District Not Recorded

The United States has sued an Oregon City, Oregon woman to bar her from promoting an alleged tax fraud scheme, the Justice Department announced today.  The government’s complaint alleges that Priscilla E. Schrock promotes the formation and use of “Religious Non-Profit Corporations” (RNPCs), which Schrock falsely informs her customers are exempt from tax laws.  According to the complaint, Schrock claims that by assigning income to the RNPC, the customer can avoid paying federal income tax on their income.  Schrock also tells her customers that transferring assets to an RNPC protects the assets from the Internal Revenue Service (IRS) collection action, the complaint alleges.  The suit asks the court to bar Schrock from promoting and selling the scheme and to order her to provide a list of her customers’ names, addresses, telephone numbers and email addresses to the Justice Department.

According to the complaint, Schrock promotes the scheme through an Oregon City based entity called South Beach Missions.  The complaint also alleges that the U.S.  District Court for the District of Oregon previously enjoined a similar scheme that John D. Fitzgerald promoted.  According to the complaint, Fitzgerald and Schrock are friends and some of Fitzgerald’s former customers are now Schrock’s customers. 

According to the complaint, Schrock and South Beach Missions know or have reason to know the statements they make about RNPCs, aka corporations sole, are false sham non-profit corporations.  The IRS has issued guidance regarding sham non-profits and advised the public to be aware of tax evasion schemes that misuse corporation sole laws.  The IRS has specifically advised that “[a] taxpayer cannot use a corporation sole created to avoid or evade income taxes as a means to exclude the taxpayer’s personal income from tax.” 

Abusive tax schemes and return preparer fraud are on 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.

A federal grand jury in Sacramento, California returned an indictment today charging a former Internal Revenue Service–Criminal Investigation (IRS-CI) special agent with six counts of filing false income tax returns, one count of corruptly endeavoring to obstruct the internal revenue laws, one count of theft of government money and one count of destroying records during a federal investigation, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, U.S. Attorney Brian J. Stretch of the Northern District of California, Special Agent in Charge Rod Ammari of the Treasury Inspector General for Tax Administration (TIGTA) and Acting Special Agent in Charge Darrell Waldon of IRS-CI.

According to the allegations in the indictment, Alena Aleykina, of Sacramento, a certified public accountant and former IRS-CI special agent, filed false individual income tax returns for the years 2009, 2010 and 2011, on which she claimed false filing statutes, dependents, deductions and losses and tax returns on behalf of two trusts.  The indictment further alleges that, between 2008 and 2013, Aleykina attempted to obstruct the IRS by preparing false tax returns for herself, family members, trusts and partnerships and by making false statements to representatives of the Department of the Treasury and attempted to obstruct a federal investigation by destroying evidence on a government computer.  Aleykina is also charged with fraudulently causing the IRS to issue IRS Tuition Assistance Reimbursement payments to her.

If convicted, Aleykina faces a statutory maximum sentence of three years in prison on each count of filing a false tax return and corruptly endeavoring to obstruct the internal revenue laws, 10 years in prison for the charge of theft of government money and 20 years in prison for the destruction of evidence charge, as well as a period of supervised release and monetary penalties.

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

Principal Deputy Assistant Attorney General Ciraolo, U.S. Attorney Stretch, Special Agent in Charge Ammari and Acting Special Agent in Charge Waldon thanked agents of TIGTA and IRS-CI, who conducted the investigation, and Assistant U.S. Attorney Thomas Newman of the Northern District of California and Trial Attorneys Gregory Bernstein and Charles O’Reilly of the Tax Division, who are prosecuting this case.

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

A former Palo Alto, California, based global vice president of SAP SE and two other individuals were charged in a federal indictment for their roles in a scheme to commit insider trading and money laundering that allegedly resulted in hundreds of thousands of dollars in profits.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Inspector in Charge Regina L. Faulkerson of the U.S. Postal Inspection Service’s (USPIS) Criminal Investigations Group made the announcement.

Christopher G. Salis, 39, of San Mateo, California, a former SAP global vice president; Douglas M. Miller, 40, of Dyer, Indiana; and Edward M. Miller, 43, of Munster, Indiana, were charged in a 17-count indictment returned yesterday by a federal grand jury in the Northern District of Indiana.

The indictment charges all defendants with one count of conspiracy to commit wire fraud and securities fraud, one count of conspiracy to commit money laundering and one count of conspiracy to structure currency transactions involving a financial institution for the purpose of evading the reporting requirements.  In addition, Salis is charged with four counts of wire fraud and five counts of securities fraud; Douglas Miller is charged with six counts of wire fraud, five counts of securities fraud and one count of making false statements; and Edward Miller is charged with one count of wire fraud, one count of securities fraud, one count of witness harassment and one count of obstruction of justice.

According to allegations in the indictment, while Salis was employed as a SAP global vice president, he obtained material, non-public information about SAP’s acquisition of Concur, which he disclosed to Douglas Miller in violation of a duty of confidentiality.  Douglas Miller, Edward Miller and others then allegedly purchased securities in Concur based on this information for the purposes of profiting from these transactions and returning a portion of the profits to Salis.  Following the acquisition, the indictment alleges that Douglas Miller and Edward Miller sold the securities and Douglas Miller made approximately $119,000 and Edward Miller made approximately $149,000.  Other traders who allegedly used the information profited a total of approximately $237,000.  In order to conceal the nature of the proceeds, the Millers allegedly used cash, money orders and checks to transfer some of their trading profits to Salis.  In total, Salis allegedly received nearly $90,000 from his co-conspirators.

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

USPIS investigated the case.  Trial Attorneys L. Rush Atkinson, Jennifer G. Ballantyne and Gary A. Winters of the Criminal Division’s Fraud Section are prosecuting the case.  The Securities and Exchange Commission has provided substantial assistance in this matter.

Submitted Checks Drawn on Closed Accounts to IRS

A Salt Lake City, Utah grand jury returned an indictment today charging a chiropractor and health care products business owner with one count of attempting to evade the payment of his federal income taxes for the years 2005, 2006, 2007 and 2010, and one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney John W. Huber for the District of Utah. 

According to the allegations in the indictment, in March 2012, Louis Hansen, presented a check to the Internal Revenue Service (IRS) in the amount of $342,699.41 that was drawn on a closed bank account in an attempt to pay taxes, penalties and interest that he owed for tax years 2005, 2006, 2007 and 2010.  He also caused a copy of this check to be mailed to an IRS revenue officer, as well as a signed certified letter claiming that he had submitted the check to discharge his debt.  The indictment further alleges that in June 2012, Hansen presented four additional checks to the IRS drawn on a different closed bank account in an attempt to have funds credited to his IRS tax account.  Each check was in the amount of $425,000.  According to the indictment, at the time these four checks were presented to the IRS, Hansen owed more than $240,000 in taxes for the years 2005, 2006, 2007, 2010 and 2011.

If convicted, Hansen faces a statutory maximum sentence of five years in prison on the tax evasion charge and a statutory maximum sentence of three years in prison on the charge of endeavoring to impede the internal revenue laws, as well as a period of supervised release and monetary penalties.

An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Huber thanked agents of IRS–Criminal Investigation, who conducted the investigation and Assistant U.S. Attorney Kevin L. Sundwall and Assistant Chief Andrew Kameros of the Tax Division, who are prosecuting the case.

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

Today, U.S. Supreme Court Justice Stephen Breyer addressed 32 judges from Colombia, the Dominican Republic, El Salvador, Mexico, Panama and Peru as part of a Department of Justice training program at the Judicial Studies Institute (JSI) in San Juan, Puerto Rico, for the judiciaries of the Western Hemisphere. 

Justice Breyer stressed the importance of their contribution to rule of law in the hemisphere and lauded them for their role in the transformation of Latin American justice.  Justice Breyer also met separately with a special delegation from Mexico that included a Supreme Court Justice, with whom he discussed their country’s ongoing justice reform.  

Through Spanish instruction, practical exercises and opportunities to observe courtroom proceedings, judges who participated in the JSI program learned about evidentiary guidelines, the role of judges and courtroom management in an accusatorial justice system.  This capacity building is critical to the region as judges’ roles are drastically different from those in an inquisitorial system, where judges decide cases based on paper files behind closed doors.  In an accusatorial system, judges are responsible for writing opinions, weighing evidence and guaranteeing the rights of both the victims and the accused, all in an open courtroom setting.  

With the support of U.S. Supreme Court Justice Sonia Sotomayor, and in partnership with the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, the Justice Department’s Office of Prosecutorial Development Assistance and Training (OPDAT) launched JSI in 2012 as a response to the wave of justice sector reforms in Latin America that saw many countries transition to an accusatorial system.  Since that time, OPDAT, with its partners at the University of Puerto Rico and Inter-American University law schools, has hosted over 500 Latin American judges. 

Please visit https://www.supremecourt.gov/ for more information about the U.S. Supreme Court and https://www.justice.gov/criminal-opdat for more information about OPDAT’s capacity-building efforts around the world.

A resident of West Bridgewater, Massachusetts was sentenced to 10 months in prison today for filing a false individual income tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division. 

According to documents filed with the court, Keith Eaton failed to file federal individual income tax returns with the Internal Revenue Service (IRS) for 1998 through 2003.  In or about May 2004, the IRS assessed Eaton more than $280,000 in taxes, interest and penalties for the years 1998 through 2001.

From November 2004 to April 2008, Eaton was employed at a heating and air conditioning company in Brockton, Massachusetts.  Each year, the company provided Eaton with Forms 1099 reflecting his compensation.  Despite receiving these Forms 1099 reporting significant compensation, Eaton willfully failed to file timely individual income tax returns with the IRS for the years 2004 through 2008.  In November and December 2009, Eaton filed individual income tax returns for the years 2000 through 2008 on which he falsely reported receiving no income.

In or about November 2008, Eaton began operating Eaton Mechanical LLC, a heating and air conditioning business.  In an attempt to thwart the IRS’ efforts to collect his back taxes, Eaton caused checks from the business bank account to be made payable to himself and then cashed the checks.  Eaton used the cash to pay his personal expenses, including his mortgage.  Finally, despite having sufficient income from the operation of his business to require him to file income tax returns, Eaton failed to file individual income tax returns for the years 2009 through 2012.

In addition to the prison term imposed, Eaton was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $399,132 for his 1998 through 2012 unpaid tax liabilities. 

Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-Criminal Investigation and the FBI’s Boston Field Division, who conducted the investigation, and Trial Attorneys Brittney Campbell and Kenneth Vert 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.

A Leawood, Kansas business owner was sentenced yesterday to 51 months in prison after being convicted of tax evasion following a five-week jury trial in April announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and Acting U.S. Attorney Thomas Beall of the District of Kansas.

According to the evidence at trial, Kathleen M. Stegman, 58, owned and operated Midwest Medical Aesthetics (Midwest).  During the years 2006 through 2010, Stegman concealed cash receipts, diverted hundreds of thousands of dollars from Midwest for her personal use, created and used an entity to falsify business expenses and hide Midwest customer checks and falsely claimed as business expenses a mortgage payment on an investment property, the cost of an invisible dog fence, residential gas and electricity bills, Mercedes Benz lease payments and an investment in a deck coating product.  The government also presented evidence that Stegman used the money she diverted from Midwest to fund a lavish lifestyle, including the purchase of condominiums in Las Vegas, over $300,000 in gold coins, a 54-foot yacht and real estate in North Carolina.    

The evidence presented also established that Stegman caused an employee to destroy business records during a civil tax audit, provided the Internal Revenue Service (IRS) with false and altered documents and attempted to tamper with a witness’s statement to criminal investigators.

In addition to the prison term, U.S. District Judge Julie Robinson ordered Stegman to pay restitution to the IRS in the amount of $68,733 as a condition of supervised release and a fine in the amount of $100,000.

Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Ryan R. Raybould and John T. Mulcahy of the Tax Division and Assistant U.S. Attorney Jabari B. Wamble of the District of Kansas, 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 announced today that it has moved to intervene in Savage et al. v. Pocomoke City et al., a private lawsuit alleging race discrimination and retaliation under Title VII of the Civil Rights Act of 1964 by Pocomoke City, Maryland, the Worcester County Sheriff and the state of Maryland.  Title VII is a federal statute that prohibits employment discrimination on the basis of the basis of sex, race, color, national origin and religion. 

The United States’ complaint in intervention alleges that the Worcester County Sheriff and the state of Maryland subjected former Pocomoke City Police Officer Franklin Savage to a racially-hostile work environment while he was assigned to a joint task force operated by the sheriff’s office.  Specifically, Officer Savage was repeatedly subjected to racial epithets as well as other racially-charged acts of harassment, humiliation and intimidation by his co-workers and supervisors.  Officer Savage’s complaints about racial harassment allegedly resulted in a series of retaliatory actions against him by the Worcester County Sheriff’s Office and Pocomoke City, concluding with the termination of his employment.  The complaint further alleges that Pocomoke City similarly retaliated against two other officers – former Pocomoke City Police Chief Kelvin Sewell and former Pocomoke City Police Lieutenant Lynell Green – for supporting Officer Savage in the course of his complaints.  Chief Sewell was eventually terminated as well.

The complaint seeks a court order that requires the defendants to implement policies and procedures that will ensure a workplace environment free of discrimination and retaliatory conduct.  The United States also seeks relief, including monetary relief for the three charging parties as compensation for damages caused by the alleged discrimination.

“Federal law protects against discrimination and retaliation in the workplace,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “In police departments, that protection is vital not only for individual officials, but also for the communities they serve.  The Justice Department is firmly committed to ensuring that our nation’s state and local law enforcement agencies comply with Title VII’s promise of a workplace free from racial discrimination and retaliation.”

Officer Savage, Chief Sewell and Lieutenant Green each filed charges of discrimination with the Equal Employment Opportunity Commission (EEOC).  The EEOC’s Baltimore Office investigated the charges and made reasonable cause findings.  After unsuccessful conciliation efforts, the EEOC referred the charges to the Justice Department.

“No one should have to face harassment and retaliation while at work,” said EEOC Chair Jenny R. Yang.  “When public employees face discrimination, it undermines the trust and credibility in our public institutions.  This case represents the latest partnership between EEOC and the Department of Justice to advance our shared Title VII enforcement responsibilities.”

This lawsuit was brought as a result of a joint collaborative effort by the EEOC and the Civil Rights Division to vigorously enforce Title VII.

“EEOC is committed to ensuring the employees who serve the public in critical law enforcement positions are protected by the laws forbidding unlawful harassment and retaliation in the workplace,” said Director Spencer H. Lewis Jr. of EEOC’s Philadelphia District Office, which includes the Baltimore Field Office.  “I am pleased that EEOC and the Department of Justice have established a collaborative relationship that will impact public employers and work together to redress violations of the law when they occur.”

Enforcement of federal employment discrimination laws remains a top priority of the Justice Department.  More information about Title VII and other federal employment laws is available on the Civil Rights Division’s website at www.justice.gov/crt.  The EEOC enforces federal laws prohibiting employment discrimination.  Further information about the EEOC is available on its website at www.eeoc.gov.

Interns for INTERPOL Washington get to make valuable connections with law enforcement during their participation in the six-month program. As an INTERPOL Washington intern, Rachelle Tugade had the opportunity to experience a Police Ride Along with a Prince George’s County Police Officer. This allowed her to accompany the officer during their tour of duty in a police vehicle and act as an observer for the day. The evening started out quietly enough. The officer told her of his previous experiences as a police officer and what it’s like to work in the area. He took her on a detour of the neighborhood and explained the different criminal scenarios that have happened in those areas, which included stabbings, drug overdoses, and assaults. As the police officer put it, “The neighborhood looks normal on the outside, but it’s what’s behind closed doors that matters.”

As the hours passed, things started to liven up a bit as they went to a variety of scenes and served as backup for other officers. Rachelle witnessed a hit-and-run car crash in a residential area, was present at a scene of a robbery at a local store, and went inside different apartment complexes to respond to residents’ emergency phone calls. The officer also introduced her to his colleagues, who told her stories of crazy scenarios they have had to deal with in the past. Overall, Rachelle’s ride along experience was great! She didn’t quite know what to expect, but she’s very glad her internship gave her this opportunity. It definitely broadened her respect for law enforcement and she would recommend anyone interested in law enforcement to contact a local police department and experience a police ride along. For more information on INTERPOL Washington’s internships, please see https://www.justice.gov/interpol-washington/internships.

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

El Departamento de Justicia y el Departamento de Salud y Servicios Humanos [Department of Health and Human Services (HHS)] emitieron una carta orientativa conjunta hoy a los sistemas de bienestar de menores estatales y locales sobre las exigencias del Título VI de la Ley de Derechos Civiles de 1964 y sus normas de implementación.  El Título VI prohíbe la discriminación basada en la raza, el color y el origen nacional en programas y actividades que reciban asistencia financiera federal.

La guía busca asegurarse de que los sistemas de bienestar de menores conozcan sus responsabilidades de proteger los derechos civiles de niños y familias.  La guía forma parte de una asociación en curso entre los departamentos para ayudar a las agencias de bienestar de menores a proteger el bienestar de los niños y asegurar el cumplimiento de las leyes federales contra la discriminación.  El año pasado, los departamentos emitieron una guía sobre la intersección de los requisitos de bienestar de menores y el Título II de la Ley para Personas con Discapacidades, así como también la Sección 504 de la Ley de Rehabilitación.  La guía emitida hoy destaca la clara necesidad de un debate franco y productivo sobre cómo las leyes, políticas, prácticas y prejuicios implícitos de bienestar de menores afectan a las comunidades de color.

Los datos muestran que determinados grupos raciales y étnicos tienen sobrerrepresentación en el sistema de bienestar de menores en comparación con sus números en la población general.  La carta de orientación aborda las quejas de acceso racial e idiomático que los departamentos han recibido alegando una remoción innecesaria de los niños de sus familias biológicas; la denegación de igualdad de acceso a los padres biológicos a servicios de reunificación con competencia cultural; la denegación de colocaciones con familiares o parientes; estadías innecesariamente prolongadas en casas de acogida; y denegación de una participación plena e informada a familiares en los tribunales de familia y servicios sociales simplemente porque tienen conocimientos limitados del inglés a nivel oral, de lectura o de escritura.

“Esta guía ayudará a asegurar que todas las familias, sin importar el acceso racial o idiomático, puedan aceder a servicios de bienestar infantil libres de discriminación,” declaró la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta, jefa de la División de Derechos Civiles del Departamento de Justicia.  “La ley exige que todos los receptores de financiación federal ofrezcan programas, actividades y servicios de manera justa y equitativa sin importar la raza, el color o el origen nacional.  Los sistemas de bienestar de menores estatales y locales tienen una enorme responsabilidad en el apoyo de familias y niños, y esperamos que esta guía ofrezca claridad respecto de la aplicación de obligaciones federales contra la discriminación a la crucial labor que realizan.”

