District Not Recorded

The Justice Department today filed a proposed consent decree with the Palm Beach County, Florida, School Board to resolve a pregnancy discrimination lawsuit brought by the department under Title VII of the Civil Rights Act of 1964.

According to the department’s complaint, the board discriminated on the basis of sex against Assistant Principal Anne Williams Dorsey of the Palm Beach County School District by unlawfully demoting her. The department alleges that after Dorsey became pregnant, her supervisor reassigned her to a position with less pay and benefits and filled her former position by replacing her with a male colleague she had trained. The department further alleges that Dorsey’s demotion was also unlawful retaliation against her for her efforts to report sexual harassment allegations, made by a third employee, against the male colleague who replaced her in her former position.

Under the consent decree, which still must be approved by the U.S. District Court for the Southern District of Florida, the board has agreed to pay $350,000 in back pay and compensatory damages to Dorsey. In addition, the board must review and revise its anti-discrimination policies and procedures to ensure that it protects its employees from discrimination on the basis of sex, including pregnancy, and unlawful retaliation. The board must also provide training to its employees on its anti-discrimination policies and procedures.

“No woman should face discrimination for her decision to have a family,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Women like Anne Williams Dorsey deserve the full enforcement of this nation’s employment discrimination laws, which ensure that they do not lose valuable positions, pay or benefits because of their pregnancies.”

“The U.S. Attorney’s Office is committed to preventing pregnancy discrimination and ensuring workplace equity,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “A woman should never have to choose between having a family and pursuing her professional career. We are pleased that the Palm Beach County School Board has agreed to review its policies and procedures to ensure that it promotes a professional environment that is fully compliant with Title VII. Our Office will continue to enforce the right of pregnant employees to be free from employment discrimination and retaliation.”

Title VII is a federal statute which prohibits employment discrimination on the basis of sex (including pregnancy), race, color, national origin or religion. Title VII also prohibits retaliation against an employee who opposes an unlawful employment practice, makes a charge of discrimination or participates in an investigation, proceeding or hearing under the Civil Rights Act.

Dorsey initially filed charges of sex discrimination and retaliation with the Equal Employment Opportunity Commission’s Miami Field Office, which investigated the matter, determined there was reasonable cause to believe discrimination had occurred and referred the matter to the Justice Department.

The case is being handled by Trial Attorneys Nadia Said and Louis Whitsett of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Veronica Harrell-James of the Southern District of Florida

The continued enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.

The Justice Department announced today that it has entered into a court enforceable agreement with the city of Baltimore to resolve the department’s findings that the Baltimore City Police Department (BPD) engages in a pattern and practice of conduct that violates the First, Fourth and 14th Amendments of the Constitution as well as federal anti-discrimination laws.

The consent decree, filed today in the U.S. District Court for the District of Maryland, creates a pathway toward lasting reform within BPD.  The decree’s requirements focus on building community trust, creating a culture of community and problem-oriented policing, prohibiting unlawful stops and arrests, preventing discriminatory policing and excessive force, ensuring public and officer safety, enhancing officer accountability and making needed technological upgrades.  Under the agreement, the parties will jointly recommend an independent monitor to the court to assess whether the requirements of the agreement are being implemented.  The independent monitor will report publicly on BPD’s implementation efforts on a regular basis.  In the joint motion filing the decree, the parties requested that the court provide an opportunity for members of the public and stakeholders throughout Baltimore to provide written submissions to the court about the proposed decree, and then hold a public hearing. 

“Last August, we concluded that the Baltimore Police Department had engaged in conduct that deprived the people of Baltimore of the rights and protections guaranteed to every American, and that the deeply-rooted mistrust between law enforcement officers and the community they serve harmed all who call Baltimore home,” said Attorney General Loretta E. Lynch.  “After thorough, good-faith negotiations, the Department of Justice and the city of Baltimore have agreed to enter into a court-enforceable consent decree to remedy the violations identified in our investigation.  The reforms in this consent decree will help ensure effective and constitutional policing, restore the community’s trust in law enforcement, and advance public and officer safety.  We could not be prouder to partner with the people of Baltimore on this journey towards making their city a community that protects the dignity, rights, and safety of all its people.”

“Under the consent decree, the city and BPD will implement comprehensive reforms to end the legacy of Baltimore’s ‘zero tolerance’ policing,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “In its place, BPD will empower its officers to engage in proactive, community-oriented policing.  And given our experiences in many other cities, I firmly believe that when focused, measurable and detailed reforms are implemented effectively, they restore community trust and advance officer and public safety.”

Under the consent decree, the city of Baltimore and BPD will implement comprehensive reforms that will ensure that:

• Baltimore establishes a Community Oversight Task Force to recommend reforms to the current system of civilian oversight. 
• BPD adopts a policing approach that is community-oriented and based on problem solving principles.
• Officers’ voluntary interactions are professional and courteous, and officers conduct all investigatory stops, searches and arrests in a manner that protects people’s rights.
• BPD provides equal protection of the law for all individuals, including providing impartial policing services.
• Officers use appropriate de-escalation techniques and attempt to resolve incidents without force when possible; use force in a manner that is proportional to the threat presented; and BPD’s use of force policies, training and review systems provide sufficient guidance, skills and accountability.
• BPD transports detainees in a manner that keeps them safe.
• Officers respect the First Amendment rights of all persons.
• BPD investigates sexual assault thoroughly and without gender bias.
• Baltimore conducts an assessment to minimize youth involvement with the juvenile and criminal justice systems, as appropriate, and that officers approach interactions with youth in a manner appropriate to their age.
• Baltimore conducts an analysis of gaps in the city’s mental health system in consultation with a committee of behavioral health experts and service providers, and BPD instructs and dispatches officers who are properly trained in interacting with people in crisis or with behavioral health disabilities when a police response is appropriate.
• Allegations of employee misconduct are fully, fairly and efficiently investigated; that all investigative findings are supported by the appropriate standard of proof and documented in writing; and that all officers who commit misconduct are held accountable pursuant to a disciplinary system that is fair, consistent and provides due process.
• Officers receive necessary equipment, policy guidance, training and support to do their jobs safely and effectively, and BPD performs a staffing study to ensure a sufficient number of officers and supervisors.

The Justice Department announced its findings in August 2016 following a thorough investigation into BPD started in May 2015.  The department found that BPD made stops, searches and arrests without the required justification; used enforcement strategies that unlawfully subjected African Americans to disproportionate rates of stops, searches and arrests; used excessive force; and retaliated against individuals for their constitutionally-protected expression.  The pattern or practice resulted from systemic deficiencies that persisted within BPD for many years and exacerbated community distrust of the police, particularly in African-American communities. 

In October 2014, city and BPD leadership requested to enter a collaborative reform process with the Justice Department’s Office of Community Oriented Policing Services (COPS office).  After the Civil Rights Division opened the pattern-or-practice investigation in May 2015, the COPS office and the Justice Department’s Office of Justice Programs have continued to offer federal resources, such as technical assistance, to the BPD, city officials and community leaders.

This investigation was conducted by the Civil Rights Division’s Special Litigation Section with the assistance of law enforcement professionals pursuant to the pattern or practice provision of the Violent Crime Control and Law Enforcement Act of 1994.  Since 2009, the Special Litigation Section has opened 25 investigations into law enforcement agencies.  The section is enforcing 20 agreements with law enforcement agencies, including 15 consent decrees and one post-judgment order.  The division also recently released a comprehensive report that provides an overview of the police reform work done under pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which can be found at the following link: https://www.justice.gov/crt/file/922421/download.

For more information on the Civil Rights Division and the Special Litigation Section, please visit www.justice.gov/crt.

Volkswagen AG (VW) has agreed to plead guilty to three criminal felony counts and pay a $2.8 billion criminal penalty as a result of the company’s long-running scheme to sell approximately 590,000 diesel vehicles in the U.S. by using a defeat device to cheat on emissions tests mandated by the Environmental Protection Agency (EPA) and the California Air Resources Board (CARB), and lying and obstructing justice to further the scheme, the Justice Department announced today.

In separate civil resolutions of environmental, customs and financial claims, VW has agreed to pay $1.5 billion. This includes EPA’s claim for civil penalties against VW in connection with VW’s importation and sale of these cars, as well as U.S. Customs and Border Protection (CBP) claims for customs fraud. In addition, the EPA agreement requires injunctive relief to prevent future violations. The agreements also resolve alleged violations of the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA).

The Criminal Case:

VW is charged with and has agreed to plead guilty to participating in a conspiracy to defraud the United States and VW’s U.S. customers and to violate the Clean Air Act by lying and misleading the EPA and U.S. customers about whether certain VW, Audi and Porsche branded diesel vehicles complied with U.S. emissions standards, using cheating software to circumvent the U.S. testing process and concealing material facts about its cheating from U.S. regulators. VW is also charged with obstruction of justice for destroying documents related to the scheme, and with a separate crime of importing these cars into the U.S. by means of false statements about the vehicles’ compliance with emissions limits. Under the terms of the plea agreement, which must be accepted by the court, VW will plead guilty to all these crimes, will be on probation for three years, will be under an independent corporate compliance monitor who will oversee the company for at least three years, and agrees to fully cooperate in the Justice Department’s ongoing investigation and prosecution of individuals responsible for these crimes.

In addition, a federal grand jury in the Eastern District of Michigan returned an indictment today charging six VW executives and employees for their roles in the nearly 10-year conspiracy. Heinz-Jakob Neusser, 56; Jens Hadler, 50; Richard Dorenkamp, 68; Bernd Gottweis, 69; Oliver Schmidt, 48; and Jürgen Peter, 59, all of Germany, are charged with one count of conspiracy to defraud the United States, defraud VW’s U.S. customers and violate the Clean Air Act by making false representations to regulators and the public about the ability of VW’s supposedly “clean diesel” vehicles to comply with U.S. emissions requirements. The indictment also charges Dorenkamp, Neusser, Schmidt and Peter with Clean Air Act violations and charges Neusser, Gottweis, Schmidt and Peter with wire fraud counts. This case has been assigned to U.S. District Judge Sean F. Cox of the Eastern District of Michigan.

Schmidt was arrested on Jan. 7, 2017, in Miami during a visit to the United States and appeared in federal court there on Monday. The other defendants are believed to presently reside in Germany.

Today’s announcement was made by Attorney General Loretta E. Lynch, EPA Administrator Gina McCarthy and Assistant Administrator Cynthia Giles, Deputy Attorney General Sally Q. Yates, FBI Deputy Director Andrew McCabe, Acting Deputy Secretary Russell C. Deyo for the Department of Homeland Security, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.

“Volkswagen’s attempts to dodge emissions standards and import falsely certified vehicles into the country represent an egregious violation of our nation’s environmental, consumer protection and financial laws,” said Attorney General Lynch. “Today’s actions reflect the Justice Department’s steadfast commitment to defending consumers, protecting our environment and our financial system and holding individuals and companies accountable for corporate wrongdoing. In the days ahead, we will continue to examine Volkswagen’s attempts to mislead consumers and deceive the government. And we will continue to pursue the individuals responsible for orchestrating this damaging conspiracy.”

“When Volkswagen broke the law, EPA stepped in to hold them accountable and address the pollution they caused,” said EPA Administrator McCarthy. “EPA’s fundamental and indispensable role becomes all too clear when companies evade laws that protect our health. The American public depends on a strong and active EPA to deliver clean air protections, and that is exactly what we have done.”

“This wasn’t simply the action of some faceless, multinational corporation,” said Deputy Attorney General Yates. “This conspiracy involved flesh-and-blood individuals who used their positions within Volkswagen to deceive both regulators and consumers. From the start of this investigation, we’ve been committed to ensuring that those responsible for criminal activity are held accountable. We’ve followed the evidence—from the showroom to the boardroom—and it brought us to the people whose indictments we’re announcing today.”

“Americans expect corporations to operate honestly and provide accurate information,” said Deputy Director McCabe. “Volkswagen’s data deception defrauded the U.S. government, violated the Clean Air Act and eroded consumer trust. This case sends a clear message to corporations, no matter how big or small, that if you lie and disregard rules that protect consumers and the environment, you will be caught and held accountable.”

“Blatant violations of U.S. customs and environmental laws will not be tolerated, and this case reinforces that,” said Acting Deputy Secretary Deyo. “These actions put our economy, consumers and citizens at risk, and the Department of Homeland Security and U.S. Customs and Border Protection will continue to take every step necessary to protect the American people.”

According to the indictment, the individuals occupied the following positions within the company:

1. Heinz-Jakob Neusser: from July 2013 until September 2015, Neusser worked for VW as head of Development for VW Brand and was also on the management board for VW Brand. From October 2011 until July 2013, Neusser served as the head of Engine Development for VW.

2. Jens Hadler: from May 2007 until March 2011, Hadler worked for VW as head of Engine Development for VW.

3. Richard Dorenkamp: from 2003 until December 2013, Dorenkamp worked for VW as the head of VW’s Engine Development After-Treatment Department in Wolfsburg, Germany. From 2006 until 2013, Dorenkamp led a team of engineers that developed the first diesel engine that was designed to meet the new, tougher emissions standards in the United States.

4. Bernd Gottweis: from 2007 until October 2014, Gottweis worked for VW as a supervisor with responsibility for Quality Management and Product Safety.

5. Oliver Schmidt: from 2012 through February 2015, Schmidt was the General Manager in charge of the Environment and Engineering Office, located in Auburn Hills, Michigan. From February 2015 through September 2015, Schmidt returned to VW headquarters to work directly for Neusser, including on emissions issues.

6. Jürgen Peter: Peter worked in the VW Quality Management and Product Safety Group from 1990 until the present. From March 2015 until July 2015, Peter was one of the VW liaisons between the regulatory agencies and VW.

According to the charging documents and statement of facts filed with the court, in 2006, VW engineers began to design a new diesel engine to meet stricter U.S. emissions standards that would take effect by model year 2007. This new engine would be the cornerstone of a new project to sell diesel vehicles in the United States that would be marketed to buyers as “clean diesel,” a project that was an important strategic goal for VW’s management. When the co-conspirators realized that they could not design a diesel engine that would both meet the stricter NOx emissions standards and attract sufficient customer demand in the U.S. market, they decided they would use a software function to cheat standard U.S. emissions tests.

VW engineers working under Dorenkamp and Hadler designed and implemented a software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or it was being driven on the road under normal driving conditions. The software accomplished this by recognizing the standard published drive cycles. Based on these inputs, if the vehicle’s software detected that it was being tested, the vehicle performed in one mode, which satisfied U.S. NOx emissions standards. If the software detected that the vehicle was not being tested, it operated in a different mode, in which the vehicle’s emissions control systems were reduced substantially, causing the vehicle to emit NOx up to 40 times higher than U.S. standards.

Disagreements over the direction of the project were articulated at a meeting over which Hadler presided, and which Dorenkamp attended. Hadler authorized Dorenkamp to proceed with the project knowing that only the use of the defeat device software would enable VW diesel vehicles to pass U.S. emissions tests. Starting with the first model year 2009 of VW’s new “clean diesel” engine through model year 2016, Dorenkamp, Neusser, Hadler and their co-conspirators installed, or caused to be installed, the defeat device software into the vehicles imported and sold in the United States. In order to sell their “clean diesel” vehicles in the United States, the co-conspirators lied to the EPA about the existence of their test-cheating software, hiding it from the EPA, CARB, VW customers and the U.S. public. Dorenkamp, Neusser, Hadler, Gottweis, Schmidt, Peter and their co-conspirators then marketed, and caused to be marketed, VW diesel vehicles to the U.S. public as “clean diesel” and environmentally-friendly.

Around 2012, hardware failures developed in certain of the diesel vehicles. VW engineers believed the increased stress on the exhaust system from being driven in the “dyno mode” could be the cause of the hardware failures. In July 2012, VW engineers met with Neusser and Gottweis to explain what they believed to be the cause of the hardware failures and explained the defeat device. Gottweis and Neusser each encouraged further concealment of the software. In 2014, the co-conspirators perfected their cheating software by starting the vehicle in “street mode,” and, when the defeat device realized the vehicle was being tested, switching to the “dyno mode.” To increase the ability of the vehicle’s software to recognize that it was being tested on the dynamometer, the VW engineers activated a “steering wheel angle recognition feature.” With these alterations, it was believed the stress on the exhaust system would be reduced because the engine would not be operating for as long in “dyno mode.” The new function was installed in existing vehicles through software updates. The defendants and other co-conspirators falsely represented, and caused to be represented, to U.S. regulators, U.S. customers and others that the software update was intended to improve durability and emissions issues in the vehicles when, in fact, they knew it was used to more quickly deactivate emission control systems when the vehicle was not undergoing emissions tests.

After years of VW selling their “clean diesel” vehicles in the United States that had the cheating software, in March 2014, West Virginia University’s Center for Alternative Fuels, Engines and Emissions published the results of a study commissioned by the International Council on Clean Transportation (ICCT). The ICCT study identified substantial discrepancies in the NOx emissions from certain VW vehicles when tested on the road compared to when these vehicles were undergoing EPA and CARB standard drive cycle tests on a dynamometer. Rather than tell the truth, VW employees, including Neusser, Gottweis, Schmidt and Peter, pursued a strategy to disclose as little as possible – to continue to hide the existence of the software from U.S. regulators, U.S. customers and the U.S. public.

Following the ICCT study, CARB, in coordination with the EPA, attempted to work with VW to determine the cause for the higher NOx emissions in VW diesel vehicles when being driven on the road as opposed to on the dynamometer undergoing standard emissions test cycles. To do this, CARB, in coordination with the EPA, repeatedly asked VW questions that became increasingly more specific and detailed, and tested the vehicles themselves. In implementing their strategy of disclosing as little as possible, Neusser, Gottweis, Schmidt, Peter and their co-conspirators provided EPA and CARB with testing results, data, presentations and statements in an attempt to make it appear that there were innocent mechanical and technological problems to blame, while secretly knowing that the primary reason for the discrepancy was their cheating software that was installed in every VW diesel vehicle sold in the United States. The co-conspirators continued this back-and-forth with the EPA and CARB for over 18 months, obstructing the regulators’ attempts to uncover the truth.

The charges in the indictment are merely accusations and each defendant is presumed innocent unless and until proven guilty.

The case was investigated by the FBI and EPA-CID. The prosecution and corporate investigation are being handled by Securities and Financial Fraud Unit Chief Benjamin D. Singer and Trial Attorneys David Fuhr, Alison Anderson, Christopher Fenton and Gary Winters of the Criminal Division’s Fraud Section; Trial Attorney Jennifer Blackwell of the Environment and Natural Resources Division’s Environmental Crimes Section; and from the U.S. Attorney’s Office for the Eastern District of Michigan, Criminal Division Chief Mark Chutkow and White Collar Crime Unit Chief John K. Neal and Assistant U.S. Attorney Timothy J. Wyse. The Justice Department’s Office of International Affairs also assisted in the case. The Justice Department also extends its thanks to the Office of the Public Prosecutor in Braunschweig, Germany.

The Civil Resolutions:

The first civil settlement resolves EPA’s remaining claims against six VW-related entities (including Volkswagen AG, Audi AG and Porsche AG) currently pending in the multidistrict litigation before U.S. District Judge Charles R. Breyer of the Northern District of California. EPA’s complaint alleges that VW violated the Clean Air Act by selling approximately 590,000 cars that the United States alleges are equipped with defeat devices and, during normal operation and use, emit pollution significantly in excess of EPA-compliant levels. VW has agreed to pay $1.45 billion to resolve EPA’s civil penalty claims, as well as the civil penalty claim of CBP described below. The consent decree resolving the Clean Air Act claims also resolves EPA’s remaining claim in the complaint for injunctive relief to prevent future violations by requiring VW to undertake a number of corporate governance reforms and perform in-use testing of its vehicles using a portable emissions measurement system of the same type used to catch VW’s cheating in the first place. Today’s settlement is in addition the historic $14.7 billion settlement that addressed the 2.0 liter cars on the road and associated environmental harm announced in June 2016, and $1 billion settlement that addressed the 3.0 liter cars on the road and associated environmental harm announced in December 2016, which together included nearly $3 billion for environmental mitigation projects.

A second civil settlement resolves civil fraud claims asserted by U.S. Customs and Border Protection (CBP) against VW entities. VW entities violated criminal and civil customs laws by knowingly submitting to CBP material false statements and omitting material information, over multiple years, with the intent of deceiving or misleading CBP concerning the admissibility of vehicles into the United States. CBP enforces U.S. customs laws as well as numerous laws on behalf of other governmental agencies related to health, safety, and border security. At the time of importation, VW falsely represented to CBP that each of the nearly 590,000 imported vehicles complied with all applicable environmental laws, knowing those representations to be untrue. CBP’s relationship with the importing community is one based on trust, and this resolution demonstrates that CBP will not tolerate abrogation of importer responsibilities and schemes to defraud the revenue of the United States. The $1.45 billion paid under the EPA settlement also resolves CBP’s claims.

In a third settlement, VW has agreed to pay $50 million in civil penalties for alleged violations of FIRREA. The Justice Department alleged that a VW entity supported the sales and leasing of certain VW vehicles, including the defeat-device vehicles, by offering competitive financing terms by purchasing from dealers certain automobile retail installment contracts (i.e. loans) and leases entered into by customers that purchased or leased certain VW vehicles, as well as dealer floorplan loans. These financing arrangements were primarily collateralized by the vehicles underlying the loan and lease transactions. The department alleged that certain of these loans, leases and floorplan financings were pooled together to create asset-backed securities and that federally insured financial institutions purchased certain notes in these securities. Today’s FIRREA resolution is part of the department’s ongoing efforts to deter wrongdoers from using the financial markets to facilitate their fraud and to ensure the stability of the nation’s financial system.

Except where based on admissions by VW, the claims resolved by the civil agreements are allegations only.

The civil settlements were handled by the Environmental and Natural Resources Division’s Environmental Enforcement Section, with assistance from the EPA; the Civil Division’s Commercial Litigation Branch; and CBP.

* * *

Court documents:

The owners and operators of the tax return preparation businesses Q A Tax Service Inc., Unik Tax Refund, D&M Tax Solutions, LED Tax Services, and UJM Tax Services prepare false tax returns, according to three separate civil suits filed by the United States. The government seeks court orders barring the owners and operators of these businesses from preparing tax returns for others and owning and operating a tax return preparation business. The government also requests court orders requiring these owners and operators to disgorge the gross receipts they obtained from the preparation of federal tax returns that make, among other things, false claims.

The government filed the first of these three suits, in federal court in Orlando, Florida, against two of the owners and operators of Q A Tax Service Inc., Vicky Barwick of Orlando, Florida and Jasmine Morales of Winter Garden, Florida. According to that complaint, Q A Tax Service Inc. has store locations in Florida, Illinois, Indiana, and North Carolina. The government filed the second of these suits, in federal court in Fayetteville, North Carolina, against another owner and operator of Q A Tax Service Inc., Tanisha Salmon of Fayetteville.

The government filed the third suit, in federal court in Orlando, Florida, against the owners and operators of the following tax return preparation businesses, each of which has locations in Florida:

• Unik Tax Refund LLC – Yves Demesmin of Mt. Dora, Florida;
• UJM Tax Services LLC – Joseph Demesmin of Boca Raton, Florida;
• LED Tax Services – Elie Dorceus of Boynton Beach, Florida; and
• D&M Tax Solutions – Mario Cooper and Dia Fleming of Palm Coast, Florida.

In these complaints, the government alleges that Barwick, Morales, Salmon, Yves Demesmin, Joseph Demesmin, Dorceus, Cooper, and Fleming (the defendants) each use, in their respective businesses, a model previously used by the tax return preparation business formerly known as LBS Tax Services. Since 2014, the United States has sued nearly a dozen former LBS franchisees and managers and obtained court orders requiring these individuals to disgorge millions of dollars in fees, in addition to barring these individuals from owning and operating a tax return preparation business and from preparing tax returns for others.

The government alleges in its complaints that the defendants used the LBS model to prepare and file false tax returns to fraudulently increase their customers’ refunds and profit through exorbitant and often undisclosed fees—all at the expense of their customers and the U.S. Treasury. Specifically, the complaints allege that the defendants engage in fraudulent activity, including:

• Falsely claiming the Earned Income Tax Credit;
• Fabricating businesses and related business income and expenses;
• Fabricating deductions, particularly for unreimbursed employee business expenses; and
• Charging deceptive and unconscionable fees.

The Internal Revenue Service (IRS) is reminding taxpayers that the 2017 individual income tax return filing season begins Jan. 23, and there is information available on the IRS’s website. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2016 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax 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.

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

Attorney General Lynch Will Also Deliver Capstone Speech on Community Policing

Attorney General Loretta E. Lynch will travel to Baltimore THURSDAY, JAN. 12, to announce a consent decree with the City of Baltimore. 
 
Later that day, the Attorney General will deliver a capstone speech on community policing that will outline the Justice Department’s efforts to highlight collaborative programs and policing practices in jurisdictions around the country that are dedicated to advancing public safety, strengthening police-community relations, and fostering mutual trust and respect. 
 
PRESS CONFERENCE WITH THE CITY OF BALTIMORE
 
WHO:          Attorney General Loretta E. Lynch 
                     Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice 
                     Department’s Civil Rights Division
                     Baltimore Mayor Catherine Pugh 
                     Commissioner Kevin Davis of the Baltimore City Police Department
 
WHAT:         Press conference to announce a consent decree with the city of Baltimore. 
 
WHEN:         THURSDAY, JANUARY 12, 2017 
                      10:30 a.m. EST 
 
WHERE:      Baltimore City Hall 
                    Ceremonial Room
                    250 City Hall, 100 N. Holliday St. 
                    Baltimore, MD 21202  
                    OPEN PRESS (Camera Preset by for K9 Sweep: 9:45 a.m. EST // 
                    Final Access: 10:10 a.m. EST)
                        
NOTE:  All media must present government-issued photo I.D. (such as a driver’s license as well as valid media credentials).  Press inquiries regarding logistics should be directed to Anthony McCarthy at anthony.mccarthy@baltimorecity.gov or (443) 902-1763. 
 
COMMUNITY POLICING CAPSTONE SPEECH AT THE UNIVERSITY OF BALTIMORE SCHOOL OF LAW
 
WHAT:          Attorney General Loretta E. Lynch will deliver her capstone speech                       on community policing.
 
WHO:           Attorney General Loretta E. Lynch 
                      Principal Deputy Assistant Attorney General Vanita Gupta,                       head of the Civil Rights Division
                     Director Ronald Davis of the Office of Community Oriented Policing Services
 
WHEN:        THURSDAY, JANUARY 12, 2016 
                     4:00 p.m. EST
 
WHERE:         University of Baltimore School of Law
                       John and Frances Angelos Law Center
                       Moot Courtroom
                       1401 N. Charles St.
                       Baltimore, MD 21201
                       OPEN PRESS (Camera Preset by for K9 Sweep: 1:15 p.m. EST //
                       Final Access: 3:45 p.m. EST)
 
NOTE:  Media should RSVP to press@usdoj.gov.  Questions regarding logistics should go to the Office of Public Affairs.  All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials.  

A federal grand jury returned an indictment against three former traders of major banks for their alleged roles in a conspiracy to manipulate the price of U.S. dollars and euros exchanged in the foreign currency exchange (FX) spot market, the Justice Department announced today.

The one-count indictment, filed in the U.S. District Court for the Southern District of New York, charges Richard Usher (former Head of G11 FX Trading-UK at an affiliate of The Royal Bank of Scotland plc, as well as former Managing Director at an affiliate of JPMorgan Chase & Co.), Rohan Ramchandani (former Managing Director and head of G10 FX spot trading at an affiliate of Citicorp) and Christopher Ashton (former Head of Spot FX at an affiliate of Barclays PLC) with conspiring to fix prices and rig bids for U.S. dollars and euros exchanged in the FX spot market.

“Whether a crime is committed on the street corner or in the corner office, no one gets a free pass simply because they were working for a corporation when they broke the law,” said Deputy Attorney General Sally Q. Yates.  “Today’s indictment reiterates our commitment to holding individuals accountable for corporate misconduct.”  

