District Not Recorded

WASHINGTON – The Department of Justice announced today that it is requiring Bayer AG to divest businesses and assets collectively worth approximately $9 billion in order to proceed with its proposed $66 billion acquisition of Monsanto Company.  The proposed divestiture to BASF, an experienced chemical company with a substantial crop protection business, will fully resolve all horizontal and vertical competition concerns.  As a result, American farmers and consumers will continue to benefit from competition in this industry.  

“This comprehensive structural solution to significant horizontal and vertical competition concerns—the largest negotiated merger divestiture ever required by the United States—preserves competition in the sale of these critical agricultural products and protects American farmers and consumers,” said Assistant Attorney General Makan Delrahim of the Antitrust Division.  “We commend the parties for working with the Antitrust Division to resolve our concerns on behalf of American consumers.” 

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

Bayer, based in Leverkusen, Germany, and Monsanto, headquartered in St. Louis, Missouri, are two of the largest agricultural companies in the world.  They compete to provide farmers with a broad range of seed and crop protection products.  Bayer and Monsanto also have been leaders in developing technologies that have allowed farmers to increase significantly crop yields and improve efficiency.  Without the agreed-to divestitures, the proposed merger would likely result in higher prices, lower quality, and fewer choices across a wide array of seed and crop protection products.  The merger also threatened to stifle the innovation in agricultural technologies that has delivered significant benefits to American farmers and consumers.

Under the terms of the proposed settlement, Bayer must divest those Bayer businesses that compete with Monsanto today.  These include Bayer’s cotton, canola, soybean, and vegetable seed businesses, as well as Bayer’s Liberty herbicide business, a key competitor of Monsanto’s well-known Roundup herbicide.  

The settlement also requires structural divestitures to remedy the competitive harm that would result from the vertical integration of certain significant Bayer seed treatment businesses with Monsanto’s leading seed businesses.  Additionally, because Bayer and Monsanto currently compete to develop new products and services, the settlement requires the divestiture of certain intellectual property and research capabilities, including “pipeline” R&D projects.  Finally, in order to fully prevent competitive harm from the merger, the settlement requires the divestiture of additional complementary assets that are needed to ensure that BASF has the same innovation incentives, capabilities and scale that Bayer would have as an independent competitor including, most notably, Bayer’s nascent “digital agriculture” business. 

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

The Department expressed thanks to its enforcement partners around the world, especially its counterparts at the European Commission, the Canadian Competition Bureau, and the Administrative Council for Economic Defense (CADE) of Brazil, for their close and constructive collaboration on this matter.  

As required by the Tunney Act, the proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register.  Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Kathleen S. O’Neill, Chief, Transportation, Energy & Agriculture Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 8000, Washington, D.C.  20530.  At the conclusion of the 60-day comment period, the court may enter the final judgment upon a finding that it serves the public interest.

NOTE: The original version of this release inadvertently did not include the term 'negotiated' in the title of the release or the Assistant Attorney General's quote. 

A Department of Justice official released the following statement at the conclusion of Attorney General Jeff Sessions ' meetings with Croatian Prime Minister Andrej Plenković and President Kolinda Grabar-Kitarović:

"Attorney General Sessions today met with Croatian Prime Minister Andrej Plenković and President Kolinda Grabar-Kitarović. The Attorney General thanked President Grabar-Kitarović for Croatia's participation in NATO missions and logistical support in the fight against ISIS. Attorney General Sessions also committed to building the U.S.-Croatia relationship, including through increased law enforcement cooperation. On other defense issues, Attorney General Sessions encouraged President Grabar-Kitarović to announce a credible plan to meet the full intent of the Wales Pledge by 2024, which includes 2 percent of GDP spending on defense and 20 percent of defense spending on major new equipment. The Attorney General expressed the Trump Administration’s support for Croatia’s intended completion of the Croatian Liquefied Natural Gas terminal off the Adriatic Coast, which the Attorney General urged the Prime Minister and President to push forward on, in order to increase regional energy security."

A federal grand jury sitting in the Western District of Virginia returned an indictment today charging a Collinsville, Virginia pharmacist with failing to account for and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Thomas T. Cullen for the Western District of Virginia.

According to the indictment, Jerry R. Harper, Jr., owned and operated Family Discount Pharmacy, Inc. (FDP) in Stanleytown, Virginia, with multiple locations in Stuart, Rocky Mount, Chatham, and Brosville, Virginia.  As owner of FDP, Harper was allegedly responsible for collecting and paying over FDP’s employment taxes.  The indictment charges that during 2011 to 2014, FDP accrued employment tax liabilities of more than $1.2 million and that Harper withheld those taxes from FDP employees’ wages.  He then allegedly failed to fully pay over the amounts withheld to the Internal Revenue Service (IRS).

Instead of providing the employment taxes to the IRS, Harper allegedly caused FDP to pay his personal expenses, including investments in the stock market, payments for his son’s pharmacy school tuition, purchases of real property in Virginia and North Carolina, and purchases of automobiles.  The indictment further alleges that in over 15 years Harper only filed one employment tax return with the IRS.   

If convicted, Harper faces a statutory maximum of five years in prison on each charge.  In addition, he faces 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 U.S. Attorney Cullen commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorney Daniel McGraw and Assistant U.S. Attorney Charlene Day, who are prosecuting the case.

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

A Department of Justice official released the following statement at the conclusion of Attorney General Jeff Sessions' meetings with Croatian Interior Minister Davor Božinović and Justice Minister Dražen Bošnjaković: "Attorney General Sessions had productive meetings with Interior Minister Božinović and Justice Minister Bošnjaković, and the Attorney General reiterated his commitment to build on the strong U.S.-Croatia relationship. The Attorney General recognized Croatia's support for the regional Rule of Law training programs in the Western Balkans, for which the ministers have provided more than five years of expertise. Attorney General Sessions also thanked the ministers for their continued collaboration with the Justice Department's Office of Overseas Prosecutorial Development Assistance and Training (OPDAT) and International Criminal Investigative Training Assistance Program (ICITAP), programs that help police, prosecutors, and judges in the region fight corruption and transnational organized crime. Finally, Attorney General Sessions expressed his support for an updated bilateral extradition treaty to enhance cooperation and reflect the increasingly transnational nature of crime."

Please find Attorney General Jeff Sessions’ remarks from the U.S.-Croatia press availability here.

A resident of Queens, New York, pleaded guilty today to failing to collect and pay over employment tax, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents, Kae Wook Lee was the sole owner and chief executive officer of Mona Lisa 7 Corporation, through which he operated a karaoke bar in the Flushing neighborhood of Queens.  Between 2011 and 2013, Lee diverted part of his karaoke business’s receipts to bank accounts in the names of shell corporations he created.  Lee then withdrew funds from those bank accounts to pay employees’ wages in cash without collecting or paying over employment taxes to the Internal Revenue Service (IRS).  Lee concealed the cash payroll from his accountant and signed and filed false tax returns that underreported employee wages.  The tax loss to the IRS caused by the defendant’s conduct was $612,500.

U.S. District Judge I. Leo Glasser scheduled sentencing for September 6, 2018.  Lee faces a statutory maximum sentence of five years in prison, as well as a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark Kotila and Sean Green, who are prosecuting the case.

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

The Department of Justice today honored Detective George R. Higgs of the Charles County Sheriff’s Office in La Plata, Maryland, for his investigation that resulted in the arrest of a sexual predator and the identification of 42 adolescent victims.

Acting Associate Attorney General Jesse Panuccio presented Higgs with the Missing Children’s Child Protection Award during the Justice Department’s National Missing Children’s Day ceremony. The award recognizes the extraordinary efforts of law enforcement officers who make a significant investigative or program contribution to protect children from abuse or victimization.

“Investigative and preventive law enforcement efforts are critical in the fight to stop child exploitation,” said Acting Assistant Attorney General Jesse Panuccio. “The Justice Department proudly commends Detective Higgs for his dedication to preventing child victimization and bringing this sex offender to justice.”

Higgs began to investigate in November 2016 after a 16-year-old student complained about receiving sexually suggestive text messages. Higgs determined the messages were coming from an employee for the Charles County Board of Education. A search of the suspect’s home led to the discovery of computers and cell phones containing photos and videos of the suspect sexually assaulting local children in both his residence and at local schools. Interviews with students identified 42 victims—including the original complainant—between the ages of 13 and 17. Higgs’ work with prosecutors resulted in 219 charges of sexual assault, production of child pornography and other charges against the suspect, who was sentenced in federal court in March and in the Circuit Court of Charles County, Maryland, in April.

In addition to Higgs, the Department also recognized other law enforcement officers for their investigative efforts in sexual exploitation of children cases and a private citizen who intervened to rescue an abducted baby. Panuccio also recognized Eden Hoffmann, a fifth grader at Huron Elementary School in Clinton Township, Michigan, as the 19th winner of the National Missing Children’s Day poster contest.    

Additional information about National Missing Children’s Day is available online. 

The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

The Department of Justice today honored Detective John Witherspoon of the Montgomery County Police Department in Rockville, Maryland, for his investigation into the disappearance of a 15-year-old Gaithersburg girl and his support of Fairfax County, Virginia, police in their efforts to identify and arrest 10 gang members who were charged in the girl’s murder.

Acting Associate Attorney General Jesse Panuccio presented Witherspoon with the Missing Children’s Law Enforcement Award during the Justice Department’s National Missing Children’s Day ceremony. This award recognizes law enforcement officers’ efforts for significant investigative or program contributions to child safety.

Additionally, Witherspoon successfully recovered 166 missing children last year.

“Detective Witherspoon demonstrated unusual tenacity in tracking down the vicious murderers of a teenage girl, and also showed extraordinary compassion in supporting her family through the investigation,” said Acting Assistant Attorney General Jesse Panuccio. “The Department commends Detective Witherspoon for his remarkable combination of personal and professional commitment in this case.”

For eight weeks, Witherspoon searched throughout the Washington metropolitan region for sightings of the missing girl. He also combed social media sites and accounts and interviewed the girl’s friends and family members. The remains of the girl were found near an industrial area in Fairfax County, and the medical examiner ruled the case a homicide. Witherspoon worked with Fairfax County police to locate 10 members of a local gang who played a role in the girl’s murder. He then helped the victim’s mother arrange a community memorial service, and later coordinated her witness relocation after she received death threats from gang members.

In addition to Witherspoon, the Department also honored the efforts of law enforcement officers in other jurisdictions who investigated crimes against children and arrested the suspects and a private citizen who rescued a missing and abducted child. Panuccio also recognized Eden Hoffmann, a fifth grader at Huron Elementary School in Clinton Township, Michigan, as the 19th winner of the National Missing Children’s Day poster contest.    

Additional information about National Missing Children’s Day is available online. 

The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

The Department of Justice today honored Colin Blevin, a Santa Clara, California, resident, for his actions that led to the recovery of an abducted one-year-old girl and the apprehension of the child’s kidnapper.

Acting Associate Attorney General Jesse Panuccio presented Blevin with the Missing Children’s Citizen Award during the Justice Department’s National Missing Children’s Day ceremony. This award recognizes private citizens for extraordinary acts that lead to the safe recovery of missing or abducted children.

Blevin received his award for preventing a suspect from escaping with a one-year-old girl in a stolen car and keeping the child safe until police arrived. The offender was sentenced to more than five years in prison for felony child abuse and theft of a vehicle.

“Blevin’s quick actions epitomize courage, selflessness, and vigilance, and brought an innocent child home to safety,” said Acting Assistant Attorney General Jesse Panuccio. “The Department of Justice commends Blevin for making his community safer, through his successful rescue of the child and assist to law enforcement.”

In addition to Blevin, the Department also honored several law enforcement officers for their investigative efforts in sexual exploitation cases involving children and youth. Panuccio also recognized Eden Hoffmann, a fifth grader at Huron Elementary School in Clinton Township, Michigan, as the 19th winner of the National Missing Children’s Day poster contest.    

Additional information about National Missing Children’s Day is available online. 

The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

Department Honors Law Enforcement Officers, Citizen, for Efforts to Rescue Missing and Exploited Children; Poster Contest Winner Announced

The Department of Justice today recognized the Maryland Internet Crimes Against Children task force, Detective George R. Higgs of the Charles County Sheriff’s Office in La Plata, Maryland, Detective John Witherspoon of the Montgomery County Police Department in Rockville, Maryland, and Colin Blevin, a private citizen from Santa Clara, California, for their efforts to help children.

Acting Associate Attorney General Jesse Panuccio presented the awards during the Department’s National Missing Children’s Day ceremony. The annual awards ceremony is hosted by the Office of Juvenile Justice and Delinquency Prevention in the Office of Justice Programs (OJP).

“The exceptional individuals we recognize today remind us of our responsibility to be vigilant about the safety of our children and to hold accountable those who seek to harm them,” said Acting Assistant Attorney General Jesse Panuccio. “Because of the diligence, courageousness, and selflessness of the awardees, as well as their commitment to protect the most vulnerable among us, children all over the country are safer in their communities. The Department of Justice is proud to honor these heroes, and I am proud to stand with them today.”

The ceremony included recognition of Eden Hoffmann, a fifth grader at Huron Elementary School in Clinton Township, Michigan, whose poster illustrating the theme, “Bringing Our Missing Children Home,” was chosen as this year’s National Missing Children’s Day poster contest winner.    

Acting Associate Attorney General Panuccio presented the following awards:

Attorney General’s Special Commendation: This commendation recognizes the extraordinary efforts of an Internet Crimes Against Children task force or affiliate agency for making significant investigative or program contributions.

