District Not Recorded

The Department of Justice on Friday, Feb. 23, reached an agreement with the Jackson County School Board in Florida that paves the way for the district to complete desegregation and achieve full unitary status. The agreement, which was approved by the U.S. District Court for the Northern District of Florida on Friday, addresses all remaining issues in the school desegregation case and, when fully implemented, will lead to the closure of that case.

The agreement declares that the district has achieved partial unitary status in the areas of student assignment (between schools); transportation; extracurricular activities; and facilities. The agreement retains judicial supervision over the areas of recruitment, hiring and promotion; and within-school segregation related to student discipline.

The agreement puts the district on a path to full unitary status by early 2020 provided it takes steps including: formalizing and implementing a plan to attract a diverse pool of applicants for faculty, administrator, and staff vacancies; revising the District’s code of conduct to ensure fairness and consistency in the handling of student disciplinary offenses; and providing district staff with additional tools to address student misbehavior and promote positive behavior.

The court will retain jurisdiction over the agreement during its implementation, and the Justice Department will monitor the district’s compliance.

“We are pleased with the work the district has done to comply with many of its desegregation obligations,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We look forward to working with the district to ensure fair and equal treatment for all its students in the remaining areas and bringing this case to a successful close.”

Promoting school desegregation and enforcing Title IV of the Civil Rights Act of 1964 is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt.

Attorney General Jeff Sessions today announced the creation of a new effort, the Department of Justice Prescription Interdiction & Litigation (PIL) Task Force, to fight the prescription opioid crisis.  The PIL Task Force will aggressively deploy and coordinate all available criminal and civil law enforcement tools to reverse the tide of opioid overdoses in the United States, with a particular focus on opioid manufacturers and distributors.

“Over the past year, the Department has vigorously fought the prescription opioid crisis, and we are determined to continue making progress. Today, we are opening a new front in the war on the opioid crisis by bringing all of our anti-opioid efforts under one banner,” said Attorney General Sessions.  “We have no time to waste.  Every day, 180 Americans die from drug overdoses.  This epidemic actually lowered American life expectancy in 2015 and 2016 for the first time in decades, with drug overdose now the leading cause of death for Americans under age 50.  These are not acceptable trends and this new task force will make us more effective in reversing them and saving Americans from the scourge of opioid addiction.”

The PIL Task Force will include senior officials from the offices of the Attorney General, the Deputy Attorney General, and the Associate Attorney General, as well as senior officials from the Executive Office for U.S. Attorneys, the Civil Division, the Criminal Division, and the Drug Enforcement Administration.   The Task Force will coordinate the Department’s many efforts and tools to combat the opioid epidemic. 

The PIL Task Force will combat the opioid crisis at every level of the distribution system.  At the manufacturer level, the PIL Task Force will use all available criminal and civil remedies available under federal law to hold opioid manufacturers accountable for unlawful practices.  The PIL Task Force will build on and strengthen existing Department of Justice initiatives to ensure that opioid manufacturers are marketing their products truthfully and in accordance with Food and Drug Administration rules.

The Attorney General has also directed the PIL Task Force to examine existing state and local government lawsuits against opioid manufacturers to determine what assistance, if any, federal law can provide in those lawsuits.  The federal government has borne substantial costs from the opioid crisis, and it must be compensated by any party whose illegal activity contributed to those costs.

The Department will also use all criminal and civil tools at its disposal to hold distributors such as pharmacies, pain management clinics, drug testing facilities, and individual physicians accountable for unlawful actions.

The PIL Task Force will use criminal and civil actions to ensure that distributors and pharmacies are obeying Drug Enforcement Administration rules designed to prevent diversion and improper prescribing.  It will use the False Claims Act and other tools to crack down on pain-management clinics, drug testing facilities, and physicians that make opioid prescriptions.

The PIL Task Force will use the criminal and civil tools available under the Controlled Substances Act against doctors, pharmacies, and others that break the law.  The PIL Task Force will build upon and expand the efforts of the existing Opioid Fraud and Abuse Detection Unit.  Created in August 2017, the Unit uses sophisticated data analysis to identify and prosecute individuals who are contributing to the opioid epidemic, including pill-mill schemes and pharmacies that unlawfully divert or dispense prescription opioids for illegitimate purposes.

The PIL Task Force will also work closely with the Department of Health and Human Services to investigate and hold accountable any parties who engage in illegal activity surrounding prescription opioids.  The Attorney General has directed the PIL Task Force to establish immediately a working group to:  (1) improve coordination and data sharing across the federal government to better identify violations of law and patterns of fraud related to the opioid epidemic; (2) evaluate possible changes to the regulatory regime governing opioid distribution; and (3) recommend changes in laws.

This new Task Force will build on a number of new initiatives begun by Attorney General Sessions over the past year that will help us end the drug crisis, including the following:

• In July, the Attorney General announced charges against more than 120 defendants, including doctors, for crimes related to prescribing or distributing opioids and other dangerous narcotics.
• One week later, the Attorney General announced the seizure of AlphaBay, the largest criminal marketplace on the Internet.  This site hosted some 220,000 drug listings – including more than 100 vendors advertising fentanyl – and was responsible for countless synthetic opioid overdoses, including the tragic death of a 13-year old in Utah.
• In August, the Attorney General created the Opioid Fraud and Abuse Detection Unit, a new data analytics program to help find evidence of overprescribing and opioid-related health care fraud.
• The Attorney General then assigned 12 experienced Assistant United States Attorneys to opioid “hot-spots” to focus solely on investigating and prosecuting opioid-related health care fraud. By November they had begun issuing indictments.
• In October, the Department announced the first-ever indictments of Chinese nationals and their North American-based traffickers and distributers for separate conspiracies to distribute fentanyl and other opioids in the United States.
• Also in October, the DEA announced the establishment of six new enforcement teams focused on combatting the flow of heroin and illicit fentanyl into the U.S. These enforcement teams are based in communities facing some of the most significant challenges with heroin and fentanyl.
• In 2017, the DEA held two of its National Prescription Drug Takeback Days, when people can dispose of unnecessary and potentially dangerous drugs with no questions asked. In total, DEA took a record 956 tons of drugs out of American communities.
• In January 2018, the Department announced a new resource to target traffickers who sell drugs online called J-CODE: Joint Criminal Opioid Darknet Enforcement team.  The J-CODE team will coordinate efforts across the FBI’s offices all around the world – bringing together DEA, our Safe Streets Task Forces, drug trafficking task forces, Health Care Fraud Special Agents, and other assets – effectively doubling the FBI’s investment into fighting against online drug trafficking.
• Also in January 2018, the DEA announced a 45-day surge of Special Agents, Diversion Investigators, and Intelligence Research Specialists to focus on pharmacies and prescribers who are dispensing unusual or disproportionate amounts of drugs.
• On February 7, 2018, the DEA placed all fentanyl analogues not already regulated by the Controlled Substances Act into Schedule I – the category for substances with no currently accepted medical use – for at least two years.  This makes it harder for people to acquire illicit fentanyl and easier for law enforcement to investigate and prosecute drug traffickers.
• The Department anticipates filing a statement of interest in the coming days in a multi-district action regarding hundreds of lawsuits against opioid manufacturers and distributors.

Sea World Management & Trading, Inc. and Edmon Fajardo were convicted today for maintaining false and incomplete records relating to the discharge of oil and garbage from an oil tanker that was operating off the coast of Texas, announced Acting Assistant Attorney General Jeffrey H. Wood and United States Attorney Ryan K. Patrick for the Southern District of Texas. The defendants were also sentenced today by the court.

Sea World Management & Trading, Inc. and Fajardo pleaded guilty to two felony violations of the Act to Prevent Pollution from Ships, 33 U.S.C. § 1908(a), for failing to accurately maintain the Sea Faith’s Oil Record Book and Garbage Record Book. Under the terms of the plea agreement, the company will pay a total fine of $2.25 million and serve a 3-year term of probation during which all vessels operated by the company and calling on U.S. ports will be required to implement a robust Environmental Compliance Plan. Fajardo was sentenced to six months incarceration to be followed by two years supervised release and a $2,000 fine.

Sea World Management & Trading, Inc. is a tank vessel operating company, and Fajardo is the master of the tank vessel Sea Faith.  Both admitted that oil cargo residues and machinery space bilge water were illegally dumped from the Sea Faith directly into the ocean while the vessel was transiting to Corpus Christi, TX, without the use of required pollution prevention equipment. They also admitted that these discharges were not recorded in the vessel’s Oil Record Book as required. Specifically, on five different occasions between March 10, 2017, and March 18, 2017, Fajardo ordered crew members to illegally discharge oily waste from various locations of the vessel’s cargo/deck spaces. These oily waste discharges bypassed the use of the vessel’s required oil discharge monitoring equipment and were done while the vessel was in the Caribbean Sea and the Gulf of Mexico. 

Sea World Management & Trading, Inc. and Fajardo further admitted that on March 10, 2017, and March 15, 2017, Fajardo ordered crew members to throw plastics, empty steel drums, oily rags, batteries, and empty paint cans directly overboard into the ocean. None of these garbage discharges were recorded as required in the vessel’s Garbage Record Book.  

The cases were investigated by the U.S. Coast Guard Sector Corpus Christi, U.S. Coast Guard Investigative Service, and Environmental Protection Agency-Criminal Investigation Division. The cases were prosecuted by Trial Attorney Stephen Da Ponte of the Environmental Crimes Section of the Department of Justice, and Assistant U.S. Attorney-In-Charge Julie K. Hampton of the U.S. Attorney's Office for the Southern District of Texas.

The United States has asked a federal court in Phoenix, Arizona, to permanently bar Alfred George Decker and his business Accountable Business Services Inc. (ABS), located in Gilbert, Arizona, from preparing federal income tax returns for others, the Justice Department announced today.  The complaint alleges that the defendants unlawfully understate their customers’ income tax liabilities and overstate their customers’ refunds. 

According to that complaint, Decker and ABS have continually and repeatedly prepared returns that claimed deductions to which their customers were not entitled, ignored basic principles of tax law by claiming personal expenses as business deductions, ignored limitations on certain types of deductions by identifying the expense incorrectly on the return, and manipulated different entities’ tax returns to try to hide or eliminate income and zero-out customers’ tax liabilities. As alleged in the complaint, Decker engages in this conduct despite the fact that he has previously pleaded guilty to fraudulently preparing an income tax return in Arizona State Court. 

The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return and ten tips for choosing a tax preparer. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has some information on their website about selecting 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.

The Department of Justice today announced Mary Daly will serve as the Director of Opioid Enforcement and Prevention Efforts in the Office of the Deputy Attorney General, a new position created on December 20, 2017.

“In the midst of the deadliest drug crisis in American history, we need to prosecute drug crimes aggressively and use our resources wisely,” Attorney General Sessions said. “That’s why today I am happy to announce that Mary Daly will help the Department of Justice coordinate our anti-opioid efforts.  Mary is a talented and experienced prosecutor and she will help us act as effectively as possible in this time of crisis.  I am confident in her leadership and I want to welcome her to Main Justice.”

Ms. Daly previously served as an Assistant U.S. Attorney in the Eastern District of New York and the Eastern District of Virginia, where she supervised the Narcotics unit and was the opioid coordinator.  Over her 13-year career as a federal prosecutor, Ms. Daly focused on the prosecution of transnational drug trafficking organizations.

In her role as Director of Opioid Enforcement and Prevention Efforts, Ms. Daly will be responsible for assisting the Attorney General, Deputy Attorney General, and Department components in formulating and implementing Department initiatives, policies, grants, and programs relating to opioids, and coordinating these efforts with law enforcement.        

Earlier today, Eliu Elixander Lorenzana-Cordon, 46, previously residing in La Reforma, Guatemala, was sentenced to life in prison following a trial in March 2016, where he was found guilty of conspiring to illegally import into the United States and distribute multi-ton quantities of cocaine.

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

The sentence was issued by U.S. District Judge Colleen Kollar-Kotelly of the U.S. District Court for the District of Columbia.

“Lorenzana-Cordon was a leader of a major international drug trafficking organization with close ties to the Sinaloa Cartel, one of the most violent and sophisticated transnational criminal organizations operating in the world today,” said Acting Assistant Attorney General Cronan.  “In that capacity, Lorenzana-Cordon was responsible for receiving and distributing tons of cocaine destined for the United States, where it would be sold on our streets, causing untold harm to our communities and the lives of our citizens.  This sentence sends an unmistakable message that the Department will continue to relentlessly pursue and prosecute international drug traffickers who endeavor to send drugs to the United States, wherever they may be.”

“Global criminal networks operate every day through drug trafficking and violence to assault the rule of law in the United States and around the world,” said Special Agent in Charge Donovan. “DEA and our foreign counterparts have worked tirelessly to ensure that Lorenzana-Cordon would spend a significant portion of his life in a U.S. prison cell for his crimes against our great country.”

The defendant was convicted on one count of conspiring to unlawfully distribute cocaine for illegal importation into the United States.  As proven at trial, the defendant along with his brother, co-defendant Waldemar Lorenzana-Cordon, established himself as a leader of an international drug trafficking organization with close ties to the Sinaloa Cartel.  Between 1996 and 2009, the defendant and his co-conspirators received, stored and distributed multi-ton quantities of cocaine from Colombia at their properties in Zacapa, Guatemala, for importation into Mexico and then ultimately into the United States.  The cocaine delivered to the defendant’s properties during the course of the conspiracy arrived via extensive and varying means, including the use of go-fast boats, non-commercial light aircraft, and vehicles with hidden compartments.  The defendant and his associates also used firearms during their criminal activity, and relied on threats of violence to promote their drug trafficking objectives.

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

The DEA’s 959/Bilateral Investigations Unit and Guatemala City Country Office led the investigation, which was supported by the Organized Crime Drug Enforcement Task Force program, the Criminal Division’s Office of International Affairs, the Chicago Police Department and the governments of El Salvador and Panama provided support and assistance.  Finally, and in particular, the Justice Department wishes to convey its gratitude to the government of Guatemala for its steadfast commitment, collaboration and assistance in the investigation, extradition and prosecution of this case. 

Trial Attorneys Michael Lang, Stephen Sola and Emily Cohen of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case. 

The Justice Department today announced that BMW Financial Services, N.A. (BMW FS) has agreed to pay over $2 million to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to refund a type of up-front lease payment to 492 servicemembers who lawfully terminated their motor vehicle leases early.  This is the first case brought by the Department involving a motor vehicle lessor’s failure to refund lease amounts to servicemembers who exercised their SCRA rights to terminate their leases.

The SCRA provides servicemembers with protections that permit them to terminate motor vehicle leases early without penalty after entering military service or receiving qualifying military orders for a permanent change of station or to deploy.  When servicemembers lawfully terminate motor vehicle leases, the SCRA requires that they be refunded all lease amounts paid in advance.

BMW FS is a New Jersey-based auto financing company that provides auto leasing for customers of BMW, MINI, and Rolls-Royce.  Individuals who lease vehicles from BMW FS, including servicemembers, often contribute an up-front monetary amount at lease signing, in the form of a cash payment, credit for a trade-in vehicle, or rebates or other credits.  A portion of this up-front amount can be applied to the first month of the lease and certain up-front costs such as licensing and registration fees.  The remainder, which is called the capitalized cost reduction (CCR) amount, operates to reduce the monthly payment the lessee must make over the term of the lease. 

The Department received complaints from two servicemembers who were denied refunds of pre-paid CCR amounts by BMW FS.  In October 2014, Kristi Steck, then a Senior Master Sergeant (SMSgt) in the U.S. Air Force stationed at Andrews Air Force Base in Maryland, leased a vehicle from BMW FS.   Through the trade in of her previous car and a dealer rebate, she paid BMW FS an up-front CCR amount of approximately $4,000.  SMSgt Steck made regular monthly lease payments for the next ten months.  After receiving orders from the Air Force ordering her to relocate to Japan, SMSgt Steck terminated her lease.  BMW FS refused to refund any of the $4,000 she paid when entering into the lease. 

Similarly, in February 2015, Technical Sergeant (TSgt) A. Menard, who was also stationed at Andrews Air Force Base, leased a vehicle from BMW FS.  TSgt Menard, through a trade in and rebate, paid an up-front CCR amount of approximately $5,000.  After making regular monthly lease payments for seven months, TSgt Menard received orders from the Air Force to deploy to Afghanistan.  BMW FS refused to refund Tsgt Menard any part of the $5,000 he had paid at the lease signing. 

After learning about SMSgt Steck’s and TSgt Menard’s stories, the Department launched an investigation, which was handled jointly by the Department’s Civil Rights Division and the U.S. Attorney’s Office for the District of New Jersey.  The Department’s investigation revealed that BMW FS had failed to refund any portion of the pre-paid CCR amounts to 492 servicemembers who had lawfully terminated their auto leases.