“Esta guía conjunta es otro paso en la dirección correcta para remediar prácticas discriminatorias en las actividades de bienestar de menores,” declaró la Directora de la Oficina de Derechos Civiles del HHS Jocelyn Samuels.  “Todos los profesionales en los sistemas estatales y locales de bienestar de menores tienen la obligación de comprender y cumplir con las leyes federales que protegen a las familias y los niños en las comunidades a las que sirven.  Esperamos que esta guía ofrezca estrategias de amplio alcance para que las agencias de bienestar de menores aborden las prácticas discriminatorias en sus programas y actividades.”  

“Es fundamental para las familias y los niños que las decisiones tomadas por las agencias para el bienestar de menores sean sin discriminación, sea intencional o no,” dijo Mark Greenberg, Secretario Auxiliar para los Niños y las Familias (en funciones) del HHS.  “Nosotros creemos que esta orientación ayudará a las agencias a servir mejor a los niños de todos los orígenes y proporcionar protecciones importantes para las familias y los niños.”

“Todos los niños y las familias merecen ser tratados con respeto y dignidad,” dijo el Comisionado Rafael López de la Administración de Niños, Jóvenes y Familias y Comisionado Auxiliar Interino del Buró de Menores.  “Es crucial que trabajemos juntos para asegurarnos de que nuestros sistemas sean totalmente accesibles, transparentes y justos.  Esta guía es un paso importante para garantizar que todas las familias, sin importar su raza, color u origen nacional, tengan igualdad de acceso a servicios y sean tratadas de manera justa en todo momento.”

El Buró de Menores de la ACF administra la financiación para agencias y tribunales de bienestar de menores.  La ACF también brinda orientación y asistencia técnica a agencias de bienestar de menores respecto de las leyes de bienestar de menores.  La Oficina de Derechos Civiles del HHS y la División de Derechos Civiles del Departamento de Justicia son responsables de garantizar que los sistemas de tribunales estatales y agencias de bienestar de menores financiados respectivamente cumplan con el Título VI y sus normas de implementación.   El departamento también es responsable de garantizar una coacción sistemática y eficaz del Título VI en todas las agencias que reciben financiamiento federal.

Para información adicional sobre la División de Derechos Civiles, visitar www.justice.gov/crt.  Para información adicional sobre el Buró de Menores de la ACF, visitar www.acf.hhs.gov/cb.  Para información adicional sobre la Oficina de Derechos Civiles del HHS, visitar www.hhs.gov/ocr/.

The Justice Department and the Department of Health and Human Services (HHS) issued a joint guidance letter today to state and local child welfare systems on the requirements of Title VI of the Civil Rights Act of 1964 and its implementing regulations.  Title VI prohibits discrimination on the basis of race, color and national origin in programs and activities receiving federal financial assistance. 

The guidance aims to ensure that child welfare systems know about their responsibilities to protect the civil rights of children and families.  The guidance is part of an ongoing partnership between the departments to help child welfare agencies protect the well-being of children and ensure compliance with federal nondiscrimination laws.  Last year, the departments issued guidance on the intersection of child welfare requirements and Title II of the Americans with Disabilities Act, as well as Section 504 of the Rehabilitation Act.  The guidance issued today highlights the clear need for frank and productive discussion about how child welfare laws, policies, practices and implicit bias affect communities of color.

Data shows that particular racial and ethnic groups are overrepresented in the child welfare system compared to their numbers in the general population.  The guidance letter addresses race and language access complaints that the departments have received alleging unnecessary removal of children from their biological families; biological parents being denied equal access to culturally competent reunification services; denial of relative or kinship placements; unnecessarily long stays in foster care; and family members being denied full and informed participation in family courts and social services simply because they have limited proficiency in speaking, reading, writing or understanding the English language.

“This guidance will help ensure that all families, regardless of race or language access, can access child welfare services free from discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “The law requires that all recipients of federal funding deliver programs, activities and services in a fair and equal manner regardless of race, color or national origin.  State and local child welfare systems carry a tremendous responsibility in supporting families and children, and we hope this guidance provides clarity regarding the application of federal nondiscrimination obligations to their critical efforts.”

“This joint guidance is another step in the right direction to remedy discriminatory practices in child welfare activities,” said Director Jocelyn Samuels of HHS’ Office for Civil Rights.  “All professionals in state and local child welfare systems have an obligation to understand and adhere to the federal laws that protect the families and children in the communities that they serve.  We hope this guidance offers far-reaching strategies for child welfare agencies to address discriminatory practices in their programs and activities.” 

“It’s crucial to families and children that the decisions made by child welfare agencies are made without intentional or unintended discrimination,” said Acting Assistant Secretary Mark Greenberg of HHS’s Administration for Children and Families (ACF).  “We believe this guidance will help agencies better serve children of all backgrounds and provide important protections for families and children.”

“All children and families deserve to be treated with respect and dignity,” said Commissioner Rafael López of the Administration on Children, Youth and Families and Acting Associate Commissioner of the Children’s Bureau.  “It is critical that we work together to ensure that our systems are fully accessible, transparent and just.  This guidance is an important step to ensuring that all families, regardless of race, color or national origin, have equal access to services and are treated fairly at all times.”

The ACF’s Children’s Bureau administers funding for child welfare agencies and courts.  ACF also provides guidance and technical assistance to child welfare agencies regarding child welfare law.  HHS’ Office for Civil Rights and the Justice Department’s Civil Rights Division are responsible for ensuring that their respectively-funded state court systems and child welfare agencies comply with Title VI and its implementing regulations.  The department is also responsible for ensuring consistent and effective enforcement of Title VI across federal funding agencies.

Additional information about the Civil Rights Division is available at www.justice.gov/crt.  Additional information about ACF’s Children’s Bureau is available at www.acf.hhs.gov/cb.  Additional information about the HHS’s Office for Civil Rights is available at www.hhs.gov/ocr/.

Two Wayne County, West Virginia business owners pleaded guilty today to federal employment tax charges, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Carol A. Casto for the Southern District of West Virginia.

Michael Taylor, 48, pleaded guilty to one count of conspiracy to defraud the United States in the ascertainment, computation, assessment and collection of employment tax from mid-2007 through 2010.  Jeanette Taylor, 44, pleaded guilty to one count of failing to pay over employment tax for the last quarter of 2009.

According to documents filed with the court, from 2000 through 2010, Michael Taylor and Jeanette Taylor owned and operated a construction business in Wayne, West Virginia, that transported steel and sold gravel and concrete throughout West Virginia and Kentucky.  The Taylors changed the name of the business several times, though the operations of the business remained the same.  From 1999 to 2004, the business operated as Taylor Contracting & Taylor Ready-Mix LLC.  In 2004, the name changed again to Taylor Contracting/Taylor Ready-Mix LLC.  In 2010, the name changed a third time to Bluegrass Aggregates.

Both Michael Taylor and Jeanette Taylor were responsible for collecting, accounting for and paying over to the Internal Revenue Service (IRS) federal income taxes and social security and Medicare taxes that were withheld from the wages of their employees.  From July 2007 through 2010, the Taylors withheld over $850,000 from their employees’ paychecks.  Instead of paying over the withheld taxes to the IRS, the Taylors used the funds to purchase property and finance their horse farm.  The Taylors also failed to pay over $490,000 in employment taxes for a prior business.  The total tax loss for the Taylors’ conduct is $1.4 million.   

The sentencing hearing has been scheduled for Jan. 23, 2017.  The Taylors each face a statutory maximum sentence of five years in prison, as well as a period of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Casto commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Alexander Effendi and Mara Strier of the Tax Division, who are prosecuting this case.   Principal Deputy Assistant Attorney General Ciraolo also thanked IRS Field Collection for their significant work on this matter.

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

Two former Drug Enforcement Administration (DEA) task force officers were charged in a superseding indictment unsealed today with drug conspiracy, weapons offenses, robbery, obstruction of justice and falsification of records in federal investigations. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office, Special Agent in Charge Monte A. Cason of the Department of Justice Office of the Inspector General (DOJ OIG) Dallas Field Office and Deputy Chief Inspector Brian M. McKnight of the DEA’s Office of Professional Responsibility (OPR) made the announcement.

Karl Emmett Newman, 49, of Kentwood, Louisiana, and Johnny Jacob Domingue, 27, of Maurepas, Louisiana, were indicted by a federal grand jury in the U.S. District Court for the Eastern District of Louisiana on Oct. 7, 2016.  Newman is charged with one count of conspiracy to possess with intent to distribute cocaine and oxycodone, one count of interference with commerce by robbery, one count of possessing a firearm during a crime of violence, one count of possessing a firearm during a drug trafficking crime, two counts of unlawful conversion of property by a government officer or employee, two counts of falsifying records in a federal investigation and one count of obstruction of justice.  Domingue is charged with one count of falsifying records in a federal investigation.  Newman was originally charged on May 13, 2016, in a now-unsealed indictment, and was arrested on that date.  Domingue was arrested on a now-unsealed criminal complaint on May 12, 2016.

In addition to serving as DEA task force officers, Newman and Domingue previously served as deputies with the Tangipahoa Parish, Louisiana, Sheriff’s Office.

The charges and allegations contained in an indictment are only accusations.  The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI, DOJ OIG and DEA-OPR investigated the case.  Assistant Chief Diidri Robinson and Trial Attorney Antonio Pozos of the Criminal Division’s Fraud Section are prosecuting the case.

Today, a federal court in West Palm Beach, Florida permanently barred Renel Herard, individually and doing business as Herard Tax Services and Herard Security & Training Inc., from preparing federal tax returns for others.  In addition to enjoining Herard from preparing, filing or assisting in the preparation or filing of federal tax returns, amended returns, or any other related documents, the court ordered Herard to publish, at his own expense, notice of the injunction for 14 consecutive days in The Palm Beach Post and Radio Vision Nouvelle (WPOM 1600 AM) and to prominently post a copy of the final injunction in the front window of the defendants’ offices until April 30, 2017.  The court also ordered Herard to turn over to the United States a list of all customers for whom Herard or his businesses prepared returns after Jan. 1, 2015, and to provide a copy of the injunction order to anyone with whom Herard worked to prepare or file tax returns for others.  

On Feb. 26, the government filed suit against Herard and alleged that returns prepared by Herard and his businesses have unlawfully understated customers’ income tax liabilities by creating or inflating deductions or fabricating business losses for non-existent businesses and have overstated refunds by falsely claiming tax credits, including education credits, fuel tax credits and medical and child care expenses for ineligible taxpayers who did not incur qualified expenses.  The government alleged that, beginning with returns he prepared for the 2014 tax year, Herard prepared returns that falsely claimed the Premium Tax Credit, a refundable tax credit designed to help eligible individuals and families with low or moderate income afford health insurance purchased through the Health Insurance Marketplace aka the Exchange, by claiming it for customers who did not purchase health insurance through the Exchange.

Return preparer fraud is one of the Internal Revenue Service’s (IRS) 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.

Samaiyah Sharron Armistead, who currently resides in Las Vegas, Nevada, pleaded guilty today in the U.S. District Court for the District of Maryland to one count of conspiracy to commit money laundering, the Department of Justice announced.  The money laundering was part of an international lottery fraud scheme involving co-conspirators in Florida and Jamaica. 

As part of her guilty plea, Armistead agreed that had the case gone to trial, the United States would have proved beyond a reasonable doubt that in February 2014, she received $7,500 in cash at the direction of a co-conspirator and then deposited most of that money into two bank accounts controlled by the co-conspirator.  In addition, Armistead received $32,500 in cash on April 22, 2014, at a pickup point in Berlin, Maryland, where she was scheduled to meet a victim of a lottery scheme.  Instead, Armistead was arrested by police at the pickup point after being handed the money by an undercover officer.   

“The Justice Department is committed to combatting international lottery fraud schemes,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “Conspiring to launder money is a serious crime because it hides other criminal activity and its success encourages fraudsters to continue their schemes.  The Justice Department will continue to prosecute those who seek to conceal criminal activity through money laundering.”

An information charging Armistead with conspiracy to commit money laundering was filed on Sept. 7.  According to the charging document, Armistead agreed with other persons to knowingly conduct a financial transaction that involved the proceeds of unlawful activity, knowing that the property involved in the transaction represented the proceeds of some form of unlawful activity and knowing that the transaction was designed to conceal and disguise the nature, location, source, ownership and control of the proceeds of the unlawful activity.  The government was not required to prove that Armistead knew the details of the fraud, but the government did need to establish that Armistead believed the money was connected to an illegal activity. 

In this case, the money was proceeds of a fraudulent lottery fraud scheme, involving a co-conspirator in the United States and another in Jamaica.  As part of the scheme, a victim was falsely told that she had won a multi-million dollar lottery prize.  To collect the prize, the victim was fraudulently instructed to pay taxes and other up-front fees.  The victim then sent money to various individuals, including the $40,000 that Armistead ultimately received.

“The US Postal Inspection Service is dedicated as part of it mission to ensure that these types of predatory schemes are investigated aggressively,” said U.S. Postal Inspector in Charge Antonio J. Gomez of the Miami Division.  “It is imperative that we continue to work with our partners to protect those vulnerable individuals in our society who fall prey to these schemes so that the U.S. mail isn't used in furtherance of them.”

“This investigation is another example of the importance of state, federal and local law enforcement coordination to identify and dismantle a complex and cross-border criminal enterprise,” said Maryland State Police Superintendent Colonel William Pallozzi.  “The dedicated efforts of troopers, federal agents and prosecutors, deputies, and local police officers ended an illegal operation.”  

Armistead faces a statutory maximum sentence of 20 years in prison and a fine of $500,000 when she is sentenced on Dec. 22 at 2 p.m. 

This prosecution is part of the Department of Justice’s effort to work with federal and local law enforcement to combat fraudulent lottery schemes in Jamaica that prey on American citizens.  According to the U.S. Postal Inspection Service, Americans have lost tens of millions of dollars to fraudulent foreign lotteries.

Principal Deputy Assistant Attorney General Mizer and U.S. Attorney Rod J. Rosenstein for the District of Maryland commended the investigation by the U.S. Postal Inspection Service, the U.S. Department of Homeland Security and the Maryland State Police.  The case was prosecuted by Trial Attorney David A. Frank and Counsel Melanie Singh of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Evan T. Shea. 

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

The nation’s largest nursing home pharmacy, Omnicare Inc., has agreed to pay $28.125 million to resolve allegations that it solicited and received kickbacks from pharmaceutical manufacturer Abbott Laboratories in exchange for promoting the prescription drug, Depakote, for nursing home patients.  CVS Health Corporation, which is headquartered in Rhode Island, acquired Ohio-based Omnicare in 2015, approximately six years after Omnicare ended the conduct that gave rise to the settlement.

“Every day, elderly nursing home residents suffering from dementia rely on the independent judgment of our nation’s healthcare professionals for their personal care and their medical treatment,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Department of Justice’s Civil Division.  “Kickbacks to entities making drug recommendations compromise their independence and undermine their role in protecting nursing home residents from the use of unnecessary drugs.”

Nursing homes rely on consultant pharmacists, such as those employed by Omnicare, to review their residents’ medical charts at least monthly and make recommendations to their physicians about what drugs should be prescribed for those residents.  The settlement announced today resolves allegations that Omnicare solicited and received kickbacks from Abbott in exchange for recommending that physicians prescribe Depakote, an anti-epileptic drug manufactured by Abbott, to elderly nursing home residents.

According to the government’s complaint, Omnicare disguised the kickbacks it received from Abbott in a variety of ways.  Abbott allegedly made payments to Omnicare described as “grants” and “educational funding,” even though their true purpose was to induce Omnicare to recommend Depakote.  For example, Omnicare allegedly solicited substantial contributions from Abbott and other pharmaceutical manufacturers to its “Re*View” program.  Although Omnicare claimed that Re*View was a “health management” and “educational” program, the complaint alleges that it was simply a means by which Omnicare solicited kickbacks from pharmaceutical manufacturers in exchange for increasing the utilization of their drugs on elderly nursing home residents.  In internal documents, Omnicare allegedly referred to Re*View as its “one extra script per patient” program.  The complaint also alleges that Omnicare entered into agreements with Abbott by which Omnicare was entitled to increasing levels of rebates from Abbott based on the number of nursing home residents serviced and the amount of Depakote prescribed per resident.  Finally, the complaint alleges that Abbott funded Omnicare management meetings on Amelia Island, Florida, offered tickets to sporting events to Omnicare management and made other payments to local Omnicare pharmacies.

In May 2012, the United States, numerous states and Abbott entered into a $1.5 billion global civil and criminal resolution that, among other things, resolved Abbott’s liability under the False Claims Act for alleged kickbacks to nursing home pharmacies, including Omnicare and PharMerica Corp.  In October 2015, PharMerica agreed to pay $9.25 million to the United States and numerous states to resolve civil liability under the False Claims Act for the alleged kickbacks from Abbott.  The settlement announced today resolves Omnicare’s role in that alleged kickback scheme.

“This settlement ensures that some of the most vulnerable amongst us, those suffering from dementia, are provided with the level of care they deserve,” said U.S. Attorney John P. Fishwick Jr. for the Western District of Virginia.  “Families and loved ones who make the difficult decision to place those they care about into a nursing home must do so with the confidence that medical decisions are being made with the interests of the patient in mind, not big drug companies.”

Approximately $20.3 million of the settlement will go to the United States, while $7.8 million has been allocated to cover Medicaid program claims by states that elect to participate in the settlement.  The Medicaid program is jointly funded by the federal and state governments.

“It is disturbing that any health care corporation would pay kickbacks that corrupt the professional medical decision making process in order to pad their profits,” said Special Agent in Charge Nicholas DiGiulio of the Department of Health and Human Services Office of Inspector General (HHS OIG).  “These practices are unacceptable and will not be tolerated.”

The settlement with Omnicare announced today, together with the prior settlements with Abbott and PharMerica, resolves allegations in two lawsuits filed in federal court in the Western District of Virginia by Richard Spetter and Meredith McCoyd, former Abbott employees.  The lawsuits were filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery.  The act also allows the government to intervene and take over the action, as it did in part in this case in May 2014.  The United States filed a complaint-in-intervention against Omnicare in December 2014.  As part of today’s resolution, McCoyd will receive $3 million from the federal share of the settlement amount.

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.”

This matter was jointly handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Western District of Virginia, HHS-OIG, the Office of the Attorney General for the Commonwealth of Virginia and the National Association of Medicaid Fraud Control Units.