Recipients: The Maryland Internet Crimes Against Children task force for their investigation resulting in the arrest of a sexual predator who assaulted at least 26 victims, some dating back to the 1970s, and recorded the sexual abuse. The suspect was charged with multiple sex offenses involving the abuse of a child.

Missing Children’s Law Enforcement Award: This award recognizes the extraordinary efforts of a law enforcement officer who made a significant investigative or program contribution to the safety of children. 

Recipient: Detective John Witherspoon of the Montgomery County Police Department in Rockville, Maryland, who tirelessly investigated a runaway child case that ended with the discovery of the child’s murder. Witherspoon worked with local police in another jurisdiction to identify and arrest 10 gang members for their role in the murder. He then coordinated witness relocation for the victim’s mother after she received death threats from gang members.

Missing Children’s Child Protection Award: This award honors the extraordinary efforts of a law enforcement officer who made a significant investigative or program contribution on behalf of missing, abused or victimized children. 

Recipient: Detective George R. Higgs of the Charles County Sheriff’s Office in La Plata, Maryland, who led an investigation that resulted in the arrest of a suspected sexual predator and the identification of 42 adolescent victims. He also helped prosecutors bring three indictments against the suspect, which led to 219 charges of sexual assault, production of child pornography, and other charges.

Missing Children’s Citizen Award: This award honors the extraordinary efforts of private citizens for their unselfish acts to safely recover missing or abducted children.  

Recipient: Colin Blevin, a Santa Clara, California, resident, for his actions to recover an abducted infant and help police apprehend the child’s kidnapper. Blevin prevented the suspect from escaping with a one-year-old child in a stolen car and protected the child until police arrived. The offender was sentenced to more than five years in prison for felony child abuse and vehicle theft.

President Ronald Reagan proclaimed May 25, 1983, the first National Missing Children’s Day in memory of Etan Patz, a six-year-old boy who disappeared from a New York City street corner on May 25, 1979.  Missing Children’s Day honors his memory and the memories of children still missing. Although Etan’s killer was convicted in February 2017 for the 1979 murder, his case remains active with the National Center for Missing & Exploited Children because his body was never found.

In 2017, there were 464,324 missing children entries in the FBI’s National Crime Information Center. Additional information about National Missing Children’s Day is available online. 

The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

The Department of Justice today recognized the Maryland Internet Crimes Against Children task force for its investigation and subsequent arrest of a suspected sexual predator who abused local children since the 1970s and created child pornography from those encounters.

Acting Associate Attorney General Jesse Panuccio presented the Attorney General’s Special Commendation to representatives of the task force during the Department’s National Missing Children’s Day ceremony. The special commendation recognizes Internet Crimes Against Children task forces or affiliate agencies for making significant investigative or program contributions.

“The vigilance exhibited by this task force exemplifies the positive results that cooperation among federal, state, and local authorities can have in bringing perpetrators of these heinous crimes to justice,” said Acting Assistant Attorney General Jesse Panuccio. “The Department applauds their efforts and stands with them as we continue working to improve public safety for America’s children.”

The task force’s investigation also led to the identification of 26 of the suspect’s victims, some of whom were sexually abused as far back as the 1970s. The suspect was charged with multiple counts of sex offenses involving the abuse of a child. The investigation and subsequent warrant on the suspect’s residence was coordinated between the Maryland State Police, the Talbot County, Maryland, Sheriff’s Office and Homeland Security Investigations.

The Department also recognized two law enforcement officers for their investigations of sexual predators who sexually assaulted local children and youth and a private citizen who intervened to rescue an abducted baby. Panuccio also recognized Eden Hoffmann, a fifth grader at Huron Elementary School in Clinton Township, Michigan, as the 19th winner of the National Missing Children’s Day poster contest.    

Additional information about National Missing Children’s Day is available online.

The Office of Justice Programs, headed by Principal Deputy Assistant Attorney General Alan R. Hanson, provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice and assist victims. OJP has six bureaus and offices: the Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime; and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.

The Justice Department today announced an effort to disrupt a global botnet of hundreds of thousands of infected home and office (SOHO) routers and other networked devices under the control of a group of actors known as the “Sofacy Group” (also known as “apt28,” “sandworm,” “x-agent,” “pawn storm,” “fancy bear” and “sednit”).  The group, which has been operating since at least in or about 2007, targets government, military, security organizations, and other targets of perceived intelligence value.

Assistant Attorney General for National Security John C. Demers, U.S. Attorney Scott W. Brady for the Western District of Pennsylvania, Assistant Director Scott Smith for the FBI’s Cyber Division, FBI Special Agent in Charge Robert Johnson of the Pittsburgh Division and FBI Special Agent in Charge David J. LeValley of the Atlanta Division made the announcement.

“The Department of Justice is committed to disrupting, not just watching, national security cyber threats using every tool at our disposal, and today’s effort is another example of our commitment to do that,” said Assistant Attorney General Demers.  “This operation is the first step in the disruption of a botnet that provides the Sofacy actors with an array of capabilities that could be used for a variety of malicious purposes, including intelligence gathering, theft of valuable information, destructive or disruptive attacks, and the misattribution of such activities.”

“The United States Attorney’s Office will continue to aggressively fight against threats to our national security by criminals, no matter who they work for” said U.S. Attorney Brady.  “This court-ordered seizure will assist in the identification of victim devices and disrupts the ability of these hackers to steal personal and other sensitive information and carry out disruptive cyber attacks.  We will be relentless in protecting the people of Western Pennsylvania - from international corporations to local businesses to the elderly - from these threats.”

“Today's announcement highlights the FBI's ability to take swift action in the fight against cybercrime and our commitment to protecting the American people and their devices,” said Assistant Director Scott Smith. “By seizing a domain used by malicious cyber actors in their botnet campaign, the FBI has taken a critical step in minimizing the impact of the malware attack. While this is an important first step, the FBI's work is not done. The FBI, along with our domestic and international partners, will continue our efforts to identify and expose those responsible for this wave of malware.”

“The FBI will not allow malicious cyber actors, regardless of whether they are state-sponsored, to operate freely,” said FBI Special Agent in Charge Bob Johnson. “These hackers are exploiting vulnerabilities and putting every American’s privacy and network security at risk. Although there is still much to be learned about how this particular threat initially compromises infected routers and other devices, we encourage citizens and businesses to keep their network equipment updated and to change default passwords.”

“This action by the FBI, DOJ, and our partners should send a clear message to our adversaries that the U.S. Government will take action to mitigate the threats posed by them and to protect our citizens and our allies even when the possibility of arrest and prosecution may not be readily available,” said FBI Special Agent in Charge David J. LeValley. “As our adversaries’ technical capabilities evolve, the FBI and its partners will continue to rise to the challenge, placing themselves between the adversaries and their intended victims.”

The botnet, referred to by the FBI and cyber security researchers as “VPNFilter,” targets SOHO routers and network-access storage (NAS) devices, which are hardware devices made up of several hard drives used to store data in a single location that can be accessed by multiple users.  The VPNFilter botnet uses several stages of malware. Although the second stage of malware, which has the malicious capabilities described above, can be cleared from a device by rebooting it, the first stage of malware persists through a reboot, making it difficult to prevent reinfection by the second stage.

In order to identify infected devices and facilitate their remediation, the U.S. Attorney’s Office for the Western District of Pennsylvania applied for and obtained court orders, authorizing the FBI to seize a domain that is part of the malware’s command-and-control infrastructure.  This will redirect attempts by stage one of the malware to reinfect the device to an FBI-controlled server, which will capture the Internet Protocol (IP) address of infected devices, pursuant to legal process. A non-profit partner organization, The Shadowserver Foundation, will disseminate the IP addresses to those who can assist with remediating the VPNFilter botnet, including foreign CERTs and internet service providers (ISPs).  

Owners of SOHO and NAS devices that may be infected should reboot their devices as soon as possible,  temporarily eliminating the second stage malware and causing the first stage malware on their device to call out for instructions.  Although devices will remain vulnerable to reinfection with the second stage malware while connected to the Internet, these efforts maximize opportunities to identify and remediate the infection worldwide in the time available before Sofacy actors learn of the vulnerability in their command-and-control infrastructure.

The FBI and the Department of Homeland Security have also jointly notified trusted ISPs.  The Department and the FBI also encourage users and administrators to review the Cisco blog post on VPNFilter, available HERE, for recommendations and to ensure that their devices are updated with the latest patches.

The efforts to disrupt the VPNFilter botnet were led by the FBI’s Pittsburgh and Atlanta Offices; FBI Cyber Division;  Trial Attorney Matthew Chang of the National Security Division’s Counterintelligence and Export Control Section; and Assistant U.S. Attorneys Charles Eberle and Soo C. Song of the Western District Pennsylvania.  Critical assistance was also provided by Richard Green of the Criminal Division’s Computer Crime and Intellectual Property Section and The Shadowserver Foundation.


Note: The documents filed by the Government as well as the court orders entered in this case are available as attachments below.

On May 22 and 23, 2018, the EU-U.S. Ministerial Meeting on Justice and Home Affairs was hosted by the Bulgarian Presidency of the EU Council in Sofia, Bulgaria. The meeting reaffirmed the long-standing, fruitful cooperation between the United States of America and the European Union in the areas of justice and home affairs, as well as the importance of jointly addressing common security threats.

The United States was represented by the U.S. Attorney General, Jeff Sessions, and the Acting Deputy Secretary for Homeland Security, Claire Grady.

The European Union, hosting the meeting, was represented by the Commissioner for Migration, Home Affairs and Citizenship Dimitris Avramopoulos, the Commissioner for Justice, Consumers and Gender Equality Věra Jourová, the Commissioner for the Security Union Julian King, as well as Bulgarian Minister of Interior Valentin Radev and Minister of Justice Tsetska Tsacheva, together with Austrian Federal Minister for the Interior Herbert Kickl and Federal Minister for Constitutional Affairs, Reforms, Deregulation and Justice Josef Moser, on behalf of the current and incoming Presidencies of the Council of the European Union.

The European Union and the United States discussed their shared efforts to combat terrorism, focusing on effective information sharing, preventing radicalization, use of the internet for terrorist purposes, and vigilance with respect to aviation security, and chemical, biological, radiological and nuclear threats, and explosives, especially in relation to the evolving chemical threats to aviation and in public spaces. With regard to EU-U.S. information sharing on Passenger Name Records (PNR), participants of the meeting emphasized the importance of such sharing, and noted impending developments in the separate EU-Canada PNR discussions. The participants agreed to continue the discussion of PNR, at the next EU-U.S. Ministerial, which will take place in Washington, D.C., in the second half of 2018.

Participants also discussed security and law enforcement cooperation in cyber-space, affirming the importance of allowing swift access to electronic evidence by law enforcement and judicial authorities, while also protecting privacy and civil liberties. Similarly, they stressed the need to maintain a safe, open, and secure cyberspace for the promotion of economic and social development, and exchanged views on how to best address this growing challenge.

The European Union and the United States also exchanged information on developments in the area of migration, border management, and their respective visa policies.  The European Union provided an update on migration trends in Europe and ongoing initiatives to enhance the management of its external borders; the European Union and the United States took stock of the continuing progress by the European Union and the United States, including that of the five concerned EU Member States, towards meeting the statutory requirements of the Visa Waiver Program, in order to be considered for designation. Both sides also acknowledged the need for strengthening operational cooperation to effectively prevent and eradicate migrant smuggling and trafficking in human beings, and also discussed the importance of secure and lawful immigration systems.

Finally, the United States and European Union discussed the importance of ensuring swift exchange of financial information and improving the effectiveness of financial investigations. The European Union and the United States discussed the latest developments in these areas and shared best practices in an effort to step up their common fight against anti-money laundering and terrorism financing.

Underlining the progress made in these vital areas of common interest, and re-emphasizing the fact that common solutions are necessary in order to address global security threats, the European Union and the United States committed to meet again in the second half of 2018 in Washington, D.C.

Following a two-week trial, a federal jury in Denver, Colorado, has convicted a California man of multiple charges for his role in an investment scheme in which he falsely told investors that he was a billionaire who could access certain financing, including hundreds of millions in cash in an overseas bank account, in exchange for up-front fees.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Inspector in Charge Craig Goldberg of the U.S. Postal Inspection Service’s Denver Division and Acting Inspector in Charge Bill Hedrick of the U.S. Postal Inspection Service’s Chicago Division, made the announcement.

Kenneth Brewington, 55, of Corona, California, was convicted of one count of conspiracy to commit mail and wire fraud, one count of mail fraud, five counts of wire fraud, one count of conspiracy to commit money laundering, one count of laundering monetary instruments, and two counts of engaging in monetary transactions in property derived from specified unlawful activity.

“Kenneth Brewington and his coconspirators deceived investors by falsely claiming to have hundreds of millions of dollars in cash in an overseas bank account as part of a criminal scheme to steal the investors’ hard earned money,” said Acting Assistant Attorney General Cronan.  “The Department of Justice is dedicated to working with our law enforcement partners to identify and prosecute people who are involved in fraudulent investment schemes, and to pursuing justice for the victims of those crimes.”

“Fraudsters believe they can maintain this lifestyle on the backs of unsuspecting victims, but this arrest should be a warning to all that law enforcement will not stand for these schemes,” said Acting Inspector in Charge Nicole Davis of U.S. Postal Inspection Service’s Criminal Investigations Group.  “Postal Inspectors have made it our mission to protect our customers from exploitation and fraud and we will continue to actively investigate these schemes and pursue convictions of these fraudsters.”

