District Not Recorded

A social security disability lawyer was sentenced today in federal court for his role in a scheme to fraudulently obtain more than $550 million in federal disability payments from the Social Security Administration (SSA) for thousands of claimants.

 

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

 

Eric Christopher Conn, 56, of Pikeville, Kentucky, was sentenced by U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to 12 years in prison, and to pay restitution in an amount in excess of $106 million to the SSA and HHS. Conn pleaded guilty to one count of theft of government money and one count of payment of gratuities. On June 2, Conn fled from federal custody and remains a fugitive. He was not present for his sentencing hearing.

 

According to the plea, from October 2004 to April 6, 2016, Conn participated in a scheme with former SSA administrative law judge David B. Daugherty and multiple doctors that involved the submission of thousands of falsified medical documents to the SSA. As a result of the scheme, Conn and his co-conspirators obligated the SSA to pay more than $550 million in lifetime benefits to claimants for these fraudulent submissions. 

 

According to the plea, Conn is an attorney whose firm in Floyd County, Kentucky, focused for more than 20 years primarily on representing individuals seeking Social Security disability benefits throughout Kentucky and elsewhere. According to documents filed in connection with the guilty plea, Conn admitted that from December 2004 through April 2011, he paid Daugherty approximately $10,000 a month to award disability benefits to claimants for whom Conn submitted falsified medical documents. 

 

As part of his plea, Conn admitted that he submitted the falsified medical documents, and Daugherty authored decisions granting disability benefits, in well over 1,700 claimants’ cases. Conn admitted that he paid medical professionals to sign medical forms that he fabricated before evaluations of claimants took place. According to the plea, Conn routinely prepared and medical professionals, such as clinical psychologist Alfred Bradley Adkins, signed evaluation reports indicating that claimants had limitations considered disabling by the SSA, irrespective of the claimants’ actual physical or mental conditions. Conn admitted that he received more than $5.7 million in representative fees from the SSA based upon these fraudulent claims.

 

Conn was indicted last year, along with Daugherty and Adkins. They were charged with conspiracy, fraud, false statements, money laundering and other related offenses in connection with the scheme, and that indictment remains pending. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

 

Daugherty pleaded guilty on May 12 to a two-count information charging him with receipt of illegal gratuities. On June 12, Adkins was convicted after a jury trial of one count of conspiracy to commit mail fraud and wire fraud, one count of mail fraud, one count of wire fraud and one count of making false statements. Both Daugherty and Adkins are awaiting sentencing.

 

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

Wayne Powell, a former employee of American Suzuki Motor Corporation headquartered in Brea, California, pleaded guilty today in a federal court in Detroit, Michigan, to violating the Clean Air Act by submitting a false end-of-year report to the U.S. Environmental Protection Agency, the Justice Department announced.

According to the plea agreement, Powell, a Government Relations Analyst for Suzuki, was responsible for submitting documents to the EPA regarding Suzuki’s compliance with motorcycle emission standards. Powell was in charge of submitting Suzuki’s 2012 application to the EPA for a “certificate of conformity,” which allows a vehicle manufacturer to sell vehicles in the United States. Rather than seek certification of each motorcycle engine family, Suzuki combined the certifications of multiple engine families and averaged their emission standards based on the total number of motorcycles in each family. At the end of the model year, Suzuki was required to submit to the EPA an end-of-year report to show that it was in compliance with emission standards.

The average that Powell created combined emissions of hydrocarbons and nitrogen oxides for the 23,528 Class III model year 2012 motorcycles that Suzuki imported, distributed and sold in the U.S. The average violated the emission limit. The first end-of-year report Powell submitted to the EPA in 2013 purported to utilize “banked credits” to offset the excess emissions. However, Suzuki had not participated in the banked credit program and therefore had no credits to use. As a result, the EPA informed Powell it could not accept the report. Subsequently, on March 28, 2014, Powell submitted an amended end-of-year report to the EPA’s Office of Transportation and Air Quality in Ann Arbor in which he altered the numbers of four motorcycle engine families, resulting in a calculation that was within the emission limit. The altered numbers were false. Powell also deceitfully represented to the EPA in the email that accompanied the amended report that “[t]he computer software that we use to gather this information did not count all of the units” and that he had “corrected some mistakes on the 2012 report.”

Powell faces a statutory maximum penalty of two years in prison and a fine of up to $250,000.

Acting Assistant Attorney General Jeffrey H. Wood and Acting U.S. Attorney Daniel L. Lemisch thanked the U.S. Environmental Protection Agency’s Criminal Investigation Division, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the U.S. Postal Inspection Service for their work in this investigation. The case is being prosecuted by Senior Counsel Kris Dighe of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division and Craig Weier of the U.S. Attorney’s Office for the Eastern District of Michigan.

The Department of Justice announced today the filing of a civil complaint seeking the forfeiture and recovery of approximately $144 million in assets that are allegedly the proceeds of foreign corruption offenses and were laundered in and through the U.S. Acting Assistant Attorney General Kenneth A. Blanco, Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office, Assistant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division, and Chief Don Fort of the IRS Criminal Investigation (IRS-CI) made the announcement.

According to the complaint, from 2011 to 2015, Nigerian businessmen Kolawole Akanni Aluko and Olajide Omokore conspired with others to pay bribes to Nigeria’s former Minister for Petroleum Resources, Diezani Alison-Madueke, who oversaw Nigeria’s state-owned oil company. In return for these improper benefits, Alison-Madueke used her influence to steer lucrative oil contracts to companies owned by Aluko and Omokore. The complaint alleges that the proceeds of those illicitly awarded contracts were then laundered in and through the U.S. and used to purchase various assets subject to seizure and forfeiture, including a $50 million condominium located in one of Manhattan’s most expensive buildings – 157 W. 57th Street – and the Galactica Star, an $80 million yacht.

“The United States is not a safe haven for the proceeds of corruption,” said Acting Assistant Attorney General Blanco. “The complaint announced today demonstrates the Department’s commitment to working with our law enforcement partners around the globe to trace and recover the proceeds of corruption, no matter the source. Corrupt foreign officials and business executives should make no mistake: if illicit funds are within the reach of the United States, we will seek to forfeit them and to return them to the victims from whom they were stolen.”

“Business executives who engage in bribery and illegal pay-offs in order to obtain contracts create an uneven marketplace where honest competitor companies are put at a disadvantage,” said Assistant Director Vale. “Along with the Department of Justice, international law enforcement partners and other U.S. federal agencies, the FBI is committed to pursuing all those who attempt to advance their businesses through corrupt practices.”

“Today’s announcement would not have been possible without the remarkable work conducted by a group of dedicated investigators, attorneys and international partners who were committed to leaving no stone unturned in this case targeting international corruption,” said Assistant Director Richardson. “This case demonstrates that the FBI will not tolerate American institutions and property being used to launder proceeds of foreign corruption and today’s filing is an important step towards recovering identified funds. This should serve as a warning to other corrupt foreign officials that the United States is not open for their business.”

“Today’s actions are the direct result of our agents following the money and unmasking corruption and greed,” said Chief Fort. “Working with our law enforcement partners, IRS-CI will continue to investigate and unravel these complex financial transactions.”

The government alleges that Aluko, Omokore and others funded a lavish lifestyle for Alison-Madueke. According to the allegations, they conspired to purchase millions of dollars in real estate in and around London for Alison-Madueke and her family members, then renovated and furnished these homes with millions of dollars in furniture, artwork and other luxury items purchased at two Houston-area furniture stores at Alison-Madueke’s direction. In return, the government alleges Alison-Madueke used her influence to direct a subsidiary of the Nigerian National Petroleum Corporation to award Strategic Alliance Agreements (SAAs) to two shell companies created by Aluko and Omokore: Atlantic Energy Drilling Concepts Nigeria Ltd. and Atlantic Energy Brass Development Ltd. (the Atlantic Companies). Under the SAAs, the Atlantic Companies were required to finance the exploration and production operations of eight on-shore oil and gas blocks. In return for financing these operations, the companies expected to receive a portion of the oil and gas produced. However, according to the complaint, the Atlantic Companies provided only a fraction of the agreed upon financing or, in some instances, failed entirely to provide it. The companies also failed to meet other obligations under the SAAs, including the payment of $120 million entry fee. Nevertheless, according to the allegations, the companies were permitted to lift and sell more than $1.5 billion worth of Nigerian crude oil. The government contends the Atlantic Companies then used a series of shell companies and intermediaries to launder a portion of the total proceeds of these arrangements into and through the U.S.

A civil forfeiture complaint is merely an allegation that money or property was involved in or represents the proceeds of a crime. These allegations are not proven until a court awards judgment in favor of the U.S.

The FBI’s International Corruption Squads in Washington, D.C. and Los Angeles and the IRS-CI are investigating the case. Trial Attorneys Stephen A. Gibbons and Michael W. Khoo of the Criminal Division’s Money Laundering and Asset Recovery Section are prosecuting the case. The Criminal Division’s Office of International Affairs is providing substantial assistance.

This case was brought under the Kleptocracy Asset Recovery Initiative. This initiative is led by a team of dedicated prosecutors in the Criminal Division’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies, and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption and, where appropriate, to use those recovered assets to benefit the people harmed by these acts of corruption and abuse of office.

In 2015, the FBI formed International Corruption Squads across the country to address national and international implications of foreign corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the U.S. should contact federal law enforcement or send an email to kleptocracy@usdoj.gov or https://tips.fbi.gov/.\

Attorney General Jeff Sessions and Department of Health and Human Services (HHS) Secretary Tom Price, M.D., announced today the largest ever health care fraud enforcement action by the Medicare Fraud Strike Force, involving 412 charged defendants across 41 federal districts, including 115 doctors, nurses and other licensed medical professionals, for their alleged participation in health care fraud schemes involving approximately $1.3 billion in false billings. Of those charged, over 120 defendants, including doctors, were charged for their roles in prescribing and distributing opioids and other dangerous narcotics. Thirty state Medicaid Fraud Control Units also participated in today’s arrests. In addition, HHS has initiated suspension actions against 295 providers, including doctors, nurses and pharmacists. 

Attorney General Sessions and Secretary Price were joined in the announcement by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting Director Andrew McCabe of the FBI, Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA), Inspector General Daniel Levinson of the HHS Office of Inspector General (OIG), Chief Don Fort of IRS Criminal Investigation, Administrator Seema Verma of the Centers for Medicare and Medicaid Services (CMS), and Deputy Director Kelly P. Mayo of the Defense Criminal Investigative Service (DCIS).

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

The charges announced today aggressively target schemes billing Medicare, Medicaid, and TRICARE (a health insurance program for members and veterans of the armed forces and their families) for medically unnecessary prescription drugs and compounded medications that often were never even purchased and/or distributed to beneficiaries. The charges also involve individuals contributing to the opioid epidemic, with a particular focus on medical professionals involved in the unlawful distribution of opioids and other prescription narcotics, a particular focus for the Department. According to the CDC, approximately 91 Americans die every day of an opioid related overdose.   

“Too many trusted medical professionals like doctors, nurses, and pharmacists have chosen to violate their oaths and put greed ahead of their patients,” said Attorney General Sessions. “Amazingly, some have made their practices into multimillion dollar criminal enterprises. They seem oblivious to the disastrous consequences of their greed. Their actions not only enrich themselves often at the expense of taxpayers but also feed addictions and cause addictions to start. The consequences are real: emergency rooms, jail cells, futures lost, and graveyards.  While today is a historic day, the Department's work is not finished. In fact, it is just beginning. We will continue to find, arrest, prosecute, convict, and incarcerate fraudsters and drug dealers wherever they are.”

“Healthcare fraud is not only a criminal act that costs billions of taxpayer dollars - it is an affront to all Americans who rely on our national healthcare programs for access to critical healthcare services and a violation of trust,” said Secretary Price. “The United States is home to the world’s best medical professionals, but their ability to provide affordable, high-quality care to their patients is jeopardized every time a criminal commits healthcare fraud. That is why this Administration is committed to bringing these criminals to justice, as President Trump demonstrated in his 2017 budget request calling for a new $70 million investment in the Health Care Fraud and Abuse Control Program. The historic results of this year’s national takedown represent significant progress toward protecting the integrity and sustainability of Medicare and Medicaid, which we will continue to build upon in the years to come.”

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

“This week, thanks to the work of dedicated investigators and analysts, we arrested once-trusted doctors, pharmacists and other medical professionals who were corrupted by greed,” said Acting Director McCabe. “The FBI is committed to working with our partners on the front lines of the fight against heath care fraud to stop those who steal from the government and deceive the American public.”

“Health care fraud is a reprehensible crime.  It not only represents a theft from taxpayers who fund these vital programs, but impacts the millions of Americans who rely on Medicare and Medicaid,” said Inspector General Levinson. “In the worst fraud cases, greed overpowers care, putting patients’ health at risk. OIG will continue to play a vital leadership role in the Medicare Fraud Strike Force to track down those who abuse important federal health care programs.”

“Our enforcement actions underscore the commitment of the Defense Criminal Investigative Service and our partners to vigorously investigate fraud perpetrated against the DoD's TRICARE Program. We will continue to relentlessly investigate health care fraud, ensure the taxpayers' health care dollars are properly spent, and endeavor to guarantee our service members, military retirees, and their dependents receive the high standard of care they deserve,” advised Deputy Director Mayo.

“Last year, an estimated 59,000 Americans died from a drug overdose, many linked to the misuse of prescription drugs. This is, quite simply, an epidemic,” said Acting Administrator Rosenberg. “There is a great responsibility that goes along with handling controlled prescription drugs, and DEA and its partners remain absolutely committed to fighting the opioid epidemic using all the tools at our disposal.”

“Every defendant in today’s announcement shares one common trait - greed,” said Chief Fort. “The desire for money and material items drove these individuals to perpetrate crimes against our healthcare system and prey upon many of the vulnerable in our society.  Thanks to the financial expertise and diligence of IRS-CI special agents, who worked side-by-side with other federal, state and local law enforcement officers to uncover these schemes, these criminals are off the street and will now face the consequences of their actions.”

The Medicare Fraud Strike Force operations are part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.

