District Not Recorded

A former housing repair contractor pleaded guilty to committing fraud, the Department of Justice announced today.

Patric G. Monahan pleaded guilty to one count of wire fraud in the U.S. District Court in Minneapolis today.  The former repair contractor admitted to participating in a scheme to defraud financial institutions in connection with foreclosed properties the financial institutions owned in the Minneapolis area.  Sentencing will be set at a later date.

According to the plea agreement, Monahan paid an unnamed realtor over $85,000 to steer housing repair contracts to Monahan and companies affiliated with him.  Monahan participated in this scheme from in or about January 2008 until in or about February 2014.  

 “Patric Monahan knowingly participated in a long-standing scheme to defraud U.S. financial institutions,” said Deputy Assistant Attorney General Brent Snyder of the Department of Justice’s Antitrust Division.  “We will continue to work with our law enforcement partners to protect U.S. companies from fraud, wherever we find it.”

 “The plea filed today reflects the FBI’s steadfast commitment to ferreting out all forms of financial institution fraud and sends a strong message for those seeking new ways to steal from banks: you will be caught and held accountable for your crimes,” said Special Agent in Charge Richard T. Thornton of the Minneapolis office of the FBI.

This is the first case involving fraud and kickbacks relating to repair contracts for properties in the Minneapolis area owned by financial institutions.  The maximum penalty for wire fraud is 30 years of imprisonment and a fine of $1,000,000.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s plea is the result of an ongoing federal investigation of housing repair contracts in the Minneapolis area.  The investigation is being conducted by the Antitrust Division’s Chicago Office and the FBI’s Minneapolis Division.  Anyone with information concerning suspicious activity relating to housing repairs performed in the Minneapolis area should contact the Antitrust Division’s Chicago Office at 312-984-7200 or visit www.justice.gov/atr/contact/newcase.htm.

The Department of Justice’s Antitrust Division (DOJ) and the Federal Trade Commission (FTC) have recommended that Alaska repeal its certificate-of-need (CON) laws, which require healthcare providers to obtain state approval before expanding, establishing new facilities or services, or making certain large capital expenditures.

In response to a request by Senator David Wilson for views on Alaska Senate Bill 62, which would repeal Alaska’s CON laws, the joint statement suggests the state consider whether its CON program best serves the needs of its citizens. 

“Alaska lawmakers have the opportunity to bring lower costs and greater options to health care consumers,” said Acting Assistant Attorney General Andrew Finch of the Antitrust Division.  “CON laws can increase the costs of investing in new health care services and can shield incumbents from competition.  Repeal of Alaska’s CON laws could invigorate competition in this critical sector, to the benefit of patients, employers, and other health care consumers.”  

“CON laws raise considerable competitive concerns and generally do not achieve their alleged benefits for health care consumers,” said Acting Chairman Maureen K. Ohlhausen of the Federal Trade Commission.  “CON laws can restrict entry and expansion, limit consumer choice, and stifle innovation.  Additionally, the CON process can be exploited by incumbent firms to thwart or delay entry by new competitors, as well as potentially obstruct efforts to restore competition lost to an anticompetitive merger, harming free markets and consumers.”

According to the joint statement, the DOJ and FTC historically have urged states to consider repeal or reform of their CON laws because they can prevent the efficient functioning of health care markets and harm consumers.  CON laws can create barriers to entry and expansion, limit consumer choice, deny consumers the benefit of an effective remedy for antitrust violations, facilitate anticompetitive agreements, and stifle innovation.

A leader of the Vice Lords street gang was sentenced today to 162 months in prison for his role in the May 7, 2015, shooting of four members of a family with an AK-47 in Detroit.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan, Special Agent in Charge Robin Shoemaker of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Detroit Field Division, Special Agent in Charge David P. Gelios of the FBI’s Detroit Division and Chief James Craig of the Detroit Police Department made the announcement.

“Everett controlled the Vice Lords by ordering violent retribution against anyone who crossed him, his revenge had no limits,” said Acting Assistant Attorney General Blanco. “I am proud of the unified efforts of our prosecutors and law enforcement partners, including the Detroit One partners, who successfully brought Everett and other Vice Lord members to justice. The Justice Department will continue to work closely and jointly with all of our Federal, state and local law enforcement partners to investigate, prosecute and dismantle violent gangs, like the Vice Lords, wherever they may be present.”

“This conviction and sentence is particularly important since Mr. Everett was a leader of the gang and directed this violence to occur. This lengthy sentence underscores that one does not have to be physically present at a shooting to bear the full brunt of criminal responsibility and punishment,” said Acting U.S. Attorney Lemisch. “We hope Mr. Everett’s sentence sends a strong message of deterrence to those who may want to pursue the gang lifestyle.”

“This sentence is the culmination of countless hours of dedicated work by ATF agents and our law enforcement partners,” said Special Agent in Charge Shoemaker. “ATF will continue to aggressively target and dismantle criminal enterprises threatening the safety of Detroit’s citizens.”

“While gang violence continues to plague the safety and security of our neighborhoods, today’s sentence reflects the continuing impact the Detroit One Initiative is having on the ability of gang members to terrorize our communities,” said Special Agent in Charge Gelios. “Prior to today, defendants in this shooting incident had been sentenced to approximately 80 years collectively in prison. With today’s additional sentence, the message should be clear this collaboration of federal, state and local law enforcement partners is committed to restoring our streets to the law-abiding citizens of Detroit.”

Burney Everett, aka Tank, 27, of Detroit, pleaded guilty on Oct. 25, 2016, before U.S. District Judge David M. Lawson of the Eastern District of Michigan to two counts of assault with a dangerous weapon in aid of racketeering and one count of use and carry of a firearm during and in relation to a crime of violence.

According to admissions made in connection with Everett’s plea, the Vice Lords is a national gang engaged in a variety of crimes and the gang’s leaders are located in both Chicago and Detroit. The gang is broken down into various “sets,” “decks,” or “branches,” including the Detroit-based Traveling Vice Lords (TVL). The Vice Lords have often targeted members who sought to leave the gang for physical beatings or murder.

Everett admitted that in May 2015, he directed other members of the TVL to search for two brothers who had left or attempted to leave the gang in order to harm them. Everett further admitted that on May 7, 2015, at his direction, members of the TVL traveled in multiple cars to the intended victims’ house. After a brief confrontation with the brothers’ family members, Vice Lords member Antonio Clark admitted in connection with his own plea that he fired an AK-47 23 times, hitting the brothers, their mother and a 15-year-old sister. All of the victims survived the shooting.

All defendants charged for the shooting pleaded to charges related to the shooting. In addition to Everett, eight members and leaders of the TVL, all of Detroit, have pleaded guilty to charges related to the shooting, seven of whom have been sentenced: Antonio Clark, 27, was sentenced to 240 months in prison; Aramis Wilson, 26, was sentenced to 150 months in prison; Dion Robinson, 39, was sentenced to 121 months in prison; Jonathan Kinchen, 24, was sentenced to 120 months in prison; Tyrone Price, 27, sentenced to 140 months in prison; Kojuan Lee, 20, was sentenced to 97 months in prison; and Kirshean Nelson, 20, was sentenced to 36 months in prison. Kenneth Smith, 35, pleaded guilty on Jan. 28, 2016, and awaits sentencing, which has not yet been set. On Jan. 18, 2017, a co-defendant of Everett, Vice Lords associate Jamerio Clark, was sentenced to 48 months in prison for witness tampering by obtaining and disclosing the private health information of the May 7, 2015 shooting victims and victims’ family members to a member of the gang.

The convictions related to the May 7, 2015, shooting are just one component of the federal government’s prosecution of the Vice Lords street gang, which has led to the arrests and convictions of dozens of Vice Lords leaders and members over the last few years. In two trials during March and May 2015, juries convicted eight leaders and members of the Phantom Outlaw Motorcycle Club, many of whom were also leaders and members of the Vice Lords, for various crimes, including a mass-murder plot against a rival organization and the shooting of a member of another rival organization.

The arrests and convictions in this case are, in part, the result of the Detroit One Initiative, a collaborative effort between law enforcement and the community to reduce homicide and other violent crime in Detroit. Through the lead efforts of the Comprehensive Violence Reduction Partnership Task Force, which consists of representatives of the ATF, Detroit Police Department, Michigan State Police, Michigan Department of Corrections and FBI, law enforcement authorities linked various acts of violence in Detroit to the Vice Lords street gang, and identified the leaders and key members of the gang, who now have been held accountable.

The ATF, FBI and Detroit Police Department investigated the case. Assistant U.S. Attorneys Christopher Graveline and Mark Bilkovic of the Eastern District of Michigan and Trial Attorney Joseph Wheatley of the Criminal Division’s Organized Crime and Gang Section prosecuted the case.

          SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the U.S. Department of Justice and the Territory of Guam today jointly filed a motion to dismiss in the U.S. District Court, to terminate a 1991 Settlement Agreement for the civil reform of conditions in Guam’s jail and prison facilities.

          “The completion of this civil Settlement Agreement demonstrates the U.S. Department of Justice’s continuing commitment to ensure that all men and women who are detained or serving prison sentences receive the protections guaranteed by the Constitution,” said Acting United States Attorney Shawn N. Anderson. “Guam’s compliance with the terms of the Settlement Agreement means inmates and detainees are more likely to be housed in cleaner and safer conditions, and that they will have adequate access to vital health care services.”

          The United States Attorney’s Office continues to pursue other cases and matters involving federal criminal violations connected with the Guam Department of Corrections.

          The Settlement Agreement resolved the United States’ allegations of a pattern or practice of constitutional violations in Guam’s correctional facilities related to fire safety, sanitation, and access to health care. The case was brought under the Civil Rights of Institutionalized Persons Act (42 U.S.C. § 1997), which protects the federal rights of people in state and locally operated institutions, including nursing homes, hospitals, and correctional facilities. To comply with the Settlement Agreement and remedy the constitutional violations, the United States Attorney’s Office and the Office of the Attorney General of Guam participated in a series of hearings before the U.S. District Court of Guam. The Office of the Attorney General of Guam partnered with national experts and recruited specialists within the Government of Guam, resulting in improvements to the fire safety and sanitation systems throughout its facilities. The Attorney General of Guam completely overhauled the Department of Correction’s health care practices by transferring control of its clinic to staff at Guam Memorial Hospital.

          The case was handled by attorneys from the U.S. Department of Justice’s Civil Rights Division, Special Litigation Section, in Washington, D.C. and the U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands.

A Louisiana tax return preparer, Finecia Draper of Simmesport, Louisiana prepares fraudulent tax returns for her customers, according to a new civil suit filed by the Justice Department. The suit, filed in federal court in Alexandria, Louisiana asks the court to permanently bar Draper from preparing federal tax returns for others. The suit also asks the court to order Draper to turn over a list of all taxpayers for whom she has prepared returns since Jan. 1, 2013.

The complaint alleges that Draper, who prepares returns through her business Unlimited Fashion located at 245 Moreau St. in Simmesport, prepares returns that fraudulently understate her customers’ income tax liabilities and/or overstates the refunds they are entitled to receive. According to the complaint, Draper does so by fabricating or inflating business losses claimed on her customers’ returns. In many of the examples cited in the complaint, the taxpayer did not even own or operate a business. The bogus losses that Draper claims fraudulently understate the income her customers earned which results in underreporting their tax liabilities and overstating the refunds they are due, according to the complaint.

The complaint additionally alleges that Draper also fraudulently claims and/or inflates the Earned Income Tax Credit (EITC) on returns she prepares. The EITC is a benefit for working taxpayers with low to moderate income. The amount of EITC a taxpayer can claim is determined by the amount of income the taxpayer earned and the number of dependents a taxpayer claims. The complaint alleges that Draper uses false business losses to improperly reduce the earned income on her customers’ returns and claims improper dependents, to maximize the EITC. The complaint alleges that Draper does so without doing the due diligence required by Internal Revenue Service (IRS) regulations and despite being previously penalized over $97,000 by the IRS for failure to exercise the required due diligence.

From 2011 to 2015, Draper prepared over 2,000 returns, according to the complaint. The complaint alleges that audits of 163 returns prepared by Draper in 2011, 2012, and 2013 revealed that she overstated refunds and understated tax liability on 134 (82 percent) of these returns which resulted in a tax loss of over $275,000 in the aggregate.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.

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

Attorney General Jeff Sessions today spoke to Customs and Border Protection personnel at the United States-Mexico border in Nogales, Arizona.

In his remarks, the Attorney General announced that he has issued the attached memo to United States Attorneys that mandates the prioritization of criminal immigration enforcement. The memo directs federal prosecutors to focus on particular offenses that, if aggressively charged and prosecuted, can help prevent and deter illegal immigration.

Additionally, the Attorney General revealed that the Department of Justice will add 50 more immigration judges to the bench this year and 75 next year. He also highlighted the Department's plan to streamline its hiring of judges, reflecting the dire need to reduce the backlogs in our immigration courts.

Please find below the full remarks from Attorney General Sessions.

* * *

Remarks Prepared for Attorney General Jeff Sessions

Meeting with Customs and Border Protection Personnel and Immigration Policy Announcement

NOGALES, ARIZONA

Good morning, everyone. Let me start by thanking the brave men and women of Customs and Border Protection, who not only served as our gracious hosts today, but who put themselves in harm’s way each day to secure our borders and protect us.

Here, along our nation’s southwest border, is ground zero in this fight. Here, under the Arizona sun, ranchers work the land to make an honest living, and law-abiding citizens seek to provide for their families.

But it is also here, along this border, that transnational gangs like MS-13 and international cartels flood our country with drugs and leave death and violence in their wake. And it is here that criminal aliens and the coyotes and the document-forgers seek to overthrow our system of lawful immigration.

Let’s stop here for a minute. When we talk about MS-13 and the cartels, what do we mean? We mean criminal organizations that turn cities and suburbs into warzones, that rape and kill innocent citizens and who profit by smuggling poison and other human beings across our borders. Depravity and violence are their calling cards, including brutal machete attacks and beheadings.

It is here, on this sliver of land, where we first take our stand against this filth.

In this fight, I am here to tell you, the brave men and women of Customs and Border Protection: we hear you and we have your back. Under the President’s leadership and through his Executive Orders, we will secure this border and bring the full weight of both the immigration courts and federal criminal enforcement to combat this attack on our national security and sovereignty.