The cases are captioned United States ex rel. Spetter v. Abbott Labs., et al., Case No. 10-cv-00006 (W.D. Va.) and United States ex rel. McCoyd v. Abbott Labs., et al., Case No. 07-cv-00081 (W.D. Va.).  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

The Justice Department reached a settlement today with American Cleaning Company (ACC) resolving claims that the company discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).  ACC is a maintenance and janitorial company based in Brighton, Massachusetts.

The department’s investigation found that from at least Jan. 15, 2009, until at least Sept. 30, 2015, ACC routinely required workers who are not U.S. citizens to produce specific documents for the Form I-9 and E-Verify processes, whereas U.S. citizens were permitted to choose whatever valid documentation they wished to prove their work authorization.  Under the INA, all workers, including non-U.S. citizens, must be allowed to choose whichever valid documentation they would like to present to prove their work authorization.  It is unlawful for an employer to limit employees’ choice of documentation because of their citizenship or immigration status. 

Under the terms of the settlement agreement, ACC will pay $195,000 in civil penalties, train its human resources staff on the anti-discrimination provision of the INA and review and revise its policies and procedures to conform to the requirements of the INA’s anti-discrimination provision.                                              

“Federal law prohibits discrimination against workers based on their citizenship or immigration status, including during the employment eligibility verification process,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “This Civil Rights Division will continue to protect the rights of lawful, authorized workers to do their jobs without facing discriminatory barriers.”

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 worker hotline above for assistance.

A former Arkansas State Judge was charged in an indictment unsealed today for perpetrating a fraud and bribery scheme in which he dismissed cases on his docket in exchange for personal benefits, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.

O. Joseph Boeckmann, 70, of Wynne, Arkansas, was charged with eight counts of wire fraud and honest services wire fraud, 11 counts related to bribery and two counts of witness tampering in an indictment filed on Oct. 4, 2016, in the Eastern District of Arkansas.  Boeckmann was arrested today and made his initial appearance this afternoon.

As alleged in the indictment, from 2010 to 2015, Boeckmann served as a district judge for the First Judicial District of Arkansas.  In his capacity as a district judge, Boeckmann dismissed traffic citations and misdemeanor criminal charges for young men in exchange for acts that he claimed were “community service,” but which actually benefited Boeckmann himself.  The indictment alleges that on some occasions, Boeckmann used his access to these individuals during their purported “community service” in order to take photographs of the men in compromising positions.  On other occasions, he allegedly dismissed cases in exchange for photographing the men while they were naked, among other things. 

The charges and allegations contained in an indictment are merely accusations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

The FBI investigated this case with assistance of the Arkansas State Police and the Arkansas Judicial Discipline and Disability Commission.  Trial Attorneys Jonathan Kravis and Peter Halpern of the Criminal Division’s Public Integrity Section and Special Prosecutor Jack McQuary of the Arkansas Prosecuting Attorney’s Association are prosecuting the case.

Curtis Allen and Gavin Wright, both 49, and of Liberal, Kansas, and Patrick Eugene Stein, 47, of Wright, Kansas, appeared in federal court to face a charge of conspiring to use a weapon of mass destruction (explosives), in connection with their plot to detonate bombs at an apartment complex in Garden City, Kansas where Somali immigrants live and worship.

The announcement was made by Assistant Attorney General for National Security John P. Carlin and Acting U.S. Attorney Tom Beall of the District of Kansas.

“According to the complaint, these three defendants conspired to conduct a bombing attack against an apartment complex occupied by men, women and children in the Garden City, Kansas community,” said Assistant Attorney General Carlin. “Protecting our nation from such attacks, whether they are rooted in domestic or international terrorism, is our highest priority.”

“These charges are based on eight months of investigation by the FBI that is alleged to have taken the investigators deep into a hidden culture of hatred and violence,” said Acting U.S. Attorney Beall. “Many Kansans may find it as startling as I do that such things could happen here.”

The complaint alleges that since February the FBI has been investigating the defendants’ activities, including their plans to carry out a violent attack against Muslims in southwestern Kansas.  The defendants were key members of a militia group that referred to itself as the Crusaders.  A confidential source attended meetings of the group and provided the FBI with information about the defendants’ activities.

The criminal complaint alleges that the men conducted surveillance to identify potential targets, stockpiled firearms, ammunition and explosive components, and planned to issue a manifesto in conjunction with the planned bombing. The attack, the defendants said, would be intended to “wake people up.”

After considering possible targets, the defendants decided to conduct the attack on a Garden City, Kansas apartment complex that houses a mosque and a large number of members of the Somali community. They discussed obtaining four vehicles, filling them with explosives and parking them at the four corners of the apartment complex to create a large explosion.

On Oct.12, Stein met with an undercover FBI employee in rural Finney County, Kansas.  After examining and test firing automatic weapons, Stein took the source to see the apartment building that the defendants were targeting in Garden City, Kansas. Stein said he would provide ammonium nitrate for the bomb and contribute $200 to $300 for other materials.

Stein also talked with the undercover employee about defendant Allen’s arrest in a domestic violence case in Liberal, Kansas the previous day, Oct. 11. Stein said he was concerned that Allen’s girlfriend would give the Liberal Police Department in Kansas information about the defendants’ plans.

If convicted, the defendants face a maximum sentence of life in federal prison.

A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors. 

Investigating agencies included the FBI, the Liberal Police Department, the Seward County Sheriff’s Office, the Ford County Sheriff’s Office, the Garden City Police Department, the Dodge City Police Department, the Finney County Sheriff’s Office, and Kansas Highway Patrol, and the Kansas Bureau of Investigation. Assistant U.S. Attorney Tony Mattivi for the District of Kansas and Counterterrorism Section Trial Attorney David Cora are prosecuting this case.

An Israeli national was extradited from Bulgaria and arraigned on charges arising from his participation in multiple schemes to defraud a multi-billion dollar United States foreign aid program, the Department of Justice announced today.  

According to the allegations contained in a five-count indictment filed in the United States District Court for the District of Connecticut in Hartford, Yuval Marshak, a former owner and executive of an Israel-based defense contractor, carried out three separate schemes between 2009 and 2013 to defraud the Foreign Military Financing program (FMF) and used a company in the United States to launder some of the proceeds of his fraud.  

Marshak and others falsified bid documents to make it appear that certain FMF contracts had been competitively bid when they had not, according to the indictment.  Marshak further caused false certifications to be made to the United States Department of Defense (DOD) stating that no commissions were being paid and no non-United States content was used in these contracts, when, in fact, Marshak had arranged to receive commissions and to have services performed outside the United States, all in violation of the DOD’s rules and regulations.  Marshak arranged for these undisclosed commission payments to be made to a Connecticut-based company that was owned by a close relative to disguise the true nature and destination of these payments. 

“By falsifying bid documents and receiving undisclosed side payments through a company in the United States, Marshak’s actions threatened the integrity of the FMF program, through which the United States government provides billions of dollars each year in foreign aid to countries around the world,” said Acting Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division.  “Marshak’s extradition marks another step forward in our efforts to coordinate investigations with foreign authorities and is further evidence that the Antitrust Division will continue to vigorously pursue individuals and companies that compromise essential government programs regardless of where they reside.” 

“This alleged fraud scheme targeting the FMF program erodes public confidence in the United States government to properly execute our fiduciary responsibilities for spending United States tax dollars in an efficient and prudent manner,” said Special Agent in Charge Craig W. Rupert of the U.S. Department of Defense’s Defense Criminal Investigative Service (DCIS).  “DCIS and its federal and international partners will continue to pursue and investigate similar fraud allegations in order to shield the American taxpayers' investment in defense.”

“This indictment shows that the Department of Justice will work tirelessly to bring those like Mr. Marshak who are alleged to have defrauded our country's foreign aid programs to justice – even those who reside abroad,” said U.S. Attorney Deirdre M. Daly of the District of Connecticut.

The United States spends billions of dollars each year through the FMF program to provide foreign governments, including Israel, with money which must be used to purchase American-made military goods and services.  The rules and regulations of the FMF program require the disclosure of and approval for any FMF-funded commissions and require that all goods and services be of United States origin to qualify for FMF funding.  These same rules also strongly encourage the use of competitive bidding in the award of all FMF contracts.  American vendors who receive FMF funded contracts are required to certify their compliance with these regulations to the DOD.  

Marshak is charged with two counts of wire fraud, one count of mail fraud, one count of major fraud against the United States and one count of international money laundering.  The wire and mail fraud charges carry a maximum penalty of 20 years in prison and a $250,000 fine.  The major fraud against the United States count carries a maximum penalty of 10 years in prison and a $1 million fine, while the international money laundering charge carries a maximum penalty of 20 years in prison and a $500,000 fine.    

As a result of the investigation, earlier this year the Antitrust Division entered into a non-prosecution agreement with Octal Corp., a New Jersey-based defense contractor that received one of the FMF contracts at issue.  Octal acknowledged that its employees concealed the agreement to pay, and the payment of, the commission on the FMF contract the company received and falsely denied the commission in a written certification to the DOD.  Under the terms of this agreement, Octal agreed to cooperate in the division’s investigation and to pay a monetary penalty of $100,000 and $360,000 in restitution to the DOD.  

The Antitrust Division also entered into a non-prosecution agreement with Hale Products Inc., a Florida-based company that received another FMF contract referenced in the indictment.  Hale acknowledged that, in connection with this FMF contract, its employees concealed the agreement to pay, and the payment of, the commission and falsely denied the commission in a written certification to the DOD.  Hale agreed to cooperate in the division’s investigation and to pay a monetary penalty of $50,000 and $10,200 in restitution to the DOD.  

Marshak is being prosecuted by the Antitrust Division’s New York Office and the Defense Criminal Investigative Service, with assistance from the United States Attorney’s Office for the District of Connecticut and Israel’s Ministry of Defense.  Anyone with information on price fixing, bid rigging or other anticompetitive conduct related to government contracts should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, or visit www.justice.gov/atr/contact/newcase.html. 

A former executive of Coach USA Inc. was criminally charged with obstructing justice and pleaded guilty today for concealing and attempting to destroy documents relevant to a civil antitrust investigation and for providing false and misleading statements during the course of the litigation, the Department of Justice announced.

Ralph Groen, of North Carolina, the former vice president of information technology for Coach USA Inc., admitted to directing his subordinates to conceal and destroy documentary materials relevant to the investigation and providing false and misleading statements to Coach’s investigators, and the Antitrust Division, according to court documents filed in this case in the U.S. District Court for the Southern District of New York.  Additionally, according to court documents, Groen admitted to denying the existence of backup practices and procedures during a deposition taken as part of the litigation.   

“Simply put, executives who obstruct Antitrust Division investigations will be vigorously prosecuted,” said Acting Assistant Attorney General Renata Hesse of the Justice Department’s Antitrust Division.  “It is critical that the division has access to all relevant information to evaluate the potential harm to consumers of the conduct we investigate, and Groen’s actions in this case denied the division that access.”

“With today’s guilty plea, Mr. Groen took responsibility for concealing and destroying documents in a civil antitrust investigation and then lying about it,” said Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office.  “The FBI continues to work together with our partners to protect the integrity of our judicial system and ensure that those who make false and misleading statements under oath are held accountable criminally.”

The civil litigation, which was filed in the United States District Court for the Southern District of New York, related to the New York City hop-on, hop-off tour bus market and challenged Coach USA Inc.’s and City Sights LLC’s formation of the Twin America LLC joint venture in 2009.  On November 17, 2015, the district court entered a Final Judgment requiring Coach and City Sights to pay $7.5 million in disgorgement and to make divestitures to address the competitive harm alleged in the division's lawsuit.
  
This investigation into obstruction of justice is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Washington Field Office.  Anyone with information on price fixing, bid rigging and other anticompetitive conduct should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258, visit http://www.justice.gov/atr/contact/newcase.html or call the FBI’s Washington Office at 202-278-2000.

Travis Reynolds, 21, of Baltimore, pleaded guilty today to one count of violating the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to damage the property of a reproductive health services facility because of the services offered there.

The charge stems from incidents that occurred late in the evening on Feb. 24, 2016, and early in the morning on Feb. 25, 2016, when Reynolds and another man decided to vandalize a Baltimore area women’s health care clinic.  Reynolds spray-painted the words “Baby Killer,” “Kill Baby Here” and other graphic messages across the building where the clinic is located.

During his guilty plea before U.S. Magistrate Judge Beth Gesner of the District of Maryland, Reynolds admitted that he vandalized the clinic because it offered abortion services.  At the time of his arrest, Reynolds admitted to police that he defaced the clinic’s doors, walls and windows because he thought that it would deter women from using the clinic.

“The Justice Department will continue to aggressively enforce the FACE Act, which makes it a crime to intentionally damage a clinic because it offers reproductive health services,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “While people have a First Amendment right to peacefully express their views, they do not have a right to vandalize clinics in the hopes of deterring women from receiving lawful services that those facilities provide.”

The case was investigated by the FBI and the Baltimore County Police Department.  The case was prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division’s Criminal Section, with assistance from the U.S. Attorney’s Office of the District of Maryland.

A Phenix City, Alabama man was sentenced to 24 months in prison today for his role in a stolen identity refund fraud (SIRF) 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.

According to documents filed with the court, Kenneth Fearson, 31, worked at a warehouse that contained employee records for a Columbus, Georgia, company.  The warehouse contained employees’ Forms W-4.  Fearson assisted in selling the Forms W-4 to other individuals, including Charnesha Alexander.  Alexander and others used these Forms W-4 to prepare and file fraudulent tax returns. 

Fearson pleaded guilty to one count of aggravated identity theft in July.  Following his prison term, Fearson will serve six months of supervised release.  In March, Alexander was sentenced to 111 months in prison. 

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of Internal Revenue Service-Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael Boteler and Michael Hatzimichalis of the Tax Division and Assistant U.S. Attorney Jonathan Ross, who are prosecuting this case.

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

Today, Attorney General Loretta E. Lynch announced several steps by the Department of Justice to enable the nationwide collection of data on law enforcement interactions with civilians, including data related to the use of force by law enforcement officers. 

“Accurate and comprehensive data on the use of force by law enforcement is essential to an informed and productive discussion about community-police relations,” said Attorney General Lynch.  “The initiatives we are announcing today are vital efforts toward increasing transparency and building trust between law enforcement and the communities we serve.  In the days ahead, the Department of Justice will continue to work alongside our local, state, tribal and federal partners to ensure that we put in place a system to collect data that is comprehensive, useful and responsive to the needs of the communities we serve.”   

The President’s Task Force on 21st Century Policing called on law enforcement to “collect, maintain and report data . . .  on all officer involved shootings, whether fatal or nonfatal, as well as any in-custody death,” and the department is committed to heeding this call.  In 2014, Congress passed the Death in Custody Reporting Act (DCRA), which required states and federal law enforcement agencies to submit data to the department about civilians who died during interactions with law enforcement or in their custody (whether resulting from use or force or some other manner of death, such as suicide or natural causes) and authorized the Attorney General to impose a financial penalty on non-compliant states.  However, Congress did not impose a similar reporting requirement for ­non-lethal­ uses of force by law enforcement.  In the absence of a statutory mandate, and in an effort to close this gap, the department is partnering with local, state, tribal and federal law enforcement to provide a means for national data collection.  In 2015, and in collaboration with local, state, tribal and federal law enforcement the Federal Bureau of Investigation (FBI) began work on a “National Use of Force Data Collection,” an online portal to collect use-of-force data from law enforcement agencies across the country. 

The Attorney General announced additional details regarding these efforts:

• National Use-of-Force Data Collection.  At the request of local, state, tribal and federal law enforcement agencies, the FBI has been working with such agencies to develop a National Use of Force Data Collection program.  The FBI announced the proposed pilot program last week in the Federal Register.  The pilot study will evaluate the effectiveness of the methodology used to collect the data and the quality of the information collected.  The FBI is seeking comment from all interested parties, including local, state, tribal and federal law enforcement, civil rights organizations and other community stakeholders.  After reviewing and addressing these comments, the FBI will issue a final proposal and plans to begin the pilot data collection program in early 2017.  The pilot study participants are expected to include the largest law enforcement agencies, as well as the FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration and U.S. Marshals Service.  
• DCRA Compliance.  Earlier this summer, the department’s Bureau of Justice Statistics (BJS) issued a draft proposal outlining its plan for collecting death-in-custody data from state and local law enforcement agencies.  Last week, the first public comment period closed, with several thousand comments received.  The department is currently reviewing those comments and it plans to issue an updated proposal in the near future. 
• Federal Reporting under DCRA.  The DCRA requires federal law enforcement agencies to report information on deaths that occur during interactions with federal law enforcement agencies or in their custody, beginning with Fiscal Year 2016 (FY2016) data.  FY2016 ended September 30.  The Attorney General has issued a memorandum to federal law enforcement agencies formally notifying them of their reporting obligations under the DCRA and directing them to BJS for further coordination.
• Police Data Initiative (PDI).  The department’s Community Oriented Policing Services (COPS) Office announced today that it has assumed leadership of the Police Data Initiative (PDI), a data transparency project initiated by the White House in 2015.  Through PDI, participating law enforcement agencies commit to publicly releasing at least three policing datasets, which can include data on stops and searches, uses of force, officer-involved shootings, and other police actions.  Numerous foundations, organizations and companies have stepped up to help.  The PDI currently includes 129 law enforcement agencies, covering more than 44 million people across the country.  To assist with this effort, the COPS Office recently awarded the Police Foundation a $750,000 cooperative agreement through FY2016 funding to support PDI.  Over the next two years, the Police Foundation will work with a cohort of approximately 100 law enforcement agencies to develop promising practices for police open data usage, support community engagement regarding policing data and provide technical assistance to law enforcement agencies to collect and publish open data sets.

These initiatives demonstrate once again the department’s deep commitment to the ideals of the President’s Task Force.  The department will continue to work with local, state, tribal and federal agencies to encourage and support data collection and transparency beyond these projects.           

Understated Gross Receipts by Approximately $1.8 Million

A Spokane, Washington certified public accountant was sentenced yesterday to 15 months in prison for making and subscribing false corporate income tax returns, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Michael C. Ormsby for the Eastern District of Washington.

According to documents filed with the court, Roger Stadtmueller owned and operated Stadtmueller & Associates P.S., an accounting firm that offered accounting and consulting services, including income tax preparation, bookkeeping and financial auditing.  Stadtmueller also owned Zazz, Inc., the corporate entity under which Stadtmueller & Associates P.S. conducted business.  Stadtmueller willfully made and subscribed false and fraudulent corporate income tax returns for Zazz, Inc. for 2006, 2007 and 2008, which understated gross receipts by approximately $1.8 million.

