District Not Recorded

Today, on the one year anniversary of the Justice Department’s 2017 Hate Crimes Summit, the Department announced an update on hate crimes prosecutions under the Civil Rights Division’s Criminal Section. The Department is committed to enforcing federal hate crimes statutes, which allow the Department to prosecute certain crimes that are committed because of the actual or perceived race, color, religion, national origin, gender, sexual orientation, gender identity, or disability of any person. In recent years, the Department has ramped up its prosecutions of hate crimes and increased training of federal, state, and local law enforcement officers to ensure that hate crimes are identified and prosecuted to the fullest extent possible.

Over the past 10 years, the Department of Justice has charged more than 200 defendants with hate crimes offenses. The Matthew Shepard and James Byrd, Jr., Hate Crimes Prevention Act of 2009 (HCPA) provided a valuable new tool in this effort. The Department has used the HCPA to indict 88 defendants in 42 hate crimes cases with 64 convictions to date. In FY 2016, the Department charged 27 defendants in 18 cases, obtaining 16 convictions. Since January 2017, the Department has indicted 32 defendants involved in committing hate crimes and secured convictions of 32 defendants for hate crimes incidents.

“Individuals should be able to live their lives free from the threat of violence and discrimination, no matter who they are, what they believe, or how they worship,” said Acting Assistant Attorney General John Gore. “I am proud of the work that the Civil Rights Division has already accomplished, and we will continue to work diligently to bring to justice perpetrators of hate crimes across the country.”

Hate crimes prosecutions from January 2017 to present:

• Racial Hate Crimes
  • Eight indictments and 14 convictions
• Religious Hate Crimes
  • Eight indictments and seven convictions in cases involving arson or other physical attacks, or conspiracy or threats to commit such attacks against places of worship;
  • Seven indictments and five convictions in cases involving other hate crimes based on religion.
• Sexual Orientation Hate Crimes
  • Six indictments and six convictions
• Other (Gender Identity Hate Crimes)
  • One sentence;
  • One indictment, one conviction in state court with a federal prosecutor cross-designated as a state prosecutor.

Based on the FBI’s latest Uniform Crime Statistics Report, issued in November 2017 for calendar year 2016, there were 6,063 single-bias incidents reported involving 7,227 offenses, 7,509 victims, and 5,727 known offenders, and 58 multiple-bias incidents reported involving 94 offenses, 106 victims, and 43 known offenders.

The Department has created and launched a number of training and outreach programs in order to work with the network of U.S. Attorney’s Offices, local communities and organizations, and law enforcement to find, identify, investigate, and prosecute hate crimes cases all over the country. These programs include state and local law enforcement trainings, roundtable and panel discussions, stakeholder telephone conferences, and hate crime summits.

More information about the Justice Department’s hate crimes enforcement efforts can be found at https://www.justice.gov/crt/hate-crimes-0.

A former Chief Executive Officer (CEO) of a software company in Sterling, Virginia, was sentenced to 21 months in prison today for conspiring to defraud the government by failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.

According to court documents, Robert Lewis was the CEO of Enterworks, Inc., a software company in Sterling, Virginia.  From January 2011 to February 2013, Lewis conspired with Kristie McDonald, Enterworks’ Vice President of Finance and Administration, to defraud the United States by failing to pay over to the IRS more than $1.8 million in payroll taxes withheld from employee paychecks. 

As part of their scheme, Lewis and McDonald circumvented the company’s normal payroll and accounting procedures by paying some employees with manual paychecks.  The employees still received the correct pay after withholdings, but by bypassing the accounting system, Lewis and McDonald were able to hide the fact that the withholdings were not being paid over to the IRS.  The practical effect of their scheme was to conceal the company’s failing financial condition from its Board of Directors.  They also caused the company to file false quarterly employment tax returns with the IRS that underreported the amount of tax due. 

During this same period, Lewis and McDonald failed to remit the full amount of employee retirement contributions to the company’s retirement plan.  Through their actions, the company failed to transfer nearly $225,000 in voluntary employee retirement withholdings.  Lewis and McDonald used the misappropriated money to pay the operating expenses of the company, which included their own six figure salaries and salary raises for other employees.

In addition to the term of imprisonment, U.S. District Judge T.S. Ellis III ordered Lewis to serve three years of supervised release and to pay restitution in the amount of $1,812,706 million. 

McDonald was previously sentenced on June 22 to 15 months imprisonment to be followed by three years of supervised release and also ordered to pay restitution in the amount of $1,812,706 million.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger thanked agents of IRS Criminal Investigation and the Department of Labor who conducted the investigation, and Tax Division Trial Attorneys Kevin Schneider and Charles M. Edgar, Jr. and Assistant U.S. Attorney Ryan Faulconer, who are prosecuting the case.

A Newington, Connecticut, insurance salesman was sentenced to 70 months in prison for tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.   

Terry DiMartino was convicted after a jury trial in March 2016 of one count of corruptly interfering with the due administration of the internal revenue laws, two counts of filing false tax returns and five counts of willfully failing to file tax returns.  DiMartino was an insurance salesman for numerous insurance companies located in Connecticut and elsewhere.  Despite earning millions of dollars in insurance commissions over the last decade, DiMartino did not file accurate tax returns or pay the taxes owed.

According to the evidence presented at trial, DiMartino attempted to obstruct the IRS by mailing false documents to the IRS, including three false tax returns for the 2007 tax year, one of which requested a fraudulent $14 million refund.  He sent false and threatening correspondence to the IRS in an attempt to defeat the IRS’s assessment, collection and investigative efforts.  He submitted false and threatening correspondence to insurance companies that sought to cooperate with the IRS collection activities.  DiMartino also set up nominee entities that he used to divert his insurance commissions.  He used the nominees to hide and conceal assets to prevent the IRS from collecting on his tax liabilities.  DiMartino has not filed an accurate individual income tax return since the 1996 tax year.

In addition to the term of imprisonment, U.S. District Court Judge Alvin W. Thompson ordered DiMartino to serve one year of supervised release and to pay $658,547.62 in restitution to the IRS.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS-Criminal Investigation, who investigated the case, and Tax Division Trial Attorney Jason M. Scheff and former Tax Division Trial Attorney Erin B. Pulice, who prosecuted the case.  The Tax Division expressed gratitude to the U.S. Attorney’s Office for the District of Connecticut for their assistance in the investigation and prosecution of this case.

Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Alex M. Azar III, announced today the largest ever health care fraud enforcement action involving 601 charged 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.  Of those charged, 162 defendants, including 76 doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics.  Thirty state Medicaid Fraud Control Units also participated in today’s arrests.  In addition, HHS announced today that from July 2017 to the present, it has excluded 2,700 individuals from participation in Medicare, Medicaid, and all other Federal health care programs, which includes 587 providers excluded for conduct related to opioid diversion and abuse. 

Attorney General Sessions and Secretary Azar were joined in the announcement by Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Deputy Director David L. Bowdich of the FBI, Assistant Administrator John Martin of the Drug Enforcement Administration (DEA), Deputy Inspector General Gary Cantrell of the HHS Office of Inspector General (OIG), Deputy Chief Eric Hylton of IRS Criminal Investigation (CI), Centers for Medicare and Medicaid Services (CMS) Deputy Administrator and Director of the Center for Program Integrity Alec Alexander and Director Dermot F. O’Reilly of the Defense Criminal Investigative Service (DCIS).

Today’s enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and HHS-OIG.  In addition, the operation includes the participation of the DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and State Medicaid Fraud Control Units.  

The charges announced today aggressively target schemes billing Medicare, Medicaid, TRICARE (a health insurance program for members and veterans of the armed forces and their families), and private insurance companies for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries.  The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department.  According to the CDC, approximately 115 Americans die every day of an opioid-related overdose.   

“Health care fraud is a betrayal of vulnerable patients, and often it is theft from the taxpayer,” said Attorney General Sessions.  “In many cases, doctors, nurses, and pharmacists take advantage of people suffering from drug addiction in order to line their pockets. These are despicable crimes. That’s why this Department of Justice has taken historic new steps to go after fraudsters, including hiring more prosecutors and leveraging the power of data analytics. Today the Department of Justice is announcing the largest health care fraud enforcement action in American history.  This is the most fraud, the most defendants, and the most doctors ever charged in a single operation—and we have evidence that our ongoing work has stopped or prevented billions of dollars’ worth of fraud. I want to thank our fabulous partners with the FBI, DEA, our Health Care Fraud task forces, HHS, the Defense Criminal Investigative Service, IRS Criminal Investigation, Medicare, and especially the more than 1,000 federal, state, local, and tribal law enforcement officers from across America who made this possible. By every measure we are more effective at finding and prosecuting medical fraud than ever.”

“Every dollar recovered in this year’s operation represents not just a taxpayer’s hard-earned money—it’s a dollar that can go toward providing healthcare for Americans in need,” said HHS Secretary Azar.  “This year’s Takedown Day is a significant accomplishment for the American people, and every public servant involved should be proud of their work.”

According to court documents, the defendants allegedly participated in schemes to submit claims to Medicare, Medicaid, TRICARE, and private insurance companies for treatments that were medically unnecessary and often never provided.  In many cases, patient recruiters, beneficiaries and other co-conspirators were allegedly paid cash kickbacks in return for supplying beneficiary information to providers, so that the providers could then submit fraudulent bills to Medicare.  Collectively, the doctors, nurses, licensed medical professionals, health care company owners and others charged are accused of submitting a total of over $2 billion in fraudulent billings.  The number of medical professionals charged is particularly significant, because virtually every health care fraud scheme requires a corrupt medical professional to be involved in order for Medicare or Medicaid to pay the fraudulent claims.  Aggressively pursuing corrupt medical professionals not only has a deterrent effect on other medical professionals, but also ensures that their licenses can no longer be used to bilk the system.

“Healthcare fraud touches every corner of the United States and not only costs taxpayers money, but also can have deadly consequences,” said FBI Deputy Director Bowdich.  “Through investigations across the country, we have seen medical professionals putting greed above their patients’ well-being and trusted doctors fanning the flames of the opioid crisis.  I want to thank the agents, analysts and our law enforcement partners in every field office who work each and every day to stop these criminals and hold them accountable for their actions.”

“DEA is committed to ending the opioid crisis occurring in our communities and preventing prescription drug misuse,” said DEA Assistant Administrator Martin.  “DEA will continue to work with our partners every day to protect our citizens while ensuring that patients have adequate access to these critical medications.”

“This year’s operations, focusing on opioid-related schemes, spotlight the far-reaching impact of health care fraud,” said HHS Deputy Inspector General Cantrell.  “Such crimes threaten the vitally important Medicare and Medicaid programs and the beneficiaries they serve.  Though we have made significant progress in our fight against health care fraud; our efforts are not complete.  We will continue to work with our partners to protect the health and safety of millions of Americans.”

“It takes a special kind of person to prey on the sick and vulnerable as happened in many of these health care fraud schemes,” said Deputy Chief Hylton.  “Medical professionals and others callously placed individuals and vital healthcare services in harm’s way simply because of greed.  IRS-CI special agents continue to work side-by-side with other federal, state and local law enforcement officers to uncover these schemes and hold these criminals accountable for their actions.”

“CMS makes it a top priority to protect the health and safety of millions of beneficiaries who depend on vital federal healthcare programs,” said Alec Alexander, deputy administrator and director of the Center for Program Integrity.  “CMS’ Center for Program Integrity collaborates closely with our law enforcement partners to safeguard precious taxpayer dollars. Under Administrator Seema Verma, we will continue to strengthen this partnership with law enforcement in order to ensure the integrity and sustainability of these essential programs that serve millions of Americans.”

“Heath care fraud wounds our service members and veterans alike, as they rely upon and rightfully expect uncompromised care through the Department of Defense’s TRICARE Program,” said DCIS Director O’Reilly.  “Investigations that culminated in enforcement actions over the past several days underscore the steadfast commitment of the Defense Criminal Investigative Service and our investigative partners to vigorously investigate fraud impacting TRICARE.  We remain vigilant in our efforts to ensure the high standards of care our service members, military retirees, and their dependents deserve while safeguarding American taxpayer dollars.” 

The Medicare Fraud Strike Force operations are 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 for over $14 billion.

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For the Strike Force locations, in the Southern District of Florida, 124 defendants were charged with offenses relating to their participation in various fraud schemes involving over $337 million in false billings for services including home health care and pharmacy fraud.  In one case, an owner, medical director, and two employees of a sober living facility were charged with conspiracy to commit health care and wire fraud, substantive counts of health care fraud, and substantive counts of money laundering.  The indictment alleges a scheme that illegally recruited patients, paid kickbacks, and defrauded health care benefit programs for widespread fraudulent urine testing.  During the course of the fraudulent scheme, the facility submitted more than $106 million in claims for substance abuse treatment services. 

In the Central District of California, 33 defendants were charged for their roles in schemes to defraud insurance programs out of more than $660 million.  For example, one indictment in a compounding pharmacy fraud case alleges an attorney/marketer paid kickbacks and offered incentives such as prostitutes and expensive meals to two podiatrists in exchange for prescriptions written on pre-printed prescription pads, regardless of the medical need for the prescriptions.  Once the prescriptions were filled, members of the conspiracy submitted approximately $250 million in fraudulent claims to federal, state, and private insurers for the compounded drugs. 

In the Southern District of Texas, 48 individuals were charged in cases involving more than $291 million in alleged fraud.  Among these defendants are a pharmacy chain owner, managing partner, and lead pharmacist charged with a drug and money laundering conspiracy. According to the indictment, the coconspirators used fraudulent prescriptions to fill bulk orders for over one million pills of hydrocodone and oxycodone, which the pharmacy, in turn, sold to drug couriers for millions of dollars.  In the Northern District of Texas, a home health agency owner was arrested on a criminal complaint for a $2.6 million health care fraud scheme.

In the Eastern District of Michigan, 35 defendants face charges for their alleged roles in fraud, kickback, money laundering and drug diversion schemes involving approximately $197 million in false claims for services that were medically unnecessary or never rendered.  In one case, a physician was charged in separate kickback conspiracies with two home health agency owners, which resulted in more than $12 million in fraudulent insurance billings.

In the Northern District of Illinois, 21 individuals were charged for various fraud schemes involving home health and dental services.  These schemes involved allegedly over $54 million in fraudulent billing.  One case alleges a home health fraud and kickback conspiracy, which resulted in more than $6.2 million paid by Medicare based on the fraudulent billings.

