District Not Recorded

          On June 14, 2018, the Employer Support of the Guard and Reserve (ESGR) presented its Most Supportive Employer Award to the United States Attorney’s Office for the Districts of Guam and the Northern Mariana Islands.  United States Attorney Shawn N. Anderson accepted the award on behalf of the office.  EGSR is a Department of Defense program that promotes cooperation and understanding between Reserve Component Service members and their civilian employers.  Awards were given to businesses and government entities in Guam and the CNMI based on their support for members of the National Guard and Reserve.

          U.S. Attorney Anderson stated, “It is an honor to receive this award from ESGR.  For those who have served and currently serve in the armed forces, thank you for your continued commitment to the United States at the Department of Justice.  I also thank our employees who attempt to fill the void while service members are on duty, deployed, or at training.”

SACRAMENTO, Calif. — A federal grand jury returned a five-count indictment today against Derek Hillgert, 29, of Carmichael, and Jeffrey Wilhite, 30, of Linden, charging them with access device fraud, aggravated identity theft, and possession of stolen mail, U.S. Attorney McGregor W. Scott announced.

According to the indictment, the defendants possessed stolen United States mail and also used personal identifying information for victims to obtain things of value in excess of $40,000 in Sacramento, Stanislaus and San Joaquin Counties.

This case is the product of an investigation by the U.S. Postal Inspection Service and the Tracy Police Department. Assistant U.S. Attorney Miriam R. Hinman is prosecuting the case.

If convicted, both defendants face a maximum statutory penalty of five years in prison and a $250,000 fine for possession of stolen mail. Each count of access device fraud carries a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of aggravated identity theft, each defendant faces a mandatory consecutive term of two years in prison. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

Defendant financially benefited from co-defendant’s use of debts, fraud, threats of financial and reputational harm, and other means to compel victims to work at restaurants

Tanya Jumroon, also known as Thunyarax Phatanakit Jumroon, 59, of Beaverton, Oregon, and a naturalized citizen originally from Thailand, pleaded guilty today in a U.S. District Court in Portland, Oregon, to financially benefitting from forced labor, visa fraud conspiracy, and filing a false federal income tax return, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Billy J. Williams of the District of Oregon, Special Agent in Charge Renn Cannon of the FBI in Oregon, and Special Agent in Charge Darrell Waldon of Internal Revenue Service (IRS) Criminal Investigation’s Seattle Field Office. Jumroon waived indictment by a federal grand jury and pleaded guilty to an information filed by the United States Attorney’s Office and the Civil Rights Division.

According to the defendant’s plea agreement, admissions in court, and other court documents, between 2011 and 2014, the defendant, her then-husband, Paul Jumroon, and other associates fraudulently obtained E-2 visas to bring Thai nationals into the United States to provide cheap labor at two restaurants located in Lake Oswego, Oregon, and Ridgefield, Washington. The restaurants were owned and operated by the defendant and Jumroon at the time, but have since been sold and are under new ownership.

Paul Jumroon used the fraudulently obtained E-2 visas to entice four forced labor victims to come to the United States from Thailand. After the victims arrived, Jumroon used inflated travel expenses, debt manipulation, threats of deportation, serious financial and reputational harm, verbal abuse, and control over identification documents, among other means, to compel them to work 12 hours a day, six to seven days a week, for minimal pay at the restaurants he co-owned and operated with the defendant. The defendant witnessed Paul Jumroon’s mistreatment of two of the victims, and she benefitted financially from the victims’ forced labor at the restaurants. As part of the defendant’s guilty plea, she agreed to pay the four victims a combined $131,391.95 in restitution for their unpaid labor in connection with the forced labor scheme.

The defendant further admitted to filing multiple false tax returns with the IRS by failing to report cash income earned from the restaurants between 2012 and 2015. As part of the plea agreement, the defendant agreed to pay tax due and owing in the amount of $120,384 to the IRS.

“The Justice Department remains committed to combatting human trafficking, holding those who choose to exploit vulnerable individuals accountable, punishing those who profit from these crimes, and securing restitution for exploited victims” said Acting Assistant Attorney General Gore of the Civil Rights Division. “Today’s guilty plea exemplifies the hard work of the Civil Rights Division, in coordination with the U.S. Attorney’s Office, to honor that commitment.”

“Human trafficking schemes are seldom carried out by a single person. Tanya Jumroon profited off of her then-husband’s actions while turning a blind eye,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “In too many of these cases, we later learn that someone close by could have taken action to stop the abuse and intimidation of others and did not. I implore all Oregonians to remain vigilant and watch for the signs of human trafficking in their communities. Your attention and perceptiveness could help a victim in need.”

"These victims believed the Jumroons were offering them a chance at a better life. When they arrived in the U.S., however, they faced false promises, forced labor and abuse. Victims such as these often live in the shadows and find it difficult to get the help they need. We are grateful for the community members who were able to bring this case to our attention so we could work together to bring an end to the physical, psychological and financial exploitation," said Renn Cannon, Special Agent in Charge of the FBI in Oregon.

“Forced labor schemes, such as the one employed by the Jumroons, are deplorable crimes that have no place in today’s society,” said Darrell Waldon, Special Agent in Charge of IRS Criminal Investigation’s Seattle Field Office. “Falsely reporting income and expenses associated with such schemes will continue to be vigorously investigated by IRS-CI Special Agents.”

The defendant faces a maximum of 20 years in prison for financially benefitting from forced labor, five years in prison for visa fraud conspiracy, and three years in prison for filing a false tax return. Her sentencing is scheduled for Oct. 24 before United States District Judge Anna J. Brown. 

Co-defendant Paul Jumroon previously pleaded guilty on Feb. 14 to forced labor, visa fraud conspiracy, and filing a false federal income tax return. His sentencing is scheduled for Oct. 18, also before Judge Brown.

Attorney General Sessions issued a proclamation on January 31 commemorating January as National Slavery and Human Trafficking Prevention Month.

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

This prosecution is the result of the joint investigation by the Federal Bureau of Investigation, Homeland Security Investigations, Internal Revenue Service Criminal Investigation and Department of State’s Diplomatic Security Service, with assistance from the Department of Labor’s Wage and Hour Division and Portland Police Bureau. The case is being prosecuted by Assistant U.S. Attorneys Hannah Horsley and Scott Bradford of the District of Oregon, and Lindsey Roberson of the Civil Rights Division’s Human Trafficking Prosecution Unit. 

A former Colorado home healthcare business owner was sentenced to 24 months in prison for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to documents and information provided to the court, Michelle Medina owned and operated RHHS Inc., also doing business as Reliable Home Health Services Inc., which provided home healthcare services in Colorado.  From 2008 through 2011, Medina concealed hundreds of thousands of dollars in personal income by having RHHS Inc. directly pay her personal expenses.  Medina did not inform her tax return preparer of this additional income and filed false individual income tax returns underreporting her income.  Medina’s actions caused a tax loss of between $550,000 and $1.5 million.

In addition to the term of imprisonment, U.S. District Court Judge Philip A. Brimmer ordered Medina to serve three years of supervised release and to pay restitution to the Internal Revenue Service in the amount of $841,327.00.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorney Kathleen M. Barry of the Tax Division, who prosecuted the case.

A Wisconsin man was charged in an indictment yesterday with the crimes of producing and possessing child pornography and engaging in illicit sexual conduct in a foreign place, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin.

Jeffrey H. Ernisse, 61, is currently incarcerated for state offenses related to child exploitation at the Red Granite Correctional Institution in Wisconsin.  A grand jury in the U.S. District Court for the Eastern District of Wisconsin indicted Ernisse on two counts of producing child pornography, two counts of producing child pornography outside of the United States, one count of engaging in illicit sexual conduct with a minor in the Philippines and one count of possessing child pornography.

According to the indictment, on or about March 10, 2015 and then again, on or about April 7, 2015, Ernisse used a minor to engage in sexually explicit conduct for the purpose of producing child pornography.  Between approximately June 17, 2014, and approximately April 11, 2015, Ernisse engaged in illicit sexual conduct with a minor in the Republic of the Philippines.  And on or about Dec. 18, 2015, Ernisse possessed child pornography.

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

U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) is investigating this case with the cooperation of the Sheboygan, Wisconsin, Police Department.  Trial Attorney William M. Grady of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorneys Megan J. Paulson and Penelope L. Coblentz of the Eastern District of Wisconsin are prosecuting the case.

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

A federal grand jury returned an indictment yesterday against an Aliquippa, Pennsylvania husband and wife charging them with conspiracy to defraud the United States and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott W. Brady for the Western District of Pennsylvania.

According to the indictment, from 2005 to 2016, William and Danielle Rains engaged in a scheme to evade the payment of William Rains’s federal income taxes.  The Rainses allegedly used nominees and multiple bank accounts, and filed false forms with the Internal Revenue Service to conceal William Rains’s income and assets from the IRS.

The indictment further alleges that William Rains failed to file individual income tax returns for tax years 1997, 1999, 2003, 2004, 2005, and 2006 despite earning taxable income in those years, and allegedly filed false 2000 and 2001 returns that reported zero income. The indictment also charges that for these years as well as 2008, William Rains has been assessed over $200,000 in taxes by the IRS.  

If convicted, William and Danielle Rains each face up to 10 years in prison, a term of supervised release, restitution and monetary penalties.  An indictment is an accusation.  A defendant is presumed innocent until proven guilty.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Brady thanked the special agents of IRS-Criminal Investigation who investigated the case, and Trial Attorneys Shawn Noud and Christopher O’Donnell of the Tax Division, who are prosecuting the case.

WASHINGTON – On June 12, 2018, Thomas Ressler, 66, of Whitehall, Montana, was sentenced by the U.S. District Court in Helena to serve 36 months in prison for designing dozens of fraudulent solicitations used in an international mail-fraud scheme.  On February 22, 2018, Ressler pleaded guilty to conspiracy to commit mail fraud. 

“This defendant used his artistic abilities to advance a scheme that defrauded thousands of elderly victims,” said Acting Assistant Attorney General Chad Readler, head of the Justice Department’s Civil Division.  “The Department of Justice will continue to hold accountable those who knowingly facilitate fraud against America’s seniors.” 

Ressler created more than 200 fraudulent sweepstakes and prize-notification letters that falsely informed recipients they could claim cash or other valuable prizes by submitting a processing or delivery fee.  The letters appeared to come from official-sounding but fictitious entities with names like Cash Payout Disbursement Advisors, Progressive Winners Guarantors, and Vehicle Transport Company.  Many of the letters included the name and signature of a purported officer or representative of the fictitious entity.   

Ressler’s co-conspirators, Ryan Young and Ercan Barka, used the solicitations Ressler created to perpetrate their large-scale scheme, sending Ressler’s designed solicitations to victims throughout the United States and numerous foreign countries.  Although the solicitations appeared personally directed to each recipient, Barka and Young actually sent them to thousands of recipients identified on mailing lists bought from list brokers and corporate entities.  No victim who submitted a fee in response to a solicitation ever received the large cash prize or other valuable items touted in the solicitations.  At most, some victims received a report listing unrelated sweepstakes or a worthless piece of jewelry.

Ercan Barka and Ryan Young previously pleaded guilty in the Eastern District of New York to conspiracy to commit mail fraud.  They are awaiting sentencing.

The United States Postal Inspection Service investigated this case.   Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch is prosecuting it. 

For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch. 

The Justice Department today announced that it has reached an agreement with Eau Claire County Circuit Court to resolve a complaint it received from the Eau Claire Area Hmong Mutual Assistance Association alleging that Eau Claire County Circuit Court failed to provide appropriate language assistance services to limited English proficient (LEP) court users. Specifically, the complaint alleged that the court required individuals seeking a divorce to attend the “Families in Transition” class, but the class was only available in English.

The Department began working with Eau Claire County Circuit Court in September 2017, when the complainant filed its complaint alleging that the barriers to divorce proceedings based on language proficiency violated the prohibition against national origin discrimination in Title VI of the Civil Rights Act of 1964 (Title VI).  Title VI requires recipients of federal financial assistance, such as courts, to provide meaningful language services to LEP individuals in all court proceedings and operations. 

The resolution agreement between the Department and Eau Claire County Circuit Court outlines actions that the court has begun to take to respond to concerns raised during the federal review and the efforts the court will continue to take to ensure the ongoing provision of comprehensive language assistance for the “Families in Transition” class.  The actions include, among other things, a translated notice of options available to all LEP court users required to attend the “Families in Transition” class, community engagement, and training for court staff who interact with LEP court users.    

“We commend the Eau Claire County Circuit Court for its commitment to guaranteeing meaningful access to the courts for all, regardless of national origin,” said Acting Assistant Attorney General John Gore.  “This collaboration between the Justice Department and Eau Claire County Circuit Court will strengthen the Court’s ability to provide equal access to the judicial process.”

