District Not Recorded

A federal grand jury in Mobile, Alabama, has returned a seven-count indictment charging Det Stavangerske Dampskibsselskab AS (DSD Shipping) and four employees with violating the Act to Prevent Pollution from Ships (APPS), conspiracy, obstruction of justice and witness tampering, announced Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division and U.S. Attorney Kenyen R. Brown for the Southern District of Alabama.  DSD Shipping is a Norwegian-based shipping company that operates the oil tanker M/T Stavanger Blossom, a vessel engaged in the international transportation of crude oil.  Also indicted were four engineering officers employed by DSD Shipping to work aboard the vessel, Daniel Paul Dancu, 51, of Romania, Bo Gao, 49, of China, Xiaobing Chen, 34, of China, and Xin Zhong, 28, of China.

According to the indictment, in 2014, DSD Shipping and its employees conspired to bypass pollution prevention equipment aboard the M/T Stavanger Blossom and to conceal the direct discharge of waste oil and oil-contaminated waste water from the vessel into the sea.  The operation of marine vessels, like the M/T Stavanger Blossom, generates large quantities of waste oil and oil-contaminated waste water.  International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials.  Should any overboard discharges occur, they must be documented in an oil record book, a log that is regularly inspected by the U.S. Coast Guard.  Despite these requirements, DSD Shipping and its employees used a bypass pipe to circumvent pollution prevention equipment and discharge waste oil and oil-contaminated waste water directly into the sea.  DSD Shipping and its employees also filled plastic bags with waste oil from a sludge tank aboard the vessel and then discarded the oil-filled plastic bags overboard into the sea. 

The indictment further alleges that prior to an inspection by the U.S. Coast Guard, Chen ordered crewmembers to remove the bypass pipe, install a new pipe and repaint the piping to hide the illegal discharges.  Chen and Zhong then ordered crewmembers to lie to the U.S. Coast Guard and instructed them to say that no plastic bags containing waste oil were discarded overboard, that all plastic bags remained aboard the vessel and to provide the incorrect quantity of bags generated from the cleaning of the sludge tank.  To further hide the illegal discharges of waste oil and oil-contaminated waste water, DSD Shipping and its employees maintained a fictitious oil record book that failed to record the disposal, transfer, or overboard discharge of oil from the vessel.  The oil record book also contained false entries stating that pollution prevention equipment had been used when it had not.

DSD Shipping and the engineering officers were charged with violating the APPS for failing to record overboard discharges in the vessel’s oil record book and garbage record book and with obstruction of justice and witness tampering for presenting false documents and deceiving the Coast Guard during an inspection.  If convicted, DSD Shipping could be fined up to $500,000 per count, in addition to other possible penalties.  Dancu, Gao, Chen and Zhong face a maximum penalty of 20 years in prison for the obstruction of justice charges.  An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until and unless proven guilty.

This case was investigated by the Sector Mobile of the U.S. Coast Guard, Investigative Services of the U.S. Coast Guard and the Criminal Investigation Division of the Environmental Protection Agency.  Assistant U.S. Attorney Mike D. Anderson, with the U.S. Attorney's Office for the Southern District of Alabama and ECS Trial Attorney Shane N. Waller are prosecuting the case.

A North Carolina man was sentenced to 243 months in federal prison, followed by a term of three years supervised release, for attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon, announced Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Ripley Rand of the Middle District of North Carolina and Special Agent in Charge John Strong of the FBI’s Charlotte, North Carolina, Division.

Donald Ray Morgan, 44, of Rowan County, North Carolina, was sentenced by U.S. District Court Judge Thomas D. Schroeder of the Middle District of North Carolina.  On Oct. 30, 2014, Morgan pleaded guilty to attempting to provide material support to a designated foreign terrorist organization and possession of firearm by a felon.

According to court documents, Morgan knowingly attempted beginning in or about January 2014 until on or about Aug. 2, 2014, to provide support and resources, including his own services, to the designated foreign terrorist organization the Islamic State of Iraq and the Levant (ISIL).  On at least one occasion, Morgan unsuccessfully attempted to travel from Lebanon to Syria to join ISIL.  Morgan also frequently used social media and an interview with an international journalist to express his support for ISIL and violent terrorist activities.

