District Not Recorded

Americans nationwide did their part to drop off a record number of unused, unwanted or expired prescription medications during the DEA’s 15th National Prescription Drug Take Back Day, at close to 6,000 sites across the country. Together with a record-setting amount of local, state and federal partners, DEA collected and destroyed close to one million pounds—nearly 475 tons—of potentially dangerous expired, unused, and unwanted prescription drugs, making it the most successful event in DEA history.

This brings the total amount of prescription drugs collected by DEA since the fall of 2010 to 9,964,714 pounds, or 4,982 tons.

“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions.  “An unprecedented crisis like this one demands an unprecedented response--and that's why President Trump has made this issue a priority for this administration. DEA's National Drug Take Back Days are important opportunities for people to turn in unwanted and potentially addictive drugs with no questions asked. These Take Back Days continue to break records, with the latest taking nearly 1 million pounds of prescription drugs off of our streets. And so I want to thank DEA and especially every American who participated in this event. I have no doubt it will help keep drugs out of the wrong hands and stop the spread of addiction."

“National Prescription Drug Take Back Day is a day for every American, in every community across the country, to come together and do his or her part to fight the opioid crisis – simply by disposing of unwanted prescription medications from their medicine cabinets,” said DEA Acting Administrator Robert W. Patterson. “This event – our 15th – brings us together with local, state and federal partners to fight the abuse of prescription drugs that is fueling the nation’s opioid epidemic.”

Now in its 9th year, National Prescription Drug Take Back Day events continue to remove ever-higher amounts of opioids and other medicines from the nation’s homes, where they could be stolen and abused by family members and visitors, including children and teens.

This initiative addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that a majority of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.

DEA launched its prescription drug take back program when both the Environmental Protection Agency and the Food and Drug Administration advised the public that their usual methods for disposing of unused medicines—flushing them down the toilet or throwing them in the trash—posed potential safety and health hazards.

Helping people to dispose of potentially harmful prescription drugs is just one way DEA is working to reduce the addiction and overdose deaths plaguing this country due to opioid medications.

Complete results for DEA’s fall Take Back Day are available at www.deatakeback.com. DEA’s next Prescription Drug Take Back Day is October 27, 2018.

A federal grand jury sitting in Denver, Colorado has returned an indictment, which was unsealed yesterday, charging an Arvada, Colorado resident with failure to pay over payroll taxes to the Internal Revenue Service (IRS) and filing false corporate tax returns, announced Principal Deputy Assistant Attorney Richard E. Zuckerman of the Justice Department’s Tax Division.  

According to the indictment, Marlene Seo owned and operated National Martial Arts Academy.   From 2011 through 2013, Seo allegedly directed deposits of income from her martial arts school into bank accounts that she did not disclose to her bookkeeper and accountants, which resulted in her underreporting the business’s gross receipts on corporate tax returns for tax years 2011, 2012, and 2013.

The indictment further alleges that from 2012 through June 2014 Seo failed to pay the IRS payroll taxes that she withheld from employees’ paychecks, despite her obligation to do so.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Anahi Cortada and Lisa L. Bellamy, who are prosecuting the case.

A Brooklyn, New York, resident pleaded guilty today to conspiracy to defraud the government and theft of public funds, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. 

According to court documents, Akim Martin, also known as Akim Davis, 41, conspired with others to file fraudulent tax returns for companies and individual taxpayers.  As part of the scheme, from March 2009 through March 2013, Martin and his coconspirators filed false tax returns in the names of businesses they purportedly owned and operated, claiming phony deductions for wages paid to employees that did not exist.  Martin and his conspirators, in turn, then filed fraudulent tax returns in the names of the employees claiming bogus tax refunds.

Martin and his conspirators obtained the personal identifying information (PII) to use on the employees’ false tax returns by stealing it and by recruiting individuals to provide their information in exchange for a cut of the proceeds.  Martin cashed and deposited fraudulently obtained refund checks into bank accounts that he controlled and spent the money on his personal expenses.  Martin’s conduct resulted in a loss exceeding $550,000. 

Sentencing is scheduled for August 24, 2018, before U.S. District Court Judge Carol Bagley Amon.  Martin faces a statutory maximum sentence of 15 years in prison.  He also faces 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 Jason M. Scheff and Ann M. Cherry, who are prosecuting these cases. 

The Drug Enforcement Administration today announced the issuance of an Immediate Suspension Order served on Morris & Dickson Company, a wholesale pharmaceutical distributor, located in Shreveport, Louisiana.

Morris & Dickson Company has been the subject of a DEA investigation that alleges that this distribution center failed to properly identify large suspicious orders for controlled substances sold to independent pharmacies with questionable need for the drugs. The investigation, which focused primarily on purchases of Oxycodone and Hydrocodone, revealed that in some cases, pharmacies were allowed to purchase as much as six times the quantity of narcotics the pharmacy would normally order.  In spite of regulations which require distributors to identify such orders, DEA alleges that Morris & Dickson Company failed to identify these large suspicious orders resulting in millions of dosage units of Oxycodone and Hydrocodone being distributed in violation of the law. 

"Opioid distributors have a legal obligation not to facilitate the illicit diversion of drugs," said Attorney General Jeff Sessions. "That obligation has never been more important than it is right now as we face the deadliest drug crisis in American history. According to the allegations, many large suspicious orders for opioids were made, filled, and unreported by Morris and Dickson. We can only imagine how many pills were diverted, abused, and how many addictions began as a result. Today's suspension will help us achieve the President's goals of reducing opioid prescriptions in the United States and stopping the spread of addiction. I want to thank the DEA for their vigilance, for all of their hard work. The Justice Department will continue to use suspensions, deregistrations, and every other tool we have to stop the drug epidemic."

“Distributors have an obligation to ensure that all pharmaceutical controlled substances their customers order are for legitimate use, and it is their duty to identify, recognize and report suspicious orders to DEA,” said DEA Acting Administrator Robert W. Patterson. “This is another reminder that DEA will hold accountable those companies who choose to operate outside the law.”

In October 2017, DEA became aware of the high-volume sales of Oxycodone and Hydrocodone from Morris & Dickson Company to five of the top ten purchasing pharmacies within the state of Louisiana.   DEA records indicated that Morris & Dickson Company had not filed any suspicious order reports on any of the pharmacies in question in Louisiana. A review of the purchases made by these high-volume independent pharmacies showed that these pharmacies were purchasing quantities which were not indicative of the pharmaceutical market. Not only were numerous “independent” retail pharmacies purchasing more Oxycodone and Hydrocodone than the largest chain pharmacies operating within the state, they were purchasing more narcotics than several of the largest chain pharmacies combined within the same zip code. In some instances, DEA noted these “independent” pharmacies were purchasing more than ten times the amount of narcotics the average Louisiana pharmacy purchased per month.

DEA’s actions today suspend the DEA Certificate of Registration issued to Morris & Dickson Company as a drug distributor pursuant to Title 21, United States Code, Sections 823 and 824. The DEA’s investigation of Morris & Dickson Company determined that the continued registration of this company constitutes a substantial likelihood of imminent danger to public health and safety. This action only applies to the distribution of controlled substances and will not affect non-controlled pharmaceutical drugs distributed by the company.

Morris & Dickson Company received written notice of the factual and legal basis for this action.  In addition, they will be given the opportunity for an administrative hearing within the next 60 days.  After the hearing, the DEA Acting Administrator will make a final decision on whether Morris & Dickson Company’s registration should be permanently revoked. This decision will be published in the Federal Register. 

Today, more than four million Americans are addicted to prescription painkillers, including a quarter million adolescents. Sadly, drug overdoses are now the leading cause of injury death in the United States, more than deaths from motor vehicle crashes or deaths from firearms. Parents and children are encouraged to educate themselves about the dangers of drugs by visiting DEA’s interactive websites at www.JustThinkTwice.com, www.GetSmartAboutDrugs.com and www.dea.gov. 

Today, William Sheldon was sentenced in federal district court in Portland, Maine, to six months in prison followed by three years supervised release for trafficking juvenile American eels, also called “elvers” or “glass eels,” in violation of the Lacey Act, announced Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. 

Sheldon was also ordered to pay a fine of $10,000, forfeit $33,200 in lieu of a truck he used during the crime, and may not possess a license to purchase or export elvers as a special condition of his supervised release. Also sentenced today for elver trafficking offenses was Timothy Lewis, who received a sentence of six months in prison followed by three years supervised release, with the special condition that he too may not possess a license to purchase or export elvers. Lewis was also ordered to pay a $2500 fine. Thomas Reno was also sentenced today to one year probation.

In the factual statement accompanying his guilty plea in October 2017, Sheldon, a licensed Maine elver dealer, admitted to trafficking nearly $550,000 worth of illegal elvers, and to taking specific steps to evade law enforcement detection. Lewis admitted to trafficking nearly $500,000 worth of illegal elvers, and Reno admitted to trafficking over $100,000 worth of illegal elvers. 

“Today’s sentences establish that the United States will not tolerate interstate and international transactions involving illegally taken wildlife,” said Acting Assistant Attorney General Wood. “Despite their best efforts to evade law enforcement, these defendants were ultimately brought to justice, and we are very proud to have worked with our partners at the federal, state and local level to achieve this result.”   

“With today’s sentencings, the success of Operation Broken Glass continues,” said Acting Assistant Director Edward Grace for the U.S. Fish and Wildlife Service, Office of Law Enforcement. “By working with our partners, we are actively working to dismantle an international wildlife trafficking scheme that not only harms American eels, but U.S. business owners and others who rely on healthy ecosystems for both ecological and economical purposes. Together, we will continue to protect native wildlife and our national resources for the continuing benefit of the American people."  

These sentences were the result of “Operation Broken Glass,” a multi-jurisdiction United States Fish and Wildlife Service (USFWS) investigation into the illegal trafficking of American eels.  To date, the investigation has resulted in guilty pleas for twenty-one individuals whose combined conduct resulted in the illegal trafficking of more than $5 million worth of elvers.

Eels are highly valued in east Asia for human consumption.  Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels.  As a result, harvesters have turned to the American eel to fill the void resulting from the decreased number of Japanese and European eels.

American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents.  They then travel as larvae from the Sargasso to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver, and grow to adulthood in fresh water.  Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food.  Harvesters and exporters of American eels in the United States can sell elvers to east Asia for more than $2000 per pound.

Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but two states: Maine and South Carolina.  Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities. Operation Broken Glass targeted illegal elver poaching in states without open fisheries, and the subsequent illegal transport and export of those elvers.

Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, Massachusetts Division of Natural Resources, North Myrtle Beach, South Carolina Police Department, and the Atlantic States Marine Fisheries Commission.

The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller.

Five physicians of Redirections Treatment Advocates, LLC, an opioid addiction treatment practice with offices in Pennsylvania and West Virginia, have been indicted on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions, United States Attorney Scott W. Brady of  the Western District of Pennsylvania and United States Attorney William J. Powell of the Northern District of West Virginia announced today.  These indictments represent the latest in a series of charges filed since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.

The defendants named in the indictments are:

• Dr. Krishan Kumar Aggarwal, 73, of Moon Township, Pennsylvania, a contractor at RTA in Weirton, West Virginia;
• Dr. Madhu Aggarwal, 68, of Moon Township, Pennsylvania, a contractor at RTA in Bridgeville, Pennsylvania;
• Dr. Parth Bharill, 69, of Pittsburgh, Pennsylvania, a contractor at RTA in Morgantown, West Virginia;
• Dr. Cherian John, 65, of Coraopolis, Pennsylvania, a contractor at RTA in Weirton, West Virginia; and
• Dr. Michael Bummer, 38, of Sewickley, Pennsylvania, a contractor at RTA in Washington, Pennsylvania.

According to the indictments, Redirections Treatment Advocates, LLC, operates Suboxone clinics in several locations in western Pennsylvania and northern West Virginia.  The indictments allege that the defendants, working as contractors at various locations, created and distributed unlawful prescriptions for buprenorphine, known as Subutex and Suboxone, a drug that should be used to treat individuals with addiction.  The defendants are also charged with conspiracy to unlawfully distribute buprenorphine.  Finally, the defendants are charged with health care fraud for allegedly causing fraudulent claims to be submitted to Medicare or Medicaid for payments to cover the costs of the unlawfully prescribed buprenorphine.

“Today we are facing the worst drug crisis in American history, with one American dying of a drug overdose every nine minutes,” said Attorney General Jeff Sessions.  “It's incredible but true that some of our trusted medical professionals have chosen to violate their oaths and exploit this crisis for profit.  Last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud in places where the epidemic was at its worst-including Western Pennsylvania. These cases cut off the supply of drugs and stop fraudsters from exploiting vulnerable people. Our prosecutors began issuing indictments back in October, and today we bring even more charges against those who allegedly defrauded the taxpayer while diverting potentially addictive drugs. I want to thank our dedicated AUSAs Robert Cessar and Sarah Wagner, FBI, DEA, our U.S. Attorneys’ offices, FDA, the HHS and Veterans Affairs Inspectors General, IRS, our Postal Inspectors, and all of our state and local partners for their hard work on these cases."