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For the Strike Force locations, in the Southern District of Florida, a total of 77 defendants were charged with offenses relating to their participation in various fraud schemes involving over $141 million in false billings for services including home health care, mental health services and pharmacy fraud.  In one case, the owner and operator of a purported addiction treatment center and home for recovering addicts and one other individual were charged in a scheme involving the submission of over $58 million in fraudulent medical insurance claims for purported drug treatment services. The allegations include actively recruiting addicted patients to move to South Florida so that the co-conspirators could bill insurance companies for fraudulent treatment and testing, in return for which, the co-conspirators offered kickbacks to patients in the form of gift cards, free airline travel, trips to casinos and strip clubs, and drugs.

In the Eastern District of Michigan, 32 defendants face charges for their alleged roles in fraud, kickback, money laundering and drug diversion schemes involving approximately $218 million in false claims for services that were medically unnecessary or never rendered. In one case, nine defendants, including six physicians, were charged with prescribing medically unnecessary controlled substances, some of which were sold on the street, and billing Medicare for $164 million in facet joint injections, drug testing, and other procedures that were medically unnecessary and/or not provided.

In the Southern District of Texas, 26 individuals were charged in cases involving over $66 million in alleged fraud. Among these defendants are a physician and a clinic owner who were indicted on one count of conspiracy to distribute and dispense controlled substances and three substantive counts of distribution of controlled substances in connection with a purported pain management clinic that is alleged to have been the highest prescribing hydrocodone clinic in Houston, where approximately 60-70 people were seen daily, and were issued medically unnecessary prescriptions for hydrocodone in exchange for approximately $300 cash per visit. 

In the Central District of California, 17 defendants were charged for their roles in schemes to defraud Medicare out of approximately $147 million. Two of these defendants were indicted for their alleged involvement in a $41.5 million scheme to defraud Medicare and a private insurer. This was purportedly done by submitting fraudulent claims, and receiving payments for, prescription drugs that were not filled by the pharmacy nor given to patients. 

In the Northern District of Illinois, 15 individuals were charged in cases related to six different schemes concerning home health care services and physical therapy fraud, kickbacks, and mail and wire fraud.  These schemes involved allegedly over $12.7 million in fraudulent billing. One case allegedly involved $7 million in fraudulent billing to Medicare for home health services that were not necessary nor rendered.

In the Middle District of Florida, 10 individuals were charged with participating in a variety of schemes involving almost $14 million in fraudulent billing.  In one case, three defendants were charged in a $4 million scheme to defraud the TRICARE program.  In that case, it is alleged that a defendant falsely represented himself to be a retired Lieutenant Commander of the United States Navy Submarine Service. It is alleged that he did so in order to gain the trust and personal identifying information from TRICARE beneficiaries, many of whom were members and veterans of the armed forces, for use in the scheme.

In the Eastern District of New York, ten individuals were charged with participating in a variety of schemes including kickbacks, services not rendered, and money laundering involving over $151 million in fraudulent billings to Medicare and Medicaid. Approximately $100 million of those fraudulent billings were allegedly part of a scheme in which five health care professionals paid illegal kickbacks in exchange for patient referrals to their own clinics.

In the Southern Louisiana Strike Force, operating in the Middle and Eastern Districts of Louisiana as well as the Southern District of Mississippi, seven defendants were charged in connection with health care fraud, wire fraud, and kickback schemes involving more than $207 million in fraudulent billing. One case involved a pharmacist who was charged with submitting and causing the submission of $192 million in false and fraudulent claims to TRICARE and other health care benefit programs for dispensing compounded medications that were not medically necessary and often based on prescriptions induced by illegal kickback payments.

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In addition to the Strike Force locations, today’s enforcement actions include cases and investigations brought by an additional 31 U.S. Attorney’s Offices, including the execution of search warrants in investigations conducted by the Eastern District of California and the Northern District of Ohio.

In the Northern and Southern Districts of Alabama, three defendants were charged for their roles in two health care fraud schemes involving pharmacy fraud and drug diversion.

In the Eastern District of Arkansas, 24 defendants were charged for their roles in three drug diversion schemes that were all investigated by the DEA.

In the Northern and Southern Districts of California, four defendants, including a physician, were charged for their roles in a drug diversion scheme and a health care fraud scheme involving kickbacks.

In the District of Connecticut, three defendants were charged in two health care fraud schemes, including a scheme involving two physicians who fraudulently billed Medicaid for services that were not rendered and for the provision of oxycodone with knowledge that the prescriptions were not medically necessary. 

In the Northern and Southern Districts of Georgia, three defendants were charged in two health care fraud schemes involving nearly $1.5 million in fraudulent billing.

In the Southern District of Illinois, five defendants were charged in five separate schemes to defraud the Medicaid program.

In the Northern and Southern Districts of Indiana, at least five defendants were charged in various health care fraud schemes related to the unlawful distribution and dispensing of controlled substances, kickbacks, and services not rendered.

In the Southern District of Iowa, five defendants were charged in two schemes involving the distribution of opioids. 

In the Western District of Kentucky, 11 defendants were charged with defrauding the Medicaid program.  In one case, four defendants, including three medical professionals, were charged with distributing controlled substances and fraudulently billing the Medicaid program.

In the District of Maine, an office manager was charged with embezzling funds from a medical office.

In the Eastern and Western Districts of Missouri, 16 defendants were charged in schemes involving over $16 million in claims, including 10 defendants charged as part of a scheme involving fraudulent lab testing.

In the District of Nebraska, a dentist was charged with defrauding the Medicaid program. 

In the District of Nevada, two defendants, including a physician, were charged in a scheme involving false hospice claims. 

In the Northern, Southern, and Western Districts of New York, five defendants, including two physicians and two pharmacists, were charged in schemes involving drug diversion and pharmacy fraud.

In the Southern District of Ohio, five defendants, including four physicians, were charged in connection with schemes involving $12 million in claims to the Medicaid program.

In the District of Puerto Rico, 13 defendants, including three physicians and two pharmacists, were charged in four schemes involving drug diversion, Medicaid fraud, and the theft of funds from a health care program.

In the Eastern District of Tennessee, three defendants were charged in a scheme involving fraudulent billings and the distribution of opioids.

In the Eastern, Northern, and Western Districts of Texas, nine defendants were charged in schemes involving over $42 million in fraudulent billing, including a scheme involving false claims for compounded medications. 

In the District of Utah, a nurse practitioner was charged in connection with fraudulently obtaining a controlled substance, tampering with a consumer product, and infecting over seven individuals with Hepatitis C.  

In the Eastern District of Virginia, a defendant was charged in connection with a scheme involving identify theft and fraudulent billings to the Medicaid program.

In addition, in the states of Arizona, Arkansas, California, Delaware, Illinois, Iowa, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, New York, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Texas, Utah, Vermont, Washington and Wisconsin, 96 defendants have been charged in criminal and civil actions with defrauding the Medicaid program out of over $31 million. These cases were investigated by each state’s respective Medicaid Fraud Control Units. In addition, the Medicaid Fraud Control Units of the states of Alabama, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Missouri, Nebraska, New York, North Carolina, Ohio, Texas, and Utah participated in the investigation of many of the federal cases discussed above.

The cases announced today are being prosecuted and investigated by U.S. Attorney’s Offices nationwide, along with Medicare Fraud Strike Force teams from the Criminal Division’s Fraud Section and from the U.S. Attorney’s Offices of the Southern District of Florida, Eastern District of Michigan, Eastern District of New York, Southern District of Texas, Central District of California, Eastern District of Louisiana, Northern District of Texas, Northern District of Illinois and the Middle District of Florida; and agents from the FBI, HHS-OIG, Drug Enforcement Administration, DCIS and state Medicaid Fraud Control Units.

A complaint, information, or indictment is merely an allegation, and all defendants are presumed innocent unless and until proven guilty.

Additional documents related to this announcement will shortly be available here: https://www.justice.gov/opa/documents-and-resources-july-13-2017.

This operation also highlights the great work being done by the Department of Justice’s Civil Division.  In the past fiscal year, the Department of Justice, including the Civil Division, has collectively won or negotiated over $2.5 billion in judgements and settlements related to matters alleging health care fraud. 

The Justice Department today announced that it has filed a lawsuit against Robert N. Hatfield, who rents, sells, and finances homes in Wilkes County, North Carolina. The lawsuit alleges that Hatfield sexually harassed actual and prospective female residents and borrowers in violation of the Fair Housing Act and the Equal Credit Opportunity Act.

The complaint, filed in the U.S. District Court for the Western District of North Carolina, alleges that for over ten years Hatfield has committed egregious acts of sexual harassment against multiple women who have lived in or inquired about his homes. According to the complaint, Hatfield operates some of his homes as rental properties, which he manages, and offers and provides financing to purchasers of his other homes. The suit alleges that Hatfield’s conduct has included making unwelcome sexual comments and advances, engaging in unwanted sexual touching and groping, offering tangible housing benefits in exchange for sex acts, and taking or threatening to take adverse housing actions against women who object to his harassment.

“Sexual harassment in housing and lending is unacceptable, and indeed is illegal,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “Every woman has the right to feel safe in her home, and the Justice Department will continue to vigorously enforce the federal civil rights laws to hold accountable those who violate this basic right.”

“The victims in this case merely wanted to rent or buy a home, a place of sanctity and safety,” said U.S. Attorney Jill Westmoreland Rose of the Western District of North Carolina. “Unfortunately, the process became sordid when Hatfield used the critical need for housing as leverage to make unwanted and aggressive sexual advances. This lawsuit should serve as fair warning that Mr. Hatfield’s actions were not only unlawful, but repugnant to the citizens of Western North Carolina - and this office will work vigorously to protect the women, families and other vulnerable individuals harmed by this type of conduct.”

The lawsuit seeks monetary damages to compensate victims, a civil penalty, and a court order barring further discrimination and requiring additional preventive measures. The complaint is an allegation of unlawful conduct. The allegations must be proven in federal court.

Individuals who believe they may have been victims of housing or lending discrimination by Robert Hatfield or who have information about this matter can contact the Justice Department by phone at 1-800-896-7743, mailbox number 3, or by e-mail at fairhousing@usdoj.gov. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.

 

FALLS CHURCH, VA - The Executive Office for Immigration Review (EOIR) today announced the investiture of a new immigration judge. Chief Immigration Judge MaryBeth Keller presided over the investiture during a ceremony held this afternoon at EOIR headquarters in Falls Church, Va.

After a thorough application process, Attorney General Jeff Sessions appointed James M. McCarthy to his new position.

"We welcome Judge McCarthy to the ranks of immigration judges at EOIR," said Acting Director James McHenry. "EOIR is committed to reducing its significant pending caseload, and Judge McCarthy’s presence augments our ability to do that in one of our highest-volume courts."

Biographical information follows.

James M. McCarthy, Immigration Judge, New York City Immigration Court

Attorney General Jeff Sessions appointed James M. McCarthy to begin hearing cases in July 2017. Judge McCarthy earned a Bachelor of Science degree in 1983 from St. John’s University and a Juris Doctor in 1995 from Brooklyn Law School. From 2014 to 2017, he served as a senior attorney for Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in New York, N.Y. From 2011 to 2014, he served as a deputy chief counsel for the Office of Chief Counsel, ICE, DHS, also in New York. From 2009 to 2011, he served as a senior attorney for ICE, DHS, in Eloy, Ariz. From 2004 to 2009, he served as an assistant chief counsel for ICE, DHS, in Eloy and Florence, Ariz. From 2000 to 2004, he served as an examining attorney for the Mayoral Commission to Combat Police Corruption, New York City Department of Investigations. From 1995 to 2000, he served as an assistant district attorney, and later as a senior assistant district attorney, at the Kings County District Attorney’s Office, in Brooklyn, N.Y. Judge McCarthy is a member of the New York State Bar.

A lawsuit was settled today involving an electrical cable beneath Boston Harbor that runs across two shipping channels that the government alleged was not placed at the required depth when it was installed in 1990.  The settlement will allow the Boston Harbor Deep Draft Navigation Improvement Project to continue and ensure that modifications will come at no cost to the United States or Massport.   

NSTAR Electric Company d/b/a Eversource Energy (NSTAR), NSTAR subsidiary Harbor Electric Energy Company (HEEC), and the Massachusetts Water Resources Authority (MWRA) have entered into an agreement to settle a lawsuit filed against them by the United States in connection with a submarine electrical cable that lies beneath Boston Harbor and runs across two federal shipping channels. The government’s complaint alleged that the cable was not installed as deep as required by a permit issued by the New England District of the U.S. Army Corps of Engineers (USACE).

“The settlement will remedy the Clean Water Act and River and Harbors Act permit violations,” said Acting Assistant Attorney General Jeffrey H. Wood for the Justice Department’s Environment and Natural Resources Division. “The permit violations in connection with the electric cable running under Boston Harbor will be resolved, so that the Deep Draft Project can proceed as scheduled. In addition, the settlement shows the commitment we place on upholding the integrity of U.S. Army Corps of Engineers dredge-and-fill permits, and the work the Corps does to protect our Nation’s waterways and highways of commerce.”

“This settlement will allow the Deep Draft project to proceed as planned,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “The Deep Draft project is necessary to keep the Port of Boston and its shipping facilities competitive with other East Coast ports. The settlement also means there will be no interference with the provision of electricity to the Deer Island Waste Water Treatment Plant, which is critical to keeping Boston Harbor clean. This is a victory for both the local economy and the environment.”

The cable, installed in 1990, extends from an NSTAR electrical substation in South Boston to Deer Island. Its purpose was to provide electricity to power the construction and operation of the Deer Island Waste Water Treatment Plant, which is run by the MWRA. The permit required the cable to be embedded at least 25 feet below the bottom of two shipping channels that it crosses, the Reserved Channel and the Main Ship Channel.

The improper installation of the cable took on urgency in 2014, when Congress authorized the deepening of Boston Harbor, including the channels crossed by the cable. The $310 million project to deepen the shipping channels will provide increased depth between Massachusetts Bay and Conley Container Terminal to accommodate the new generation of larger container ships. The harbor deepening project, known as the Deep Draft project, is being led by the USACE in partnership with Massport, which operates Conley Container Terminal. USACE determined that the existing depth of the cable was likely to interfere with the dredging operations of the Deep Draft project, putting the entire project at risk.

The government’s complaint alleged that the permittees – NSTAR, HEEC, and the MWRA – violated two federal laws under which the permit was issued, the Rivers and Harbors Act of 1899 and the Clean Water Act. Massport intervened in the lawsuit, siding with the United States.

