District Not Recorded

The owner and CEO of a Greenbelt, Maryland, building contracting company was convicted today for stealing $1.7 million from Local 657 of the Laborers International Union of North America (LIUNA) and other related offenses.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington, D.C., Field Office, Special Agent in Charge Robin Blake of the Department of Labor Office of Inspector General Washington, D.C., Regional Office and District Director Mark Wheeler of the Department of Labor’s Office of Labor-Management Standards Washington, D.C., District Office made the announcement.  

Gary Amoes Cooper, 58, of Upper Marlboro, Maryland, the owner and CEO of STS General Contracting, was convicted of conspiracy to commit theft from a labor organization, conspiracy to make unfair labor payments, wire fraud and money laundering following a jury trial before U.S. District Judge Amit P. Mehta of the District of Columbia.  Sentencing has been scheduled for Feb. 27, 2017.

Evidence presented at trial demonstrated that Cooper and co-defendant Christopher Andrew Kwegan, the president of STS, conspired with Anthony Wendel Frederick Sr., the former business manager of Local 657 of LIUNA, to convert for personal use $1.7 million in funds stolen from Local 657.  LIUNA is a labor organization that represents laborers in the construction industry, and LIUNA’s Local 657 represents construction laborers in Washington, D.C., and five adjacent counties.

According to trial evidence, from May 2013 to June 2014, Frederick directed $1.7 million in Local 657 funds to STS for an unauthorized construction project and other work without the knowledge or authorization of the Local 657 Executive Board or officials in LIUNA.  Cooper and Kwegan then directed part of the stolen funds from STS accounts toward a $225,000 down payment and construction of a garage for a residential property acquired by Frederick, and gave Frederick’s wife 50 percent ownership in a different construction corporation owned by Cooper.  In addition, according to trial evidence, Cooper and Kwegan depleted an STS bank account containing only stolen Local 657 funds by withdrawing more than $400,000 in cash, sending hundreds of thousands of dollars to third parties in Qatar and using the remainder for personal items, entertainment, shopping trips, hotel stays and overseas travel. 

Frederick, 51, also of Upper Marlboro, and Kwegan, 58, of Randallstown, Maryland, previously pleaded guilty to the same offenses and await sentencing. 

The FBI and the Department of Labor investigated the case.  Trial Attorneys Vincent Falvo and David Karpel of the Criminal Division’s Organized Crime and Gang Section are prosecuting the case.

Attorney General Loretta E. Lynch today released the following statement on the recent acts of violence and ambush style shooting of law enforcement officers:

“Over the last several days, the nation has witnessed a disturbing spate of violence against law enforcement officer across the country.  Since Friday, Nov. 18, two law enforcement officers – U.S. Marshals Service Deputy Commander Patrick Carothers and San Antonio Police Department Detective Benjamin Marconi – were killed, and three others were wounded.  These reprehensible acts cannot be tolerated and they again remind us of the significant hazards that public safety officers confront each and every day on our behalf. 

“Unfortunately, recent statistics suggest that 2016 has been an especially dangerous year for police officers, with a significant increase in the number of officers killed in the line of duty since Jan. 1.  As Attorney General, I regard this increase with the utmost seriousness and the Department of Justice is working closely with our partners in the field to improve officer safety and resilience.  In the days ahead, the Department of Justice will continue to assist state and local law enforcement officers in any way that we can to reduce the frequency and deadliness of these tragic incidents. 

“I ask all Americans to join me in expressing condolences to the family and loved ones of Deputy Commander Carothers and Detective Marconi and in praying for the swift recovery of the officers who were wounded.  They – and all law enforcement officers – deserve our undying respect, gratitude, and support.”

A Newport Beach, California, man was sentenced today in connection with a fraudulent debt relief firm, the Justice Department and U.S. Postal Inspection Service announced.  The defendant worked at Nelson Gamble and Associates and Jackson Hunter Morris and Knight, companies that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees.

John Vartanian, 57, was sentenced to serve 27 months in prison, followed by three years of supervised release, and ordered to pay $1,208,086 in restitution.  Vartanian admitted to selling the firm’s fraudulent debt relief services through telephone calls with consumers nationwide.  The sentence was imposed Monday by U.S. District Court Judge Dale Fischer of the Central District of California in Los Angeles.  The defendant previously pleaded guilty for his  role in the scheme.

“These scams take advantage of consumers already struggling with debt,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to protect consumers from fraud, especially when they are targeted based on their financially vulnerable conditions.”

“We are gratified by today’s sentencing, on behalf of the many unsuspecting victims who sought financial relief, only to be further burdened by these criminals,” said Inspector in Charge Regina L. Faulkerson of Criminal Investigations, U.S. Postal Inspection Service. “We applaud the work of the Justice Department’s Consumer Protection Branch in bringing this fraudulent credit repair salesman and his accomplices to justice.”

Vartanian pleaded guilty to one count of conspiracy to commit mail and wire fraud. Four other defendants also pleaded guilty and were sentenced last week in connection with the fraudulent scheme.

Vartanian and other members of the conspiracy at times portrayed Nelson Gamble and Jackson Hunter as law firms or attorney-based companies.  Clients were told the companies would negotiate favorable settlements with creditors.  Clients made monthly payments expecting the money to go toward settlements.  The conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees. 

The scheme ran from February 2010 to September 2012 and, in 2011, changed names from Nelson Gamble to Jackson Hunter. Conspirators told victims that Nelson Gamble had gone bankrupt and that Jackson Hunter was an unrelated company that had taken over some of the accounts. Participants in the scheme blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble. Some victims who previously demanded refunds accepted the explanation that Nelson Gamble was bankrupt and did not pursue complaints against Jackson Hunter.

In September 2012, the Federal Trade Commission (FTC) brought a civil case against the companies and its principal, Jeremy Nelson, alleging that the defendants misrepresented debt relief services offered to consumers. (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.

Principal Deputy Assistant Attorney General Mizer commended the Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts.  Mizer thanked the U.S. Attorney’s Office for the Central District of California for their contributions to the case and expressed appreciation to the FTC for referring the case to the Consumer Protection Branch. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch. 

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

Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today sentenced Joshua Adam Tatro (24, Merritt Island) to 350 years in federal prison for nine counts of producing child pornography, three counts of receiving child pornography, and one count of possessing child pornography. The Court also ordered him to forfeit the electronic devices that he used during the commission of the offenses. 

Tatro was found guilty after a bench trial on July 6, 2016.

            According to testimony and evidence presented at trial, on nine separate occasions, between October 2014 and March 2015, Tatro produced images and videos depicting him sexually abusing a three-year-old child. He also used a messaging app on his phone to send and receive images depicting child pornography and uploaded images of child pornography onto an online account that he maintained. Law enforcement began investigating Tatro after they learned of his online activity from the National Center for Missing and Exploited Children. 

            On March 17, 2015, agents from the Brevard County Sheriff’s Office executed a search warrant at Tatro’s residence, where he and the child victim were living. During the execution of the warrant, cell phones were recovered from Tatro’s pocket and his bedroom. A forensic examination of those phones led to the recovery of the explicit images and videos that Tatro had produced. During an interview with agents, Tatro admitted to producing the images and videos, and to sending them to others using the messenger app. 

            In total, Tatro possessed 76 videos and 692 photographs of child pornography on his cell phones. A search of his online drive account revealed more than 1,000 stored images of child pornography. Several of the images in Tatro’s possession depicted children under the age of 12 being sexually abused and exploited.

            “This predator will spend the rest of his life behind bars, where he can no longer harm children,” said Susan L. McCormick, special agent in charge of HSI Tampa. “The dedicated work of HSI special agents and our Brevard County Sheriff’s Office partners have made our communities a safer place.”

            This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Andrew C. Searle.

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

The Justice Department reached a settlement today resolving claims that the Denver Sheriff Department discriminated against work-authorized immigrants in violation of the Immigration and Nationality Act (INA).  The Denver Sheriff Department is the largest sheriff department in the state of Colorado.

The Justice Department’s investigation found that from approximately Jan. 1, 2015, until approximately March 23, 2016, the Denver Sheriff Department discriminated based on citizenship status by requiring applicants for deputy sheriff positions to be U.S. citizens and publishing job postings with U.S. citizenship requirements, in violation of the INA.  The INA’s anti-discrimination provision prohibits employers from limiting jobs to U.S. citizens except where the employer is required to do so by law, regulation, executive order or government contract.  The Denver Sheriff Department was not subject to one of the INA’s exceptions. 

Under the terms of the settlement agreement, the Denver Sheriff Department will pay $10,000 in civil penalties; identify applicants who may have been disqualified from consideration for deputy sheriff positions due to the citizenship requirement and consider these applicants’ qualifications without regards to their citizenship; train its human resources staff on the anti-discrimination provision of the INA and review and revise its policies and procedures to comply with the requirements of the INA’s anti-discrimination provision.
                                                              
“We commend the Denver Sheriff Department for its cooperation and commitment to removing unnecessary and unlawful employment barriers,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Eliminating this unlawful citizenship requirement will help ensure that the Denver Sheriff Department hires the best and most qualified individuals to protect and serve.  The entire community will benefit from these reforms.”

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA.  The statute prohibits, among other things, citizenship, immigration status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices in employment eligibility verification; retaliation and intimidation. 

To learn more about the protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email osccrt@usdoj.gov or visit OSC’s website at www.justice.gov/crt/about/osc.

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

Denver Sheriff Department Settlement Agreement

The Combined Federal Campaign (CFC) is the largest and most successful annual workplace charity campaign. Its mission is to promote and support philanthropy through an employee-focused program that provides all federal employees with opportunities to support eligible non-profit organizations. Today, an estimated 20,000 nonprofit charitable organizations worldwide participate in CFC events. Throughout the campaign season (September 1st to December 15th), pledges made by Federal civilian, postal, and military donors support these organizations and aim to improve the quality of life for all. The 2016 campaign theme, Show Some Love, encourages awareness of causes and charities that Federal employees support.

The INTERPOL Washington interns recognized the important work done by the CFC and participated in their Show Some Love campaign. They each contributed three causes or charities that they support. Some of these causes included animal rights, domestic violence awareness, veterans’ rights, medical research, refugee support, and environmental conservation. All of the causes were then compiled onto two poster boards, which are now hung around the INTERPOL Washington office to promote charitable participation and demonstrate the interns’ support for the CFC. “It’s a great opportunity to get involved,” said Public and Congressional Affairs intern Kimberly Campbell. “This campaign encouraged me to identify and support charities that are important to me.”

The INTERPOL Washington six-month internship program offers an excellent opportunity for those interested in law enforcement to gain experience and connections. The application deadline for the July-December 2017 internship is February 15, 2017. For more information on INTERPOL Washington’s internships, please see https://www.justice.gov/interpol-washington/internships.

WASHINGTON – El Departamento de Justicia llegó hoy a un acuerdo para resolver una reclamación alegando que el Departamento del Sheriff de Denver discriminaba en contra de los inmigrantes con autorización para trabajar, en contravención de la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés). El Departamento del Sheriff de Denver es el departamento de sheriff más grande del Estado de Colorado.

La investigación que llevó a cabo el Departamento de Justicia encontró que desde aproximadamente el 1 de enero de 2015 hasta aproximadamente el 23 de marzo de 2016, el Departamento del Sheriff de Denver discriminaba por causa del estatus de ciudadanía al exigir que los postulantes a puestos de sheriff adjunto fueran ciudadanos de EE.UU. y al publicar anuncios de trabajo que reflejaban requisitos de ciudadanía de EE.UU., en contravención de la INA. La disposición antidiscriminatoria de la INA prohíbe a los empleadores restringir sus puestos de trabajo a los ciudadanos de EE.UU. a menos que sea un requisito establecido por ley, reglamento, decreto ejecutivo o contrato gubernamental. El Departamento del Sheriff de Denver no estaba sujeto a ningunas de las excepciones bajo la INA.

Bajo los términos del acuerdo de resolución, el Departamento del Sheriff de Denver pagará $10,000 en sanciones civiles; identificará a los postulantes a puestos de trabajo que pudieron haber sido inhabilitados de consideración para conseguir puestos de trabajo en calidad de sheriff adjunto debido al requisito de ciudadanía y considerará las calificaciones de estos postulantes sin importar su ciudadanía; capacitará a su personal de recursos humanos sobre la disposición antidiscriminatoria de la INA; y estudiará y revisará sus políticas y procedimientos para cumplir con los requisitos de la disposición antidiscriminatoria de la INA

“Agradecemos al Departamento del Sheriff de Denver por su colaboración y compromiso para levantar las barreras innecesarias e ilícitas al empleo,” dijo la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, encargada de la División de Derechos Civiles del Departamento de Justicia.  “La eliminación de este requisito ilícito de ciudadanía ayudará a asegurar que el Departamento del Sheriff de Denver contrate a las personas más idóneas y aptas para proteger y servir. La comunidad entera beneficiará de estas reformas.”

La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés) es responsable de hacer cumplir la disposición antidiscriminatoria de INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de ciudadanía, estatus migratorio y origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; prácticas documentales injustas en la verificación de la elegibilidad para trabajar; las represalias y la intimidación.

Para mayor información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración, llame a la línea directa de la OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para las personas con dificultades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con dificultades auditivas); inscríbase en un seminario gratis en línea al www.justice.gov/crt/about/osc/webinars.php; envíe un correo electrónico al osccrt@usdoj.gov o visite el sitio web de la OSC en www.justice.gov/crt/about/osc.

Los postulantes o empleados que crean que les han obligado a cumplir con requisitos documentales diferentes por causa de su ciudadanía, estatus migratorio u origen nacional; o que hayan sufrido discriminación por motivos de su ciudadanía, estatus migratorio u origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; deben comunicarse con la línea directa para trabajadores de OSC para solicitar ayuda.

Deputy Attorney General Sally Q. Yates today released the following statement on the passing of U.S. Marshals Service Deputy Commander Patrick Carothers:

“Today the Marshal Service lost one of its best.  I had the privilege of working with Deputy Commander Carothers in Atlanta for many years and he more than lived up to his reputation for being an inspiring leader and an exemplary public servant.  Deputy Commander Carothers was dedicated to his mission, devoted to his team and heroic to his core.  For those of us lucky enough to see him in action, he set an extraordinary example of valor and decency in service to the American people.  Losing him today is a blow to our law enforcement family in Atlanta and across the country and it underscores the grave risks that law enforcement officers assume every day in order to keep us safe.  Deputy Commander Carothers was a hero not only to his colleagues, but also to the family he cherished and adored.  His wife and children, and all of his loved ones will be central to my thoughts and prayers during this difficult time.  All of us at the U.S. Department of Justice owe it to them – and to the memory of Deputy Commander Carothers – to keep his spirit alive by continuing to fight for the values of security, peace and justice that animated his life and that will endure with his legacy."

Attorney General Loretta E. Lynch today released the following statement on the passing of U.S. Marshals Service Deputy Commander Patrick Carothers:

“I am deeply saddened by the tragic loss of U.S. Marshals Service Deputy Commander Patrick Carothers -- a devoted husband, a loving father and an outstanding public servant.  Deputy Commander Carothers served the American people with fidelity and courage throughout his distinguished career.  He stayed true to his oath to the last, laying down his life to keep his community safe and his neighbors secure.  I know that his legacy will live on in the proud annals of the U.S. Marshals Service and in the memory of his fellow law enforcement officers from coast to coast.  I join all the men and women of the U.S. Department of Justice in extending my thoughts and prayers to Deputy Commander Carothers’s wife, children and loved ones.  We will honor his heroic sacrifice by continuing the work for which he so valiantly gave his life: the work of building a stronger, safer and more just United States.”

Attorney General Loretta E. Lynch released a video statement today on the FBI’s newly announced 2015 hate crime statistics as well as on recent media reports of alleged hate crimes and harassment around the country.  The statement reminds individuals to report these incidents to both local law enforcement and the Justice Department in order to ensure that career investigators and prosecutors are able to enforce hate crime statutes at the local, state and federal level.

The video can be viewed at here, and a transcript of the video is below:

“Earlier this week, the FBI released its statistics on hate crimes committed in 2015.  These numbers should be deeply sobering for all Americans.  Among other alarming trends, the report showed a 67 percent increase in hate crimes committed against Muslim Americans.  It also showed increases in the number of hate crimes committed against Jewish people, African Americans, and LGBT individuals.  Overall, the number of reported hate crimes increased six percent – a number that does not account for the many hate crimes that may go unreported out of shame or fear.

“Beyond these 2015 statistics, I know that many Americans are concerned by a spate of recent news reports about alleged hate crimes and harassment.  Some of these incidents have happened in schools.  Others have targeted houses of worship.  And some have singled out individuals for attacks and intimidation.  The FBI is assessing, in conjunction with federal prosecutors, whether particular incidents constitute violations of federal law.  We need you to continue to report these incidents to local law enforcement, as well as the Justice Department, so that our career investigators and prosecutors can take action to defend your rights.  You can find information about federal hate crimes laws – and other civil rights laws that the department enforces, including protections for students in schools – on our Civil Rights Division’s website.  Our site also contains resources for communities working to prevent and respond to hate crimes, as well.

“Last month marked the seventh anniversary of one of those laws: the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act.  This landmark statute was named for two men who were killed for the most un-American of reasons – because they were different from their attackers – Matthew Shepard in his sexual orientation, and James Byrd Jr. in his race.  The law that bears their names significantly expanded our ability to combat hate crimes by adding new federal protections against crimes based on one’s gender identity, sexual orientation, gender, or disability status – protections that we have worked tirelessly to uphold in the last seven years.

“But despite the tremendous progress we have made, we cannot lose sight of how much remains to be done.  Nearly two decades after Matthew Shepard and James Byrd Jr. were brutally murdered simply for being who they were, we still have a long way to go to ensure that every American can live free from the fear of violence or harassment based what they look like, how they worship, or whom they love.

“That work is not just about enforcing the law.  It’s about staying true to our highest ideals and most cherished principles.  It’s about making sure that all Americans receive the protection of the law.  And it’s about giving real meaning to our shared belief that all people are created equal.

“Put simply, this work is the right – and just – thing to do.  And I want the American people to know that as long as that work is necessary, the Department of Justice will continue to carry it forward.  We will continue to enforce our nation’s hate crimes laws to the fullest extent possible.  We will continue to uphold our conviction that all men and women deserve to lead lives of safety and dignity.  And we will continue to champion the values of diversity and inclusion that have always been the bedrock of our nation’s progress, and that point the way to a brighter future.  Thank you.”

Agree to Forfeit $4.1Million

A Kenner, Louisiana couple was sentenced today for crimes related to the operation of their check cashing business, VJ Discount Inc., 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. 

Susantha Wijetunge, aka VJ, 52, was sentenced by U.S. District Court Judge Lance M. Africk of the Eastern District of Louisiana to serve 44 months in prison and his spouse, Manula Wijetunge, aka Manu, 48, was sentenced by Judge Africk to serve three years of probation.   The Wijetunges owned VJ Discount Inc., a Louisiana corporation that operated a convenience store and check cashing business in Kenner.  Susantha Wijetunge, VJ Discount Inc. and others cashed, for an inflated fee, fraudulently obtained tax refund checks for multiple co-conspirators.  These transactions often involved multiple checks and tens of thousands of dollars.  In an attempt to conceal this illegal activity, Susantha Wijetunge and others failed to file, or filed false, required currency transaction reports with the government.

Susantha Wijetunge also filed multiple false individual and corporate income tax returns that underreported income.  The Wijetunges admitted that VJ Discount Inc. had third party check deposits totaling more than $59 million in 2011; $47 million in 2012; and $66 million in 2013.  Despite this large volume of business, the Wijentunges’ individual income tax returns reported total income of less than $100,000 per year. 

In March 2016, Susantha Wijetunge pleaded guilty to conspiring to defraud the United States and to committing mail and wire fraud, and Manula Wijetunge pleaded guilty to willfully filing a false 2013 individual income tax return. 

In addition to the term of prison imposed, Susantha Wijetunge was ordered to serve three years of supervised release, pay a fine of $750,000 and pay $562,500 in restitution to the IRS.  In addition to the term of probation imposed, Manula Wijetunge was ordered to pay a fine of $250,000 and $208,125 in restitution to the IRS. The Wijetunges were ordered to forfeit $4.1 million.

Principal Deputy Assistant Attorney General Ciraolo and U. S. Attorney Polite commended special agents of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and IRS – Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorneys Hayden Brockett and David Haller and Trial Attorney Michael Hatzimichalis of the Tax Division, who are prosecuting the case.

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

A fourth member of the SnappzMarket online piracy group was convicted yesterday for his role in the illegal distribution of copies of copyrighted Android mobile device applications.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John A. Horn of the Northern District of Georgia and Special Agent in Charge David J. LeValley of the FBI’s Atlanta Field Office made the announcement.

Joshua Taylor, 26, of Kentwood, Michigan, was convicted yesterday of one count of conspiracy to commit criminal copyright infringement following a bench trial before U.S. District Judge Timothy C. Batten Sr. of the Northern District of Georgia.  Sentencing has been scheduled for Feb. 17, 2017.

Evidence presented at trial demonstrated that Taylor and his co-conspirators identified themselves as members of the SnappzMarket Group, which reproduced and distributed copies of copyrighted Android mobile device apps between May 2011 and August 2012.  The co-conspirators distributed the pirated apps without permission from the copyright owners, who sold the apps on legitimate online markets for a fee.  The SnappzMarket Group distributed pirated copies of the apps through the group’s own app and through the SnappzMarket alternative online market website.  On Aug. 21, 2012, the FBI executed a seizure order against the group’s website, the first time a website domain involving mobile device app marketplaces had been seized.  

The total retail value of the more than one million pirated apps distributed by the SnappzMarket Group was estimated to have been more than $1.7 million, according to evidence presented at previous court proceedings.

Co-conspirators Kody Jon Peterson, 24, of Clermont, Florida, and Gary Edwin Sharp II, 29, of Uxbridge, Massachusetts, previously pleaded guilty and await sentencing.  Scott Walton, 29, of Cleveland, Ohio, also pleaded guilty in connection with the conspiracy and was sentenced to 46 months in prison on Aug. 15, 2016.

The FBI investigated the case.  Assistant Deputy Chief John H. Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Christopher Bly of the Northern District of Georgia prosecuted the case with significant assistance from the Criminal Division’s Office of International Affairs and the CCIPS Cybercrime Lab. 

The Justice Department announced today that former Mississippi correctional officer Deonte Pate, 23, pleaded guilty today to helping conceal the beating of an inmate.  

Pate admitted to conspiring to cover up a beating carried out by two other officers, who were also charged for their roles in the incident.  Pate acknowledged that he submitted false reports and lied to the FBI in order to prevent knowledge of the beating from reaching outside authorities.  He was charged in June with officers Lawardrick Marsher, 28, and Robert Sturdivant, 47.  All three were officers at Mississippi State Penitentiary in Parchman, Mississippi.  

The indictment charged Marsher and Sturdivant with kicking, punching and throwing the victim to the ground.  The indictment also alleges that their actions involved the use of a dangerous weapon and resulted in bodily injury to the victim.

“In the closed prison environment, we rely on corrections officers to protect the safety and well-being of inmates,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “When officers abuse inmates – or in this case lie to cover up abuse – their actions offend the law and undermine the integrity of our justice system.” 

“The defendant abused his authority, violated the law and the public trust,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi.  “The U.S. Attorney’s Office for the Northern District of Mississippi is committed to aggressively prosecuting those correctional officers who break the law and violate an individual’s constitutional rights.”

“Public servants should be held to a higher standard, especially those tasked with maintaining order and watching over our prisons,” said Special Agent in Charge Donald Alway of the FBI Jackson Division.  “When corrections officers violate the civil rights of those they are sworn to protect, the entire system suffers the consequences.  We appreciate the long standing relationships with our local, state and federal partners that aided in this investigation.”

Pate faces a maximum sentence of five years in prison.  Sentencing is tentatively scheduled for March 16, 2017.  The charges against Marsher and Sturdivant are still pending and trial is scheduled for Feb. 6, 2017.

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

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

Pate Plea Agreement

A woman originally from Lackawanna County, Pennsylvania, was sentenced today in U.S. District Court in Philadelphia to 50 months in prison on charges related to an odometer tampering conspiracy, the Department of Justice announced today. 

“Unscrupulous dealers who roll back odometers cheat consumers out of their hard-earned money, affect informed buying choices, and raise safety concerns by misrepresenting the actual condition of the vehicles they sell,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “For many American consumers, the purchase of an automobile is one of the biggest purchases they make.  The Department of Justice will continue to vigorously enforce consumer protection laws by bringing those who commit this crime to justice.” 

Judith Ann Aloe, 56, previously residing in Lauderdale Lakes, Florida, was also ordered to pay restitution in the amount of $1.482 million to victims and serve three years of supervised release following her prison term.  In June 2016, Aloe pleaded guilty to one count of conspiracy to tamper with odometers, make false odometer certifications, and commit securities fraud, and 11 counts each of securities fraud and making false odometer certifications.  Aloe and a co-defendant, Kyle Novitsky, rolled back odometers on used cars and trucks to make the vehicles appear more valuable.  Doing business under various company names, Aloe and Novitsky sold close to 250 vehicles with rolled back odometers.

Aloe was scheduled to stand trial on May 14, 2014, in U.S. District Court in Philadelphia, but when she failed to appear for trial, a bench warrant was issued for her arrest by Chief Judge Petrese B. Tucker.  Aloe remained at large for 21 months.  In February, she was located in Baja California, Mexico, and turned over to the U.S. Marshals Service at the Mexico-California border. 