According to evidence presented by the government at trial, beginning in approximately 2009, the defendant told victims that he required millions of dollars in supposed fees in order to access his extraordinary wealth abroad, which in turn could be used for financing.  During the scheme, the defendant and his coconspirators sold promissory notes to victims, including through a financial-services marketing company based in Denver called Compass Financial Solutions (CFS).  The defendant and his coconspirators falsely represented to their victims that their money would be used to pay for, among other things, bank transaction fees and tax penalties to the IRS.  To conceal the nature of their scheme, the defendant and his coconspirators told victims to wire their funds into an attorney-trust account.  The funds from that account, however, were then sent to the defendant and his coconspirators and spent on, among other things, repayments to other investors and personal expenses.  The evidence presented at trial showed that the defendant was not, in fact, wealthy and instead struggling to pay his personal debts.  The defendant’s victims lost over $3 million to his fraud scheme.

The defendant’s sentencing is set for Aug. 17, before U.S. District Court Judge Philip A. Brimmer, who presided over the trial of the case.

The former corporate counsel for CFS, William E. Dawn, 80, of Denver, Colorado, and the former CEO of CFS, Brian G. Elrod, 61, of Lakewood, Colorado, previously pleaded guilty for their roles in the scheme.  Sentencing hearings are scheduled for June 19 and June 20, respectively. 

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

A grand jury sitting in the Eastern District of Michigan returned an indictment yesterday charging a former healthcare consultant with wire fraud, mail fraud, corruptly endeavoring to obstruct the internal revenue laws, and tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to the indictment, from 2011 through August 2014, Sonja Emery falsely represented her professional status, educational background, and work experience to secure and maintain highly paid consulting positions in the health-care industry. Emery allegedly falsely represented to her employers that she was a registered nurse, had worked in health-care management positions, and had various degrees, including a bachelor of science in nursing, master’s degrees in health administration, and a doctor of philosophy degree.  The indictment further alleges that, from 2011 to 2014, Emery earned six-figure salaries, failed to file timely tax returns and failed to pay the substantial income tax due and owing on her income.

If convicted, Emery faces a statutory maximum sentence of 20 years in prison for each mail and wire fraud count, five years in prison for each tax evasion count, and three years in prison for corruptly endeavoring to obstruct the Internal Revenue Service. Emery also faces 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 commended special agents of IRS Criminal Investigation and Treasury Inspector General for Tax Administration, who conducted the investigation, and Trial Attorneys Jeff McLellan and Jack Morgan of the Tax Division, who are prosecuting the case.

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

A Department of Justice official released the following statement at the conclusion of Attorney General Jeff Sessions' meeting with Bulgarian Prime Minister Boyko Borissov:

"On Tuesday, May 22, 2018, Attorney General Jeff Sessions met with Bulgarian Prime Minister Boyko Borissov at the Prime Minister's office at the Council of Ministers in Sofia, Bulgaria. The dialogue focused on the nations' shared commitment to fighting international terrorism, cybersecurity, drug trafficking, and human trafficking. The Attorney General and Prime Minister also discussed other areas of law enforcement cooperation between the two countries, including extradition and mutual legal assistance.”

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that on Friday, May 18, 2018, Chief Judge Ramona V. Manglona sentenced defendant SUN SEN for the crime of Harboring Illegal Aliens, in violation of Title 8, United States Code, Section 1324(a)(1), for his role in operating an illegal birth-tourism business on Saipan.  As part of his operation, the defendant illegally employed dozens of caretakers, or “nannies”, all Chinese nationals who were in the CNMI without work authorization. The judge sentenced SUN to one year and one day of imprisonment, a $1,000 fine, and ordered that the defendant forfeit $33,960 in criminally- derived proceeds to the United States.

          United States Attorney Anderson made the following statement: “The Department of Justice will not tolerate abuse of our immigration laws and regulations, particularly by those like Mr. Sun who ran a large and lucrative underground birth-tourism operation. Such businesses jeopardize the island’s legitimate tourist industry, while inviting practices that risk the health of both mother and child. Federal law enforcement will aggressively investigate and prosecute all those who engage in such an unlawful enterprise. We will also eliminate their profit motive through the forfeiture of all money and assets that can be linked to their crimes.”

          Special Agents from the Federal Bureau of Investigation conducted the investigation, with assistance from the Department of Homeland Security, Homeland Security Investigations. The case was prosecuted by Eric O’Malley, First Assistant United States Attorney for Guam and the Northern Mariana Islands.

WASHINGTON – A un médico radicado en el área de McAllen, Texas se le hizo una acusación formal, la cual se hizo pública el día de hoy, por su participación en un fraude de $240 millones al sistema de salud y una estratagema internacional de lavado de dinero.  

            El Fiscal General Adjunto John P. Cronan de la División Criminal del Departamento de Justicia, el Fiscal de los Estados Unidos Ryan J. Patrick del Distrito del Sur de Texas, el Agente Especial a Cargo C.J. Porter del Departamento de Salud y Servicios Humanos de los Estados Unidos de la Oficina del Inspector General (HHS-OIG) de la Región de Dallas y el Agente Especial a Cargo Christopher Combs de la Oficina Regional del FBI en San Antonio, emitieron el comunicado. 

Jorge Zamora-Quezada, de 61 años, de Mission, Texas, fue acusado de siete cargos en el Distrito del Sur de Texas.  Se le acusó de un cargo de asociación ilícita para cometer fraude al  sistema de salud, cinco cargos de fraude al sistema de salud y un cargo de asociación ilícita para llevar a cabo el lavado de dinero.

“Jorge Zamora-Quezada presuntamente organizó una estratagema de fraude masivo que puso en peligro la salud y el bienestar de niños inocentes, personas de tercera edad y víctimas con discapacidad,” dijo el Fiscal General Adjunto Cronan.  “Las alegaciones de que Zamora-Quezada violó su juramento de no hacer daño, al administrar quimioterapia innecesaria y otros  medicamentos tóxicos, a pacientes con enfermedades graves — incluyendo a algunas de las  víctimas más vulnerables que se pueda imaginar — son difíciles de entender.  La División Criminal está comprometida a combatir el fraude al sistema de salud y de proteger a las víctimas de estratagemas censurables, como la que se alega en este caso.”

“Tomamos alegaciones de esta naturaleza muy en serio,” dijo el Fiscal estadounidense Patrick.  “El enjuiciamiento contra el fraude al servicio de salud es una mayor prioridad para el Distrito del Sur de Texas, especialmente cuando sospechamos que pacientes vulnerables han sido presuntamente explotados, diagnosticados erróneamente o que quizá se les ha recetado medicamento que posiblemente sea dañino, como una manera de cometer este fraude.”

“La acusación formal del día de hoy es el primer paso en hacer al Dr. Zamora-Quezada responsable de su presunta conducta atroz y delictiva,” dijo HHS-OIG Agente Especial a Cargo Porter.  “Sus pacientes confiaban en él y creían en su integridad; a cambio,  presuntamente participó en una estratagema de diagnósticos y tratamientos falsos, y recetó medicamentos innecesarios y  dañinos, a fin de obtener una ganancia financiera personal y sin tomar en cuenta el bienestar del paciente.  HHS-OIG siempre perseguirá a delincuentes que se hagan pasar por médicos legítimos,  los erradicará y les dará el castigo más severo posible, especialmente cuando el daño al paciente está de por medio.”

“El FBI está comprometido a trabajar con nuestros socios de los grupos operativos para combatir el fraude al sistema de salud,”  dijo el Agente Especial a Cargo Combs.  “Es un delito muy serio que va en aumento y que ha impactado cada ciudad y pueblo de la nación.  Esta investigación destaca una inquietud aun mayor que es representante del fraude al sistema de salud, más allá de las pérdidas financieras significativas, es el daño físico y emocional que sufren los pacientes y sus familias.  Por esta razón nosotros en el FBI, junto con nuestros socios de los grupos operativos, estamos comprometidos a ofrecerle justicia a las víctimas de los presuntos delitos del Dr. Zamora-Quezada.”

 Como expone la acusación formal, desde el año 2000 hasta el día de la presentación de la acusación formal, Zamora-Quezada y sus cómplices diagnosticaron erróneamente a pacientes vulnerables – incluyendo a menores de edad, personas de tercera edad y personas con discapacidad, en el Valle del Río Grande, San Antonio, y en otros lugares – con varias enfermedades degenerativas, incluyendo la artritis reumatoide.  Junto a sus cómplices, les administró quimioterapia y otros medicamentos tóxicos a pacientes basados en ese diagnóstico falso.  Además de darles diagnósticos falsos a los pacientes, Zamora-Quezada y sus cómplices presuntamente llevaron a cabo una serie de  procedimientos médicos fraudulentos, repetitivos y excesivos con los pacientes, a fin de aumentar los ingresos y financiar el estilo de vida lujosa y extravagante de  Zamora-Quezada.

La acusación formal alega que Zamora-Quezada y sus cómplices volaban el avión privado  de Zamora-Quezada de un millón de dólares o manejaban su Maserati, ambos grabados con sus iniciales, “ZQ”, entre sus oficinas en el Valle del Río Grande y San Antonio a fin de  llevar a cabo el fraude.  Él, junto a sus cómplices transfirieron el dinero recaudado de su asociación ilícita para comprar aviones privados, vehículos de lujo, ropa de tiendas de calidad superior como Louis Vuitton y propiedades exclusivas en varias partes de los Estados Unidos y México.  Él, junto a sus cómplices presuntamente obstruyeron investigaciones al crear expedientes médicos falsos y ficticios, y le ocultaron miles de expedientes médicos a Medicare almacenándolos en establos inseguros y destartalados, ubicados en el Valle del Río Grande.

            La acusación formal también alega que Zamora-Quezada y sus cómplices lavaron las ganancias de su estratagema, malgastando, transformando y ocultando la fuente y el lugar de sus ganancias al invertirlas en propiedades comerciales y residenciales en los Estados Unidos y  México.  Entre las propiedades, él junto a sus cómplices adquirieron dos penthouses en Puerto Vallarta, México; un condominio en Aspen, Colorado; un condominio en Punta Mita, México; y numerosas casas y propiedades comerciales ubicadas en diferentes partes  de Texas.  Después creó la falsa apariencia de riquezas e ingresos legítimos alquilándole a individuos y a entidades varias propiedades comerciales y residenciales que él había adquirido.  Zamora-Quezada y sus cómplices presuntamente lavaron las ganancias en una casa de cambio, enviándolas a varias cuentas que mantenían en instituciones financieras en México. 

            La acusación formal solicita el decomiso del avión privado, el Maserati y las diferentes propiedades residenciales y comerciales de Zamora-Quezada en los Estados Unidos y México.

Una acusación formal es simplemente una alegación y todo acusado es inocente hasta que se compruebe su culpabilidad más allá de una duda razonable en un tribunal de justicia.

La Oficina Regional de McAllen de HHS-OIG, el Grupo Operativo contra el Fraude al Sistema de Salud de la Oficina Satélite de McAllen en el Valle del Río Grande de la División de San Antonio y el Grupo Operativo de McAllen contra Delitos Financieros están llevando a cabo la investigación de este caso. Estos grupos operativos están compuestos de investigadores del Departamento de Seguros de Texas, del Departamento de Policía de McAllen, del Departamento de Policía de Pharr y de la  Comisión de Salud y Servicios Humanos de Texas.

El Abogado Procesalista Kevin Lowell de la Sección de Fraude de la División Criminal y el Fiscal Adjunto de los Estados Unidos Andrew Swartz del Distrito del Sur de Texas, están llevando este caso a juicio.

El FBI está buscando identificar  posibles víctimas de Zamora-Quezada y sus cómplices.  Si usted fue paciente de Zamora-Quezada entre enero 2000 y mayo 2018 y cree que pudo haber sido afectado por sus presuntos delitos y el de sus cómplices, por favor llame al FBI a su línea directa, 1-833-432-4873, Opción 8 o 9, o si tiene acceso a un correo electrónico, envié su correo al grupo operativo a ZamoraPatient@fbi.gov. Por ley el FBI tiene que identificar a las víctimas de los delitos federales que investiga y tiene que proporcionarles a dichas víctimas información, servicios de asistencia y recursos.

La  Sección de Fraude lidera el Equipo de Prevención de Fraude al Medicare, el cual forma parte de una iniciativa conjunta entre el Departamento de Justicia y HHS, quienes enfocan sus esfuerzos para prevenir e impedir el fraude e implementan las leyes actuales en contra del fraude en todo el país. El Equipo de Prevención de Fraude al Medicare opera en nueve localidades en toda la nación.  Desde su comienzo en marzo del 2007, el Equipo de Prevención de Fraude al Medicare ha presentado cargos a más de 3,500 acusados quienes han colectivamente defraudado al programa  de Medicare por más de $12.5 mil millones. 

# # #

18-626

Prosecution and defense jointly request sentence of life imprisonment without parole

Adam W. Purinton, of Olathe, Kansas, pleaded guilty today in federal court to hate crime and firearm charges for shooting Indian nationals Srinivas Kuchibhotla and Alok Madasani and Kansas resident Ian Grillot at Austins Bar & Grill in Olathe February 2017, announced Acting Associate Attorney General Jesse Panuccio of the Department of Justice, Acting Assistant Attorney General John Gore of the Civil Rights Division, and U.S. Attorney Stephen R. McAllister of the District of Kansas. Purinton previously pleaded guilty to state charges for murder and attempted murder arising out of the shooting, and was sentenced to life in state prison.