The President has made this a priority — and already we are seeing the results. From January to February of this year, illegal crossings dropped by 40 percent, which was unprecedented. Then, last month, we saw a 72 percent drop compared to the month before the President was inaugurated. That’s the lowest monthly figure for at least 17 years.

This is no accident. This is what happens when you have a President who understands the threat, who is not afraid to publically identify the threat and stand up to it, and who makes clear to law enforcement that the leadership of their country finally has their back. Together, we will drastically reduce the danger posed by criminal aliens, gang members and cartel henchmen.

To that end, the President and I want to do our best to arm you, and the prosecutors who partner with you, with more tools in your fight against criminal aliens. So today, I am pleased to stand here with you and announce new guidance regarding our commitment to criminal immigration enforcement. As we speak, I am issuing a document to all federal prosecutors that mandates the prioritization of such enforcement.

Starting today, federal prosecutors are now required to consider for prosecution all of the following offenses:

• The transportation or harboring of aliens. As you know too well, this is a booming business down here. No more. We are going to shut down and jail those who have been profiting off this lawlessness — people smuggling gang members across the border, helping convicted criminals re-enter this country and preying on those who don’t know how dangerous the journey can be.
• Further, where an alien has unlawfully entered the country, which is a misdemeanor, that alien will now be charged with a felony if they unlawfully enter or attempt enter a second time and certain aggravating circumstances are present.
• Also, aliens that illegally re-enter the country after prior removal will be referred for felony prosecution — and a priority will be given to such offenses, especially where indicators of gang affiliation, a risk to public safety or criminal history are present.
• Fourth: where possible, prosecutors are directed to charge criminal aliens with document fraud and aggravated identity theft — the latter carrying a two-year mandatory minimum sentence.
• Finally, and perhaps most importantly: I have directed that all 94 U.S. Attorneys Offices make the prosecution of assault on a federal law enforcement officer — that’s all of you — a top priority. If someone dares to assault one of our folks in the line of duty, they will do federal time for it.

To ensure that these priorities are implemented, starting today, each U.S. Attorney’s Office, whether on the border or interior, will designate an Assistant United States Attorney as the Border Security Coordinator for their District. It will be this experienced prosecutor’s job to coordinate the criminal immigration enforcement response for their respective offices.

For those that continue to seek improper and illegal entry into this country, be forewarned: This is a new era. This is the Trump era. The lawlessness, the abdication of the duty to enforce our immigration laws and the catch and release practices of old are over.

In that vein, I am also pleased to announce a series of reforms regarding immigration judges to reduce the significant backlogs in our immigration courts.

Pursuant to the President’s executive order, we will now be detaining all adults who are apprehended at the border. To support this mission, we have already surged 25 immigration judges to detention centers along the border. I want to thank personally the judges who answered the call to help us with this new initiative.

In addition, we will put 50 more immigration judges on the bench this year and 75 next year. We can no longer afford to wait 18 to 24 months to get these new judges on the bench. So today, I have implemented a new, streamlined hiring plan. It requires just as much vetting as before, but reduces the timeline, reflecting the dire need to reduce the backlogs in our immigration courts.

With the President’s Executive Orders on Border Security, Transnational Criminal Organizations and Public Safety as our guideposts, we will execute a strategy that once again secures the border; apprehends and prosecutes those criminal aliens that threaten our public safety; takes the fight to gangs like MS-13 and Los Zetas; and makes dismantlement and destruction of the cartels a top priority. We will deploy a multifaceted approach in these efforts: we are going to interdict your drugs on the way in, your money on the way out and investigate and prosecute your trafficking networks to the fullest extent of the law.

Why are we doing this? Because it is what the duly enacted laws of the United States require. I took an oath to protect this country from all enemies, foreign and domestic. How else can we look the parents and loved ones of Kate Steinle, Grant Ronnebeck and so many others in eye and say we are doing everything possible to prevent such tragedies from ever occurring again?

Let me finish where I started, by thanking you — the brave men and women in uniform who are at the front lines of this fight. I know we ask a tremendous amount from all of you, but know this: we have your back, and will do all we can to empower you and support you in your work.

God bless you and thank you.

The Department of Justice warns that unscrupulous return preparers who prepare false tax returns will face civil and criminal enforcement. In the last year, the Department of Justice’s Tax Division filed dozens of civil actions throughout the United States seeking court orders to shut down dishonest return preparers who allegedly prepared false tax returns and in collaboration with U.S. Attorney’s Offices prosecuted dozens of returns preparers who prepared false tax returns.

“Return preparer fraud is a significant drain on the U.S. Treasury, and the Justice Department is committed to working with the Internal Revenue Service (IRS) to bring enforcement actions against unscrupulous return preparers who prepare fraudulent tax returns,” said Acting Assistant Attorney General David A. Hubbert. “The Tax Division will use all available enforcement tools to hold dishonest return preparers accountable and protect the U.S. Treasury from further damage.”

Most tax return preparers provide professional tax service. However, a few set out to use the personal and financial information provided to them to perpetrate fraud or other scams that can hurt their customers. Earlier this year, the IRS warned taxpayers that they are legally responsible for what is on the tax return even if someone else prepared the tax return. Indeed, taxpayers should be vigilant and ensure that their chosen return preparer reports accurate information. The IRS also warned the public about various schemes deployed by dishonest return preparers in its Dirty Dozen Tax Scams. The following is a list of several of those scams with examples of recent enforcement actions taken by the Justice Department.

Falsifying Income to Claim the Earned Income Tax Credit (EITC)

Dishonest return preparers fabricate income on customers’ returns to support a claim for the EITC, which is a credit for working people with low to moderate income and eligibility depends on a variety of factors such as income. For example, in tax year 2016, taxpayers with income between $13,900 and $18,200 were eligible for the maximum EITC. One of the ways to falsely claim the EITC is to fabricate income. For example:

• In Texas, a federal court sentenced a return preparer to 22 months in prison for filing false returns that included fraudulent business income, losses, credits and deductions and sought refunds to which his clients were not entitled;
• In Michigan, the Justice Department filed suit to enjoin a Detroit-area return preparer from preparing tax returns, in part, because she allegedly reported fictitious wages on a customer’s return in order to inflate a claim for the EITC; and
• In Kansas, a return preparer was sentenced to 27 months in prison for filing false returns that included fictitious business income on his clients’ returns in order to qualify them for the EITC.

Falsely Padding Deductions, Such as Charitable Contributions or Business Expenses

Unscrupulous returns preparers report false deductions on customers’ returns in order to reduce the amount of tax a customer owes, often resulting in a higher, but fraudulent, refund. For example:

• In New York, a federal court sentenced a return preparer who fabricated charitable contributions and unreimbursed employee expenses on his customers’ returns to 18 months in prison;
• In North Carolina, a federal court sentenced a return preparer to 18 months in prison for preparing false tax returns that included false unreimbursed employee business expenses; and
• In Florida, a federal court enjoined a West Palm Beach-area return preparer whom the government alleged had claimed false or inflated charitable contributions and office expenses for his customers.

Excessive Claims for Business Credits, such as the Fuel Tax Credit

The Fuel Tax Credit is a business credit generally limited to use of certain types of fuel for off-highway business use. A frivolous claim for the Fuel Tax Credit is typically one for a taxpayer who has not used these types of fuel for off-highway business use. For example:

• In Louisiana, the Justice Department filed suit to enjoin a New Orleans-area return preparer from preparing returns, in part, because she allegedly claimed false Fuel Tax Credits on her customers’ returns; and
• In New York, a federal court sentenced a return preparer to 36 months in prison for preparing false tax returns that included fictitious claims for fuel tax credits for her customer.

Falsely Inflating Refund Claims with False Claims for Education Credits

Education credits are available for certain higher education related expenses. Dishonest preparers claim education credits for customers who have not attended a qualifying educational institution. For example:

• In Mississippi, a federal court enjoined a return preparer that the government alleged made fraudulent claims for educations credits; and
• In California, a return preparer pleaded guilty to preparing false tax returns and admitted that she prepared returns that claimed false education credits.

Return Preparer Fraud

In addition to the tax scams, listed above, unscrupulous return preparers may be prosecuted or enjoined for other types of return preparer fraud. For example:

• In Idaho, a return preparer pleaded guilty to filing false returns without his clients’ knowledge. He included false medical and education expenses to inflate their refunds and then diverted part of the refund into a bank account he controlled;
• In Illinois, a federal court enjoined a return preparer from preparing returns that the government alleged had claimed false filing statuses and dependents for her customers; and
• In Florida, a federal court enjoined the owner of a return preparation business that had at one time stores in Alabama, Florida, Georgia, and North Carolina. The federal court found that the owner and his preparers engaged in a series of widespread fraudulent schemes and ordered the owner to pay the United States more than $950,000 in fees he received from preparing tax returns.

The IRS is reminding taxpayers that there is information available on the IRS’s website regarding the 2017 individual income tax return filing season. The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal return preparers. In addition to tips on choosing a return preparer, the IRS warned taxpayers and tax professionals to be aware of scammers impersonating as the IRS. Earlier this year, the IRS alerted the public and tax professionals to some common scams to be aware of and ways to report suspicious activity.

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

The Justice Department today announced an extensive effort to disrupt and dismantle the Kelihos botnet – a global network of tens of thousands of infected computers under the control of a cybercriminal that was used to facilitate malicious activities including harvesting login credentials, distributing hundreds of millions of spam e-mails, and installing ransomware and other malicious software. 

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Bryan Schroder for the District of Alaska, Assistant Director Scott Smith for the FBI’s Cyber Division and FBI Special Agent in Charge Marlin Ritzman of the AnchorageDivision made the announcement.

“The operation announced today targeted an ongoing international scheme that was distributing hundreds of millions of fraudulent e-mails per year, intercepting the credentials to online and financial accounts belonging to thousands of Americans, and spreading ransomware throughout our networks.   The ability of botnets like Kelihos to be weaponized quickly for vast and varied types of harms is a dangerous and deep threat to all Americans, driving at the core of how we communicate, network, earn a living, and live our everyday lives,” said Acting Assistant Attorney General Blanco.  “Our success in disrupting the Kelihos botnet was the result of strong cooperation between private industry experts and law enforcement, and the use of innovative legal and technical tactics. The Department of Justice is committed to combatting cybercrime, no matter the size or sophistication of the scheme, and to punish those who are engaged in such crimes.”

“Cybercrime is a worldwide problem, but one that infects its victims directly through the computers and personal electronic devices that we use every day,” said Acting U.S. Attorney Bryan Schroder for the District of Alaska.  “Protecting the American people from such a worldwide threat requires a broad-reaching response, and the dismantling of the Kelihos botnet was such an operation.  We are lucky that we have talented FBI agents and federal prosecutors with the skillsets to help protect Americans from this pervasive cybercrime.”

“On April 8, 2017, we started the extraordinary task of blocking malicious domains associated with the Khelios botnet to prohibit further infections,” said FBI Special Agent in Charge Ritzman. “This case demonstrates the FBI’s commitment to finding and eradicating cyber threats no matter where they are in the world.”

Kelihos malware targeted computers running the Microsoft Windows operating system.  Infected computers became part of a network of compromised computers known as a botnet and were controlled remotely through a decentralized command and control system.  According to the civil complaint, Peter Yuryevich Levashov allegedly operated the Kelihos botnet since approximately 2010.  The Kelihos malware harvested user credentials by searching infected computers for usernames and passwords and by intercepting network traffic.  Levashov allegedly used the information gained from this credential harvesting operation to further his illegal spamming operation which he advertised on various online criminal forums.  The Kelihos botnet generated and distributed enormous volumes of unsolicited spam e-mails advertising counterfeit drugs, deceptively promoting stocks in order to fraudulently increase their price (so-called “pump-and-dump” stock fraud schemes), work-at-home scams, and other frauds.  Kelihos was also responsible for directly installing additional malware onto victims’ computers, including ransomware and malware that intercepts users’ bank account passwords.
            
As with other botnets, Kelihos is designed to operate automatically and undetected on victims’ computers, with the malicious code secretly sending requests for instructions to the botnet operator. In order to liberate the victim computers from the botnet, the United States obtained civil and criminal court orders in the District of Alaska.  These orders authorized measures to neutralize the Kelihos botnet by (1) establishing substitute servers that receive the automated requests for instructions so that infected computers no longer communicate with the criminal operator and (2) blocking any commands sent from the criminal operator attempting to regain control of the infected computers.

In seeking authorization to disrupt and dismantle the Kelihos botnet, law enforcement obtained a warrant pursuant to recent amendments to Rule 41 of the Federal Rules of Criminal Procedure.  A copy of this warrant along with the other court orders are produced below.   The warrant obtained by the government authorizes law enforcement to redirect Kelihos-infected computers to a substitute server and to record the Internet Protocol addresses of those computers as they connect to the server.  This will enable the government to provide the IP addresses of Kelihos victims to those who can assist with removing the Kelihos malware including internet service providers.  

The efforts to disrupt and dismantle the Kelihos botnet were led by the FBI’s Anchorage Office and New Haven Office; Senior Counsel Ethan Arenson and Harold Chun, and Trial Attorney Frank Lin of the Computer Crime and Intellectual Property Section; and Assistant U.S. Attorneys Yvonne Lamoureux and Adam Alexander of the District of Alaska.  Critical assistance was also provided by foreign partners, and invaluable technical assistance was provided by Crowd Strike and The Shadow server Foundation in executing this operation.

The details contained in the civil complaint and related pleadings are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

The Government has and will continue to share samples of the Kelihos malware with the internet security community so that antivirus vendors can update their programs to detect and remove Kelihos.  A number of free and paid antivirus programs are already capable of detecting and removing Kelihos, including the Microsoft Safety Scanner, a free product.

The documents filed by the Government as well as the court orders entered in this case are available online at the following web address: www.justice.gov/opa/documents-and-resources-related-us-v-peter-yuryevich-levashov

FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of 14 new immigration judges. Chief Immigration Judge MaryBeth Keller presided over the investiture during a ceremony held April 7, 2017, at EOIR headquarters in Falls Church, Va.

After a thorough application process, former Attorney General Loretta E. Lynch appointed Justin F. Adams, Edward M. Barcus, Paula J. Donnolo, Lauren T. Farber, Paul M. Habich, Cara O. Knapp, Maria Lurye, Anthony E. Maingot, Sarah B. Mazzie, Matthew E. Morrissey, An Mai Nguyen, Sean D. Santen, Stuart A. Siegel, and Gwendylan E. Tregerman to their new positions.