“Morgan attempted to travel to Syria in order to provide material support to ISIL,” said Assistant Attorney General Carlin.  “The sentence in this case demonstrates that we will continue to bring to justice those who engage in this conduct, and that protecting the nation against these threats remains one of our highest priorities.” 

“We will continue to do everything we can to shine a light on the false allure of violent extremism and protect innocent people from terrorist activity, whether inside or outside the United States,” said U.S. Attorney Rand.

“Donald Ray Morgan proved himself to be a threat to national security,” said Special Agent in Charge Strong.  “He traveled overseas with intentions to join the violent terrorist group, ISIL in Syria.  One of the FBI’s highest priorities is to stop American citizens who support terrorist organizations and ensure they are held accountable for their actions.”

Court documents also reveal that Morgan possessed and later sold an assault rifle in January 2012, after having been convicted of a North Carolina state felony offense in 1997.

Morgan was initially arrested on Aug. 2, 2014, at John F. Kennedy International Airport in New York on a federal indictment for possession of a firearm by a felon.

Assistant Attorney General Carlin joined U.S. Attorney Rand in commending the work of the FBI’s Charlotte Division and the Greensboro, North Carolina, Resident Agency Joint Terrorism Task Force (Greensboro Police Department; Guilford County, North Carolina Sheriff’s Office; High Point, North Carolina Police Department; and the Winston-Salem, North Carolina, Police Department), the ATF, the U.S. Marshals Service and U.S. Customs and Border Protection in bringing Morgan to justice.

The prosecution is being handled by Assistant U.S. Attorney Graham Green of the Middle District of North Carolina, with the assistance of Trial Attorney Paul Casey of the National Security Division’s Counterterrorism Section.

Today, the Justice Department announced that it has reached an agreement with Leflore County, Mississippi, to improve security and facility conditions at the Leflore County Juvenile Detention Center in Greenwood, Mississippi.  Leflore County committed to numerous reforms to protect children in its care from abuse and self-harm, to improve its security and emergency preparedness and to improve its medical and mental health care.  Leflore County also pledged to end the use of solitary confinement as a form of discipline and to limit solitary confinement to a cool-down period not to exceed one hour. 

The department investigated conditions at Leflore County Juvenile Detention Center and in March 2011 found deficiencies in numerous areas, including the use of force and restraints, abuse investigations, suicide prevention and use of solitary confinement. 

The agreement was filed today in the federal district court of the Northern District of Mississippi.  Upon court approval, it will require significant reforms that will enhance safety and security for children held at the detention center.  The reforms concern intake and classification, use of force and restraints, behavior management, solitary confinement, suicide prevention and mental health care, medical care, due process, incident reporting, sanitation, fire safety and security staffing.  In addition, the agreement contains provisions governing data gathering, quality assurance and policy revision.  The agreement requires Leflore County to obtain expert assistance to meet its reform obligations.  The agreement will terminate once Leflore County has achieved 12 consecutive months of substantial compliance with all of the agreement’s provisions. 

“This agreement will help protect children who are in custody and ensure that they are detained under conditions that are secure, safe and appropriate,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “Leflore County should be credited for embracing reform, particularly in the use of solitary confinement.”

“Leflore County and the detention center administrators are to be commended for their commitment to reforming Leflore County’s juvenile detention facility and protecting children in custody,” said U.S. Attorney Felicia C. Adams of the Northern District of Mississippi.  “The agreement will put in place reforms that will keep at-risk children safe as they prepare to return to their communities.” 

The department also found violations of the Individuals with Disabilities Education Act (IDEA) in the detention center school.  Because the state of Mississippi took control of the Leflore County schools in 2013, the county no longer has a role in providing education services.  As a result, the agreement between the United States and Leflore does not resolve the United States’ findings of violations of children’s educational rights at the detention center.  The department is working separately with the state of Mississippi to resolve the department’s concerns about education.

The Violent Crime Control and Law Enforcement Act of 1994 authorizes the department to seek a remedy for a pattern or practice of conduct that violates the constitutional or federal statutory rights of youth in juvenile justice institutions.  Please visit the division’s website to learn more about this act and other laws the Civil Rights Division enforces.

This agreement is due to the efforts of the Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office of the Northern District of Mississippi.