The complaint was resolved as part of the Civil Rights Division, Federal Coordination and Compliance Section’s (FCS) efforts to ensure that state courts comply with Title VI’s language access requirements.  No LEP individual should be denied justice because a court fails to provide language services.  The FCS courts team provides policy guidance and technical assistance to state court systems and undertakes enforcement actions across the country.

WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con el Tribunal de Circuito del Condado de Eau Claire para resolver una denuncia que había recibido de la Asociación Hmong para Asistencia Mutua de la Zona de Eau Claire que alegó que el Tribunal de Circuito del Condado de Eau Claire no brindó los servicios apropiados de apoyo lingüístico a usuarios del tribunal con un dominio limitado del inglés (LEP, por sus siglas en inglés). En concreto, la denuncia alegó que el tribunal requería que personas que querían divorciarse asistieran a una clase que se llama «Familias en Transición», pero la clase solo estaba disponible en inglés.

El Departamento comenzó a trabajar con el Tribunal de Circuito del Condado de Eau Claire en septiembre del 2017, cuando el denunciante presentó su denuncia alegando que los obstáculos existentes en los procedimientos de divorcio con base en el dominio lingüístico vulneran la prohibición contra la discriminación por motivos de nacionalidad de origen contenida en el Título VI de la ley de Derechos Civiles de 1964 (el Título VI). El Título VI requiere que recipientes de fondos federales, tales como las cortes, ofrezcan servicios lingüísticos significativos a individuos LEP en todos los procedimientos y operaciones del tribunal.

El acuerdo entre el Departamento y el Tribunal de Circuito del Condado de Eau Claire describe las acciones que el tribunal ha comenzado a tomar para responder a las preocupaciones planteadas durante la revisión federal, así como los esfuerzos actuales y futuros del tribunal por garantizar la provisión continua de apoyo lingüístico integral para la clase de «Familias en Transición», la participación comunitaria y la capacitación del personal del tribunal que interactúe con usuarios del tribunal que son LEP.

«Felicitamos al Tribunal de Circuito del Condado de Eau Claire por su compromiso a garantizar el acceso significativo en los tribunales para todos, independiente de su nacionalidad de origen», declaró el Fiscal General Auxiliar en funciones, John Gore. «Esta colaboración entre el Departamento de Justicia y el Tribunal de Circuito del Condado de Eau Claire mejorará la capacidad del Tribunal por ofrecer la igualdad de acceso durante el proceso judicial completo».

Esta denuncia se resolvió como parte de los esfuerzos de la Sección Federal de Coordinación y Cumplimiento (FCS) de la División de Derechos Civiles por asegurar que los tribunales estatales cumplan con los requisitos para el acceso lingüístico del Título VI. Ningún individuo LEP debe ser denegado el acceso a la justicia porque un tribunal no proporciona servicios lingüísticos. El equipo de la FCS para los tribunales proporciona una orientación política y apoyo técnico a los sistemas de tribunales estatales y se encarga de acciones de aplicación de la ley por todo el país.

Enlace al acuerdo (en inglés)

A Department of Justice official released the following statement at the conclusion of Deputy Attorney General Rod Rosenstein’s trip to Canada, where he met with senior government officials from the Quebec Provincial Prosecutor’s Office, the Canadian Department of Justice, the Canadian Ministry of Public Safety, and the Public Prosecution Service of Canada, as well as representatives of the Department of State and several U.S. law enforcement agencies.

"Deputy Attorney General Rosenstein held productive meetings with Canadian law enforcement officials in Montreal and Ottawa. He met with Deputy Minister of Public Safety Malcolm Brown and Canadian Department of Justice Associate Deputy Minister Francois Daigle and their respective teams, as well as officials from the Quebec Provincial Prosecutor’s Office and the Public Prosecution Service of Canada. He thanked them for their critical partnership in the fight against transnational criminal organizations and cyber criminals, and discussed ways to further limit the flow of illegal drugs and firearms across our borders. Deputy Attorney General Rosenstein emphasized the Trump Administration’s commitment to sharing information about terrorists and other criminals, to cutting red tape and reducing inefficient bureaucratic processes, and to fighting against threats to the safety and security of all Americans and Canadians.

“The Deputy Attorney General also met with U.S. Ambassador Kelly Craft, with officials of the U.S. Consulate in Montreal and the U.S. Embassy in Ottawa, and with Canada-based representatives of U.S. law enforcement agencies, including ATF, DEA, FBI, IRS, ICE-HSI, and Customs & Border Protection. Finally, Deputy Attorney General Rosenstein visited the Canadian Parliament, where he had the pleasure of meeting the Senate Speaker, several Senators, and their staffs, and attending sessions of the Canadian Senate and House. He also spoke at the International Economic Forum in Montreal. He appreciated the hospitality extended in Montreal and Ottawa and looks forward to continued close cross-border collaboration with our Canadian law enforcement partners.”

The Department of Justice today announced the “Place to Worship Initiative,” which will focus on protecting the ability of houses of worship and other religious institutions to build, expand, buy, or rent facilities—as provided by the land use provisions of the Religious Land Use and Institutionalized Persons Act (RLUIPA).

In announcing the initiative, Attorney General Sessions provided the following statement:

“The Constitution doesn't just protect freedom to worship in private—it protects the public exercise of religious belief, including where people worship together," Attorney General Sessions said. "Under the laws of this country, government cannot discriminate against people based on their religion--not in law enforcement, not in grant-making, not in hiring, and not in local zoning laws. President Trump is an unwavering defender of the right of free exercise, and under his leadership, the Department of Justice is standing up for the rights of all Americans. By raising awareness about our legal rights, the Place to Worship Initiative will help us bring more civil rights cases, win more cases, and prevent discrimination from happening in the first place."

The Department will work with the United States Attorney’s Offices to strengthen awareness of the land use provisions of RLUIPA by: hosting community outreach events across the country, educating municipal officials and religious organizations about RLUIPA’s requirements, and providing additional training and resources for federal prosecutors. The first community outreach event under the initiative will be held on June 25, in Newark, New Jersey, led by the U.S. Attorney’s Office for the District of New Jersey.  The Department today is also launching a new web page, including an information page and easily accessible complaint portal, a new Q and A document on RLUIPA, and other materials. In addition, the Department has created a new RLUIPA tool kit for Department lawyers working on RLUIPA cases, and is holding a webinar on June 26 for providing training and resources for U.S. Attorney’s offices.

RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. Specifically, RLUIPA bars land use regulations that impose a substantial burden on religious exercise without a compelling justification, requires governments to treat houses of worship as favorably as nonreligious assemblies, and bars governments from discriminating among religions and from totally or unreasonably excluding houses of worship.

The Justice Department also announced today that it brought a RLUIPA complaint against the Borough of Woodcliff Lake and the Woodcliff Lake Zoning Board of Adjustment in New Jersey.

Persons who believe their rights under RLUIPA have been violated may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743.

More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/rluipa.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that he and Assistant U.S. Attorney Belinda Alcantara, Elder Justice Coordinator, were guest speakers at the “2018 Enhancing Judicial Skills in Elder Abuse Cases Workshop,” organized by Guam Supreme Court Justice F. Philip Carbullido, Chairperson of the Pacific Judicial Council Education Committee.  U.S. Attorney Anderson and AUSA Alcantara spoke about the DOJ Elder Justice Program, elder abuse, neglect, and financial exploitation, and resources available on the DOJ webpage elderjustice.gov.  The workshop, held at the Hilton Guam Resort & Spa on June 4-6, 2018, was attended by judges from Guam, our neighboring islands of Saipan, Rota, Tinian, Pohnpei, Chuuk, American Samoa, and Palau, law enforcement and community stakeholders.  Presenters at the workshop also included speakers from the National Judicial Institute on Domestic Violence, which included judges and speakers from North Carolina, Washington, the District of Columbia, Minnesota, and Nevada.

          The Elder Justice Program stems from the DOJ Elder Justice Initiative (EJI) to prevent and combat financial fraud and scams that target seniors, elder abuse, and neglect.  The mission of the EJI is to strengthen awareness about elder abuse and financial exploitation through education, build law enforcement capacity to respond to elder justice issues, and facilitate prosecution efforts to make our community safer for all.

Some examples of the elder financial exploitation prosecuted by DOJ:

•  “Lottery phone scams,” in which callers convince seniors that a large fee or taxes be paid before one can receive lottery winnings;

•  “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming those victims owe back taxes;

•  “Inheritance or business opportunity scams,” which lure victims to believe that a business opportunity or inheritance awaits them, deceiving them to part with monies or carry an innocuous “gift or package” on an airline which turns out to be contraband;        

•  “Tech support scams” in which telemarketers convince seniors to give remote access to their personal computers or pay for software not needed;

•  “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.

          Many of these cases illustrate how an elderly American can lose his or her life savings to a relative, guardian, or stranger who gains the victim’s trust.  The devastating effects these cases have on victims and their families, both financially and psychologically, make prosecuting elder fraud a key Department of Justice priority.

          The U.S. Attorney’s Office in Guam and the NMI will be conducting outreach to various senior citizens centers in Guam and the NMI.   Anyone interested in learning more about the program can log on to https://www.justice.gov/elderjustice.

USA Shawn N. Anderson at Pacific Judicial Council Workshop

USA Anderson and AUSA Belinda Alcantara sharing on DOJ’s Elder Justice Program Initiative

The Justice Department today announced that David H. Howard, 59, of Tampa, Florida, was sentenced by United States District Court Judge Mary S. Scriven of the Middle District of Florida to serve eight months in prison, followed by two years of supervised release, and required to pay $30,000 in restitution. Howard pleaded guilty to a felony civil rights violation on Feb. 27, after he intimidated and interfered with a family who sought to purchase a home in the Davis Islands neighborhood of Tampa, Florida, by threatening to burn down the home simply because it was being purchased by a Muslim family. 

According to court documents, on Nov. 3, 2016, a Muslim man, identified as K.A., and his wife were conducting the final walk-through of a home they had placed under contract.  As K.A. arrived for the final walk-through, the defendant approached K.A. and the seller identified as H.D., and the accompanying realtors, and yelled, “This sale will not take place!”  Howard threatened to burn the house down, and told K.A., “You are not welcome here!” K.A. and his wife hurried away from the house and cancelled the closing of the home purchase that was scheduled to take place the next day. In the days that followed, Howard retold his version of the incident to neighbors, making insulting remarks about Muslims.

“This Justice Department will not stand by when individuals use violence and intimidation to deny fair housing rights,” said Acting Assistant Attorney General John Gore. “The Civil Rights Division will continue to prosecute crimes like this one that deprive families of a safe place to live.”  

“Today’s sentence should send a clear message that we will vigorously uphold our nation’s civil rights laws,” said United States Attorney Maria Chapa Lopez. “Crimes perpetrated against people because of who they are or what they believe simply cannot be tolerated.”

“The FBI’s mission is to protect the American people and uphold the laws of the United States, and that’s what we did in this case. We will not allow hate motivated crimes to infiltrate our communities and threaten our citizens,” said Special Agent in Charge of the FBI Tampa Division, Eric W. Sporre.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Josephine W. Thomas of the Middle District of Florida and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.

The Department of Justice today announced the arrest of more than 2,300 suspected online child sex offenders during a three-month, nationwide, operation conducted by Internet Crimes Against Children (ICAC) task forces. The task forces identified 195 offenders who either produced child pornography or committed child sexual abuse, and 383 children who suffered recent, ongoing, or historical sexual abuse or production of child pornography.

The 61 ICAC task forces, located in all 50 states and comprised of more than 4,500 federal, state, local and tribal law enforcement agencies, led the coordinated operation known as “Broken Heart” during the months of March, April, and May 2018.  During the course of the operation, the task forces investigated more than 25,200 complaints of technology-facilitated crimes against children and delivered more than 3,700 presentations on Internet safety to over 390,000 youth and adults.   

"No child should ever have to endure sexual abuse," Attorney General Jeff Sessions said. "And yet, in recent years, certain forms of modern technology have facilitated the spread of child pornography and created greater incentives for its production. We at the Department of Justice are determined to strike back against these repugnant crimes. It is shocking and very sad that in this one operation, we have arrested more than 2,300 alleged child predators and investigated some 25,200 sexual abuse complaints. Any would-be criminal should be warned: this Department will remain relentless in hunting down those who victimize our children."

The operation targeted suspects who: (1) produce, distribute, receive and possess child pornography; (2) engage in online enticement of children for sexual purposes; (3) engage in the sex trafficking of children; and (4) travel across state lines or to foreign countries and sexually abuse children.

The ICAC Program is funded through the Department’s Office of Juvenile Justice and Delinquency Prevention (OJJDP).  In 1998, OJJDP launched the ICAC Task Force Program to help federal, state, and local law enforcement agencies enhance their investigative responses to offenders who use the Internet, online communication systems or computer technology to exploit children. To date, ICAC Task Forces have reviewed more than 775,000 complaints of child exploitation, which resulted in the arrest of more than 83,000 individuals. In addition, since the ICAC program's inception, more than 629,400 law enforcement officers, prosecutors and other professionals have been trained on techniques to investigate and prosecute ICAC-related cases.