“As a tax professional, Roger Stadtmueller was clearly aware of his legal obligation to honestly and accurately report corporate income, and willfully disregarded this obligation when he filed false corporate income tax returns,” said Principal Deputy Assistant Attorney General Ciraolo. “With yesterday’s sentence, Mr. Stadtmueller pays a substantial price for his criminal conduct.  The department, together with its colleagues in the Internal Revenue Service (IRS) and other law enforcement partners, will continue to pursue and prosecute those who violate our nation’s tax laws.”

Stadtmueller pleaded guilty on July 26.  In addition to the prison term, Stadtmueller was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $400,000.

“It really is inconceivable that a CPA would cheat on his own corporate returns, but that is exactly what Roger Stadtmueller did,” said Special Agent in Charge Darrell Waldon of IRS-Criminal Investigation (CI).  “Now the accountant is being held accountable. Accountants are known for their trustworthiness and integrity and IRS-CI exists to ensure that those qualities permeate our tax system.  When someone violates those principles, and in so doing breaks the law, they will be brought to justice.”

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Ormsby commended special agents of IRS-CI, who conducted the investigation and Senior Litigation Counsel Corey J. Smith and Trial Attorneys Lisa L. Bellamy and Eric C. Schmale 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.

           ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that she and several members of the Guam Human Trafficking Task Force (HTTF) and the NMI Human Trafficking Intervention Coalition (HTIC) attended the 21st International Summit on Violence, Abuse & Trauma held on August 28-31, 2016, sponsored by the Institute on Violence Abuse and Trauma (IVAT).   U.S. Attorney Limtiaco spoke on the topic of “Community Engagement and Reentry:  Preparing Incarcerated Adults and Justice-Involved Youth for Reentry into the Community." 

           The IVAT strives to be a comprehensive resource, training and research center dealing with all aspects of violence, abuse and trauma.  IVAT’s mission is to improve the quality of life for individuals on local, national and international levels by sharing and disseminating vital information, improving collaborations, networking, conducting research and trainings, assisting with direct professional services, providing program evaluations, and consulting to promote violence-free living.

            U.S. Attorney Limtiaco and Victim Witness Coordinator Salome Blas shared information at the Pre-Summit on the efforts in the Pacific region of the U.S. Attorney’s Office and its various task forces, and the importance of a Pacific regional response to address violence prevention and enforcement issues.

           U.S. Attorney Limtiaco and members of the Guam HTTF and NMI HTIC shared information on the Pacific Regional Response to Combat Human Trafficking Initiative (the “Initiative”), which is a collaborative effort of the U.S. Attorney’s Office for the Districts of Guam and the NMI; the U.S. Department of State, Office to Monitor and Combat Trafficking in Persons; the U.S. Department of Labor; the U.S. Department of Interior, Office of Insular Affairs; the Guam HTTF; the NMI HTIC; and other community partners.  U.S. Attorney Limtiaco also elaborated on the intersection and relationship between human trafficking, sexual assault, child abuse and domestic and family violence, and prevention and enforcement efforts in the Pacific region. 

           The Initiative employs a multidisciplinary model, including participation, coordination, and collaboration among law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders.  The Initiative calls for the establishment and provision of victim services, investigation and prosecution of human trafficking, training opportunities, community outreach/ public awareness and prevention programs, and creation of human trafficking task forces and coalitions in the Pacific region island communities.  The Initiative also provides fundamental training in human trafficking, including victimization, investigation and prosecution, prevention efforts, and other related topics to law enforcement, prosecution, victim service providers, social services, medical, mental and public health professionals, faith based organizations, educational institutions, Consulates, and other community stakeholders in our Pacific region island communities, which is critical to effective prevention and enforcement efforts in the region.

             Photos below were taken at the Summit.

The owners of an Indiana biofuel producer pleaded guilty to conspiracy, fraud and false statements for participating in a scheme that generated over $60 million in fraudulent tax credits and U.S. Environmental Protection Agency (EPA) renewable fuels credits (RIN credits) at Triton Energy LLC, a company that purported to produce and sell biofuel for use as transportation fuel.

Fred Witmer, 46, and Gary Jury, 58, pleaded guilty before U.S. District Magistrate Judge Magistrate Judge Susan Collins of the Northern District of Indiana, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance, Special Agent in Charge James D. Robnett for the Internal Revenue Service-Criminal Investigation (IRS-CI) and Special Agent in Charge W. Jay Abbott of the FBI’s Indianapolis Field Office.

According to their pleas, Witmer and Jury were co-owners of Triton Energy LLC and Gen2 Renewable Diesel LLC, both located in Waterloo, Indiana.  Witmer admitted to participating in a scheme with other coconspirators to fraudulently claim tax credits and RIN credits on non-qualifying renewable fuel.  Although the credits required that the fuel be used domestically for transportation, Witmer admitted selling it for uses that included the production of fire starter logs and asphalt and also for power generation.  Jury admitted to participating in a conspiracy to fraudulently claim tax credits and to providing false statements to the EPA.

As part of their pleas, Witmer agreed to serve a sentence of 57 months’ incarceration and Jury agreed to serve a sentence of 30 months’ incarceration. A sentencing hearing, has not yet been scheduled.

“Witmer, Jury, and their co-conspirators defrauded a program Congress had enacted to incentivize the production of biofuels and to help modernize our nation’s energy economy,” said Assistant Attorney General Cruden.  “These serious crimes undermine these important public policies and this case demonstrates they will not go unpunished.  The Justice Department will continue to vigorously prosecute those seeking to manipulate these programs for personal gain.”

“Eliminating fraud in the renewable fuels market is key to achieving the greenhouse gas reductions Congress intended under the Renewable Fuel Standard,” said Assistant Administrator Giles.  “EPA is committed to holding those who violate the law accountable and ensuring a level playing field for companies that follow the rules.”

“When individuals, such as Mr. Witmer, Mr. Jury and their co-conspirators, use fraud and deceitful measures to take advantage of federal tax credits and incentives for personal gain, the harm is felt by all American taxpayers and our economy,” said Deputy Chief Don Fort for IRS-CI.  “IRS-CI will continue to vigorously pursue individuals who attempt to undermine our tax system.”

“The FBI was pleased to be part of another renewable fuel fraud investigation in the state of Indiana, in this case targeting Mr. Witmer, Mr. Jury and their co-conspirators,” said Special Agent in Charge Abbott.  “This fraud scheme also victimized U.S. Taxpayers who believe those who participate in these programs should abide by the rules which govern them.  This multi-agency effort is indicative of the commitment of resources by the FBI against perpetrators seeking to take advantage of incentivized programs in place to modernize our domestic energy programs”

Wire Fraud is punishable by up to 20 years in prison.  Conspiracy is punishable by up to five years in prison.  False Statements to the EPA is punishable by up to two years in prison.

Assistant Attorney General Cruden commended the cooperative investigation by law enforcement, as well as Department of Justice Trial Attorney Adam Cullman and Senior Trial Attorney Jeremy Korzenik, who represented the United States in this case. 

Preparers Allegedly Fabricate Businesses Losses, Claim Fraudulent Credits In Order to Understate Their Customers’ Tax or Overstate their Refunds

Tax R Us, a Detroit-area tax return preparation business, unlawfully understates its customers’ income tax liabilities and overstates refunds by making deliberate misstatements on the returns, according to a new civil lawsuit filed by the Justice Department today.  The suit, filed in federal court in Detroit, asks the court to permanently bar Tax R Us, Vannak Long, Rosalind Warnock, Jasmine Jackson and Mary Jackson from preparing tax returns for others.  The suit also asks the court to order each of them to turn over a list of all of the tax returns they have prepared. 

According to the complaint, Long, the owner of Tax R Us, frequently understated his customers’ gross receipts and overstated their business deductions to minimize their income subject to tax.  The complaint also alleges that Warnock, a past Tax R Us preparer, and current Tax R Us preparers Jasmine Jackson and Mary Jackson prepared returns that fabricate self-employment businesses and business losses to offset their customers’ taxable income from other sources and to increase their customers’ Earned Income Tax Credit. In addition to this improper conduct, Warnock, Jasmine Jackson and Mary Jackson claimed education credits the customers are not entitled to receive, according to the complaint.

In the complaint, the government states that Warnock, Jasmine Jackson and Mary Jackson pleaded guilty to charges of preparing false tax returns.  Jasmine Jackson was sentenced in August.  Mary Jackson and Warnock are awaiting sentencing.  According to the complaint, Long, Warnock, Jasmine Jackson and Mary Jackson’s fraudulent tax preparation caused more than $3 million of harm to the United States.  The government alleges that Tax R Us has had many locations throughout the Detroit-area including:  7635 E. 8 Mile Road, Warren; 16900 E. Warren Street, Detroit; 6900 East 7 Mile Road, Detroit; 3157 Woodward Avenue, Detroit; 21234 Van Dyke Avenue, Warren; 14621 W 8 Mile Road, Detroit; and 143 South Telegraph Road, Pontiac. 

Return preparer fraud is one of the Internal Revenue Service’s (IRS) 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.

As part of INTERPOL Washington’s - U.S. National Central Bureau (USNCB) - internship program, the interns participate in field trips that help them gain valuable experience with law enforcement agencies. USNCB interns are generally U.S. citizens who want to gain insight into the growing nexus of transnational crime as well as law enforcement in the United States and around the world. Recently, interns from all USNCB divisions participated in two exciting field trips.

During the week of September 27, USNCB interns helped the U.S. Marshal Service with active shooter training drills. The Marshals play important roles in stopping criminal activity, and during this field trip the interns experienced some of the dangerous work the Marshals are trained to do.

In an abandoned office building, the interns played multiple roles to help train the Marshals, including victims, active shooters, and fellow police officers. The first drill consisted of interns running through the hallways past the Marshals, yelling about an active shooter. This was designed to teach the Marshals how to deal with frantic witnesses and large crowds when approaching an active shooter situation.

The second drill involved Marshals finding an active shooter solely based on locating the sound of gunshots. This drill also measured friendly fire potential, as the Marshals had to identify an intern dressed as a fellow police officer as an ally and then work with that person to catch the shooter.

The last drill was also the most extreme. Teams of two Marshals were required to infiltrate a dark hallway that was filled with smoke, yelling interns, and distracting noises like sirens and screaming. They then had to locate two active shooters and take them out. While these types of drills can be intense, they prepare the Marshals to assess numerous active shooter scenarios and react to whatever they might find. This field trip taught the interns a lot about the important responsibilities the U.S. Marshals have in their daily jobs. According to INTERPOL Operations and Command Center intern Rachelle Tugade, “The U.S. Marshals field trip was an unforgettable experience. I enjoyed having the opportunity to interact with the Marshals and really appreciated the valuable career advice they had to share with us."

The following week, the INTERPOL Washington interns took a trip to the Federal Bureau of Investigation (FBI) marine base in Quantico, Virginia to watch explosives drills. First, the FBI explosion instructors explained the importance of identifying different types of explosives. The instructors then set off multiple controlled explosions and explained in detail the uses and purposes of each one. The interns were then able to walk around the explosion sites and see the differences in damages between them, which taught them valuable lessons on how to analyze and identify explosion sites that resemble those dealt with by the FBI.

“It’s one thing seeing stories about explosions in TV shows and newspapers, but it’s completely different to experience them in real life,” said Public and Congressional Affairs intern Kimberly Campbell. “The field trip was really eye-opening and it was a privilege to see firsthand some of the incredible work done by FBI bomb technicians.”

The INTERPOL Washington six-month internship program offers an excellent opportunity for those interested in law enforcement to gain experience and connections, as evidenced by these two field trips. 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.

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

The Department of Justice, U.S. Attorney’s Office for the Eastern District of Texas and the U.S. Environmental Protection Agency (EPA) announced today that four Texas companies pleaded guilty and agreed to pay a total of $3.5 million dollars for criminal violations of the Clean Air Act at two oil and chemical processing facilities in Texas.

The information filed in federal court in the Eastern District of Texas charges KTX Limited and KTX Properties Inc., with negligently releasing hazardous air pollutants after a tank explosion at their chemical and petroleum processing facility located in Port Arthur, Texas, on March 31, 2011. The explosion killed one worker at the plant and severely injured two others. 

According to the factual basis of the plea agreement, KTX Limited and KTX Properties Inc, authorized two contract workers to perform welding or “hot work” on piping connected to a tank at their Port Arthur facility.  Prior to beginning the welding, the defendants falsified the “hot work” permit issued to the workers and failed to properly drain, isolate and decontaminate the tank and connecting equipment as required by Occupational Safety and Health Act (OSHA) regulations.  As a result, the welding work ignited vapors causing the tank to explode and release hazardous air pollutants to the environment.  Because the defendants had failed to properly inspect and maintain the tank pursuant to generally accepted industry standards, the exploding tank collapsed spilling burning product which severely injured two workers.  A third worker was killed when the rails and ladder from the collapsing tank fell on his head. 

The information also charges Crosby LP and Ramsey Properties LP with failing to monitor leaks of ground-level ozone (smog) producing air pollutants at their chemical processing facility in Crosby, Texas, from 2008 until 2012.  Pursuant to the factual basis, the defendants also admitted that they falsified records and reports for these Title V permit requirements to EPA and the Texas Commission of Environmental Quality certifying the facility was complying with the permit requirements.

“The dishonest and outright failure to adhere to workplace standards and practices can lead to death and injury to American workers who deserve better, as this case tragically shows,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “The Justice Department is committed to enforcing environmental and workplace safety laws that protect workers from this kind of egregious behavior and to help ensure it doesn’t happen again.”

“Safety inspections involving toxic or hazardous materials are mandatory and vital to the safety of the worker and the surrounding communities,” said Acting U.S. Attorney Brit Featherston for the Eastern District of Texas.  Non-performance is unacceptable and will not be tolerated, and offenders will be prosecuted.”

The plea agreement requires the companies to pay a total of $3.3 million in criminal fines.  In addition, the companies will make a $200,000 community service payment to the Southern Environmental Enforcement Network (SEEN).  The payment will be used by SEEN for hazardous air release prevention and emergency response training to state and local environmental and law enforcement agencies. 

“When handled or stored improperly, chemicals can result in severe injuries or even death, so protecting communities from the harmful effects of hazardous chemicals is a priority for EPA,” said Special Agent in Charge Christopher R. Brooks of EPA’s criminal enforcement program for Texas.  “This case emphasizes the importance of having – and following – a plan to manage risks associated with storing hazardous chemicals, which help companies avoid accidents and enable local emergency responders to be better prepared.”      

“Employee safety is of paramount importance as there is no excuse for workers not returning to their families at the end of the day,” said Regional Administrator Kelly Knighton for OSHA Region 6.  “Resulting from an initial OSHA fatality investigation, I commend the Federal and State partners for holding accountable, to the fullest extent of the law, those employers that take shortcuts and endanger the safety and health of their workers.”

Assistant U.S. Attorney Joseph R. Batte of the Eastern District of Texas and Trial Attorneys Richard Powers and David Kehoe of the Department of Justice, Environmental Crimes Section, prosecuted the case.  The case was investigated by EPA’s Criminal Investigation Division and assisted by the Texas Commission on Environmental Quality, the Texas Parks and Wildlife Department and OSHA.

Former Berrien County, Georgia, Sheriff, Anthony Heath, 45, was sentenced to 30 months in prison and three years of supervised relief, for using excessive force against two non-resistant arrestees.  Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney G.F. Peterman III of the Middle District of Georgia made the announcement.

On June 29, 2016, Heath pleaded guilty to two counts of violating an individual’s civil rights.  He was sentenced today by Senior U.S. District Court Judge Hugh Lawson of the Middle District of Georgia. 

According to Heath’s guilty plea, on Jan. 12, 2012, Sheriff Heath and several deputies from the Berrien County Sheriff’s Office (BCSO) engaged in an extended foot chase of an individual identified only as M.V., who they were attempting to arrest.  A BCSO deputy eventually saw M.V. in the woods and arrested him without incident.  When a deputy reported to Heath that M.V. was in custody, the sheriff ordered deputies to hold M.V. in the woods until he could get there.  When Heath arrived, M.V. was lying face-down on the ground, with his hands cuffed behind his back, and was not resisting arrest.  Nevertheless, Heath kicked M.V. in the ribs, punched him in the head with a closed fist multiple times and forcefully kneed him in the ribs multiple times, causing M.V. to suffer pain and have difficulty breathing.  Heath bruised his hand punching M.V. in the head. 

During a separate incident, on Oct. 14, 2014, Heath repeatedly punched and kicked another arrestee identified only as J.H., even though J.H. surrendered, lay down on the ground and did not attempt to flee or threaten anyone at any point after his arrest.  Heath punched J.H. with sufficient force to cause his own hand to become swollen and bruised.  Heath’s punches caused J.H. to bleed from his mouth and to feel pain.  As a result of his conviction, Heath was removed from his position as sheriff. 

“When Heath beat compliant, handcuffed arrestees, he abused the public’s trust and did a disservice to his fellow colleagues in law enforcement, the vast majority of whom do their jobs with honor and integrity,” said Principal Deputy Assistant Attorney General Gupta.  “The Justice Department will continue to ensure that law enforcement officers protect the rights of all individuals in their custody.”                                                                                                                      

“The Sheriff is the chief law enforcement officer in his county,” said U.S. Attorney Peterman.  “His duty to ‘serve and protect’ extends to the arrestees just as much as it does to the rest of the community.  His victims are not just those he assaulted in this case, but include the legions of good, decent law enforcement officers who will have to live under the shadow of mistrust his actions have created, as well as the good citizens who have had their faith in law enforcement challenged by those actions.”

The FBI conducted the investigation.  Trial Attorneys Stephen Curran and Mary J. Hahn of the Civil Rights Division’s Criminal Section prosecuted the case.

Delaware is the First Jurisdiction in the Nation to Successfully Comply with the Terms of an Olmstead v. L.C. Settlement and be Released from Court Oversight

The Justice Department announced today that the U.S. District Court for the District of Delaware terminated the remedial settlement agreement governing the state of Delaware’s service system for people with serious and persistent mental illness.  The court agreed with the joint motion of the state and the Justice Department that Delaware had fully complied with the terms of the agreement, based on the assessment of an independent court monitor.

The state significantly expanded and enhanced community-based mental health services for individuals with serious and persistent mental illness under the agreement, as required by the Americans with Disabilities Act (ADA) and the Supreme Court’s Olmstead v. L.C decision.  The agreement emphasized the need to transition institutionalized people to the community and prevent people from unnecessarily entering institutions.