Worked With Others to Seek More Than $1.1 Million in Fraudulent Refunds

A 32-year-old Washington, D.C., man was sentenced today to serve more than three years in prison for various crimes he committed in a far-reaching identity theft and tax fraud scheme in which he and others filed fraudulent federal income tax returns seeking more than $1.1 million in refunds, the Justice Department announced.

James Nelson is among approximately 12 people who have pleaded guilty in the U.S. District Court for the District of Columbia to charges in one of the largest prosecutions to date involving the use of stolen identifying information.  The overall case involves the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $40 million.

The sentencing was announced by Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C. Field Office, Acting Inspector in Charge David M. McGinnis of the U.S. Postal Inspection Service’s (USPIS) Washington, D.C. Division, Assistant Inspector General for Investigations John L. Phillips of the  U.S. Department of Treasury and Acting Special Agent in Charge James M. Murray of the U.S. Secret Service’s Washington, D.C. Field Office.

Nelson pleaded guilty on Jan. 29 to conspiracy to defraud the United States with respect to claims, aiding and abetting in the making of false claims for refund and aiding and abetting in fraud and related activity involving identification information.  He was sentenced to serve 41 months in prison by the Honorable U.S. District Judge Ellen S. Huvelle of the District of Columbia.  Upon completion of his prison term, he will be placed on three years of supervised release.  In addition, as part of his plea agreement, Nelson must pay $636,026 in restitution to the IRS.

“One of the Tax Division’s highest priorities is prosecuting individuals who use stolen identities to file fictitious income tax returns and claim fraudulent refunds,” said Acting Assistant Attorney General Ciraolo.  “As in this case, this street crime often victimizes the most vulnerable members of our communities.  The Tax Division is committed to working with our partners in law enforcement to identify these schemes, dismantle the criminal operations and use all available tools to prosecute these offenders to the fullest extent of the law.”

“This criminal was part of a brazen scheme to flood the IRS with thousands of fake income tax returns and steal from honest taxpayers,” said Acting U.S. Attorney Cohen.  “These thieves filed bogus tax returns with the stolen identities of people in nursing homes and prisons to generate fraudulent refunds.  James Nelson is now headed to a federal penitentiary where he can no longer execute scams that drive up taxes on hardworking Americans who play by the rules.” 

“Nelson’s greed will have a long-term impact on his victims and cause immeasurable harm to their financial well-being,” said IRS-CI Special Agent in Charge Kelly.  “The selfish acts of criminals like Nelson have far-reaching consequences, and those like him, who steal from innocent victims and the U.S. Treasury, should be on notice that the government will aggressively pursue identity thieves and tax cheaters.”

“Today’s sentencing confirms that anyone who preys on citizens’ identification for financial gain, especially when they use the U.S. Mail to further their criminal activity, will be held accountable,” said Acting Postal Inspector in McGinnis.  “The Postal Inspection Service values the collaboration with its law enforcement partners in the case.”

“This sentencing reinforces the commitment of Treasury’s Office of Inspector General and its law enforcement partners to pursue criminal charges against individuals and groups that prey on the public by stealing identities and fleecing the U.S. taxpayer and Treasury Department in their criminal schemes,” said Assistant Inspector General Phillips.

“The arrest of James Nelson is yet another example of how the Secret Service continues to successfully combat identity theft and financial crimes,” said Acting Special Agent in Charge Murray.  “The Secret Service utilized state-of-the-art investigative techniques to dismantle this identity theft and tax fraud scheme.  Our success in this case and other similar investigations is a result of extraordinary work of our investigators and our close work with our network of law enforcement partners.”

According to the government’s evidence, Nelson was among participants in a massive and sophisticated identity theft and false tax refund scheme involving an extensive network of more than 130 people, many of whom were receiving public assistance.  The scheme started in 2006, and false claims for tax refunds were sought for tax years 2005 through 2012, often in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated prisoners.  In other cases, the refunds were sent to people who were willing participants in the scheme.  The refunds listed more than 400 “taxpayer” addresses in the District of Columbia.

From December 2007 through January 2012, according to the government’s evidence, Nelson used his residential addresses in the District of Columbia to receive some of the fraudulently obtained tax refunds.  He also recruited others to receive fraudulent refunds at their addresses.  For example, Nelson paid one woman about $150 per check for each refund check delivered to her residential address in the District of Columbia.