Under the terms of the settlement, HEEC will lay a new electrical cable across Boston Harbor from South Boston to Deer Island – but outside the Reserved Channel and out of the way of the Deep Draft project – by the end of 2019. HEEC will then remove the existing cable. Neither the United States nor Massport will bear any of the cost to install or maintain the new cable or remove the existing cable.

Acting Assistant Attorney General Wood, Acting U.S. Attorney Weinreb, and Colonel Christopher Barron, District Engineer and Commander of the USACE New England District, made the announcement today. The case was handled by Assistant U.S. Attorney Christine Wichers of Weinreb’s Civil Division.

 

Welcome reception at the Heads of National Central Bureaus of the Americas in Bogota, Columbia.

From July 11th through July 12th, 2017 Acting Director Wayne Salzgaber and Deputy Chief of Staff Joe Ferrigno attended the First Extraordinary Meeting of Heads of National Central Bureaus in the Americas that took place in Bogota, Colombia. The U.S. National Central Bureau, INTERPOL Washington, sponsored the meeting. The Colombian National Police Criminal Investigation Directorate and INTERPOL at the "General Francisco de Paula Santander" School of Police Training Academy of the National Police of Colombia served as the hosts for this first ever meeting.

The Department of Justice’s Antitrust Division issued the following statement today after announcing the closing of its investigation into the possible acquisition of the Chicago Sun-Times by tronc Inc., the owner of the Chicago Tribune:

 

On May 15, 2017, the Antitrust Division announced that it was investigating the possible acquisition of the Chicago Sun-Times by tronc because the merger of the two daily newspapers in Chicago would raise significant antitrust concerns.

 

The Division’s investigation focused on whether the Chicago Sun-Times was a failing company under the Department of Justice/Federal Trade Commission Horizontal Merger Guidelines, which provide that a transaction is not likely to be anticompetitive if the assets of one of the firms would otherwise exit the market. One of the conditions required to be met in order to establish the “failing firm” defense is that the failing firm “has made unsuccessful good-faith efforts to elicit reasonable alternative offers that would keep its tangible and intangible assets in the relevant market and pose a less severe danger to competition than does the proposed merger.” Horizontal Merger Guidelines at § 11. Because this condition may not be satisfied by a confidential sale effort, a seller may choose to undertake a public sale process to augment its effort to elicit reasonable alternative offers.

 

In this case, Wrapports LLC, the owner of the Chicago Sun-Times, launched a public sale process on May 16, 2017, which the Division monitored closely. This process resulted in Wrapports selling the Chicago Sun-Times to an alternative buyer, ST Acquisition Holdings LLC, which does not currently own an interest in any other newspaper. As a result, the Division will be closing its investigation of the possible acquisition of the Chicago Sun-Times by tronc.

 

The Division notes that some transactions that rely on a failing firm defense may not be reportable under the Hart-Scott-Rodino Act. Division encourages firms whose non-reportable transaction relies on a failing firm defense to: (i) inform the Division about the proposed transaction prior to consummation; (ii) allow for sufficient time for the Division to conduct a thorough investigation, which may decrease the possibility of a precipitous enforcement action; and (iii) plan in advance for the costs of undergoing such an investigation. At the same time, when voluntarily notified of such a transaction, the Division endeavors to conduct its investigation expeditiously under the circumstances. Here, Wrapports helpfully notified the Division of the Letter of Intent that it had entered into with tronc, which enabled the Division to open its investigation and monitor the public sale process.

 

The Antitrust Division is the agency responsible for investigating mergers involving newspapers.

 

Tronc is a Delaware corporation headquartered in Chicago. It publishes major daily newspapers across California, Illinois, Florida, Maryland, Connecticut, Virginia and Pennsylvania. Wrapports is a privately-held Delaware limited liability company based in Chicago. ST Acquisition Holdings is a privately-held Delaware limited liability company based in Chicago.

 

The Antitrust Division’s Closing Statement Policy

 

The Division provides this statement under its policy of issuing statements concerning the closing of investigations in appropriate cases. This statement is limited by the Division’s obligation to protect the confidentiality of certain information obtained in its investigations. As in most of its investigations, the Division’s evaluation has been highly fact-specific, and many of the relevant underlying facts are not public. Consequently, readers should not draw overly broad conclusions regarding how the Division is likely in the future to analyze other collaborations or activities, or transactions involving particular firms. Enforcement decisions are made on a case-by-case basis, and the analysis and conclusions discussed in this statement do not bind the Division in any future enforcement actions. Guidance on the division's policy regarding closing statements is available at www.justice.gov/atr/public/closing/index.html.

Today Attorney General Jeff Sessions issued the following statement applauding the House of Representatives for passing three significant Anti-Human Trafficking bills:

“There is simply no way to overstate the horrific nature of enticement, kidnapping, and human trafficking. It is an absolute priority of President Trump and the Department of Justice to make those that seek to profit off the exploitation of others feel the weight of swift and certain justice. I am therefore extremely encouraged by the actions of Congress today in passing legislation aimed at stopping this scourge and commend all those that supported these bills.”

BACKGROUND

The Frederick Douglass Trafficking Victims Prevention and Protection Act

The Enhancing Detection of Human Trafficking Act

The Empowering Law Enforcement to Fight Sex Trafficking Demand Act

A federal grand jury has returned a superseding indictment charging 10 defendants with conspiring to participate in a violent racketeering enterprise known as Trained To Go (TTG). The superseding indictment, which was returned on June 30, 2017 and unsealed today, charges 10 alleged TTG gang members and TTG associates with conspiring to violate federal racketeering and drug trafficking laws. Four defendants are also charged with committing murder in aid of racketeering. Twelve defendants, including all 10 defendants charged in the RICO count, are also charged with conspiracy to distribute and possession with intent to distribute heroin, cocaine, and marijuana. Four defendants are charged with distribution and possession with intent to distribute heroin; two are charged with possession of a firearm in furtherance of a drug trafficking crime and with possession of a firearm by a felon.

 

The indictment was announced by Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office; Commissioner Kevin Davis of the Baltimore Police Department; and Special Agent in Charge Daniel L. Board Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division.

 

According to the ten-count indictment, the defendants are members of Trained To Go (TTG), a criminal organization whose members engaged in drug distribution and acts of violence involving murder, kidnapping, assault, robbery, and witness intimidation. TTG operated in the Sandtown neighborhood of West Baltimore. Members and associates of TTG sold narcotics, including heroin, cocaine, and marijuana, and worked to defend their exclusive right to control who sold narcotics in TTG territory. The murders, assaults, and kidnappings included that of rival gang members, rival drug dealers, and individuals cooperating with law enforcement, as well as engaging in murder-for-hire schemes. As part of the conspiracy, each defendant agreed that a conspirator would commit at least two acts of racketeering activity for TTG.

 

The investigation was conducted by the FBI Baltimore Safe Streets Violent Gang Task Force, which included five Baltimore City Police Officers.

 

The following defendants, all of Baltimore, are charged in the indictment unsealed today:

 

Montana Barronette, a/k/a Tana, and Tanner, age 22;

Terrell Sivells, a/k/a Rell, age 26;

John Harrison, a/k/a Binkie, age 27;

Taurus Tillman, a/k/a Tash, age 28;

Linton Broughton, a/k/a Marty, age 24;

Dennis Pulley, a/k/a Denmo, age 30;

Roger Taylor, a/k/a Milk, age 26;

Brandon Wilson, a/k/a Ali, age 23;

Brandon Bazemore, a/k/a Man Man, age 24;

Timothy Floyd, a/k/a Tim Rod, age 27

Hisaun Chatman, age 31; and

James Woodfolk, age 20.

 

The indictment alleges that between May 20, 2010 and May 25, 2016, the defendants committed acts of violence, including 10 murders, and one non-fatal shooting. The violent acts were intended to further the gang’s activities, including intimidating witnesses to prevent them from cooperating with law enforcement, protecting the gang’s drug territory, and for the purpose of maintaining and increasing their position within the organization.

 

Ten defendants have been detained, one defendant is under supervision with pretrial services and the whereabouts of Roger Taylor are unknown.

 

Anyone who may have information on the whereabouts of Roger Taylor is asked to contact the FBI- Baltimore Field office at (410) 265-8080.

 

FBI Baltimore Safe Streets Violent Gang Task Force is responsible for identifying and targeting the most violent gangs in the Baltimore metropolitan area. The squad utilizes drug and violent crime investigations to address gang violence and the associated homicides in Baltimore, MD. The vision of the program is to use the Enterprise Theory of Investigation (ETI), through criminal and civil provisions of RICO Act and in accordance with the FBI and Department of justice national strategies, to disrupt and dismantle significant violent criminal threats and criminal enterprises affecting the safety and well-being of our citizens and our communities. The FBI Baltimore Violent Crimes Gangs Task Force includes FBI special agents and task force officers from the Baltimore, Baltimore County and Anne Arundel County Police Departments.

 

An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.

 

The case was investigated by the FBI, Baltimore City Police Department, and the ATF. The prosecution was handled by Assistant U.S. Attorneys Matt Sullivan, Christopher J. Romano and Daniel Gardener, and Trial Attorney John C. Hanley of the Criminal Division’s Organized Crime and Gang Section.

Nichicon Corporation will plead guilty for its role in a conspiracy to fix prices for electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.

According to the one-count felony charge filed today in the U.S. District Court for the Northern District of California, Nichicon conspired with others to suppress and eliminate competition for electrolytic capacitors from as early as November 2001 until December 2011. In addition to pleading guilty, Nichicon has agreed to pay a $42 million criminal fine and cooperate with the Antitrust Division’s ongoing investigation. The plea agreement is subject to court approval.

“Including today’s charge, the Antitrust Division has now charged seven companies and ten individuals for participating in a long-running conspiracy to fix the price of a critical component in electronic devices used by millions of American consumers,” said Director of Criminal Enforcement Marvin Price of the Justice Department’s Antitrust Division. “But our investigation is not over. We are continuing to pursue the companies and executives who conspired to undermine competition in this vital industry.”

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

Today’s charge results from ongoing federal antitrust investigations being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitor industry. Anyone with information related to the focus of this investigation should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit https://www.justice.gov/atr/report-violations, or call the FBI tip line at 415-553-7400.

Mallinckrodt LLC, a pharmaceutical manufacturer and one of the largest manufacturers of generic oxycodone, agreed to pay $35 million to settle allegations that it violated certain provisions of the Controlled Substances Act (CSA) that are subject to civil penalties, Attorney General Jeff Sessions of the Justice Department and Acting Administrator Chuck Rosenberg of the Drug Enforcement Administration (DEA) announced today.

 

This is the first settlement of its magnitude with a manufacturer of pharmaceuticals resolving nationwide claims that the company did not meet its obligations to detect and notify DEA of suspicious orders of controlled substances such as oxycodone, the abuse of which is part of the current opioid epidemic. These suspicious order monitoring requirements exist to prevent excessive sales of controlled substances, like oxycodone in Florida and elsewhere. The settlement also addressed violations in the company’s manufacturing batch records at its plant in Hobart, New York. Both sets of alleged violations impact accountability for controlled substances, and the compliance terms going forward are designed to help protect against diversion of these substances at critical links in the controlled substance supply chain.

 

“In the midst of one of the worst drug abuse crises in American history, the Department of Justice has the responsibility to ensure that our drug laws are being enforced and to protect the American people,” said Attorney General Sessions. “Part of that mission is holding drug manufacturers accountable for their actions. Mallinckrodt’s actions and omissions formed a link in the chain of supply that resulted in millions of oxycodone pills being sold on the street. Thanks to the hard work of our attorneys and law enforcement, Mallinckrodt has agreed to do everything they can to help us identify suspicious orders in the future. And as a result of today's settlement, we are sending a clear message to drug companies: this Department of Justice will hold you accountable for your legal obligations and we will enforce our laws. I believe that will prevent drug abuse, prevent new addictions from starting, and ultimately save lives.”

 

“Manufacturers and distributors have a crucial responsibility to ensure that controlled substances do not get into the wrong hands,” said DEA Acting Administrator Chuck Rosenberg. “When they violate their legal obligations, we will hold them accountable.”

 

The government alleged that Mallinckrodt failed to design and implement an effective system to detect and report “suspicious orders” for controlled substances – orders that are unusual in their frequency, size, or other patterns. From 2008 until 2011, the U.S. alleged, Mallinckrodt supplied distributors, and the distributors then supplied various U.S. pharmacies and pain clinics, an increasingly excessive quantity of oxycodone pills without notifying DEA of these suspicious orders. Through its investigation, the government learned that manufacturers of pharmaceuticals offer discounts, known as “chargebacks,” based on sales to certain downstream customers. Distributors provide information on the downstream customer purchases to obtain the discount. The groundbreaking nature of the settlement involves requiring a manufacturer to utilize chargeback and similar data to monitor and report to DEA suspicious sales of its oxycodone at the next level in the supply chain, typically sales from distributors to independent and small chain pharmacy and pain clinic customers.

 

The government also alleged that Mallinckrodt violated record keeping requirements at its manufacturing facility in upstate New York. Among other things, these violations created discrepancies between the actual number of tablets manufactured in a batch and the number of tablets Mallinckrodt reported on its records. Accurate reconciliation of records at the manufacturing stage is a critical first step in ensuring that controlled substances are accounted for properly through the supply chain.

 

In addition to the significant monetary penalty, this settlement includes a groundbreaking parallel agreement with the DEA, as a result of which the company will analyze data it collects on orders from customers down the supply chain to identify suspicious sales. The resolution advances the DEA’s position that controlled substance manufacturers need to go beyond “know your customer” to use otherwise available company data to “know your customer’s customer” to protect these potentially dangerous pharmaceuticals from getting into the wrong hands. DEA’s Memorandum of Agreement with Mallinckrodt also sets forth specific procedures it will undertake to ensure the accuracy of batch records and protect loss of raw product in the manufacturing process.

 

By entering into these agreements, elements of which Mallinckrodt is already implementing, the company is becoming part of the solution to this public health epidemic.

 

This lengthy investigation was led by DEA’s Detroit Field Division on the suspicious order issues and the New York Field Division on the manufacturing record keeping issues.

 

U.S. Attorneys’ Offices for the Eastern District of Michigan and the Northern District of New York, along with DEA Office of Chief Counsel and Diversion Control Division, led the civil settlement negotiations. The Criminal Division’s Narcotic and Dangerous Drug Section (NDDS) also coordinated and assisted in negotiating the settlement.