“The charged conspiracy involved competitors manipulating the exchange rate for the hundreds of billions of dollars traded on foreign exchange markets for their benefit and to the detriment of their customers,” said Principal Deputy Associate Attorney General Bill Baer.  “We previously secured criminal convictions of the financial institutions involved in the misconduct. Today we seek to hold accountable the individuals who conspired on their behalf.”

“These former bank traders are alleged to have gained an unfair advantage on their counterparts by committing corporate fraud involving the manipulation of the foreign currency exchange,” said Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.  “Their actions affected worldwide trading positions in the global marketplace.  Today’s announcement reinforces the FBI’s commitment to investigate and prosecute individuals responsible for criminally interfering with the global financial markets.”

The indictment follows the May 20, 2015 agreements of Barclays PLC, Citicorp, JPMorgan Chase & Co., and The Royal Bank of Scotland plc to plead guilty to conspiring to fix prices and rig bids for U.S. dollars and euros exchanged in the FX spot market, and to pay criminal fines totaling more than $2.5 billion.  On Jan. 5, 2017, the federal district court in Connecticut accepted those plea agreements and sentenced the banks accordingly.

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

According to the indictment, from at least December 2007 through at least January 2013, Usher, Ramchandani and Ashton (along with unnamed co-conspirators) conspired to fix prices and rig bids for the euro – U.S. dollar currency pair.  Called “the Cartel” or “the Mafia,” this group of traders participated in telephone calls and electronic messages, including near-daily conversations in a private electronic chat room, to carry out their conspiracy.  Their anticompetitive behavior included colluding around the time of certain benchmark rates known as fixes, such as coordinating their orders and trading to manipulate the price of the currency pair by the time of the fix.  In another example of collusion, the conspirators coordinated their orders and trading to manipulate the price of the currency pair, such as by refraining from entering orders or trading at certain times.

The charge in the indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.

The Department of Justice has now charged six individuals in the FX investigation.  On July 20, 2016, fraud charges were brought by the Justice Department’s Criminal Division against two FX executives for conspiring to defraud a client of their bank through a front running scheme.  On Jan. 4, 2017, an antitrust charge and plea agreement were announced for a trader in connection with a conspiracy to manipulate emerging market FX rates.

This investigation is being conducted by the FBI’s Washington Field Office.  This prosecution is being handled by the Antitrust Division’s New York Office.  The Criminal Division’s Fraud Section also provided substantial assistance in this matter.

The charge in this case was brought in connection with the President Obama’s Financial Fraud Enforcement Task Force.  The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.   

For more information about the task force, please visit www.StopFraud.gov.  Anyone with information concerning price fixing or other anticompetitive conduct in the FX market should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at (415) 553-7400.

Usher et al. Indictment

Attorney General Loretta E. Lynch released the following statement on the sentencing of Dylann Roof:

“On June 17, 2015, Dylann Storm Roof sought out and opened fire on African-American parishioners engaged in worship and bible study at Emanuel African Methodist Episcopal Church in Charleston, South Carolina.  He did so because of their race.  And he did so to interfere with their peaceful exercise of religion.  The victims in the case led lives as compassionate civic and religious leaders; devoted public servants and teachers; and beloved family members and friends.  They include a young man in the bloom of youth and an 87-year-old grandmother who still sang in the church choir.  We remember those who have suffered, and especially those that lost their lives: Cynthia Graham Hurd, 54; Susie Jackson, 87; Ethel Lance, 70; Rev. DePayne Middleton Doctor, 49; Rev. Clementa Pinckney, 41; Tywanza Sanders, 26; Rev. Daniel Simmons Sr., 74; Sharonda Coleman-Singleton, 45; and Myra Thompson, 59.   

“Today, a jury of his peers considered the actions Roof took on that fateful day, and they rendered a verdict that will hold him accountable for his choices. 

“No verdict can bring back the nine we lost that day at Mother Emanuel.  And no verdict can heal the wounds of the five church members who survived the attack or the souls of those who lost loved ones to Roof’s callous hand.  But we hope that the completion of the prosecution provides the people of Charleston – and the people of our nation – with a measure of closure.  We thank the jurors for their service, the people of Charleston for their strength and support, and the law enforcement community in South Carolina and throughout the country for their vital work on this case.”

Oliver Schmidt, a Volkswagen (VW) engineer, was charged in a criminal complaint unsealed today for his alleged role in a nearly decade-long conspiracy to defraud U.S. regulators and U.S. Volkswagen customers by implementing software specifically designed to cheat U.S. emissions tests in hundreds of thousands of Volkswagen “clean diesel” vehicles.

Assistant Attorney General Leslie R. Caldwell of the Criminal Division, Assistant Attorney General John C. Cruden of the Environment and Natural Resources Division and U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan made the announcement.

Schmidt, 48, a resident of Germany, was charged with one count of conspiracy to defraud the United States, to commit wire fraud and to violate the Clean Air Act. Schmidt was arrested on Jan. 7, 2017, in Miami and will make an initial appearance today, Jan. 9, 2017, at 2:00 p.m. EST before U.S. Magistrate Judge William C. Turnoff of the Southern District of Florida.

According to the complaint, Schmidt joined VW in or about 1997, and from 2012 to March 2015 was general manager for VW in Auburn Hills, Michigan, where he was primarily responsible for communicating and coordinating with U.S. regulatory agencies, including the U.S. Environmental Protection Agency (EPA) and the California Air Resources Board (CARB). In March 2015, Schmidt was promoted to principal deputy of a senior manager of VW and returned to VW headquarters in Wolfsburg, Germany, where he played a direct role in VW’s response to questions from U.S. regulators.

In about 2006, VW employees based in Germany in the engine development department started to design a new “EA 189” 2.0-liter diesel engine for sale in the United States. When employees realized that they could not design a diesel engine that would meet the stricter U.S. emissions standards, they allegedly designed and implemented software to recognize whether a vehicle was undergoing standard U.S. emissions testing on a dynamometer or being driven on the road under normal driving conditions (the defeat device) in order to cheat the emissions tests.

As part of the certification process for each new model year, including model years 2009 through 2016, the co-conspirators continued to falsely and fraudulently certify to EPA and CARB that VW diesel vehicles met U.S. emissions standards and complied with the Clean Air Act, according to the complaint affidavit. By the summer of 2015, U.S. regulators had discovered that VW diesel vehicles emitted substantially higher emissions when being driven on the road than when undergoing standard U.S. emissions tests and had repeatedly asked VW for an explanation of this discrepancy. The complaint alleges that Schmidt knew that the reason for this discrepancy was VW’s use of defeat device software. Nevertheless, in the summer of 2015, Schmidt allegedly agreed to travel to the United States to participate in direct conversations with U.S. regulators. According to the complaint, during in-person and teleconference meetings with U.S. regulators, Schmidt hid the existence of the defeat device from the U.S. regulators.

A criminal complaint is merely an accusation, and the accused is presumed innocent unless proven guilty in a court of law.

FBI’s Detroit Office and the EPA-Criminal Investigation Division are investigating the case. Deputy Chief Benjamin D. Singer and Trial Attorney David Fuhr of the Criminal Division’s Fraud Section, Trial Attorney Jennifer L. Blackwell of the Environment and Natural Resource Division’s Environmental Crimes Section and White Collar Crime Unit Chief John K. Neal of the Eastern District of Michigan are prosecuting the case.

Attorney General Loretta E. Lynch delivered the following statement on the recent deaths of the two officers in Florida at the beginning of today’s event commemorating National Slavery and Human Trafficking Prevention Month:

“Good afternoon, everyone. Before we begin, I want to take a moment to address the shooting of a police officer this morning in Orlando. Master Sergeant Debra Clayton, a 17-year veteran of the Orlando Police Department, was shot and killed this morning by an individual evading arrest on murder charges. During the subsequent search for the shooter, a deputy sheriff with the Orange County Sheriff’s Office, whose name has not been released, was killed in an auto accident as part of the pursuit. The U.S. Attorney’s Office in the Middle District of Florida is in regular contact with our local counterparts. The FBI, ATF and U.S. Marshals Service are all actively assisting with the search for the perpetrator. We will continue to offer any and all assistance to our state and local partners as they continue to investigate this devastating incident.

“These tragic deaths make clear the great risks that our brave men and women in uniform face each and every day, and the deep and abiding gratitude that our nation owes them for their service. As they are responding to events in their community, they are often the first on the scene of dangerous events – as we saw when they responded to the shootings at the Fort Lauderdale Airport last Friday, when five innocent people lost their lives to a gunman. The U.S. Attorney for the Southern District of Florida, Wilfredo Ferrer, is here with me today, and his office filed federal charges in that matter on Saturday.

“My thoughts and prayers – and those of my colleagues at the Department of Justice – are with the families and loved ones of those lost and wounded in these tragic events.”

The Justice Department announced today that it has moved to intervene in Disability Rights Florida Inc., v. Julie Jones, a private lawsuit alleging that the Florida Department of Corrections (FDOC) failed to protect the rights of inmates with disabilities in violation of Title II of the Americans with Disabilities Act (ADA) and Section 504 of the Rehabilitation Act.

In the motion, filed in the Northern District of Florida, the department seeks to join a case brought by Disability Rights Florida Inc. (DRF), a private protection and advocacy group.  In the lawsuit, DRF alleges, among other things, that FDOC has excluded inmates with disabilities from its programs, services and activities.  DRF also alleges that FDOC failed to provide the means for effective communication for inmates with hearing loss.  In the motion, the United States highlighted its substantial legal interest in the outcome of DRF’s case because the department is the primary agency responsible for enforcing the ADA.

“The ADA and Section 504 afford all people with disabilities, including prisoners, the right to fair treatment and effective communication,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “We believe our participation in this case will help to ensure a just outcome for all.”

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

Tax Pioneer, a Detroit-area tax return preparation business, and its alleged owner, Dieasha Davis fraudulently maximize tax refunds by falsifying income and deductions on tax returns, according to a civil complaint filed by the Justice Department today. The suit, filed in federal court in Detroit, seeks to permanently bar Davis and Tax Pioneer from preparing federal tax returns for others.

According to the suit, Davis formerly managed and prepared tax returns for a Liberty Tax Service franchisee. Davis’ fraudulent preparation of tax returns allegedly encompasses both her time at Liberty Tax Service and, since 2013, at Tax Pioneer. The government’s complaint against Davis and Tax Pioneer alleges that the defendants improperly prepare tax returns that claim false or inflated income and expenses, bogus dependents, improper filing statuses, and false itemized deductions, all which fraudulently maximized customer refunds and refundable credits.

A few examples alleged in the complaint detail how Davis intentionally reduced her customers’ reported income tax liabilities by reporting false information. In January 2016, Davis prepared a tax return for a customer that reported over $18,500 in losses from a non-existent “Property Management Real Estate” business, according to the complaint. Davis also allegedly claimed a bogus expense deduction for the same customer reporting over $9,800 of fictitious mortgage interest. Also in January 2016, Davis prepared a tax return for another customer and added to this return $6,800 in fictitious wages in order to inflate a claim for the Earned Income Tax Credit (EITC), according to the complaint. The EITC is a benefit for working people who have low to moderate income; this credit can reduce the amount of tax owed and increase the amount of refund. The government alleges that Davis even concocted a Form W-2 to report these fraudulent wages.

The government also alleges that Davis encouraged customers audited by the Internal Revenue Service (IRS) to submit false records. According to the complaint, a preparer at Tax Pioneer reported a fictitious child care business on a customer’s tax return for two years and reported false income and expenses to make the business appear legitimate. The government alleges that after the IRS selected these returns to examine, the customer sought assistance from Tax Pioneer. Davis then provided this customer with blank worksheets, told the customer to add false business expenses and income using different color pens, and provide these bogus documents to the IRS, according to the complaint.

The IRS is reminding taxpayers that the 2017 individual income tax return filing season begins Jan. 23, 2017, and there is information available on the IRS’s website. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2016 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax 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.

Justice Department Issues Report as Part of the Commemoration of National Slavery and Human Trafficking Prevention Month

As part of National Slavery and Human Trafficking Prevention Month, Attorney General Loretta E. Lynch today announced the Justice Department’s National Strategy to Combat Human Trafficking (National Strategy), as required by the 2015 Justice for Victims of Trafficking Act. In addition to this new National Strategy, every year, the Attorney General also submits the Attorney General’s Annual Report to Congress and Assessment of U.S. Government Activities to Combat Trafficking in Persons, which details the programs and activities carried out by all federal agencies and sets forth recommended goals for the upcoming year. The most recent report, for FY 2015, is available here. The department has also launched www.justice.gov/humantrafficking. This page will serve as a central destination to learn more about the department’s efforts to combat the scourge of human trafficking.

“Human trafficking is one of the most devastating crimes that we confront,” said Attorney General Lynch.  “The National Strategy to Combat Human Trafficking summarizes the work that our many components and our U.S. Attorney's Offices are doing to better help survivors and target traffickers. These efforts encourage increased collaboration within the department as well as between the department and our partners in order to build on our successes as we prepare to take on the work that remains.”

The department will implement and maintain the National Strategy in order to enhance the department’s work to combat human trafficking. The National Strategy sets forth plans to enhance coordination within the department and to develop specific strategies within each federal district to stop human trafficking. The National Strategy includes the following:

• An assessment of the threat presented by human trafficking based on FBI case information.
• An account of the work of the department’s components that are most extensively involved in anti-trafficking efforts, including the Civil Rights Division’s Human Trafficking Prosecution Unit; the Criminal Division’s Child Exploitation and Obscenity Section; the U.S. Attorneys’ Offices; the FBI; and various grant-making components within the Office of Justice Programs.
• A description of the district-specific strategies developed by each U.S. Attorney’s Office.
• A discussion of human trafficking and anti-trafficking efforts in Indian Country.
• Information about annual spending dedicated to preventing and combating human trafficking.
• A description of plans to encourage cooperation, coordination and mutual support between the private and non-profit sector and the department to combat human trafficking.

Raising awareness, supporting initiatives that prevent human trafficking and bringing justice to those that bring harm to the vulnerable has been a top priority of Attorney General Lynch. The department’s anti-trafficking efforts involve numerous components engaged in a full spectrum of activities: investigations, prosecutions, services for victims, enforcement initiatives to strengthen anti-trafficking partnerships, innovative prevention efforts, capacity-building programs to advance survivor-centered anti-trafficking strategies and grant funding to state, local and tribal authorities and to non-governmental organizations.

To learn more about the report and the department’s efforts to combat human trafficking visit www.justice.gov/humantrafficking.

Szuhsiung Ho, aka Allen Ho, 66, a naturalized U.S. citizen, pleaded guilty to conspiracy to unlawfully engage or participate in the production or development of special nuclear material outside the U.S., without the required authorization from the U.S. Department of Energy (DOE) in violation of the Atomic Energy Act.

Acting Assistant Attorney General for National Security Mary B. McCord and U.S. Attorney Nancy Stallard Harr of the Eastern District of Tennessee made the announcement.

In April 2016, a federal grand jury issued a two-count indictment against Ho; China General Nuclear Power Company (CGNPC), the largest nuclear power company in China, and Energy Technology International (ETI), a Delaware corporation.  At the time of the indictment Ho was a nuclear engineer, employed as a consultant by CGNPC and was also the owner of ETI.   CGNPC specialized in the development and manufacture of nuclear reactors and was controlled by China’s State-Owned Assets Supervision and Administration Commission.

According to documents filed in the case, beginning in 1997 and continuing through April 2016, Ho conspired with others to engage or participate in the development or production of special nuclear material in China, without specific authorization to do so from the U.S. Secretary of Energy, as required by law.  Ho assisted CGNPC in procuring U.S.-based nuclear engineers to assist CGNPC and its subsidiaries with designing and manufacturing certain components for nuclear reactors more quickly by reducing the time and financial costs of research and development of nuclear technology.  In particular, Ho sought technical assistance related to CGNPC’s Small Modular Reactor Program; CGNPC’s Advanced Fuel Assembly Program; CGNPC’s Fixed In-Core Detector System; and verification and validation of nuclear reactor-related computer codes.

Under the direction of CGNPC, Ho also identified, recruited, and executed contracts with U.S.-based experts from the civil nuclear industry who provided technical assistance related to the development and production of special nuclear material for CGNPC in China. Ho and CGNPC also facilitated the travel to China and payments to the U.S.-based experts in exchange for their services.

Sentencing has been set for May 17, 2017, at 11:00 a.m., in U.S. District Court in Knoxville, Tennessee.  Ho faces a maximum sentence of 10 years in prison and a maximum $250,000 fine. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

This case was investigated by the FBI, Tennessee Valley Authority-Office of the Inspector General, DOE-National Nuclear Security Administration and U.S. Immigration and Customs Enforcement Homeland Security Investigations, with assistance from other agencies. Assistant U.S. Attorneys Charles E. Atchley Jr. and Bart Slabbekorn of the Eastern District of Tennessee, and Trial Attorney Casey T. Arrowood of the Counterintelligence and Export Control Section and Attorney Jeffrey M. Smith of the Appellate Unit in the National Security Division, represented the U.S.

A federal judge sentenced two Long Island, New York, sales representatives to prison for fraudulently selling vending machine businesses, the Justice Department announced today. The defendants worked at Multivend, LLC, d/b/a/ Vendstar, based in Deer Park, New York. Before closing in July 2010, Vendstar made approximately $10 to $12 million in sales per year.

The sentences were imposed this week by U.S. District Court Judge Joan M. Azrack of the Eastern District of New York.

• Scott M. Doumas, 44, of Setauket-East Setau, New York, was sentenced to serve four years in prison and ordered to pay $290,664 in restitution. Doumas worked as a sales representative and sales manager at Vendstar from 1999 to 2009. Doumas was found guilty of mail fraud and conspiracy after a six-week jury trial in 2015.

• Paul E. Raia, 65, of Brookhaven, New York, was sentenced to serve three years in prison and ordered to pay $339,354 in restitution. Raia was a salesman at Vendstar from 2006 to 2010. Raia was found guilty at trial of wire fraud and conspiracy.

  The Vendstar investigation began in 2010 and resulted in criminal charges filed against 22 individuals in 2012 and 2013. All 22 of those defendants were convicted, and 18 of them have now been sentenced.

“The Department of Justice will work relentlessly to bring fraudsters to justice and to secure restitution for their victims,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The prison sentences imposed this week are the result of more than six years of hard work, and demonstrate the Department’s commitment to investigating, prosecuting, and punishing those who lie to steal other people’s money without remorse.”

Four additional defendants convicted of fraud in connection with Vendstar are awaiting sentencing.

Vendstar sold business opportunities for plastic bulk vending machines that, for 25 cents, dispensed loose candy and nuts. Vendstar advertised nationwide in newspapers and on the Internet. Vendstar promised to provide everything its customers would need to be successful, including the machines, candy, assistance in finding profitable locations, and ongoing customer support. The 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. Vendstar referred customers to locating companies that did not find profitable locations and regularly changed their names to stay ahead of constant complaints. Vendstar sales representatives also falsely claimed to operate their own profitable vending routes, according to evidence introduced during the trial.

Principal Deputy Assistant Attorney General Mizer commended the U.S. Postal Inspection Service for its thorough investigation. The case was prosecuted by Senior Litigation Counsel Patrick Jasperse and 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.

Deputy Attorney General Sally Q. Yates announced today that the Justice Department is issuing, for the first time, department-wide procedures on eyewitness identification, which will apply to agents at FBI, Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the U.S. Marshals Service, and which will guide federal prosecutors when deciding whether to charge a case involving an eyewitness identification. The new procedures were outlined in a memo from Yates to the heads of the department’s law enforcement agencies. The procedures address the use of “photo arrays,” the most common methods used by law enforcement to determine whether a witness can identify the perpetrator of a crime, and are designed to ensure that law enforcement personnel do not suggest to a witness, even unintentionally, that they know which photograph contains the image of the suspect.

“Eyewitness identifications play an important role in our criminal justice system, and it’s important that we get them right,” said Deputy Attorney General Yates. “With today’s procedures, we’re taking one more step to ensure that law enforcement officers obtain the most reliable evidence possible during a criminal investigation and that all Americans can have confidence in the fairness of our criminal justice system.”

The memo issued today establishes a department-wide policy directing that, except in exceptional circumstances, agents should administer photo arrays using either “blind” procedures (where the administrator is not involved in the investigation and does not know what the suspect looks like) or “blinded” procedures (where the administrator takes steps to ensure he or she cannot see the order or arrangement of the photographs viewed by the witness). In addition, the new policy stresses the importance of documenting a witness’s self-reported confidence at the moment of the initial identification, reflecting a growing body of research that such confidence is often a more reliable predictor of eyewitness accuracy that a witness’s confidence at the time of trial. The department’s new procedures call on agents to document the identification either by video- or audio-recording the test, or by having the administrator transcribe the witness’s statement as close to verbatim as possible.

In the memorandum, Yates directed the heads of the department’s law enforcement agencies to update their internal policies to reflect the new guidance and called on all department prosecutors to review the procedures prior to making a decision about whether to charge a suspect who was identified in part through the use of a photo array, whether obtained by federal, state, or local law enforcement officers.

A former vice president of U.S. operations at a now-defunct publicly traded Canadian oil-services company was indicted with orchestrating a scheme to fraudulently inflate the company’s reported revenue by approximately $100 million.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector in Charge Terrence P. McKeown of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C., Division made the announcement.

Joseph A. Kostelecky, 55, of Dickinson, North Dakota, was charged in an indictment filed yesterday in the District of North Dakota with five counts of wire fraud and one count of securities fraud for his alleged role in the scheme. Kostelecky, who previously worked at Poseidon Concepts Corporation’s field office in Dickinson, made his initial appearance earlier today before U.S. Magistrate Judge Charles S. Miller Jr. of the District of North Dakota.

“The defendant is charged with a $100 million fraud that led to the collapse of an entire company and harm to thousands of individual investors,” said Assistant Attorney General Caldwell. “Today’s indictment again makes clear the department's commitment to protecting the investing public against those who manipulate the markets to enrich themselves.”

“Postal Inspectors will continue to aggressively protect the U.S. mail from being used by fraudsters to further their stock market manipulation schemes,” said Inspector in Charge McKeown.

The indictment alleges that between November 2011 and December 2012, Kostelecky, the sole executive in Poseidon Concepts Corporation’s U.S. division, engaged in conduct that caused the company to falsely report approximately $100 million in revenue from purported contracts with oil and natural gas companies. Kostelecky’s alleged misconduct included fraudulently directing the company’s accounting staff at the U.S. corporate headquarters in Denver to record revenue from such contracts and then assuring management that the associated revenue was collectable, when he knew that such contracts either did not exist or that the associated revenue was not collectable.

When the inflated revenue came to light at the end of 2012, the company’s stock fell precipitously, with shares losing close to $1 billion in value, and the company was forced into bankruptcy. The indictment alleges that Kostelecky perpetrated the scheme in order to inflate the value of the company’s stock price and to enrich himself through the continued receipt of compensation and appreciation of his own stock and stock options.

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

This case was investigated by the USPIS Washington, D.C. Division. Trial Attorneys Anna G. Kaminska and Henry P. Van Dyck 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 District of North Dakota provided assistance in this matter.

The Fraud Section plays a pivotal role in the Department of Justice’s fight against white collar crime around the country. Today’s indictment is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.

The Justice Department released a comprehensive report today that provides an overview of the Civil Rights Division’s police reform work under Section 14141 of the Violent Crime Control and Law Enforcement Act of 1994.

The report, “The Civil Rights Division’s Pattern and Practice Police Reform Work: 1994-Present,” is designed to serve as a resource for local law enforcement agencies and communities by making the division’s police reform work more accessible and transparent.  It examines a range of topics, including the history and purpose of Section 14141, initiation and methodology of pattern-or-practice investigations, negotiation of reform agreements, the current reform model and its rationale, conclusion of agreements and the impact of pattern-or-practice enforcement on police reform and community-police trust.  To supplement the report, the division also published an interactive Police Reform Finder, which allows users to search how reform agreements have addressed specific kinds of policing issues.

“Over the years, countless law enforcement officials and community members have requested additional information about the Civil Rights Division’s policing work,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “We hope stakeholders find our report and interactive tool useful in our collective efforts to advance constitutional policing, strengthen police-community trust and promote officer and public safety.”

Since 2009, the Civil Rights Division has opened 25 investigations into law enforcement agencies and is currently enforcing 19 agreements, including 14 consent decrees and one post-judgment order. 

Police Reform Report

Police Reform Finder

First Individual Plea in Ongoing Investigation

A foreign currency exchange (FX) dealer pleaded guilty to participating in a price-fixing conspiracy in the FX market, the Justice Department announced today.  

According to the one-count information filed in the U.S. District Court for the Southern District of New York, Jason Katz was a dealer of Central and Eastern European, Middle Eastern and African (CEEMEA) currencies on the New York FX desks of three successive financial institutions.  From approximately January 2007 until July 2013, Katz and FX dealers at competing institutions conspired to suppress and eliminate competition by fixing prices in CEEMEA currencies, in violation of the Sherman Act, 15 U.S.C. § 1.  As part of this conspiracy, Katz and his co-conspirators manipulated prices on an electronic FX trading platform through the creation of non-bona fide trades, coordinated the placement of bids and offers on that platform and agreed on currency prices they would quote specific customers, among other conduct.  Under his plea agreement, Katz has agreed to cooperate with the department’s ongoing investigation into the FX market.

“These conspirators engaged in blatant collusion and succeeded in manipulating exchange rates for multiple currencies to their advantage,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division.  “Conspiracies such as this undermine the integrity of our financial markets, and the Antitrust Division is committed to ensuring that they are pursued and punished.”   

“The Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) is pleased to join the Antitrust Division and our law enforcement colleagues in pursuing this investigation of price fixing in the foreign currency exchange market,” said Acting Inspector General Frederick W. Gibson of FDIC OIG.  “We are committed in our efforts to ensure that those who seek to undermine the integrity of the financial services industry will be held accountable.” 

Katz is the first individual to plead guilty as a result of the department’s ongoing investigation into antitrust and fraud crimes in the FX market, and the third individual to be charged.  On May 20, 2015, four major banks – Citicorp, JPMorgan Chase & Co., Barclays PLC and The Royal Bank of Scotland plc – pleaded guilty at the parent level and agreed to pay collectively more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy to manipulate the price of U.S. dollars and euros exchanged in the FX market.  A fifth bank, UBS AG, pleaded guilty to manipulating the London Interbank Offered Rate (LIBOR) and other benchmark interest rates and agreed to pay a $203 million criminal penalty, after breaching its December 2012 non-prosecution agreement resolving the LIBOR investigation.  On July 20, 2016, fraud charges were brought by the Justice Department’s Criminal Division against two FX executives for conspiring to defraud a client of their bank through a front running scheme.   

This antitrust investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FDIC OIG and the FBI’s Washington Field Office.  The Criminal Division’s Fraud Section also provided substantial assistance in this matter.  

A violation of the Sherman Act, 15 U.S.C. § 1, carries a maximum penalty of ten years in prison and a $1 million fine.  The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.  

The charge was brought in connection with the President Obama’s Financial Fraud Enforcement Task Force.  The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. 

For more information about the task force, please visit www.StopFraud.gov.  Anyone with information concerning price fixing or other anticompetitive conduct in the FX market should contact the New York Office of the Antitrust Division at (212) 335-8000, call the Antitrust Division’s Citizen Complaint Center at (888) 647-3258 or  visit www.justice.gov/atr/contact/newcase.html. 

The Justice Department filed a statement of interest today addressing the harmful effects of subjecting juvenile offenders to solitary confinement.  The statement of interest was filed in V.W. et al. v. Conway et al., a class action brought by six juveniles and their parents and natural guardians to challenge the placement of youth in solitary confinement in the Onondaga County Justice Center in Syracuse, New York.