“Expanding the legitimate use of medication to treat addiction is a critical part of this Administration’s multi-faceted approach to combat the opioid epidemic ravaging our communities,” stated U.S. Attorney Brady.  “Yet another vital component is the prosecution of unscrupulous practitioners who abuse their privilege to practice medicine and dispense prescriptions unlawfully.  These indictments demonstrate that we remain vigilant in our pursuit of physicians who ignore their oath to do no harm.”

“We remain unwavering in our efforts to combat those who violate drug laws and thereby contribute to the crisis of addiction.  I have made clear that a medical degree provides you no protection from prosecution.  We will persevere,” added U.S. Attorney Powell.

For each of the defendants, the law provide a maximum sentence of 10 years in prison and a fine of $250,000 for each of the counts charging unlawfully dispensing Schedule III controlled substances;  a maximum sentence of 10 years imprisonment and a fine of $1 million for each of the counts charging conspiracy to unlawfully dispense a Schedule III controlled substance; and a maximum sentence of 10 years imprisonment and a fine of $250,000 for each of the counts charging health care fraud.  Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.

Assistant United States Attorney Robert S. Cessar of the Western District of Pennsylvania and Assistant United States Attorney Sarah E. Wagner of the Northern District of West Virginia are prosecuting these cases on behalf of the United States. 

The investigation leading to these indictments was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service - Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office - Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs - Office of Inspector General, Food and Drug Administration - Office of  Criminal Investigations and the Pennsylvania Bureau of Licensing, and the U.S. Department of Justice - Criminal Division’s Fraud Section’s Health Care Fraud Unit assisted in the investigation. 

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

A federal court in Charleston, South Carolina permanently enjoined Jacqueline Lowndes from preparing federal tax returns for others. The court also ordered Lowndes to mail a copy of the injunction order to all customers for whom she prepared a return for tax years 2012 through 2016. Lowndes agreed to the civil injunction order entered against her.

According to the complaint, Lowndes prepared federal income tax returns for customers that reported false, improper or inflated deductions which understated the customers’ income tax liabilities and increased their refunds.  Lowndes also allegedly falsely claimed the Earned Income Tax Credit on behalf of customers who did not qualify for the credit by exaggerating the customers’ losses and expenses, falsely claiming dependents for customers, and falsely changing the filing status of customers. Returns prepared by Lowndes underreported tax liabilities or overstated tax refunds by over $600,000, according to the complaint.

Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2018 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers. 

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

A Scottsdale, Arizona man, who formerly resided in Pagosa Springs, Colorado, pleaded guilty today in the U.S. District Court for the District of Colorado to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents, William Whittington, 68, filed a false 2010 individual income tax return, on which he underreported his income by more than $390,000.  From 2010 to 2012, Whittington directed that the Springs Resort & Spa, in Pagosa Springs, Colorado, a business run by him and members of his family, pay many of his personal expenses, which for these years resulted him underreporting his income by more than $900,000 and not paying more than $360,000 in taxes.

Additionally, from 2003 to 2010, Whittington used two offshore bank accounts in Liechtenstein to generate approximately $9.7 million in investment income.  Whittington did not pay taxes on this income, resulting in a tax loss of at least $1.5 million.  In total, Whittington did not pay at least $1.8 million in taxes owed to the Internal Revenue Service.

Sentencing is scheduled for October 9, 2018.  In addition to a prison sentence, Whittington faces 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 Lori A. Hendrickson, Kathleen M. Barry and Sarah A. Kiewlicz, who are prosecuting the case.

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

Today, Attorney General Jeff Sessions announced that the Department of Justice will return over $11 million from a settlement with Toyobo Co. Ltd. and Toyobo America, Inc. (collectively Toyobo), companies that produced the fiber used in bulletproof vests that the Department alleged were defective, to help purchase approximately 18,700 additional bullet-resistant vests for law enforcement officers through the Bulletproof Vest Partnership (BVP) Program. 

“Bulletproof vests are sometimes all that stands between a police officer and death,” Attorney General Sessions said.  “Having just come from this year’s Blue Mass, I am more determined than ever to get effective vests to officers who need them. Companies who have sold us faulty or defective vests should compensate us so that we can get our officers the vests they need. That’s why this Department of Justice will give these settlement funds to those who deserve them: the men and women in blue.”

Since 2007, the body armor industry has paid the United States more than $132 million to resolve alleged violations of the False Claims Act by knowingly manufacturing and selling defective bulletproof vests containing Zylon.  The most recent and largest recovery was from Toyobo, the company which manufactured the Zylon fiber and promoted its use as a ballistic material, which paid $66 million to resolve its potential liability.  The United States is proceeding against the two remaining participants in the fraudulent Zylon scheme: Richard C. Davis, the former President of Second Chance Body Armor, Inc., and Honeywell International, Inc.  Mr. Davis’ trial is scheduled for June 2018. 

The BVP Program, administered by the Office of Justice Programs' (OJP) Bureau of Justice Assistance (BJA), protects the lives of law enforcement officers by helping state, local, and tribal governments equip their law enforcement officers with bullet-resistant vests. Since 1999, over 13,100 jurisdictions have participated in the BVP Program, with more than $447.7 million in federal funds used to support the purchase of more than 1,294,000 vests.

BVP funding covers 50 percent of total vest costs for rural law enforcement agencies with community populations of fewer than 100,000 residents. For larger jurisdictions, the program provides up to 50 percent of funding, depending on the annual appropriation from Congress and the amount of funds requested by the rural jurisdictions that apply.

“Marketing faulty protective gear to law enforcement officers who put themselves in the line of fire is an unconscionable act and a betrayal of trust” said BJA Director Jon Adler.  “This settlement and the Attorney General’s laudable decision to allocate these funds to the BVP program represent the Justice Department’s strong commitment to officer safety.  Our unwavering priority is to protect our officers as they keep our communities safe.”

BVP funds may be used to purchase only vests that meet the minimum performance standards established by OJP's National Institute of Justice (NIJ) Ballistic Resistance of Body Armor Standard. The NIJ Standard, updated in July 2008, establishes minimum performance requirements and test methods for the ballistic resistance of personal body armor designed to protect the torso against gunfire.

According to the International Association of Chiefs of Police/DuPont Kevlar Survivors' Club, since 1987, there have been over 3,000 recorded cases where individuals working in law enforcement have survived both ballistic and non-ballistic incidents because they were wearing body armor.

In 2010, the Department of Justice returned to the BVP Program $11 million from earlier settlements with other participants involved in the manufacture and sale of Zylon vests.  Today’s payment brings the total returned to the BVP Program to more than $22 million, and ensures that the BVP Program has been fully compensated for its losses in supporting law enforcement agencies’ purchases of allegedly defective Zylon vests. 

For additional information about the BVP Program and the NIJ Ballistic Resistance of Body Armor Standard visit: https://ojp.gov/bvpbasi/.

A federal grand jury has returned a superseding indictment, which was unsealed today, charging a Maryland man and woman with multiple federal crimes stemming from their involvement in stolen identity refund fraud (SIRF), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur.

Devell Lincoln and Stephanie Twyman were each charged with conspiracy to commit theft of public money, theft of public money, and aggravated identity theft.

According to the superseding indictment, Lincoln and Twyman and others conspired to file false federal income tax returns with the Internal Revenue Service (IRS) for the purpose of obtaining tax refunds to which they were not entitled.  The superseding indictment alleges that the false tax returns were filed using names and Social Security numbers of unwitting taxpayers, but listed addresses that were controlled by a co-conspirator to which the IRS would mail the fraudulent refund checks.

The superseding indictment further charges that Twyman arranged for co-conspirators, including Lincoln, to cash the fraudulently obtained tax refund checks at a check cashing business in Clinton, Maryland.  In total, the conspirators are alleged to have obtained from the IRS over $500,000 in fraudulent refunds.

If convicted, the defendants face a statutory maximum sentence of five years in prison on the conspiracy count, 10 years in prison on each theft of public money count, plus an additional mandatory two years in prison on the aggravated identity theft counts.  The defendants also face a period of supervised release, restitution and monetary penalties.  An indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked special agents of IRS Criminal Investigation and the U.S. Treasury Inspector General for Tax Administration, who investigated the case and Assistant U.S. Attorney Michael Packard and Tax Division Trial Attorney William Guappone, who are prosecuting the case.

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

Attorney General Jeff Sessions today announced the dedication of additional prosecutors to handle the prosecutions of improper entry, illegal reentry, and alien smuggling cases, and additional immigration judges to handle the adjudication of immigration court cases that result from the crisis at the Southwest border.

Thirty-five new Assistant United States Attorney (AUSA) positions have been allocated to U.S. Attorney’s Offices along the Southwest border. The breakdown of those positions is as follows:

• Southern District of Texas:                   Eight (8);
• Southern District of California:             Eight (8);
• Western District of Texas:                     Seven (7);
• District of Arizona:                               Six (6); and,
• District of New Mexico:                        Six (6).

“The American people made very clear their desire to secure our borders and prioritize the public safety and national security of our homeland,” said Attorney General Jeff Sessions. “Promoting and enforcing the rule of law is essential to our republic. By deploying these additional resources to the Southwest border, the Justice Department and the Trump Administration take yet another step in protecting our nation, its borders, and its citizens. It must be clear that there is no right to demand entry without justification.”

Due to a recent increase in the number of apprehensions at the Southwest border, the new AUSA positions announced today will assist in the prosecutions of illegal reentry (8 U.S.C. § 1326), alien smuggling (8 U.S.C. § 1324), and  improper entry (8 U.S.C. § 1325) pursuant to the Justice Department’s “Zero-Tolerance Policy” announced by Attorney General Sessions on April 6, 2018 and its prior April 11, 2017 directive to AUSAs to prioritize charging immigration offenses.

In addition to the new AUSA positions, Attorney General Sessions and Executive Office for Immigration Review (EOIR) Director James McHenry announced the utilization of 18 current supervisory immigration judges to adjudicate cases in immigration courts near the southwest border. The supervisory immigration judges will hear cases in-person and use video teleconferencing (VTC) to handle cases at immigration courts and represent a roughly 50 percent increase in the current number of immigration judges:

• Eloy (AZ) Immigration Court;
• Florence (AZ) Immigration Court;
• Adelanto (CA) Immigration Court;
• Imperial (CA) Immigration Court;
• Otay Mesa (CA) Immigration Court;
• Otero (NM) Immigration Court;
• El Paso (TX) Service Processing Center;
• Harlingen (TX) Immigration Court;
• Pearsall (TX) Immigration Court; and
• Port Isabel (TX) Immigration Court.

“The Justice Department, under Attorney General Jeff Sessions, has made significant reforms and progress in tackling the overwhelming backlog in the immigration court system,” said EOIR Director James McHenry. “We must not let attempts to undermine our lawful immigration system deter that progress, and the men and women at EOIR are proud to play a small role in the Attorney General’s response to the crisis at our Southwest border.”

Between March and September 2017, EOIR mobilized over one hundred immigration judges to Department of Homeland Security detention facilities across the country, including along the Southwest border. In October, EOIR projected that the mobilized immigration judges—hearing both in-person and VTC cases—completed approximately 2,700 more cases than expected if the immigration judges had not been detailed. 

A former Salisbury, Maryland chiropractor was sentenced today to 15 months in prison for filing fraudulent income tax returns and attempting 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 Robert K. Hur for the District of Maryland.

According to the evidence presented in court, Dr. Warren Gregory Belcher, 60, operated a chiropractic business for nearly 20 years.  During that time, he received income for chiropractic services from insurance companies, patients and other third parties, including another chiropractor in Baltimore.  From 2009 through 2015, Belcher filed individual income tax returns that fraudulently claimed that he had earned no business income, when, in fact, the evidence at trial established that he received total payments of more than $350,000 during that time period.  Belcher filed his false 2015 tax return after being notified that he was the target of a federal grand jury investigation.  He filed an additional false tax return for 2016 while under indictment and awaiting trial.

The evidence introduced at trial included dozens of letters that Belcher sent to insurance companies and other third parties in which he threatened that the companies could be subject to civil and criminal penalties for reporting to the Internal Revenue Service (IRS) payments they made to him for his services.  Belcher also made threatening statements to an accountant to prevent the accountant from reporting his income to the government.  Belcher himself also submitted fraudulent forms to the IRS in an effort to falsely represent that companies that had reported his income to the IRS had not actually paid him that income. 