INTERPOL Washington—the U.S. National Central Bureau--participated in a panel discussion on border security during the International Summit on Borders held in Washington, D.C., on June 13-14, 2017.

The International Summit on Borders, sponsored by Clarion Events, brought together U.S. and international leaders from government and the private sector to explore the nexus between international trade and travel with homeland security and other transnational threats. Secretary of Homeland Security John F. Kelly opened the event with a keynote presentation entitled, “Global Border Issues: How Cooperation Can and Is Enhancing Security and Facilitation.”

Royce Walters, INTERPOL Washington Assistant Director for Counter-terrorism and Border Security, made brief remarks describing the role of INTERPOL and INTERPOL Washington, as well as the need for cooperation between the border security elements of individual countries to take advantage of the available tools.

INTERPOL offers all INTERPOL member countries, either individually or simultaneously, access to an encrypted, Internet-based virtual private network known as I-24/7. This system facilitates police-to-police interaction in real time on investigative matters ranging from simple criminal history checks to the sharing of vital criminal intelligence and investigative leads. It also provides an international communications link for processing humanitarian assistance requests involving threatened suicides, death notifications, and health and welfare checks.

Through INTERPOL Washington’s integrated information-sharing strategy, all U.S. law enforcement, border protection and consular officials have the ability to access the international criminal databases maintained by INTERPOL. These databases include information on wanted and missing persons, terrorists, stolen and lost travel documents, and stolen vehicles, among other data.

Walters emphasized the importance of increasing and enhancing individual countries’ access to I-24/7. He suggested that border security networks can be strengthened when countries collect data for, contribute data to, and capitalize on the data available through INTERPOL’s networks. Biometric and stolen and lost travel documents (SLTD) data are critical to effective border security efforts to stop transnational criminals and foreign terrorist fighters. “We know of instances in which the ability to scan travel documents at a country’s border could have enabled a timely arrest of an international criminal. This is why it is critical to make these data available to police and border security officials worldwide,” he said.

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

Photograph courtesy of Customs and Border Protection. A Customs and Border Protection officer checks a passenger’s documentation after arrival into the United States.

 

Four members of a scheme that used secret card-reading devices and pinhole cameras on PNC and Bank of America ATMs to steal at least $428,581 pleaded guilty today in Newark federal court.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey; and Acting Special Agent in Charge Brian A. Michael of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations Newark Division made the announcement.

 

Marcel Peckham, 43, of Little Neck, New York; Catalin Mihai Dragomir, 33, of Glendale, New York; Eduard Vasilica Ticu, 32, of Glendale; and Silvester Florentin Papp, 25, of Ridgewood, New York, pleaded guilty before U.S. District Judge Esther Salas to separate informations charging them each with one count of conspiracy to commit bank fraud.

 

According to documents filed in this case and statements made in court:

 

Peckham, Dragomir, Ticu, Papp, and others sought to defraud financial institutions and their customers by illegally obtaining customer account information, including account numbers and personal identification numbers. Peckham admitted providing counterfeit ATM cards to other conspirators, knowing that they were going to use them to withdraw cash from compromised bank accounts at ATMs in New Jersey. Dragomir, Ticu, and Papp each admitted that between March 2015 and July 2016, they made unauthorized cash withdrawals using the counterfeit ATM cards.

 

The conspiracy to commit bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Sentencing for all four defendents is set for Oct. 23, 2017.

 

Joel Abel Garcia, Victor A. Hanganu, and Radu Bogdan Marin also pleaded guilty to their roles in the scheme and await sentencing. To date, seven of the 13 defendants charged in this matter have been convicted.

 

The U.S. Immigration and Customs Enforcement’s Homeland Security Investigation’s Newark, New Jersey, Division; U.S. Secret Service’s Boston Field Office; Longmeadow, Massachusetts, Police Department; Cambridge, Massachusetts, Police Department; and Medford, Massachusetts, Police Department investigated the case with assistance from Bank of America Security and Fraud Section and PNC Bank Security Division. The Middlesex County, Massachusetts, District Attorney’s Office; U.S. Attorney’s Office of the Eastern District of New York and U.S. Attorney’s Office of the District of Massachusetts Springfield Division assisted in the investigation and prosecution.

 

The prosecution is being handled by Assistant U.S. Attorney Kelly Graves of the U.S. Attorney’s Office Criminal Division in Newark and Trial Attorney Marianne Shelvey of the Justice Department’s Criminal Division Organized Crime and Gang Section.

A federal jury in Scranton returned a verdict yesterday of life in prison for Jessie Con-Ui, 40, a federal inmate, for the first-degree murder of U.S. Correctional Officer Eric Williams.  Senior U.S. District Court Judge A. Richard Caputo scheduled the formal imposition of the life sentence for October 12.   

Attorney General Jeff Sessions of the Justice Department; Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division; and U.S. Attorney Bruce D. Brandler for the Middle District of Pennsylvania made the announcement.

On June 7, 2017, the same jury convicted Con-Ui of “willfully, deliberately, maliciously, and with premeditation and malice aforethought” killing Officer Williams while he was engaged in the performance of his duties at the Canaan Federal Correctional Complex, U.S. Penitentiary, in Waymart, Pennsylvania, on Feb. 25, 2013.

The evidence at trial established that Con-Ui, armed with two sharpened weapons (commonly known as “shanks”), positioned himself at the top of a metal stairway as Correctional Officer Williams ascended the stairway leading to the second floor of a housing unit within the prison. Con-Ui kicked Correctional Officer Williams down the stairs and then stabbed him over 200 times with the weapons. Con-Ui also repeatedly kicked and stomped on Correctional Officer Williams, causing massive fatal injuries. 

At the time of the murder, Con-Ui was serving an 11-year federal sentence for conspiracy to possess with intent to distribute more than 5 kilograms of cocaine, imposed by the United States District Court for the District of Arizona in 2005.  Con-Ui was also serving a concurrent life sentence for first-degree murder imposed by the Maricopa County Superior Court, Phoenix, Arizona, in 2008 for the 2002 murder of Carlos Garcia in Phoenix, Arizona.   

“I extend my sincere condolences to Officer Williams’s family, colleagues, and friends.  The murder of a dedicated public servant in the line of duty, under such heinous circumstances, strikes at the core and soul of our nation,” said Acting Assistant Attorney General Blanco.  “We hope and pray that Officer Williams’s family will find some closure with the conclusion of these proceedings, and knowing that his dedicated service will always be remembered by a grateful nation.”

“We are extremely disappointed with the jury’s verdict, but I want to highlight the outstanding work of all the men and women who worked on this case for over four years,” said U.S. Attorney Brandler.  “The Phoenix, Arizona Division of the Federal Bureau of Investigation; the Phoenix Police Department; the Phoenix Department of Corrections; the Phoenix Juvenile Justice Office; the Federal Bureau of Investigation Laboratory in Quantico, Virginia; the Scranton, Pennsylvania Division of the Federal Bureau of Investigation; the Federal Bureau of Prisons; the U.S. Attorney’s Office Victim-Witness Unit and legal support staff; and Assistant United States Attorneys Fran P. Sempa and Robert J. O’Hara and Department of Justice Capital Case Section Trial Attorney Robert J. Feitel, all performed their roles in exemplary fashion and deserve our appreciation for their tireless efforts in the prosecution of this case.”  

“A correctional officer has one of the most dangerous jobs in law enforcement. Eric Williams was performing that job at USP Canaan, when was he blindsided and brutalized by Jessie Con-Ui,” said Michael Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “The heinous violence inflicted upon Correctional Officer Williams cost a dedicated federal officer his life. At the Philadelphia FBI, our hearts go out to the Williams family and all who knew and loved Eric.”

At the time of his death, Officer Williams was 34 years old, and a resident of Wapwallopen, Pennsylvania.   

The charges against Con-Ui resulted from an investigation by the FBI, with assistance from the Federal Bureau of Prisons. The case is being prosecuted by the Criminal Division’s Capital Case Section and the U.S. Attorney’s Office for the Middle District of Pennsylvania.

A document broker was sentenced today in connection with his role in trafficking the identities of Puerto Rican U.S. citizens and corresponding identity documents.

 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney William D. Weinreb of the District of Massachusetts, Acting Director Thomas D. Homan of the U.S. Immigration and Customs Enforcement (ICE) and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement.

 

Sandro Tavera Mora, aka Jose Laureano Ayala, 46, a Dominican citizen residing in Springfield, Massachusetts, was sentenced today to 27 months in prison. On May 4, 2017, Tavera Mora pleaded guilty before U.S. District Court Judge Mark G. Mastroianni of the District of Massachusetts, to false personation of U.S. citizenship, fraud and misuse of visas and conspiracy to possess and transfer identification documents. Tavera Mora was charged in a superseding indictment returned by a federal grand jury in Springfield on July 23, 2015.

 

According to admissions made in connection with the plea, identity document runners located in the Savarona area of Caguas, Puerto Rico, obtained Puerto Rican identities and corresponding identity documents. Other conspirators located in various cities throughout the U.S., identified as identity document suppliers and brokers, solicited customers and sold social security cards and corresponding Puerto Rico birth certificates for prices ranging from $400 to $1,200 per set.

 

As part of his plea, Tavera Mora admitted that he operated as a document broker in Springfield, Massachusetts, buying, possessing, transferring and selling personal identifying information contained in legitimate government documents belonging to residents of Puerto Rico. Tavera Mora further admitted that the customers who purchased these documents were undocumented aliens who would use this information to assume the identities of U.S. citizens in order to apply for other identity documents. Tavera Mora also admitted that he knew that these customers would use these documents to violate federal law, including social security fraud and the impersonation of a U.S. citizen.

 

Additionally, Tavera Mora admitted that upon his arrest he identified himself as “Lareano Ayala,” stated he was born in Puerto Rico and possessed a fraudulent Puerto Rico Driver’s License and a U.S. social security card in the same name. Tavera Mora further admitted that he possessed a fraudulent Dominican Republic passport that contained a non-immigration U.S. Visa with fraudulent admittance record and a Customs and Border Patrol admittance stamp.

 

The Chicago offices of ICE-Homeland Security Investigations (HSI), USPIS, U.S. Department of State Bureau of Diplomatic Security, and IRS-Criminal Investigations led the investigation, dubbed Operation Island Express II, with assistance from HSI Springfield, Massachusetts, and USPIS in Hartford, Connecticut. The ICE-HSI Attaché office in the Dominican Republic, International Organized Crime Intelligence and Operations Center (IOC-2) and Illinois Secretary of State Police provided invaluable assistance, as well as various ICE, USPIS, DSS and IRS-CI offices around the country.

 

Trial Attorney Marianne Shelvey of the Justice Department Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorney Kevin O’Regan of the District of Massachusetts are prosecuting the case.

 

Potential victims and the public may obtain information about the case at: www.justice.gov/criminal/vns/caseup/beltrerj.html. Anyone who believes their identity may have been compromised in relation to this investigation may contact the ICE toll-free hotline at 1-866-DHS-2ICE (1-866-347-2423) and its online tip form at www.ice.gov/tipline. Anyone who may have information about particular crimes in this case should also report it to the ICE tip line or website.

The Justice Department today announced a settlement with the owners and former managers of more than 70 residential rental properties in the Morgantown, West Virginia area to resolve allegations that Gary Walden, while serving as the manager of these properties, sexually harassed female tenants and prospective tenants, in violation of the Fair Housing Act. Under the settlement, which was approved today by the U.S. District Court for the Northern District of West Virginia, the defendants have agreed to pay a total of $600,000 in monetary damages and civil penalties, and Walden intends to transfer his ownership of these properties and to relinquish his role in managing them.

 

“It is unacceptable that a woman should have to endure sexual harassment by her landlord in her own home,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “This settlement sends a strong message that the Civil Rights Division will aggressively pursue those who engage in this egregious conduct.”

 

“This type of conduct can never be tolerated in the Northern District of West Virginia or elsewhere,” said Acting United States Attorney Betsy Steinfeld Jividen of the Northern District of West Virginia. “And while the monetary settlement will not erase the unthinkable violations outlined in this case, it will put all on notice that those who choose to violate anyone’s civil rights will face consequences.”

 

The settlement requires the defendants to pay $500,000 to persons harmed by the discriminatory conduct and $100,000 to the United States in civil penalties. Walden will be enjoined from engaging in any property management, rental management, or maintenance responsibilities at the rental properties, and from entering the premises or having any contact with current or former tenants of the rental properties, including any individuals determined to be aggrieved persons.

 

Individuals who believe they were subjected to sexual harassment by Walden should contact the Justice Department (“the department”) at 1-800-896-7743, mailbox 97, or by e-mail at fairhousing@usdoj.gov.

 

The lawsuit arose when four female tenants filed complaints about Walden with the Department of Housing and Urban Development (“HUD”), which referred the complaints to the department. After conducting an investigation, the department filed this lawsuit in March 2016, alleging that Walden sexually harassed multiple female residents and prospective residents from at least July 2006 through July 2015. According to the department’s complaint, Walden engaged in unwanted and unwelcome sex acts with female tenants, including touching and groping their breasts and genitals; conditioned tangible housing benefits to female tenants in exchange for performance of sex acts; made unwanted and unwelcome sexual comments and verbal sexual advances; entered the homes of female tenants without permission or notice to sexually harass them; and took or threatened to take adverse action against female tenants when they refused or objected to his sexual advances.

 

The department’s lawsuit names Walden, the estate of his late wife, Tina Walden, and business entities associated with the Waldens’ property ownership and management business, including Walden Homes, LLC, d/b/a Walden Rentals, and 973 Chestnut Ridge Road, Inc. In April 2015, Gary Walden pled guilty to sexual abuse and other charges in the Circuit Court of Monongalia County, West Virginia, and was incarcerated for those offenses from July 2015 to March 2017 in a state prison. In 2006, the West Virginia Attorney General’s Office filed a housing discrimination lawsuit in state court against Walden alleging sexual harassment, which was settled in 2008.

 

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Individuals who believe that they may have been victims of housing discrimination elsewhere should call the department at 1-800-896-7743, or send an e-mail to fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777.

          SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant VINCENT JOHN QUITUGUA, age 47, from Piti, was sentenced on July 6, 2017, in District Court to a 57-month concurrent term of imprisonment for possession of a controlled substance (methamphetamine) with intent to distribute, and maintaining a drug-involved premises. The Court also ordered QUITUGUA to pay a mandatory $200 assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits.

          On July 6, 2106, QUITUGUA entered a guilty plea to both crimes. The investigation revealed that QUITUGUA, a public school teacher, was selling methamphetamine and conducting an extensive marijuana grow operation from his Piti, Guam residences. QUITUGUA was discovered with over ten grams of methamphetamine with a purity level of 99%, approximately 121 living marijuana plants, 429 grams of processed marijuana, four firearms, $72,922.50 in U.S. currency as well as four scales, glass pipes and paraphernalia.

          The District Court noted that QUITUGUA is a public school teacher with over 20 years of experience in Guam’s middle school. Court expressed concern that QUITUGUA had four firearms in close proximity to the drugs, and noted that the sales of methamphetamine and the marijuana grow occurred in close proximity to a middle school. Court ordered that the currency, firearms and ammunition be forfeited to the U.S. government.

          The Drug Enforcement Administration and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. The case was prosecuted by Rosetta San Nicolas, an Assistant United States Attorney for the District of Guam.

An Arizona man and an Illinois woman each pleaded guilty to conspiracy charges today for their respective roles in liquidating and laundering victim payments generated through a massive telephone impersonation fraud and money laundering scheme perpetrated by India-based call centers.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Abe Martinez of the Southern District of Texas, Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA) and Inspector General John Roth of the U.S. Department of Homeland Security Office of Inspector General (DHS-OIG) made the announcement.

Bhavesh Patel, 47, most recently residing in Gilbert, Arizona, pleaded guilty to money laundering conspiracy, in violation of Title 18, U.S. Code, Section 1956(h). Asmitaben Patel, 34, most recently residing in Willowbrook, Illinois, pleaded guilty to a conspiracy to commit fraud and money laundering offenses, in violation of Title 18, U.S. Code, Section 371.  The pleas were entered before U.S. District Court Judge David Hittner of the Southern District of Texas. Sentencing dates are pending.

According to admissions made in connection with their respective pleas, Bhavesh Patel, Asmitaben Patel, and their co-conspirators perpetrated a complex scheme in which individuals from call centers located in Ahmedabad, India, impersonated officials from the IRS and U.S. Citizenship and Immigration Services (USCIS), and engaged in other telephone call scams, in a ruse designed to defraud victims located throughout the U.S. Using information obtained from data brokers and other sources, call center operators targeted U.S. victims who were threatened with arrest, imprisonment, fines or deportation if they did not pay alleged monies owed to the government. Victims who agreed to pay the scammers were instructed how to provide payment, including by purchasing stored value cards or wiring money. Upon payment, the call centers would immediately turn to a network of “runners” based in the U.S. to liquidate and launder the fraudulently-obtained funds.

According to Bhavesh Patel’s guilty plea, beginning in or around January 2014, Bhavesh Patel managed the activities of a crew of runners, directing them to liquidate victim scam funds in areas in and around south and central Arizona per the instructions of conspirators from India-based call centers. Patel communicated via telephone about the liquidation of scam funds with both domestic and India-based co-defendants, and he and his crew used reloadable cards containing funds derived from victims by scam callers to purchase money orders and deposit them into various bank accounts as directed, in return for percentage-based commissions from his India-based co-defendants. Patel also admitted to receiving and using fake identification documents, including phony driver’s licenses, to retrieve victim scam payments in the form of wire transfers, and providing those fake documents to persons he managed for the same purpose.

Based on admissions in Asmitaben Patel’s guilty plea, beginning in or around July 2013, Asmitaben Patel served as a runner liquidating victim scam funds as part of a group of conspirators operating in and around the Chicago area. At the direction of a co-defendant, Patel used stored value cards that had been loaded with victim funds to buy money orders and deposit them into various bank accounts, including the account of a lead generating business in order to pay the company for leads it provided to co-conspirators that were ultimately used to facilitate the scam.

To date, Bhavesh Patel, Asmitaben Patel, 54 other individuals and five India-based call centers have been charged for their roles in the fraud and money laundering scheme in an indictment returned by a federal grand jury in the Southern District of Texas on Oct. 19, 2016. Including today’s pleas, a total of eleven defendants have pleaded guilty thus far in this case. Co-defendants Bharatkumar Patel, Ashvinbhai Chaudhari, Harsh Patel, Nilam Parikh, Hardik Patel, Rajubhai Patel, Viraj Patel, Dilipkumar A. Patel, and Fahad Ali previously pleaded guilty on various dates between April and June 2017.

The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

HSI, DHS-OIG and TIGTA led the investigation of this case. Also providing significant support were: the Criminal Division’s Office of International Affairs; Ft. Bend County, Texas, Sheriff’s Office; police departments in Hoffman Estates and Naperville, Illinois, and Leonia, New Jersey; San Diego County District Attorney’s Office Family Protection and Elder Abuse Unit; U.S. Secret Service; U.S. Small Business Administration, Office of Inspector General; IOC-2; INTERPOL Washington; USCIS; U.S. State Department’s Diplomatic Security Service; and U.S. Attorneys’ Offices in the Middle District of Alabama, Northern District of Alabama, District of Arizona, Central District of California, Northern District of California, District of Colorado, Northern District of Florida, Middle District of Florida, Northern District of Illinois, Northern District of Indiana, District of Nevada and District of New Jersey. The Federal Communications Commission’s Enforcement Bureau also provided assistance in TIGTA’s investigation.

Senior Trial Attorney Michael Sheckels and Trial Attorney Mona Sahaf of the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney Robert Stapleton of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorneys S. Mark McIntyre and Craig M. Feazel of the Southern District of Texas are prosecuting the case. 

A  Department of Justice website has been established to provide information about the case to already identified and potential victims and the public. Anyone who believes they may be a victim of fraud or identity theft in relation to this investigation or other telefraud scam phone calls may contact the Federal Trade Commission (FTC) via this website.

Anyone who wants additional information about telefraud scams generally, or preventing identity theft or fraudulent use of their identity information, may obtain helpful information on the IRS tax scams website, the FTC phone scam website and the FTC identity theft website.

TUCSON, Ariz. – Yesterday, Joe Santiago Valles, 34, of Tucson, Ariz., was sentenced by U.S. District Judge James A. Soto to 78 months in prison. Valles had previously pleaded guilty to conspiracy to defraud the United States, aiding and abetting false statements in firearms transactions, tampering, tampering with a witness, and identity theft.

 

     Beginning in October 2015 through April 20, 2016, Joe Valles was a business partner with a Federal Firearms Licensee (FFL) in Tucson, Ariz. The FFL and Valles used the identities of individuals, who were not purchasing firearms, to submit ATF Forms 4473 claiming they were the purchasers. ATF Form 4473 is required to legally purchase or acquire firearms from FFLs. The FFL and Valles used the fraudulent forms to conceal the identities of the true buyers. The conspiracy involved a total of 35 firearm transactions, including 24 semi-automatic pistols and rifles. Valles was working as a Tucson Police officer when he stole the identities of two individuals he had contact with through his official duties. Twenty-nine firearm transactions listed these two individuals as buyers when, in fact, they were not the purchasers. To date, one of the firearms was intercepted at the Nogales Port of Entry and a second firearm, a .50 caliber semi-automatic rifle, was seized by Mexican authorities.

 

     The investigation in this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives with assistance by Customs and Border Protection. The prosecution was handled by Serra M. Tsethlikai and Karen E. Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson.

 

CASE NUMBER: CR-16-01059-TUC-JAS

RELEASE NUMBER: 2017-058_Valles

 

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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/

Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.

The Justice Department announced today that it has reached a settlement agreement with J & R Associates, the owner and operator of the Royal Park Apartments, a 224-unit multi-family housing complex in North Attleboro, Massachusetts. The settlement resolves allegations that J & R Associates discriminated against tenants of South Asian descent in violation of the Fair Housing Act, which prohibits housing discrimination on the basis of race and national origin.

 

Based on its investigation, the Department determined that J & R Associates discriminated against persons of South Asian descent in the renting of units at Royal Park Apartments by steering them to certain buildings in the eight-building complex over a period of at least five years, from at least 2009 through 2014. J & R Associates cooperated fully with the Department’s investigation, which revealed that the discriminatory conduct had ceased by about 2015. Under the terms of the agreement, J & R Associates will establish a settlement fund in the amount of $70,000 to compensate victims of the discriminatory practices. J & R Associates also has agreed to train any new employees and to abide by the Fair Housing Act going forward.

 

In a related matter resolved in 2015, J & R Associates agreed to make changes to its rental practices to resolve allegations that it had been steering families with children to certain buildings and units in violation of the Fair Housing Act. In compliance with the court-approved settlement in that case, United States v. J & R Associates, Civil Action No. 15-11748 (D. Mass.), which remains in effect today, J & R Associates has reformed its practices and trained its employees in order to provide housing opportunities to prospective tenants equally and without regard to their race or national origin, or to whether they have children.

 

“Housing discrimination on the basis of race and national origin is not acceptable and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler, of the Justice Department’s Civil Rights Division. “We appreciate J & R Associates’ cooperation with our investigation and agreement to remedy past discriminatory practices.”

 

“Ensuring fair housing decreases inequality and increases educational and economic opportunities,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “This office will continue to enforce civil rights and fight discrimination in Massachusetts.”

 

The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at fairhousing@usdoj.gov, or contact HUD at 1-800-669-9777.

The Justice Department announced today that COPOCO Community Credit Union, based in Bay City, Michigan, has agreed to a settlement to resolve allegations that it illegally repossessed four servicemembers’ vehicles. The department’s lawsuit, filed July 26, 2016, alleged that COPOCO violated the Servicemembers Civil Relief Act (SCRA) by repossessing cars owned by protected servicemembers without first obtaining the required court orders. Under the agreement, COPOCO must change its policies and compensate four servicemembers whose cars COPOCO unlawfully repossessed.

 

The department launched an investigation after it received a complaint in October 2015 from Alyssa Carriveau, the wife of U.S. Army Private First Class Christian Carriveau, alleging that COPOCO had repossessed their car, along with their two-year-old daughter’s car seat, out of their driveway in Lacey, Washington, near Joint Base Lewis-McChord. Alyssa Carriveau initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle. The department’s subsequent investigation corroborated the Carriveaus’ complaint and revealed that COPOCO had no policies related to compliance with the SCRA. After filing the lawsuit, the United States learned of three additional repossessions COPOCO conducted that violated the SCRA.

 

“This sends a message to financial institutions, large and small, that they must live up to their obligations to our servicemembers,” said Acting Assistant Attorney General Thomas Wheeler. “They cannot use ignorance of the law as an excuse and must instead actively ensure that they comply with the law. The Justice Department is committed to vigorously protecting the rights of the men and women who bravely serve our country.”

 

“The U.S. Attorney’s Office in the Eastern District of Michigan is committed to safeguarding the financial and legal rights of our servicemembers and their families,” said Acting United States Attorney Daniel L. Lemisch. “Of the many sacrifices made by our military members while they are in service to our country, losing their cars to repossession should never be one of them.”

 

The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented servicemembers from obtaining a court’s review of whether their repossessions should be delayed or adjusted to account for their military service.

 

The agreement requires COPOCO to provide $10,000 in compensation to each of the affected servicemembers, plus any lost equity in the vehicle with interest. The Carriveaus, who had their car returned to them the day after the repossession at the department’s request, will receive $7,500. COPOCO also must repair the credit of all affected servicemembers, pay a $5,000 civil penalty to the United States and determine, in the future, whether any vehicle it is planning to repossess is owned by an active duty servicemember. If so, COPOCO will not repossess the vehicle without first obtaining a court order or valid waiver of SCRA rights. The agreement also contains provisions ensuring that all eligible servicemembers will receive the benefit of the SCRA’s six percent interest rate cap on their auto loans.

 

The department’s enforcement of the SCRA and other fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the division has provided over $450 million in monetary relief to over 117,000 servicemembers through its enforcement of the SCRA. The SCRA 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 rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.

Today, the Department of Justice provided an update on the ten jurisdictions identified in a May 2016 report by the Department’s Inspector General as having policies that potentially violate 8 U.S.C. 1373. Each of the ten jurisdictions were required to submit their legal analysis of how they are in compliance with 8 U.S.C. 1373 by June 30, 2017.

 

The Justice Department received alleged compliance information from each of the ten jurisdictions by the deadline, is in the process of reviewing them, and looks forward to making a determination as to whether those jurisdictions are in compliance with federal law. Some of these jurisdictions have boldly asserted they will not comply with requests from federal immigration authorities, and this would potentially violate 8 U.S.C. 1373.

 

“It is not enough to assert compliance, the jurisdictions must actually be in compliance,” Attorney General Sessions said. "Sanctuary cities put the lives and well-being of their residents at risk by shielding criminal illegal aliens from federal immigration authorities. These policies give sanctuary to criminals, not to law-abiding Americans. The Trump Administration is determined to keep every American neighborhood safe and that is why we have asked these cities to comply with federal law, specifically 8 U.S.C. 1373. The Department of Justice has now received letters from ten jurisdictions across the United States claiming that they are in compliance with what federal law requires of them, and we will examine these claims carefully. Residents have a right to expect basic compliance with federal law from their local and state governments."

Attorney General Jeff Sessions today issued the following statement on the murder of NYPD Officer Miosotis Familia:

 

“Officer Miosotis Familia proudly wore the badge for 12 years, serving her community and keeping the people of New York City safe,” Attorney General Sessions said. “She was doing her duty, on patrol in the Bronx, when she was unjustly targeted and murdered in a cowardly, unprovoked attack. She will be remembered for her years of service and for the example of selflessness that she set protecting innocent people on our streets. This murder in cold blood is a tragedy, and sadly it is the latest in a troubling series of attacks on police officers over the past two years. These attacks must stop and we must honor the service of every law enforcement officer and the memory of those we have lost in the line of duty.”
 

Mississippi correctional officer Robert Sturdivant, 48, was sentenced to 18 months in prison and one (1) year of supervised release for leading the cover-up after an inmate was severely beaten at the state’s Parchman Prison, the Justice Department announced today.