The statement of interest, filed in the U.S. District Court for the Northern District of New York, advances the United States’ position that juveniles should not be placed in restrictive housing, including solitary confinement, as explained in the department’s January 2016 Report and Recommendations Concerning the Use of Solitary Confinement.  That report provided that in very rare circumstances, juveniles may be separated from others, but only as a temporary response to behavior posing a serious and immediate risk of physical harm.  This statement of interest states that accordingly, the Federal Bureau of Prisons has ended the practice of using restrictive housing for juveniles.  The filing also explains that, consistent with scientific consensus from many child psychology experts and researchers that solitary confinement should be banned for juveniles, courts have recognized the developmental vulnerability of juvenile brains and the irreversible damage that solitary confinement can inflict on adolescents.

In V.W. et al. v. Conway et al., the plaintiffs allege that the Onondaga County Sheriff’s Office unconstitutionally imposes solitary confinement on juveniles in its custody at the Justice Center.  Plaintiffs describe this practice as involving at least 23 hours a day in an approximately 60 square foot cell with minimal furnishings, inadequate mental health care and virtually no contact with others except for adult inmates in neighboring cells who routinely harass and intimidate them.  Plaintiffs allege that between Oct. 1, 2015 and Aug. 31, 2016, at least 86 juveniles were placed in solitary confinement.  As a result, the juvenile plaintiffs allege they regularly experience anxiety, hopelessness, irritability, stress, sadness, post-traumatic symptoms, agitation and suicidal ideations.

“Both the Supreme Court and experts in the field agree that juveniles are developmentally different from adults,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “Accordingly, they must be treated differently and provided additional protections while in custody.  This brief advances the Justice Department’s efforts to protect juveniles from serious harm to their physical, psychological and social development.”   

In recent years, the department has taken several steps to address the use of solitary confinement on juveniles in jails, including the ongoing investigation of the Jefferson County Jail in Alabama and the 2016 investigation and subsequent consent decree in which the Hinds County Jail in Mississippi agreed to eliminate solitary confinement as a disciplinary sanction for juveniles.  In 2015, the department investigated and entered into a consent decree with the New York City Department of Correction Jails on Rikers Island, in which the jails agreed to ban punitive solitary confinement for juveniles.  In 2014, the department investigated and reached an agreement with the state of Ohio to reduce significantly, and ultimately eliminate, its use of seclusion on young people in its custody.

V.W. et al. v. Conway et al. was filed in December 2015.  Plaintiffs filed a motion for class certification in September 2016, and a motion for preliminary injunction in December 2016.  The court will hold a hearing on plaintiffs’ motion for preliminary injunction on Jan. 27, 2017.

For more information on the Civil Rights Division, please visit www.justice.gov/crt.

INTERPOL Washington had an exciting year in 2016!

The Department of Justice announced today that it has reached final resolutions with banks that have met the requirements of the Swiss Bank Program.  The Program provided a path for Swiss banks to resolve potential criminal liabilities in the United States, and to cooperate in the Department’s ongoing investigations of the use of foreign bank accounts to commit tax evasion.  The Program also provided a path for those Swiss banks that were not engaged in wrongful acts but nonetheless wanted a resolution of their status.  Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the Program.

“The Swiss Bank Program has been and continues to be a vital part of the Justice Department's efforts to aggressively pursue tax evasion,” said Attorney General Loretta E. Lynch. “This groundbreaking initiative has uncovered those who help facilitate evasion schemes and those who hide funds in secret offshore accounts; improved our ability to return tax dollars to the United States; and allowed us to pursue investigations into banks and individuals.  I want to thank the Swiss government for their cooperation in this effort, and I look forward to continuing our work together to eradicate fraud and corruption.”

“Working with the Swiss government, we have made financial institutions reform the way they do business,” said Principal Deputy Associate Attorney General Bill Baer.  “We are moving toward an era of global financial transparency, and those seeking to violate our nation’s tax laws, or the laws of our treaty partners, will find that the days of hiding funds abroad are over."

“The completion of the resolutions with the banks that participated in the Swiss Bank Program is a landmark achievement in the Department’s ongoing efforts to combat offshore tax evasion,” said Principal Deputy Assistant Attorney General Caroline D. Ciraolo.  “We are now in the legacy phase of the Program, in which the participating banks are cooperating, and will continue to cooperate, in all related civil and criminal proceedings and investigations.  The Tax Division, working closely with its colleagues throughout the Department and its partners within the Internal Revenue Service (IRS), will continue to hold financial institutions, professionals, and individual U.S. taxpayers accountable for their respective roles in concealing foreign accounts and assets, and evading U.S. tax obligations.”

“The completion of the examination of Category 3 and 4 banks in the Swiss Bank Program marks another milestone in the continued success of this valuable criminal compliance effort,” said Chief Richard Weber of IRS Criminal Investigation (CI).  “IRS–CI will continue to partner with DOJ in pursuing those who facilitate or engage in international income tax evasion.”

The Program established four categories of Swiss financial institutions. Category 1 included Swiss banks already under investigation when the Program was announced, and therefore, not eligible to participate.  Category 2 was reserved for those banks that advised the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S. related accounts.  In exchange for a non-prosecution agreement, the Category 2 banks made a complete disclosure of their cross-border activities, provided detailed information on accounts in which U.S. taxpayers have a direct or indirect interest, are cooperating in treaty requests for account information, are providing detailed information as to other banks that transferred funds into hidden accounts or that accepted funds when those secret accounts were closed, and must cooperate in any related criminal and civil proceedings for the life of those proceedings.  The banks were also required to pay appropriate penalties.

Banks eligible for Category 3 of the Program were those that established, with the assistance of an independent internal investigation of their cross-border business, that they did not commit tax or monetary transaction-related offenses and have an effective compliance program in place.  The Category 3 banks were required to provide the Department with an independent written report that identified witnesses interviewed and a summary of each witness’s statements, files reviewed, factual findings, and conclusions.  In addition, the Category 3 banks were required to appear before the Department and respond to any questions related to the report or their cross-border business, and to close accounts of accountholders who fail to come into compliance with U.S. reporting obligations.  Upon satisfying these requirements, Category 3 banks received a non-target letter pursuant to the terms of the Program.

Category 4 of the Program was reserved for Swiss banks that were able to demonstrate that they met certain criteria for deemed-compliance under the Foreign Account Tax Compliance Act (FATCA).  Category 4 banks also were eligible for a non-target letter.

Between March 2015 and January 2016, the Department executed non-prosecution agreements with 80 Category 2 banks and collected more than $1.36 billion in penalties.  The Department also signed a non-prosecution agreement with Finacor, a Swiss asset management firm, reflecting the Department’s willingness to reach fair and appropriate resolutions with entities that come forward in a timely manner, disclose all relevant information regarding their illegal activities and cooperate fully and completely, including naming the individuals engaged in criminal conduct.

Between July and December 2016, four banks and one bank cooperative satisfied the requirements of Category 3, making them eligible for Non-Target Letters. No banks qualified under Category 4 of the Program.

“Offshore compliance remains an important area of tax administration,” said IRS Large Business & International Division (LB&I) Commissioner Douglas O’Donnell.  “We are evaluating incoming information to detect accountholders who have evaded reporting overseas assets and income, and we are using this information to further untangle the web of financial institutions and intermediaries helping with this evasion.  We have expanded our investigations to other regions of the world, and we will continue to apply these techniques to help protect honest taxpayers.”

Principal Deputy Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-CI and the LB&I for their substantial assistance.  Principal Deputy Assistant Attorney General Ciraolo also thanked Tax Division Trial Attorneys Kimberle Dodd, Paul Galindo, Mark Kotila, Kathleen Lyon, and Thomas Voracek, who served as counsel on the Category 3 and 4 bank matters, as well as Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer and Senior Litigation Counsel Nanette L. Davis of the Tax Division.

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

General Cable Corporation, a Kentucky-based manufacturer and distributor of cable and wire, entered into a non-prosecution agreement and agreed to pay a $20 million penalty, reflecting a 50 percent reduction off the bottom of the U.S. Sentencing Guidelines fine range, to resolve the government’s investigation into improper payments to government officials in Angola, Bangladesh, China, Indonesia and Thailand to corruptly gain business in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Leslie R. Caldwell of the Criminal Division and Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division. 

“General Cable paid bribes to officials in multiple countries in a scheme that involved a high-level executive of the company and resulted in profits of more than $50 million worldwide,” said Assistant Attorney General Caldwell.  “But General Cable also voluntarily self-disclosed this misconduct to the government, fully cooperated and remediated.  This resolution demonstrates the very real upside to coming in and cooperating with federal prosecutors and investigators. It also reflects our ongoing commitment to transparency.”

“In 2015, International Corruption Squads across the country were formed to address the national and international implications of foreign corruption,” said Assistant Director Richardson.  “This settlement is an example of the exceptional efforts of those dedicated squads and investigators.  The FBI looks forward to continuing to work with our law enforcement partners to address corruption, no matter how big or small.”

According to General Cable’s admissions, some parent-level and subsidiary-level employees, including executives, knew that some of its foreign subsidiaries used third-party agents and distributors to make corrupt payments to foreign officials in order to obtain and retain business. In one case the foreign subsidiary made corrupt payments directly to foreign officials.  The corrupt conduct began in 2002.  In 2011, when employees from a General Cable subsidiary expressed concerns to regional and parent-level executives that commission payments were being used for improper purposes, including potentially bribery, General Cable nevertheless failed to implement and maintain a system of internal accounting controls designed to detect and prevent such corruption and otherwise illegal payments.  

According to admissions by General Cable made in connection with the resolution, these payments were discussed openly in email messages.  For example, in June 2012, a sales agent in Bangladesh emailed an executive and other employees of General Cable’s subsidiary in Thailand and said that a portion of the money that the Thailand subsidiary paid the sales agent would “be shared by decision makers in [the] customer, concerned higher ups in [the] Ministry[,] and some top executives at [the] bidder.”  In May 2013, the executive, who had become an executive at General Cable in December 2012, approved a payment to the Bangladeshi sales agent.  In addition, in 2011, the same executive, who was at that time working at General Cable’s Thailand subsidiary, informed a General Cable executive that payments to a distributor in Thailand were being used for corrupt purposes.  General Cable did not investigate those payments, which continued to be made.

Between 2002 and 2013, General Cable subsidiaries paid approximately $13 million to third-party agents and distributors, a portion of which was used to make unlawful payments to obtain business, ultimately netting the company approximately $51 million in profits.

General Cable entered into a non-prosecution agreement and agreed to pay a criminal penalty of $20,469,694.80 to resolve the matter.  As part of the agreement, General Cable has agreed to continue to cooperate with the department in any ongoing investigations and prosecutions relating to the conduct, including of individuals, to enhance its compliance program and to report to the department on the implementation of its enhanced compliance program.

The department reached this resolution based on a number of factors, including that General Cable voluntarily and timely disclosed the conduct at issue, fully cooperated in the investigation and fully remediated.  General Cable’s cooperation included conducting a thorough internal investigation; making regular factual presentations and proactively providing updates to the Fraud Section; voluntarily making foreign-based employees available for interviews in the United States; producing documents, including translations, to the Fraud Section from foreign countries in ways that did not implicate foreign data privacy laws; collecting, analyzing and organizing voluminous evidence and information for the Fraud Section; identifying, investigating and disclosing conduct to the Fraud Section that was outside the scope of its initial voluntary self-disclosure; and, by the conclusion of the investigation, providing to the Fraud Section all relevant facts known to it, including information about individuals and third parties involved in the misconduct.  General Cable also took extensive remedial measures, including taking employment action against 13 employees who participated in the misconduct, resulting in their departure from the company, and terminating its relationships with 47 third-party agents and distributors who participated in the misconduct.  Based on these actions and other considerations, the company received a non-prosecution agreement and an aggregate discount of 50 percent off of the bottom of the U.S. Sentencing Guidelines fine range.

In related proceedings, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against General Cable, whereby General Cable agreed to pay approximately $55 million in disgorgement to the SEC, including prejudgment interest.  Thus, the combined penalties and disgorgement paid by General Cable is approximately $75.75 million.  The Fraud Section appreciates the cooperation and assistance provided by the SEC in this matter.   

The FBI’s International Corruption Squad in Washington, D.C., investigated the case.  The department appreciates the cooperation and assistance provided by the U.S. Attorney’s Office of the Eastern District of Kentucky in this matter.  Trial Attorneys Christopher Cestaro and Lorinda Laryea of the Criminal Division’s Fraud Section prosecuted the case.  The Criminal Division’s Office of International Affairs also provided substantial assistance in this matter.

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

WASHINGTON – A Tangipahoa Parish, Louisiana resident pleaded guilty to one count of conspiracy to defraud the United States and to commit theft of public money, wire fraud and aggravated identity theft, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Kenneth A. Polite for the Eastern District of Louisiana.

According to the plea agreement, Jackie Chaney, aka Jackie Scott, 46, admitted to conspiring with others to prepare false tax returns using stolen identities.  Chaney admitted that she and her co-conspirators obtained the names and social security numbers of individuals which were used to prepare and file false tax returns. At least one of Chaney’s co-conspirators electronically filed the false tax returns and Chaney and others received the fraudulently obtained refunds in the form of checks or prepaid debit cards. Chaney also admitted that she and her co-conspirators further conspired to convert fraudulently obtained tax refund checks into cash.

Sentencing is scheduled for March 29, 2017 before U.S. District Court Judge Susie Morgan. Chaney faces a statutory maximum sentence of five years in prison for the conspiracy charge, a period of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Polite commended special agents of the Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Hayden Brockett and Trial Attorney Lauren Castaldi of the Tax Division, who are prosecuting this case.  

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

Attorney General Loretta E. Lynch released the following statement on the planned departure of U.S. Attorney John P. Fishwick Jr. of the Western District of Virginia:

“Since 2015, U.S. Attorney John P. Fishwick Jr. has served the people of the Western District of Virginia, and the people of this nation, with integrity and distinction. During John’s tenure as U.S. Attorney, his office made significant progress on many of the difficult challenges facing law enforcement today. Under his leadership, the Western District successfully prosecuted the gang responsible for the murder of a police captain, collaborated with local and state law enforcement officials to fight the scourge of gun violence and tirelessly combated the heroin epidemic. And John personally promoted strong relationships between law enforcement and the community. Among other initiatives, John educated youth about gun violence and drug addiction, and introduced a mentoring program that links law enforcement mentors – such as John – with the young people of Roanoke. I want to thank John for his service, and I wish him the very best in the next phase of his career.”

The Department of Justice announced today that it will require Clear Channel Outdoor Holdings, Inc. and Fairway Media Group, LLC to divest billboards in Atlanta and Indianapolis in order to proceed with their $150 million swap of outdoor advertising assets located in multiple U.S. markets. 

The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia challenging the proposed transaction, and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The department said that without the required divestitures, advertisers who purchase outdoor advertising on billboards located in the Atlanta and Indianapolis metropolitan markets would likely face higher prices and lower quality services. 

“The loss of competition between Clear Channel and Fairway as a result of the proposed transaction would have led to higher prices for advertisers who rely on billboards to reach consumers located within the Atlanta and Indianapolis metropolitan markets,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division.  “Today’s settlement will ensure that advertisers will continue to enjoy the benefits of competition when they seek to place advertisements on billboards in these areas.”

According to the department’s complaint, Clear Channel and Fairway own and operate billboards in the Atlanta and Indianapolis metropolitan areas that are located in close proximity to each other and therefore constitute attractive competitive alternatives for advertisers seeking to reach consumers in these areas.  The proposed swap transaction, in which Clear Channel would acquire Fairway billboards in Atlanta in exchange for Clear Channel billboards in Indianapolis and certain other areas, would eliminate substantial head-to-head competition between Clear Channel and Fairway for the business of local and national advertisers seeking to reach customers within the Atlanta and Indianapolis metropolitan markets, resulting in higher prices and lower quality services to these advertisers.

Under the terms of the proposed settlement, Clear Channel and Fairway must divest 13 billboard structures in Indianapolis to Circle City Outdoor, LLC, and 44 billboard structures in Atlanta to Link Media Georgia, LLC.

Clear Channel is a Delaware corporation with its headquarters in San Antonio, Texas.  Clear Channel is one of the largest outdoor advertising companies in the United States and reported consolidated revenues of $2.8 billion in 2015.

Fairway is a Delaware limited liability company with its headquarters Duncan, South Carolina.  Fairway owns and operates outdoor advertising displays in 15 states.  Fairway had revenues of approximately $110 million in 2015.

As required by the Tunney Act, the proposed settlement, along with the department’s competitive impact statement, will be published in the Federal Register.  Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Owen Kendler, Acting Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Fourth Floor, 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.

Clear Channel Asset Preservation Stipulation & Order

Clear Channel Complaint

Clear Channel Competitive Impact Statement

Clear Channel Explanation

Clear Channel Proposed Final Judgement

Second Defendant Agrees to Plead Guilty in Ongoing Investigation

The current senior vice president of trade marketing of a leading packaged seafood company has agreed to plead guilty for his role in a conspiracy to fix the prices of packaged seafood such as canned tuna sold in the United States, the Department of Justice announced.

According to a one-count felony charge filed today in the U.S. District Court for the Northern District of California in San Francisco, Kenneth Worsham and his co-conspirators agreed to fix the prices of packaged seafood from as early as 2011 until about 2013.  In addition to his guilty plea, which is subject to court approval, Worsham has agreed to pay a criminal fine and cooperate with the division’s ongoing investigation.

“The Antitrust Division and its law enforcement partners are once again sending a strong signal that high-ranking executives responsible for fixing the price of shelf-stable tuna must be held accountable,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division.  “We will continue our work to root out the collusion among packaged seafood companies that targeted American consumers.”

According to the charge, Worsham and his co-conspirators discussed the prices of packaged seafood sold in the United States and agreed to fix the prices of those products.  The defendant and his co-conspirators negotiated prices and issued price announcements for packaged seafood in accordance with the agreements they reached. 

Today’s charge is the second to result from an ongoing federal antitrust investigation into the packaged seafood industry, which is being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office.  Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to the packaged seafood industry should contact the Antitrust Division’s Citizen Complaint Center at (888) 647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at (415) 553-7400.

Worsham Information

Following a comprehensive investigation, today, the Justice Department released its findings that Louisiana unnecessarily relies on nursing facilities to provide services to people with mental health disabilities, in violation of the community integration mandate of the Americans with Disabilities Act (ADA) and the Supreme Court’s decision in Olmstead v. L.C.

The ADA and the Olmstead ruling require states to make services available to people with disabilities in the most integrated setting appropriate to their needs, regardless of the type of disability.  However, many Louisianans with serious mental illness do not have a meaningful choice to receive the services they need in their own homes and communities. 

The department’s findings, detailed in a letter to Louisiana Governor John Bel Edwards, follow an investigation into the state’s system of care for people with serious mental illness who receive services and supports in nursing facilities.  The department found that people with serious mental illness who rely on Louisiana for needed services must live in nursing facilities, isolated from their communities, to receive those services.  With access to adequate, evidence-based community services, these individuals could instead live in integrated settings.

“Louisiana residents with mental illness who can and want to live in their own homes and communities deserve the chance to do so,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “We appreciate Louisiana’s cooperation with our investigation and hope to continue working with state officials to ensure that residents with serious mental illness who qualify for state services can live successfully in their communities with appropriate supports.”

Louisiana houses approximately 4,000 people with serious mental illness in nursing facilities each year.  On average, these residents tend to be younger, live in nursing facilities for longer periods of time and have low-care nursing needs compared to typical nursing facility residents.  Louisiana likely could serve these people more effectively and for less money by using its home- and community-based service system. 

The findings letter examines the widespread impact of the state’s nursing facility system on people with serious mental illness.  For example, the Justice Department interviewed a man in his sixties who experienced a mental health crisis a few years ago and repeatedly called 911 about his blood pressure.  Instead of connecting him to community treatment services, he was charged with abusing 911, sent briefly to jail and then admitted to a state psychiatric hospital.  The hospital eventually discharged him to a nursing facility that primarily houses people with serious mental illness.  Six years later, the man remains in the same nursing facility, even though he desires to return to the community and could do so with proper physical and psychiatric supports.

The department’s findings letter includes the following key conclusions:

• People with serious mental illness who need physical and mental health supports live in nursing facilities because Louisiana does not adequately arrange for community-based services or identify residents who can benefit from such services. 
• Many people who rely on state services do not know that they could choose community-based services instead of nursing facilities because the state has not told them about these services.
• Many nursing facility residents with serious mental illness can live successfully in community-based settings rather than in institutions.
• People with serious mental illness who have similar needs to those living in Louisiana’s nursing facilities successfully receive community-based services in other states, and even in Louisiana.  The state already offers many of the services that people need to live in their own homes and can increase community capacity to ensure that all qualified people with serious mental illness can choose these services instead of nursing facility placement.   

The investigation was conducted by the Civil Rights Division.  The full letter can be found at www.ada.gov.  Please visit www.ada.gov/olmstead to learn more about the Civil Rights Division’s ADA Olmstead enforcement efforts and www.justice.gov/crt to learn more about the laws enforced by the Justice Department’s Civil Rights Division.

FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced that it has established a YouTube channel to offer its stakeholders another medium in which to acquire information about its policies and programs.

EOIR’s first YouTube video is a training session on its recently issued final rule titled, Recognition of Organizations and Accreditation of Non-Attorney Representatives. This training video provides an overview of the new rule with a focus on the renewal process for already recognized organizations and accredited representatives.

The training video can be found at: https://www.youtube.com/channel/UChnSMSPkWRy9GaQnqyxQgmg. Please note that EOIR’s website, www.justice.gov/eoir, will continue to be the agency’s primary source of information online.

In a second partial settlement announced today by the U.S. Department of Justice, the Environmental Protection Agency (EPA) and the State of California, automakers Volkswagen AG, Audi AG, Porsche AG and related entities (collectively referred to as Volkswagen), have agreed to recall 83,000 model year 2009 through 2016 3.0 liter diesel vehicles sold or leased in the U.S. that are alleged to be equipped with “defeat devices” to cheat emissions tests, in violation of the Clean Air Act and California law. 

For the older vehicles, Volkswagen is required to offer to buy back the vehicles or terminate leases, and must also offer an emissions modification to substantially reduce emissions if one is proposed by Volkswagen and approved by regulators.  For the newer vehicles, if Volkswagen demonstrates it can make the vehicles compliant with the certified exhaust emission standards, it will have to fix the vehicles and will not be required to buy the vehicles back. Volkswagen is also required to spend $225 million to fund projects that will reduce emissions of nitrogen oxide (NOx). 

Today’s partial settlement does not resolve any pending claims for civil penalties, nor does it address any potential criminal liability.  The settlement also does not resolve any consumer claims, claims by the Federal Trade Commission or claims by individual owners or lessees who may have asserted claims in the ongoing multidistrict litigation.  The state of California has secured a separate resolution for the 3.0 liter violations that addresses issues specific to vehicles and consumers in California.  

The affected older vehicles (referred to as “generation 1” vehicles) are the 2009 through 2012 Volkswagen Touareg and Audi Q7 diesel models.  The affected newer vehicles (referred to as “generation 2” vehicles) are the 2013-2016 Volkswagen Touareg diesels, 2013 through 2015 Audi Q7 diesels, 2013 through 2016 Porsche Cayenne diesels and 2014 through 2016 Audi A6 quattro, A7 quattro, A8, A8L and Q5 diesel models. 

“The settlement marks another significant step in holding Volkswagen accountable for cheating Americans out of the promise of cleaner air by selling vehicles equipped with defeat devices,” said Assistant Attorney General John C. Cruden.  “This consent decree provides a remedy for every affected vehicle which will be removed from the road or meet enforceable standards that will reduce emissions, and will also require VW to provide additional funding to address the harmful impacts to human health and the environment from VW’s violations.”

“EPA has a public health imperative to hold Volkswagen accountable and remedy the illegal pollution their cars put into the air,” said Cynthia Giles, EPA’s Assistant Administrator for Enforcement and Compliance Assurance.  “From the start, our team vigorously pursued this case to ensure these cars were fixed or taken off the road. Today we’ve secured another important settlement that delivers on EPA’s essential public health mission.”

“This settlement highlights the fact that cheating to get a car certified has consequences for air quality and the public’s health – and that cheaters will be caught and held accountable,” said CARB Executive Officer Richard Corey.  “Because California is able to enforce its vehicle regulations, CARB was instrumental in uncovering the cheating in the 3 liter, and before that, in the 2 liter diesel engines.  The mitigation in this settlement will now help California address its serious air quality and climate challenges with a focus on putting the very cleanest vehicles in disadvantaged communities where they are needed most.”

According to the civil complaint against Volkswagen filed by the Justice Department on behalf of EPA on Jan. 4, 2016, and amended on Oct. 7, 2016, Volkswagen allegedly equipped its 3.0 liter diesel vehicles with illegal software that detects when the car is being tested for compliance with EPA or California emissions standards and turns on required emissions controls only during that testing process.  During normal driving conditions, the software renders these emissions control systems inoperative or reduces their effectiveness, resulting in increased emissions.  This is known as a defeat device.  By using a defeat device, these cars meet emissions standards in the laboratory, but emit up to nine times or more above the EPA-compliant levels for NOx during normal on-road driving conditions.  The Clean Air Act requires manufacturers to certify to EPA that vehicles will meet federal emissions standards.  Vehicles with defeat devices cannot be certified.

Because Volkswagen cannot modify the affected 2009 through 2012 Volkswagen Touareg and Audi Q7 generation 1 diesel vehicles to meet EPA-certified exhaust emissions standards, the settlement requires Volkswagen to offer owners of generation 1 vehicles the option to have the company buy back the car and to offer lessees a lease cancellation at no cost.  If a plan is proposed by Volkswagen and approved by EPA and CARB to substantially reduce emissions from the generation 1 vehicles, Volkswagen will also have to offer that as an option for consumers. 

For the generation 2 vehicles, Volkswagen will recall and fix these vehicles so they meet their certified exhaust emissions standards, after the technical solution is approved by regulators.  If after extensive testing the solution does not perform as expected and is not approved, Volkswagen must offer to buy back the vehicles.  In that case, the company can also seek approval of an emissions modification plan to substantially reduce emissions and, if approved, can offer that as an additional option for generation 2 vehicles.   

Under the terms of the settlement, Volkswagen must achieve an overall recall rate of at least 85 percent for each of the generation 1 and generation 2 vehicles recall programs or pay additional sums into the mitigation trust fund.  The buyback and lease termination program for generation 1 vehicles will begin within 30 days following court approval of the settlement.  Vehicle modifications will become available to eligible owners and lessees once the modifications are approved by regulators. 

Vehicle owners and lessees will receive updated information from Volkswagen, Audi and Porsche concerning their available buyback or modification options after today’s settlement is approved by the court, and can also obtain information about these options at: www.VWCourtSettlement.com and www.AudiCourtSettlement.com.

The settlement requires Volkswagen to pay $225 million to fund projects across the country that will reduce emissions of NOx where the 3.0 liter vehicles were, are or will be operated.  This funding is intended to fully mitigate the past and future NOx emissions from the 3.0 liter vehicles.  That money will be placed in the same mitigation trust to be established under the partial settlement for the 2L vehicles.  This $225 million is in addition to the $2.7 billion that Volkswagen is required to pay into that trust under the prior settlement.  The mitigation trust will be administered by an independent trustee.  Beneficiaries, which may include states, Puerto Rico, the District of Columbia and Indian tribes, may obtain funds for designated NOx reduction projects upon application to the trustee.

The emissions reduction program will help reduce NOx pollution that contributes to the formation of harmful smog and soot, exposure to which is linked to a number of respiratory- and cardiovascular-related health effects as well as premature death.  Children, older adults, people who are active outdoors (including outdoor workers) and people with heart or lung disease are particularly at risk for health effects related to smog or soot exposure.  NO2 formed by NOx emissions can aggravate respiratory diseases, particularly asthma, and may also contribute to asthma development in children.