“We are happy to welcome these 14 appointees to our growing immigration judge corps,” said Keller. “These new immigration judges will enhance the agency’s ability to process detained cases, our highest priority, while also strengthening the agency’s capacity to address its broader pending caseload.”

Biographical information follows.

Justin F. Adams, Immigration Judge, San Antonio Immigration Court

Former Attorney General Loretta E. Lynch appointed Justin F. Adams to begin hearing cases in April 2017. Judge Adams earned a Bachelor of Science degree in 1999 from the U.S. Air Force Academy and a Juris Doctor in 2004 from Suffolk University Law School. He served as deputy chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security from February 2011 to March 2017, and as an assistant chief counsel from 2007 to 2011. From 2004 through 2007, he was an attorney for the U.S. Air Force. Judge Adams is a member of the State Bar of Texas.

Edward M. Barcus, Immigration Judge, Imperial Immigration Court

Former Attorney General Loretta E. Lynch appointed Edward M. Barcus to begin hearing cases in April 2017. Judge Barcus earned a Bachelor of Arts degree in 1984 from Austin College and a Juris Doctor in 1988 from the University of Texas School of Law. He has been the interim executive director of Iron Gate in Tulsa, Okla., since November 2016. From 2015 through 2016, he was a conflict consultant for Concord Consultants Inc. From 2012 through 2015, he was a district judge for the Tulsa County District Court. From 2003 to 2012, he was a special judge for the State of Oklahoma, serving as Vice Chief Judge of the Family Division, Tulsa County District Court, from 2010 to 2012. From 2000 through 2003, he served as the first Family Court Referee for Tulsa County. Judge Barcus is a member of the Oklahoma Bar.

Paula J. Donnolo, Immigration Judge, New York City Immigration Court

Former Attorney General Loretta E. Lynch appointed Paula J. Donnolo to begin hearing cases in April 2017. Judge Donnolo earned a Bachelor of Arts degree in 1968 from St. John’s University and a Juris Doctor in 1980 from New York Law School. From 2001 to January 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in New York, N.Y. From 1991 through 2001, she served as general corporate counsel for ATC Real Estate Development Corporation. From 1981 to 1983, she was a litigation attorney at the Teamster Local 237 Legal Services Plan. Judge Donnolo is a member of the New York State Bar.

Lauren T. Farber, Immigration Judge, Varick Street Immigration Court

Former Attorney General Loretta E. Lynch appointed Lauren T. Farber to begin hearing cases in April 2017. Judge Farber earned a Bachelor of Arts degree in 1999 from Washington University in St. Louis and a Juris Doctor in 2003 from the American University Washington College of Law. From 2010 through 2017, she served as a senior attorney for the Office of the Chief Counsel (OCC), Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS) in New York, N.Y. From 2003 to 2010, she served as an assistant chief counsel for OCC, ICE, DHS. Judge Farber is a member of the New York and New Jersey State Bars.

Paul M. Habich, Immigration Judge, Imperial Immigration Court

Former Attorney General Loretta E. Lynch appointed Paul M. Habich to begin hearing cases in April 2017. Judge Habich earned a Bachelor of Arts degree in 2004 from The University of Wisconsin–Madison and a Juris Doctor in 2008 from the Arizona State University Sandra Day O’Connor College of Law. From June 2009 to March 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security. From 2008 to 2009, he was an associate attorney with the law firm Lathrop & Clark LLP, in Madison, Wis. From 1996 through 2000, he served in the U.S. Marine Corps. Judge Habich is a member of the State Bar of Wisconsin.

Cara O. Knapp, Immigration Judge, Florence Immigration Court

Former Attorney General Loretta E. Lynch appointed Cara O. Knapp to begin hearing cases in April 2017. Judge Knapp earned a Bachelor of Arts degree in 1997 from the University of Arizona and a Juris Doctor in 2001 from the Arizona State University Sandra Day O’Connor College of Law. From September 2002 through March 2017, she served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security. From 2001 to 2002, she clerked for Arizona Supreme Court Justice Michael D. Ryan. Judge Knapp is a member of the State Bar of Arizona.

Maria Lurye, Immigration Judge, New York City Immigration Court

Former Attorney General Loretta E. Lynch appointed Maria Lurye to begin hearing cases in April 2017. Judge Lurye earned a Bachelor of Science degree in 2001 from Rutgers University–New Brunswick and a Juris Doctor in 2007 from the Rutgers School of Law–Newark. From 2008 to January 2017, she served as an assistant chief counsel for the Office of the Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in New York, N.Y. She was previously an associate attorney with the Kuba Law Firm in New York City. Judge Lurye is a member of the New Jersey and New York State Bars.

Anthony E. Maingot, Immigration Judge, Miami Immigration Court

Former Attorney General Loretta E. Lynch appointed Anthony E. Maingot to begin hearing cases in April 2017. Judge Maingot earned a Bachelor of Arts degree in 1981 from the University of Texas at Austin and a Juris Doctor in 1991 from The University of Miami School of Law. From September 2008 through March 2017, he served as an assistant U.S. Attorney for the District of Arizona, Tucson, Department of Justice. From 1997 to January 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in Miami, Fla. From 1991 through 1997, he served as an assistant public defender in the Miami-Dade County Public Defender’s Office. Judge Maingot is a member of the Florida Bar.

Sarah B. Mazzie, Immigration Judge, Miami Krome Immigration Court

Former Attorney General Loretta E. Lynch appointed Sarah B. Mazzie to begin hearing cases in April 2017. Judge Mazzie earned a Bachelor of Science degree in 2002 from The University of Wisconsin–Madison and a Juris Doctor in 2006 from the DePaul University College of Law. From 2014 to March 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Fort Snelling, Minn., and from 2011 to 2014 in Lumpkin, Ga. Judge Mazzie practiced law in Madison, Wis., as a partner in her own firm Gennerman, Mazzie-Briscoe Law Group from 2008 through 2011, and as an associate attorney with Sipsma, Hahn & Brophy from 2007 to 2008. From 2006 through 2007, she served as an immigration attorney for the Wisconsin Coalition Against Domestic Violence. Judge Mazzie is a member of the State Bar of Wisconsin.

Matthew E. Morrissey, Immigration Judge, Omaha Immigration Court

Former Attorney General Loretta E. Lynch appointed Matthew E. Morrissey to begin hearing cases in April 2017. Judge Morrissey earned a Bachelor of Arts degree in 2001 from Saint Louis University and a Juris Doctor in 2004 from the Creighton University School of Law. From 2008 to March 2017, he served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Omaha, Neb. From January 2004 to 2008, he was an associate attorney with Chandra Law Office. Judge Morrissey is a member of the Nebraska State Bar and the Missouri Bar.

An Mai Nguyen, Immigration Judge, Los Angeles Immigration Court

Former Attorney General Loretta E. Lynch appointed An Mai Nguyen to begin hearing cases in April 2017. Judge Nguyen earned a Bachelor of Arts degree in 1996 from the University of Southern California and a Juris Doctor in 2000 from Southwestern Law School. From March 2007 to March 2017, she served as an assistant chief counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Las Vegas, Nev. During this post, she served as special assistant U.S. attorney for the District of Nevada from 2009 to 2011. From 2000 through 2003, she served as an assistant district counsel for the former Immigration and Naturalization Service, Department of Justice, in Los Angeles, entering on duty through the Attorney General’s Honors Program. Judge Nguyen is a member of the State Bar of California.

Sean D. Santen, Immigration Judge, Boston Immigration Court

Attorney General Loretta E. Lynch appointed Sean D. Santen to begin hearing cases in April 2017. Judge Santen earned a Bachelor of Arts degree in 2001 from the University of Illinois at Urbana–Champaign, a Master of Arts in 2003 from American University and a Juris Doctor in 2006 from the Indiana University Maurer School of Law. From September 2008 to March 2017, he served as an assistant regional counsel at the Office of General Counsel, Social Security Administration, in Boston, Mass. From 2006 through 2008, he served as a Judicial Law Clerk and Attorney Advisor for the San Antonio Immigration Court, Executive Office for Immigration Review, Department of Justice, entering on duty through the Attorney General’s Honors Program. Judge Santen is a member of the Massachusetts Bar.

Stuart A. Siegel, Immigration Judge, Miami Immigration Court

Former Attorney General Loretta E. Lynch appointed Stuart A. Siegel to begin hearing cases in April 2017. Judge Siegel earned a Bachelor of Arts degree in 1984 from the University of Michigan and a Juris Doctor in 1987 from the Touro College Jacob D. Fuchsberg Law Center. From December 1997 to March 2017, he served as an Assistant Chief Counsel for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security in Pompano Beach, Fla. From 1994 to 1997 he was an associate attorney with Adorno & Zeder, PA, in West Palm Beach, Fla. From 1992 to 1994 he served as an administrative law judge for the New York City Department of Transportation. Prior to that role, he was a solo practitioner at the law offices of Stuart A. Siegel, Esq. Judge Siegel also served as assistant district attorney for Nassau County, N.Y., from 1987 to 1992. He was commissioned into the U.S. Army Reserves, Judge Advocate General in September 1994, and continues to serve. Judge Siegel is a member of the Florida Bar and the New York State Bar.

Gwendylan E. Tregerman, Immigration Judge, Atlanta Immigration Court

Former Attorney General Loretta E. Lynch appointed Gwendylan E. Tregerman to begin hearing cases in April 2017. Judge Tregerman earned a Bachelor of Arts degree from Stony Brook University in 1992 and a Juris Doctor in 1996 from the Boston University School of Law. From August 2002 to March 2017, she worked for the Office of Chief Counsel, Immigration and Customs Enforcement, Department of Homeland Security, in Boston, Mass., serving as deputy chief counsel from 2013 to 2017, senior attorney from 2007 to 2013, and assistant chief counsel from 2002 to 2007. Prior to these roles, she was a staff attorney for the U.S. Court of Appeals for the Eleventh Circuit in Atlanta, Ga., from 1997 to 2000, and served as acting supervisory staff attorney from 2000 to 2001. Judge Tregerman is a member of the New York State Bar, the Massachusetts Bar, and the State Bar of Georgia.

As part of the Department’s efforts under the Task Force on Crime Reduction and Public Safety (Task Force), Attorney General Jeff Sessions today announced a series of actions the Department will take to advance forensic science and help combat the rise in violent crime.

These actions are being undertaken on the expiration of the National Commission on Forensic Science (NCFS) and will increase the capacity of forensic science providers, improve the reliability of forensic analysis, and permit reporting of forensic results with greater specificity. The Task Force’s Subcommittee on Forensics will spearhead the development of that strategic plan.

“The availability of prompt and accurate forensic science analysis to our law enforcement officers and prosecutors is critical to integrity in law enforcement, reducing violent crime and increasing public safety,” said Attorney General Sessions. “As we decide how to move forward, we bear in mind that the Department is just one piece of the larger criminal justice system and that the vast majority of forensic science is practiced by state and local forensic laboratories and is used by state and local prosecutors. We applaud the professionalism of the National Commission on Forensic Science and look forward to building on the contributions it has made in this crucial field.”

The following three actions were announced today:

1. In the coming weeks, the Department will appoint a Senior Forensic Advisor to interface with forensic science stakeholders and advise Department leadership;

2. The Department will conduct a needs assessment of forensic science laboratories that examines workload, backlog, personnel and equipment needs of public crime laboratories and the needs of academic and non-traditional forensic science practitioners, and issue a report to Congress; and

3. The Department will publish a notice in the Federal Register seeking public comment on how the Department should move forward to strengthen the foundations of forensic science and improve the operations and capacity of forensic laboratories. The notice will remain open until June 9, 2017.

The Attorney General will continue to receive and act upon recommendations from the Task Force as they become available.

The Justice Department today announced that its Civil Rights Division is partnering with the Federal Emergency Management Agency’s U.S. Fire Administration on this year’s Arson Awareness Week, May 7-13, with a focus on Preventing Arson at Houses of Worship.

There were an average of 103 arsons of houses of worship per year from 2000 to 2015.  Half of all reported fires at houses of worship turn out to involve arson.

The Department of Justice enforces a number of federal statutes protecting places of worship from attack, including 18 U.S.C. § 247, known as the Church Arson Prevention Act, which was passed in the 1990s in response to a sharp increase in church arsons.  That law makes it a federal crime to target religious property because of the religion or race of the congregation.  In February of this year, the Department indicted an Idaho man under § 247 alleging that he set fire to a Catholic Church in Bonner’s Ferry in April 2016.  In 2013, an Indiana man was sentenced to 20 years imprisonment for setting a fire at the Islamic Center of Greater Toledo.

FEMA and the Department of Justice have produced a number of materials to help congregations, community organizations and local law enforcement and fire safety officials to increase arson awareness and hold events highlighting proactive steps that can be taken to try to reduce house of worship arson.  These materials are available at the Arson Awareness Week homepage, www.usfa.fema.gov/aaw.

“Arson against houses of worship is a serious crime that the Department of Justice is committed to prosecuting to the fullest extent of the law,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division.  “But our role as prosecutors, while critically important, only comes after the fact when the damage is already done.  That is why we encourage communities and local officials to take proactive steps to increase public awareness of the problem and measures that can be taken to reduce the likelihood of being a victim of house of worship arson.”

Further information about hate crimes, including arsons against on places of worship, is available at the Civil Rights Division hate crimes page, https://www.justice.gov/crt/hate-crimes-0.

Attorney General Sessions released the following statement on the District Court’s entry of the Baltimore consent decree:

“Today, a federal court entered a consent decree that will require the court and a highly-paid monitor to govern every detail of how the Baltimore Police Department functions for the foreseeable future. This decree was negotiated during a rushed process by the previous administration and signed only days before they left office. While the Department of Justice continues to fully support police reform in Baltimore, I have grave concerns that some provisions of this decree will reduce the lawful powers of the police department and result in a less safe city.

“Make no mistake, Baltimore is facing a violent crime crisis.

“Baltimore has seen a 22 percent increase in violent crime in just the last year. While arrests in the city fell 45 percent based on some of these ill-advised reforms, homicides rose 78 percent and shootings more than doubled. Just in 2017, we’ve seen homicides are up another 42 percent compared to this time last year. In short, the citizens of Baltimore are plagued by a rash of violent crime that shows no signs of letting up.