“Our agreement prompted Delaware to institute comprehensive reforms and provide services to people with serious and persistent mental illness in integrated community settings,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.  “Throughout this process, we saw the impact of the state’s hard work, leadership and commitment to drive positive change.  People with mental illness in Delaware can now live in their own communities, engage with their families and friends and lead meaningful, fulfilling lives.”

Since entry of the agreement, the state has significantly reduced its reliance on institutional care, particularly at the state-run Delaware Psychiatric Center (DPC).  It has reduced the number of bed days used by the target population in DPC by 47.2 percent.  The number of Medicaid-eligible Delawareans receiving community-based services has increased by 92 percent since the United States began its investigation. 

Delaware has developed a strong peer and self-advocacy movement that is incorporated into the entire service system: peers orient individuals upon their admission to DPC, assist them during the course of their hospitalization and provide personal care items upon discharge to the community; operate drop-in centers; conduct quality reviews of mental health services; and are essential members of Assertive Community Treatment, intensive case management, crisis apartment and crisis walk-in center teams.

The state has also established a robust quality assurance and performance improvement system in order to continue the reforms and address issues that may arise for people with mental illness in Delaware.  These efforts will be sustained by recently passed legislation that established an independent oversight commission to monitor Delaware’s public mental health system. 

These reforms to the state’s mental health system have also helped reduce unnecessary arrests and incarceration of people with SPMI.  For instance, Delaware created two statewide mobile crisis teams that typically divert 80 to 90 percent of people they encounter from hospitalization and criminal justice interaction.  The state’s crisis walk-in center in Sussex County diverts about 70 percent of people from further hospitalization or criminal justice interaction.  This walk-in center reports that it takes law enforcement officers less than 10 minutes on average to drop-off an individual in a mental health crisis, which spares police officers an unnecessary and lengthy emergency room admission or jail booking process.  Delaware also operates a peer program in the state’s Mental Health Court that serves people with SPMI or co-occurring disorders.  Mental Health Court Peers support individuals throughout the process and help defendants access community resources that are necessary to increased stability in the community, including housing and transportation. 

The department initiated its investigation pursuant to the Civil Rights of Institutionalized Persons Act (CRIPA), putting a primary focus on obtaining reforms to address violations of the ADA, as interpreted in Olmstead., requiring that individuals with disabilities receive services and supports in the most integrated setting appropriate to their needs.  On Nov. 9, 2010, the United States issued a findings letter to Delaware that detailed systemic conditions and practices that violated the constitutional and statutory rights of individuals with serious and persistent mental illness in the state’s system.  The findings letter, settlement agreement, monitor’s reports and papers related to the instant motion are available here.

The department has additional Olmstead settlement agreements in Georgia, Virginia, New Hampshire, New York, North Carolina, Oregon, Rhode Island and the city of Providence.

Attorney General Loretta E. Lynch today released the following statement on the passing of Brooklyn District Attorney Kenneth Thompson:

“With the passing of Kenneth Thompson, the United States has lost a tireless defender of equal rights and a steadfast champion of equal justice.  Through our work together as federal prosecutors in the Eastern District of New York, I came to know Ken as a devoted public servant.  That determination was at the center of all his cases, including the prosecution of police officers for the assault upon Abner Louima, a case I had the privilege of working on alongside him.  Ken leaves behind a proud legacy of integrity, selflessness and excellence.  Our nation is a stronger and safer place because of his dedicated service.  Our thoughts and prayers are with him and his family.  He will be truly missed.”

The Department of Justice, the Department of the Army and the Department of the Interior today issued the following statement regarding the D.C. Circuit Court of Appeals’ decision in Standing Rock Sioux Tribe v. U.S. Army Corps of Engineers:

“We appreciate the D.C. Circuit’s opinion.

“We continue to respect the right to peaceful protest and expect people to obey the law.

“The Army continues to review issues raised by the Standing Rock Sioux Tribe and other Tribal nations and their members and hopes to conclude its ongoing review soon.  In the interim, the Army will not authorize constructing the Dakota Access Pipeline on Corps land bordering or under Lake Oahe.  We repeat our request that the pipeline company voluntarily pause all construction activity within 20 miles east or west of Lake Oahe.

“We also look forward to a serious discussion during a series of consultations, starting with a listening session in Phoenix on Tuesday, on whether there should be nationwide reform on the Tribal consultation process for these types of infrastructure projects.”

Attorney General Loretta E. Lynch today released the following statement regarding yesterday’s shooting in Palm Springs, California:

“Our nation’s heart is broken yet again by the appalling act of violence that claimed two brave law enforcement officers on Saturday.  Officers Jose Gilbert Vega and Lesley Zerebny were at opposite ends of their careers, but they shared a steadfast devotion to the people they had sworn to serve.  In a moment of unimaginable crisis, they stayed true to their oaths, laying down their lives to keep their community safe.  My thoughts and prayers – and the thoughts and prayers of the entire U.S. Department of Justice –go out to the family, loved ones and colleagues of these two fallen heroes.  Let their sacrifice remind each of us of the dangers that brave men and women in law enforcement confront each and every day on our behalf.  And let their example inspire each of us to ask what we can do to create a more peaceful, a more united, and a more just society – one worthy of the memory of Officers Vega and Zerebny.”

Used Hong Kong Shell Company to Hide More Than $2.6 Million

A Michigan man pleaded guilty today to charges of filing a false tax return, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division and U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan.

“Today’s plea is yet another example of the department’s commitment to identifying, investigating and prosecuting those individuals who seek to conceal funds in foreign jurisdictions and evade their tax obligations,” said Principal Deputy Assistant Attorney General Ciraolo.  “The days when a shell company created in Hong Kong or other jurisdictions could be used successfully to hide funds in foreign financial accounts are over, and those who continue to engage in this conduct will be held accountable.”

“For Americans who follow the rules and pay their taxes, it is important to see that those who go to great lengths to avoid paying taxes are held accountable,” said U.S. Attorney McQuade.

“There are no safe havens for hiding money in secret bank accounts around the globe,” said Chief Richard Weber of Internal Revenue Service (IRS) Criminal Investigation (CI).  “Wealthy individuals hiding assets abroad should know that IRS criminal investigators will find them. You can no longer hide behind a veil of secrecy, sham companies or offshore bank accounts.”

Bernhard Rumbold, a resident of Clarkston, Michigan, and owner of several mining-related businesses in Michigan and Ontario, Canada, pleaded guilty to filing a false amended 2008 individual income tax return.  According to the information and the plea agreement, in approximately November 2004, Rumbold transferred more than approximately $2.6 million from his parents’ trust account, which he managed, into a bank account at Credit Suisse Bank AG in Switzerland.  Rumbold arranged for the Credit Suisse bank account to be in the name of Wisdom City Limited, a Hong Kong company whose sole purpose was to be the named account holder on foreign bank accounts.  Rumbold, who was the beneficial owner of the account, transferred control of the account to a relative in December 2008.   

On his 2006 through 2008 individual income tax returns, Rumbold falsely stated that he had no interest in a foreign financial account, and failed to report the interest, dividends and capital gains generated by the Swiss bank account as income.  In October 2010, Rumbold signed and filed an amended 2008 individual income tax return in which he again failed to report the interest, dividends and capital gains generated by the Swiss bank account as income. 

U.S. District Court Judge Sean Cox for the Eastern District of Michigan scheduled Rumbold’s sentencing for Feb. 8, 2017.  Rumbold faces a statutory maximum sentence of three years in prison as well as a period of supervised release and monetary penalties.  The plea agreement requires Rumbold to pay restitution for his unpaid tax liabilities for the years 2006 through 2008.   

Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney McQuade commended the special agents of IRS-CI, who conducted the investigation, and Assistant U.S. Attorney Ross MacKenzie and Trial Attorney Kenneth Vert of the Tax Division, who are prosecuting the case.  

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

Today, the Justice Department’s Office on Violence Against Women (OVW) announced the launch of the National Domestic Violence and Firearms Resource Center’s Safer Families, Safer Communities website.  The website is a project of the newly-established resource center, designed to support the implementation and enforcement of domestic violence firearm prohibitions to reduce firearm-involved domestic violence and homicide.

In order to address the challenges that communities face in responding to firearm-involved domestic violence, Safer Families, Safer Communities provides a comprehensive approach for attorneys, prosecutors, court personnel, judges, domestic violence service providers, law enforcement and communities at large.  The website highlights the importance of an approach focused on addressing five key areas: criminal, civil, federal, purchase prevention and resources.  All five areas are implicated in successfully enforcing firearms prohibitions and disarming domestic violence offenders who illegally possess firearms.

The federal Gun Control Act prohibits people who are subject to certain orders of protection and those who have been convicted of misdemeanor crimes against select individuals, among other classes of individuals, from purchasing, possessing and/or receiving firearms and ammunition.  There are also tribal and state laws that have been enacted to keep guns out of the hands of dangerous domestic violence offenders, but due to the complexity of the laws and lack of guidance, these laws can be under-utilized and under-enforced.  Through the assistance available on this website, OVW hopes to help agencies and organizations work together to prioritize victim safety so that communities are able to rise to meet these challenges.

* * *

OVW provides leadership in developing the nation’s capacity to reduce violence against women through the implementation of the Violence Against Women Act (VAWA) and subsequent legislation.  Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault and stalking.  In addition to overseeing 21 federal grant programs, OVW often undertakes initiatives in response to special needs identified by communities facing acute challenges.

Every day, INTERPOL Washington—U.S. National Central Bureau (USNCB) serves as the national point of contact for coordinating international investigative efforts among INTERPOL member countries, and more than 18,000 local, state, federal, and tribal law enforcement agencies in the United States. We’d like to extend our sincere appreciation to these dedicated public servants—especially to our state and local liaisons in the Washington, D.C., Maryland, and Virginia in the DMV—by Celebrating Coffee with a Cop day.

Coffee with a Cop was started by the Hawthorne, California, Police Department (HPD) in 2011 as a response to tensions between the police and the community. In order to facilitate discussion and forge alliances, the HPD invited residents to join them for coffee. Thus, the first Coffee with a Cop day was born. The program continues to spread with the participation of more than 2,000 law enforcement agencies and the communities they serve. The Department of Justice (Office of Community Oriented Policing Services) has provided funding for the Coffee with a Cop program, helping to spur the growth of the program throughout the United States and abroad, including Canada, Australia, Europe and Africa. Additionally, the President’s Task Force on 21st Century Policy highlighted this program as a way to build community trust and confidence.

Coffee with a Cop is also a partnership initiative. Partnership is a core value of INTERPOL Washington and we continue to grow our global police network by maintaining partnerships with federal and local law enforcement agencies and international organizations. INTERPOL Washington utilizes a blended workforce of permanent Department of Justice employees and detailed personnel. These detailed employees are able to apply investigative techniques from their home agencies to INTERPOL Washington cases. Upon return to their home agencies, the detailed employees are able to leverage INTERPOL’s tools, which strengthens our partnerships initiative.

Currently, we have approximately 70 law enforcement professionals detailed to USNCB.  They represent organizations as diverse as the Federal Bureau of Investigation, to our state and local police representatives. Assistant Commander Micah Andersen (Sheriff’s Office in Story County, Iowa) and Sergeant William Heggs (Maryland Police Department, Prince Georges County) are standout examples of the detailees’ teamwork between the USNCB and U.S. law enforcement. They both support our state and local outreach mission, promoting programs that help police departments to accomplish their jobs.

One example of the partnership that we celebrate on Coffee with a Cop day, and one that both Micah and William promote, is called Federation. Under federation, U.S. law enforcement agencies can query both domestic and INTERPOL indices in a single search. This enables officers to find out in real-time whether the subject of an investigation poses a known transnational and or terrorist criminal threat. These combined searches can be conducted from both fixed and mobile platforms, including vehicle-mounted and hand-held devices. Currently, 12 states and the District of Columbia participate in federation.

Each state, and an increasing number of major cities across the United States, also host INTERPOL liaison offices to coordinate international criminal investigative requests for assistance from INTERPOL Washington. At INTERPOL Washington, we are committed to supporting U.S. law enforcement and we are constantly improving our processes and programs. So, today we tip our (coffee) cups to all of our law enforcement partners and wish you a great day!

Domestic Focus . . . International Reach

Requests for international criminal assistance by a local, state, or tribal law enforcement office may be sent through the appropriate liaison office or directly to INTERPOL Washington (24/7). These INTERPOL Washington services are available to law enforcement only. Private citizens and non-law enforcement entities should always contact their local law enforcement agencies or other appropriate state, local or federal authorities for assistance.

A federal grand jury sitting in the District of Columbia returned an indictment yesterday against a former attorney, charging her with conspiracy, securities fraud, obstruction of justice and failure to timely file tax returns and pay taxes, all federal offenses, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.  She also was charged with first-degree fraud, a District of Columbia offense.

The indictment alleges that Brynee Baylor, a former partner in the District of Columbia firm of Baylor & Jackson, conspired with a Pennsylvania man and his company known as Milan Group to recruit investors to a purported trading program that promised extremely large profits in a short period of time with little or no risk.  The purported trading program was sometimes called a private placement and involved the use of trading platforms and monetizing and leasing foreign bank instruments.

According to the indictment, in 2010 and 2011, Baylor caused more than $2 million of investor funds to pass through the Baylor & Jackson trust account.  More than half of the investor funds went for the benefit of Baylor, the Pennsylvania man, Milan Group and Baylor & Jackson.  Baylor falsely assured investors that the purported trading program was legitimate, that it had little, if any, risk and that she had observed investors successfully complete transactions with Milan Group.  In reality, Milan Group failed to complete any such transactions and failed to return any of the money invested.

In 2011, the Securities and Exchange Commission (SEC) sued Baylor and others for fraud in connection with the purported trading program.  The indictment alleges that Baylor endeavored to obstruct justice in the SEC case by making false statements in depositions and in an affidavit.  

If convicted, Baylor faces a statutory maximum sentence of five years in prison on the conspiracy count, 20 years in prison on the securities fraud count, 10 years in prison on each of the six counts of first degree fraud, 10 years in prison for the obstruction of justice count, and one year in prison on each of two counts of failing to timely file tax returns and pay taxes. Baylor will also face a term of supervised release and monetary penalties. 

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

Principal Deputy Assistant Attorney General Ciraolo thanked the SEC for its invaluable assistance and commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Kenneth Vert and Jeffrey McLellan 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.

Between the dates of October 4 and October 6, seven individuals pleaded guilty in Federal District Court in Portland, Maine, to trafficking more than $1.9 million worth of juvenile American eels, also known as “elvers,” in violation of the Lacey Act.

Yarann Im, Mark Green, John Pinkham, Thomas Reno, Michael Bryant and George Anestis each pleaded guilty to selling or transporting elvers in interstate commerce, that they had harvested illegally, or knew had been harvested illegally, in various East Coast states, including Virginia, New Jersey, Massachusetts, and Rhode Island, among others.  Thomas Choi pleaded guilty to exporting elvers that he knew had been harvested illegally in New Jersey, Massachusetts, and elsewhere.

The guilty pleas were announced today by Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division and Director Dan Ashe of the United States Fish and Wildlife Service (USFWS).  The pleas were the result of “Operation Broken Glass,” a multi-jurisdiction USFWS investigation into the illegal trafficking of American eels.

“Without the robust enforcement of our nation’s wildlife laws, trafficking in species like the protected American eel will undermine vital marine resources to the point of no return,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “The American eel is a unique and economically important species in river systems along the U.S. east coast.  These convictions should send a strong message that we will investigate and prosecute poaching as a serious crime, standing side by side with our state law enforcement partners.” 

“Skyrocketing prices for juvenile American eels in Asia have led to a surge in poaching and trafficking in this unique species, threatening to wipe it out in the rivers of the Northeast,” said Director Ashe.  “The prosecution of these poachers demonstrates our resolve to work with our state and federal law enforcement partners to halt illegal trade in American eels and sustain the species for future generations.  The success and scope of Operation Broken Glass would not have been possible without this unparalleled collaboration, which will serve as a model for future investigations.”

“Elver landings are one of Maine’s largest revenue producing marine resources,” said Maine Marine Patrol Colonel Jon Cornish.  “Strong enforcement of both state and federal statutes are a key to the success of this fishery.  Maine Marine Patrol is proud to have been a participant within Operation Broken Glass.  These cases represent the results of what can be accomplished when agencies partner effectively.”

“This investigation is an example of excellent collaboration between wildlife law enforcement agencies at the federal, state, and local level,” said Assistant Administrator Eileen Sobeck of NOAA Fisheries.  “NOAA’s Office of Law Enforcement will continue to support investigations to ensure that those fishermen who obey the rules reap the benefits of fair competition and those who do not are caught and justice served.”

“The waters of New Jersey provide ideal conditions for migrating juvenile American eels,” said Director Dave Chanda of the New Jersey Department of Environmental Protection’s Division of Fish &Wildlife.  “Despite laws banning American eel harvest, New Jersey continues to experience pressure from those looking to illegally target this highly desired resource to meet overseas demand.  In their pursuit of financial gain, these individuals demonstrated deliberate indifference to the health and viability of our state's natural resource.”

Eels are highly valued in east Asia for human consumption.  Historically, Japanese and European eels were harvested to meet this demand; however, overfishing has led to a decline in the population of these eels.  As a result, harvesters have turned to the American eel to fill the resulting void.

American eels spawn in the Sargasso Sea, an area of the North Atlantic Ocean bounded on all sides by ocean currents.  They then travel as larvae from the Sea to the coastal waters of the eastern United States, where they enter a juvenile or elver stage, swim upriver and grow to adulthood in fresh water.  Elvers are exported for aquaculture in east Asia, where they are raised to adult size and sold for food.  Harvesters and exporters of American eels in the United States can sell elvers to east Asian buyers for more than $2000 per pound.

Because of the threat of overfishing, elver harvesting is prohibited in the United States in all but three states: Maine, South Carolina and Florida.  Maine and South Carolina heavily regulate elver fisheries, requiring that individuals be licensed and report all quantities of harvested eels to state authorities.  Although Florida does not have specific elver-related regulations, the limited population of elvers in Florida waters makes commercial elver fishing impossible. 

The seven defendants all illegally harvested, sold, transported, or exported elvers, knowing they had been harvested in violation of state law.  Further, as a means of concealing the illegal sale and export of elvers, the defendants used Maine or Florida eel harvest licenses, whether theirs or someone else’s, to claim in required paperwork that the elvers were obtained legally from Maine or Florida waters.  Elver export declaration packages submitted to the USFWS included this false documentation in order to disguise the illegal origins of the elvers and to facilitate their export from the United States to buyers in east Asia.