In April 2014, Aloe’s co-defendant, Kyle Novitsky, then 46, of Scott Township, Pennsylvania, pleaded guilty to several counts in the indictment.  In October 2014, Novitsky was sentenced to 60 months in prison and also ordered to pay restitution in the amount of $1.482 million to victims.

Aloe admitted to participating in the purchase of high-mileage cars, sport-utility vehicles and trucks from various locations of a national car rental company.  Aloe then worked with Novitsky to roll back and alter the odometers and resold the vehicles at wholesale automobile auctions in Pennsylvania.  Aloe also caused to be altered the high mileages shown on the titles received from the car rental company to reflect false, low mileages and retitled the vehicles in Pennsylvania with false mileages.  These titles were then given to the buyers so that the mileage on the titles matched the mileage shown on a vehicle’s odometer.

This case was prosecuted by Senior Litigation Counsel Linda I. Marks of the Civil Division’s Consumer Protection Branch and former Consumer Protection Branch Trial Attorney Jessica Gunder, now an Assistant U.S. Attorney in Idaho, with assistance from the U.S. Attorney’s Office in the Eastern District of Pennsylvania.  The case was investigated by the National Highway Traffic Safety Administration’s (NHTSA) Office of Odometer Fraud Investigation. 

More information on odometer fraud is available on the NHTSA’s website and tips on detecting and avoiding odometer fraud are available at this page.  For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.

A resident of Big Lake, Alaska was indicted on four counts of tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Karen L. Loeffler of the District of Alaska.

Larry Lawson was an oncologist who practiced under Midnight Sun Oncology Inc., an Alaskan business corporation.  The superseding indictment alleges that Lawson attempted to evade his 2009 through 2012 individual income tax liabilities by filing false individual and corporate income tax returns that falsely claimed, among other things, charitable contributions.  The superseding indictment further alleges that Lawson made a false statement to an Internal Revenue Service (IRS) agent during an audit of his 2009 and 2010 individual income tax returns by stating that he did not receive any items or property in return for money contributed to a non-profit Arizona corporation during those years.   According to IRS rules and regulations, if an individual receives a benefit or items or property as a result of making a contribution to a qualified organization, the individual may deduct only the amount of the contribution that exceeds the value of the benefit or items or property received.

Lawson was also charged with one count of obstructing and impeding the internal revenue laws. The superseding indictment alleges that Lawson created and used nominee entities to conceal his individual income.  It further alleges that he created From the Vault Inc., a not-for-profit Alaska corporation, that he used as a nominee primarily to acquire and maintain his own personal collection of fossils, dinosaurs, maps, rare books, rare manuscripts, and related material.

If convicted, Lawson faces a statutory maximum sentence of five years in prison for each count of tax evasion and three years in prison for obstructing and impeding the internal revenue laws. Lawson also faces a period of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Loeffler thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Lori A. Hendrickson and Timothy M. Russo of the Tax Division and Assistant U.S. Attorney Retta-Rae Randall, who are prosecuting the case.

An indictment is only a charge and is not evidence of guilt.  A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.

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

Impeded IRS Efforts to Collect and Failed to Pay Over $2.8 Million in Payroll Taxes

A federal grand jury sitting in Memphis, Tennessee returned an indictment on Nov. 10, which was unsealed yesterday, charging two Tennessee residents with conspiring to defraud the United States and failing to account for and pay over employment tax, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Edward L. Stanton III for the Western District of Tennessee.

Mark and Jayton Stinson were each arrested Tuesday and charged with one count of conspiring to defraud the United States and five counts of failing to truthfully account for and pay over payroll taxes.  Mark Stinson was also charged with five counts of filing false tax returns, one count of theft of government funds, and one count of aggravated identity theft. 

According to the indictment, from 2005 through 2015, the Stinsons operated a temporary staffing company that provided services to businesses in Tennessee and elsewhere.  The staffing company’s standard contract with its customers provided that the staffing company was responsible for withholding employment tax from its employees’ wages and paying over the amounts withheld to the Internal Revenue Service (IRS).

It is alleged that the Stinsons failed to pay over $2.8 million in employment tax to the IRS, failed to timely file employment tax returns and filed false employment tax returns.  The indictment further alleges that despite having the same line of business and substantially the same customers, the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Jayton Stinson Connex Staffing & Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services Inc. and Complete Employment Agency. 

The Stinsons are also alleged to have conspired to impede IRS collection efforts of the company’s payroll tax liabilities. For example, the Stinsons are alleged to have made false representations to the IRS about their control of the staffing company and their knowledge of their responsibility to truthfully account for and pay over the employment taxes, placed the staffing company in the names of nominees who did not have control over the business operations, and established payment arrangements intended to impede an IRS levy placed on their customer payments.  It is further alleged that the Stinsons used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage payments and private school tuition for their children.        

If convicted, the Stinsons face a statutory maximum sentence of five years in prison for the conspiracy count and for each count of failing to pay over employment taxes.  Mark Stinson also faces a statutory maximum sentence of three years in prison for each false return count, 10 years in prison for theft of government funds and a mandatory sentence of two years in prison for the aggravated identity theft charge, which will be in addition to any other term of imprisonment he receives.  Both defendants also face a period of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Stanton commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Damon Griffin and Trial Attorney Nathan Brooks of the Tax Division, who are prosecuting the case.

An indictment merely alleges that crimes have been committed.  Defendants are presumed innocent until proven guilty beyond a reasonable doubt.

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

                                   

Investigations Have Yielded 59 Plea Agreements to Date

Two Northern California real estate investors have agreed to plead guilty today for their role in a conspiracy to rig bids at public real estate foreclosure auctions in Northern California, the Department of Justice announced. 

California real estate investors John Michael Galloway and Nicholas Diaz each pleaded guilty to one count of bid rigging in U.S. District Court for the Northern District of California in Oakland today.  Both were charged in an indictment returned by a federal grand jury in the Northern District of California on December 3, 2014.

According to court documents, between June 2008 and January 2011, John Michael Galloway and Nicholas Diaz conspired with others not to bid against one another, instead designating a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa County.  The selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.  The private auctions often took place at or near the courthouse steps where the public auctions were held.    

The department said that the primary purpose of the conspiracies was to suppress and eliminate competition in order to obtain selected real estate offered at Contra Costa County public foreclosure auctions at noncompetitive prices.  When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.  

The guilty pleas entered today were the result of 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.  To date, 59 individuals have agreed to plead or have pleaded guilty.  In addition, indictments are pending against 16 real estate investors.  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.

The last three of nine men were sentenced this week in U.S. District Court in Minneapolis for conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and for conspiracy to murder outside the U.S.  

Guled Omar, 22, of Minneapolis, Minnesota, was charged with one additional count of attempting to provide material support to a designated foreign terrorist organization and one count of attempted financial aid fraud.  Omar was sentenced to 35 years in prison.  Mohamed Abdhihamid Farah, 22, of Minneapolis was charged with one additional count of attempting to provide material support to a designated foreign terrorist organization, one count of perjury and one count of making a false statement.  Farah was sentenced to 30 years in prison.  Abdirahman Yasin Daud, 22, of Minneapolis was sentenced to 30 years in prison.  All three defendants were also sentenced to lifetime supervised release.

The announcement was made by Acting Assistant Attorney General for National Security Mary B. McCord, U.S. Attorney Andrew M. Luger for the District of Minnesota and Special Agent in Charge Richard T. Thornton of the FBI’s Minneapolis Division.

“This case -- culminating in the sentencings of nine young men in the last three days -- demonstrates our commitment to disrupting those who would conspire to travel to Syria to fight with ISIL,” said Acting Assistant Attorney General McCord.  “Counterterrorism is the National Security Division’s highest priority and we will continue to work to stem the flow of foreign fighters abroad and to bring to justice those who seek to provide material support to designated foreign terrorist organizations.”

“ISIL remains one of the most dangerous terror organizations in the world,” said U.S. Attorney Luger.  “The defendants sentenced today remind us that this ideology ruins the lives of those who ascribe to it.  Omar, Daud and Farah will spend the next several decades in prison because of their unbreakable desire to kill on behalf of ISIL.  I commend the agents and officers of the FBI-led Joint Terrorism Task Force (JTTF) for continuing to keep Minnesotans safe.”

“The sentences handed down today reflect the true gravity of the defendants’ crimes to betray their country, travel overseas and ultimately join a terrorist organization dedicated to the murder of innocent people,” said Special Agent in Charge Thornton.  “We hope these sentences will serve as a strong message that those who support terrorism will face justice.  The FBI, through our Joint Terrorism Task Force, remains dedicated to working with our community partners to disrupt threats posed by ISIL and their supporters.”

As proven at trial, between May 2014 and their arrests on April 19, 2015, these three defendants and their co-conspirators made multiple attempts to join ISIL in Syria.  In May 2014, defendant Omar and two other members of the conspiracy made an attempt to join ISIL by traveling across the U.S. – Mexico border near San Diego.  This planned failed when members of defendant Omar’s family prevented his travel. 

Omar again attempted to join ISIL in Syria on Nov. 6, 2014, by first flying from the Minneapolis/St. Paul International Airport in Minneapolis to San Diego, California.  Again, defendant Omar planned to cross the United States – Mexico border near San Diego and travel onward to Syria to join ISIL.  Before he could board the flight in Minnesota, Omar was stopped at the airport and prevented from boarding the plane.  In order to fund this second attempt to join ISIL in Syria, Omar intended to use federal financial aid provided to him by the U.S. Department of Education to attend college.

Also in November 2014, Farah was one of four co-conspirators to take a Greyhound bus to New York, New York, and attempt to board a flight to Europe.  Farah’s ultimate destination was Syria, where he planned to join and fight with ISIL.  Federal agents in New York prevented defendant Farah and his three co-conspirators from traveling.

In April 2015, Daud and Farah drove from Minneapolis to San Diego, where they intended to purchase fake passports, cross the border into Mexico and travel to Syria to join ISIL.  Unbeknownst to them, the individual from whom they purchased the fake passports was a law enforcement officer and both were arrested by federal agents immediately after obtaining the phony travel documents.

Eleven Minnesotans have been charged as part of this conspiracy to provide material support to ISIL.  The men are all associates and friends of one another.  Six defendants pleaded guilty before trial and two, Abdi Nur and Mohamed Roble, joined ISIL in Syria.

This case is the result of an investigation conducted by members of the FBI-led JTTF.  JTTF includes members from the following departments: the U.S. Marshals Service, Minnesota Bureau of Criminal Apprehension, Bloomington Police Department in Minnesota, St. Paul Police Department in Minnesota, Ramsey County Sheriff’s Office in Minnesota, Hennepin County Sheriff’s Office in Minnesota, Federal Air Marshals Service, Customs and Border Protection, Department of Defense, Immigration and Customs Enforcement, Minneapolis Police Department, Burnsville Police Department in Minnesota, Department of State, the Airport Police, IRS-Criminal Investigation Division and the FBI.

This case was prosecuted by Assistant U.S. Attorneys Andrew Winter, John Docherty and Julie Allyn of the District of Minnesota, with assistance from the National Security Division’s Counterterrorism Section.

Concealed Personal Funds and Assets from IRS Collection Efforts

A Las Vegas, Nevada resident was charged by a superseding indictment today in the District of Nevada for attempted tax evasion announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Daniel G. Bogden for the District of Nevada.

According to the superseding indictment, Maria Larkin aka Maria Bella-Larkin, owned and operated Five Star Home Health Care Inc. (FSHHC) from 1996 through 2009 and was responsible for collecting, accounting for, and paying over income, social security, and Medicare tax withheld from employees’ wages.  The tax withheld is referred to as “trust fund tax” because the employer holds those funds in trust until the amounts are paid over to the Internal Revenue Service (IRS) on behalf of the employee.  If a responsible person willfully fails to pay over trust fund taxes, the IRS may impose a penalty equal to the amount of the trust fund taxes on the responsible person.  This penalty is known as the trust fund recovery penalty. 

The superseding indictment alleges that from 2004 through 2009, FSHHC failed to pay over the tax withheld from its employees’ wages and, as a result, the IRS assessed trust fund recovery penalties against Larkin equal to the amount withheld and not paid over.

According to the superseding indictment, Larkin willfully attempted to evade and defeat the payment of the trust fund recovery penalties assessed against her by concealing and attempting to conceal from the IRS her access to personal funds and assets.  Specifically, the superseding indictment alleges that Larkin purchased a home in the name of a nominee, engaged in currency transactions with financial institutions in amounts less than $10,000 to prevent the filing of currency transaction reports, changed the name of her business and placed the business in the name of a nominee, and provided false information to the IRS regarding her ability to pay the trust fund recovery penalties. 

An indictment merely alleges that crimes have been committed. Defendants are presumed innocent until proven guilty beyond a reasonable doubt.

If convicted, Larkin faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Bogden commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorney John Mulcahy of the Tax Division, and Assistant U.S. Attorneys Cristina Silva and Alexandra Michael, who are prosecuting the case.

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

          On September 30, 2016, President Barack Obama proclaimed October 2-8, 2016 as National Community Policing Week.  On October 3, 2016, the Department of Justice announced the designation of October 2-8, 2016 as National Community Policing Week, the first ever designation by the Justice Department, and an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual respect between law enforcement and citizens.

          In response to the Department of Justice’s designation of Oct. 3-7, 2016, as National Community Policing Week, U.S. Attorney Alicia Limtiaco for the Districts of Guam and the Northern Mariana Islands (NMI), announced that proclamations by the Governor of Guam Eddie Calvo and the Governor of the NMI Ralph Torres were held and a legislative resolution by Senator Frank Aguon, Jr., in Guam was presented designating October 3-7, 2016, as National Community Policing Week.

          Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that law enforcement are sworn to protect and serve.  At the heart of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of our neighborhoods, our villages, and in our islands where we live and work.

          Community policing is about strengthening the relationship between law enforcement and our community, to foster dialogue, and promote and increase trust, mutual respect and understanding among our law enforcement and community members in our shared efforts to build stronger, safer and more just communities for our families, for our children and for all persons making Guam and the NMI their home.

          In July 2014, the U.S. Attorney’s Office organized and held a ceremony commemorating the 50th Anniversary of the Civil Rights Act of 1964 and spoke about the Department of Justice’s commitment to diversity and inclusion, and promoting and protecting equal opportunity and the civil rights of all protected classes.  Shortly thereafter and in response to issued raised by our Lesbian Gay Bisexual and Transgender (LGBT) community, our LGBT Community Coalition was formed.  In our efforts to be inclusive, the Coalition expanded to include those persons who identify as Queer or Questioning (Q) and those who are Intersex (I), and is now known as our LGBTQI Community Coalition.

 

FIRST-EVER ROUNDTABLE MEETING OF LGBTQI COMMUNITY COALITION AND LAW ENFORCEMENT/GOVERNMENT AGENCIES

          First-Ever Roundtable Meeting of LGBTQI Community and Law Enforcement/Government AgenciesIn commemoration of National Community Policing Week and in response to the call to action to engage our law enforcement and community in dialogue to strengthen our relationship and build trust, U.S. Attorney Limtiaco invited our LGBTQI Community Coalition, law enforcement and government agencies to participate in a roundtable meeting to build upon our collaborative efforts to address and be responsive to the needs and issued faced by our LGBTQI community, law enforcement and government agencies, including identifying and responding to hate crimes; developing a network of reliable resources and support services; and engaging in crime prevention efforts, so that by working together we improve the overall quality of life for everyone.

          On Guam, a roundtable meeting with the  LGBTQI Community Coalition, law enforcement and government agencies was held in October 2016.  This was the first time a roundtable meeting was held for the purpose of engaging stakeholders in a dialogue and discussion of the issues and concerns affecting our LGBTQI community. 

          LGBTQI leaders and members of Guam’s Alternative Lifestyle Association (GALA) and ISA Guam were invited to participate.  GALA is a community based organization that exists to strengthen the quality of life for gay, lesbian, bisexual and transgendered persons, their families and friends through Support, Education, & Advocacy.  GALA upholds a society that embraces social diversity through love and respect for all.  ISA Guam is an organization dedicated to supporting and advocating for LGBT equality, specifically Guam’s LGBT community and supporters.

          Law Enforcement, government agencies, and organizations in attendance were the U.S. Attorney’s Office, Guam Airport Security Police, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Guam Department of Corrections, Guam           Department of Labor, Guam Department of Public Health and Social Services, Guam Department of Youth Affairs, Federal Bureau of Investigation (FBI), Guam Customs and Quarantine Agency, Guam Department of Education, Guam Police Department, Guam Department of Revenue and Taxation, Guam Fire Department, Guam National Guard, Guam Port Authority Police, Marianas Regional Fusion Center/Guam Homeland Security, Office of Senator Benjamin Cruz, 33rd Guam Legislature, Office of Senator Nerissa Underwood, 33rd Guam Legislature, Guam Family Law Office, Transportation Security Administration, U.S. Department of Labor, and U.S. Passport Office.

          In the NMI, the roundtable meeting with the LGBTQI Community Coalition, law enforcement and government agencies was held in November 2016.  This was also the first time a roundtable meeting was held in the NMI for the purpose of engaging stakeholders in a dialogue and discussion of the issues and concerns affecting our LGBTQI community. 

          Law Enforcement, government agencies, and organizations in attendance were the U.S. Attorney’s Office, NMI Ports Police, ATF, NMI Department of Finance, NMI Department of Corrections, NMI Department of Labor, NMI Department of Public Health and Social Services, NMI Department of Youth Services, FBI, NMI Department of Finance/Division of Customs, NMI Department of Public Safety, NMI Department of Finance/Division of Revenue and Taxation, U.S. Department of Homeland Security/Customs and Border Protection (CBP), and Transportation Security Administration.

          LGBTQI leaders and members of PRIDE Marianas in the NMI and GALA Guam were invited to participate.  PRIDE Marianas is a new non-profit LGBT organization in the NMI established to celebrate the diversity of LGBT individuals in the NMI and promote awareness and understanding of LGBT issues.

          The roundtable meetings in Guam and the NMI were well-received by all participants with positive comments about the importance of increasing and improving the dialogue with and strengthening support of the LGBTQI community.  There were over 50 participants in attendance in Guam and over 20 participants in the NMI.

 

COMMEMORATING NATIONAL COMMUNITY POLICING WEEK

Proclamation Signing in Guam for National Community Policing Week with Lt. Governor Raymond Tenorio, Chief of Police Jose Cruz and his staff, U.S. Attorney Alicia Limtiaco, staff members of the U.S. Attorney’s Office:  AUSA Stephen Leon Guerrero, Victim Witness/Law Enforcement Coordinator Salome Blas, Secretary to U.S. Attorney Carmelleta San Nicolas, FLU Legal Assistant Michelle Perez and Legal Assistant Noreen Davis, Senator Frank Blas Aguon, Jr., Fire Chief Joey San Nicolas, Deputy U.S. Marshal John San Nicolas, TSA Assistant Federal Security Director-Law Enforcement Tyron Guillory and TSA Deputy Assistant Federal Security Director Robert Cochran, HSI RAC Shaun Harris, Guam Customs and Quarantine Agency Acting Chief Darlene Merfalen, and other law enforcement officers U.S. Attorney Alicia Limtiaco with Senator Frank Blas Aguon, Jr. at the Resolution Reading in Guam for National Community Policing Week U.S. Attorney Alicia Limtiaco with NMI Department of Public Safety Commissioner Robert Guerrero and Governor of the NMI Ralph Torres at the Proclamation Signing for National Community Policing Week

 

ROUNDTABLE MEETING OF LGBTQI COMMUNITY COALITION AND LAW ENFORCEMENT/GOVERNMENT AGENCIES

Roundtable Meeting with Guam LGBTQI Community Coalition, Law Enforcement and Government Agency Heads Roundtable Meeting with Guam LGBTQI Community Coalition, Law Enforcement and Government Agency Heads Roundtable Meeting with NMI LGBTQI Community Coalition, Law Enforcement, and Government Agency Heads

 

Merger Would Eliminate Significant Head-to-Head Competition that Has Led to Lower Prices and Better Service  for Customers in 36 States Seeking to Dispose of Low Level Radioactive Waste

The Department of Justice filed a civil antitrust lawsuit today seeking to block EnergySolutions’ proposed $367 million acquisition of Waste Control Specialists – a transaction that would combine the two most significant competitors for the disposal of low level radioactive waste (LLRW) available to commercial customers in 36 states, the District of Columbia and Puerto Rico.

According to the lawsuit filed in the U.S. District Court for the District of Delaware, the transaction would deny commercial generators of LLRW – from universities and hospitals working on life-saving treatments to nuclear facilities producing 20 percent of the electricity in the United States – the benefits of vigorous competition that has led to significantly lower prices, better service and innovation in recent years.

“Since opening its LLRW disposal facility in 2012, Waste Control Specialists has provided EnergySolutions the only real competition it has ever faced,” said Acting Assistant Attorney General Renata Hesse of the department’s Antitrust Division.  “This competition has allowed customers to extract better prices and to receive better and more innovative service in the LLRW disposal industry.  If consummated, EnergySolutions’ proposed acquisition of Waste Control Specialists would make EnergySolutions the only option for customers in nearly 40 states.  And this at a time when projects worth billions of dollars are set to be awarded in the coming years.”

LLRW is the radioactive byproduct of nuclear power generation, scientific research and certain medical treatments.  LLRW includes such items as personal protective clothing, tools, water purification filters and resins, hardware from nuclear power plants, and equipment from medical and research institutions.  LLRW may only be disposed of in a facility licensed by, or pursuant to an exemption provided by, the Nuclear Regulatory Commission (NRC) or a state acting under an agreement with the NRC.  LLRW disposal is an essential service for operating nuclear reactors, research laboratories and medical facilities.  Additionally, LLRW disposal is a requirement for the safe decommissioning of such facilities when they reach the end of their useful lives.

According to the department’s complaint, EnergySolutions and Waste Control Specialists are the only two significant competitors providing LLRW disposal services to commercial customers in 36 states, the District of Columbia and Puerto Rico.  After nearly two decades of development, Waste Control Specialists became the only new licensed commercial LLRW disposal facility to open since EnergySolutions, and provided EnergySolutions’ only true competition.  That competition has led to increased innovation and lower prices for customers.  EnergySolutions’ acquisition of Waste Control Specialists would eliminate that competition, with no likelihood of new entry to fill the void.

EnergySolutions Inc. is a Delaware corporation headquartered in Salt Lake City, Utah, and is a wholly-owned subsidiary of Rockwell Holdco Inc., also a Delaware corporation.  EnergySolutions is the leading company providing a full range of services related to the disposal of LLRW and the decommissioning of nuclear reactors.  In 2015, EnergySolutions’ U.S. revenues from LLRW disposal were approximately $112 million.

Waste Control Specialists LLC is a Delaware limited liability company headquartered in Dallas, Texas, and is a wholly-owned subsidiary of Andrews County Holdings Inc., a Delaware corporation.  It operates the only LLRW disposal facility that is licensed to accept all types of LLRW from 36 states, Puerto Rico and the District of Columbia.  In 2015, Waste Control Specialists’ revenues were approximately $45 million.

EnergySolutions Complaint

A federal grand jury sitting in Macon, Georgia returned an indictment against a resident of Columbus, Georgia on Nov. 9, which was unsealed today, for his role in a stolen identity refund fraud conspiracy, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney G.F. Peterman III for the Middle District of Georgia.

According to the indictment, Harold Coley worked as a mail carrier for the U.S. Postal Service and his postal route was in Columbus, Georgia.  In 2012, Coley became involved in a stolen identity tax refund conspiracy.  Coley’s co-conspirators, including Keshia Lanier, obtained stolen personal identification information from several sources, including from an Alabama state database and then prepared and filed false federal income tax returns for tax years 2011 and 2012.  Coley provided his co-conspirators with addresses on his postal route to which the fraudulently obtained tax refund checks could be mailed.  Several of these addresses did not exist or were for vacant homes.  Coley was paid a fee to divert and provide these checks to his co-conspirators. 

If convicted, Coley faces a statutory maximum sentence of 10 years in prison for the conspiracy count, 20 years in prison for each mail fraud count, five years in prison for each theft of mail count, and a mandatory minimum sentence of two years in prison for aggravated identity theft.  In addition to the charges, Coley faces a forfeiture claim of approximately $924,000, a period of supervised release, and monetary penalties.

An indictment merely alleges that crimes have been committed. All defendants are presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Peterman commended special agents of Internal Revenue Service-Criminal Investigation, the U.S. Secret Service, and the U.S. Postal Service Office of Inspector General, who conducted the investigation, and Trial Attorney Michael C. Boteler of the Tax Division and Assistant U.S. Attorney Crawford L. Seals of the Middle District of Georgia, who are prosecuting the case. 

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

Courts also Order Defendants to Disgorge Ill-Gotten Gains totaling $10.5 Million

Today, a federal district court in Orlando, Florida barred the former LBS Tax Services franchisor, Walner Gachette, from preparing tax returns and entered a $5 million judgment against him. According the government’s complaint, Gachette was responsible for growing LBS Tax Services from a single store in Orlando in 2008 to 239 stores in 2013 located in Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and Texas, with a stated goal of 1,000 stores by 2016.  Since September 2014, the United States filed 11 lawsuits in Orlando, Miami and Tampa, Florida against Gachette and 14 former LBS franchisees and managers to bar each from owning or operating a tax return preparation business and preparing tax returns for others. 