Approximately 360 fraudulent federal income tax returns listing the addresses that were under Nelson’s control were filed with the IRS.  The returns sought refunds of approximately $908,500.  As a result, the IRS sent out 238 checks, totaling about $524,795, and 184 of those checks, totaling $432,804, were ultimately cashed. 

Nelson also recruited others to negotiate at least 86 other refund checks, totaling approximately $203,222, causing a total intended loss to the U.S. Treasury of more than $1.1 million.

In announcing the sentence, Acting Assistant Attorney General Ciraolo, Acting U.S. Attorney Cohen, Special Agent in Charge Kelly, Acting Inspector in Charge McGinnis, Assistant Inspector General Phillips and Acting Special Agent in Charge Murray commended those who investigated the case.  They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office of the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein and Paralegal Specialist Donna Galindo.  Finally, they expressed appreciation for the work of Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jessica N. Moran and Jeffrey B. Bender of the Tax Division, who prosecuted the case.

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

The Department of Justice today announced the appointment of Chuck Rosenberg to serve as Acting Administrator of the Drug Enforcement Administration (DEA). 

“Throughout his distinguished career in law enforcement and public service, Chuck has earned the trust and the praise of his colleagues at every level,” said Attorney General Loretta E. Lynch.  “He has proven himself as an exceptional leader, a skilled problem-solver, and a consummate public servant of unshakeable integrity.  And he has demonstrated, time and again, his deep and unwavering commitment not only to the women and men who secure our nation, but to the fundamental values that animate their service.  As Acting Administrator of the DEA, Chuck will play a vital role in the work of this Administration and this Department of Justice to pursue American priorities, protect American interests, and safeguard our way of life.  I can think of no better individual to lead this storied agency, and I have no doubt that his tenure will be defined by the same commitment to honor and excellence that has guided him throughout his distinguished career.  I congratulate him once again on this well-deserved appointment, and look forward to all that he will achieve in the days ahead.”

A veteran of the Justice Department, Rosenberg currently serves as Chief of Staff to the Director of the FBI.  In this role, he works closely with Director James B. Comey and other senior FBI officials on counterterrorism, intelligence, cyber and criminal investigative issues, including with international, federal, state and local law enforcement partners.  He also works closely with Director Comey on management, policy and personnel issues.

“Chuck Rosenberg is one of the finest people and public servants I have ever known,” said Director Comey.  “His judgment, intelligence, humility, and passion for the mission will be sorely missed at FBI.  I congratulate our friends at the Drug Enforcement Administration.  This is good for the entire Department of Justice and the country.”

Rosenberg was presidentially appointed and confirmed as the U.S. Attorney of the Eastern District of Virginia, from 2006 through 2008, and appointed by the Attorney General to serve as the U.S. Attorney of the Southern District of Texas, from 2005 through 2006.

Rosenberg was hired out of law school through the Attorney General’s Honors Program and has served in numerous positions throughout the Department of Justice, including Chief of Staff to the Deputy Attorney General from 2004 through 2005, Counselor to the Attorney General from 2003 through 2004, Counsel to the Director of the FBI  from 2002 through 2003, an Assistant U.S. Attorney in the Eastern District of Virginia from 1994 through 2000, and a Trial Attorney for the Tax Division’s Criminal Enforcement Section  from 1990 through 1994.

Rosenberg has also spent time working in private practice as Counsel at Hunton and Williams, from 2000 through 2002, and as a partner at Hogan Lovells US LLP (2008-2013).

During his years as a federal prosecutor, Rosenberg conducted grand jury investigations and has been the lead trial lawyer in many federal prosecutions involving espionage, kidnapping, murder, crimes against children and complex financial fraud cases.

Rosenberg received his B.A. from Tufts University, his M.P.P. from Harvard University and his J.D. from the University of Virginia. 

Rosenberg will assume the role of Acting Administrator on May 18, 2015.  He will replace Administrator Michele Leonhart, who previously announced her retirement.

“Michele has devoted her professional career to the security of our nation and the protection of the American people,” said Attorney General Lynch.  “I want to thank her for her 35 years of service to the DEA, to the Department of Justice and to the country, and I wish her well as she embarks on a new chapter in her already extraordinary life.”