“The mayor and police chief in Baltimore say they are committed to better policing and that there should be no delay to review this decree, but there are clear departures from many proven principles of good policing that we fear will result in more crime. The citizens of Baltimore deserve to see a real and lasting reduction in the fast-rising violent crime threatening their city.

“The Department of Justice stands ready to work with Baltimore to fight violent crime and improve policing in the city.”

The Department of Justice today recognized 12 individuals and teams for their exceptional service to crime victims and innovative work to support victims’ rights. The award recipients were honored during the annual National Crime Victims’ Service Awards Ceremony.

“During this year’s National Crime Victims’ Rights Week, the Department of Justice is proud to pay tribute to the outstanding contributions of the people and groups helping crime victims, reducing crime and improving public safety,” said Acting Associate Attorney General Jesse Panuccio. “We are inspired by their lives, and we are honored to stand with them.”

The awardees were selected from public nominations in nine categories, including federal service, special courage, public policy and victim services. The Office for Victims of Crime, a component of the Department’s Office of Justice Programs, leads communities across the country in observing National Crime Victims’ Rights Week. President Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, calling for greater sensitivity to the rights and needs of victims. This year’s observance takes place April 2-8 and features the theme Strength. Resilience. Justice.

“These remarkable individuals and teams demonstrate the tremendous difference a small group of dedicated, inspired and courageous people can make in the lives of victims,” said Acting Assistant Attorney General Alan R. Hanson for the Office of Justice Programs. “The Department of Justice is proud to honor them and build on their good work through the Department’s Office of Victims of Crime.”

Following is a list of the award recipients:

• The National Crime Victim Service Award honors extraordinary efforts to provide direct services to crime victims.

Recipient: The Harry and Jeanette Weinberg Center for Elder Abuse Prevention, Riverdale, New York

• The Crime Victims’ Rights Award recognizes those whose efforts to advance or enforce victims’ rights benefit victims at the state, tribal or national level.

Recipient: Office of Victim Services Agency Support Team, Office of the Arizona Attorney General, Phoenix, Arizona

• The Allied Professional Award recognizes individuals working outside the victim assistance field for their service to victims.

Recipient: Captain Michael Holt, Jackson Police Department, Jackson, Tennessee

• The Award for Professional Innovation in Victim Services recognizes a program, organization or individual who expands the reach of victims’ rights and services.

Recipient: Healing Hurt People, Philadelphia, Pennsylvania

• The Ronald Wilson Reagan Public Policy Award honors leadership, innovation and vision that lead to noteworthy changes in public policy on behalf of crime victims.

Recipient: Kendall L. Carver, Phoenix, Arizona

Recipient: Diane Moyer, Esq., Harrisburg, Pennsylvania

Recipient: The late Teresa P. Scalzo, Alexandria, Virginia

• The Volunteer for Victims Award recognizes individuals who serve victims without compensation.

Recipient: BastaYaPR, Inc., Guaynabo, Puerto Rico

Recipient: Linda D. Axley, Tahlequah, Oklahoma

• The Federal Service Award recognizes federal agency personnel for service to victims of federal, tribal or military crimes.

Recipient: The Blackwater Victim Services Team, Washington, D.C.

• The Tomorrow’s Leaders Award recognizes youth up to 24 years old for efforts to support crime victims.

Recipient: Maya Weinstein, Washington, D.C.

• The Special Courage Award honors extraordinary bravery in the aftermath of a crime or a courageous act on behalf of a victim or potential victim.

Recipient: Laura L. Dunn, Esq., Washington, D.C.

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

A member of the Almighty Imperial Gangsters Nation was sentenced to 300 months in prison today in Southern District of Florida for conspiracy to conduct and participate in the affairs of the gang through a pattern of racketeering activity.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Field Division and Special Agent in Charge George L. Piro of the FBI’s Miami Field Division made the announcement.

Miguel Pedraza, aka “Fuzzy,” 35, of Chicago, was sentenced to 300 months in prison for his involvement in the RICO conspiracy before U.S. District Judge Cecilia M. Altonaga of the Southern District of Florida.

According to Pedraza’s plea agreement, the Almighty Imperial Gangsters Nation is a violent street gang that originated in Chicago in the 1980s and expanded to other areas of the country, including Indiana and South Florida. Members and associates of the Almighty Imperial Gangsters Nation are responsible for numerous acts of violence, including murder, attempted murder, aggravated battery, aggravated assault, narcotics distribution and other criminal activities, occurring in Illinois, Indiana and the South Florida area and elsewhere.

According to admissions made in connection with his plea, Pedraza has been a member of the Almighty Imperial Gangsters Nation since 1997 and that for a period of time, he took over the street leadership of the gang’s activities in the Drake and Courtland area of Chicago, Illinois. Pedraza admitted that while in Chicago on Aug. 3, 2002, he shot and killed another individual who Pedraza believed was a rival gang member. Pedraza also admitted that he received stolen guns from other Almighty Imperial Gangsters Nation members, distributed cocaine and heroin to other members, and earned money for other members and regularly financed activities through funds derived from narcotics distribution of controlled substances.

Pedraza is the last of 16 defendants to be sentenced in this case. Co-defendants Victor Emmanuel Lopez, aka “Magic,” Jose Ivan Herrera, “Spyro,” Ramon Madruga, aka “Porky,” Alex Enrique Somarriba, “A-Rock,” Robert Martinez, aka “Trap,” Santiago Salcedo, aka “Chino,” Rogelio Perez, aka “Popeye,” Carlos Mena, aka “Rollo,” Piero Benitez, aka “Bam Bam,” Eddie Camacho, aka “NeNe,” Carlos Gomez, aka “Lokes,” Guillermo Sinisterra, aka “Memo,” Elio Quesada, aka “Whiz,” and Brandon Foeman, aka “Drama.”

The FBI field offices in Miami and Chicago, along with the Miami-Dade Police Department; the City of Miami Police Department; the Chicago Police Department; the Franklin Park, Illinois, Police Department and the East Chicago Police Department investigated the case, with assistance from the U.S. Attorney’s Offices for Southern District of Florida, the Northern District of Indiana and the Northern District of Illinois, the FBI and ATF field offices in Merrillville, Indiana, the State Attorney’s Offices of Miami-Dade and Broward counties in Florida and the State Attorney’s Offices in Cook and DuPage Counties in Illinois, as well as the Florida Department of Corrections and the Broward County Sheriff’s Office.

Trial Attorneys Joseph A. Cooley, Rebecca A. Staton and Nicholas J. Regalia of the Criminal Division’s Organized Crime and Gang Section and the Forfeiture Section of the U.S. Attorney’s Office for the Southern District of Florida prosecuted the case, with the assistance of the U.S. Attorney’s Office for the Northern District of Indiana and the State Attorneys’ Offices for Miami-Dade and Broward counties.

The Justice Department reached an agreement today with Brickell Financial Services Motor Club, Inc., d/b/a Road America Motor Club, Inc. (Road America), headquartered in Miami, Florida. The settlement resolves the department’s investigation into whether the company violated the Immigration and Nationality Act (INA) by discriminating against work-authorized immigrants when verifying their work authorization.

The department concluded, based on its investigation, that Road America routinely requested that lawful permanent residents show their Permanent Resident Cards to prove their work authorization but did not request specific documents from U.S. citizens. Lawful permanent residents often have the same work authorization documents available to them as U.S. citizens, and may choose acceptable documents other than a Permanent Resident Card to prove they are authorized to work. The investigation further revealed that Road America required lawful permanent resident employees to re-establish their work authorization when their Permanent Resident Cards expired, even though federal rules prohibit this practice. The antidiscrimination provision of the INA prohibits employers from subjecting employees to unnecessary documentary demands based on the employees’ citizenship or national origin.

“When verifying the work authorization of employees, employers may not erect unnecessary barriers based on employees’ citizenship or national origin,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “Employers must ensure they are aware of their legal obligations to avoid discrimination, and we applaud Road America for committing itself to do so through this settlement.”

Under the settlement, Road America will pay a civil penalty of $34,200 and pay $1,044 to compensate a worker who lost wages due to its unfair documentary practices. Road America has also agreed to post notices informing workers about their rights under the INA’s antidiscrimination provision, train their human resources personnel, and be subject to departmental monitoring and reporting requirements.

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

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

Applicants or 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, should contact IER’s worker hotline for assistance.

WASHINGTON, D.C. – El Departamento de Justicia llegó a un acuerdo hoy con Brickell Financial Services Motor Club, Inc., cuyo nombre comercial es Road America Motor Club, Inc. («Road America»), con sede en Miami, Florida. El acuerdo resuelve la investigación que el Departamento llevó a cabo para determinar si la empresa había violado la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a inmigrantes con autorización para trabajar a la hora de verificar dicha autorización para trabajar.

El Departamento concluyó, con base en su investigación, que Road America había solicitado de forma rutinaria a residentes permanentes legales que mostraran su tarjeta de residencia permanente para demostrar su autorización para trabajar mientras que no pidieron documentos específicos a ciudadanos estadounidenses. En muchos casos los residentes permanentes legales y ciudadanos estadounidenses disponen de los mismos documentos de autorización para trabajar, y los residentes permanentes legales pueden elegir otros documentos aceptables aparte de su tarjeta de residencia permanente para demostrar que tienen autorización para trabajar. Más aún, la investigación reveló que Road America había obligado a empleados que son residentes permanentes legales a restablecer su autorización para trabajar al vencerse sus tarjetas de residencia permanente, aunque los reglamentos federales prohíben prácticas de esa clase. La disposición antidiscriminatoria de la INA prohíbe a los empleadores someter a sus empleados a requisitos documentales innecesarios por motivos de su ciudadanía o nacionalidad de origen.

«Al comprobar la autorización que sus empleados tienen para trabajar, los empleadores no deben imponer barreras innecesarias por motivos de la ciudadanía o nacionalidad de origen de tales individuos», afirmó el Fiscal General Auxiliar en funciones, Tom Wheeler, de la División de Derechos Civiles. «Los empleadores deben asegurarse de que están al tanto de sus responsabilidades y obligaciones legales para evitar la discriminación, y aplaudimos a Road America por comprometerse a hacerlo a través de este acuerdo.».

Conforme el acuerdo, Road America pagará sanciones civiles de $34.200 y pagará $1.044 para compensar a un trabajador que perdió salario a causa de las prácticas documentales injustas. Asimismo, Road America ha acordado publicar avisos para informarles a los trabajadores acerca de sus derechos bajo la disposición antidiscriminatoria de la INA, capacitar a su personal de recursos humanos y someterse a los requisitos de supervisión del Departamento.

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 con la 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.

SETTLEMENT AGREEMENT

In honor of National Crime Victims’ Rights Week, Acting Assistant Attorney General for the Criminal Division Kenneth A. Blanco announced today that the Criminal Division has made payments totaling more than $800 million from the U.S. Victims of State Sponsored Terrorism Fund (the Fund) to compensate thousands of U.S. victims of international acts of terrorism by state sponsors of terrorism. These individuals, many of whom have been waiting years for compensation, include the Iran hostages held from 1979 to 1981 and their spouses and children, and victims of the embassy bombings in Kenya and Tanzania, the attack on the U.S.S. Cole, and other international terrorist incidents. The more than $800 million in payments have been issued to victims, their family members and survivors. The Fund will continue making payments in the coming weeks that will bring the total to over $1 billion.

The Fund was established by legislation in 2015 and is administered by the Money Laundering and Asset Recovery Section in the Criminal Division. Congress authorized the department to deposit certain forfeiture proceeds, penalties and fines into the Fund if they come from civil and criminal matters involving prohibited transactions with state sponsors of terrorism. Originally, Congress provided $1.025 billion for payments to victims, and recent Justice Department prosecutions and U.S. government enforcement actions have increased the total available for initial payments to more than $1.1 billion.

On May 17, 2016, the Attorney General appointed Kenneth R. Feinberg, Esq., as the Special Master to administer the Fund with the assistance of the Money Laundering and Asset Recovery Section, Criminal Division. The Special Master rendered 2,332 eligibility decisions by December 2016, and in February 2017, the department informed all eligible claimants of their initial payment amounts.

“The Criminal Division aggressively prosecutes terrorist financiers and others who abuse the U.S. financial system to commit crimes, and uses all available tools, including civil and criminal forfeiture, to seize their assets and illicit funds,” said Acting Assistant Attorney General Blanco. “Through this program, we will continue to be resolute in our commitment to victims of state sponsored terrorism and aggressively search for illicit funds and assets to compensate them for their losses. I am so proud of the wonderful work done by the Criminal Division and Special Master to vindicate the rights of these victims.”

According to the Special Master, “[s]ince the Act’s enactment in December 2015, the Department of Justice team administering the Fund has been extremely busy. The team worked expeditiously to set up the compensation program by publishing its Federal Register notice and establishing a claims processing system, adjudicating all claims and issuing eligibility decisions and award payments to innocent victims of state-sponsored terrorism who have been waiting a long time for justice. I am very pleased with the accomplishments of the entire Fund team, who undertook their work in meeting statutory deadlines with deep commitment and compassion for those whose lives were forever changed by events of international terrorism. With this strong foundation, I know the Fund team will continue to work hard and carry out its mission in the upcoming years.”

The Fund continues to accept applications and to collect deposits for future payments as authorized by the Act for the ten-year life of the Fund. Victims and their family members can be assured that their claims will be processed promptly, fairly and transparently. More information about the Fund’s compensation to victims of state sponsored terrorism is available on the Fund’s website at www.usvsst.com, such as application materials, frequently asked questions (FAQs) and publications including the Federal Register notice and a report to Congress. Further questions may be directed to the Criminal Division’s Money Laundering and Asset Recovery Section.

Every year in April, the Justice Department’s Office for Victims of Crime (OVC) helps lead communities throughout the country in their annual observances of National Crime Victims' Rights Week (NCVRW), which runs from April 2–8, 2017. This year’s theme – Strength. Resilience. Justice. – reflects a vision for the future in which all victims are strengthened by the response they receive, organizations are resilient in response to challenges and communities are able to seek collective justice and healing. Further information on this event can be found on the Office of Justice Programs’ website at https://ovc.ncjrs.gov/ncvrw2017/.

