own capacity to fight crime by using DOJ expertise and resources as well as evidence-based strategies customized to meet their needs. We want to be a force multiplier for them, and under PSP, we will.”

In June 2017, Attorney General Jeff Sessions announced the PSP program during remarks at the National Summit on Crime Reduction and Public Safety. The twelve sites announced in 2017 continue to participate in 2018, and have resulted in a number of success including, but not limited to:

• Birmingham, Alabama: The U.S. Attorney’s Office for the Northern District of Alabama established a public safety task force of local, state, and federal partners to improve data and intelligence sharing, complement community outreach, and improve prevention efforts. As a result of coordinated efforts among local and federal law enforcement, homicides in Birmingham are down 12 percent year to date in June.
• Indianapolis, Indiana: The U.S. Attorney’s Office for the Southern District of Indiana and the Bureau of Alcohol Tobacco, Firearms, and Explosives (ATF) have enhanced coordination with each Indianapolis Metropolitan Police Department patrol district to help identify and prioritize drug and gun crime cases appropriate for federal prosecution. ATF has also assigned a crime analyst to focus solely on National Integrated Ballistic Information Network (NIBIN) cases. NIBIN is a national program that assists law enforcement agencies in making connections among crimes involving firearms. As of July 2018, Indianapolis reports an increased homicide clearance rate from 40 percent to 70 percent year to date, which it attributes to increased collaboration among local and federal partners.
• Memphis, Tennessee: Identified one precinct and geographical area in South Memphis for PSP engagement—the Raines Street Station—to focus increased local and federal enforcement efforts. The Raines Street Station experienced approximately 22 percent of the city’s homicides in 2016. As a result of PSP involvement in the Raines Street Station area, homicides are down approximately 27 percent and aggravated assault are  down 11 percent, as of July 31, 2018.

Partner sites are selected through a process that considers both quantitative and qualitative measures, including sustained levels of violent crime that far exceed the national average. PSP sites must demonstrate a commitment to reducing violent crime, and in August 2017 that commitment was extended to include reducing violent crime stemming from illegal immigration.

The Justice Department agencies involved in PSP are: the United States Attorneys’ Offices; the Office of Justice Programs; the FBI; the ATF; the U.S. Marshals Service; the Drug Enforcement Administration; the Office on Violence Against Women; and the Office of Community Oriented Policing.

For more information about additional PSP sites, their designations and DOJ’s work to reduce violent crime and enhance public safety, visit https://www.nationalpublicsafetypartnership.org/

Defendants required Cambodian victim to work long hours for minimal pay both in their home and at their business in Texas to repay purported debt

Tyno Keo, 38, and, Phearom Lay, 34, of Nacogdoches, Texas, were sentenced yesterday in federal court in Beaumont, Texas, after previously pleading guilty to alien harboring for financial gain, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Joseph D. Brown of the Eastern District of Texas, and Special Agent in Charge Eric Jackson of the FBI in Dallas.

U.S. District Court Judge Ron Clark for the Eastern District of Texas sentenced Defendant Keo to six months incarceration and Defendant Lay to six months incarceration, followed by two years of supervised release. Judge Clark also ordered the defendants to pay $5,000 each in fines and $41,024.31 in joint restitution.

According to court documents, between September 2012 and May 2013, the defendants harbored the victim and required her to work long hours for little pay performing childcare, cleaning their home, and as an employee at their business, the Donut Palace. The scheme started in Cambodia, where Defendant Lay’s sister owed the defendants $50,000 for shared family medical expenses. To satisfy her debt, Lay’s sister arranged for the victim to obtain a temporary tourist visa and travel from Cambodia to the United States to work for the defendants. As a result, the $50,000 debt was transferred to the victim. Once the victim arrived in the United States, the defendants took possession of her passport and visa, and continued to harbor and employ her after her visa expired in December 2012. The defendants paid the victim $1,000 a month for her labor and withheld a portion of it to repay the purported $50,000 debt.

“The defendants violated immigration laws and exploited a vulnerable individual who lacked immigration status, requiring her to work long hours for little pay,” said Acting Assistant Attorney General Gore of the Civil Rights Division. “This Justice Department will not tolerate this type of immigration and labor exploitation, and is committed to aggressively pursuing and prosecuting individuals who engage in such crimes.”

“These types of crimes happen more than people know,” said U.S. Attorney Joseph Brown. “There are populations that are vulnerable to this type of exploitation, and it is a good thing that federal law enforcement is making people who engage in this conduct aware that the laws against it will be enforced.”

“We need to bring these types of crimes out of the shadows of darkness and resolve it from not only a law enforcement concern, but identify the community’s role in stopping such a heinous crime,” said FBI Special Agent in Charge Eric Jackson. 

This case was investigated by the FBI with assistance from the Department of Labor’s Wage and Hour Division. The case is being prosecuted by Assistant U.S. Attorney Lauren Gaston of the Eastern District of Texas, and William E. Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.

A federal court in Atlanta, Georgia entered a permanent injunction against Marjorie St. Jean and MarjorieStjeanLLC, barring them from preparing federal tax returns for others and owning or operating a tax preparation business, the Justice Department announced today. The court also ordered that St. Jean and MarjorieStjeanLLC disgorge $367,346.14, representing the ill-gotten gains that they received for the preparation of tax returns making false claims. The orders were signed by Judge Eleanor L. Ross of the U.S. District Court for the Northern District of Georgia. 