“We ask a great deal of those who serve our nation, including asking them to drop their affairs to deploy or serve in a new location, sometimes at a moment’s notice,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.  “Our men and women in uniform should be able to devote their entire energy to their service and defense of our nation, and the Justice Department is committed to protecting these rights when their obligations to the American people force them to change their plans.”

“The men and women who serve in the armed forces have made enormous sacrifices while selflessly protecting our nation from danger,” said U.S. Attorney Craig Carpenito. “We must honor their sacrifice by ensuring that their rights are protected when duty calls for their relocation or deployment overseas. Through this agreement, we are pleased that hundreds of service members will be compensated for the damages they suffered when they were not refunded pre-paid car lease payments after they were deployed.”

The agreement resolves a suit filed today by the United States in the United States District Court for the District of New Jersey.  It covers all leases terminated by servicemembers since August 24, 2011.

The agreement requires BMW FS to refund to each servicemember portions of the pre-paid CCR amount based on how many days were remaining in the lease.  In addition, BMW FS will pay indirect damages to each servicemember of three times the refund or $500, whichever is larger.  The agreement requires BMW FS to deposit $2,165,518.84 into an escrow account to compensate the 492 servicemembers whose rights were violated under the SCRA.  BMW FS also must pay $60,788 to the United States Treasury.

The agreement also requires BMW FS to revise its policies and procedures to ensure that servicemembers who terminate their auto leases early receive a full refund of all eligible pre-paid CCR amounts. 

The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country.  The SCRA provides protections for servicemembers in areas such as evictions, rental agreements, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments.  For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov. 

Servicemembers and their dependents who believe that their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office.  Office locations may be found at http://legalassistance.law.af.mil/content/locator.php.

Individuals who believe their civil rights have been violated may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at: http://www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

WASHINGTON – Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history.   The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly.  The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.  Of the defendants, 200 were charged criminally.  In each case, offenders engaged in financial schemes that targeted or largely affected seniors.  In total, the charged elder fraud schemes caused losses of more than half a billion dollars.  The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.

          Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.   

          “The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions.  “Today’s actions send a clear message:  we will hold perpetrators of elder fraud schemes accountable wherever they are.  When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains.  Today is only the beginning.  I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”

          The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians.  A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim.  The schemes charged in these cases caused losses to more than a million victims.

          “Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 14 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.

          “Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich.  “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”

          U.S. Attorney Shawn N. Anderson, Districts of Guam and the NMI, announced local outreach efforts to facilitate effective prosecutions that involve federal crimes against the elderly.  The U.S. Attorney’s Office recently met with the Department of Public Health (DPHSS), Division of Senior Citizens and the Guam Coalition Against Sexual Assault & Family Violence, as part of an ongoing collaborative effort to raise awareness about the Department of Justice’s efforts.

Actions against mass-mailing fraud industry

          As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals.  In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.

          “The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue.  “They sold false promises of life-changing prizes that never came true.  We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”

          These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars.  Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million.  Click here for map showing a transnational, single fraud scheme.

          Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year.  Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet on mass-mailing fraud sweep and cases.

Actions against other elder fraud schemes

          Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases.  Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year.  Some examples of the elder financial exploitation prosecuted by the Department include:

• “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
• “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
• “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
• “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
• “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.

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

Public education

          The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.

          Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them. 

Coordination with state officials

           Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation.  He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.

Coordination with foreign law enforcement 

          Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative.  The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States.  The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents.  Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.

Elder fraud complaints

          Elder fraud complaints may be filed with the FTC at ReportFraud.ftc.gov or at 877-FTC-HELP.  The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov.

Attorney General Jeff Sessions and law enforcement partners announced today the largest coordinated sweep of elder fraud cases in history.   The cases involve more than two hundred and fifty defendants from around the globe who victimized more than a million Americans, most of whom were elderly.  The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.  Of the defendants, 200 were charged criminally.  In each case, offenders engaged in financial schemes that targeted or largely affected seniors.  In total, the charged elder fraud schemes caused losses of more than half a billion dollars.  The Department coordinated its announcement with the FTC and state Attorneys General, who independently filed numerous cases targeting elder frauds within the sweep period.

Attorney General Sessions was joined in the announcement by FBI Acting Deputy Director David Bowdich; Chief Postal Inspector Guy Cottrell; FTC Acting Chairman Maureen Ohlhausen; and Kansas Attorney General and President of the National Association of Attorneys General Derek Schmidt.

“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions.  “Today’s actions send a clear message:  we will hold perpetrators of elder fraud schemes accountable wherever they are.  When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains.  Today is only the beginning.  I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”

The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians.  A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim.  The schemes charged in these cases caused losses to more than a million victims.

"Winners. That’s what so many of the people who received these solicitations in the mail thought they were. But they’re not. They are victims of scams that Postal Inspectors have seen and investigated for decades. In fact, some of the same operators we encountered 20 years ago are back. But so are we. Yesterday, Postal Inspectors around the country executed search warrants on 12 locations that some of these same operators used to run their scams. We’re letting the American public know – and especially our vulnerable older Americans – that Postal Inspectors are working hard to protect them and ensure their confidence in the U.S. Mail,” said Chief Postal Inspector Cottrell.

“Over the last year, the FBI has initiated more than 200 financial crimes cases involving elderly victims who were devastated financially, emotionally, mentally and physically. Picking up the pieces of these fraud schemes can be equally as traumatizing for the caregivers of these elderly victims,” said Acting Deputy Director Bowdich.  “The FBI reminds seniors and their caregivers to be vigilant. If any person believes they are the victim of, or have knowledge of fraud involving an elderly person, regardless of the loss amount, they should report it to the FBI.”


Actions against mass-mailing fraud industry

As part of the initiative, the Department’s Consumer Protection Branch, working with the U.S. Attorney’s Office for the Eastern District of New York and others, brought numerous cases this past week in a coordinated strike against more than 43 mass-mailing fraud operators, including criminal charges against six individuals.  In addition, law enforcement agents executed 14 premises search warrants from Las Vegas to south Florida, served numerous asset seizure warrants, and coordinated with the Vancouver Police in Canada, who executed over 20 warrants, including search warrants on business premises.

“The defendants targeted elderly and vulnerable consumers both in the United States and abroad, using U.S. addresses and the U.S. mails to try to legitimize their fraudulent schemes,” said U.S. Attorney for the Eastern District of New York Richard P. Donoghue.  “They sold false promises of life-changing prizes that never came true.  We will pursue the perpetrators of these mail schemes wherever they are located, and hold them accountable.”

These recently filed cases particularly targeted transnational criminal actors who collectively defrauded at least a million victims out of hundreds of millions of dollars.  Indeed, just one of the schemes prosecuted criminally by the Consumer Protection Branch operated from 14 foreign countries to cost American victims more than $30 million.  Click here for map showing a transnational, single fraud scheme.

Mass-mailing fraud inflicts hundreds of millions of dollars in losses to elderly U.S. victims each year.  Department prosecutors and U.S. Postal Inspectors have taken a comprehensive approach to combatting this fraud, disrupting and prosecuting individuals who manage the schemes, artists who draft the fraudulent solicitations, list brokers who supply victim lists, and individuals who collect victim payments. Click here for fact-sheet with cases on mass-mailing fraud.


Actions against other elder fraud schemes

Prosecutors across the country from the Criminal Division’s Fraud Section, the Consumer Protection Branch and the U.S. Attorney’s Offices have heeded the call to focus resources on elder fraud cases.  Over 50 U.S. Attorney’s Offices and Department Components filed elder fraud cases in the last year.  A list of Elder Fraud cases is provided on this interactive map. 

Some examples of the elder financial exploitation prosecuted by the Department include:

• “Lottery phone scams,” in which callers convince seniors that a large fee or taxes must be paid before one can receive lottery winnings;
• “Grandparent scams,” which convince seniors that their grandchildren have been arrested and need bail money;
• “Romance scams,” which lull victims to believe that their online paramour needs funds for a U.S. visit or some other purpose;
• “IRS imposter schemes,” which defraud victims by posing as IRS agents and claiming that victims owe back taxes;
• “Guardianship schemes,” which siphon seniors’ financial resources into the bank accounts of deceitful relatives or guardians.

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


Public education

The Department has partnered with Senior Corps, a national service program administered by the federal agency the Corporation for National and Community Service, to educate seniors and prevent further victimization. The Senior Corps program engages more than 245,000 older adults in intensive service each year, who in turn, serve more than 840,000 additional seniors, including 332,000 veterans.

Using its vast network operating in more than 30,000 locations, Senior Corps volunteers will communicate about elder fraud to potential victims across the country and will use their skills, knowledge and experience to educate their peers and caregivers about the most prolific types of schemes and how to avoid them. Click here for information on Senior Corps’ efforts to reduce elder fraud.


Coordination with state officials

Kansas Attorney General Schmidt highlighted the cases filed by state Attorneys General targeting elder frauds within in the sweep period, and he emphasized efforts at the state level to combat elder abuse and protect seniors from fraud and exploitation.  He encouraged all of the state Attorneys General to devote enforcement and public education resources to preventing financial exploitation of senior citizens.


Coordination with foreign law enforcement

Exceptional assistance from foreign law enforcement partners amplified the effectiveness of the Department’s initiative.  The sweep announced today benefited greatly from the work of the International Mass-Marketing Fraud Working Group (IMMFWG), a network of civil and criminal law enforcement agencies from Australia, Belgium, Canada, Europol, the Netherlands, Nigeria, Norway, Spain, the United Kingdom and the United States.  The IMMFWG is co-chaired by the U.S. Department of Justice and FTC, and law enforcement in the United Kingdom, and serves as a model for international cooperation against specific threats that endanger the financial well-being of each member country’s residents.  Attorney General Sessions expressed gratitude for the outstanding efforts of the working group, including law enforcement action taken as part of the sweep by the Vancouver Police Department in Canada to halt mass mailing schemes that defrauded hundreds of thousands of elderly victims worldwide.


Elder fraud complaints

Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.  The Department of Justice provides a variety of resources relating to elder fraud victimization through its Office of Victims of Crime, which can be reached at www.ovc.gov. 

WASHINGTON – The Department of Justice today filed denaturalization lawsuits against five individuals who, according to the Department’s complaints, unlawfully procured their United States citizenship by concealing their sexual abuse of minor victims during the naturalization process.

The civil complaints were filed in federal court in the Eastern District of California, the District of Maryland, the Middle District of North Carolina, and the Southern District of Texas (two cases).

“Those who wish to become American citizens ought to respect our laws and seek citizenship lawfully and honestly,” said Attorney General Jeff Sessions. “Anyone who lies, misleads, or omits critical information in an attempt to evade the requirements for naturalization undermines the credibility of our nation’s generous lawful immigration system. This Justice Department will continue to seek out fraudsters and bring them to justice by obtaining orders revoking their naturalized citizenship.”

The cases were referred to the Department of Justice by the Department of Homeland Security’s U.S. Immigration and Customs Enforcement (ICE) and U.S. Customs and Border Protection (CBP) with investigative support from U.S. Citizenship and Immigration Services.

“ICE is committed to collaborating with our sister agencies within DHS to target individuals who conceal illicit activities in order to obtain U.S. citizenship,” said ICE Deputy Director Thomas D. Homan. “When special agents identify a child predator, exploiting the most innocent among us, and other criminals who have defrauded the U.S. immigration system for naturalization benefits, then ICE will move to have their citizenship revoked.”

Under the Immigration and Nationality Act, the citizenship of a naturalized U.S. citizen may be revoked, and his or her certificate of naturalization canceled, if such naturalization was illegally procured or procured by concealment of a material fact or by willful misrepresentation.

The five defendants committed crimes of sexual abuse of minor victims prior to naturalizing. As the civil complaints allege, such crimes rendered the defendants ineligible for citizenship at the time they naturalized. By willfully concealing child sexual abuse crimes, the defendants also independently rendered themselves subject to denaturalization.

A description of each of the five cases and the allegations of the United States follows:

Ricardo De Leon 

Ricardo De Leon, 32, a native of Mexico, naturalized on July 23, 2010. Before De Leon naturalized as a U.S. citizen, he sexually assaulted a child under the age of 12. In July 2015, after he had naturalized, De Leon was indicted, and in March 2017 he pleaded guilty in Texas state court to committing aggravated sexual assault of a child in 2009. He was ordered to ten years of community supervision and required to register as a sex offender. He has been residing in Edinburg, Texas. United States of America v. Ricardo De Leon (S.D. Tex.).

Christian Oribello Eguilos

Christian Oribello Eguilos, 40, a native of the Philippines, naturalized on Nov. 6, 2013. For several years before filing his naturalization application and throughout the naturalization process, Eguilos repeatedly committed forcible lewd acts upon a child under the age of 14. In September 2015, he pleaded nolo contendere in California state court to four counts of Forcible Lewd Act Upon a Child. Eguilos was sentenced to 40 years in prison and ordered to register as a sex offender. He is incarcerated in Ione, California. United States of America v. Christian Oribello Eguilos (E.D. Cal.).

Carlos Noe Gallegos

Carlos Noe Gallegos, 41, a native of Mexico, naturalized on March 10, 2010. Before Gallegos naturalized as a U.S. citizen, he sexually assaulted a seven-year-old child. In November 2016, after he had naturalized, Gallegos was indicted, and in April 2017 he pleaded guilty in Texas state court to committing aggravated sexual assault of a child in 2007. He was ordered to six years of community supervision and required to register as a sex offender. He has been residing in Alamo, Texas. United States of America v. Carlos Noe Gallegos (S.D. Tex.).

Alwin Farouk Gariba

Alwin Farouk Gariba, 51, a native of Guyana, naturalized on Feb. 29, 2000. After he applied to naturalize but while he was in the naturalization process, Gariba repeatedly sexually abused a ten-year-old child. In July 2000, only months after he had naturalized, Gariba pleaded guilty in North Carolina state court to three counts of Taking Indecent Liberties with Children. He was placed on 60 months’ probation and ordered to register as a sex offender. He has been residing in Greensboro, North Carolina. United States of America v. Alwin Farouk Gariba (M.D.N.C.).

Moises Javier Lopez

Moises Javier Lopez, 42, a native of the Republic of Colombia, naturalized on March 22, 2013. Before filing his naturalization application and throughout the naturalization process, Lopez sexually abused a minor child. In August 2013, he pleaded guilty in Maryland state court to Sexual Abuse of a Minor. He was sentenced to 25 years’ confinement, all but four suspended. He has been residing in Gaithersburg, Maryland. United States of America v. Moises Javier Lopez (D. Md.).

These cases were investigated by ICE, CBP, and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). These cases are being prosecuted by OIL-DCS and its National Security and Affirmative Litigation Unit (NS/A Unit) with support from the U.S. Attorney’s Offices for the Eastern District of California, the District of Maryland, the Middle District of North Carolina, and the Southern District of Texas.

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

The Justice Department today charged William Patrick Syring, 60, from Arlington, Virginia, to four counts of threatening employees of the Arab American Institute (AAI) because of their race and national origin, three counts of threatening AAI employees because of their efforts to encourage Arab Americans to participate in political and civic life in the United States, and seven counts of transmitting threats to AAI employees in interstate commerce. A summons was issued for Syring to appear in federal court in Washington, D.C. AAI is a Washington D.C. based private non-profit organization whose purpose is to encourage the direct participation of Arab Americans in political and civic life in the United States.

Each charge of threatening AAI employees because of their race and national origin and because of their advocacy on behalf of AAI provides for a sentence of no greater than one year in prison, one year of supervised release, and a fine of up to $100,000. Each charge of transmitting a threat in interstate commerce provides for a sentence of no greater than five years in prison, three years of supervised release, and a fine of up to $250,000.

According to court documents, Syring previously pleaded guilty to threatening AAI employees through e-mails and voicemails sent in 2006. Syring was sentenced on July 11, 2008 to 12 months of imprisonment followed by three years of post-release supervision, 100 hours of community service, and was ordered to pay a $10,000 fine.

Following termination of his supervised release, Syring resumed communications with AAI employees, sending AAI employees over 350 e-mails from March 2012 to January 2018. Several of the e-mails Syring sent to AAI employees during this time period contained true threats using language similar to that which formed the basis of his prior conviction.

This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Civil Rights Division Senior Legal Counsel Mark Blumberg and Trial Attorney Nick Reddick.

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

Deputy Attorney General Rod J. Rosenstein announced new Department of Justice policies to advance forensic science at the American Academy of Forensic Sciences 70th Annual Scientific Meeting in Seattle, Washington today. The new guidance implements additional quality assurance measures based on science-informed practices, enhances forensic capacity and efficiency, and increases coordination and collaboration between the Department and state, local, and federal partners.