Three other officers have already been sentenced for the March 9, 2014, incident, in which an officer punched and kicked the victim while he lay nonresistant on the ground. The victim was temporarily blinded by the attack and suffered severe blood loss, a broken orbital bone, and permanent partial vision loss.

After the attack, Sturdivant, a supervisor, led the three other officers to create a cover story that falsely minimized and falsely justified the force used by officers. He pleaded guilty in February.

“Supervisory officers must be held accountable for permitting and encouraging the officers under their watch from committing violent acts,” said Acting Assistant Attorney General Tom Wheeler. “The Department of Justice is committed to enforcing the rights guaranteed by the United States Constitution.”

Three other officers were sentenced on June 2 for their roles in the beating and the cover-up. Lawardrick Marsher, 29, the main perpetrator of the assault, was sentenced to 50 weekends in jail and a period of probation. Deonte Pate, 24, was sentenced to 12 weekends in jail and to a period of probation for his role in concealing the incident. Romander Nelson, 44, was sentenced to 14 weekends in jail and a period of probation for failing to intervene to protect the victim.

The Mississippi State Penitentiary in Parchman is the largest prison in the state, housing more than 3,000 inmates. It has operated continuously as both a prison and a working farm since 1901.

“We have been consistent in our message,” said Christopher Freeze, special agent in charge of the FBI in Mississippi. “Corrections officers are not above the law. In fact, law enforcement officers should be held to a higher standard. This corrections supervisor heinously abused his power, infringing upon the Constitutional rights of the inmate, when he assisted with covering up the crime. It was our duty to bring him to justice. The FBI is committed and will continue to aggressively investigate any civil rights allegations."

This case was investigated by the FBI’s Jackson Division, with the cooperation of the Mississippi Department of Corrections. It was prosecuted by Assistant U.S. Attorney Robert Coleman of the Northern District of Mississippi and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.

FALLS CHURCH, VA - The Executive Office for Immigration Review (EOIR) today announced the appointment of Katherine H. Reilly as the agency’s Acting Deputy Director. Ms. Reilly has served as Chief Counsel of the Employee and Labor Relations Unit within EOIR’s Office of General Counsel since December 2013.

"Katherine’s varied and impressive legal experience makes her well-suited for assuming the position of Acting Deputy Director at EOIR, especially during this important time when we are mobilizing all of our resources to combat a growing caseload," said Acting Director James McHenry. "The skills she has acquired as a manager and through her work in employee and labor relations are critical for the agency, both to meet its current challenges and to establish effective policies and procedures for the future."

In her new capacity as Acting Deputy Director, Ms. Reilly will supervise EOIR’s components and will be responsible for assisting in leading the agency in formulating and administering policies and strategies which enhance EOIR’s effectiveness in fulfilling its core mission of adjudicating cases fairly, expeditiously, and uniformly

Katherine H. Reilly joined EOIR in December 2013 as Chief Counsel of the Employee and Labor Relations Unit within the Office of General Counsel. Prior to her tenure with EOIR, she was the Director of Legal Services for the U.S. Postal Service Office of Inspector General, managing that agency’s employee relations team, civil litigation section, and contracting division. Ms. Reilly also served as a Special Assistant U.S. Attorney for criminal prosecutions in the Northern District of Texas. She began her career with the Federal Trade Commission as an antitrust attorney and also worked for a law firm, advising corporate clients on antitrust and commercial litigation. Ms. Reilly received her Bachelor of Arts and Juris Doctor degrees from the University of Texas at Austin and earned a Master of Laws degree from the University of Melbourne, Australia. Ms. Reilly is a member of the District of Columbia and Virginia bars.

A federal jury in Charleston, South Carolina, yesterday convicted a member of the Wildboys gang of attempted murder in aid of racketeering and discharge of a firearm during and in relation to a crime of violence, announced Acting Assistant Attorney Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge C.J. Hyman of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Charlotte, North Carolina Field Division; Solicitor Duffie Stone of the 14th Judicial Circuit; Solicitor David Pascoe of the First Circuit; Sheriff R.A. Strickland of the Colleton County, South Carolina Sheriff’s Office; Chief Wade Marvin of the Walterboro, South Carolina Police Department; Sheriff Al Cannon, Jr. of the Charleston County, South Carolina Sheriff’s Office; Sheriff L. C. Knight of the Dorchester County, South Carolina Sheriff’s Office; Chief Jon Rogers of the Summerville, South Carolina Police Department; Director Jerry Adger of the South Carolina Department of Probation, Parole and Pardon Services; and Chief Mark Keel of the South Carolina Law Enforcement Division.

Devin Brown, aka “Deno Badazz,” 23, of Walterboro, S.C., was convicted of violent crime in aid of racketeering activity and discharge of a firearm during and in relation to a crime of violence as a result of his involvement in the April 7, 2015, attempted murder of individuals believed to be rival gang members. Brown faces a minimum mandatory term of 10 years in prison on the firearms charge.

According to evidence presented at trial, the defendant was a member of the Wildboys, a violent street gang from the Green Pond area of Walterboro, S.C. Evidence at trial showed that beginning as early as 2012, Wildboys gang members engaged in racketeering activity, to include an April 9, 2012, robbery in Walterboro, and a March 18, 2015, attempted murder in Summerville, S.C.   

Evidence presented at trial also showed that Brown, along with two other members of the Wildboys, committed racketeering acts, including the April 7, 2015 shooting at the home of a rival gang member in the Dooley Hill area of Walterboro. According to the trial evidence, on that date, Brown and two other members of the Wildboys drove past the home of the rival gang members and used assault-type firearms to shoot into the home. An innocent bystander inside the home was shot and injured, the evidence showed. 

Four individuals previously pleaded guilty to violent crime in aid of racketeering related to their involvement in the Wildboys gang. On June 2, 2017, U.S. District Judge Richard M. Gergel of the District of South Carolina sentenced Wildboys members and associates Kelvin Mitchell, Damien Robinson, and Brian Manigo for their roles in gang-related racketeering activities. Sentencing is pending for Wildboys member Joshua Manigault. 

The case was investigated by the ATF, Charleston, South Carolina, in partnership with the Walterboro Police Department; Colleton County Sheriff’s Office; Charleston County Sheriff’s Office; Dorchester County Sheriff’s Office; Summerville Police Department; Fourteenth Judicial Circuit Solicitor’s Office; First Judicial Circuit Solicitor’s Office; South Carolina Department of Probation, Parole and Pardon Services; and the South Carolina Law Enforcement Division.

The case was prosecuted by Trial Attorney Leshia Lee-Dixon of the Criminal Division’s Organized Crime and Gang Section and Tameaka A. Legette, Special Assistant U.S. Attorney from the Fourteenth Judicial Circuit Solicitor’s Office, Bluffton, South Carolina.

The Justice Department announced today that it has reached an agreement with Sellari’s Enterprises, Inc. (Sellari’s), a company that provides staffing services in Orlando, Florida. The agreement resolves the department’s investigation into whether Sellari’s violated the Immigration and Nationality Act (INA) by discriminating against work-authorized immigrants when verifying their work authorization.

 

Based on its investigation, the department concluded that Sellari’s requested that non-U.S. citizens present specific documents to prove their work authorization, such as a Permanent Resident Cards or Employment Authorization Documents, while not requesting specific documents from U.S. citizens. All work-authorized individuals, whether citizens or non-citizens, have the right to choose which valid documentation to present to prove they are authorized to work. The anti-discrimination provision of the INA prohibits employers from subjecting employees to different or unnecessary documentary demands based on employees’ citizenship, immigration status or national origin.

 

Under the settlement, Sellari’s will pay a civil penalty of $120,000 to the United States, post notices informing workers about their rights under the INA’s antidiscrimination provision, train its staff, and be subject to departmental monitoring and reporting requirements for three years.

 

“The law protects individuals who are work-authorized from discriminatory obstacles during the employment eligibility verification process,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “Employers must ensure that their employment eligibility verification processes are not applied in an unlawful manner.”

 

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

 

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

 

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

Today Attorney General Jeff Sessions issued the following statement on the unacceptable violence plaguing the City of Chicago and outlined steps that the Department of Justice is taking to increase public safety:

 

"No child in America should have to walk the streets of their neighborhood in fear of violent criminals, and yet in Chicago, thousands of children do every day. Last year, more than 4,300 Chicagoans were shot, and more than 700 were killed—the deadliest year in two decades.”

 

“The Trump Administration will not let the bloodshed go on; we cannot accept these levels of violence. That's why, under President Trump's strong leadership, we have created the Chicago Gun Strike Force and are sending 20 more permanent ATF agents to Chicago, reallocating federal prosecutors and prioritizing prosecutions to reduce gun violence, and working with our law enforcement partners to stop the lawlessness.”

 

“The Trump administration will also continue to pursue every avenue available to ensure that states and cities comply with federal immigration law and protect our citizens—rather than protecting the criminal illegal aliens who prey upon them. So-called "sanctuary" policies tie the hands of law enforcement by rejecting common sense and undermining federal laws that would remove criminal, illegal aliens from the streets and remove them from this country. These policies are opposed by some 80 percent of the American people because they endanger us all by letting dangerous criminals stay in this country that are due to be removed.”

 

“I want to commend the President for his commitment to enforcing our laws and keeping our communities safe.”

 

“The most critical factor to our success is the strength, training, and morale of the Chicago Police Department and all of our law enforcement partners. This administration is anxious to work toward this goal.”

 

“And I am confident in Celinez Nunez, the new Special Agent in Charge of the Chicago office of ATF, who has experienced the tragic consequences of gang violence firsthand. With these new resources, she will help us make Chicago safe again."

 

BACKGROUND INFORMATION ON CRIME GUN STRIKE FORCE

 

The Crime Gun Strike Force, a permanent team of special agents, task force officers, intelligence research specialists, and ATF Industry Operations investigators who are focused on the most violent offenders, in the areas of the city with the highest concentration of firearm violence.

 

The Strike Force became operational June 1, 2017, and consists of 20 additional permanent ATF special agents, 6 intelligence research specialists, 12 task force officers from the Chicago Police Department (CPD), 2 task force officers from the Illinois State Police, and 4 NIBIN specialists (National Integrated Ballistics Information Network).

          SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant JAMES DEAN TRANGSRUD, age 51, from Santa Rita, was sentenced today in District Court to a 12-month term of imprisonment, to be followed by three years of supervised release for failure to register as a sex offender. The Court also ordered TRANGSRUD to pay a mandatory $100 assessment fee and to perform 25 hours of community service. In addition, defendant was ordered to register with the sex offender registry in every jurisdiction that he lives, resides, is employed, or attends school.

          On March 31, 2017, TRANGSRUD entered a guilty plea to an Indictment charging him with Failure to Register as a Sex Offender, in violation of 18 U.S.C. §§ 2250(a)(1) and (2). The investigation revealed that in 2000, TRANGSRUD, was convicted of Indecent Exposure, Lascivious Acts with a Child, Sexual Abuse and Indecent Contact with a Child in the Iowa District in and for Black Hawk County and was required to register with the sex offender registry. August 12, 2016, TRANGSRUD absconded from Iowa and traveled to Guam where he failed to register and update his registration with the Guam Sex Offender Registry. United States Marshals located TRANGSRUD on February 15, 2017 in the village of Santa Rita, Guam.

          The District Court noted the importance of the Guam Sex Offender Registry in the protection of the community. Court imposed sentence of 12-months imprisonment, a special assessment of $100, supervised release of three years, and ordered the defendant to undergo a sex offender assessment approved by the U.S. Probation Office. Additionally, the court restricted the defendant from employment with minors below the age of eighteen and ordered he have no contact with children.

          The United States Marshals Service, Inspector Marciano Patricio and USMS Supervising Deputy John Untalan conducted the investigation. The case was prosecuted by Rosetta San Nicolas, an Assistant United States Attorney for the District of Guam.

A federal grand jury in Phoenix, Arizona, returned a three-count indictment against Eric Scott Kindley, 49, a prison transport officer, for crimes related to his sexual assaults of a female in his custody, and using his firearm in furtherance of these assaults.

Counts One and Two of the indictment charge Kindley with committing civil rights offenses that include both the use of a dangerous weapon and aggravated sexual abuse. Count Three charges Kindley with knowingly possessing a firearm in furtherance of these crimes of violence.

This indictment stems from Kindley’s arrest in Stockton, California on June 1, 2017, in connection with a criminal complaint filed in the District of Arizona. According to arrest paperwork, Kindley operates Group 6, LLC doing business as Special Operations Group 6, a company that local jails throughout the country hire to transport individuals who have been arrested on out-of-state warrants. The probable cause affidavit associated with the criminal complaint alleged that from January through May of this year, Kindley engaged in sexual misconduct in his Dodge Caravan with three different female prisoners during three different transports. The transports were from California to Arizona, Alabama to Arizona, and Mississippi to New Mexico. In each instance, the victim was handcuffed and restrained, and taken to secluded locations where Kindley sexually assaulted her. All the while, Kindley threatened each victim with his firearm and warned her that he will get away with his conduct because no one will believe her.

Following Kindley’s arrest in the Eastern District of California, the court ordered that Kindley be detained and transported to Arizona for further proceedings. Kindley is currently in custody.

This investigation remains ongoing. Anyone with additional information is encouraged to call the Phoenix Division of the FBI at (623) 466-1999, or can email the Criminal Section of the Civil Rights Division at the U.S. Department of Justice at Prisoner.Transfer@usdoj.gov.

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

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

This case is being investigated by the Phoenix Division of the Federal Bureau Investigation and is being prosecuted by Special Litigation Counsel Fara Gold and Trial Attorney Maura White of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice and Assistant United States Attorney Abbie Broughton Marsh of the District of Arizona.

The U.S. and the States of Minnesota and Wisconsin today announced an $8.2 million settlement with XIK, LLC, Honeywell International, Inc., and Domtar, Inc. to resolve a claim for natural resource damages at the St. Louis River / Interlake / Duluth Tar (SLRIDT) Superfund Site brought under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), also known as the Superfund Law. The SLRIDT Site consists of 255 acres of land and river embayments located primarily in Duluth, Minnesota, and extends into the St. Louis River, including Stryker Bay.

According to the complaint, filed simultaneously with the settlement today in the District of Minnesota, the three companies are liable for industrial discharges of polycyclic aromatic hydrocarbons (PAHs) at the SLRIDT Site during the first half of the 20th Century. PAHs were identified in river sediments throughout the Site in sufficient concentrations to cause injury to many types of natural resources, including vegetation, fish and birds. In addition, PAH-contaminated natural resources resulted in the loss of recreational fishing and tribal use services.