For more information, visit the ICAC Task Force webpage at: https://www.icactaskforce.org/. For state-level Operation Broken Heart results, please contact the appropriate state ICAC task force commander. Contact information for task force commanders are available online at: https://www.icactaskforce.org/Pages/ContactsTaskForce.aspx.

A tax return preparer in Avondale, Louisiana prepares fraudulent tax returns for her customers and files false tax returns using taxpayers’ identifying information without their knowledge or authorization, according to a civil lawsuit filed by the Justice Department today. The suit, filed in federal court in New Orleans, asks the court to permanently bar Adrienne Robinson Thomas (doing business as AT Tax Services) from preparing federal tax returns for others.

The complaint alleges that Thomas unlawfully understates her customers’ income tax liabilities and overstates these customers’ refunds. According to the complaint, Thomas unlawfully prepares federal tax returns that lower her customers’ federal tax liabilities by claiming bogus earned income tax credits, bogus child tax credits, false education credits, and fabricated household employee income and withholdings. The government alleges Thomas also files wholly fabricated tax returns using the identifying information of taxpayers who did not hire her to prepare their federal income tax returns.  

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.

Former Tuskegee Police Department Lieutenant Alex Huntley, 54, was convicted late Friday for beating a handcuffed and compliant arrestee, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Louis V. Franklin, Sr., of the Middle District of Alabama, and FBI Special Agent in charge James Jewell.

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

Former Tuskegee Lieutenant Darian Locure, 45, was also charged with a civil rights offense and obstruction of justice. He was acquitted on all charges.

“Illegal conduct by officers who abuse their power and violate the civil rights of those in their custody will not be tolerated,” said Acting Assistant Attorney General John Gore. “The Department will continue to vigorously enforce our nation’s laws and hold officers who break the law accountable.”

“The majority of our police officers are dedicated to protecting and serving the public with strength, courage, and valor. Unfortunately, Mr. Huntley was not so dedicated,” said U.S. Attorney Franklin.  “Police officers walk a tough, yet honorable line every day.  This office is committed to prosecuting any law enforcement officer who abandons their oath to protect and serve and, instead, chooses to engage in criminal conduct that they are sworn so oppose.”

“Lady Justice wears a blindfold for a reason, and a violation of someone's civil rights by a sworn law enforcement officer cannot be tolerated,” stated FBI Special Agent in charge James Jewell.

Following this conviction, Huntley is facing up to 10 years in prison, substantial fines, and three years of supervised release after his sentenced is served.

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

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants AMELIA M. TEDTAOTAO, age 31, and ANN MARIE C. PANGILINAN, age 41, were sentenced in District Court today by Chief Judge Frances Tydingco- Gatewood. The Court ordered terms of imprisonment as a result of the defendants’ convictions for Conspiracy to Commit Bank Fraud, in violation of Title 18, United States Code, Section 1349. TEDTAOTAO was sentenced to 30 months imprisonment, three years of supervised release, ordered to pay $9,005.53 restitution, a $100 assessment fee and to perform 50 hours of community service. PANGILINAN was sentenced to 12 months imprisonment, the last six months of which can be served in home detention during a two year period of supervised release, and ordered to pay $2,850 restitution, a $100 assessment fee and to perform 50 hours of community service.

          From May 2014 to July 2014, TEDTAOTAO, PANGILINAN and others participated in an ATM debit-fraud and check-fraud scheme involving Bank of Guam (BOG) funds and checks drawn from Wells Fargo Bank, N.A. As part of the conspiracy, the defendants deposited fraudulent checks into third party BOG accounts via ATM transactions, and then withdrew funds based upon those checks. For the entire period of the conspiracy, the defendants and their co-conspirators attempted to obtain over $70,000 from BOG by depositing 101 fraudulent checks drawn from a closed and insufficiently funded account at Wells Fargo Bank, N.A.

          This case was investigated by the Federal Bureau of Investigation and Guam Police Department. The case was prosecuted by Marivic P. David, Assistant United States Attorney for the District of Guam.

The Department of Justice today filed a Statement of Interest in Speech First, Inc., v. Schlissel in the Eastern District of Michigan. The plaintiff, Speech First, a nationwide organization dedicated to defending civil liberties, alleges that the University of Michigan has adopted policies prohibiting and punishing speech protected by the First and Fourteenth Amendments.  Speech First alleges that the University of Michigan’s policies on “harassment,” “bullying,” and “bias” are so vague and overbroad as to prompt students to limit their speech out of fear that they might be subject to disciplinary sanction, including “individual education” or “restorative justice” at the hands of the University’s Bias Response Team. 

The United States’ Statement of Interest argues that the University of Michigan’s Statement of Student Rights and Responsibilities, which prohibits “harassment,” “bullying,” and “bias,” is unconstitutional because it offers no clear, objective definitions of the violations.  Instead, the Statement refers students to a wide array of “examples of various interpretations that exist for the terms,” many of which depend on a listener’s subjective reaction to speech. 

The United States also argues that the University’s Bias Response Policy chills protected speech through its Bias Response Team.  The Bias Response Team, which consists of University administrators and law enforcement officers, has the authority to subject students to discipline and sanction.  It encourages students to report any suspected instances of bias, advising them: “[t]he most important indication of bias is your own feelings.”  According to the plaintiff, the Bias Response Team has responded to more than 150 alleged incidents of bias in the last year.  

In filing the Statement of Interest, Acting Associate Attorney General Jesse Panuccio provided the following statement:

“Freedom of speech and expression on the American campus are under attack. This Justice Department, under the leadership of Attorney General Jeff Sessions, is committed to promoting and defending Americans’ first freedom at public universities." 

This is the fourth Statement of Interest filed by the Department of Justice in a First Amendment case under Attorney General Jeff Sessions. The first was filed on Sept. 26, 2017 in Uzuegbunam v. Preczewski, the second was filed on Oct. 24, 2017 in Shaw v. Burke, and the third was filed on January 25 in Young America’s Foundation and Berkeley College Republicans v. Janet Napolitano.

The Justice Department today announced that former Georgia prison guard Edgar Daniel Johnson, 51, was sentenced to 51 months in prison for sexually assaulting three female inmates at the Emanuel Women’s Facility in Swainsboro, Georgia; for coercing the women to help him cover up the assaults; and for making a bomb threat at Elba Island on a separate occasion, in May, 2017. The Court will determine the amount of restitution owed to the victims at a later hearing.

In Oct. 2017, Johnson pleaded guilty in the Southern District of Georgia to three counts of willfully depriving the inmates of their Eighth Amendment rights under color of law, three counts of obstruction for coercing the women to cover up the assaults, and one count of maliciously conveying false information about explosive materials.  During the plea hearing, Johnson admitted that, between Nov. 1, 2012, and Sept. 30, 2013, while he was working as a Georgia Department of Corrections prison guard at the Emanuel Women’s Facility, he engaged in non-consensual vaginal intercourse, on more than one occasion, with female inmates S.A., M.A., and M.P.  Johnson further admitted that each act of intercourse was against the inmate’s will and violated the inmate’s right under the Eighth Amendment to be free from cruel and unusual punishment, which includes the right to be free from unwanted sexual assaults.  Johnson further admitted that he coerced each of the inmates to cover up the assaults.

Johnson also admitted that on May 3, 2017, in an unrelated matter, he used a cellular telephone to call Southside Fire in Chatham County, Georgia, and falsely report a bomb threat at Elba Island.  Johnson admitted that at the time he called in the bomb threat, he maliciously conveyed the threat even though he knew the threat to be false.

“This defendant abused his legal authority to prey on vulnerable women who had been entrusted to his care,” said Acting Assistant Attorney General John Gore. “The Civil Rights Division is committed to protecting the rights of all individuals, and will hold law enforcement officers who violate the law accountable.”

“No one is above the law, and the criminal actions of this former prison guard compel a strong rebuke. Anyone who chooses to prey on others under color of official right should expect federal prosecution and jail,” said United States Attorney Bobby L. Christine.

“Corrections officials have a difficult and important job, but we cannot allow them to abuse their authority and assault the very people they are charged with supervising," said J.C. Hacker, Acting Special Agent in Charge of FBI Atlanta. "The FBI will not allow the actions of a few to tarnish the many corrections officials who do their job every day, maintaining order and respecting the law."

This case was investigated by the FBI’s Augusta Resident Agency with assistance from the Georgia Department of Corrections and the District Attorney’s Office for Swainsboro, Georgia.  The case is being prosecuted by Assistant U.S. Attorneys Tara Lyons and Matthew Josephson of the Southern District of Georgia and Trial Attorney Risa Berkower of the Justice Department’s Civil Rights Division.

Acting Assistant Attorney General John Gore, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Troy Walker, Special Agent in Charge, Florida Department of Law Enforcement (FDLE), today announced federal charges against former Biscayne Park Police Chief Raimundo Atesiano and former Officers Charlie Dayoub and Raul Fernandez for their roles in conspiring to falsely arrest a 16-year-old juvenile, T.D., for four unsolved burglaries.

Atesiano, Dayoub, and Fernandez were charged with conspiracy to violate civil rights under color of law, in violation of Title 18, United States Code, Section 241; and deprivation of T.D.’s civil rights, under color of law, in violation of Title 18, United States Code, Section 242.  If convicted, Atesiano, Dayoub, and Fernandez each face a maximum statutory sentence of 11 years in prison. An initial hearing for Atesiano will be held at 1:30 p.m. today, in Miami, before U.S. Magistrate Judge John J. O’Sullivan.

The indictment alleges that Atesiano, as the Biscyane Park Police Chief, caused and encouraged officers to knowingly arrest T.D. without a legitimate basis in order to maintain a fictitious 100 percent clearance rate of reported burglaries. Atesiano directed Dayoub and Fernandez to arrest T.D. on June 13, 2013, and falsely charge him with unsolved burglaries knowing that there was no evidence and no lawful basis to support such charges. The indictment further alleges that following Atesiano’s instruction, Dayoub and Fernandez gathered information for four unsolved burglary cases, completed four arrest affidavits for the burglaries, and included a false narrative that an investigation revealed that T.D. had committed the four burglaries of unoccupied dwellings. Atesiano, Dayoub and Fernandez knew there was no evidence and no lawful basis to arrest and charge T.D. with those crimes. On July 9, 2013, at a meeting of the City Council for The Village of Biscayne Park, Atesiano announced that his department had a 100 percent clearance rate for burglaries.

An indictment merely contains allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

This case is being investigated by the Miami Field Office of the Federal Bureau Investigation including the FBI Miami Area Corruption Task Force and FDLE. The case is being prosecuted by Assistant U.S. Attorney Harry Wallace and Special Assistant United States Attorney Trent Reichling of the Southern District of Florida, Katherine Fernandez Rundle, Miami-Dade State Attorney, and Trial Attorney D.W. Tunnage of the Civil Rights Division of the Department of Justice.   

Federal authorities announced today a significant coordinated effort to disrupt Business Email Compromise (BEC) schemes that are designed to intercept and hijack wire transfers from businesses and individuals, including many senior citizens.  Operation Wire Wire, a coordinated law enforcement effort by the U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of the Treasury and the U.S. Postal Inspection Service, was conducted over a six month period, culminating in over two weeks of intensified law enforcement activity resulting in 74 arrests in the United States and overseas, including 29 in Nigeria, and three in Canada, Mauritius and Poland.  The operation also resulted in the seizure of nearly $2.4 million, and the disruption and recovery of approximately $14 million in fraudulent wire transfers.

BEC, also known as “cyber-enabled financial fraud,” is a sophisticated scam often targeting employees with access to company finances and businesses working with foreign suppliers and/or businesses that regularly perform wire transfer payments.  The same criminal organizations that perpetrate BEC also exploit individual victims, often real estate purchasers, the elderly, and others, by convincing them to make wire transfers to bank accounts controlled by the criminals. This is often accomplished by impersonating a key employee or business partner after obtaining access to that person’s email account or sometimes done through romance and lottery scams.  BEC scams may involve fraudulent requests for checks rather than wire transfers; they may target sensitive information such as personally identifiable information (PII) or employee tax records instead of, or in addition to, money; and they may not involve an actual “compromise” of an email account or computer network.  Foreign citizens perpetrate many BEC scams.  Those individuals are often members of transnational criminal organizations, which originated in Nigeria but have spread throughout the world. 

“Fraudsters can rob people of their life's savings in a matter of minutes,” said Attorney General Sessions. “These are malicious and morally repugnant crimes. The Department of Justice has taken aggressive action against fraudsters in recent months, conducting the largest sweep of fraud against American seniors in history back in February. Now, in this operation alone, we have arrested 42 people in the United States and 29 others have been arrested in Nigeria for alleged financial fraud. And so I want to thank the FBI, nearly a dozen U.S. Attorneys' Offices, the Secret Service, Postal Inspection Services, Homeland Security Investigations, the Treasury Department, our partners in Nigeria, Poland, Canada, Mauritius, Indonesia, and Malaysia, and our state and local law enforcement partners for all of their hard work. We will continue to go on offense against fraudsters so that the American people can have safety and peace of mind.”