Purinton admitted in his plea agreement and testified in open court that the following is an accurate recitation of the facts supporting the crimes for which he pleaded guilty.

A few weeks before the shooting, Purinton was sitting by himself in the bar area at Austins Bar & Grill when, coincidentally, Kuchibhotla and Madasani happened to be having a drink on the patio.  Noticing the two men, Purinton commented to a regular sitting at the bar, “Did you see the terrorists on the patio?”

On Feb. 22, 2017, Purinton drove to Austins Bar & Grill and sat by himself at a table on the enclosed front patio.  Sitting at the table to his left were Ian Grillot and several other patrons.  Sitting at the table to his right were Srinivas Kuchibhotla and Alok Madasani.

At approximately 6:40 p.m., Purinton approached Kuchibhotla and Madasani, and demanded to know where they were from and how they entered the country.  Purinton poked Kuchibhotla in the chest, called him a “terrorist” and an epithet disparaging persons of Middle Eastern descent,  and shouted, “Get out of my country!”  Ian Grillot and another patron interceded, told Purinton that he needed to leave, and escorted him out of the bar. 

Purinton drove home and retrieved one of his guns: a Taurus PT111 Millennium Pro nine-millimeter semi-automatic pistol with serial number TEW13121. To disguise his identity, Purinton changed into a different shirt and grabbed a blue-and-white scarf.

At approximately 7:12 p.m., Purinton returned to Austins Bar & Grill.  He wrapped the scarf around his face to disguise his identity and exited his truck carrying his semi-automatic pistol.  Purinton walked over to the enclosed front patio, opened the door, aimed his semi-automatic pistol at Kuchibhotla and Madasani, and fired eight rounds—at least four of which struck Kuchibhotla, who died from his injuries, and one of which struck Madasani, who was injured, but survived.  Hours after the shooting, Purinton stated over the phone to a friend, and later in person to a bartender, that he had just killed some Iranians.

Purinton admitted that he shot Kuchibhotla and Madasani, attempting to kill both men, because of their race, color, religion, and national origin.

After shooting Kuchibhotla and Madasani, Purinton ran out, and Ian Grillot chased after him.  As Grillot caught up to him, Purinton turned around and shot Grillot, who was injured but survived. 

Purinton faces a maximum sentence of life imprisonment without the possibility of parole, which is the sentence that the prosecution and defense are jointly requesting. Sentencing is scheduled for July 2.

“Hate crimes are acts of evil, and the Department of Justice has prioritized their zealous prosecution,” said Acting Associate Attorney General Jesse Panuccio. “In this case, the defendant embarked on a murderous rampage with clear premeditation to kill on the basis of race, color, religion, and national origin. It was a hate crime, and he is being brought to justice. While we cannot ameliorate the irreparable harm to the victims and their families, we hope that securing this guilty plea brings them some measure of closure.  And this prosecution sends a message across the nation: hate crimes will not be tolerated.”

“Nothing we do can provide complete comfort and solace to the victims of this tragic crime and their families,” said U.S. Attorney McAllister. “But our office hopes that the federal life sentence which Mr. Purinton has agreed to request and accept will give them some measure of closure.”

“Although Purinton has already been convicted of murder in the State of Kansas, and sentenced to life in prison, today’s plea in federal court speaks to his motive,” said FBI Kansas City Special Agent in Charge Darrin Jones. “By his agreement to today’s plea, Purinton acknowledges that his actions were motived by his hatred of the victims’ race, religion, color and national origin.  This type of hatred will never be tolerated.  I think it’s important for the community to see and understand that the FBI is committed to aggressively protecting and preserving the civil rights of all of our communities.”

This case was investigated jointly by the Olathe (KS) Police Department and the Kansas City Division of the Federal Bureau of Investigation.  This case is being prosecuted by Assistant United States Attorneys Tris Hunt and David Zabel of the District of Kansas, and Trial Attorney Christopher J. Perras of the Justice Department’s Civil Rights Division.

The Department of Justice announced on Friday that it has reached a settlement agreement with the Puerto Rico Police Bureau (PRPB) that resolves allegations that the PRPB violated the employment rights of Puerto Rico Army National Guard Members Second Lieutenant Wilfredo Cruz Rivera, Sergeant Jose R. Bernal Martinez, and Sergeant Angel L. Martinez Toro under the Uniformed Services Employment and Reemployment Rights Act (USERRA). USERRA safeguards the rights of uniformed servicemembers to receive the full benefits of their employment, including promotional opportunities, following the fulfillment of their military service obligations. 

According to the allegations in the complaint, also filed on Friday by the Justice Department, the three servicemembers became eligible to take promotional examinations while they were on active duty.  The servicemembers took the missed exams upon their return from active duty and scored well enough to be promoted.  While the PRPB promoted the servicemembers, it failed to make the promotions effective on the date that the officers would have been promoted but for their military service.  Because the PRPB failed to provide the correct effective date for their promotions, the servicemembers lost wages and subsequent promotional opportunities. 

“The freedoms we enjoy are dependent on the selfless duties performed by members of our National Guard,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department is committed to fully protecting the rights of these men and women when they are deployed, so that they can return to their civilian jobs with the full benefits to which they are entitled, including promotional opportunities.”

Under the terms of the settlement agreement, the PRPB has agreed to compensate the servicemembers for their lost wages, collectively about $25,000, and lost benefits; correct the effective dates of their promotions; and change its policy to ensure compliance with USERRA in the future.

This case stems from a referral by the United States Department of Labor (DOL), pursuant to an investigation by DOL’s Veterans’ Employment Training Service.

The Justice Department’s Civil Rights Division gives high priority to the enforcement of servicemembers’ rights under USERRA. Established in 2015, the Servicemembers and Veterans Initiative cooordinates with Justice Department components and federal and state agencies to build a comprehensive legal support and protection network focused on serving servicemembers, veterans, and their families.  Additional information about USERRA, and all of the civil rights statutes enforced by the Department of Justice on behalf of servicemembers, veterans and their families, can 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.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Arlene Hart was sentenced on by Chief Judge Ramona V. Manglona for two counts of Mail Fraud, in violation of Title 18, United States Code, Section 1341. The convictions were based on the defendant’s participation in a scheme to defraud by submitting fraudulent documents to the United States Citizenship and Immigration Services (USCIS) California Service Center in support of CNMI-Only Transitional Worker (CW-1) applications for workers from the Philippines. Hart forged the signatures of the workers on the contracts of employment submitted to USCIS, and declared that she had non-temporary, full-time work for the workers, which was not true. Defendant Hart was sentenced to eight months in prison plus four months of home confinement, one year of supervised release after incarceration, and 50 hours of community service.

          United States Attorney Anderson stated, “The CW program was established to sustain the CNMI’s economy during the transition from the former CNMI foreign worker permit system to the U.S. immigration system. The program supplements the local workforce with qualified foreign workers during this ongoing transition period.  However, it was never intended to be a de facto immigration status allowing aliens to seek out their own employment opportunities. Some employers have also been gaming the system by illegally charging workers recruitment fees, and operating illegal manpower agencies by petitioning USCIS for multiple alien workers without having actual jobs available for them. Allocating CW slots to workers without jobs harms the economy by depriving legitimate businesses of the workers they need. The United States Attorney’s Office will continue to pursue these cases as they come to our attention.”

          Special Agents and Task Force Officers from the Homeland Security Investigation (HSI) conducted the investigation.  Assistant United States Attorney James Benedetto prosecuted the case.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Wencai GUO was sentenced today by Chief Judge Ramona V. Manglona for Harboring Illegal Aliens, in violation of Title 8, United States Code, Section 1324(a)(1)(a). The conviction was based on his role in supervising and concealing from detection illegal workers who had entered the United States to work at the Best Sunshine Hotel and Casino construction site. Defendant GUO was sentenced to 18 months in prison, one year of supervised release after incarceration, and a $5,000.00 fine.

          United States Attorney Anderson stated, “The parole system, whereby tourists from the People’s Republic of China may enter the United States without a visa and without participation in a visa-waiver program, has resulted in hundreds, if not thousands, of illegal workers in construction and various other positions of employment in the Northern Mariana Islands. The United States Attorney’s Office will pursue cases of harboring and employment of illegal aliens against employers and others engaging in this unlawful activity.  People entering the CNMI under the parole system cannot lawfully work.  We will therefore pursue illegal entry charges against workers who enter the United States posing as tourists. Those tourists overstaying their terms under the parole system should depart the CNMI at the earliest opportunity.”

          Special Agents from the Federal Bureau of Investigation (FBI) conducted the investigation. Assistant United States Attorney James Benedetto prosecuted the case.

Attorney General Jeff Sessions today announced that Hugh Hurwitz will begin serving as the Acting Director of the Federal Bureau of Prisons on May 19, 2018, following Former Director Mark Inch’s resignation.

“I am pleased to announce Hugh Hurwitz as the Acting Director of the Federal Bureau of Prisons. Hugh has honorably served the Department of Justice, the Federal Bureau of Prisons and the American people throughout his distinguished career of federal service.” said Attorney General Jeff Sessions. “I would also like to thank Mark Inch for proudly serving the Department of Justice as the Director of the Federal Bureau of Prisons and wish him luck in his future endeavors.”

Mr. Hurwitz began his career with the Bureau of Prisons as a law clerk in the Office of General Counsel in 1988. In 2003, Mr. Hurwitz was selected as the Chief of Acquisitions and Grants Services at the Food and Drug Administration (FDA), later becoming the FDA's Chief of Information Technology Shared Services. In 2007, he was appointed Senior Procurement Executive for the U.S. Department of Education (ED) before being promoted to Deputy Chief Financial Officer. Mr. Hurwitz joined NASA's Office of Inspector General in 2012 as the Assistant Inspector General for Management. In 2015, he returned to the Bureau of Prisons as the Senior Deputy Assistant Director of the Information, Policy and Public Affairs Division. In 2017, Mr. Hurwitz was named Assistant Director for the Reentry Services Division.

As Assistant Director, Mr. Hurwitz oversaw a wide variety of areas, including mental health and drug treatment, community placement, and the education, vocational and recreation training programs for federal inmates nationwide. Mr. Hurwitz was responsible for coordinating efforts with other disciplines, agencies, and organizations to facilitate the successful reintegration of inmates back to their communities upon release.

In 1987, Mr. Hurwitz received his Bachelor of Arts degree in Political Science from the University of Rochester. In 1990, he received his Juris Doctor degree from American University, Washington College of Law. 

Attorney General Jeff Sessions today signed his order and opinion in the Matter of Castro-Tum. Please attribute the following statement to Justice Department spokesman Devin O’Malley:

 “Starting in 2012, immigration judges began increasingly to rely on administrative closures, which suspended cases indefinitely rather than actually rendering a final decision. Congress never granted such broad authority to immigration judges, nor had the Attorney General delegated it. This process—where immigration court cases were put ‘out of sight, out of mind’—effectively resulted in illegal aliens remaining indefinitely in the United States without any formal legal status. Today’s opinion by Attorney General Sessions promotes the rule of law in the immigration system and eliminates the unfettered use of administrative closures.”

 Background:

•  On June 17, 2011, Immigration and Customs Enforcement (ICE) issued a memo that provided “guidance on the exercise of prosecutorial discretion to ensure that the agency’s immigration enforcement resources are focused on the agency’s enforcement priorities.”
• Two years later, the Executive Office for Immigration Review (EOIR) issued a memo promoting the use of administrative closures and continuances.
• The ICE memo informed their attorneys that they "may exercise prosecutorial discretion in any immigration removal proceeding before EOIR…”
• From October 1, 2011 through September 30, 2017, 215,285 cases were administratively closed. This represents 76% of the total cases that were administratively closed in the 31-year period between FY80 and FY11.
• On January 4, 2018, Attorney General Jeff Sessions directed the Board of Immigration Appeals (BIA) to refer its decision in the Matter of Castro-Tum to him for review, an authority provided to the Office of the Attorney General by 8 C.F.R. § 1003.1(h)(1)(i).
• The following chart represents the number of cases that have been administratively closed, but have yet to be recalendared. This total is not counted in the total pending caseload, which sits at approximately 690,000.

 Key Excerpts:

•  “Immigration judges and the Board have come to rely upon administrative closure without thoroughly explaining their authority to do so.  Unlike the power to grant continuances, which the regulations expressly confer, immigration judges and the Board lack a general authority to grant administrative closure.  No Attorney General has delegated such broad authority, and legal or policy arguments do not justify it.  I therefore hold that immigration judges and the Board lack this authority except where a previous regulation or settlement agreement has expressly conferred it.” (Section III; page 9)
• “This certified case demonstrates how administrative closure particularly undermines the INA’s mandate to swiftly adjudicate immigration cases when the respondent fails to appear.” (page 2)
•  “The current practice of administrative closure lacks a valid legal foundation, and I do not believe it would be appropriate to delegate such authority.” (Section III.B; page 17)
• “In the other administratively closed cases, immigration judges and the Board ordered administrative closure without the authority to do so.  I am cognizant of the need to return these cases to the active docket so that these matters can proceed expeditiously.  Requiring recalendaring of all of these cases immediately, however, would likely overwhelm the immigration courts and undercut the efficient administration of immigration law.” (Section IV; page 17)
• “Consequently, I now order that all cases that are currently administratively closed may remain closed unless DHS or the respondent requests recalendaring.” (Section IV; page 17)

 Additional EOIR Background:

•  If you are reporting on the backlog, you can use the following statement from DOJ spokesman Devin O’Malley: “Many of the policies in recent years have contributed to a three-fold increase of the immigration courts’ pending caseload. This massive increase necessitated the Justice Department’s ‘Strategic Caseload Reduction Plan,’ a series of common-sense reforms that aim to reduce the so-called ‘backlog’ by realigning the agency towards completing cases, increasing both productivity and capacity, and changing policies that lead to inefficiencies and waste.”
• For your background on the Strategic Caseload Reduction Plan:
• A streamlined hiring plan for immigration judges that reduces the hiring time from 762 days to 6-8 months. Under Attorney General Sessions’s leadership, we have already reached a reduction to 10 months, and we are confident we will hit the 6-8 month goal this year.
• Requested—and received—funding that decreases the ratio of judges to clerks from 2:1 to 1:1, which will increase efficiency and productivity.
• EOIR is actively working with GSA to identify new space and to expedite build-outs of existing space.
• EOIR is planning to pilot Video Teleconferencing (VTC) immigration adjudication centers (IACs), where IJs will adjudicate cases from around the country.
• EOIR is working to replace an antiquated paper filing system to an electronic filing system, and a pilot program for that will soon be established.
•  

NOTE: The Attorney General's opinion in the Matter of Castro-Tum  is attached here.