“President Trump ordered the Department of Justice to reduce crime, and Attorney General Jeff Sessions has made it the Department’s top priority to achieve that goal,” said Deputy Attorney General Rod Rosenstein. “Forensic science, used appropriately, will help us accomplish our mission. The policies that I am announcing today will advance the Justice Department’s commitment to reliable science that helps us to find and report the truth.”

Announcements today include:

• Release of Department of Justice approved Uniform Language for Testimony and Reports for use by Department forensic examiners to provide testimonial consistency and quality assurance;
• Initiation of Department-wide testimony monitoring practices to ensure testimonial consistency and accountability by Department forensic examiners;
• To increase transparency, Department forensic laboratories supporting criminal investigations and prosecutions will begin publicly posting current quality management system documents and summaries of internal validation studies online;
• Leading federal efforts to advance forensic science, the Department announced the re-chartering of the Council of Federal Forensic Laboratory Directors, which will begin meeting again this May.  All executive branch agencies with forensic laboratories and digital analysis entities are invited and encouraged to join.

View full remarks here.

View the “Department of Justice Approved Uniform Language for Testimony and Reports for the Forensic Latent Print Discipline” here.

View the “Department of Justice Testimony Monitoring Framework” here.

View the Memo here.

David Prejean, a former Sergeant in the K-9 Unit of the Iberia Parish Sheriff’s Office (IPSO), pleaded guilty today to assaulting a pre-trial detainee at the Iberia Parish Jail (IPJ) by commanding his K-9 to bite the detainee, and by striking the detainee, all without justification, announced Acting Assistant Attorney General John Gore of the Civil Rights Division and U.S. Attorney Alexander C. Van Hook for the Western District of Louisiana.

According to the charges and other information presented in Court, Prejean was a K-9 Sergeant on the IMPACT Unit, a specialized unit at IPSO. On Dec. 6, 2012, Prejean was called to the Iberia Parish Jail to assist with a shakedown. During the course of the shakedown, an inmate—M.R.—turned to look at Prejean after being told not to, at which point Prejean threw M.R. to the ground and then commanded his dog to bite M.R. Prejean also struck M.R. several times. Despite the fact that M.R. had complied with Prejean’s commands and did not pose a threat to anyone on the rec yard, Prejean allowed the dog to bite M.R. for several seconds before pulling him off of M.R. Prejean’s unlawful use of force resulted in injury to M.R. Following the assault, Prejean wrote a false report designed to cover up his unjustified use of force.

“Every person in the United States, including those who are incarcerated, is protected by the U.S. Constitution,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “When the officers we expect to uphold the rights enshrined in the Constitution willfully violate them, the Justice Department will aggressively prosecute those officers and uphold the rule of law.”

“Law enforcement officers respond to dangerous situations and put their lives at risk every day to serve and protect the public,” said U.S. Attorney Alexander C. Van Hook. “For this sacrifice they have our thanks and respect. Officers also have a moral and legal obligation to protect the civil rights of those in their custody. Those officers who willfully abuse prisoners in their care and violate their rights will be held accountable.”

David Prejean, 38, of Lafayette, Louisiana, will be sentenced by U.S. District Court Judge Dee D. Drell, on May 18 in Alexandria, Louisiana.

This case was investigated by the Lafayette Resident Agency of the Federal Bureau of Investigation, and was prosecuted by Trial Attorney Tona Boyd of the Civil Rights Division and Assistant United States Attorney Mary Mudrick of the Western District of Louisiana.

A former Arkansas state judge was sentenced to five years in prison for perpetrating a seven-year-long fraud and bribery scheme in which he dismissed pending cases in exchange for personal benefits, including sexually related conduct, and then bribed a witness in an attempt to obstruct an official investigation into the scheme.  Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division made the announcement.

O. Joseph Boeckmann, 71, of Wynne, Arkansas, was sentenced by U.S. District Judge Kristine G. Baker of the Eastern District of Arkansas.  Judge Baker also ordered the defendant to to serve three years of supervised release following his prison sentence and pay a fine of $50,000, to account for the financial harm he caused through his fraud scheme. 

According to admissions in his plea agreement, from 2009 to 2015, Boeckmann corruptly used his official position as a district judge for the First Judicial Circuit of Arkansas to dismiss traffic citations and misdemeanor criminal charges for young men in exchange for acts that he claimed were “community service,” but which actually benefited Boeckmann himself.  Boeckmann took official action to order these individuals to perform “community service” and used his access to these individuals during their purported “community service” to take photographs of them in compromising positions.  In other cases, Boeckmann dismissed pending charges against defendants in exchange for sexually related conduct.

Boeckmann, who pleaded guilty to wire fraud and witness tampering in October 2017, admitted that the corrupt use of his office defrauded the State of Arkansas and its citizens of their right to Boeckmann’s honest services and also defrauded various cities and counties in Arkansas, as well as the State of Arkansas and the Arkansas courts, of money and property that they should have received as fines or fees from the individuals whose cases were fraudulently dismissed.

Boeckmann also admitted that during his scheme, he instructed various individuals not to tell anyone about their “community service” sentences.  Then, after Boeckmann learned he was under investigation, he tampered with at least one witness in an attempt to keep his scheme secret.  Specifically, in the fall of 2015, Boeckmann learned of a witness who had provided information to the Arkansas Judicial Discipline and Disability Commission (JDDC) regarding Boeckmann’s practice of imposing personally beneficial “community service” sentences.  Boeckmann directed another individual to pay the witness to write a letter recanting the information the witness gave to the JDDC.  According to his own admissions, Boeckmann did this in order to prevent that witness from providing truthful information about Boeckmann to law enforcement and to influence, delay and prevent that witness’s testimony in an official proceeding. 

The FBI investigated this case with assistance of the Arkansas State Police and the JDDC.  Trial Attorneys Peter Halpern, Jonathan Kravis and Simon Cataldo of the Criminal Division’s Public Integrity Section prosecuted the case, with assistance from Special Prosecutor Jack McQuary of the State of Arkansas Office of the Prosecutor Coordinator. 

Deputy Attorney General Rod Rosenstein joined U.S. Attorney Annette L. Hayes, Seattle Mayor Jenny A. Durkan, the Wales family, the National Association of Former United States Attorneys Foundation, and other law enforcement partners in Seattle today to bring continued and deserved attention to the Department of Justice investigation into the 2001 murder of Assistant U.S. Attorney Thomas C. Wales.

The Department of Justice remains committed to a reward of up to one million dollars for information leading to the arrest and conviction of those responsible. In addition to and separate from the Department’s reward, the National Association of Former United States Attorneys Foundation President Mike McKay announced that his organization is offering up to a $525,000 reward to the same individuals as the Justice Department for information leading to the Department’s prosecution of those responsible for Wales’ murder. Wales worked as a federal prosecutor in the Western District of Washington for 18 years before he was shot and killed in his home the evening of Oct. 11, 2001.

“Any attack on a law enforcement officer is an attack on our entire justice system,” Deputy Attorney General Rosenstein said. “The Wales family has shown incredible strength, courage, and devotion. As Deputy Attorney General, I intend to see that we leave no stone unturned in the search for the killer who murdered Tom Wales. We will continue to pursue this case for as long as it takes to achieve justice. The killer will be held accountable.”

“The murder of Tom Wales more than 16 years ago remains an affront to the rule of law and a devastating loss to all who knew Tom and the community he so loyally served,” said U.S. Attorney Annette L. Hayes. “I am deeply grateful to the National Association of Former United States Attorneys and their foundation for establishing a separate reward in this case.  As the Department of Justice has made clear time and again — we will never rest until justice is done in this case.”

A task force led by the Federal Bureau of Investigation and Seattle Police Department continues to work actively and intensively. The investigative team has been able to successfully investigate thousands leads and continues to devote resources to focused investigative avenues. In just the last 12 months, the investigative team has served  nearly 50 new subpoenas and has pursued hundreds of investigative actions. 

Investigators believe that there are people who have information and hope that the significant reward provides an additional incentive for coming forward. The task force asks the public to help partner in its efforts for justice, and closure for the Wales family.

“The FBI remains committed to bringing closure for the Wales family,” said FBI Special Agent in Charge Jay S. Tabb, Jr., of the FBI’s Seattle Field Division. “We continue to offer a reward of up to $1 million for information that helps us resolve this investigation. We know that there are people with pertinent knowledge and we are pleading with you to come forward to the FBI. Please help us solve this case for the Wales family.”

“We haven’t forgotten about Tom Wales, and are leaving no stone unturned in this investigation,” said Seattle Police Chief Carmen Best. “We will continue to work in collaboration with our federal partners to bring the individual responsible for his brutal murder to justice.”

“Local prosecutors will continue our partnership with federal investigators on this case, said Dan Satterberg, King County Prosecuting Attorney. “We are determined to solve this terrible crime.”

The Seattle Prosecutor Murder (SEPROM) Task Force is a joint effort by the FBI, the Seattle Police Department, the Department of Justice, and the King County Prosecuting Attorney’s Office. It includes agents, detectives, analysts, two Department of Justice prosecutors, a King County prosecutor, and FBI personnel assisting across the nation to cover far-ranging leads.

Anyone with information is encouraged to contact the FBI and can do so confidentially by phone at (206) 622-0460 or by e-mail at walestips@fbi.gov. People can also send anonymous tips to the FBI at 1110 Third Avenue, Seattle, WA, 98101.

The complete library of information, including multi-media materials for download and use, the FBI Seeking Information poster, details about the tip lines, and more can be found at https://www.fbi.gov/wanted/seeking-info/thomas-crane-wales.

The Justice Department today announced it has reached a settlement with Food Love 125 Inc., d/b/a Ichiba Ramen, a New York City restaurant, to resolve the Department’s investigation into whether the restaurant violated the Immigration and Nationality Act’s (INA) anti-discrimination provision. 

A worker’s complaint initiated the Justice Department’s investigation, which revealed that Ichiba Ramen’s former chef discriminated against a job applicant when it refused to hire him as a server because he is not Korean or Japanese.  The investigation also revealed that prior chefs had not placed such limitations on the restaurant’s hiring of servers. The INA’s anti-discrimination provision prohibits employers with four to 14 employees from discriminating against individuals because of their national origin.

Under the settlement agreement, Ichiba Ramen will pay a civil penalty, undergo training on the INA’s anti-discrimination provision, and post notices informing workers about their rights under the INA.  The restaurant also paid $1,760 in back pay to compensate the affected applicant.

“Today’s settlement should serve as a reminder to small employers that hiring discrimination based on national origin violates the INA’s anti-discrimination provision, and the Justice Department is committed to holding employers accountable for such violations,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. 

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.  Title VII of the Civil Rights Act of 1964, as amended, prohibits national origin discrimination by employers that employ 15 or more workers. 

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.

Today the Justice Department reached a settlement agreement with Atlantis Events, Inc., (Atlantis), a cruise and resort vacation company with offices in West Hollywood, California, to ensure that individuals who are deaf or hard of hearing are provided effective communication when travelling with the company.

The settlement agreement resolves complaints under the Americans with Disabilities Act (ADA) in which individuals who are deaf alleged that Atlantis failed to provide them with effective communication on a cruise.  Atlantis cooperated with the Department throughout the investigation.

Under the agreement, Atlantis will ensure that interpreters, transcription services, written exchanges, assistive listening devices, captioning, or other auxiliary aids and services are provided to individuals with hearing disabilities free of charge when necessary for effective communication, and it will designate an ADA liaison on all of its cruises to respond to disability-related requests from passengers.  In addition, Atlantis will pay a civil penalty of $10,000 to the United States and $9,000 in damages to the complainants.

“The ADA guarantees people with disabilities equal access to public accommodations, including communications access,” said Acting Assistant Attorney General John Gore of the Civil Rights Division.  “People with disabilities who are deaf or hard of hearing must be given the opportunity to fully participate on cruises and at resorts, and enjoy the services and activities a vacation company offers.” 

“Individuals with disabilities, including those who are deaf or hard of hearing, have a right under federal law to the equal enjoyment of the services that travel companies provide to the public,” said U.S. Attorney Nicola T. Hanna for the Central District of California.  “Atlantis is to be complimented for acknowledging its obligations under the Americans with Disabilities Act, and agreeing to implement policies and practices to ensure equal access and effective communication.”

People interested in finding out more about the ADA or this settlement agreement can call the toll-free ADA Information Line at 800-514-0301 or 800-514-0383 (TDD), or access the ADA website at http://www.ada.gov.

The Justice Department today announced that the United States District Court for the District of Arizona has approved an agreement between the Department and the state of Arizona to help ensure that military service members, their family members, and U.S. citizens living overseas have an opportunity to participate fully in the upcoming Feb. 27, 2018, special primary election and April 24, 2018, special general election to fill a vacancy in the state’s 8th Congressional District.  The agreement is necessary to ensure compliance with the Uniformed and Overseas Citizens Absentee Voting Act (UOCAVA).

The agreement provides additional time for state election officials to receive and count absentee ballots from eligible UOCAVA voters, in order to ensure that such voters will have sufficient time to receive and submit their absentee ballots for the Feb. 27, 2018 special primary election.  Under the agreement, UOCAVA ballots sent back by mail will be accepted for an additional 10 days–until March 9, 2018–so long as they are executed and sent by Feb. 27, 2018 and otherwise valid.  The agreement also requires that election officials take measures to notify UOCAVA voters of this extension and notify them of their options of returning their marked ballots by electronic upload or fax, or express mail at no expense to the voter.  The agreement also provides additional steps, if needed, to protect UOCAVA voters for the April 24, 2018 special general election.

“This agreement reflects this Department’s deep commitment to protecting the right to vote for members of our armed forces, their families, and overseas citizens, and ensuring that these voters are afforded a meaningful opportunity to vote in all federal elections, including special vacancy elections,” said Acting Assistant Attorney General John Gore for the Civil Rights Division. “I commend Arizona, the Secretary of State’s office, and other state officials, who worked collaboratively with the Department to achieve our shared goal of providing UOCAVA voters a full and fair opportunity to participate in the state’s upcoming special election, and all future special federal elections.”

UOCAVA requires states to allow uniformed service voters, serving both overseas and within the United States, and their families, and U.S. citizens residing overseas to register to vote and to vote absentee for all elections for federal office.  States are required to transmit absentee ballots to these voters, by mail or electronically at the voter’s option, no later than 45 days before each federal election, including special elections to fill vacancies for federal office.

Arizona law mandates a truncated election schedule for holding special elections to fill a vacancy for U.S. Representative, which prevented election officials from sending final ballots to UOCAVA voters by the 45th day before the Feb. 27, 2018 special primary election.  Under the terms of the agreement, Arizona will also provide reports to the Department of the notice provided to affected voters, receipt of ballots for the special primary election, and transmission of ballots for the special general election.  The state is also required to take the actions necessary to ensure that UOCAVA voters have a fair and reasonable opportunity to participate in future federal special elections. 

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

WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Food Love 125 Inc., conocido comercialmente como Ichiba Ramen, un restaurante en Nueva York. El Acuerdo resuelve la investigación liderada por el Departamento para determinar si el restaurante vulneró la disposición antidiscriminatoria de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).

La investigación del Departamento de Justicia se inició como respuesta a una denuncia presentada por un trabajador, que puso de manifiesto que el chef antiguo de Ichiba Ramen discriminó a un postulante de trabajo al negarse a contratarlo como camarero por no ser coreano o japonés. Asimismo, la investigación reveló que los chefs anteriores no habían impuesto tales limitaciones a la contratación de camareros para el restaurante.  La disposición antidiscriminatoria de la INA prohíbe que empleadores con entre 4 y 14 empleados discriminen a individuos por motivos de su nacionalidad de origen.

Conforme el acuerdo, Ichiba Ramen pagará sanciones civiles, participará en una capacitación sobre la disposición antidiscriminatoria de la INA y publicará notificaciones para informar a los trabajadores acerca de sus derechos. El restaurante también pagó $1.760 en pagos retroactivos para compensar al postulante afectado.

«El acuerdo que hoy celebramos debe servir como recordatorio a los empleadores pequeños que la discriminación en la contratación vulnera la disposición antidiscriminatoria de la INA y que el Departamento de Justicia está comprometido a obligar a los empleadores a rendir cuentas ante tales vulneraciones», declaró el Fiscal General Adjunto en funciones, John Gore, de la División de Derechos Civiles.           