In the Eastern District of New York, 13 individuals were charged with participating in a variety of schemes including kickbacks, services not rendered, identity theft and money laundering involving over $38 million in fraudulent billings.  For example, the owner of a Brooklyn ambulette company was charged in a $7 million conspiracy stemming from the alleged payment of kickbacks for the referral of patients, who subjected themselves to purported physical and occupational therapy and other services, and were transported by the ambulette company.

In the Middle District of Florida, 21 individuals were charged with participating in a variety of schemes involving more than $21 million in fraudulent billings.  In one case, a physician and clinic owner were charged with a conspiracy to defraud Medicare of more than $2.8 million for fraudulent home health billings.

In the Southern Louisiana Strike Force, operating in the Middle and Eastern Districts of Louisiana as well as the Southern District of Mississippi, 42 defendants were charged in connection with health care fraud, drug diversion, and money laundering schemes involving more than $16 million in fraudulent billings.  One case alleges that three pharmacy owners and a nurse practitioner conspired to unlawfully dispense controlled substances and defraud TRICARE and private insurance companies out of $12 million.

In the Corporate Strike Force, five defendants were charged in the Middle District of Tennessee with a kickback conspiracy at a durable medical equipment company, which allegedly resulted in more than $1 million in kickbacks and over $2.5 million in fraudulent billings to Medicare.

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In addition to the Strike Force locations, today’s enforcement actions include cases and investigations brought by an additional 46 U.S. Attorney’s Offices, including the execution of  search warrants in various investigations conducted by the Central and Northern Districts of California, Middle District of Florida, Southern District of Georgia, Western District of Kentucky, Eastern District of Michigan, Western District of North Carolina, Eastern and Western Districts of Texas, Eastern and Western Districts of Virginia, and Western District of Washington.

In the Northern and Southern Districts of Alabama, 15 defendants were charged for their roles in eight health care fraud schemes involving compounding pharmacy fraud and unlawful distribution of controlled substances.

In the Eastern District of California, four defendants were charged for their roles in two health care fraud schemes, one of which included forged prescriptions.

In the Southern District of California, seven defendants, including a physician, were charged for their roles in three health care fraud schemes and one scheme involving identity theft and services that were not rendered. 

In the District of Colorado, a defendant was charged with health care fraud related to billings to Medicaid and Medicare.

In the District of Connecticut, three defendants, including two medical professionals, were charged for their roles in two schemes involving compounding drugs and unlawful distribution of Schedule II and IV controlled substances. 

In the District of Delaware, a physician/owner of a pain management clinic was charged with unlawfully prescribing more than two million dosage units of Oxycodone products.

In the District of Columbia, a durable medical equipment company owner was charged with defrauding Medicaid of $9.8 million.

In the Northern District of Florida, four defendants were charged in a scheme to defraud TRICARE and other private insurance companies out of over $8 million for medically unnecessary compounded creams and pills. 

In the Northern, Middle, and Southern Districts of Georgia, 12 defendants, including two physicians, were charged in nine health care fraud, drug diversion, or compounding pharmacy schemes involving over $13.5 million in fraudulent billings. 

In the District of Idaho, three defendants, all of who are medical professionals, were charged for their roles in three separate fraud schemes involving controlled substances.

In the Central and Southern Districts of Illinois, seven defendants were charged in six separate schemes to defraud the Medicaid program.

In the Northern District of Indiana, eight defendants were charged in various health care fraud schemes to defraud both the Medicare and Medicaid programs. 

In the Northern District of Iowa, two defendants – both medical professionals – were charged for their roles in two opioid-related schemes.

In the Districts of Kansas and the Northern and Western Districts of Oklahoma, 12 defendants, including four physicians, were charged in various unlawful distribution of controlled substances schemes.  In the Western District of Oklahoma, one case marks the district’s first time charging unlawful distribution of controlled substances resulting in a death.

In the Eastern and Western Districts of Kentucky, 12 defendants, including five medical professionals, were charged in various schemes involving health care fraud, unlawful distribution of controlled substances, aggravated identity theft, and money laundering.  One case involved the operation of two false-front medical clinics.

In the Districts of Maine and Vermont, two defendants were charged for their roles in two schemes to defraud various government programs including Medicare, Medicaid, and ones run by the HHS’ Administration for Children and Families.

In the District of Nebraska, seven defendants, including one physician, were charged in five separate schemes to defraud Medicare, Medicaid, and various HHS programs.

In the District of Nevada, four defendants, including three medical professionals were charged with conspiracies to commit health care fraud and distribute controlled substances. 

In the District of New Jersey, eight defendants, including a New York doctor, an anesthesiology technologist for a Philadelphia hospital, and the owner of a medical billing company, were charged for their roles in five schemes to defraud private insurance companies of over $16 million. 

In the Southern District of New York, two defendants were charged in schemes involving health care fraud or drug diversion.

In the Middle District of North Carolina, two defendants were charged with a conspiracy to defraud Medicare out of over $4 million.

In the Southern District of Ohio, three defendants – all medical professionals – were charged for their roles in two health care fraud schemes, one of which involved illegal drug distribution and kickbacks.

In the Eastern and Middle Districts of Pennsylvania, 12 defendants were charged for their roles in three drug diversion schemes.

In the Western District of Pennsylvania, four defendants – all physicians – were charged in various health care fraud and drug diversion schemes. One scheme involved 32,000 dosage units of buprenorphine.

In the District of Rhode Island, one defendant was charged for participating in a theft and aggravated identity theft scheme.

In the District of South Carolina, three defendants were charged for their separate roles in a conspiracy to possess with the intent to distribute fentanyl.

In the District of South Dakota, two defendants were charged in separate cases, one of which involved a scheme to defraud the Indian Health Service.

In the Middle District of Tennessee, 10 defendants were charged in two separate schemes, including a conspiracy to fraudulently obtain oxycodone.

In the Eastern District of Texas, two defendants were charged for their role in health care fraud schemes to defraud the Medicare and Medicaid programs.

In the District of Utah, two defendants were charged in two cases, one of which involved a $31 million scheme to defraud Medicare and Medicaid.

In the Western District of Virginia, eight defendants were charged for their alleged roles in health care fraud schemes.  One $45 million scheme to defraud Medicaid involved falsification of documents in patient files.

In the Eastern District of Washington, a dentist and another individual were indicted for distributing and conspiring to distribute hydrocodone and tramadol without a legitimate medical purpose. 

In the Eastern District of Wisconsin, three defendants were charged in a scheme involving the unlawful distribution of controlled substances and aggravated identity theft.

In addition, in the states of Arizona, Arkansas, California, Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Kansas, Louisiana, Maine, Michigan, Missouri, Mississippi, Nevada, New York, Oklahoma, Pennsylvania, Texas, Vermont, and Washington, 97 defendants have been charged with defrauding the Medicaid program out of over $27 million.  These cases were investigated by each state’s respective Medicaid Fraud Control Units.  In addition, the Medicaid Fraud Control Units of the states of California, District of Columbia, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Nevada, North Carolina, Ohio, Texas, Tennessee, and Virginia participated in the investigation of many of the federal cases discussed above. 

The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices in the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois, Middle District of Louisiana, and the Middle District of Florida; and agents from the FBI, HHS-OIG, DEA, DCIS, IRS-CI, Department of Labor, other various federal law enforcement agencies, and state Medicaid Fraud Control Units.

A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Additional documents related to this announcement will shortly be available here: 

https://www.justice.gov/opa/documents-and-resources-june-28-2018.

This operation also highlights the great work being done by the Department of Justice’s Civil Division.  In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2 billion in judgements and settlements related to matters alleging health care fraud. 

A federal grand jury in London, Kentucky, today returned a two-count indictment charging Brandon McIntosh, a former deputy of the Rockcastle County Sheriff’s Office, with violating the civil rights of an arrestee by using excessive force against him and then filing a false report to obstruct the investigation of that assault.

The indictment alleges that on Nov. 6, 2016, McIntosh assaulted P.D., an arrestee, using a dangerous weapon and resulting in bodily injury to P.D.  The indictment further alleges that McIntosh filed a report falsely stating that, as McIntosh approached P.D., P.D. became very combative and that McIntosh used the least amount of force to get P.D. under control. 

If convicted, McIntosh faces a maximum term of imprisonment of 10 years on the civil rights charge and twenty years on the obstruction charge.

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

The Federal Bureau of Investigation conducted the investigation. Assistant United States Attorney Hydee Hawkins of the Eastern District of Kentucky and Trial Attorney Mary J. Hahn of the Civil Rights Division are prosecuting the case.

Former Chief Counsel Raphael A. Sanchez of the U.S. Immigration and Customs Enforcement’s (ICE) Office of Principal Legal Advisor (OPLA) was sentenced to 48 months in prison for a wire fraud and aggravated identity theft scheme involving the identities of numerous aliens, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and ICE Principal Legal Advisor Tracy Short.

Sanchez, 44, of Seattle, Washington, pleaded guilty on Feb. 24, to one count of wire fraud and one count of aggravated identity theft.  In addition to the prison term, U.S. District Court Judge Robert S. Lasnik of the Western District of Washington ordered Sanchez to pay $190,345.63 in restitution.

“Raphael Sanchez was entrusted with overseeing the honest enforcement of our country’s immigration laws,” said Acting Assistant Attorney General Cronan.  “Instead, Sanchez abused that trust, and capitalized on his position at ICE to exploit his victims and line his own pockets.”

“ICE employees are required to ensure honest enforcement of more than 400 laws,” said ICE Principal Legal Advisor Short.  “We cannot let one bad actor detract from the work the agency’s dedicated employees in Seattle and across the world are doing to ensure our national security and uphold public safety. Our employees are held to the highest standards of professional conduct. Individuals who violate the public’s trust will face consequences for their actions, as Mr. Sanchez did in this case. Corruption will not be tolerated.”

Sanchez, who was responsible for immigration removal proceedings in Alaska, Oregon and Washington, admitted in his plea agreement that he intentionally devised a scheme to defraud aliens in various stages of immigration removal proceedings with ICE.  Sanchez used the personally identifiable information of those aliens to open lines of credit and personal loans in their names, manipulate their credit bureau files, transfer funds to himself and to purchase goods for himself using credit cards issued in their names. 

Sanchez admitted that he obtained personally identifiable information of the victim aliens by using ICE’s official computer database systems and by accessing their official, hard-copy immigration A-files.  He then used his work computer to forge identification documents, including Social Security cards and Washington State driver’s licenses, in the victims’ names.  Sanchez used these forged documents to open credit card and bank accounts subject to his own control in the names of the aliens.

To further the scheme, Sanchez listed his residence as the aliens’ home addresses on account paperwork.  In some cases, he created public utility account statements in their names to provide the necessary proof of residence to open lines of credit in their names or to conceal the scheme.  He also opened e-mail and online financial accounts in the names of several aliens, and manufactured a false earnings-and-leave statement in the name of an alien and registered a car in her name. 

Once the accounts were approved and opened, Sanchez made charges or drew payments totaling more than $190,000 in the names of aliens to himself or entities that he controlled, often using PayPal and mobile point-of-sale devices from Amazon, Square, Venmo and Coin to process the fraudulent transactions.  In a number of cases, Sanchez purchased goods online in the names of aliens and had them shipped to his residence.  Sanchez also employed credit-monitoring services and corresponded with credit bureaus in the names of aliens to conceal his fraud scheme.  Sanchez also claimed three aliens as relative dependents on his tax returns for 2014, 2015, and 2016.

ICE’s Office of Professional Responsibility, the FBI, and the U.S. Postal Inspection Service investigated the case.  Trial Attorneys Luke Cass and Jessica C. Harvey of the Criminal Division’s Public Integrity Section prosecuted the case.

The former chief financial officer of Bankrate Inc., a publicly traded financial services and marketing company formerly headquartered in North Palm Beach, Florida, pleaded guilty today for his role in orchestrating an accounting and securities fraud scheme that caused more than $25 million in shareholder losses.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin Greenberg of the Southern District of Florida and Criminal Investigations Group Inspector in Charge Daniel Adame of the U.S. Postal Inspection Service made the announcement.        

Edward J. DiMaria, 53, of Fairfield County, Connecticut, pleaded guilty to one count of conspiracy to make false statements to a public company’s accountants, falsify a public company’s books, records and accounts, and commit securities fraud; and one count of making materially false statements to the Securities and Exchange Commission (SEC).   DiMaria pleaded guilty before U.S. Magistrate Judge Simonton of the Southern District of Florida.  DiMaria is scheduled to be sentenced on Sept. 11. 

“Edward DiMaria used his position as Bankrate’s CFO to inflate the company’s earnings and mislead shareholders, auditors, and the SEC, resulting in over $25 million in losses to innocent investors,” said Acting Assistant Attorney General Cronan.  “DiMaria’s conviction and the restitution in this case will hopefully provide some solace to Bankrate’s shareholders, while also reminding potential bad actors of the Department’s commitment to hold individuals accountable for their involvement in complex accounting and securities fraud schemes that harm investors and undermine our markets.”

“The consequences of this type of financial fraud scheme are far reaching, affecting not only the economy in the United States, but also the world’s financial markets,” said Inspector in Charge Adame.  “Those who engage in this type of abuse of power while in positions of authority should know they cannot escape detection. They will be found and they will be held accountable for their actions. The U.S. Postal Inspection Service has a long history of investigating complex financial fraud schemes, like this one, in order to protect investors and the integrity of the financial marketplace.”

As part of his guilty plea, DiMaria admitted that between 2010 and 2014, he directed and conspired to commit a complex scheme to artificially inflate Bankrate’s earnings through so-called “cookie jar” or “cushion” accounting, where millions of dollars in unsupported expense accruals were purposefully left on Bankrate’s books and then selectively reversed in later quarters to boost earnings.  In addition, DiMaria admitted that he conspired with other Bankrate employees to misrepresent certain company expenses as “deal costs” in order to artificially inflate publicly reported adjusted earnings metrics.  DiMaria also admitted that he made materially false statements to Bankrate’s independent auditors to conceal the improper accounting entries, and that he caused Bankrate’s financial statements filed with the SEC to be materially misstated. 

DiMaria further admitted that the scheme caused more than $25 million in losses to Bankrate’s shareholders.  Pursuant to the terms of the plea agreement, DiMaria is required to pay approximately $21 million in restitution to Bankrate’s shareholders.

Hyunjin Lerner, Bankrate’s former vice president of finance, previously pleaded guilty for his role in the conspiracy.  Lerner was sentenced earlier this year to 60 months in prison by U.S. District Court Judge K. Michael Moore of the Southern District of Florida. 

The U.S. Postal Inspection Service’s National Headquarters Fraud Team investigated the case.  Assistant Chief Henry Van Dyck and Trial Attorneys Emily Scruggs and Jason Covert of the Criminal Division’s Fraud Section are prosecuting the case with assistance from the U.S Attorney’s Office for the Southern District of Florida.  The SEC also provided assistance in this matter.