Attorney General Jeff Sessions today issued the attached memo to 94 U.S. Attorney’s Offices and Department of Justice component heads providing an update on the Department’s Task Force on Crime Reduction and Public Safety. 
 
As part of that update, the Attorney General announced the creation of Task Force subcommittees that will focus on a variety of issues including developing violent crime reduction strategies, supporting prevention and re-entry efforts, updating charging and sentencing policies, reviewing asset forfeiture guidance, reducing illegal immigration and human trafficking, combatting hate crimes, and evaluating marijuana enforcement policy.

Alfredo Beltran Leyva, also known as Mochomo, one of the leaders of the Beltran Leyva Organization, a Mexican drug-trafficking cartel responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States, was sentenced today to life in prison for his participation in an international narcotics trafficking conspiracy.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Assitant Director Stephen E. Richardson of the FBI’s Criminal Investigative Division, Special Agent in Charge James J. Hunt of the Drug Enforcement Administration (DEA) New York Division and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.

“For well over a decade, the defendant commanded a major Mexican drug trafficking organization that imported ton-quantities of cocaine and methamphetamine into the United States and led a campaign of violence and fear that gripped communities across North America,” said Acting Assistant Attorney General Blanco. “Through close cooperation with our foreign counterparts, the United States brought this international drug-trafficker to justice, significantly disrupted the flow of narcotics into the United States and stemmed the tide of destruction wrought by this violent cartel.”

“Alfredo Beltran Leyva spent decades at the head of a criminal organization responsible for trafficking large amounts of cocaine and methamphetamine into the U.S.,” said Assistant Director Richardson. “Today’s sentencing marks an end to Alfredo Beltran Leyva's reign of terror, and demonstrates that the FBI and our law enforcement partners around the globe will aggressively pursue and bring justice to those individuals who use violence and intimidation to threaten our communities.”

“Alfredo Beltran Leyva is one of the ‘Goliaths’ of Mexican drug traffickers known for his savage business tactics and responsible for flooding the United States with illegal drugs,” said Special Agent in Charge Hunt. “This sentencing exemplifies law enforcement’s commitment to bringing justice to the victims of drug abuse through successful prosecutions of the highest echelon of drug traffickers.”

“Today’s sentencing dealt a major blow to the Beltran Leyva Organization by taking out one of its leaders. It is with tireless joint enforcement efforts like this one that we can remove drugs from America’s streets and make our communities that much safer,” said HSI Executive Associate Director Edge. “HSI and our law enforcement partners, both in the United States and around the world, will not waver in our resolve to dismantle and cripple violent drug organizations, and remove their leadership.”

Beltran Leyva, 46, was indicted on Aug. 24, 2012, for conspiracy to distribute cocaine and methamphetamine for importation into the United States. The defendant was extradited from Mexico to the United States on Nov. 15, 2014, and pleaded guilty on Feb. 23, 2016, before U.S. District Judge Richard J. Leon of the District of Columbia. Judge Leon imposed today’s sentence and ordered Beltran Leyva to forfeit $529,200,000.

In court, Beltran Leyva admitted that he was part of a conspiracy to import large quantities of drugs into the United States. At his plea hearing and during pre-trial conferences, the government proffered evidence that from the early 1990s until his indictment in August 2014, the defendant was a leader of the Beltran Leyva Organization, a global criminal enterprise responsible for importing multi-ton quantities of cocaine and methamphetamine into the United States. Beltran Leyva admitted that he and his organization obtained tonnage quantities of cocaine from South American suppliers, which the defendant and his organization helped finance and which were transported to Mexico via air, land and sea. Once the cocaine reached Mexico, the defendant’s organization transported it to key points in Mexico, including Culiacan, Sinaloa, which was also the central point for the collection of billions of dollars from drug trafficking proceeds in the United States. At sentencing, the government’s evidence showed that the organization used weapons and carried out acts of violence, including murders, kidnappings, tortures and violent collections of drug debts, in order to sustain the drug importation operation.

On May 30, 2008, the United States added the Beltran Leyva Organization to the Department of Treasury’s Office of Foreign Asset Control’s Specially Designated Nationals and Blocked Persons list, pursuant to the Foreign Narcotics Kingpin Designation Act. On Aug. 20, 2009, the United States specifically designated Beltran Leyva as a specially-designated drug trafficker under the same act.

The FBI’s El Paso, Texas, Division led the investigation in partnership with the DEA’s New York Division and HSI’s Special Agent in Charge, New York office as part of the Organized Crime Drug Enforcement Task Force. Acting Deputy Chief Amanda Liskamm and Trial Attorney Adrian Rosales of the Criminal Division’s Narcotic and Dangerous Drugs Section and Assistant U.S. Attorneys Marcia M. Henry and Andrea Goldbarg of the Eastern District of New York prosecuted the case. The Criminal Division’s Office of International Affairs provided valuable assistance in the case.

William A. Dennis, 56, of Port Richey, Florida, pleaded guilty in the U.S. District Court for the Middle District of Florida, Tampa Division, to one count of conspiring with others to threaten, intimidate, and interfere with an interracial couple’s enjoyment of their housing rights, announced Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division and Acting U.S. Attorney W. Stephen Muldrow for the Middle District of Florida.

According to court documents, in September and October 2012, Dennis was living on Seward Drive in Port Richey in a predominantly white community.  After an interracial couple moved next door, Dennis joined others in harassing the African-American neighbor with racial slurs and derogatory statements. 

On Halloween night, Dennis attended a party at a neighbor’s house, where several Seward Drive residents decided to burn an over six-foot tall cross in the front yard of the interracial couple in order to intimidate them and force them to move from the residence.  Using wood and tools from the host of the Halloween party, Dennis and his co-conspirators constructed a wooden cross, and Dennis poured gasoline on the cross.  Dennis and a co-conspirator carried the cross to the victims’ front yard, leaned it against their mailbox, and Dennis instructed the co-conspirator to set the cross on fire.

“The defendant and his co-conspirators’ racially-fueled actions to threaten and intimidate a couple in their own home and neighborhood are reprehensible and will not be tolerated in our communities,” said Acting Assistant Attorney General Wheeler.  “The Justice Department is committed to vigorously prosecuting those who engage in such violent acts of hate.”

“This guilty plea underscores our ongoing commitment to aggressively investigate and prosecute individuals who commit hate crimes,” said Acting U.S. Attorney Muldrow.

“The FBI pledges to remain vigilant in protecting our communities from hateful acts of bias,” said Special Agent in Charge Paul Wysopal of the FBI Tampa Division.  “This case is an example of that commitment and determination to investigate crimes of hate and bring the offenders to justice.”

Two of Dennis’ co-conspirators, Thomas H. Sigler, III, and Pascual Carlos Pietri, previously pleaded guilty to the same charge.  Pietri was sentenced to 37 months imprisonment, and Sigler’s sentencing date is pending.

This case was investigated by the FBI.  It was prosecuted by Assistant U.S. Attorneys Josephine W. Thomas and Simon A. Gaugush of the Middle District of Florida and Trial Attorney William E. Nolan of the Civil Rights Division’s Criminal Section.

Gregory T. Goss, of Dolton, Illinois, reported false information on federal income tax returns he prepared for his customers, according to a new lawsuit filed by the U.S. Department of Justice today. In the complaint, the government alleges that Goss prepared false tax returns individually and doing business as G & V Tax and Insurance (G & V Tax), a tax preparation firm located at 625 E. 170th Street in South Holland, Illinois. The government’s complaint, filed in federal court in Chicago, Illinois, asks the court to bar Goss and G & V Tax from preparing federal tax returns for others.

According to the complaint, Goss and G & V Tax prepare fraudulent federal tax returns for their customers by fabricating itemized deductions and falsifying self-reported income. Goss and G & V Tax falsified self-employment income and itemized deductions to inflate claims for the Earned Income Credit (EIC) on their customers’ tax returns, according to the complaint. The EIC is a benefit for working people with low to moderate income. The EIC is a refundable credit meaning that it not only can reduce the amount of tax an eligible individual owes, dollar for dollar, but if some credit remains, it can result in a cash refund.
 

According to the complaint, the suit is a culmination of a lengthy Internal Revenue Service (IRS) investigation into Goss and G & V Tax. The complaint alleges that the IRS audited 237 tax returns prepared by Goss and determined that 147 — or 60 percent — of those returns either understated his customers’ respective tax liabilities or overstated their refunds, including claims for the EIC. These 147 tax returns prepared by Goss underreported $323,547 in taxes, the complaint alleges. The suit alleges that Goss’s misconduct damages the public fisc, undermines public confidence in the U.S. tax system, and harms his customers, who now may owe taxes, interest, and penalties.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.

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

A Fort Lauderdale, Florida resident was indicted today for tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to the indictment, between 2002 and 2015, Thomas Daly earned more than $1.5 million in income working as a salesman for several companies. The indictment alleges that Daly has not filed a federal tax return since 2002, with the exception of the 2007 tax year. In August 2009, the Internal Revenue Service (IRS) notified Daly that it intended to levy his wages to collect his unpaid tax liabilities for 2002 through 2006. Allegedly, in an effort to evade the collection of his back taxes, Daly incorporated South Florida Home Marketing Inc. (SFHM) to serve as his nominee and alter ego. Daly allegedly entered into an agreement with his employer to receive his wages in the name of SFHM. The indictment charges that as a result, the IRS’s levy was unsuccessful. Daly also allegedly directed others to make payments to him in the name of SFHM and used the income deposited into SFHM’s bank account to pay personal expenses, including apartment rent, a boat, international travel, entertainment, his girlfriend’s cosmetic surgery and jewelry.

An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.

If convicted, Daly faces a statutory maximum sentence of five years in prison for each tax evasion count. Daly also faces a period of supervised release, restitution and monetary penalties.

Acting Deputy Assistant Attorney General Goldberg commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler of the Tax Division, who are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.

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

Today, a federal judge barred Irving Brown Sr., a retired Chicago Fire Department captain, from preparing federal tax returns for others, the Justice Department announced. After a two-day bench trial in February, the court found that Brown Sr. of Chicago, Illinois, prepared and filed fraudulent tax returns for his customers, including Chicago Fire Department firefighters.

The court found that Brown, Sr. operated a seasonal tax return preparation business out of his Chicago home called Irving Brown, Sr. Tax Services and prepared more than 1,600 federal tax returns from 2011 to 2015 either himself or with the assistance of others. The court’s ruling noted that the Internal Revenue Service (IRS) audited 94 returns prepared by Brown Sr. and found that all but two required an adjustment by the IRS. Based upon these audits, the total tax deficiency was more than $700,000, and the IRS projects that the tax loss is well in excess of $1 million, according to the court’s findings.

The court determined that Brown engaged in a variety of ways to underreport his customers’ tax liabilities, such as fabricating the existence of small businesses with high expenses and inflating itemized deductions in order to offset earned income on his customers’ tax returns. The court also determined that Brown Sr. routinely fabricated itemized deductions such as charitable contributions and unreimbursed employee expenses. For example, on one of his customer’s returns, Brown Sr. reported more than $3,000 in parking expenses as unreimbursed employee expenses when the customer did not drive to work or park any car at work. The court noted that this customer did not even have a car for that particular year.

In addition to underreporting his customers’ tax liabilities, the court determined that Brown actively attempted to impede and obstruct the IRS’s investigation into his preparation activities. For example, the court found that Brown offered to pay $3,000 towards a customer’s tax liability if the customer agreed not to turn Brown in or sign an affidavit implicating him. The court also determined that Brown provided customers with false receipts and blank work orders, which appeared to be written in the same handwriting, and instructed those customers to present those documents to the IRS in support of the fraudulent items reported on their returns.

Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division thanked the revenue agent of the IRS–Small Business/Self-Employed Division, who conducted the investigation and Trial Attorneys Jordan A. Konig and Mary A. Stallings of the Tax Division, who litigated this case.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant. The IRS has tips on its website for choosing a return preparer and has launched a free directory of federal tax preparers.

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

Sanofi-Pasteur has agreed to pay $19,868,194 to resolve claims that it incorrectly calculated drug prices and thereby overcharged the U.S. Department of Veterans Affairs (VA) for drugs under two contracts between 2002 and 2011, the Department of Justice announced today. Sanofi Pasteur, a Delaware corporation headquartered in Swiftwater, Pennyslvania, is the vaccines division of Sanofi-Aventis.

“It is important that pharmaceutical companies provide complete, accurate, and current information to the VA about the pricing of their drugs,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will ensure that pharmaceutical companies follow the rules for drug pricing when selling to the government.”

Under the Veterans Health Care Act, 38 U.S.C. 8126, drug manufactures may not charge the VA more than a maximum amount, known as the Federal Ceiling Price (FCP), for covered drugs. Sanofi Pasteur disclosed to the VA that it had incorrectly calculated the FCP for certain drugs from 2007 to 2011 and overcharged the VA. The Office of Inspector General for the VA investigated the matter, and it determined that the error resulted in overcharges going back to 2002.

“Overcharging VA depletes funds that are available to care for our veterans,” said Director of the Healthcare Resources Division Mark Myers of Veterans Affairs, Office of Inspector General. “We will continue to hold companies accountable for errors in drug pricing.”

Under the settlement, in addition to paying approximately $19.8 million, Sanofi Pasteur has agreed that it will not pursue claims for reimbursement for sales where it contends its error in calculating the FCP resulted in a lower price to the VA.

This settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch and the Office of Inspector General of the Department of Veterans Affairs. No lawsuit was filed in this matter and there has been no determination of liability.

The Department of Justice announced today that it will require Danone S.A. to divest Danone’s Stonyfield Farms business in order for Danone to proceed with its $12.5 billion acquisition of The WhiteWave Foods Company Inc.  The department said that, without the divestiture, the proposed acquisition likely would reduce competition between the two leading participants and top brands in the markets for raw and fluid organic milk, potentially harming dairy farmers in the northeast and U.S. consumers of fluid organic milk.  

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

“The proposed acquisition would have blunted competition between the top two purchasers of raw organic milk in the northeast and the producers of the three leading brands of organic milk in the United States,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division.  “Today’s proposed settlement will ensure competitive marketplaces for both farmers in the northeast that sell raw organic milk and consumers who purchase fluid organic milk in stores nationwide.”  