For the years 2009 and 2011, the IRS mailed Belcher notices informing him that his returns underreported his income.  The IRS also assessed additional taxes and penalties against Belcher for his fraudulent returns, including a $5,000 penalty for filing a frivolous tax return.   Belcher responded to these IRS notices by sending letters to the IRS asserting that the IRS was violating the law by assessing and collecting his taxes. 

In addition to the term of imprisonment, U.S. District Judge Richard D. Bennett ordered Belcher to pay restitution to the IRS in the amount of $63,763.58and serve one year of supervised release. 

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Sean R. Delaney and Tax Division Trial Attorney Melissa S. Siskind, who prosecuted the case. 

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

The Department of Justice today filed criminal charges against eleven different suspected members of the so-called “caravan” in the United States District Court for the Southern District of California, announced Attorney General Jeff Sessions and U.S. Attorney for the Southern District of California Adam Braverman. All defendants are alleged to have illegally entered the country in violation of 8 U.S.C § 1325, and one defendant is also alleged to have been previously deported and was charged with 8 U.S.C § 1326 (illegal reentry).

“When respect for the rule of law diminishes, so too does our ability to protect our great nation, its borders, and its citizens,” said Attorney General Jeff Sessions. “The United States will not stand by as our immigration laws are ignored and our nation’s safety is jeopardized. U.S. Attorney Adam Braverman and his team should be commended for quickly filing illegal entry charges for individuals apprehended along the southwestern border. We will continue to work with our partners in each U.S. Attorney’s Offices to aggressively pursue prosecutions of criminal illegal entry.”

“The American Dream has beckoned immigrants from across the globe because of the promise that prosperity and success are within reach for all,” said United States Attorney for the Southern District of California Adam L. Braverman. “Those immigrants have contributed their voices and perspectives to make up our uniquely American experience. But the foundation for the American Dream, and what allows our democracy to flourish, is commitment to the rule of law.  These eleven defendants face charges now because they believed themselves to be above the law. Those seeking entry into the United States must pledge fidelity to the law, not break them, or else face criminal prosecution.”

According to the complaints, defendants were apprehended by Border Patrol in the following areas known as: Goat Canyon, 35 Draw, Eucci Grove, and W-8. Goat Canyon, 35 Draw, and Eucci Grove are approximately four miles west of the San Ysidro, California Port of Entry, and W-8 is approximately two miles west of San Ysidro.

The complaints allege that the defendants knowingly and willingly entered into the United States at a time and place other than as designated by Immigration Officers, and eluded examination and inspection by Immigration Officers.

A complaint contains allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

Today, the U.S. District Court for the District of Columbia entered a consent order requiring the country’s major cigarette companies to begin posting “corrective statements” on their websites starting on Monday, June 18. The order, part of a long-running lawsuit against the cigarette companies, also requires them to attach the same statements to cigarette packages for two weeks at a time, for a total of twelve weeks over two years. The order will also apply to any social media campaigns by the companies to promote cigarettes.

The statements address the effects of cigarette smoking and the fact that cigarettes are deliberately designed to create and sustain addiction. As a result of a previous court order, the statements are currently running on television five times per week, and previously ran as full-page ads in about fifty newspapers across the country. The statements specifically state, among other things: 

• That smoking cigarettes causes numerous diseases and on average 1,200 American deaths every day;
• That the nicotine in cigarettes is highly addictive and that cigarettes have been designed to create and sustain addiction;
• That so-called light, low-tar, and natural cigarettes are just as harmful as regular cigarettes; and
• That secondhand smoke causes disease and death in people who do not smoke.

The corrective statements were ordered as part of a 2006 permanent injunction against cigarette companies, including Altria, its Philip Morris USA subsidiary, and R.J. Reynolds Tobacco, to “prevent and restrain” further deception of the American people regarding tobacco use. The order also applies to ITG Brands, which purchased Winston, Kool, and other cigarettes brands from companies in the case. 

Numerous Justice Department attorneys have played a role in this case over the years. In the most recent phase of the litigation, the United States was represented by Trial Attorneys Daniel K. Crane-Hirsch and John (Josh) Burke of the Justice Department’s Consumer Protection Branch, and Linda McMahon of the Commercial Litigation Branch.

Six public health organizations – the American Cancer Society, American Heart Association, American Lung Association, Americans for Nonsmokers’ Rights, National African American Tobacco Prevention Network and the Tobacco-Free Kids Action Fund – joined the Department of Justice case as intervenors in 2005.

Anthony Shelton, 20, and Cameron Ajiduah, 19, were sentenced today to 20 and 15 years in prison, respectively, for assaulting a man because of the victim’s sexual orientation, in violation of 18 U.S.C. § 249, announced the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the Eastern District of Texas, and the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives’ Dallas Division.

According to the plea agreements, Shelton and Ajiduah both admitted that they and another defendant, Nigel Garrett, used Grindr, a social media dating platform for gay men, to arrange to meet the victim at his home. Upon entering the victim’s home, the defendants restrained the victim with tape, physically assaulted him, and made derogatory statements about the victim’s sexual orientation.  The defendants brandished a firearm during the home invasion, and they stole the victim’s property, including his motor vehicle.

A federal grand jury previously had returned an eighteen-count superseding indictment that included charges for hate crimes, kidnappings, carjackings, and the use of firearms to commit violent crimes. The indictment also charged Shelton, Ajiduah, along with other defendants, Nigel Garrett and Chancler Encalade, with conspiring to cause bodily injury because of their victims’ sexual orientation during home invasions in Plano, Frisco, and Aubrey, Texas, from Jan. 17 to Feb. 7, 2017. All four defendants subsequently pleaded guilty to hate crime charges from this indictment, and admitted that they targeted victims because of their sexual orientation. Earlier this year, Garrett was sentenced to 15 years in prison, and Encalade was recently sentenced to 10 years in prison.   

“The Department of Justice will not tolerate any act of violence targeting individuals based on their sexual orientation, gender identity, race, color, religion, disability, or national origin,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Department will continue to investigate and prosecute hate crimes cases.”

“This case highlights the danger of the internet and specifically, online apps,” said U.S. Attorney Joseph D. Brown for the Eastern District of Texas.  “In this case, the defendants misused the internet for sinister purposes in order to target an innocent man based on his sexual orientation, causing him bodily harm and damage to his property.”

The investigation was conducted by the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Plano Police Department, and the Frisco Police Department.  The case was prosecuted by Assistant U.S. Attorney Tracey Batson of the U.S. Attorney’s Office for the Eastern District of Texas and Trial Attorney Saeed Mody of the Civil Rights Division.

Today, at the Supreme Court of Puerto Rico, Justice Edgardo Rivera García gave the keynote address to 29 judges from Costa Rica, the Dominican Republic, Guatemala, Haiti, Honduras, Mexico, Panama and Peru in San Juan, Puerto Rico as part of the Judicial Studies Institute (JSI) training program, a collaborative effort between the Department of Justice and Department of State to build the capacity of the judiciaries of the Western Hemisphere. 

As a frequent contributor to the JSI program, Justice Rivera García stressed the importance of the judges’ contribution to rule of law in the hemisphere and lauded them for their role in the transformation of Latin American justice.   

With the support of U.S. Supreme Court Justice Sonia Sotomayor, and in partnership with the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, the Department of Justice’s Office of Prosecutorial Development Assistance and Training (OPDAT) launched JSI in 2012 as a response to the wave of justice sector reforms in Latin America that saw many countries transition to an adversarial system.

Through instruction conducted in Spanish, practical exercises, and observations of courtroom proceedings, the JSI program provides judges with an opportunity to enhance their understanding of the fundamental principles, benefits, and challenges of the adversarial system.  This capacity building is critical to the region as the judge’s role in the adversarial system is different from that in the inquisitorial system.  In the inquisitorial system, the judge is actively involved in investigating the facts of the case, whereas in the adversarial system, the role of the judge is primarily that of an impartial referee between the prosecution and the defense.

Throughout 2018, judges from 10 Latin American countries will participate in JSI courses covering topics such as the development of rules of evidence, proportionality in sentencing, and opinion writing.  While each country’s transition to the adversarial system has been unique, the judges who have participated in the JSI program have displayed the same dedication to improving and strengthening the transparency and efficiency of their respective criminal justice systems. 

 “The Judicial Studies Institute’s work with Latin American judges as their justice systems transition to adversarial systems is pivotal to ensure the fair and effective administration of justice throughout the hemisphere, which in turn promotes security throughout the region,” said Faye S. Ehrenstamm, Director of OPDAT.  “This would not be possible without both the deep commitment of the judiciaries from participating countries and the tremendous contributions by the U.S. federal and state judiciaries.  OPDAT is proud to be associated with JSI and its many contributions to the region.”

Since 2012, JSI, with its partners at the University of Puerto Rico and Inter-American University law schools, has hosted over 700 Latin American judges from 12 countries.  The program continues to expand with the introduction of a mentoring component for JSI alumni in 2017, and new course offerings on special topics including digital and electronic evidence, opinion writing, and asset forfeiture added to the curriculum each year.   

Panasonic Avionics Corporation (PAC), a subsidiary of multinational electronics company Panasonic Corporation (Panasonic), has agreed to pay a $137.4 million criminal penalty to resolve charges arising out of a scheme to retain consultants for improper purposes and conceal payments to third-party sales agents, in violation of the accounting provisions of the Foreign Corrupt Practices Act (FCPA).

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and Acting Assistant Director Christopher Hacker of the FBI’s Criminal Investigative Division made the announcement.

“When Panasonic Avionics Corporation caused its publicly-traded parent company to falsify its books and records, it distorted the information available to legitimate investors,” said Acting Assistant Attorney General Cronan.  “The Criminal Division will take all appropriate action to ensure that the investing public is able to trust the accuracy of the financial statements of companies that avail themselves of American securities exchanges.”

“Enforcement of the Foreign Corrupt Practices Act is critical in maintaining a fair and competitive international market to which all businesses are entitled,” said Acting Assistant Director Hacker.  “Along with our federal partners and the Department of Justice, the FBI will continue to aggressively investigate violations of the Foreign Corrupt Practices Act.”

PAC, based in Lake Forest, California, designs and distributes in-flight entertainment systems and global communications services for airlines and airplane manufacturers.  According to admissions and court documents, PAC knowingly and willfully caused Panasonic to falsify its books and records with respect to PAC’s retention of consultants for improper purposes.  The consultants, which did little or no actual consulting work for PAC, were retained through a third-party service provider and were paid for out of a budget over which a senior PAC executive had complete control and discretion, without meaningful oversight by anyone at PAC or Panasonic.  One such individual was offered the consulting position by PAC at the time that he was employed by a state-owned airline and involved in negotiating a lucrative contract amendment on behalf of the airline with PAC.  According to court documents, that consultant was subsequently paid $875,000 by PAC over a six-year period and PAC earned over $92 million in profits from portions of the contract over which the consultant had some involvement or influence while employed with the airline.  PAC admitted that it mischaracterized these payments as “consultant payments” on its general ledger, which it knew caused Panasonic to incorrectly designate those payments as “selling and general administrative expenses” on Panasonic’s books, records, and accounts.

PAC also admitted that employees in its Asia region concealed PAC’s use of certain sales agents, which did not pass the Company’s internal diligence requirements.  According to admissions and court documents, PAC formally terminated its relationship with these sales agents, as required by its compliance policies, but PAC employees then secretly continued to use the agents by having them rehired as sub-agents of another company, which had passed PAC’s due diligence checks.  Through this process, PAC employees hid more than $7 million in payments to at least 13 sub-agents.

By mischaracterizing the payments made to consultants and sales agents and providing false or incomplete representations and Sarbanes-Oxley subcertifications to Panasonic about PAC’s financials and financial controls, PAC caused Panasonic to falsify its books, records, and accounts in violation of the FCPA.

PAC entered into a deferred prosecution agreement (DPA) in connection with a criminal information, filed today in the U.S. District Court for the District of Columbia, charging the company with one count of knowingly and willfully causing the falsification of the books, records, and accounts of its parent company Panasonic.  As part of the DPA, PAC will pay a total criminal penalty of $137,403,812.  PAC also agreed to continue to cooperate with the department’s investigation, enhance its compliance program, implement rigorous internal controls and retain an independent corporate compliance monitor for at least two years.

In a related proceeding, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against Panasonic, whereby the company agreed to pay approximately $143 million in disgorgement to the SEC, including prejudgment interest.  Thus, the combined total amount of U.S. criminal and regulatory penalties to be paid by Panasonic and PAC is over $280 million.

The Criminal Division’s Fraud Section reached this resolution based on a number of factors, including the fact that PAC did not timely voluntarily self-disclose the conduct, but did cooperate with the department’s investigation after receiving a request for documents from the SEC.  PAC received a 20 percent discount off the low end of the U.S. Sentencing Guidelines fine range because of its cooperation and remediation, which, although untimely in certain respects, did include causing several senior executives who were either involved in or aware of the misconduct to be separated from PAC or Panasonic.  Because many of the company’s compliance enhancements were more recent, and therefore have not been tested, the DPA imposes an independent compliance monitor for a term of two years, followed by an additional year of self-reporting to the department.