The United States announced today the filing of a consent order that resolves allegations that Fort Norfolk Retirement Community Inc. (Fort Norfolk) violated the Fair Housing Act by instituting policies that discriminated against residents with disabilities at Harbor’s Edge, a continuing care retirement community in Norfolk, Virginia.

The consent order, which still needs to be approved by the court, was filed yesterday, along with a complaint, in the U.S. District Court of the Eastern District of Virginia.  The complaint alleges that beginning in May 2011, Fort Norfolk instituted a series of policies that prohibited, and then limited, residents in the assisted living, nursing and memory support units at Harbor’s Edge from dining in dining rooms or attending community events with independent living residents.  The complaint also alleges that when residents and family members complained about these policies, Fort Norfolk retaliated against them.  In addition, the complaint alleges that Fort Norfolk had polices that discriminated against residents who used motorized wheelchairs by requiring those residents to pay a non-refundable fee, obtain liability insurance and obtain Fort Norfolk’s permission.

Under the consent order, Fort Norfolk will pay $350,000 into a settlement fund to compensate residents and family members who were harmed by these policies.  Fort Norfolk will also pay a $40,000 civil penalty to the United States.  In addition, Fort Norfolk will appoint a Fair Housing Act compliance officer and will implement a new dining and events policy, a new reasonable accommodation policy and a new motorized wheelchair policy.

“This consent order will ensure that all residents with disabilities at Harbor’s Edge are treated equally and that spouses and friends will be able to eat and socialize together,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “We are very pleased with Fort Norfolk’s willingness to work with us to achieve this important resolution.” 

Individuals who are entitled to share in the settlement fund will be identified through a process established in the consent order.  Persons who believe they were subjected to unlawful discrimination at Harbor’s Edge should contact the Justice Department toll-free at 1-800-896-7743 mailbox #5 or e-mail the Justice Department at fairhousing@usdoj.gov.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.  Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, e-mail the Justice Department at fairhousing@usdoj.gov, or contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at http://portal.hud.gov/hudportal/HUD?src=/program_offices/fair_housing_equal_opp.

Earlier today, Madhi Hashi, 25, of Somalia, Ali Yasin Ahmed, 30, of Sweden, and Mohamed Yusuf, 32, of Sweden, pleaded guilty to conspiring to provide material support to a designated foreign terrorist organization, al-Shabaab.

The guilty plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Kelly T. Currie of the Eastern District of New York and Assistant Director in Charge Diego Rodriguez, of the FBI’s New York Field Office.

The guilty plea took place before U.S. District Judge John Gleeson of the Eastern District of New York.  At sentencing, each of the defendants faces a maximum of 15 years in prison and automatic removal from the United States.

As stated in court today and according to court documents, between approximately December 2008 and August 2012, the defendants served as members of al-Shabaab in Somalia, where they agreed with others to support al-Shabaab and its extremist agenda.  Defendants Mohamed Yusuf and Ali Yasin Ahmed fought in battles in Somalia against African Union forces.  Defendant Madhi Hashi was a close associate of American-born jihadist Omar Hammami, with ties to a known al-Shabaab suicide bomber.  In addition, defendant Yusuf is featured in an al-Shabaab propaganda video titled “Inspire the Believers.”

In early August 2012, the defendants were apprehended together in East Africa by local authorities shortly after leaving Somalia on their way to Yemen.  On Nov. 14, 2012, the FBI took custody of the defendants and brought them to the Eastern District of New York for prosecution.

“Hashi, Ahmed and Yusuf all pleaded guilty to conspiring to provide material support to a designated foreign terrorist organization, al-Shabaab,” said Assistant Attorney General Carlin.  “The National Security Division remains committed to identifying, disrupting and holding accountable all who seek to provide material support to terrorists both at home and abroad.  I would like to thank all of the agents, analysts and prosecutors who are responsible for this case.”

“The defendants were committed supporters of al-Shabaab, a violent terrorist organization that has demonstrated its capabilities and motives in numerous terrorist attacks overseas, and has publicly called for attacks against the United States,” said Acting U.S. Attorney Currie.  “We will use every tool at our disposal to combat terrorist groups, deter terrorist activity, and incapacitate individual terrorists around the world.  Today’s convictions demonstrate that criminal prosecution is an effective tool in our efforts to combat international terrorism.”