The Department of Justice today posted solicitations for four public safety grants. Applicants for these FY 2018 grants will be required to certify compliance with new conditions to these grants that will increase information sharing and other cooperation between federal, state, and local law enforcement. These new grant conditions will ensure that federal immigration authorities have the information they need to enforce immigration laws and keep our communities safe.

The new conditions require recipient jurisdictions to certify that they: (1) comply with 8 USC 1373 and 1644, which promote information sharing and other cooperation between state and local law enforcement and federal immigration authorities; (2) when practicable, provide advance notice before releasing a criminal alien from a state or local detention center; (3) permit Department of Homeland Security personnel to access criminal detention facilities in order to meet to conduct interviews of criminal aliens in state or local custody; and (4) comply with federal criminal laws related to the harboring of illegal aliens.

The grants also allow for preferential consideration of a grant application where the applicant plans to use immigration-cooperation tactics to address public safety in their jurisdiction.  

"So-called 'sanctuary' policies make all of us less safe because they intentionally undermine our laws and protect illegal aliens who have committed crimes,” Attorney General Jeff Sessions said. “As part of accomplishing the Department of Justice's top priority of reducing violent crime, we must encourage these 'sanctuary' jurisdictions to change their policies that undermine public safety, and to partner with federal law enforcement to remove criminals.”

More details on these grants are below:

• Supporting Innovation: Field-Initiated Programs to Improve Officer and Public Safety

This grant solicitation invites applicants to pilot, assess, and implement original approaches that target emerging or chronic crime problems facing the country and placing our officers and public at risk.

• Justice Accountability Initiative (JAI): Pilot Projects Using Data-driven Systems to Reduce Crime and Recidivism

This grant solicitation invites applicants to reduce recidivism and crime by improving the effectiveness of risk assessments and to provide a more data-driven approach system-wide.

• Gang Suppression Planning: Build Capacity for a Multilateral Data-Driven Strategy to Promote Public Safety

This grant solicitation seeks to understand a jurisdiction’s gang landscape and be able to use data to develop effective gang control strategies. It will aim to reduce and sustain reductions in community youth violence, particularly gun and gang violence, and victimization; prevent violence and promote healing from victimization and exposure to violence in the home, school, and community; and increase the safety, well-being, and healthy development of children, youth, and families.

• A Law Enforcement and Prosecutorial Approach To Address Gang Recruitment of Unaccompanied Alien Children program:

This grant solicitation invites jurisdictions that have high levels of youth- perpetrated gun crime and gang violence and that can demonstrate a willingness and readiness to develop fully comprehensive community- and data-driven responses. Funding will support selected jurisdictions to undertake strategic planning and capacity-building work through multidisciplinary and community partnerships.

WASHINGTON – Attorney General Jeff Sessions, Department of Health and Human Services (HHS) Secretary Alex M. Azar III and other law enforcement officials will hold a press conference THURSDAY, JUNE 28, 2018, at 10:30 a.m. EDT, to announce a nation-wide health care fraud and opioid enforcement action.  Attorney General Sessions and Secretary Azar will leave the press conference before conclusion. Questions may be answered by other law enforcement officials on stage following remarks. 
 
WHO:  Attorney General Jeff Sessions, Justice Department
Secretary Alex M. Azar, HHS
Deputy Director David L. Bowdich, FBI
Assistant Administrator John Martin, Drug Enforcement Administration
Inspector General Daniel R. Levinson, HHS
Acting Assistant Attorney General John P. Cronan, Justice Department’s Criminal Division
Deputy Chief Eric Hylton, IRS-Criminal Investigation
Director Alec Alexander, Centers for Medicare and Medicaid Services Center for Program Integrity
Director Dermot F. O’Reilly, Defense Criminal Investigative Service
 
WHAT:          Announcement of significant law enforcement actions

WHEN:          THURSDAY, JUNE 28, 2018 10:30 a.m. EDT

WHERE:       Department of Justice
7th Floor Press Conference Room
950 Pennsylvania Avenue, NW
Washington, DC 20530       

                                                           
                        OPEN PRESS
LIVESTREAMED ON JUSTICE.GOV/LIVE-STREAM

NOTE: Please RSVP to press@usdoj.gov and Sarah Sutton at sarah.e.sutton@usdoj.gov.  All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials.  Media must enter the department at the visitor’s entrance on Constitution Avenue NW between 9th and 10th Streets. Media may begin arriving at 8:30 a.m. EDT and cameras must be pre-set by 9:15 a.m. EDT. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007.

# # #

DO NOT REPLY TO THIS MESSAGE.  IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.

The Department of Justice announced today that it will require The Walt Disney Company to divest 22 Regional Sports Networks (“RSNs”) as a condition of its $71.3 billion acquisition of certain assets from Twenty-First Century Fox, Inc. 

The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the Southern District of New York to block the proposed acquisition.  At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.  The Department said that without the required divestitures, the proposed acquisition would likely result in higher prices for cable sports programming licensed to multichannel video programming distributors (“MVPDs”) in each of the local markets that the RSNs serve.  To streamline agency clearance, Disney agreed to divest the 22 RSNs rather than continue with the Antitrust Division’s ongoing merger investigation.  

“American consumers have benefitted from head-to-head competition between Disney and Fox’s cable sports programming that ultimately has prevented cable television subscription prices from rising even higher,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “Today’s settlement will ensure that sports programming competition is preserved in the local markets where Disney and Fox compete for cable and satellite distribution.” 

According to the Department’s complaint, Disney and Fox compete to sell cable sports programming to MVPDs in various local markets across the United States.  Because of this competition, the complaint alleges that the proposed acquisition would likely result in MVPDs paying higher prices for cable sports programming in those local markets.  The proposed settlement requires Disney to divest 22 RSNs, currently owned by Fox, to a buyer acceptable to the Department.  The Department has determined that the divestitures would resolve antitrust concerns arising from Disney’s acquisition of certain assets from Fox.  

The Walt Disney Company is incorporated in Delaware with its principal place of business in Burbank, Calif.  It is a diversified worldwide entertainment company that, among other things, owns cable and broadcast television networks, television production and distribution operations, broadcast television stations and motion picture production and distribution operations.  Its revenues were approximately $55 billion for its 2017 fiscal year. 

Twenty-First Century Fox, Inc. is incorporated in Delaware with its principal place of business in New York, NY.  It is a diversified global media and entertainment company that, among other things, owns cable and broadcast television networks, broadcast television stations and motion picture production and distribution operations.  Its revenues were approximately $28.5 billion for its 2017 fiscal year.  The Fox assets that Disney is acquiring, including the Fox RSNs, generated $19 billion in 2017 revenues.  

As required by the Tunney Act, the proposed settlement and the Department’s competitive impact statement will be published in the Federal Register.  Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen M. Kendler, Chief, Media, Entertainment, and Professional Services Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 4000, Washington, D.C. 20530.  At the conclusion of the 60-day comment period, the U.S. District Court for the Southern District of New York may enter the proposed consent decree upon finding that it serves the public interest.

Today, Solicitor General Noel Francisco issued the following statement on the retirement of Supreme Court Justice Anthony Kennedy: “As Solicitor General of the United States and on behalf of this Office, we are grateful and appreciative for Justice Kennedy’s tireless years of public service in our federal judiciary and on our Nation’s highest Court. His jurisprudence has left an indelible mark and his commitment to our cherished First Amendment freedom of speech will be a legacy for generations to come. I count it a privilege to have argued before him and wish him and his family all the best in the years ahead.”

Tokuo Tatai, an executive of Japan-based capacitor manufacturer Elna Co. Ltd., pleaded guilty for his role in a conspiracy to fix prices and rig bids for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.

A December 2016 indictment, filed in the U.S. District Court of the Northern District of California, charged Tatai with participating in a conspiracy to suppress and eliminate competition of electrolytic capacitors by fixing prices and rigging bids.  The charge alleges that Tatai participated in the conspiracy from January 2009 to January 2012.  In addition to pleading guilty, Tatai has agreed to serve a prison term of a year and a day and to cooperate with the Antitrust Division’s ongoing investigation. 

“The Antitrust Division will hold accountable foreign nationals who participate in conspiracies that harm American consumers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “This capacitors conspiracy affected millions of American consumers who use electronic devices in their everyday lives.”  

Electrolytic capacitors store and regulate electrical current in a variety of electronic products, including computers, televisions, car engine and airbag systems, home appliances and office equipment.

Today’s charges result from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the electrolytic capacitors industry.  Eight companies and 10 individuals have been charged in the division’s ongoing investigation. The investigation is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office.  

Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the capacitors industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at 415-553-7400.

James Alex Fields Jr. Indicted on 30 Counts Including Hate Crime Resulting in the Death of Heather Heyer

A federal grand jury sitting in the U.S. District Court for the Western District of Virginia in Charlottesville today charged an Ohio man with federal hate crimes, including a hate crime act that resulted in the death of Heather Heyer, for his actions during the Aug. 12, 2017 “Unite the Right Rally” in Charlottesville. Attorney General Jeff Sessions, FBI Director Christopher Wray, Acting Assistant Attorney General John Gore of the Civil Rights Division, United States Attorney Thomas T. Cullen of the Western District of Virginia, and Special Agent in Charge of the FBI’s Richmond Division Adam S. Lee, made the announcement.

James Alex Fields Jr., 21, of Maumee, Ohio, was charged in an indictment returned earlier today with:

• one count of a hate crime act resulting in the death of Heather Heyer (18 U.S.C. § 249);
• 28 counts of hate crime acts causing bodily injury and involving an attempt to kill (18 U.S.C. § 249); and
• one count of racially motivated violent interference with a federally protected activity (18 U.S.C. § 245(b)(2)), resulting in the death of Heather Heyer, for driving his car into a crowd of protestors on a downtown street in Charlottesville, Virginia.

“At the Department of Justice, we remain resolute that hateful ideologies will not have the last word and that their adherents will not get away with violent crimes against those they target,” Attorney General Jeff Sessions said. “Last summer’s violence in Charlottesville cut short a promising young life and shocked the nation. Today’s indictment should send a clear message to every would-be criminal in America that we aggressively prosecute violent crimes of hate that threaten the core principles of our nation. I want to thank the FBI as well as our fabulous prosecutors Stephen Curran, Christopher Kavanaugh, and Rachel Kincaid for their hard work on this case.”

“As this case indicates, our office will aggressively prosecute hate crimes and other civil-rights offenses committed because of the actual or perceived race, color, religion, or national origin of any individual or group,” U.S. Attorney Thomas T. Cullen stated. “We are grateful to the FBI and our state and local law-enforcement colleagues who conducted the parallel federal and state investigations in a cooperative fashion, enabling us to vindicate this critical federal interest.”

"Hatred and violence have no place in our communities," said FBI Director Christopher Wray. “The investigation of hate crimes is a top priority of the FBI, and we will continue to work with our partners to ensure those who perpetrate such despicable acts are held accountable.”

“The events of Aug. 12, 2017, in Charlottesville are a grim reminder of why the FBI prioritizes its investigations of civil rights violations among the top of its criminal programs. I hope today will also be a reminder to those who are motivated by hate and intent on committing violence; we are going to be there, just as we were in this case,” said FBI Special Agent in Charge Adam S. Lee of the Richmond Division, who also oversees the office in Charlottesville. “I want to thank the Civil Rights Division and the United States Attorney’s Office for their outstanding partnership, my team of FBI agents and analysts who worked tirelessly to put the case together, and the business owners and residents of Charlottesville who worked with us and provided a massive volume of evidence in this case.”

According to the indictment, on or before Aug. 8, 2017, Fields decided to attend the Unite the Right Rally in Charlottesville, Virginia. The Unite the Right rally was scheduled to occur on Aug. 12, 2017, at Emancipation Park and was widely publicized on social media and internet sites associated with white supremacist individuals and groups.

On the morning of Aug. 12, 2017, Fields arrived in and around the vicinity of Emancipation Park in Charlottesville. Multiple groups and individuals, including Fields, engaged in chants promoting or expressing white supremacist and other racist and anti-Semitic views. After an “unlawful assembly” was declared, rally participants, including Fields, dispersed the area. Fields returned to his vehicle and soon after drove to the vicinity of the intersection of Fourth and East Market streets in downtown Charlottesville.

As alleged in the indictment, Fields drove his car onto Fourth Street, a narrow, downhill, one-way street in downtown Charlottesville. At around the same time, a racially and ethnically diverse crowd of individuals was gathered at the bottom of the hill, at the intersection of Fourth and East Water streets. The indictment alleges that Fields slowly proceeded in his vehicle toward the crowd, stopped, and then observed the crowd while idling in his vehicle. Many of the individuals in the crowd were chanting and carrying signs promoting equality and protesting against racial and other forms of discrimination. With no vehicle behind him, Fields slowly reversed his vehicle to the top of the hill near the intersection of Fourth and Market streets. Fields then rapidly accelerated, ran through a stop sign and across a raised pedestrian mall, and drove directly into the crowd, striking numerous individuals, killing Heather Heyer, and injuring many others. Fields’s vehicle stopped only when it struck another vehicle near the intersection of Fourth and Water streets. He then rapidly reversed his vehicle and fled the scene.

The investigation of the case was conducted by the Federal Bureau of Investigation. United States Attorney Thomas T. Cullen, Assistant United States Attorney Christopher Kavanaugh and Stephen Curran and Rachel Kincaid, trial attorneys with the Civil Rights Division of the Department of Justice, are prosecuting the case for the United States.

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

The Justice Department today reached a settlement agreement with Teachers Test Prep Inc, (TTP), to resolve allegations that it violated Title III of the Americans with Disabilities Act (ADA) by not offering its online courses in a manner accessible to individuals who are deaf or hard of hearing and by not providing its one-on-one tutoring sessions in an accessible manner.

TTP offers preparation courses for licensing and credentialing examinations in California. Its services include tutoring, online classes, and live classes at locations throughout California. The Department initiated its investigation in response to a complaint that TTP’s online video courses were inaccessible to deaf individuals because they did not provide closed captions and that TTP failed to offer one-on-one online tutoring in an accessible manner. The complainant enrolled in a TTP course to prepare to take the California Basic Educational Skills Test (CBEST), designed to test basic reading, mathematics, and writing skills. The complainant worked as a school counselor, and her employer required that she pass the CBEST as a condition of her employment. Because TTP’s course was not offered in a manner accessible to deaf individuals, the complainant was denied equal access to TTP’s test preparation services.