The offenses in the case are felonies under the Lacey Act, each carrying a maximum penalty of five years’ incarceration, a fine of up to $250,000 or up to twice the gross pecuniary gain or loss, or both.

Operation Broken Glass was conducted by the USFWS and the Justice Department’s Environmental Crimes Section in collaboration with the Maine Marine Patrol, South Carolina Department of Natural Resources Law Enforcement Division, New Jersey Division of Fish and Wildlife Bureau of Law Enforcement, Connecticut Department of Energy and Environmental Protection Conservation Police, Virginia Marine Resources Commission Police, USFWS Refuge Law Enforcement, National Oceanic and Atmospheric Administration Office of Law Enforcement, Massachusetts Environmental Police, Rhode Island Department of Environmental Management Division of Law Enforcement, New York State Environmental Conservation Police, New Hampshire Fish and Game Division of Law Enforcement, Maryland Natural Resources Police, North Carolina Wildlife Resource Commission Division of Law Enforcement, Florida Fish and Wildlife Conservation Commission, Yarmouth, MA Division of Natural Resources, North Myrtle Beach, SC Police Department and the Atlantic States Marine Fisheries Commission.

The government is represented by Environmental Crimes Section Trial Attorneys Cassandra Barnum and Shane Waller.

Today, the President granted commutation of sentence to the following 102 individuals:

·         Benjy Neil Allums – Niceville, FL
Offense: Conspiracy to distribute and possess with intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine and 500 grams or more of a mixture and substance containing a detectable amount of cocaine; Northern District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release; $500 fine (June 28, 2005)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Anthony Anderson – Trenton, TN
Offense: Conspiracy to possess with intent to distribute and to distribute in excess of 50 grams of a mixture or substance containing cocaine base, and in excess of five kilograms of a mixture or substance containing cocaine; Southern District of Indiana
Sentence: 240 months' imprisonment; 10 years' supervised release (July 25, 2006)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Martavious Devonn Anderson – High Point, NC
Offense: Conspiracy to distribute cocaine base (crack); Middle District of North Carolina
Sentence: 262 months' imprisonment; 10 years' supervised release (July 2, 2009)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.

·         Norwood Wallace Barber, Jr. – Harrisonburg, VA
Offense: Conspiracy to distribute cocaine base; Western District of Virginia
Sentence: Life imprisonment; 10 years' supervised release; $2,500 fine (December 21, 2005)

Commutation Grant: Prison sentence commuted to a term of 240 months' imprisonment and unpaid balance of fine remitted.  

·         Shawn Leo Barth – Bismarck, ND
Offense: Conspiracy to possess with intent to distribute methamphetamine; possession of a controlled substance with intent to distribute methamphetamine; distribution of a controlled substance methamphetamine; possession with intent to distribute a controlled substance marijuana; possession of a firearm in furtherance of a drug trafficking crime; felon in possession of a firearm/ammunition; District of North Dakota
Sentence: Life plus 60 months’ imprisonment; 10 years' supervised release (March 22, 2004)

Commutation Grant: Prison sentence commuted to a term of 322 months' imprisonment.

·         Ronald Baskin – Madison, WI
Offense: Possession with intent to distribute five grams or more of cocaine base (crack cocaine); Western District of Wisconsin
Sentence: 262 months' imprisonment; eight years' supervised release (October 1, 2007)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Desmond Belle – Columbia, SC
Offense: Conspiracy to possess with intent to distribute and to distribute 50 grams or more of cocaine base; District of South Carolina
Sentence: 262 months' imprisonment; 10 years' supervised release (September 24, 2008)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.

·         Michael Jay Bertram  – Dumont, IA
Offense: Possession with intent to distribute a mixture of methamphetamine containing more than 50 grams of pure methamphetamine after having been previously convicted of a felony drug offense; Northern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (February 23, 2011)

Commutation Grant: Prison sentence commuted to a term of 168 months' imprisonment, conditioned upon enrollment in residential drug treatment.

·         Randy Boler – Indiana, PA
Offense: Conspiracy to possess with the intent to distribute 50 grams or more of crack cocaine; Middle District of Pennsylvania
Sentence: 327 months' imprisonment; five years' supervised release; $2,500 fine (April 18, 2002); amended to 267 months' imprisonment (December 18, 2002)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Christopher Steven Bowen – Kalamazoo, MI
Offense: Conspiracy to distribute more than 50 grams of cocaine base; Western District of Michigan
Sentence: Life imprisonment; 10 years' supervised release; $6,000 fine (May 26, 2005)

Commutation Grant: Prison sentence commuted to a term of 262 months' imprisonment and unpaid balance of fine remitted.

·         Gary Brown – Portland, ME
Offense: Possession with intent to distribute 50 grams or more of a mixture and substance containing cocaine base; District of Maine
Sentence: Life imprisonment; 10 years' supervised release (October 11, 2006)

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

·         Philander Butler – Memphis, TN
Offense: Possession of 120 grams cocaine base with intent to distribute; Western District of Tennessee
Sentence: Life imprisonment; 10 years' supervised release (September 13, 1999)

Commutation Grant: Prison sentence commuted to a term of 262 months’ imprisonment.

·         Ivan Calhoun – Cleveland, TN
Offense: Conspiracy to distribute 50 grams or more of methamphetamine mixture; Eastern District of Tennessee
Sentence: 262 months' imprisonment; eight years' supervised release (March 1, 2004); amended to 238 months' imprisonment (August 1, 2005)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment. 

·         Alonzo Devon Campbell – Bay City, MI
Offense: Distribution of five grams or more of cocaine base; Eastern District of Michigan
Sentence: 240 months' imprisonment; eight years' supervised release (February 13, 2008)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment. 

·         Angel Cardona – Wilmington, DE
Offense: Conspiracy to possess with the intent to distribute cocaine; Northern District of Ohio
Sentence: 210 months' imprisonment; four years' supervised release (December 15, 2003)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Lemond Carmickel – St. Louis, MO
Offense: Possession with the intent to distribute cocaine; Eastern District of Missouri
Sentence: 360 months' imprisonment; eight years' supervised release (February 25, 2000)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.   

·         Arthur Clinkscale – Youngstown, OH
Offense: Possession with intent to distribute cocaine base; Northern District of Ohio
Sentence: 240 months' imprisonment; 10 years' supervised release (November 19, 2002)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Marc Collins – St. Louis, MO
Offense: Conspiracy to possess with intent to distribute and to distribute 50 grams or more of cocaine base (mixture); Southern District of Indiana
Sentence: 210 months' imprisonment; 10 years' supervised release; $1,000 fine (March 4, 2008)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment. 

·         Aaron Keith Covington – Newport News, VA
Offense: Conspiracy to distribute and possess with intent to distribute cocaine and cocaine base; distribution of cocaine base (four counts); possess with intent to distribute cocaine base (six counts); distribution of cocaine (six counts); possess with intent to distribute cocaine (two counts); money laundering; Eastern District of Virginia
Sentence: Life imprisonment; 10 years' supervised release (April 6, 2000)

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

·         Eladio Cruz – Newark, NJ
Offense: Conspiracy to distribute more than 50 grams of a mixture and substance containing cocaine base (crack cocaine); District of New Jersey
Sentence: 262 months' imprisonment; five years' supervised release (June 24, 2002)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Virgil Leon Darville – Boynton Beach, FL
Offense: Conspiracy to distribute at least 50 grams of cocaine base and at least 500 grams of powder cocaine; Southern District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release (February 20, 2009)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Ernest Mordeau Deas – Stone Mountain, GA
Offense: Conspiracy to possess with intent to distribute cocaine; possession with intent to distribute cocaine; District of South Carolina
Sentence: 240 months' imprisonment; eight years' supervised release (January 18, 2006)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Nicholas Jolise Deering – Des Moines, IA
Offense: Possession with intent to distribute at least 50 grams of cocaine base; Southern District of Iowa
Sentence: 223 months' imprisonment; 10 years' supervised release (June 29, 2010)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.   

·         Delvin R. Dixon  – Rockford, IL
Offense: Conspiracy to distribute cocaine; Southern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (February 10, 2009)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment. 

·         Martin Leroy Dwyer – Columbia, SC
Offense: Conspiracy to possess with intent to distribute and to distribute 50 grams or more of cocaine base (commonly known as "crack" cocaine), five kilograms or more of powder cocaine, and a quantity of marijuana; District of South Carolina
Sentence: 262 months' imprisonment; five years' supervised release (July 17, 2008); amended to 188 months' imprisonment (August 23, 2010)

Commutation Grant: Prison sentence commuted to expire on May 4, 2017.

·         Nathan Robert Engel – Willmar, MN
Offense: Distribution of methamphetamine; Southern District of Iowa
Sentence: 262 months' imprisonment; 10 years' supervised release (August 21, 2008)

Commutation Grant: Prison sentence commuted to a expire on October 6, 2018, conditioned upon enrollment in residential drug treatment. 

·         Julio Figueroa – Philadelphia, PA
Offense:   1. Conspiracy to distribute and possess with intent to distribute five kilograms

or more of cocaine; unlawfully maintaining a place for the manufacture of controlled substances; distribution of cocaine and aiding and abetting (four counts); Eastern District of Pennsylvania

2. Supervised release violation (conspiracy to distribute 500 grams of cocaine; distribution of 500 grams or more of cocaine and aiding and abetting); Eastern District of Pennsylvania

            Sentence:  1. 360 months' imprisonment; 10 years' supervised release (June 19, 2008)

                  2. 6 months’ imprisonment (consecutive) (November 4, 2008)

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

·         Anthony P. Flemming – Pittsburgh, PA
Offense: Possession with intent to distribute and/or distribution of five (5) grams or more of a mixture and substance containing a detectable amount of cocaine base; possession with intent to distribute five (5) grams or more of a mixture and substance containing a detectable amount of cocaine base; possession with intent to distribute less than 500 grams of a mixture and substance containing a detectable amount of cocaine (two counts); Western District of Pennsylvania
Sentence: 188 months' imprisonment; five years' supervised release (March 22, 2007)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment. 

·         Leroy Fondren, Jr.  – Kansas City, KS
Offense: Possession with intent to distribute 50 grams or more of cocaine base; use of a firearm during a drug trafficking crime; District of Kansas
Sentence: 180 months' imprisonment; five years' supervised release (March 26, 2007)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Todd Fitzgerald Frazier – Largo, FL
Offense: Possession with intent to distribute 50 grams or more of cocaine base, crack cocaine; Middle District of Florida
Sentence: Life imprisonment; 10 years' supervised release (November 10, 2005)

Commutation Grant: Prison sentence commuted to a term of 262 months' imprisonment.

·         Leticia Garcia – Weslaco, TX
Offense: Conspiracy to distribute heroin; possession with intent to distribute heroin; Central District of Illinois
Sentence: 240 months' imprisonment; 10 years' supervised release (July 18, 2008)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·        Lee Aaron George – Beaumont, TX
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base; Eastern District of Texas
Sentence: 240 months' imprisonment; 10 years' supervised release (April 14, 2010)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment. 

·         Alvin Green – Los Angeles, CA
Offense: Conspiracy to distribute and possess with intent to distribute 50 or more grams of cocaine base, aiding and abetting; use of a communications facility to possess with intent to distribute cocaine base, aiding and abetting (two counts); money laundering, aiding and abetting; District of Colorado
Sentence: Life imprisonment; three years' supervised release (April 7, 2004)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Roosevelt Hamlin – Chicago, IL
Offense: Distribution of cocaine base (crack); Central District of Illinois
Sentence: 360 months' imprisonment; 10 years' supervised release (May 5, 2010)

Commutation Grant: Prison sentence commuted to a term of 236 months' imprisonment.

·         Lancell Maurice Harris – Little Rock, AR
Offense: Possession of cocaine with intent to distribute (two counts); carrying a firearm during a drug-trafficking crime (two counts); Eastern District of Arkansas
Sentence: 421 months' imprisonment; four years' supervised release (December 1, 1993); amended to 397 months' imprisonment (July 1, 2008); amended to 363 months' imprisonment (November 3, 2011); amended to 360 months' imprisonment (November 25, 2014)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Lavelle Henderson – Topeka, KS
Offense: Continuing criminal enterprise; money laundering; District of Kansas
Sentence: Life imprisonment; five years' supervised release (November 22, 2002)

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

·         Lincoln Cardell Henderson – Kansas City, MO
Offense: Conspiracy to distribute 50 grams or more of “crack” cocaine; possession with intent to distribute 50 grams or more of “crack” cocaine; Western District of Missouri
Sentence: Life imprisonment; 10 years' supervised release (August 31, 2004)

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

·         Marty Herndon – Jenkinsville, SC
Offense: Possession with the intent to distribute five grams or more of cocaine base (crack cocaine); District of South Carolina
Sentence: 262 months' imprisonment; eight years' supervised release (April 13, 2004)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment. 

·         Willi J. Hill – Indianapolis, IN
Offense: Conspiracy to possess with intent to distribute cocaine and cocaine base; possession with intent to distribute cocaine base; Southern District of Indiana
Sentence: 500 months' imprisonment; five years' supervised release; $25,000 fine (January 11, 1995)

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

·         Dontae Lamont Hunt – Atlanta, GA
Offense: Possession with intent to distribute more than five grams of cocaine base (two counts); carrying a firearm during and in relation to a drug trafficking crime; District of Oregon
Sentence: 240 months' imprisonment; eight years' supervised release (September 23, 2005)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Arthur Jarrod Jackson – Dallas, TX
Offense: Possession with intent to distribute crack and aiding and abetting; carrying or use of a firearm during a drug crime and aiding and abetting; felon in possession of a firearm; Northern District of Texas
Sentence: 420 months' imprisonment; five years' supervised release (May 19, 1994)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.  

·         Jesse Jackson, Jr. – Fort Worth, TX
Offense: Conspiracy to distribute 50 grams or more of cocaine base and to distribute five kilograms or more of cocaine; distribution of cocaine base and aiding and abetting; Northern District of Texas
Sentence: 320 months' imprisonment; five years' supervised release (December 3, 1996)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Rodrickus Antonio Jamison – Portsmouth, VA
Offense: Distribution of five grams or more of cocaine base; Western District of Virginia
Sentence: 188 months' imprisonment; four years' supervised release (July 31, 2006)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Cesar R. Jara – El Paso, TX
Offense: Possession with intent to distribute 1,000 kilograms or more of marijuana; Western District of Missouri
Sentence: 240 months' imprisonment; 10 years' supervised release (February 10, 2006)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         James Curtis Johnson – Fayetteville, NC
Offense: Distribution of 55.4 grams of cocaine base; Eastern District of North Carolina
Sentence: 262 months' imprisonment; five years' supervised release (March 20, 2002)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.  

·         Christian Jones – Fountain, CO
Offense: Possession with intent to distribute 500 grams or more of cocaine and five grams or more of cocaine base; District of Colorado
Sentence: 262 months' imprisonment; eight years' supervised release (February 20, 2002)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Mark Louis Katzin, Sr. – Philadelphia, PA
Offense: Conspiracy to distribute methamphetamine; Use of a communication facility in furtherance of a drug trafficking offense; Eastern District of Pennsylvania
Sentence: 240 months' imprisonment; 10 years' supervised release (May 15, 2002)

Commutation Grant: Prison sentence commuted to expire on May 1, 2017.

·         Roger Law – Boise, ID
Offense: Possession with intent to distribute methamphetamine (two counts); possession of a listed chemical with knowledge of its wrongful intended use; possession with intent to distribute marijuana; District of Idaho
Sentence: Life imprisonment; 10 years' supervised release; $2,000 fine (November 8, 2001)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, and unpaid balance of fine remitted, conditioned upon enrollment in residential drug treatment.

·         Jefferson Levine – Hollywood, FL
Offense: Possession with intent to distribute 50 grams or more of cocaine base; Southern District of Florida
Sentence: Life imprisonment; five years' supervised release (July 16, 2001)

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

·         Brandon J. Lewis – Houston, TX
Offense: Drug trafficking conspiracy; use of telephone in furtherance of a drug trafficking crime; Central District of Illinois
Sentence: 240 months' imprisonment; 10 years' supervised release (February 17, 2009)

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

·         David Fitzgerald Lightner – Charlotte, NC
Offense: Conspiracy to possess with intent to distribute and distribute a quantity of cocaine base; possess with intent to distribute a quantity of cocaine base and aid and abet same; Western District of North Carolina
Sentence: Life imprisonment; $25,000 fine  (May 16, 1994)

Commutation Grant: Prison sentence commuted to expire on October 6, 2017, and unpaid balance of fine remitted.  

·         Gerald Lofton – Warren, OH
Offense: Conspiracy to possess and distribute cocaine base; felon in possession of a firearm; Northern District of Ohio
Sentence: 240 months' imprisonment; 10 years' supervised release (June 18, 2008)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.    

·         Maria Conchita Marino – West Point, NE
Offense: Conspiracy to distribute methamphetamine; Southern District of Iowa
Sentence: 240 months' imprisonment; 10 years' supervised release (February 29, 2008)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Victor Matias, Jr.  – Baraboo, WI
Offense: Conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine; knowingly and intentionally distribute cocaine (three counts); knowingly and intentionally possess with intent to distribute cocaine; Western District of Wisconsin
Sentence: 360 months' imprisonment; five years' supervised release (March 29, 2001); amended to 292 months' imprisonment (March 16, 2015)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.  

·         Jerald McCullough – Altoona, PA
Offense: Possession with intent to distribute 50 grams or more of cocaine base; Western District of Pennsylvania
Sentence: 240 months' imprisonment; 10 years' supervised release (July 2, 2009)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.

·         Lamont Alvin McElveen – Darlington, SC
Offense: Possession with intent to distribute 50 grams or more of cocaine base, commonly known as crack cocaine; District of South Carolina
Sentence: Life imprisonment; 10 years' supervised release (March 29, 2004)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Jimmy Phillip Medina – Ogden, UT
Offense: Possession with intent to distribute methamphetamine; District of Utah
Sentence: 240 months' imprisonment; 10 years' supervised release (April 27, 2005)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Joseph Mike – Charlotte, NC
Offense: Conspiracy to possess with intent to distribute cocaine; Western District of North Carolina
Sentence: Life imprisonment; 10 years' supervised release (October 1, 2010)

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

·         Ricky Gene Minor – Niceville, FL
Offense: Attempt to manufacture methamphetamine; Northern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (August 22, 2001)

Commutation Grant: Prison sentence commuted to a term of 262 months' imprisonment.