Assistant Attorney General Carlin joined Acting U.S. Attorney Currie in thanking the federal, state and local law enforcement agencies who participate in the FBI’s Joint Terrorism Task Force in New York.

The government’s case is being prosecuted by Assistant U.S. Attorneys Shreve Ariail, Seth D. DuCharme and Richard M. Tucker of the Eastern District of New York and Trial Attorney Annamartine Salick of the National Security Division's Counterterrorism Section.  Trial Attorneys Shanna Batten Aguirre and Dan Stigall of the Justice Department’s Office of International Affairs provided valuable assistance.

The Department of Justice and the Environmental Protection Agency (EPA) today announced a settlement with the city and county of Honolulu to resolve air violations at its closed Kapaa Landfill in Kailua, Oahu, by requiring the city and county of Honolulu to pay a civil penalty of $875,000 and build a $16.1 million solar power system.  This environmental project involves the installation of photovoltaic arrays on more than 250,000 square feet of buildings and open space area at the city’s waste-to-energy H-POWER (Honolulu Program of Waste Energy Recovery) facility by 2020.

Because decomposing refuse in a large landfill generates hazardous air pollutants such as benzene, carbon tetrachloride, chloroform, ethylene dichloride, perchloroethylene, trichloroethylene, vinyl chloride and vinylidene chloride, the federal Clean Air Act requires a system to collect and control the gases.  The city failed to install and operate the gas collection and control system by its deadline in 2002.  The gas collection and control system at the landfill was not in place until April 2013 and is currently operational.

“This settlement holds Honolulu accountable for past failures to collect and control toxic gases and greenhouse gas emissions from the Kapaa Landfill, but it also lays the foundation for better environmental stewardship in the future,” said Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division.  “Residents who call Oahu home will realize the benefits of this agreement – which includes clean solar power production and reduced reliance on fossil fuels – for many years to come.”  

“Air emissions from a closed landfill are toxic and can contribute to global warming,” said Administrator Jared Blumenfeld of EPA for the Pacific Southwest.  “If the proper systems had been in place at the landfill, over 343,000 tons of methane and 6,800 tons of hazardous air pollutants and volatile organics, would not have escaped to the atmosphere.”

Honolulu is the owner/operator of the landfill encompassing approximately 215 acres that includes the smaller Kalaheo Landfill.  The landfill first received solid waste in 1969 and closed in May 1997.  From 1990 to 2002, Gas Recovery Systems Inc. installed and operated a gas collection system and turbine on behalf of the city for the generation of electric energy.  Gas Recovery Systems Inc. ceased operation of the gas turbine due to its failure in 2002.

Effective gas controls at a landfill reduce the release of these hazardous gases and poorly controlled gas.  Many air pollutants identified in landfill gas are either known or suspected carcinogens.  Air emissions of methane from landfills can also contribute to global methane emissions, a greenhouse gas with about 25 times the global warming potential of carbon dioxide.

The solar panels will be installed at the city’s H-POWER facility in Campbell Industrial Park.  The new solar panels will have a capacity of 3.1 megawatts and will generate over five million kilowatt-hours of electricity per year, enough to power 800 Oahu households on average.  This action will lead to less reliance on fossil fuels on Oahu.

Today’s proposed Clean Air Act consent decree, lodged in the U.S. District Court in Hawaii, is subject to a 30-day public comment period and court approval and is now available for review at www.justice.gov/enrd/Consent_Decrees.html

For more information about Clean Air Act landfill regulations, please visit the EPA’s web site at www.epa.gov/outreach/lmop/faq/landfill-gas.html

An owner of a Miami home health care company was sentenced today to 10 years in prison for his leading role in a $13 million Medicare fraud scheme that involved paying kickbacks and bribes to patient recruiters, Medicare beneficiaries and others in South Florida doctors’ offices and medical clinics.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.