“This operation demonstrates the FBI’s commitment to disrupt and dismantle criminal enterprises that target American citizens and their businesses,” said FBI Director Christopher A. Wray. “We will continue to work together with our law enforcement partners around the world to end these fraud schemes and protect the hard-earned assets of our citizens. The public we serve deserves nothing less.”

“The Secret Service remains committed to aggressively investigating and pursuing those responsible for cyber-enabled financial crimes,” said U.S. Secret Service Director Randolph “Tex” Alles.  “Although the explosive expansion of the cyber domain has forced us to develop innovative ways of conducting these types of investigations, our proven model remains the same.”

“FinCEN has been a leader in the fight against BEC and other cyber-enabled crime,” said FinCEN Director Kenneth A. Blanco. “Since 2014, working with our domestic and international partners, our Rapid Response Program has helped recover over $350 million stolen from innocent Americans.  We must continue to be smarter, quicker, and better than the criminals that we face every day.  Today’s action is a victory, but it will take vigilance, time, and resources to take this fight into the future.  In defense of the victims of these crimes, we are ready for the challenge.”

“The U.S. Postal Inspection Service has a long history of successfully investigating complex fraud and corruption cases,” said Chief Postal Inspector Guy Cottrell. “We are proud to work alongside our fellow law enforcement partners in major efforts, such as Operation Wire Wire, to target those individuals who take advantage of the American public for illegal profits. Anyone who engages in deceptive practices like this should know they will not go undetected and will be held accountable, regardless of where they are. Postal Inspectors will continue to work tirelessly to protect our customers from fraud.” 

A number of cases involved international criminal organizations that defrauded small to large sized businesses, while others involved individual victims who transferred high dollar funds or sensitive records in the course of business.  The devastating effects these cases have on victims and victim companies, affect not only the individual business but also the global economy.  Since the Internet Crime Complaint Center (IC3) began keeping track of BEC and its variant, Email Account Compromise (EAC), as a complaint category, there has been a loss of over $3.7 billion reported to the IC3.  BEC and EAC is a prevalent scam and the Justice Department along with our partners will continue to aggressively pursue and prosecute the perpetrators, including money mules, regardless of where they are located. 

Money mules may be witting or unwitting accomplices who receive ill-gotten funds from the victims and then transfer the funds as directed by the fraudsters.  The money is wired or sent by check to the money mule who then deposits it in his or her own bank account.  Usually the mules keep a fraction for “their trouble” and then wire the money as directed by the fraudster.  The fraudsters enlist and manipulate the money mules through romance scams or “work-at-home” scams.

Starting in January 2018, this coordinated enforcement action targeted hundreds of BEC scammers.  In addition, law enforcement agents executed over 51 domestic actions including search warrants, money mule warning letters, and asset seizure warrants totaling nearly $1 million.  Local and state law enforcement partners on FBI task forces across the country, with the assistance of multiple District Attorney’s Offices, charged 15 alleged money mules for their role in defrauding victims.  These money mules were employed by the fraudsters to launder their ill-gotten gains by draining the funds into other accounts that are difficult to trace.

Among those arrested on federal charges in BEC schemes include:

• Following an investigation by the FBI and the U.S. Secret Service, 23 individuals were charged in the Southern District of Florida with laundering at least $10 million from proceeds of BEC scams, including eight people charged in an indictment unsealed last week in Miami. These eight defendants are alleged to have conspired to launder proceeds from numerous BEC scams, totaling at least approximately $5 million, including approximately $1.4 million from a victim corporation in Seattle, as well as various title companies and a law firm.
• Following an investigation led by the FBI with the assistance of the IRS Criminal Investigation, Gloria Okolie and Paul Aisosa, both Nigerian nationals residing in Dallas, Texas, were charged in an indictment filed on June 6 in the Southern District of Georgia.  According to the indictment, they are alleged to have victimized a real estate closing attorney by sending the lawyer a spoofing email posing as the seller and requesting that proceeds of a real estate sale in the amount of $246,000 be wired to Okolie’s account.  They are charged with laundering approximately $665,000 in illicit funds.  The attorney experienced $130,000 in losses after the bank was notified of the fraud and froze $116,000.
• Adeyemi Odufuye aka “Micky,” “Micky Bricks,” “Yemi,” “GMB,” “Bawz” and “Jefe,” 32, and Stanley Hugochukwu Nwoke, aka Stanley Banks,” “Banks,” “Hugo Banks,” “Banky,” and “Jose Calderon,” 27, were charged in a seven-count indictment in the District of Connecticut in a BEC scheme involving an attempted loss to victims of approximately $2.6 million, including at least $440,000 in actual losses to one victim in Connecticut.  A third co-conspirator Olumuyiwa Yahtrip Adejumo, aka “Ade,” “Slimwaco,” “Waco,” “Waco Jamon,” “Hade,” and “Hadey,” 32, of Toledo, Ohio, pleaded guilty on April 20 to one count of conspiracy to commit wire fraud.  Odufuye was extradited from the United Kingdom to the United States and on Jan. 3, pleaded guilty to one count of conspiracy to commit wire fraud and one count of aggravated identity theft. Nwoke was extradited to the United States from Mauritius on May 25, marking the first extradition in over 15 years from Mauritius.  His case is pending.
• Richard Emem Jackson, aka Auwire, 23, of Lagos, Nigeria, was charged in an indictment filed on May 17 in the District of Massachusetts with two counts of unlawful possession of a means of identification as part of a larger fraud scheme. According to the indictment, on two occasions in 2017, Jackson is alleged to have possessed the identifications of two victims with the intent to commit wire fraud conspiracy.  In another case being prosecuted in the District of Massachusetts, a 25-year-old Fort Lauderdale, Florida man was indicted in federal court in Boston on June 6 on one count of money laundering conspiracy. According to the indictment, the individual was part of a conspiracy that engaged in wire fraud. It is alleged that in early 2018, the defendant’s co-conspirators gained access to email accounts belonging to a Massachusetts real estate attorney and sent emails to recipients in Massachusetts that “spoofed” the real estate attorney’s account in an attempt to cause the email recipient to transfer nearly $500,000, which was intended to be used for payment in connection with a real estate transaction, to a shell account belonging to a money mule recruited and controlled by the defendant.

The BEC scam is related to other forms of fraud such as:

• “Romance scams,” which lull victims to believe that their online paramour needs funds for an international business transaction, a U.S. visit or some other purpose;
• “Employment opportunities scams,” which recruits prospective employees for work-from-home employment opportunities where employees are required to provide their PII as new “hires” and then are significantly overpaid by check whereby the employees wire the overpayment to the employers’ bank;
• “Fraudulent online vehicle sales scams,” which convinces intended buyers to purchase prepaid gift cards in the amount of the agreed upon sale price and are instructed to share the prepaid card codes with the “sellers” who ignore future communications and do not deliver the goods;
• “Rental scams” occur when renters forward a check in excess of the agreed upon deposit for the rental property to the victims and request the remainder be returned via wire or check and back out of the rental agreements and ask for a refund; and
• “Lottery scams,” which involves persons randomly contacting email addresses advising them they have been selected as the winner of an international lottery.

The cases were investigated by the FBI, U.S. Secret Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of the Treasury Financial Crimes Enforcement Network (FinCEN) and IRS Criminal Investigation.  U.S. Attorney’s Offices in the Districts of Central California, Connecticut, Eastern Virginia, Massachusetts, Nebraska, New Jersey, Southern Florida, Southern Georgia, Southern Texas, Eastern Pennsylvania, Eastern Washington, Western Pennsylvania, Western Tennessee, Western Washington, Utah, and elsewhere have ongoing investigations some of which have resulted in arrests in Nigeria.  The Justice Department’s Computer Crime and Intellectual Property Section, Money Laundering and Asset Recovery Section and Office of International Affairs of the Criminal Division provided assistance. District Attorney’s Offices of Caddo Parrish in Shreveport, Louisiana; Harris County, Texas and Los Angeles are handling state prosecutions. Additionally, private sector partners and the Nigerian Economic and Financial Crimes Commission, Canadian law enforcement including the Toronto Police Service, the Mauritian Attorney-General and the Commissioner of Police, Polish Police Central Bureau of Investigation, Indonesian National Police Cyber Crimes Unit, and the Royal Malaysia Police provided significant assistance.  

This operation, which was funded and coordinated by the FBI, serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents.  Attorney General Sessions expressed gratitude for the outstanding efforts of the participating countries, including law enforcement actions that were coordinated and executed by the Economic and Financial Crimes Commission (EFCC) in Nigeria to curb business email compromise schemes that defraud businesses and individuals alike.

Victims are encouraged to file a complaint online with the IC3 at bec.ic3.gov. The IC3 staff reviews complaints, looking for patterns or other indicators of significant criminal activity, and refers investigative packages of complaints to the appropriate law enforcement authorities in a particular city or region. The FBI provides a variety of resources relating to BEC through the IC3, which can be reached at www.ic3.gov.

For more information on BEC scams, visit: www.ic3.gov/media/2018/180611.aspx

John Demers, Assistant Attorney General for National Security, announced today the public release of the advisory opinions issued by the Department of Justice’s Foreign Agents Registration Act (FARA) Registration Unit since January 1, 2010.  See https://www.justice.gov/nsd-fara/advisory-opinions.

“Eighty years ago, Congress passed and President Franklin D. Roosevelt signed the Foreign Agents Registration Act (FARA) to combat the spread of hidden foreign influence in American politics,” Assistant Attorney General Demers said.  “Today is the law’s 80th anniversary, and it remains a vital tool to combat this threat.  To enhance compliance, we are making these advisory opinions available publicly and online for the first time. By posting these advisory opinions, the Department of Justice is making clearer how we interpret some of FARA’s key provisions.”

FARA, as amended, 22 U.S.C. § 611 et seq., requires persons in the United States who engage in specified activities as agents of foreign principals to register with the Department of Justice (the “Department”) unless they are exempt.  Disclosures under FARA help to ensure transparency in the activities of foreign principals and make it more difficult for those principals to maintain secret their role in activities occurring in the United States.  Within the Department’s National Security Division (NSD), responsibility for the administration and enforcement of FARA resides with the FARA Registration Unit, which is part of the Counterintelligence and Export Control Section.

Pursuant to regulations that the Department has issued implementing FARA, potential registrants or their counsel may ask the FARA Registration Unit how the Department interprets and applies FARA.  See 28 C.F.R. § 5.2.  Such inquiries must be in writing, must pertain to an actual, as opposed to hypothetical situation, and must disclose the identities of the parties involved. Written materials submitted pursuant to such a request are treated as confidential.

The FARA Registration Unit has issued 49 advisory opinions since January 1, 2010, which are being posted on the FARA.gov website together with three other letters sent in response to requests for general information.  The opinions and letters will be organized on the website by topic of inquiry or the aspects of the statute they discuss.  Any proprietary information, including any information that would identify the parties who made the requests has been redacted. The FARA Unit will post future advisory opinions in a similar manner on a periodic basis.

In its September 2016 Audit of NSD’s Enforcement and Administration of FARA, the Department’s Inspector General recommended that NSD consider the value of making advisory opinions publicly available.  NSD agreed with that recommendation and posted summaries of a few opinions on the website.  With the public posting of a more comprehensive repository of correspondence, the Department has demonstrated its commitment to improving the public’s understanding of FARA.

A U.S. citizen was sentenced to 72 months in prison for paying a 14-year-old girl for sex on multiple occasions in 2007.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., Special Agent in Charge Tracy Corimer of HSI St. Paul, Minnesota and Attaché Ransom J. Avilla of HSI Manila, Philippines made the announcement.

On April 19, James Marvin Reed, 62, pleaded guilty to engaging in illicit sexual conduct in a foreign place. According to court documents, from in or about September 2007 until in or about December 2007,  Reed, then 52 years old, engaged in commercial sexual intercourse on multiple occasions with the then 14-year-old victim, and impregnated her, while he was working in the Philippines as a contractor for the U.S. Department of Defense. In 2016, he was arrested by Philippine authorities and returned to the United States for prosecution.

Senior U.S. District Judge Donovan Frank for the District of Minnesota sentenced Reed to serve 72 months in prison followed by 15 years of supervised release, and ordered Reed to pay $6,000 in restitution to the victim in the case.

The case was investigated by HSI. Trial Attorneys Ralph Paradiso and James E. Burke IV of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case. CEOS Trial Attorney Kathryn Furtado also served as a vital member of the prosecution team at earlier stages of the litigation.  The U.S. Attorney’s Office for the District of Minnesota also provided substantial assistance in this prosecution.