The Earned Income Tax Credit (EITC) is a refundable tax credit available to certain low-income working people. In this case, the court found that St. Jean and MarjorieStjeanLLC, an entity owned by St. Jean through which St. Jean operates tax preparation stores, prepared tax returns that included fraudulent claims for the EITC, often based on bogus dependents, fabricated business income and expenses, and/or false filing status. The court also determined that St. Jean and MarjorieStjeanLLC systematically and routinely prepared tax returns that falsely claimed: (1) Fuel Tax Credits; (2) Household Help income; (3) unreimbursed employee business expenses; and (4) self-employed business income and/or expenses. The court concluded that injunctive relief and an order requiring that St. Jean and MarjorieStjeanLLC disgorge the ill-gotten gains that they received for the preparation of tax returns making such false claims was appropriate.

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 California man who falsely told investors that he was a billionaire who could access certain financing, including hundreds of millions in cash in an overseas bank account, in exchange for up-front fees was sentenced today in federal court in Denver, Colorado to 70 months in prison.

Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Inspector in Charge Craig Goldberg of the U.S. Postal Inspection Service’s Chicago Division and Acting Inspector in Charge Kevin Rho of the U.S. Postal Inspection Service’s Denver Division made the announcement.

Kenneth Brewington, 55, of Corona, California, was sentenced by U.S. District Judge Philip A. Brimmer of the District of Colorado, who also ordered Brewington to serve three years of supervised release and to pay restitution in the amount of $563,526.78.

Brewington was convicted on May 18, following a two-week jury trial, of one count of conspiracy to commit mail and wire fraud, one count of mail fraud, five counts of wire fraud, one count of conspiracy to commit money laundering, one count of laundering monetary instruments, and two counts of engaging in monetary transactions in property derived from specified unlawful activity.

According to evidence presented at trial, beginning in approximately 2009, Brewington told victims that he required millions of dollars in supposed fees in order to access his purported extraordinary wealth abroad, which in turn could be used for financing.  During the scheme, Brewington and his coconspirators sold promissory notes to victims, including through a financial-services marketing company based in Denver called Compass Financial Solutions (CFS).  Brewington and his coconspirators falsely represented to their victims that their money would be used to pay for, among other things, bank transaction fees and tax penalties to the IRS.  To conceal the nature of their scheme, Brewington and his coconspirators told victims to wire their funds into an attorney-trust account.  The funds from that account, however, were then sent to Brewington and his coconspirators and spent on, among other things, repayments to other investors and personal expenses.  Brewington was not, in fact, wealthy and was instead struggling to pay his personal debts, the evidence showed. 

The evidence presented at trial showed that Brewington’s victims lost over $3 million to his fraud scheme. 

The former CEO of CFS, Brian G. Elrod, 59, of Lakewood, Colorado, and the company’s former corporate counsel, William E. Dawn, 80, of Denver, Colorado, previously pleaded guilty for their roles in the scheme.  Elrod was sentenced to serve 41 months in prison, followed by three years of supervised release, and ordered to pay restitution in the amount of $2,440,051.29.  Dawn was sentenced to time served and ordered to pay restitution in the amount of $366,752.01.

The investigation was led by the U.S. Postal Inspection Service.  Trial Attorneys Anna G. Kaminska, Kyle C. Hankey and Jennifer G. Ballantyne and Assistant Chief Henry P. Van Dyck of the Criminal Division’s Fraud Section prosecuted the case.  The U.S. Attorney’s Office for the District of Colorado and the Securities and Exchange Commission also provided substantial assistance in this matter.

A federal grand jury returned an indictment against a real estate company, a realtor, and his accountant for participating in a long-running conspiracy to defraud companies, including financial institutions, in connection with foreclosed properties in the Minneapolis area and elsewhere, the Department of Justice announced.

The indictment, filed on August 15, was unsealed today in the U.S. District Court for the District of Minnesota in Minneapolis.  Detloff Marketing and Asset Management Inc., Jeffery J. Detloff, and Lori K. Detloff are charged with conspiring to commit mail fraud and wire fraud affecting financial institutions, from in or about September 2007 and continuing through in or about June 2015.  Jeffery Detloff, a realtor who sold and managed foreclosed Minneapolis properties on behalf of victim companies worked alongside his wife, Lori Detloff, an accountant for Jeffery Detloff and associated companies, in committing the fraud.  The Detloffs conducted their real estate business through Detloff Marketing.  In addition to the conspiracy charge, the indictment includes four counts of wire fraud and four counts of mail fraud.

According to the indictment, the Detloffs devised a scheme requiring repair contractors to pay the Detloffs kickbacks.  In return, Jeffery Detloff used his position as a realtor for the victim companies to steer housing repair contracts to contractors who paid the kickbacks.  The contractors paid kickbacks to the Detloffs through Detloff Marketing.  The indictment further alleges that Jeffery Detloff procured and submitted sham bids as part of the scheme to defraud the victim companies.  One housing repair contractor has already pleaded guilty in connection with this investigation.

“This indictment affirms the Antitrust Division’s commitment to protecting the American housing market from fraud,” said Assistant Attorney Makan Delrahim of the Department of Justice’s Antitrust Division.  “We will continue to work with our law enforcement partners to protect the integrity of the competitive process.”

“As alleged, the defendants created a scheme to siphon as much money as they could from these properties, no matter the method, no matter the victim," said FBI Special Agent in Charge Jill Sanborn of the Minneapolis Division. “These scams victimize all of us, and the FBI and our law enforcement partners will continue to unravel these schemes and hold accountable anyone found responsible for defrauding the system.”