According to the department’s complaint, as a result of Danone’s long-term strategic partnership and supply and licensing agreements with WhiteWave’s primary competitor, CROPP Cooperative (CROPP), the proposed acquisition would have provided incentives and opportunities for cooperative behavior between the two leading purchasers of raw organic milk in the northeast.  This cooperation likely would have resulted in farmers receiving less favorable contract terms for the purchase of their raw organic milk.  Similarly, the proposed acquisition would have aligned the interests of the producers of Stonyfield, Horizon and Organic Valley, the only three national fluid organic milk brands, and risked higher prices and fewer choices for U.S consumers. 

Under the terms of the proposed settlement, Danone must divest its Stonyfield Farms business to an independent buyer approved by the United States.  The department said that the divestiture will sever Danone’s and CROPP’s strategic partnership thereby eliminating the entanglements between CROPP and the merged firm.  As a result, the divestiture will preserve competition for the purchase of raw organic milk from northeast dairy farmers and the sale of fluid organic milk to consumers.

Danone is a France-based global food company that produces and sells a wide range of food products.  Danone’s annual sales for 2015 were approximately $24.3 billion.  Stonyfield Farms Inc., a subsidiary of Danone, is a Delaware corporation headquartered in Londonderry, New Hampshire.  Stonyfield Farms produces and sells a range of organic dairy products.  

WhiteWave is a Delaware corporation headquartered in Denver, Colorado.  WhiteWave produces and sells a range of organic dairy products, including organic fluid milk, yogurt and cheese.  WhiteWave had $3.86 billion in sales in 2015.  

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

The Justice Department cautioned employers petitioning for H-1B visas not to discriminate against U.S. workers. The warning came as the federal government began accepting employers’ H-1B visa petitions for the next fiscal year. The H-1B visa program allows companies in the United States to temporarily employ foreign workers in specialty occupations such as science and information technology.

The anti-discrimination provision of the Immigration and Nationality Act (INA) generally prohibits employers from discriminating against U.S. workers because of their citizenship or national origin in hiring, firing and recruiting. Employers violate the INA if they have a discriminatory hiring preference that favors H-1B visa holders over U.S. workers.

“The Justice Department will not tolerate employers misusing the H-1B visa process to discriminate against U.S. workers,” said Acting Assistant Attorney General Tom Wheeler of the Civil Rights Division. “U.S. workers should not be placed in a disfavored status, and the department is wholeheartedly committed to investigating and vigorously prosecuting these claims.”

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; or visit IER’s English and Spanish websites.

Applicants or employees who believe they were subjected to 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 court in Texas authorized the Internal Revenue Service (IRS) to serve a John Doe Summons on American Express Travel Related Services Company, the Justice Department announced. The IRS John Doe summons seeks information about persons residing in the Netherlands that have American Express debit or credit cards linked to bank accounts located outside of the Netherlands. The summons is referred to as “John Doe” summonses because the IRS does not know the identity of the person being investigated.

The United States petitioned the U.S. District Court in the Western District of Texas to authorize the summons at the request of the government of the Netherlands under a treaty between the Netherlands and the United States. The treaty allows the two countries to cooperate in exchanging information that is helpful in enforcing each country’s tax laws. The IRS summons seeks the identities of Dutch residents who have debit or credit cards linked to bank accounts located outside of the Netherlands so the Dutch government can determine if those persons have complied with Dutch tax laws. request is based on the Netherlands Tax and Customs Administration’s (NTCA) Payment Card Project, in which information on the use of payment cards (debit or credit) issued by financial institutions outside of the Netherlands can be used to identify non-compliant Dutch taxpayers. NTCA’s project has made similar requests, and already obtained similar information, from other financial institutions outside the United States resulting in several million euros in additional tax, interest and penalties from the non-compliant Dutch taxpayers, according to evidence submitted with the petition. American Express informed the NTCA that the transaction information sought is exclusively available in the United States, according to the evidence submitted with the petition. filing does not allege that American Express violated any U.S. or Dutch laws with respect to these accounts.

“The Department of Justice and the IRS are committed to working with the United States’ international treaty partners to identify individuals using secret offshore accounts to evade tax laws,” said Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division. “This sustained collaboration limits the opportunities to hide assets and belies the assumption that information about them is beyond a taxing authority’s reach.”

“In fighting international tax evasion, the IRS recognizes hidden offshore accounts are a problem other nations face as well,” said IRS Commissioner John Koskinen. “By using our existing network of bilateral agreements and tools such as the John Doe summons, we can help address a common problem of evading taxation by hiding assets abroad.‎”

The court order in this case authorizing this enforcement action is a part of ongoing international efforts to stop persons from using foreign financial accounts as a way to evade taxes. Courts have previously approved John Doe summonses allowing the IRS to identify individuals using offshore accounts to evade their U. S tax obligations, and have approved John Doe summonses to be used to identify individuals using U.S. financial institutions or accounts to evade tax obligations of a foreign county, pursuant to international tax treaties.

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

Memorandum from the Attorney General on supporting federal, state, local and tribal law enforcement.

          SHAWN N. ANDERSON, Acting United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that ALVIN SANTOS PADUA, age 38, was sentenced in U.S. District Court today by Senior Judge Alex R. Munson, to 87 months imprisonment for attempted possession of 245 grams of methamphetamine with intent to distribute, three years supervised release, and ordered to pay a $100 special assessment fee.

          On September 16, 2013, PADUA met one of his associates at the parking lot of Hotel Mai’ana in Tamuning for the specific purpose of picking up a package containing approximately 250 grams of methamphetamine. PADUA picked up a DVD player box which he expected would contain methamphetamine. The defendant had previously agreed with his associates in the Philippines to sell the drugs, and cause to send $100,000 drug proceeds to the Philippines.  He was unaware that the box concealed a sham product that law enforcement agents placed inside the box. The defendant was arrested shortly after he received the package. 

          Defendant PADUA pled guilty on December 5, 2013.

               The case was investigated by special agents from the U.S. Department of Homeland Security, Homeland Security Investigations and was prosecuted by Assistant U.S. Attorney Marivic David.

Two defendants were convicted today after a 12 day jury trial for their roles in an international drug trafficking conspiracy that aimed to transport more than 2,400 kilograms of cocaine aboard U.S. registered aircraft, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and Acting Administrator Chuck Rosenberg of the U.S. Drug Enforcement Administration (DEA). 

Dwight Knowles, a Bahamian national also known as “Arizona,” and Oral George Thompson, a Jamaican national also known as “Chad,” were convicted of conspiracy to distribute, and possess with intent to distribute, five kilograms or more of cocaine on board a U.S. registered aircraft.  Thompson is set to be sentenced on June 21, 2017, and Knowles is set to be sentenced on June 23, 2017.  U.S. District Court Judge Amy Berman Jackson of the District of Columbia presided over the trial and will impose sentence.  
  
According to the evidence introduced at trial, Knowles and Thompson sought to acquire U.S. registered aircraft to transport large quantities of cocaine from Colombia and Venezuela.  Thompson moved to Colombia by 1997 and Knowles followed by 2010.  From their base in Colombia, the defendants were better able to connect with sources of cocaine who were seeking aircraft, mostly from the United States, to transport their cocaine from Colombia and Venezuela to Central America and the Caribbean, for eventual distribution elsewhere.    

The evidence introduced at trial also revealed that from 2011 through May 2012, Knowles and Thompson sought to acquire a U.S. registered aircraft to transport at least three loads of cocaine from Venezuela to Honduras.  The evidence showed that a total of at least 2,400 kilograms of cocaine could have been transported in the three loads.  The plan was to acquire a U.S. registered Beechcraft 1900 aircraft in The Bahamas, fly the plane to Haiti to refuel and pick up a second pilot, fly to Venezuela where the cocaine would be loaded on the plane, and then fly to Honduras to deliver the cocaine.  In May 2012, Knowles and Thompson arranged for a Bahamian pilot to fly the Beechcraft 1900 aircraft to Haiti; however, upon arriving in Haiti, the pilot and two other men on the plane were arrested and the plane was confiscated by Haitian authorities.    

The DEA’s Orlando (Florida) office, Bogotá and Cartagena, Colombia Country Offices, and Special Operations Division investigated the case.  The government of Colombia provided invaluable assistance through the investigation of this case, with specific assistance provided by the Colombian National Police.  Invaluable assistance was also provided by The Royal Bahamas Police Force, Drug Enforcement Unit; the Ministry of Traffic, Transportation and Urban Planning, Curacao Civil Aviation Authority; and, the National Police of Haiti, Anti-Drug Traffic Office.  The United States Federal Aviation Administration (FAA) also played a pivotal role in the investigation and prosecution of the case.   

This case was prosecuted by Trial Attorneys Adrian Rosales, Charles Miracle and Erin Cox of the Criminal Division’s Narcotic and Dangerous Drug Section (NDDS), with significant assistance provided by the NDDS Judicial Attachés in Bogotá, Colombia; the Criminal Division’s Office of International Affairs; and the Prosecutor General’s Office of the Republic of Colombia (Fiscalía).  

A Department of Justice official released the following background statement at the conclusion of Attorney General Jeff Sessions’ meeting with the Attorneys General from El Salvador, Guatemala and Honduras:

“On Thursday, March 30, 2017, Attorney General Sessions met with the Attorneys General of El Salvador, Guatemala and Honduras. The goal of the dialogue was to strengthen law enforcement cooperation against transnational criminal threats common to all our countries, such as cartels, gangs and financial crimes. Attorney General Sessions and his counterparts agreed that this meeting was an important first step and that these vital discussions would continue as a means to increasing citizen security both in Central America and the United States.”

DELEGATION
Attorney General of El Salvador, Douglas Arquimides Melendez Ruiz
Attorney General of Guatemala, Thelma Esperanza Aldana Hernandez
Attorney General of Honduras, Oscar Fernando Chinchilla Banegas

Additional information on the Justice Department's Office of Overseas Prosecutorial Development Assistance and Training (OPDAT) may be found on OPDAT's website.

The Attorney General, today, had a positive and productive conversation with the Jewish Community Centers and JCC Association of North America. The Department of Justice will not tolerate hate crimes against Jewish communities or the targeting of any community in this country on the basis of their religious beliefs. JCCs continue to have strong partnerships with local and federal law enforcement and the Attorney General commends them for their responsiveness, efficiency, calm and competence in the face of those who would threaten these institutions and the millions of Americans who walk through their doors.

The Department of Justice announced today that it will require Smiths Group plc to divest Morpho Detection LLC and Morpho Detection International LLC’s global explosive trace detection (ETD) business in order for Smiths to proceed with its proposed $710 million acquisition of Morpho from Safran S.A.

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

“The acquisition, as originally proposed, would have eliminated one of only three suppliers of desktop explosive trace detection devices in the United States, and these devices play a critical role in ensuring the safe transport of passengers and cargo at our nation’s airports,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Today’s settlement will ensure that the Transportation Security Administration and other desktop explosive trace detection purchasers continue to enjoy the benefits of vigorous competition when they purchase these vital security screening products.”

The European Commission previously announced that in order to address its competitive concerns with the acquisition, it also will require Smiths to divest Morpho’s global ETD business. The department’s Antitrust Division and the European Commission cooperated closely throughout the course of their respective investigations, with frequent contact between the agencies.

According to the department’s complaint, Smiths and Morpho are two of the leading providers of desktop ETD devices for both air passenger travel and air cargo screening at U.S. airports. Desktop ETD devices detect trace amounts of explosive residue or narcotics on hands, belongings, and cargo from a tiny sample swabbed from the object and placed inside the detector. The complaint alleges that competition between Smiths and Morpho has resulted in lower prices, better service, and more innovative desktop ETD devices.

The proposed divestiture will remedy the loss of this competition. Under the terms of the proposed settlement, Smiths must divest Morpho’s global ETD business to a buyer approved by the United States. The department believes that the divestiture of Morpho’s global ETD business, which also includes handheld and portal ETD devices, was necessary to ensure that the buyer of Morpho’s global ETD business would be a viable competitor in the provision of desktop ETD devices.

Smiths is a London-based public limited company that provides products used in an array of industries. Smith’s wholly-owned U.S. subsidiary, Smiths Detection U.S. Inc. (Smiths Detection), sells a wide range of threat and contraband detection equipment used at airports and other high-risk critical infrastructure sites. Smiths Detection, which is headquartered in Edgewood, Maryland, had approximately $730 million in annual revenues in 2015.

Safran is an aerospace and defense company based in Paris. Morpho, a division of Safran, is headquartered in Newark, California. Morpho sells threat and contraband detection equipment used at airports and other high-risk critical infrastructure sites. Morpho had approximately $325 million in annual revenues in 2015, about $65 million of which were from ETD product sales.

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

Bingham Fox, owner of the fishing vessel Native Sun, was convicted today in U.S. District Court in Seattle of discharging oily waste directly into coastal waters of the State of Washington, a felony violation of the Clean Water Act. The jury deliberated six hours following a five-day trial. U.S. District Judge Robert S. Lasnik scheduled sentencing for July 11, 2017.

According to court documents, Bingham Fox, and others associated with the Native Sun, repeatedly discharged oily wastes into the ocean using unapproved submersible pumps and hoses. According to evidence presented at trial, the Native Sun had multiple, long-term, mechanical problems that put substantial amounts of oil in its bilges. In addition, the vessel was leaky, so the bilges were constantly filling with a mixture of oil and seawater. Bingham Fox had at least one illegal pump installed on board and directed others to regularly dump oily waste from the bilges, even in port.

“This criminal conviction clearly shows that treating our oceans as a dump has serious consequences,” said Acting Assistant Attorney General Jeff Wood of the Justice Department’s Environment and Natural Resources Division (ENRD). “Law-abiding vessel operators know the importance of compliance with our nation’s environmental laws, but those that flout those laws will face justice.”

“This case highlights the great collaborative efforts of Sector Puget Sound, Coast Guard Investigative Service and the Department of Justice, in holding those who pollute our waters accountable,” said Captain Linda A. Sturgis, Commander, Coast Guard Sector Puget Sound. “The results announced today are a prime example of the importance of the Coast Guard's marine environmental protection mission.”