The provisions of the settlement are contained in a proposed consent decree filed today in the U.S. District Court for the Northern District of California, as part of the ongoing multi-district litigation, and will be subject to public comment period of 30 days, which will be announced in the Federal Register in the coming days.  The consent decree will be available for viewing at www.justice.gov/enrd/consent-decrees.

A federal jury today convicted a Canadian woman of international parental kidnapping, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Jim Lewis of the Central District of Illinois.
 
Sarah M. Nixon, 48, of Montreal, was found guilty of one count of international parental kidnapping for taking her minor-aged child from the United States in July 2015 with the intent to obstruct the lawful exercise of the father’s rights.  Sentencing has been scheduled for April 24, 2017 before U.S. District Judge Colin S. Bruce of the Central District of Illinois.
 
Evidence at trial established that after a custody trial where it was apparent that Nixon would lose custody of her six-year-old daughter, Nixon fled the United States with the child in the middle of the night.  When she did not appear for the custody ruling and neither she nor her daughter could be located, law enforcement issued a child abduction alert.  Nixon and the child were eventually located in a farmhouse in rural Ontario, Canada.  Authorities then returned the child to the father.  Nixon was arrested in New York on Sept. 20, 2015 as she attempted to return to the United States. 
 
The FBI; Urbana, Illinois, Police Department; University of Illinois Police Department; Illinois Department of Children and Family Services; Ontario Provincial Police; and U.S. Customs and Border Protection investigated the case, with assistance from the Champaign County, Illinois, State’s Attorney’s Office and the Department of Justice’s Office of International Affairs.  Trial Attorneys Elly M. Peirson and Lauren S. Kupersmith of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.

FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced a final rule titled, Recognition of Organizations and Accreditation of Non-Attorney Representatives. This new rule, effective Jan. 18, 2017, amends the regulations governing the requirements and procedures for authorizing representatives of non-profit religious, charitable, social service, or similar organizations to represent persons in proceedings before EOIR and the Department of Homeland Security (DHS). This announcement comes after EOIR published a proposed version of this rule in the Federal Register in October 2015 and sought public comment through a series of public meetings to discuss the proposed rule’s potential impact.

The purpose of the rule is to promote the effective and efficient administration of justice before EOIR and DHS by increasing the availability of competent, non-lawyer representation for low-income and indigent persons. The rule is also intended to reduce the likelihood that such persons become victims of fraud and abuse.

Set forth in the rule are a variety of measures to achieve its objectives. In addition to amending the regulations to increase the number of accredited representatives for underserved populations, the rule also clarifies the recognition and accreditation (R&A) application processes, establishes greater oversight and accountability for recognized organizations and accredited representatives, and enhances the management of the R&A roster. Moreover, the rule updates the disciplinary process to ensure that recognized organizations are subject to sanctions for conduct that violates the public interest. The rule also relocates management of the R&A Program from the Board of Immigration Appeals to the Office of Legal Access Programs (OLAP).

The rule is published in the Federal Register at: https://www.federalregister.gov/documents/2016/12/19/2016-29726/recognition-of-organizations-and-accreditation-of-non-attorney-representatives. EOIR will be holding a stakeholder webinar/teleconference on Wednesday, Dec. 21, 2016 at 1 p.m.to discuss the effects of the rule on the agency’s R&A Program.

Department of Justice Tribal Access Program Will Continue to Improve the Exchange of Critical Data

The Department of Justice announced today 11 tribes selected to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program to provide federally recognized tribes the ability to access and exchange data with national crime information databases for both civil and criminal purposes.  TAP allows tribes to more effectively serve and protect their communities by ensuring the exchange of critical data.

Phase Two of TAP will grant access to national crime information databases and technical support to the following tribes:  

• Metlakatla Indian Community, Annette Island Reserve, Alaska
• Navajo Nation, Arizona, New Mexico & Utah
• Pueblo of Laguna, New Mexico
• Yurok Tribe of the Yurok Reservation, California
• Standing Rock Sioux Tribe of North & South Dakota
• Tohono O’odham Nation of Arizona
• Sisseton-Wahpeton Oyate of the Lake Traverse Reservation, South Dakota
• Assiniboine and Sioux Tribes of the Fort Peck Indian Reservation, Montana
• Reno-Sparks Indian Colony, Nevada
• Lac Courte Oreilles Band of Lake Superior Chippewa Indians, Wisconsin
• Makah Indian Tribe of the Makah Indian Reservation, Washington state

“Since its launch in 2015, this project has not only helped law enforcement locate suspects, rescue victims and extradite captured fugitives, but it’s also made it easier for civil courts to enter and enforce orders of protection for domestic violence victims,” said Deputy Attorney General Sally Q. Yates.  “I’m proud that the Justice Department is continuing to act as a responsible partner with tribal governments in this landmark effort, which strengthens both sovereignty and safety for American Indian and Alaska Native people.”

This phase was funded by the Office of Justice Programs’ Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering and Tracking (SMART), and Community Oriented Policing Services (COPS), and supported with technical assistance from the Department of Justice Office of the Chief Information Officer (OCIO).  It will focus on assisting tribes that have either a Sex Offender Registry pursuant to the SORNA, or a tribal law enforcement agency that is not a BIA direct service agency.  The COPS Office and the SMART Office each provided $1 million in prior fiscal year funding towards the expansion, which will be used for the 11 kiosks.

In the fall of 2015, the department selected tribes to participate in the initial User Feedback Phase of TAP.  This partnership focused on testing the department’s technology solution and training support; it also enabled tribes to identify and share best practices regarding the use of national crime information databases to strengthen public safety.

During 2016, participating tribes received a kiosk workstation that provided access to national systems as well as training to support whole-of-government needs. User Feedback Phase tribes have elected to implement TAP in a variety of criminal and civil agencies.  Those tribal criminal agencies included law enforcement agencies, prosecutors, criminal courts, jails, and probation departments.  The tribal civil agencies and programs that were eligible to use TAP included agencies whose staff and volunteers have contact with or control over Indian children; public housing agencies; child support enforcement agencies; Head Start programs; civil agencies that investigate allegations of abuse, neglect, and exploitation of children; civil courts that issue orders of protection, restraining orders or other keep away orders; and sex offender registration programs.

TAP enhances tribal efforts to register sex offenders pursuant to the Sex Offender Registration and Notification Act (SORNA); have orders of protection enforced off-reservation; protect children; keep firearms away from persons who are disqualified from receiving them; improve the safety of public housing, and allow tribes to enter their arrests and convictions into national databases.

TAP supports tribes in analyzing their needs for national crime information and includes appropriate solutions, including a-state-of-the-art biometric/biographic kiosk workstation with capabilities to process finger and palm prints, take mugshots and submit records to national databases, as well as the ability to access CJIS systems for criminal and civil purposes through the Department of Justice’s Criminal Justice Information Network. TAP, which is managed by the DOJ Chief Information Officer, provides specialized training and assistance for participating tribes, including computer-based training and on-site instruction, as well as a 24/7 Help Desk.

For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.

For more information about the Justice Department’s work on tribal justice and public safety issues, visit:  www.justice.gov/tribal.

For more information about the Department of the Interior Bureau of Indian Affairs, visit https://www.indianaffairs.gov/.

Proposed Settlement Preserves Movie Theatre Competition in 15 Local Markets and in Preshow Services and Theatre Advertising Markets

 The Department of Justice announced today that it will require AMC Entertainment Holdings Inc. to divest theatres in 15 local markets, sell off most of its holdings and relinquish all of its governance rights in National Cinemedia LLC (NCM), and transfer 24 theatres with a total of 384 screens to the network of Screenvision LLC in order to complete its $1.2 billion acquisition of Carmike Cinemas Inc. 

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 acquisition.  At the same time, the department filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.  The department said that without the required divestitures and other relief, the merger would result in higher prices and lower quality theatre amenities for moviegoers and weakened competition in the markets for preshow services and theatre advertising, where Screenvision is NCM’s only meaningful rival.

“Moviegoers across the United States have benefitted from head-to-head competition between AMC and Carmike that has kept ticket prices in check and delivered a higher quality movie experience,” said Acting Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division.  “Today’s settlement will ensure that movie theatre competition is preserved in 15 local markets where AMC and Carmike currently compete.  In addition, by requiring AMC to reduce its equity stake in NCM, terminate its participation in NCM’s business, and transfer screens to Screenvision, the settlement will promote continued vigorous competition between the two leading cinema advertising networks – competition that the division fought to protect when it blocked the NCM-Screenvision merger.”

According to the department’s complaint, AMC and Carmike compete to attract moviegoers in local markets across the United States by providing affordable ticket prices and a superior viewing experience.  Because AMC and Carmike are each other’s most significant competitor in 15 local markets across the country, the complaint alleges that the proposed acquisition would likely reduce price competition and the quality of the moviegoer’s experience in each of these local markets.  Under the terms of the proposed settlement, AMC must divest AMC or Carmike movie theatres in all 15 local markets to buyers approved by the United States to eliminate the merger’s likely harm in these markets.

The department’s complaint further alleges that AMC’s acquisition of Carmike would lessen competition in the preshow services and cinema advertising markets, where NCM and Screenvision together serve over 80 percent of U.S. movie screens and compete to win exclusive contracts to provide preshow services to exhibitors.  According to the department’s complaint, as a major owner of both NCM and Screenvision post-merger, AMC would have an incentive to reduce the head-to-head competition between NCM and Screenvision, resulting in less aggressive competition to gain exhibitors and advertisers at the expense of the other.  In addition, the merger would eliminate Carmike – currently Screenvision’s largest and most important exhibitor – as a source of future Screenvision growth because all future AMC new builds and theatre acquisitions will affiliate with NCM under the terms of AMC’s NCM contract. 

Under the terms of the proposed settlement, AMC must divest the majority of its equity interest in NCM such that it owns no more than 4.99 percent of the company, relinquish all of its NCM governance rights, and transfer 24 theatres comprising 384 screens to the Screenvision network.  The department said that these measures will ensure that movie exhibitors and advertisers continue to enjoy the benefits of vigorous competition between NCM and Screenvision in the preshow services and theatre advertising markets.  The Division filed suit to block the proposed merger of NCM and Screenvision in 2014 and NCM and Screenvision subsequently abandoned their transaction.

The proposed settlement also requires AMC to establish firewalls to ensure that it does not obtain NCM’s, Screenvision’s, or other movie exhibitors’ competitively sensitive information or become a conduit for the flow of such information between NCM and Screenvision.

AMC is a Delaware corporation with its headquarters in Leawood, Kansas.  As of Sept. 30, 2016, AMC operated approximately 388 theatres with a total of 5,295 screens located in 33 states and the District of Columbia.  Its U.S. box office revenues were approximately $1.9 billion in 2015. 

Carmike is a Delaware corporation with its headquarters in Columbus, Georgia.  As of Sept. 30, 2016, Carmike operated 271 movie theaters with a total of 2,917 screens located in 41 states.  Its U.S. box office revenues were approximately $490 million in 2015. 

As required by the Tunney Act, the proposed settlement and 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 Owen M. Kendler, Acting Chief, Litigation III Section, Antitrust Division, U.S. Department of Justice, 450 5th Street, N.W., Suite 4000, Washington, D.C. 20530.  At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the proposed consent decree upon finding that it serves the public interest.

AMC-Carmike Complaint

AMC-Carmike CIS

AMC-Carmike PFJ

Today, President Obama granted commutation of sentence to 153 individuals and pardons to 78 individuals:

The President granted commutations of sentence to the following 153 individuals:

• Kendrick Tyshawn Akins – Coppell, TX
  Offense: Conspiracy to manufacture, distribute, or possess with intent to manufacture or distribute cocaine, cocaine base, and marijuana; Eastern District of Texas
  Sentence: Life imprisonment; 10 years' supervised release (April 30, 2012)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Dale Wayne Aldridge – Unionville, MO
  Offense: Conspiracy to distribute at least 500 grams of a mixture or substance containing methamphetamine; Southern District of Iowa
  Sentence: Life imprisonment; 10 years' supervised release (January 28, 2011)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Demetri D. Alexander – Kansas City, KS
  Offense: Conspiracy to manufacture cocaine base "crack" and to possess with intent to distribute cocaine base "crack"; possession of firearms in furtherance of a drug trafficking crime; District of Kansas
  Sentence: 180 months' imprisonment; five years' supervised release (July 24, 2007)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Billy Mel Alford – Terrell, TX
  Offense: Importation of a quantity of marijuana (three counts); possession with intent to distribute a quantity of marijuana (three counts); Western District of Texas
  Sentence: 480 months' imprisonment; five years' supervised release; $200,000 fine (July 22, 1997); amended to 480 months' imprisonment; five years' supervised release; $150,000 fine (July 27, 1998)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment, and unpaid balance of $150,000 fine remitted at the time of his release.

• Antonio Jose Alonzo – Pelican Rapids, MN
  Offense: Conspiracy to possess with intent to distribute and distribute controlled substances; District of North Dakota
  Sentence: Life imprisonment; 10 years' supervised release (January 7, 2005)

Commutation Grant: Prison sentence commuted to 292 months' imprisonment.

• Maurice Anderson – Fort Worth, TX
  Offense: Possession with intent to distribute more than 500 grams of a mixture or substance containing cocaine; Northern District of Texas
  Sentence: 360 months' imprisonment; five years' supervised release (October 20, 2006)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Orasama Andrews – Jackson, GA
  Offense:          1. Distribution of more than five grams of cocaine base; distribution of

                        more than 50 grams of cocaine base; Middle District of Georgia

2. Supervised release violation (Distribution of cocaine base); Middle District of Georgia

Sentence:         1. Life imprisonment (December 17, 2009)

2. 24 months' imprisonment (consecutive); 10 years' supervised release (December 17, 2009)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Darrell Atkins – Detroit, MI
  Offense: Conspiracy to possess with intent to deliver cocaine and crack cocaine; distribution of crack cocaine (three counts); Eastern District of Michigan
  Sentence: 360 months' imprisonment; five years' supervised release; $10,000 fine (July 23, 1996)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Hilario Avila – Whittier, CA
  Offense:          1. Conspiracy to possess with intent to distribute methamphetamine;

                        Central District of California

2. Supervised release violation (Possession with intent to distribute methamphetamine)

Sentence:         1. 240 months' imprisonment; 10 years' supervised release (March 6,

2006)

2. 33 months’ imprisonment (concurrent) (May 9, 2005)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Handy Bailey, Jr. – Orlando, FL
  Offense: Possession with intent to distribute cocaine base (two counts); Middle District of Florida
  Sentence: 360 months' imprisonment; eight years' supervised release (April 24, 1998)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Darryl Jerome Baker – Seffner, FL
  Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine and 50 grams or more of cocaine base; Middle District of Florida
  Sentence: Life imprisonment; 10 years' supervised release (May 22, 2003)

Commutation Grant: Prison sentence commuted to 360 months' imprisonment.

• Johnny Ray Basham – Tulsa, OK
  Offense: Possession with intent to distribute methamphetamine; possession of a firearm during drug trafficking crime; possession of a firearm after former conviction of a felony; Northern District of Oklahoma
  Sentence: 324 months' imprisonment; five years' supervised release; $1,000 fine (January 11, 2001)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Rodney Bates – Milan, TN
  Offense: Possession with intent to distribute 24.1 grams of cocaine base; Western District of Tennessee
  Sentence: 188 months' imprisonment; four years' supervised release (August 10, 2006)

Commutation Grant: Prison sentence commuted to expire on July 31, 2017.

• Roger Jerome Baylor – Montross, VA
  Offense: Conspiracy to distribute and possess with intent to distribute cocaine base; distribution of cocaine base; Eastern District of Virginia
  Sentence: 360 months' imprisonment; 10 years' supervised release (March 23, 2007); amended to 292 months' imprisonment (December 13, 2010); amended to 240 months' imprisonment (February 14, 2013)

Commutation Grant: Prison sentence commuted to a term of 168 months' imprisonment.

• Lee Henry Berry – Bay City, MI
  Offense: Possess with intent to distribute less than five grams of cocaine base; possess with intent to distribute five grams or more of cocaine base; possess with intent to distribute less than 500 grams of cocaine; felon in possession of one or more firearms; Eastern District of Michigan
  Sentence: 360 months' imprisonment; six years' supervised release (December 20, 2007)

Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment.

• Peter Christian Boulette – Hattiesburg, MS
  Offense:          1. Possession with intent to distribute 50 grams or more of

methamphetamine; possession with intent to distribute a mixture and substance containing methamphetamine (two counts); possession of a firearm in furtherance of a drug trafficking crime (two counts); felon in possession of a firearm; Northern District of Alabama

2. Possession of a firearm by a convicted person; possession of an unregistered firearm; Eastern District of Arkansas

Sentence:         1. 600 months' imprisonment; 10 years' supervised release (March 13,

                        2007)

2. 87 months’ imprisonment (concurrent); three years’ supervised release (March 3, 2008)

Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment.

• Gregory R. Boyd – Oakley, CA
  Offense: Possession with intent to distribute methamphetamine; possession of a firearm in relation to a drug trafficking offense; felon in possession of a firearm; District of Montana
  Sentence: 420 months' imprisonment; eight years' supervised release (July 18, 2007)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Willie Brazile – Pensacola, FL
  Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base (two counts); Northern District of Florida
  Sentence: Life imprisonment; 10 years' supervised release (September 10, 1996)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Jason C. Brown – Chicago, IL
  Offense: Possession of more than 50 grams of cocaine base "crack" with intent to distribute; Central District of Illinois
  Sentence: 324 months' imprisonment; 10 years' supervised release (February 11, 2004)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Jermaine Brown – Hampton, VA
  Offense: Conspiracy to possess with intent to distribute and distribute cocaine, cocaine base, and marijuana; possession with intent to distribute cocaine; possession with intent to distribute cocaine base; possession of a firearm in furtherance of a drug trafficking crime (two counts); distribution of cocaine base; Eastern District of Virginia
  Sentence: 548 months' imprisonment; five years' supervised release (July 8, 2011); amended to 511 months' imprisonment (June 13, 2016)

Commutation Grant: Prison sentence commuted to a term of 211 months' imprisonment.

• Reuben Bullock – Rochester, NY
  Offense: Possession with intent to distribute 50 grams or more of cocaine base; Western District of New York
  Sentence: 210 months' imprisonment; six years' supervised release; $1,000 fine (October 30, 2006)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Amilcar Butler – Nashville, TN
  Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine; attempt to possess with intent to distribute five kilograms or more of cocaine; Middle District of Tennessee
  Sentence: Life imprisonment; 10 years' supervised release (July 26, 2004)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Arthur Lee Butler, Jr. – Greenville, NC
  Offense: Conspiracy to possess with intent to distribute 50 grams or more of crack cocaine; District of South Carolina
  Sentence: 120 months' imprisonment; five years' supervised release (November 18, 2009)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Jonathan Rodrico Carter – Anniston, AL
  Offense: Possession with the intent to distribute a mixture and substance containing cocaine base; Northern District of Alabama
  Sentence: Life imprisonment; 10 years' supervised release (January 19, 2006)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Maurice Davon Cawthon – Milton, FL
  Offense: Possession with intent to distribute five grams or more of a mixture and substance containing cocaine base; possession of a shotgun in relation to a drug trafficking offense; possession of a firearm by a convicted felon; possession of an unregistered firearm with an overall length of less than 26 inches, including a barrel of less than 18 inches; Northern District of Florida
  Sentence: 240 months' imprisonment; eight years' supervised release; $600 fine (December 17, 2004)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Emilio Chase – Baltimore, MD
  Offense: Distribution of cocaine within 1,000 feet of a school; Northern District of West Virginia
  Sentence: 210 months' imprisonment; six years' supervised release; $1,100 fine (June 22, 2005)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Calvin Lavan Clark – Garner, NC
  Offense: Possession with intent to distribute more than 50 grams of cocaine base (crack) and a quantity of cocaine; possession of a firearm in furtherance of a drug trafficking crime; Eastern District of North Carolina
  Sentence: 354 months' imprisonment; five years' supervised release (September 17, 2008)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Leonard A. Clement – Cooleemee, NC
  Offense: Conspiracy to possess with intent to distribute a quantity of cocaine and cocaine base and possessing with intent to distribute marijuana; Western District of North Carolina
  Sentence: Life imprisonment; 10 years' supervised release (November 6, 2006)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Troy V. Cleveland – Forestville, MD
  Offense: Conspiracy to possess with intent to distribute 50 grams or more of "crack," use of persons under 18 years to distribute, and distribute "crack" to persons under 18 years of age; distribute 50 grams or more of "crack"; Eastern District of Virginia
  Sentence: 360 months' imprisonment; five years' supervised release (March 18, 1994)

Commutation Grant: Prison sentence commuted to a term of 328 months' imprisonment.

• Keith O. Cobb – Waco, TX
  Offense: Conspiracy to possess with intent to distribute and to distribute cocaine; conspiracy to violate 18 U.S.C. § 1956 (a)(1)(B)(i) -- money laundering; Western District of Texas
  Sentence: 400 months' imprisonment; five years' supervised release (April 7, 1995)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, and unpaid balance of the $10,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.

• Gregory Anthony Collins – Greenville, IL
  Offense: Engaging in a continuing criminal enterprise; employing a person under 18 in drug trafficking; money laundering; Southern District of Illinois
  Sentence: Life imprisonment (April 10, 1992)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

• Jeremy Conner – Tarrant, AL
  Offense: Possession with intent to distribute 50 grams or more of cocaine base; possession of firearm in furtherance of a drug trafficking crime; felon in possession of a firearm; Northern District of Alabama
  Sentence: Life plus 60 months' imprisonment; 10 years' supervised release (December 10, 2008); amended to 240 months' imprisonment (October 26, 2011)

Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Adrian Lyndell Cook – Murfreesboro, NC
  Offense:          1. Possess with intent to distribute cocaine base; Eastern District of

                        Virginia

2. Supervised release violation (possession with intent to distribute cocaine base); Eastern District of Virginia

Sentence:         1. 240 months' imprisonment; 10 years’ supervised release (October 6, 2008); amended to 168 months’ imprisonment (October 24, 2013)

2. 60 months' imprisonment (concurrent) (August 5, 2009)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Richard David Courville – Alpine, TX
  Offense: Conspiracy to manufacture 50 grams or more of methamphetamine; manufacture of methamphetamine (two counts); Northern District of Alabama
  Sentence: 262 months' imprisonment; 10 years' supervised release; $4,000 fine; $6,146 restitution (April 23, 2002)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Theartis Daniels – Punta Gorda, FL
  Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine; possession of a firearm in furtherance of a drug trafficking crime; Middle District of Florida
  Sentence: Life plus 60 months' imprisonment; 10 years' supervised release (June 1, 2006)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Michael Leroy Darity – Arden, NC
  Offense: Conspiracy to unlawfully manufacture and distribute cocaine base; Western District of North Carolina
  Sentence: 384 months' imprisonment; five years' supervised release (January 29, 1998); amended to 308 months' imprisonment (January 18, 2016)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Larry Lamont Davie – Oak Grove, KY
  Offense: Conspiracy to possess with intent to distribute 50 grams or more of a mixture or substance containing cocaine base; aiding and abetting possession with intent to distribute 50 grams or more of a mixture or substance containing cocaine base; possession of a firearm in the furtherance of a drug trafficking crime; Western District of Kentucky
  Sentence: 180 months' imprisonment; five years' supervised release (January 8, 2007)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Travis Davis – Galesburg, IL
  Offense: Possession of more than 50 grams of cocaine base (crack); Central District of Illinois
  Sentence: Life imprisonment; 10 years' supervised release (August 31, 2007); amended to 280 months' imprisonment (March 13, 2009)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Milton DeJesus-Bones – Philadelphia, PA
  Offense: Conspiracy to possess with intent to distribute cocaine; attempt to possess with intent to distribute cocaine; Southern District of Florida
  Sentence: Life imprisonment; 10 years' supervised release (January 30, 2001)

Commutation Grant: Prison sentence commuted to 360 months' imprisonment.

• Terrance Terell Dendy – Seneca, SC
  Offense: Possession with intent to distribute crack cocaine; felon in possession of a firearm; possession of a firearm in connection with a felony; District of South Carolina
  Sentence: 180 months' imprisonment; five years' supervised release (May 25, 2010)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Marcus Louis Diaz – Amarillo, TX
  Offense: Conspiracy to distribute more than 500 grams of a mixture of methamphetamine; Western District of Texas
  Sentence: 262 months' imprisonment; five years' supervised release (February 21, 2001)

Commutation Grant: Prison sentence commuted to December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Anthony Timothy Dodd – Davenport, IA
  Offense: Conspiracy to distribute crack cocaine; Southern District of Iowa
  Sentence: Life imprisonment; 10 years' supervised release (May 25, 2006)

Commutation Grant: Prison sentence commuted to 240 months' imprisonment.

• Curtis Drayton – Prattville, AL
  Offense: Engaging in a continuing criminal enterprise; distribution of cocaine base (four counts); possession with intent to distribute cocaine and aiding and abetting; Middle District of Alabama
  Sentence: Life imprisonment; five years' supervised release (May 22, 1995)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Enoch Edison – Baltimore, MD
  Offense: Possession with intent to distribute cocaine base, cocaine, and marijuana; District of Maryland
  Sentence: 240 months' imprisonment; five years' supervised release (December 7, 2007)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• George Ralph Ellis – Birmingham, AL
  Offense: Possession with intent to distribute a mixture and substance containing marijuana; carrying a firearm during and in relation to a drug trafficking crime; possession with intent to distribute fifty (50) grams or more of a mixture and substance containing cocaine base; Northern District of Alabama
  Sentence: 180 months' imprisonment; five years' supervised release (July 18, 2005)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Korell Ellis – Fairmont, NC
  Offense: Possession with the intent to distribute cocaine base; use or carry a firearm during and in relation to a drug trafficking crime; Eastern District of North Carolina
  Sentence: 295 months' imprisonment; five years' supervised release; $14,330 fine (March 12, 2002); amended to 248 months' imprisonment (October 7, 2015)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017 and unpaid balance of the $14,330 fine remitted.

• Samuel Stevens Farmer – Madison, FL
  Offense: Conspiracy to distribute more than 50 grams of cocaine base; possession with intent to distribute more than five grams of cocaine base (four counts); Northern District of Florida
  Sentence: Life imprisonment; 10 years' supervised release (June 15, 2001)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Travis Nathaniel France – Marion, VA
  Offense: Possession with intent to distribute 50 grams or more of cocaine base; Western District of Virginia
  Sentence: 262 months' imprisonment; 10 years' supervised release; $450 fine (December 8, 2009)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Tammie Twyone Francis – Lee’s Summit, MO
  Offense: Possession with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute cocaine; Western District of Missouri
  Sentence: Life imprisonment; 10 years' supervised release (June 28, 1996)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

• Marcus Emile Franklin – Chester, SC
  Offense: Conspiracy to possess with intent to distribute and to distribute 50 grams or more of crack cocaine; District of South Carolina
  Sentence: 240 months' imprisonment; 10 years' supervised release (April 21, 2006)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Paul Free – Coronado, CA
  Offense: Conspiracy to possess with intent to distribute and distribution of marijuana; Eastern District of Michigan
  Sentence: Life imprisonment (June 14, 1995)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

• Cecil Ray Frye, Jr. – Saraland, AL
  Offense: Conspiracy to manufacture methamphetamine; possession of a firearm during a drug trafficking felony (two counts); Southern District of Alabama
  Sentence: 548 months' imprisonment; five years' supervised release; $9,546 restitution (December 4, 2003); amended to 300 months' imprisonment (September 11, 2007)

Commutation Grant: Prison sentence commuted to a term of 211 months' imprisonment, conditioned upon enrollment in residential drug treatment.  