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

President Trump’s Executive Order on Enhancing Public Safety in the Interior of the United States requires the Department of Justice (DOJ) and the Department of Homeland Security (DHS) to collect relevant data and provide quarterly reports on data collection efforts. On June 7, 2018 DOJ and DHS released the FY 2018 1st Quarter Alien Incarceration Report, complying with this order.[1] The report found that more than one-in-five of all persons in Bureau of Prisons custody were known or suspected aliens, and 93 percent of confirmed aliens in DOJ custody were in the United States unlawfully.

"The illegal immigrant crime rate in this country should be zero," said Attorney General Sessions. "Every crime committed by an illegal alien is, by definition, a crime that should have been prevented. It is outrageous that tens of thousands of Americans are dying every year because of the drugs and violence brought over our borders illegally and that taxpayers have been forced, year after year, to pay millions of dollars to incarcerate tens of thousands of illegal aliens. That is another reason why the Department of Justice under President Trump's leadership has instituted a zero tolerance policy for illegal entry on our Southwest border. Today's report is yet another reminder that we must continue this policy and help fulfill President Trump's goals of restoring lawfulness to our immigration system and ensure that immigration serves the good of this country."

“Bad actors know well our legal loopholes which act as a magnet for illegal immigration,” said Secretary Nielsen. “As DHS continues to carry out President Trump’s immigration priorities to keep America safe, Congress must urgently act to close dangerous loopholes that attract criminal aliens and also inhibit our ability to remove them.”

Section 16 of the Executive Order directs the Secretary of Homeland Security and the Attorney General to collect relevant data and provide quarterly reports regarding: (a) the immigration status of all aliens incarcerated under the supervision of the Federal Bureau of Prisons; (b) the immigration status of all aliens incarcerated as federal pretrial detainees under the supervision of the United States Marshals Service; and (c) the immigration status of all convicted aliens in state prisons and local detention centers throughout the United States. 

A total of 57,820 known or suspected aliens were in in DOJ custody at the end of FY 2018 Q1, including 38,132 persons in BOP custody and 19,688 in USMS custody. Of this total, 42,284 people had been confirmed by U.S. Immigration and Customs Enforcement (ICE) to be aliens (i.e., non-citizens and non-nationals), while 15,536 aliens were still under investigation by ICE to determine alienage and/or removability.

Among the 42,284 confirmed aliens, 39,413 people (93 percent) were unlawfully present. These numbers include a 62 percent unlawful rate among 38,132 known or suspected aliens in BOP custody and a 78 percent unlawful rate among 19,688 confirmed aliens in USMS custody.

Approximately 16,233 aliens in USMS custody required housing in state, local, and private facilities, which cost $1,458,372.72 a day.

For the first time, the Quarterly Alien Incarceration Report included examples of newly sentenced or incarcerated aliens in BOP custody. These examples include, but are not limited to:

• Anibel Rondolpho Rodriguez, an illegal alien from Honduras who was residing in Freeport, NY, was sentenced to 45 years in prison after he pled guilty to racketeering charges, two murder conspiracies, two attempted murders, and threatening to commit assault.
• Eduardo Martinez, an illegal alien who was residing in Fort Wayne, Indiana, was sentenced to 324 months in prison after he pled guilty to possession with intent to distribute more than a kilogram of heroin, distribution of over 50 grams of methamphetamine, and possession of a firearm.
• Pedro Quintero-Enriques, an illegal alien from Mexico who was residing in Summerdale, Alabama, was sentenced to 108 months in prison after he pled guilty to illegal reentry after deportation and felon in possession of firearms.

This report does not include data on the alien populations in state prisons and local jails because state and local facilities do not routinely provide DHS or DOJ with comprehensive information about their inmates and detainees—which account for approximately 90 percent of the total U.S. incarcerated population.

Information Regarding Immigration Status of Aliens Incarcerated Under the Supervision of the Federal Bureau of Prisons

The Department of Justice’s Bureau of Prisons (BOP) has an operational process for maintaining data regarding foreign-born inmates in its custody. On a quarterly basis, BOP supplies this information to U.S. Immigration and Customs Enforcement (ICE). ICE, in turn, analyzes that information to determine the immigration status of each inmate and provides that information back to BOP.

Out of the 183,058 inmates in BOP custody, 38,132 (twenty-one percent) were reported by BOP as known or suspected aliens. Further details regarding these 38,132 known or suspected aliens are as follows: 

•  20,976 (55 percent) were unauthorized aliens who are subject to a final order of removal;

•  11,698 (31 percent) remain under ICE investigation;

•  2,850 (seven percent) were unlawfully present and now in removal proceedings;

•  2,484 (approximately seven percent) were lawfully present aliens but are now in removal proceedings; and

•  124 were aliens who have been granted relief or protection from removal.

Information Regarding the Immigration Status of Aliens Incarcerated as Federal Pretrial Detainees

            USMS identified 19,688 confirmed aliens under ICE investigation detained at USMS facilities. Further details regarding these 19,688 confirmed aliens are as follows:

•  13,858 (70 percent) were aliens who are subject to a final order of removal;

•  3,838 (19 percent) remain under ICE investigation;

•  1,560 (7.9 percent) were unlawfully present and now in removal proceedings;

•  387 (approximately two percent) were lawfully present but are now in removal proceedings; and

•  45 were aliens who have been granted relief or protection from removal.

Pending Charges Against Confirmed Aliens in USMS Custody

Of the 19,688 confirmed aliens in USMS custody, 10,971 (56 percent) were in custody for an immigration related offense. Additionally, 4,665 (nearly 24 percent) aliens were in custody for drug related offenses. Further details regarding the related charges of these inmates are as follows:

• 974 (approximately five percent) were in custody for supervision violations;
• 889 (approximately five percent) were in custody for property offenses;
• 391 (approximately five percent) were in custody for weapons violations;
• 378 (approximately two percent) were in custody for violent crimes;
• 745 (approximately four percent) in custody were material witnesses.

Immigration Status of All Convicted Aliens Incarcerated in State Prisons and Local Detention Centers Throughout the United States

Some state and local jurisdictions already take proactive measures to make this data available to the public. For example, the Texas Department of Public Safety publishes data online regarding criminal alien arrests and convictions. These data do not account for all aliens in the Texas criminal justice system, as they are limited to criminal alien arrestees who have had prior interaction with DHS resulting in the collection of their fingerprints.

As reported by the Texas Department of Public Safety (DPS), 251,000 criminal aliens have been booked into local Texas jails between June 1, 2011 and April 30, 2018, according to DHS status indicators. These criminal aliens were charged with:

• More than 663,000 criminal offenses;
• 1,351 homicides;
• 7,156 sexual assaults;
• 9,938 weapons charges;
• 79,049 assaults;
• 18,685 burglaries;
• 79,900 drug charges;
• 815 kidnappings;
• 44,882 thefts;
• 4,292 robberies.

Additional conviction data can be found in the report.

The Departments continue to progress towards establishing data collection of the immigration status of convicted aliens incarcerated in state prisons and local detention centers through the Department of Justice’s Office of Justice Programs, Bureau of Justice Statistics and the Department of Homeland Security’s Office of Immigration Statistics.

The Drug Enforcement Administration will establish the Omaha Field Division – its 23rd division office in the United States – on July 8, 2018. The division will include Nebraska, Iowa, Minnesota, North Dakota and South Dakota.  

"In January, DEA reorganized its field divisions for the first time in nearly 20 years. Today, just five months later, we are adding another new field division," said Attorney General Jeff Sessions. "That’s because we are facing a drug threat today the likes of which we have never seen before—but we are rising to the challenge. The Omaha Division will help us address the methamphetamine and opioid threat in Nebraska, Iowa, Minnesota, North Dakota, and South Dakota. The people of these states can rest assured that, in the face of an unprecedented crisis, we are taking steps to be more effective and put the traffickers and crooked doctors where they belong—behind bars."

“This action converts the existing Omaha District Office into a division in an effort to enhance DEA enforcement efforts within the Great Plain states region and unify drug trafficking investigations under a single Special Agent in Charge,” said DEA Acting Administrator Robert W. Patterson.

“DEA anticipates that this change will produce more effective investigations on methamphetamine, heroin, fentanyl and prescription opioid trafficking, all of which have a significant impact on the region,” said DEA Omaha’s Special Agent in Charge Matthew R. Barden. 

The division will also better align DEA with the U.S. Attorneys’ Offices districts in those areas, similar to current ATF and FBI offices, and also to the Midwest High Intensity Drug Trafficking Areas (HIDTA) Program.

The Omaha Division will be led by Special Agent in Charge Matthew R. Barden, who comes from the St. Louis Division where he served as Associate Special Agent in Charge.

A St. George, Utah, financial advisor was sentenced to 72 months in prison on June 4th for his role in selling fraudulent tax-avoidance and investment strategies to his clients, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah.

According to documents and information provided to the court, Henry Brock, pleaded guilty to tax evasion, securities fraud and wire fraud.  Brock founded a financial services company in 2009 and served as the president from 2009 through 2017.  As President, he marketed and sold a fraudulent tax scheme, called “IRA Exit Strategy,” to potential investors.  Brock promised investors that he could provide a way for them to avoid paying taxes on IRA withdrawals, which would otherwise be subject to Internal Revenue Service (IRS) penalties and taxes.  To implement his scheme, Brock caused his business to issue tax forms to his clients falsely representing that they were investors in his business who incurred losses, which served to offset the clients’ tax liabilities.  As a result, Brock caused clients to file fraudulent income tax returns claiming a total of approximately $3.8 million in bogus business losses and resulting in a tax loss of over $1.1 million.

During this period, Brock fraudulently raised more than $10.8 million in investments by making false representations to investors regarding the “IRA Exit Strategy,” the financial condition of his company and other matters.  On at least one occasion, Brock also transferred $196,323 of a client’s investment funds and used the money for his own personal and business expenses.

In addition to the term of imprisonment, U.S. District Court Judge Ted Stewart ordered Brock to serve three years of supervised release and to pay restitution in the amount of $12 million.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Huber thanked special agents of IRS Criminal Investigation and the Utah Division of Securities, who conducted the investigation, and AUSA Trina Higgins and Trial Attorney Matthew Hoffman of the Tax Division, who are prosecuting this case.

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

Fayetteville, Arkansas – Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Matthew Lee Anglin, age 29, of Springdale, Arkansas, was sentenced today to 96 months in federal prison followed by ten years of supervised release on one count of Receipt of Child Pornography. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.

According to court records, in December 2016, Homeland Security Investigations (HSI) officers assigned to the Internet Crimes Against Children (ICAC) Task Force in Northwest Arkansas received information from the National Center for Missing and Exploited Children (NCMEC) that a user uploaded 166 images of child pornography onto the Google Drive Cloud Storage. An investigation into the email address and associated phone number revealed that the email address used to upload the images belonged to Anglin. In May of 2017, a local business employee contacted HSI investigators and advised that they recovered a cellphone left behind by a customer that contained suspected child pornography. The cellphone was seized by HSI investigators. In August of 2017, investigators conducted a forensic examination of the cellphone and found that it contained 169 images of child pornography, 82 images of child erotica, and 149 images of suspected child pornography. The cellphone number was associated with Anglin’s email address that uploaded images of child pornography onto the Google Drive cloud storage.

A federal grand jury indicted Anglin in October 2017, and he pleaded guilty in January of 2018. 

This case was investigated by Homeland Security Investigations and the Internet Crimes Against Children Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.

The Department of Justice today announced that it has reached a settlement agreement with Syncom Space Services, LLC (S3) that resolves allegations that S3 violated the employment rights of Louisiana Air National Guardsman, Jason Cooper, under the Uniformed Services Employment and Reemployment Rights Act (USERRA).  USERRA safeguards the rights of uniformed servicemembers, including National Guardsmen, to all benefits of employment following periods of absence due to military service obligations.  The benefits of employment protected by USERRA include promotional opportunities. 

Cooper worked as a Predictive Testing and Inspection (PT&I) Specialist for S3 at Stennis Space Center in Hancock County, Mississippi.  On June 13, 2016, he was deployed on active duty with the Air National Guard. During his deployment, Cooper applied for a vacant PT&I Shoplead position.  Although Cooper had the most PT&I experience of all applicants, S3 failed to promote him to the position upon his return from deployment.  As a result of the employer’s failure to promote him to a position that he was qualified for, because of his military service, Cooper lost promotional income and benefits. 

“Our nation’s national guard and reservists should not have to worry about losing opportunities for promotion or increased benefits in their civilian jobs after they return from active duty military service to our country,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.  “The Department Justice is committed to ensuring that our servicemembers’ employment rights are protected at home while they defend our rights abroad.”

“The tremendous sacrifice of our National Guard members who are called into active duty should never be a detriment to their lives and every day jobs. We in the U.S. Attorney’s Office are committed to ensuring that these men and women are honored, not disadvantaged, for their military service,” said U.S. Attorney Mike Hurst. “We will continue to hold employers who violate the rights of our servicemembers accountable. We appreciate S3’s agreement to fulfilling its legal obligation to Mr. Cooper in this matter.”