The former LBS Tax Services franchisees and managers sued by the government include Douglas Mesadieu of Orlando, Florida; Jean Demesmin of Mt. Dora, Florida; Tonya Chambers of Winter Garden, Florida; Kerny Pierre-Louis of Windermere, Florida; Jehoakim Victor of Orlando, Florida; Lauri Rodriguez of Tampa, Florida; Demetrius Scott of Orlando, Florida; Jason Stinson of Longwood, Florida; Wilfred Antoine of Lake Worth, Florida; Milot Odne of Tampa, Florida; Alexander Baraz of Spring Hill, Florida; Patrick Clarke of Hallandale Beach, Florida; Ruby Rodriguez of Orlando, Florida; and Christopher Lawrence of Coral Springs, Florida. The government alleged that many of these former LBS franchisees and managers initially operated their tax returns preparation stores as “LBS Tax Services,” but later changed their stores’ names. The United States also sued Kenneth Aikens of Brooklyn, New York, who worked for Lawrence as a tax preparer and manager before Aikens assumed ownership of several tax return preparation stores in the Miami area, according to the government’s complaint.

According to the United States’ complaints, at least 239 tax preparation stores were affiliated with LBS Tax Services in 2013.  These 239 stores – 192 of which were owned by the defendants –  prepared more than 55,000 federal income tax returns, according to the government’s complaints. The United States alleged that the defendants targeted primarily low-income customers with deceptive and misleading advertisements (one such advertisement frequently used by the defendants’ stores suggests that potential customers will receive a tax refund of more than $3,000 “per child”), prepared and filed false tax returns that unlawfully increased their customers’ refunds, and profited by charging excessive preparation fees – all at the expense of their customers and the U.S. Treasury.

According to the complaints, fraudulent schemes and practices occurred at the defendants’ stores which overstated customers’ federal income tax refund by:

• Falsely claiming the Earned Income Tax Credit by inflating or decreasing a customer’s income or deductions;
• Claiming improper filing statuses that increase the amount of the standard deduction (e.g. claim the head of household status for married customers who are ineligible to do so);
• Fabricating self-employment businesses and related business income and expenses;
• Fabricating deductions such as charitable contributions and unreimbursed employee business expenses, including improperly deducting business mileage based on customers’ nondeductible commuting mileage; and
• Falsely claiming education credits.   

In addition to these fraudulent schemes and practices, the defendants charged excessive fees for each additional tax form attached to the tax return, according to the government’s complaints. After preparing and filing the returns based on the unlawful practices detailed above, the defendants allegedly subtracted fees directly from the refunds.  According to the complaints, the defendants’ customers were often unaware of the fees that the defendants reaped. In an attempt to increase their profits, the defendants’ stores allegedly implemented “$999 charge weeks,” during which the stores would charge as many customers as possible $999 for the preparation of a tax return, according to the government’s complaints.

Through the case against Gachette and the other lawsuits, federal courts in Orlando and Miami, permanently barred Gachette, Mesadieu, Demesmin, Chambers, Pierre-Louis, Scott, Antoine, Lawrence, Aikens, Victor, and Rodriguez from owning tax preparation businesses and preparing tax returns.  In addition, these courts have also ordered many of the defendants to disgorge to the United States the proceeds that they received through their tax preparation businesses.  Judgments were entered in favor of the United States and against Gachette in the amount of $5 million, against Lawrence in the amount of $1.4 million, against Demesmin, Pierre-Louis, and Scott in the amount of $1 million each, against Aikens and Chambers in the amount of $500,000 each, and against Antoine in the amount of $100,000.

In addition to these final judgments and permanent injunctions, courts have entered preliminary injunctions in cases still pending against Stinson, Odne and Baraz.  Odne and Baraz consented to these preliminary injunctions; however, Stinson did not. The Eleventh Circuit Court of Appeals upheld the preliminary injunction against Stinson issued by a federal court in Orlando, Florida. The preliminary injunctions bar these individuals from owning and operating tax preparations businesses and preparing tax returns while the lawsuits against them are pending.

Return preparer fraud is one of the IRS's Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

A congressional staffer pleaded guilty today to willfully failing to file an individual income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Dana J. Boente for the Eastern District of Virginia.

According to court filed documents, Issac Lanier Avant, a resident of Arlington, Virginia, is a staff member who has been employed by the U.S. House of Representatives since approximately 2000.  Despite earning more than $165,000 each year from 2008 through 2013, Avant failed to timely file personal income tax returns for any of those years.  Avant filed returns for tax years 2006 and 2007, but those returns each contained false deductions. 

In May 2005, Avant caused a form to be filed with his employer that falsely claimed he was exempt from federal income taxes.  Avant did not have any federal tax withheld from his paycheck until the Internal Revenue Service (IRS) mandated that his employer begin withholding in January 2013.

Sentencing is scheduled for Jan. 17, 2017.  Avant faces a statutory maximum sentence of one year in prison, a term of supervised release and monetary penalties.  As part of his plea agreement, Avant agreed to pay restitution in the amount of $153,522 to the IRS.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Boente thanked special agents of IRS-Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney Jack Hanly and Assistant Chief Todd Ellinwood of the Tax Division, who are prosecuting the case.

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

Rahimi Allegedly Detonated and Attempted to Detonate Bombs on Public Streets in the Chelsea Neighborhood of Manhattan

Ahmad Khan Rahimi aka Ahmad Rahami, 28, of Elizabeth, New Jersey, was charged today in Manhattan federal court in an eight-count indictment for offenses related to his alleged execution and attempted execution of bombings in New York City on Sept. 17, announced Acting Assistant Attorney General for the National Security Division Mary B. McCord and U.S. Attorney Preet Bharara for the Southern District of New York.  The case is assigned to U.S. District Judge Richard M. Berman for the Southern District of New York.

“Ahmad Khan Rahimi has been indicted in New York and separately charged in New Jersey for allegedly planting and detonating bombs that resulted in numerous injuries,” said, Acting Assistant Attorney General McCord.  “It was through world class investigative work that the defendant was identified and arrested before he could do any more harm.  Pursuing those who seek to conduct attacks on our homeland will always remain the highest priority of the National Security Division.”

“Two months ago, Ahmad Khan Rahimi allegedly planted bombs in the heart of Manhattan and in New Jersey,” said U.S. Attorney Bharara.  “The bomb that exploded in Chelsea shattered windows hundreds of yards away and propelled a 100-pound dumpster over 120 feet, injuring over 30 people.  Now indicted by a grand jury, Rahimi will face justice in a federal court for his alleged violent acts of terrorism.”

As alleged in the criminal complaint that was filed on Sept. 20 and the indictment that was filed today:

On Sept. 17, Rahimi transported two improvised explosive devices from New Jersey to New York.  Rahimi placed one of the devices in the vicinity of 135 West 23rd Street in the Chelsea neighborhood of New York (the 23rd Street Bomb) and the other in the vicinity of 131 West 27th Street in the Chelsea neighborhood (the 27th Street Bomb). 

At approximately 8:30 p.m., the 23rd Street Bomb – consisting of a high explosive main charge – detonated, causing injuries to over 30 people and multiple millions of dollars of property damage across a 650-foot crime scene.  The injuries included, among other things, lacerations to the face, abdomen, legs and arms caused by flying glass; metal shrapnel and fragmentation embedded in skin and bone and various head injuries.  The explosive components appear to have been placed inside a pressure cooker and left in a dumpster.  The explosion propelled the more than 100-pound dumpster more than 120 feet.  The blast shattered windows as far as approximately 400 feet from the blast site and, vertically, more than three stories high. 

Shortly after the 23rd Street Bomb detonated, the 27th Street Bomb was located by law enforcement.  The 27th Street Bomb, which failed to detonate, consisted of, among other things, a pressure cooker connected with wires to a cellular telephone, likely to function as a timer, and packaged with an explosive main charge, ball bearings and steel nuts. 

Earlier that day, at approximately 9:35 a.m., another improvised explosive device, which also was planted by Rahimi, detonated in the vicinity of Seaside Park, New Jersey, along the route for the Seaside Semper Five Marine Corps Charity 5K race.  The start of the race – which was scheduled to begin at 9:00 a.m. – was delayed on account of other law enforcement activity. 

On Sept. 18, at approximately 8:40 p.m., additional improvised explosive devices that Rahimi also planted were found inside a backpack located at the entrance to the New Jersey Transit station in Elizabeth.  One of these devices detonated as law enforcement used a robot to attempt to defuse it.

On Sept. 19, at approximately 9:30 a.m., Rahimi was arrested by police in Linden, New Jersey.  Rahimi fired multiple shots at police, striking and injuring multiple police officers before he was himself shot, subdued and placed under arrest.  In the course of Rahimi’s arrest, a handwritten journal was recovered from Rahimi’s person.  Written in the journal were, among other things, mentions of explosive devices and laudatory references to Usama Bin Laden, the former leader of al Qaeda, Anwar al-Awlaki, a former senior leader of al Qaeda in the Arabian Peninsula and Nidal Hasan, who shot and killed 13 people in Foot Hood, Texas.

*                *                *

Rahimi  is charged in the indictment with one count of using a weapon of mass destruction, one count of attempting to use a weapon of mass destruction, one count of bombing a place of public use, one count of destroying property by means of fire or explosive, one count of attempting to destroy property by means of fire or explosive, one count of interstate transportation and receipt of explosives and two counts of using of a destructive device in furtherance of a crime of violence, namely, the use and attempted use of weapons of mass destruction.

The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendant will be determined by the judge.

In addition to the pending charges in Manhattan federal court, Rahimi also has been charged in the federal court for the District of New Jersey in a complaint with offenses in connection with his alleged efforts to detonate explosives in Seaside Park and Elizabeth and in New Jersey state court for attempted homicide of police officers during his arrest.

U.S. Attorney Bharara praised the outstanding efforts of the FBI’s New York Joint Terrorism Task Force.  U.S. Attorney Bharara also thanked the Counterterrorism Section of the Department of Justice’s National Security Division for its assistance.

The prosecution of this case is being handled by the Office’s Terrorism and International Narcotics Unit.  Assistant U.S. Attorneys Nicholas J. Lewin, Emil J. Bove III, Andrew J. DeFilippis and Shawn G. Crowley are in charge of the prosecution, with assistance from Trial Attorney Brian K. Morgan of the National Security Division’s Counterterrorism Section.

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

A Bay Shore, New York tax return preparer was sentenced to 12 months and one day in prison today in the U.S. District Court for the Eastern District of New York, for aiding and assisting in the preparation of a false tax return for others, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.

According to court documents, Thelma Rodriguez-Garden, 55, owned and operated Garden Insurance Agency Corporation, a tax return preparation business in Suffolk county.  For tax years 2008 through 2011, Rodriguez-Garden prepared false individual income tax returns that included, among other falsities, grossly inflated or wholly fictitious itemized deductions for unreimbursed employee expenses, causing a loss to the Internal Revenue Service (IRS) of at least $107,459.  Rodriguez-Garden pleaded guilty to the charges on March 14.

In addition to the prison term imposed by U.S. District Judge Joseph F. Bianco, Rodriguez-Garden was also ordered to serve one year of supervised release and to pay $107,459 in restitution to the IRS. 

Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who are prosecuting the case.

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

A federal court in Detroit, Michigan has permanently barred a former Liberty Tax Service franchise owner and his operating company from preparing federal tax returns for others, the Justice Department announced today.  The civil injunction order prohibits Craig M. Comer and Comer Inc. from acting as federal tax return preparers and operating a tax return preparation business.  Comer and Comer Inc. agreed to the civil injunction order entered against them.

On Jan. 28, the government filed suit against Comer and Comer Inc. and alleged that their five Detroit area Liberty Tax Service stores prepared federal income tax returns that improperly inflated claims for tax refunds and refundable credits for customers during 2013, 2014 and 2015.  According to the government’s complaint, the defendants also altered completed, customer-signed tax returns to increase the fees they charged customers and then forged the customers’ signatures on the returns when re-signing and filing them with the Internal Revenue Service (IRS).  As of March, Comer and Comer Inc. claimed to no longer own or operate any Liberty Tax Service stores.  Today’s court order, among other prohibitions, bars the defendants from operating a tax return preparation business and includes disbarment from practice before the IRS in any capacity.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016.  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.

 

Defendant Illegally Obtained Federal Contracts Meant for Small, Disadvantaged Businesses

Michelle Cho, an officer of Far East Construction Corporation (Far East) and other construction companies, pleaded guilty today to a federal charge of conspiring to commit wire fraud.  Cho also agreed to pay forfeiture in the amount of $169,166 and pay a criminal fine in the amount of $35,000.

The plea agreement was announced by Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division; U.S. Attorney Channing D. Phillips of the U.S. Attorney’s Office for the District of Columbia; Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office; Inspector General Peggy E. Gustafson for the Small Business Administration (SBA); Inspector General Carol Fortine Ochoa of the U.S. General Services Administration (GSA); Special Agent in Charge Brian J. Reihms of the Central Field Office of the Defense Criminal Investigative Service (DCIS) and Director Frank Robey of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU). 

According to court documents filed as part of the plea, Cho utilized two straw companies, including Far East, to conspire with MCC Construction Company (MCC) and others to defraud the SBA.  Cho’s two companies were eligible to receive federal government contracts set asides for small, disadvantaged businesses.  Cho and MCC understood that MCC would, illegally, perform all of the work on these contracts.  In so doing, MCC was able to win 27 government contracts worth over $70 million from 2008 to 2011.  The scope and duration of the scheme resulted in a significant number of opportunities lost to legitimate small and disadvantaged businesses.

 “Michelle Cho knowingly participated in a long-standing scheme that manipulated federal contracts designated for small, disadvantaged businesses,” said Acting Assistant Attorney General Hesse.  “We will continue to work with our law enforcement partners to protect the integrity of the procurement system.” 

“Michelle Cho sought to unjustly enrich herself by participating in a fraudulent scheme that blatantly undermined a program to designate federal contracts for small disadvantaged businesses,” said U.S. Attorney Phillips.  “Companies that benefit from the Small Business Administration’s 8(a) program are expected to perform the agreed-upon work in return for taxpayer dollars.  This prosecution shows our determination to maintain the integrity of federal contracting programs so that benefits go only to deserving businesses.”
     
“This conspiracy to deceive and defraud the federal government caused funds to be diverted illegally and cheated small businesses out of fair federal contracting opportunities,” said Assistant Director in Charge Abbate.  “The FBI remains vigilant to such abuses of the system and will continue to work with our partners to bring to justice anyone who perpetrates fraud against the government.”

“Today’s guilty plea signifies our commitment to bringing individuals that conspire to fraudulently gain access to set-aside Federal contracting opportunities to justice,” said SBA Inspector General Gustafson.  “Fraudulently passing work to ineligible businesses subverts the intent of SBA’s preferential contracting programs to assist small businesses as engines of economic development and job creation.  I want to thank the U.S. Attorney’s Office and our law enforcement partners for their leadership and dedication to serving justice.”

 “We will continue to investigate and hold accountable those who game the government procurement process at the expense American taxpayers and legitimate small businesses,” said GSA Inspector General Ochoa.

“The Defense Criminal Investigative Service is committed to working with our partner agencies to combat fraud impacting the Department of Defense's vital programs and operations and maintain the integrity of the procurement system,” said Special Agent in Charge Reihms.

“Today's plea is a fitting end for those who conspire to defraud the government,” said Director Robey.  “The Major Procurement Fraud Unit is proud to work with our federal law enforcement partners to protect the coffers of the U.S. government from those who break the law and threaten the readiness of the U.S. Army.” 

Cho, 45, of Downers Grove, Illinois, was charged in a criminal information on October 12, 2016 in the U.S. District Court for the District of Columbia with one count of conspiring to commit wire fraud.  She waived the requirement of being charged by way of federal indictment, agreed to the filing of the information and accepted responsibility for her criminal conduct.  The charge carries a statutory maximum of five years in prison and potential financial penalties.

The Honorable Ketanji Brown Jackson scheduled sentencing for March 7, 2017.
    
The court documents state that Cho and MCC violated the provisions of the SBA 8(a) program, which is designed to award contracts to businesses that are owned by “one or more socially and economically disadvantaged individuals.”  To qualify for the 8(a) program, a business must be at least 51 percent owned and controlled by a U.S. citizen (or citizens) of good character who meets the SBA’s definition of socially and economically disadvantaged.  The firm must also be a small business (as defined by the SBA) and show a reasonable potential for success.  Participants in the 8(a) program are subject to regulatory and contractual limits.  Also, under the program, the disadvantaged business is required to perform a certain percentage of the work.  For the types of contracts under investigation here, the SBA 8(a)-certified companies were required to perform 15 percent or more of the work with its own employees.
    
    Court documents also state Cho conspired with MCC and others for MCC to exercise impermissible control over Far East, to obstruct a U.S. Government Agency proceeding, and to reach an agreement whereby MCC would provide all labor, equipment, materials, safety, and supervision and, in return, receive 97 percent of the contract task order amount.  This agreement by its terms meant that Cho’s company would violate SBA rules and regulations and would collect a 3 percent fee for allowing its small business status to be used.

Earlier this year, MCC pleaded guilty to conspiring to commit fraud on the United States by illegally obtaining government contracts that were intended for small, disadvantaged businesses and agreed to pay $1,769,924 in criminal penalties and forfeiture.  In June, Thomas Harper, another former officer and owner of MCC, pleaded guilty to conspiring to obstruct proceedings before a department or agency.  In August, Walter Crummy, another former officer and owner of MCC, pleaded guilty to conspiring to commit wire fraud.

The investigation is being conducted by the FBI’s Washington Field Office, the Inspector General for the Small Business Administration (SBA), the Inspector General of the U.S. General Services Administration (GSA), the Central Field Office of the Defense Criminal Investigative Service (DCIS) and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit (MPFU). 

The prosecution was handled by Assistant U.S. Attorney John Marston and former Assistant U.S. Attorney Matt Graves of the U.S. Attorney’s Office for the District of Columbia and Trial Attorneys Kevin B. Hart, Justin P. Murphy and former Assistant Chief Craig Y. Lee of the Antitrust Division.

Attorney General Loretta E. Lynch today released the following statement on the passing of Gwen Ifill:

“Gwen Ifill was a pioneering figure in American journalism who quite literally changed the face of the evening news.  She met discrimination and bigotry with talent and focus, rising to become one of the most prominent journalists of her generation.  She pursued her reporting with grace, intelligence and integrity, earning her the trust of countless Americans who counted on her to present the facts of a story without slant or spin.  She asked tough questions and told hard truths, but she always did so in a way that elevated, rather than coarsened, our national discourse.  Our country is a better place because of her commitment to the truth, and she will be sorely missed, both on the air and off.”

Attorney General Loretta E. Lynch released the following statement on the planned departure of U.S. Attorney David Hickton of the Western District of Pennsylvania:

“For the last six years, U.S. Attorney David Hickton has served the people of the Western District of Pennsylvania – and all the American people – with fidelity, integrity and distinction.  Under David’s outstanding leadership, his office has been at the forefront of some of the Justice Department’s most consequential achievements of the last few years.  These include the indictment of five Chinese military hackers for committing cyber espionage, the dismantling of the Darkode hacking forum and the first human trafficking cases to be brought in the Western District of Pennsylvania.  In addition, David has been a tireless advocate of stronger community-police relations and he has been a crucial partner in the fight against the devastating heroin and prescription opioid epidemic.  There is no doubt that the United States is a stronger and safer place because of David’s many contributions.  I thank him for his distinguished service, and I wish him the very best in his future endeavors.”

A Guilford County, North Carolina resident was sentenced to serve 18 months in prison today for aiding and assisting in the preparation of false tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Ripley Rand of the Middle District of North Carolina. 

Marvin Flythe admitted that he ran “TAXHOVA,” a tax preparation business in Greensboro, and maintained a YouTube video channel on which he advertised TAXHOVA.  Between January 2012 and January 2015, Flythe prepared and filed numerous individual income tax returns for clients on which he reported false business losses and false unreimbursed employee business expenses.  Flythe admitted to filing at least 36 false returns for clients, for which $130,949 in fraudulent refunds were paid.  Flythe also admitted to filing false personal returns which underreported his income for tax years 2011, 2012 and 2013 and failing to file his 2014 return.

Flythe pleaded guilty in August to four counts of preparing false individual income tax returns for clients.  In addition to the term of prison imposed, Flythe was ordered to serve one year of supervised release and to pay restitution in the amount of $105,128.04 to the Internal Revenue Service (IRS).

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Rand commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand Ramaswamy of the Middle District of North Carolina, who prosecuted this case.

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

The Justice Department filed a lawsuit today against two Washington-based companies, Washington Potato Company and Pasco Processing LLC, alleging that they violated the Immigration and Nationality Act (INA) by discriminating against immigrants during the employment eligibility verification process because of their citizenship status.

According to the complaint, from at least November 2013 until at least October 2016, Washington Potato and Pasco Processing requested specific limited documentation for the Form I-9 and/or E-Verify from non-U.S. citizen employees, but allowed U.S. citizens the flexibility to present a variety of documents.  Under the INA, all workers, including non-U.S. citizens, must be allowed to choose freely from among the valid documentation that proves their work authorization.  The INA prohibits employers from discriminating by unlawfully limiting some workers’ choices based on their citizenship status.

“Federal law protects individuals with legal work authorization from facing discriminatory obstacles during employment eligibility verification,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “All people with legal employment status in the United States must receive an equal opportunity to prove they can work, regardless of their citizenship or immigration status.”

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

For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php, email osccrt@usdoj.gov; or visit OSC’s website at www.justice.gov/crt/about/osc. 

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

Washington Potato Complaint

Four defendants were sentenced today in connection with a fraudulent Orange County, California, debt relief firm, the Justice Department and U.S. Postal Inspection Service announced.  The defendants all worked at Nelson Gamble and Associates and Jackson Hunter Morris and Knight, companies that offered to settle credit card debts but instead took victims’ payments as undisclosed up-front fees.

“These scams take advantage of consumers already struggling with debt,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work with its law enforcement partners to protect consumers from fraud, especially when they are targeted based on their financially vulnerable conditions.”

“We are gratified by today’s sentencing, on behalf of the many unsuspecting victims who sought financial relief, only to be further burdened by these criminals,” said Inspector in Charge Regina L. Faulkerson of Criminal Investigations, U.S. Postal Inspection Service. “We applaud the work of the Justice Department’s Consumer Protection Branch in bringing these fraudulent credit repair conspirators to justice.”

The sentences were imposed Monday by U.S. District Court Judge Dale Fischer of the Central District of California in Los Angeles.  The four defendants all previously pleaded guilty for their roles in the scheme.

Jeremy Nelson, 31, of Dana Point, California, was sentenced to serve 87 months in prison and ordered to pay $4,225,924 in restitution.  Nelson admitted to being the owner and CEO of the companies and overseeing the scheme

Elias Ponce, 30, of Santa Ana, California, was sentenced to serve 42 months in prison and ordered to pay $$2,340,373 in restitution.  Ponce worked in the “customer service” department and handled complaints.

Christopher Harati, 33, of Long Beach, California, was sentenced to serve 27 months in prison and ordered to pay $408,403 in restitution.  Harati worked with Ponce in customer service at the companies.

Athena Maldonado, 32, of Lake Forest, California, was sentenced to serve  one month in prison and six months home confinement and ordered to pay $130,224 in restitution.  Maldonado handled complaints and held herself out as the vice president of the company’s “legal department.”

Nelson and Ponce both pleaded guilty to one count of conspiracy to commit mail and wire fraud. Harati and Maldonado pleaded guilty to a separate Information charging one count of conspiracy to commit wire fraud. A fifth defendant, John Vartanian, 57, of Newport Beach, California, pleaded guilty to conspiracy in July in connection to his role as a salesman at the companies.  He is scheduled to be sentenced on Nov. 21.

Members of the conspiracy at times portrayed Nelson Gamble and Jackson Hunter as law firms or attorney-based companies.  Clients were told the companies would negotiate favorable settlements with creditors.  Clients made monthly payments expecting the money to go toward settlements.  The conspirators instead took at least 15 percent of the total debt as company fees, with the first six months of payments going almost entirely toward undisclosed up-front fees. 

The scheme ran from February 2010 to September 2012. Nelson changed the name of the company from Nelson Gamble to Jackson Hunter in 2011. Nelson and his co-conspirators told victims that Nelson Gamble had gone bankrupt and that Jackson Hunter was an unrelated company that had taken over some of the accounts. Nelson and his co-conspirators blamed past problems on Nelson Gamble and denied requests for refunds of money paid to Nelson Gamble. Some victims who previously demanded refunds accepted the explanation that Nelson Gamble was bankrupt and did not pursue complaints against Jackson Hunter.

In September 2012, the Federal Trade Commission (FTC) brought a civil case against Nelson and the companies, alleging that the defendants misrepresented debt relief services offered to consumers. (See https://www.ftc.gov/enforcement/cases-proceedings/122-3030-x120048/nelson-gamble-associates-llc-et-al). The case was settled by entry of a consent decree in August 2013.

Principal Deputy Assistant Attorney General Mizer commended the Postal Inspection Service team assigned to the Civil Division’s Consumer Protection Branch for their investigative efforts.  He thanked the U.S. Attorney’s Office for the Central District of California for their contributions to the case and expressed appreciation to the FTC for referring the case to the Consumer Protection Branch. The case is being prosecuted by trial attorneys Alan Phelps and James Harlow of the Consumer Protection Branch. 

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

El Departamento de Justicia interpuso hoy una demanda contra dos empresas con sede en el estado de Washington—Washington Potato Company y Pasco Processing LLC—alegando que violaron la Ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar contra empleados inmigrantes durante el proceso de verificación de la elegibilidad para trabajar con base en su estatus de ciudadanía.