• Angel Garcia-Bercovich – Phoenix, AZ
  Offense: Conspiracy to possess with intent to distribute 100 or more kilograms of marijuana; possession with intent to distribute 100 or more kilograms of marijuana; Northern District of Florida
  Sentence: 360 months' imprisonment; eight years' supervised release (April 7, 2008)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Anthony DeWayne Gillis – Supply, VA
  Offense: Conspiracy to possess with intent to distribute and to distribute cocaine base; possession with intent to distribute cocaine base; false statements (three counts); possession of a firearm in furtherance of drug trafficking (six counts); possession of a sawed-off shotgun; Eastern District of Virginia
  Sentence: 1,748 months' imprisonment; five years' supervised release (October 14, 2005); amended to 1,711 months' imprisonment (November 2, 2010); amended to 1,681 months' imprisonment (December 28, 2015)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Aaron Glasscock – Lebanon, KY
  Offense: Conspiracy to possess with intent to distribute and to distribute cocaine; Northern District of Florida
  Sentence: 360 months' imprisonment; five years' supervised release (February 17, 2000); amended to 292 months' imprisonment (November 1, 2015)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Alpidio Gonzalez – McAllen, TX
  Offense:          1. Violation of the Federal Controlled Substance Act; Eastern District of

                        Louisiana

2. Supervised release violation (Conspiracy to possess with intent to distribute 100 kilograms or more of marijuana)

Sentence:         1. 360 months' imprisonment; eight years' supervised release (March 12,

            2008)

            2. 37 months’ imprisonment (concurrent) (May 16, 2008)   

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Franklin Goodwin, Jr. – Leavenworth, KS
  Offense: Conspiracy to possess with intent to distribute cocaine base or possess with intent to distribute or distribute cocaine; use of a communication facility to facilitate the offense of possession with intent to distribute cocaine and cocaine base; District of Kansas
  Sentence: Life imprisonment; one year's supervised release (October 28, 2009)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Gary Lee Gordon – Laurel, MT
  Offense: Possession with intent to distribute methamphetamine; District of Montana
  Sentence: 290 months' imprisonment; 10 years' supervised release (January 25, 2008); amended to 220 months' imprisonment (October 1, 2009)

Commutation Grant: Prison sentence commuted to expire on December 19, 2017.

• Willie Goudeau – Dallas, TX
  Offense: Conspiracy to distribute or possess with intent to distribute five kilograms or more of cocaine and 100 kilograms or more of marijuana; Eastern District of Texas
  Sentence: 292 months' imprisonment; five years' supervised release; $25,000 fine (September 20, 2006); amended to 235 months' imprisonment (October 27, 2015)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017 and unpaid balance of the $25,000 fine remitted.

• Robert James Graves – Nathalie, VA
  Offense: Continuing criminal enterprise; Western District of Virginia
  Sentence: Life imprisonment; five years' supervised release (June 8, 2000)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018,  conditioned upon enrollment in residential drug treatment.

• Jeffrey Gray – Alexandria, VA
  Offense: Conspiracy to distribute more than 500 grams of cocaine; attempt to possess with intent to distribute more than 500 grams of cocaine; possession of a firearm during a drug trafficking crime; money laundering; felon in possession of a firearm; District of Delaware
  Sentence: 480 months' imprisonment; lifetime supervised release (December 22, 2008); amended to 384 months' imprisonment (December 22, 2015)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• John Gronski – Gillette, WY
  Offense: Conspiracy to possess with intent to distribute and to distribute methamphetamine; District of Wyoming
  Sentence: 360 months' imprisonment; five years' supervised release; $4,000 fine (May 14, 2001)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Joseph Lee Gulledge, Jr. – Chattanooga, TN
  Offense: Possession with intent to distribute fifty grams or more of a mixture and substance containing a detectable amount of cocaine base; Eastern District of Tennessee
  Sentence: 120 months' imprisonment; five years' supervised release (April 6, 2009)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Gregory J. Hall – Alachua, FL
  Offense: Conspiracy to distribute and possess with intent to distribute more than five kilograms of cocaine and more than 50 grams of cocaine base; distribution of more than 5 grams of cocaine base; Northern District of Florida
  Sentence: Life imprisonment; 10 years' supervised release (June 21, 2007)

Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment.

• Cullen Reed Harris – Shreveport, LA
  Offense: Conspiracy to manufacture more than 1,000 grams of methamphetamine; manufacture of more than 1,000 grams of methamphetamine; Western District of Texas
  Sentence: Life imprisonment; 10 years' supervised release; $50,000 fine (March 27, 1992)

Commutation Grant: Prison sentence commuted to a term of 420 months' imprisonment.

• Demetrius Carvon Harris – Saint Paul, MN
  Offense: Conspiracy to distribute cocaine; possession of a firearm during a drug trafficking crime; District of Minnesota
  Sentence: 180 months' imprisonment; five years' supervised release (August 6, 2007)

Commutation Grant: Prison sentence commuted to expire on June 17, 2017.

• Gerald Anthony Harris – Killeen, TX
  Offense: Conspiracy to possess with intent to distribute "crack" cocaine; Western District of Texas
  Sentence: Life imprisonment; five years' supervised release; $3,000 fine (June 18, 1997)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017 and unpaid balance of the $3,000 fine remitted.

• Charles B. Harrison – Lecanto, FL
  Offense: Conspiracy to distribute 50 grams or more of methamphetamine; Middle District of Florida
  Sentence: 240 months' imprisonment; 10 years' supervised release (March 30, 2011)

Commutation Grant: Prison sentence commuted to a term of 144 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Malcolm Hartzog – Prentiss, MS
  Offense: Conspiracy to possess with intent to distribute a controlled substance; possession with intent to distribute a controlled substance; Southern District of Mississippi
  Sentence: Life imprisonment; 10 years' supervised release (March 3, 2005)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

• Chalmers Lavette Hendricks – Charlotte, NC
  Offense: Conspiracy to violate narcotic laws (cocaine); possession/distribution cocaine (crack); possession of a firearm by convicted felon during drug trafficking crime; possession of firearm/ammunition by convicted felon (two counts); Western District of North Carolina
  Sentence: Life plus 300 months' imprisonment; 10 years' supervised release (October 26, 1995); amended to life plus 60 months’ imprisonment (March 6, 1998)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.   

• Larry Darvell Henricks – Billings, MT
  Offense: Conspiracy to possess with intent to distribute cocaine, marijuana, and methamphetamine (two counts); possession with intent to distribute marijuana; possession with intent to distribute (four counts); using a firearm in relation to a drug trafficking offense (two counts); District of Montana
  Sentence: 420 months' imprisonment; five years' supervised release (October 13, 1995)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.  

• Larry Dwayne Hill – Granite Shoals, TX
  Offense: Aiding and abetting to conspire to possess with intent to distribute more than 500 grams of methamphetamine; aiding and abetting the possession with intent to distribute more than 50 grams of methamphetamine; felon in possession of a firearm (two counts); Western District of Texas
  Sentence: 262 months' imprisonment; five years' supervised release (February 2, 2007)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• James David Hinkle – New Market, VA
  Offense: Distribution of methamphetamine (two counts); use or possess a firearm in relation to a drug trafficking crime (two counts); Western District of Virginia
  Sentence: 375 months' imprisonment; five years' supervised release (September 13, 2004)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Clifton Ladell Holmes – Flint, MI
  Offense: Distribution of 50 grams or more of cocaine base; Eastern District of Michigan
  Sentence: 240 months' imprisonment; 10 years' supervised release (August 29, 2006)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Michael Dwayne Holmes – Plano, TX
  Offense: Conspiracy to possess with intent to distribute controlled substances; possession with intent to distribute cocaine base (four counts); use of a communication facility to commit a controlled substance offense; distribution of a controlled substance within 1,000 feet of a school; establishment of a place for the manufacture and distribution of a controlled substance (two counts); Eastern District of Texas
  Sentence: Life imprisonment; eight years' supervised release; $5,000 fine (October 2, 1998)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Daryl Lain Hook – Muldrow, OK
  Offense: Manufacture methamphetamine; possess with intent to distribute methamphetamine; Eastern District of Oklahoma
  Sentence: 292 months' imprisonment; five years' supervised release (April 2, 1998)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Cheryl Howard – Sarasota, FL
  Offense: Conspiracy to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base (two counts); Middle District of Florida
  Sentence: Life imprisonment; 10 years' supervised release (April 21, 1995)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Jack Howton – Central City, KY
  Offense: Conspiracy to knowingly and intentionally possess with intent to distribute 50 grams or more of pure methamphetamine; attempted to knowingly possess with intent to distribute 50 grams or more of pure methamphetamine; knowingly and intentionally possess with intent to distribute and distributed a mixture of methamphetamine; felon in possession of a firearm; attempted intimidation to influence testimony of witness (two counts); Western District of Kentucky
  Sentence: Life imprisonment; six years' supervised release (February 13, 2006)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.  

• Terry Conlenzo Huffman – Calvert, TX
  Offense: Possession with intent to distribute at least 50 grams of "crack" cocaine; Western District of Texas
  Sentence: Life imprisonment; 10 years' supervised release; $3,000 fine (September 12, 2007)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018 and unpaid balance of $3,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.

• George Edward Ingram, Jr. – Midland, TX
  Offense: Conspiracy to distribute and possess with intent to distribute 50 grams or more of cocaine base "crack"; Western District of Texas
  Sentence: 240 months' imprisonment; 10 years' supervised release (June 16, 2011)

Commutation Grant: Prison sentence commuted to a term of 120 months' imprisonment.

• Derrick Isom – Providence, RI
  Offense: Conspiracy to distribute and to possess with intent to distribute cocaine base; possession with intent to distribute cocaine base; District of Rhode Island
  Sentence: 300 months' imprisonment; 10 years' supervised release (February 15, 2008)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Corey Jacobs – Bronx, NY
  Offense: Conspiracy to distribute and possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine; aid and abet the possession with intent to distribute cocaine base (two counts); distribution of cocaine base (13 counts); interstate travel in aid of narcotics trafficking (two counts); possession with intent to distribute cocaine base; distribution of cocaine; Eastern District of Virginia
  Sentence: Life imprisonment; five years' supervised release (May 22, 2000)

Commutation Grant: Prison sentence commuted to a term of 264 months' imprisonment.

• Steven P. James – St. Louis, MO
  Offense: Knowingly and intentionally distribute a mixture or substance containing a detectable amount of cocaine base (crack); Knowingly and intentionally combine, conspire, confederate, and agree to distribute a mixture or substance containing a detectable amount of cocaine base (crack); Eastern District of Missouri
  Sentence: 262 months' imprisonment; six years' supervised release (June 13, 2008)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018,  conditioned upon enrollment in residential drug treatment.

• Mario Burtram Janssen – Sedalia, MO
  Offense: Conspiracy to distribute and possess with attempt to distribute 500 grams or more of methamphetamine mixture; failure to appear; Northern District of Iowa
  Sentence: 222 months' imprisonment; five years' supervised release (March 1, 2007)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Harold Dean Jones – Flint, MI
  Offense: Conspiracy to distribute controlled substances; felon in possession of a firearm (two counts); distribution of heroin; possession with intent to distribute heroin; Eastern District of Michigan
  Sentence: Life imprisonment; 10 years' supervised release (May 10, 1995)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Tyrelle Deyon Jones – Yorktown, VA
  Offense: Conspiracy to possess with intent to distribute and to distribute cocaine base; distribution of cocaine base (four counts); Eastern District of Virginia
  Sentence: Life imprisonment; 10 years' supervised release (January 5, 2004)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Robert Joyner – West Columbia, SC
  Offense: Possession with intent to distribute 50 grams or more of cocaine base; District of South Carolina
  Sentence: Life imprisonment; 10 years' supervised release (November 1, 2006)

Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment.  

• Ray Thomas Kelly, II – Hayward, CA
  Offense:          1. Conspiracy to possess with intent to distribute and to distribute five

kilograms or more of a mixture or substance containing a detectable amount of cocaine; Southern District of Indiana

2. Conspiracy to possess with intent to distribute and to distribute five kilograms or more of a mixture or substance containing a detectable amount of cocaine; Western District of Pennsylvania

Sentence:         1. 70 months' imprisonment; three years’ supervised release (September 9,

2005)

2. 240 months' imprisonment (concurrent); 10 years' supervised release; $1,000 fine (April 17, 2008)

Commutation Grant: Prison sentence commuted to a term of 191 months' imprisonment, conditioned upon enrollment in residential drug treatment.  

• Stanley Knox – Blue Mountain, MS
  Offense: Continuing criminal enterprise; distribution and possession with intent to distribute cocaine base; use of a communication facility to facilitate distribution of cocaine base (seven counts); attempted possession with intent to distribute cocaine; possession with intent to distribute and distribution of cocaine base (two counts); distribution of cocaine base within 1,000 feet of a high school (two counts); use of a communication facility to facilitate the attempted distribution of cocaine base (two counts); Northern District of Mississippi
  Sentence: Life imprisonment; eight years' supervised release; $2,000 fine (April 12, 1996)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

• Dana William Lasich – Sioux Falls, SD
  Offense: Conspiracy, possession with the intent to distribute a controlled substance; District of South Dakota
  Sentence: 240 months' imprisonment; 10 years' supervised release; $2,000 fine (March 12, 2001)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Nathaniel Law – Washington, DC
  Offense: Narcotics conspiracy; maintaining a residence for the purpose of manufacturing, distributing, and using a controlled substance; distribution of five grams or more of cocaine base (five counts); distribution of cocaine base within 1,000 feet of a school; possession with intent to distribute five grams or more cocaine base; distribution of cocaine; District of Columbia
  Sentence: Life imprisonment; 12 years' supervised release (April 19, 2005)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Walter Byron Lewis – Jacksonville, FL
  Offense: Conspiracy to distribute five or more kilograms of cocaine; Middle District of Florida
  Sentence: 240 months' imprisonment; 10 years' supervised release (February 23, 2009)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Gerardo Leyva – Dallas, TX
  Offense: Conspiracy to possess with intent to distribute and distribution of a controlled substance; money laundering; Northern District of Texas
  Sentence: Life imprisonment; 10 years' supervised release (October 20, 2006)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Kevin B. Lockhart – Mattapan, MA
  Offense: Conspiracy to distribute and possession with intent to distribute cocaine; possession with intent to distribute cocaine, aiding and abetting; District of Rhode Island
  Sentence: 360 months' imprisonment; eight years' supervised release (October 8, 1998)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Donald Steven Looney – Wichita Falls, TX
  Offense: Conspiracy to possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to deliver a controlled substance and aiding and abetting; possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting (two counts); Northern District of Texas
  Sentence: 548 months' imprisonment; five years' supervised release (May 19, 2006); amended to 511 months' imprisonment (June 2, 2016)

Commutation Grant: Prison sentence commuted to a term of 211 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Mary Beth Looney – Wichita Falls, TX
  Offense: Conspiracy to possess with intent to distribute 50 grams or more of methamphetamine; possession with intent to deliver a controlled substance and aiding and abetting; possession of a firearm in furtherance of a drug trafficking crime and aiding and abetting (two counts); Northern District of Texas
  Sentence: 548 months' imprisonment; five years' supervised release (May 19, 2006); amended to 511 months' imprisonment (June 2, 2016)

Commutation Grant: Prison sentence commuted to a term of 211 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Clinton Stanley Matthews – Norfolk, VA

Offense: Conspiracy to distribute and possess with intent to distribute cocaine, cocaine base and heroin; distribute a mixture or substance containing cocaine base; possess with intent to distribute cocaine (five counts); possess with intent to distribute heroin; Eastern District of Virginia
Sentence: Life imprisonment; five years' supervised release (November 30, 1993)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Dennis Scott McCullough – Norfolk, VA
  Offense: Conspiracy to distribute 50 grams or more of cocaine base; Eastern District of Virginia
  Sentence: 262 months' imprisonment; five years' supervised release (April 27, 2007)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Demond Trevino McFadden – Kingstree, SC
  Offense: Conspiracy to distribute five kilograms or more of cocaine and 50 grams or more of cocaine base; (District of South Carolina)
  Sentence: 240 months' imprisonment; 10 years' supervised release (February 14, 2011); amended to 120 months’ imprisonment (January 21, 2016)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Ralph McIver – Crescent, GA
  Offense: Conspiracy to possess with intent to distribute cocaine; distribution of cocaine (three counts); attempt to possess with intent to distribute cocaine; Southern District of Georgia
  Sentence: 300 months' imprisonment; 10 years' supervised release (March 3, 1998)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Schearean Jean Means – Birmingham, AL
  Offense: Conspiracy to possess with intent to distribute a controlled substance; possession with intent to distribute cocaine, crack cocaine, and marijuana; use of a communication facility to commit, cause or facilitate commission of drug felony (five counts); Northern District of Alabama
  Sentence: Life imprisonment; 10 years' supervised release; $5,000 fine (May 29, 1996)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

• Benjamin Meneses, III – Anchorage, AK
  Offense: Distribution of a controlled substance; District of Alaska
  Sentence: 240 months' imprisonment; 10 years' supervised release (April 17, 2007)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Daniel L. Morgan – Opa Locka, FL
  Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine; attempt to possess with intent to distribute five kilograms or more of cocaine; conspiracy to use and carry firearms in relation to a drug trafficking crime; using and carrying a firearm in relation to a drug trafficking crime; felon in possession of a firearm; Southern District of Florida
  Sentence: Life imprisonment; five years' supervised release (February 7, 2002)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.  

• Kareem Myers – Philadelphia, PA
  Offense: Distribution of five or more grams of cocaine base (two counts); Eastern District of Pennsylvania
  Sentence: 262 months' imprisonment; eight years' supervised release; $1,200 fine (March 16, 2007)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, and unpaid balance of $1,200 remitted at the time of his release, conditioned upon enrollment in residential drug treatment.

• Shelia Rochelle Neal – Winston-Salem, NC
  Offense: Conspiracy to distribute cocaine base and cocaine hydrochloride; Middle District of North Carolina
  Sentence: 120 months' imprisonment; five years' supervised release (June 4, 2010)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Jamael Aaron Nettles – Mobile, AL
  Offense: Possession with intent to distribute crack cocaine; possession with intent to distribute cocaine; simple possession of marijuana; Southern District of Alabama
  Sentence: 365 months' imprisonment; four years' supervised release (August 15, 2006); amended to 293 months' imprisonment (June 4, 2008); amended to 235 months' imprisonment (January 30, 2012); amended to 188 months' imprisonment (July 9, 2015)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Kari Nicole Parks – Bristol, TN
  Offense: Conspiracy to distribute five kilograms or more of cocaine and oxycontin; Western District of Virginia
  Sentence: 240 months' imprisonment; 10 years' supervised release (September 9, 2010)

Commutation Grant: Prison sentence commuted to a term of 120 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Charles Anthony Perry – Lawton, OK
  Offense: Conspiracy to possess with intent to distribute cocaine base; maintaining a place for the distribution of a controlled substance; distribution of cocaine base; Western District of Oklahoma
  Sentence: Life imprisonment; five years' supervised release (June 23, 2000)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Lamont Pollard – St. Louis, MO
  Offense: Possession with intent to distribute in excess of 50 grams of cocaine base; possession with intent to distribute in excess of five grams of cocaine base, carrying a firearm in furtherance of a drug trafficking crime; Eastern District of Missouri
  Sentence: 180 months' imprisonment; five years' supervised release (August 11, 2006)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Lawrence Maurice Powe – Mobile, AL
  Offense: Conspiracy to possess with intent to distribute schedule II (cocaine) controlled substance; Possess with intent to distribute schedule II (cocaine) controlled substance; use of firearm in a drug trafficking felony (two counts); Southern District of Alabama
  Sentence: 480 months' imprisonment; five years' supervised release: $100,000 fine; $900,000 forfeiture obligation (July 28, 1992)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018 and unpaid balance of $900,000 forfeiture obligation remitted, conditioned upon enrollment in residential drug treatment.

• Chad Christopher Pyne – Panama City Beach, FL
  Offense: Conspiracy to manufacture, distribute, and possess with intent to distribute more than 50 grams of methamphetamine and more than 500 grams of a mixture and substance containing methamphetamine; possession of a firearm by a convicted felon; Northern District of Florida
  Sentence: 200 months' imprisonment; five years' supervised release (August 19, 2004); amended to 262 months' imprisonment (January 5, 2006)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Timothy Orlando Rainey – Nashville, TN
  Offense: Conspiracy to distribute and possess with intent to distribute cocaine and marijuana (two counts); Southern District of Alabama
  Sentence: 300 months' imprisonment; five years' supervised release (June 21, 1995)

Commutation Grant: Prison sentence commuted to a term of 235 months' imprisonment.

• Terrance Range – Chicago, IL
  Offense: Conspiracy to distribute 50 grams or more of cocaine base after having been previously convicted of a felony drug offense; possession with intent to distribute five grams or more of cocaine base after having been previously convicted of a felony drug offense; Northern District of Iowa
  Sentence: 240 months' imprisonment; 10 years' supervised release (June 13, 2007)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Aaron Duane Rees – Pleasantville, IA
  Offense: Conspiracy to manufacture methamphetamine; use of a minor to manufacture methamphetamine; Southern District of Iowa
  Sentence: Life imprisonment; 10 years' supervised release (November 29, 2005)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Fabian Roberson – Cincinnati, OH
  Offense: Possession with intent to distribute in excess of 50 grams of cocaine base; possession of a firearm during and in relation to a drug trafficking crime; Southern District of Ohio
  Sentence: 180 months' imprisonment; five years' supervised release; $1,000 fine (April 3, 2008)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Sean Anthony Robinson – Richmond, VA
  Offense: Conspiracy to distribute and possess with intent to distribute cocaine base; possession of a firearm by a convicted felon (three counts); Eastern District of Virginia
  Sentence: 420 months' imprisonment; 10 years' supervised release (December 21, 2006); amended to 360 months’ imprisonment (November 23, 2015)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Delanjun L. Rogers – Panama City, FL
  Offense: Distribution and possession with intent to distribute more than five grams of a mixture and substance containing cocaine base; Northern District of Florida
  Sentence: 262 months' imprisonment; eight years' supervised release (September 7, 2005)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Anthony Dewon Rose – Coffeyville, KS
  Offense: Possession with intent to distribute five grams or more of cocaine base, aka “crack”; possession with intent to distribute a mixture and substance containing a detectable amount of MDMA, aka "ecstasy" ; Northern District of Oklahoma
  Sentence: 188 months' imprisonment; five years' supervised release; $1,000 fine (August 26, 2008)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, and unpaid balance of the $1,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.

• Shawn Sadler – Charleston, SC
  Offense: Conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine; District of South Carolina
  Sentence: 240 months' imprisonment; 10 years' supervised release (July 17, 2008)

Commutation Grant: Prison sentence commuted to a term of 151 months' imprisonment.

• Lawrence Samuels, Jr. – Tulsa, OK
  Offense: Possession with intent to distribute a controlled substance; Northern District of Oklahoma
  Sentence: 210 months' imprisonment; five years' supervised release; $5,000 fine (October 3, 2005)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, and unpaid balance of the $5,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.

• Angel Santana – Chicago, IL
  Offense: Conspiracy to possess with intent to distribute more than five kilograms of cocaine; Middle District of Florida
  Sentence: Life imprisonment (February 24, 1993)

Commutation Grant: Prison sentence commuted to expire on December 19, 2017.

• William Keith Schanck – Vista, CA
  Offense: Conspiracy to possess with intent to distribute methamphetamine; possession of ephedrine; possession of hydriotic acid; maintaining a place for the purpose of manufacturing methamphetamine; Middle District of Florida
  Sentence: Life imprisonment (January 30, 1995)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Todd Alan Scofield – Flandreau, SD
  Offense: Conspiracy to possess a controlled substance; possession of a firearm by a prohibited person; distribution of a controlled substance (two counts); District of South Dakota
  Sentence: 240 months' imprisonment; 10 years' supervised release (December 6, 2004)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Terence Devon Scott – Lynchburg, VA
  Offense: Distribution of 50 grams or more of cocaine base; possession of a firearm in furtherance of a drug trafficking crime; Western District of Virginia
  Sentence: 180 months' imprisonment; five years' supervised release (February 26, 2008)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Derrick Lamont Smith – Brooklyn, NY
  Offense: Conspiracy to possess with intent to distribute and to distribute one kilogram or more of heroin; District of South Carolina
  Sentence: 240 months' imprisonment; 10 years' supervised release (May 31, 2007)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Stacia Smith – Dolton, IL
  Offense: Narcotics conspiracy; use of a telephone in drug conspiracy (two counts); using/carrying a firearm in relation to a drug offense; Northern District of Illinois
  Sentence: 252 months' imprisonment; 10 years' supervised release (October 26, 2005)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Melissa Ann Sosa – Midland, TX
  Offense: Conspiracy to distribute and to possess with intent to distribute over five kilograms of cocaine; Western District of Texas
  Sentence: 240 months' imprisonment; 10 years' supervised release (August 5, 2010)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Steven Blair Speal – Oklahoma City, OK
  Offense: Conspiracy to distribute a controlled substance; possession with intent to distribute methamphetamine; possession with intent to distribute marijuana; possession of a firearm during a drug trafficking crime; possession of a firearm by a prohibited person (two counts); District of Kansas
  Sentence: Life plus 60 months' imprisonment; five years' supervised release; $5,000 fine (October 30, 1997)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Terry Earl Stewart – Midland, TX
  Offense: Conspiracy to possess with intent to distribute more than 50 grams of crack cocaine; aiding and abetting in the possession with intent to distribute crack cocaine (two counts); Western District of Texas
  Sentence: Life imprisonment; 10 years' supervised release (March 28, 2003)

Commutation Grant: Prison sentence commuted to a term of 327 months' imprisonment.

• Kenneth Stover, Jr. – Cleveland, OH
  Offense: Conspiracy to distribute and possess with intent to distribute cocaine; possess with intent to distribute cocaine; conspiracy to distribute and possess with intent to distribute marijuana; unlawful use of a communication facility (two counts); felon in possession of ammunition; use of a firearm in the commission of a drug trafficking crime; Northern District of Ohio
  Sentence: Life imprisonment (August 27, 2003)

Commutation Grant: Prison sentence commuted to expire on December 19, 2017.

• Michael Stradford – Newark, NJ
  Offense: Distribution and possession with intent to distribute more than 5 grams of cocaine base; District of New Jersey
  Sentence: 188 months' imprisonment; four years' supervised release; $1,000 fine (July 16, 2008)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Jerry Strahan – Granite City, IL
  Offense: Conspiracy to distribute heroin and cocaine base; distribution of cocaine base; Southern District of Illinois
  Sentence: Life imprisonment; 10 years' supervised release; $1,000 fine (February 23, 2007)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Kenneth Demon Terry – Ballwin, MO
  Offense:          1. Possession with intent to distribute cocaine base; Eastern District of

Missouri

2. Willful failure to surrender for service of sentence; Eastern District of Missouri

Sentence:         1. 188 months' imprisonment; four years’ supervised release (November 3,

                        2006)

2. 15 months' imprisonment (consecutive); two years' supervised release (September 24, 2007)

Commutation Grant: Prison sentence commuted to expire on March 19, 2018.

• Don Thomas, Jr. – Essex, MD
  Offense: Conspiracy to distribute and possess with intent to distribute narcotics (five kilograms or more of cocaine); possessing a firearm in furtherance of a drug trafficking crime; District of Maryland
  Sentence: 300 months' imprisonment; 10 years' supervised release (May 19, 2006)

Commutation Grant: Prison sentence commuted a term of 240 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Tracy Maurice Thomas – Weldon, NC
  Offense: Possession with intent to distribute a quantity of cocaine base (crack); using and carrying a firearm during and in relation to a drug trafficking crime (two counts); possession with intent to distribute more than five grams of cocaine base (crack); Eastern District of North Carolina
  Sentence: 437 months' imprisonment; five years' supervised release (July 13, 2009); amended to 420 months’ imprisonment (December 17, 2014)

Commutation Grant: Prison sentence commuted to a term of 180 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Jerry Lee Thompson – Brownwood, TX
  Offense: Possession with intent to distribute less than five grams of cocaine base within 1,000 feet of a playground and aiding and abetting; Northern District of Texas
  Sentence: 312 months' imprisonment; 12 years' supervised release (August 30, 2001)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Raphael Marice Tinsley – Panama City, FL
  Offense: Possession with intent to distribute more than 50 grams of a mixture and substance containing cocaine base; Northern District of Florida
  Sentence: Life imprisonment; 10 years' supervised release (June 13, 2007)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Tyrone Trader – Chester, PA
  Offense: Conspiracy to distribute cocaine; distribution of cocaine (four counts); distribution of cocaine within 1,000 feet of a school (three counts); Eastern District of Pennsylvania
  Sentence: Life imprisonment; 10 years' supervised release; $1,000 fine (September 29, 2008)

Commutation Grant: Prison sentence commuted to a term of 300 months' imprisonment, and unpaid balance of $1,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.