Under the terms of the settlement agreement, S3 has agreed to pay Cooper $6,812.59 for lost wages, and to make his promotion effective as of the date on which he returned to work from active duty. He began his new position on June 4, 2018.  The USERRA claims settled by this agreement are allegations only, and there has been no determination of liability.

Cooper initially filed a complaint with the United States Department of Labor’s  Veterans’ Employment and Training Service, which investigated this matter and then referred it to the Justice Department after attempts at resolution failed. 

The matter was handled by Assistant U.S. Attorney Candace Mayberry of the U.S. Attorney’s Office for the Southern District of Mississippi in collaboration with Andrew Braniff, Assistant Director of the Department of Justice’s Servicemembers and Veterans Initiative, and Alicia Johnson, USERRA/USAO Program Coordinator in the Civil Rights Division’s Employment Litigation Section.

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

The Justice Department today announced that it reached an agreement with the Louisiana Department of Health (Louisiana) to resolve its lawsuit alleging that Louisiana fails to serve people with serious mental illness in the most integrated setting appropriate to their needs in violation of the Americans with Disabilities Act (ADA). The Justice Department’s complaint alleges that Louisiana places undue reliance on providing services in institutionalized settings such as nursing facilities, instead of in the community, for people with serious mental illness. 

Under the agreement, Louisiana will create and implement a plan to expand community-based services like mobile crisis, case management, assertive community treatment, and supported housing to meet people’s needs in the community. In addition, Louisiana will assess all existing nursing facility residents with mental illness and all new referrals for admission to determine whether they can be served appropriately in the community.

“The ADA requires public entities to administer services, programs, and activities in the most integrated setting appropriate to the needs of qualified individuals with disabilities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.  “We commend Louisiana for committing to take the steps necessary to ensure that people with serious mental illness have the opportunity to live, work, and thrive in their own communities instead of being unnecessarily segregated in nursing facilities.”   

Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.

John “Jake” Bell, a resident of Lakeville, Connecticut, pleaded guilty today to illegally trafficking teeth from endangered sperm whales. The guilty plea was announced by Acting Assistant Attorney General Jeffrey H. Wood for the Department of Justice’s Environment and Natural Resources Division. 

Bell pleaded guilty today in Boston before U.S. District Judge Mark L. Wolf, for the District of Massachusetts, to one count of wildlife trafficking in violation of the Lacey Act. As part of his plea, Bell admitted that in November 2004, while in the Ukraine, he sold approximately 34 sperm whale teeth to a co-conspirator who resided in Nantucket, Massachusetts, for $11,600. Bell shipped the 34 teeth in multiple boxes from the Ukraine to an associate in Connecticut, from where his co-conspirator retrieved them. Bell’s co-conspirator was convicted in 2010, after a jury trial, and sentenced to a 33-month term of imprisonment.

According to the indictment, Bell acquired the teeth and smuggled them into the United States. Bell, who was an artist and scrimshander, carved some of the teeth he sold, but also sold uncarved teeth to customers.  According to papers filed in federal court, between July 2005 and June 2006, Bell smuggled in excess of 49 pounds of sperm whale teeth into the United States, valued in excess of $26,000. Also, according to these filings, between June 2007 and April 2008, Bell sold nine carved teeth to customers in the United States, with a total value of $20,300. 

“Sperm whale teeth can weigh over two pounds each and are alluring to many collectors. But gone are the days when people can buy, sell and trade parts harvested from protected creatures like the sperm whale. This amazing creature is safeguarded from exploitation by federal laws like the Endangered Species Act and Marine Mammal Protection Act as well as international treaties,” said Acting Assistant Attorney General Wood. “Today’s guilty plea demonstrates that those who attempt to profit from the illegal trade of endangered species will face the consequences for their actions under law.”  

“Federal law provides great protection to the marine mammals that live in our waters," said Director James Landon for NOAA's Office of Law Enforcement (OLE). "OLE is dedicated to enforcing those laws and seeing that those who violate them are held accountable for their illegal actions."

The Marine Mammal Protection Act and Endangered Species Act protect sperm whales and, among other things, prohibits their parts from being sold in interstate or foreign commerce or imported into the United States without a permit.  In addition, the Lacey Act creates penalties for knowingly trafficking or importing wildlife and parts from wildlife like sperm whales, and United States customs laws prohibit importing merchandise like sperm whale parts knowingly in violation of the law or federal regulations.

The investigation was handled by the National Oceanic and Atmospheric Administration’s Office of Law Enforcement and the Justice Department’s Environmental Crimes Section.  The government is represented by Trial Attorneys Erica Pencak and Gary N. Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.

A Los Angeles resident was sentenced today to 10 years in prison for two child exploitation offenses, including engaging in illicit sexual conduct in foreign places and traveling in foreign commerce for the purpose of engaging in illicit sexual conduct, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Joseph Macias of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Los Angeles. 

Paul Alan Shapiro, 71, a retired auto dealership employee, pleaded guilty one day before he was set to go on trial on July 24, 2017. Under the terms of the plea agreement, Shapiro will serve 10 years in federal prison, 20 years of supervised release following his prison sentence, and will pay $20,000 total to two victims, both of whom are citizens of the Kingdom of Thailand.  U.S. District Court Judge Dolly M. Gee of the Central District of California presided over today’s sentencing.  

According to plea documents, Shapiro traveled from Los Angeles to Thailand on numerous occasions over the past 20 years, and engaged in sexual acts with male boys under the age of 16 on multiple occasions. On at least two occasions in September 2012, Shapiro paid minors as young as 13 years old small amounts of local currency in order to engage in various sex acts with them. According to other documents filed in the case, Shapiro photographed these encounters of himself engaging in sexually explicit conduct with the boys.

HSI conducted the investigation.  Trial Attorneys Austin M. Berry and Ralph Paradiso of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.

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

The defendant used violence, threats, isolation, and intimidation to compel victim to work seven days a week without pay at restaurant

Defendant Bobby Paul Edwards, 53, of Conway, South Carolina, pleaded guilty Monday in United States District Court for the District of South Carolina to one count of forced labor, admitting that he used violence, threats, isolation and intimidation to compel a man with an intellectual disability to work for over 100 hours a week without pay, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division and United States Attorney Sherri A. Lydon of the District of South Carolina.

According to court documents, between 2009 and 2014, Edwards managed a restaurant in Conway, South Carolina, where the victim, identified in court documents as “JCS,” had worked since he was 12 years old. Once Edwards began managing the restaurant in 2009, he increased JCS’s duties, requiring him to work more than 100 hours per week. The defendant stopped paying JCS and began using violence, threats, isolation, and intimidation to compel victim JCS’s continued service. According to court documents and Edward’s admissions, he subjected JCS to abusive language, racial epithets, threats, and acts of violence that included beating JCS with a belt, punching JCS with his fists, hitting JCS with pots and pans, and burning JCS’s bare neck with hot tongs, in order to compel JCS to work faster or to punish JCS for mistakes.

The defendant compelled JCS to continue working under these conditions until October 2014, when authorities removed victim JCS from the premises after receiving complaints about the abuse.

“Human trafficking through forced labor can happen on farms, in homes, and as today’s case shows – in public places, such as restaurants,” said Acting Assistant Attorney General John Gore. “Edwards abused an African-American man with intellectual disabilities by coercing him to work long hours in a restaurant without pay. Combatting human trafficking by forced labor is one of the highest priorities of this Justice Department and today’s guilty plea reflects our commitment to seeking justice on behalf of victims of human trafficking.”

“This defendant abused a vulnerable victim, and today’s guilty plea holds the defendant responsible for his criminal acts,” said U.S. Attorney Sherri Lydon for the District of South Carolina. 

Edwards faces a maximum of 20 years in prison for forced labor, a $250,000 maximum fine, and mandatory restitution to the victim. A sentencing date has not yet been scheduled. According to the terms of the plea agreement, the defendant will also be required to pay restitution to victim JCS in an amount to be determined at the time of sentencing.

This case was investigated by the Federal Bureau of Investigation, with assistance from the Department of Labor’s Wage and Hour Division. The case is being prosecuted by Special Litigation Counsel Jared Fishman, Trial Attorney Lindsey Roberson of the Civil Rights Division’s Criminal Section and its Human Trafficking Prosecution Unit, and Assistant U.S. Attorney Alyssa Leigh Richardson of the District of South Carolina.

An Avenues gang member who was captured last year after more than a decade on the run was sentenced Monday to 20 years in prison on federal hate crime and firearms charges that were filed against him in 2004, announced Acting Assistant Attorney General John Gore of the Civil Rights Division, United States Attorney Nicola T. Hanna of the Central District of California, and FBI Special Agent in Charge Paul D. Delacourt for the Los Angeles Field Office.

Merced Cambero Jr., 39, who used the gang moniker “Shadow,” pleaded guilty in February to participating, along with other gang members, in a conspiracy to use violence against African-Americans to interfere with their right to live in the Highland Park neighborhood of Los Angeles. Cambero also admitted to participating in the 1999 racially-motivated murder of Kenneth Wilson, an African-American man who was shot and killed in furtherance of that conspiracy.  The defendant was sentenced by United States District Judge Percy Anderson, who in 2006 presided over the trial of four co-defendants who were charged along with Cambero in the initial 2004 indictment and a superseding indictment that followed in 2005.

The superseding indictment alleged that Cambero and three of the four co-defendants – Gilbert “Lucky” Saldana, Alejandro “Bird” Martinez, and Fernando “Sneaky” Cazares – shot and killed Mr. Wilson because of his race and because he was using the public streets in Los Angeles, and that they used firearms during and in furtherance of that crime.  These defendants were also charged, along with a fourth co-defendant, Porfirio “Dreamer” Avila, with conspiring to use violence to interfere with the federal housing rights of African Americans in Highland Park, including another African-American man, Christopher Bowser, who was shot and killed in 2000. Saldana, Martinez, Cazares, and Avila stood trial in 2006, were convicted on all charges, and were sentenced to life in prison. Although Cambero was charged in the same indictment, he was never arrested or arraigned until he was captured in Mexico last year.  He was then returned to the United States to face the charges against him.

At the 2006 trial of the co-defendants, a jury heard testimony from two Avenues gang members who participated in the murder of Kenneth Wilson and implicated Cambero and three co-defendants. The gang-member witnesses also testified about an agreement among Avenues gang members to try to preserve the primarily-Latino make-up of Highland Park by engaging in violence against African Americans. Their testimony was corroborated by numerous African-American residents of the Highland Park neighborhood who described acts of racially-motivated violence directed at them by the defendants and their fellow gang members. 

In court filings connected with Cambero’s guilty plea and sentencing, Cambero confirmed the evidence from the earlier trial, admitted that he and his fellow gang members were in a stolen van when they saw Wilson, whom they did not know, and decided to kill him because of his race.  Cambero admitted that he and two other gang members then got out of the van and fired guns at Wilson, who was killed by a single gunshot through the neck.

“This Justice Department will not tolerate any act of violence motivated because of another’s race,” said Acting Assistant Attorney General John Gore. “The defendant’s egregious actions were unlawful, and as this sentencing demonstrates, will not go without punishment. The Civil Rights Division will continue to vigorously prosecute those who commit violent acts of hate.”

“This defendant was part of a reprehensible scheme that targeted an entire class of people simply because of skin color,” said U.S. Attorney Nick Hanna. “The Justice Department is committed to preserving and protecting everyone’s civil rights – particularly when violent acts are used to violate those rights. Mr. Cambero attempted to avoid prosecution for many years, but we persisted to bring him to justice and send a message to the entire community that this type of conduct will not be tolerated and will be punished.”

After hearing from the mothers of two African-American men killed by the gang, Judge Anderson on Monday accepted the guilty plea and sentenced Cambero to 20 years in prison.  Among the considerations Judge Anderson cited as influencing his sentence were the defendant’s acceptance of responsibility and the desire of the victims and witnesses to be spared the trauma of another trial.

This case was investigated by the FBI’s Los Angeles Field Office and was prosecuted by Deputy Chief Bobbi Bernstein of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Jennifer Chou and Daniel O’Brien of the Central District of California.

A federal court in Newnan, Georgia permanently enjoined Lucrezia Finch Henderson from preparing federal income tax returns for others, the Justice Department announced today.  The court also ordered Henderson to mail a copy of the injunction order to all customers for whom she prepared a return after January 1, 2015.

According to that complaint, Henderson prepares tax returns at Infinity Tax located at 104 Sage Commercial Drive, Suite B, in Lagrange, Georgia. As alleged in the complaint, Henderson engaged in abusive tax schemes such as reporting fake businesses on her customers’ returns in order to generate losses to lower their tax liabilities.  The Court found that Henderson falsely reported on several of her customers’ returns that each had a business that earned no money and had tens of thousands of dollars in expenses.  According to the complaint, Henderson used the losses from these fake businesses to offset her customers’ income and claim a larger tax refund than they were entitled to receive.