The case is being investigated by the FBI’s International Corruption Squad in Los Angeles.  Fraud Section Trial Attorneys Dennis R. Kihm and Jeremy R. Sanders prosecuted the case.  The Fraud Section appreciates the significant cooperation and assistance provided by the SEC in this matter.  The Criminal Division’s Office of International Affairs also provided assistance during the investigation.

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

A Reno, Nevada attorney was sentenced today to 25 months in prison for filing false federal income tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman and U.S. Attorney Dayle Elieson for the District of Nevada. 

Delmar Hardy was convicted, following a jury trial in September 2017, of filing false individual income tax returns for the years 2008, 2009 and 2010.

According to documents and evidence presented to the court, Hardy falsified his 2008 through 2010 returns by not reporting more than $400,000 in cash income his law practice received.  Hardy’s practice of not reporting cash dated back to at least 1999, which resulted in a total tax loss of more than $250,000.

In addition to the term of imprisonment, U.S. District Court Judge Miranda M. Du ordered Hardy to serve one year of supervised release and to pay a fine in the amount of $10,000.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Elieson thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney James E. Keller and Tax Division Trial Attorney Lee F. Langston, who prosecuted the case.

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

Acting Assistant Attorney General John Gore, U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida, and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, today announced federal charges against juvenile detention officer Antwan Lenard Johnson arising from his role in the August 2015 beating and death of a 17-year-old juvenile inmate (E.R.) at the Miami-Dade Regional Juvenile Detention Center (JDC) in Miami, Florida.

“The Justice Department will continue to aggressively prosecute corrections officers who exploit their position of power and violate the civil rights of individuals in their custody,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.

“The United States Constitution protects every person in this country, including those who are detained in juvenile detention facilities,” said U.S. Attorney Benjamin G. Greenberg. “It is an honor and privilege to work with the many outstanding agents and officers who are part of our law enforcement community. These brave individuals put their lives on the line every day to protect us all and make our communities safer. But we are committed to bringing to justice the small minority of law enforcement officials when they abuse their authority and violate the civil rights of another.”

“Violations of civil rights by government officials cannot be tolerated as it undermines the public’s trust,” said Robert F. Lasky, Special Agent in Charge, FBI Miami.  “The FBI is committed to working with our partners to safeguard the civil rights of all.”

Johnson, 35, of Miami-Dade County, was charged with conspiracy to violate E.R.’s civil rights under color of law, which resulted in E.R.’s death, in violation of Title 18, United States Code, Section 241; and deprivation of E.R.’s civil rights, under color of law, which resulted in bodily injury and E.R.’s death, in violation of Title 18, United States Code, Section 242. If convicted, Johnson faces a maximum statutory sentence of life in prison for each charge. 

E.R. was a 17-year-old juvenile who had been arrested and was subsequently taken to the JDC on Aug. 28, 2015.  He was being detained pending further order of the State Court and had not been convicted of the crime for which he had been arrested.

The indictment alleges that Johnson operated a commonly utilized bounty system in order to help ensure obedience and officer respect at the JDC.  Johnson encouraged and induced juvenile detainees, in exchange for rewards and privileges, to forcibly assault E.R.  In exchange for attacking E.R., Johnson rewarded the juveniles with extra recreational time and snacks. As a result of being held at the JDC, witnessing events at the facility, and in some cases being actual victims of the bounties, the juveniles were aware of the bounty culture.  They knew that they would not be punished or disciplined by Johnson, but in fact rewarded, if they followed his directives.

The indictment alleges that, on Aug. 30, 2015, Johnson worked in Module 9 at the JDC, during the 3:00 p.m. to 11:00 p.m. shift.  Based on E.R.’s statements and behavior during dinner at the JDC cafeteria, Johnson communicated to juveniles that he wanted them to forcibly assault E.R.  Various juveniles agreed, which caused E.R. to fear for his immediate safety and stand away from the other juveniles prior to, and while returning, from the JDC cafeteria to Module 9.

According to the indictment, Johnson directed juveniles to delay the attack on E.R. until they all returned to Module 9.  Upon returning to Module 9 with the juveniles, Johnson promptly walked out of view of E.R. and the other juveniles.  At the same time, a juvenile punched E.R. in the face as he attempted to sit down in a chair. Numerous other juveniles immediately joined the attack and punched and kicked E.R., continuing their assault, even when E.R. fell to the ground.

The indictment further alleges that after E.R. was escorted out of Module 9 to the JDC medical department, Johnson promptly released the juveniles in Module 9 from their cells and allowed them to watch television as a reward and privilege.  Johnson also bumped fists with the juvenile who initiated the attack on E.R.  Johnson later caused certain Module 9 juveniles to receive snacks as a reward and privilege for participating in the attack on E.R.

According to the indictment, E.R. was later transported from the JDC to Holtz Children’s Hospital in Miami, Florida.  On Aug. 31, 2015, E.R. was pronounced dead due to bodily injuries suffered during the attack.

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

This case was investigated by the FBI Miami Area Corruption Task Force. The case is being prosecuted by Assistant U.S. Attorney Sean T. McLaughlin and Trial Attorney Samantha Trepel of the Civil Rights Division.

Today, the Department of Justice’s Environment and Natural Resources Division (ENRD) released its Accomplishments Report for Fiscal Year (FY) 2017. The report, which is published annually by ENRD, highlights the division’s strong enforcement of our nation’s environmental laws, defense of government programs that strengthen the country’s energy independence and national security, and close collaboration with states and tribes.

“It has been a true honor and privilege to serve as the Acting Assistant Attorney General for the Environment and Natural Resources Division (ENRD) since January 2017, under the leadership of Attorney General Jeff Sessions and alongside the extraordinary public servants of the division,” said Acting Assistant Attorney General Jeffrey H. Wood.  “ENRD is a powerful force for good in our country — both through our enforcement of the environmental laws to protect clean land, clean air, clean water, and wildlife, and our defense of the rule of law and good governance by the federal agencies that ENRD represents.”

This year, ENRD focused on several key objectives: vigorously enforcing the environmental laws of the United States; promoting energy independence and economic growth by reducing regulatory burdens and supporting infrastructure development; strengthening national security; promoting cooperative federalism by partnering with states and tribes; and responsibly protecting taxpayer dollars.

In 2017, ENRD obtained a number of court orders requiring responsible parties to clean up hazardous waste and to reimburse the government for cleanups conducted by federal agencies.  The division also concluded landmark civil and criminal cases against Volkswagen AG, which used “defeat devices” to cheat our air emissions laws. The division also continued to work with federal and state partner agencies to investigate other possible bad actors in the auto industry and to bring similar violators to justice. 

Among other successes this year, ENRD secured the largest-ever penalty for crimes involving deliberate vessel pollution — $40 million — against Princess Cruise Lines, a subsidiary of the world’s largest cruise company.  In another settlement announced in early 2018 (FY2018), the division required Denver-based PDC Energy to spend approximately $19.7 million to reduce emissions of volatile organic compounds from 650 tank batteries and pay a $2.5 million civil penalty.  The division also negotiated the cleanup of 94 abandoned uranium mines on Navajo Nation lands.  In addition, the division criminally prosecuted more than 20 wildlife traffickers who harmed protected species. 

The change in administration also brought changes in policy priorities for the agencies that the division represents.  Through its representation of the United States in legal challenges to new policy initiatives at partner agencies such as the Environmental Protection Agency (EPA), the Department of Interior (DOI), the Department of Defense, and the Department of Homeland Security, the division has played a critical role in paving the way for investments in infrastructure and energy security projects that will strengthen the U.S. economy, as well as facilitating more robust border control and military operations to protect our national security.  For example, ENRD defended the federal permits issued for several energy infrastructure projects, including the Dakota Access Pipeline (which is now operational), and has resolved a number of critical cases to acquire land for improved border protection and for expansion or development of military installations. 

The Trump Administration is undertaking an ambitious agenda of regulatory reform, and ENRD supports this effort by advising partner agencies, including EPA and DOI, on high-priority rulemakings and ensuring the effective defense of regulatory actions in court.  The division also is managing a number of cases challenging agency regulations promulgated under previous administrations that are under review pursuant to President Trump’s Executive Orders.  Notable examples are challenges to the Clean Power Plan and the Clean Water Rule. 

 “Our aim at ENRD is to avoid unnecessary litigation, support the integrity of the administrative process, and conserve the resources of the courts, the agencies, and other litigants, while also defending the rightful prerogative of the Administration to review the costs and benefits of regulations and to chart a new direction where appropriate,” Acting Assistant Attorney General Wood added. 

  In FY2017, ENRD worked on 3,943 cases and matters, while maintaining a robust docket of nearly 7,000 cases and matters.  In addition, ENRD obtained over $4.8 billion in civil and criminal fines, penalties, and costs recovered, and the estimated value of federal injunctive relief obtained — clean-up and pollution prevention actions funded by private parties — exceeded $18.7 billion.  ENRD also saved the government an estimated $360 million in the successful defense of claims brought against the government.  The division is also implementing recent policy directives by the Attorney General, including restrictions on third party payments in settlement agreements. 

The report also recognizes the important contributions of ENRD’s front office leadership: Deputy Assistant Attorneys General Jean Williams, Bruce Gelber, Eric Grant, and Jonathan Brightbill, as well as Counsel and Chief of Staff Corinne Snow.

Lured Relatives to U.S. with Promises of a Better Life, But Instead Subjected them to Forced Labor, Increasing Debt, and Threats of Deportation

Two Guatemalan nationals were today sentenced in U.S. District Court in Tacoma, Washington, for their scheme to exploit other Guatemalan nationals for their own financial gain, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Annette L. Hayes of the Western District of Washington. Antonio Francisco-Pablo, 60, residing in Forks, Washington, was sentenced to three years in prison for one count of forced labor. Antonia Marcos Diego, 42, also residing in Forks, Washington, was sentenced to one year of probation for one count of document servitude in furtherance of forced labor. At the sentencing hearing, U.S. District Judge Ronald B. Leighton described their crimes as a “despicable offense” and a “serious degree of exploitation.” 

According to documents filed in court, defendant Antonia Marcos Diego and her husband, Antonio Francisco-Pablo, lured Diego’s sister to enter the United States from Guatemala, falsely promising that they would provide her with a home, a job earning a lot of money, and a good life. Contrary to these promises, however, the defendants saddled the victim with significant debt upon arrival in the United States, and informed her that she would work off the debt by picking salal, a plant commonly used by florists. The defendants retained all of the victim’s earnings and increased her debt by imposing additional charges on her for food, housing, transportation, and utilities. The defendants also kept the victim’s identification documents and threatened her with deportation if she ever tried to leave them. According to court documents, the defendants similarly lured another relative to the United States from Guatemala, and also imposed a significant debt upon him after his arrival.      

“The defendants forced their own family members to work for no pay after luring them to the United States on false promises of a better life,” said Acting Assistant Attorney General John Gore. “The Department of Justice will continue to prosecute labor traffickers, who exploit vulnerable individuals for their own greed and erode the American ideals of freedom, opportunity, and the rule of law.”

“What these defendants did to their victims amounts to modern day slavery and will not be tolerated,” said U.S. Attorney Annette L. Hayes.  “All of us in law enforcement are committed to addressing the needs of victims and holding perpetrators to account.  I encourage anyone with information about this kind of forced labor victimization to go to law enforcement and be part of the solution.” 

Both defendants will pay $18,950 in restitution to the victims. Francisco-Pablo was in the U.S. unlawfully, and it is virtually certain that he will be deported following his prison term. Antonia Marcos Diego will be on probation for one year.  

The case was investigated by the Department of Homeland Security’s Homeland Security Investigations and the Federal Bureau of Investigation, with assistance from the Clallam County Sheriff’s Office, Port Angeles Police Department, and Washington State Patrol Crime Laboratory.

The case is being prosecuted by Assistant United States Attorney Bruce F. Miyake and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.

A resident of Troy, Michigan, pleaded guilty today to filing a false tax return, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to court documents, Mythi Nguyen co-owned Y & B Nail Supply, a nail salon wholesale business located in Madison Heights, Michigan.  From 2009 through 2011, Nguyen underreported more than $1.1 million in business gross receipts from her tax returns, which caused a total tax loss of $272,680.72.

U.S. District Judge Gershwin A. Drain scheduled sentencing for September 13, 2018.  Nguyen faces a statutory maximum sentence of three years in prison.  She also faces 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 Abigail Burger Chingos and Thomas F. Koelbl, who are prosecuting the case.