A federal grand jury has returned an indictment, which was unsealed today, against a Rogersville, Tennessee resident charging him with obstruction of the internal revenue laws, filing fraudulent multi-million dollar liens against government employees, and filing false claims for tax refunds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. 

According to the indictment, Brian Leo Snow obstructed the internal revenue laws over a period of at least nine years by, among other things, filing false tax returns; filing false UCC Financing Statements against individuals seeking to collect his back taxes; and by filing a document with Hawkins County Register of Deeds in an attempt to terminate tax liens filed against him by the IRS.

The indictment further alleges that Snow has not filed timely and accurate income tax returns in almost two decades and owes the IRS over $150,000 in taxes.  In response to IRS collection efforts, Snow allegedly filed false retaliatory liens worth millions of dollars against government officials including an IRS revenue officer, an Assistant United States Attorney, and a federal judge.

The indictment also charges that Snow filed three false claims with the IRS claiming over $144 million in tax refunds to which he was not entitled.

If convicted, Snow faces a statutory maximum sentence of five years in prison on the tax obstruction charge, 10 years in prison on each of the false retaliatory lien counts, and five years in prison on each of the false claims counts.  In addition, he faces a period of supervised release and monetary penalties.  An indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty. 

Principal Deputy Assistant Attorney General Zuckerman commended special agents of the offices of Treasury Inspector General for Tax Administration and IRS Criminal Investigation, who conducted the investigation, and Tax Division Senior Litigation Counsel Jen E. Ihlo and Trial Attorney Jason M. Scheff, who are prosecuting the case.

A federal grand jury returned an indictment against Christopher Lischewski, the President and Chief Executive Officer of Bumble Bee Foods LLC, for participating in a conspiracy to fix prices for packaged seafood sold in the United States, the Department of Justice announced today.

The indictment, filed in the U.S. District Court for the Northern District of California in San Francisco, charges Lischewski with participating in a conspiracy to fix prices of packaged seafood beginning in or about November 2010 until December 2013.  

“The Antitrust Division is committed to prosecuting senior executives who unjustly profit at the expense of their customers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “American consumers deserve free enterprise, not fixed prices, so the Department will not tolerate crimes like the one charged in today’s indictment.”

“This indictment demonstrates the personal accountability of senior leadership at corporations,” said Special Agent in Charge John F. Bennett.  “The FBI and the Department of Justice will hold corporate leaders accountable for criminal actions that defraud American families.”

The one-count felony indictment charges that Lischewski carried out the conspiracy by agreeing to fix the prices of packaged seafood during meetings and other communications.  The co-conspirators issued price announcements and pricing guidance in accordance with these agreements.  Bumble Bee has already pleaded guilty and been sentenced to pay a criminal fine of at least $25 million as a result of the government’s ongoing investigation.    

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

Lischewski is the fourth individual to be charged as a result of the ongoing federal antitrust investigation into the packaged seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office.  Anyone with information on price fixing, bid rigging, or other anticompetitive conduct related to the packaged-seafood industry should contact the Antitrust Division’s San Francisco Office at (415) 934-5300, visit www.justice.gov/atr/contact/newcase.html, or call the FBI tip line at (415) 553-7400.

The Justice Department today announced that it reached an agreement with the City and County of Denver, Colorado, (Denver) to resolve its lawsuit alleging that the Denver Sheriff Department discriminated against a long-time Deputy Sheriff on the basis of his disability, insulin-dependent diabetes.  The Justice Department’s complaint alleges that Denver failed to engage in an interactive process with the employee to determine an appropriate accommodation, failed to reasonably accommodate his disability, and then terminated him, in violation of the Americans with Disabilities Act (ADA).

Under the agreement, Denver will revise its reasonable accommodation policies and procedures, and will conduct training on the ADA for Sheriff Department supervisors, command staff, and human resources personnel.  In addition, Denver will pay $100,000 in compensatory damages to the employee.

“The ADA generally requires employers to provide reasonable accommodations to employees with disabilities, including those with chronic conditions like insulin-dependent diabetes,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We commend the City and County of Denver Sheriff Department for committing to changing its policies, training its staff, and compensating the employee.”

This matter was based on a referral from the Equal Employment Opportunity Commission’s Denver Office, which completed the initial investigation of the facts.

To read the settlement agreement, please click here, and to read the complaint, please click here. For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the Civil Rights Division’s Disability Rights Section, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

Today, the U.S. Department of Justice announced improvements to the Public Safety Officers’ Benefits Program (PSOB), including provisions that address claims involving fatal heart attacks, strokes, and vascular ruptures, and claims involving officers injured in the attacks on September 11, 2001.

"At this Department of Justice, we back the blue," said Attorney General Sessions. "Officers killed or wounded in the line of duty and their families deserve our gratitude and our support. That's why we are determined to make improvements to the Public Safety Officers' Benefits Program, which provides for them when they need it most.  We are making it simpler to apply for benefits for those who are injured. We have already made significant progress in reducing the time for application processing. Now, we are also doing our part to help some of the brave first responders who are suffering from the effects of the September 11th terrorist attacks. We will continue our efforts to improve officer safety and well-being—because these heroic Americans put their lives on the line for us every day."

The Public Safety Officers’ Benefits (PSOB) Program provides death and education benefits to the eligible survivors of fallen law enforcement officers, firefighters, and other first responders, and disability benefits to officers catastrophically injured in the line of duty.

The final rule announced today streamlines provisions related to claims for certain heart attack, stroke, and vascular rupture cases, and clarifies that injuries sustained by certain law enforcement and firefighter trainees are covered by the Program. The rule also aligns the PSOB Program with certain provisions under the World Trade Center (WTC) Health Program and the September 11th Victim Compensation Fund (VCF), in addition to addressing other gaps in regulations, and improving the efficiency of the PSOB Program claims process.

Improvements and updates to the Program include:

• Heart Attack, Stroke, and Vascular Rupture Claims: The new rule helps implement a change in the law that reduces the need in many cases for families to submit difficult-to-find and costly medical records for their loved ones. This regulatory change alone positively impacts nearly one-third of the PSOB death claims filed each year.
• Filing Process:  The new rule includes administrative updates to make filing claims more straightforward and less burdensome for survivors and public safety agencies.
• Law Enforcement and Firefighter Trainees: Recognizing the dangerous nature of law enforcement and fire suppression, and the rigorous training required to help keep communities safe, the new rule clarifies the coverage of certain individuals fatally or catastrophically injured during formal training provided by law enforcement and fire academies.
• September 11th Exposure Claims: The new rule facilitates the PSOB Program’s medical examiners’ review of the nearly 150 claims pending for certain public safety officers who responded to the September 11th attacks to assist in rescue, recovery, and clean-up efforts, and who were exposed to hazards and toxins resulting from the attacks.

The final rule can be found here: https://www.federalregister.gov/documents/2018/05/15/2018-09640/public-safety-officers-benefits-program.

A former City of Detroit employee, Masharn Franklin, 53, of Detroit, pleaded guilty today to embezzling $265,000 from the city, announced United States Attorney Matthew Schneider. 

Franklin was employed by the City of Detroit in its audit and payroll department in 2016 and 2017.  During that time, Franklin was responsible for overseeing the execution of garnishment orders for the salaries of Detroit city employees.  While so employed, Franklin concocted a scheme to embezzle hundreds of thousands of dollars from the city by causing money to be “garnished” from city funds in the names of Franklin’s relatives.  Once the city had issued checks in the names of Franklin’s relatives in the amounts dictated by Franklin, Franklin then deposited the checks into bank accounts held jointly by her and her relatives.  As a result of her embezzlement scheme, Franklin stole approximately $265,573 from the City of Detroit.  The FBI has already seized $58,000 in criminal proceeds from Franklin’s bank accounts.      

Schneider was joined in the announcement by Timothy Slater, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.

“Defendant Franklin abused her position of trust as an employee in order to steal hundreds of thousands of dollars from the City of Detroit.  Today’s conviction demonstrates that the federal authorities will continue to assist the City of Detroit to ensure that such behavior will not be tolerated as the city continues its comeback,” U.S. Attorney Schneider said.

“Masharn Franklin attempted to weaken the successful efforts of Detroit city officials committed to rebuilding faith in the city government by stealing from the residents,” said Timothy R. Slater, Special Agent in Charge of the Detroit FBI.  “The FBI will not tolerate those behaviors and remains committed, along with all our Detroit law enforcement partners, to work collectively, bringing those responsible for such acts to justice.”      

The embezzlement count for theft from a program receiving federal funds carries a maximum sentence of 10 years imprisonment and a fine of $250,000.  Franklin will also be required to pay back all of the $265,573 that she stole from the city.           

Franklin is scheduled to be sentenced by United States District Judge Arthur J. Tarnow on August 15, 2018 at 11:00 a.m.

The investigation of this case was conducted by the Federal Bureau of Investigation.  The case is being prosecuted by Assistant U.S. Attorney David A. Gardey.

WASHINGTON – A resident of Lee County, Florida pleaded guilty today to stealing government funds and corruptly endeavoring to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida. 

According to documents filed with the court, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds.  Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas.  Kalmar also attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.

Sentencing has not been scheduled.  Kalmar faces a statutory maximum sentence of three years in prison for corruptly endeavoring to impede the internal revenue laws and a statutory maximum sentence of 10 years in prison for theft of government funds.  He also faces a term of supervised release, restitution, forfeiture, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys William M. Montague, Grace E. Albinson, and Melanie A. Smith of the Tax Division, who prosecuted the case.

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

A Canadian man pleaded guilty today in Rochester, New York to conspiring to defraud the United States and making a false claim against the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney James P. Kennedy Jr. for the Western District of New York.

According to documents filed with the court and evidence introduced at a related trial, Daveanan Sookdeo, 46, formerly of Ontario, Canada, along with other Canadian citizens, conspired to defraud the United States by filing fraudulent claims for income tax refunds with the Internal Revenue Service (IRS).  Sookdeo promoted a scheme that involved the falsifying of IRS forms to claim that almost $10 million in income had been withheld by various Canadian financial institutions on the conspirators’ behalf.  Based on those bogus withholdings, the conspirators sought refunds from the IRS.

Sookdeo profited from the scheme by charging his coconspirators an upfront fee for the false documents used in the scheme, as well as a percentage of any tax refunds obtained through the scheme.  Sookdeo travelled to the United States to open bank accounts and deposited the refund checks and his coconspirators then wire transferred portions of the fraudulent proceeds to Canada. 

Sookdeo is the fifth Canadian citizen to be convicted for his role in this scheme.  In January 2016, Kevin Cyster of Burlington, Ontario, was sentenced to 135 months in prison after a jury convicted him of conspiring to defraud the United States and commit theft of government funds, making a false claim against the United States and transferring stolen money in foreign commerce.  Renee Jarvis, Timothy Johnston, and Jose Compuesto, also of Canada, pleaded guilty to conspiring to defraud the United States and commit theft of government funds. U.S. District Judge Frank P. Geraci scheduled the sentencing for August 27, 2018.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Kennedy thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl and Assistant U.S. Attorney John Field of the Western District of New York, who prosecuted this case.

More information about the Tax Division’s enforcement efforts is available on the Division’s website.

The Department of Justice and U.S. Citizenship and Immigration Services (USCIS) today announced a Memorandum of Understanding (MOU) that expands their collaboration to better detect and eliminate fraud, abuse, and discrimination by employers bringing foreign visa workers to the United States. This new effort improves the way the agencies share information, collaborate on cases, and train each other’s investigators.

The MOU will increase the ability of the agencies to share information and help identify, investigate, and prosecute employers who may be discriminating against U.S. workers and/or violating immigration laws. In 2010, USCIS and the Justice Department’s Civil Rights Division entered into an ongoing partnership to share information about E-Verify misuse and combat employment discrimination, and today’s MOU expands upon the two agencies’ existing partnership. 

In 2017, the Civil Rights Division launched the Protecting U.S. Workers Initiative, which is aimed at targeting, investigating, and taking enforcement actions against companies that discriminate against U.S. workers in favor of foreign visa workers. Under this Initiative, the Civil Rights Division has opened dozens of investigations, filed one lawsuit, and reached settlement agreements with two employers. Since the Initiative’s inception, employers have agreed to pay or have distributed over $200,000 in back pay to affected U.S. workers. The Division has also increased its collaboration with other federal agencies to combat discrimination and abuse by employers using foreign visa workers. 