La Sección de Derechos de Inmigrantes y Empleados (IER, por sus siglas en inglés), que anteriormente se conocía como la Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración, que pertenece a la División, es responsable de aplicar la disposición antidiscriminatoria de la INA. Entre otras cosas, esta ley prohíbe la discriminación por motivos de estatus migratorio, ciudadanía o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar; las represalias y la intimidación. El Título VII de la ley de Derechos Civiles de 1964, en su forma enmendada, prohíbe la discriminación por parte de empleadores que emplean a 15 empleados o más por motivos de la nacionalidad de origen de los mismos.

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

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

Attorney General Jeff Sessions has ordered the creation of the Justice Department’s Cyber-Digital Task Force, which will canvass the many ways that the Department is combatting the global cyber threat, and will also identify how federal law enforcement can more effectively accomplish its mission in this vital and evolving area.

“The Internet has given us amazing new tools that help us work, communicate, and participate in our economy, but these tools can also be exploited by criminals, terrorists, and enemy governments,” Attorney General Sessions said.  “At the Department of Justice, we take these threats seriously.  That is why today I am ordering the creation of a Cyber-Digital Task Force to advise me on the most effective ways that this Department can confront these threats and keep the American people safe.”

The Task Force will be chaired by a senior Department official appointed by the Deputy Attorney General and will consist of representatives from the Department’s Criminal Division, the National Security Division, the United States Attorney’s Office community, the Office of Legal Policy, the Office of Privacy and Civil Liberties, the Office of the Chief Information Officer, the ATF, FBI, DEA, and the U.S. Marshals Service.  The Deputy Attorney General may invite representatives from other Department of Justice components and from other federal agencies to participate in the Task Force. He may also establish subcommittees to focus the Task Force’s efforts.

The Task Force will be responsible for issuing a report to the Attorney General by the end of June. 

The Attorney General has asked the Task Force to prioritize its study of efforts to interfere with our elections; efforts to interfere with our critical infrastructure; the use of the Internet to spread violent ideologies and to recruit followers; the mass theft of corporate, governmental, and private information; the use of technology to avoid or frustrate law enforcement; and the mass exploitation of computers and other digital devices to attack American citizens and businesses.  The scope of the Task Force’s report is not limited to these categories.

The Department of Justice announced that a grand jury in the District of Columbia today returned an indictment presented by the Special Counsel’s Office. The indictment charges thirteen Russian nationals and three Russian companies for committing federal crimes while seeking to interfere in the United States political system, including the 2016 Presidential election. The defendants allegedly conducted what they called “information warfare against the United States,” with the stated goal of “spread[ing] distrust towards the candidates and the political system in general.”  

“This indictment serves as a reminder that people are not always who they appear to be on the Internet,” said Deputy Attorney General Rod J. Rosenstein. “The indictment alleges that the Russian conspirators want to promote discord in the United States and undermine public confidence in democracy. We must not allow them to succeed. The Department of Justice will continue to work cooperatively with other law enforcement and intelligence agencies, and with the Congress, to defend our nation against similar current and future schemes. I want to thank the federal agents and prosecutors working on this case for their exceptional service. And we received exceptional cooperation from private sector companies like Facebook, Oath, PayPal, and Twitter.”

According to the allegations in the indictment, twelve of the individual defendants worked at various times for Internet Research Agency LLC, a Russian company based in St. Petersburg, Russia. The other individual defendant, Yevgeniy Viktorovich Prigozhin, funded the conspiracy through companies known as Concord Management and Consulting LLC, Concord Catering, and many subsidiaries and affiliates. The conspiracy was part of a larger operation called “Project Lakhta.” Project Lakhta included multiple components, some involving domestic audiences within the Russian Federation and others targeting foreign audiences in multiple countries.   

Internet Research Agency allegedly operated through Russian shell companies. It employed hundreds of persons for its online operations, ranging from creators of fictitious personas to technical and administrative support, with an annual budget of millions of dollars. Internet Research Agency was a structured organization headed by a management group and arranged in departments, including graphics, search-engine optimization, information technology, and finance departments. In 2014, the agency established a “translator project” to focus on the U.S. population. In July 2016, more than 80 employees were assigned to the translator project.

Two of the defendants allegedly traveled to the United States in 2014 to collect intelligence for their American political influence operations.

To hide the Russian origin of their activities, the defendants allegedly purchased space on computer servers located within the United States in order to set up a virtual private network. The defendants allegedly used that infrastructure to establish hundreds of accounts on social media networks such as Facebook, Instagram, and Twitter, making it appear that the accounts were controlled by persons within the United States. They used stolen or fictitious American identities, fraudulent bank accounts, and false identification documents. The defendants posed as politically and socially active Americans, advocating for and against particular political candidates. They established social media pages and groups to communicate with unwitting Americans. They also purchased political advertisements on social media.  

The Russians also recruited and paid real Americans to engage in political activities, promote political campaigns, and stage political rallies. The defendants and their co-conspirators pretended to be grassroots activists. According to the indictment, the Americans did not know that they were communicating with Russians. 

After the election, the defendants allegedly staged rallies to support the President-elect while simultaneously staging rallies to protest his election. For example, the defendants organized one rally to support the President-elect and another rally to oppose him—both in New York, on the same day.

On September 13, 2017, soon after the news media reported that the Special Counsel’s Office was investigating evidence that Russian operatives had used social media to interfere in the 2016 election, one defendant allegedly wrote, “We had a slight crisis here at work: the FBI busted our activity.... So, I got preoccupied with covering tracks together with my colleagues.”

The indictment includes eight criminal counts. Count One alleges a criminal conspiracy to defraud the United States, by all of the defendants. The defendants allegedly conspired to defraud the United States by impairing the lawful functions of the Federal Election Commission, the U.S. Department of Justice, and the U.S. Department of State in administering federal requirements for disclosure of foreign involvement in certain domestic activities. 

Count Two charges conspiracy to commit wire fraud and bank fraud by Internet Research Agency and two individual defendants.

Counts Three through Eight charge aggravated identity theft by Internet Research Agency and four individuals.

There is no allegation in the indictment that any American was a knowing participant in the alleged unlawful activity. There is no allegation in the indictment that the charged conduct altered the outcome of the 2016 election. 

Everyone charged with a crime is presumed innocent unless proven guilty in court. At trial, prosecutors must introduce credible evidence that is sufficient to prove each defendant guilty beyond a reasonable doubt, to the unanimous satisfaction of a jury of twelve citizens.

The Special Counsel's investigation is ongoing. There will be no comments from the Special Counsel at this time.

Attorney General Jeff Sessions offered his condolences and support for the people of Broward County, Florida yesterday.  He also ordered the Department of Justice to assist the victims of the tragic shooting at Marjory Stoneman Douglas High School as well as the state and local agencies that are leading the investigation.

The Attorney General offered the following statement: “It is now clear that the warning signs were there and tips to the FBI were missed. We see the tragic consequences of those failures.

“The FBI in conjunction with our state and local partners must act flawlessly to prevent all attacks. This is imperative, and we must do better. I have ordered the Deputy Attorney General to conduct an immediate review of our process here at the Department of Justice and FBI to ensure that we reach the highest level of prompt and effective response to indications of potential violence that come to us. This includes more than just an error review but also a review of how we respond. This will include possible consultation with family members, mental health officials, school officials, and local law enforcement.

“We will make this a top priority. It has never been more important to encourage every person in every community to spot the warning signs and alert law enforcement. Do not assume someone else will step up--all of us must be vigilant. Our children's lives depend on it.”

***

Following are some of the resources already deployed by the Department and available to assist with the state and local response:

• The FBI has approximately 250 personnel working on this matter, including personnel in Miami and at FBI headquarters in Washington, D.C.
• The FBI’s Evidence Response Team is assisting in evidence collection and analysis and providing technical assistance with phone and social media investigation.
• The ATF dispatched 17 special agents from the Miami Field Division to assist at the scene, and these agents continue to support the Broward County Sheriff’s Office in follow-up investigation.
• 14 ATF agents from ATF’s West Palm Beach and Fort Pierce Field Offices were on stand-by to assist during the scene response, and are now supporting the follow-up investigation.
• ATF completed an urgent trace of a recovered firearm through its National Tracing Center.
• ATF assisted in ballistics analysis through its National Integrated Ballistics Information Network, conducted witness interviews, and canvassed area federal firearms licensees for information that may assist the investigation. 
• Numerous components of the Department have made their victim-witness coordinators available for victim and witness assistance as needed.
• The U.S. Marshals Service has deployed eight personnel—four from the Florida/Caribbean Fugitive Task Force and four from the Southern District of Florida office.  Additional personnel were staged and remain ready to respond if needed.
• U.S. Attorney Benjamin Greenberg remains in contact with the state prosecutor and Broward County Sheriff’s Office leadership and has made all federal resources available as needed.
• Three Assistant U.S. Attorneys are currently assisting with the investigation, and one is staffing the FBI Command Post.
• Through the Antiterrorism and Emergency Assistance Program, the Office for Victims of Crime has funding available to support victim-assistance activities, such as crisis intervention and grief trauma counseling, and to reimburse victims for certain expenses related to the shooting.
• The Office for Victims of Crime and the Bureau of Justice Assistance stand ready to assist the state and local authorities.

This list should not be considered exhaustive.  The Department of Justice will continue to do whatever it can to help the people of Florida at this difficult time.

Attorney General Sessions' statement on immigration reform: “President Trump put forth reasonable, fair, and effective policy pillars for immigration reform that serves the national interest and would close loopholes in law and court decisions that frustrate the ability of the men and women of the Departments of Justice and Homeland Security to do the jobs that Congress and the American people expect them to do.  President Trump’s proposal would go a long way toward solving those problems by: (1) enhancing border security, including a wall and the elimination of legal loopholes that facilitate illegal immigration; (2) ending the illogical visa lottery system; (3) ending extended family chain migration; and, (4) solving the DACA problem. Nearly all of the proposals advanced in the Senate this week failed to address these issues.

“One proposal in particular would have eviscerated the authority of the Department of Homeland Security to arrest, detain, and remove the vast majority of illegal aliens in the country by limiting enforcement through mandated “prioritization” to criminal aliens, national security threats and—perhaps most surprisingly—future illegal immigrants. It failed to secure the border and left in place loopholes in our laws that allow the near unfettered entry of unaccompanied minors and family units. These loopholes create inexplicable and reckless incentives for new illegal immigration and perpetuate the catastrophic “catch and release” policy that has facilitated the presence of hundreds of thousands of illegal aliens in the United States. It also failed to close loopholes that make it difficult to remove criminal aliens, did nothing to combat sanctuary jurisdictions, failed to end unchecked extended family chain migration, and failed to address the outdated and dangerous visa lottery program. 

“From a law enforcement perspective, these failures undermine the work of our Department of Justice prosecutors and investigators.

“We can work together to pass meaningful legislation. H.R. 4670, the Securing America’s Future Act, which has been sponsored in the House of Representatives by House Judiciary Committee Chairman Bob Goodlatte, is a reasonable and fair bill that closes loopholes, establishes good policies, fulfills the President’s four pillars, and advances America’s legitimate national interest.”

Attorney General Jeff Sessions issued the following statement on the Senate’s confirmation of John C. Demers as Assistant Attorney General for the National Security Division: “Among his outstanding accomplishments in a distinguished legal career, John Demers was on the leadership team at the creation of the National Security Division, which today plays a crucial role in protecting Americans from the threat of terrorism, and protecting our national security from compromise by state-sponsored espionage, cyber intruders and the unauthorized disclosure of classified information,” said Attorney General Sessions.  “I am grateful to the Senate for confirming John and I look forward to his return to the department, where his significant experience in both the private sector and public service will most certainly benefit the American people. We look forward to the Senate quickly confirming our remaining nominees.”

The mission of the National Security Division is to carry out the Department’s highest priority: protect the United States from threats to our national security by pursuing justice through the law. The NSD's organizational structure is designed to ensure coordination and unity of purpose between prosecutors and law enforcement agencies, on the one hand, and intelligence attorneys and the Intelligence Community, on the other, thus strengthening the effectiveness of the federal government’s national security efforts.

Prior to his confirmation, Mr. Demers was Vice President and Assistant General Counsel at The Boeing Company. He has held several senior positions at the company including in Boeing Defense, Space, and Security and as lead lawyer and head of international government affairs for Boeing International.

From 2006 to 2009, Mr. Demers served on the first leadership team of the Justice Department’s National Security Division, first as Senior Counsel to the Assistant Attorney General and then as Deputy Assistant Attorney General for the Office of Law & Policy. Before that, he served in the Office of Legal Counsel. For the past eight years, he has taught national security law as an adjunct professor at the Georgetown University Law Center.

Mr. Demers worked in private practice in Boston and clerked for Associate Justice Antonin Scalia of the U.S. Supreme Court and Judge Diarmuid O’Scannlain of the U.S. Court of Appeals for the Ninth Circuit. He graduated from Harvard Law School and the College of the Holy Cross.

Paul Jumroon, also known as Veraphon Phatanakitjumroon, 54, of Depoe Bay, Oregon, and a naturalized citizen originally from Thailand, pleaded guilty yesterday in a U.S. District Court in Portland, Oregon, to forced labor, visa fraud conspiracy, and filing a false federal income tax return, announced Acting Assistant Attorney General John Gore of the Justice Department’s Civil Rights Division, U.S. Attorney Billy J. Williams of the District of Oregon, Special Agent in Charge Renn Cannon of the FBI in Oregon, and Special Agent in Charge Darrell Waldon of IRS Criminal Investigation’s Seattle Field Office.  Jumroon waived indictment by a federal grand jury and pleaded guilty to an information filed by the United States Attorney’s Office and the Civil Rights Division.

According to the defendant’s plea agreement and admissions in court, between 2011 and 2014, the defendant and his associates fraudulently obtained E-2 visas to bring Thai nationals into the United States to provide cheap labor at his restaurants, Curry in a Hurry in Lake Oswego, Oregon and Teriyaki Thai in Ridgefield, Washington. E-2 visas are granted to foreign nationals who invest substantial money in a U.S. business and direct its operations, and to employees who have special qualifications that make their services essential to that business.

Jumroon used the fraudulently obtained visas to entice four forced labor victims to come to the United States by making false promises to them. According to court documents, the first victim arrived in the United States in June 2012, and the second victim arrived in April 2013. Jumroon used inflated travel expenses, debt manipulation, threats of deportation, serious financial and reputational harm, verbal abuse, and control over identification documents, among other means, to compel the victims to work 12 hours a day, six to seven days a week, for minimal pay, until they managed to leave in October 2013 and 2014, respectively.

As part of the defendant’s guilty plea, Jumroon agreed to pay all four victims a combined $131,391.95 in restitution for their unpaid labor in connection with his forced labor scheme.

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

“Combatting human trafficking is a priority for Attorney General Sessions and the Justice Department,” said Acting Assistant Attorney General Gore of the Civil Rights Division. “Securing a guilty plea today is just another example of this commitment and the work of the Civil Rights Division, in coordination with the U.S. Attorney’s Office, to hold those who choose to exploit vulnerable individuals accountable for their actions.”

“Human trafficking is a degrading crime that undermines our nation’s most basic promise of liberty. This defendant preyed on the hopes of vulnerable workers, using fear to compel them to work long hours for little pay. He turned a promise of employment and a better life into a human tragedy for his own financial gain,” said U.S. Attorney Billy J. Williams for the District of Oregon. “This case demonstrates our firm commitment to holding traffickers accountable and restoring the rights, freedom and dignity of victims. It should also serve as a reminder that these types of crimes happen all around us and often in plain sight. We encourage all Oregonians to remain watchful for signs of human trafficking and to notify law enforcement immediately when something seems amiss.”

“The American dream is built on the belief that hard work can bring about a better life. For the victims in this case, that dream turned into a nightmare of false promises, forced labor and abuse,” said Renn Cannon, Special Agent in Charge of the FBI in Oregon. “These cases are very difficult to identify and work, so we are thankful the courageous victims in this case were able to reach out for help through trusted community contacts.”

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

Jumroon faces a maximum of 20 years in prison for forced labor, five years in prison for visa fraud conspiracy, and three years in prison for filing a false tax return. His sentencing is scheduled for May 24 before United States District Judge Anna J. Brown.

Attorney General Sessions recently issued a proclamation commemorating January as National Slavery and Human Trafficking Prevention Month, and the Justice Department recently hosted a Human Trafficking Summit where both the Attorney General and Associate Attorney General Rachel Brand gave remarks.

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

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

Update: Defendant Paul Jumroon no longer owns either of the two restaurants mentioned in this release.

A Massachusetts temporary employment agency operator pleaded guilty today in Boston federal district court to an indictment charging him with conspiring to defraud the government, failing to pay over employment taxes and obstructing the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.