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

Defendants compelled the unpaid domestic labor and services of a young, West African girl in their home for over 16 years until neighbors helped her escape

Mohamed Toure, 57, and Denise Cros-Toure, 57, of Ft. Worth, Texas, appeared today in federal court in the Northern District of Texas on a criminal complaint charging them with forced labor, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Erin Nealy Cox of the Northern District of Texas, and Special Agent in Charge Michael V. Perkins of the U.S. Department of State, Diplomatic Security Service, Houston Field Office. 

According to the affidavit filed with the complaint, the defendants and others arranged for the victim, who did not speak English, to travel alone from her village in the Republic of Guinea, in West Africa, to Southlake, Texas, in January 2000 to work for the defendants in their home. The victim’s Guinean passport indicated that she was five years old at the time. Throughout the years, until the victim escaped in August 2016, the defendants forced the victim to labor in their home for long hours without pay. The defendants required her to cook, clean, do the laundry, perform yardwork, and paint, as well as care for their five children.  Although the victim was close in age to the children, the defendants denied her access to schooling and the other opportunities afforded to their children.

As part of their coercive scheme to compel the victim’s labor, the defendants took her documents and caused her to remain unlawfully in the United States after her visa expired. They further isolated her from her family and others and emotionally and physically abused her. Eventually, in August 2016, the victim escaped the defendants with the help of several former neighbors.

A complaint is a written statement of the essential facts of the offense charged and must be made under oath before a magistrate judge. A defendant is entitled to the presumption of innocence until proven guilty. The government has 30 days to present the matter to a grand jury for indictment. The maximum penalty for the offense of forced labor is 20 years in federal prison.

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

The Department of Justice announced today that it will require Martin Marietta Materials, Inc. to divest quarries in Georgia and Maryland in order to proceed with its proposed $1.625 billion acquisition from LG Panadero, L.P. of Panadero Corp. and Panadero Aggregates Holdings, LLC, the entities that own Bluegrass Materials Company, LLC.    

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

“Today’s settlement will ensure that aggregate customers, and ultimately taxpayers, in Georgia and Maryland continue to benefit from vigorous competition for this critical input used in road construction,” said Assistant Attorney General Makan Delrahim of the Antitrust Division.  “The acquisition, as originally proposed, would have left customers in Georgia and Maryland with few competitive choices and given Martin Marietta the ability to increase prices and reduce customer service.”

According to the department’s complaint, Martin Marietta and Bluegrass produce and sell aggregate, an essential input in asphalt and ready mix concrete that is used in road building and other types of construction.  The complaint alleges that, for a significant number of customers in and immediately around Forsyth and north Fulton County, Georgia, and in the Washington County, Maryland area, Martin Marietta and Bluegrass are two of only three competitive sources of aggregate qualified by the respective states’ Departments of Transportation.  According to the complaint, the loss of competition between Martin Marietta and Bluegrass would likely result in higher prices and poorer customer service for aggregate customers in these areas.   

Under the terms of the proposed settlement, Martin Marietta must divest Bluegrass’s Beaver Creek quarry in Hagerstown, Maryland, and all of the quarry’s assets to an acquirer approved by the United States, in consultation with the State of Maryland.  Martin Marietta must also divest the lease to its Forsyth quarry in Suwanee, Georgia, and all of the quarry’s assets to Midsouth Paving, Inc., or an alternate acquirer approved by the United States.  The department required an upfront buyer for the Forsyth quarry assets because of the unique nature of the lease being divested.  Midsouth is a subsidiary of CRH plc and CRH Americas Materials, Inc. (commonly known in the industry as “Oldcastle”). 

The settlement includes several provisions designed to improve the effectiveness of the decree and the Division’s future ability to enforce it. 

Martin Marietta is a North Carolina corporation with its headquarters in Raleigh, North Carolina.  Martin Marietta is a leading supplier of aggregate and heavy building materials in the United States, with operations in 26 states.  In 2017, Martin Marietta had net sales of $3.9 billion.

Bluegrass is a Delaware limited liability company with its headquarters in Jacksonville, Florida.  Bluegrass operates 17 rock quarries, one sand plant, and two concrete manufacturing plants across Kentucky, Tennessee, South Carolina, Georgia, Pennsylvania, and Maryland.  Bluegrass is owned by Panadero Aggregates Holdings, LLC, an entity majority-owned by Panadero Corp.  LG Panadero, L.P., a Delaware limited partnership headquartered in New York, New York, owns Panadero Corp.  

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

The Department of Justice announced today that it will require Martin Marietta Materials, Inc. to divest quarries in Georgia and Maryland in order to proceed with its proposed $1.625 billion acquisition from LG Panadero, L.P. of Panadero Corp. and Panadero Aggregates Holdings, LLC, the entities that own Bluegrass Materials Company, LLC.    

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

“Today’s settlement will ensure that aggregate customers, and ultimately taxpayers, in Georgia and Maryland continue to benefit from vigorous competition for this critical input used in road construction,” said Assistant Attorney General Makan Delrahim of the Antitrust Division.  “The acquisition, as originally proposed, would have left customers in Georgia and Maryland with few competitive choices and given Martin Marietta the ability to increase prices and reduce customer service.”

According to the department’s complaint, Martin Marietta and Bluegrass produce and sell aggregate, an essential input in asphalt and ready mix concrete that is used in road building and other types of construction.  The complaint alleges that, for a significant number of customers in and immediately around Forsyth and north Fulton County, Georgia, and in the Washington County, Maryland area, Martin Marietta and Bluegrass are two of only three competitive sources of aggregate qualified by the respective states’ Departments of Transportation.  According to the complaint, the loss of competition between Martin Marietta and Bluegrass would likely result in higher prices and poorer customer service for aggregate customers in these areas.   

Under the terms of the proposed settlement, Martin Marietta must divest Bluegrass’s Beaver Creek quarry in Hagerstown, Maryland, and all of the quarry’s assets to an acquirer approved by the United States, in consultation with the State of Maryland.  Martin Marietta must also divest the lease to its Forsyth quarry in Suwanee, Georgia, and all of the quarry’s assets to Midsouth Paving, Inc., or an alternate acquirer approved by the United States.  The department required an upfront buyer for the Forsyth quarry assets because of the unique nature of the lease being divested.  Midsouth is a subsidiary of CRH plc and CRH Americas Materials, Inc. (commonly known in the industry as “Oldcastle”). 

The settlement includes several provisions designed to improve the effectiveness of the decree and the Division’s future ability to enforce it. 

Martin Marietta is a North Carolina corporation with its headquarters in Raleigh, North Carolina.  Martin Marietta is a leading supplier of aggregate and heavy building materials in the United States, with operations in 26 states.  In 2017, Martin Marietta had net sales of $3.9 billion.

Bluegrass is a Delaware limited liability company with its headquarters in Jacksonville, Florida.  Bluegrass operates 17 rock quarries, one sand plant, and two concrete manufacturing plants across Kentucky, Tennessee, South Carolina, Georgia, Pennsylvania, and Maryland.  Bluegrass is owned by Panadero Aggregates Holdings, LLC, an entity majority-owned by Panadero Corp.  LG Panadero, L.P., a Delaware limited partnership headquartered in New York, New York, owns Panadero Corp.  

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

A former procurement officer employed at Sandia National Laboratories (SNL), a nuclear research and development facility of the U.S. Department of Energy (DOE), was sentenced to three years in prison for orchestrating a scheme to obtain approximately $2.3 million in federal funds through fraudulent means and for laundering the fraudulently obtained proceeds through her father’s companies. 

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.

Carla Sena, 56, of Santa Rosa, New Mexico, was sentenced by U.S. District Judge James A. Parker of the District of New Mexico.  Judge Parker also ordered Sena to forfeit $643,000, the approximate amount that she laundered through her father’s companies.

Sena pleaded guilty to wire fraud and money laundering in December 2017.  According to admissions made in connection with her plea agreement, in late 2010, Sena was tasked with managing the bidding process for the award of a multi-million-dollar contract for moving services at SNL.  In anticipation of the bidding process for this contract, she created New Mexico Express Movers LLC (“Movers LLC”), prepared a bid on Movers LLC’s behalf, and submitted the bid to SNL under an acquaintance’s name to conceal her involvement.  Sena made several material and fraudulent misrepresentations in Movers LLC’s bid to give the appearance of meeting the mandatory requirements in the bidding process, and she then used her position to ensure that these misrepresentations went undetected.  Sena also used her position to access other bidders’ documents and information that she in turn leveraged to ensure award of the contract to Movers LLC. 

Sena admitted that as a direct result of her scheme to defraud, Movers LLC received approximately $2.3 million in DOE funds.  Of that, Sena transferred via negotiated checks at least $643,000 to legitimate businesses owned by her father with the intent to conceal her subsequent use of the proceeds for personal gain.

The U.S. Department of Energy Office of Inspector General investigated the case.  Trial Attorneys Victor R. Salgado and Rebecca Moses of the Criminal Division’s Public Integrity Section prosecuted the case. 

The Department of Justice’s Antitrust Division today announced an initiative to terminate outdated antitrust judgments. 

“Today, we are taking a first step toward freeing American businesses, taxpayers, and consumers from the burden of judgments that no longer protect competition,” said Makan Delrahim, Assistant Attorney General for the Justice Department’s Antitrust Division.  “We will pursue the termination of outdated judgments around the country that presently do little more than clog court dockets, create unnecessary uncertainty for businesses or, in some cases, may actually elicit anticompetitive market conditions.”  

From the early days of the Sherman Act until the late 1970s, the Division often entered into final judgments that did not include an express termination date.  In 1979, the Division adopted the general practice of including sunset provisions that automatically terminate judgments, usually 10 years from entry.  However, nearly 1300 “legacy” judgments remain on the books of the Antitrust Division, and nearly all of them likely remain open on the dockets of courts around the country.  The vast majority of these judgments no longer protect competition because of changes in industry conditions, changes in economics, changes in law, or for other reasons.

To facilitate the termination of these judgments, the Antitrust Division announced that it will review all of its legacy judgments to identify those that no longer serve to protect competition.  The Division has assigned each judgment to a Division attorney, who will examine court papers, internal case files, and publicly available information to determine whether each judgment continues to serve competition.  

Although the Antitrust Division’s review is ongoing, it already has identified many judgments that it likely will seek to terminate unilaterally after a public comment period.  It will begin its efforts by proposing to terminate a set of judgments entered by the federal district courts in Washington, D.C. and Alexandria, Virginia.    

The process by which the Antitrust Division intends to seek unilaterally the termination of these outdated judgments is described on a public website (www.justice.gov/atr/JudgmentTermination) that will serve as the primary source of information for the public regarding this initiative.  In brief, the process is as follows:

• The Antitrust Division will review its outstanding judgments to identify those that no longer appear to protect competition such that termination would be appropriate.
• When the Antitrust Division identifies judgments it believes are candidates for termination, it will post the name of the related case with a link to the relevant judgment on the public website.  
• The public may submit comments regarding each proposed termination to the Division at JudgmentTerminationComments@usdoj.gov within 30 days of the date the judgment is posted on the public website.  
• Following the comment period, if the Antitrust Division still believes termination is appropriate, it will seek to terminate the judgment by filing a motion with the appropriate court; the Division will post court filings and any related orders to the public website.

Members of the public are encouraged to check www.justice.gov/atr/JudgmentTermination often.  The Antitrust Division will post updates to the website as it continues its ongoing review of legacy judgments and proposes judgments for termination.  In addition, the Division has established a mailing list that will provide notice of new postings to the website, including judgments the Division has identified as appropriate for termination.  Members of the public may subscribe to the mailing list at https://public.govdelivery.com/accounts/USDOJ/subscriber/new.  

The Division will post a statement that describes the initiative in detail to the public website, and publish it in the Federal Register.  Defendants who have information related to possible termination of a legacy judgment, as well as members of the public who have questions about the initiative, are encouraged to contact Dorothy B. Fountain, Chief Legal Advisor, Antitrust Division, U.S. Department of Justice, at ChiefLegalAdvisor@usdoj.gov.

Today Attorney General Jeff Sessions issued the following statement about the travel order arguments being heard today by the U.S. Supreme Court: “President Trump has been steadfast in his commitment to the safety and security of all Americans. The Constitution and Acts of Congress confer on the President broad discretion and authority to protect the United States from all foreign and domestic threats. After multiple agency heads conducted a comprehensive, worldwide review of foreign governments’ information-sharing practices and other risk factors, President Trump determined this travel order is critical to protecting the American people.  We look forward to defending the order’s lawfulness today in the Supreme Court.”

A Virginia husband and wife were each sentenced today for tax evasion and conspiring to structure currency transactions, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

Business owner Jeffrey Dalton was sentenced to 27 months in prison, and his wife and co-owner of the business, Karen Dalton, was sentenced to six months in prison.