In addition, the Court found that Henderson falsely reported that her customers had education expenses in support of education credits the customers were not eligible to claim.  The complaint alleged that some of these customers did not even attend college that year. According to the complaint, the IRS audited about 110 returns prepared by Henderson for her customers and found that Henderson understated her customers’ tax liabilities by more than $650,000 in the aggregate.

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 their 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.

A jury in the Northern District of California convicted Jyh-Chau “Henry” Horng, of Saratoga, California and part owner of a home-based international trading business, yesterday on two counts of filing false tax returns and one count of making false statements to an Internal Revenue Service (IRS) agent while under audit, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and Acting United States Attorney Alex G. Tse for the Northern District of California. The jury acquitted Horng’s wife, Meili Lin, on one count of filing a false tax return and failed to reach a verdict on the second count.

According to court documents and evidence presented during the three-week trial, Horng underreported income on his 2006 and 2007 tax returns.  The returns failed to report profits from selling metal products to China while that country was undergoing its economic and infrastructure boom.  Horng used these business profits to buy millions of dollars of residential properties, invest over $5 million in a Milpitas shopping center, and purchase a Bentley.  Horng also reported annual income of over $1 million on a mortgage application, despite reporting far less than that on the tax returns he filed with the IRS.  During an IRS audit of the returns, Horng made numerous false statements, including that neither he nor his wife had any foreign bank accounts.

Horng faces a statutory maximum sentence of three years in prison for each false tax return.  He could be sentenced to an additional five years for lying to the IRS auditor.  He is also subject to a period of supervised release, restitution, and monetary penalties. 

Principal Deputy Assistant Attorney General Zuckerman and Acting United States Attorney Tse thanked IRS Special Agents Maria Martinez and Cheryl Parker for their work on the investigation, Assistant United States Attorney Michael Pitman and Trial Attorney Christopher Magnani for prosecuting the case, and Paralegal Specialist Jonathan Deville for his assistance during the trial. 

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

A federal grand jury sitting in Greensboro, North Carolina returned an indictment, which was unsealed today, charging the operators of a mental health provider with multiple crimes related to the submission of false claims to Medicaid and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Matthew G.T. Martin for the Middle District of North Carolina.

Catinia Farrington and Haydn Thomas, both formerly of Durham, North Carolina, are charged with conspiracy to commit health care fraud, health care fraud, aggravated identity theft, and tax evasion. Thomas is also charged with one count of money laundering.

According to the indictment, Farrington owned Durham County Mental Health and Behavioral Health Services LLC (“DCMBHS”) in Durham, North Carolina.  From 2011 through 2015, Farrington, along with Thomas, allegedly submitted thousands of false claims to Medicaid that resulted in Medicaid paying over $4 million to DCMBHS.  During the relevant period, Thomas worked as an office manager for an oral surgeon. Thomas and Farrington allegedly obtained the Medicaid numbers of dental patients and then submitted false claims to Medicaid for mental health services that were not performed without the permission of the patients. 

The indictment further alleges that Farrington and Thomas diverted millions of dollars from DCMBHS for their own personal use and evaded income taxes by, among other things, transferring money to various business bank accounts and paying personal expenses from the business bank accounts.

If convicted, Farrington and Thomas face a statutory maximum of 10 years in prison for each count of health care fraud, 10 years in prison for conspiracy to commit health care fraud, two years in prison for each count of aggravated identity theft, and five years in prison for each count of tax evasion. Farrington and Thomas also face a period of supervised release, restitution, and monetary penalties. An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Principal Deputy Assistant Attorney General Zuckerman and United States Attorney Martin commended special agents of the Internal Revenue Service, the U.S. Department of Health and Human Service, Office of Inspector General, and the Medicaid Investigations Division of the North Carolina Attorney General’s Office (MID), who conducted the investigation, and Assistant United States Attorney Robert Hamilton, Trial Attorney Mara Strier of the Tax Division, and Special United States Attorney Michael Heavner MID, who are prosecuting the case.

Today, on the 500th day of the Trump Administration, Attorney General Jeff Sessions announced that the Department of Justice is taking a dramatic step to increase resources to combat violent crime, enforce our immigration laws, and help roll back the devastating opioid crisis. In the largest increase in decades, the Department of Justice is allocating 311 new Assistant United States Attorneys to assist in priority areas. Those allocations are as follows: 190 violent crime prosecutors, 86 civil enforcement prosecutors, and 35 additional immigration prosecutors. Many of the civil enforcement AUSA’s will support the newly created Prescription Interdiction & Litigation Task Force which targets the opioid crisis at every level of the distribution system.

"Under President Trump's strong leadership, the Department of Justice is going on offense against violent crime, illegal immigration, and the opioid crisis—and today we are sending in reinforcements," said Attorney General Jeff Sessions. "We have a saying in my office that a new federal prosecutor is 'the coin of the realm.'  When we can eliminate wasteful spending, one of my first questions to my staff is if we can deploy more prosecutors to where they are needed. I have personally worked to re-purpose existing funds to support this critical mission, and as a former federal prosecutor myself, my expectations could not be higher. These exceptional and talented prosecutors are key leaders in our crime fighting partnership. This addition of new Assistant U.S. Attorney positions represents the largest increase in decades."

To see more information on the locations of the 311 Assistant United States Attorney positions click here. 

The Justice Department today announced that it reached an agreement with the City of Ville Platte and a separate agreement with the Evangeline Parish Sheriff’s Office (Louisiana) to end the pattern or practice by the Ville Platte Police Department (VPPD) and the Evangeline Parish Sheriff’s Office (EPSO) of conducting arrests in violation of the Fourth Amendment to the United States Constitution. After a thorough investigation, the United States concluded that it had reasonable cause to believe that these agencies had  arrested and held people in jail—sometimes without obtaining a warrant and without probable cause to believe that the detained individuals had committed a crime—in violation of the Fourth Amendment. VPPD and EPSO sometimes used these arrests, called “investigative holds,” as a regular part of their criminal investigations, inducing people to provide information to officers under threat of continued wrongful incarceration. 

Under the agreement, VPPD and EPSO will develop policies and provide training and adequate supervision to officers to ensure the pattern or practice of unlawful seizures does not continue. The agencies also will increase transparency by collecting and reporting data on its Fourth Amendment activities. 

The Department’s investigation into EPSO and VPPD began in April 2015 and concluded in an investigative findings report, released on Dec. 19, 2016. The Department determined through interviews with command staff, detectives, officers, and a cross-section of community members, as well as review of documents including jail logs, arrest records, and more, that the investigative hold practice was routine at EPSO and VPPD.  Both agencies acknowledged that they sometimes used holds to investigate criminal activity for as long as anyone at the agency can remember.  Because these “investigative holds” were conducted without probable cause, they violated the Fourth Amendment’s protection against unreasonable searches and seizures.

“Police officers across the country are called upon to protect and safeguard members of their communities by investigating criminal activity.  Officers are afforded the authority needed to do so, including the power to arrest and detain individuals when there is proper legal justification,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “It is imperative that officers use that authority within the boundaries of the law. Both agencies cooperated fully throughout this matter, and we are eager to continue to work together with the Ville Platte Police Department, the Evangeline Parish Sheriff’s Office, and the local municipalities to help ensure that their officers can protect the public and investigate crime without violating the civil rights of members of the public.”

The Violent Crime Control and Law Enforcement Act of 1994 prohibits state and local governments from engaging in a pattern or practice of misconduct by law enforcement officers that deprives individuals of federally-protected rights.  The Act also allows the Justice Department to remedy such misconduct through civil litigation.  The Special Litigation Section of the Justice Department’s Civil Rights Division in Washington, D.C. enforces the Act.

To read the report of the investigation, please click here. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.

A former fugitive and social security disability lawyer pleaded guilty in federal court today for his role in scheming to defraud the Social Security Administration (SSA) of more than $550 million, retaliating against an informant and fleeing from the United States.

Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Special Agent in Charge Michael McGill of the Social Security Administration-Office of Inspector General’s (SSA-OIG) Philadelphia Field Division; Special Agent in Charge Amy S. Hess of the FBI’s Louisville, Kentucky Field Division; Special Agent in Charge Tracey D. Montaño of the IRS Criminal Investigation (IRS-CI) Nashville, Tennessee Field Office and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Atlanta Regional Office made the announcement.

Eric Christopher Conn, 58, of Pikeville, Kentucky, pleaded guilty before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to one count of conspiracy to defraud the United States, one count of conspiracy to escape and one count of conspiracy to retaliate against an informant.  Sentencing is set for Sept. 7 at 1 p.m. ET. 

“At the Department of Justice, a key mission is protecting the federal treasury on behalf of the American people,” said Attorney General Sessions.  “In this case, the defendant’s scheme fraudulently obligated the Social Security Administration to pay over half a billion dollars in lifetime disability benefits, and then he fled the country.  Thanks to the hard work of the FBI, DOJ lawyers, and our partners with the Social Security Administration, the IRS-CI, HHS-OIG, and our allies in Honduras, this criminal plot did not fully succeed. This case shows yet again that to track down criminals and hold them to account, this Department will cross continents and work with authorities around the globe.”

“The SSA-OIG thanks all of our law enforcement partners for their assistance during the investigation of Mr. Conn’s fraud scheme and subsequent efforts to locate and apprehend Mr. Conn,” said SSA-OIG Special Agent in Charge McGill. “Despite his best efforts to escape justice, Mr. Conn is ultimately being held accountable for defrauding SSA and U.S. taxpayers.”

“Eric Conn preyed upon the sick and vulnerable for his personal gain,” said FBI Special Agent in Charge Hess.  “Rather than face the consequences of his crimes, he chose to flee and attempted to hide from those he had betrayed.  Today’s plea will ensure he is now held accountable.”

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

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

Conn was originally charged in April 2016, along with Daugherty and Adkins, in an 18-count indictment with conspiracy to commit mail and wire fraud and other related offenses in connection with the disability fraud scheme.  Conn subsequently pleaded guilty on March 24, 2017, to a two-count information charging him with theft of government money and paying illegal gratuities, and he was sentenced in absentia on July 14, 2017 to 12 years in prison on those charges.  After his flight from the United States, Conn was charged, along with Wyatt, in September 2017, in a seven-count indictment with conspiracy to escape, escape and other related offenses.  On Dec. 5, 2017, Conn was returned to the United States from Honduras after being apprehended by Honduran authorities.  Conn’s plea today is expected to resolve the outstanding charges against him.  In addition to the 12 years in prison Conn is currently serving, he now faces an additional 15 years in prison.  As part of the plea agreement, Conn agreed to recommend to the Court at sentencing that the Court sentence him to the maximum possible sentence, a 15-year sentence, and run that sentence consecutive to the 12-year sentence previously imposed, for a total of 27 years in prison.

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

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

A federal grand jury has returned an indictment, which was unsealed today, charging a Winston-Salem resident with conspiring to file false tax returns, aiding and assisting in the preparation of false tax returns, and filing a false personal tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Matthew G. T. Martin for the Middle District of North Carolina.

According to the indictment, Claudia Lynette Shivers conspired with others to defraud the government by preparing false tax returns.  Shivers allegedly co-owned and operated two tax return preparation businesses: Fast Tax of Winston-Salem, Inc. in Winston-Salem and Quick Taxes LLC in Greensboro.  The indictment alleges Shivers falsified items on her clients’ tax returns, such as dependents and Schedule A deductions,  in order to fraudulently maximize their refunds and allegedly directed her clients to hand-write false information on tax forms and other documents used in the preparation of their returns.  The indictment further charges Shivers with aiding and assisting in the preparation of false tax returns for several clients, as well as filing a false 2014 tax return for herself on which she is alleged to have failed to report all of her income.

If convicted, Shivers faces a statutory maximum sentence of five years in prison for conspiracy, three years in prison for each count of preparing false tax returns, and three years in prison for the count related to her own tax return.  She also faces a period of supervised release, restitution and monetary penalties.  An indictment is an accusation. A defendant is presumed innocent until proven guilty.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Martin thanked special agents of IRS Criminal Investigation, who conducted the investigation, Tax Division and Trial Attorney Robert J. Boudreau and Criminal Division Chief Clifton T. Barrett of the Middle District of North Carolina, who are prosecuting the case.

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

A Holcomb, Kansas tax return preparer was sentenced yesterday to 21 months in prison for filing a fraudulent income tax return and aiding and assisting in the preparation of fraudulent tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Stephen R. McAllister for the District of Kansas.

According to documents and information provided to the court, Marcelino Almaraz owned Accounting Services, a business that provided tax preparation services.  Almaraz fraudulently sought to obtain refunds for individuals by including false filing statuses such as head of household and adding phony dependents in an effort to trigger and inflate child tax credits.  Almaraz also falsified his own income tax returns for 2010 and 2011 by underreporting his income. 

In addition to the term of imprisonment, Chief U.S. District Court Judge Julie A. Robinson ordered Almaraz to serve one year of supervised release and to pay $397,552 in restitution to the Internal Revenue Service.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney McAllister commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney John T. Mulcahy and Assistant U.S. Attorney Jabari Wamble, who prosecuted the case.