According to the indictment and statements provided in Court, Tien Chau ran an employment agency that provided temporary labor to businesses in Massachusetts and New Hampshire. The agency operated under at least four different names: Central Boston Staffing Services, Metro Boston Staffing Services, General Staffing Inc. and Kim’s Staffing Inc.  Chau and others used nominees to conceal their ownership of the business.  

From 2006 through 2011, Chau and others conspired to conceal the agency’s total number of employees from the Internal Revenue Service (IRS) to lower the staffing agencies’ employment tax liabilities.  Chau attempted to hide the size of their workforce from the IRS by paying most of the employees cash under the table and filing false employment tax returns that both underreported the number of employees and omitted wages paid in cash.  Chau and others in the conspiracy allegedly cashed over $11 million in client checks at a check cashing facility in Worcester and used the staffing agency’s site supervisors, office manager and drivers to pay the employees in cash. 

The conspirators sought to obstruct an investigation by, among other things, directing an employee, after learning of her interview with special agents, to assist with shredding the agency’s records.  Chau also allegedly destroyed and removed computers and computers equipment from the business’s office.

A sentencing date has been set for May 17, 2018.  Chau faces a statutory maximum sentence of five years in prison for the conspiracy charge, five years in prison for each employment tax count, and three years in prison for obstructing the internal revenue laws.  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 Trial Attorneys Brittney Campbell and Shawn Noud of the Tax Division, who are prosecuting the case. 

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

Two real estate investors pleaded guilty today for their roles in a conspiracy to rig bids at public real estate foreclosure auctions in Mississippi, the Department of Justice announced. 

“Shannon and Jason Boykin are the first two defendants to plead guilty in the Antitrust Division’s active, ongoing investigation into anticompetitive behavior at real estate foreclosure auctions in Mississippi,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “In the past few years, the Division has secured convictions of over 100 individuals around the country.  The Division remains committed to rooting out anticompetitive conduct at foreclosure auctions.”    

Felony charges against Shannon Boykin and Jason Boykin were filed on February 1, 2018, in the U.S. District Court for the Southern District of Mississippi.  According to court documents, from at least as early May 22, 2012, through at least as late as March 22, 2017, Jason and Shannon Boykin conspired with others to rig bids, designating a winning bidder to obtain selected properties at public real estate foreclosure auctions in the Southern District of Mississippi. Co-conspirators made and received payoffs in exchange for their agreement not to bid.  

“Rigging, cheating and swindling foreclosure auctions undermines confidence in the marketplace, defrauds companies, and hurts owners of foreclosed homes.  These criminal actions harm us all, and I commend the Antitrust Division and the FBI for their investigation and prosecution of these crimes throughout the country. This office will continue to work with our law enforcement partners to combat illegal, anticompetitive behavior and protect victims,” said United States Attorney D. Michael Hurst, Jr. for the Southern District of Mississippi.

“The criminal actions of the defendants in this case provide a clear example of why enforcement of the Sherman Act remains necessary in maintaining a competitive field of commerce,” said Special Agent in Charge Christopher Freeze of the FBI in Mississippi. “The FBI will continue to work with the U.S. Department of Justice’s Antitrust Division in identifying such financial schemes that attempt to take advantage of the competitive process, including schemes targeting foreclosure auctions.”

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

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

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

The Justice Department today announced it has reached an agreement with the City and County of Honolulu, Hawaii (Honolulu or the City) and its contracted towing company, All Island Automotive Towing (All Island Towing), to remedy alleged violations of the Servicemembers Civil Relief Act (SCRA).  The Department’s lawsuit, filed Feb. 15, 2018, alleges that Honolulu and All Island Towing violated the SCRA by auctioning or otherwise disposing of cars owned by protected servicemembers without first obtaining the required court orders.  

Under the agreement, Honolulu must adopt new SCRA-compliant procedures, compensate three servicemembers who complained to military legal assistance attorneys that the City had unlawfully auctioned off their cars while they were at sea aboard Navy ships, and establish a $150,000 settlement fund to compensate other servicemembers whose SCRA rights may have been violated.

The Department launched its investigation after receiving a referral from military legal assistance officer Geoffrey Irving, now a Captain in the United States Marines, alleging that Honolulu had auctioned a marine’s vehicle while he was deployed.  Two Navy legal assistance attorneys, Ms. Sarah Courageous and Lieutenant Commander (LCDR) Lena Whitehead, also requested that the Department investigate Honolulu on behalf of servicemembers whose vehicles had been auctioned while they were deployed.  For more than five years, Ms. Courageous and LCDR Whitehead sent letters to Honolulu’s Corporation Counsel explaining that auctioning active-duty servicemembers’ cars without court orders violated the SCRA, but Honolulu continued the practice.

Marine Staff Sergeant (SSgt.) Orrin Sanford’s car was auctioned while he was aboard a U.S. Navy ship en route to Camp Foster in Okinawa, Japan.  The vehicle, which was towed from the street in front of his home, had decals in the front windshield that are distributed only to Department of Defense employees for base access.  Honolulu mailed a notice to SSgt. Sanford’s base address that it had taken his car into custody, but by the time the notice reached the ship, the City had already auctioned off the car.  SSgt. Sanford’s military legal assistance attorney notified Honolulu that it had violated the SCRA and requested reimbursement for the vehicle, but Honolulu refused.  As a result of Honolulu’s actions, SSgt. Sanford has had to continue making payments on a car that he no longer owns.

Navy Chief Petty Officer (CPO) Timothy Hartzog was also aboard a U.S. Navy ship when he learned that his car had been towed by Pinky Tows, a subcontractor of All Island Towing.  CPO Hartzog executed a Power of Attorney aboard the ship designating a fellow chief petty officer as his agent.  Pinky Tows refused to release the vehicle to that officer or to allow him to retrieve valuable tools and personal items from the trunk.  All Island Towing then disposed of the vehicle and its contents.  In addition to losing valuable tools and irreplaceable personal items, CPO Hartzog had to continue making payments on a car he no longer owned.

Navy Petty Officer Second Class (PO2) Cheri Tarbet was at the end of a six month deployment to the South Pacific when her roommate told her that her car was no longer parked on the street in front of their home.  When PO2 Tarbet returned to Honolulu the following month, she attempted to report the car as stolen and learned from the police department that the car had been auctioned by Honolulu.  PO2 Tarbet never received a notice from Honolulu that it had taken her vehicle into custody.  A military legal assistance officer sent a letter to Honolulu indicating that PO2 Tarbet was an active-duty servicemember and requested restitution, but Honolulu refused to provide any reimbursement.

The Department’s investigation revealed that between 2011 and 2016, Honolulu auctioned 1,440 cars registered to individuals who had identified themselves as servicemembers on City forms during the motor vehicle registration process.  Honolulu’s new procedures will ensure that servicemembers receive notice that their car has been taken into custody by Honolulu, even if they are deployed off island, and requires the City to obtain a court order or a valid SCRA waiver prior to auctioning a car owned by an active-duty servicemember.

“The Justice Department is committed to working tirelessly to protect the rights of the servicemembers who make great personal sacrifices in service to our country,” said Acting Assistant Attorney General John  Gore of the Civil Rights Division  “We appreciate that Honolulu and All Island Towing have been working cooperatively with the Department to reach a settlement that compensates servicemembers who lost their cars and personal possessions and that provides ongoing protections for the thousands of servicemembers stationed in Honolulu.” 

“My office will continue to work with the Civil Rights Division to ensure that servicemembers who dedicate their lives to preserving our security and freedom do not forfeit their rights in doing so,” said U.S. Attorney Kenji M. Price of the District of Hawaii.

The SCRA protects servicemembers from certain civil proceedings that could affect their legal rights while they are in military service.  One of those protections is the requirement that a person holding a lien on the property or effects of an active-duty servicemember obtain a court order prior to enforcing the lien.  By failing to secure court orders before auctioning or disposing of cars owned by protected servicemembers, Honolulu and All Island Towing prevented servicemembers from obtaining a court’s review of whether the auction should be delayed or adjusted to account for their military service.

The SCRA also provides protections for active duty servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the Department’s SCRA enforcement, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe that their SCRA rights have been violated should contact their nearest Armed Forces Legal Assistance Program Office.  Office locations may be found at legalassistance.law.af.mil/content/locator.php.

Former Chief Counsel Raphael A. Sanchez of U.S. Immigration and Customs Enforcement’s (ICE) Office of Principal Legal Advisor pleaded guilty today for a wire fraud and aggravated identity theft scheme involving the identities of numerous aliens, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and ICE Deputy Director Thomas D. Homan.

Sanchez, 44, of Seattle, Washington, will be sentenced on May 11, before U.S. District Judge Robert S. Lansik of the Western District of Washington. 

“It is the duty of our federal immigration authorities to ensure the honest enforcement of our nation’s immigration laws,” said Acting Assistant Attorney General Cronan.  “Raphael Sanchez betrayed that solemn responsibility and abused his official position to prey upon aliens for his own personal gain.  We should not let one bad actor detract from the dedicated work done by all ICE agents and attorneys to keep our neighborhoods safe, and ICE should be commended for quickly and fully investigating this matter and referring it to the Justice Department for prosecution.” 

“At the top of ICE’s core values is integrity, with an expectation that our employees adhere to the highest standards of honesty and professional conduct,” said Deputy Director Homan.  “While I am appalled by these egregious, independent acts of criminal misconduct by Mr. Sanchez, I am grateful to the men and women of ICE who do their job with the utmost professionalism every day, including those in the Seattle Office of Chief Counsel, who I’m confident will continue to accomplish their mission with integrity and dedication, and our agents in the ICE Office of Professional Responsibility, who investigated this case and presented it for successful prosecution.”

According to admissions in the plea agreement, from October 2013 through Oct. 25, 2017, Sanchez, who had responsibility over immigration removal proceedings in Alaska, Idaho, Oregon and Washington, intentionally devised a scheme to defraud seven aliens in various stages of immigration removal proceedings.  For his own personal gain, Sanchez used the personally identifiable information of those aliens to open lines of credit and personal loans in their names, manipulated their credit bureau files and transferred funds to and purchased goods for himself using credit cards issued in their names.    

Sanchez admitted that he obtained personally identifiable information of the victim aliens by using ICE’s official computer database systems and by accessing their official, hard-copy immigration A-files, and then forged identification documents on his work computer, such as social security cards and Washington State driver’s licenses, in the victims’ names.  Sanchez used the forged documents to open credit card and bank accounts in the names of aliens, which he controlled.  

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

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

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

On Wednesday, February 14, 2018, federal search warrants were executed at the following locations in Iowa and Oklahoma:

• 4600 block of Hubbell Avenue, Des Moines
• 1800 block of Dean Avenue, Des Moines
• 3100 block of East Tiffin Avenue, Des Moines
• 300 block of North Street, Promise City
• 1000 block of 69th Street, Windsor Heights
• 200 block of East Morton Street, Lucas
• 400 block of North 1st Street, Carlisle
• 18000 block of Oregon Street, Milo
• 1300 block of Andover Court, Oklahoma City, Oklahoma

The searches at these locations were an official law enforcement action involving officers, agents, and investigators from the Des Moines Police Department (DMPD); Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF); Iowa Division of Narcotics Enforcement (DNE); Iowa State Patrol (ISP); Mid-Iowa Narcotics Enforcement Task Force – East (MINE – East); Central Iowa Drug Task Force (CIDTF); South Central Iowa Drug Task Force (SCIDTF); Wayne County Sheriff’s Office; and Lucas County Sheriff’s Office.

The following individuals were charged with possession with the intent to distribute methamphetamine:

• Terry Carl Sapp, 55, Des Moines
• Jennifer Michelle Jesse, 39, Des Moines
• Nicholas Allen George, 44, Des Moines
• Timothy Charles McClain, 58, Promise City
• Jeffrey Chaffee, 54, Carlisle
• Samuel Ivan Lamb, 57, Lucas

No other information or comments will be released until documents have been filed with the court as part of the public record.

The Department of Justice yesterday filed a complaint in the Eastern District of Michigan to revoke the naturalized U.S. citizenship of Humayun Kabir Rahman fka Md Humayun Kabir Talukder aka Ganu Miah aka Shafi Uddin. The case was referred to the Department of Justice by U.S. Citizenship and Immigration Services (USCIS) and identified as a part of Operation Janus.

The complaint alleges Humayun Kabir Rahman arrived in the United States in February 1992 at John F. Kennedy International Airport, claiming his true name was Ganu Miah while in possession of a passport that did not belong to him. He was paroled into the United States so he could seek asylum, and his application was referred to the immigration court where an immigration judge ordered him removed in 1998. In 1994, while Ganu Miah’s proceeding was underway, Rahman sought asylum under a different name, Shafi Uddin. That application was also referred to the immigration court, and he was ordered to be removed in 1997. Later in 1997, using his third identity, Md Humayun Kabir Talukder, Rahman applied for and received an immigrant visa through the diversity visa program, claiming he had entered the United States by car from Canada. In 2004, he applied for and was granted permanent resident status, which he ultimately used to become a naturalized U.S. citizen in 2004. Throughout his immigration and naturalization proceedings, Rahman concealed that he had twice been ordered removed and lied about his identity and immigration history under oath. Rahman was also never lawfully admitted to the permanent resident status upon which he naturalized.

“As our country’s leaders debate the future of our immigration system, this alleged case of a decade of defrauding the United States to obtain citizenship is particularly alarming,” said Acting Assistant Attorney General Chad A. Readler for the Justice Department’s Civil Division. “In this instance, the suspect allegedly lied to the government as he twice sought to secure asylum under different identities, but was rebuffed and ordered removed both times before being randomly selected for a diversity visa.  While the United States Senate assesses whether to continue the diversity visa program, the Justice Department will find the program’s fraudsters and hold them to account, to protect our national security.”

"This case illustrates the kind of fraud that we have discovered, and I hope today’s announcement sends a clear message that attempting to fraudulently obtain U.S. citizenship will not be tolerated," USCIS Director Francis Cissna said in a statement. "We are grateful to our partners who are working to bring these cases to justice and protect the integrity of our immigration system."

This case was investigated by USCIS and the Civil Division’s Office of Immigration Litigation, District Court Section (OIL-DCS). The case is being prosecuted by OIL-DCS’s National Security and Affirmative Litigation Unit (NS/A Unit), with support from USCIS Office of the Chief Counsel, Central Law Division.

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

Assistant Attorney General Makan Delrahim of the U.S. Department of Justice’s Antitrust Division will travel to Europe today with stops in Paris, Brussels, and Bonn for a series of meetings, speaking engagements, and workshops with high-level officials and colleagues. 

AAG Delrahim will be in Paris on February 15 and 16 and will be joined by Acting Deputy Assistant Attorney General Marvin Price to discuss the Antitrust Division’s cartel enforcement program at the American Bar Association’s biennial International Cartel Workshop. At the conference, AAG Delrahim will also meet with officials from the Division’s foreign enforcer counterparts.

From Paris, AAG Delrahim will travel to Brussels, where on February 20 he will meet with the European Union’s Commissioner for Competition, Margrethe Vestager, and other senior members of her team.  The Deputy Assistant Attorney General for International, Roger Alford, will join AAG Delrahim for those meetings.  The discussions will address international cooperation on enforcement and policy matters, including cases where the two agencies are jointly investigating.  On February 21, AAG Delrahim will address EU antitrust practitioners at the College of Europe’s Global Competition Law Centre.

Following the engagements in Brussels, AAG Delrahim and DAAG Alford will travel to Bonn for meetings with the German antitrust authority, the Bundeskartellamt, including Andreas Mundt, the president of the Bundeskartellamt. They will also participate in a conference on the occasion of the 60th anniversary of the Bundeskartellamt.

From Bonn, DAAG Roger Alford will continue on to London, where on February 23, he will be the keynote speaker at a King’s College London conference on Innovation Economics for Antitrust Lawyers.  

“Our relationships with our foreign counterparts are critical to enabling our enforcement work, and to promoting sound competition policy,” said Assistant Attorney General Delrahim.  “I look forward to this opportunity to strengthen the bonds we have with our European colleagues.”

The United States and the State of Missouri have filed a motion asking a federal court to hold in contempt HPI Products Inc., its owner William Garvey, and St. Joseph Properties, LLC, for failing to comply with a 2011 environmental settlement by illegally storing thousands of pounds of hazardous chemicals in unsafe and dilapidated facilities in western Missouri.  The Department of Justice, on behalf of the Environmental Protection Agency, and the Missouri Attorney General, on behalf of the Missouri Department of Natural Resources, filed the motion today in U.S. District Court for the Western District of Missouri.

The contempt motion also requests that the court appoint a receiver to oversee the operation of the defendants’ business in compliance with the 2011 consent decree and applicable law.  