Según la denuncia, desde al menos noviembre del 2013 hasta al menos octubre del 2016, Washington Potato y Pasco Processing solicitaron documentación limitada específica correspondiente al Formulario I-9 y/o E-Verify a los empleados que no eran ciudadanos de EE.UU., mientras le permitieron a empleados ciudadanos de EE.UU. la flexibilidad de presentar una variedad de documentos.  Según INA, se debe permitir a todos los trabajadores, incluso los que no son ciudadanos de EE.UU., que elijan libremente entre la documentación válida para comprobar su autorización para trabajar.  INA prohíbe que los empleadores discriminen al limitar ilícitamente las opciones que se les permite a los trabajadores con base en su estatus de ciudadanía.

"Las leyes federales protegen a las personas con autorización legal para trabajar ante los obstáculos discriminatorios durante la verificación de la elegibilidad para trabajar," dijo la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, encargada de la División de Derechos Civiles del Departamento de Justicia.  "Todas las personas con estatus legal para trabajar en los Estados Unidos deben tener igualdad de oportunidades para comprobar que pueden trabajar, independientemente de su estatus de ciudadanía o estatus migratorio."

La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a Inmigración (OSC, por sus siglas en inglés) es responsable de hacer cumplir la disposición antidiscriminatoria de INA.  Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; las prácticas documentales injustas; las represalias y la intimidación.

Para mayor información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración, llame a la línea directa de la OSC para trabajadores al 1‑800-255-7688 (1-800-237-2515, TTY para las personas con dificultades auditivas); llame a la línea directa de la OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para las personas con dificultades auditivas); inscríbase a un seminario gratis en línea al www.justice.gov/crt/about/osc/webinars.php, correo electrónico osccrt@usdoj.gov; o visite el sitio web de la OSC al www.justice.gov/crt/about/osc.

Los postulantes o empleados que crean que les han obligado a cumplir con requisitos documentales diferentes con base en su estatus de ciudadanía, estatus migratorio u origen nacional; o que hayan sufrido discriminación por motivos de su estatus de ciudadanía, estatus migratorio u origen nacional en la contratación, despido o reclutamiento o en la recomendación de empleo por comisión; deben comunicarse con la línea directa de la OSC para trabajadores para solicitar ayuda.

Used Warehouse Bank, Prepaid Debit Cards, Cashier’s Checks, and Postal Money Orders to Conceal Income and Assets From IRS

A Point Richmond, California man was sentenced to serve 33 months in prison yesterday for tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Brian J. Stretch of the Northern District of California. 

In June, Richard Thomas Grant, 63, was found guilty of three counts of tax evasion following a jury trial in Oakland, California.  In 2001, Grant stopped filing individual income tax returns and paying income taxes despite the fact that he received significant income as a partner with Grant Engineering & Manufacturing, an engineering company in Richmond.  In 2003, Grant stopped filing annual partnership returns for Grant Engineering, even though he continued to pay a CPA to prepare these returns.  That same year, Grant became a member of Freedom Law School and paid thousands of dollars in yearly membership fees.  While the Internal Revenue Service (IRS) attempted to collect unpaid taxes owed by Grant for 2001 and 2002, and attempted to examine Grant’s taxes for subsequent years, Grant, with the assistance of Freedom Law School and its founder, Peymon Mottahedeh, attempted to frustrate the IRS’s actions by, among other things, filing multiple and ultimately unsuccessful law suits in various jurisdictions. 

For the charged years 2005 through 2009, Grant’s partnership income was $509,339, $566,741, $486,062, $598,977 and $604,706, respectively.

In an effort to conceal his assets and income, in 2005, Grant significantly curbed the use of his checking accounts and began depositing his partnership distributions at a warehouse bank known as MyICIS in Berryville, Arkansas.  Warehouse banks can be used to conceal ownership of funds in part by commingling such funds with those of other individuals.  Between April 2005 and October 2006, Grant wrote hundreds of checks drawn on the MyICIS account and funded multiple prepaid debit cards.  Grant used the checks and debit cards to pay his mortgage and other personal expenses.

After the federal government shut down MyICIS, Grant used another bank to convert his partnership distributions to cashier’s checks and cash in order to avoid depositing the funds into a bank account and used the cashier’s checks to pay his mortgage and other high-dollar personal expenses.  He also used cash to purchase dozens of U.S. Postal money orders to pay other bills and expenses, including utilities, taxes and expenses related to his classic aircraft.   

In addition to the term of prison imposed, Grant was also ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $402,457.39.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Stretch commended agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Colin Sampson and Trial Attorney Matthew Kluge of the Tax Division, who prosecuted the case.

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

  

The Justice Department and the Department of Housing and Urban Development (HUD) released updated guidance today on the application of the federal Fair Housing Act (FHA) to state and local land use and zoning laws.  The guidance is designed to help state and local governments better understand how to comply with the FHA when making zoning and land use decisions as well as to help members of the public understand their rights under the FHA.

“The Fair Housing Act helps protect open, free and integrated communities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Government officials, housing providers and the general public need to understand how land use and zoning decisions can create barriers to equal housing opportunity.  We hope this guidance will help communities make these decisions free from discrimination.”

“Zoning and land use are inherently local decisions,” said Gustavo Velasquez, Assistant Secretary for Fair Housing and Equal Opportunity for the Department of Housing and Urban Development.  “This updated guidance will help give localities and the American people a clearer line of what could constitute housing discrimination under the federal Fair Housing Act.  Cities will also have more resources to understand their fair housing rights and responsibilities in the course of making decisions related to various types of housing, including group homes for residents with disabilities.”

The FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status (residing with children under 18).  The statute bars state and local governments from enacting or enforcing land use and zoning laws, policies, practices and decisions that discriminate against persons because of a protected characteristic, such as race, national origin or disability. 

The updated guidance, issued in the form of questions and answers, covers:

• How does the Fair Housing Act apply to state and local land use and zoning?
• When does a land use or zoning practice constitute intentional discrimination in violation of the Fair Housing Act?
• Can state and local land use and zoning laws or practices violate the Fair Housing Act if the state or locality did not intend to discriminate against persons on a prohibited basis?
• Does a state or local government violate the Fair Housing Act if it considers the fears or prejudices of community members when enacting or applying its land use laws respecting housing?
• What is a group home within the meaning of the Fair Housing Act?
• In what ways does the Fair Housing Act apply to group homes?
• How does the Supreme Court’s ruling in Olmstead v. L.C. apply to the Fair Housing Act?
• Can a state or local government impose health and safety regulations on group home operators?
• Can a state or local government impose spacing requirements on the location of group homes for persons with disabilities?
• When does a state or local government violate the Fair Housing Act by failing to grant a request for a reasonable accommodation?

The guidance is available online at https://www.justice.gov/crt/fair-housing-policy-statements-and-guidance-0.  The Justice Department and HUD share responsibility for enforcing the FHA.  HUD is the agency with the primary responsibility to investigate individual complaints of discrimination.  The Secretary of HUD, on his own initiative, may file complaints alleging discrimination.  In addition, the Attorney General may commence a civil action in federal court when she has reasonable cause to believe that person(s) are engaged in a pattern or practice of discrimination or that a group of persons has been denied rights protected by the FHA.

More information about the Justice Department’s Civil Rights Division and the laws it enforces is available at https://www.justice.gov/crt.  More information about HUD and the civil rights laws it enforces is available at  www.hud.gov/fairhousing.

Individuals who believe that they may have been victims of housing discrimination may contact the Justice Department at 1-800-896-7743, or they may email DOJ at fairhousing@usdoj.gov.  They may also contact HUD at 1-800-669-9777.

Joint Statement on Land Use

Attorney General Loretta E. Lynch recognized 376 Justice Department employees for their distinguished public service today at the 64th Annual Attorney General’s Awards Ceremony.  Forty-seven other individuals outside of the department were also honored for their work.  This annual ceremony recognizes individuals for their outstanding service and dedication to carrying out the missions of the Department of Justice. 

“The Attorney General’s Awards provide us with a rare opportunity to honor the efforts of outstanding department employees and our invaluable partners across the federal government and at the state and local levels,” said Attorney General Lynch.  “Their work has made our nation – and our world – stronger, safer and more just, and I am proud of and inspired by each and every one of them.”

The Attorney General’s David Margolis Award for Exceptional Service is the department’s highest award for employee performance.  This year’s award was presented to the team responsible for the investigation and prosecution of Dzhokhar Tsarnaev.  On April 15, 2013, Dzhokhar and Tamerlan Tsarnaev detonated two powerful improvised explosive devices near the Boston Marathon finish line, killing three, maiming 17 and injuring hundreds more in the largest mass-casualty terrorist attack on U.S. soil since Sept. 11, 2001.  Following a manhunt during which the brothers killed a Massachusetts Institute of Technology police officer, Tamerlan Tsarnaev was killed in a shoot-out with police and Dzhokhar Tsarnaev was arrested.  Members of the FBI’s Boston Field Office oversaw a worldwide investigation that involved more than 6,000 items of physical and digital evidence, over 100,000 photographs and videos and more than 1,000 witness interviews.  Tsarnaev was charged in a 30-count indictment with numerous crimes of terrorism and other violent offenses.  Over the course of a 10-week trial, the prosecution team introduced over 1,000 exhibits and called more than 100 witnesses to the stand, including 14 victims who lost limbs in the bombings; family members of the murdered; other survivors and eye witnesses; fingerprint, DNA, bomb, ballistics and terrorism experts; and law enforcement officers.  The prosecutors also cross-examined nearly 50 defense witnesses during the penalty-phase defense case.  A jury found Tsarnaev guilty on all 30 counts in the indictment.  He was sentenced to death on six counts and to life in prison on 11 other counts, and was ordered to pay $101 million in restitution to the victims.

The recipients of the Attorney General’s David Margolis Award for Exceptional Service include, from the U.S. Attorney’s Office of the District of Massachusetts, Assistant U.S. Attorneys Aloke S. Chakravarty, James B. Farmer and William D. Weinreb, Community Outreach Program Manager Cara M. Henderson, Acting Executive Officer Christina DiIorio-Sterling and Victim/Witness Specialist Kathleen M. Griffin and Jessica M. Pooler; from the U.S. Attorney’s Office of the Southern District of Texas, Assistant U.S. Attorney Steven D. Mellin; from the Criminal Division’s Capital Case Section, Trial Attorney Jeffrey B. Kahan; from the FBI’s Legal Attache in Ottawa, Supervisory Special Agent Courtland D. Rae; from the FBI’s Boston Field Office, Special Agents David S. Bell and Timothy D. Brown and Photographer Michelle M. Gamble; from the National Security Division’s Counterterrorism Section, Trial Attorneys David P. Cora, Gregory R. Gonzalez and Joseph N. Kaster, Legal Administrative Specialist Pamela J. Hall, Litigation Support Manager Laura P. Galban and Paralegal Specialist Jamie M. Haydel; from the U.S. Marshals Service (USMS) District of Massachusetts, Supervisory Deputy U.S. Marshal Kevin W. Neal, Acting Chief Deputy U.S. Marshal Jeffrey L. Bohn, Deputy U.S. Marshals Jesse Donaruma, Matthew Lawlor and Robert M. Lima and Protective Intelligence Investigator Jonathan A. Lemay; from the USMS Judicial Security Division, Assistant Chief Inspector Gregory C. Petchel; from the USMS Prisoner Operations Division, Assistant Chief Inspector Charles Hardison; from the USMS Tactical Operations Division, Deputy Commanders Harry W. Little and Mark S. Walker and Special Operations Group Inspectors Richard “Todd” Jordan and Leigh N. Marchegiani; and from the U.S. Department of the Navy’s Naval Criminal Investigative Service, Special Agent Christopher J. Bould.

The Attorney General’s Award for Exceptional Heroism is given to recognize an extraordinary act of courage and voluntary risk of life during the performance of official duties.  The recipients of the Attorney General’s Award for Exceptional Heroism are, from the USMS Northern District of Indiana, Supervisory Inspector Diego Grimaldo, Investigative Operations Division Inspector Erick D. Brown and Deputy U.S. Marshal Kenneth E. Hausmann.

While working on a task force investigating the location of a dangerous fugitive, who was wanted in Indiana for multiple counts of attempted murder and aggravated battery with a firearm, Grimaldo, Brown and Hausmann tracked the fugitive to his sister’s apartment.  The team was joined by officers from the Chicago Police Department (CPD).  As they approached the apartment, the group encountered gunfire coming from inside the building.  A captain with the CPD was struck in the head and shoulder and fell to the ground.  Hausmann immediately administered first aid to the captain, while Grimaldo and Brown returned gunfire.  Within minutes, Grimaldo managed to make his way to a nearby apartment, signal to officers to call an ambulance and organize a plan to safely evacuate the injured captain.  As Hausmann assisted with safely evacuating the captain to the ambulance, the fugitive continued to engage Grimaldo and Brown in gunfire.  SWAT team members soon arrived and eventually took the fugitive into custody.  Thanks to the team’s extraordinary courage in carrying out their duties under a life-threatening situation, the police captain survived and has returned to full duty.

The Mary C. Lawton Lifetime Service Award recognizes employees who have served at least 20 years in the department and have demonstrated high standards of excellence and dedication throughout their careers.  This award is presented only in exceptional circumstances to those individuals of special merit and is not awarded to express general appreciation for tenure alone.  This year’s Mary C. Lawton Lifetime Service Award is presented to Monty Wilkinson, Director of the Executive Office for U.S. Attorneys.

In his 25 years with the department, Wilkinson has been a skilled and respected manager whose leadership has made a tremendous impact in his offices, in his community and in the department as a whole.  Throughout his career, Wilkinson has abided by a leadership style that focuses on nurturing relationships, fostering respect, maximizing potential, maintaining excellence, promoting a strong sense of service and achieving results.  He has served in leadership roles in the U.S. Attorney’s Office for the District of Columbia, the Office of the Deputy Attorney General, the Office of the Attorney General and the Executive Office for U.S. Attorneys.  In each position, Wilkinson has excelled by personifying professionalism, wisdom, judgment, savvy, dedication and perseverance.

The William French Smith Award for Outstanding Contributions to Cooperative Law Enforcement is an honorary award granted to recognize state and local law enforcement officials who have made significant contributions to cooperative law enforcement endeavors.

This year’s recipients are, from the Detroit Police Department, Sergeants Ian M. Becker and David Wasmund and Task Force Officers Jason R. Criner, Treva L. Eaton, Darell Fitzgerald and Anthony Jones; from the Livonia Police Department, Sergeant Gregory Yon; from the Oakland County Sheriff’s Office, Task Force Officer Brian W. Behrend; from the Michigan State Police, Task Force Officers Jacob D. Liss, Todd A. Poppema, William F. Prince and Korey A. Rowe; from the Dearbon Police Department, Task Force Officer Steven Faith; and from the Wayne County Sheriff’s Department, Task Force Officers Daniel J. Carmona, Raymon M. Alam, Brian Rinehart and David Weinman.

On March 2, 2015, the USMS Task Force in Indianapolis requested aid from the USMS Detroit Fugitive Apprehension Team to assist with an Amber Alert case for two children abducted at gunpoint from their homes in Indiana.  The team immediately responded by coordinating with multiple state and local law enforcement and the Detroit FBI Violent Crimes Task Force, resulting in a quick and thorough investigation and rescue of the two children.  The recipients’ experience in cooperative law enforcement was evident in the swift and safe rescue and arrests that occurred without harm to the children or the community.  The established partnerships and cooperation between the federal, state and local law enforcement agencies were crucial to the successful investigation and rescue in this abduction case and in the many other cases the team works on a daily basis.  The team’s performance, dedication and cooperative efforts saved the lives of two abducted children and made the community’s period of fear short-lived.  The lives of the children could have turned out very differently if not for the excellent participation and cooperative interagency effort made by the six state and local law enforcement agencies that make up this team of exceptional officers.

The Attorney General’s Award for Meritorious Public Service is the top public service award granted by the department, and is designed to recognize the most significant contributions of citizens and organizations that have assisted the department in the accomplishment of its mission and objectives.  This year’s recipient is Michael J. Nila, the founder of Blue Courage.

Nila is honored for his significant contributions to state and local law enforcement and communities nationwide.  During his law enforcement career, he recognized a significant gap between what we want our country’s police officers to be and how the law enforcement profession is currently educating its personnel.  To address this gap, Nila developed Blue Courage, a blend of education, principles, practices, skills and tools that foster a culture of leadership, character and service.  Blue Courage focuses on the heart and mind which represents the foundation to making good decisions and enhancing the capacity to serve honorably.  Today, over 10,000 officers have been trained in Blue Courage and its principles are now infused in recruiting and police academy curricula in four states, with an additional 10 states competing to go through the process.  As a direct result of Blue Courage training, officers are more in tune with and aware of their thoughts and behaviors.  Furthermore, they have tools to become centered and balanced, and are reminded of why they joined the law enforcement profession.  Through Blue Courage, Nila has demonstrated he is a committed and effective partner in the department’s efforts to inspire and engage our nation’s state and local law enforcement officers, and to strengthen relationships with communities nationwide.

The Edward H. Levi Award for Outstanding Professionalism and Exemplary Integrity is presented to pay tribute to the memory and achievements of former Attorney General Edward H. Levi, whose career as an attorney, law professor, dean and public servant exemplified these qualities in the best traditions of the department.  This year’s award is presented to Lee J. Lofthus, the Assistant Attorney General for Administration.

Lofthus exemplifies the very best in executive leadership and has demonstrated three decades of dedication to public service which have resulted in outstanding organizational achievements.  As the U.S. Department of Justice’s Senior Management Official, he provides effective leadership, directing diverse and complicated financial and budgetary programs, human resources, procurement, facilities, security and information technology activities.  His career in public service has been distinguished by an unfaltering dedication to lead, motivate and inspire people.  His vision, adaptability and commitment to customer service enable him to direct organizations through many complex endeavors and times of uncertainty.  He has transformed the department’s administrative processes through innovative technologies and the recruitment and retention of talented and diverse leadership.  On the financial side, since 2004, Lofthus accomplished a rare feat in that he was able to get clean audits for the department for 12 straight years and for nine straight years, the auditor’s report on internal control identified no material weaknesses at the consolidated level.  Lofthus has played a central role in developing budget strategies in direct response to the initiatives of several Attorneys General in the areas of counterterrorism, national security and the administration of justice.  He has provided unmatched leadership in initiatives to provide funding to state and local law enforcement entities throughout the department.  Lofthus is well-known and respected in a variety of public and private arenas, and he is commonly sought out to advise and speak on a variety of challenging government-wide financial and budgetary-based initiatives.

The Attorney General’s Award for Distinguished Service is the Justice Department’s second-highest award for employee performance.  The recipients of this award exemplify the highest commitment to the department’s mission.  Seventeen Distinguished Service Awards are presented this year to individuals or teams of people.

The first Distinguished Service Award is presented to, from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF’s) Violent Crime Intelligence Division, Special Agents Tolliver L. Hart and Clinton F. Kehr, Intelligence Research Specialists Lianne S. Binckes, Robert D. Blevins and Jenise Ramos, Industry Operations Intelligence Specialists Jill M. Hansen and Nicholas A. Speranza Jr., Intelligence Program Specialist Daniel R. Mullins, Information Technology Specialists Laurie J. Powers and John E. Trice and Management Analyst Rhonda M. Butler; and from ATF’s Office of Chief Counsel, Attorney Ellen V. Endrizzi.

ATF’s Internet Investigations Center (IIC) is recognized for its outstanding determination, perseverance and subject-matter expertise to support ATF’s work to combat internet-based firearms crimes and related violations.  The team, in conjunction with department guidance, drafted ATF’s internet investigations policy and established numerous standard operating procedures for ATF’s investigative and intelligence footprint online.  The recipients also provided current, pertinent training to law enforcement audiences both inside and outside of ATF.  Through the use of advanced technology, coupled with finely honed analytic and investigative skills, IIC personnel made its mark on illegal firearms transactions on all levels of the internet.  This work was not only commended by partner law enforcement agencies, but the team was also recognized by an illicit Darknet vendor that named ATF specifically as one of the reasons it ceased illegal firearms transactions on its website.

The second Distinguished Service Award is presented to, from the Antitrust Division’s Litigation III Section, Section Chief David C. Kully and Trial Attorneys William H. Jones II, John R. Read, Adam C. Speegle and Nathan P. Sutton; from the Antitrust Division’s Appellate Section, Section Chief Kristen C. Limarzi and Trial Attorney Shana M. Wallace; from the Antitrust Division’s Washington II Criminal Section, Trial Attorney Daniel McCuaig; from the Antitrust Division’s Economic Regulatory Section, Assistant Section Chief Jeffrey M. Wilder and Economist Alexander Raskovich; from the Antitrust Division’s Economic Litigation Section, Economists William T. Whalen and Tor Winston; from the Antitrust Division Litigation II Section, Assistant Section Chief Stephanie A. Fleming; and from the Criminal Division’s Appellate Section, Trial Attorney Finnuala K. Tessier.

The Antitrust Division’s victory against Apple Inc. for orchestrating a conspiracy to raise the prices of e-books represents one of the most significant civil litigation victories that the division has achieved in over a decade, and it has led to state attorneys general and private plaintiffs recovering on behalf of harmed consumers approximately $566 million in damages.  The recipients represented the United States in trial against Apple in June 2013 and successfully defended the case against Apple’s appeal.  In April 2010, when Apple launched its iBookstore and entered the e-books market, U.S. e-book prices rose uniformly, in some instances as much as 50 percent.  The division launched an investigation into possible coordination among e-book publishers and Apple and, in April 2012, brought suit in the U.S. District Court for the Southern District of New York alleging a conspiracy to raise e-book prices in violation of Section 1 of the Sherman Act.  Over the course of the litigation, all the publishers settled with the federal government.  However, Apple aggressively litigated the matter through a three-week trial in June 2013 before U.S. District Judge Denise Cote, who issued a 160-page order finding Apple liable for orchestrating a scheme among five of the six largest book publishers to raise e-book prices in violation of Section 1 of the Sherman Act.  Apple’s vigorous efforts to pursue the matter on appeal ended in March 2016 when the Supreme Court of the United States (SCOTUS) rejected Apple’s petition for certiorari to review the Second Circuit’s decision affirming Judge Cote’s order.  The litigation of this action and the precedent created by the trial court’s and Second Circuit’s decisions should deter those who in the future might contemplate violating U.S. antitrust laws.

The third Distinguished Service Award is presented to, from the Antitrust Division’s New York Office, Section Chief Jeffrey D. Martino and Trial Attorneys Bryan C. Bughman, Joseph Muoio Jr. and Carrie A. Syme; from the Antitrust Division’s Chicago Office, Trial Attorney Eric L. Schleef; from the Antitrust Division’s Washington Criminal I Section, Trial Attorney George S. Baranko; from the Criminal Division’s Fraud Section, Principal Deputy Chief Sandra L. Moser, Deputy Chief Benjamin Singer and former Deputy Chief Daniel A. Braun, Assistant Chief Albert B. Stieglitz Jr. and Trial Attorneys Melissa Aoyagi and Gary A. Winters; and from the FBI’s Washington Field Office, Special Agents Jennifer Riker and Jeffrey Weeks and Forensic Accountant Kyle D. Dornbos.

The recipients, through their leadership, dedication and tireless investigation of price fixing and bid rigging, are responsible for the historic prosecution of five of the world’s largest financial institutions that agreed to pay fines in excess of $2.7 billion.  The investigation uncovered a conspiracy that affected the U.S. Dollar to Euro exchange rate.  These currencies are at the heart of international commerce, and the conspiracy undermined the integrity and the competitiveness of foreign currency exchange markets which account for hundreds of billions of dollars of transactions every day.  The companies responsible for actions that eliminated competition in the marketplace were held accountable for their illegal conduct, which will hopefully deter financial institutions from chasing profits without regard to fairness, the law or the public welfare.

The fourth Distinguished Service Award is presented to, from the Office of the Solicitor General, Assistant to the Solicitor General Eric J. Feigin; from the Civil Rights Division’s Appellate Section, Chief Diana K. Flynn, Principal Deputy Chief Sharon M. McGowan and Trial Attorney Robert A. Koch; and from the Civil Division’s Appellate Staff, Director Douglas N. Letter and Attorneys Jeffrey E. Sandberg and Abby C. Wright.

In Obergefell v. Hodges, SCOTUS struck down state bans on marriage equality that denied to same-sex couples and their children the protections and benefits of marriage.  In doing so, SCOTUS granted LGBT individuals equal access to marriage and vindicated the Obama Administration’s strong interest in the eradication of discrimination on the basis of sexual orientation.  This team is honored for its extraordinary work in this historic case.  Under immense time pressures, the recipients worked collaboratively to craft a compelling, persuasive and successful legal brief on a seminal civil rights issue.  The brief reiterated the department’s US v. Windsor position that classifications based on sexual orientation should trigger heightened scrutiny and described the harm that the state bans inflicted on same-sex couples and their families.  In June 2015, SCOTUS issued a powerful decision extending the right to marry to same-sex couples and joining the ranks of landmark civil rights pronouncements from the court. 

The fifth Distinguished Service Award is presented to, from the Criminal Division’s Human Rights and Special Prosecutions Section, Deputy Chief Matthew R. Stiglitz, Special Counsel Stacey Luck and Paralegal Specialist Linda Faulk; from the Criminal Division’s Office of International Affairs, Associate Director Magdalena Boynton; from the Criminal Division’s Narcotic and Dangerous Drug Division, Judicial Attaché Marlon Cobar; from the U.S. Attorney’s Office of the Eastern District of Virginia, Assistant U.S. Attorney Michael P. Ben’Ary; from the FBI’s Miami Field Office, Special Agent Charles M. Bryden and Supervisory Intelligence Analyst Raquel de la Huerta; from the FBI’s Counterterrorism Division, Supervisory Special Agent Rodney Cortes; from the FBI’s Criminal Investigative Division, Unit Chief Edgar Cruz; from the FBI’s Legal Attaché Santo Domingo, Supervisory Special Agent N.I. Delgado Jr.; from the FBI’s Legal Attaché Bogota, Supervisory Special Agent Andres E. Quintero; from the FBI’s Washington Field Office, Special Agent Beau Bourgeois; and from the U.S. Department of State’s Bureau of Diplomatic Security, Special Agent Suhaib Karim Qureshi.