“Exam preparation courses should be provided in a manner that is accessible to individuals with disabilities,” said Acting Attorney General John Gore of the Civil Rights Division. “The Department of Justice will work to ensure that individuals who are deaf or hard of hearing have an equal opportunity to participate in such courses.”

The ADA mandates that a private entity that offers test preparation courses, such as TTP, provide its services in a manner accessible to individuals with disabilities. It also requires TTP to make modifications to its courses as are necessary to ensure that the courses are accessible to individuals with disabilities and to provide appropriate auxiliary aids and services, unless TTP can demonstrate that doing so would fundamentally alter the course or would result in an undue burden. 

Under the two-year agreement, TTP will adopt ADA course-modification policies and procedures; provide ADA training to its staff; caption its online video content; and provide notice on its website about how to request course modifications and auxiliary aids or services, including sign language interpreters. In addition, TTP will pay the complainant $5,000 and allow the complainant to enroll in another course free of charge.

Those interested in finding out more about this settlement or the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint/.

NOTE: The settlement agreement can be found here.

A federal court in Boise, Idaho permanently enjoined Jonathan Peirsol from preparing federal income tax returns for others, the Justice Department announced yesterday. Peirsol consented to the civil injunction order and admitted the allegations in the complaint. He previously pleaded guilty to aiding and assisting in the preparation of a false tax return and, in May 2017, was sentenced to 12 months and one day in prison.

According to the civil complaint, Peirsol prepared false income tax returns by adding fictitious itemized deductions without the knowledge or consent of his customers, including, most commonly, fraudulent medical expenses. Peirsol also added false education expenses to his customers’ income tax returns without their knowledge or consent, as alleged in the complaint. The complaint states that Peirsol’s conduct caused at least $62,441 in tax loss.

Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips 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 with details.

Today Attorney General Jeff Sessions issued the following statement on the Supreme Court's decision in Trump v. Hawaii: “Today is a great victory for the safety and security of all Americans. The Constitution and Acts of Congress confer on the President broad discretion to protect the interests of the United States. Today’s decision is critical to ensuring the continued authority of President Trump – and all future presidents – to protect the American people. We will continue to take and defend all lawful steps necessary to protect this great nation.”

Today Attorney General Jeff Sessions issued the following statement on the Supreme Court's ruling in NIFLA v. Becerra: “We are pleased that today’s decision protects Americans’ freedom of speech.  Speakers should not be forced by their government to promote a message with which they disagree, and pro-life pregnancy centers in California should not be forced to advertise abortion and undermine the very reason they exist.  This Department will continue to vigorously defend the freedom of all Americans to speak peacefully in accord with their deeply held beliefs and conscience."

The Justice Department today reached a settlement agreement with Triple H Services LLC, (Triple H), a landscaping company based in Newland, North Carolina, that conducts business in Virginia and four other states. The agreement resolves the Department’s investigation into whether Triple H discriminated against qualified and available U.S. workers based on their citizenship status by preferring to hire temporary workers with H-2B visas, in violation of the Immigration and Nationality Act (INA). 

The Department’s investigation found that although Triple H went through the motions of advertising over 450 landscape laborer vacancies in five states, it did so in a manner that misled U.S. workers about the available positions and prevented or deterred some from applying. The Department found that Triple H did not consider several qualified U.S. workers who applied for positions in Virginia during the recruitment period, and instead hired H-2B visa workers. In several states where jobs were available, the Department found that Triple H prematurely closed the online job application process for U.S. worker applicants, filled positions with H-2B visa workers without first advertising the jobs to U.S. workers in the relevant locations, or advertised vacancies in a manner that did not make the postings visible to job seekers using state workforce agency online services.  

The Department concluded that in taking these actions, Triple H effectively denied U.S. workers access to jobs based on its preference for hiring temporary H-2B visa workers to fill the positions. Refusing to consider or hire qualified and available U.S. workers based on their citizenship status violates the INA’s anti-discrimination provision, regardless of whether an employer has complied with other rules governing the use of temporary employment-based visa programs. 

Under the settlement, Triple H must establish a back pay fund, with a cap of $85,000, to compensate certain individuals who were harmed by its practices. The agreement also requires Triple H to pay $15,600 in civil penalties, engage in enhanced recruitment activities to attract U.S. workers, and be subject to Departmental monitoring for a three-year period.   

“Federal law prohibits employers from discriminating against U.S. workers in hiring because of their citizenship status,” said Acting Assistant Attorney General John Gore. “The Department will continue to fight to ensure that U.S. workers are not disadvantaged because of their citizenship status.  I commend Triple H for its cooperation with the Department and its willingness to undertake efforts to recruit U.S. workers that go well beyond the minimum requirements for participation in the H-2B visa worker program.”

Today’s settlement is part of the Civil Rights Division’s Protecting U.S. Workers Initiative, which is aimed at targeting, investigating, and taking enforcement actions against companies that discriminate against U.S. workers in favor of temporary visa workers. Under this Initiative, the Civil Rights Division has opened dozens of investigations, filed one lawsuit, and reached settlement agreements with three employers. Since the Initiative’s inception, employers have agreed to pay or have distributed over $285,000 in back pay to affected U.S. workers. The Division has also increased its collaboration with other federal agencies to combat discrimination and abuse by employers using foreign visa workers. 

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

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

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

Today, the Department of Justice, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), the U.S. Secret Service (USSS), the U.S. Postal Inspection Service (USPIS) and the U.S. Drug Enforcement Administration (DEA), announced the results of a year-long, coordinated national operation that used the first nationwide undercover action to target vendors of illicit goods on the Darknet. Special Agents of the HSI New York Field Division, in coordination with the U.S. Attorney’s Office for the Southern District of New York, posed as a money launderer on Darknet market sites, exchanging U.S. currency for virtual currency.  Through this operation, HSI New York was able to identify numerous vendors of illicit goods, leading to the opening of more than 90 active cases around the country. The Money Laundering and Asset Recovery Section (MLARS) of the Department of Justice’s Criminal Division, working with more than 40 U.S. Attorney’s Offices throughout the country, coordinated the nationwide investigation of over 65 targets, that lead to the arrest and impending prosecution of more than 35 Darknet vendors.

These results were announced by Deputy Attorney General Rod J. Rosenstein, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting Executive Associate Director Derek Benner of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Special Agent-in-Charge Angel M. Melendez of HSI New York Field Office, Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service (USPIS) New York Division, Assistant Director Kenneth Jenkins of the U.S. Secret Service (USSS) Office of Investigations, and Special Agent in Charge James J. Hunt of the U.S. Drug Enforcement Administration (DEA) New York Division.

“Criminals who think that they are safe on the Darknet are wrong,” said Deputy Attorney General Rosenstein.  “We can expose their networks, and we are determined to bring them to justice. Today, we arrested more than 35 alleged Darknet vendors.  We seized their weapons, their drugs, and $23.6 million of their ill-gotten gains. This nationwide enforcement effort will reduce the supply of deadly drugs like fentanyl that are killing an unprecedented number of Americans.  I want to thank our federal prosecutors, and the dedicated federal agents with DEA, Homeland Security Investigations, the Postal Inspection Service, and the Secret Service for their outstanding work.”

“The Darknet is ever-changing and increasingly more intricate, making locating and targeting those selling illicit items on this platform more complicated.  But in this case, HSI special agents were able to walk amongst those in the cyber underworld to find those vendors who sell highly addictive drugs for a profit,” said HSI Acting Executive Associate Director Benner.  “The veil has been lifted. HSI has infiltrated the Darknet, and together with its law enforcement partners nationwide, it has proven, once again, that every criminal is within arm’s reach of the law.”

“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 Darknet, that serve to destroy the lives of many through addiction and despair,” said Inspector in Charge Rendina.  “Today’s announcement of 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.”

“The Secret Service is proud to work with our law enforcement partners to help combat one of the largest threats to the U.S. financial infrastructure, money laundering with virtual currency,” said U.S. Secret Service Assistant Director Jenkins.  “The Secret Service continues to adapt along with these cyber criminals to maintain our level of success in stopping them.”

“At this crucial time of unprecedented drug related deaths, one of the greatest threats we face is cyber drug trafficking,” said DEA Special Agent in Charge Hunt.  “Because the Darknet invites criminals into our homes, and provides unlimited access to illegal commerce, law enforcement is taking steps to identify and arrest those involved. I applaud all the agencies who participated in this groundbreaking investigation.”

The extensive operation, which culminated in four weeks of more than 100 enforcement actions around the country, resulted in the following:

• Federal arrests of more than 35 Darknet vendors who engaged in tens of thousands of sales of illicit goods;
• Execution of 70 search warrants, resulting in the seizure of massive amounts of illegal narcotics, including 333 bottles of liquid synthetic opioids, over 100,000 tramadol pills, 100 grams of fentanyl, more than 24 kilograms of Xanax, and additional seizures of Oxycodone, MDMA, cocaine, LSD, marijuana, and a psychedelic mushroom grow found in a residence;
• Seizure of more than 100 firearms, including handguns, assault rifles, and a grenade launcher;
• Seizure of five vehicles that were purchased with illicit proceeds and/or used to facilitate criminal activity;
• Seizure of more than $3.6 million in U.S. currency and gold bars;
• Seizure of nearly 2,000 Bitcoins and other cryptocurrencies, with an approximate value of more than $20 million;
• Confiscation of 15 pill presses, which are used to create illegal synthetic opioids; and
• Seizure of Bitcoin mining devices, computer equipment, and vacuum sealers.

Amongst those charged federally, include:

• Antonio Tirado, 26, and Jeffrey Morales, 32, of the Bronx, New York, were arrested on June 18, and separately charged by the U.S. Attorney’s Office for the Southern District of New York with distribution and possession with intent to distribute narcotics, including cocaine, LSD (also known as “acid”), marijuana, and hashish oil.  Additionally, Tirado was charged with possession of a firearm in furtherance of his drug trafficking offenses.  Following an investigation into a Darknet marketplace vendor using the moniker “Trapgod,” investigators executed search warrants at homes in two residential neighborhoods in the Bronx leading to Tirado and Morales.  As alleged in the complaints, during the execution of the search warrants at the Tirado and Morales residences, agents seized controlled substances including powder cocaine, marijuana, and LSD, as well as various precursor powders, liquids, and reagents, and other narcotics-related paraphernalia including marijuana growing equipment, a home chemistry lab, scales, and heat sealing packaging materials.  In Tirado’s home, agents recovered a fully loaded shotgun alongside a narcotics stash.  Investigators in Tirado’s apartment recovered additional evidence of Darknet narcotics distribution, such as numerous U.S. Postal Service shipping boxes, already addressed to customers around the United States, which boxes contained hairbrushes some of which had already been packed with powder cocaine for distribution.

• Jian Qu, 30; Raymond Weng, 24; and Kai Wu, 22, all of Queens, New York, along with Dimitri Tseperkas, 22, and Cihad Akkaya, 22, of Middle Island and Port Jefferson, New York, respectively, were each arrested on June 18, and charged by the U.S. Attorney’s Office for the Southern District of New York with participation in a conspiracy to distribute more than 1,000 kilograms of marijuana.  Tseperkas and Akkaya were also charged with firearms offenses relating to the drug conspiracy.  Investigators monitoring Darknet marketplaces found accounts used by some of the conspirators, leading agents to execute search warrants at three addresses in residential communities in Flushing and Mt. Sinai, New York.  From the residences, agents recovered approximately $400,000 in U.S. currency, 140 kilograms of suspected marijuana and an additional 10 kilograms of suspected marijuana vape cartridges, 12 kilograms of suspected Xanax pills, over half a kilogram of suspected ecstasy, four pill presses, mixers, and pill press parts, over a dozen kilograms of various powders, packaging materials, and paraphernalia.   While searching the residence where Akkaya and Tseperkas were found, investigators recovered three loaded shotguns, including a tactical double-barreled shotgun loaded with 14 shells, and over 50 shotgun shells, as well as significant quantities of narcotics, packaging materials, and paraphernalia including a money-counting machine.  Review of electronic evidence recovered from the residences proved the conspirators’ connections to Darknet marketplaces, use of cryptocurrency, and narcotics distribution schemes.

• Ryan Farace, 34, of Reisterstown, Maryland, and Robert Swain, 34, of Freeland, Maryland, were charged by the U.S Attorney’s Office for the District of Maryland related to a scheme to manufacture and distribute alprazolam tablets, which are typically sold under the brand name “Xanax.”  The indictment alleges that Farace distributed the drugs through sales on the dark web in exchange for Bitcoin, and that Farace and Swain laundered the drug proceeds through financial transactions designed to conceal the source and ownership of the illegal funds.   To date, law enforcement has seized various crypto currency, to include bitcoin, valued at over $22 million at the time of the seizures, and over $1.5 million in cash, which was seized from Farace’s residence upon the execution of a search warrant on Jan. 18.  As part of the indictment, the government seeks the forfeiture of no less than $5.665 million, plus the value of 4,000 Bitcoin believed to be the proceeds of the illegal drug sales, two residences, and a vehicle used to facilitate the drug distribution.

• Nicholas J. Powell, 32, and Michael Gonzalez, 27, former and current residents of Parma, Ohio, respectively, were charged by the U.S. Attorney’s Office for the Northern District of Ohio with conspiracy to distribute controlled substances and laundering money using the dark web.  The complaint alleges that Powell used various monikers on Darknet marketplaces as part of his criminal scheme, including “TheSource,” “BonnienClyde,” BnC,” “BCPHARMA,” and “Money TS.”  The conspiracy operated on multiple Darknet marketplaces, including Silk Road 2, AlphaBay, and HANSA.  The conspiracy involved distributing Xanax, steroids, marijuana and other drugs across the country using these and other Darknet monikers.  Powell and Gonzalez would then launder the funds as cryptocurrencies such as Bitcoin, Etherium, and Komodo through individuals specializing in money laundering on Darknet marketplaces.  At the time of arrest, law enforcement had already seized approximately $437,000 in cryptocurrencies from Powell.

• Jose Robert Porras III, 21, and Pasia Vue, 23, both of Sacramento, were charged with drug distribution, money laundering, and illegally possessing firearms, in a 16-count indictment returned by a grand jury in the Eastern District of California. According to the indictment, Porras and Vue were using the online monikers “Cannabars” and “TheFastPlug,” to distribute marijuana, Xanax, and methamphetamine on various dark web marketplaces, including Trade Route, Wall Street Market, and Dream Marketplace.  Porras and Vue then laundered the Bitcoin proceeds of their drug distribution through the HSI undercover agent located in New York.  After receiving the Bitcoin from Porras and Vue, the undercover agent mailed parcels of cash to them in Sacramento. HSI and USPIS agents seized nine weapons including an AK-47 magazine and ammunition, 30 pounds of marijuana, $10,000 in U.S. currency, a vehicle, and over 100 bars of Xanax.