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

A husband and wife pleaded guilty yesterday to two counts of willfully failing to pay their income taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Bryan Schroder for the District of Alaska.

According to court documents, Archie W. Demmert III, 57, and Roseann L. Demmert, 60, both of Klawock, Alaska, held commercial fishing permits and earned six-figure incomes in 2013 and 2014 from commercial fishing, on which they failed to timely pay the required income taxes due.  In addition, from 2006 to 2012, the Demmerts also did not timely pay in full the taxes they owed to the Internal Revenue Service.  As a result, the total tax loss to the IRS arising from their conduct is more than $300,000.

Chief U.S. District Judge Timothy M. Burgess scheduled sentencing for October 4, 2018.  The Demmerts each face a statutory maximum sentence of two years in prison, as well as a period of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Schroder thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Lori Hendrickson and Assistant U.S. Attorney Andrea Steward who are prosecuting the case.

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

Please find the link to the Special Counsel’s Office Statement of Expenditures, October 1, 2017 to March 31, 2018 HERE.  This statement has also been provided to the Senate Committee on the Judiciary and the House Committee on the Judiciary, and the Senate and House Appropriations Committees.

Today’s statement reflects the Special Counsel’s spending within the approved budget.  The Justice Management Division will conduct a similar review every six months. The next Statement of Expenditures will be released after September 30, 2018.

WASHINGTON – Maruyasu Industries Co. Ltd., an automotive parts manufacturer headquartered in the Aichi Prefecture in Japan, pleaded guilty and was sentenced to pay a $12 million criminal fine for its role in a criminal conspiracy to fix prices, rig bids, and allocate customers for automotive steel tubes incorporated into vehicles sold in the United States and elsewhere, the Department of Justice announced today.  

Automotive steel tubes are used in fuel distribution, braking and other automotive systems and are sometimes divided into two categories – chassis tubes and engine parts. Chassis tubes, such as brake and fuel tubes, tend to be located in the body of a vehicle while engine parts, such as fuel injection rails, oil level tubes and oil strainer tubes, are associated with the function of a vehicle’s engine.

Maruyasu pleaded guilty to a charge contained in an Indictment returned by a grand jury on June 15, 2016, in the U.S. District Court for the Southern District of Ohio.  According to the plea agreement, Maruyasu participated in a conspiracy to suppress and eliminate competition by agreeing to fix prices, allocate customers, and rig bids for automotive steel tubes sold to automobile manufacturers in Japan and incorporated into vehicles sold in the United States, in violation of the Sherman Act.

The Indictment also charged Maruyasu’s wholly-owned U.S. subsidiary, Curtis-Maruyasu America Inc., and sales executives Tadao Hirade, Kazunori Kobayashi, Satoru Murai, and Yoshihiro Shigematsu.  Concurrent with the Court’s imposition of the sentence against Maruyasu, the United States moved to dismiss the Indictment as to Curtis-Maruyasu America Inc., Hirade, Kobayashi, and Shigematsu.  The sales executives will be required to cooperate with the government in any future prosecutions related to the charged conspiracy.

“The Antitrust Division’s prosecution of widespread collusion in the auto parts industry has yielded more than $2.9 billion in fines and convictions of 46 corporations and 32 executives,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division. “The Division and its law enforcement partners will continue to protect American consumers and the free markets by aggressively prosecuting antitrust crimes.”

“Bid rigging, price fixing and other schemes hurt consumers and undermine our economic system,” said Special Agent in Charge Amy S. Hess of the FBI’s Louisville Field Office. “We will continue our work with the Department of Justice Antitrust Division to uncover schemes aimed at creating an unfair competitive advantage.”

“This plea represents another victory for U.S. consumers and we greatly appreciate the opportunity to partner with the FBI and Department of Justice Antitrust Division in this endeavor,” said Special Agent in Charge Duane Townsend of the Department of Commerce Office of Inspector General.  

Today’s plea is the result of an investigation conducted by the Antitrust Division’s Chicago Office, the Department of Commerce Office of Inspector General’s Denver Field Office, and the FBI’s Louisville Field Office, Covington Resident Agency, with assistance from the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Southern District of Ohio.  

Anyone with information on market allocation, price fixing, bid rigging, and other anticompetitive conduct 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’s Louisville Field Office at 502-263-6000.

Five men have been charged in New Orleans with crimes related to illegally exporting birds protected under the Convention on International Trade in Endangered Species (CITES) from the United States to Taiwan.  William McGinness, 59, of Buena Park, California; Paul Tallman, 55, of Destreham, Louisiana; Rene Rizal, 62, of La Mirada, California; Wayne Andrews, 46, of Royal Oaks, California and Alex Madriaga, 76, of Buena Park, California; were each indicted in federal court in the eastern District of Louisiana today.

On May 31, 2018, a five-count indictment was returned charging McGinness, Tallman, Rizal, Andrews and Madriaga with conspiracy to smuggle CITES-protected birds from the United States to Taiwan. McGuinness was also charged with smuggling birds to Taiwan and three counts of making and submitting false records under the Lacey Act, and Tallman was charged with smuggling and one count of making and submitting false records under the Lacey Act.

The indictment alleges, among other things, that McGinness, a resident of California, and his co-conspirators created false statements and submitted them to the United States Fish and Wildlife Service (USFWS) in order to illegally export CITES-protected birds from the Port of New Orleans to Taiwan. The shipment included 90 CITES-protected birds, including parrots, macaws, cockatoos and corellas. Several of the birds were in crates that were falsely labeled. The USFWS seized 14 of the birds at the airport in Houston, Texas before they were exported.  

The indictments were announced today by Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division, and Acting Assistant Director Edward Grace of the Office of Law Enforcement for the U.S. Fish and Wildlife Service.

“These indictments demonstrate our commitment, shared with the U.S. Fish and Wildlife Service, to investigate and prosecute those engaged in illegal trade of protected animals,” said Acting Assistant Attorney General Wood. “We will continue to collaborate with our partners at the federal, state and local levels to prosecute wildlife smuggling.”

"Today’s indictments were the result of a complex investigation into the wildlife trafficking of protected birds,” said Acting Assistant Director Grace. “Wildlife trafficking is a serious crime that is detrimental to species around the world. I am very proud of our special agents and wildlife inspectors who helped bring these defendants to justice."

The United States and approximately 182 other countries are signatories to CITES, which provides a mechanism for regulating international trade in species whose continued survival is threatened by such trade. Species are listed on “appendices,” based on the level of protection necessary to protect the species.  

The case was investigated by the USFWS and the Justice Department’s Environmental Crimes Section. The government is represented by Environmental Crimes Section Trial Attorney Mary Dee Carraway.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant RUBY J. NGIRMEKUR, age 38, was sentenced in District Court today by Designated Judge Ramona V. Manglona to 33 months imprisonment and three years of supervised release for conspiracy to commit financial institution fraud. The Court also ordered her to pay $13,090 in restitution and a $100 assessment fee, and to perform 50 hours of community service.

          From May 2014 to July 2014, NGIRMEKUR and others participated in an ATM debit-fraud and check-fraud scheme involving Bank of Guam (BOG) funds and checks drawn from other financial institutions. As part of the conspiracy, the defendant deposited fraudulent checks into third party BOG accounts via ATM transactions, and then withdrew funds based upon those checks. For the entire period of the conspiracy, the defendant and her co-conspirators attempted to obtain $95,100 from BOG by depositing over 120 fraudulent checks drawn from closed and nonsufficient funds accounts at Wells Fargo Bank, N.A., Bank of Hawaii, and Navy Federal Credit Union.

          This case was investigated by the Federal Bureau of Investigation and Guam Police Department, and prosecuted by Marivic P. David, Assistant United States Attorney for the District of Guam.

A resident of Tangipahoa Parish, Louisiana was sentenced today to 24 months in prison for her involvement in a stolen identity tax refund fraud scheme, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans of the Eastern District of Louisiana.

Jackie Chaney, also known as Jackie Scott, pleaded guilty on Dec. 28, 2016 to one count of conspiracy to defraud the United States and to commit theft of public money, wire fraud and aggravated identity theft.

According to court documents, members of the conspiracy obtained the names and Social Security numbers of individuals for use in filing false tax returns. Chaney and her co-conspirators used this stolen information to prepare false tax returns seeking bogus refunds from the Internal Revenue Service (“IRS”).  The IRS issued the refunds in the form of checks or on to prepaid debit cards and Chaney further conspired with others to convert the proceeds into cash.

In addition to the term of imprisonment, U.S. District Court Judge Susie Morgan ordered Chaney to serve two years of supervised release and to pay restitution in the amount of $809,605.00.

Chaney’s co-conspirator, Alicia Washington, previously plead guilty in Feb. 2017 and was sentenced earlier this month to 42 months in prison.

Principal Deputy Assistant Attorney Zuckerman and U.S. Attorney Evans commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Hayden Brockett and Tax Division Trial Attorney Lauren Castaldi, who are prosecuting the case.

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

The owner of general contracting business pleaded guilty today to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Duane A. Evans, for the Eastern District of Louisiana.

According to court documents, Wade Ybarzabal, of Mandeville, Louisiana, owned a general contracting business, Ybarzabal Contractors LLC.  On his 2012 tax return, Ybarzabal underreported his business’s gross receipts by more than $475,000, resulting in an additional tax liability of more than $160,000.  Ybarzabal also underreported his business’ gross receipts on his 2013 and 2014 tax returns.  The total tax loss resulting from Ybarzabal’s fraudulent conduct for is less than $250,000.

Sentencing is scheduled for August 29, 2018.  Ybarzabal faces a statutory maximum sentence of three years in prison.  He also faces a term of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Duane A. Evans commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Edward J. Rivera and Tax Division Trial Attorney Grace E. Albinson, who are prosecuting the case.

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

The former chief executive officer of FutureNet Group Inc., an information technology company, pleaded guilty today for his role in orchestrating a scheme to bribe an official from the City of Detroit to obtain benefits for FutureNet, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.

Parimal D. Mehta, 54, of Northville, Michigan, pleaded guilty to one count of federal program bribery before U.S. District Judge Robert H. Cleland of the Eastern District of Michigan.  Sentencing is scheduled for Sept. 27. 

According to admissions made in connection with his plea, from 2009 through August 2016, Mehta hand-delivered more than $6,500 to Charles L. Dodd, the former Director of Detroit’s Office of Departmental Technology Services, including two cash bribes paid in the restroom of a Detroit-area restaurant in 2016.  Dodd previously pleaded guilty to bribery on Sept. 27, 2016.

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

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

A federal court enjoined Michel G. Blanchet of Los Angeles, California, from preparing, processing, and distributing adulterated fish or fishery products without first taking required remedial action, the Department of Justice announced today.

The injunction ordered by the U.S. District Court for the Central District of California requires Blanchet to implement various consumer safety measures before resuming the preparation, processing or distribution of fish or fishery products.  The injunction stems from a complaint the Department filed on Oct. 3, 2017, at the request of the U.S. Food and Drug Administration (FDA).

Blanchet was the owner and President of a business in Los Angeles, California, that processed and distributed fish or fishery products, including salmon, trout, and sturgeon.

Blanchet agreed to settle the litigation and be bound by a consent decree of permanent injunction.  As part of the settlement, Blanchet represented that he is not engaged in receiving, preparing, processing, holding or distributing fish or fishery products.  Under the permanent injunction, if Blanchet intends to resume such activity, he must notify FDA in writing in advance, comply with specific remedial measures set forth in the injunction, and allow his facility to be subject to FDA inspection.

“The Department of Justice is committed to ensuring that processors and distributors of seafood products comply with laws designed to protect consumers,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “The Department of Justice continues to work with the FDA to ensure that consumers are protected from potentially unsafe food.”  

According to the complaint, FDA inspected Blanchet’s business on numerous occasions, including two times in 2016.  The complaint alleged that Blanchet failed to comply with federal regulations by failing to adequately control the risk of Listeria monocytogenes (L. mono) and Clostridium botulinum (C bot.) toxin formation in vacuum-packed fish or fishery products.  The regulations require every fish and fishery product processor to conduct, or have conducted for it, a hazard analysis to determine whether there are food safety hazards that are reasonably likely to occur during the processing of each kind of fish or fishery product that it processes.

According to the complaint, FDA’s analysis of environmental samples collected during its January-February 2016 inspection revealed the presence of L. mono contamination in multiple locations throughout Blanchet’s business.  The complaint also alleged that FDA’s analysis of environmental samples collected during its subsequent inspection in July-August 2016 also revealed the presence of L. mono contamination in multiple locations throughout the business. 

The government is represented by Trial Attorney Monica Groat of the Civil Division’s Consumer Protection Branch, with the assistance of Associate General Counsel for Enforcement Roselle Oberstein of the Department of Health and Human Services’ Office of General Counsel’s Food and Drug Division.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.