This is the second case involving fraud and kickbacks relating to repair contracts for properties in the Minneapolis area owned by financial institutions.  The maximum penalty for wire fraud affecting a financial institution, mail fraud affecting a financial institution, and conspiracy to commit mail and wire fraud affecting a financial institution is 30 years of imprisonment and a fine of $1,000,000.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The charges announced today are the result of a federal investigation of housing repair contracts in the Minneapolis area.  The investigation is being conducted by the Antitrust Division’s Chicago Office and the FBI’s Minneapolis Division.  

Marlonn Hicks, 31, of Crown Point, Indiana, was sentenced today to 15 years in prison, to be followed by 3 years of supervised release, for distributing information regarding the manufacture and use of explosives, with the intent that the information be used for and in furtherance of a crime of violence.

The sentence was announced by Assistant Attorney General for National Security John C. Demers, U.S. Attorney Thomas L. Kirsch II for the Northern District of Indiana and Special Agent in Charge Grant Mendenhall of the FBI’s Indianapolis Division.  The sentence was issued by U.S. District Court Judge Joseph S. Van Bokkelen.

“The Department of Justice is committed to investigating and prosecuting terrorist threats against our homeland,” said Assistant Attorney General Demers.  “The defendant plotted to conduct an attack on U.S. soil and, with today’s sentence, he is being held accountable for his actions.  I applaud the efforts of the agents and prosecutors to achieve this successful outcome.  Their work will ensure that the actions of the defendant, inspired by evil, will serve only as a cautionary tale for other would-be terrorists.”

“This exemplifies the Government’s commitment to prevent terrorism,” said U.S. Attorney Kirsch.  “Rather than mourning the tragic attacks in Orlando, Hicks was inspired  to try to commit a terror  attack to kill innocent victims in the United States.  My Office, working with the FBI and the National Security Division, quickly and efficiently eliminated the threat to public safety created by Mr. Hicks’ illegal activities.”

“The online communications by Mr. Hicks drew swift attention from our agents, who had identified and monitored him early in his path to radicalization,” said Special Agent in Charge Mendenhall.  “As this radicalization deepened,  the FBI continued to monitor Mr. Hicks’ activity and took action to mitigate any threats ensuring the public’s safety.”

According to the documents in this case, Hicks rapidly transformed from a vocal online supporter of the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, to someone planning a terrorist act. 

Within days of the Orlando, Florida Pulse Nightclub terrorist attack, Hicks was inspired to commit an act of terrorism and kill innocent civilians.  On June 21, 2016, nine days after the Pulse massacre, Hicks discussed “getting busy” with a FBI source who Hicks believed was an ISIS supporter.  Hicks sent this source two manuals on how to manufacture and use explosives and poisons and continued to discuss with this FBI source possible terror attacks.  Hicks made his motivation for the planned attacks clear, exclaiming that since the FBI and similar government personnel “have shut the door now  [on his ability to travel to ISIS controlled territory and fight there]  I’m gonna open the door to hell for them.”  As he began to develop an attack plan, in addition to sending the above referenced manuals, he discussed coordinating attacks to create  “more of an audience.”  Hicks also discussed how to obtain firearms and practice with them.  Hicks clearly communicated to multiple sources and during his post-arrest interview that he wanted everyone to know the attacks were carried out in the name of ISIS. 

During FBI surveillance, Hicks warned one of the FBI sources to “be careful the boys was just following me” referring to then ongoing FBI surveillance.  During a message exchange with the FBI source Hicks said he was “strapped,” showed a picture of his firearm, and said “if they had me on anything I’d already be dead cause in Shaa Allah [translated as “god willing”] I ain’t going to jail.”  Hicks was arrested on federal charges without incident in July 2016 and has remained in federal custody since his arrest. 

The case was investigated by the FBI’s Indianapolis Division and the Indianapolis Joint Terrorism Task Force.  The case is being prosecuted by the National Security Division’s Counterterrorism Section and the U.S. Attorney’s Office of the Northern District of Indiana.

A former Cincinnati, Ohio resident was sentenced today to 24 months in prison for tax and structuring crimes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to documents and information provided to the court, Hugo Santamaria pleaded guilty in August 2017 to structuring cash transactions to avoid currency transactions reports and conspiring to defraud the United States. Beginning in 2006, Santamaria owned and operated multiple demolition companies and conspired with his business partner in those companies to conceal income from the Internal Revenue Service (IRS) and evade their personal income taxes.  In order to further his scheme, Santamaria engaged in acts of evasion such as opening bank accounts for his co-conspirator to hide income and serving as a nominee for his co-conspirator’s businesses.  Santamaria also wrote, signed, and cashed numerous checks and made cash withdrawals in amounts less than $10,000 on consecutive days to evade bank-reporting requirements.    

Santamaria and his co-conspirator also paid workers in cash and failed to withhold and pay over any payroll taxes.  Santamaria admitted to paying himself a weekly salary from company bank accounts, and paying personal expenses including food, lodging, clothing, gym memberships, and tuition for private school out of the business bank accounts, all in an effort to avoid paying personal income taxes.  Santamaria has not filed a personal tax return since 2007.

In addition to the term of imprisonment imposed, U.S. District Judge Timothy Black ordered Santamaria to serve three years of supervised release and to pay $26,213 in restitution to the IRS.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Richard M. Rolwing of the Tax Division, who prosecuted the case. 

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

The Court of Appeals for the Eighth Circuit issued an opinion yesterday reversing a Tax Court decision that had rejected the Commissioner’s valuation method in a closely watched transfer-pricing case, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and Deputy Assistant Attorney General Travis A. Greaves of the Justice Department’s Tax Division. 