USCIS administers the nation’s immigration system and adjudicates requests for immigration benefits, including employment-based petitions. To advance the goals of the Buy American and Hire American Executive Order and promote the economic interests of U.S. workers, USCIS is taking concrete steps to ensure the integrity of the employment-based immigration programs and improve its ability to detect and prevent fraud. Among other things, USCIS has created dedicated tip lines for reporting H-1B and H-2B visa fraud and abuse and expanded its site visit programs. USCIS has also worked with other government agencies that have a role in immigration, such as DOJ, to ensure that they efficiently share and appropriately act upon information regarding potential fraud and abuse of immigration programs. For more information, visit the USCIS Buy American and Hire American page.

“In the spirit of President Trump’s Executive Order on Buy American and Hire American, today’s partnership adds to the Civil Rights Division’s tools to stop employers from discriminating against U.S. workers by favoring foreign visa workers,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Division looks forward to expanding its partnerships with USCIS to hold accountable employers that discriminate against U.S. workers based on their citizenship status.” 

“Protecting and maintaining the integrity of our immigration system remains a key priority for me, and underpins the exceptional work of the professionals at USCIS,” said USCIS Director L. Francis Cissna. “This agreement enhances the level of coordination among investigators who often work on the same issues at different agencies. Breaking down silos and working with our federal partners to combat employment discrimination will help ensure that U.S. workers have the advocate they need at the highest level.”

The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the Immigration and Nationality Act.  Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.  An employer that prefers to hire temporary foreign visa workers over available, qualified U.S. workers may be discriminating in violation of this law.

For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email IER@usdoj.gov(link sends e-mail); or visit IER’s  English and Spanish websites.  Applicants or employees who believe they were subjected to retaliation; different documentary requirements based on their citizenship, immigration status or national origin; or discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee, should contact IER’s worker hotline for assistance.

For more information on USCIS and its programs, please visit uscis.gov or follow us on Twitter (@uscis), Instagram (/uscis), YouTube (/uscis), and Facebook(/uscis).  

A federal court in Wichita, Kansas, permanently barred Ma Guadalupe Valenzuela (a/k/a Maria Guadalupe Valenzuela a/k/a Lupe Valenzuela, individually and doing business as Servicio de Income Tax) from preparing federal income tax returns for others. The civil injunction order, to which Valenzuela agreed, was signed by Judge Broomes, of the U.S. District Court for the District of Kansas.  

In its complaint, the government alleged that Valenzuela unlawfully understated her customers’ income tax liabilities and overstated her customers’ refunds. Valenzuela prepared federal tax returns that lowered her customers’ federal tax liabilities by claiming bogus child tax credits, improper dependency exemptions, and false filing statuses, according to the allegations in the complaint.

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

          Attorney General Sessions and U.S. Attorney Shawn N. Anderson for the Districts of Guam and the Northern Mariana Islands recognized the service and sacrifice of federal agents and local police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.

          “One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line- of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families.  We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us.  As always, we have their backs and they have our thanks.”

          U.S. Attorney Anderson stated, “Those who sacrifice to protect our communities deserve justice. Any act of violence against law enforcement on our islands is unacceptable. Our office will continue to work hard on focused prosecutions and outreach initiatives that promote the safety of agents and officers. We will also take action to combat violent crime in an effort to enhance the important work of our local partners.”

          According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 nationwide – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.     

          Additionally, in 2017 there were 46 law enforcement officers killed in line-of- duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.

          For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today.

          In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.

          During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.

          The names of all 93 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. So that people across the country can experience this unique and powerful ceremony, the vigil will be livestreamed beginning at 8:00 p.m. EDT on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.

          The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.  

          The Guam Police Department will hold its annual Peace Officers’ Memorial Service on May 15, 2018, at 3:30 PM at the GPD’s Hagatna Precinct. The CNMI Department of Public Safety will hold its annual ceremony on May 15, 2018, at 5:00 PM at DPS Central Precinct. These events will honor past fallen law enforcement and remember them for their sacrifices. While no officers were killed in the line of duty on Guam or the CNMI during 2017, several were assaulted.

          For more information about other National Police Week events, please visit www.policeweek.org. 

          To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.

Earlier today, a Guatemalan national was sentenced to life in prison following a March 2016 trial that resulted in a conviction for his participation in an international drug trafficking conspiracy.  He was responsible for the distribution of multi-ton quantities of cocaine for illegal importation into the United States. 

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Special Agent in Charge Raymond Donovan of the U.S. Drug Enforcement Administration (DEA) Special Operations Division made the announcement. 

Waldemar Lorenzana-Cordon, 53, was sentenced by U.S. District Judge Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia.

“Waldemar Lorenzana-Cordon was a drug kingpin whose criminal organization had close ties to the violent Sinaloa Cartel and was responsible for transporting massive amounts of cocaine to be sold on our streets,” said Acting Assistant Attorney General Cronan.  “Lorenzana-Cordon’s life sentence sends a powerful message to leaders of drug trafficking organizations that, if they send their poison to our country, the United States and our international partners will work tirelessly to bring them to justice, no matter where in the world they may reside.  I thank the dedicated prosecutors of the Criminal Division’s Narcotic and Dangerous Drug Section and law enforcement officers with the Drug Enforcement Administration’s Bilateral Investigations Group for their outstanding work on this important case.”

“One of the world’s most influential drug traffickers now faces American justice and DEA is pleased he will never be in business again,” said DEA Special Agent in Charge Donovan. “Lorenzana-Cordon imported huge amounts of cocaine to the United States for over a decade, helping fuel our nation’s drug epidemic. He conspired with some of the most brutal and destructive drug networks in history, facilitating and coordinating huge shipments for the Sinaloa Cartel, among others. DEA’s work will always focus on these types of investigations: attacking the most powerful, influential global criminal networks and their many facilitators and associates.”

The defendant was convicted on one count of conspiring to unlawfully distribute cocaine for illegal importation into the United States.  As proven at trial, the defendant along with his brother, co-defendant Eliu Lorenzana-Cordon, led an international drug trafficking organization with close ties to the Sinaloa Cartel.  Between 1996 and 2009, the defendant and his co-conspirators received, stored, and distributed multi-ton quantities of cocaine from Colombia at their properties in Zacapa, Guatemala, for importation into Mexico and then ultimately into the United States. In February, Eliu Lorenzana-Cordon was sentenced to life in prison following a March 2016 trial resulting in a conviction.

On April 27, 2010, the Department of Treasury’s Office of Foreign Asset Control designated the defendant and his brother, Eliu Lorenzana-Cordon, as Specially Designated Narcotics Traffickers pursuant to the Foreign Narcotics Kingpin Designation Act due to their significant roles in international narcotics trafficking and their ties to the Sinaloa Cartel.

The DEA’s Special Operations Division’s Bilateral Investigations Unit and Guatemala City Country Office led the investigation, which was supported by the Organized Crime Drug Enforcement Task Force program, the Criminal Division’s Office of International Affairs, the Chicago Police Department and the governments of El Salvador and Panama provided support and assistance.  Finally, and in particular, the Justice Department wishes to convey its gratitude to the government of Guatemala for its steadfast commitment, collaboration and assistance in the investigation, extradition, and prosecution of this case.

Assistant Deputy Chief Michael Lang and Trial Attorney Emily Cohen of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. 

The Justice Department announced today that it reached a settlement agreement with the University of California, San Diego.  The settlement resolves the Department’s investigation into whether the University’s Resource Management and Planning Vice Chancellor Area (RMP) discriminated against workers in violation of the Immigration and Nationality Act (INA) when verifying their continued authorization to work.

The Department’s investigation concluded that the RMP unnecessarily required certain work-authorized immigrants to re-establish their work authorization when their documents expired, based on the citizenship status of those individuals when they were hired.  The antidiscrimination provision of the INA prohibits such requests for documents when based on an employee’s citizenship status or national origin.

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

“Employers must comply with anti-discrimination laws, not only when employees are first hired, but throughout their employment,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We will work with the University to ensure that its employment eligibility reverification procedures avoid unnecessary burdens on permanently work-authorized immigrants based on citizenship status.”

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

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

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

A former corporate officer of a produce vendor in Johnson Creek, Wisconsin was sentenced today to 18 months in prison for tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Scott C. Blader for the Western District of Wisconsin.

According to court documents and information provided to the court, Thomas G. Paine was the Vice President and Treasurer of G.W. Paine Inc., which sold fresh fruit and other produce under the business name Tree Ripe Citrus Company.  Paine was responsible for the finance and tax aspects of the business, but failed to file corporate tax returns for tax years 1997 through 2012 and concealed the business’ income from the Internal Revenue Service (IRS) by structuring cash bank deposits in amounts less than $10,000 to evade bank reporting requirements.  Paine admitted to causing a tax loss between $250,000 and $550,000.

In addition to the term of imprisonment, U.S. District Court Judge James D. Peterson ordered Paine to serve two years supervised release and to pay restitution of $421,621.99.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Blader commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Elizabeth Altman and Trial Attorney Eric C. Schmale of the Tax Division, who are prosecuted the case.

A jury convicted a former resident of Palm Beach, Florida yesterday, after an eight day trial, of two counts of tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jessie K. Liu for the District of Columbia.

According to the evidence introduced at trial, Michael Sang Han owned and operated Envion, a company that he claimed held the patents on technology used to convert plastics into fuel oil.  Han fraudulently induced two individuals to invest in Envion, and then used the investors’ money to pay for his own personal expenses.  He evaded paying income taxes on that money by filing false personal tax returns, which significantly underreported his income.  In 2010 and 2011, Han directed investor money to be deposited into his personal bank account, spent it, and then lied to and gave incomplete information to his bookkeepers and tax preparers in order to hide the fact that he was using investors’ money to pay his personal expenses. 

Han used over $14 million in investor funds to finance his lavish personal lifestyle and spent investor funds on personal expenditures such as private jets, real estate, high-end renovations and interior decorations, and expensive cars such as BMWs, a Range Rover, and a Ferrari. Additionally, Han used millions of dollars of investor funds to replace money he had previously misappropriated from Envion.  Han’s evasion resulted in more than $4 million of tax due to the IRS.

U.S. District Judge James E. Boasberg scheduled sentencing for August 1, 2018, at 10:00 am.  Han faces a statutory maximum sentence of 5 years in prison on each tax evasion count.  He also faces a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Liu thanked special agents of IRS Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Tax Division Trial Attorney Sarah Ranney and Assistant U.S. Attorneys Derrick Williams and Denise Simmonds, who prosecuted the case, and Paralegal Specialist Brittany Phillips for her valuable assistance during the trial.

A federal grand jury returned an indictment against Akshay Aiyer, a former currency trader at a major U.S. bank, for his alleged role in a conspiracy to manipulate prices in the foreign currency exchange (FX) market, the Justice Department announced today. 

The one-count indictment, filed in the U.S. District Court for the Southern District of New York, charges Akshay Aiyer with conspiring to fix prices and rig bids and offers in Central and Eastern European, Middle Eastern, and African (CEEMEA) currencies, which were generally traded against the U.S. dollar and the euro.

According to the indictment, from at least as early as October 2010 through at least July 2013, Aiyer, along with other New York-based CEEMEA traders working for rival banks, participated in a conspiracy designed to suppress competition in order to increase each trader’s profits and decrease each trader’s losses.  Aiyer and his co-conspirators carried out this agreement by engaging in near-daily conversations through private electronic chat rooms, telephone calls, and text messages, in which they exchanged trading positions, confidential customer information, planned pricing for customer orders, and other categories of competitively sensitive information.  Aiyer and his co-conspirators then used this information to coordinate their live trading in CEEMEA currencies, including, at times, by certain traders refraining from trading against the others.  Throughout the conspiracy, Aiyer and his co-conspirators took affirmative steps to conceal their anticompetitive behavior.

“As today’s indictment demonstrates, the Antitrust Division remains committed to holding individuals accountable for anticompetitive conduct that violates the integrity of global financial markets,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division. 

“Today’s indictment charges the defendant with illegally manipulating the foreign currency exchange market in order to boost earnings, squelch free-market competition, and then cover his tracks,” said FDIC Inspector General Jay N. Lerner. “This case represents a compelling example of coordination among law enforcement partners, and the FDIC OIG remains dedicated to investigate complex crimes which undermine the integrity of our markets and the financial services sector.”

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

This indictment follows the guilty pleas, on Jan. 4 and 12, 2017, of former CEEMEA traders Jason Katz and Christopher Cummins, respectively, who were charged in connection with the same conspiracy in which Aiyer is alleged to have participated.   In addition, on Jan. 10, 2017, Richard Usher, Rohan Ramchandani, and Christopher Ashton—former U.K-based traders for major banks—were indicted for conspiring to fix prices and rig bids for the euro-U.S. dollar currency pair.  Trial is set in that matter for October 2018. 

An indictment is merely an accusation.  All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

The Department of Justice has also charged six major banks in the ongoing investigation into antitrust and fraud crimes in the FX market.  On May 20, 2015, Citicorp, JPMorgan Chase & Co., Barclays PLC, and The Royal Bank of Scotland PLC pleaded guilty at the parent level and agreed to pay, collectively, more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy to manipulate the price of the euro-U.S dollar currency pair.  Additionally, UBS AG pleaded guilty to manipulating the London Interbank Offered Rate (LIBOR) and other benchmark interest rates, and agreed to pay a $203 million criminal penalty after breaching its December 2012 non-prosecution agreement resolving the LIBOR investigation.  On January 25, 2018, BNP Paribas USA, Inc., the former employer of Jason Katz, pleaded guilty to violating the Sherman Act based on its participation in a CEEMEA-related conspiracy, and agreed to pay a $90 million fine. 

This investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FDIC Office of Inspector General, and the FBI’s Washington Field Office.  The Criminal Division’s Fraud Section of the Department of Justice also provided substantial assistance in this matter.  Anyone with information concerning price fixing or other anticompetitive conduct in the FX market should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, or visit https://www.justice.gov/atr/report-violations. 

WASHINGTON – El Departamento de Justicia anunció que ha llegado a un acuerdo con la Universidad de California, San Diego. El acuerdo resuelve la investigación por parte del Departamento para determinar si el Área de Gestión de Recursos y Planificación del Vicerrectorado de la Universidad (RMP, por sus siglas en inglés), vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a inmigrantes con autorización para trabajar a la hora de verificar su autorización continua para trabajar.

Con base en su investigación, el Departamento concluyó que el RMP les exigió innecesariamente a ciertos inmigrantes autorizados para trabajar que volvieran a demostrar su autorización para trabajar por motivos del estatus de ciudadanía que tenían cuando fueron contratados.  La disposición antidiscriminatoria de la INA prohíbe que los empleadores sometan a los empleados a requisitos documentales diferentes o innecesarios con base en la ciudadanía, estatus migratorio o nacionalidad de origen del empleado.

Conforme al acuerdo, la Universidad pagará una multa a los Estados Unidos, capacitará al personal de recursos humanos del RMP sobre los requisitos de la disposición antidiscriminatoria de la INA y se someterá a los requisitos de Departamento en cuanto a supervisión y declaración.

«Los empleadores deben cumplir con las leyes antidiscriminatorias, tanto a la hora de contratar a sus empleados como a lo largo de su empleo», declaró el Fiscal General Auxiliar en funciones John Gore, de la División de Derechos Civiles. «Trabajaremos con la Universidad para procurar que su proceso de verificación de la elegibilidad para trabajar evite imponer cargas innecesarias sobre inmigrantes autorizados para trabajar por motivos de su estatus de ciudadanía».

Dentro de la División de Derechos Civiles, la Sección para los Derechos de los Inmigrantes y Empleados (IER, por sus siglas en inglés), es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación.

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

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

Attorney General Sessions recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.

“One officer death is too many,” Attorney General Sessions said.  “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high.  At the Department of Justice, we honor the memories of the fallen and we pray for their families.  We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us.  As always, we have their backs and they have our thanks.”

According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.

Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.

For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today at www.fbi.gov.

In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty.  The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.  

During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.

The names of all 93 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018.  So that people across the country can experience this unique and powerful ceremony, the vigil will be livestreamed beginning at 8:00 PM (EDT) on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.

The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.

For more information about other National Police Week events, please visit www.policeweek.org.

Five real estate investors were sentenced yesterday for their role in a conspiracy to rig bids, in violation of the antitrust laws, at public real estate foreclosure auctions in Northern California, the Department of Justice announced.

Joseph Giraudo, Kevin Cullinane, Raymond Grinsell, Daniel Rosenbledt, and Mohammed Rezaian were charged with and convicted of bid rigging at real estate foreclosure auctions in San Mateo County, California. Giraudo, Grinsell, Rosenbledt, and Rezaian were also convicted of bid rigging in San Francisco County.

Giraudo was sentenced to serve 15 months in prison followed by three years of supervised release, and he was ordered to pay a criminal fine of $2 million. Cullinane was sentenced to serve eight months in prison followed by three years of supervised release, and he was ordered to pay a criminal fine of $500,000. Grinsell was sentenced to three years of probation on the condition that he reside at a halfway house or residential re-entry center for 10 months. Grinsell was also ordered to pay a criminal fine of $1,433,045 and $156,146.79 in restitution. Rosenbledt was sentenced to serve six months in prison followed by three years of supervised release, and he was ordered to pay a criminal fine of $1,236,355 and $127,808 in restitution. Rezaian was sentenced to four years of probation on the condition that he reside at a halfway house or residential re-entry center for five months. Rezaian was also ordered to pay a criminal fine of $1,236,355 and $110,155.70 in restitution. The issue of restitution as it relates to Giraudo and Cullinane will be decided at a later date.

“As the sentences imposed yesterday show, bid rigging does not pay,” said Assistant Attorney General Makan Delrahim for the Justice Department’s Antitrust Division. “In addition to facing prison time, defendants can expect to pay substantial criminal fines and restitution for their ill-gotten gains.”

Between 2008 and January 2011, the defendants and other bidders at the auctions conspired not to bid against one another for selected properties, instead designating a winning bidder for the property at the auction and negotiated payoffs among themselves in return for not competing with one another.

When properties are sold at public auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds paid to the homeowner.

The sentence is a result of the Division’s investigation into bid rigging at public real estate foreclosure auctions in California’s San Francisco, San Mateo, Alameda, and Contra Costa counties.

These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office. Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should call the FBI tip line at 415-553-7400 or visit https://www.justice.gov/atr/report-violations.

The Executive Office for Immigration Review (EOIR) today released immigration court statistics through the first two quarters of Fiscal Year 2018 (FY18). Today’s release of certain immigration court statistics is the first step in an effort to increase transparency into the immigration court system by releasing immigration court data on a recurring basis.

“Releasing immigration court data to the American public introduces accountability to a system that has been neglected for years,” said EOIR Director James McHenry. “We are proud to announce today’s initial release of data and the commitment to a recurring release of EOIR’s full database, as we continue to make common-sense reforms that creates an immigration court system that serves the national interest.”

Highlights from today’s released data include the following:

• EOIR is beginning to reverse a downward trajectory of completions despite historic levels of new cases, less cases closed due to administrative closure, and an increase in recalendared cases. Last year, EOIR completed more cases than any year since FY12, and is on pace to complete approximately 184,000 cases by the end of FY18.
• The projected decrease of Inactive Pending Cases, which are not currently on the active docket following an immigration judge’s order of administrative closure. Inactive Pending Cases grew by nearly 75,000 cases from the end of FY15 to the end of FY17, but are expected to decline by 2 percent by the end of FY18. This would mark the first decrease in Inactive Pending Cases in at least ten fiscal years.
• The number of removal orders in absentia for cases in which an asylum application has been filed is projected to increase by approximately 40 percent by the end of FY18. The overall number of in absentia removal orders is projected to increase by 10% by the end of FY18 and by nearly 40 percent over FY16.
• Median Completion Time for Detained Cases is expected to decrease 7.5 percent, which would mark the second year of decline in a row following nine years of increases.
• Defensive asylum applications, including cases where an alien passed a credible fear screening, increased by almost 100,000 between FY12 and FY17; however, the number of defensive asylum applications granted increased by only about 4,000 over the same time period. The nationwide grant rate for all asylum applications is approximately 22 percent.
• UAC cases have increased by almost 1,300 percent since FY12, though EOIR is adjudicating Pending UAC Cases at a faster rate than previous years. Pending UAC Cases are projected to increase by approximately 14 percent. At the end of FY14, EOIR had 177 percent more pending cases than the prior fiscal year. In the next two fiscal years combined (i.e., FY15 and FY16), EOIR added 32,852 Pending UAC Cases, which totals nearly 43 percent of the current Pending UAC Case total. Almost two-thirds of UAC cases have been pending for at least one year, and 11 percent have been pending for over three years.

EOIR will release this and other data on a recurring basis, and the data will contain appropriate redactions for privacy concerns. The full upload of the data is expected within the next two weeks. EOIR staff frequently enter and update information into the case database, so the statistics provided are subject to change.

Immigration court statistics through Q2 FY18 can be found here.

A Wilson, North Carolina tax return preparer was sentenced today to 24 months in prison for filing a false claim for refund with the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert J. Higdon, Jr. for the Eastern District of North Carolina.

According to documents and information provided to the court, in early 2015 Tawanda Denise Pitt, managed Integritax, a tax preparation business in Wilson, North Carolina.  Pitt falsified taxpayer client returns by claiming phony dependents and education credits and reporting fake businesses in order to seek refunds to which her clients were not entitled.  Pitt also admitted that she trained other preparers to file fraudulent returns.  She caused a tax loss between $550,000 and $1.5 million; the total tax loss resulting from false education credits alone exceeded $780,000.

In addition to the term of imprisonment, U.S. District Court Judge Malcolm J. Howard ordered Pitt to serve three years of supervised release and to pay $203,106 in restitution to the IRS.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Higdon thanked agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Adam F. Hulbig and Trial Attorney Terri-Lei O’Malley of the Tax Division, who are prosecuted the case.

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

The Justice Department today filed denaturalization lawsuits against two individuals convicted of conspiring to defraud the United States Export-Import Bank (“Ex-Im Bank”) of more than $24 million, conduct they allegedly concealed during their naturalization proceedings. The civil complaints were filed in federal court in the Southern District of Florida.

“Criminals that seek citizenship in the United States and knowingly hide their criminal history have no right to keep their citizenship,” said Acting Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s complaints prove that the Department of Justice will continue to uphold the law and protect our immigration system against those who seek to cheat the United States out of our greatest immigration benefit.”

Guillermo Oscar Mondino, 55, a native of Argentina, and Norma Borgono, aka Norma Isabel Borgono Bedoya, 63, a native of Peru, were convicted in 2010 and 2011, respectively, for conspiracy to defraud the United States and to commit mail fraud, in violation of 18 U.S.C. § 371. Mondino was also convicted of money laundering, in violation of 18 U.S.C. § 1957. As admitted in their criminal proceedings, Mondino owned an exporting company headquartered in Miami, Florida, which was in the business of purchasing U.S. goods on behalf of clients in the Caribbean, Central America, South America, and other foreign countries, and shipping those goods overseas. Mondino conspired with Borgono and others to obtain from the Ex-Im Bank more than $24 million in fraudulent loan transactions by falsifying records. Mondino and Borgono knew and intended that all or some of the goods identified on the applications they falsified would not be purchased and/or would not be shipped. They misappropriated $14.1 million in loan proceeds that were guaranteed by the Ex-Im Bank, including by distributing portions of the loans to foreign co-conspirators in cash. Mondino and Borgono admitted in their criminal proceedings that more than $12.9 million of the amounts Ex-Im Bank paid on claims for defaulted loans remained unrecovered.

After their fraudulent conspiracy was discovered, Mondino and Borgono were criminally charged in the U.S. District Court for the District of Columbia. Although Mondino and Borgono’s criminal conspiracy and crimes began while they were permanent residents of the United States, their criminal proceedings did not occur until after they had both naturalized. The civil denaturalization complaints allege that Mondino and Borgono concealed and affirmatively misrepresented their criminal conduct throughout their naturalization proceedings, and that their applications would have been denied had immigration authorities known about the defendants’ fraud. 

The cases were investigated by U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The cases are being prosecuted by Trial Attorney Michael Celone of OIL-DCS, with support from Senior Attorney Gina Garrett-Jackson of ICE’s Miami Office of the Chief Counsel and Special Agent David Jansen of ICE-HSI Fort Lauderdale.

The claims made in these complaints are allegations only, and there have been no determinations of liability.

The Justice Department today settled its suit against KleinBank, resolving allegations that the bank engaged in lending discrimination by “redlining” predominantly minority neighborhoods in and around the Twin Cities of Minneapolis-St. Paul, Minnesota. “Redlining” is a term describing the illegal practice in which lenders intentionally avoid providing services to individuals living in predominantly minority neighborhoods because of the race or national origin of the residents of those neighborhoods.

As part of the settlement, the parties have agreed to jointly seek dismissal of the lawsuit, which the Department filed in the U.S. District Court for the District of Minnesota in 2017. The Department’s complaint alleged that KleinBank violated the Fair Housing Act and the Equal Credit Opportunity Act, which prohibit financial institutions from discriminating on the basis of race and national origin in their mortgage lending services. The lawsuit alleged that, from 2010 to at least 2015, KleinBank engaged in unlawful redlining in the Twin Cities area by intentionally avoiding providing lending services to residents of predominantly minority neighborhoods because of the race or national origin of the people living in those neighborhoods. 

KleinBank is the largest family-owned bank in Minnesota with 19 branch offices in the Minneapolis-St. Paul area and assets of more than $1.9 billion. Under the settlement, KleinBank will take a number of steps to remedy the harm alleged in the complaint and to ensure that its mortgage lending services are made available on a non-discriminatory basis. The bank will expand its banking services in predominantly minority neighborhoods in the Minneapolis area in a variety of ways.  For example, it will invest $300,000 in a loan subsidy fund to increase the amount of credit that KleinBank extends to residents of predominantly minority neighborhoods, and another $300,000 in advertising, outreach, financial education, and credit repair in order to improve the bank’s visibility in, and successful expansion into, its new service area. The bank will employ a community development officer to oversee the development of the bank’s lending in predominantly minority neighborhoods, and will conduct fair lending training, including training on redlining, for its employees and officers. 

“Federal law prohibits lenders from discriminating against mortgage applicants and other potential customers based on race or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to use its enforcement authority to combat this illegal discrimination.”

The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the Department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.

A copy of the complaint and the settlement agreement, as well as additional information about fair lending enforcement by the Justice Department, can be found on the Justice Department’s website at www.justice.gov/fairhousing.