·         Arlana Doris Moore – Grand Falls, TX
Offense: Conspiracy to manufacture 50 grams or more of actual methamphetamine and possession of pseudoephedrine list I chemicals with intent to manufacture methamphetamine; Western District of Texas
Sentence: Life imprisonment; 10 years' supervised release (August 25, 2010)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Rodger Lee Moran – Des Moines, IA
Offense: Conspiracy to distribute at least 50 grams of actual methamphetamine; Southern District of Iowa
Sentence: Life imprisonment; 10 years' supervised release (June 25, 2009)

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

·         Krishna Mote – Montross, VA
Offense: Conspiracy to distribute and possess with intent to distribute in excess of 280 grams of cocaine base (crack) and in excess of 500 grams of cocaine; distribution and possession with intent to distribute cocaine base (crack), aid and abet; Middle District of Pennsylvania
Sentence: Life imprisonment; 10 years' supervised release (May 15, 2013)

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

·         Robert Lee Nickens – Front Royal, VA
Offense: Conspiracy to distribute more than 50 grams of crack cocaine; Western District of Virginia
Sentence: 262 months' imprisonment; seven years' supervised release; $500 fine (March 31, 2005)

Commutation Grant: Prison sentence commuted to expire on November 5, 2016.

·         Tesmone Darin Paschal – Maryville, TN
Offense: Possession with intent to distribute 50 grams or more of cocaine base; aided and abetted in the possession of a firearm by a convicted felon; Eastern District of Tennessee
Sentence: 300 months' imprisonment; 10 years' supervised release (April 2, 2007)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.

·         Randy Patterson – Dalton, GA
Offense: Conspiracy to distribute 500 grams or more of methamphetamine mixture; Eastern District of Tennessee
Sentence: 262 months' imprisonment; 10 years' supervised release (November 3, 2003)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Karl Eugene Peacock – Bossier City, LA
Offense: Conspiracy to violate 21 U.S.C. § 841(a)(1); possession of a firearm in furtherance of drug trafficking; Western District of Louisiana
Sentence: 241 months' imprisonment; five years' supervised release (May 13, 2005); amended to 240 months' imprisonment (November 1, 2014)

Commutation Grant: Prison sentence commuted to a term of 217 months' imprisonment.

·         Raul Perez – Miami, FL
Offense: Conspiracy to possess with intent to distribute cocaine; Middle District of Florida
Sentence: Life imprisonment; 10 years' supervised release (September 27, 2001)

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

·         Jerry Pirtle – Springfield, IL
Offense: Distribution of 50 or more grams of cocaine base (crack); Central District of Illinois
Sentence: 240 months' imprisonment; 10 years' supervised release (May 5, 2008)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Ronald Pirtle – Bronx, NY
Offense: Conspiracy to possess with intent to distribute cocaine base (incorrectly listed on the judgment as cocaine); District of Maryland
Sentence: Life imprisonment; 10 years' supervised release (December 22, 2004)

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

·         Cornelius D. Porter – Mount Rainer, MD
Offense: Felon in possession of a firearm and ammunition; possession with intent to distribute cocaine; possession with intent to distribute more than five grams of cocaine base; District of Maryland
Sentence: 360 months' imprisonment; eight years' supervised release (December 9, 2002)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Derrick Drake Price – Midland, TX
Offense:         1. Conspiracy to distribute more than 5 grams of cocaine base; Western

District of Texas

2. Violation of supervised release (possession with intent to distribute cocaine base); Western District of Texas

Sentence:        1. 188 months' imprisonment; five years’ supervised release (October 25,

                        2004)

2. 60 months' imprisonment (consecutive) (October 25, 2004)

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

·         John Purcell – Philadelphia, PA
Offense: Conspiracy to distribute and manufacture methamphetamine; manufacturing methamphetamine, aiding and abetting; Eastern District of Pennsylvania
Sentence: 240 months' imprisonment; 10 years' supervised release (May 16, 2007)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Jason Rakel – Shreveport, LA
Offense: Conspiracy to violate 21 U.S.C. § 841(a)(1); Western District of Louisiana
Sentence: 240 months' imprisonment; 10 years' supervised release (February 22, 2006)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Ronald Lee Razz – West Palm Beach, FL
Offense: Maintaining a drug-involved premises; possession with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute five grams or more of cocaine base; Southern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (April 14, 2006)

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

·        Andre Lefell Reese – San Angelo, TX
Offense: Conspiracy to possess with intent to distribute and distribution of 50 grams or more of cocaine base and aiding and abetting; distribution of less than five grams of cocaine base within 1,000 feet of public elementary school and aiding and abetting; possession with intent to distribute more than 50 grams of cocaine base within 1,000 feet of public elementary school and aiding and abetting; Northern District of Texas
Sentence: Life imprisonment; 10 years' supervised release (May 1, 1998)

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

·         Jose Ramon Rivas – Philadelphia, PA
Offense: Conspiracy to distribute cocaine base ("crack"); Eastern District of Pennsylvania
Sentence: 240 months' imprisonment; 10 years' supervised release (June 22, 2005)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Chris Robinson – Winchester, TN
Offense: Conspiracy to distribute five kilograms or more of cocaine hydrochloride; use of a communication device (two counts); Eastern District of Tennessee
Sentence: Life imprisonment; eight years' supervised release (April 5, 2007)

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

·         Kevin Dwayne Rodgers – Big Spring, TX
Offense: Conspiracy to possess with intent to distribute 50 grams or more of methamphetamine; Western District of Texas
Sentence: 240 months' imprisonment; 10 years' supervised release (October 23, 2008)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Eduardo Rodriguez-Velez – Mayaguez, PR
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base; District of Puerto Rico
Sentence: Life imprisonment; 10 years' supervised release (October 31, 2007)

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

·         Dameon Russell – Saginaw, MI
Offense:         1. Supervised release violation (Possession with intent to distribute

cocaine base); Eastern District of Michigan

2. Conspiracy to possess with intent to distribute five grams or more of cocaine base; possession with intent to distribute five grams or more of cocaine base; distribution of cocaine base (four counts); Eastern District of Michigan

Sentence:        1. 30 months' imprisonment; eight years’ supervised release (October 14,

2010)

2. 292 months' imprisonment (concurrent); (December 15, 2010);  amended to 210 months' imprisonment; six years' supervised release (January 24, 2013)

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

·         Jose Elias Salinas – Houston, TX
Offense: Conspiracy to possess with intent to distribute 500 grams or more of a mixture of methamphetamine, 5 kilograms or more of cocaine, and 100 grams or more but less than one kilogram of heroin; Eastern District of Texas
Sentence: 180 months' imprisonment; five years' supervised release (October 13, 2010)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Russell Charles Seidel – Mandan, ND
Offense: Conspiracy to possess with intent to distribute and distribute a controlled substance, aiding and abetting; District of North Dakota
Sentence: Life imprisonment; 120 months' supervised release (June 28, 2011)

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

·         Eugene Durst Self – Odessa, TX
Offense: Conspiracy to possess with intent to distribute 50 grams or more of cocaine base; possession with intent to distribute cocaine base; Western District of Texas
Sentence: Life imprisonment; 10 years' supervised release (October 29, 2009)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Frank Lavelle Sharpe – Pinetta, FL
Offense: Distribution of cocaine base (four counts); Northern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (January 14, 1999)

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

·         Bart Ellis Shoupe – San Antonio, TX
Offense: Conspiracy to possess with intent to distribute marijuana; Western District of Texas
Sentence: 235 months' imprisonment; 10 years' supervised release (June 20, 2003)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Kenny Siepker – Carroll, IA
Offense: Conspiracy to distribute 500 grams or more of methamphetamine mixture; unlawful drug user in possession of a firearm; possession with intent to distribute methamphetamine while on pretrial release; Northern District of Iowa
Sentence: 372 months' imprisonment; 10 years' supervised release (October 11, 2002)

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

·         Christopher Alan Simmons – Moline, IL
Offense: Conspiracy to distribute crack cocaine; possession with intent to distribute crack cocaine; Central District of Illinois
Sentence: Life imprisonment; 10 years' supervised release (August 7, 2009)

Commutation Grant: Prison sentence commuted to a term of 188 months' imprisonment.

·         Kamal Sims – Evansville, IN
Offense: Conspiracy to distribute 50 grams or more of cocaine base (mixture); Southern District of Indiana
Sentence: 240 months' imprisonment; 10 years' supervised release (December 18, 2008)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         James Harold Smith – Waynesboro, VA
Offense: Conspiracy to distribute methamphetamine; possession of a firearm in furtherance of a drug trafficking crime (two counts); Western District of Virginia
Sentence: 411 months' imprisonment; five years' supervised release (November 2, 2006)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Alan Jerome Spears – Cleveland, OH
Offense: Possession with the intent to distribute and distribution of cocaine base (crack); possession with the intent to distribute cocaine base (crack); Northern District of Ohio
Sentence: 240 months' imprisonment; 10 years' supervised release (January 15, 2002)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Lamarcus Walthugh Stilling – Seffner, FL
Offense: Possession with intent to distribute five grams or more of cocaine base; Middle District of Florida
Sentence: 188 months' imprisonment; eight years' supervised release (March 6, 2009)

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

·         Charles E. Stokes – Gifford, FL
Offense: Possession with intent to distribute cocaine base; Southern District of Florida
Sentence: Life imprisonment; 10 years' supervised release (June 3, 1996)

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

·         James A. Stone – Detroit, MI
Offense: Conspiracy to possess with intent to distribute in excess of 50 grams of cocaine base; possession with intent to distribute in excess of 50 grams of cocaine base; possession with intent to distribute cocaine base, and aiding and abetting; Eastern District of Kentucky
Sentence: Life imprisonment (June 23, 2000)

Commutation Grant: Prison sentence commuted to a term of 262 months' imprisonment.

·         Ausby Stowers – St. Paul, MN
Offense: Possession with intent to distribute cocaine base; District of Minnesota
Sentence: 262 months' imprisonment; 10 years' supervised release (April 19, 2002)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Shane Alan Taylor – Colorado Springs, CO
Offense: Conspiracy to manufacture methamphetamine; District of Utah
Sentence: 240 months' imprisonment; five years' supervised release; $3,039.03 restitution (April 26, 2005)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018 and unpaid balance of restitution obligation remitted, conditioned upon enrollment in residential drug treatment.

·         Chip J.W. Teague – Sallisaw, OK
Offense: Possess with intent to distribute methamphetamine; possession of firearm moved in interstate commerce (three counts); possession of firearm during drug trafficking crime (two counts); possess with intent to distribute methamphetamine; manufacture methamphetamine (two counts); maintain place for manufacture of methamphetamine; Eastern District of Oklahoma
Sentence: 495 months' imprisonment; five years' supervised release (May 25, 2000)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Lawrence Kemp Tennille – Detroit, MI
Offense: Conspiracy with intent to possess with intent to distribute in excess of 50 grams of a mixture or substance containing detectable amount of cocaine base, a Schedule II controlled substance; Eastern District of Kentucky
Sentence: Life imprisonment (September 12, 1997)

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

·         Wilfredo Vasquez – New Port Richey, FL
Offense:         1. Conspiracy to possess with intent to distribute five kilograms or more of

cocaine; possession with intent to distribute five kilograms or more of cocaine; Middle District of Florida

2. Supervised release violation (conspiracy to import narcotics); Middle District of Florida

Sentence:        1. Life imprisonment (February 19, 2002)

2. 27 months' imprisonment (consecutive) (March 7, 2002)

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

·         Manuel Viera – Miami, FL
Offense: Conspiracy to possess with intent to distribute five kilograms or more of cocaine hydrochloride; Middle District of Florida
Sentence: 240 months' imprisonment; 10 years' supervised release (August 21, 2009)

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

·         Shannon Alexander Washington – Lexington, KY
Offense: Possession with intent to distribute cocaine base; carrying firearm and ammunition during and in relation to drug trafficking crime; Eastern District of Kentucky
Sentence: Life plus 60 months' imprisonment; 10 years' supervised release (September 28, 2007); amended to 240 months' imprisonment (October 6, 2008)

Commutation Grant: Prison sentence commuted to expire on October 6, 2018, conditioned upon enrollment in residential drug treatment.

·         Henry Lee White – Orlando, FL
Offense: Possession with intent to distribute cocaine base; using and carrying a firearm during and relation to a drug trafficking crime; Middle District of Florida
Sentence: 420 months' imprisonment; five years' supervised release (October 21, 1998); amended to 340 months’ imprisonment (May 18, 1999)

Commutation Grant: Prison sentence commuted to expire on February 3, 2017.

·         Charles M. Woolsey – West Baden Springs, IN
Offense: Possession of 500 grams or more of methamphetamine (mixture); possession with intent to distribute cocaine; possession of marijuana; possession of a firearm in furtherance of drug trafficking; prohibited person in possession of a firearm; Southern District of Indiana
Sentence: 300 months’ imprisonment; 10 years' supervised release (October 27, 2006); amended to life imprisonment (October 21, 2008)

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

Attorney General Loretta E. Lynch today announced that the Office for Victims of Crime (OVC) in the Office of Justice Programs (OJP) awarded $7 million to help communities respond to high profile violence, including shootings that involve law enforcement officers.  The award, made to the International Association of Chiefs of Police (IACP) in collaboration with the National Association for the Advancement of Colored People (NAACP) and the Yale School of Medicine, will help cities develop strategies to defuse tension and promote healing following events that cause collective community trauma.

“Violence does not occur in a vacuum,” said Attorney General Loretta E. Lynch.  “It has a powerful effect on the psyche of an entire community, stirring painful emotions and raising difficult tensions.  The Department of Justice is determined to stand with our citizen and law enforcement partners as they grapple with the aftermath of painful incidents.  As part of that commitment, these vital grants will help communities acknowledge the effects of violence, address collective trauma, and promote unity and healing where it is needed most.”

The grant, awarded by OVC as part of its Vision 21 Initiative, will provide resources to law enforcement agencies to develop, implement and assess preventive and responsive trauma-informed interventions intended to promote community engagement and address the consequences of violent acts, including shootings of and by law enforcement officers.  The IACP and its partners, in consultation with OVC, will select up to six demonstration sites to create and test evidence-based models.  They will also provide training and technical assistance to the sites and recruit and train a rapid response team that will be deployed to help law enforcement agencies and communities in the wake of a crisis.  The rapid response team comprises consultants and subject matter experts from law enforcement departments, victim assistance organizations and mental health agencies.

This award strengthens the Department of Justice’s commitment to building bridges of trust between communities and the agencies that serve them.  Vision 21 is designed to marshal data, research and technology to help criminal justice agencies and victim service organizations meet both the long-standing and emerging challenges facing crime victims in the United States.  The initiative is central to OJP’s efforts to improve the effectiveness of the justice system and heighten confidence in the system’s operations.

Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Detroit Diesel Corporation that resolves alleged violations of the Clean Air Act for selling heavy-duty diesel engines that were not certified by EPA and did not meet applicable emission standards.   Under the settlement, Detroit Diesel will spend $14.5 million on projects to reduce nitrogen oxide and other pollutants, including replacing high-polluting diesel school buses and locomotive engines with models that meet current emissions standards.  Detroit Diesel will also pay a $14 million civil penalty.

The government’s complaint, filed today along with the settlement, alleges that Detroit Diesel violated the Clean Air Act by introducing into commerce 7,786 heavy-duty diesel engines for use in trucks and buses in model year 2010 without a valid EPA-issued certificate of conformity demonstrating conformance with Clean Air Act standards to control nitrogen oxide (NOx) emissions.  The complaint also alleges that the engines did not conform to emission standards applicable to model year 2010 engines. To mitigate the harm posed by the alleged violations, the school bus and locomotive replacement projects required by the settlement will reduce ambient air levels of nitrogen oxide and other pollutants.  EPA will approve where the projects are to be performed, based on various criteria, including whether the area already does not meet Clean Air Act standards and whether the area includes low-income communities.  In addition, the school bus program will improve air quality inside school buses by reducing exposure to diesel exhaust.  Diesel exhaust poses a lung cancer hazard for humans and can cause non-cancer respiratory effects such as asthma.

“This case demonstrates the critical importance of EPA’s vehicle and engine certification program to achieving the goals of the Clean Air Act,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division.  “By not certifying the engines in accordance with the rules, Detroit Diesel Corp. increased pollution and undercut competitors. We will uphold the integrity of that program by holding accountable those that skirt the rules.”

“Today’s settlement protects clean air for many communities and vulnerable people across the country, including school children,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA will continue to hold engine manufacturers accountable for meeting emissions standards that protect public health and the air we breathe.”

The Clean Air Act requires manufacturers to obtain a certificate of conformity demonstrating compliance with emission standards before introducing an engine into commerce. Certificates of conformity cover only those engines produced within a single model year. A model year for an engine family of engines ends either when the last such engine is produced, or on Dec. 31 of the calendar year, for which the model year is named, whichever date is sooner.

The complaint alleges that Detroit Diesel commenced construction of the engines during model year 2009, but did not complete construction of the engines until model year 2010.  Because Detroit Diesel completed all manufacturing and assembling processes for the engines in 2010, the complaint alleges that the engines were produced in 2010 and required a certificate of conformity demonstrating compliance with 2010 emission standards.  From approximately Jan. 5, 2010, through approximately June 1, 2010, Detroit Diesel sold the engines for on-highway use in heavy duty vehicles.  Because the engines were not certified to the stringent 2010 NOx emission standards, Detroit Diesel’s introduction of these engines resulted in excess emissions.  The engines were manufactured in Detroit, Michigan, but were introduced into commerce across the country.

Under the consent decree, Detroit Diesel will be required to implement projects to replace high-polluting school buses with school buses that meet current federal emissions standards and replace or repower high-polluting switch locomotives.  Detroit Diesel is also required to post data and information about the clean diesel projects on a public website.

Detroit Diesel is a Michigan corporation that began as a diesel engine manufacturing division of the General Motors Corporation in 1938.  It is currently a wholly-owned subsidiary of Daimler Trucks North America.  Detroit Diesel manufactures heavy-duty diesel engines, axles and transmissions for the on-highway and vocational truck markets.

The consent decree was lodged in the District Court for the District of Columbia.  Notice of the lodging will appear in the Federal Register allowing for a public comment period of not less than 30 days before the consent decree can be entered by the court as final judgement.  The $14 million civil penalty is due 30 days after the effective date of the consent decree.  To view the consent decree: www.justice.gov/enrd/Consent_Decrees.html.

More information about today’s settlement: https://www.epa.gov/enforcement/detroit-diesel-corp-clean-air-act.

More information about EPA’s Clean Air Act vehicle and engine enforcement case resolutions: https://www.epa.gov/enforcement/clean-air-act-vehicle-and-engine-enforcement-case-resolutions.