In Medtronic, Inc. & Consolidated Subsidiaries v. Commissioner, No. 17-1866, the Eighth Circuit held that the Tax Court had rejected the Commissioner’s transfer-pricing method, and adopted that of the taxpayer, without first engaging in the analysis required under Treasury’s transfer-pricing regulations.  Because the Tax Court failed to make the necessary factual findings under those regulations, the Eighth Circuit was unable to determine whether the court “applied the best transfer pricing method for calculating an arm’s length result or whether it made proper adjustments under its chosen method.”  Accordingly, it vacated the Tax Court’s order and remanded the case for further consideration by the Tax Court. 

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

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

Good afternoon.  And thank you Senator Sullivan for that gracious introduction.  It’s a pleasure to be here in the great State of Alaska to participate in the Alaska Wellness Summit 2.0.

I also want to thank Senator Sullivan for his leadership in convening this important event, along with everyone whose hard work went into organizing it.

Senator Sullivan is a long-time public servant and former Attorney General of Alaska, and I know he has a great appreciation for our men and women in law enforcement.  

It is also a pleasure to be here with my friend and colleague, U.S. Attorney Bryan Schroder, who is doing a tremendous job leading the U.S. Attorney’s Office for the District of Alaska.  

U.S. Attorney Schroder and I have worked together on violent crime issues and I applaud his leadership in Alaska’s law enforcement community. 

As this event recognizes, crime—especially violent crime—remains a significant problem throughout our country, including here in Alaska.

We also face an ongoing crisis involving opioids and other dangerous drugs.  

We have violent gangs terrorizing communities across our country.

Criminals in the United States and overseas are targeting Americans in financial fraud schemes that destroy people’s hard earned savings, often taking a particular toll on our seniors.

Cyber criminals are stealing our private information, hacking into our online accounts, and stealing intellectual property from our businesses.

And criminals are coming up with new schemes every day to steal taxpayer dollars from our federal health care programs, like Medicare, Medicaid, and the TRICARE program that provides healthcare to our military families.

But we are making progress.

Under the leadership of President Trump and Attorney General Sessions, we are taking an all-hands approach to law enforcement.

Last June, Attorney General Sessions announced the largest surge in federal prosecutors in decades.  Across the country, we are hiring more federal prosecutors, including right here in Alaska.

In the Criminal Division at the Justice Department, where I work, we recently marked a particularly important milestone—our Assistant Attorney General Brian Benczkowski, was just confirmed by the U.S. Senate a few weeks ago.  

Under his leadership, we will continue the Division’s commitment to the rule of law and protecting our citizens, working more closely than ever with our federal, state, and local law enforcement partners.

Partners like the Coast Guard, which under Admiral Shultz is our primary defense to drug smuggling on the high seas and which works closely with DOJ’s Narcotic and Dangerous Drugs Section.

DOJ is working with State Attorneys General, like Jahna Lindemuth, not only to investigate and prosecute cases, but also to educate the public and prevent crime through programs such as our Elder Justice Initiative.  Under that initiative, which was announced by Attorney General Sessions in February, we now have an Elder Justice Coordinator in each of our 93 U.S. Attorney’s Offices, including here in Alaska.

I know this is a particularly important issue for U.S. Attorney Schroder as well, who has made it a priority to prosecute elder fraud cases, working together with FBI, the U.S. Postal Inspection Service, and the State of Alaska’s Office of Elder Fraud and Assistance.

Just this past December, his office secured a 10-year sentence against a Washington State man who defrauded Alaskans out of approximately 2.7 million dollars as part of an advance-fee scheme that preyed upon the sick and elderly.

In connection with the focus on elder justice that I just mentioned, this February Attorney General Sessions announced the coordination of a nationwide elder fraud sweep that involved approximately 200 criminal defendants who were engaged in a variety of fraud schemes, ranging from mass mailing to telemarketing and investment scams, targeting seniors in Alaska and around the nation.

In my current role as Deputy Assistant Attorney General in the Department’s Criminal Division, I am tasked with overseeing the Organized Crime and Gang Section.  I’m in a position to see all of the great work that our 700 federal prosecutors in the Criminal Division are doing each day to protect the American people across the country, often with prosecutors in U.S. Attorney’s Offices, and with federal, state and local law enforcement, to bring violent gang members to justice—members of gangs like MS-13.

Fighting violent crime is a top priority of this Attorney General and this Administration—and I know it’s a priority for all of our citizens, and particularly for the people of Alaska.  Between 2014 and 2016, the national violent crime rate increased by around seven percent, and the murder rate went up by roughly 20 percent.  As of the most recent FBI statistics, in 2016, Alaska had the highest rate of violent crime per capita of any state at approximately 800 offenses per 100,000 persons.

Under U.S. Attorney Schroder, the U.S. Attorney’s Office here has doubled down in its efforts against violent crime.  Bottom line is that Bryan’s office went from 154 violent crime cases filed in calendar year 2016, to 186 cases filed in calendar year 2017.  That’s a 20.7 percent increase.  The number of defendants charged went up even more, from 198 in calendar year 2016, to 243 in calendar year 2017, a 22.7 percent increase.  

In October last year, he announced the Office’s Anti-Violent Crime Strategy, which brings together city, state, and federal authorities to combat rising crime in Alaska.  He did it as part of the Attorney General’s October 2017 renewal of “Project Safe Neighborhoods,” a nationwide program that partners federal, state, and local law enforcement agencies.

A key part of the anti-violent crime strategy here in Alaska involves greater collaboration with local law enforcement.  Here in Anchorage, the FBI has assigned a Special Agent to work full time with the Anchorage Police Department’s homicide unit.