• Mark David Turner – Opelika, AL
  Offense: Conspiracy to manufacture, distribute, and possess with intent to distribute 50  grams or more of methamphetamine; possession with intent to distribute five grams or more of methamphetamine; possession of pseudoephedrine (precursor chemical) knowing and having reasonable cause to believe that the pseudoephedrine would be used to manufacture five grams or more of methamphetamine (two counts); using and carrying a firearm during a drug trafficking offense (two counts); possession with intent to distribute methamphetamine; manufacture and possess with intent to distribute five grams or more of methamphetamine (two counts); Middle District of Alabama
  Sentence: 481 months' imprisonment; five years' supervised release (November 12, 2002)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Vincent Lee Twiggs, II – Cape Girardeau, MO
  Offense: Possession of five grams or more of a substance containing cocaine base with intent to distribute; Eastern District of Missouri
  Sentence: 188 months' imprisonment; four years' supervised release (March 27, 2009)

Commutation Grant: Prison sentence commuted to a term of 151 months' imprisonment, conditioned upon enrollment in residential drug treatment.

• Darnell L. Walker – Detroit, MI
  Offense: Conspiracy, possession with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine and cocaine base; possession of firearm by convicted felon (two counts); Northern District of Ohio
  Sentence: Life imprisonment (December 26, 1995)

Commutation Grant: Prison sentence commuted to a term of 360 months' imprisonment.

• Lafayette Maurice Washington – Panama City, FL
  Offense: Conspiracy to distribute and possess with intent to distribute more than 500 grams of a mixture and substance containing a detectable amount of cocaine and more than 50 grams of a mixture and substance containing cocaine base; Northern District of Florida
  Sentence: 240 months' imprisonment; 10 years' supervised release (May 18, 2006)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Jeffrey Scott Welch – Glendale, AZ
  Offense: Distribution of methamphetamine (two counts); possession with intent to distribute methamphetamine; using and carrying a firearm during and in relation to a drug trafficking crime (two counts); unlawful possession of a firearm; District of Arizona
  Sentence: 420 months' imprisonment; five years' supervised release; $5,000 fine (December 10, 1992)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018 and unpaid balance of the $5,000 fine remitted at the time of his release, conditioned upon enrollment in residential drug treatment.

• Gary Dean White – Gastonia, NC
  Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; Western District of North Carolina
  Sentence: Life imprisonment; 10 years' supervised release (June 22, 2007)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment.

• Albert Wilborn – Michigan City, IN
  Offense: Possession with intent to distribute cocaine base; Northern District of Indiana
  Sentence: 204 months' imprisonment; four years' supervised release (May 1, 2009)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Billy Dee Williams – Charlotte, NC
  Offense: Conspiracy to possess with intent to distribute cocaine base; using/carrying firearm in furtherance of a drug trafficking crime; and aiding and abetting; Western District of North Carolina
  Sentence: Life plus 60 months’ imprisonment; 10 years' supervised release (July 11, 2006)

Commutation Grant: Prison sentence commuted to a term of 228 months' imprisonment.

• Derwayne A. Williams – Independence, MO
  Offense: Conspiracy to distribute cocaine base 50 grams or more (two counts); Western District of Missouri
  Sentence: 240 months' imprisonment; 10 years' supervised release (October 6, 2009)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Jaycee Williams, Jr.  – Panama City, FL
  Offense: Possession with intent to distribute more than 50 grams of a mixture and substance containing cocaine base; Northern District of Florida
  Sentence: 240 months' imprisonment; 10 years' supervised release (December 13, 2006)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Kevin Wise – Washington, DC
  Offense: Unlawful distribution of five grams or more of cocaine base; District of Columbia
  Sentence: 262 months' imprisonment; four years' supervised release (May 11, 2001)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Jason Allen Woody – Huttonsville, WV
  Offense: Possession with intent to distribute 50 grams or more of cocaine base; Southern District of West Virginia
  Sentence: 312 months' imprisonment; five years' supervised release; $2,000 fine (October 10, 2006)

Commutation Grant: Prison sentence commuted to expire on December 19, 2018, conditioned upon enrollment in residential drug treatment.

• Harold Dwight Wooten – Clarkton, NC
  Offense: Conspiracy: Possession with intent to distribute and distribute cocaine base (crack); Middle District of North Carolina
  Sentence: 298 months' imprisonment; five years' supervised release (September 1, 1998)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Delmar Anton Zeigler – Oklahoma City, OK
  Offense: Possession of cocaine base with intent to distribute and aiding and abetting; possession of cocaine base with intent to distribute; Western District of Oklahoma
  Sentence: Life imprisonment; 10 years' supervised release (August 25, 1998)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

• Michael Antwan Zone – Melbourne, FL
  Offense: Possession with intent to distribute 50 grams or more of cocaine base; Middle District of Florida
  Sentence: Life imprisonment; 10 years' supervised release (August 23, 2007)

Commutation Grant: Prison sentence commuted to expire on April 18, 2017.

The President granted pardons to the following 78 individuals:

• Ryan Michael Ashbrook – DeWitt, MI

Offense:  Possession with intent to distribute approximately 56 pounds of marijuana (Southern District of Texas)

Sentence:  Three years' probation, conditioned upon six months' home confinement and performance of 200 hours of community service (September 8, 2000)

• Robert Spencer Baines – South Thomaston, ME

Offense:  Conspiracy to possess, possession with intent to distribute over 1,000 pounds of marijuana (District of Maine)

Sentence:  Six years' imprisonment (July 31, 1986)

• Roy Darrell Benson – Albuquerque, NM

Offense:  Bank fraud (District of Oregon)

Sentence:  18 months' imprisonment; three years' supervised release; $50,000 restitution (January 30, 1995)

• Theresa Marie Bishop, aka Teresa Clark – Pittsburgh, PA

Offense:  Knowingly disposing of a firearm to a person convicted of a crime punishable by a term of imprisonment exceeding one year (three counts); falsification of firearms purchase forms (two counts) (Western District of Pennsylvania)

Sentence:  Three years' probation, conditioned upon one year of home detention (December 8, 2006)

• Tavia Dion Blume – Snohomish, WA

Offense:  Possession of methamphetamine with intent to distribute; use of a firearm in relation to a drug trafficking offense (District of Montana)

Sentence:  42 months' imprisonment; three years' supervised release (May 21, 1999) (as amended July 12, 1999)

• Bob Edward Bone – St. Louis, MO

Offense:  Conspiracy to manufacture in excess of 500 grams of methamphetamine (Eastern District of Missouri)

Sentence:  One year and one day of imprisonment; two years' supervised release (May 2, 2006)

• Philip Stephen Brown, aka Phil Brown – Rock Springs, WY

Offense:  Conspiracy to possess with intent to distribute and distribution of methamphetamine (District of Wyoming)

Sentence:  Five months' imprisonment; three years' supervised release, including five months' home confinement (May 11, 2000)

• Jesse Daniel Burgher, aka Jessie Burgher – Montgomery, AL

Offense:  Possession with intent to distribute at least 100 kilograms of marijuana (Southern District of Florida)

Sentence:  60 months' imprisonment; four years' supervised release (September 8, 1989)

• Caryn Lynn Camp, fka Caryn Lynn Camp-Kenworthy – Taichung, Taiwan R.O.C.

Offense:  Wire fraud (10 counts); mail fraud (two counts); conspiracy to steal trade secrets; conspiracy to transport stolen goods; interstate transportation of stolen goods (District of Maine)

Sentence:  Three years' probation; $7,500 restitution (December 7, 1999)

• Randy Dale Cantu – Niwot, CO

Offense:  Conspiracy; falsely making and forging endorsement on government bonds (Southern District of Georgia)

Sentence:  Five years' probation; $169.80 restitution (February 8, 1978)

• James Randolph Carter – Wagoner, OK

Offense:  Possession of methamphetamine with intent to distribute (Northern District of Oklahoma)

Sentence:  60 months' imprisonment; five years' supervised release (May 30, 1991) (as amended May 15, 1997)

• Dolly Ann Chamberlain, fka Dolly Ann Taylor – Herald, CA

Offense:  Conversion of government money (Eastern District of California)

Sentence:  36 months' probation, including 180 days of home confinement; $3,000 fine; $82,673.06 restitution (September 23, 2002)

• Tietti Onette Chandler, fka Tietti Chandler-Shelton – Columbus, MS

Offense:  Embezzlement of mail matter by a postal employee (Northern District of Mississippi)

Sentence:  Three years' probation, conditioned upon the performance of 150 hours of community service (April 1, 1999)

• Larry Wayne Childress, Jr. – Williamsville, MO

Offense:  Conspiracy to possess with intent to distribute methamphetamine (two counts) (Eastern District of Arkansas)

Sentence:  One day of imprisonment; four years' supervised release, including 12 months' home detention (March 6, 1997) (as amended November 13, 1997)

• Kristi Lynn Coe, aka Kristi Lynn Coe-Hagan, fka Kristi Hinshaw – Haw River, NC

Offense:  Mail fraud (mistakenly listed in the judgment as mail theft) (Middle District of North Carolina)

Sentence:  Five years' probation, conditioned upon four months’ home confinement; $17,785.72 restitution (October 11, 2001)

• Melissa Rae Conley, fka Melissa Faith – Midland, TX

Offense:  Aiding and abetting distribution of a detectable amount of methamphetamine (Western District of Texas)

Sentence:  18 months' imprisonment; three years' supervised release (January 24, 2007)

• Christopher John Darville – Missouri City, TX

Offense:  Making false statements to a federally insured financial institution (Middle District of Louisiana)

Sentence:  One day of imprisonment; three years' supervised release conditioned on three months' home detention; $2,000 fine (November 27, 2001)

• Amanda Kucharski DeBlauw, fka Amanda Richmond – Newmarket, NH

Offense:  Distribution of heroin (District of New Hampshire)

Sentence:  Five months' imprisonment; three years' supervised release, conditioned upon 11 months’ home detention (November 29, 1999)

• Lehi Victoria Dickey, aka Lahi Dickey, fka Lehi Dickey Bryant – Oakland, CA

Offense:  Bank embezzlement (Northern District of California)

Sentence:  Three years' probation; $1,000 fine (September 13, 1985)

• Ronald Lee Eyler – Williamsport, MD

Offense:  Conspiracy to distribute and possession with intent to distribute in excess of one kilogram of a mixture or substance containing a detectable amount of cocaine (District of Maryland)

Sentence:  Two years' imprisonment (March 9, 1992)

• Michael Anthony Facchiano, Jr. – Venetia, PA

Offense:  Mail fraud (two counts) (Western District of Pennsylvania)

Sentence:  Six months' imprisonment; five years' probation; $2,000 fine (February 22, 1985)

• Theresa Renee Gardley, fka Theresa Renee Naper, fka Theresa Renee Thornton – Hillside, IL

Offense:  Unlawful use of an unauthorized access device (Southern District of Texas)

Sentence:  Three years’ imprisonment, suspended; five years' probation, conditioned upon 200 hours of community service; $6,411 restitution (December 9, 1988)

• Karim Riad Georgy – Tampa, FL

Offense:  Acquiring and possessing controlled substances by fraud, deception, or subterfuge (Middle District of Florida)

Sentence:  Three years' probation; $1,500 fine; $1,000 restitution (November 6, 2001) (as amended January 28, 2002)

• Donald Lee Gilbert – Phoenix, AZ

Offense:  Interstate transportation of a stolen motor vehicle (District of Maine)

Sentence:  Two years' probation (October 19, 1964)

• Pamela Ann Golemba – Enfield, CT

Offense:  Conspiracy to export cocaine (District of Connecticut)

Sentence:  Three years' probation, including six months' house arrest; $2,500 fine (December 15, 1989)

• Richard Allen Graham – Callahan, FL

Offense:  Destruction of mail matter by a postal employee (Middle District of Florida)

Sentence:  One year of probation, including 25 hours of community service (December 19, 2008)

• Bobby Joseph Guidry, aka Bob Guidry – Youngsville, CA

Offense:  Conspiracy to import marijuana; conspiracy to possess with intent to distribute marijuana (Southern District of Mississippi)

Sentence:  Three years' imprisonment; five years' probation; $1,000 fine (March 4, 1988)

• Edward John Hartman – Westampton Township, NJ

Offense:  Conspiracy (submitting false and fraudulent documents to FHA and VA) (District of New Jersey)

Sentence:  Four months' imprisonment; three years' probation; $3,000 fine; unspecified restitution (July 11, 1986)

• William Bernie Heckle, Jr., aka Billy Heckle – Orangeburg, SC

Offense:  Falsifying medical prescriptions and illegally dispensing controlled substances (Schedule II through Schedule V); dispensing prescription medication without a legitimate written order from a prescribing physician (District of South Carolina)

Sentence:  18 months' imprisonment; three years' supervised release (December 4, 1996)

• Juleen Nicole Henry – Duluth, GA

Offense:  Conspiracy to distribute marijuana (Eastern District of Michigan)

Sentence:  Time served (115 days’ imprisonment); two years' supervised release (April 23, 2001)

• James Ralph Hoeckelman – Irwin, PA

Offense:  Conspiracy to distribute and possess with intent to distribute marijuana (Western District of Pennsylvania)

Sentence:  30 months' imprisonment; three years' supervised release (April 10, 1992) (as amended April 18, 1997)

• Ralph Allen Hoekstra, aka Ralph Alan Hoekstra – Huntington Beach, CA

Offense:  Importing wildlife contrary to law (Central District of California)

Sentence:  One year of probation; $5,000 fine (January 19, 2005)

• Samuel Wesley Howze, aka Sala Udin – Pittsburgh, PA

Offense:  Unlawfully transporting firearms; possession of untaxpaid distilled spirits (Western District of Kentucky)

Sentence:  Five years' imprisonment (November 20, 1970)

• Herman Lamont Jackson – Maple Heights, OH

Offense:  Possession with intent to distribute cocaine base and cocaine (two counts) (Northern District of Ohio)

Sentence:  63 months' imprisonment; three years' supervised release; $2,000 fine (March 29, 1999)

• Mark Edward Johnson – Hanscom Air Force Base, MA

Offense:  Conspiracy to import more than 100 kilograms of marijuana (Western District of Texas)

Sentence:  24 months' imprisonment; three years' supervised release, conditioned upon 200 hours of community service (April 6, 2004)

• Cathy Mae Jones, fka Cathy Mae Bennett – Alamogordo, NM

Offense:  Conspiracy (District of New Mexico)

Sentence:  Time served (nine days' imprisonment); five years' supervised release; $1,423.50 restitution (September 14, 2006)

• Fabius Romero Jones – Oakland, CA

Offense:  Theft from interstate shipment (Northern District of California)

Sentence:  One year of probation; $100 fine (August 24, 1977)

• Ricky Eugene Jones – Alamogordo, NM

Offense:  Conspiracy to manufacture 5 grams or more of methamphetamine; attempt to manufacture 5 grams or more of methamphetamine; maintaining a place for manufacture of methamphetamine; possession with intent to distribute less than 5 grams of methamphetamine (District of New Mexico)

Sentence:  Time served (42 days' imprisonment); five years' supervised release; $1,423.50 restitution (September 14, 2006)

• James Harold Keaton – Bassett, VA

Offense:  Possession of a stolen firearm (Western District of Virginia)

Sentence:  30 months' probation, conditioned upon 50 hours of community service (November 9, 2007)

• Dean Robert Kondo – Daly City, CA

Offense:  Possession of counterfeit currency (Northern District of California)

Sentence:  12 months and one day of imprisonment; three years' supervised release (July 19, 2000)

• Mary Ann Krauser, fka Mary Ann Iron Shield – Fort Yates, ND

Offense:  Involuntary manslaughter (District of North Dakota)

Sentence:  Three years' imprisonment, suspended; five years' probation (June 1, 1982)

• Emmanuel Gabriel Leeper – Plano, TX

Offense:  Possession with intent to distribute marijuana (Eastern District of Missouri)

Sentence:  151 months' imprisonment; five years' supervised release (April 9, 1993)

• Keith Alan Little – Odessa, TX

Offense:  Interception of electronic communications (Western District of Texas)

Sentence:  Five years' probation, including four months in a halfway house; $10,000 fine (June 14, 1990)

• Victoria Hunter Lowe – Tucson, AZ

Offense:  Conspiracy to possess with intent to distribute methamphetamine (Western District of Texas)

Sentence:  46 months' imprisonment; three years' supervised release (July 18, 2006)

• Dawn Mascari, fka Dawn Steponavich – North Branford, CT

Offense:  Aiding and abetting in illegal gambling operation (District of Connecticut)

Sentence:  Three years’ probation, conditioned upon two months' home confinement; $2,000 fine (April 23, 2002)

• James Willie McGrady, Jr. – Fayetteville, NC

Offense:  Distribution of cocaine and aiding and abetting; distribution of cocaine in excess of 500 grams and aiding and abetting; possession of a firearm in the commission of a drug trafficking crime (Eastern District of North Carolina)

Sentence:  37 months' imprisonment; four years' supervised release; $5,000 fine; $1,000 restitution (April 11, 1989) (as amended May 3, 1990)

• John Frederick McNeely, Jr. – Santa Ana, CA

Offense:  Receiving counterfeit government obligations (Central District of California)

Sentence:  Three years' probation (July 27, 1970)

• Kenneth Shannon Meadows, aka Kenny Shannon Meadows – Celina, TN

Offense:  Manufacture, assemble, modify, sell and distribute electronic devices for the unauthorized decryption of direct-to-home satellite television services (Western District of Kentucky)

Sentence:  Three years' probation, conditioned upon six months' home confinement; $36,424 restitution (August 25, 2003)

• Roger Delos Melius – Faulkton, SD

Offense:  Conspiracy to submit false statements (District of South Dakota)

Sentence:  Three years' probation; $87,712.91 restitution (October 11, 2007) (as amended December 17, 2007)

• Samuel Nyamongo Mongare – Arlington, TX

Offense:  Possession of false identification documents with intent to defraud the United States (Western District of Texas)

Sentence:  Four months' imprisonment; three years' supervised release (March 27, 2001)

• Steven Odell Moon – Burleson, TX

Offense:  Conspiracy to distribute and possess phenylacetic acid (Northern District of Texas)

Sentence:  60 months' imprisonment; three years' supervised release (January 24, 1991)

• George Bernard Moran – Federal Way, WA

Offense:  Conspiracy to import a substantial amount of marijuana into the United States; conspiracy to possess with intent to distribute an amount of marijuana over 1,000 pounds; subscribing to a false United States Income Tax Return (District of Maine)

Sentence:  Eight years' imprisonment (May 11, 1984)

• Thomas Whitfield Morris, Jr. – Pawleys Island, SC

Offense:  Conspiracy to import cocaine into the United States (District of South Carolina)

Sentence:  Five years' probation, conditioned upon 300 hours of community service (August 26, 1992)

• Christopher Muratore – Tampa, FL

Offense:  Devising a scheme to defraud the United States of money and property and devising a scheme to deprive the United States Bankruptcy Court and the citizens of the United States of honest services (Middle District of Florida)

Sentence:  36 months' probation, including six months' home detention; $107,850 restitution (September 25, 2001)

• Serena Denise Nunn – Atlanta, GA

Offense:  Aiding and abetting in the attempt to possess with intent to distribute cocaine; possession with intent to distribute cocaine base; conspiracy to possess with intent to distribute cocaine (District of Minnesota)

Sentence:  188 months' imprisonment; five years' supervised release (sentence commuted) (April 11, 1990)

• Francis Joseph O'Hara, Sr. – Camden, ME

Offense:  Conspiracy to restrain, suppress and eliminate competition by rigging bids; conspiracy with others to knowingly and willfully make and use false documents containing false statements in matters within the jurisdiction of the Defense Personnel Support Command (District of Maine)

Sentence:  Six months' imprisonment; two years' supervised release; $200,000 fine; $950,000 restitution (September 13, 1991)

• James Allen Palmatier – Highland, NY

Offense:  Possession with intent to distribute cocaine (mistakenly listed in the judgment as possession of cocaine) (Northern District of Alabama)

Sentence:  97 months' imprisonment; four years' supervised release, conditioned upon 300 hours of community service (September 21, 1989)

• Allen Wayne Parker – Fort Smith, AR

Offense:  Officer of U.S. stealing property of another (Western District of Arkansas)

Sentence:  Three years' probation, conditioned upon an undetermined term of home confinement and five weekends of intermittent confinement; $1,000 fine (May 1, 1991)

• Robert Allen Petty – Mineola, TX

Offense:  Distribution of methamphetamine (Western District of Oklahoma)

Sentence:  33 months' imprisonment; three years' supervised release (April 4, 1994)

• Benjamin Ramos – Jamaica, NY

Offense:  Conspiracy to transport and sell stolen goods (two counts) (Southern District of New York)

Sentence:  Four years' probation; $5,000 restitution (September 21, 2000)

• Erica Renee Ramos, fka Erica Renee DeVore, fka Erica Renee Ramirez – Port St. Lucie, FL

Offense:  Use of a communication facility to facilitate a drug felony (Middle District of Florida)

Sentence:  Two years' probation (February 20, 2003)

• Doretha Doreen Rhone – Philadelphia, PA

Offense:  Theft (District of Columbia)

Sentence:  Three years' probation; $3,060 restitution (March 14, 1989)

• Adam Philip Ricciardiello – Naples, FL

Offense:  Conspiracy to distribute marijuana (District of Vermont)

Sentence:  Time served; three months’ residence in a community confinement center; four years' supervised release, conditioned upon 200 hours of community service; $5,000 fine (July 1, 2002) (as amended July 3, 2002 and January 28, 2003)

• Ramon Escalera Sanchez – Cheney, WA

Offense:  Possession of less than 500 grams of cocaine with intent to distribute (Eastern District of Washington)

Sentence:  27 months' imprisonment; three years' supervised release (September 19, 2003)

• Bryan Scot Sandquist – Gig Harbor, WA

Offense:  Felon in possession of a firearm (District of Oregon)

Sentence:  40 months' imprisonment; three years' supervised release (November 4, 2002)

• Heidi Kay Schmidt, fka Heidi Kay Watt – Denton, NE

Offense:  Conspiracy to distribute controlled substance (District of Nebraska)

Sentence:  30 months' imprisonment; five years' supervised release, conditioned upon 250 hours of community service (June 30, 2005) (as amended April 12, 2006)

• Allen Thompson Sherwood – Ooltewah, TN

Offense:  Conduct unbecoming an officer (shoplifting) (United States Air Force general court-martial convened at Barksdale Air Force Base, Louisiana)

Sentence:  Dismissal from service; four months’ confinement; forfeiture of $500 pay per month for four months; $5,000 fine (January 24, 1990)

• Kaseen Lathell Simmons, aka Ceno Smith – Detroit, MI

Offense:  Possession with intent to distribute less than 50 kilograms of marijuana (District of New Mexico)

Sentence:  21 months' imprisonment; two years' supervised release (May 17, 1999)

• Brenda Lorene Sinclair, fka Brenda Lorene Pontius – Boise, ID

Offense:  Receiving, possessing, concealing and disposing of stolen money (District of Oregon)

Sentence:  Ten years’ imprisonment; five years' probation; $1,986 restitution (October 27, 1986)

• Michael Slavinsky – Irvine, CA

Offense:  Misdemeanor illegal supplementation of salary by an employee of the United States (District of Columbia)

Sentence:  Three years' probation, conditioned upon performance of 50 hours of community service; $10,000 restitution (January 7, 1998)

• Richard Earl Smout – Blackfoot, ID

Offense:  Possession of stolen mail (District of Utah)

Sentence:  Time served (77 days' imprisonment) and two years' supervised release (November 20, 2001)

• Robin Shelley Soodeen – Upper Marlboro, MD

Offense:  Bank embezzlement (District of Columbia)

Sentence:  Eight months' halfway house confinement; five years' supervised release; $49,000 restitution (October 2, 2001)

• Pamela Joy Stokes – Southfield, MI

Offense:  False Statement (Eastern District of Michigan)

Sentence:  Two years' probation, conditioned upon 120 days’ home confinement (May 3, 2006)

• Joseph Eugene Swies – Frederic, WI

Offense:  Forgery of postal money orders (Western District of Wisconsin)

Sentence:  Three years’ probation; $1,259.71 restitution (July 27, 1984)

• Shari Dee Trompke – Grand Island, NE

Offense:  Conspiracy to distribute methamphetamine (District of Nebraska)

Sentence:  36 months' imprisonment; five years' supervised release (April 17, 1997)

• Jessica Ann Tyson, fka Jessica Ann Martin – Grand Rapids, MI

Offense:  Conspiracy to commit bank fraud (Western District of Michigan)

Sentence:  Two years' probation; $1,200 restitution (December 2, 1997)

• Robert Steven Warden – Monroe, WA

Offense:  Simple possession of approximately two grams of heroin (Central District of California)

Sentence:  One year of probation (December 4, 1972)

• Vera Mae Yurisich – Cashmere, WA

Offense:  Perjury (Eastern District of Washington)

Sentence:  Three months' imprisonment; three years' supervised release (April 30, 2007)

The Justice Department announced today that it found reasonable cause to believe that the Ville Platte, Louisiana, Police Department (VPPD) and the Evangeline Parish Sheriff’s Office (EPSO) engage in a pattern or practice of conduct that violates the Fourth Amendment to the Constitution. 

The department found that VPPD and EPSO used a procedure the agencies called an “investigative hold” to detain individuals without probable cause during criminal investigations.  As a result of this pattern or practice, people in Louisiana’s Evangeline Parish have been arrested and placed in holding cells without probable cause.  Often, individuals were in holding cells for several days at a time, where they were unable to contact family, friends or employers and had limited access to food and personal items. 

“When police officers investigate criminal activity, they must do so responsibly and within the boundaries of the law,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “The violations we found in Ville Platte and Evangeline Parish demonstrate a disturbing pattern of officers overstepping legal boundaries by placing residents in holding cells for days at a time without probable cause.  We look forward to working with both agencies and the local municipalities to ensure that officers can effectively protect their communities and safeguard the liberties of the residents they serve.”

The Justice Department’s findings result from a comprehensive review of EPSO and VPPD’s relevant policies, procedures, training and accountability systems.  The review included meetings with the leadership of both agencies and the city of Ville Platte, interviews with officers throughout the chain of command at both agencies and conversations with other members of the local community.  Throughout the department’s investigation, VPPD, EPSO and the city of Ville Platte provided their full cooperation and were receptive to the department’s initial feedback.  VPPD and EPSO leadership acknowledged that the investigative holds are unconstitutional and have taken laudable steps to begin eliminating their use.  The department will continue to work closely with these law enforcement agencies and municipalities to remedy the issues identified in the report.

The Civil Rights Division’s Special Litigation Section conducted the investigation.  Since the start of the administration, the Special Litigation Section has opened 25 investigations into law enforcement agencies.  The department is enforcing 19 agreements with law enforcement agencies, including 14 consent decrees and one post-judgment order.

For additional information, please visit the Civil Rights Division’s website at www.justice.gov/crt.

On December 8,  2016, a U.S. federal grand jury returned an indictment against Silas Duane Boston, charging him with two counts of first degree maritime murder.  He is accused of killing British tourists, Christopher Farmer and Peta Frampton, aboard his boat in the Caribbean Sea in the summer of 1978. Boston ran a charter boat company that was hired by the two victims who were vacationing in the Caribbean.  According to the indictment, Boston murdered the couple and dumped their weighted bodies overboard. The boat, known as the Justin B. was  owned by Boston, a U.S. citizen; therefore, maritime and territorial laws of the United States apply and the case is being prosecuted under federal jurisdiction. Boston was arrested on December 1, 2016, in Paradise, California, and was arraigned before U.S. Magistrate Judge Carolyn K. Delaney in the U.S. District Court Eastern District of California. Boston entered a plea of not guilty. 