The defendants own and operate a pesticide formulating business with six facilities in St. Joseph, Missouri.  The 2011 consent decree was intended to resolve numerous violations of federal and state environmental laws and requires the defendants to characterize and properly manage large quantities of hazardous wastes generated or stored at its St. Joseph facilities.  

Despite a May 2017 court order requiring the defendants to comply with the 2011 consent decree, HPI and Garvey continue to store thousands of pounds of uncharacterized, often unidentified, chemicals, some with labels indicating that they have been stored for a dozen years or more. In addition, many of HPI’s facilities lack functional fire suppression equipment, two facilities previously suffered partial collapse, one burning down, and many of them are in extreme disrepair and in danger of collapse.  Chemical wastes at these facilities are exposed to the elements and are readily accessible to members of the public, posing a significant danger to public health and safety and the environment.

“Today, we are asking the court to hold the defendants in contempt for their utter failure to comply with federal and state hazardous waste laws at their property,” said Jeffrey H. Wood, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division. “This is a serious public health and safety matter. We also are asking the court to appoint a receiver to manage the defendants’ hazardous wastes in a manner that protects the citizens of St. Joseph, ensures the safety of employees at HPI, and prevents harm to the environment.” 

“EPA works with companies to assist them in complying with federal environmental laws when we have a willing party,” said James Gulliford, EPA Region 7 Administrator. “We have passed that stage with HPI and value the diligent work of the Department of Justice in helping EPA carry out our Congressional mandate to enforce federal laws that protect human health and the environment."

After a four-day trial, a national consumer bankruptcy law firm and its local partner attorneys were sanctioned and enjoined by the U.S. Bankruptcy Court for the Western District of Virginia for causing “unconscionable” harm to their clients. The court found that the law firm and its attorneys, among other things, systematically engaged in the unauthorized practice of law, provided inadequate representation to consumer debtor clients, and promoted and participated in a scheme to convert auto lenders’ collateral and then misrepresented the nature of that scheme, Director Cliff White of the Executive Office for U.S. Trustees announced today.

On Feb. 12, the U.S. Bankruptcy Court for the Western District of Virginia entered orders in two actions brought by the U.S. Trustee. The court sanctioned Law Solutions Chicago, doing business as “UpRight Law” (UpRight), and its principals $250,000; imposed additional sanctions of $50,000 against UpRight’s managing partner Kevin Chern, and $5,000 each against UpRight’s affiliated partner attorneys Darren Delafield and John C. Morgan Jr.; and ordered UpRight to disgorge all fees collected from the consumer debtors in both bankruptcy cases. The court also revoked UpRight’s bankruptcy filing privileges in the Western District of Virginia for not less than five years, and those of its local partners for 12 and 18 months, respectively. The bankruptcy court also sanctioned Sperro LLC (Sperro), an Indiana towing company that did not respond to the U.S. Trustee Program’s complaints, and ordered the turnover of all funds it received in connection with bankruptcy cases in the district.

“Lawyers who inadequately represent consumer debtors harm not only their clients, but also creditors and the integrity of the bankruptcy system,” said Director White. “The damage caused increases exponentially when they operate nationally, like UpRight. This case is demonstrative of the vigorous enforcement actions that the U.S. Trustee Program can and will take to protect all stakeholders in the bankruptcy process.”

According to trial testimony and evidence presented in court, UpRight operates a website offering legal services to consumers in financial distress. Prospective clients contact UpRight via the Internet and are routed to UpRight’s sales agents. These non-attorney “client consultants” were trained to “close” prospective clients by using high-pressure sales tactics and improperly provided legal advice to encourage them to file for bankruptcy relief. In many instances, UpRight arranged payment plans for its prospective clients to pay bankruptcy-related attorney’s fees and costs over time, and refused to refund fees it collected from its clients for whom UpRight did not file a bankruptcy case. The bankruptcy court found that UpRight had “serious oversight issues” in failing to adequately supervise its salespeople to prevent their unauthorized practice of law, and that UpRight demonstrated a “focus on cash flow over professional responsibility.”

Additionally, UpRight worked in concert with Sperro to implement a program through which UpRight’s clients could have their bankruptcy legal fees paid through a “New Car Custody Program.” The bankruptcy court described the New Car Custody Program as “a scam from the start.” UpRight’s salespeople and attorneys counseled bankruptcy clients to “surrender” vehicles fully encumbered by auto lenders’ liens to Sperro without the lienholders’ consent, and enter into an agreement obligating the clients to pay Sperro the costs of towing the vehicle, transporting it across state lines – often over a long distance – and storing it. UpRight assured its debtor clients that they would not have to pay any fees to Sperro, and in some instances advised its clients to hide their vehicles from lenders looking to repossess them until Sperro could pick up the vehicles.

After Sperro took a vehicle, it asserted a statutory “warehouseman’s lien,” claiming the right to keep the vehicle until the sham towing, transportation, and storage fees were paid. Then it offered the vehicle for sale at auction, despite the auto lender’s continuing security interest. Out of the sale proceeds, Sperro paid the debtor client’s bankruptcy fees directly to UpRight. Sperro kept the rest of the sale proceeds. In some cases, UpRight prepared bankruptcy court filings omitting the debtor clients’ transactions with Sperro.

The “New Car Custody Program” harmed auto lenders by converting collateral in which they had valid security interests. And the bankruptcy court found that UpRight “preyed upon some of the most vulnerable in our society” – its debtor clients – “while they were under great stress” by providing “unconscionable” advice to participate in the Sperro scheme, exposing them to undue risk by causing them to possibly violate the terms of their contracts with their auto lenders as well as state laws.

The cases discussed above are captioned Robbins v. Delafield et al., Adv. No. 16-07024 (Bankr. W.D. Va. Feb. 12, 2018), and Robbins v. Morgan et al., Adv. No. 16-05014 (Bankr. W.D. Va. Feb. 12, 2018).

Director White commended the trial team of Assistant U.S. Trustee Margaret Garber and Trial Attorneys Joel Charboneau, Nick Foster and Joan Swyers for their handling of these matters.

The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. The Program has 21 regions and 92 field office locations. Learn more information on the Program at: https://www.justice.gov/ust.

Michaels Stores Inc. and Michaels Stores Procurement Co. Inc. (Michaels) agreed to enter into a consent decree and pay $1.5 million, the Justice Department announced today.  The decree resolves allegations that Michaels failed timely to report to the Consumer Product Safety Commission (CPSC) information regarding a large glass vase that injured consumers between 2007 and 2009.

“This settlement underscores the importance of reporting product safety issues immediately,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to prioritize consumer safety by enforcing product safety obligations.”

Between 2006 and 2010, Michaels sold approximately 200,000 of the vases in the United States and Canada.  In February 2010, Michaels reported safety issues related to the vases to the CPSC.  The Department of Justice’s April 2017 Amended Complaint alleged that Michaels violated the Consumer Product Safety Act (CPSA) by not reporting the vases’ safety issues earlier, as Michaels possessed information that the vases had injured one consumer in 2007 and at least four customers in the first half of 2009.

The consent decree requires Michaels to maintain a compliance program to ensure that it complies with the CPSA and to maintain internal controls and procedures designed to ensure timely, complete, and accurate reporting to the CPSC.

“I’m pleased that the Department of Justice and Michaels were able to reach this agreement,” said CPSC Acting Chairman Ann Marie Buerkle.  “We greatly appreciate DOJ’s efforts on behalf of consumers.”

In agreeing to settle the case, Michaels has not admitted that it violated the law.

The United States is represented by Trial Attorneys Kerala Cowart, Claude Scott, and Lisa Hsiao of the Civil Division’s Consumer Protection Branch, and Assistant U.S. Attorney Lisa Hasday of the U.S. Attorney’s Office for the Northern District of Texas, with the assistance of Patricia Vieira of the CPSC’s Office of the General Counsel.  For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.

The Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Louisiana Department of Environmental Quality (LDEQ) announced a settlement today with Shell Chemical LP that each year will eliminate more than 150 tons of excess emissions of harmful air pollutants from Shell’s chemical plant located in Norco, Louisiana, in St. Charles Parish. The settlement resolves allegations that Shell violated the Clean Air Act and State law by failing to properly operate industrial flares at the facility. 

The settlement, in the form of a Consent Decree, will require Shell to spend approximately $10 million to install and operate air pollution control and monitoring technology to reduce harmful air pollution from four industrial flares at the Norco plant. Once fully implemented, the pollution controls required by the settlement are estimated to reduce air emissions of volatile organic compounds (VOCs) by approximately 159 tons per year, and reduce other harmful air pollutants, including benzene, by approximately 18 tons per year. 

“We are proud to partner with the State of Louisiana on this important Clean Air Act settlement, which will benefit the citizens of Louisiana,” said Acting Assistant Attorney General Jeffrey H. Wood of the Justice Department’s Environment and Natural Resources Division.  “This agreement is the latest in EPA’s and the Justice Department’s continuing efforts to work with our state partners to protect the American public from harmful air pollution.”

“This settlement will improve air quality for citizens of Louisiana by reducing emissions of harmful air pollution,” said EPA Administrator Scott Pruitt. “Today’s agreement demonstrates EPA’s dedication to working with states to pursue violations of laws that are critical to protecting public health and bring companies into compliance.”

“We are committed to working hand-in-hand with our federal partners to reduce air pollution in Louisiana,” said LDEQ Secretary Dr. Chuck Carr Brown. “Actions like this one not only serve to clean up the air our citizens breathe, they send a message that we will not tolerate violations of federal or state laws.”

VOCs and benzene can seriously harm public health. VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma, and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis. Chronic exposure to benzene, which EPA classifies as a carcinogen, can cause numerous health impacts, including leukemia and adverse reproductive effects in women.

The settlement agreement will reduce flaring and improve Shell’s flaring practices, reducing emissions at the facility. Industrial flares burn waste gases that otherwise would be released to the atmosphere. Well-operated flares have high “combustion efficiency,” meaning they burn nearly all the harmful components in the waste gas, including VOCs and hazardous air pollutants, turning them into water and carbon dioxide. 

Under the consent decree, Shell will take steps to minimize the amount of waste gas sent to the flares. Shell will also operate a flare gas recovery system at the facility, which will save the company money by allowing it to use waste gas as fuel; this waste gas would otherwise be sent to the facility’s flares. In addition, by installing and maintaining state-of-the-art monitoring and control technology at its flares, Shell will ensure that the flares are operated at a high combustion efficiency. Finally, Shell will install and maintain monitoring equipment to detect air pollution along the facility fence line and publish the monitoring results on a public website. Shell will also pay civil penalties totaling $350,000, including $87,500 for LDEQ.

The consent decree, lodged in the Eastern District Court of Louisiana, is subject to a 30-day federal public comment period, a 45-day State public comment period, and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.

President’s Request Invests in Department of Justice Criminal Justice Priorities, Including Protecting National Security, Supporting Law Enforcement, Enforcing Immigration Laws, and Protecting our Citizens from Violent Crime and the Scourge of the Opioid Epidemic.

President Trump’s FY 2019 Budget proposal totals $28 billion for the Department of Justice to support federal law enforcement and criminal justice priorities of our state, local, and tribal law enforcement partners.  The request represents a comprehensive investment in the Justice mission and includes increases in funding for strengthening security efforts to reduce violent crime, enforce the nation’s immigration laws, combat the opioid epidemic, and continues its commitment to national security.  

“The Department of Justice has the noble task of keeping the American people safe from drugs, gangs, and terrorists, and this budget proposal reflects our commitment to do just that,” said Attorney General Jeff Sessions.  “President Trump has ordered us to accomplish these goals by supporting state and local law enforcement, dismantling transnational organized crime, and working to bring down crime rates.  For the last year, we have aggressively carried out that agenda and have already seen major successes that benefit the American people. Congress should invest in these efforts—because all of us benefit from a safer America.”
 

The Department of Justice’s areas of investment include:

• +$295 million in program enhancements and transfers to fight the opioid crisis and support law enforcement safety.  Additional resources will be devoted to combatting transnational criminal organizations, known for supplying illicit substances to the United States.
• +$65.9 million in immigration related program enhancements to enhance border security and immigration enforcement.  These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration.
• +$109.2 million to strengthen federal law enforcement’s ability to reduce violent crime.
• +$10 million for BOP’s apprentice program giving inmates the necessary skills for successful post incarceration employment.
• +$13 million for the Criminal Division to support Mutual Legal Assistance Treaty (MLAT) reform.  
• $3.9 billion in discretionary and mandatory funding for federal grants to state, local, and tribal law enforcement and victims of crime, to ensure greater safety for law enforcement personnel and the people they serve. Critical programs aimed at protecting the life and safety of state and local law enforcement personnel, including the Public Safety Partnership Program and the Project Safe Neighborhood Program, demonstrate our continuing commitment to supporting state, local, and tribal law enforcement. 

For more information, view the FY 2019 Budget and Performance Summary at https://www.justice.gov/doj/fy-2019-budget-and-performance-summary.

Combating Violent Crime

Protecting the American people from violent crime is a top priority for the Department of Justice. Unfortunately, in recent years, crime has been on the rise in too many places across the country. FBI statistics show that, in 2015 and 2016, the United States experienced the largest increases in violent crime in a quarter-century.  Over those two years, violent crime increased by nearly 7%. Robberies, assaults, and rapes all increased, and murder increased by a shocking 20%.  

In 2017, the Department made some great strides, including the launch of the enhanced Project Safe Neighborhoods initiative, which brings together all levels of law enforcement and the communities they serve to develop effective, locally based strategies to reduce violent crime.  The Department brought cases against the greatest number of violent criminals in at least 25 years—since the Department began tracking a “violent crime” category. Although preliminary numbers for 2017 show a decrease, violent crime rates are still excessively high.  

The FY 2019 budget requests $109.2 million in program enhancements to reduce violent crime and combat transnational criminal organizations. These resources will enable the Department to dismantle the worst criminal organizations, target the most violent offenders, and protect the public. 

For more information, view the Combating Violent Crime Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.

Enforce Immigration Laws

The FY 2019 President’s Budget strengthens the Nation’s security through stronger enforcement of the Nation’s immigration laws.  The Department is requesting $65.9 million in immigration-related program enhancements for FY 2019, which will enhance border security and immigration enforcement.  These investments will also improve our ability to conduct immigration hearings to help combat illegal immigration to the United States by expanding capacity, improving efficiency, and removing impediments to the timely administration of justice.  This budget supports the Department’s efforts, along with our partners at the Department of Homeland Security, to fix our immigration system.

For more information, view the Enforce Immigration Laws Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.

Drug Enforcement and the Opioid Crisis

The United States is in the midst of the deadliest drug epidemic in American history. According to the Centers for Disease Control and Prevention (CDC), more than 63,600 Americans died from drug overdoses in 2016, a 21% increase from the previous year. Over 42,200, or approximately two-thirds, of these overdose deaths were caused by heroin, fentanyl, and prescription opioids. The President declared this scourge a National Public Health Emergency in October 2017, and the Department remains committed to doing its part to protect the American people from the impact of drugs and drug-related crime nationwide.

The FY 2019 budget requests $295 million in program enhancements and transfers to combat the opioid crisis and bolster drug enforcement efforts. These resources will enable the Department to target those drug trafficking organizations most responsible for the opioid epidemic and drug-related violence in our communities, as well as ensure the life and safety of first responders who are on the front lines protecting the American people.

For more information, view the Drug Enforcement and the Opioid Crisis Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.

State, Local, and Tribal Assistance

The Justice Department is committed to reducing violent crime and addressing the opioid epidemic.  Federal law enforcement officers constitute only 15% of the total number of law enforcement officers nationwide; therefore, 85% of the officer support relies upon strong partnership with state and local law enforcement.  The Department supports its partners in state and local law enforcement, who have critical intelligence about violent crime in their communities, and whose actions are crucial in the fight against violent crime and the opioid epidemic.  

The FY 2019 Budget continues its commitment to state, local and tribal law enforcement by investing approximately $3.9 billion in discretionary and mandatory funding in programs to assist them.  Funding has been prioritized to meet the most pressing law enforcement concerns – violent crime and opioid abuse – and to help the victims of crime.  
 
For more information, view the State, Local and Tribal Assistance Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.

Restructuring Initiatives

The President’s Administration is committed to establishing a smaller, leaner federal government that reduces, both, bureaucracy and costs to the American taxpayer. Since 2017, the Department of Justice has undertaking efforts to refocus resources and turn our efforts back to our core mission.  To support the President’s Executive Order 13781 on reorganizing the Executive Branch, the Department of Justice has begun taking steps to streamline itself and to save taxpayer dollars.  As part of the FY 2019 President’s Budget, the Department is proposing a number of initiatives to achieve savings, to reduce the size of government, and maximize agency performance. 