The Anchorage Police Department is also using the Integrated Ballistic Identification System, a national system hosted by the ATF that allows local law enforcement to quickly enter ballistics information and search against evidence from their jurisdiction, neighboring ones, and others across the country.

I’d like to switch gears now and address a few of the other significant threats to public safety and public health that Attorney General Sessions has made a priority for federal prosecutors.

Health Care Fraud.

We’re working to protect the federal health care system that benefits Alaskans and all Americans.  The success of the Department’s approach to health care fraud was on full display a few weeks ago when Attorney General Sessions and U.S. Department of Health and Human Services (HHS) Secretary Azar announced the largest ever health care fraud enforcement action in history.

This year’s takedown involved charges against 601 defendants across 58 federal districts, including 165 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving more than $2 billion in false billings.  These are cases that impact every American taxpayer.  When a criminal in Miami steals money from Medicare, it impacts taxpayers in Anchorage.

As a result of our focus on health care fraud, in Miami and Detroit, we have seen a 20 percent drop in Medicare Part A and B billings.  That amounts to over $2 billion in savings for all taxpayers annually.

Just as important as the fraud charges, 162 defendants, including 57 medical professionals, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.

The opioid epidemic has hit Alaska hard.

Admissions for treatment of opioid abuse increased almost 60 percent in 2014.  Recent data show that over 200,000 Alaskans out of a state population of around 740,000, obtained prescriptions Schedule 2 controlled substances, including opioids—that’s 27 percent of the population.  According to the National Institute on Drug Abuse, approximately 80 percent of heroin users reported starting their addiction with these kinds of prescription opioid painkillers.   

While the majority of those opioids were initially prescribed in good faith by doctors trying to do right by their patients, the data indicate that there is unfortunately no shortage of medical professionals only too willing to prescribe opioids for any reason, or for no reason all—and that’s a crime.  

By investigating and prosecuting corrupt doctors and pharmacists who are illegally prescribing and distributing prescription opioids, we can stem the flow of these dangerous narcotics onto our streets.  As we reduce the flow of prescription opioids, we seek to prevent the next generation of addicts.

We are also attacking other cases involving opioids, including by charging suppliers in China who are manufacturing deadly fentanyl that is being sold over the internet to people in the United States.

And we continue our work in dismantling drug trafficking organizations and cartels that continue to flood our streets with deadly poisons here and in the lower 48.

On the cyber and child exploitation front, in April of this year, the Department announced charges against seven individuals and the seizure of Backpage.com, the internet’s leading forum for prostitution ads, including ads advertising the prostitution of children.  Backpage was allegedly used as a platform that allowed human traffickers to thrive.

Also this year, prosecutors in our Organized Crime and Gang section charged 36 cybercriminals from the United States and 17 countries on five continents who participated in a transnational cyber enterprise called “Infraud.” 

Members of the Infraud Organization used the forum to coordinate and conduct online criminal activities that included identity theft, bank fraud, wire fraud and computer crimes, resulting in more than $530 million in losses to financial institutions, merchants, and private individuals in all 50 states.

Our prosecutors work day and night, across the country, side by side with our law enforcement partners, as we tackle these problems that are so important to the Department, the people of Alaska, and the nation.

While many of our investigations are taken out of the public eye, know that we are here, we are dedicated, and we will not waiver in our mission of protecting the American public.  Our goal is simple—we will use every lawful tool available to ensure that our citizens, our businesses, and our country can thrive, without fear of crime.

As federal prosecutors, we are not here to fill up the prisons or manage crime — that’s not our goal.  Our goal is to reduce crime — to bend that trend curve downward in Alaska and across the nation.

Thank you for your time today.  I look forward to the remainder of the program.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant DAVID MICHAEL SARE, was sentenced on August 16 in the District Court of Guam to ten years and one month imprisonment. SARE, age 42, from Corona, California, was convicted of Conspiracy to Distribute Fifty (50) grams or more of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 846. SARE had an extensive criminal history including previous convictions for possessing drugs while armed, burglary and receiving stolen property. The Court acknowledged SARE’s statements that his drug addiction had contributed to his long criminal history. The Court also ordered SARE to pay a mandatory $100 assessment fee and serve five years of supervised release after his term of imprisonment. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.

          From March 1, 2016 until August 15, 2016, in Guam and in California, SARE conspired with co- defendant Katlyn Scully to distribute methamphetamine. SARE assisted Scully in procuring the methamphetamine, and prepared the drug so that Scully could carry it into Guam inside of her body.  SARE also assisted Scully in arranging a trip to Guam to deliver the drugs to co-defendant Timothy Duenas who was to distribute the methamphetamine on island.

On August 15, 2016, SARE and Scully arrived on Guam via United Airlines Flight #201 from California, by way of Hawaii. Guam Customs and Quarantine Agency Officers were suspicious of their behavior and sent them through secondary customs inspection where two condoms containing methamphetamine were found in their luggage. Scully also had additional condoms containing methamphetamine seized from her purse, and had additional methamphetamine inside of her body cavities.  The total amount of drugs seized was 407.3 grams of ice, 98% pure, with a street value of over $200,000.

          The case was investigated by the Drug Enforcement Administration, Guam Customs and Quarantine Agency and the Department of Homeland Security, Homeland Security Investigations. Belinda Alcantara, an Assistant United States Attorney for the District of Guam, represented the government during sentencing proceedings.