INTERPOL Washington—the U.S. National Central Bureau (USNCB)--has been supporting this cold case investigation since 2012. Since 2015, INTERPOL Washington has worked with INTERPOL Manchester, NCB; the Sacramento Police Department; the FBI Sacramento; and the Manchester (United Kingdom) Police Department. INTERPOL Washington facilitated contacts between the Sacramento and Manchester (United Kingdom) police department investigators; passed witness statements from Sacramento to Manchester; and circulated requests for information to NCBs worldwide. The bureau also researched correspondence and documentation filed with USNCB at the time the victims were reported to have been murdered. The Manchester UK Police Department expressly thanked the USNCB staff on behalf of the victims’ families for their support of the joint investigation, reinforcing the value of international police cooperation and coordination between INTERPOL member countries.

There is also a separate investigation into the disappearance and suspected murder of Boston’s wife in 1968.  Boston’s next court appearance is scheduled for January 10, 2017. To read the full indictment, click here:  https://www.justice.gov/usao-edca/pr/former-sacramento-resident-charged-murdering-british-couple-1978

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

Deputy Attorney General Sally Q. Yates released the following statement after President Obama granted commutation of sentence to 153 individuals:

“Today, another 153 individuals were granted commutations by the President.  Over the last eight years, President Obama has given a second chance to over 1,100 inmates who have paid their debt to society.  Our work is ongoing and we look forward to additional announcements from the President before the end of his term.”

BAKERSFIELD, Calif. – Después del quinto día de juicio, un jurado de Fresno declaró a Justin Cole Whittington, de 25 años y residente de Bakersfield, culpable de crímenes del odio federales por disparar con una escopeta mientras gritaba insultos raciales a un hombre latino, anunciaron la Procuradora General Auxiliar Adjunto Principal Vanita Gupta, directora de la División de Derechos Civiles del Departamento de Justicia y el Procurador Federal Phillip A. Talbert.      

Whittington fue condenado hoy por interferir con los derechos de vivienda de una persona por motivos de raza, color de su piel u origen nacional mientras empleaba la fuerza o la amenaza de fuerza, por el uso de un arma de fuego durante un crimen de violencia y por hacer una declaración falsa a un agente especial del FBI. Whittington se había declarado culpable anteriormente por la posesión ilícita de armas de fuego prohibidas en conexión al mismo crimen.

Según documentos del tribunal, el 19 de diciembre de 2012, la víctima, un hombre latino, estaba en el jardín delantero de su casa acompañado por su esposa e hijo cuando un PT Cruiser de color oscuro pasó lentamente y se detuvo por delante de la casa de su vecino. Al pensar que lo sucedido era inusual, la víctima prestó suma atención al coche. Whittington, a quien la víctima desconocía, salió por la puerta del asiento de pasajero del coche cargando una escopeta recortada. Whittington usó lenguaje profano y gritó un epíteto racial a la vez que disparaba una ronda hacia la víctima a unas 15 yardas de distancia además de gritar que la víctima debía mudarse fuera de Oildale. Whittington volvió a entrar al coche y se fue. Poco después, la escopeta volvió a ser disparada desde el PT Cruiser cerca de un pequeño comercio de barrio propiedad de un hombre de origen de oriente medio. La explosión dejó un gran boquete en la puerta de vidrio del comercio y huellas en forma de círculos de pintura desaparecida sobre la reja de metal situada delante del comercio.

Según las pruebas presentadas durante el juicio, la víctima fue capaz de describir a Whittington y el coche a los oficiales del Sheriff del Condado de Kern quienes fueron los que encontraron a Whittington en un lugar cercano y de pie fuera del PT Cruiser. Los oficiales recuperaron una escopeta recortada del maletero del coche Crown Victoria de Whittington que estaba estacionado cerca del PT Cruiser.   

Whittington también fue declarado culpable de haber hecho declaraciones falsas a un agente del FBI cuando falsamente alegó que en la noche del incidente, había sido pagado por alguien para guardar la escopeta recortada en el maletero de su coche.

Según documentos del tribunal y las pruebas presentadas durante el juicio, la víctima y su familia dejaron de sentirse seguros en su hogar y, tan pronto consiguieron los medios económicos para ello, se mudaron del barrio. 

“Whittington utilizó la violencia para aterrorizar a un hombre inocente y a su familia,” dijo la Procuradora General Auxiliar Adjunto Principal Gupta. “El daño que proviene de los crímenes del odio como este se extiende más allá de los individuos y amenaza a la seguridad, a la libertad y al bien estar de comunidades enteras. Ninguna condena puede reparar ese daño, pero este veredicto sí proporciona una medida de justicia para la víctima, su familia y su comunidad.”  

El Procurador Federal Talbert dijo, “El Distrito Este de California es una comunidad de distintas razas, etnias y contextos culturales. El demandado intentó golpear la diversidad que nos enriquece atacando cobardemente y sin provocación alguna a un hombre que estaba en su jardín con su familia. Los crímenes del odio como este tienen un profundo efecto no sólo sobre las víctimas, pero también sobre aquellas personas que forman parte en las comunidades de las víctimas, haciéndolos sentir vulnerables e inseguros. Nuestra oficina está comprometida a la investigación y al procesamiento de aquellos que violan los derechos civiles de otros, y el hacer cumplir las leyes en contra de los crímenes del odio seguirá siendo una de las misiones centrales de esta oficina.”

Este caso es el producto de una investigación de la Oficina Federal de Investigaciones (FBI) y de la Oficina del Sheriff del Condado de Kern. El Procurador Federal Auxiliar Brian K. Delaney está procesando el caso con la asistencia de la Abogada Litigante Samantha Trepel de la División de Derechos Civiles del Departamento de Justicia.

Whittington está programado para ser sentenciado por el Juez del Distrito Federal Dale A. Drozd en la fecha establecida. Whittington se enfrenta a una pena máxima establecida por la ley de cadena perpetua y a una multa de $250.000 dólares. La sentencia en sí, no obstante, será determinada a discreción del tribunal después de tener en consideración cualquier factor establecido por la ley aplicable y las Normas para Sentenciar Federales que contemplan un número de variables.

Two attorneys were charged today in a federal indictment for their roles in a multimillion-dollar scheme to fraudulently obtain settlement agreements from individuals who supposedly downloaded pornographic movies from file-sharing websites. 

Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division, U.S. Attorney Andrew M. Luger of the District of Minnesota, Chief Richard Weber of the Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division made the announcement.

Paul R. Hansmeier, 35, of St. Paul, Minnesota, and John L. Steele, 45, of Florida, were charged in an 18-count indictment today for conspiracy to commit wire fraud and mail fraud, substantive wire fraud and mail fraud, concealment money laundering and conspiracy to commit and suborn perjury.  Hansmeier was suspended from the practice of law in the state of Minnesota on Sept. 12, 2016. 

“Abusing one’s position as a licensed attorney and using the courts and legal process to file false and abusive copyright claims that threaten individuals and encourage fraudulent settlements is wrong and will not be tolerated,” said Assistant Attorney General Caldwell.  “The Department of Justice’s action today demonstrates that we will act to protect the integrity of judicial proceedings against attorneys and others who would seek to use them as a mechanism for their own illegal gains.”

“The defendants in this case are charged with devising a scheme that casts doubt on the integrity of our profession,” said U.S. Attorney Luger. “The conduct of these defendants was outrageous – they used deceptive lawsuits and unsuspecting judges to extort millions from vulnerable defendants.  Our courts are halls of justice where fairness and the rule of law triumph, and my office will use every available resource to stop corrupt lawyers from abusing our system of justice.”

“The charges announced today describe a fraud scheme perpetrated by lawyers and officers of the court who abused their positions of trust for personal enrichment,” said Special Agent in Charge Thornton.  “The FBI remains committed to uncovering fraud such as this to protect the integrity of our civil justice system.”

“The role of IRS Criminal Investigation becomes even more important in complex financial investigations involving money laundering because of the time it takes to unravel the criminal scheme,” said Chief Weber.  “This case is an excellent example of the lengths to which individuals will go to defraud others in whatever way they can.  We are committed to working these types of difficult financial investigations and following the criminal’s money, wherever it leads.”

According to the indictment, between 2011 and 2014, Hansmeier and Steele, both practicing lawyers, executed a scheme to fraudulently obtain approximately $6 million by threatening copyright lawsuits against individuals who supposedly downloaded pornographic movies from file-sharing websites.  Hansmeier and Steele allegedly created a series of sham entities to obtain copyrights to pornographic movies that they uploaded to file-sharing websites and filed bogus copyright infringement lawsuits in order to learn the subscriber information associated with the IP addresses used to download the pornographic movies.  The indictment further alleges the defendants used extortionate letters and phone calls to threaten victims with enormous financial penalties and public embarrassment unless they agreed to pay a $4,000 settlement fee.  To distance themselves from the specious lawsuits and any potential fallout, defendants created and used Prenda Law, among other firms, to pursue their claims.  

According to the charges, after various courts began to restrict the defendants’ ability to sue multiple individuals in the same copyright lawsuit, the defendants changed their tactics and began filing lawsuits falsely alleging that computer systems belonging to their sham clients had been hacked.  To facilitate their phony “hacking” lawsuits, Hansmeier and Steele allegedly recruited “ruse defendants,” who had been caught downloading pornography from a file-sharing website, to be sued in exchange for Hansmeier and Steele waiving their settlement fees while pursuing claims against their supposed “co-conspirators.”

As alleged in the indictment, as courts began to uncover the defendant’s unscrupulous litigation tactics, judges began denying the defendants’ requests to subpoena ISPs, dismissing lawsuits, accusing the defendants of deceptive and fraudulent behavior and imposing sanctions against the defendants and their associates.  For example, on May 6, 2013, the U.S. District Court for the Central District of California issued an order imposing sanctions against the defendants.  In total, the defendants obtained approximately $6 million from the fraudulent copyright lawsuits.

The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

FBI and IRS-CI are investigating the case.  Senior Trial Counsel Brian Levine of the Department of Justice’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Benjamin Langner of the District of Minnesota are prosecuting the case.

A leader of the Almighty Imperial Gangsters Nation pleaded guilty today to participating in a racketeering conspiracy involving murder, attempted murder, robbery, aggravated battery, aggravated assault and narcotics distribution.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Michael J. Anderson of the FBI’s Chicago Division and Special Agent in Charge George L. Piro of the FBI’s Miami Division made the announcement.

Rogelio Perez, aka Popeye, 44, of Chicago, pleaded guilty before U.S. District Judge Cecelia M. Altonaga of the Southern District of Florida to one count of conspiracy to conduct and participate in the affairs of the Almighty Imperial Gangsters Nation through a pattern of racketeering activity.  Sentencing is scheduled for Feb. 24, 2017.

According to admissions made in connection with his plea, the Almighty Imperial Gangsters Nation is a criminal organization whose members and associates engaged in acts of violence, including murder, attempted murder, aggravated battery, aggravated assault, narcotics distribution, and other criminal activities, and which operated in the Southern District of Florida, the Northern District of Illinois and the Northern District of Indiana, among other places.  Perez joined the Chicago-area chapter of the Almighty Imperial Gangsters Nation in approximately 1990 and rose to the level of “street leader” in approximately 2006, which he remained until his incarceration in June 2012.  While a “street leader,” Perez conducted meetings with Chicago-area Almighty Imperial Gangsters Nation and local gang leaders in an effort to strike alliances.  In November 2011 and February 2012, Perez admitted that he traveled to Miami to meet the South Florida-area chapter of the Almighty Imperial Gangsters Nation to facilitate the criminal activities of the gang.  On July 17, 2009, Perez also ordered members of the gang to retaliate against a rival gang in response to a shooting of an Almighty Imperial Gangster’s Nation.

In addition, Perez that admitted that he and other members of the Almighty Imperial Gangsters Nation earned money for members and financed the gang’s activities through trafficking in controlled substances, including cocaine, cocaine base, heroin, ecstasy and marijuana.  Perez and other members of the Almighty Imperial Gangster’s Nation would use firearms, threats and acts of violence to facilitate their drug trafficking. 

The FBI’s Miami and Chicago Field Offices investigated the case 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.  The U.S. Attorney’s Offices for 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; the State Attorney’s Offices in Cook and Du Page Counties in Illinois; and the Florida Department of Correction and the Broward County Sheriff’s Office assisted with this case.  Trial Attorneys Joseph A. Cooley, Rebecca A. Staton and Nicolas J. Regalia of the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office of the Southern District of Florida’s Forfeiture Section are prosecuting the case

Today, the Department of Justice provided an update on its longstanding efforts concerning the nationwide collection of data on law enforcement interactions with civilians, including data related to the use of force by law enforcement officers.  The update includes the submission of a report to Congress outlining its plan for collecting data mandated by the Death in Custody Reporting Act (DCRA), and the publication of a notice in the Federal Register on the details of the collection method going forward under the DCRA.  

“I am incredibly proud of the work that this department has done, in collaboration with our state, local, tribal and federal partners, to expand and improve data collection,” said Attorney General Lynch.  “This work is vital.  It will allow the nation to have a more informed and robust dialogue regarding use of force; it will improve transparency; and it will help to build stronger bonds of trust between law enforcement and the people we serve.  The Department of Justice will continue to work alongside our partners to build on these efforts and to create a nationwide data collection system that is useful and meaningful for law enforcement and communities alike.”

In 2014, Congress passed the DCRA, which requires states and federal law enforcement agencies to submit data to the department about civilians who died during interactions with law enforcement or in their custody, whether resulting from use or force or some other manner of death, such as suicide or natural causes, and authorized the Attorney General to penalize non-compliant states.  The DCRA is consistent with the recommendation of the President’s Task Force on 21st Century Policing that law enforcement “collect, maintain and report data . . .  on all officer involved shootings, whether fatal or nonfatal, as well as any in-custody death,” and the department is committed to heeding this call.  

The department is seeking comment on the Federal Register submission from all interested parties, including local, state, tribal and federal law enforcement, civil rights organizations and other community stakeholders.  After reviewing and addressing these comments, the department will issue a final proposal, and plans to begin the data collection program in 2017.  

The DCRA also requires federal law enforcement agencies to report information on deaths that occur during interactions with federal law enforcement agencies or in their custody, beginning with Fiscal Year 2016 (FY2016) data.  FY2016 ended Sept. 30, 2016.  On Oct. 5, 2016, the Attorney General issued a memorandum to federal law enforcement agencies formally notifying them of their reporting obligations under the DCRA.  The collection of the FY 2016 data has begun and will continue through March 2017.  In addition to the report submitted to Congress today, the department expects to issue a statistical report in 2017.

The department continues to implement other, longstanding, data collection programs.  The DCRA does not impose a reporting requirement for ¬non-lethal¬ uses of force by law enforcement.  In the absence of a statutory mandate, and in an effort to close this gap, the department is partnering with local, state, tribal and federal law enforcement to provide a means for national data collection.  In 2015, and in collaboration with local, state, tribal and federal law enforcement the FBI began work on a “National Use of Force Data Collection,” an online portal to collect use-of-force data from law enforcement agencies across the country.  In October 2016, the FBI announced the proposed pilot program in the Federal Register, and it has received comments from interested parties.  After addressing those comments, the FBI will issue a final proposal and plans to begin the pilot data collection program in early 2017.  The pilot study participants are expected to include the largest state and local law enforcement agencies, as well as the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and U.S. Marshals Service.  

The department also is pursuing the Police Data Initiative (PDI), which is a data transparency project led by the department’s Community Oriented Policing Services (COPS) Office.  PDI encourages participating law enforcement agencies to collect and publicly release various datasets.  The initiative now includes 130 law enforcement agencies that serve more than 44 million people across the country.  As part of the Initiative, the COPS office is working on the development of two open data guidebooks.  The first will be a primer on open data for law enforcement executives and municipal officials and will be released in the summer of 2017.  The second guidebook will provide a more in-depth analysis on effectively producing, releasing and using open data and is scheduled to be released in the summer of 2018.    

In addition to these efforts, the department continues to collect and analyze data in other ways.  This week, the Bureau of Justice Statistics issued three reports:  1) Mortality in Local Jails, 2000-2014 -Statistical Tables, 2) Mortality in State Prisons, 2001-2014 - Statistical Tables, and 3) Arrest-Related Deaths Program Redesign Study, 2015–16: Preliminary Findings. These reports are available at www.bjs.gov. 

Separately, the FBI released the 2015 National Incident-Based Reporting System (NIBRS) report this week.  NIBRS, which will completely replace the traditional Summary Reporting System by Jan. 1, 2021, will provide a more robust and complete data set that will provide greater insight into crime reports throughout the country.   
 
These initiatives demonstrate once again the department’s deep commitment to the ideals of the President’s Task Force.  The department will continue to work with local, state, tribal and federal agencies to encourage and support data collection and transparency beyond these projects.           

A federal jury yesterday convicted four real estate investors for their roles in a conspiracy to rig bids at public real estate foreclosure auctions held in Alameda County, California, the Department of Justice announced.  

After a two-week trial, the jury convicted Alvin Florida Jr., Robert Alhashash Rasheed, John Lee Berry III and Refugio Diaz of one count each of conspiring to rig bids at foreclosure auctions between May 2008 and December 2010.  The four defendants were charged in an indictment returned by a federal grand jury in the Northern District of California on November 19, 2014.  

The evidence at trial showed that the defendants conspired with others to rig bids to obtain hundreds of properties sold at foreclosure auctions in Alameda County.  The conspirators designated the winning bidders to obtain selected properties at the public auctions, and negotiated payoffs amongst themselves in return for not competing.  They then held second, private auctions at or near the courthouse steps where the public auctions were held, awarding the properties to conspirators who submitted the highest bids.  

In addition to yesterday’s convictions, over fifty individuals have pleaded guilty to criminal charges as a result of the department’s ongoing antitrust investigations into bid rigging at public foreclosure auctions in Northern California.  Indictments are pending against several other real estate investors who participated in the conspiracy.

These convictions are the latest charges filed by the department in its ongoing investigation into bid rigging at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa and Alameda counties, California.  These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office, in connection with the president’s Financial Fraud Enforcement Task Force. 

The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. 

For more information about the task force, please visit www.StopFraud.gov.  Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300 or call the FBI tip line at 415-553-7400.

A member of the Aryan Brotherhood of Mississippi (ABM) gang was sentenced to life in prison for his participation in a variety of violent criminal acts, including racketeering conspiracy, murder, kidnapping, conspiracy to possess methamphetamine with intent to distribute and other related offenses.  

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Felicia C. Adams of the Northern District of Mississippi, Special Agent in Charge Stephen G. Azzam of the Drug Enforcement Administration’s (DEA) New Orleans Field Office, Special Agent in Charge Constance Hester of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New Orleans Field Office, Special Agent in Charge Christopher Freeze of the FBI in Mississippi and Director John Dowdy of the Mississippi Bureau of Narcotics (MBN) made the announcement.

“Even among criminal organizations, the ABM stands out for its violent and repulsive crimes,” said Assistant Attorney General Caldwell.  “That is why we will continue to identify, apprehend and prosecute ABM members across the country until the communities that have been living in fear are free from ABM’s grasp.”

“This prosecution is the result of an unprecedented collaboration between the Department of Justice, federal, state and local law enforcement officers targeting a large-scale prison gang involved in violent organized crime throughout the state of Mississippi,” said U.S. Attorney Adams.  “As a result of this collaborative effort, we have effectively dismantled this violent organization and sent a clear message that the United States Attorney’s Office and our law enforcement partners have an unwavering commitment to hold those individuals accountable who insist on creating an atmosphere of violence and fear in our communities.”

“The sentencing of this gang member is an example of DEA’s relentless pursuit to target organizations that plague and pollute our communities.  Because drug trafficking and gang violence isn’t confined to one jurisdiction or community, it is important that law enforcement continues to work together to improve the quality of life for the citizens were serve in our communities and neighborhoods,”  said Special Agent in Charge Azzam.  “DEAs continued pledge to the people of Mississippi is to continue to work with all our law enforcement partners, to pursue these violent thugs, criminals and drug traffickers.”

“Violence takes a toll on our family and community.  The substantial sentence imposed today drives a strong message to violent gang organizations that they will be held accountable for their actions,” said Special Agent in Charge Hester.  “ATF is committed to providing every available resource to combat violent crime and illegal firearm activity.  We will continue to collaborate with all of our federal, state and local law enforcement partners in identifying, disrupting and dismantling the violent gangs that prey on our communities.”

 “Dismantling organized crime organizations is essential to our society,” said Special Agent in Charge Freeze.  “Violent groups such as the Aryan Brotherhood are an anathema on our society and negatively affect the daily lives of all law abiding citizens.  The FBI and our law enforcement partners are dedicated to disrupting and deterring the most significant gangs throughout Mississippi and enhancing the lives of all Mississippians.”

“It is a privilege for the Mississippi Bureau of Narcotics to partner with all of these law enforcement agencies to make Mississippi a safer place,” said Director Dowdy.  “The sentence handed down today insures that this defendant can no longer be a menace to public safety.”

Eric Glenn Parker, 36, of Forrest County, Mississippi, a member of ABM, was sentenced on Dec. 16, 2016 to serve life in prison by U.S. District Judge Glen H. Davidson of the Northern District of Mississippi.  On April 13, 2016, Parker was found guilty by a federal jury of engaging in a racketeering conspiracy, murder and methamphetamine distribution. 

The ABM is the Mississippi-centered branch of the Aryan Brotherhood, a violent, “whites only,” prison-based gang with members and associates operating inside and outside of state penal institutions.  The ABM is engaged in racketeering activities, including murder, attempted murder, kidnapping, assault, money laundering, firearms trafficking and trafficking in marijuana and methamphetamine, both inside and outside correctional facilities.  According to trial evidence, Parker and three co-defendants served at varying times on the ABM’s three-member “wheel” that oversaw and directed ABM activity throughout Mississippi during the conspiracy.

According to evidence presented at trial, ABM leaders ordered other gang members to lure an individual to an ABM house so that they could murder him for an unpaid drug debt.  ABM gang members kidnapped the victim, beat him severely, and delivered him to Parker. Parker, along with Frank George Owens Jr., his co-defendant at trial, beat the victim to death and delivered the body to a co-defendant, who burned the victim’s body for days in order to incinerate it.  In addition, Parker dealt methamphetamine on behalf of the ABM, which garnered him a leadership position in the gang.

Today’s sentencing marks the culmination of a 2.5-year investigation into and prosecution of the ABM, which resulted in the conviction of 42 members and associates of the gang.  Owens, 44, of D’Iberville, Mississippi, was convicted along with Parker of engaging in a racketeering conspiracy, murder and conspiracy to possess with intent to distribute at least 500 grams of methamphetamine.  On Nov. 2, 2016, Owens was sentenced to life in prison and 120 months for attempted murder. 

The DEA, ATF, FBI and MBN investigated the case.  The U.S. Marshals Service; Federal Protective Service; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Mississippi Highway Patrol; Mississippi Bureau of Investigation; Mississippi Department of Corrections; Harrison County, Mississippi, Sheriff’s Office; South Mississippi Metro Enforcement Team; Tupelo, Mississippi, Police Department; North Mississippi Narcotics Unit; Tishomingo County, Mississippi, Sheriff’s Office; Lee County, Mississippi, Sheriff’s Office; Forrest County, Mississippi, District Attorney’s Office; Prentiss County, Mississippi, Sheriff’s Office; Jones County, Mississippi, Sheriff’s Office; Harrison County, Mississippi, Sheriff’s Office; and South Mississippi Metro Enforcement Team provided valuable assistance in the investigation.  The Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Offices of the Northern and Southern Districts of Mississippi prosecuted the case.

Grand Jury Has Now Indicted Total of Nine Individuals in Long-Running Conspiracy

A federal grand jury returned a second superseding indictment today charging three more executives from two different companies for conspiring to fix prices of electrolytic capacitors sold to customers in the United States and elsewhere, the Department of Justice announced today.  This indictment supersedes a previous superseding indictment returned on Nov. 2, 2016, in which six individuals from four different companies were charged with price fixing.

The indictment, filed in the U.S. District Court of the Northern District of California in San Francisco, charges the following individuals for conspiring to suppress and eliminate competition by fixing the prices of electrolytic capacitors:

•    Takeshi Matsuzaka, an executive of Company A, who is charged with conspiring from approximately January 2003 until January 2014;

•    Kaname Takahashi, also an executive of Company A, who is charged with conspiring from approximately July 2003 until April 2013; and

•    Takuo Tatai, an executive of Company D, who is charged with conspiring from approximately January 2009 until January 2012.

“The executives charged today fixed the prices of an electronic component relied upon by American consumers to power devices that are central to our day-to-day life,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division.  “The Antitrust Division will continue to pursue executives and companies who conspire to cheat consumers.”

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

Today’s charges are the result of an ongoing federal antitrust investigation into anticompetitive conduct in the electrolytic capacitor industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI.   A total of five companies and nine individuals have been charged in the division’s ongoing investigation.

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

The charges today result from an ongoing federal antitrust investigation being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Field Office into price fixing, bid rigging and other anticompetitive conduct in the capacitors industry.  Anyone with information related to anticompetitive conduct in the capacitors industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI tip line at 415-553-7400.

The Departments of Justice and the Interior joined with the Commonwealth of Virginia today to announce a proposed settlement with DuPont valued at approximately $50 million to resolve claims stemming from the release of mercury from the former E.I. du Pont de Nemours and Company (DuPont) facility in Waynesboro, Virginia.  Over 100 miles of river and associated floodplain have been contaminated by mercury in the South River and South Fork Shenandoah River watershed.

In addition to a cash payment of just over $42 million, DuPont will fund the design and implementation of significant renovations at the Front Royal Fish Hatchery, estimated to cost up to $10 million.  The settlement terms are outlined in a proposed consent decree filed in federal court in Harrisonburg, Virginia, today.

DuPont will provide the funds to government natural resource trustees, who will oversee the implementation of projects compensating the public for the natural resource injuries and associated losses in ecological and recreational services, such as fishing access.

The trustees, through U.S. Fish and Wildlife Service and Commonwealth of Virginia, invite feedback on actions to restore the river and wildlife habitat and improve public lands and recreational resources.  A draft restoration plan and environmental assessment (RP/EA) was also released today for a 45-day public comment period.  The plan results from stakeholder meetings beginning in 2008 to determine how best to compensate the public for the injured natural resources and their uses.

“This remarkable settlement will help restore the precious natural resources of the South Fork Shenandoah watershed, bringing lasting benefits for future generations of Virginians to enjoy,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “This joint action with the Department of the Interior and the Commonwealth of Virginia is yet another testament to the value and effectiveness of cooperative federalism in action and I am grateful to all of our partners for the efforts that brought us to this resolution.”

“Today’s settlement, the largest of its kind in Virginia history, is the culmination of a coordinated effort by countless partners at both the state and federal level,” said Governor Terry McAuliffe.  “Thanks to their hard work, Virginians and the environment will benefit from unprecedented investments in land conservation and habitat restoration. I applaud and appreciate the meticulous monitoring by our state agencies, the thorough analysis of the scientific advisory committee, and DuPont’s willingness to come to the table and make this happen.”

Since 2005, DuPont and the trustees have worked cooperatively to assess and identify potential restoration projects to benefit natural resources affected by mercury releases from the DuPont facility.  Over 100 miles of river and thousands of acres of floodplain and riparian habitat were impacted from the mercury.  Some of the assessed and impacted natural resources include fish, migratory songbirds, reptiles, amphibians and mammals.  Recreational fishing opportunities were also impacted from the mercury.