Bingham Fox faces up to five years in prison and a criminal fine of up to $250,000 for this conviction. On March 17, 2017, his son Randall Fox pleaded guilty to conspiring with others to discharge oily wastes into the ocean when the Native Sun was offshore. Those acts violated the Act to Prevent Pollution from Ships (APPS), which specifically prohibits the discharge of machinery space bilge water, unless it has been properly treated, and meets rigorous oil pollution standards. APPS implements America’s obligations under an international treaty to control pollution by ocean-going vessels. On at least one occasion, a discharge under Randall Fox’s command left a large oily sheen in the wake of the Native Sun, which was video recorded by a crewmember, who reported the crime to authorities. Randall Fox faces a maximum of six years in prison for the APPS count and five years in prison for the conspiracy count. He also faces a criminal fine of up to $250,000 for each count. His sentencing is scheduled for June 16, 2017.

This case was investigated by the U.S. Coast Guard. The case is being prosecuted by trial attorneys Todd W. Gleason and Stephen Da Ponte of ENRD’s Environmental Crimes Section.

A federal court in Helena, Montana permanently barred Ron Broyles of San Rafael, California from preparing - or assisting others in preparing - any property appraisal that will be used in connection with federal taxes, the Justice Department announced. Based upon evidence the government submitted to the Court in support of a request to bar Broyles, the Court found that Broyles assisted in the organization of a timeshare donation scheme, directly participated in and promoted that scheme, which resulted in timeshare owners claiming improper federal tax deductions for donating their timeshares.

The Court also found that Broyles prepared at least 5,000 appraisals for timeshares to be donated to an entity called Donate for a Cause. Previously, the Court entered permanent injunctions against the other individuals and companies involved in the timeshare donation scheme, including Donate for a Cause, Timeshare Closings, James Tarpey of Montana, Curt Thor of Washington, and Suzanne Tarpey of Montana.

According to the Court’s order, each of Broyles’ 5,000 timeshare appraisals contained false or fraudulent statements about the allowability of tax deductions under the internal revenue laws, and that Broyles knew or had reason to know that these statements were false or fraudulent. According to the evidence submitted by the government, Broyles served as the in-house and primary appraiser for Montana-based organizations Donate for a Cause and TimeShare Closings doing business as Resort Closings. According to the United States’ evidence, between 2011 and 2014, Broyles earned more than $617,000 from preparing appraisals for timeshares to be donated to Donate for a Cause, which constituted all - or virtually all - of his appraisal income during that time. Between 2010 and 2012, Broyles’ appraisals caused his customers to claim more than $11 million in improper charitable contribution deductions, according to the evidence submitted by the government.

The court also barred Broyles from encouraging or advising others to claim charitable contribution deductions on any federal tax return. The court’s order also requires Broyles to identify all timeshare owners for which he prepared a timeshare appraisal since 2010, provide such information to the United States, and email, or mail, a copy of the court’s judgment to every timeshare owner for which he prepared a timeshare appraisal since 2010.

Scams that claim inflated charitable contribution deductions is one of the IRS’s Dirty Dozen Tax Scams for 2017. The IRS recommends anyone who may have improperly claimed such deductions to consult a tax professional. Guidelines for valuing and deducting property donations to charity can be found in Publication 526 and Publication 561, available on IRS.gov.

Acting Assistant Attorney General David A. Hubbert, head of the Justice Department’s Tax Division, thanked the IRS Revenue Agent who conducted the investigation and Trial Attorneys Richard G. Rose, Harris J. Phillips and Gretchen E. Nygaard of the Tax Division, who litigated this case.

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

Attorney General Jeff Sessions today announced the expansion and modernization of the Department’s Institutional Hearing Program (IHP).

The IHP identifies removable criminal aliens who are inmates in federal correctional facilities, provides in-person and video teleconference (VTC) immigration removal proceedings, and removes the alien upon completion of sentence, rather than releasing the alien to an ICE detention facility or into the community for adjudication of status.  Bringing an Immigration Judge to the inmate for a determination of removability, rather than vice versa, saves time and resources and speeds hearings.

The program is coordinated by the Department of Justice’s Executive Office for Immigration Review (EOIR), the Bureau of Prisons (BOP) and Immigration and Customs Enforcement (ICE).

“We owe it to the American people to ensure that illegal aliens who have been convicted of crimes and are serving time in our federal prisons are expeditiously removed from our country as the law requires,” said Attorney General Sessions.  “This expansion and modernization of the Institutional Hearing Program gives us the tools to continue making Americans safe again in their communities.”   

The expansion and modernization of the IHP program will occur in the following three ways:

          1. ICE, BOP, and EOIR will expand the number of active facilities with the program to a total of 14 BOP and 6 BOP contract facilities;

          2. EOIR and BOP will increase each facility’s VTC capabilities and update existing infrastructure to aid in the ability to conduct removal proceedings; and

          3. EOIR and ICE will finalize a new and uniform intake policy. EOIR and ICE expect to have reached agreement on this new intake process by April 6, 2017.  

These improvements will speed the process of deporting incarcerated criminal aliens and will reduce costs to taxpayers.

 A former vice president of finance for Bankrate Inc., a publicly traded financial services and marketing company headquartered in New York City, was charged in an indictment filed yesterday for his alleged participation in a complex accounting and securities fraud scheme.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting U.S. Attorney Benjamin Greenberg of the Southern District of Florida and Chief Postal Inspector Guy J. Cottrell of the U.S. Postal Inspection Service (USPIS) made the announcement today.

Hyunjin Lerner, 48, of Martin County, Florida, was charged in an indictment filed in the Southern District of Florida with one count of conspiracy to commit wire fraud, falsify a public company’s books, records and accounts and make false statements to a public company’s accountants; three counts of wire fraud; one count of securities fraud; four counts of false entries in a public company’s books, records and accounts; and three counts of false statements to a public company’s accountants.  Lerner, who previously worked at Bankrate’s offices in Palm Beach Gardens, Florida, made his initial appearance earlier today before U.S. Magistrate Judge John J. O’Sullivan of the Southern District of Florida and was released on bond.

The indictment alleges that between 2011 and 2014, Lerner and his co-conspirators carried out a complex scheme to manipulate Bankrate’s financial statements and artificially inflate Bankrate’s earnings.  According to the indictment, Lerner and his co-conspirators allegedly engaged in “cookie jar” or “cushion” accounting, meaning  unsupported expense accruals were left on Bankrate’s books and then selectively reversed in later quarters to meet earnings goals.  In addition, Lerner and his co-conspirators allegedly: misrepresented certain company expenses as “deal costs” in order to artificially inflate publicly reported adjusted earnings metrics; booked hundreds of thousands of dollars in unsupported revenue to further inflate Bankrate’s reported revenue and earnings; and made materially false statements to conceal the improper accounting entries from Bankrate’s auditors, shareholders and the investing public.

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

The USPIS Washington, D.C., Division investigated the case.  Assistant Chief Henry Van Dyck and Trial Attorneys Rush Atkinson, Emily Scruggs and Somil Trivedi of the Criminal Division’s Fraud Section are prosecuting the case.  The Securities and Exchange Commission and the U.S. Attorney’s Office of the Southern District of Florida provided assistance in this matter.

Individuals who believe that they may be a victim in this case should visit the Fraud Section’s Victim Witness website for more information.

****** MEDIA ADVISORY ******

Attorney General Jeff Sessions will travel to St. Louis on FRIDAY, MARCH 31, 2017, to speak with federal, state and local law enforcement about efforts to combat violent crime and restore public safety. 

WHO:            Attorney General Jeff Sessions 

WHAT:          Speech to federal, state and local law enforcement partners. 

WHEN:        FRIDAY, MARCH 31, 2017
                       10:00 a.m. CDT (11 a.m. EDT) 
 
WHERE:     Thomas Eagleton U.S. Courthouse 
                       111 S. 10th Street
                       St. Louis, MO 63102
                       1st Floor Jury Assembly Room
                       OPEN PRESS 
                    (Camera Preset by for K9 Sweep: 9:15 a.m. CDT // Final Access: 9:40 a.m. CDT)
                        
NOTE:  All media must RSVP and present government-issued photo I.D. (such as a driver’s license as well as valid media credentials).  The RSVP and any inquiries regarding logistics should be directed to Peter Carr in the Office of Public Affairs at 202 514-2007 or peter.carr@usdoj.gov.   

The Department of Justice’s Antitrust Division today issued the 2017 edition of its annual newsletter on its website. The newsletter highlights the Antitrust Division’s recent activities and successes on civil and criminal enforcement, international cooperation and competition advocacy.

The newsletter includes a message from Acting Assistant Attorney General Brent Snyder as well as articles about the Antitrust Division’s enforcement actions in the criminal, merger and civil non-merger areas over the past year. The newsletter highlights the Division’s accomplishments during FY 2016, including charging 52 executives and 19 companies with price-fixing, bid-rigging, fraud, and obstruction of justice, resulting in fines and penalties of $399 million and significant prison sentences. Additional highlights include the Division’s success in preventing anticompetitive acquisitions in the health insurance industry and in preserving competition in a variety of important industries, including movie theaters, advertising, banking, cable, transportation and beer, in matters that were favorably resolved through settlement.

The newsletter also features articles about new leadership and staff within the Division, an update from the Diversity Committee, and a feature on how the Division’s Economic Analysis Group is shaping enforcement efforts.

The newsletter can be found at https://www.justice.gov/atr/division-operations/division-update-spring-2017. Each article provides hyperlinks so that the reader can easily access relevant documents such as press releases, court filings and speeches.

DB Group Services (UK) Limited (DBGS), a wholly owned subsidiary of Deutsche Bank AG (Deutsche Bank), was sentenced today for its role in manipulating London Interbank Offered Rates (LIBOR) for U.S. Dollar and several other currencies.  LIBOR is a leading benchmark used in financial products and transactions around the world.

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office made the announcement.

DBGS was sentenced by U.S. District Judge Stefan R. Underhill of the District of Connecticut. DBGS pleaded guilty on April 23, 2015, to one count of wire fraud for its role in manipulating LIBOR benchmark interest rates. DBGS signed a plea agreement with the government in which it admitted its criminal conduct and agreed to pay a $150 million fine, which the court accepted in imposing today’s sentence.  In addition, Deutsche Bank, the Frankfurt, Germany-based parent company of DBGS, entered into a deferred prosecution agreement (DPA) with the Justice Department requiring Deutsche Bank to pay an additional $625 million criminal penalty, to admit and accept responsibility for its misconduct and to continue cooperating with the Justice Department in its ongoing investigation.  The DPA also requires Deutsche Bank to retain a corporate monitor for three years.

Together with approximately $1.744 billion in regulatory penalties and disgorgement – $800 million as a result of a Commodity Futures Trading Commission (CFTC) action, $600 million as a result of a New York Department of Financial Services (DFS) action and $344 million as a result of a U.K. Financial Conduct Authority (FCA) action – the Justice Department’s criminal penalties bring the total amount of penalties to approximately $2.519 billion.

According to the plea agreement, from at least 2003 through early 2010, numerous Deutsche Bank derivatives traders – whose compensation was directly connected to their success in trading financial products tied to LIBOR – engaged in efforts, many times in conjunction with other banks, to move these benchmark rates in a direction favorable to their trading positions.  Specifically, the derivatives traders requested that LIBOR submitters at Deutsche Bank and other banks submit contributions favorable to trading positions, rather than the accurate rates that complied with the definition of LIBOR.  Through these schemes, Deutsche Bank defrauded counterparties who were unaware of the manipulation.  Deutsche Bank admitted that its fraudulent LIBOR submissions did, in fact, affect the resulting LIBOR fix on multiple occasions.

The FBI’s Washington Field Office is conducting the investigation.  Trial Attorneys Alison Anderson and Richard Powers of the Criminal Division’s Fraud Section and Trial Attorney Michael Koenig of the Antitrust Division are prosecuting the case.  The Criminal Division’s Office of International Affairs has provided assistance in this matter.  

The investigation leading to these cases has required, and has greatly benefited from, a diligent and wide-ranging cooperative effort among various enforcement agencies both in the United States and abroad.  The Justice Department acknowledges and expresses its deep appreciation for this assistance. In particular, the CFTC’s Division of Enforcement referred this matter to the Justice Department and, along with the FCA, has played a major role in the investigation.  The Justice Department is also grateful for the Securities and Exchange Commission’s significant role in the LIBOR investigation, as well as the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation.

A Social Security disability lawyer pleaded guilty in federal court today for his role in a scheme to fraudulently obtain $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 Investigations (IRS-CI) Nashville, Tennessee, Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Atlanta Regional Office made the announcement.

Eric Christopher Conn, 56, of Pikeville, Kentucky, pleaded guilty before U.S. District Judge Danny C. Reeves of the Eastern District of Kentucky to one count of theft of government money and one count of payment of gratuities. Sentencing is set for July 14, 2017.

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. 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.

The SSA-OIG, FBI, IRS-CI and HHS-OIG are investigating the case. Trial Attorneys Dustin M. Davis of the Criminal Division’s Fraud Section and 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.

A Georgia real estate investor pleaded guilty today for his role in a bid-rigging conspiracy and fraud scheme related to public real estate foreclosure auctions in Gwinnett County, Georgia, the Department of Justice announced.

Clifford Wayne Hill pleaded guilty to bid rigging and fraud in the U.S. District Court for the Northern District of Georgia.  On Feb. 3, 2016, a federal grand jury in the Northern District of Georgia returned an indictment against the defendant.

According to the indictment, from December 2007 to March 2012, Hill and his co-conspirators agreed not to compete for the purchase of selected foreclosed homes so that they could win the auctions for those homes with artificially low bids. Hill made and received payoffs for the agreement not to bid; taking money that otherwise would have gone to mortgage holders and in some cases, to the owners of foreclosed homes.

Including Hill, twenty-three defendants have been charged in connection with the Justice Department’s ongoing investigation into bid rigging and fraudulent schemes involving real estate foreclosure auctions in the Atlanta area. Twenty-two real estate investors have pleaded guilty.

Today’s guilty plea is a result of the ongoing investigation being conducted by the Antitrust Division’s Washington Criminal II Section, the FBI’s Atlanta Division and the U.S. Attorney’s Office of the Northern District of Georgia.  Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Washington Criminal II Section of the Antitrust Division at 202-598-4000, call the Antitrust Division’s Citizen Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.

Attorney General Sessions released the following statement on the arrest in Israel:

“Today’s arrest in Israel is the culmination of a large-scale investigation spanning multiple continents for hate crimes against Jewish communities across our country. The Department of Justice is committed to protecting the civil rights of all Americans, and we will not tolerate the targeting of any community in this country on the basis of their religious beliefs. I commend the FBI and Israeli National Police for their outstanding work on this case.”