On June 20, 2013, DEA Special Agent James Terry Watson was stabbed to death during an attempted kidnapping and robbery perpetrated by an organized group of taxi drivers in Bogota.  A team of investigators and prosecutors was assembled, and working with their Colombian counterparts, they quickly identified seven individuals responsible for the murder and subsequent destruction of evidence.  In an example of teamwork and coordination at its best, a complaint was filed and arrest warrants were obtained for the suspects within four days of the crime; within 18 months, the defendants’ extraditions were secured and they were all convicted.  Because of the diligent work of those assigned to the case, justice was served for the family of Special Agent Watson. 

The sixth Distinguished Service Award is presented to, from the Criminal Division’s Child Exploitation and Obscenity Section, Chief Steven J. Grocki and Deputy Chief Keith A. Becker; from the Criminal Division’s Computer Crime and Intellectual Property Section, Trial Attorney Sarah Chang; from the Criminal Division’s Office of International Affairs, Senior Trial Attorney Judith Friedman; from the Criminal Division’s Appellate Section, Attorney David M. Lieberman; from the U.S. Attorney’s Office of the District of Nebraska, Senior Litigation Counsel Michael. P. Norris and Paralegal Specialist Harolene J. Bailey; from the FBI’s Office of the General Counsel, General Attorney Joanne C. Pasquarelli; from the FBI’s Criminal Investigative Division, Unit Chief Alan S. Nanavaty, Supervisory Special Agents K. Paul Cha, J. Brooke Donahue and P. Michael Gordon and Intelligence Analyst Robert Plumb; from the FBI’s Cyber Division, Supervisory Special Agent Steven A. Smith Jr.; from the FBI’s Critical Incident Response Group, Supervisory Special Agent Daniel E. O’Donnell; and from the FBI’s Omaha Field Office, Special Agents Sara K. Stanley and Jeffrey D. Tarpinian.

The recipients are recognized for their involvement in Operation Torpedo, a precedent-setting investigation that used first-of-its-kind techniques to infiltrate the dark internet and identify individuals who, under the perceived cloak of anonymity, secretly congregated to trade images of children being sexually abused and to celebrate the sexual abuse of children.  By developing and deploying a network investigative technique, with appropriate legal authority, investigators were able to identify members of three websites devoted to child pornography that were operating on an anonymous network.  The investigation required round-the-clock efforts from agents, analysts and prosecutors, and rapid response to fast-breaking developments.  Prosecutors successfully defended these novel investigations in court and have obtained convictions at every turn.  The impact of this investigation cannot be overstated.  It has pioneered investigative work into the dark web that has led to subsequent significant investigations by the Criminal Division and the FBI; the dismantling of more than 100 child exploitation websites; and the seizure of massive amounts of child exploitation material, the largest seizure of virtual currency to date and the discovery of 120 victims of child sexual exploitation.

The seventh Distinguished Service Award is presented to Deputy Chief Franz R. Marshall of the Civil Rights Division’s Educational Opportunities Section.  Marshall is recognized for his remarkable 43 years of service to the department, virtually all of which has been spent in the Civil Rights Division, where he has dedicated each day to breaking down barriers to educational opportunities for students across the country.  Over the course of his career, he has represented the United States in hundreds of desegregation cases and through this work, Marshall has fiercely protected and embodied a core and founding mission of the Civil Rights Division, dismantling obstacles to opportunity and success in America’s public schools.  Furthermore, Marshall has shaped the legal landscape and cleared paths to a better life for countless students.  He has given voice to children and parents in communities throughout the United States, from Native Americans in the Four Corners to African Americans in the Louisiana Bayou.  In short, no department lawyer has done more to open the schoolhouse doors to all children and to fulfill the principles and promise of Brown v. Board of Education.

The eighth Distinguished Service Award is presented to, from the Environment and Natural Resources Division’s Environmental Enforcement Section, Section Chief Thomas A. Mariani Jr., Assistant Section Chief William D. Brighton, Senior Litigation Counsel e-Discovery Sarah D. Himmelhoch, Senior Counsels Patrick M. Casey, Scott M. Cernich, Deanna J. Chang, Michael J. McNulty and Michael J. Zevenbergen, Senior Attorneys Nancy A. Flickinger and Steven R. O’Rourke, Trial Attorneys Abigail E. André and Rachel A. Hankey and Supervisory Paralegal Specialist Mark Fuller; from the Environment and Natural Resources Division’s Appellate Section, Trial Attorney Ellen J. Durkee; from the Environment and Natural Resources Division’s Law and Policy Section, Trial Attorney Judith B. Harvey; from the Civil Division’s Torts Branch - Aviation and Admiralty Section, West Coast Field Office Attorney-in-Charge R. Michael Underhill,  Assistant Director Stephen G. Flynn, Senior Admiralty Counsel Michelle T. Delemarre, Trial Attorneys Malinda R. Lawrence, Jessica L. McClellan, Jill D. Rosa, Sharon K. Shutler and Jessica G. Sullivan; and from the Civil Division’s Commercial Litigation Branch – Fraud Section, Senior Trial Counsel Daniel A. Spiro.

To redress the BP/Deepwater Horizon disaster, the largest oil spill in U.S. history, this team successfully pursued the companies responsible for this multimillion-barrel oil spill.  The recipients resolved the nation’s civil claims against those companies for more than $6.6 billion in civil penalties; more than $8 billion in natural resource damages; hundreds of millions of dollars in cleanup, assessment and other costs; and injunctive relief that should make for safer drilling operations in the Gulf of Mexico.  Under applicable law, the majority of these funds will fuel restoration of natural resources and some economic redevelopment in the Gulf of Mexico region.  The matter is the department’s largest-ever environmental enforcement effort.  The team’s work also made it possible for the five Gulf states and their local governments to settle their economic damage claims for sums approaching another $5.9 billion.

The ninth Distinguished Service Award is presented to Assistant U.S. Attorneys Michelle B. Alvarez, Jeffrey N. Kaplan, Lawrence D. LaVecchio, Alison W. Lehr, Paul F. Schwartz, Evelyn B. Sheehan and Madeleine Shirley of the U.S. Attorney’s Office for the Southern District of Florida.

In October 2009, it was discovered that attorney Scott Rothstein was conducting one of the largest Ponzi schemes in American history through the operation of the Ft. Lauderdale, Florida, law firm of Rothstein Rosenfeldt & Adler P.A. (RRA).  The basis of the scheme was the sale of securities in which investors purchased the rights to a stream of payments from corporate entities which ostensibly had reached confidential settlements with purported plaintiffs in sexual harassment, employment discrimination and whistleblower cases.  Settlements were available for purchase in amounts ranging from hundreds of thousands to tens of millions of dollars.  During the operation of the scheme, hundreds of investors remitted more than $1.2 billion to RRA, which funds were utilized to pay previous investors in the scheme to finance a lavish lifestyle for the participants, and to make political and charitable contributions which enhanced the prestige and visibility of RRA, thereby enhancing RRA’s ability to attract new investors.  During the ensuing six years of litigation, 29 defendants, including attorneys and public officials, were convicted and sentenced on charges including racketeering, wire fraud, money laundering, income tax fraud, campaign finance violations, obstruction of justice, extortion and civil rights violations.  Additionally, through forfeiture proceedings instituted by the government, coupled with proceedings in bankruptcy court and other ancillary civil proceedings, more than $400 million in assets were ultimately recovered, resulting in full restitution to the defrauded investors.

The 10th Distinguished Service Award is presented to, from the U.S. Attorney’s Office of the Southern District of New York, Assistant U.S. Attorneys John P. Cronan, Edward Y. Kim, Ian McGinley and Shane T. Stansbury, Criminal Investigator George F. Corey Jr. and Paralegal Specialists Melissa C. Danzo and Vanessa Quinoñes; from the FBI’s New York City Field Office, Special Agents Jonathan B. Geraci and Philip A. Swabsin; from the FBI’s New Haven Field Office, Supervisory Special Agent Michael S. Butsch; and from the National Security Division’s Office of the Assistant Attorney General, Deputy Assistant Attorney General George Z. Toscas.

For upwards of a decade, Abu Hamza stood as one of the most powerful, dangerous and recognizable terrorist leaders on the planet.  Through his oratorical skills and sophisticated use of the internet, he indoctrinated his young, impressionable followers with his murderous message, inspiring the likes of Richard Reid, Zacarias Moussaoui and Mohammed Siddiqui Kahn.  Additionally, Abu Hamza himself engaged in acts of terror that spanned the globe including the December 1998 hostage-taking in Yemen, which included two U.S. citizens and left four victims dead; the attempt to establish a terrorist training camp for al Qaeda on U.S. soil in late 1999; sending of one of his devoted followers to Afghanistan in 2000 to train and fight with al Qaeda; and supporting the Taliban from 2000 to 2001.  Abu Hamza was arrested in the United Kingdom in 2004, but fought extradition for nearly a decade before he was extradited in October 2012.  In preparing for trial, the recipients analyzed massive volumes of evidence recovered from across the globe, and identified witnesses in multiple continents to build and solidify a criminal case.  The team also engaged in classified and unclassified litigation leading to and during trial, working in close coordination with the U.S. intelligence community to protect national security equities.  Overcoming the inherent challenges in prosecuting a case where the conduct occurred approximately 15 years earlier, and where the evidence and witnesses were spread across the globe, the team secured a conviction on all 11 counts.  Furthermore, Abu Hamza has been permanently incapacitated from future terrorist acts.

The 11th Distinguished Service Award is presented to, from the FBI’s Washington Field Office, Supervisory Special Agent William J. DelBagno; from the FBI’s Seattle Field Office, Supervisory Special Agent Christian L. Parker, Special Agents Eric Jon Barker, Ryan D. Butler and David S. Whitlow, Forensic Accountant Jennifer J. Boswell, Intelligence Analyst Mark J. Fitterer and Staff Operations Specialist Morgan L. Reid; from the FBI’s International Operations Division, Supervisory Special Agent James B. Volkert; from the FBI’s Weapons of Mass Destruction (WMD) Directorate, Supervisory Intelligence Analyst Christina Ruetschlin; from the FBI’s Miami Field Office, Special Agent Paul C. Clark; from the FBI’s Pittsburgh Field Office, Special Agent James K. Shearer; from the FBI’s San Francisco Field Office, Special Agent Mike P. Stahala; from the FBI’s New York City Field Office, Special Agent Sara H. Wood; and from the U.S. Attorney’s Office of the Eastern District of Washington, Assistant U.S. Attorney Timothy Ohms.

The recipients are recognized for their involvement in Operation Short Fuse (OSF), an innovative online undercover operation operated by the FBI’s Seattle Division and WMD Directorate.  OSF employs a highly specialized cadre of online covert employees and confidential human sources to detect, target and disrupt WMD threat actors operating in cyberspace.  The operation works to fill a critical detection and intelligence gap by resolving the identity of subjects who have demonstrated the intent and capability to manufacture, distribute or purchase WMD while operating in anonymized, hidden marketplaces and forums devoted to the sale of prohibited items.  OSF team members are subject matter experts in WMD investigations and the innovative use of online undercover techniques designed to pierce the veil of anonymity that most OSF subjects attempt to erect through the use of layered complex encryption and crypto-currency.  To date, OSF has conducted undercover targeting operations in support of 95 FBI investigations, many of which began as a result of OSF intelligence collection.  OSF has been responsible for the disruptions of 18 subjects who attempted to purchase, sell and/or use chemical, biological, radiological, nuclear and explosive materials in the United States and across the globe.  These disruptions, often executed in coordination with international partners, undoubtedly prevented a significant loss of innocent life that would have otherwise resulted absent this sustained and extraordinary law enforcement effort.

The 12th Distinguished Service Award is presented to, from the U.S. Attorney’s Office of the Northern District of New York, Assistant U.S. Attorneys Steven D. Clymer, Lisa M. Fletcher and Tamara B. Thomson; from the FBI’s Albany Field Office, Special Agent Frederick E. Bragg; and from the FBI’s Washington Field Office, Special Agent Alix Skelton.

This team receives the award for its exceptional work in the case of US v. Stephen M. Howells II and Nicole Vaisey, which led to the recovery of two young girls who had been abducted, held captive and abused; the identification of four additional children who had been victimized by Howells and Vaisey; and the seizure of recordings and images of the defendants’ sexual abuse of children, as well as a large volume of child pornography depicting the sexual abuse of hundreds of other children, including infants and toddlers.  This team’s herculean effort, thorough investigation and analysis, and exemplary advocacy led to the conviction of Howells and Vaisey on all charges and their sentences to 580 and 300 years of imprisonment, respectively, the aggregate statutory maximums.

The 13th Distinguished Service Award is presented to, from the U.S. Attorney’s Office of the District of Colorado, Assistant U.S. Attorneys Bishop Grewell, Suneeta Hazra and Valeria N. Spencer, Financial Analyst Dana L. Chamberlin, Victim/Witness Specialist Donna R. Summers and Supervisory Legal Assistant Valerie J. Nielson; from the FBI’s Denver Field Office, Special Agents Christopher A. Calarco, Jonathan D. Grusing and Patrick A. Kleckner; and from the U.S. Department of the Interior, Rocky Mountain National Park Special Agent Elizabeth A. Shott.

The team in US v. Henthorn is honored for its outstanding, innovative work in the investigation, trial and conviction of Harold Henthorn for pushing his wife to her death from a remote cliff to collect $4.5 million dollars in life insurance.  Due to their dedication, painstaking work and powerful trial presentation, the recipients did what many thought was impossible by obtaining a conviction in this difficult and wholly circumstantial case.  The team not only proved that Henthorn murdered his second wife but that he had also murdered his first wife some 20 years earlier.  Through the course of hundreds of witness interviews, thousands of hours of work, meticulous analysis of computer forensic evidence, cell tower records and bank records, the team decisively proved that Henthorn carefully planned and executed two cold-blooded murders.  Furthermore, the team convinced the jury to hold Henthorn accountable and found justice for the victims and their families.

The 14th Distinguished Service Award is presented to, from the U.S. Attorney’s Office of the Central District of California, Assistant U.S. Attorneys Brandon D. Fox, Gregory A. Lesser, Lizabeth A. Rhodes and Ryan D. White; Legal Assistant Georgina Y. Moreno and Paralegal Specialist Adriana Abalos; and from the FBI’s Los Angeles Field Office, Special Agents David N. Dahle, Jason D. Dalton, Carlos A. Narro and Leah M. Tanner.

This team receives the award for the historic prosecution of the former Los Angeles County Sheriff and 17 other law enforcement officers who obstructed a federal investigation and used excessive force against those they were charged with protecting.  The recipients convincingly showed that no one is above the law; just as important, they showed that no one is beneath the protections of the law.  The team proved through its tireless efforts and perseverance that the department will uphold civil rights for all Americans and that attempts at obstructing federal investigations will be taken seriously.

The 15th Distinguished Service Award is presented to, from the FBI’s Washington Field Office, Cyber Division Supervisory Special Agent Brenda K. Born, Supervisory Special Agent Andrew Patrick Leithead, Special Agents Sean P. Clark, Jenny M. Cutalo-Patterson, Tonya Sturgill Griffith, Alicia M. McShane and Jennifer N. Edwards and Intelligence Analyst Heather L. Gordon Ph.D.; from the U.S. Attorney’s Office of the District of Columbia, Assistant U.S. Attorneys Andrea L. Hertzfeld, Cassidy M. Pinegar, Ari B. Redbord and Lindsay J. Suttenberg and Computer Forensic Examiner John E. Marsh; and from the Washington, D.C., Metropolitan Police Department, Detectives Jonathan K. Andrews Sr. and Timothy R. Palchak.

The Washington Metro Child Exploitation Task Force has played an instrumental role in identifying, disrupting and dismantling the most egregious perpetrators in child exploitation and human trafficking within the greater Washington, D.C., metropolitan area and beyond its area of responsibilities.  This team is recognized for its extraordinary dedication, innovative techniques and commitment in identifying and prosecuting these offenders.  During 2014 and 2015, the work of the recipients resulted in the rescue of numerous children who were victims of ongoing abuse and exploitation.  The task force also assisted in identifying and locating more than 60 victims of sexual abuse and child pornography. 

The 16th Distinguished Service Award is presented to, from the National Security Division’s Office of Intelligence, Supervisory Attorney-Advisors Alexandra Doumas, Stephen C. Eglin, Wendy L. Fritz and Kimberly A. Roemer.  This team is honored for its exemplary leadership in response to an unprecedented and unrelenting series of terrorist threats against the U.S. homeland.  As the supervisors of the National Security Division’s Office of Intelligence Counterterrorism Unit, the awardees worked almost around-the-clock for several months to ensure that the FBI had at its disposal the legal authorities needed to further its investigations, including authorities under the Foreign Intelligence Surveillance Act.  The team helped to advance critical counterterrorism investigations which resulted in the thwarting of various plots, and ultimately saving lives.

The 17th Distinguished Service Award is presented to, from the Office of the Inspector General (OIG) Evaluation and Inspections Division, Senior Inspector Kathleen E. Flanagan and Program Analysts Tanique D. Carter and Michael H. Chang.

This team led a comprehensive review of the impact that an aging inmate population has on the Federal Bureau of Prisons (BOP).  The elimination of parole, use of mandatory minimum sentences, increases in average sentence length over the past three decades and an increase in white collar offenders and sex offenders, among other things, have contributed to the aging federal inmate population.  The recipients were in the field for eight months, interviewing nearly 170 officials and staff from each of the BOP’s eight divisions, as well as 13 institutions.  The team conducted site visits of institutions at all security levels, and did extensive document reviews and quantitative analysis spanning a five-year period.  Policies applying to various aspects of the care of aging inmates were numerous and scattered among different program areas.  To overcome limitations in available data, the team conducted wide-ranging quantitative analyses.  The OIG report, issued in May 2015, found that aging inmates are more costly to incarcerate due to increased medical needs, that the physical infrastructure of BOP institutions limits the availability of appropriate housing for aging inmates and that BOP does not provide programming opportunities designed to meet their particular needs.  The report also found that aging inmates engage in fewer misconduct incidents while incarcerated and, based on statistical review, appear to have a lower rate of re-arrest once released.  Beyond merely identifying these issues, the report provided eight concrete recommendations to address them in order to assist BOP in managing its aging inmate population.  After reviewing the report and recommendations, the BOP created formed an interdisciplinary task force to address a number of the recommendations.

The Attorney General’s Award for Exceptional Service in Indian Country recognizes extraordinary efforts by department employees who demonstrate the department’s commitment to fighting crime in Indian Country.  This year’s award is presented to, from the Criminal Division’s Human Rights and Special Prosecutions Section, Trial Attorney J. Michael Sheckels; from the Criminal Division’s Appellate Section, Trial Attorney Richard A. Friedman; from the U.S. Attorney’s Office of the Eastern District of Oklahoma, Assistant U.S. Attorney Edward Snow; from the FBI’s Oklahoma City Field Office, Supervisory Special Agent John W. Fitzer and Special Agent Joshua W. Martin; from the Oklahoma State Bureau of Investigation, Special Agent John Jones; and from the Seminole Nation Lighthorse Police, Chief Kent Dowell

On March 3, 2004, David Magnan entered a house on an Indian allotment in rural Seminole County, Oklahoma, and with premeditation shot three Native American occupants to death as they lay in their beds.  Originally convicted in state court under the misapprehension of the status of the land where the house was located, that conviction was set aside in 2013 after the 10th Circuit Court of Appeals determined that the Indian title to the land had not been extinguished.  Working at great disadvantage given the passage of time, this team worked tirelessly to locate the witnesses and evidence necessary to secure a conviction at trial on all three murder counts, keep a dangerous killer off the streets and obtain justice for the victims’ families.

The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers of the Department of Justice.  Two Awards for Excellence in Law Enforcement are presented this year.

The first award recognizes, from the DEA’s Miami Field Office, Group Supervisor Jarod A. Forget, Special Agents John P. Garcia, Amber M. McKeone and Robert J. Roth and Intelligence Analyst Christine M. Galluccio; from the U.S. Attorney’s Office of the Southern District of Florida, Assistant U.S. Attorney Marton Gyires; from the Fort Lauderdale Police Department, Detective Karin Alvarez; from the city of North Miami Beach Police Department, Sergeant William Beauparlant; from the Davie Police Department, Detective Lisa V. Choquette; from the Coconut Creek Police Department, Detective Angela L. Hofer; from the city of Coral Springs Police Department, Detective Chad L. Kuschel; and from the Miami-Dade Police Department, Detective Robert D. Love.

Operation Driving Dirty dismantled the Consolidated Priority Organization Target linked to transnational drug trafficking organizations, to include the Los Urabeños, at an unprecedented rate.  The recipients worked extensively with foreign DEA offices and host country counterparts in China, Hong Kong, Guatemala, Venezuela, Chile, Colombia, Mexico, Spain, Panama, Canada and the Netherlands.  The international partnerships were unparalleled as Operation Driving Dirty led to significant worldwide seizures, arrests and prosecutions.  As a result of leads provided to the DEA Caracas Country Office, Venezuelan counterparts seized $7 million, deemed one of the largest currency seizures in that country’s history.  Additionally, while working with its partners at the U.S. Attorney’s Office, the team conducted a substantial financial investigation into the drug trafficking organization’s money laundering operations, which led to the civil forfeiture of numerous bank accounts.  This cooperative effort with the U.S. Attorney’s Office led to the arrest and prosecution of over 50 high-level defendants to include the regional priority organization target, Ronen Nahmani, who was identified as one of the largest synthetic marijuana distributors in the United States.  To this end, Operation Driving Dirty led to seizures totaling 6,349 kilograms of cocaine, 28 kilograms of heroin, 15 pounds of methamphetamine, 100 pounds of synthetic marijuana and precursor chemicals, 21 weapons and $30 million.

The second award recognizes, from the FBI’s Weapons of Mass Destruction Directorate, Supervisory Special Agent Scott J. Hopper; from the FBI’s Newark Field Office, Supervisory Special Agent Drew T. Wasson; Special Agents Kate Fila-Stillings, Tara Jerussi and Chetwyn M. Jones, Supervisory Foreign Language Program Coordinator Joseph Brunetto, Computer Scientist Field Operations Alberto Carranza and Forensic Accountant Paul Robert Miccarelli; from the FBI’s Baltimore Field Office, Special Agent Robert W. Keller; from the FBI’s Atlanta Field Office, Special Agent Myles C. McLaughlin; from the FBI’s New York City Field Office, Special Agent Thomas Parisi; from the U.S. Attorney’s Office of the District of New Jersey, Assistant U.S. Attorneys Dennis C. Carletta and Peter W. Gaeta; and from the U.S. Department of Commerce, Special Agent Robert Dugan.

In December 2011, FBI opened a five-year investigation into ABN Universal Inc.  Early investigative techniques revealed the U.S.-based owner and operator of ABN was Alexander Brazhnikov.  Through an exhaustive use of human sources, video surveillance, forensic reconstruction, grand jury subpoenas, search warrants, Title III surveillance of emails and computer analysis, the investigation revealed that ABN was procuring dual-use microelectronics from U.S.-based manufacturers on behalf of Russian companies directly associated with the Russian military and intelligence services.  Moreover, employees of ABN were devaluing the price of exported products to Russia and using front company addresses in Moscow, an offshore virtual private network and an international network of shell companies to conceal the intended end-users from U.S. law enforcement.  The investigative team worked diligently to overcome each of these obfuscation techniques to ultimately reveal the totality of Brazhnikov’s criminal offenses.  As a result of the investigation, in June 2014, an arrest warrant for Brazhnikov was issued for his illegal smuggling of export controlled U.S.-sourced goods to Russia and for conducting $65 million in money laundering.  In June 2015, Brazhnikov pleaded guilty to conspiracy to smuggle goods from the U.S., conspiracy to commit money laundering and conspiracy to violate the International Emergency Economic Powers Act.  Brazhnikov also admitted to smuggling microelectronics to Russian defense contractors known to supply the Russian military and intelligence services, to include two Russian nuclear warhead design institutes.  As a result of his guilty plea, the District Court of New Jersey issued a money judgment against Brazhnikov for $65 million.

The Attorney General’s Award for Excellence in Management recognizes outstanding administrative or managerial achievements which have significantly improved operations or productivity, or reduced costs.  Two Excellence in Management Awards are presented this year.

The first Excellence in Management Award recognizes, from the Civil Division’s Torts Branch-Constitutional and Specialized Tort Litigation Section, Supervisory Legal Administrative Specialist Sherlita R. Tyson, who is honored for her superb management of the Radiation Exposure Compensation Act (RECA) Program’s team of 16 claims examiners and contractors.  RECA was enacted by Congress in 1990 to provide a non-adversarial alternative to litigation to compensate individuals who faced increased risk of disease as a result of the United States’ national security interests in the Cold War-era nuclear testing program and uranium ore processing operations.  In her position, Ms. Tyson hires, trains and develops program staff, providing them with the structure, guidance and direction necessary for their contributions to the complex RECA claims process.  Through daily, hands-on management, as well as close coordination with RECA leadership, Ms. Tyson significantly contributed to the program’s banner success in 2015, with over 2,000 claims adjudicated and $100 million paid to eligible claimants.  Fiscal year 2015 also saw two critical achievements attributed to Ms. Tyson’s management skills.  In March, RECA surpassed $2 billion in compassionate payments, a testament to the success and integrity of the innovative, streamlined payment system she developed.  Ms. Tyson also led a two-year project to close out previously adjudicated claims, and within 13 months, her team cleared out an 11,000-claim backlog.  Ms. Tyson’s extraordinary contributions and her ability to motivate and focus her staff demonstrate her pursuit of excellence in managing the RECA program.