According to the evidence presented at trial, Jeffrey and Karen Dalton owned Blue Ridge Stainless Inc. (BRS), a subcontracting business that provided labor to renovate large retail department and grocery stores.  The Daltons operated BRS out of their home in Hillsville, Virginia.  The Daltons filed their 2009 through 2014 personal tax returns with the Internal Revenue Service (IRS) reporting the income earned from BRS, but failed to pay the taxes, penalties, and interest owed.  Despite an IRS revenue officer repeatedly contacting the Daltons over a period of years about their delinquent taxes and pending IRS liens, the Daltons refused to pay their outstanding tax liabilities, used nominees to conceal their ownership of property, and filed false documents with the IRS.  After the IRS levied the Daltons’ personal bank accounts, they used funds from the BRS business bank account to start a cattle business and pay their children’s wedding expenses.

The evidence at trial also proved that during a six-month period in 2015 the Daltons repeatedly withdrew cash from BRS’s business bank account in amounts less than $10,000 to evade federal bank-reporting requirements, and structured more than $250,000 in withdrawals.

In addition to the terms of imprisonment imposed, U.S. District Court Judge James P. Jones ordered Jeffrey and Karen Dalton to serve two years of supervised release.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Daniel McGraw and Sean Beaty, who prosecuted the case.

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

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant RON MOLANO TAITANO, age 32, from Mangilao, was sentenced today to an 18 month term of imprisonment and a three year term of supervised release for possession of contraband in prison. The Court also sentenced Taitano to an 11 month term of imprisonment for violations of supervised release involving failure to report for drug testing and failure to report to the U.S. Probation Office. The Court ordered the terms of imprisonment to run consecutive to each other.

          On July 27, 2017, Taitano pled guilty to two counts of an Indictment, which charged Possessing Contraband in Prison, in violation of Title 18, United States Code, Section 1791.  The first count involved Taitano possessing methamphetamine inside of his slippers upon his return to the Department of Corrections on January 14, 2017. Taitano had previously asked the Court for permission to assist his family with a medical appointment. The Court granted an eight-hour furlough from prison for that purpose. Additionally, on February 12, 2017, Taitano possessed a cellphone and sim card, both prohibited objects, while an inmate at the Department of Corrections. Taitano’s ongoing incarceration at the Department of Corrections was due to the revocation of his supervised release in an earlier federal case, which resulted in convictions for Bank Fraud, Attempted Bank Fraud, and Possession of Stolen United States Mail.

The investigation was conducted by the United States Marshals Service and the Drug Enforcement Administration. The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.

          SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant LLOYD JOHN AGUON, age 41, from Umatac, was sentenced today to an additional six months in prison for failure to self-surrender to the United States Marshals Service (USMS) to begin serving his sentence, as previously ordered. On October 25, 2017, Aguon was sentenced in District Court to an 18-month term of imprisonment for being a Felon in Possession of Firearms and Ammunition.  He was released on his own recognizance pending a Bureau of Prisons (BOP) determination as to where he would serve his federal prison sentence. Aguon was also ordered to report regularly to the USMS until such time.  He further agreed to self-surrender to the USMS once BOP determined his prison location.

          On November 21, 2017, the USMS notified Aguon to self-surrender on November 30, 2017, following BOP’s final placement decision. However, Aguon failed to appear as scheduled. Deputies then attempted to locate Aguon at his residence in Umatac. Over the course of an hour, Aguon failed to respond to the deputies’ knocking and announcing their presence. He finally exited once the power was turned off. The United States Attorney’s Office charged Aguon with Failure to Appear, in violation of Title 18, United States Code, Section 3146(a)(2). This federal law makes it unlawful for individuals sentenced to a term of imprisonment and ordered to surrender to the USMS to knowingly and intentionally fail to surrender as ordered.

          The investigation was conducted by United States Marshals Service. The case was prosecuted by Belinda Alcantara, Assistant United States Attorney for the District of Guam.

The Department of Justice’s Bureau of Justice Assistance (BJA) today awarded a $1 million grant to the Florida Department of Law Enforcement to pay salary and overtime expenses for first responders who came to the scene of the deadly shootings at Marjory Stoneman Douglas High School on Feb. 14, 2018.

In responding to the tragedy, the State of Florida, the City of Parkland, and Broward County incurred several million dollars in costs including securing crime scenes and operating command centers and state and local officials continue to incur expenses. The magnitude and urgency of the event resulted in a coordinated response of local, state, and federal law enforcement agencies and first responder personnel from more than 18 agencies. This award will defray some of these costs.

“The school shooting in Parkland shocked and horrified the nation, but the community and law enforcement at all levels have shown resilience and determination,” Attorney General Sessions said. “As I told our state and local partners back in February, the Department of Justice stands ready to help them in any way we can. Today we offer $1 million to support the police who have been working overtime in the aftermath of this tragedy. They can be sure about this: we have their backs.” 

The BJA invited the Florida Department of Law Enforcement, which administers the Edward Memorial Justice Assistance Grants Program for the state, to apply for the funds. The law authorizing the Byrne JAG Program permits funding to address “precipitous or extraordinary increases” in crimes such as mass violence. The program is the largest source of federal funding for state, local, and tribal public safety activities and is one of several programs administered by the Department of Justice that support law enforcement operations and improve officer safety.          

For more information about the BJA, please visit https://www.bja.gov/default.aspx.  

The Department of Justice today announced that Robert George, a former sergeant with the Hickory Police Department (HPD), has been indicted by a federal grand jury on charges of using excessive force against a female arrestee, and for obstructing justice.

The indictment alleges that on Nov. 11, 2013, George assaulted a female victim, identified in the indictment by the initials C.D., by slamming her face-first to the ground, causing her to suffer bodily injury. The following day, George allegedly wrote a false police report to cover up the offense.

George, 45, of Hickory, North Carolina, was arraigned on these charges in federal court.

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

This case is being investigated by the Federal Bureau of Investigation and is being prosecuted by Department of Justice Assistant United States Attorney Kimlani Ford and Civil Rights Division Trial Attorney Sanjay Patel.

Attorney General Jeff Sessions today issued the following statement on the Central American 'Caravan':

“Pockets of the original, so-called ‘migrant caravan,’ which press reports indicate consists mostly of Honduran nationals, have begun to arrive at our southern border with the intent of claiming asylum. These individuals—and their smugglers—ignored the willingness of the Mexican government to allow them to stay in Mexico.

“Let today’s message be clear: our nation has the most generous immigration system in the world, but this is a deliberate attempt to undermine our laws and overwhelm our system. There is no right to demand entry without justification. Smugglers and traffickers and those who lie or commit fraud will be prosecuted to the fullest extent of the law.

“Promoting and enforcing the rule of law is essential to protecting a nation, its borders, and its citizens. But, as President Trump has warned, the need to fix these loopholes and weaknesses in our immigration system is critical and overdue.

“Accordingly, I have directed our U.S. Attorneys at the border to take whatever immediate action to ensure that we have sufficient prosecutors available. I have also directed that we commit any additional necessary immigration judges to adjudicate any cases that may arise from this ‘caravan.’”

A Miami, Florida man was sentenced to 97 months in prison today for his role in an approximately $10 million health care fraud scheme involving a now-defunct home health clinic and two sham physical rehabilitation clinics located in Miami. 

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Benjamin G. Greenberg of the Southern District of Florida, Special Agent in Charge Robert F. Lasky of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Brian Swain of the U.S. Secret Service’s (USSS) Miami Field Office made the announcement.

Vladimir Prado Sr., 52, was sentenced by U.S. District Judge Robert N. Scola of the Southern District of Florida.  Judge Scola also ordered Prado to serve three years of supervised release following his prison sentence and pay $4,001,499 in restitution, jointly and severally with his co-defendants.  Prado pleaded guilty on Feb. 2, to one count of conspiracy to commit health care fraud and wire fraud charged in an October 2017 superseding indictment and to one count of conspiracy to commit health care fraud and wire fraud charged in a November 2017 indictment. 

In connection with the October 2017 charges, Prado admitted that he owned a Miami medical clinic that submitted approximately $5 million in false and fraudulent claims to Blue Cross Blue Shield, resulting in payments to the clinic totaling approximately $2.6 million.   

In connection with the November 2017 charges, Prado admitted that he was a co-owner of a Miami rehabilitation clinic that submitted approximately $2.6 million in false and fraudulent claims to Blue Cross Blue Shield, resulting in payments to the clinic totaling approximately $1.4 million.  Prado further admitted that he also provided the money to purchase a fraudulent home health agency.  Prado also admitted that from December 2012 through April 2014, he and his co-conspirators submitted to the Medicare program, via interstate wires, approximately $2.2 million in claims for reimbursement, which falsely and fraudulently represented that various home health care benefits were medically necessary, prescribed by a doctor and provided to Medicare beneficiaries.  As a result of these false and fraudulent claims, Medicare made payments to the corporate bank accounts of the home health agency in the approximate amount of $3.9 million, Prado admitted. 

The cases were investigated by the FBI, HHS-OIG and USSS and were brought by the U.S. Attorney’s Office for the Southern District of Florida and by the Criminal Division’s Fraud Section, as part of the Medicare Fraud Strike Force.  Trial Attorney Adam G. Yoffie of the Fraud Section and Assistant U.S. Attorney Christopher J. Clark of the Southern District of Florida are prosecuting the case.

The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.  The Medicare Fraud Strike Force operates in nine locations nationwide.  Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion. 

The Justice Department today announced that it has reached a settlement with Themesoft Inc. (Themesoft), a Texas-based company that provides consulting and staffing services to technology clients, to resolve the Department’s investigation into whether the company discriminated against a work-authorized immigrant by refusing to refer him for an assignment, in violation of the Immigration and Nationality Act (INA). 

The Department’s investigation, initiated based on a worker’s complaint, revealed that Themesoft engaged in citizenship status discrimination against an asylee by refusing to refer his application to a client because he was not a lawful permanent resident, U.S. citizen, or H-1B visa holder. Asylees have permanent work authorization, like U.S. citizens, nationals, refugees, and lawful permanent residents, so employers may not limit their jobs based on citizenship status without a specific legal basis for doing so.  The investigation also revealed that Themesoft requested specific immigration documentation from the worker because of his citizenship or immigration status even though the INA’s anti-discrimination provision also prohibits employers from requiring applicants or employees to produce more or specific documents than are required by law, based on the individual’s citizenship, immigration status, or national origin. 

Under the settlement agreement, Themesoft will pay civil penalties for the citizenship status discrimination and the unfair documentary practices.  Themesoft will also post notices informing workers about their rights under the INA’s anti-discrimination provision, train its staff, and be subject to departmental monitoring and reporting requirements for three years.  During the Department’s investigation, Themesoft agreed to pay the worker back pay and offered him a job. The Department’s agreement requires Themesoft to timely pay the worker the remainder of the $12,000 in back pay it still owes him.

“The Department vigorously protects all workers from citizenship status discrimination when employers have no legal basis for their actions,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “This settlement also serves as a reminder that the INA’s anti-discrimination provision extends to companies that refer workers to third party clients, and that all employers should be mindful of their compliance obligations.”

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

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

Applicants or employees who believe they were subjected to 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.

INTERPOL Washington—the U.S. National Central Bureau—provided critical support to U.S. Immigration and Customs Enforcement (ICE) Enforcement and Removal Operations (ERO) helping to facilitate the arrest of 33 fugitives sought for their roles in known or suspected human rights violations during a nationwide operation this week. Read the full story here.

In January 2018, INTERPOL Washington—the U.S. National Central Bureau--teamed with the Intellectual Property Rights Coordination (IPRC) Center to issue an INTERPOL Orange Notice to notify the international community about the discovery of counterfeit medical tourniquets. Orange Notices warn all INTERPOL member countries of a person, an object, an event or a modus operandi which presents an imminent threat to public safety and is likely to cause serious injury to persons and/or damage to property.

Medical tourniquets are used in many emergency situations and are commonly used by first responders, law enforcement, and military lifesaving personnel around the world. Tourniquets are used to apply pressure to restrict blood flow to an injured appendage. The warnings were prompted after a tourniquet – later confirmed as counterfeit – broke while being used by an emergency medical technician on a patient at the scene of a motor vehicle accident in the United States. The tourniquet malfunctioned when the tension rod snapped, making it impossible to tighten.

Orange Notices are used for reporting counterfeit devices under Project Safety Net. The first such Orange Notice was issued on February 2017, concerning automotive air bags, both original manufactures’ equipment and/or counterfeit devices discovered by law enforcement personnel.

The IPRC Center coordinates investigations of sources of merchandise that infringe intellectual property rights to identify organizations and individuals that produce, smuggle, or distribute such merchandise. The center conducts and coordinates training with other domestic and international law enforcement agencies on investigative best practices. INTERPOL Washington is a member of the IPRC.