A federal judge sentenced a Long Island, New York sales representative to prison for fraudulently selling vending machine businesses, the Justice Department announced today. 

Richard Linick, 74, of Setauket, New York, was sentenced to serve 36 months in prison followed by three years of supervised release and ordered to pay $382,126 in restitution by U.S. District Court Judge Joan M. Azrack of the Eastern District of New York. Linick was found guilty after a six-week trial in 2015 of wire fraud and conspiracy. He is one of 22 defendants who have been convicted of fraud in connection with Multivend LLC d/b/a/ Vendstar, which was based in Deer Park, New York.

“The defendant enticed victims to pay thousands of dollars for worthless business opportunities,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to prosecute scam artists who defraud Americans out of their savings.”

Vendstar, which closed in July 2010, sold vending machine businesses in which it promised to provide vending machines, candy, locations, and everything else buyers would need.  Vendstar advertised in newspapers and on the Internet and sold the businesses to victims nationwide. But Vendstar’s sales representatives – with the knowledge and approval of Vendstar’s managers – misrepresented the business opportunity’s likely profits, the amount of money that Vendstar’s prior customers were earning, how quickly customers were likely to recover their investment, the quality of locations that were available for the vending machines, and the level of location assistance that customers would receive from locating companies recommended by Vendstar. During the last five years it was open, Vendstar made more than $60 million in sales. Buyers received the vending machines, but little else, and typically lost most or all of their investment.  Several of those victims testified at trial about the impact that the losses had on them and their families.

Acting Assistant Attorney General Readler commended the U.S. Postal Inspection Service for its thorough investigation. The case was prosecuted by Senior Litigation Counsel Patrick Jasperse and Assistant Director Alan Phelps of the Civil Division’s Consumer Protection Branch. During the last 10 years, approximately 170 individuals have been convicted of fraudulently selling business opportunities in cases prosecuted by the Consumer Protection Branch. 

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

Settlement Bars Anticompetitive Information Sharing Between Competitors

The Department of Justice announced today that it has reached a settlement that will prohibit DIRECTV and its parent corporation, AT&T, from illegally sharing confidential, forward-looking information with competitors.

The department’s Antitrust Division filed suit on Nov. 2, 2016, alleging that DIRECTV was the ringleader of a series of unlawful information exchanges between DIRECTV and three of its competitors – Cox Communications Inc., Charter Communications Inc. and AT&T (before it acquired DIRECTV) – during the companies’ negotiations to carry the SportsNet LA “Dodgers Channel.” SportsNet LA holds the exclusive rights to telecast almost all live Dodgers games in the Los Angeles area. 

The settlement, which will obtain all of the relief sought by the department in its lawsuit, will ensure that when DIRECTV and AT&T negotiate with providers of video programming, including negotiations to telecast the Dodgers Channel, they will not illegally share competitively-sensitive information with their rivals. The settlement also requires the companies to monitor certain communications their programming executives have with their rivals, and to implement antitrust training and compliance programs.  

“When competitors email, text, or otherwise share confidential and strategically sensitive information with each other to avoid competing, consumers lose,” said Acting Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “Today’s settlement promotes competition among pay-television providers and prevents AT&T and DIRECTV from engaging in illegal conduct that thwarts the competitive process.”          

According to the Complaint, DIRECTV’s Chief Content Officer, Daniel York, unlawfully exchanged competitively-sensitive information with his counterparts at Cox, Charter and AT&T while they were each negotiating for the right to telecast the Dodgers Channel. The companies engaged in these unlawful information exchanges to decrease the risk that any individual company would lose subscribers by not carrying the Dodgers Channel while others did. Eliminating this threat corrupted the competitive bargaining process and likely contributed to the lengthy blackout.   
            
DIRECTV Group Holdings, LLC is a subsidiary of AT&T Inc., a Delaware corporation with headquarters in Dallas. As of 2014, DIRECTV had approximately 1.25 million video subscribers in the Los Angeles area. AT&T is a Delaware corporation with headquarters located in Dallas. As of 2014, AT&T had approximately 400,000 video subscribers in the Los Angeles area.  

The proposed settlement agreement, along with the department’s competitive impact statement, will be published in the Federal Register as required by the Antitrust Penalties and Procedures Act. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Scott Scheele, Chief, Telecommunications and Media Enforcement Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 7000, Washington, DC 20530. At the conclusion of the 60-day comment period, the court may enter the final judgment upon finding that it serves the public interest.

Anyone with information related to anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or visit www.justice.gov/atr/contact/newcase.html.

A former executive of Coach USA Inc. was sentenced today for attempting to conceal and destroy documents relevant to a civil antitrust investigation and for providing false and misleading statements during the course of civil antitrust litigation, the Department of Justice announced.　

Ralph Groen, of North Carolina, the former vice president of information technology for Coach USA Inc. (Coach), was ordered to serve 15 months in prison and ordered to pay a $5000 criminal fine.　 On Oct. 14, 2016, Groen pleaded guilty to corruptly obstructing, influencing and impeding a civil antitrust investigation and subsequent litigation brought by the United States and State of New York.　　　

According to court documents filed in this case in the U.S. District Court for the Southern District of New York, Groen directed his subordinates to recall, conceal and destroy end-of-month backup tapes containing emails that were relevant and responsive to the litigation. Additionally, according to court documents, Groen provided false and misleading information to Coach’s investigators and to the United States during the course of a deposition taken as part of the litigation.　

The civil litigation, which was filed in the U.S. District Court for the Southern District of New York, related to the New York City hop-on, hop-off tour bus market and challenged Coach’s and City Sights LLC’s formation of the Twin America LLC joint venture in 2009. 　On Nov. 17, 2015, the district court entered a final judgment requiring Coach and City Sights to pay $7.5 million in disgorgement and to make divestitures to address the competitive harm alleged in the division’s lawsuit.

Today’s sentence is a result of an investigation into obstruction of justice conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Washington Field Office.　 Anyone with information on price fixing, bid rigging and other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Washington Office at 202-278-2000.

A federal court in Miami, Florida has permanently barred Aleluya Universal Accounting Services Inc. (Aleluya) and its officers Frantz Petit-Dos, Luczor Fertilien, and David Joseph from preparing federal income tax returns for others, the Justice Department announced today.

In its complaint, the government alleged that Petit-Dos of Fort Lauderdale, Florida, Fertilien of Margate, Florida, and Joseph of Lauderhill, Florida, prepared false returns from Aleluya’s office located at 7537 West Oakland Park Boulevard in Lauderhill, Florida. In addition to barring the defendants from preparing tax returns, the court ordered them to post a notice, in English and in Creole, in the store window where they prepared tax returns stating that the defendants are barred from preparing tax returns for others.

According to the government’s complaint, the defendants prepared tax returns that unlawfully understated income tax liabilities and overstated refunds by fabricating and/or exaggerating deductions and tax credits their clients are not eligible to take.  For example, the defendants claimed Fuel Tax Credits for customers who did not qualify for this credit, according to the complaint.  In particular, Joseph falsely advised one customer that she was eligible for the Fuel Tax Credit because she was self-employed and drove herself to work, according to the complaint.  Similarly, Fertilien told the Internal Revenue Service (IRS) that he advised anyone with receipts for gas used in their vehicles could claim the Fuel Tax Credit, according to the complaint.

The government alleged in its complaint that Petit-Dos’s, Fertilien’s, and Joseph’s misconduct predated the creation of Aleluya.  Prior to Joseph forming Aleluya in June 2013, Petit-Dos and Fertilien owned a tax return preparation business called Imperial Taxation that was located at the same Lauderhill location as Aleluya, according to the complaint.  The complaint alleged that Petit-Dos, Fertilien, and Joseph, a return preparer at Imperial Taxation, prepared false tax returns and committed other violations of the Internal Revenue Code while at Imperial Taxation.  Altogether, the complaint alleged that the loss to the U. S. Treasury from the defendants’ activities may be in the millions of dollars.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2017 and taxpayers seeking a return preparer should remain vigilant.  The IRS has some tips on their website for choosing a return preparer and has launched a free directory of federal tax preparers.

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

A Broward County, Florida woman was sentenced in Miami, Florida for her role in connection with the operation of a Jamaican-based fraudulent lottery scheme, the Department of Justice announced today.

Cassandra Althea Palmer, 33, was sentenced by U.S. District Judge Marcia G. Cooke to serve 24 months in prison and three years of supervised release. The court scheduled a hearing on May 3, 2017 to determine the amount of restitution that Palmer will pay to the victim.

Palmer pleaded guilty on Dec. 7, 2016, to one count of conspiracy to commit mail and wire fraud. As part of her guilty plea, Palmer acknowledged that from February through April 2014, she was a member of a conspiracy that defrauded a Maryland resident.

“Lottery scammers tied to Jamaica continue to prey on victims in the United States, promising large winnings in a lottery to trick victims into sending money to a member of the scheme, with no return to the victim,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice is committed to prosecuting those who participate in international lottery schemes, which frequently target elderly or vulnerable Americans.”

Palmer was charged with the conspiracy to commit mail and wire fraud on Oct. 26, 2016. As part of her guilty plea, Palmer agreed that, had the case gone to trial, the United States would have proved the following facts beyond a reasonable doubt: In February 2014, a woman from Worcester County, Maryland, was contacted by an individual in Jamaica and told that she had won a multi-million dollar lottery prize, and that in order to collect her lottery prize, she first had to pay taxes and fees. The victim did not win a lottery prize and would not collect any winnings. Palmer knew about the fraud scheme and agreed with her co-conspirator in Jamaica to participate in the scheme. Palmer participated in the fraudulent scheme in a number of ways. Among other things, she worked with her co-conspirator in Jamaica, to recruit a friend in Maryland to receive $7,500 of the victim’s money. She and her friend kept a portion of the money, and Palmer wire transferred the rest to her Jamaican co-conspirator.

The fraudulent scheme ended when law enforcement officials learned of the fraud. Officials set up a sting, in which an undercover police officer posed as the victim and met Palmer’s friend at a fast food restaurant parking lot in Maryland. The purpose of the meeting was for the victim to hand over $32,500 in cash to Palmer’s friend in order for the victim to claim her purported lottery winnings. Law enforcement arrested Palmer’s friend on the spot, after she received $32,500 in cash from the officer.

“The Postal Inspection Service seeks to end fraud on American citizens, many of whom are vulnerable or older, by those engaged in international lottery schemes,” said Inspector in Charge Daniel B. Brubaker of the U.S. Postal Inspection Service’s Philadelphia, Pennsylvania Division. “Today’s sentencing demonstrates there are no safe havens for those who participate in these types of fraud schemes.”

This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on U.S. citizens.

Acting Assistant Attorney General Readler commended the investigative efforts of the U.S. Postal Inspection Service, the U.S. Department of Homeland Security, and the Maryland State Police. The case was prosecuted by Trial Attorney David A. Frank of the Civil Division’s Consumer Protection Branch.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Florida, visit its website at https://www.justice.gov/usao-sdfl.

INTERPOL Washington Acting Director Wayne Salzgaber will attend a meeting of the Ministers of the Global Coalition working to defeat ISIS on March 22, 2017, at the U.S. Department of State. Secretary of State Rex Tillerson will host the 68 foreign ministers and senior Coalition leaders from around the world.

As one of the international organizations represented in the Coalition, INTERPOL, the largest international police organization, will be represented by INTERPOL Secretary General Jϋrgen Stock. INTERPOL Washington is the U.S. National Central Bureau representing the United States in INTERPOL. INTERPOL provides a global framework of resources for combating transnational crime and terrorism, including leading a multinational fusion cell and analytical database containing biometric and other data of value to law enforcement and border control authorities responsible for determining threats from foreign fighters within their jurisdictions.

The Ministerial is intended to accelerate international efforts to defeat ISIS in the remaining areas it holds in Iraq and Syria and to maximize pressure on its branches, affiliates, and networks. The Coalition regularly meets at the Small Group level to coordinate and enhance combined efforts to counter ISIS.

The ministerial participants will discuss detailed priorities for the Coalition’s multiple lines of effort, including military, foreign terrorist fighters, counterterrorist financing, counter-messaging, and stabilization of liberated areas, to increase the momentum of the campaign. Ministers will also discuss the ongoing humanitarian crises in Iraq and Syria that are affecting the region.

For more information on the Global Coalition, please visit the State Department webpage: https://www.state.gov/s/seci/ .

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 the International Criminal Police Organization 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 federal, state, local, and tribal law enforcement agencies in the United States.

A former FBI contractor pleaded guilty today to making false statements to FBI agents in connection with an official FBI investigation.  

Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Assistant Director in Charge Andrew W. Vale of the of the FBI’s Washington Field Office and Acting Inspector General April Stephenson of the U.S. Department of Energy’s Office of Inspector General (DOE-OIG) made the announcement.

Arkadiy Zagaytov, 59, pleaded guilty before U.S. Magistrate District Judge Robin M. Meriweather of the District of Columbia.  The defendant’s sentencing will be scheduled at a later date.

From June 2010 to October 2011 and September 2012 to August 2014, Zagaytov worked as an Oracle Database Administrator at the FBI Headquarters Information Technology Division and maintained Top Secret security clearance level for the entirety of his term at FBI.  On July 31, 2014, Zagaytov was interviewed by Special Agents of the FBI in connection with an official investigation.

According to admissions made in connection with his plea agreement, Zagaytov lied to investigators about a financial transaction that he facilitated in 2004 and 2005 between a senior DOE official and a private company doing business in the United States.  Specifically, at the request of the senior official, Zagaytov served as a conduit for purported “consulting” payments from the private company to the senior official.  Zagaytov prepared and submitted false invoices to the private company for up to $140,000 in services that he never rendered or performed.  Upon receiving payment from the private company and withholding a portion thereof to cover tax liabilities and other personal expenses, Zagaytov made several cash disbursements to the senior official.  During his interview with the FBI on July 31, 2014, Zagaytov denied making any such payments to the senior official.  Zagaytov also failed to disclose these transactions in his application for Top Secret clearance even though he was required to do so.

The FBI’s Washington Field Office and DOE-OIG investigated the case.  Trial Attorney Victor R. Salgado of the Criminal Division’s Public Integrity Section is prosecuting the case.