• Sam Bent, 32, of St. Johnsbury, Vermont (and formerly of East Burke, Vermont), and his cousin, Djeneba Bent, 26, also of St. Johnsbury (and formerly East Burke) were charged with conspiracy to distribute LSD, MDMA (also known as “ecstasy”), cocaine, and marijuana in an indictment returned by a federal grand jury in the District of Vermont.  The indictment alleges that the conspiracy involved setting up accounts on dark web marketplaces, establishing online identities, accepting Bitcoin in exchange for sales over the dark web, and mailing controlled substances from several different post offices in Northeastern Vermont and Northwestern New Hampshire in an effort to avoid detection.   The indictment also charges Sam Bent with four counts of money laundering involving three different exchanges of bitcoin drug distribution proceeds for U.S. currency. 

• In Fresno, California, a federal grand jury returned an 11-count indictment on May 17, against Daniel Boyd McMonegal, 35, of San Luis Obispo and Mariposa, California, charging him with drug distribution and money laundering in the Eastern District of California.  According to the indictment, McMonegal, using the online monikers “Sawgrass,” “Ross4Less,” and “ChristmasTree,” distributed marijuana on various dark web marketplaces, including Dream Market.  McMonegal was also the owner of a marijuana delivery service in San Luis Obispo called West Coast Organix, which claimed to be a non-profit medical marijuana cooperative.  McMonegal then laundered the Bitcoin proceeds of his drug distribution through an undercover agent located in New York.  After receiving the Bitcoin from McMonegal, the undercover agent mailed parcels of cash to McMonegal in San Luis Obispo and Mariposa.

More than 50 Darknet vendor accounts were identified and attributed to the real individuals selling illicit goods on Darknet market sites such as Silk Road, AlphaBay, Hansa, Dream, and others. HSI-New York Field Division and MLARS coordinated with law enforcement and federal prosecutors to investigate 65 targets identified by the undercover operation in more than 50 Federal districts, including: the District of Arizona, the Eastern District of Arkansas, the Western District of Arkansas, the Central District of California, the Eastern District of California, the Northern District of California, the Southern District of California, the District of Colorado, the District of Connecticut, the Middle District of Florida, the Northern District of Florida, the Southern District of Florida, the Northern District of Iowa, the District of Kansas, the District of Maryland, the Eastern District of Michigan, the District of Minnesota, the Eastern District of North Carolina, the Western District of North Carolina, the District of New Hampshire, the Northern District of New York, the Southern District of New York, the Western District of New York, the District of North Dakota, the Northern District of Ohio, the Southern District of Ohio, the District of Oregon, the Eastern District of Pennsylvania, the Middle District of Pennsylvania, the District of South Carolina, the District of South Dakota, the Eastern District of Texas, the Northern District of Texas, the Southern District of Texas, the Western District of Texas, the Eastern District of Virginia, the District of Vermont, the Eastern District of Washington, and the Western District of Washington.  FBI was part of the investigative team in the Northern District of California.   

The investigation is ongoing.

This year, for the first time, the 2018 Commerce, Justice, Science, and Related Agencies Appropriations Act provides for three percent of funds from the Crime Victims Fund to be used to support a broad set-aside program for Indian tribes to improve services to crime victims.

The Justice Department’s Office for Victims of Crime (OVC) is seeking applications for the FY 2018 Tribal Victim Services Set-Aside Program solicitation. Under the solicitation, OVC will award eligible tribes, tribal consortia, and tribal designees grants to support a wide-range of services for victims of crime.  OVC anticipates making up to $110 million available through this solicitation to support tribes to improve victim services.

The Department of Justice has long recognized the critical need to fully and more effectively support American Indian and Alaska Native (AI/AN) victims of crime. In recent years, the department has conducted numerous tribal consultations and listening sessions to learn more about the needs and resources associated with supporting AI/AN crime victims.  The FY 2018 set-aside program has expanded the types of crimes addressed to cover victims of human trafficking; victimization as a result of opioid/drug-related crisis, child abuse and neglect, as well as victims of cybercrime and financial crime, among other areas.  

In developing the scope of activities allowable with this funding, OVC took into account input from tribal leaders and other stakeholders regarding needs for victim services in tribal communities.  This solicitation has a streamlined, two-phase application process for this unique program.

OVC will conduct a Phase 1 pre-application webinar on Thursday, June 28.  Webinar participation is optional but strongly encouraged. OVC staff will review the solicitation requirements and conduct a question and answer session with interested potential applicants. Phase 1 applications are due on August 6, 2018.

To find out more about the tribal set-aside program and to register for the webinar online, visit here.

Federal indictments were unsealed today charging current and former supervisory corrections officers at the Cheatham County Jail in Ashland City, Tennessee, with federal civil rights and obstruction offenses, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Don Cochran of the Middle District of Tennessee. Former Corporal Mark Bryant is charged with two counts of deprivation of rights under color of law, in violation of Title 18, United States Code, Section 242, and two counts of obstruction of justice, in violation of Title 18, United States Code, Section 1519.  Sergeant Gary Ola is charged with two counts of making false statements to federal investigators, in violation of Title 18, United States Code, Section 1001. Both were arrested earlier today and will make initial appearances before a U.S. Magistrate Judge later this afternoon.

Bryant’s indictment alleges that, on Nov. 5, 2016, he twice used unlawful force on a restrained 18-year-old detainee inside the jail.  In the first incident, Bryant used a Taser to stun the detainee four times for a total of approximately 50 seconds while the detainee was in a restraint chair.  In a second incident that occurred on the same night, Bryant tased the detainee for approximately 11 seconds without legitimate justification after the detainee was placed in handcuffs and surrounded by multiple officers. As a result of these unjustified uses of force, the detainee sustained bodily injury.  The indictment further charges that Bryant obstructed justice by submitting false reports about both incidents.

Ola’s indictment alleges that he made materially false statements to investigators in two separate interviews during the investigation of Bryant’s Taser usage. In August 2017, Ola falsely told agents with the FBI and Tennessee Bureau of Investigation that he walked away from Bryant and did not see one or more of the Taser cycles that Bryant used on the restrained detainee.  In a second interview with the FBI in May 2018, Ola stated falsely that he did not see Bryant tase the detainee after officers placed the detainee in handcuffs.

If convicted, Bryant faces a maximum sentence of 10 years in prison for the color of law charges and 20 years in prison for the obstruction charges, three years of supervised release, and a fine of up to $250,000. Ola faces a maximum sentence of five years in prison, three years of supervised release, and a fine of up to $250,000. 

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

These cases were investigated by the Federal Bureau of Investigation, and are being prosecuted by Assistant U.S. Attorney Sara Beth Myers of the Middle District of Tennessee’s Nashville Office and Civil Rights Division Trial Attorney Michael J. Songer.

The U.S. Department of Justice’s Bureau of Justice Assistance (BJA) today awarded $2,000,100 to the State of Nevada to cover expenses related to the law enforcement response to the Oct.1, 2017, mass shooting in Las Vegas. The shooting, which occurred during a country music festival, left 58 people dead and over 500 injured.

State and local law enforcement agencies mobilized officers who responded to the shooting and carried out critical operations and support. This award, which supplements an earlier award of $1 million announced last October, will reimburse the agencies for continued expenses resulting from services provided by sworn and non-sworn law enforcement personnel, including protecting and safeguarding those directly affected, including members of the public and local, and state personnel who responded to the tragedy.  

"In this Department of Justice, we back the blue," said Attorney General Jeff Sessions. "That’s why, when there is a tragedy, we are there for police and first responders.  Today we continue to help state and local police in Nevada to rebuild after the deadliest mass shooting in American history, providing a total of $3 million to cover their expenses since that terrible day. We honor and respect the 85 percent of law officers in this country who serve at the state, local, and tribal levels, and we continue to support them and their life-saving work every single day."

BJA invited the Nevada Department of Public Safety to apply for funding under the Bureau of Justice Assistance Fiscal Year 2018 Emergency Federal Law Enforcement Assistance Program. This program supports the Department of Justice’s mission of reducing crime and supporting public safety personnel in the context of an emergency situation in which state and local resources may be inadequate to protect the lives and property of citizens or to enforce criminal law.           

For more information about the Bureau of Justice Assistance please visit www.bja.gov

The Justice Department today announced that it has reached a settlement agreement with J.C. Penney Corporation, Inc. (J.C. Penney). The agreement resolves two investigations, one into whether J.C. Penney unlawfully rejected a lawful permanent resident’s valid work authorization documentation, and the other into whether J.C. Penney violated the Immigration and Nationality Act (INA) by unlawfully reverifying the work authorization of certain non-U.S. citizens based on their citizenship status.

The Department’s first investigation was prompted by a lawful permanent resident’s charge alleging that J.C. Penney violated the INA’s anti-discrimination provision when J.C. Penney fired her in August 2016. The investigation found that J.C. Penney had improperly rejected the worker’s unexpired Permanent Resident Card as proof of her work authorization, based on her citizenship status. The second investigation found that J.C. Penney had unlawfully  reverified the work authorization of certain non-U.S. citizens solely based on their citizenship status, even though those non-citizens had presented the same type of valid work authorization documents as U.S. citizens when first hired. The Department also found that J.C. Penney unlawfully requested specific immigration documents from certain workers during the process of reverifying their work authorization because of their immigration status. Among other things, the INA prohibits employers from (1) rejecting valid work authorization documents, (2) limiting a worker’s choice of documentation to present for employment verification or reverification purposes, and (3) subjecting employees to different or unnecessary documentary demands, based on the employee’s citizenship, immigration status, or national origin.

Under the terms of the settlement, J.C. Penney will pay a civil penalty of $14,430 to the United States, provide $11,177.60 in back pay to the worker who filed the charge, train its staff and corporate human resources personnel, post notices informing workers about their rights, and be subject to departmental monitoring and reporting requirements. 

“Employers should not impose unlawful and discriminatory burdens on employees based on their citizenship or immigration status during the reverification process,” said Acting Assistant Attorney General John Gore. “It is critical for all employers to correctly train their employees on proper Form I-9 procedures at both initial hiring and reverification, and I am pleased that J.C. Penney has agreed to undertake such training.”

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

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

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

Today, a federal court in Miami permanently barred Jessyca Bernard from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, to which Bernard agreed, was signed by Chief Judge K. Michael Moore of the U.S. District Court for the Southern District of Florida.

The complaint alleges that Bernard, of Lauderhill, Florida, owned and operated Proper Taxes, Inc. in Miami Gardens, Florida.  According to the complaint, Bernard fabricated losses for her customers’ side businesses in order to secure refunds to which her customers were not entitled. In one example cited in the complaint, Bernard prepared a customer’s tax returns that reported losses of more than $27,000 and $22,000 based upon fictitious expenditures for supplies, utilities, and medical expenses. Bernard also prepared a customer’s return that fabricated more than $11,000 in losses, including $8,000 in supplies for the customer’s side business of washing cars on weekends, according to the complaint.

Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips 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 with details.

WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con J.C. Penney Corporation, Inc. («J.C. Penney»). El acuerdo resuelve dos investigaciones: la primera para determinar si J.C. Penney rechazó ilegalmente el documento válido de autorización para trabajar de una residente permanente legal, la segunda para comprobar si J.C. Penney vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al reverificar de forma ilícita la autorización para trabajar de ciertos trabajadores no ciudadanos estadounidenses por motivos de su estatus de ciudadanía.

La primera investigación del Departamento fue el resultado de una denuncia presentada por una residente permanente legal que alegó que J.C. Penney había vulnerado la disposición antidiscriminatoria de la INA al despedirla en agosto del 2016. La investigación halló que J.C. Penney había rechazado, de manera incorrecta, la tarjeta de residencia permanente en vigor de la trabajadora como prueba de su autorización para trabajar, con base en su estatus de ciudadanía. La segunda investigación halló que J.C. Penney, de forma ilícita, había reverificado la autorización para trabajar de ciertos trabajadores no ciudadanos estadounidenses con base únicamente en su estatus de ciudadanía, aunque aquellos que no eran ciudadanos habían presentado el mismo tipo de documentos válidos de autorización para trabajar que presentaron ciudadanos estadounidenses cuando recién fueron contratados. Asimismo, el Departamento descubrió que J.C. Penney había solicitado ilegalmente, documentos migratorios específicos de ciertos trabajadores durante el proceso de reverificación de su autorización para trabajar por motivos de su estatus migratorio. Entre otras cosas, la INA prohíbe que los empleadores: (1) rechacen documentos válidos de autorización para trabajar; (2) limiten los documentos entre los que un trabajador puede escoger para fines relacionados con la verificación o reverificación para el empleo; y (3) sometan a empleados a solicitudes de documentos diferentes o innecesarias, con base en la ciudadanía, estatus migratorio o nacionalidad de origen del empleado.

Conforme los términos del acuerdo, J.C. Penney pagará sanciones civiles a los Estados Unidos que ascienden a $14.430, dará $11.177,60 en pagos retroactivos a la trabajadora que presentó la denuncia, capacitará a su personal general y el de la oficina corporativa, publicará avisos para informar a los trabajadores acerca de sus derechos y se someterá a los requisitos de supervisión y declaración del Departamento.

«Los empleadores no deben imponer cargas discriminatorias e ilícitas en sus empleados por motivos de su estatus migratorio o de ciudadanía durante el proceso de reverificación», declaró John Gore, el Fiscal General Auxiliar en funciones. «Es esencial que todo empleador capacite correctamente a sus empleados en cuanto a los procedimientos correctos para el Formulario I-9, tanto en la contratación inicial como en la reverificación. Estoy muy contento que J.C. Penney haya acordado someterse a tal capacitación».

La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias y la intimidación.

Para más información sobre protecciones contra la discriminación en el empleo en virtud de las leyes migratorias, llame a la línea directa de la IER para trabajadores al 1‑800‑255-7688 (1‑800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; mande un correo electrónico a IER@usdoj.gov o visite la página web de la IER en inglés o español.  

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

A former Killeen, Texas resident was sentenced to 42 months in prison today for aiding and assisting in the preparation and filing of a false tax return and aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents, Shermin Marshall devised a scheme to file false federal income tax returns on behalf of his clients.  Marshall falsified specific items on his clients’ tax returns in order to fraudulently increase their tax refunds.  Marshall directed clients’ refunds to be deposited into financial accounts that he controlled and, unbeknownst to his clients, Marshall stole a portion of those refunds.  To facilitate the diversion of the stolen funds, Marshall opened financial accounts in his clients’ names, without their permission.