A component of the U.S. Department of Justice, INTERPOL Washington is co-managed by the U.S. Department of Homeland Security. As the designated representative to INTERPOL on behalf of the Attorney General, INTERPOL Washington serves as the national point of contact for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States.

A former U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Special Agent pleaded guilty today to devising a wire fraud scheme that defrauded SunTrust Mortgage and the Federal Home Loan Mortgage Corporation (“Freddie Mac”) of over $40,000, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.

Shauna Kay N. Sutherland, 37, of Corpus Christi, Texas, pleaded guilty to one count of wire fraud before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida. 

According to admissions in the plea agreement, Sutherland defrauded SunTrust Mortgage and Freddie Mac into allowing a short sale of her property in Gainesville, Georgia, to a family friend who acted as a straw purchaser.  Sutherland falsely represented that there were no hidden agreements and requested forgiveness of over $40,000 owed on the mortgage due to her purported financial hardship.  Based on those material representations, SunTrust Mortgage and Freddie Mac accepted the short sale offer, with the family friend “purchasing” the property for approximately $34,000, in exchange for SunTrust Mortgage and Freddie Mac releasing Sutherland from her outstanding debt.  Freddie Mac, which had by then purchased the mortgage, calculated a total loss of more than $42,000 as a result of this transaction. 

In reality, however, Sutherland admitted that pursuant to the secret agreement with her family friend, Sutherland herself provided the purchase money for the short sale using funds wired to her by her mother.  Sutherland remained the de facto owner of the property, collected rent from tenants and paid for maintenance.  Sutherland adopted the straw purchaser’s identity to communicate by email about the property and signed that person’s signature on relevant documents.  She also used the straw purchaser’s bank account as a conduit for financial transactions related to the property.  Sutherland, through the straw purchaser, later sold the property in 2013 and used the proceeds to buy another property in Florida.

Sutherland will be sentenced on June 29 before U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida.  

ICE’s Office of Professional Responsibility, the Department of Homeland Security’s Office of Inspector General and the FBI investigated the case with assistance provided by U.S. Customs and Border Protection Office of Professional Responsibility.  Trial Attorneys Luke Cass and Simon J. Cataldo of the Criminal Division’s Public Integrity Section are prosecuting the case.

WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Themesoft Inc. («Themesoft»), una empresa con sede en Tejas que ofrece servicios de asesoría y contratación a clientes en el sector tecnológico. El acuerdo resuelve la investigación por parte del Departamento para determinar si dicha empresa había discriminado a un inmigrante con autorización para trabajar al negarse a permitirlo a seguir como candidato en su proceso de contratación, en contra de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).

La investigación del Departamento, la cual se inició como respuesta a una denuncia de un trabajador, reveló que Themesoft había discriminado a un asilado por motivos de su estatus de ciudadanía al negarse a tramitar su solicitud porque no era residente permanente legal, ciudadano estadounidense o titular de una visa H-1B. Los asilados, al igual que ciudadanos y nacionales de los EE. UU., refugiados y residentes permanentes legales, disponen de autorización permanente para trabajar. Por lo tanto, generalmente se les prohíbe a los empleadores discriminarlos con base en su estatus de ciudadanía. La investigación también reveló que Themesoft había solicitado documentos migratorios específicos de aquél trabajador debido a su estatus migratorio o de ciudadanía, a pesar de que la disposición antidiscriminatoria de la INA prohíbe tal conducta.

Conforme al acuerdo, Themesoft pagará sanciones civiles por la alegada discriminación por motivos del estatus de ciudadanía y las prácticas documentales injustas. Asimismo, Themesoft publicará notificaciones para informar a los trabajadores acerca de sus derechos al amparo de la disposición antidiscriminatoria de la INA, capacitará a su personal y se someterá a los requisitos de Departamento en cuanto a supervisión y declaración durante tres años. Durante la investigación del Departamento, Themesoft acordó indemnizar al trabajador con pagos retroactivos y le ofreció un trabajo. Según el acuerdo del Departamento, Themesoft se ve obligado a pagar al trabajador oportunamente el balance de los $12.000 de pagos retroactivos que todavía le debe.

«Los empleadores no deben discriminar ilícitamente a los asilados», declaró el Fiscal General Auxiliar en funciones, John Gore, de la División de Derechos Civiles. «Este acuerdo sirve como recordatorio de que aquellas empresas que recomienden a trabajadores a clientes que son terceras partes deben ser conscientes de sus obligaciones antidiscriminatorias».

La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus de ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; 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.

Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division and United States Attorney Joseph H. Harrington for the Eastern District of Washington, announced that Jin Chul “Jacob” Cha, 41, of Tustin, California, who pleaded guilty on January 11, 2018 to conspiracy to defraud the government and conspiracy to commit wire fraud was sentenced today.  United States District Judge Salvador Mendoza, Jr. imposed a 51-month prison term to be followed by a three-year term of court supervision after he is released from prison. 

According to information disclosed during the court proceedings, Cha was a member of a conspiracy involving Gen-X Energy Group, Inc. (Gen-X), a renewable energy company formerly located in Pasco and Moses Lake, Washington.  Between October 2012 and March 2015, Cha and his co-conspirators falsely claimed the production of more than 9,400,000 marketable renewable energy credits, which they then sold for more than $6,000,000, and filed false claims with the IRS for $2,506,094 in excise credit refunds.  Throughout this period, much of the renewable fuel claimed to be produced at the Gen-X facilities was either not produced or re-processed multiple times.

“The defendant, Mr. Cha, has been sentenced to spend years in prison for his role in a multi-million dollar conspiracy to defraud the renewable fuels program,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division. “This prosecution, which is part of a broader effort involving the Gen-X Energy Group, shows there are serious consequences for this kind of fraudulent conduct. I applaud the work of the federal, state, and local law enforcement personnel involved in bringing down this criminal enterprise.”

“I commend the tenacious and thorough efforts of investigators from IRS-Criminal Investigation and the Environmental Protection Agency’s Criminal Investigation Division,” said U.S. Attorney Harrington. “The United States Attorney’s Office will continue to work closely with our law enforcement partners to aggressively prosecute fraud and other white collar crimes in the Eastern District of Washington."

“The defendant defrauded taxpayers and biofuels companies out of millions of dollars,” said Assistant Administrator Susan Bodine for EPA’s Office of Enforcement and Compliance Assurance.  “This case shows that EPA and its law enforcement partners will prosecute those who seek to profit by breaking the law.”

"Today, Mr. Cha and the Gen-X Energy Group are being held accountable for their massive and complex $65 million fraud," said Special Agent in Charge Darrell Waldon of IRS Criminal Investigation."  Along with our law enforcement partners, IRS Criminal Investigation will continue to vigorously investigate and prosecute white collar criminals who pursue illegal schemes to steal from the U.S. taxpayer."

This investigation was conducted by the Internal Revenue Service Criminal Investigations, the Environmental Protection Agency’s Criminal Investigation Division, and the United States Secret Service, with assistance from the Washington State Patrol and the Los Angeles Port Police Department’s Hazardous Materials Investigations Unit.  The case was prosecuted by Trial Attorneys Adam Cullman and Thomas Franzinger for the Justice Department’s Environmental Crimes Section,   Assistant United States Attorney Scott T. Jones for the Eastern District of Washington, and EPA Regional Criminal Enforcement Counsel and Special Assistant United States Attorney Karla G. Perrin for the Eastern District of Washington.

A federal grand jury in Alexandria, Virginia returned a nine-count indictment today charging a Manassas Park, Virginia man with seven counts of production of child pornography in addition to counts of distribution and possession of child pornography.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Tracy Doherty-McCormick of the Eastern District of Virginia, and Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, made the announcement. 

According to the indictment, Michael Gerald Moody, 44, among other things, used, employed, and coerced a child to engage in sexually explicit conduct for the purpose of producing images of that conduct.  He also distributed those images to others through the use of the mobile messaging application Kik Messenger. 

The case is being investigated by the FBI with the assistance of the Manassas Park Police Department.  Trial Attorney Kyle P. Reynolds of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Jay V. Prabhu of the Eastern District of Virginia are prosecuting the case.

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

Former professional cyclist Lance Armstrong agreed to pay the United States $5 million to resolve a lawsuit alleging that his admitted use of performance-enhancing drugs and methods (“PEDs”) resulted in the submission of millions of dollars in false claims for sponsorship payments to the U.S. Postal Service (“USPS”), which sponsored Armstrong’s cycling team during six of the seven years Armstrong appeared to have won the Tour de France, the Department of Justice announced today. 

“No one is above the law,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “A competitor who intentionally uses illegal PEDs not only deceives fellow competitors and fans, but also sponsors, who help make sporting competitions possible. This settlement demonstrates that those who cheat the government will be held accountable.” 

From 1996 through 2004, the USPS sponsored a professional cycling team. The sponsorship agreements required the team to follow the rules of cycling’s governing bodies, including the rules prohibiting the use of certain performance enhancing substances and methods. Between 1999 and 2004, Lance Armstrong was the lead rider on the team, and he appeared to win cycling’s most prestigious event, the Tour de France, six consecutive times. 

“This settlement resolves allegations that Lance Armstrong violated the terms of his team’s sponsorship by the U.S. Postal Service,” said U.S. Attorney for the District of Columbia Jessie K. Liu. “We will continue to work with our federal partners to protect taxpayer dollars and to ensure that those who do business with the federal government fulfill their contractual obligations.”

The United States’ lawsuit against Armstrong alleged that Armstrong and his team regularly and systematically employed PEDs, in violation of the USPS sponsorship agreements. The lawsuit further alleged that Armstrong made numerous false statements, directly and through team managers and spokesmen, to USPS management and to the public denying his PED use to induce the USPS to renew its sponsorship of the team in late 2000, and to increase the sponsorship fees (and, by extension, Armstrong’s own salary) in light of Armstrong’s apparent Tour de France victories in 1999 and 2000. In addition, the lawsuit alleged that Armstrong took active measures to conceal his PED use during the USPS sponsorship, and even after the sponsorship ended, including lying under oath about his PED use in a 2005 arbitration proceeding involving his entitlement to a bonus for the 2004 Tour de France result; suing the Times of London and one of its sources – a former team masseuse – for libel; and threatening other people with similar lawsuits and other forms of retribution for disclosing their knowledge or suspicions of his doping activities. 

“The Postal Service has strongly supported the Department of Justice’s intervention and pursuit of this case, as it always has been our position that Lance Armstrong misled the Postal Service,” said Thomas J. Marshall, U.S. Postal Service General Counsel and Executive Vice President. “This matter has now been resolved in a manner that imposes consequences for that wrongful action. With this case, as in all other instances, the Postal Service vigorously defends our brand and our position as a trusted government institution.” 

In October 2012, the U.S. Anti-Doping Agency (“USADA”) issued a report and decision finding that Armstrong and his USPS teammates had engaged in a persistent and concerted doping program designed to enable Armstrong to win the Tour de France. In the wake of the USADA report, Armstrong was stripped of all of his competitive cycling results, including the seven Tour de France wins, and was banned from participating in competitive sports. Armstrong admitted to his extensive PED-use in a nationally televised interview with Oprah Winfrey in January 2013. 

“The U.S. Postal Service manages approximately 30,000 contract actions and spends more than $13 billion on contracted supplies and services each fiscal year,” said Scott Pierce, Special Agent in Charge, U.S. Postal Service Office of Inspector General. “The Office of Inspector General supports the Postal Service by aggressively investigating allegations of misconduct within the contracting process. In this instance, we worked hand-in-hand with the Civil Division, the United States Attorney’s Office and the U.S. Postal Service Office of the General Counsel. Today’s result will have a positive impact on the entire contracting process.”

The allegations against Armstrong were originally brought in a whistleblower complaint filed in June 2010 by Floyd Landis, a former teammate of Armstrong, who admitted that he, too, had participated in PED use as member of the USPS-sponsored team. Landis filed his complaint under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The Act permits the government to intervene in the whistleblower suit, as the government did here, in part. Landis will receive $1,100,000 as his share of the settlement.

The settlement announced today represented a coordinated effort of the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Columbia, and the Offices of Inspector General and the General Counsel for the United States Postal Service, in their investigation and litigation of this matter. 

The lawsuit is captioned United States ex rel. Landis v. Tailwind Sports Corporation, et al., No. 10-cv-976 (CRC) (D.D.C.). The claims against Armstrong contained in the complaint are allegations only and do not constitute a determination of liability. 

A federal grand jury in Nashville, Tennessee returned a superseding indictment today charging a Gangster Disciples member with murder in aid of racketeering and use of a firearm resulting in death, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Don Cochran for the Middle District of Tennessee and Special Agent in Charge Marcus S. Watson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Nashville Field Division.