“The restoration work enabled by this settlement will make significant contributions to the environment in the area of the St. Louis River and nearby Lake Superior,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division. “We are particularly pleased to have been able to work alongside the State of Wisconsin, the State of Minnesota, affected Tribes, the U.S. Department of Interior, and the National Oceanic and Atmospheric Administration on achieving this positive outcome.”

Under CERCLA, federal, state, and tribal natural resource trustees have authority to seek compensation for natural resources harmed by hazardous industrial waste and by-products discharged into the St. Louis River. The natural resource trustees include the U.S. Department of the Interior, acting through the U.S. Fish and Wildlife Service and the Bureau of Indian Affairs; the U.S. Department of Commerce, acting through the National Oceanic and Atmospheric Administration; the Fond du Lac Band of Lake Superior Chippewa; the 1854 Treaty Authority, representing the Grand Portage Band of Lake Superior Chippewa and the Bois Forte Band of Chippewa; the Minnesota Pollution Control Agency; the Minnesota Department of Natural Resources; and the Wisconsin Department of Natural Resources.

The proposed settlement includes $6.5 million to be used on restoration activities consistent with a proposed Restoration Plan/Environmental Assessment that is also being made available for public review and comment today. Of the possible restoration alternatives, the draft Restoration Plan recommends:

• Kingsbury Bay: Restoration of a 70-acre shallow, sheltered embayment habitat that will add recreational access areas for fishing and a boat launch, improve habitat and reduce invasive vegetation.
• Kingsbury Creek Watershed: Activities to reduce sediment accumulation, improve water quality and support the shallow sheltered bay habitat of the restored Kingsbury Bay.
• Wild Rice Restoration: Enhancement of wild rice stands within the estuary.
• Cultural Education Opportunities: Development of informational displays to communicate importance of the St. Louis River estuary’s cultural and natural resources.

The three Defendants previously paid approximately $80 million to clean up the SLRIDT Superfund site under prior agreements with the Minnesota Pollution Control Agency.

The consent decree is subject to a 30 day public comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice web site at www.usdoj.gov/enrd/Consent_Decrees.html.

The draft Restoration Plan/Environmental Assessment is also subject to a 30 day public comment period and is available for review at: https://www.pca.state.mn.us/waste/st-louis-river-interlakeduluth-tar-site. Paper copies may be requested by calling 651-259-5157 or 888-646-6367.

          SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant MARY ANN B. CANTORES, age 37, was sentenced in U.S. District Court today by Chief Judge Frances Tydingco-Gatewood to a 27-month term of imprisonment, to be followed by two years of supervised release. The Court also ordered CANTORES to pay a mandatory $100 assessment fee. She was convicted of importation of 245 grams of methamphetamine with a 97.8% purity level.

          On September 16, 2013, CANTORES arrived in Guam from the Philippines. She was detained at the airport by Guam Customs and Quarantine officers who recovered three plastic ziplock bags containing methamphetamine that were concealed on the bottom of a DVD box. CANTORES knowingly brought the drugs from the Philippines which she carried in one of her luggage. She had agreed with persons in the Philippines to deliver the drugs to an individual in Guam, later identified as Alvin Padua. Padua was arrested on the same day, and on March 31, 2017, he received a sentence of 87 months imprisonment for his role in attempting to possess methamphetamine with intent to distribute, and because of an extensive criminal history record.

          Defendant CANTORES pled guilty on October 9, 2013.

          The case was investigated by law enforcement agents from the U.S. Department of Homeland Security, Homeland Security Investigations, and Guam Customs and Quarantine Agency, and prosecuted by Assistant United States Attorney Marivic David.

Today Attorney General Jeff Sessions met with families who have lost loved ones because of crimes committed by illegal aliens. In the meeting they discussed the progress being made by the Trump Administration to strengthen laws protecting Americans from crimes committed by illegal aliens and, the need to keep working to ensure that federal immigration laws are enforced.

“It was a great honor for me to meet with these families, and I was impacted by their stories,” said Attorney General Jeff Sessions. “The tragic burdens they carry remind us of the urgent need by the federal government to fully enforce our immigration laws and to secure the borders of this country. No Americans should experience what these families have suffered. I want to thank these strong moms, dads, siblings and widows for ensuring that their loved ones don’t die in vain by using their voices to affect the real changes that we are implementing. I commit to them, and I commit to the American people that the Department of Justice will do everything in our power to ensure the safety of every American community.”

Attending the meeting with the Attorney General were Maureen Laquerre and Maureen Maloney of Massachusetts, Juan Piña and Sabine Durden of California, Steve Ronnebeck and Mary Ann Mendoza of Arizona and Laura Wilkerson of Texas.

Attorney General Jeff Sessions today issued the following statement regarding Kate’s Law (H.R. 3004) and the No Sanctuary for Criminals Act (H.R. 3003):

“I urge the House of Representatives to pass Kate’s Law and the No Sanctuary for Criminals Act right away.

“President Trump is committed to the rule of law and public safety, and it is the responsibility of the Department of Justice to enforce that law to keep people safe.

“Countless families and communities have suffered as a result of these ‘sanctuary’ policies, which undermine federal law by safeguarding criminal illegal aliens from federal law enforcement. One victim of these policies was Kate Steinle, who was killed by an illegal alien who had been deported five times and yet still walked the streets freely. Her death was preventable, and she would still be alive today if only the City of San Francisco had put the public’s safety first. How many more Americans must die before we put an end to this madness?

“Violent, transnational gangs like MS-13 take advantage of these policies in order to smuggle in drugs, recruit new members from our schools, and pillage and plunder our communities. Closing these loopholes in our laws must be a priority if we are to make America safe from these dangerous transnational organizations.

“Americans demand that these ‘sanctuary cities’ stop protecting criminals and start protecting law-abiding residents from danger. It should come as no surprise that a Harvard University report found that 80 percent of Americans believe that cities that arrest illegal aliens for crimes should be required to turn them over to federal immigration officials.

“Kate’s Law and the No Sanctuary for Criminals Act would penalize criminal illegal aliens who break our laws and the jurisdictions that attempt to shield them from justice. These bills can restore sanity and common-sense to our system by ending abusive attempts to undermine federal law, and they can prevent future tragedies by empowering law enforcement.

“I urge the House of Representatives to put the American people first before another family loses their child.”

WASHINGTON – The Justice Department announced today that it reached a settlement agreement with Panda Restaurant Group, Inc. (Panda Express), a restaurant chain with over 1,800 locations in the United States. The agreement resolves the department’s investigation into whether Panda Express discriminated against non-U.S. citizens in violation of the Immigration and Nationality Act (INA) when reverifying their permission to work.

 

The department’s investigation concluded that Panda Express unnecessarily required lawful permanent resident workers to re-establish their work authorization when their Permanent Resident Cards expired, while not making similar requests to U.S. citizen workers when their documents expired. The investigation also revealed that Panda Express routinely required other non-U.S. citizen workers to produce immigration documents to reverify their ongoing work authorization despite evidence they had already provided sufficient documentation. The antidiscrimination provision of the INA prohibits such requests for documents when based on an employee’s citizenship status or national origin.

 

Under the settlement, Panda Express will pay a civil penalty of $400,000 to the United States, establish a $200,000 back pay fund to compensate workers who lost wages due to the company’s practices, train its human resources personnel on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.

 

“Employers should ensure that their reverification practices comply with laws that protect workers against discrimination,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “The Justice Department applauds Panda Express for its cooperation during this investigation and its commitment to compensating workers who may have lost wages due to its documentary practices.”

 

Work authorized non-U.S. citizens who lost work at Panda Express between May 31, 2014, and June 28, 2017, due to Panda Express’ documentary practices may be eligible for back pay for the wages they would have earned. For more information, email IER.PEclaims@usdoj.gov.

 

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. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.

 

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

 

The Justice Department announced today that it reached a settlement agreement with Panda Restaurant Group, Inc. (Panda Express), a restaurant chain with over 1,800 locations in the United States. The agreement resolves the department’s investigation into whether Panda Express discriminated against non-U.S. citizens in violation of the Immigration and Nationality Act (INA) when reverifying their permission to work.

The department’s investigation concluded that Panda Express unnecessarily required lawful permanent resident workers to re-establish their work authorization when their Permanent Resident Cards expired, while not making similar requests to U.S. citizen workers when their documents expired. The investigation also revealed that Panda Express routinely required other non-U.S. citizen workers to produce immigration documents to reverify their ongoing work authorization despite evidence they had already provided sufficient documentation. The antidiscrimination provision of the INA prohibits such requests for documents when based on an employee’s citizenship status or national origin.

Under the settlement, Panda Express will pay a civil penalty of $400,000 to the United States, establish a $200,000 back pay fund to compensate workers who lost wages due to the company’s practices, train its human resources personnel on the requirements of the INA’s anti-discrimination provision, and be subject to departmental monitoring and reporting requirements.

“Employers should ensure that their reverification practices comply with laws that protect workers against discrimination,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “The Justice Department applauds Panda Express for its cooperation during this investigation and its commitment to compensating workers who may have lost wages due to its documentary practices.”

Work-authorized, non-U.S. citizens who lost work at Panda Express between May 31, 2014, and June 28, 2017, due to Panda Express’ documentary practices may be eligible for back pay for the wages they would have earned. For more information, email IER.PEclaims@usdoj.gov.

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. The statute prohibits, among other things, citizenship, immigration status, and national origin discrimination in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation.

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

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

A federal grand jury in Topeka, Kansas, returned an indictment charging Former Kansas Highway Patrol Trooper James Carson with violating an individual’s civil rights by using excessive force, announced Thomas E. Wheeler, II, Acting Assistant Attorney General for the Civil Rights Division; Thomas E. Beall, United States Attorney for the District of Kansas; and Darrin E. Jones, Special Agent in Charge for the Kansas City Field Office of the Federal Bureau of Investigation.

The indictment alleges that James Carson, while acting under color of law as a Trooper with the Kansas Highway Patrol, used excessive force amounting to punishment against R.T.  The indictment further alleges that Carson’s use of excessive force resulted in bodily injury to R.T. If convicted on the civil rights charge, Carson faces a maximum sentence of 10 years in prison and a $250,000 fine.

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

The case is being investigated by the Topeka Resident Agency of the Kansas City Field Office of the FBI.  The case was initially investigated by the Kansas Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Jared Maag of the United States Attorney’s Office and Trial Attorney Rose Gibson of the Civil Rights Division’s Criminal Section.

WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con Panda Restaurant Group, Inc. (Panda Express), una cadena de restaurantes con más de 1.800 locales en los Estados Unidos. El acuerdo resuelve la investigación del Departamento para determinar si Panda Express discriminó a trabajadores que no eran ciudadanos de los EE. UU. al reverificar su permiso para trabajar, en contravención de la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés).

 

La investigación del Departamento concluyó que Panda Express tuvo el requisito innecesario de que trabajadores que eran residentes permanentes legales reestablecieran su autorización para trabajar al vencerse sus tarjetas de residencia mientras que no solicitaron las mismas cosas de sus trabajadores que eran ciudadanos de los EE. UU. cuando los documentos de estos vencieron. Asimismo, la investigación reveló que Panda Express requirió, de forma rutinaria, que otros trabajadores no ciudadanos de los EE. UU. presentasen documentos migratorios para reverificar su autorización ininterrumpida para trabajar, a pesar de tener ya pruebas de que los mismos ya habían aportado suficiente documentación. La disposición antidiscriminatoria de la INA prohíbe tales solicitudes de documentos cuando las mismas se basan en el estatus de ciudadanía de un trabajador o en su nacionalidad de origen.

 

Al amparo del acuerdo, Panda Express pagará sanciones civiles que ascienden a $400.000 a los Estados Unidos, establecerá un fondo de pagos retroactivos de $200.000 para compensar a aquellos trabajadores que perdieron sueldo a causa de las prácticas de la empresa, capacitará a su personal de recursos humanos acerca de los requisitos de la disposición antidiscriminatoria de la INA y se someterá a la supervisión y requisitos de declaración del Departamento.

 

«Los empleadores deben asegurar que sus prácticas de reverificación cumplen con las leyes que protegen a los trabajadores de la discriminación», declaró el Fiscal General Auxiliar en funciones Tom Wheeler, de la División de Derechos Civiles. «El Departamento de Justicia felicita a Panda Express por su cooperación durante la investigación y por haberse comprometido a compensar a los trabajadores que hayan perdido sueldo por motivos de sus prácticas documentales».

 

Cualquier trabajador que no sea ciudadano de los EE. UU. y que cuente con autorización para trabajar y que perdió sueldo en Panda Express entre el 31 de mayo del 2014 y el 28 de junio del 2017 como resultado de las prácticas documentales de Panda Express pueden ser elegibles para recibir pagos retroactivos por el sueldo que habrían ganado. Para más información, mande un correo electrónico a IER.PEclaims@usdoj.gov.

 

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.

 

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.

 

Download Panda Express Settlement Agreement

A Brentwood, Tennessee doctor and his wife were sentenced to prison today for conspiring to defraud the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jack Smith for the Middle District of Tennessee.

Jeff McCoy Jr., 70, and Andra McCoy, 68, were each sentenced to serve 36 months in prison.

According to documents filed with the court, from 2002 through 2014, Jeff and Andra McCoy conspired to defraud the IRS by impeding the collection of their income taxes. The McCoys filed 2003 through 2007 income tax returns with the IRS on which they claimed fake income tax withholding amounts and sought approximately $2,620,208 in fraudulent refunds. They submitted false documents to the IRS and placed their assets in the names of nominees and in nominee bank accounts. For example, they established a bank account for a purported nonprofit business and directed Jeff McCoy’s employer to deposit his income into the nominee account. In addition to seeking fraudulent refunds, the McCoys also failed to pay more than $500,000 in taxes owed for tax years 2001 through 2008, despite earning more than $2 million during that time.

In addition to the term of prison imposed, Jeff and Andra McCoy were also ordered to each serve three years of supervised release and to pay $913,595 in restitution to the IRS. They previously pleaded guilty in March to conspiring to defraud the United States.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Smith commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Thomas Jaworski and Trial Attorney Alexander Effendi, who prosecuted the case.