In addition to the term of imprisonment, U.S. District Court Judge Lee Yeakel ordered Marshall to serve three years of supervised release and to pay $397,367 in restitution to the Internal Revenue Service.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Robert A. Kemins and David Zisserson, who are prosecuting the case and the U.S. Attorney’s Office for the Western District of Texas (Waco Division) for their substantial assistance.

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

The Justice Department today announced that Firdos Sheikh, 58, of Elk Grove, California, was indicted by a federal grand jury in the U.S. District Court for the Eastern District of California on two counts of forced labor, two counts of alien harboring for financial gain, one count of obstructing a forced labor investigation, and one count of making false statements to federal agents. The announcement was made by Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division.

According to the indictment, between October 2008 and June 2013, the defendant harbored and concealed two victims on her property and other locations and forced them to provide labor and services for her financial benefit. In July 2013, the defendant lied to federal agents and attempted to hide one of the victims from the agents in order to obstruct their investigation.

An indictment is merely an accusation, and the defendant is presumed innocent unless proven guilty. If convicted, the defendant faces a maximum sentence of 20 years in prison, a $250,000 fine, and mandatory restitution to the victims.

The case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Trial Attorneys William E. Nolan and David Reese of the Civil Rights Division’s Criminal Section and Human Trafficking Prosecution Unit, with assistance from Trial Attorney Amanda Wick of the Criminal Division’s Money Laundering and Asset Recovery Section.

The Department of Justice announced today that it will require CRH plc and CRH Americas Materials, Inc. to divest an aggregate quarry in Rocky Gap, Virginia, in order to proceed with its proposed acquisition of Pounding Mill Quarry Corporation.    

The Department’s Antitrust Division filed a civil antitrust lawsuit in the U.S. District Court for the District of Columbia to block the proposed transaction.  At the same time, the Department filed a proposed settlement that, if approved by the court, would resolve the Department’s competitive concerns.

“Today’s structural settlement resolves both horizontal and vertical competition concerns and ensures that purchasers of aggregate and asphalt concrete in southern West Virginia — and ultimately, taxpayers — will continue to benefit from competition in the supply of these critical products used in road construction and maintenance,” said Assistant Attorney General Makan Delrahim of the Antitrust Division.  “As a result of the proposed acquisition, CRH would have owned nearly all of the aggregate quarries that supply southern West Virginia.”

According to the Department’s complaint, both CRH and Pounding Mill produce and sell aggregate. CRH also produces and sells asphalt concrete.  Aggregate is an essential input in asphalt concrete.  Aggregate and asphalt concrete are the primary materials used to build, pave, and repair roads. 

The complaint alleges that, for a significant number of customers in southern West Virginia, CRH and Pounding Mill are two of only three competitive sources of aggregate qualified by the West Virginia Department of Transportation.  According to the complaint, the loss of horizontal, head-to-head competition between CRH and Pounding Mill would likely result in higher prices for aggregate customers in that area.  

The complaint also alleges that the acquisition would raise vertical competition concerns.  Only one company, a recent entrant, competes with CRH to supply asphalt concrete in southern West Virginia.  That company relies on Pounding Mill to supply the aggregate it needs to manufacture asphalt concrete.  According to the complaint, if CRH were to acquire its rival’s source of aggregate, it would have the incentive and ability to disadvantage its rival by withholding this essential input or supplying it on less favorable terms, resulting in higher prices for the sale of asphalt concrete in southern West Virginia.  

Under the terms of the proposed settlement, CRH must divest the Pounding Mill quarry in Rocky Gap, Virginia and related assets to an acquirer approved by the United States.  This structural divestiture remedies the competitive harm resulting from the elimination of a significant aggregate competitor and provides an alternative source of aggregate for CRH’s only asphalt concrete competitor.  

The settlement also includes, consistent with other antitrust settlements in this administration, several provisions designed to improve the effectiveness of the decree and the Division’s future ability to enforce it. 

CRH plc is headquartered in Ireland and is a global supplier of building materials.  In the United States, CRH, through its vast network of subsidiaries, is a leader in the supply of aggregate, asphalt concrete, and ready mix concrete, among numerous other things, conducting business in 44 states.  In 2015, CRH had global sales of approximately $26 billion, with sales in the United States of approximately $14 billion.  

CRH Americas Materials, Inc. is incorporated in Delaware with its principal place of business in Atlanta, Georgia.  CRH Americas Materials, Inc. is an indirect subsidiary of CRH Americas, Inc.  CRH Americas Materials, Inc. is one of the largest suppliers of aggregate, asphalt concrete, ready mix concrete, and construction and paving services in the United States.  

Pounding Mill is a Delaware corporation headquartered in Bluefield, Virginia.  Pounding Mill owns and operates four quarries — three in Virginia and one in West Virginia — from which it supplies aggregate.  In 2015, Pounding Mill had sales of approximately $44 million.  

As required by the Tunney Act, the proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register.  Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Maribeth Petrizzi, Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8700, Washington, D.C. 20530.  At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.

A former officer of a software company in Sterling, Virginia, was sentenced to 15 months in prison today for conspiring to defraud the government by failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia.

According to court documents, Kristie Lynn McDonald was the Vice President of Finance and Administration of a software company in Sterling, Virginia.  From January 2011 to February 2013, McDonald conspired with the company’s Chief Executive Officer Robert Lewis to defraud the United States by failing to pay over to the IRS more than $1.8 million in payroll taxes withheld from employee paychecks.  

As part of their scheme, McDonald and Lewis circumvented the company’s normal payroll and accounting procedures by paying some employees with manual paychecks.  The employees still received the correct pay after withholdings, but by bypassing the accounting system, McDonald and Lewis were able to hide the fact that the withholdings were not being paid over to the IRS.  The practical effect of their scheme was to conceal the company’s failing financial condition from its Board of Directors.  They also caused the company to file false quarterly employment tax returns with the IRS that underreported the amount of tax due. 

During this same period, McDonald and Lewis failed to remit the full amount of employee retirement contributions to the company’s retirement plan.  Through their actions, the company failed to transfer nearly $225,000 in voluntary employee retirement withholdings.  McDonald and Lewis used the misappropriated money to pay the operating expenses of the company, which included their own six figure salaries and salary raises for other employees.

In addition to the term of imprisonment, U.S. District Judge T.S. Ellis III ordered McDonald to serve three years of supervised release and to pay restitution in the amount of $1,812,706 million.  McDonald and Lewis previously plead guilty on March 23.  Lewis is scheduled to be sentenced on June 29.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Terwilliger thanked agents of IRS Criminal Investigation and the Department of Labor who conducted the investigation, and Tax Division Trial Attorneys Kevin Schneider and Charles M. Edgar, Jr. and Assistant U.S. Attorney Ryan Faulconer, who are prosecuting the case.

The former Director of the Program Management Office in the Secretary of Defense Communications Office (SDC) pleaded guilty today to a criminal conflicts of interest charge for using her federal employment to participate in acts that financially benefited her and her husband’s company.  Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.

Kimberly S. Brewer, 37, of Fredericksburg, Virginia, pleaded guilty before Magistrate Judge John F. Anderson of the U.S. District Court for the Eastern District of Virginia to a one-count information charging her with violating a criminal conflicts of interest law that prohibits federal employees from using their federal employment to personally and financially benefit themselves or certain immediate family members, including spouses.

According to the plea documents, the SDC is the office within the U.S. Department of Defense responsible for, among other things, operating and maintaining the communications systems supporting the U.S. Secretary of Defense.  During the relevant time period, Brewer served as SDC’s Director of the Program Management Office at the same time that her husband’s company, Insight Technology Group LLC (ITG), was a subcontractor for a company that had a $4.68 million contract with the SDC.  Even though Brewer signed a disqualification statement in which she agreed to refrain from participating in any matters that would affect ITG, Brewer repeatedly personally and substantially participated in matters that affected the company’s financial interests, including advocating with her superiors on behalf of ITG and interfering in personnel matters affecting the company.  These acts directly impacted financial matters affecting ITG’s financial interests and, indirectly, her own. 

The case was investigated by the Defense Criminal Investigative Service of the U.S. Department of Defense Office of Inspector General, and is being prosecuted by Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Samantha P. Bateman of the Eastern District of Virginia.

Acting Assistant Attorney General John Gore, United States Attorney Erica H. MacDonald, and Jill Sanborn, Special Agent in Charge of the FBI’s Minneapolis Division, today announced a five-count federal indictment charging Michael Hari, 47, Michael McWhorter, 29, and Joe Morris, 22, with charges including federal civil rights and hate crime violations, in connection with an explosion at the Dar al-Farooq Islamic Center (DAF) in Bloomington, Minnesota, on Aug. 5, 2017. McWhorter, Morris, and Hari were previously named in a criminal complaint filed on March 13, 2018, in the District of Minnesota, charging them with arson.

The three defendants are currently being held in custody in Urbana, Illinois, on separate charges.

“All people – regardless of where they worship – have the right under federal law to live free from the threat of violence and discrimination,” said Acting Assistant Attorney General John Gore.  “This Justice Department will hold accountable under the law anyone who attempts to commit violent acts of hate by threat or action.”

“These three defendants allegedly plotted and executed a plan designed specifically to spread fear and threaten a fundamental right afforded to all, the freedom of religion,” said U.S. Attorney Erica H. MacDonald. “In spite of the destructive and violent act alleged in the indictment, our communities have found strength in taking a unified stand against the attack. My office and our law enforcement partners are committed to upholding the laws that protect the civil rights of all Americans.”

“Last year's bombing was more than just an attack against a single structure, it was an attack on the very religious freedoms we enjoy as Americans,” said Jill Sanborn, Special Agent in Charge of the FBI's Minneapolis Division. “The ability to worship how and where we want is a cornerstone of our country's foundation, and the FBI stands ready to work with the community and our law enforcement partners whenever those freedoms are attacked.”

The indictment returned by a federal grand jury alleges that Hari constructed a pipe bomb and rented a pickup truck in Champaign-Urbana, Illinois. Hari, McWhorter, and Morris drove from Illinois to Bloomington, Minnesota, in the pickup truck, stopping along the way to purchase diesel fuel and gasoline. The defendants mixed these ingredients together in a plastic container.

The indictment alleges that, in the early morning of Aug. 5, 2017, Morris broke a window at DAF and threw the plastic container containing the diesel fuel and gasoline mixture into the building. It is alleged that McWhorter then lit the fuse and threw the pipe bomb in the broken window at DAF. According to the court documents, the window that was broken was part of the Imam’s office. When the pipe bomb exploded, it ignited the mixture in the plastic container, causing extensive damage in the Imam’s office. McWhorter and Morris returned to the pickup truck, where Hari was waiting, and sped off, driving back to Illinois.

The charges allege that the defendants targeted the mosque with intent to damage the mosque because of its religious character and with intent to obstruct Muslims from worshipping there.  DAF serves as a religious center as well as a religious school for children. As described in the complaint previously filed with the Court, McWhorter said in reference to the DAF explosion, that the defendants did not intend to kill anyone, but they wanted to “scare [Muslims] out of the country” and to “show them hey, you’re not welcome here…” 

As described in the complaint previously filed with the Court, a tip from a confidential source helped to lead investigators to the defendants.

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

The Federal Bureau of Investigation is leading the investigation. This case is being prosecuted by Assistant United States Attorneys Julie E. Allyn and John F. Docherty, with assistance from Trial Attorney Timothy Visser of the Justice Department’s Civil Rights Division.  The team is working in coordination with the U.S. Attorney’s Office in the Central District of Illinois.

James Baldinger, 51, of Minnesota, and a transport officer with the Prisoner Transportation Services of America (PTS), appeared in federal court today in Duluth, Minnesota, after a federal grand jury sitting in Albuquerque, New Mexico, indicted him on charges related to his sexual assaults of a female in his custody, and using his firearm in furtherance of those assaults.

Counts One and Two of the indictment charge Baldinger with committing civil rights offenses that resulted in bodily injury, including aggravated sexual abuse and the use of a deadly weapon. Count Three charges Baldinger with knowingly possessing a firearm in furtherance of these crimes of violence.

Baldinger faces a maximum of life in prison if convicted of the crimes charged, and a mandatory minimum of five years in prison for possession of the firearm.

An indictment is merely a formal accusation of criminal conduct, and Baldinger is presumed innocent unless proven guilty.

This case is being investigated by the Albuquerque Division of the FBI in cooperation with the New Mexico State Police. It is being prosecuted by Assistant United States Attorney Shaheen Torgoley of the District of New Mexico, and Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice. 

The Justice Department today announced that it has entered into an agreement with the State of Wisconsin to ensure that Wisconsin voters who temporarily reside overseas receive voting protections to which they are entitled under the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA). Under this agreement, Wisconsin election officials will ensure that U.S. citizens residing overseas temporarily can receive their ballots electronically and utilize a Federal write-in absentee ballot to vote, if necessary, like other UOCAVA voters. 

The agreement was filed in conjunction with a lawsuit filed today alleging that Wisconsin was not affording its voters residing overseas temporarily all of the voting protections guaranteed by UOCAVA. This agreement was necessary because Wisconsin law differentiates between permanent and temporary overseas voters and as result, temporary overseas voters were deprived of certain UOCAVA protections.   

UOCAVA protects the voting rights in elections for federal office of absent uniformed service members, their family members, and U.S. citizens residing outside the U.S.  UOCAVA requires states to allow all UOCAVA voters to receive their blank absentee ballots by mail or electronically, at the voters’ option.  UOCAVA also requires States to allow all UOCAVA voters to use a Federal write-in absentee ballot as a back-up measure for voting, if the voters have applied on time for an absentee ballot but have not received the ballot from their state.  These protections extend to all overseas voters, regardless of whether the voter resides overseas indefinitely or temporarily.   

Wisconsin state election officials have agreed to take steps to implement these protections prior to the upcoming Aug. 14 Federal primary election and Nov. 6 Federal general election, and to notify local election officials and the public about these requirements. The state is also required to take steps to assure these protections for all future Federal elections.     

 “This agreement reflects the Department’s continued and resolute commitment to protecting the right to vote for members of our armed forces, their families, and overseas U.S. citizens, and ensuring that all of these voters are afforded a meaningful opportunity to vote in federal elections,” said Acting Assistant Attorney General John Gore for the Civil Rights Division.  “I commend the Wisconsin Elections Commission and the other state officials who worked with the Department to reach a resolution to guarantee that the full protections of UOCAVA are provided to all overseas voters in the upcoming 2018 Federal elections and in future Federal elections.”

More information about UOCAVA and other federal voting laws is available on the Department of Justice website at https://www.justice.gov/crt/uniformed-and-overseas-citizens-absentee-voting-act.  Please report any complaints to the Civil Rights Division at 1-800-253-3931.