United States Attorney Trent Shores announced the sentencing of Jennifer Elizabeth Boyce and Christina Ann Dempsey for their participation in a conspiracy to distribute oxycodone resulting in death. Today, United States District Judge John E. Dowdell sentenced Christina Ann Dempsey to eight years imprisonment for her role in supplying 80mg oxycodone pills (Oxy80s) to Boyce, who then sold the Oxy80s to customers for profit.  Yesterday, Judge Dowdell sentenced Boyce to ten years imprisonment for her role in selling the Oxy80s she received from Dempsey to Jennifer Blake McNulty, who subsequently overdosed and died on October 24, 2014.

Both Dempsey and Boyce accepted responsibility, cooperated fully in the federal investigation, and provided sworn testimony against themselves and others before the filing of federal charges.  The third conspirator is Michael Allen Miers, whose case is still pending before Judge Dowdell. 

U.S. Attorney Shores stated, “Attorney General Jeff Sessions directed United States Attorneys to consider every lawful tool at our disposal to combat the deadly opioid epidemic. We have taken that direction to heart by using all available criminal and civil remedies to stop opioid abuse and distribution in the Northern District of Oklahoma. We are pleased with the sentences in these cases. Illegal opioid distributors must be held accountable in courts of law. It is a matter of saving lives.”

In commenting about the extent of the opioid epidemic nationwide, U.S. Attorney Shores recounted the staggering statistics:

• Since 2009, drug overdose deaths have outpaced traffic accidents as the leading cause of injury death in the United States.
• Nearly 64,000 Americans died of drug overdoses in 2016–more drug related deaths in one year when compared to total number of combat losses during the entire Vietnam War.
• Emergency Department visits for opioid overdoses rose 30% in all parts of the country from July of 2016 through September of 2017.
• Life expectancy in the United States dropped for two years in a row after more than a century of steady progress.
• The number of children admitted to hospitals for opioid overdose has nearly doubled since 2004, according to a study recently published in the journal Pediatrics.

The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Pryor Police Department, and the Mayes County District Attorney’s Office investigated the case.  Assistant U.S. Attorney Timothy L. Faerber, the Deputy Chief of the Criminal Division, and Brian Surber, the First Assistant District Attorney for Mayes County and a Special Assistant U.S. Attorney, prosecuted the case.

U.S. Attorney Shores observed, “Collaborative law enforcement is good law enforcement. I want to express my deep appreciation and profound thanks to all the women and men of law enforcement–federal, state, and local–for working together on this investigation. The Mayes County District Attorney’s Office has also been a great partner. The work they did on this case was essential.”

The Department of Justice yesterday filed a brief in opposition to a preliminary injunction in the State of Washington v. U.S. Department of State, a case about 3D printed guns.

After the filing, Attorney General Jeff Sessions issued the following statement:

"Under federal law, it is illegal to manufacture or possess plastic firearms that are undetectable. Violation of this law is punishable by up to five years in prison. Such firearms present a significant risk to public safety, and the Department of Justice will use every available tool to vigorously enforce this prohibition. We will work with federal, state and local law enforcement to identify any possible cases for prosecution.

"We will not stand for the evasion, especially the flouting, of current law and will take action to ensure that individuals who violate the law by making plastic firearms and rendering them undetectable, will be prosecuted to the fullest extent."

Please find the Justice Department's brief here.

The Department of Justice and U.S. Drug Enforcement Administration (DEA) have proposed a reduction for controlled substances that may be manufactured in the U.S. next year. Consistent with President Trump’s “Safe Prescribing Plan” that seeks to “cut nationwide opioid prescription fills by one-third within three years,” the proposal decreases manufacturing quotas for the most six frequently misused opioids for 2019 by an average ten percent as compared to the 2018 amount. The Notice of Proposed Rulemaking (NPRM) marks the third straight year of proposed reductions, which help reduce the amount of drugs potentially diverted for trafficking and used to facilitate addiction.

On July 11, 2018, the Justice Department announced that DEA was issuing a final rule amending its regulations to improve the agency’s ability consider the likelihood of whether a drug can be diverted for abuse when it sets annual opioid production limits. The final rule also promotes greater involvement from state attorneys general, and today’s proposed reduction will be sent to those offices.

In setting the aggregate production quote (APQ), DEA considers data from many sources, including estimates of the legitimate medical need from the Food and Drug Administration; estimates of retail consumption based on prescriptions dispensed; manufacturers’ disposition history and forecasts; data from DEA’s own internal system for tracking controlled substance transactions; and past quota histories.

The DEA has proposed to reduce more commonly prescribed schedule II opioids, including oxycodone, hydrocodone, oxymorphone, hydromorphone, morphine, and fentanyl: (see chart attached below)

Ultimately, revised limits will encourage vigilance on the part of opioid manufacturers, help DEA respond to the changing drug threat environment, and protect the American people from potential addictive drugs while ensuring that the country has enough opioids for legitimate medical, scientific, research, and industrial needs.

"The opioid epidemic that we are facing today is the worst drug crisis in American history," Attorney General Jeff Sessions said. "President Trump has set the ambitious goal of reducing opioid prescription rates by one-third in three years. We embrace that goal and are resolutely committed to reaching it. According to the National Prescription Audit, we have already made significant progress in reducing prescription rates over the past year. Cutting opioid production quotas by an average of ten percent next year will help us continue that progress and make it harder to divert these drugs for abuse. The American people can be confident that federal law enforcement and the Trump administration are taking action to protect them from dangerous drugs.  These smarter limits bring us one big step closer to President Trump's goal of finally ending this unprecedented crisis. I congratulate Acting Administrator Uttam Dhillon and his team for taking action.” 