The second Excellence in Management Award recognizes, from the Justice Management Division, Library Staff Director Dennis G. Feldt.  Feldt is recognized for his sustained innovative leadership of the Library Staff, through which he has modernized the nation’s law library to ensure a cost-effective, customer service-oriented operation that meets the myriad needs of the department’s more than 114,000 employees nationwide.  Feldt’s skillful leadership ensures that department employees, including attorneys and law enforcement personnel, can meet the mission of the department on a daily basis.  Feldt has proven himself a creative and adaptable leader who has achieved exceptional program results through his modernization efforts by expanding research capabilities through digitization, enhancing training opportunities and enabling mobile and remote access across the country.  Through outreach to the department’s components, he has realized cost savings of almost $2 million through subscription consolidation and online resource utilization.  Feldt successfully raises awareness of the library services and resources by increasing the innovative training programs for department attorneys and other employees.  Because of his forward thinking, his staff successfully taught 72 onsite training classes, conducted 127 legal database and online research demonstrations, conducted 11 remote legal research training sessions and provided 41 one-on-one customized training sessions throughout the year benefitting more than 2,000 department attorneys and paralegals.  During this same timeframe and under his leadership, his staff successfully responded to over 50,000 general and legal reference, project-based and research requests, ensuring that department customers continued to benefit from “one-stop” comprehensive electronic and mobile legal research tools.  Feldt directs and provides valuable and unique research services to include expert witness, corporate and people and public records research.  He is held in high regard as a leader, supervisor and service provider to the department, and he remains vigilant of opportunities to innovate and to enhance the department’s research and training capabilities.

The Attorney General’s Award for Excellence in Information Technology recognizes outstanding achievements in applying information technology to improve operations and productivity, reduce or avoid costs, and solve problems.  This year’s award is presented to, from the Justice Management Division’s Cybersecurity Services Staff, Deputy Assistant Attorney General and Chief Information Officer Joseph F. Klimavicz, Deputy Chief Information Officer Kevin T. Deeley, Chief Information Security Officer Melinda Rogers, Assistant Directors Brian M. Depasse, Ryan A. Higgins and Nickolous B. Ward, Supervisory IT Specialist Kevin S. Cox, IT Specialists Nickole M. Arbuckle, Peter W. Crichlow, David C. Denis, Jeremy B. Greenland, John Miles, Scott K. Morrison, Josephine A. Peters, Larry T. Tun, Brian R. Varine and Kevin H. Yasuda.

Over the last year, the department’s cybersecurity team has made significant enhancements to address the rapidly-changing cyber threat landscape, as the department’s mission makes it a high-value target for adversaries attacking U.S. national security assets.  This team implemented and continues to manage solutions which thwart adversaries’ attempts to breach the department’s network, gain access to sensitive information and critically harm national security.  These solutions provide the department with the ability to detect and mitigate advanced persistent threats, monitor malicious encrypted internet traffic, prevent data loss by encrypting personally identifiable information.  This fiscal year, the team’s enhancements stopped 55,000 malicious e-mails and 900 malicious web sessions.  Also as a result, fewer cyber incidents occur, fewer remediation efforts are required and the department realized $8 million in cost avoidance.  In addition, the team developed robust internal applications, Security Posture Dashboard Reporting and the Cyber Security Assessment and Management system to continuously monitor and analyze department-wide cybersecurity posture and Federal Information Security Management Act compliance.  These applications allow for the transparent measurement, comparison and analysis of each component’s security environment.  Without the efforts of this team, the department could see a large-scale cybersecurity incident, resulting in incalculable damage to the department’s personnel, information and mission.

The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security recognizes outstanding achievements and contributions in protecting U.S. national security.  Two Excellence in Furthering the Interests of U.S. National Security Awards are presented this year.

The first Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security is presented to members of the U.S. delegation in the unprecedented multi-year negotiation and conclusion of a complex agreement with the European Union (EU) on the protection of the privacy of personal information transferred internationally in law enforcement matters.  Additionally, the recipients engaged in an equally unprecedented process of drafting and enactment of legislation that implemented the above-described agreement, which extended key aspects of the Privacy Act to EU citizens. 

The award is presented to, from the Criminal Division’s Office of the Assistant Attorney General, Deputy Assistant Attorney General and DOJ Counselor for International Affairs Bruce C. Swartz; from the Criminal Division’s Office of International Affairs, Acting Deputy Director Kenneth J. Harris, Associate Director Thomas Burrows, Department of Justice Representative to the European Union Michael C. Olmsted and Senior Counsel to the European Union Stewart C. Robinson; from the Office of the Deputy Attorney General, Chief Privacy and Civil Liberties Officer Erika Brown Lee; from the Antitrust Division’s Office of the Chief Legal Advisor, Deputy Chief Legal Advisor Belinda A. Barnett; from the Civil Division’s Federal Programs Branch, Deputy Director Elizabeth J. Shapiro; from the DEA’s Office of the General Counsel, Attorney Chad T. Sarchio; from the FBI’s National Security Law Branch, Assistant General Counsel Seth M. Oppenheim; from the FBI’s Office of General Counsel, General Attorney Monica E. Ryan; and from the National Security Division’s Office of Law and Policy, Attorney-Advisor Jocelyn A. Aqua.

The second Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security is presented to, from the U.S. Attorney’s Office of the Eastern District of Virginia, Assistant U.S. Attorneys Michael R. Gill and James P. Gillis and Paralegal Specialist Tonya L. Dandridge; from the FBI’s Baltimore Field Office, Supervisory Special Agent Ronald P. Comers; from the FBI’s Washington Field Office, Special Agents Marlo D. Arredondo, Michael A. Burgwald and Eric E. Glassie; from the FBI’s Legal Attaché in London, Supervisory Special Agent John David Kuchta; from the FBI’s Office of General Counsel, General Attorney Lubaina B. Qaiyumi; from the National Security Division’s Counterterrorism Section, Trial Attorney Jennifer E. Levy and Legal Administrative Specialist Katarina A. Porter; from from the U.S. Department of Defense (DoD) Defense Criminal Investigative Service, Special Agent Alan M. Ferrell; and from the DoD Office of the General Counsel, Counsel Brent C. Harvey.

US v. Irek Ilgiz Hamidullin was a first-of-its-kind, Article III prosecution of a foreign terrorist who was captured in November 2009 by the U.S. military on a battlefield in Afghanistan.  The investigation and prosecution lasted five years from capture to conviction, and the case required a massive interagency team of attorneys, law enforcement agents and support staff to work together, effectively navigating complex and unique challenges in a sensitive national security matter.  Hamidullin was convicted by a federal jury of all 15 indicted counts, which included charges of providing material support to terrorists, attempted murder of U.S. military personnel, conspiracy to use a weapon of mass destruction and possession of a firearm in connection with a crime of violence.  In December 2015, Hamidullin was sentenced to serve life plus 30 years in prison.

The Attorney General’s Award for Equal Employment Opportunity (EEO) is the department’s highest award for performance in support of the EEO program.  This year’s award is presented to the Diversity and Inclusion Dialogue Program (DIDP) project team for the outstanding leadership of its members in growing and sustaining this unique diversity initiative in the department.  The DIDP provides a safe, open, structured and confidential environment for employees to openly and honestly explore a full spectrum of diversity and inclusion topics and ways in which these aspects of diversity affect our ability to work more effectively together and foster a more inclusive work environment.  Using facilitated dialogue on a range of topics over a six-month period, expertly led by trained members of the project team, employees learned skills to address, rather than avoid, difficult diversity topics.  They also developed depth in their relational and teamwork skills, while extending their network in the department.  Following a successful pilot year, the DIDP project team undertook the challenge of building the program.  With strong support from their component leadership and diversity groups, the project team recruited participants within and across components; used their EEO and diversity expertise to tailor the DIDP materials to the department’s needs; and continued to build the facilitator cadre using in-house resources.  Evaluations by program participants uniformly contained high praise for the program structure and leadership.  The DIDP is an effective vehicle to develop the respect, understanding and open communication of the department’s employees, and the DIDP project team is a model of the multi-component cooperation that is essential for the sustainable implementation of such a vital and critical program.

The recipients include, from the Office of the Associate Attorney General, Deputy Associate Attorney General for Diversity Management Richard L. Parker; from the Antitrust Division, Litigation II Section Section Chief Maribeth Petrizzi, Foreign Commerce Section Trial Attorney Melanie Krebs-Pilotti and Transportation, Energy and Agriculture Section Trial Attorney Jade A. Eaton; from the Federal Bureau of Prisons’ Office of Conflict Resolution, EEO and Diversity, Supervisory Attorney-Advisor Carolyn Vines Sapla; from the Environment and Natural Resources Division, Deputy Assistant Attorney General Jean E. Williams and Senior Counsel for Indian Affairs Gina L. Allery; from the Office of the General Counsel, Supervisory Attorney Rico M. Sogocio; from the Executive Office for Immigration Review, Diversity Coordinator Kimberly R. Wilkins; from the Tax Division’s Civil Trial Section, Southern, Trial Attorney Steven C. Woodliff; from the Tax Division’s Civil Trial Section, Eastern, Supervisory Trial Attorney Robert D. Metcalfe; from the Tax Division’s Civil Trial Section, Western, Supervisory Litigation Assistant Daffney T. Archer; from the Tax Division’s Office of Management and Administration, Program Analyst Elizabeth D. Preston; and from the Tax Division’s Office of Review, Section Chief Ann C. Reid.

The Attorney General’s Award for Excellence in Legal Support recognizes outstanding achievements in the field of legal support to attorneys by paralegal specialists and other legal assistants.

In the Paralegal Category, the first Award for Excellence in Legal Support is presented to Paralegal Laura E. Griffin of the U.S. Attorney’s Office for the Southern District of Ohio.  Griffin has been an indispensable member of the Southern District of Ohio’s Appellate Division for more than seven years.  She plays a vital role in implementing a system of formal moot courts for every oral argument conducted by Assistant U.S. Attorneys and is in the development of a training program for support staff on appellate rules and procedures.  Griffin also assisted in the creation and development of an extensive intranet site for the Appellate Division which was praised by Evaluation and Review Staff evaluators as a model for U.S. Attorney’s Offices throughout the country.  Her hard work, enthusiasm and innovation have served to guide the Appellate Division from its infancy into one of the most respected Appellate Divisions in the country, universally praised by evaluators, the judges of the Sixth Circuit and her peers.  Griffin’s work exemplifies the kind of excellence, dedication and professionalism worthy of recognition.

Also in the Paralegal Category, the second Award for Excellence in Legal Support is presented to Paralegal Specialists Glori J. Gibford of the Office of the U.S. Trustee – Region 18, C. Marie Goodier of the Office of the U.S. Trustee – Region Six, Catherine J. Henderson of the Office of the U.S. Trustee – Region 10 and Erik Van Bramer of the Office of the U.S. Trustee – Region Nine.  This team’s outstanding work and exemplary commitment to the U.S. Trustee Program’s (USTP) National Creditor Enforcement Initiative were critical in the USTP’s $81.6 million settlement with Wells Fargo Bank N.A., announced in November 2015.  Under the settlement, Wells Fargo acknowledged that it failed to timely file more than 100,000 payment change notices and failed to timely perform more than 18,000 escrow analyses in cases involving approximately 68,000 accounts of homeowners in bankruptcy between Dec. 1, 2011, and March 31, 2015.  While continuing to carry out their core civil enforcement work in their local offices, the recipients assumed these significant additional responsibilities with great enthusiasm and demonstrated a strong sense of dedication, expertise and zeal that has helped so many distressed homeowners.

In the Legal Support Category, this year’s Award for Excellence in Legal Support is presented to Legal Secretary Linda C. Britt of the Civil Division’s Appellate Staff.  Ms. Britt’s work has uniformly been of the highest caliber in her more than 30 years with Civil Division’s Appellate Staff.  Day after day, she masterfully assists the attorneys with their briefs and memoranda, often under extraordinary time pressure, helping to yield end products that are thoroughly professional.  In all of her work, Ms. Britt invariably goes above and beyond the call of duty to ensure success of the office’s mission, which has been especially crucial in recent periods of a short-handed administrative staff.  She has seamlessly taken on the added responsibilities of being the administrative assistant to the director of the Appellate Staff, and always seeks out new ways to be of assistance to others in the office.  Going beyond the excellent work that she performs on a daily basis, Ms. Britt has the unique quality of inspiring others to emulate her hard-working attitude and uplifting presence.

The Attorney General’s Award for Excellence in Administrative Support recognizes outstanding performance in administrative or managerial support by an administrative employee or secretary.

In the Administrative Category, this year’s Award for Excellence in Administrative Support is presented to Administrative Services Specialist Antonio M. Griego of the U.S. Attorney’s Office for the District of New Mexico.  Griego constantly reads, researches, interprets and enforces the changing rules and regulations, delegated authorities and guidelines that apply to all aspects of acquisition management and internal controls.  Acquisition and procurement personnel at the EOUSA and the Justice Management Division regularly consult with Griego for his technical interpretation, knowledge and application skills, and regularly select him as a primary instructor for acquisition and procurement conferences and training seminars.  In addition to his voluntary participation in the Contracting Officer Mentor Program, Griego regularly assists contracting officers and contract staff from numerous other U.S. Attorneys’ Offices.  Griego’s dedication and initiative have enhanced the contracting capacities of the District of New Mexico, EOUSA and the department as a whole, and exemplify government at its best.

In the Secretarial Category, this year’s Award for Excellence in Administrative Support is presented to Management and Program Assistant Sandra L. Blanchard of the FBI’s Criminal Justice Information Services Division.  Blanchard frequently demonstrates an analytical ability above that of her required job functions.  As a special project, she led the National Data Exchange (N-DEx) batch query testing efforts on behalf of the division.  In this role, Blanchard was responsible for reviewing hundreds of results and using her professional judgment to make decisions.  Moreover, she determined what information added value to the Facial Analysis Comparison and Evaluation Services Unit operations.  At the end of the testing period, she provided recommendations for using this type of query in the normal course of business that considered future N-DEx builds that would likely yield more results.  Furthermore, her recommendations were communicated with the N-DEx program, resulting in a clearer understanding of the unit’s requirements.  Throughout this project, Blanchard exhibited substantial knowledge of program principles, concepts and objectives.  Additionally, she identified and took the initiative to implement an efficient method to produce complete and accurate case identification number lists that corresponded to the FBI’s Top 10 Priority List, and she ensured the document was available a resource to others.  Blanchard also coordinated with IT support personnel to ensure the information was regularly updated on the work log.  This increased the overall effectiveness of operations and allowed for more accurate reporting and case prioritization. 

The Claudia J. Flynn Award for Professional Responsibility recognizes a department attorney who has made significant contributions in the area of professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that department attorneys carry out their duties in accordance with the rules of professional conduct.  This year’s award is presented to, from the Office of the Deputy Attorney General, Associate Deputy Attorney General Andrew D. Goldsmith and from the U.S. Attorney’s Office of the District of New Jersey, Counsel to the U.S. Attorney John M. Fietkiewicz.  Goldsmith and Fietkiewicz are recognized for their sustained, outstanding leadership and invaluable contributions to ensure that department prosecutors carry out their duties in compliance with the highest ethical standards.  With superior dedication and effort, they have gone to extraordinary lengths to advise and train innumerable department prosecutors, providing the tools and resources necessary to perform their work in the most ethical and professional way possible.  With their considerable experience and exceptional judgment, they are leading the department in successfully addressing the overlap between the legal and ethical duty of disclosure, one of the most important professional responsibility issues facing federal prosecutors in decades.  Their unfailing commitment to upholding and inspiring others to the highest standards of professionalism has been a model to their peers within and outside the department.  Both awardees worked closely with Claudia Flynn during her service at the department, and they embody the integrity, professionalism and strength of character that marked Flynn’s life and work.

The Attorney General’s Award for Outstanding Service in Freedom of Information Act Administration recognizes exceptional dedication and effort to the implementation of the Freedom of Information Act (FOIA).  President Obama’s Open Government Directive and the Attorney General’s FOIA Guidelines prioritize the need for the government to incorporate information technology into FOIA processing when responding to requests for information.  This year’s award is presented to Government Information Specialist Margaret A. Woods of the USMS Office of General Counsel.  In her position, Woods is often assigned the more complex and voluminous FOIA requests while still serving as a reviewer and mentor for less senior specialists.  She typically processes more than 150 requests over the course of the year.  Recently, Woods was assigned a very high-profile and large-scale FOIA media request seeking information regarding use of government funds for commemorative and recognition items within both USMS headquarters and each of its 94 districts.  Because of the breadth of the possible records and the effort required to capture all responsive information, Woods spent hundreds of hours in conversation with USMS district and division personnel conducting the searches and explaining the type of information to be included in responses.  In addition, the request required coordination and consultation with other department components.  Following her review of over 15,000 pages of documents, Woods created a custom spreadsheet in order to display the responsive information in a form which the requester could clearly understand.  Additionally, she oversaw the process of compiling the information and ensuring its accuracy, and she coordinated the response package with the department’s Office of Information Policy, which monitored and coordinated the request.  Finally, Woods prepared the material for disclosure to the requester with an explanation of any possible discrepancies.

The Attorney General’s Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate and prosecute fraud, white-collar crimes and official corruption.  This year’s award is presented to, from the Criminal Division’s Fraud Section, Deputy Chief Gejaa T. Gobena and Assistant Chief Catherine Kuo Dick; from the Civil Division’s Commercial Litigation Branch – Fraud Section, Trial Attorney Joan E. Hartman; from the U.S. Attorney’s Office of the Eastern District of Michigan, Assistant U.S. Attorneys Linda Aouate, Sarah Resnick Cohen, John K. Neal and Wayne F. Pratt and Victim-Witness Coordinator Sandy Palazzolo; from the FBI’s Detroit Field Office, Special Agents Bryan Drake, William Brian Fairweather and Kevin J. Swanson and Forensic Accountant LaFell D. Peoples; from the U.S. Department of Health and Human Services Office of Inspector General, Special Agents Abhijit Dixit and Michael Fairbanks; and from the U.S. Department of the Treasury Internal Revenue Service, Special Agent Kevin Nalu.

This team secured the conviction and 45-year sentence of Farid Fata, an oncologist who deliberately misdiagnosed patients with a variety of conditions so that he could fraudulently bill Medicare and private insurers for millions of dollars’ worth of unnecessary infusions, injections and other cancer testing and treatments.  Acting on a tip, the recipients investigated and corroborated the health care fraud allegations, arresting Fata and shutting down his six Detroit-area practice locations.  At the time of his arrest, Fata had over 1,700 active patients and over 16,000 historical patients.  After his arrest, agents, prosecutors and staff worked around the clock to ensure that all of the patients, past and present, received their medical files and were routed to major medical centers for continued care.  Over the course of the investigation, the team was able to prove that Fata had victimized more than 550 patients.  In September 2014, Fata pleaded guilty to 13 counts of health care fraud charges, one count of health care kickback conspiracy and money laundering.  In pleading guilty, Fata admitted to administering unnecessary chemotherapy infusions, iron infusions and human growth factors to patients; ordering unnecessary cancer tests; accepting kickbacks to refer patients for home health care services; and laundering money from his infusion fraud scheme to promote a new cancer testing fraud scheme. 

The Attorney General’s Award for Outstanding Contributions to Community Partnerships for Public Safety recognizes outstanding achievement in the development and support of community partnerships designed to address public safety within a community.  This year’s award is presented to, from the U.S. Attorney’s Office of the Northern District of Ohio, Assistant U.S. Attorney Joseph M. Pinjuh, Law Enforcement Coordinator Craig A. Tame and Community Affairs Specialist Michael P. Tobin; from the DEA’s Cleveland Resident Office, Resident Agent in Charge Keith W. Martin; from the FBI’s Cleveland Field Office, Supervisory Special Agent Todd D. DeKatch; from the Cleveland Clinic, Addiction Psychiatrist Jason M. Jerry MD; from the MetroHealth Medical Center, Emergency Room Physician Joan Papp MD; from the Cuyahoga County Medical Examiner’s Office, Medical Examiner Thomas P. Gilson MD and Administrator Hugh B. Shannon; from the Cuyahoga County Board of Health, Supervisor Vincent P. Caraffi; from the Cuyahoga County Court of Common Pleas, Judges David T. Matia and Joan C. Synenberg; from the Cleveland Division of Police, Commander Gary K. Gingell; from the Cuyahoga County Sheriff’s Department, Special Assistant Philip M. Angelo; and from the Recovery Resources Associate Board, Board Chair Aaron D. Marks.

The recipients are recognized for their involvement in the Northern Ohio Heroin and Opioid Task Force, which has developed and implemented a community action plan to combat a healthcare and law enforcement crisis.  Heroin overdose deaths increased in Cuyahoga County, Ohio’s largest county, by more than 400 percent between 2007 and 2015, with nearly 200 people fatally overdosing last year.  Convened by the U.S. Attorney’s Office, the task force, comprised of prosecutors, doctors, investigators, educators, addiction specialists and community members, engaged in a groundbreaking collaboration that cuts through traditional boundaries.  By dealing with the heroin and opioid epidemic simultaneously through the prisms of law enforcement, treatment, healthcare policy and education, this group is challenging the idea that each discipline must work in its own silo.  Their Smart on Crime approach is literally saving lives throughout the community.

The Cubby Dorsey Award for Outstanding Contributions by a Wage Grade System Employee recognizes extraordinary performance and contributions by wage grade system employees, including laborers, mechanics and skilled craft workers.  This year’s award is presented to Benjamin Scott Taylor, a Pipefitter Supervisor from BOP’s Federal Correctional Institution – Manchester, Kentucky (FCI Manchester).  Taylor is recognized for his dedication to improving the utility systems and equipment at FCI Manchester.  He was the lead foreman in the retrofitting of an “on demand” water heating system for the institution's centralized laundry operation.  Due to an antiquated steam system which could not supply the required heating water, Taylor researched and received approval to install a state-of-the-art heating system.  All phases of the project were planned, organized and installed under his supervision.  Additionally, his commitment to reducing leaks in the institution resulted in an astonishing 12.9 percent reduction in potable water in 2015, and a water usage cost savings of over $30,300.  Finally, Taylor displays a genuine commitment to reentry by participating in professional development and leadership programs for inmates.  He provides expert trade-skill enhancement to the inmates under his supervision, and instills professional growth and work patterns that will better prepare the FCI Manchester inmates to return to their communities and the work force.

The John Marshall Awards are the department’s highest awards offered to attorneys for contributions and excellence in specialized areas of legal performance.  Ten awards in seven categories are presented this year.

The first John Marshall Award for Trial of Litigation is presented to, from the Antitrust Division’s Litigation III Section, Assistant Section Chiefs Ethan C. Glass and Lisa A. Scanlon; and Trial Attorneys Steven B. Kramer, Kelsey W. Shannon and Jeffrey G. Vernon.  The Antitrust Division’s high-profile victory at trial blocking General Electric’s (GE) attempt to sell its appliances business to Electrolux represents one of the most significant merger trial victories the division has achieved in decades, and has directly helped tens of millions of U.S. consumers who purchase appliances each year.  On July 1, 2015, the United States brought suit in the U.S. District Court for the District of Columbia against GE and Electrolux, alleging that their proposed merger would raise appliance prices.  In November 2015, trial began in before U.S. District Judge Emmet G. Sullivan of the District of Columbia.  During a five-week, highly publicized trial, the trial team made its case largely through the documents and adverse testimony of GE and Electrolux, uncooperative competitors and economic analysis, demonstrating that the merger would have a significant effect on the prices of ranges, cooktops and wall ovens.  One day before trial was to conclude, GE abandoned the proposed merger and as a result, U.S. consumers will be able to save hundreds of millions of dollars.

The second John Marshall Award for Trial of Litigation is presented to the team responsible for the prosecution and conviction of Jeffrey Sterling.  As a result of their tireless efforts over the course of several years, Sterling was found guilty of unauthorized disclosures of classified information vital to national security in the first Espionage Act trial of its kind in decades.  The successful outcome was the result of over four years of complex pre-trial litigation involving classified information, covert witnesses, First Amendment issues and media subpoenas.  At trial, the prosecutors proved that Sterling, a former CIA officer, disclosed to a journalist the details of an extremely sensitive, valuable and classified clandestine operation designed to undermine the Iranian nuclear weapons program.  Sterling’s crime not only undermined a valuable tool to attack Iran’s nuclear program, but also endangered the lives of an important human asset and his family.  The defendant’s unlawful disclosures put lives at risk and constituted an egregious breach of the public trust.  Sterling was sentenced to 42 months in prison.  This case demonstrates the perseverance, tenacity and commitment of the prosecution team in overcoming formidable challenges in bringing this uniquely complex case to trial in the interests of justice and national security.  Award recipients include, from the Criminal Division’s Public Integrity Section, Deputy Chief Eric G. Olshan; and from the U.S. Attorney’s Office of the Eastern District of Virginia, Assistant U.S. Attorney Dennis M. Fitzpatrick and Senior Litigation Counsel James L. Trump.