Today Assistant Attorney General for National Security John C. Demers and U.S. Attorney Bob Troyer announced that a jury in the U.S. District Court in Denver found Jamshid Muhtorov guilty on three counts involving material support to a terrorist organization.  The guilty verdicts come after a 19-day trial before Senior U.S. District Court Judge John L. Kane.  The defendant was acquitted of an additional count. 

“Jamshid Muhtorov and Bakhtiyor Jumaev, who was previously convicted, conspired and attempted to provide material support to the Islamic Jihad Union (IJU), a designated foreign terrorist organization,” said Assistant Attorney General Demers. “Thanks to all the prosecutors, agents, and analysts on these cases, these defendants will now be held accountable for their crimes.”

“The jury verdict today reflects the strength and character of our prosecution team, the FBI, and the American justice system," said U.S. Attorney Troyer. "We thank the jury for their essential role in that system and service to our country.” 

On April 30, 2018, a jury in the U.S. District Court found Muhtorov’s co-defendant, Bakhtiyor Jumaev, guilty of similar charges.  Sentencing for Jumaev is scheduled for July 18, 2018.  Sentencing for Muhtorov has not yet been set.  

A former Fayetteville, North Carolina man was sentenced to 41 months in prison to be served after the expiration of his state sentence, with the expected release date of 2040, for mailing a threatening communication and retaliating against a federal official in the Western District of North Carolina.  

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge John A. Strong of the FBI Charlotte, North Carolina Field Office and U.S. Marshal Greg Forest of the Western District of North Carolina, made the announcement.

George Victor Stokes, 42, was sentenced by Honorable Max O. Cogburn Jr., who sentenced him to three years of supervised release following his prison sentence.  According to information included in the indictment and to which Stokes’ agreed to at his guilty plea, Stokes mailed a letter threatening to kill a U.S. District Court Judge, the former U.S. Attorney for the Western District of North Carolina, and an Assistant U.S. Attorney for the Western District of North Carolina.  Specifically, Stokes threatened to “blow” the head off of a U.S. District Court Judge and stated it was “his duty to do this.”  Stokes admitted he sent the death threat in retaliation for the victims’ roles in the sentencing and prosecution of Stokes in a prior federal case for similar conduct, mailing a threatening communication.

Stokes is currently incarcerated in state prison for an unrelated crime. After finishing his state prison term, he will be transferred to federal prison to complete his federal sentence. 

FBI Charlotte and the U.S. Marshals Service for the Western District of North Carolina investigated the case.  Trial Attorneys Matthew K. Hoff and Rachel E. Timm of the Organized Crime and Gang Section prosecuted the case.  

Real estate investor Stuart Hankin pleaded guilty today for his role in a conspiracy to rig bids, in violation of antitrust law, at online public foreclosure auctions in Florida, the Department of Justice announced.  He is the first defendant to plead guilty in this conspiracy.  

“Those who corrupt the foreclosure auction process through illegal bid rigging must expect to face the consequences,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “The Division remains committed to rooting out antitrust violations at foreclosure auctions, whether the auction is online or in person, and whether the conspiracy is carried out in person, in text messages, or through other electronic means.”

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

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

“Stuart Hankin and his co-conspirators used bid rigging to successfully undermine the legitimate, competitive foreclosure auction process for certain properties in Palm Beach County, Florida,” said Special Agent in Charge Robert F. Lasky for FBI Miami.  “Their greed left victims – including homeowners and other valid stakeholders – shortchanged.  The FBI and our law enforcement partners will vigorously investigate such schemes.”

A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.

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

Amir Said Rahman Al-Ghazi, 41, aka Robert C. McCollum, of Sheffield Lake, Ohio, was sentenced to 16 years in prison for one count of providing material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, as well as two counts of being a felon in possession of firearms.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Justin E. Herdman for the Northern District of Ohio, and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division made the announcement.

“The National Security Division is committed to identifying and prosecuting those who seek to provide material support to terrorist groups like ISIS.” said Assistant Attorney General Demers.  “I want to thank the prosecutors and our partners in law enforcement—including the FBI and its Joint Terrorism Task Force—who ensured that this defendant was held accountable for his crimes.”

“This case is a stark reminder that ISIS is more than an abstract threat,” said U.S Attorney Herdman. “Through social media and other means, ISIS and groups like it seek to radicalize people of all backgrounds into its world of violence.”

“This case demonstrates law enforcement’s number one priority – to keep our communities and our nation safe,” said Special Agent in Charge Anthony.  “It is clear that no area is immune from the influence of ISIS and its supporters.  We hope this case will serve as a strong message to others who may consider providing support to terrorists.  The FBI and our Joint Terrorism Task Force partners are committed to identifying and stopping these individuals.”

Al-Ghazi, who changed his name from Robert McCollum last year, pledged his support to ISIS and Abu Bakr Al-Baghdadi via social media in 2014.  From July 2014 to June 2015, Al-Ghazi made multiple statements trying to persuade others to join ISIS.  He also expressed his own desire to perpetrate an attack on the United States and had attempted to purchase an AK-47 assault rifle.  Al-Ghazi has communicated with individuals he believed to be members of ISIS in the Middle East and took steps to create propaganda videos for ISIS, according to court documents.

This case was investigated by the FBI’s Joint Terrorism Task Force.  This case is being prosecuted by Assistant U.S. Attorneys Matthew W. Shepherd of the Northern District of Ohio, with assistance from Trial Attorney Erin Creegan of the National Security Division’s Counterterrorism Section.

Parveg Ahmed, 22, of Queens, New York, pleaded guilty today to attempting to provide material support or resources to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Richard P. Donoghue for the Eastern District of New York, Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office, and Commissioner James P. O’Neill of the NYPD, announced the guilty plea, which was accepted by U.S. District Judge Ann M. Donnelly.

As detailed in publicly filed court documents, the defendant is a U.S. citizen who traveled to Saudi Arabia in June 2017, purportedly to celebrate an Islamic religious holiday.  Upon his arrival in Saudi Arabia, the defendant attempted to travel to Syria to join ISIS.  The defendant was apprehended in a country bordering Syria, during his attempted travel to ISIS-controlled territory.  Ahmed was deported back to the United States on Aug. 28, 2017, where he was arrested at John F. Kennedy International Airport in New York.

Prior to his travel, the defendant had repeatedly expressed support on social media for ISIS and for individuals who provided support to the foreign terrorist organization’s mission of violent extremism.  On July 17, 2017, JTTF agents obtained a search warrant for the defendant’s personal computer, and learned, among other things, that the defendant had viewed or listened to recordings of radical Islamic clerics Anwar al-Awlaki and Abdullah el-Faisal.  Al-Awlaki was a U.S.-born cleric and prominent leader of the foreign terrorist organization al-Qaeda in the Arabian Peninsula who was killed on or about Sept. 30, 2011.  El-Faisal, a Jamaican-born cleric, was found guilty in the United Kingdom of, among other things, solicitation to commit murder, for preaching to followers to kill individuals, including Americans, because he deemed them to be enemies of Islam.  Additionally, agents learned that, on the same day the defendant left the United States for the Middle East, the defendant researched how to erase the data on his computer.

The defendant faces a statutory maximum of 20 years in prison at sentencing.  The maximum potential penalty is prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Assistant U.S. Attorneys Craig R. Heeren and Margaret E. Lee of the Eastern District of New York are in charge of the prosecution, with assistance from Trial Attorney Joshua Champagne of the National Security Division’s Counterterrorism Section.

A federal grand jury for the District of Colorado has returned an indictment, which was unsealed today, charging two Colorado business owners with conspiring to defraud the United States and to commit money laundering, money laundering and filing false claims, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to the indictment, Matthew Taylor and Martin Fields owned businesses in Colorado and New Jersey and allegedly conspired with the owner of a Colorado-based home heating oil business, Shintan, Inc., to file more than $7 million in false claims for refundable fuel tax credits with the Internal Revenue Service (IRS).  A refundable fuel tax credit called the “Biodiesel Mixture Credit” was available to blenders of biodiesel mixture who used the mixture as a fuel or sold it for use as fuel.

The indictment charges that Taylor and Fields filed multiple false claims for the credit with the IRS and then laundered the proceeds of the scheme through bank accounts they controlled.  They allegedly spent the fraudulently obtained funds on a variety of expenses, including $890,000 for a down payment on a house, $16,000 at a clothing store, more than $12,000 at a TV store, more than $24,000 towards luxury vacation rentals and paid more than $11,000 to a landscape company.

If convicted, the defendants face a maximum sentence of 5 years in prison on the conspiracy to defraud the government count, 5 years in prison on each false claim count, and 10 years in prison on the money laundering conspiracy count and each money laundering count.   They also face a period of supervised release, restitution and monetary penalties.  An indictment merely alleges that crimes have been committed.  A defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of  IRS Criminal Investigation and Environmental Protection Agency Criminal Investigation Division, who investigated the case, and Tax Division Trial Attorneys Leslie A. Goemaat and Arthur J. Ewenczyk, who are prosecuting the case.

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

Aziz Ihab Sayyed, 23, of Huntsville, Alabama, was sentenced today to 15 years in prison followed by lifetime supervised release for attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Jay E. Town for the Northern District of Alabama, and Special Agent in Charge Johnnie Sharp Jr. of the FBI’s Birmingham field office, made the announcement after sentencing by U.S. District Judge Abdul K. Kallon.

“We will not tolerate threats to our national security from terrorist groups like ISIS, which continues to radicalize and encourage terrorists through the internet,” said Assistant Attorney General Demers.  “The defendant, a citizen of this country, plotted to carry out attacks on his fellow Americans in our country, but was thwarted by the close cooperation of our partners in law enforcement.  This successful outcome should send a clear message to any other would-be terrorists that the National Security Division will find them and bring them to justice.”

“Aziz Sayyed was inspired by ISIS to kill or harm Americans and he has earned every bit of his prison term,” said U.S. Attorney Town.  “This case, and this investigation, serves as the gold standard for what is possible when federal, state and local law enforcement agencies work together.  The FBI did an outstanding job ensuring this investigation was successful by cultivating those layers of law enforcement necessary in cases like this.”

“The FBI’s Joint Terrorism Task Force is dedicated to identifying and bringing to justice those individuals who attempt to provide material support to foreign terrorist organizations, promote violent extremism, and threaten our national security,” said Special Agent in Charge Sharp.  “Today’s sentence is a culmination of the tireless efforts of our JTTF, and the invaluable partnership we have with the Huntsville Police Department.”

Sayyed pleaded guilty in March to the terrorism charge.  According to Sayyed’s plea agreement with the government, he attempted to provide services and personnel, namely himself, to ISIS.  He acknowledged that he bought bomb-building ingredients in 2017, that he stated his aspirations to conduct ISIS-inspired attacks on police stations and Redstone Arsenal in Alabama, and that he attempted to form a cell to conduct violent acts within the United States.

Between January and June of 2017 in Madison County, Sayyed, a U.S. citizen, obtained and viewed ISIS propaganda videos depicting ISIS forces committing bombings, executions by gunshot and beheading, and other violent acts.  Sayyed shared the videos and expressed his support for ISIS and for ISIS terrorist attacks around the world, according to his plea agreement.

Sayyed researched and learned how to make triacetone triperoxide (TATP), a highly volatile and extremely dangerous explosive material.  He then purchased the necessary ingredients for the explosive, and professed his aspiration to use TATP in an explosive belt or a car bomb.

On June 13, 2017, Sayyed met with an individual he understood to be an ISIS member.  In fact, the person was an undercover employee of the FBI.  Sayyed and the undercover employee discussed the danger of TATP, ISIS’s preference for the use of certain explosives, and Sayyed’s desire to assist ISIS, according to the plea agreement.  In that meeting, Sayyed offered to personally carry out attacks on behalf of ISIS.

The FBI investigated the case in conjunction with the Huntsville Police Department, Madison County District Attorney’s Office, Madison County Sheriff's Office, U.S. Army 902 MI Group, Redstone Arsenal’s Garrison Command, University of Alabama at Huntsville Police Department, Alabama Law Enforcement Agency, U.S. Immigration and Customs Enforcement, and Bureau of Alcohol, Tobacco, Firearms and Explosives.

Assistant U.S. Attorneys Henry Cornelius and Davis Barlow of the Northern District of Alabama prosecuted the case with the assistance from the National Security Division’s Counterterrorism Section. 

The Justice Department today announced that it reached a settlement with Setpoint Systems Inc., an Ogden, Utah, engineering company. The settlement resolves the Department’s investigation into whether the company engaged in hiring discrimination against non-U.S. citizens protected under the Immigration and Nationality Act’s (INA) anti-discrimination provision.

The Department’s investigation found that from 2015 to 2017, Setpoint Systems had an unlawful policy of hiring only U.S. citizens for professional positions and refusing to consider otherwise qualified non-U.S. citizens based on the company’s erroneous understanding of the International Traffic in Arms Regulations (ITAR).  ITAR regulates specific exports of defense articles and services, and limits the access of certain sensitive information to U.S. citizens, U.S. nationals, lawful permanent residents, asylees, and refugees. ITAR thus does not authorize employers to only hire U.S. citizens.  The anti-discrimination provision of the INA makes it unlawful for an employer to discriminate against an individual in the recruitment and hiring process based on citizenship status, unless authorized by law.

Under the settlement, Setpoint will pay a $17,475 civil penalty to the United States, train its human resources personnel on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.

“Employers may not adopt discriminatory hiring policies that harm workers who are protected by the law,” said Acting Assistant Attorney General John Gore. “We look forward to working with Setpoint Systems to ensure that its hiring procedures fully comply with the INA’s protections against citizenship status discrimination.”

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, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.  

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

Applicants or workers 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, should contact IER’s worker hotline for assistance.

Yesterday, a federal court in Jonesboro, Arkansas permanently barred Rachelle Eldridge-Bray from preparing federal income tax returns for others. The civil injunction order, to which Eldridge-Bray agreed, was signed by Judge D.P. Marshall Jr. of the U.S. District Court for the Eastern District of Arkansas.  

The complaint alleges that Eldridge-Bray prepares tax returns that understate her customers’ income tax liabilities and overstate her customers’ refunds. Eldridge-Bray unlawfully prepares federal tax returns with fabricated business income and expenses and bogus itemized deductions, according to the allegations in the complaint. 

Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips 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 with details.

Mississippi real estate investor Ivan Spinner became the sixth real estate investor to plead guilty in connection with the ongoing investigation into bid rigging at public real estate foreclosure auctions in Mississippi, the Department of Justice announced. 