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

An indictment of three shipping executives was unsealed in U.S. District Court in Baltimore, the Department of Justice announced today.

Anders Boman, Arild Iversen, and Kai Kraass have been charged with participating in a long-running conspiracy to allocate certain customers and routes, rig bids, and fix prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore. A federal grand jury returned the indictment in November 2016.

Boman, a citizen of Sweden, and Iversen, a Norwegian citizen, are former executives of Wallenius Wilhelmsen Logistics AS (WWL). Kraass, a German citizen, is a current WWL executive. Including the charges announced today, eleven executives have been charged in the investigation to date. Four have pleaded guilty and been sentenced to serve prison terms. Others remain international fugitives. WWL has pleaded guilty and been sentenced to pay a $98.9 million fine. Three other companies have also pleaded guilty, resulting in total collective criminal fines over $230 million.

The indictment alleges that Boman, Iversen, and Kraass conspired with their competitors to allocate certain customers and routes for the shipment of cars and trucks, as well as construction and agricultural equipment. The defendants accomplished their scheme by, among other things, attending meetings in Baltimore County and elsewhere during which they agreed not to compete against each other, by refraining from bidding or by agreeing on the prices they would bid for certain customers and routes. In addition, Boman, Iversen, and Kraass agreed with competitors to fix, stabilize, and maintain rates charged to customers of international ocean shipping services. The customers affected by the conspiracy included U.S. companies.

“The indictment unsealed today is yet another step in the Division’s efforts to restore competition in the shipping industry,” said Acting Assistant Attorney General Andrew Finch of the Justice Department’s Antitrust Division. “WWL has pleaded guilty. Now we are working to ensure that its executives who conspired to suppress competition at the expense of American consumers will be held accountable.”

“These indictments are the continuation of a long-term effort by the FBI’s Baltimore Field Office to secure our nation’s economy against collusion in the shipping industry, to ensure competition in the market place and to protect US companies from these deceptive practices.” said Special Agent in Charge Gordon B. Johnson.

Today’s announcement is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit. Anyone with information in connection with this investigation 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 Baltimore Field Office at 410-265-8080.

A former special agent of the Drug Enforcement Administration (DEA) pleaded guilty today to stealing fraud proceeds that she had been assigned to recover on behalf of fraud victims, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Special Agent in Charge Michael P. Tompkins of the Justice Department’s Office of the Inspector General (OIG).

 

Artemis Papadakis, 57, of Richmond, California, pleaded guilty before U.S. Magistrate Judge Jill L. Burkhardt of the Southern District of California to an information charging her with theft by a government official. Sentencing has been scheduled for September 11 before U.S. District Judge John A. Houston.

 

According to the plea agreement, Papadakis admitted that she was stationed by the DEA in Nicosia, Cyprus, between 2008 and 2014. While in Cyprus, Papadakis was assigned to help the U.S. Government recover the proceeds of an American fraud scheme that had been frozen in the banking system in northern Cyprus. When Papadakis was transferred from Cyprus to San Francisco in June 2014, the funds had not yet been recovered. Papadakis admitted that she was told not to pursue the matter regarding the funds following her transfer. But when she was in Cyprus in October 2015 on personal business, Papadakis took possession of $310,000 of the funds without notifying anyone at the DEA or in the U.S. Government that she had done so. 

 

According to the plea agreement, Papadakis mailed approximately $230,000 of those funds from Cyprus to her home address in California and later took possession of an additional $20,000 of those funds from a third party when he visited her in the U.S. Papadakis admitted that she hid the $250,000 in her flower pots at her home in California, and did not disclose to anyone at the DEA or in the U.S. Government that she had taken possession of the fraud proceeds. Papadakis further admitted that on or about Feb. 22, 2016, she surrendered the $250,000 to the U.S. government under the false cover story that she had just received it via an unexpected package from Cyprus.

 

The Justice Department’s OIG investigated the case. Trial Attorneys Jonathan Kravis and Molly Gaston of the Criminal Division’s Public Integrity Section are prosecuting the case.

Attorney General Jeff Sessions traveled to the City of Ottawa, Ontario, Canada, for the annual Meeting of the Quintet of Attorneys General and Five Country Ministerial of the United States, the United Kingdom, Canada, Australia, and New Zealand. The focus of the Quintet meeting was on matters of common concern, including cybercrime, encryption, and countering violent extremism.

“I am very excited by the spirit and determination of our allies to take aggressive action to confront the terrorist threats. Increased collaboration, cooperation, and communication is essential to the fight against terrorism and transnational criminal organizations,” said Attorney General Jeff Sessions. “This meeting of the Quintet of Attorneys General provides the setting for our closest allies with similar legal systems to discuss the steps we are taking to combat new avenues of radicalization, which is crucial to the safety and security of nations with shared values.”

Recent attacks in Europe emphasize the growing threat posed by ISIS’ radicalization of foreign terrorist fighters. It is essential that we use every lawful tool to prevent as many attacks as possible and to defeat these terrorist organizations. The Quintet ultimately seeks to improve methods to prevent violent extremists and their supporters from inspiring, radicalizing, financing, and recruiting individuals to commit acts of violence.

The Quintet also focused on the human trafficking crisis, a crime which the Department of Justice has increasingly encountered being committed by transnational criminal organizations. The Human Trafficking Prosecution Unit within the Justice Department’s Civil Rights Division works closely with our foreign partners to investigate and prosecute these organizations that are also involved in money laundering and visa fraud.

Christopher A. Wray delivers a statement on his nomination by President Donald J. Trump to lead the FBI:

“I am honored and humbled to be nominated by the President to lead the FBI, the premier law enforcement organization in the world. From my earliest days working with agents as a line prosecutor to my time working with them at the Department of Justice in the aftermath of 9/11, I have been inspired by the men and women of the FBI – inspired by their professionalism, integrity, courage, and sacrifice for the public. If confirmed, it will be a privilege and honor to once again work with them. America faces grave threats both here and abroad, and the FBI, in concert with its federal, state, and local partners continues to work steadfastly to prevent and hold accountable those responsible for these threats. I look forward to the confirmation process, and pledge my complete commitment to fairly and honorably protecting our country and upholding our Constitution and laws.”

Attorney General Jeff Sessions today issued the following statement after the unanimous decision by the Supreme Court of the United States to review the lower courts’ decisions on the President’s executive order:

“I am pleased that the Supreme Court has decided to hear this case and the Department of Justice looks forward to arguing on behalf of the President and his constitutional duty to protect the national security of the United States.

“We have seen far too often in recent months that the threat to our national security is real and becoming increasingly dangerous. Groups like ISIS and al Qaeda seek to sow chaos and destruction in our country, and often operate from war-torn and failed countries while leading their global terror network. It is crucial that we properly vet those seeking to come to America from these locations, and failing to do so puts us all in danger.

“Today’s order is also an important step towards restoring the separation of powers between the branches of the federal government. The Court’s decision recognizes that the Executive has the responsibility to protect the safety and security of the American people under the Constitution of the United States and its laws. The judiciary serves, pursuant to their oath, under the same Constitution and these same laws. This case raises profound questions about the proper balance of these constitutional powers, and we are eager to advance our views on these important issues.

“Through Article II of the Constitution, the founders of our country vested the Executive Branch with a great responsibility: to ensure the national security of our country. I am committed to defending the President's ability to exercise that responsibility and the Department of Justice is confident that the United States Supreme Court will uphold this constitutional and necessary executive order.”

The Department of Justice, the Environmental Protection Agency (EPA) and the State of Colorado, on behalf of the Colorado Department of Public Health and Environment (CDPHE), today filed a civil complaint in federal court in Denver, Colorado, against PDC Energy, Inc. (PDC). 

The complaint alleges violations of the Clean Air Act, the Colorado Air Pollution Prevention and Control Act, Colorado’s federally approved State Implementation Plan, and Colorado Air Quality Control Commission Regulation Number 7 (Regulation 7), for unlawful emissions of volatile organic compounds (VOC) from storage tanks that are, or until recently were, part of PDC’s oil and natural gas production system in the Denver-Julesburg Basin (D-J Basin) located in Adams and Weld Counties, Colorado.

“Violations of environmental law will be pursued and punished,” said Environmental Protection Agency Administrator Scott Pruitt. “We will work with our federal, state and local partners to punish those that violate the laws to the detriment of human health and the environment.”

“Reducing emissions from condensate storage tanks is a critical component of our efforts to bring the Denver Metro/North Front Range Area back into compliance with ground level ozone standards,” said Director of Environmental Programs Martha Rudolph of the Colorado Department of Public Health and Environment.  “Colorado has been a leader in developing and implementing control requirements for these tanks and it is vitally important that we take the necessary steps to ensure that these requirements are uniformly followed.”

“Violating emissions standards endangers public health and can give violators an unfair advantage in the marketplace,” said Acting Assistant Attorney General Jeffrey H. Wood of the Department of Justice’s Environment and Natural Resources Division.  “The United States will pursue all appropriate remedies against entities that violate our nation’s clean air laws.”

PDC owns or operates approximately 600 tank batteries in the D-J Basin that PDC has certified as being controlled to comply with Regulation 7’s system-wide VOC reduction requirements.  The complaint alleges that at 86 tank batteries, and potentially hundreds more, PDC has violated numerous requirements in Regulation 7 intended to address VOC emissions from storage tanks. The complaint alleges that PDC failed to adequately design, operate and maintain vapor control systems on condensate storage tanks resulting in VOC emissions from pressure relief valves and openings on condensate storage tanks. 

The complaint alleges that PDC’s failure to comply with these requirements has resulted in significant excess VOC emissions, a precursor to ground-level ozone.  Ground-level ozone is a criteria pollutant, meaning that it causes or contributes to air pollution that may reasonably be anticipated to endanger public health or welfare.  PDC operates in an area where air quality does not meet the National Ambient Air Quality Standards (NAAQS) for ground-level ozone. 

These allegations are consistent with those set forth in the Compliance Advisory in December 2015 and the Notice of Violation in May 2017 that were both issued by CDPHE to PDC.

According to the complaint, following the issuance of the 2015 Compliance Advisory, CDPHE inspectors conducted additional inspections of PDC tank batteries and observed VOC emissions from several of the same tank batteries covered by the 2015 Compliance Advisory.  CDPHE inspectors also observed VOC emissions from PDC tank batteries not covered by the 2015 Compliance Advisory and issued the 2017 Notice of Violation to PDC identifying violations of Regulation 7 at the other PDC tank batteries.

The civil complaint filed today seeks injunctive relief and the assessment of civil penalties.  A civil complaint does not preclude the government from seeking other legal remedies.

The Clean Air Act is the comprehensive federal law that regulates air emissions of criteria pollutants and hazardous air pollutants from stationary and mobile sources to protect public health and public welfare.

A Haymarket, Virginia woman was sentenced to serve 48 months in prison today for stealing customer IDs and filing a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Dana Boente for the Eastern District of Virginia.

According to documents provided to the court, Karen Holtz worked for JMS Ventures Inc. (JMS), which did business as the Kenyan Collection, and imported and distributed handmade Kenyan goods. Holtz was responsible for taking, processing, and fulfilling customer orders, accepting customer payments, including charging customer credit cards, preparing customer invoices, keeping track of JMS’s inventory and maintaining JMS’s books and records. Between 2008 and 2013, Holtz wrote herself unauthorized checks from JMS’s bank account and unlawfully diverted customer payments made using PayPal by transferring the payments directly to her personal bank account. Holtz also used JMS’s customers’ personal identification information to make fraudulent charges to their credit cards. For tax years 2008 through 2013, Holtz filed false individual tax returns on which she failed to report more than $400,000 in income.

In addition to the term of prison imposed, Holtz was ordered to serve one year of supervised release and to pay $529,544.81 in restitution to the Internal Revenue Service (IRS) and the victims of the fraud and identity theft scheme.

Acting Deputy Assistant General Goldberg and U.S. Attorney Boente thanked special agents of IRS Criminal Investigation, the U.S. Secret Service, and the Loudoun County Sheriff’s Department, who conducted the investigation, and Assistant U.S. Attorney Katherine L. Wong and Trial Attorney Kimberly G. Ang of the Tax Division, who prosecuted the case.

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

The co-owners of a Great Neck, New York flower business, pleaded guilty today in U.S. District Court for the Eastern District of New York to corruptly endeavoring to obstruct and impede the internal revenue laws, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to documents filed with the court, Adrian Benitez, 39, and Jose Ramirez, 44, co-owned and operated Metro Floral Decorators. Between 2007 and 2012, they obstructed the internal revenue laws by diverting more than $1 million in sales to their personal bank accounts instead of depositing the funds into the business bank account. They directed customers to pay in cash, checks payable to cash or checks payable to them personally. Benitez and Ramirez concealed these funds from their return preparer and filed with the Internal Revenue Service (IRS) false individual income tax returns that did not report the money they diverted. They also did not report the full gross receipts on the firm’s corporate tax returns. Benitez admitted to causing a tax loss of approximately $227,729 and Ramirez admitted to causing a tax loss of approximately $235,805.

A sentencing date has not been scheduled before U.S. District Judge Eric N. Vitaliano. Benitez and Ramirez each face a statutory maximum sentence of three years in prison, a period of supervised release, restitution and monetary penalties.

Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell 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.

Today the Department of Justice filed a Statement of Interest in City of El Cenizo, Texas, et. al vs. Texas, et. al, commonly known as the SB4 litigation.

The lawsuit was filed by several cities trying to block Texas’s SB4 law, which prohibits localities in Texas from implementing or maintaining policies that prevent local officials from sharing immigration-related information with the federal government. Additionally, SB4 directs local officials in Texas to cooperate with immigration detainer requests issued by the federal government under federal law.

The Department primarily argues that SB4 is not preempted by the Supremacy Clause, it is not inconsistent with the Tenth Amendment, and it does not violate the Fourth Amendment.

In filing the Statement of Interest, Attorney General Sessions provided the following statement:

“President Trump has made a commitment to keep America safe and to ensure cooperation with federal immigration laws. Texas has admirably followed his lead by mandating state-wide cooperation with federal immigration laws that require the removal of illegal aliens who have committed crimes.

“The Department of Justice fully supports Texas’s effort and is participating in this lawsuit because of the strong federal interest in facilitating the state and local cooperation that is critical in enforcing our nation’s immigration laws.”