“Years of input from community leaders, and partnership with the Commonwealth of Virginia, have led us to propose over $50 million worth of restoration that will be at no cost to taxpayers,” said Northeast Regional Director Wendi Weber of the U.S. Fish and Wildlife Service.  “Fish, wildlife, land and waters, as well as the city of Waynesboro and other communities affected by decades of mercury release, will benefit from natural resource projects improving water and stream quality, protecting and restoring wildlife habitat and increasing river access for recreation.”

“Clean air, water and land are environmental priorities and economic assets that make Virginia a great place to live, work and raise a family,” said Attorney General Mark Herring of the Commonwealth of Virginia.  “We have an obligation to protect these assets for future generations and this record-setting settlement shows that we take our responsibilities seriously.  This settlement will allow us to protect and enhance lands throughout the Shenandoah Valley and improve the quality of water for wildlife, anglers, paddlers and others who use these waterways for recreation.  I really appreciate the hard work that my team, Governor Terry McAuliffe, Secretary Molly Ward, DEQ and our federal partners put into making this historic settlement a reality.”

Mercury released into the South River from the DuPont facility in the 1930s and 1940s continues to persist in the environment. Monitoring data collected over the last 20 years indicates that mercury levels remain stable, with no clear decreases over time.  Federal law seeks to make the environment and public whole for injuries to natural resources and ecological and recreational services resulting from a release of hazardous substances to the environment.

The trustees evaluated a range of restoration alternatives and have ultimately proposed a preferred restoration alternative that includes projects that best meet the requirement that restoration efforts specifically focus on the injured resources.  Proposed projects include:

• land protection, property acquisition, improvements to recreational opportunities and wildlife habitat restoration
• improvements to water quality and fish habitat through activities such as streamside plantings and erosion control, as well as stormwater pond improvements
• mussel propagation and restoration to improve water quality, stabilize sediment and enhance stream bottom structure
• Front Royal Fish Hatchery renovations to improve production of warm-water fish such as smallmouth bass
• recreational fishing access creation or improvement
• migratory songbird habitat restoration and protection

The draft RP/EA outlines these proposed projects, as well as other restoration alternatives and an evaluation of injuries to the natural resources. It is available online, along with other information on the process, at www.fws.gov/northeast/virginiafield/news/news.html.

The trustees will host a public meeting to summarize key components of the draft restoration plan and answer questions.  The public meeting will be held on Jan. 10, 2017, at the Waynesboro Public Library lower level meeting room from 6:00 PM to 8:30 PM.  The library is located at 600 S. Wayne Avenue, Waynesboro, Virginia, 22980.  Following the comment period, the trustees will review and consider comments and prepare the final RP/EA.  Ultimately, the trustees will work with project partners such as local, state, and federal agencies; nonprofit organizations; and landowners to implement the projects.

Today’s settlement, lodged with the U.S. District Court for the Western District of Virginia, is subject to a 45-day public comment period to begin following notification in the Federal Register.  The settlement is subject to final approval by the court.  To view the consent decree, visit the department’s website: www.justice.gov/enrd/consent-decrees.

A 33-year-old woman was arrested yesterday in Boca Raton, Florida, following her eight-count indictment by a grand jury in the Western District of North Carolina, the Department of Justice announced. 

Shashana Stacyann Smith, a Jamaican citizen residing in Florida, was charged with conspiracy to commit mail and wire fraud and seven counts of wire fraud in connection with a fraudulent lottery scheme based in Jamaica. Smith’s initial court appearance is today at 10:00 a.m. EST in U.S. District Court in the Southern District of Florida.

As alleged in the indictment, Smith participated in a conspiracy to defraud Americans and induce them to send thousands of dollars to Smith and others in the United States and Jamaica.  Victims were contacted and falsely informed that they had won a lottery.  They were instructed to send money for so-called fees in order to receive their prize, and were contacted repeatedly with additional requests to pay money.  Victims never received any lottery winnings.

“International schemes with phony promises of large lottery winnings continue to target unsuspecting Americans,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “These international lottery schemes frequently use co-conspirators in this country to perpetuate the fraud.  The Department of Justice will continue to prosecute those who participate in these international based schemes.”

Beginning in late 2015, Smith is alleged to have joined a conspiracy to commit mail and wire fraud, and to have committed wire fraud in furtherance of the conspiracy.  According to the indictment, Smith received victims’ money in the United States, kept a percentage of the money for her own benefit, and sent the rest of the victims’ money to recipients in Jamaica and the United States.  The indictment further alleges that Smith transported thousands of dollars in cash to Jamaica on multiple occasions, and gave the cash to a co-conspirator there.  If convicted of conspiracy, Smith faces a statutory maximum term of 20 years in prison, a possible fine, and mandatory restitution.  If convicted of wire fraud, she faces a statutory maximum term of 20 years in prison on each count.

“The Postal Inspection Service is dedicated to protecting Americans from fraudsters, whether they are committing the fraud from within the United States or abroad,” said Inspector in Charge David W. Bosch of the U.S. Postal Inspection Service’s Philadelphia, Pennsylvania Division.  “We will continue to work with the Department of Justice to fight these lottery schemes, educate the public, and bring the offenders to justice.” 

This indictment is part of the Department of Justice’s effort working with federal and other law enforcement to combat fraudulent lottery schemes in Jamaica preying on American citizens.  According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.

Principal Deputy Assistant Attorney General Mizer commended the investigative efforts of the Postal Inspection Service.  The case is being prosecuted by Trial Attorney Raquel Toledo of the Civil Division’s Consumer Protection Branch.

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

For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.  For more information about the U.S. Attorney’s Office for the Western District of North Carolina, visit its website at https://www.justice.gov/usao-wdnc.

The Department of Justice obtained more than $4.7 billion in settlements and judgments from civil cases involving fraud and false claims against the government in fiscal year 2016 ending Sept. 30, Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, announced today.  This is the third highest annual recovery in False Claims Act history, bringing the fiscal year average to nearly $4 billion since fiscal year 2009, and the total recovery during that period to $31.3 billion.

“Congress amended the False Claims Act 30 years ago to give the government a more effective tool against false and fraudulent claims against federal programs,” said Mizer.  “An astonishing 60 percent of those recoveries were obtained in the last eight years.  The beneficiaries of these efforts include veterans, the elderly, and low-income families who are insured by federal health care programs; families and students who are able to afford homes and go to college thanks to federally insured loans; and all of us who are protected by the government’s investment in national security and defense.  In short, Americans across the country are healthier, enjoy a better quality of life, and are safer because of our continuing success in protecting taxpayer funds from misuse.”

Of the $4.7 billion recovered, $2.5 billion came from the health care industry, including drug companies, medical device companies, hospitals, nursing homes, laboratories, and physicians.  The $2.5 billion recovered in fiscal year 2016 reflects only federal losses.  In many of these cases, the Department was instrumental in recovering additional millions of dollars for state Medicaid programs.  This is the seventh consecutive year the Department’s civil health care fraud recoveries have exceeded $2 billion. 

The next largest recoveries came from the financial industry in the wake of the housing and mortgage fraud crisis.  Settlements and judgments in cases alleging false claims in connection with federally insured residential mortgages totaled nearly $1.7 billion in fiscal year 2016 – the second highest annual recovery in this area.  

The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government programs and contracts relating to such varied areas as health care, defense and national security, food safety and inspection, federally insured loans and mortgages, highway funds, small business contracts, agricultural subsidies, disaster assistance, and import tariffs.  In 1986, Congress strengthened the Act by amending it to increase incentives for whistleblowers to file lawsuits alleging false claims on behalf of the government.

Most false claims actions are filed under those whistleblower, or qui tam, provisions.  If the government prevails in the action, the whistleblower, also known as the relator, receives up to 30 percent of the recovery.  Whistleblowers filed 702 qui tam suits in fiscal year 2016, and the Department recovered $2.9 billion in these and earlier filed suits this past year.  The government awarded the whistleblowers $519 million during the same period. 

Health Care Fraud

The Department recovered $19.3 billion in health care fraud claims from January 2009 to the end of fiscal year 2016 – 57 percent of the health care fraud dollars recovered in the 30 years since the 1986 amendments to the False Claims Act.  These recoveries restore valuable assets to federally funded programs such as Medicare, Medicaid, and TRICARE, the health care program for service members and their families.  But just as important, the Department’s vigorous pursuit of health care fraud prevents billions more in losses by deterring others who might otherwise try to cheat the system for their own gain.  The Department’s success is a direct result of the high priority the Obama Administration has placed on fighting health care fraud.  In 2009, the Attorney General and the Secretary of the Department of Health and Human Services, the Department that administers Medicare and Medicaid, announced the creation of an interagency task force called the Health Care Fraud Prevention and Enforcement Action Team (HEAT), to increase coordination and optimize criminal and civil enforcement.  Additional information on the government’s efforts in this area is available at StopMedicareFraud.gov, a webpage jointly established by the Departments of Justice and Health and Human Services.

The largest recoveries this past year – $1.2 billion – came from the drug and medical device industry.  Drug manufacturers Wyeth and Pfizer Inc. paid $784.6 million to resolve federal and state claims that Wyeth knowingly reported false and fraudulent prices on two drugs used to treat acid reflux, Protonix Oral and Protonix IV.  The government alleged that Wyeth (before it was acquired by Pfizer) failed to report deep discounts available to hospitals, as required by the government to ensure that the Medicaid program enjoyed the same pricing benefits available to the company’s commercial customers.  Wyeth paid $413.2 million to the federal government and $371.4 million to state Medicaid programs.

In another settlement against a drug company, Novartis Pharmaceuticals Corp. paid $390 million based on claims that the company gave kickbacks to specialty pharmacies in return for recommending Exjade, an iron chelation drug, and Myfortic, an anti-rejection drug for kidney transplant recipients.  The settlement includes $306.9 million for the federal government and $83.1 million for state Medicaid programs.

Hospitals and outpatient clinics accounted for $360 million in recoveries.  Tenet Healthcare Corp., a major hospital chain in the United States, paid $244.2 million to resolve civil allegations that four of its hospitals engaged in a scheme to defraud the United States by paying kickbacks in return for patient referrals.  Tenet paid an additional $123.7 million to state Medicaid programs, and two of its subsidiaries pleaded guilty to related charges and forfeited $145 million, bringing the total resolution to $513 million.          

In the medical lab arena, Millennium Health (formerly Millennium Laboratories) paid $260 million to settle allegations that it billed Medicare, Medicaid, and other federal health care programs for excessive and unnecessary urine drug and genetic testing and also that it gave free items to induce physicians to refer expensive and profitable lab tests to Millennium, in violation of the Anti-Kickback Statute and Stark Law.  The settlement included $214.8 million in alleged false claims against federal programs, $26 million in alleged false claims against state Medicaid programs, and $19.2 million in related administrative claims.

The nation’s largest contract therapy provider paid $125 million to resolve claims that it had induced skilled nursing homes to submit false claims to Medicare for rehabilitation services that were not reasonable, necessary, and skilled, or that weren’t provided at all.  The settlement was with RehabCare Group Inc., RehabCare Group East Inc., and their parent, Kindred Healthcare Inc.  Cases involving nursing homes and skilled nursing facilities accounted for more than $160 million in settlements and judgments this past fiscal year.

“These health care recoveries benefit vulnerable citizens in Medicare and Medicaid and the taxpayers who pay for those programs,” said Inspector General Daniel R. Levinson of the U.S. Department of Health and Human Services.  “Beyond those significant settlements, though, my agency works to improve voluntary observance of federal laws through corporate integrity agreements addressing compliance weaknesses, and self-disclosures that encourage health care providers and other entities to voluntarily report suspected violations.”

Housing and Mortgage Fraud

The Department recovered more than $7 billion in housing and mortgage claims from January 2009 to the end of fiscal year 2016, including settlements and judgments totaling $1.6 billion this past fiscal year – the second highest annual recovery in the history of the federally insured mortgage program.  Notable this year were settlements with Wells Fargo for $1.2 billion and Freedom Mortgage Corp. for $113 million.

Wells Fargo and Freedom Mortgage both admitted that they had originated and endorsed residential mortgages as eligible for federal insurance by the Federal Housing Administration (FHA) that did not meet requirements intended to reduce the risk of default.  This put consumers at risk of losing their homes in foreclosure and increased the number of claims against the FHA when their loans went into default.  The banks also admitted failing to report such deficiencies to the authorities as required under the program, despite internal reports exposing high rates of underwriting deficiencies that would have put the agency on notice so it could prevent continued program violations and mounting losses.  By originating and endorsing ineligible loans for FHA insurance, the banks increased their mortgage profits at taxpayer expense while incurring little or no risk of their own. 

As part of the Wells Fargo settlement, the bank’s vice president of Credit Risk – Quality Assurance, Kurt Lofrano, admitted that he annually certified Wells Fargo’s compliance with FHA’s Direct Endorsement Lender program and the bank’s continued qualification to remain in the program. 

These recoveries are part of the broader enforcement efforts by President Obama’s Financial Fraud Enforcement Task Force.  President Obama established the interagency task force in 2009, to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.  For more information about the task force, visit www.stopfraud.gov. 

Other Fraud Recoveries

Although health care and mortgage fraud dominated fiscal year 2016 recoveries, the Department has aggressively pursued fraud wherever it is found in federal programs and contracts.  For example, the Department recovered $82.6 million in false claims from BP Exploration and Production Inc. (BP) arising from the April 2010 Deepwater Horizon/Macondo Well explosion and oil spill in the Gulf of Mexico.  The government, through the Department of the Interior, leases portions of the Outer Continental Shelf to companies like BP that operate exploratory oil wells.  In exchange for the lease, the operators pay royalties based on the volume of oil extracted from the wells.  Program regulations applicable to exploration of the Outer Continental Shelf require well operators to maintain a “safe drilling margin” and to report plans to drill further into an open hole if the margin falls below legal limits.  The government alleged that BP provided false reports about its “safe drilling margin” that concealed its improper drilling, which left the well in a fragile state and ultimately resulted in the blowout.  The government’s civil fraud claims were part of a $20 billion consent decree reached with the United States and five Gulf states that also included damages and penalties under state and federal environmental laws, mandatory restoration of the area, and other relief.  

The government also continued to pursue a variety of procurement fraud matters.  For example, L-3 Communications EOTech Inc. and its parent company, L-3 Communications Corp., paid the United States $25.6 million for defective holographic weapon sites EOTech sold to the Department of Defense, Department of Homeland Security, and FBI.  The defendants, including EOTech’s president, admitted knowing the sights failed to perform as represented in cold temperatures and humid environments, but delayed disclosing the defects to federal authorities for years.  Besides compensating the government for critical funds lost through fraud, such settlements ensure that the vital terms of contracts supporting the nation’s defense and security agencies are enforced, and deter other contractors from acting fraudulently or recklessly to increase their profits in the future. 

The Department had several settlements with for-profit schools that allegedly participated in illegal schemes to secure federal education funds.  For example, the second largest for-profit education company in the country, Education Management Corp., paid the United States $52.6 million to resolve allegations that it unlawfully recruited students, engaged in deceptive and misleading recruiting practices, and falsely certified compliance with Title IV of the Higher Education Act and parallel state laws that prohibited such conduct, as part of a $95.5 million global federal-state settlement.

The Department also recovered $50 million in customs fraud.  U.S. Customs and Border Protection collects duties on imports of foreign goods to protect U.S. manufacturers from unfair competition abroad by leveling the playing field for domestic products.  Importers who seek an unfair advantage by knowingly evading or reducing their obligation to pay these duties are subject to damages and penalties under the False Claims Act.  These recoveries both address lost duties and safeguard U.S. markets.

These suits and settlements illustrate the diversity of cases pursued by the Department and the Department’s quest to root out fraud and false claims against the government wherever it may be found.

Holding Individuals Accountable    

On Sept. 9, 2015, the Department issued a memorandum on individual accountability for corporate wrongdoing.  This memorandum reinforced the Department’s commitment to use the False Claims Act and other civil remedies to deter and redress fraud by individuals as well as corporations. 

Cardiologist Dr. Asad Qamar and his practice, the Institute of Cardiovascular Excellence (ICE), paid $2 million this past fiscal year, and released claims to an additional $5.3 million in suspended Medicare funds, to settle allegations that he and his practice billed Medicare, Medicaid, and TRICARE for medically unnecessary procedures and paid kickbacks to patients by waiving Medicare copayments irrespective of financial hardship.  Medicare copayments provide beneficiaries with an incentive to be smart health care consumers and avoid unnecessary procedures.  The government alleged that by waiving the required copayments indiscriminately, Dr. Qamar and ICE induced patients to undergo unnecessary and invasive procedures.  This conduct made Dr. Qamar the highest paid Medicare cardiologist in the United States in 2012 and 2013.  Dr. Qamar also agreed to a three-year exclusion from participating in any federal health care program followed by a three-year integrity agreement with the Department of Health and Human Services Office of the Inspector General. 

Additional examples of individuals held personally liable for alleged false claims include George Hepburn ($10.3 million), founder and president of Dynasplint Systems Inc.; Dr. Jonathan Oppenheimer ($9.35 million), former owner and chief executive officer of a Nashville drug testing laboratory; Gottfried and Mieke Kellermann ($8.5 million), founders of Pharmasan Labs Inc. and NeuroScience Inc.; Jacob (Jake) J. Kilgore ($4 million), former co-owner, vice president, and later president of Orbit Medical Inc.; Dr. David G. Bostwick ($3.75 million), founder and former owner and chief executive officer of Bostwick Laboratories Inc.; Mark T. Conklin ($1.75 million), former owner, operator, and sole shareholder of Recovery Home Care Inc. and Recovery Home Care Services Inc.; Dr. David Spellberg ($1.05 million) and Robert A. Scappa, D.O. ($250,000), urologists with 21st Century Oncology LLC; and Ralph J. Cox III ($1 million), former chief executive officer of Tuomey Healthcare System.  

Recoveries in Whistleblower Suits

Of the $4.7 billion the government recovered in fiscal year 2016, $2.9 billion related to lawsuits filed under the qui tam provisions of the False Claims Act.  During the same period, the government paid out $519 million to the individuals who exposed fraud and false claims by filing a qui tam complaint. 

The number of lawsuits filed under the qui tam provisions of the Act has grown significantly since 1986, with 702 qui tam suits filed this past year – an average of 13.5 new cases every week.  The growing number of qui tam lawsuits, particularly since 2009, has led to increased recoveries.  From January 2009 to the end of fiscal year 2016, the government recovered nearly $24 billion in settlements and judgments related to qui tam suits and paid more than $4 billion in whistleblower awards during the same period.

“The qui tam provisions provide a valuable incentive to industry insiders who are uniquely positioned to expose fraud and false claims to come forward despite the risk to their careers,” said Principal Deputy Assistant Attorney General Mizer.  “This takes courage, for which they are justly rewarded under the Act.”   

In 1986, Senator Charles Grassley and Representative Howard Berman led the successful efforts in Congress to amend the False Claims Act to, among other things, encourage whistleblowers to come forward with allegations of fraud.  In 2009, Senator Patrick J. Leahy, along with Senator Grassley and Representative Berman, championed the Fraud Enforcement and Recovery Act of 2009, which made additional improvements to the False Claims Act and its whistleblower provisions.  And in 2010, the passage of the Affordable Care Act provided additional inducements and protections for whistleblowers.

Mizer also expressed his deep appreciation for the many dedicated public servants who investigated and pursued these cases – the attorneys, investigators, auditors, and other agency personnel throughout the Department’s Civil Division and the U.S. Attorneys’ Offices, as well as the agency Offices of Inspector General, and the many federal and state agencies that contributed to the Department’s recoveries this past fiscal year. 

“The Department’s lawyers and staff, together with our law enforcement partners in federal and state governments, work tirelessly and often overcome daunting challenges,” said Mizer. “Their efforts continue to pay for themselves many times over, providing substantial benefits to the taxpayers.”

The government’s claims in the matters described above are allegations only; except where indicated, there has been no determination of liability.  The numbers contained in this press release may differ slightly from the original press releases due to accrued interest. 

The Justice Department announced today that it has entered into a comprehensive agreement with the St. Louis County Family Court to resolve the department’s findings of serious and systemic violations of juvenile due process and equal protection rights. 

The agreement aims to ensure that the family court protects the constitutional rights of children throughout their court proceedings and requires the family court to address racial disparities among youth in different stages of the juvenile justice process.  This is the fourth agreement the department has entered into under the Violent Crime Control and Law Enforcement Act of 1994 to address constitutional violations within a juvenile justice system. 

“The harms and inequities in our juvenile justice system threaten to limit the opportunities and derail the futures of America’s youth,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “We applaud the St. Louis County Family Court for taking these important steps to begin implementing critical reforms.  We hope that juvenile courts around the country review this agreement and use it as a model to protect the constitutional rights of all children.”

The agreement provides for comprehensive reforms aimed at remedying the due process and equal protection violations the department found during its investigation, including:

• Court-Appointed Counsel: The agreement requires the court to double the juvenile defense counsel currently available to represent indigent youth and to ensure that defense counsel are timely appointed to all juveniles.  The agreement also requires that the court appoint private attorneys in a uniform and transparent fashion and that all juvenile defenders practicing in the court receive training.
• Privilege Against Self-Incrimination: The agreement prohibits police interrogations at the juvenile detention center unless an attorney is present to represent the youth and requires the court to ensure that juveniles understand their rights before waiving them.  The agreement prohibits deputy juvenile officers – the court staff responsible for virtually every aspect of family court operations – from discussing with the young person the substance of the allegations and/or using incriminating statements made by the youth in subsequent delinquency proceedings.
• Adversarial Probable Cause Hearings: The agreement requires that during detention hearings the court examine whether there is probable cause to believe that the youth has committed the alleged offense and permits the youth to challenge the evidence admitted to support probable cause.
• Standardized Plea Hearings: The court will adopt a standardized format for hearings to accept juveniles’ pleas to delinquency charges to ensure that pleas are knowing and voluntary.
• Deputy Juvenile Officer Training: Deputy juvenile officers must receive competency-based training that addresses the role and responsibilities of juvenile defense counsel in delinquency proceedings as well as the due process rights of youth.  This includes the youth’s right to counsel, privilege against self-incrimination and the potential consequences (including collateral consequences) for a youth who is found to be delinquent.
• Collection, Analysis and Response to Court Data Regarding Disproportionate Minority Contact (DMC): The court must collect and analyze data about the gender, race, age and juvenile offense of youth in the system, create bi-annual reports and make changes based on what those reports reveal.
• Public Meetings: The agreement requires that the court advertise and hold public meetings to review and address the biannual DMC reports.
• Training: The agreement requires that court personnel who are directly involved in decision-making processes at the court or the juvenile office focused on juvenile delinquency participate in training addressing DMC.

The investigation, opened in November 2013, was conducted by the Civil Rights Division’s Special Litigation Section under provisions of the Violent Crime Control and Law Enforcement Act of 1994.  In July 2015, the department issued a findings letter concluding that the St. Louis County Family Court violates the 14th Amendment of the Constitution by failing to ensure that juveniles facing delinquency charges receive adequate due process protections and failing to provide black youth in the juvenile justice system with equal protection under the law.

The department has opened four cases examining whether juvenile justice systems comply with children’s rights since 2009.  In 2012, the department settled its first investigation of this kind, reaching an agreement with the Juvenile Court of Shelby County, Tennessee, that calls for comprehensive due process, equal protection and facility reforms.  In June 2015, the department announced a partial settlement of its lawsuit alleging violations of children’s due process rights in Lauderdale County, Mississippi.  In March 2015, the department announced its investigation of due process and disability discrimination issues in the Dallas County, Texas, Truancy Court and Juvenile District Courts.

Attorney General Loretta E. Lynch announced today that the Justice Department collected more than $15.3 billion in civil and criminal actions in fiscal year (FY) 2016 ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the approximately $3 billion appropriated budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period. 

“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch.  “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment.  I want to thank the prosecutors and trial attorneys who made this year’s collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”

Civil collections account for more than $12 billion of the total collected and were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, mortgage, financial, civil rights or environmental laws.  In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development (HUD), Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.

Among the largest settlements: the $2.96 billion settlement with Goldman Sachs Group (Goldman Sachs), the $2.6 billion settlement with Morgan Stanley & Company (Morgan Stanley), and the $1.2 billion settlement with Wells Fargo Bank, N.A. (Wells Fargo), all of which related to practices arising from residential mortgage lending activities.  In April 2016, the Justice Department announced the settlement with Goldman Sachs related to its conduct in the packaging, securitization, marketing, sale and issuance of residential mortgage backed securities (RMBS) between 2005 and 2007.

In February 2016, the Justice Department announced the settlement with Morgan Stanley to resolve claims related to marketing, sale and issuance of RMBS.  As part of the agreement, Morgan Stanley acknowledged in writing that it failed to disclose critical information to prospective investors about the quality of the mortgage loans underlying its RMBS, and about its due diligence practices.

In April 2016, the Justice Department announced a settlement of civil mortgage fraud claims against Wells Fargo and Wells Fargo executive Kurt Lofrano, stemming from Wells Fargo’s participation in the Federal Housing Administration (FHA) Direct Endorsement Lender Program.  In the settlement, Wells Fargo acknowledged and accepted responsibility for, among other things, certifying to HUD, during the period from May 2001 through December 2008, that certain residential home mortgage loans were eligible for FHA insurance when in fact they were not, resulting in the government having to pay FHA insurance claims when some of those loans defaulted.

The department also continued to collect monies that will go for penalties and natural resource restoration efforts for the largest environmental case in history, including the landmark $20.8 billion settlement with BP approved by the court earlier this year.  The department collected nearly $378 million in FY 2016 scheduled payments to resolve these and other civil claims from the 2010 Macondo well blowout and the massive Deepwater Horizon oil spill that followed in the Gulf of Mexico.

More than $3 billion of the total was collected in FY 2016 from criminal cases, including the more than $772 million criminal penalty assessed against Alstom S.A., a French power and transportation company charged by the District of Connecticut in a foreign bribery scheme.  The fine was the largest, ever, to resolve a foreign bribery case. 

The total includes all monies collected as a result of Justice Department-led enforcement actions and negotiated civil settlements.  It includes more than $12 billion in payments made directly to the Justice Department, and more than $3.3 billion in indirect payments made to other federal agencies, states and other designated recipients. 

In measuring collections recovered in FY 2016, this figure necessarily includes some cases that were resolved in previous years but the proceeds of which were collected in FY 2016.    

On Friday, December 9th, Federal News Radio aired a segment featuring the internship program of INTERPOL Washington, formally known as the U.S. National Central Bureau (USNCB). In a pre-recorded interview, Acting Director Wayne Salzgaber spoke with Tom Temin, host of the morning Federal Drive show, about the unique experiences and opportunities afforded to the bureau’s interns. To listen to the entire interview, click here: http://federalnewsradio.com/federal-drive/2016/12/wayne-salzgaber-interpol-interns-get-first-hand-experience/.

The INTERPOL Washington internship program gives college age students and recent graduates direct experience working in the law enforcement environment. An internship with INTERPOL Washington offers insight into the growing nexus of transnational crime as well as law enforcement in the United States and around the world. Interns may receive the following opportunities:

- Exposure to a wide variety of law enforcement partners, including law enforcement detailees onsite from agencies including the Federal Bureau of Investigation (FBI), Immigration and Customs Enforcement (ICE), U.S. Marshals Service (USMS), and other federal, state and local law enforcement agencies

- Knowledge of the criminal justice system and both its domestic and international scope, impact, and mechanisms

- Awareness of issues affecting international criminal investigations

- Ability to analyze and summarize complex criminal activities

- Expansion of network for future job opportunities, including mentorship from active law enforcement officers and INTERPOL Washington personnel

- Field trips to nearby law enforcement headquarters and training sites

- At this time, INTERPOL Washington offers full-time, nonpaid internships for six-month cycles (January-June; July-December). Submission deadlines are:

- For the July 11, 2017 – December 8, 2017 Term: Application is due February 15, 2017

- For the January 9, 2018 – June 29, 2018 Term: Application is due September 15, 2017

Complete requirements and application procedures can be found at: https://www.justice.gov/interpol-washington/internships