Rex Andrew Whitlock, aka Stackhouse, 33, of Clarksville, Tennessee, is charged in a 45-count superseding indictment.  Whitlock is already in custody in connection with this investigation, having been indicted on federal drug conspiracy charges in June 2017 and on federal racketeering charges in December 2017.  

“According to today’s superseding indictment, Gangster Disciples member Rex Andrew Whitlock allegedly laid in wait for a member of a rival gang outside a gas station in Clarksville, followed him down the street and murdered him,” said Acting Assistant Attorney General Cronan. “The Department of Justice is committed to prosecuting gangs like the Gangster Disciples and to eradicating the scourge of violence that this gang and others like it have inflicted on too many communities.”

“This superseding indictment reflects the government’s ongoing efforts to hold the Gangster Disciples organization accountable for acts of violence in Middle Tennessee over the past decade,” said U.S. Attorney Cochran.  “By this prosecution, we also seek to bring closure to the family of a victim of gang violence in Clarksville and justice to the community that suffered as a result of this crime. As this investigation continues, we will continue to bring charges like these whenever the evidence permits.” 

“This superseding indictment highlights our commitment to vigorously investigate those criminal gangs who terrorize our neighborhoods,” said ATF Special Agent in Charge Watson.  “All citizens have an absolute right to feel safe in their respective communities. ATF and its partners are committed to investigating and removing those individuals who illegally possess firearms and commit crimes.”

According to the superseding indictment, Whitlock and other members of the Gangster Disciples waited outside Dodge’s Chicken, a gas station in Clarksville, in the early morning hours of Sept. 1, 2007. Whitlock and other Gangster Disciples then followed a member of the rival Bloods gang as he left Dodge’s Chicken and drove down Tobacco Road in Clarksville, at which time Whitlock shot and killed him.

This extensive investigation was conducted by the ATF, the Tennessee Bureau of Investigation, the Montgomery County Sheriff’s Office, the Clarksville Police Department, the Rutherford County Sheriff’s Office, the Murfreesboro Police Department, the Gallatin Police Department, the Kentucky State Police and the 19th Judicial District Drug Task Force. Trial Attorney Ivana Nizich of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Ben Schrader are prosecuting the case. 

An indictment is merely an accusation.  All defendants are presumed innocent until proven guilty in a court of law.

A former production manager at an aluminum extrusion manufacturer was charged in an indictment filed April 18, for his alleged participation in a decade-long fraud scheme involving the fraudulent certification of mechanical properties for parts manufactured by his former employer.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Executive Officer Renee Juhans of the National Aeronautics and Space Administration’s (NASA) Office of Inspector General (OIG), Special Agent in Charge Loren “Renn” Cannon of the FBI’s Portland Field Office, Special Agent in Charge Chris Hendrickson of the Defense Criminal Investigative Service’s (DCIS) Western Field Office, and Special Agent in Charge John Khin of DCIS’s Southeast Field Office made the announcement.

Dennis Merkel, 71, of Portland, Oregon, was charged in an indictment filed in the District of Oregon with two counts of major fraud against the government.  Merkel is scheduled to be arraigned on April 30, before U.S. District Judge Marco A. Hernández of the District of Oregon. 

The indictment alleges that between May 1996 and December 2006, Merkel, as a production manager at a Portland-area aluminum extrusion manufacturing facility, carried out a scheme to falsify tensile test results on hundreds of occasions, which were typed onto test certificates provided to the manufacturing facility’s customers.  Aluminum extrusions are manufactured for a variety of applications, including aeronautic uses such as rockets and military hardware.  There are industry-set specifications for measuring the mechanical properties of extrusions, which are determined by conducting a tensile test.  Merkel allegedly sent and caused to be sent testing certifications containing falsified mechanical properties test results in connection with government contracts for NASA and the Missile Defense Agency.  The indictment alleges that Merkel and others carried out the scheme to conceal failing tensile test results, increase profits and productivity, and obtain bonuses, which were calculated in part based on a production metric.

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

This case was investigated by the NASA OIG, the FBI’s Portland Field Office and DCIS.  The case is being prosecuted by Trial Attorneys Jennifer G. Ballantyne and Emily C. Scruggs of the Criminal Division’s Fraud Section.  

Former police officer Anthony Maldonado, of Kahului, Maui, pleaded guilty today in federal court to one count of Deprivation of Rights Under Color of Law in violation of Title 18, United States Code § 242, and one count of Conspiracy to Commit Witness Tampering in violation of Title 18, United States Code § 1512(k).

According to court documents and information presented in court, Officer Maldonado conducted a traffic stop at the Mala Wharf on Maui in September 2015.  He used the opportunity to steal approximately $1,800 in cash from the fanny pack of the person who he stopped.  When the victim later realized the cash was missing, he reported the theft to Maui police. After the report was filed, the defendant and four others attempted to bribe the victim to withdraw the complaint. Three co-defendants previously pled guilty to Conspiracy to Commit Witness Tampering.

“Law enforcement officers must uphold their pledge to protect the members of their communities and conduct themselves with honor,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The Justice Department will continue to enforce the law and protect the civil rights of all to be free from willful police misconduct.”

“Everyone should be able to trust that an encounter with law enforcement will not result in theft,” said U.S. Attorney Kenji M. Price for the District of Hawaii. “No one is above the law, least of all police officers who are charged with protecting our community.”     

Maldonado’s sentencing is scheduled for August 23 before U.S. District Judge Helen Gilmor.  He faces up to 21 years in prison, a fine of up to $350,000, and a period of supervised release of up to three years. 

The case was investigated by the Federal Bureau of Investigation, and was prosecuted by Trial Attorney Mary Hahn of the Civil Rights Division of the U.S. Department of Justice, and Assistant U.S. Attorneys Jill Otake and Marc A. Wallenstein from the U.S. Attorney’s Office for the District of Hawaii. 

Five former corrections officers at the Richwood Correctional Center (RCC) in Monroe, Louisiana, have been indicted by a federal grand jury for their roles in a conspiracy to physically assault five inmates in violation of their Constitutional protection against cruel and unusual punishment, as well as for their roles in covering up their actions, announced Acting Assistant Attorney General John Gore for the Civil Rights Division and U.S. Attorney for the Western District of Louisiana David C. Joseph.

Roderick Douglas, 37, of Monroe, Louisiana, Christopher Loring, 35, of Monroe, Louisiana, Demario Shaffer, 33, of Delhi, Louisiana, Quintail Credit, 26, of Winnsboro, Louisiana, and David Parker, 27, of Tallulah, Louisiana, were charged in a seven-count indictment returned under seal by a federal grand jury in Monroe, Louisiana, on March 29, 2018.  The indictment was unsealed and made public today upon initial court appearances of the defendants. 

According to the indictment, Douglas was a Captain, Loring was a Lieutenant, Shaffer was a Sergeant, and Credit and Parker were correctional officers. The indictment charges in Count One that the defendants conspired to inflict cruel and unusual punishment upon five inmates by spraying a chemical agent in their face and eyes while the inmates were handcuffed, compliant, kneeling on the floor, and not posing a physical threat to anyone. Count Two charges defendants Douglas, Loring, Shaffer, Credit, and Parker with the infliction of cruel and unusual punishment against the inmates, and Count Three charges defendant Loring with failing to intervene in the assaults. The indictment alleges that the assaults charged in Counts One through Three involved a dangerous weapon and resulted in bodily injury to the inmates. Count Four charges the defendants with conspiring to submit false reports concerning the incident, and Counts Five through Seven charge defendants Douglas, Shaffer, and Parker, respectively, with making false statements to the FBI about the incident. 

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

This case is being prosecuted by Assistant U.S. Attorney Mary Mudrick of the U.S. Attorney’s Office of the Western District of Louisiana, and Trial Attorney Anita Channapati of the Civil Rights Division, Criminal Section, U.S. Department of Justice. The case was investigated by the Monroe Division of the FBI.

The Justice Department today announced that former U.S. Customs and Border Protection (CBP) officer Christopher M. Holbrook pleaded guilty in federal court in Las Cruces, New Mexico, to obstruction of justice. 

The charge stems from Holbrook’s falsification of a report regarding his use of force against an individual, referred to as R.A.M., on March 23, 2015. At the time of the incident, Holbrook, 31, was working as a CBP officer in Las Cruces. 

In his plea agreement, Holbrook admitted falsifying an official document.  Specifically, Holbrook falsely claimed in his use-of-force report that when he detained R.A.M., R.A.M. actively resisted and attempted to pull away. Holbrook further falsely claimed that he used the minimal amount of force necessary to control R.A.M. but that he lost control and they both fell to the floor.  In pleading guilty, Holbrook admitted that in fact, and as he knew at the time, he intentionally swept R.A.M.’s legs out from under him and caused R.A.M.’s head to hit the floor. Holbrook also admitted that he falsified his use-of-force report to avoid getting in trouble with CBP.

Holbrook faces a maximum sentence of 20 years in prison and a $250,000 fine. A sentencing date has yet to be scheduled.

“Federal law enforcement officers have an unassailable duty to uphold the law,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “The defendant’s unlawful actions, obstruction of justice, and intentional falsification of a report, undermines the public’s confidence in our criminal justice system. This Justice Department will continue to vigorously prosecute such violations of the law.”

“Law enforcement officers are accorded tremendous power to enforce the law and ensure justice.  Preventing the abuse of this authority is necessary to protect the rights of our citizens and to maintain public trust in law enforcement agencies,” said U.S. Attorney John C. Anderson of the District of New Mexico. “Those who take an oath to support and defend the Constitution of the United States must be held accountable when they willfully violate the constitutional rights of others and obstruct justice to cover up their crimes.”

This case was investigated by CBP’s Office of Professional Responsibility. Assistant U.S. Attorney Brock Taylor of the District of New Mexico U.S. Attorney’s Las Cruces Branch Office and Trial Attorney Julia Gegenheimer of the Civil Rights Division of the Department of Justice are prosecuting the case.

A U.S. citizen pleaded guilty today to paying a 14-year-old girl for sex on multiple occasions in 2007.

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

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

Reed pleaded guilty to one count of engaging in illicit sexual conduct in a foreign place. His sentencing is scheduled in June before U.S. District Judge Donovan W. Frank in the District of Minnesota.

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

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

A Department of Defense civilian employee pleaded guilty today to sexually abusing a co-worker while on a temporary duty assignment to the U.S. Naval base in Yokosuka, Japan in January 2016.

Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, Acting U.S. Attorney Annette L. Hayes for the Western District of Washington and Special Agent in Charge Ron Beltz of the Naval Criminal Investigative Service’s (NCIS) office in Bremerton, Washington made the announcement.

Michael S. Cerera, 36, of Port Orchard, Washington, pleaded guilty to one count of abusive sexual contact before U.S. Magistrate Judge J. Richard Creatura of the Western District of Washington. Sentencing has been scheduled for Aug. 9.

In pleading guilty, Cerera admitted that on or about Jan. 23, 2016, while a civilian employee of the Department of Defense in Yokosuka, Japan, he engaged in sexual contact with a female co-worker when she was physically incapable of declining participation in, or communicating her unwillingness to engage in, that sexual contact because she was asleep.  Specifically, Cerera admitted that in the early morning, he was present in the victim’s hotel room and climbed into her bed while she was unconscious.  The victim woke to discover that, without her permission, Cerera had pushed her shirt up and was kissing or licking her right side and had placed one hand down the back of her underwear and digitally penetrated her vagina. 

NCIS investigated the case.  Trial Attorney Rami S. Badawy of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Grady Leupold of the Western District of Washington are prosecuting the case.  

SACRAMENTO, Calif. — A 20-count indictment was unsealed today following the arrest of one of two defendants charged in an unemployment benefits fraud and an identity theft scheme, U.S. Attorney McGregor W. Scott announced.

On March 22, 2018, a federal grand jury indicted John Michael “Mike” Herron II, 36, of Stockton, and Robert Joseph Maher, 39, formerly of Stockton, charging both with 18 counts of mail fraud, and one count each of aggravated identity theft. Maher is currently in custody.

According to court documents, from at least November 2010 through January 2018, Herron and Maher allegedly participated in a scheme to defraud the State of California by filing fraudulent claims for unemployment insurance benefits. In furtherance of this scheme, the defendants created fictitious companies to act as employers, devised fictitious employees (by using the real identities of persons with and without their knowledge), and filed fraudulent claims with the California Employment Development Department, falsely claiming that the fictitious employees had been laid-off or fired from the fictitious employers they previously established.

This case is the product of an investigation by the U.S. Department of Labor, Office of Inspector General, the Federal Bureau of Investigation, and the California Employment Development Department’s Investigation Division. Assistant U.S. Attorney Amy Schuller Hitchcock is prosecuting the case.

If convicted, both defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine for the mail fraud charges. Each defendant also faces a mandatory minimum penalty of two years in prison for aggravated identity theft, which would run consecutive to any other sentence imposed. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.