Deputy Attorney General Sally Q. Yates released the following statement after President Obama granted commutation of sentence to 102 individuals:

“The department has made great progress reviewing applications under the President's clemency initiative to correct unduly harsh and outdated drug sentences.  President Obama has commuted 774 sentences, which is more than were commuted in the prior 66 years preceding his administration combined and we expect to continue to make history with additional commutations in the months ahead."

Attorney General Loretta E. Lynch today announced $12 million in funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) as part of President Obama’s commitment to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.  The grant awards will build on the Justice Department’s community policing efforts and include funding for the development of innovative community policing strategies, officer training and technical assistance, applied research, and the implementation of best practices for community engagement.

Grant awards were made in categories that support the implementation of recommendations from the 21st Century Policing Task Force report, including the Microgrant Initiative for Law Enforcement, Critical Response Technical Assistance, Community Policing Emerging Issues Forums, Community Policing Training Projects, Law Enforcement Led 21st Century Policing Demonstration Projects, 21st Century Policing and Implementation Projects.  A full list of grant awardees is available here: http://www.cops.usdoj.gov/Default.asp?Item=2895.

In addition, the COPS Office allocated $4.5 million to a contract award for Hillard Heintze to support the Collaborative Reform Initiative for Technical Assistance program.  Collaborative reform is a long-term strategy that identifies issues within an agency that may affect public trust and then offers recommendations based on a comprehensive agency assessment for how to resolve those issues and enhance the relationship between the police and the community.

The COPS Office, headed by Director Ronald Davis, is a federal agency responsible for advancing community policing nationwide.  Since 1995, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and tribal law enforcement agencies to fund the hiring and redeployment of more than 129,000 officers and provide a variety of knowledge resource products including publications, training and technical assistance.  For additional information about COPS, please visit www.cops.usdoj.gov.

Defendants Used Brooklyn-Based Front Companies to Procure Sophisticated Military and Satellite Technology on Behalf of Russian End-Users

Earlier today, Alexey Barysheff of Brooklyn, New York, a naturalized citizen of the United States, was arrested on federal charges of illegally exporting controlled technology from the United States to end-users in Russia.  Simultaneously, two Russian nationals, Dmitrii Aleksandrovich Karpenko and Alexey Krutilin, were arrested in Denver, Colorado, on charges of conspiring with Barysheff and others in the scheme.  Federal agents also executed search warrants at two Brooklyn locations that were allegedly used as front companies in Barysheff’s illegal scheme. 

Barysheff is scheduled to make his initial appearance today at 2:00 p.m EDT at the United States Courthouse, 225 Cadman Plaza East, Brooklyn, New York, before Chief United States Magistrate Judge Roanne L. Mann.  Karpenko and Krutilin are scheduled to make their initial appearances today at 2:00 p.m. MDT at the United States Courthouse in Denver, Colorado, where the government will seek their removal in custody to the Eastern District of New York.

The arrests and charges were announced by Assistant Attorney General for National Security John P. Carlin; U.S. Attorney Robert L. Capers of the Eastern District of New York; Special Agent in Charge Angel M. Melendez, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York Field Office; FBI Assistant Director in Charge William F. Sweeney, Jr., New York Field Office; Special Agent in Charge Jonathan Carson, U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement, New York Field Office; and Craig Rupert, Special Agent in Charge of the Department of Defense, Defense Criminal Investigative Service, North East Field Office.

The complaints allege that Barysheff, Karpenko, Krutilin, and others were involved in a conspiracy to obtain cutting-edge microelectronics from manufacturers and suppliers located within the United States and to export those high-tech products to Russia, while evading the government licensing system set up to control such exports.  The Department of Commerce, pursuant to authority granted by the President of the United States, has placed restrictions on the export and re-export of items that it has determined could make a significant contribution to the military potential and weapons proliferation of other nations and that could be detrimental to the foreign policy and national security of the United States.  The microelectronics shipped to Russia included, among other products, digital-to-analog converters and integrated circuits, which are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and satellites.  These electronic devices required a license from the Department of Commerce to be exported to Russia and have been restricted for anti-terrorism and national security reasons. 

As further detailed in the complaints, in 2015 Barysheff registered the Brooklyn, New York-based companies BKLN Spectra, Inc. (Spectra) and UIP Techno Corp. (UIP Techno).  Since that time, the defendants and others have used those entities as U.S.-based front companies to purchase, attempt to purchase, and illegally export controlled technology.  To induce U.S.-based manufacturers and suppliers to sell them high-tech, export-controlled microelectronics and to evade applicable controls, the defendants and their co-conspirators purported to be employees and representatives of Spectra and UIP Techno and provided false end-user information in connection with the purchase of the items, concealed the fact that they were exporters and falsely classified the goods they exported on records submitted to the Department of Commerce.  To conceal the true destination of the controlled microelectronics from the U.S. suppliers, the defendants and their co-conspirators shipped the items first to Finland and subsequently to Russia.     

“According to the complaints, Barysheff, Karpenko, and Krutilin conspired among themselves and with others to send sensitive U.S. technology surreptitiously to Russia in violation of U.S. export law,” said Assistant Attorney General Carlin.  “These laws are in place to protect the national security, and we will spare no effort in pursuing and holding accountable those who seek to harm the national security by illegally procuring strategic commodities for foreign entities.”

“U.S. export laws exist to prevent potentially dangerous technology from falling into the wrong hands,” said U.S. Attorney Capers.  “Those who seek to evade the scrutiny of U.S. regulatory and law enforcement agencies by operating in the shadows present a danger to our national security and our allies abroad.  We will continue to use all of our available national security options to hold such individuals and corporations accountable.”

“Had law enforcement not interceded, the alleged perpetrators would have exported materials that are known to be used in a wide range of military devices,” said Melendez, Special Agent in Charge for HSI New York.  “HSI will continue to partner with other law enforcement agencies while focusing its efforts on national security and stopping the illegal flow of sensitive technology.”

“Export controls were established to prevent certain individuals, organizations, or nations from obtaining protected technology and information.  When the laws are evaded, we become vulnerable to the many threats posed by our adversaries.  The FBI will continue to protect our national security assets as we work with our partners to prevent the exportation of restricted materials,” said Sweeney, FBI Assistant Director in Charge, New York Field Office.

“Today’s arrest is a collaborative effort among law enforcement agencies.  I commend our colleagues for their efforts,” said Special Agent in Charge Carson, U.S. Department of Commerce Bureau of Industry and Security, Office of Export Enforcement, New York Field Office. “The Office of Export Enforcement will continue to use our unique authorities as the regulator and enforcer of our nation’s export control laws to keep the most dangerous goods out of the most dangerous hands.”

“The attempted theft of restricted U.S. technology by foreign actors severely threatens the United States’ defensive posture,” said Special Agent in Charge Craig Rupert, DCIS Northeast Field Office.  “DCIS will continue to pursue these investigations with our Federal partners to shield America’s investment in national defense.”

If convicted of the charges, the defendants face up to 25 years in prison and a $1 million fine.

A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.  The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes.  If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

The case is being handled by the Office’s National Security and Cybercrime Section.  Assistant U.S. Attorneys Craig R. Heeren and Peter W. Baldwin are in charge of the prosecution, with assistance from Trial Attorney Matthew Walczewski of the National Security Division’s Counterintelligence and Export Control Section.

Attorney General Loretta E. Lynch today announced the recipients of the inaugural Attorney General’s Awards for Distinguished Services in Community Policing, acknowledging the exceptional work of 12 law enforcements officers from nine jurisdictions across the country.

“These inspiring men and women have been nominated for these awards by their colleagues and their communities,” said Attorney General Lynch at today’s ceremony.  “Each of them embodies the very best of their profession.  They understand that their role is not just to enforce the law, but to secure justice.  They recognize that the badge they wear represents a sacred trust – one that they strive to fulfill each and every day.  And they view the citizens they serve not as adversaries or potential opponents, but as partners, allies and neighbors.  Everything that they do – whether it is an effort as large as running a youth outreach program, or a gesture as small as learning a neighbor’s name – makes a real difference in their communities and we are here to share our admiration and our gratitude.”

Each of the officers honored has demonstrated exceptional commitment to the principles of community policing in the cities, towns and localities where they serve. Through their excellent service and dedi­cation to professional, impartial and effective policing, these individuals are having a transformational impact on their agencies by embracing 21st Century Policing strategies that build and strengthen trust and mutual cooperation between law enforcement officers and the communities they serve.

The Attorney General’s Award for Distinguished Service in Community Policing recog­nizes individual state, local or tribal sworn police officers and deputies who exem­plify remarkable achievements in innovative community policing strategies, crimi­nal investigations and field operations.  In the more than 18,000 law enforcement agencies throughout the country, the everyday work of individual officers often goes unsung.  To remedy this, Attorney General Lynch announced the creation of this award to honor the outstanding work of rank-and-file officers like those recognized today.

The individuals recognized today are listed below:

INNOVATIONS IN COMMUNITY POLICING CATEGORY

Officers Andy Dobbins and Curt Vajgrt of the Urbandale Police Department, Iowa:

Officers Dobbins and Vajgrt helped develop and implement an education program for their local high school focused on the social issues and pressures young people face. The Culture of Integrity program teaches the importance of character, integrity and community and focuses on issues related to bullying, social media, personal safety and achieving success. The officers managed all the details, getting approval of the curriculum and teaching schedule, organizing the content of the workbooks, and co-teaching the classes. The program was so successful that two other schools requested it.

Sergeant Audrey Mazzuca of the Gainesville Police Department, Florida:

After a disproportionate number of minority youth were being arrested in the community, Sgt. Mazzuca worked with local stakeholders to develop programs that encourage officers and school administrators to replace student arrests with alternatives such as counseling, life skills training, and other services.  Through Sgt. Mazzuca’s leadership, the kids developed trusting relationships with law enforcement resulting in a 79 percent decline in on-campus arrests in 2015.

Community Liaison Officers Lawrence E. Geis and Scott B. Clinger of the Columbus Division of Police, Ohio:

Community Liaison Officers Clinger and Geis have worked diligently to address residents’ and business owners’ concerns regarding a rash of criminal activity and their success has led to an examination of several problem hotels and businesses in Columbus.  The officers were instrumental in the adoption of a new city ordinance establishing safety rules for hotels and motels.  As a result, crime and calls for service at hotels and motels have decreased significantly.

CRIMINAL INVESTIGATIONS CATEGORY

Detective Jessie Gonzales of the Tohono O’odham Police Department, Arizona:

Assigned to crimes against children and sex crimes, Detective Gonzales is sometimes the only detective investigating these cases on the Tohono O’odham reservation, which covers three counties.  He consistently goes above and beyond the call of duty when conducting investigations.  He recently solved two rape cases, one involving a 10-year-old victim, and another involving a domestic violence stabbing case.  In these and all of his other cases, he consistently goes beyond the call of duty when conducting investigations to make the victims feel heard and believed.

Detectives Adam Beha and Joseph Milewczik of the Chesapeake Police Department, Virginia:

Detectives Beha and Milewczik conducted a long-term investigation involving a heroin distribution organization that funneled large amounts of heroin to the streets of Hampton Roads.  Due to the organization’s affiliation with a high-level street gang, the case became an Organized Crime Drug Enforcement Task Force investigation involving local and federal law enforcement partners.  Their work led to the arrest of all the federal targets, and the detectives continue to work the case, which will likely lead to more dangerous narcotics distributors being identified, investigated and arrested.

Senior Officer Kimberly Miller of the Houston Police Department, Texas:

In April of 2015, a woman was beaten, sexually assaulted, and robbed. Senior Police Officer Kim Miller dissected the incident with skills gained in her 30 years of investigative work, leading to the arrest of three individuals suspected of involvement in the incident and additional assaults. Miller’s dedication led these cases to successful conclusions. Tireless in pursuit of the predators, she treated the victims with compassion and is a leader in her department. 

FIELD OPERATIONS CATEGORY

Detective Greg Felton of the Glenn County Sheriff's Office, California:

Detective Felton works with multiple agencies to strengthen collaboration and integrate services while handling complex criminal investigations. During the past year, Detective Felton has been a driving force and team leader in the creation of the Glenn County System-wide Mental Health Assessment and Response Team, a collaborative multiagency team that responds to incidents such as school or community threats, suicidal behavior, and bullying. His ability to remain calm in any situation helps to quickly resolve a crisis situation. 

Officer Bennie L. Evans of the Alexandria Police Department, Virginia:

Officer Evans embraces community policing during field operations and through voluntary participation in projects for the police department and local nonprofit organizations. A lead instructor in the department’s crisis intervention team, he provides officer training in suicide intervention, substance abuse, and other issues. He also serves as the department’s homeless outreach liaison. He works to help residents in need and has helped build trust in the communities he serves. Officer Evans has successfully de-escalated numerous violent and attempt suicide calls for service.

Officer JoAnn Walker of the San Francisco Police Department, California:

Officer JoAnn Walker has volunteered for extensive training on hostage negotiation, crisis counseling, and suicide prevention, dedicating her own time and resources to advance her expertise and educate her colleagues in crisis service support. Thanks to her initiative and advocacy, crisis counselors are better equipped to respond to people in need, and the relationship between law enforcement and the local community has improved.

A former tax return preparation business owner was indicted by a federal grand jury in Kansas City, Kansas for aiding and assisting in the preparation and presentation of false income tax returns, making a false bankruptcy declaration, false testimony under oath in connection with a bankruptcy matter and unlawful procurement of citizenship or naturalization announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and Acting U.S. Attorney Thomas E. Beall of the District of Kansas.

According to the indictment filed on Sept. 7 and unsealed today, Geoffrey Rotich, owned and operated Inventax, a tax return preparation business in Shawnee, Kansas.  The indictment alleges that Rotich prepared false and fraudulent tax returns for other individuals, claiming false deductions for medical and dental expenses and false education expenses.  The indictment further alleges that, in connection with a Chapter 11 bankruptcy case, Rotich made false declarations in his bankruptcy petition and related schedules and made false statements under oath during a meeting of creditors.  The indictment also alleges that Rotich obtained naturalization and citizenship to which he was not entitled on the basis of false representations on his application for naturalization.

If convicted, Rotich faces a statutory maximum sentence of three years in prison for each of the tax counts, a statutory maximum sentence of five years in prison for each of the bankruptcy counts and a statutory maximum sentence of 10 years in prison for the naturalization count.  Rotich also faces a period of supervised release and monetary penalties.

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

Principal Deputy Assistant Attorney General Ciraolo and Acting U.S. Attorney Beall commended the Internal Revenue Service-Criminal Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security investigators and the U.S. Trustee’s Office in Wichita, who conducted the investigation and Trial Attorney John T. Mulcahy of the Tax Division and Assistant U.S. Attorney D. Christopher Oakley of the District of Kansas, who are prosecuting the case.

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

Underreported More Than $1.5 Million in Gross Receipts

A federal jury sitting in St. Louis, Missouri, found the local owner of a tax return preparation businesses guilty of two counts of tax evasion, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.

“While Semere Tsehaye was operating tax return preparation franchises in three states, he was generating false financial summaries and filing fraudulent returns to evade paying his own taxes,” said Principal Deputy Assistant Attorney General Ciraolo.  “No one is above the law, and the department will continue to prosecute those who seek to violate our nation’s tax laws.”

According to the evidence at trial, Semere Tsehaye, 39, was the owner and operator of at least 20 Instant Tax Service (ITS) franchise locations operating in and around East St. Louis, Illinois; Kansas City, Kansas; and Kansas City and St. Louis, Missouri, from 2005 to 2011.  ITS was a brand name of ITS Financial LLC, a nationwide tax preparation business headquartered in Dayton, Ohio.  Tsehaye owned and operated his ITS franchise locations using two entities named A&S Tax Service LLC (A&S) and ERI Enterprises LLC (ERI).

The evidence at trial showed that during the years 2010 and 2011, Tsehaye generated fraudulent financial summaries that understated the gross receipts generated by A&S and ERI and provided them to his tax return preparer.  The evidence also showed Tsehaye’s tax return preparer used these financial summaries to prepare Tsehaye’s individual income tax returns, which Tsehaye then filed with the Internal Revenue Service (IRS).  These tax returns were false in that they underreported A&S and ERI’s gross receipts by a total of approximately $547,000 in 2010 and $1.03 million in 2011, causing a tax loss of more than $580,000.

“Mr. Tsehaye’s attempt to evade his taxes by creating false financial summaries to conceal over $1.5 million of income and by filing false tax returns is a theft from the American public,” said Special Agent in Charge Karl Stiften of IRS-Criminal Investigation.  “We all pay when others swindle the government.”

In 2013, a Kansas City, Kansas federal court permanently barred A&S from further operating or preparing federal tax returns.  Tsehaye was also permanently enjoined from engaging in certain abusive practices as well as preparing tax returns for any person other than himself beyond a 50 mile radius from his permanent residence.

Sentencing is scheduled for Jan. 4, 2017.  Tsehaye faces a statutory maximum sentence of five years in prison for each count of tax evasion, as well as a period of supervised release and monetary penalties.

Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Corey Smith and Trial Attorney Mark McDonald 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 Eastern District of Missouri for their assistance.

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

A Smithfield, North Carolina man was sentenced today to 20 months in prison for conspiring to defraud the government and commit theft of public money, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division. 

According to documents filed with the court and court proceedings, Oscar Barahona Fiallos owned and operated a tax preparation business in Smithfield under the names El Caracol Inc. and Oscar’s Income Tax Service.  In 2011 and 2012, Fiallos cashed large numbers of U.S. Treasury checks issued as a result of fraudulent tax returns filed with the Internal Revenue Service (IRS) in the names of third parties.  The checks were provided to Fiallos by co-conspirators and Fiallos never met the third-party payees, who purportedly lived in New York, New Jersey and North Carolina.  Fiallos deposited the checks into his bank account and then provided co-conspirators with cash equal to the value of the check, minus a check cashing fee.  After a bank account was closed, Fiallos obtained a check cashing license so that he could continue cashing checks for his co-conspirators.  He also prepared Individual Taxpayer Identification Number applications and false tax returns for third parties he did not meet and who did not sign the documents.  Fiallos agreed that the intended loss to the IRS was more than $2.8 million.

Fiallos pleaded guilty on Feb. 18 to one count of a conspiring to defraud the United States and commit theft of public money.  In addition to his prison sentence, Fiallos was ordered to serve three years of supervised release and pay restitution to the IRS in the amount of $2.8 million.

Principal Deputy Assistant Attorney General Ciraolo commended special agents of IRS-Criminal Investigation, who conducted the investigation and Trial Attorneys Lauren M. Castaldi and Nathan P. Brooks of the Tax Division, who are prosecuting this case.  Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office for the Eastern District of North Carolina for their assistance. 

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