“We’ve lost too many lives to the opioid epidemic and families and communities suffer tragic consequences every day,” said DEA Acting Administrator Uttam Dhillon. “This significant drop in prescriptions by doctors and DEA’s production quota adjustment will continue to reduce the amount of drugs available for illicit diversion and abuse while ensuring that patients will continue to have access to proper medicine.”

Once the aggregate quota is set, DEA allocates individual manufacturing and procurement quotas to those manufacturers that apply for them. DEA may revise a company’s quota at any time during the year if change is warranted due to increased or decreased sales or exports, new manufacturers entering the market, new product development, or product recalls. 

When Congress passed the Controlled Substances Act, the quota system was intended to reduce or eliminate diversion from “legitimate channels of trade” by controlling the quantities of the basic ingredients needed for the manufacture of controlled substances.

The Proposed Aggregate Production Quotas for schedule I and II controlled substances published in the Federal Register reflects the total amount of controlled substances necessary to meet the country’s medical, scientific, research, industrial, and export needs for the year and for the establishment and maintenance of reserve stocks. DEA establishes an APQ for more than 250 schedule I and II controlled substances annually. 

In 2016, the Centers for Disease Control and Prevention issued guidelines to practitioners recommending a reduction in the prescribing of opioid medications for chronic pain. DEA and its federal partners have increased efforts in the last several years to educate practitioners, pharmacists, manufacturers, distributors, and the public about the dangers associated with the misuse of opioid medications and the importance of proper prescribing.

The Executive Office for Immigration Review (EOIR) on Friday held the investiture of 23 new immigration judges, which increases the total number of immigration judges to 351. Since the end of January 2017, 82 immigration judges have been sworn in, and EOIR anticipates three additional hiring classes this fall that will total at least 75 more immigration judges.

As part of a series of common-sense reforms to the immigration court system, Attorney General Jeff Sessions last year introduced a “streamlined hiring plan” emphasizing clear deadlines for ensuring immigration judge candidates move efficiently through the hiring process. Due to this effort, some of the immigration judges sworn-in on Friday were hired in approximately 266 days, down from an average of 742 days just one year ago.

The investiture was announced by EOIR Director James McHenry, and Principal Deputy Chief Immigration Judge Christopher A. Santoro presided over the investiture during a ceremony held Aug. 10, 2018, at the Department of Justice’s Great Hall in Washington, D.C.

“Hiring more immigration judges and reducing the time it takes to hire a judge are two key elements reducing the pending caseload of immigration court cases,” said Attorney General Jeff Sessions. “EOIR Director James McHenry should be commended for making tremendous progress on both fronts since he became Acting Director in May 2017. Under his leadership, we are making great strides toward having an immigration court system that serves the national interest.”

After a thorough application process, Attorney General Jeff Sessions appointed Stuart D. Alcorn, Robert A. Fellrath, Kathleen French, Daniel B. Gilbert, Lena Golovnin, Cynthia Gordon, Nathan L. Herbert, Howard C. Hom, Natalie B. Huddleston, David C. Koelsch, W. Scott Laragy, Zakia Mahasa, Michael G. McFarland, Patrick M. McKenna, Nancy E. Miller, Angela Munson, Jonathan W. Owens, Kaarina Salovaara, Eric J. Tijerina, Nelson A. Vargas-Padilla, Michael G. Walleisa, George J. Ward Jr., and Jason R. Waterloo to their new positions.

Biographical information about each new judge is found in a notice issued by EOIR.

The Department of Justice filed a lawsuit against the Allegan Area Educational Service Agency (AAESA), a government agency providing support, cooperative educational programs, and services to local school districts in Allegan County, Michigan. The lawsuit alleges that AAESA subjected two female teachers to sexual harassment and a hostile work environment in violation of Title VII of the Civil Rights Act of 1964. Title VII is a federal statute that prohibits employment discrimination on the basis of sex, race, color, national origin, and religion. 

The Department’s complaint, filed today in the United States District Court for the Western District of Michigan, alleges that AAESA discriminated against two female teachers when they were regularly subjected to sexual harassment in the workplace by their supervisor, a former principal at the school where they all worked. According to the complaint, the sexual harassment of the teachers included verbal abuse as well as unwanted physical touching that escalated to physical assaults. The principal was later convicted of criminal assault of the teachers. The complaint alleges that AAESA did not take reasonable steps to prevent his unlawful acts.

“All Americans are entitled to a workplace that is free of unlawful harassment based on sex,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The types of discriminatory acts alleged in this lawsuit, resulting in these public sector employees suffering years of verbal and emotional abuse and ending with physical assaults, can be prevented only when employers cultivate workplace environments where workers know that such misconduct will not be tolerated.”

Both teachers filed charges of discrimination with the U.S. Equal Employment Opportunity Commission (EEOC). The EEOC investigated the charges and found that there was a reasonable basis to believe that violations of Title VII had occurred. After unsuccessful conciliation efforts by the EEOC, the charges were referred by the EEOC to the Justice Department. 

Through this lawsuit, the United States seeks monetary relief for each of the teachers and injunctive relief to require AAESA to develop and implement policies that would prevent sex discrimination and harassment in the future. 

Today’s lawsuit is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative announced in February 2018. The Initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach, and development of effective remedial measures to address and prevent future sex discrimination and harassment.

Attorneys assigned to the Employment Litigation Section of the Civil Rights Division represent the United States in this matter.

Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at https://www.justice.gov/crt

A federal grand jury in Paducah, Kentucky, returned a one-count indictment today charging James Eakes, a deputy jailer at the Fulton County Detention Center, with violating the civil rights of an inmate by assaulting him with a dangerous weapon.