For more information, view the Restructuring Initiative Fact Sheet at https://www.justice.gov/doj/fy-2019-budget-fact-sheets.

Today, the U.S. Department of Justice, on behalf of the U.S. Army Corps of Engineers (Corps) for the Jacksonville District, submitted to the United States District Court for the Middle District of Florida a proposed consent decree that would resolve alleged violations of the Clean Water Act by condominium developers Lodge/Abbott Investments Associates LLC and Lodge/Abbott Associates LLC.

The Clean Water Act requires any person who plans to fill federally protected wetlands to receive a permit from the Corps. The defendants in this case did not obtain a permit from the Corps before they filled over an acre of high quality wetlands that abut and function in close proximity to the tidal waters of Wiggins Pass and the Cocohatchee River in Naples, Florida. The purpose of the fill was to create “Tower 200,” one of five towers comprising a high-end condominium development known as “Kalea Bay” in North Naples.

Under the proposed consent decree, the defendants are required to pay a $350,000 civil penalty. In addition, to offset the environmental impact of the alleged violations, the defendants have purchased approximately $54,000 in mitigation credits from a Corps-approved wetlands mitigation bank. The proposed decree also enjoins the defendants from filling any additional wetlands without first obtaining a permit or other clearance from the Corps.  

“The coastal wetlands in this case are a stone’s throw from the Gulf of Mexico and Cocohatchee River,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resource Division. “Federal law requires Corps of Engineers approval before development projects like this can take place in these protected areas. We are pleased to reach this agreement that serves the public interest in enforcing the Clean Water Act.”

“When wetlands are filled in violation of the Clean Water Act, the loss is felt not only today, but by all generations to come,” said U.S. Attorney Maria Chapa Lopez. “The substantial penalty obtained in this case sends a message to anyone who fails to abide by our nation’s environmental laws that they will be held accountable.”    

“The district's enforcement staff, with DOJ assistance, is pleased to have reached an expedited resolution of this section 404 Clean Water Act violation,” said Jacksonville District Enforcement Chief Bobby Halbert for the U.S. Army Corps of Engineers. “Our regulatory enforcement program intends to continue working to deter unauthorized activities such as this, while continually maintaining the integrity of our Nation's aquatic and wetland resources.” 

Compliance and enforcement are important components of the Corps’ regulatory program, as it assures that the public interest and environmental resources are protected.  The Corps’ Jacksonville District has a routine compliance inspection program throughout Florida, Puerto Rico, and the U.S. Virgin Islands.  The Corps’ Jacksonville District Enforcement Section is often aided by state and federal agencies as well as groups and individuals who report suspected violations.  To address violations, the Corps is authorized to prescribe corrective action, impose fines, and/or prescribe removal of the offending fill, work, or structure.

The proposed consent decree, lodged in the U.S. District Court in Fort Myers, is subject to a 30-day comment period and final court approval.  The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.

For more information on the Jacksonville District and the Corps’ Regulatory program, visit: http://www.saj.usace.army.mil/Missions/Regulatory. 

The Department of Justice announced today that it has reached a settlement with Henry Ford Allegiance Health (“Allegiance”) for conspiring with a rival hospital in a neighboring county to restrict marketing in that rival’s county.  The settlement ends almost three years of litigation and a scheduled March 6 trial relating to agreements to restrict marketing among hospitals in South Central Michigan.  

“As a result of Allegiance’s per se illegal agreement to restrict marketing of competing services in Hillsdale County, Michigan consumers were deprived of valuable services and healthcare information,” said Assistant Attorney General Makan Delrahim of the Justice Department’s Antitrust Division.  “By prohibiting further anticompetitive conduct and educating Allegiance executives on antitrust law, this settlement will ensure that consumers receive the fruits of robust competition.”

The proposed settlement, joined by the Michigan Attorney General’s Office, was filed today in the U.S. District Court for the Eastern District of Michigan.  If approved by the court, the settlement will end Allegiance’s unlawful conduct and provide residents of South Central Michigan the full benefits of competition.  The Department’s Antitrust Division previously settled claims against three other South Central Michigan hospitals.  The Department charged Allegiance and these other hospitals with insulating themselves from competition by agreeing to withhold outreach and marketing in each other’s respective counties, so as not to solicit certain customers.  As a result, consumers were denied the benefits of competition, including free screenings and other services, as well as valuable information that informs healthcare choices and opportunities for higher quality care.

The Department’s proposed settlement with Allegiance expands on the terms of the Department’s previous settlements in this action, which the court entered more than two years ago.  Specifically, the proposed settlement prevents Allegiance from engaging in improper communications with competing providers regarding their respective marketing activities and entering into any improper agreement to allocate customers or to limit marketing.  It explicitly prevents Allegiance from continuing to carve out Hillsdale County from its marketing and business development activities.  The proposed settlement further requires Allegiance to report any violations to the Department, and imposes an annual obligation to certify compliance with the terms of the final judgment.  Allegiance must also submit to compliance inspections at the Department’s request.  The proposed settlement requires Allegiance to reimburse the Department and the state of Michigan for certain costs incurred in litigating this case.  

Pursuant to Department policy, the settlement includes several new provisions included in all consent decrees designed to improve the effectiveness of the decree and the Division’s future ability to enforce it.  “The proposed settlement will make it easier and more efficient for the Department to enforce the decree by allowing the Department to prove alleged violations by a preponderance of the evidence,” said Assistant Attorney General Delrahim.  “These provisions will encourage a stronger commitment to compliance and will ease the strain on the Department in investigating and enforcing possible violations.”  Similar provisions have been included in a number of recent consent decrees where the Department’s new leadership has sought divestitures as a condition of clearing transactions under Section 7 of the Clayton Act.

Henry Ford Allegiance Health is a 475-bed health system that operates the sole general acute care hospital in Jackson County, Michigan, along with primary care physician offices, physical rehabilitation facilities, and diagnostic centers across several counties in South Central Michigan.  In March 2016, Allegiance became part of the Henry Ford Health System.  Henry Ford Health System is headquartered in Detroit, Michigan, and is the second largest health system in Michigan, operating Allegiance, five other hospitals, several medical centers, and one of the nation’s largest medical group practices.  Its 2016 revenues were over $5 billion.  

The proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register, consistent with the requirements of the Antitrust Procedures and Penalties Act.  Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Peter Mucchetti, Chief, Healthcare & Consumer Products Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, NW, 4th Floor, Washington, DC 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 U.S. Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI) Special Agent was sentenced today to 36 months in prison for accepting bribes in exchange for orchestrating, through multiple misrepresentations to numerous government agencies, the dismissal of a drug trafficking indictment filed against a fugitive narcotics kingpin, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division.

According to admissions in his plea agreement, Christopher V. Ciccione II, 52, of Phoenixville, Pennsylvania, accepted cash and other things of value and used his official position to cause a drug trafficking indictment against Colombian national Jose Bayron Piedrahita Ceballos to be dismissed.  Piedrahita and Colombian national Juan Carlos Velasco Cano met with Ciccione in Bogota, Colombia in December 2010, where they provided him with approximately $20,000 in cash, dinner, drinks and prostitutes.  In exchange, Ciccione disclosed the identities of confidential sources cooperating against Velasco three times,  made numerous misrepresentations to the U.S. Attorney’s Office and HSI management, and altered law enforcement records to represent to decision makers that Piedrahita was a “former” suspect of a closed investigation, rather than a “current” subject; that Piedrahita was “never positively identified” during that investigation; and that his case should be dismissed because no one could obtain probable cause to “supersede another indictment.”  Ciccone also falsified the concurrence of several other federal agents and attempted to parole Piedrahita into the United States. 

“Christopher Ciccione abused his law enforcement authority for personal profit,” said Acting Assistant Attorney General Cronan.  “His actions not only comprised an ongoing investigation and nearly allowed a dangerous drug kingpin to escape justice, but they also betrayed the public trust placed in him to carry out his sworn duties with integrity.  Today’s sentence demonstrates the hard work of our federal law enforcement partners to bring criminals to justice—no matter who they are.”

Ciccione was sentenced by U.S. District Judge Robert N. Scola Jr. of the Southern District of Florida.  Velasco was sentenced to 27 months in prison on Jan. 17.  Piedrahita is currently incarcerated in the Republic of Colombia. 

The U.S. Department of the Treasury’s Office of Foreign Assets Control designated Piedrahita as a Specially Designated Narcotics Trafficker pursuant to the Foreign Narcotics Kingpin Designation Act on May 3, 2016.

ICE’s Office of Professional Responsibility, Department of Homeland Security’s Office of Inspector General and the FBI investigated the case.  The Justice Department’s Office of International Affairs and Office of the Judicial Attaché in Colombia and the Drug Enforcement Administration provided valuable assistance to the investigation.  The Colombian Attorney General’s Office also provided invaluable support. Trial Attorneys Luke Cass and Jennifer A. Clarke of the Criminal Division’s Public Integrity Section are prosecuting the case.

Today the Department of Justice announced that Associate Attorney General Rachel Brand will leave the Department of Justice in the coming weeks to take a position in the private sector.

“Rachel Brand is a lawyer’s lawyer,” Attorney General Jeff Sessions said.  “She is a graduate of Harvard Law School, clerked at the Supreme Court, she worked at the White House, in academia, and has served in leadership positions spanning three administrations.  As Associate Attorney General, she has played a critical role in helping us accomplish our goals as a Department—taking on human trafficking, protecting free speech on campus, and fighting sexual harassment in public housing. And when I asked her to take the lead in the Department’s efforts on Section 702 re-authorization, she made this her top priority and combined her expertise and gravitas to help pass legislation keeping this crucial national security tool. Rachel has shown real leadership over many important divisions at the Department.  I know the entire Department of Justice will miss her, but we join together in congratulating her on this new opportunity in the private sector.  She will always remain a part of the Department of Justice family.”

“The men and women of the Department of Justice impress me every day,” Associate Attorney General Rachel Brand said. “I am proud of what we have been able to accomplish over my time here. I want to thank Attorney General Sessions for his leadership over this Department. I’ve seen firsthand his commitment to the rule of law and to keeping the American people safe.”

Rachel Brand has served as Associate Attorney General since May 22, 2017.

As Associate Attorney General, she has served as the third-ranking officer in the Department of Justice and oversees the following Department components: Antitrust Division, Civil Division, Civil Rights Division, Environment and Natural Resources Division, Tax Division, Executive Office for U.S. Trustees, Office of Justice Programs, Community Oriented Policing Services (COPS), Office on Violence Against Women, Community Relations Service, Office of Access to Justice, Office of Information Policy, Foreign Claims Settlement Commission, and the Service members and Veterans Initiative. She also serves as the Department’s Regulatory Reform Officer and chairs the Regulatory Reform Task Force.

Before becoming Associate Attorney General, Ms. Brand had a diverse legal career in public service and in the private sector. From 2012 to 2017, she served as one of five Senate-confirmed Members of the Privacy and Civil Liberties Oversight Board, appointed by President Barack Obama. In that capacity, she provided advice and oversight to U.S. counterterrorism agencies to ensure that privacy and civil liberties are balanced with national security objectives.

Ms. Brand previously served in the Department of Justice from 2003 to 2007, first as the Principal Deputy Assistant Attorney General for the Office of Legal Policy, and then as the Senate-confirmed Assistant Attorney General for Legal Policy, appointed by President George W. Bush. In that capacity, Ms. Brand served as chief policy adviser to the Attorney General, handling a broad range of national security, law enforcement, and civil justice issues. She also oversaw the development of all regulations promulgated by the Department of Justice and managed the Department's role in selecting federal judges, including running the confirmation process for Chief Justice John G. Roberts and Associate Justice Samuel Alito. Earlier, Ms. Brand was an Associate Counsel to President George W. Bush in the White House.

Outside of the federal government, Ms. Brand has been an Associate Professor of law at George Mason University’s Antonin Scalia Law School, an adjunct professor at George Washington University Law School, and a lawyer in private practice in Washington, D.C.

She served as a law clerk to Associate Justice Anthony M. Kennedy of the Supreme Court of the United States during the 2002 – 2003 Term and to Justice Charles Fried of the Supreme Judicial Court of Massachusetts. Ms. Brand graduated from Harvard Law School, where she served as deputy editor-in-chief of the Harvard Journal of Law and Public Policy, and earned a B.A. from the University of Minnesota-Morris.

This morning, in Federal Court in East St. Louis, IL, Phebe Ibrahim, formerly known as "Phebe Khan," 50, of St. Peters, MO, pled guilty to 21 counts of bankruptcy fraud and related charges, announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Ibrahim was indicted on October 3, 2017, as part of the U.S. Attorney’s Office’s continuing effort to crackdown on those who commit fraud in the U.S. Bankruptcy Court for the Southern District of Illinois.

In pleading guilty today, Ibrahim, a non-lawyer, admitted that she worked as a bankruptcy petition preparer, preparing bankruptcy petitions and other documents for debtors who wished to file bankruptcy in the Southern District of Illinois. The Bankruptcy Code imposes certain restrictions on bankruptcy petition preparers, including requiring them to disclose their names on any documents they prepare, and allowing the Bankruptcy Courts to set maximum fees that they can charge their customers. The practice in the U.S. Bankruptcy Court for the Southern District of Illinois is that bankruptcy petition preparers are not allowed to charge fees of more than $150.

Ibrahim admitted that she defrauded the debtors for whom she prepared bankruptcy petitions by routinely charging fees that exceeded the maximum allowable amount. Ibrahim also acknowledged that she attempted to conceal her fraud by not disclosing her name on the documents she prepared, and by instructing her customers not to mention her name during their bankruptcy cases.

The Bankruptcy Code also requires that debtors attend a credit counselling briefing prior to filing a bankruptcy case. Ibrahim admitted that she circumvented and defeated this provision of the Bankruptcy Code by causing false "Certificates of Counselling" to be filed on behalf of her customers. These Certificates represented that Ibrahim’s customers had attended the required credit counselling briefing.

"The U.S. Trustee Program works with other law enforcement agencies to track down and pursue bankruptcy petition preparers who fail to comply with the requirements of the Bankruptcy Code, circumvent its provisions and prey on consumers in financial distress," stated Nancy J. Gargula, United States Trustee for Southern and Central Illinois and Indiana (Region 10). "We

appreciate the commitment of U.S. Attorney Boyce and our law enforcement partners to address fraud and abuse in the bankruptcy system. We welcome information that will help detect unscrupulous bankruptcy petition preparers and we encourage citizens to report suspected bankruptcy fraud through our Internet hotline at USTP.Bankruptcy.Fraud@usdoj.gov."

Ibrahim pled guilty to seven counts each of bankruptcy fraud, causing false statements to be made under penalty of perjury in a bankruptcy case, and falsifying records in a bankruptcy case. Each of the bankruptcy fraud and false statements under penalty of perjury counts carries a maximum sentence of five years in prison and a fine of up to $250,000. Each of the falsification of records charges carries a maximum sentence of twenty years in prison and a maximum fine of $250,000.

Ibrahim will be sentenced on May 10, 2018, at 9:30 A.M. at the Federal Courthouse in Benton, IL.

The charges resulted from a referral by the U.S. Trustee for Indiana and Southern and Central Illinois (Region 10) to the U.S. Attorney for the Southern District of Illinois. The investigation was conducted by agents from the Springfield Division, Fairview Heights Resident Agency, of the Federal Bureau of Investigation ("FBI"), in collaboration with the Southern Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. The case is being prosecuted by Assistant United States Attorney Scott A. Verseman.

The Antitrust Division is pleased to announce the establishment of the Jackson-Nash Address, and to announce that Professor Alvin Roth, the McCaw Professor of Economics at Stanford University, will be the inaugural speaker.  Professor Roth is the 2012 winner of the Nobel Prize for Economics for the theory of stable allocations and the practice of market design, and the author of “Who Gets What and Why.”  He will deliver his address on February 26, 2018, at The Great Hall, The Robert F. Kennedy Building, Department of Justice, 950 Pennsylvania Avenue NW, Washington, DC, at 2:00 p.m.

“The goals of the Jackson-Nash Address series are to recognize the contributions of former Supreme Court Justice Robert H. Jackson and Nobel Laureate economist John Nash, and to honor the speaker, recognizing and celebrating the role of economics in the mission of the Division,” said Assistant Attorney General Makan Delrahim.  “Professor Roth’s important contributions to game theory and market design make him an exemplary inaugural speaker.”

Justice Jackson served as Assistant Attorney General of the Antitrust Division prior to his appointment to the Supreme Court.  During his tenure at the Division, he set the stage for the expanded role of economics in antitrust, replacing vague legal standards with the “protection of competition” as the goal of antitrust law.
 