The Department of Justice announced that Edward Gibson, 28, an officer at a Mississippi juvenile detention facility, pleaded guilty yesterday in federal court to beating a juvenile in his custody. His supervisor, Dianne Williams, 60, pleaded guilty on April 17 to helping cover up the assault, a plea that had not been previously announced. Gibson’s indictment was unsealed in federal court on March 7 and a separate indictment unsealed on the same date charged Williams with writing a false report to cover up the assault. 

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

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

Gibson faces a maximum sentence of ten years in prison. A sentencing date has not yet been scheduled. 

Williams admitted that she was aware of the assault, failed to inform any responsible authority, and wrote a false report to cover it up. She pleaded guilty to misprision of a felony, which carries a maximum sentence of three years in prison. Her sentencing is set for Aug. 23.

“Detention officers have an important duty to protect juveniles from bodily harm or abuse while in custody,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “This Justice Department will not tolerate illegal acts of violence or attempts to obstruct justice by corrections officers, and will continue to protect the civil rights of all individuals.” 

“Our Constitution and laws mandate that all prisoners and detainees be treated fairly and humanely and never face the excessive and unwarranted use of force employed in this case,” said U.S. Attorney William C. Lamar for the Northern District of Mississippi. “I know that our brothers and sisters in law enforcement feel the same and are ashamed by the actions of the abhorrent few.”

After the assault of the juvenile was discovered, the Detention Center fired Gibson and Williams.

This case was investigated by the Jackson Division of the Federal Bureau of Investigation, with the cooperation of the Leflore County Detention Center and the Leflore County Sheriff’s Department. This case was prosecuted by Assistant U.S. Attorney Robert Mims of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.   

WASHINGTON – El Departamento de Justicia llegó hoy a un acuerdo en su pleito contra KleinBank, para resolver alegatos de que el banco discriminó en los préstamos al tomar parte en “redlining”, predominantemente en los vecindarios habitados por minorías en las Ciudades Gemelas de Minneapolis-St. Paul, Minnesota, y en sus alrededores. “Redlining” es un término que describe la práctica ilegal llevada a cabo por prestamistas quienes deliberadamente evitan proporcionar servicios a individuos que viven en vecindarios habitados por minorías debido a la raza o el origen nacional de quienes residen en ellos.

Como parte del acuerdo, las partes han acordado solicitar conjuntamente la desestimación  del pleito que el Departamento presentó en el Tribunal de Distrito de los EE. UU. para el Distrito de Minnesota en 2017. La demanda del Departamento alegaba que KleinBank violó la Ley de Vivienda Justa y la Ley de Igualdad de Oportunidades de Crédito, las que prohíben a las instituciones financieras discriminar con base en la raza y el origen nacional al otorgar servicios de créditos hipotecarios. La demanda alegaba que, desde 2010 hasta 2015, como mínimo, KleinBank mantuvo una práctica discriminatoria en el otorgamiento de préstamos en la zona de las Ciudades Gemelas al deliberadamente evitar proporcionar estos servicios a los residentes de vecindarios habitados por minorías debido a la raza o a el origen nacional de quienes vivían en ellos.

KleinBank es el banco familiar más grande de Minnesota, ya que cuenta con 19 sucursales en la zona de Minneapolis-St. Paul y con activos de más de $1.9 mil millones. Según el acuerdo, KleinBank tomará una serie de medidas para remediar el daño que se alega en la demanda y para asegurar que sus préstamos hipotecarios se otorguen sin incurrir en prácticas discriminatorias. El banco ampliará sus servicios bancarios en los vecindarios habitados predominantemente por minorías en la zona de Minneapolis de diferentes maneras. Por ejemplo, invertirá $300,000 en un fondo de subsidios para préstamos con el objeto de aumentar el monto de los créditos que KleinBank brinda a los residentes de los vecindarios habitados predominantemente por minorías, y otros $300,000 en publicidad, promoción comunitaria, educación financiera y reparación crediticia para mejorar la visibilidad del banco en su nueva zona de servicio y lograr que la ampliación sea exitosa. El banco empleará a un oficial quien se encargará del desarrollo comunitario y supervisará el desarrollo del servicio de préstamos en los vecindarios habitados predominantemente por minorías, y proveerá capacitación sobre servicios de préstamos, incluyendo capacitación en redlining, para sus empleados y funcionarios.

“La legislación federal prohíbe a los prestamistas discriminar contra los solicitantes de créditos hipotecarios y otros clientes potenciales basándose en la raza u el origen nacional”, afirmó el Fiscal General Auxiliar en funciones General John Gore de la División de Derechos Civiles. “El Departamento de Justicia continuará usando su autoridad para hacer cumplir la ley en la lucha contra esta discriminación ilegal”.

La coacción asociada a las leyes de otorgamiento justo de préstamos por parte del Departamento de Justicia es llevada a cabo por la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. En los informes anuales que el Fiscal General presenta ante el Congreso sobre el cumplimiento de la Ley de Igualdad de Oportunidades de Crédito se destacan los logros del Departamento en lo referente al otorgamiento justo de préstamos. Dichos informes se pueden encontrar en www.justice.gov/crt/publications/.

Se encuentra disponible una copia de la demanda y del acuerdo conciliatorio, así como información adicional acerca de las medidas tomadas por el Departamento de Justicia para hacer cumplir las prácticas justas en el otorgamiento de créditos, en el sitio web del Departamento de Justicia en www.justice.gov/fairhousing.

Challenge Fisheries LLC, Quinn Fisheries Inc., Charles Quinn II, and Charles Quinn III have agreed to pay a total of $414,000 in civil penalties and to perform fleet-wide improvements and other compliance assurance measures to resolve federal Clean Water Act claims stemming from oily bilge discharges from the commercial fishing vessel Challenge, and a related fuel oil discharge in August 2017 in New Bedford Harbor, Massachusetts, the Department of Justice and the Coast Guard announced today. 

In its complaint filed today, along with the lodging of a consent decree in the U.S. District Court for the District of Massachusetts, the United States alleges that the companies and individuals are liable for violations of the Clean Water Act related to the Challenge’s operations in New Bedford Harbor and in coastal waters off of southeastern New England. The complaint addresses discharges of oily bilge waste from the vessel while in port and at sea harvesting scallops, and the release of approximately 100 barrels (4,200 gallons)  of fuel oil in connection with the illegal overboard pumping of oily bilge water in August 2017. The complaint also includes a Clean Water Act claim for violations of the Coast Guard’s spill prevention and pollution control regulation related to the failure to provide sufficient capacity to retain all oily bilge water onboard the vessel. The complaint alleges that the defendants discharged engine room bilge, which contains a mixture of fuel, lubricating oils, water, and other wastes, into the ocean and New Bedford Harbor rather than retain the waste onboard. The complaint further alleges these illegal discharges were the result of willful misconduct and were done to extend the duration of the fishing voyages. The United States seeks civil penalties and injunctive relief to deter future violations by the defendants and others in the industry.

In addition to payment of the civil penalties, the consent decree requires corrective measures across the defendants’ fleet of five New Bedford-based fishing vessels. The defendants will be required, among other things, to repair the vessels to reduce the generation of oily bilge water, operate within the vessels’ capacity to retain oily bilge for the full length of planned voyages, provide crew and management training on the proper handling of oily wastes,  document all oil and oily waste transfers on and off of the vessels, including documenting proper disposal of engine room bilge water at a shore reception facility, and submit compliance reports to the government.

“Today’s action sends a clear message to the commercial fishing fleet that Clean Water Act compliance must be a non-negotiable part of operations,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “We appreciate our partners at the U.S. Coast Guard for their diligent investigation and referral of these violations.” 

“Discharges of fuel and oily bilge wastes into our nation’s waters have long been prohibited and will not be condoned,” said Captain Richard J. Schultz, Commander of the Coast Guard’s Sector Southeastern New England. “These defendants will pay significant penalties and conduct fleet-wide corrective measures for their discharges of oil into New Bedford Harbor and the ocean.”

“This enforcement action will help protect people and the environment in and around New Bedford Harbor from the effects of oil pollution, and other fishing vessel owners and operators should take note,” said Andrew E. Lelling, U.S. Attorney for the District of Massachusetts.

Section 311(b) of the Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the waters of the United States or adjoining shorelines in quantities that may be harmful to the environment or public health. Under the Act, the Coast Guard also has promulgated spill prevention and pollution control regulations for vessels and other facilities. Overboard discharges of oily mixtures, whether by directly pumping out oily bilge water that has not been properly treated, or by attempting to pump only the portion of oily bilge water beneath a floating oil layer in the bilge (so-called “decanting”), has long been unlawful under federal law.

The penalty paid for these discharges and the related pollution prevention violations will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances to waters of the United States or adjoining shorelines.

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

The Justice Department today reached a settlement under the Americans with Disabilities Act (ADA) with Coconino County, Arizona, to make the County’s polling places accessible to individuals with mobility and vision impairments.  

The Department’s survey identified architectural barriers at County polling places, including inaccessible parking, ramps that were too steep, and doors that were too narrow.  Under the ADA, counties that conduct local, state, or federal elections may not select polling places that are inaccessible during elections to individuals with disabilities.  Coconino County is the Country’s second largest county, covering more than 18,000 square miles, and is also home to the Grand Canyon.  The County includes parts of the Navajo, Hualapai, Hopi, Havasupai, and Kaibab Indian reservations, and more than one dozen County polling places are located on Indian reservations.

Under the terms of the agreement, Coconino County will start remediating polling places in time for its next election and will ensure that all of its polling places are accessible during elections to people with disabilities by no later than the November 2020 election.  To make polling places accessible, the County will employ temporary measures such as portable ramps, signage, and propped open doors, and permanent changes such as paved parking.  In addition, the County will train its poll workers on ADA requirements and on how to use temporary measures to ensure each polling place is accessible during elections. Furthermore, the County will survey polling locations for accessibility and maintain the accessibility of each polling place.  When selecting future polling places, the agreement requires the County to select locations that will be accessible during elections.  The Department will monitor the County’s compliance with the agreement and provide the County with technical assistance as appropriate. 

“Through this settlement, Coconino County will ensure that its polling places are accessible to voters with disabilities, including those living in Indian Country, so that they have an equal opportunity to participate in elections,” said Acting Assistant Attorney General John Gore for the Civil Rights Division.  “We applaud the County’s commitment to guaranteeing equal access to the polls.” 

This settlement is part of the Department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities.  A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places.  Through this Initiative, the Department has surveyed more than 1,500 polling places and increased polling place accessibility in more than 35 jurisdictions, including Chicago; Richland County, South Carolina; and Dauphin County, Pennsylvania.

For more information about the ADA and today’s agreement, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).

Federal District Court Judge Steve C. Jones today sentenced Trevor King, 50, a former sergeant with the Atlanta Police Department to five years in prison for using excessive force when he arrested a Walmart shopper who the officer wrongfully suspected of shoplifting a tomato and for writing a false report about the incident in an effort to cover up his crime. King was convicted on Dec. 8, 2017, following a jury trial. Acting Assistant Attorney General John Gore, U.S. Attorney Byung J. “BJay” Pak, and David J. LeValley, Special Agent in Charge of FBI Atlanta made the announcement.

“The defendant abused his authority as a police sergeant when he used a baton to brutally assault an innocent man and wrote a false report to cover up his crime,” said Acting Assistant Attorney General John Gore for the Civil Rights Division. “This sentence reflects the Department’s commitment to prosecuting official misconduct cases and sends a strong message that any abuse of power will not be tolerated.”

“King was punished today for willfully violating the Constitution by misusing his power to violently assault and injure an innocent man,” said U. S. Attorney Byung J. “BJay” Pak. “To make matters worse, he wrote a false incident report in an attempt to make the victim sound like the aggressor.  King’s egregious misconduct is an affront to law enforcement officers who serve honorably and uphold their oath of office with integrity.”

“It is our duty in the FBI to uphold our Constitution and laws, which prohibit law enforcement officers from willfully using excessive force against non-resistant subjects,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “Sgt. King should have respected his authority, like the vast majority of his fellow law enforcement officers who serve and protect.”

According to evidence presented during King’s trial, on the evening of Oct. 13, 2014, the victim, Tyrone Carnegay, was grocery shopping at a downtown Atlanta Walmart store. After purchasing groceries, Carnegay returned to the produce aisle to weigh a tomato for which he believed he had been overcharged. Former Sergeant King saw Carnegay on the store’s security monitor weighing the tomato, and then walking out of the store after placing the tomato back into a bag.  Suspecting that Carnegay was stealing the tomato, King withdrew his asp baton and stopped Carnegay at the store’s exit door. Within seconds of the stop, King began to strike Carnegay on his legs with the metal baton. After several blows, Carnegay fell to the floor. As he lay on the floor, King delivered a final baton strike, causing a compound fracture to Carnegay’s leg. After the assault, King found a receipt in Carnegay’s pocket for the groceries he had purchased, including the tomato.

King charged Carnegay with misdemeanor offenses for allegedly assaulting and obstructing a police officer, and authored a false police report justifying the beating.  In that report, King claimed that Carnegay had attempted to push past King and had reached for King’s gun belt before King delivered any baton strikes.

Following surgery for his broken leg, Carnegay was transported from the hospital to Fulton County Jail, where he was held for several days before being released.  The Fulton County District Attorney’s Office later dismissed the charges against him.

When King is released from prison, he will be under federal supervision for three years. 

This case was investigated by the Atlanta Division of the Federal Bureau of Investigation, and was prosecuted by Assistant United States Attorney Brent Alan Gray and Trial Attorney Sanjay Patel of the Civil Rights Division.