The indictment alleges that on Aug. 14, 2016, Eakes willfully deprived an inmate of the right to be free from cruel and unusual punishment. Specifically, the indictment alleges that Eakes assaulted the inmate with a dangerous weapon, resulting in bodily injury to the inmate.

If convicted of the civil rights charge, Eakes faces a maximum term of imprisonment of 10 years.

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

The FBI conducted the investigation. Assistant United States Attorney Madison Sewell of the Western District of Kentucky and Trial Attorneys Sanjay Patel and Zachary Dembo of the Civil Rights Division are prosecuting the case.

The Attorney General’s Advisory Subcommittee on Native American Issues (NAIS) met in Tulsa, Oklahoma from August 13-15 to discuss crime reduction strategies in Indian Country, the Department of Justice announced today.  U.S. Attorney Trent S. Shores the Northern District of Oklahoma, who also serves as Chairman of the NAIS, and Principal Chief of the Muscogee (Creek) Nation James Floyd gave remarks.  On Tuesday, August 14, the NAIS visited and met with the Cherokee Nation in Tahlequah, Oklahoma.   

Fighting violent crime and combating the drug epidemic are two of Attorney General Jeff Sessions’s top priorities.  The Department is actively addressing violence against women and children in Indian country through partnerships with federal, tribal, state, and local law enforcement, investigating and prosecuting crimes, grant programs, training and technical assistance, and information sharing with tribes.  

Earlier this month, the Department announced the expansion of the Tribal Access Program (TAP), which provides federally recognized tribes with the ability to access and exchange data with the national crime information databases for both civil and criminal purposes.  The Department is accepting new applications for this program until October 1, 2018.  Interested tribes may apply by using this link: www.justice.gov/tribal/tribal-access-program-fy-2019-application.

Through TAP, tribes may enter information directly into federal databases.  So far, tribes have contributed nearly 600 sex offender registrations and over 550 sex offender check-ins; nearly 300 instances of data entry that would prohibit someone from being able to purchase a firearm; over 1,000 orders of protection entered or modified; and over 4,200 finger-print based record checks for civil purposes that include employment, tribal housing placement, and personnel/volunteers who have regular contact with or control over Indian children.

American Indian and Alaska Native people suffer from high rates of victimization in our nation.  Crimes range from domestic violence to sexual assault and to those devastated by the drug trade and the opioid epidemic.  In June, the Department announced it had set aside $110 million in a program to provide assistance to crime victims in tribal communities.  The FY 2018 Tribal Victim Services Set-Aside Program can be used to provide a wide range of victims’ services for victims of human trafficking, crime victimization related to the opioid and drug crisis, child abuse and neglect, domestic violence, homicide, and assault, among other crimes.

U.S. Attorneys’ Offices and law enforcement components are responsible for investigations, prosecutions, and victim services in the 49 judicial districts across the nation that include Indian country.  Federal prosecutors have primary criminal jurisdiction for 70 million acres of Indian lands.  That spans across about 200 Indian country territories.  Our law enforcement work requires strong partnerships with tribal law enforcement, the Bureau of Indian Affairs, and state and local law enforcement.  

Approximately 85 percent of the Department’s pending Indian country investigations relate to violent crime.  The most investigated crimes include child sexual abuse, violent assaults, and adult sexual assaults, followed by homicide, other forms of child abuse, drug, and property crimes.  Native women and girls suffer a high rate of violence, including murder.  The Centers for Disease Control and Prevention (CDC) reported that American Indian and Alaska Native women experienced some of the highest rates of homicide based on an analysis from 18 states.

The Department’s Office on Violence Against Women (OVW) has funded Tribal Special Assistant U.S. Attorneys (SAUSAs) to enhance prosecution of Indian country cases and strengthen relationships and cooperation between federal and tribal law enforcement.  OVW’s Tribal Governments Program enhances the ability of tribes to respond to violent crimes against Indian women, improve victim safety, and develop education and prevention strategies.  In fiscal year 2018, OVW funds for tribal governments and tribal nonprofits totaled nearly $56 million. 

The Department’s Office of Justice Programs, Bureau of Justice Assistance (BJA) has released the FY2018 Supporting Innovation: Field Initiated solicitation that focuses on several priorities including addressing innovative approaches to crime including violent crime associated with tribes and tribal members.   BJA anticipates that it will be supporting a range of strategies including assistance for tribal prosecutors to prosecute violent crimes such as murder and crime associated guns, gangs and drug activity as well as training for tribes on violent crime and prosecuting violent crimes.   In fiscal year 2018, BJA funds for tribal governments and tribal partners will total over $35 million dollars.  

Native American communities have been hit particularly hard by the Opioid and drug epidemic.  According to the CDC, American Indian and Alaska Native people had the highest drug overdose death rate in 2015.  In 2017, the Department awarded nearly $59 million in tribal grants to strengthen drug court programs.  The Bureau of Justice Assistance runs the Department’s Comprehensive Opioid Abuse Program, which aims to reduce opioid misuse and the number of overdose deaths. The program uses prescription drug monitoring to prevent the misuse and diversion of controlled substances.

Through its National Indian Country Training Program, the Department trains investigators and assists in the cross-deputization of tribal law enforcement.  Better investigations lead to better cases, more prosecutions, and more convictions, all of which increase public safety and confidence in law enforcement.

The NAIS is made up of U.S. Attorneys from across the United States whose districts contain Indian country or one or more federally recognized tribes.  The NAIS focuses exclusively on Indian country issues, both criminal and civil, and is responsible for making policy recommendations to the Attorney General regarding public safety and legal issues that affect tribal communities.