Felony charges against Spinner were filed on June 8, 2018, in the U.S. District Court for the Southern District of Mississippi. According to those charges, from at least as early as April 20, 2010, through at least as late as August 21, 2015, Ivan Spinner conspired with others not to bid against one another for selected public real estate foreclosure auctions in the Southern District of Mississippi. Co-conspirators made and received payoffs in exchange for their agreement not to bid.  

“With today’s guilty plea, the Antitrust Division continues to hold those individuals accountable who corrupt the competitive process for their own financial gain,” said Makan Delrahim, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division. “The Division and its law enforcement partners remain committed to prosecuting bid rigging and restoring competition at these auctions in Mississippi and across the United States.”

“Individuals who defraud our home foreclosure process harm us all,” said United States Attorney Mike Hurst for the Southern District of Mississippi.  “Our prosecutors and investigators should be commended for continuing to pursue those who violate our antitrust laws simply to enrich themselves.”

“Today’s guilty plea is another example that those who participate in bid rigging in Mississippi will be brought to justice,” said Special Agent in Charge Christopher Freeze of the FBI in Mississippi. “Bid rigging is a serious offense which undermines the integrity of the public systems designed to protect our citizens. The FBI continues to participate with the Antitrust Division investigating allegations of fraudulent bidding during public auctions in our state."

The Department stated that the primary purpose of the conspiracy was to suppress and restrain competition in order to obtain selected real estate offered at public foreclosure auctions at non-competitive prices. When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with any remaining proceeds paid to the homeowner. According to court documents, these conspirators paid and received money in connection with their agreement to suppress competition, which artificially lowered the price paid at auction for such homes.

A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals.  The maximum fine for a Sherman Act charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the statutory maximum fine.  

The investigation is being conducted by Antitrust Division attorneys in the Washington Criminal II Section and the FBI’s Gulfport Resident Agency, with the assistance of the U.S. Attorney’s Office for the Southern District of Mississippi.  Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact Antitrust Division prosecutors in the Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/report-violations.  

Officer illegally arrested citizen after the citizen attempted to file complaints against him

The Justice Department today announced that William Dukes, Jr., a former sergeant with the Providence, Kentucky, Police Department, was found guilty Friday in federal court on one count of willfully arresting a citizen without probable cause.

After five days of trial, the jury convicted Dukes of arresting the victim, knowing that he did not have probable cause to believe that the victim had committed a crime, in violation of his 4th Amendment rights. The jury heard testimony that Dukes arrested the victim because the victim had called several law enforcement agencies seeking to file a complaint against him. The defendant was acquitted of another civil rights charge for violating the victim’s 1st Amendment rights and was also acquitted of an obstruction of justice charge. 

“Police officers across the country have an important duty to protect and safeguard the rights of members of their communities,” said Acting Assistant Attorney General John Gore. “Dukes did not use that authority within the boundaries of the law when he violated the 4th Amendment rights of an individual, and his actions will not be tolerated.”

“The men and women of Kentucky law enforcement represent the very best of our Commonwealth,” stated U.S. Attorney Russell Coleman. “But when they treat the rule of law as optional as did Mr. Dukes, they will be held responsible like any other citizen.”

Sentencing is set for Sept. 13. The statutory maximum on the charge is 120 months in prison. 

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

The Justice Department today announced that William Dukes, Jr., a former sergeant with the Providence, Kentucky, Police Department, was found guilty Friday in federal court on one count of willfully arresting a citizen without probable cause.

After five days of trial, the jury convicted Dukes of arresting the victim, knowing that he did not have probable cause to believe that the victim had committed a crime, in violation of his 4th Amendment rights. The jury heard testimony that Dukes arrested the victim because the victim had called several law enforcement agencies seeking to file a complaint against him. The defendant was acquitted of another civil rights charge for violating the victim’s 1st Amendment rights and was also acquitted of an obstruction of justice charge. 

“Police officers across the country have an important duty to protect and safeguard the rights of members of their communities,” said Acting Assistant Attorney General John Gore. “Dukes did not use that authority within the boundaries of the law when he violated the 4th Amendment rights of an individual, and his actions will not be tolerated.”

“The men and women of Kentucky law enforcement represent the very best of our Commonwealth,” stated U.S. Attorney Russell Coleman. “But when they treat the rule of law as optional as did Mr. Dukes, they will be held responsible like any other citizen.”

Sentencing is set for Sept. 13. The statutory maximum on the charge is 120 months in prison. 

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

John C. Demers, Assistant Attorney General for National Security, Geoffrey S. Berman, United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that Joshua Adam Schulte was charged in a 13-count Superseding Indictment (the “Indictment”) in connection with his alleged theft of classified national defense information from the Central Intelligence Agency (“CIA”) and the transmission of that material to an organization that purports to publicly disseminate classified, sensitive, and confidential information (“Organization-1”).  The Indictment also charges Schulte with the receipt, possession, and transportation of child pornography, as well as criminal copyright infringement.  Schulte, who is presently detained on the child pornography charges, will be arraigned by U.S. District Judge Paul A. Crotty.

“Leaks of classified information pose a danger to the security of all Americans,” said Assistant Attorney General Demers.  “It adds insult to injury when, as alleged here, the leaks come from former government officials in whom Americans placed their sacred trust. The National Security Division, alongside our partners in the Intelligence Community, will not waver in our commitment to pursue and hold accountable these officials, and I commend all those at the Department of Justice and the FBI who have worked diligently to investigate this matter and bring these charges.”

"Joshua Schulte, a former employee of the CIA, allegedly used his access at the agency to transmit classified material to an outside organization,” said Manhattan U.S. Attorney Geoffrey S. Berman. “During the course of this investigation, federal agents also discovered alleged child pornography in Schulte’s New York City residence.  We and our law enforcement partners are committed to protecting national security information and ensuring that those trusted to handle it honor their important responsibilities.  Unlawful disclosure of classified intelligence can pose a grave threat to our national security, potentially endangering the safety of Americans.”

“As alleged, Schulte utterly betrayed this nation and downright violated his victims. As an employee of the CIA, Schulte took an oath to protect this country, but he blatantly endangered it by the transmission of Classified Information.” said Assistant Director-in-Charge William F. Sweeney, Jr. “To further endanger those around him, Schulte allegedly received, possessed, and transmitted thousands of child pornographic photos and videos. In an effort to protect this nation against crimes such as these, the FBI's Counterintelligence Division in New York will continue to keep our mission at the forefront of our investigations in protecting the American public."

According to the Indictment, other court filings, and statements made during court proceedings: On March 7, 2017, Organization-1 released on the Internet classified national defense material belonging to the CIA (the “Classified Information”).  In 2016, Schulte, who was then employed by the CIA, stole the Classified Information from a computer network at the CIA and later transmitted it to Organization-1.  Schulte also intentionally caused damage without authorization to a CIA computer system by granting himself unauthorized access to the system, deleting records of his activities, and denying others access to the system.  Schulte subsequently made material false statements to FBI agents concerning his conduct at the CIA. 

Schulte was previously arrested on August 24, 2017, on charges relating to his receipt, possession, and transportation of approximately ten thousand images and videos of child pornography.  In March 2017, members of the FBI had searched Schulte’s residence in New York, New York, pursuant to a search warrant and recovered, among other things, multiple computers, servers, and other portable electronic storage devices, including Schulte’s personal desktop computer (the “Personal Computer”).  On the Personal Computer, FBI agents found an encrypted container (the “Encrypted Container”), which held over 10,000 images and videos of child pornography.  The Encrypted Container with the child pornography files was identified by FBI computer scientists beneath three layers of password protection on the Personal Computer.  Each layer, including the Encrypted Container, was unlocked using passwords previously used by Schulte on one of his cellphones.  Moreover, FBI agents identified Internet chat logs in which Schulte and others discussed their receipt and distribution of child pornography.  FBI agents also identified a series of Google searches conducted by Schulte in which he searched the Internet for child pornography.

Schulte, 29, of New York, New York, is charged with one count each of (i) illegal gathering of national defense information, (ii) illegal transmission of lawfully possessed national defense information, (iii) illegal transmission of unlawfully possessed national defense information, (iv) unauthorized access to a computer to obtain classified information, (v) theft of Government property, (vi) unauthorized access of a computer to obtain information from a Department or Agency of the United States, (vii) causing transmission of a harmful computer program, information, code, or command, (viii) making material false statements to representatives of the FBI, (ix) obstruction of justice, (x) receipt of child pornography, (xi) possession of child pornography, (xii) transportation of child pornography, and (xiii) copyright infringement.  A chart containing the charges and maximum penalties is below.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the outstanding investigative efforts of the FBI. 

The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Sidhardha Kamaraju and Matthew Laroche are in charge of the prosecution, with assistance from Trial Attorney Scott McCulloch of the National Security Division’s Counterintelligence and Export Control Section.

A Houston, Texas man was sentenced today to 58 months in prison for his role in a money laundering conspiracy, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Ryan K. Patrick for the Southern District of Texas.

According to documents and information provided to the court, Marcus T. Weathersby conspired with others to facilitate the fraudulent sale of second-hand prescription medications to a Utah-based wholesale distributor.  This scheme involved purchasing bottles of prescription medications from illegitimate sources and then selling the medications to another wholesale distributor who then sold them to pharmacies as new.  Federal regulation requires wholesale distributors of prescription medications to provide to a buyer a pedigree – a written statement identifying each prior sale, purchase, or trade of the drugs being sold that includes the business name and information of all parties to the prior transactions, starting with the manufacturer.

Weathersby, in approximately December 2010, established Acacia Pharma Distributors Inc. (Acacia), a Mississippi corporation.  Nearly eight months later, Weathersby directed another individual to incorporate Four Corner Suppliers Inc. (Four Corner) in Mississippi.  Acacia and Four Corner purported to be legitimate wholesale distributors of pharmaceuticals licensed and operating in Mississippi, however, in reality Weathersby and others used these corporations to facilitate the illegal sale of second-hand prescription drugs.

Weathersby also opened and caused others to open bank accounts in the names of Acacia and Four Corner.  Between February 2011 and July 2012, Weathersby withdrew and led others to withdraw over $2.9 million in cash from these bank accounts and to structure these cash withdrawals in amounts under $10,000 in order to prevent the banks from complying with their legal obligation to prepare currency transaction reports for each cash transaction over $10,000.

In addition to the term of imprisonment, U.S. District Court Chief Judge Lee H. Rosenthal ordered Weathersby to serve three years of supervised release, and imposed a money judgment against the defendant in the amount of $2,991,867.76, which will be applied as criminal restitution.

Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Patrick thanked special agents of IRS-Criminal Investigation, the Federal Bureau of Investigation, and the Department of Health and Human Services, who conducted the investigation, and Trial Attorneys Sean Beaty and Terri-Lei O’Malley 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 National Telecommunications and Information Administration (NTIA) has posted a report detailing its findings from the Jan. 17, 2018 test of micro-jamming technology conducted at the Federal Correctional Institution at Cumberland, Maryland. 

Data from the test show that the micro-jammer’s signal disrupted commercial wireless signals inside the prison cell, which meant that if cellphones were operating inside the cell, they would have been rendered inoperable.  At 20 ft. and 100 ft. outside the cell, however, the micro-jammer signals did not disrupt the commercial wireless signals. 

Department officials present during the January 17, 2018, test reported that while their cellphone signals were blocked inside the cell, their cellphones were operable when standing several feet from the cell’s window.

“These promising test results mark a step forward countering the security threat posed by contraband cellphones,” said Assistant Attorney General Beth Williams of the Justice Department’s Office of Legal Policy.  “The results indicate the potential for localized impact of this micro-jamming technology.  That is an encouraging sign that brings us closer to a solution that will make our communities safer and help prevent the continuation of criminal activity from inside prison walls.”

The data in the report will be used by BOP and the Department to understand the efficacy of micro-jamming, conduct further evaluation of jamming technology, and develop recommendations for strategic planning.   

Contraband cellphones have been an ongoing correctional security and public safety concern for the BOP as well as for state and local correctional institutions.  Across the country, contraband cellphones have been used by inmates to direct gang activity, run criminal enterprises, distribute child pornography, intimidate witnesses, and facilitate the commission of violent crimes.  “This test is just one part of our ongoing efforts to disrupt and disable dangerous contraband cellphones in federal and state prisons,” said Assistant Attorney General Williams.

The BOP will continue to evaluate cellphone detection and interdiction technologies and work with its federal partners and Congress to achieve cost-effective options to combat this threat to corrections and public safety.  The agency does not endorse any specific vendor or product.

NTIA’s full report is available at:  https://www.its.bldrdoc.gov/publications/3206.aspx

A federal grand jury sitting in the District of Massachusetts has returned an indictment, which was unsealed today, charging the owner of a chiropractic business with tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. 

According to the indictment, Richard Rogers, a Massachusetts chiropractor, operated a chiropractic practice from his house.  Rogers was charged with evading his taxes from 2012 through 2016 by concealing his income using a variety of methods, including using a nominee bank account to negotiate payments received by check, paying creditors using postal money orders, and using credit card accounts opened with a fictitious social security number.  Rogers is also alleged to have concealed the ownership of his residence by titling the property in the name of a trust.  Rogers allegedly did not file federal tax returns from at least 2008 through 2016, despite his obligation to do so.

If convicted, Rogers faces a statutory maximum sentence of five years in prison on each count of tax evasion.  Roger also faces three years of supervised release and monetary penalties.  An indictment is an accusation.  A defendant is presumed innocent until proven guilty.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of the office of IRS Criminal Investigation, who conducted the investigation, and Assistant Chief John N. Kane and Trial Attorney Carl F. Brooker of the Tax Division, who are prosecuting the case.

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

The United States Department of Justice (DOJ) and United States Department of Agriculture (USDA) are forming a working group to focus on ways to empower and to support rural and tribal communities to combat elder abuse and financial exploitation.  Today on World Elder Abuse Awareness Day, we collaboratively embark on a mission to work with older Americans in this Nation to improve their quality of life as envisioned by the Report to the President from the Task Force on Agriculture and Rural Prosperity.

The Nation’s seniors are treasured and revered members of our communities.  Too often, however, seniors are targeted by unscrupulous criminals for fraud or are subjected to abuse.  Factors more common in rural and tribal communities--including large geographic areas that elongate response time, fewer services and service providers, and limited access to broadband-- create additional challenges to identifying and combatting elder fraud and abuse in rural and tribal communities.

DOJ and USDA resolve to marshal our collective resources and expertise to enable rural and tribal communities to more effectively combat elder abuse and financial exploitation.  We are forming a working group to develop recommendations and will jointly present strategic action steps in November 2018 at the Department of Justice’s Rural Elder Justice Summit in Des Moines, Iowa.