Professor John Nash’s research has provided the Division’s economists with the analytic tools necessary to protect competition.  In particular, Professor Nash’s strategic theory of games and his axiomatic bargaining model have had a profound effect on the Division’s enforcement mission.  The Division’s economists commonly rely on these theories to guide investigations and to help evaluate the effects of mergers, monopolization, and collusion.  

Non-Division attendees must enter through the entrance between 10th and Constitution Avenue, NW, and clear building security.  Any inquiries regarding security and logistics should be directed to Jeremy Edwards in the Office of Public Affairs at (202) 514-2007 or jeremy.m.edwards@usdoj.gov.

The Department of Justice today filed a complaint to revoke the naturalization of a Sudan native—who entered the United States on an F-1 student visa and gained lawful permanent resident status through the diversity visa lottery program—for violating and conspiring to violate sanctions imposed against Iraq under the International Emergency Economic Powers Act (IEEPA), as well as obstructing Internal Revenue laws.

According to the complaint, Mubarak Ahmed Hamed violated and conspired to violate sanctions imposed against Iraq under the IEEPA from 1997 through July 21, 2000, the date of his naturalization. As the Executive Director of a non-profit organization, the Islamic American Relief Agency (IARA), Hamed regularly authorized and transferred tax-exempt funds from IARA accounts in the United States to an account in Jordan controlled by Khalid Al-Sudanee, a/k/a Khalid Ahmad Jumah Al-Sudani, knowing that Al-Sudanee would transport such funds into Iraq.

In 2004, both Al-Sudanee and IARA were designated by the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) as Specially Designated Global Terrorists (SDGT). During this time, the IARA implemented projects that were funded by USAID, however there are no specific allegations that such funding was siphoned to Iraq or in violation of the IEEPA.

On June 25, 2010, Hamed pleaded guilty to conspiring to illegally transfer more than $1 million to Iraq in violation of federal sanctions, and to obstructing administration of the laws governing tax-exempt charities. Hamed was sentenced to four years and 10 months in federal prison on January 11, 2012.

On Jan. 16, 2018, the Departments of Justice and Homeland Security jointly released the “Section 11 Report,” which shined a light on the nation’s current immigration system and how it can be used to undermine national security and public safety. The report revealed—among other statistics—that nearly three out of every four individuals convicted of international terrorism-related charges in U.S. federal courts between Sept. 11, 2001 and Dec. 31, 2016 were foreign-born.

“This alleged denaturalization case is indicative that America needs this reform to our broken immigration system now more than ever. Under the guise of running a non-profit to assist in the famine crises in Africa, a ‘Diversity Visa’ recipient allegedly transferred funds on a regular basis to a known terrorist, undermining our nation’s lawful immigration system, public safety, and national security,” said Attorney General Jeff Sessions. “Immigration is a national security issue, and a merit-based immigration system would better serve our national interest because it would benefit the American people.”

“The defendant has pleaded guilty to despicable crimes, including the funneling of money to a known terrorist organization, from 1997 through his naturalization as a U.S. citizen in July 2000, all while conveniently failing to disclose his nefarious activities," said Thomas Homan, Deputy Director of U.S. Immigration and Customs Enforcement.  "Plain and simple, if you defraud the U.S government during the naturalization process, you risk having your citizenship revoked.”  

“Every visa decision is a national security decision that affects individual Americans.  We commend the work of the Department of Justice and look forward to continued coordination with the Department of Homeland Security and the intelligence and law enforcement communities to protect our nation’s borders,” said Assistant Secretary Carl Risch of the Department of State Bureau of Consular Affairs.  “Continued efforts to improve interagency security vetting for visa applicants will enhance our ability to identify persons who mean us harm and prevent their entry into the United States.”

U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), ICE Office of the Principal Legal Advisor (OPLA), and Civil Division’s Office of Immigration Litigation, District Court Section’s (OIL-DCS) National Security and Affirmative Litigation Unit (NS/A Unit) investigated the case.  The case is being litigated by the NS/A Unit with support from ICE OPLA and the U.S. Attorney's Office for the Western District of Missouri.

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

Four owners of school bus transportation companies were sentenced today for participating in bid rigging and fraud conspiracies related to school bus transportation contracts in Puerto Rico, the Department of Justice announced.

Gavino Rivera Herrera, Luciano Vega Martínez, Alfonso Gonzalez Nevarez, and René Garay Rodríguez were convicted after trial in 2017 in the U.S. District Court for the District of Puerto Rico in San Juan.  The jury found that they conspired to rig bids and allocate the market for public school bus transportation contracts in the municipality of Caguas from approximately August 2013 until May 2015. Each was also found guilty of conspiracy to commit mail fraud and four counts of mail fraud for defrauding the municipality of Caguas to obtain contracts for school bus transportation services.

For their roles in the collusive and fraudulent conduct, defendants Vega Martínez, Gonzalez Nevarez, and Garay Rodríguez were each sentenced to serve 12 months and a day in prison.  Defendant Rivera Herrera was sentenced to a term of two years’ probation, the first six months to be served in home confinement, after a departure based on the defendant’s medical condition.  Restitution will be imposed in an amount to be decided at a later date.

“These transportation company owners lined their own pockets with public funds that were intended to provide essential services to at-risk school districts,” said Assistant Attorney General Makan Delrahim of the Department of Justice’s Antitrust Division.  “The sentences imposed today reflect the serious harm caused by the actions of the defendants who enriched themselves at the expense of schoolchildren and American taxpayers.” 

As proved during the trial, the four school bus company owners carried out the conspiracy by agreeing to allocate contracts for transportation routes awarded by the Municipality of Caguas.  Trial evidence showed that the conspirators submitted fraudulent certifications and received award letters by certified mail in connection with their conspiracy to defraud the Municipality of Caguas.

Today’s sentencings are the result of a federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in Puerto Rico’s school bus transportation services industry.  The investigation was conducted by the Antitrust Division’s Washington Criminal I Section, the District of Puerto Rico U.S. Attorney’s Office, the FBI’s Puerto Rico Field Office, and the U.S. Department of Education Office of Inspector General.  Anyone with information in connection with this or related conduct is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Puerto Rico Field Office at 787-754-6000.

Andre Bernard, 65, of Mount Kisco, NY was sentenced to 87 months in federal prison for conspiracy to commit wire fraud, making false statements related to the Clean Air Act, and his participation in a multi-state scheme to defraud biodiesel buyers and U.S. taxpayers by fraudulently selling biodiesel credits and fraudulently claiming tax credits.  As part of his sentence, the court also entered a money judgment in the amount of $10.5 million, the amount of proceeds of the charged criminal conduct that the defendant personally received.  Two accounts already seized from the defendant worth in excess of $1.5 million will be credited against the money judgment.
    
Andre Bernard was found guilty on August 2, 2017.

According to court documents, Bernard and his co-conspirators operated entities that purported to purchase renewable fuel, on which credits had been claimed and therefore was ineligible for additional credits, produced by their co-conspirators at Gen-X Energy Group (Gen-X), headquartered in Pasco, Washington, and its subsidiary, Southern Resources and Commodities (SRC), located in Dublin, Georgia.  They then used a series of false transactions to transform the fuel back into feedstock needed for the production of renewable fuel, and sold it back to Gen-X or SRC, allowing credits to be claimed again.  This cycle was repeated multiple times.

“Today’s sentencing shows that the Department of Justice will continue to vigorously prosecute those who defraud the federal government and the American taxpayer through unlawful schemes,” said Acting Assistant Attorney General Wood.  “We applaud the work of DOJ, EPA, and our other federal law enforcement partners that sought and obtained justice in this case.”

“We will not tolerate environmental fraud in the Renewable Fuels Program, or anywhere else.” said EPA Administrator Scott Pruitt. “This case highlights EPA's resolve in working with partners, nationally, to hold bad actors accountable."

“The successful prosecution of these fraudsters is a testament to our commitment to combat crime at every level,” said U.S. Attorney Chapa Lopez. “We will continue to support our investigative partners in dismantling such criminal schemes.”

“Fraud against the United States and its citizens will continued to be targeted by the Secret Service,” said Resident Agent in Charge Jeff Kelly with the U.S. Secret Service. “These complex investigations are only successfully accomplished with the dedication and partnership of our partner agencies and the U.S. Attorney Office in bringing accountability.” 

From March 2013 to March 2014, the co-conspirators, including Bernard, generated at least 60 million credits that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities.  The co-conspirators received at least $42 million from the sale of these fraudulent credits to third parties.  In addition, Gen-X received approximately $4.3 million in false tax credits for this fuel. 

This case was investigated by the U.S. Secret Service, the Environmental Protection Agency’s Criminal Investigation Division, and the Internal Revenue Service’s Criminal Investigation. It was prosecuted by Trial Attorney Adam Cullman of the Justice Department’s Environment and Natural Resources Division and Assistant United States Attorneys Sara C. Sweeney and Megan Kistler.

The Department of Justice announced today that Home Furnishings Resource Group Inc. (HFRG) has agreed to pay $500,000 to resolve allegations that it violated the False Claims Act by making false statements on customs declarations to avoid paying antidumping duties on wooden bedroom furniture imported from the People’s Republic of China (PRC).  HFRG, which also operates under the name Function First Furniture, imports, among other things, bedroom furniture that is sold for use in university student housing.  The company is headquartered in Hermitage, Tennessee.

“The customs laws are intended to protect domestic companies and American workers from unfair foreign competition,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division.  “This settlement shows our commitment to pursue those who violate these laws and gain an illegal advantage in U.S. markets by evading the import duties owed on foreign-made goods.”

The settlement announced today resolves allegations that HFRG evaded antidumping duties owed on wooden bedroom furniture that the company imported from the PRC between 2009 and 2014, by misclassifying the furniture as non-bedroom furniture on its official import documents.  Antidumping duties protect against foreign companies “dumping” products on the U.S. market at prices below cost.  The Department of Commerce assesses, and the U.S. Department of Homeland Security’s Customs and Border Protection (CBP) collects, these duties to protect U.S. businesses and level the playing field for domestic products.  Imports of PRC-made wooden bedroom furniture have been subject to antidumping duties since 2004.  At the time of the alleged conduct in this case, wooden bedroom furniture from the PRC was subject to a 216 percent antidumping duty; non-bedroom furniture was not subject to any antidumping duty.

“CBP is committed to ensuring a level playing field for all American businesses,” said Brenda Smith, Executive Assistant Commissioner, Office of Trade, CBP. “We work with our federal partners to hold accountable those looking to circumvent U.S. trade laws.”

The settlement with HFRG resolves a lawsuit filed in the Western District of Texas by University Loft Company, a competitor of HFRG, under the whistleblower provision of the False Claims Act.  The act permits private parties to sue on behalf of the United States those who falsely claim federal funds or, as in this case, who avoid paying funds owed to the government.  The act also allows the whistleblower to receive a share of any funds recovered.  As part of today’s resolution, University Loft Company will receive approximately $75,000.    

The investigation was handled by the Department of Justice Civil Division, Commercial Litigation Branch, with assistance from CBP and the Department of Commerce International Trade Administration. 

The lawsuit is captioned United States ex rel. University Loft Company, L.P. v. Home Furnishings Resource Group, Inc., et al., Case No. 15-CV-646 (W.D. Tex.).  The claims resolved by this settlement are allegations only; there has been no determination of liability. 

A tax return preparer in the Wichita, Kansas, area prepares fraudulent tax returns for her customers, according to a new civil lawsuit filed by the Justice Department today. The suit, filed in federal court in Wichita, Kansas, asks the court to permanently bar Ma Guadalupe Valenzuela (a/k/a Maria Guadalupe Valenzuela a/k/a Lupe Valenzuela, individually and doing business as Servicio de Income Tax) from preparing federal tax returns for others. The government also asks the court to order Valenzuela to turn over the names of customers for whom she has prepared federal tax returns since 2012.

The complaint alleges that the defendant unlawfully understates her customers’ income tax liabilities and overstates these customers’ refunds. According to the complaint, Valenzuela unlawfully prepares federal tax returns that lowers her customers’ federal tax liabilities by claiming bogus child tax credits, improper dependency exemptions, and false filing statuses.

The IRS has a list of steps on their website that you can take now in anticipation of filing your 2017 federal income tax return. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2017 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.

WASHINGTON – Una preparadora de declaraciones de la renta del área de Wichita, Kansas, prepara declaraciones de impuestos fraudulentas para sus clientes, según un nuevo litigio civil presentado hoy por el Departamento de Justicia. El litigio, presentado ante un tribunal federal de Wichita, Kansas, pide al tribunal prohibir permanentemente a Ma. Guadalupe Valenzuela (alias Maria Guadalupe Valenzuela, alias Lupe Valenzuela, individualmente y como empresa de Servicio de Impuestos sobre la Renta) preparar declaraciones de impuestos federales para otros. El gobierno también pide al tribunal que ordene a Valenzuela entregar los nombres de los clientes para los que ha preparado declaraciones de impuestos federales desde 2012.

La denuncia alega que la acusada subestima ilegalmente las responsabilidades fiscales de sus clientes y sobrestima sus reintegros. Según la denuncia, Valenzuela prepara ilegalmente declaraciones de impuestos federales que subestiman las responsabilidades fiscales federales de sus clientes al demandar créditos tributarios incorrectos por niños, exenciones de dependencia indebidas y estados civiles falsos a efectos impositivos.    

El IRS dispone de una lista de medidas en su sitio web que usted puede tomar ahora en anticipación a su declaración de impuestos federales de 2017. Los fraudes de los preparadores de declaraciones de impuestos son una de las Doce estafas tributarias más comunes de 2017 del IRS y los contribuyentes que estén buscando un preparador de declaraciones de impuestos deben actuar con cautela. El IRS da algunos consejos en su sitio web para escoger a un preparador de declaraciones de impuestos y ha inaugurado un directorio gratuito de preparadores de declaraciones de impuestos federales.

En la última década, la División de Impuestos ha dictado medidas cautelares contra cientos de preparadores de declaraciones de impuestos inescrupulosos. La información sobre estos casos está disponible en el sitio web del Departamento de Justicia. En esta página figura una lista, por orden alfabético, de las personas a las que se ha prohibido preparar declaraciones tributarias y promover estrategias fiscales. Si cree que una de las personas o las empresas a las que se ha impuesto esta prohibición puede estar violando una orden judicial, sírvase ponerse en contacto con la División de Impuestos indicando los detalles.

Assistant Attorney General Makan Delrahim of the U.S. Department of Justice’s Antitrust Division and Acting Chairman Maureen Ohlhausen of the Federal Trade Commission participated in high-level bilateral meetings with officials responsible for China’s three anti-monopoly agencies: Vice Chairman Hu Zucai and Director General Zhang Handong of the National Development and Reform Commission (NDRC), Assistant Minister Li Chenggang and Director General Wu Zhenguo of the Ministry of Commerce (MOFCOM), and Vice Minister Wang Jiangping and Director General Yang Hongcan of the State Administration for Industry and Commerce (SAIC). NDRC Chairman He Lifeng welcomed Assistant Attorney General Delrahim and Acting Chairman Ohlhausen to NDRC before the meetings.

The meetings took place this week in Beijing, China, where participating agencies discussed their ongoing work to ensure fair and effective antitrust enforcement and increased cooperation between the agencies.  The meetings covered a wide range of topics, including enforcement and policy developments and priorities, the treatment of intellectual property, and future opportunities for cooperation.  In addition, the agencies exchanged views on the role of sound and effective procedures in competition enforcement and the importance of competition advocacy in promoting innovation.  The meetings will continue today and tomorrow, with separate meetings between U.S. antitrust enforcers and each of the three Chinese agencies.

Following the high-level bilateral meetings, Assistant Attorney General Delrahim spoke on competition, intellectual property and economic prosperity at an event co-hosted by the China Intellectual Property Law Society, the Peking University Intellectual Property Alumni Association, and the U.S. Embassy in Beijing.  Assistant Attorney General Delrahim discussed the importance of strong IP protections to a successful and vibrant economy, and shared his views regarding how competition enforcement should be calibrated to maximize innovation for the benefit of consumers.  He also addressed the role of international engagement in enhancing innovation and competition, and discussed his hopes for continued engagement between the United States and China on these issues.  

The U.S. delegation’s visit to China is the fourth occasion for joint, high-level meetings between the agencies since the Justice Department and the FTC signed an antitrust memorandum of understanding (MOU) with the Chinese antitrust agencies on July 27, 2011.  The MOU is designed to promote communication and cooperation between the U.S. and Chinese antitrust enforcement agencies, and provides for periodic high-level consultations.