The first John Marshall Award for Participation in Litigation is presented to, from the Civil Rights Division, Office of the Assistant Attorney General Senior Counsel Regina Kline, Acting Chief of the Policy and Strategy Section Sheila M. Foran, Disability Rights Section Trial Attorneys Nicholas C. Lee and H. Justin Park and Housing and Civil Enforcement Section Trial Attorney Max P. Lapertosa; and from the U.S. Attorney’s Office of the District of Oregon, Assistant U.S. Attorney Adrian L. Brown.  This team is honored for its extraordinary work in securing – alongside private plaintiffs – the landmark settlement agreement remedying systemic discrimination in Oregon’s employment service system for people with intellectual and developmental disabilities (I/DD).  Through the team’s outstanding oral and written advocacy, a groundbreaking settlement was achieved in Lane v. Brown, the nation’s first class-action lawsuit to challenge a state funded and administered employment service system, relying primarily on sheltered workshops, as a violation of the Americans with Disabilities Act’s (ADA) integration mandate.  Throughout the more than three-year litigation, the team demonstrated exemplary dedication, as well as outstanding advocacy and strategy, that successfully positioned the department and private plaintiffs to obtain a comprehensive settlement agreement providing relief to approximately 7,000 people with I/DD.  These individuals include 1,115 adults with I/DD, who have been relegated for far too long in segregated sheltered workshops when they were able and wanted to work in real jobs in the community, and roughly 4,900 youth with I/DD who will now receive employment services to choose, prepare for, get and keep jobs in a typical setting.  The team’s accomplishment serves as a model for integrated employment of persons with disabilities nationwide.

The second John Marshall Award for Participation in Litigation recognizes Assistant U.S. Attorneys Lara K. Eshkenazi and Jeffrey K. Powell of the U.S. Attorney’s Office for the Southern District of New York.  As a result of the extraordinary work of the recipients, New York City’s jail system is now subject to sweeping court-ordered reforms to counter the pervasive culture of violence that has plagued it for decades and has inflicted tremendous harm on inmates and correction officers alike.  After its rigorous investigation into the treatment of adolescent inmates on Rikers Island, the team drafted a scathing 79-page report that concluded that male inmates between the ages of 16 and 18 were subject to rampant use of unnecessary and excessive force by correction staff, were not being adequately protected from violence inflicted by other inmates, and were being placed in punitive segregation for weeks or months at a time at an alarming rate.  To force desperately needed reforms, the Southern District of New York intervened in an ongoing class action alleging a system-wide pattern and practice of excessive force.  The recipients led the parties through many months of difficult negotiations which resulted in a groundbreaking consent decree requiring comprehensive and innovative reform designed to end the unconstitutional violence on Rikers Island.  The consent decree also prohibits the use of punitive segregation for inmates under the age of 18.  In approving the settlement, the district court judge described the agreement as “the product of unprecedented analysis, investigation, collaboration, commitment to the protection of rights and vision for systemic reform,” and noted that it “provides an important example for other correctional systems throughout the country.”

The first John Marshall Award for Support of Litigation is presented to Assistant Director Reginald T. Blades Jr. and Assistant Director L. Misha Preheim of the Civil Division’s Commercial Litigation Branch – National Courts Section for their outstanding and successful resolution of over 3,000 claims for back pay for certain cost of living adjustments withheld by Congress brought by Article III and non-Article III judges and their beneficiaries.  The creative and innovative web-based claims process developed and implemented by the recipients has contributed greatly to the department’s fair, just and efficient resolution of complex and unwieldy putative class action claims brought against the United States in 15 different lawsuits filed in the U.S. Court of Federal Claims. 

The second John Marshall Award for Support of Litigation recognizes the Environment and Natural Resources Division’s Pacific Salmon Team for its tireless and outstanding provision of litigation support in multiple cases involving salmon in the Pacific Northwest.  Salmon are iconic to the Pacific Northwest and litigation over this important natural resource abounds.  The recipients are responsible for representing several federal agencies in many pieces of complex litigation in federal district courts throughout the region.  In this role, the team provides all aspects of legal assistance including counsel to eight federal agencies; legal review of agency actions in advance of litigation; marshalling expert witness resources and testimony; researching and drafting extensive legal briefs; coordinating positions among the various federal agencies; and representing the agencies in the courtroom.  The cases are complex, controversial and often high-profile.  Due to its work, the team has secured litigation outcomes allowing critical hydroelectric and navigation projects to move forward while protecting the needs of salmon.  Their efforts have also resulted in significant improvement of federal and tribal relations.  The awardees are, from the Environment and Natural Resources Division’s Wildlife and Marine Resources Section, Senior Trial Attorneys Michael R. Eitel and Carter H. Howell and Trial Attorney Andrea E. Gelatt; and from the Environment and Natural Resources Division’s Natural Resources Section, Senior Trial Attorneys Romney S. Philpott III and Kristofor R. Swanson.

The John Marshall Award for Handling of Appeals is presented to Trial Attorney Arthur T. Catterall of the Tax Division’s Appellate Section.  Catterall is recognized for his exceptional work as an appellate advocate in tackling some of the most difficult civil tax cases to come before the Courts of Appeals in recent years, including tax shelter cases combining complex factual patterns with thorny issues of statutory interpretation.  His collaborative work with trial and agency counsel, and his clear and eloquent arguments on behalf of the federal government, have exposed the fallacies at the heart of various abusive tax shelters and have contributed to the government’s victory in the SCOTUS case US v. Gary Woods, allowing for the imposition of accuracy-related penalties in transactions lacking economic substance.  His work has saved and will continue to save the government hundreds of millions of dollars in tax revenue, and has contributed to the development of the law in a manner that enhances the integrity and fairness of the federal tax system.

The John Marshall Award for Providing Legal Advice is presented to the team responsible for in reviewing executive orders and attorney general orders for form and legality.  Together, the recipients ensure that the orders are lawful and presented in proper form.  They perform this daunting and critical task with supreme skill, integrity and care, and frequently on an extremely short timeline.  Moreover, the team’s behind-the-scenes work is critical to the integrity and success of every order the President of the United States or Attorney General signs.  The recipients are, from the Office of Legal Counsel, Special Counsel Rosemary A. Hart, Senior Counsel Matthew D. Roberts and Attorney-Advisers Martine E. Cicconi, Kirti Datla, Nathan A. Forrester, Laura E. Heim, KelleyBrooke Hostetler, Jane E. Nitze, Annie L. Owens, Mitchell Reich and Jonathan D. Shaub.

This year’s John Marshall Award for Asset Forfeiture is presented to, from the Criminal Division’s Asset Forfeiture and Money Laundering Section, Deputy Chief Woo S. Lee and Trial Attorney Della Sentilles; from the Criminal Division’s Office of International Affairs, Trial Attorneys Frances Chang and Michael J. Surgalla Jr.; from the U.S. Attorney’s Office of the Eastern District of Pennsylvania, Assistant U.S. Attorneys Joseph F. Minni and J. Alvin Stout III; and from the U.S. Attorney’s Office Central District of California, Assistant U.S. Attorneys Katharine Schonbachler and Steven R. Welk.

This team is honored for its contributions to the Kleptocracy Asset Recovery Initiative through its civil forfeiture of bribe proceeds paid to the former President of the Republic of Korea, Chun Doo Hwan.  After seizing power in 1979, Chun went on to earn a salary of approximately $20,000 per year from 1980 through 1988.  When he was ultimately convicted of corruption crimes by South Korea in 1997, the trial court established that Chun had received more than $200 million in bribes during his presidency and ordered him to pay restitution in that amount.  Stymied in their efforts to collect on Chun’s restitution order, in 2013, Korean prosecutors turned to the department for assistance.  Undaunted by the age of the evidence, the team pieced together financial and testimonial evidence sufficient to show that a portion of Chun’s bribe proceeds were paid through intermediaries, transferred out of Korea in the names of shell corporations and ultimately invested into various properties in the United States.  On Nov. 9, 2015, Attorney General Lynch celebrated the successful conclusion of this case by presenting the Korean Minister of Justice with an embossed copy of a forfeiture order and congratulating South Korea on having recovered more than $28.7 million as a result of the team’s efforts.

This year’s John Marshall Award for Alternative Dispute Resolution is presented to the Crow Tribe Water Rights Settlement Team for the negotiation, defense and implementation of a settlement between the state of Montana, the Crow Nation and the United States that confirms the federal water rights of the Crow Nation arising from its 1868 treaty.  The settlement, a decades-long effort, brings much-needed water, infrastructure and economic development to the Crow Reservation in Montana and allows the tribe to thrive on its reservation.  The awardees are recognized for their creative and exemplary work in developing, negotiating and implementing a settlement approved by the Montana Legislature and subsequently ratified and altered by Congress.  The team then defended the settlement in state and federal courts.  Their work began with the negotiation of an agreement in the late 1990s, resolving contentious water rights issues as well as mineral severance taxation issues heard by SCOTUS.  The team’s successful completion of this extraordinary process makes clean drinking water, improved irrigation facilities and economic development opportunities available on the Crow Indian Reservation and confirms promises made to the Crow Nation in 1868.

The awardees are, from the Environment and Natural Resources Division’s Indian Resources Section, Section Chief S. Craig Alexander, Assistant Section Chief David W. Harder and Trial Attorney J. Nathanael Watson; from the division’s Law and Policy Section, Attorney-Advisor Stacy R. Stoller; from the division’s Natural Resources Section, Trial Attorney Tyler G. Bair; and from the division’s Appellate Section Trial Attorney John L. Smeltzer.

The Attorney General’s Award for Outstanding Contributions by a New Employee recognizes exceptional performance and notable accomplishments towards the department’s mission by an employee with fewer than five years of federal career service. 

The first Outstanding Contributions by a New Employee Award is presented to Criminal Division Appellate Section Attorney Ross B. Goldman.  Goldman has proven himself to be an extraordinary and productive appellate advocate, who masterfully handles complex, large-record appeals.  Although his cases have run the gamut from street crime to securities fraud, Goldman has brought his sophisticated analysis to two areas that bedevil the courts and prosecutors; insider trading, where he drafted a SCOTUS merits brief and a certiorari petition, and extraterritoriality, where, in one case, he defended the murder conviction of a Colombian national who murdered a DEA agent in Bogota and, in a second case, assisted the Solicitor General in formulating arguments on the Racketeer Influenced and Corrupt Organizations (RICO) Act’s extraterritorial reach.  He not only volunteers to take on extra work within the division, but he also seized the opportunity to review commutation applications filed by convicted drug traffickers because he believes so strongly in the Obama Administration’s initiative to provide relief to nonviolent offenders who have already served significant prison terms.  Finally, Goldman serves on the division’s Diversity Committee and mentors a minority law student.  He understands the department’s mission writ large and he gives his best at all times.

The second Outstanding Contributions by a New Employee Award is presented to Special Agent Adebowale Babarinde Alade of the FBI’s San Antonio Field Office.  Alade was the lead investigator on a 32-month complex criminal investigation targeting the Almighty Latin King Nation (ALKN), a violent transnational criminal enterprise operating in Texas with connections across the United States and overseas.  With less than one year in the FBI, and still serving as a probationary agent, Alade demonstrated exceptional initiative by carefully exploiting human source information in early 2013, resulting in the identification of a key leader of the ALKN with control over operations in Texas.  He determined that the ALKN was importing and distributing large quantities of narcotics from Mexico-based cartels, and was also involved in weapons trafficking with access to military-grade weapons and grenades.  After obtaining Organized Crime Drug Enforcement Task Forces designation, Alade relentlessly pursued ALKN’s illicit activities, ultimately targeting its command and control structure through the use of sophisticated techniques involving the interception of communications through Title III court orders.  During 2014, Alade exploited intelligence derived from ALKN communications and human sources, and developed a cohesive interagency team by sharing information with law enforcement partners, resulting in a collaborative effort to target the ALKN.  In October 2015, his work resulted in the indictment of 48 members of the ALKN, including its entire leadership structure in Texas, on RICO Act and drug conspiracy charges, as well as state drug violations.  Alade subsequently led the multiagency enforcement operation that disrupted the ALKN, resulting in the seizure of narcotics and firearms, thousands of rounds of ammunition, cash, body armor, extensive digital devices and a wide array of ALKN paraphernalia.  In conducting this investigation, Alade directly supported the department’s mission by ensuring public safety against domestic and foreign threats, as well as providing leadership in preventing and controlling crime.

A British futures trader pleaded guilty today to U.S. fraud and spoofing charges in connection with an over five-year scheme to defraud, which included his role in the May 6, 2010, “Flash Crash,” when the Dow Jones Industrial Average plunged 600 points in five minutes, announced 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 Field Office and Director Aitan Goelman of the U.S. Commodity Futures Trading Commission (CFTC) Division of Enforcement.

Navinder Singh Sarao, 37, of Hounslow, United Kingdom,  pleaded guilty to one count of wire fraud and one count of spoofing before U.S. District Judge Virginia Kendall of the Northern District of Illinois.  Saro was extradited to the United States on Nov. 7 and made his first court appearance today.  

“Navinder Sarao abused sophisticated technology to make a quick profit, and jeopardized the integrity of U.S. financial markets,” said Assistant Attorney General Caldwell.  “By flooding the marketplace with bogus orders, his scheme victimized countless individuals.  Our success in bringing Sarao to justice in the United States shows that the Criminal Division will root out complex financial fraud and manipulation of the financial markets no matter where the perpetrators are located.”

“This case shows just how seriously we take threats to the integrity of our markets, from wherever they emanate,” said Director Goelman.  “The CFTC appreciates Department of Justice's doggedness in ensuring that Sarao faces justice for the harm he caused to the U.S. futures market, despite his being situated an ocean away from American shores, as well as for the assistance of our other law enforcement partners, the FBI and Scotland Yard.” 
 
As part of his guilty plea, Sarao admitted that he used an automated trading program, along with other techniques, to manipulate the market for E-mini Standard & Poor’s (S&P) 500 futures contracts  (E-minis), stock market index futures contracts based on the S&P 500 index, through the Chicago Mercantile Exchange (CME).  The E-mini S&P 500 is considered among the most widely traded financial products in the world.  Sarao admitted that he placed thousands of orders that he did not intend to trade, or “spoof orders,”  to create the appearance of substantial false supply and demand and to induce other market participants to trade E-minis at prices and quantities they normally would not have traded.   In thousands of instances, Sarao admitted, he was able to induce other market participants into buying or selling E-minis by placing the spoof orders, which had the additional purpose and effect of artificially depressing or artificially inflating the price of E-minis.  On the day of the “Flash Crash,” Sarao entered at least 85 spoof orders to sell E-minis, which, at various times throughout that day, represented well over 20 percent of all E-mini sell orders visible to the market, he admitted.  

According to the plea agreement, in instances when a market reaction occurred, Sarao frequently executed real, genuine orders to buy (typically at artificially low prices) or sell (typically at artificially high prices) E-minis.  He admitted that he frequently was able to generate significant trading profits from buying and selling his genuine orders close in time with the placement of the spoof orders.  As a result of his scheme, Sarao admitted that he was able to make at least $12.8 million in illicit gains.   
    
The FBI’s Chicago Division is investigating the case.  Assistant Chief Robert Zink and Trial Attorney Michael T. O’Neill of the Criminal Division’s Fraud Section are prosecuting the case with assistance from the U.S. Attorney’s Office for the Northern District of Illinois, the Criminal Division’s Office of International Affairs and the International Assistance Unit of the Metropolitan Police Service of London.  The CFTC’s Division of Enforcement provided substantial assistance in this case and referred this matter to the department.  

FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced the expansion of the Office of Legal Access Programs’ Legal Orientation Program (LOP) to three additional detention sites: Irwin County Detention Center in Ocilla, Ga.; Polk County Detention Center (IAH Secure) in Livingston, Texas; and Rolling Plains Detention Center in Haskell, Texas. Through the LOP, EOIR contracts with representatives from non-profit organizations to provide explanations about immigration court policies and procedures to groups of detained individuals. This new expansion brings the number of LOP sites to 41.

Since 2002, EOIR has carried out the LOP to improve judicial efficiency in the immigration courts, and to assist detained individuals and others involved in removal proceedings to make timely and informed decisions. Under the LOP, EOIR’s contractors provide group and individual orientations, self-help workshops, and pro bono referral services for individuals in removal proceedings.

Please see EOIR’s Office of Legal Access Programs Fact Sheet for more information on the LOP and EOIR's additional legal access programs.

The Executive Office for Immigration Review (EOIR) is an agency within the Department of Justice. Under delegated authority from the Attorney General, immigration judges and the Board of Immigration Appeals interpret and adjudicate immigration cases according to United States immigration laws. EOIR’s immigration judges conduct administrative court proceedings in immigration courts located throughout the nation. They determine whether foreign-born individuals – whom the Department of Homeland Security charges with violating immigration law – should be ordered removed from the United States or should be granted relief from removal and be permitted to remain in this country. The Board of Immigration Appeals primarily reviews appeals of decisions by immigration judges. EOIR’s Office of the Chief Administrative Hearing Officer adjudicates immigration-related employment cases. EOIR is committed to ensuring fairness in all of the cases it adjudicates.

A Montgomery County, Alabama resident was sentenced to 28 months in prison for his role in a stolen identity refund fraud scheme, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.

Lambert Derran Smothers aka Main or Mane, 25, admitted that he participated in a conspiracy which used stolen personal identifying information including names, dates of birth and social security numbers to file more than 100 fraudulent income tax returns relating to tax years 2010, 2011 and 2012.  On the returns, Smothers and his co-conspirators fraudulently claimed at least $157,292 in income tax refunds.

“Stolen identity refund crimes cause untold damage and hardship to the individual victims and drain the U.S. Treasury,” said Principal Deputy Assistant Attorney General Ciraolo.  “Individuals who engage in this criminal conduct will be prosecuted, and will face prison terms and monetary penalties.”

“Protecting tax payer dollars is a priority for my office,” said U.S. Attorney Beck.  “Identity theft and tax fraud affects too many people in our communities and we must use all available resources under the law to destroy it.  I want to thank the IRS Criminal Investigations and the U.S. Secret Service for identifying and shutting down this criminal scheme.”

“Stealing from the government is not a way to earn a living,” said Special Agent in Charge Veronica Hyman-Pillot for the Internal Revenue Service-Criminal Investigation (IRS-CI).  “Lambert Smothers and his associates victimized many taxpayers in their attempt to make quick money. Today’s sentencing should emphasize the message that IRS-CI will continue to put forth every effort to identify, investigate, and recommend prosecution on individuals who commit refund fraud.” 

Smothers pleaded guilty in July to conspiring to defraud the United States, theft of government money and aggravated identity theft.  In addition to the term of prison imposed, Smothers was also ordered to serve three years of supervised release and to pay $81,792.41 in restitution to the IRS. 

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-CI and the U.S. Secret Service, who conducted the investigation, and Trial Attorneys Gregory P. Bailey and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted this case.

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

 

FRESNO, California. —Un hombre que anteriormente se hacía pasar por traficante de inmigrantes (conocido también como “coyote”) se declaró culpable en el día de hoy de perpetrar un complot que buscaba privar de la libertad a ciudadanos mexicanos que buscaban ingresar a EE.UU. sin contar con la documentación necesaria, y retenerlos a fin de obligar a sus parientes que ya eran residentes en EE.UU. a que pagaran dinero a cambio de su liberación, tal como lo anunciara el Fiscal (encargado) de Estados Unidos, Phillip A. Talbert.

Martin Carranza Sánchez, de 45 años de edad y oriundo de México, se declaró culpable en el día de hoy de conspirar para cometer estafa por vía telefónica. De acuerdo con su convenio declaratorio, entre enero de 2010 y el 21 de enero de 2016, Carranza Sánchez se hacía pasar por traficante de inmigrantes indocumentados y prometía de manera falsa que entregaría a los inmigrantes en Estados Unidos luego de que le pagaran una suma de dinero. Carranza Sánchez les ordenaba a los residentes en EE.UU. que enviaran el dinero mediante transferencia electrónica a varias cuentas bancarias ubicadas en el Distrito Este de California, dineros que él y sus cómplices recogían en última instancia.

Según documentos radicados en el tribunal, Carranza Sánchez les indicaba a los inmigrantes que se dirigieran a cierto lugar en México en donde sus cómplices los agarraban y detenían en contra de su voluntad, con el fin de lograr que se les pagara. Los cómplices llamaban por teléfono a los residentes en EE.UU., informándoles que los inmigrantes serían entregados pronto en Estados Unidos, o que ya habían logrado cruzar la frontera con éxito, indicándoles a los residentes en EE.UU. que efectuaran la transferencia electrónica del pago. En múltiples ocasiones, Carranza Sánchez y sus cómplices amenazaron con causarles daño físico a los inmigrantes a menos que los residentes en EE.UU. pagaran de forma inmediata.

De acuerdo con el convenio declaratorio, Carranza Sánchez nunca tuvo la intención de facilitarles a estos inmigrantes su ingreso a Estados Unidos sin ser detectados. En muchos casos, una vez que los parientes hubiesen transferido la suma requerida, Carranza Sánchez les indicaba a los inmigrantes que cruzaran la frontera y la Patrulla Fronteriza de Estados Unidos los aprehendía de inmediato.

La investigación dio cuenta de que Carranza Sánchez y sus cómplices estafaron a los residentes de EE.UU. en cuantía de unos $95.000 dólares como resultado de su complot. El convenio declaratorio le obliga a restituirles a las víctimas de su delito esa misma suma de dinero.

Este caso es el resultado de una investigación llevada a cabo por la sección de investigaciones del Departamento de Seguridad Interna (HSI, por sus siglas en inglés) adscrita al Departamento de Inmigración y Aduanas de EE.UU. (ICE, por sus siglas en inglés). La Fiscal Auxiliar de Estados Unidos Angela L. Scott es quien adelanta el caso.

Se ha programado la imposición de la condena a Carranza Sánchez para el 6 de febrero de 2017 a las 10:00 a.m. por parte del Juez de Distrito de EE.UU. Dale A. Drozd. Carranza Sánchez se enfrenta a una pena máxima por ley de 20 años de prisión. Sin embargo, la condena final será determinada a juicio del tribunal luego de tomar en cuenta algunos de los factores estatutarios, así como las Pautas Condenatorias Federales, las cuales toman en cuenta varios.

Yesterday, Thomas Davanzo, of Estero, Florida, and Robert Fedyna, of Naples, Florida, were sentenced to 121 months and 135 months in prison, respectively, for their participation in a multi-state scheme to defraud biofuel buyers and U.S. taxpayers by fraudulently selling biofuelcredits and fraudulently claiming tax credits, announced Assistant Attorney General John C. Cruden of the Justice Department’s Environment and Natural Resources Division and U.S. Attorney A. Lee Bentley III of the Middle District of Florida.  Both defendants were also ordered to forfeit ill-gotten gains from the conspiracy of over $46 million and other items to the government, including gold coins, jewelry and Rolex watches, thoroughbred horses, vehicles and properties.

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

“In their pursuit of personal gain, the defendants perpetrated a multi-state conspiracy that defrauded and undermined a federal program intended to further the energy independence of our nation,” said Assistant Attorney General Cruden.  “Today’s sentence is a just punishment for these serious crimes against the American people.”

“This case shows that EPA is committed to eliminating fraud in the renewable fuels market and ensuring a level playing field for businesses that play by the rules,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “The sentences handed down show the serious nature of these crimes and that EPA will continue to hold criminals accountable.”

In addition, both Davanzo and Fedyna laundered the proceeds of the scheme through various shell entities.  Davanzo and Fedyna established bank accounts in the names of shell entities.  Funds were cycled through these shell companies’ bank accounts to perpetuate the fraud scheme and conceal its proceeds.

Davanzo and Fedyna also directed and participated in the generation of false paperwork designed to create the façade that the renewable identification number (or RIN, a serial number used to track renewable fuel credits) created and claimed by co-conspirators were legitimate.  The paperwork included false invoices from Gen-X or SRC to shell entities, which purported to show sales of renewable fuel, false invoices from shell entities to Gen-X and SRC, which purported to show the purchase of feedstock and false bills of lading, which purported to show the transportation of fuel and feedstock by tanker truck.

From March 2013 to March 2014, the co-conspirators generated at least 60 million RINs that were based on fuel that was either never produced or was merely re-processed at the Gen-X or SRC facilities.  The co-conspirators received at least $42 million from the sale of these fraudulent RINs to third parties.  In addition, Gen-X received approximately $4,360,724.50 in false tax credits for this fuel.

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

Claimed Refunds in Excess of $1 Million  

A resident of Portland, Oregon pleaded guilty today to conspiring to file fraudulent income tax returns with the Internal Revenue Service (IRS) claiming refunds in excess of $1 million, theft of government funds and filing a false claim for refund, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.

According to the plea agreement, Lori Nicholson, 53, admitted that she conspired with other individuals to prepare and file more than 227 fraudulent income tax returns during 2010. The false information on the tax returns included fictitious wage and withholding information, and fraudulent refundable credits.  Nicholson also admitted that she assisted her co-defendants to prepare and file false income tax returns, including her daughter, Jasmine Mason, Brandon Leath and Shawntina Ware.  Nicholson further admitted that she shared identities and refunds with her co-defendants. 

Sentencing is scheduled for Feb. 22, 2017.  Nicholson faces a statutory maximum sentence of 10 years in prison for the conspiracy and theft of government funds counts, five years in prison for the false claims count, and a period of supervised release and monetary penalties.  In addition, she agreed to pay $429,269 in restitution to the IRS.  Co-defendants Mason, Leath, Ware and White pleaded guilty to similar charges.  U.S. District Judge Robert E. Jones sentenced White, Mason, and Leath to 37, 32, and 24 months in prison, respectively.  Ware is scheduled to be sentenced in February 2017. 

Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Lori A. Hendrickson and Ryan R. Raybould of the Tax Division, who are prosecuting the case.  Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the District of Oregon for their substantial assistance.

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

Company Agrees to Pay $7.2 Million Criminal Fine

Usui Kokusai Sangyo Kaisha Ltd. (Usui), an automotive parts manufacturer based in Shimizu, Japan, has agreed to plead guilty and pay a $7.2 million criminal fine for its role in a criminal conspiracy involving automotive steel tubes sold to automobile manufacturers in the United States and elsewhere, the Department of Justice announced today.  

According to a one-count felony charge filed today in the U.S. District Court for the Southern District of Ohio, Usui participated in a conspiracy to fix prices, allocate customers and rig bids for automotive steel tubes sold to automobile manufacturers in the United States and elsewhere.  Maruyasu Industries Co. Ltd., Maruyasu’s wholly-owned U.S. subsidiary, Curtis-Maruyasu America Inc. (CMA), and sales executives, Tadao Hirade, Kazunori Kobayashi, Satoru Murai and Yoshihiro Shigematsu, were previously indicted on June 15, for their alleged participation in the conspiracy.  In addition to Usui’s agreement to pay a $7.2 million criminal fine, the manufacturer has agreed to cooperate with the department’s ongoing investigation.  The plea agreement is subject to court approval.  

“Despite having prosecuted scores of corporate and individual conspirators in this investigation, the Antitrust Division continues to vigilantly pursue those responsible who have not yet been held accountable,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division.  “This investigation is not completed, and the division will continue to prosecute automotive parts manufacturers and executives that sought to maximize their profits through anticompetitive means.”  

“Bid rigging, price fixing and other schemes hurt consumers and undermine our economic system,” said Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.  “The FBI, the Department of Justice and our partners will continue to work to protect consumers and root out corporate fraud.” 

“The Department of Commerce Office of Inspector General is proud to work with the Department of Justice and the FBI in protecting the U.S. economy from illegal pricing tactics such as those uncovered in this investigation,” said Special Agent in Charge Duane Townsend of the Commerce’s Office of Inspector General.  “We will continue our cooperative efforts to bring those who violate our laws to justice and deter future attempts to undermine fair market practices.”

Automotive steel tubes are used in fuel distribution, braking and other automotive systems and are sometimes divided into two categories –  chassis tubes and engine parts.  Chassis tubes, such as brake and fuel tubes, tend to be located in the body of a vehicle while engine parts, such as fuel injection rails, oil level tubes and oil strainer tubes, are associated with the function of a vehicle’s engine.

According to the charges, Usui and its co-conspirators participated in meetings, conversations and communications in which they agreed to customer allocations as well as bids, prices and price adjustments to be submitted to customers in the United States and elsewhere.  Usui and its co-conspirators employed measures to conceal their conduct, including meeting surreptitiously and adopting means and methods of communication designed to avoid detection.  Usui’s involvement in the conspiracy lasted from at least as early as December 2003 until at least as late as July 9, 2011. 

Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI.  Including Usui, 47 companies and 65 executives have been charged in the division’s ongoing investigation and have agreed to pay a total of more than $2.9 billion in criminal fines. 

These charges were brought by the Antitrust Division’s Chicago Office and the Department of Commerce’s Denver Field Office, with the assistance of the FBI’s Cincinnati Field Office, the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Southern District of Ohio.  Anyone with information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts 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’s Cincinnati Field Office at 513-421-4310.

USNCB Acting Director Salzgaber (left) and NCB-Indonesia Secretary Yahya.

The INTERPOL Washington—U.S. National Central Bureau (USNCB)--delegation to the 85th  INTERPOL General Assembly (GA) met with the senior leadership of the National Central Bureau (NCB)-INTERPOL Indonesia on November 8th, 2016. USNCB Acting Director Wayne Salzgaber recognized the Secretary of NCB-Indonesia, Brigjen Pol Drs. M. Naufal Yahya, M.Sc.(Eng), for the continued collaboration and partnership between the two organizations.  Salzgaber also thanked the Secretary for the Indonesian’s hospitality in hosting the GA.

FALLS CHURCH, VA – The Executive Office for Immigration Review (EOIR) today announced the investiture of five new immigration judges. Chief Immigration Judge MaryBeth Keller presided over the investiture during a ceremony held Nov. 4, 2016, at the U.S. Court of Appeals for the Federal Circuit, in Washington, D.C.

After a thorough application process, Attorney General Loretta E. Lynch appointed Kerri A. Calcador, Randall Wilson Duncan, Rico M. Sogocio, Karen M. Donoso Stevens, and Dean S. Tuckman to their new positions.

“I am pleased to preside over the investiture of these five appointees in my new role as chief immigration judge,” said Keller. “With these appointments, EOIR now has 296 immigration judges, setting a new all-time high for our immigration judge corps and further strengthening our efforts to address the agency’s pending caseload of more than 500,000.”

Biographical information follows.

Kerri A. Calcador, Immigration Judge, Los Angeles Immigration Court

Attorney General Loretta E. Lynch appointed Kerri A. Calcador to begin hearing cases in October 2016. Judge Calcador earned a Bachelor of Arts degree in 1994 from the University of San Diego and a Juris Doctor in 1997 from the University of San Diego School of Law. From 2007 to October 2016, she served as a senior attorney for the Office of the Chief Counsel, Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in San Diego. From 2006 through 2007, she served as a special assistant U.S. attorney for the U.S. Attorney’s Office, Southern District of California, Department of Justice (DOJ), in San Diego. From 2002 to October 2016, and previously from 1997 through 2001, she served as an assistant chief counsel for the Office of the Chief Counsel, ICE, DHS, in Los Angeles and San Diego. From 1999 through 2001, she served as an assistant district counsel for the Office of the District Counsel, former Immigration and Naturalization Service, DOJ, in Los Angeles, during which time she also served as a special assistant U.S. attorney for the U.S. Attorney’s Office, Central District of California, DOJ. Judge Calcador is a member of the State Bar of California.

Randall Wilson Duncan, Immigration Judge, Stewart Immigration Court

Attorney General Loretta E. Lynch appointed Randall Wilson Duncan to begin hearing cases in October 2016. Judge Duncan earned a Bachelor of Arts degree in 1977 and a Master of Public Administration in 1985, both from the University of Georgia, and a Juris Doctor in 1995 from the John Marshall Law School. From 2007 to October 2016, he served in various capacities for the Office of the Principal Legal Advisor, Immigration and Customs Enforcement, Department of Homeland Security, including as a senior attorney, national security attorney, worksite enforcement attorney, special assistant U.S. attorney, and assistant chief counsel, in Atlanta. From 2003 through 2007, he served as a deputy director for the Prosecuting Attorney’s Council of Georgia, in Atlanta. From 2002 through 2003, he served as legal director for the Georgia Sentencing Commission, in Atlanta. From 2000 through 2002, he served as an assistant district attorney for the Coweta Judicial Circuit, in Newnan, Ga. From 1997 through 1999, he served as a public policy attorney for Applied Research Services, in Atlanta. Judge Duncan is a member of the State Bar of Georgia. 

Rico M. Sogocio, Immigration Judge, Miami Immigration Court

Attorney General Loretta E. Lynch appointed Rico M. Sogocio to begin hearing cases in October 2016. Judge Sogocio earned a Bachelor of Arts degree in 1987 from Northwestern University and a Juris Doctor in 1992 from the Catholic University of America Columbus School of Law. From 2010 to October 2016, he served as a senior counsel for the Office of the General Counsel, Executive Office for Immigration Review, Department of Justice (DOJ), in Falls Church, Va. From 2002 through 2010, he held numerous positions in private practice, including: from 2008 through 2010 as principal and general counsel for Miami Media Labs LLC, in Miami; from 2005 through 2007 as an outside legal advisor for Nextream Broadband Inc., in Hallandale, Fla.; from 2004 through 2006 as principal and general counsel for IMProServices Inc., in Miami; and from 2002 through 2010 as of-counsel for Burgos & Sosa PA, in Miami. From 2001 through 2003, he served as a consultant for Plave Manten Consulting Group and as corporate counsel for PMC4 LLC, in Aventura, Fla. From 1999 through 2001, he served as a litigation associate for Gunster, Yoakley & Stewart PA, in Miami. From 1994 through 1999, he served in various capacities for the former Immigration and Naturalization Service, DOJ, including as an assistant district counsel and senior litigation counsel. From 1996 through 1998, he also served as a special assistant U.S. attorney for the U.S. Attorney’s Office, Southern District of Florida, DOJ. From 2008 through 2010, he served as an adjunct professor on the faculty of the Miami-Dade College Law Center. Judge Sogocio is a member of the Florida and Pennsylvania Bars.

Karen M. Donoso Stevens, Immigration Judge, Arlington Immigration Court

Attorney General Loretta E. Lynch appointed Karen M. Donoso Stevens to begin hearing cases in October 2016. Judge Donoso Stevens earned a Bachelor of Arts degree in 1995 from the University of Illinois and a Juris Doctor in 1999 from the Michigan State University College of Law. From 2010 to October 2016, she served as a senior attorney for the Office of the Chief Counsel, Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS), in Arlington, Va. From 2007 through 2010, she served as an assistant chief counsel for the Office of the Chief Counsel, ICE, DHS, in Arlington, Va. From 2005 through 2006, she served as a staff attorney for the Children’s Project at the National Immigrant Justice Center, in Chicago. From 2001 through 2003, she served as juvenile diversion program director for the California Bar Foundation, Orange County, Calif. In 2001, she served as family services coordinator for the Children’s Bureau of Southern California, in Santa Ana, Calif. From 1999 through 2000, she served as an assistant state’s attorney for the Illinois State’s Attorney’s Office, in Cook County, Chicago. Judge Donoso Stevens is a member of the Illinois State Bar.

Dean S. Tuckman, Immigration Judge, El Paso Immigration Court

Attorney General Loretta E. Lynch appointed Dean S. Tuckman to begin hearing cases in October 2016. Judge Tuckman earned a Bachelor of Arts degree in 1986 from Tufts University and a Juris Doctor in 1992 from the University of Pittsburgh School of Law. From 1998 to October 2016, he served as an assistant U.S. attorney for the District of New Mexico, U.S. Attorney’s Office, Department of Justice, in Albuquerque, N.M. From 1995 through 1998, he served as a judicial law clerk for the Honorable James A. Parker, U.S. District Court, District of New Mexico. From 1992 through 1995, he served as a litigation associate for Latham & Watkins, in New York City. Judge Tuckman is a member of the Colorado, Connecticut, and District of Columbia Bars, the State Bar of New Mexico, and the New York State Bar.

Attorney General Loretta E. Lynch today released the following statement on the passing of former Attorney General Janet Reno:

“With the passing of Janet Reno, the Department of Justice has lost one of the most effective, decisive and well-respected leaders in its proud history.  From her years in state law enforcement to her long and eventful tenure as Attorney General, Janet Reno always strove, as she put it, to do her ‘level best.’  She led the department in a time of turmoil and change, confronting issues ranging from international and domestic terrorism to fair competition in the emerging technology sector.  In meeting these challenges, she was guided by one simple test: to do what the law and the facts required.  She accepted the results of that test regardless of which way the political winds were blowing.  She never shied from criticism or shirked responsibility, earning her the affection of her subordinates, the respect of her critics, and the esteem of the American people.  And of course, as the first woman to serve as attorney general, she was an inspiration and a trailblazer for so many women working in law enforcement and government -- including me.  The United States is a stronger, safer and more just place because of Janet Reno’s leadership, and she will be dearly missed.”

Pennsylvania-based medical device manufacturer Biocompatibles Inc., a subsidiary of BTG plc, pleaded guilty today to misbranding its embolic device LC Bead and will pay more than $36 million to resolve criminal and civil liability arising out of its illegal conduct, the Justice Department announced today. LC Bead is used to treat liver cancer, among other diseases.

Under the terms of the plea agreement before the U.S. District Court for the District of Columbia, Biocompatibles pleaded guilty to a misdemeanor charge in connection with the company’s misbranding of LC Bead, in violation of the Food, Drug and Cosmetic Act.  LC Bead was cleared by the U.S. Food and Drug Administration (FDA) as an embolization device that can be placed in blood vessels to block or reduce blood flow to certain types of tumors and arteriovenous malformations.  LC Bead has never been cleared or approved by FDA as a drug-device combination product or for use as a drug-delivery device or “drug-eluting” bead.

As part of the criminal resolution, Biocompatibles will pay an $8.75 million criminal fine for the misbranding of LC Bead and a criminal forfeiture of $2.25 million.  The FDA sought assurances in 2004 that Biocompatibles would not use FDA clearance for the device for embolization to market the device for drug delivery, according to a statement of offense to which the company agreed.  Biocompatibles told the FDA that “under no circumstance” would the company use the embolization clearance to market the device for drug delivery.  However, two years later, Biocompatibles began marketing LC Bead for drug delivery through the company it hired to carry out its sales and distribution in the United States.  According to the statement of offense, the distribution company told its sales representatives that LC Bead was “[a] drug-delivery device” and trained its sales representatives to “aggressively penetrate the chemoembolization market.”  Sales representatives subsequently told health care providers that the device increased the level of chemotherapy delivered to a liver tumor and resulted in “better tumor response rates,” despite the lack of FDA clearance or approval for that use and despite the absence at that time of statistically significant evidence to support such claims.

“The FDA approval process serves an important role in ensuring that federal health care participants receive devices that are safe, effective and medically appropriate,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “We will not permit companies to circumvent that process and put profits over patient safety.”     

 “This company is being held criminally and civilly responsible for misbranding a medical device and marketing it for the treatment of seriously ill cancer patients,” said U.S. Attorney Channing D. Phillips for the District of Columbia. “Working with the FDA and other law enforcement partners, we are committed to holding companies accountable for violating the integrity of the FDA approval process.”

In addition, Biocompatibles will pay $25 million to resolve civil allegations under the False Claims Act that the company caused false claims to be submitted to government healthcare programs for procedures in which LC Bead was loaded with chemotherapy drugs and used as a drug-delivery device.  When LC Bead was combined with prescription drugs for use as a drug-eluting bead, it constituted a new combination drug-device product that was not approved or cleared by the FDA and not covered by Medicare and other federal health care programs.  The federal share of the civil settlement is approximately $23.6 million, and the state Medicaid share of the civil settlement is approximately $1.4 million. 

As part of the civil settlement, the government alleged that when LC Bead entered the U.S. market in 2005, Biocompatibles intended for LC Bead to be used as a drug-delivery device in combination with chemotherapy drugs, despite the lack of FDA approval as a drug-device combination product.  In December 2009, Biocompatibles filed an application with FDA for approval of LC Bead as a drug-eluting bead combination product. However, FDA informed the company that it was not accepting the application because clinical studies did not provide adequate evidence of a therapeutic benefit.  Nonetheless, Biocompatibles’ distributor routinely advised healthcare providers that LC Bead provided “better” or “superior” therapy for certain types of cancer when, in fact, there was insufficient clinical evidence to support these claims.

“The FDA plays a fundamental role in ensuring the safety and efficacy of medical devices and drugs in this country,” said U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas. “The FDA approval process and clinical studies serve to ensure that patients receive devices that meet those standards.  We will vigorously pursue those who ignore or seek to circumvent these important patient protections.”

“U.S. consumers rely on the FDA to ensure that there is a reasonable assurance of safety and effectiveness for the approved uses of medical devices,” said Director George M. Karavetsos of FDA Office of Criminal Investigations. “When manufacturers ignore FDA’s regulatory authority, they undermine these important assurances.”

The civil settlement with Biocompatibles resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery.  The civil lawsuit was filed in the Western District of Texas and is captioned United States ex rel. Ryan Bliss v. Biocompatibles, Inc., et al.  As part of today’s resolution, Bliss will receive approximately $5.1 million from the civil settlement.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.

The settlement with Biocompatibles was the result of a coordinated effort among the U.S. Attorney’s Offices for the District of Columbia and the Western District of Texas, and the Civil Division’s Consumer Protection Branch and Commercial Litigation Branch, with assistance from the FDA’s Office of Chief Counsel, HHS’ Office of Counsel to the Inspector General and the Department of Defense’s Defense Criminal Investigative Service.  The criminal investigation was conducted by the FDA’s Office of Criminal Investigations.   

Except for the conduct admitted in connection with the criminal plea, the claims resolved by the civil settlement are allegations only, and there has been no determination of liability.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch.  For more information on the Commercial Litigation Branch’s Fraud Section, visit https://www.justice.gov/civil/fraud-section.  

 

The Justice Department announced today that its Civil Rights Division plans to deploy more than 500 personnel to 67 jurisdictions in 28 states for the Nov. 8, 2016, general election.

Although state and local governments have primary responsibility for administering elections, the Civil Rights Division is charged with enforcing the federal voting rights laws that protect the rights of all citizens to access the ballot on Election Day.  Since the passage of the Voting Rights Act of 1965, the department has regularly monitored elections in the field in jurisdictions around the country to protect the rights of voters.

“The bedrock of our democracy is the right to vote, and the Department of Justice works tirelessly to uphold that right not only on Election Day, but every day,” said Attorney General Loretta E. Lynch.  “We enforce federal statutes related to voting through a range of activities – including filing our own litigation when the facts warrant, submitting statements of interest in private lawsuits to help explain our understanding of these laws, and providing guidance to election officials and the general public about what these laws mean and what they require.  On Election Day itself, lawyers in the Civil Rights Division’s Voting Section will staff a hotline starting in the early hours of the morning, and just as we have sent election monitors in prior elections, we will continue to have a robust election monitors program in place on election day.  As always, our personnel will perform these duties impartially, with one goal in mind: to see to it that every eligible voter can participate in our elections to the full extent that federal law provides.  The department is deeply committed to the fair and unbiased application of our voting rights laws and we will work tirelessly to ensure that every eligible person that wants to do so is able to cast a ballot.”

Leading up to and throughout Election Day, Civil Rights Division staff members will be available by telephone to receive complaints related to possible violations of the federal voting rights laws (Toll free at 1-800-253-3931 or 202-307-2767 or TTY 202-305-0082).  In addition, individuals may also report such complaints by fax to 202-307-3961, by email to voting.section@usdoj.gov and by a complaint form on the department’s website: www.justice.gov/crt/votercomplaint.   

Allegations of election fraud are handled by the 94 U.S. Attorneys’ Offices across the country and the Criminal Division’s Public Integrity Section.  Complaints may be directed to any of the local U.S. Attorneys’ Offices, the local FBI offices or the Public Integrity Section at 202-514-1412.  A list of U.S. Attorneys’ Offices and their telephone numbers can be found at www.justice.gov/usao/find-your-united-states-attorney.  A list of FBI offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.

As always, complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place).  Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911.  They should also be reported to the department after local authorities have been contacted.

On Election Day, the Civil Rights Division will monitor the election on the ground in 67 jurisdictions for compliance with the federal voting rights laws: 

• Bethel Census Area, Alaska;
• Dillingham Census Area, Alaska;
• Kusilvak Census Area, Alaska;
• Yukon-Koyukuk Census Area, Alaska;
• Maricopa County, Arizona;
• Navajo County, Arizona;
• Alameda County, California;
• Napa County, California;
• Siskiyou County, California;
• East Hartford, Connecticut;
• Farmington, Connecticut;
• Hartford, Connecticut;
• Middletown, Connecticut;
• New Britain, Connecticut;
• Newington, Connecticut;
• West Hartford, Connecticut;
• Hillsborough County, Florida;
• Lee County, Florida;
• Miami-Dade County, Florida;
• Orange County, Florida;
• Palm Beach County, Florida;
• Fulton County, Georgia;
• Gwinnett County, Georgia;
• Hancock County, Georgia;
• Chicago, Illinois;
• Cook County, Illinois;
• Finney County, Kansas;
• Orleans Parish, Louisiana;
• Quincy, Massachusetts;
• Dearborn Heights, Michigan;
• Detroit, Michigan;
• Hamtramck, Michigan;
• St. Louis, Missouri;
• Douglas County, Nebraska;
• Mineral County, Nevada;
• Washoe County, Nevada;
• Middlesex County, New Jersey;
• Cibola County, New Mexico;
• Kings County, New York;
• Orange County, New York;
• Queens County, New York;
• Cumberland County, North Carolina;
• Forsyth County, North Carolina;
• Mecklenburg County, North Carolina;
• Robeson County, North Carolina;
• Wake County, North Carolina;
• Benson County, North Dakota;
• Rolette County, North Dakota;
• Cuyahoga County, Ohio;
• Franklin County, Ohio;
• Hamilton County, Ohio;
• Allegheny County, Pennsylvania;
• Lehigh County, Pennsylvania;
• Philadelphia County, Pennsylvania;
• Pawtucket, Rhode Island;
• Providence, Rhode Island;
• Bennett County, South Dakota;
• Jackson County, South Dakota;
• Oglala Lakota County, South Dakota;
• Shelby County, Tennessee;
• Dallas County, Texas;
• Harris County, Texas;
• Waller County, Texas;
• San Juan County, Utah;
• Fairfax County, Virginia;
• Prince William County, Virginia, and
• Milwaukee, Wisconsin.

The department will gather information on, among other things, whether voters are subject to different voting qualifications or procedures on the basis of race, color or membership in a language minority group; whether jurisdictions are complying with the minority language provisions of the Voting Rights Act; whether jurisdictions permit voters to receive assistance by a person of his or her choice if the voter is blind, has a disability or is unable to read or write; whether jurisdictions provide polling locations and voting systems allowing voters with disabilities to cast a private and independent ballot; whether jurisdictions comply with the voter registration list requirements of the National Voter Registration Act; and whether jurisdictions comply with the provisional ballot requirements of the Help America Vote Act.  To assist in these inquiries, the department has deployed personnel who speak Spanish and a variety of Asian and Native American languages.  Department personnel will also maintain contact with local election officials.

Last month, the Justice Department announced efforts to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation or fraud in the election process.  More information about the Voting Rights Act and other federal voting rights laws is available on the Civil Rights Division’s website at www.justice.gov/crt/voting-section.

The Justice Department filed a statement of interest today in the U.S. District Court for the Western District of Virginia addressing the constitutionality of state policies that automatically suspend the driver’s licenses of those who fail to pay court fines or fees.  The statement of interest was filed in Stinnie et al. v. Holcomb, a class action brought by four individuals whose driver’s licenses were suspended because they could not afford to pay fines, fees and costs assessed by Virginia courts.

The statement of interest advances the United States’ position that suspending a driver’s license is unconstitutional if it is done without providing due process and without assessing whether the individual’s failure to pay was willful or the result of an inability to pay.  As the Supreme Court has affirmed, the Constitution prohibits punishing a person because of his or her poverty.  The United States’ brief explains that the defendant’s alleged “practice of automatically suspending the driver’s license of any person who fails to pay outstanding court debt—without inquiring into ability to pay—violates that constitutional principle.”  Without taking into account an individual’s ability to pay, the practice results in indigent defendants having their driver’s licenses suspended because they cannot afford fines and fees, while defendants who can afford to pay do not.  The brief argues that, if the facts as alleged by plaintiffs are true, such practice violates the due process and equal protection clauses of the 14th Amendment. 

In Stinnie v. Holcomb, the plaintiffs allege that their driver’s licenses were indefinitely suspended because they did not pay court fines and costs that they could not afford.  They further allege that 900,000 people in Virginia, or one in six drivers, have had their licenses suspended for failure to pay court debt.  The department’s statement of interest in this case rests on a fundamental principle, developed in a long line of Supreme Court cases, “that conditioning access or outcomes in the justice system solely on a person’s ability to pay violates the Fourteenth Amendment.”  The brief also explains that a driver’s license is a constitutionally protected interest under clear Supreme Court precedent and that it cannot be suspended under the circumstances permitted in Virginia without adequate notice and a meaningful opportunity to be heard first.

“People depend on driver’s licenses to get to work, access health care and provide for their families – and so when their license is suspended for reasons that do not relate to public safety, it unnecessarily disrupts lives and harms communities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division.  “This brief advances the department’s robust efforts to prevent unlawful practices that punish poverty at every stage of the justice system and that trap vulnerable residents in cycles of debt from court fines and fees.”

“The Constitution prohibits punishing a person for their poverty,” said Director Lisa Foster of the Office for Access to Justice.  “Yet suspending a person’s driver’s license when they are unable to pay court debt does just that.  And it’s also counterproductive.  How can a person pay their fines and fees if they lose their job because they can’t drive to work?”

“Driver’s licenses permit individuals to work and contribute to society in positive ways,” said U.S. Attorney John P. Fishwick Jr. of the Western District of Virginia.  “It makes no sense to suspend this privilege because a person is poor.”

In recent years, the department has taken several steps to address the unequal treatment of the poor in the justice system.  In March 2015, the Civil Rights Division addressed a range of harmful practices in the enforcement of fines and fees, including the suspension of driver’s licenses to coerce payment, in its investigation of Ferguson, Missouri.  In March 2016, the division and the Office for Access to Justice sent a Dear Colleague Letter to state courts clarifying the constitutional limits on coercing payment of court debt, including through license suspensions.

Plaintiffs in Stinnie v. Holcomb filed their complaint in federal court in July.  The defendant is the commissioner of the Virginia Department of Motor Vehicles.  In October, the state’s Office of the Attorney General filed a motion to dismiss the case.  In its filing, the United States does not take a position on the factual accuracy of the plaintiffs’ claims, but instead addresses the appropriate legal framework for analyzing their claims.