Alexander Lara, 46, of Hollywood, Florida, pleaded guilty before U.S. Magistrate Judge Chris M. McAliley of the Southern District of Florida on Feb. 17, 2015, to one count of conspiracy to commit health care fraud.  According to admissions made as part of his guilty plea, Lara was an owner and operator of Longcare Home Health Corporation (Longcare Home Health), a Miami home health care agency that purported to provide home health and therapy services to Medicare beneficiaries, but the company fraudulently billed the Medicare program for, among other things, expensive physical therapy and home health care services that were not medically necessary or not provided at all.  From approximately January 2009 through November 2014, Medicare paid approximately $13.7 million for fraudulent claims submitted by Longcare Home Health, according to court documents.

Lara admitted that he personally paid kickbacks and bribes to patient recruiters and to Medicare beneficiaries in exchange for referrals.  He also admitted to paying kickbacks and bribes in doctors’ offices and clinics in exchange for fraudulent home health prescriptions for medically unnecessary therapy and services.  These prescriptions and recruited patients were used to fraudulently bill the Medicare program for home health care services.

In addition to his sentence, Lara was ordered to pay $13,771,528.94 in restitution and to forfeit $13,771,528.94, which represents the proceeds traceable to his criminal conduct at Longcare Home Health.  Lara was sentenced by Chief U.S. District Judge K. Michael Moore of the Southern District of Florida.

The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Southern District of Florida.  The case was prosecuted by Trial Attorney Anne P. McNamara of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion.  In addition, the HHS’s Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.

The Justice Department announced today an agreement with Chaves County, New Mexico, to improve access to civic life for persons with disabilities.  The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).  This agreement is the fifth so far this year, as the department recognizes the 25th anniversary of the ADA, which the Civil Rights Division plays a critical role in enforcing.

As part of PCA, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify changes needed to comply with the ADA.  The agreements detail the remedial actions a city or county must take to improve access.  The department has a PCA agreement in every state, and this is the first agreement in southern New Mexico. 

Under the agreement, the county will remove barriers to accessibility at county facilities, including the county courthouse, administration building, health centers, medical complexes, detention center and juvenile detention center.  The county will make physical modifications to those facilities so that parking, routes into buildings, entrances, service areas and counters, restrooms, elevators and drinking fountains are accessible to people with disabilities.  The county will also survey other facilities and programs and make modifications wherever necessary to achieve full compliance with ADA requirements.  In addition to physical accessibility, the county will administer a grievance procedure for resolving ADA complaints, provide effective communication for county programs and services including law enforcement, provide improved access to polling places and the voting process and ensure that the county’s official website and other web-based services are accessible to people with disabilities. 

“Providing access to local government programs, services, and activities is critical to ensure equal opportunities for individuals with disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “I commend county officials for their cooperation in working with us and for making this commitment to provide equal access to their residents and visitors with disabilities.”  

Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments.  The department will actively monitor compliance with the agreement, which will remain in effect for three years.

For more information about the ADA, today’s agreement, and the PCA initiative, individuals can access the ADA web page at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).

Today, the Justice Department announced that, under a settlement agreement with the United States, the state of Tennessee is launching a training program available to all law enforcement personnel in Tennessee on effective interactions with people who have intellectual or developmental disabilities.  The training, developed by Tennessee’s Department of Intellectual and Developmental Disabilities (DIDD), helps law enforcement officers communicate effectively with people who have disabilities and their families in order to improve the safety and effectiveness of those interactions and to enhance community policing efforts.  DIDD has posted the training materials on its website and will present the materials at a statewide conference of law enforcement training officers later this month.

DIDD developed the training as part of a court-approved exit plan that resolves long running litigation between the United States and Tennessee concerning care for people with intellectual and developmental disabilities.  The lawsuit will continue during DIDD’s performance of other exit plan provisions.

“We applaud the state’s efforts to ensure that law enforcement officers engage safely and effectively with people who have intellectual or developmental disabilities and their families,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “This initiative is good for those people, for officers who serve in communities across the state, and for effective law enforcement.  Tennessee joins a new national trend in recognizing and preparing for the intersection between law enforcement and people with disabilities.  We also recognize and appreciate the continued collaboration of important stakeholders in reaching agreement on this crucial training, including DIDD, People First of Tennessee and the Parent Guardian Associations of Clover Bottom and Greene Valley Developmental Centers.”

The United States brought suit against the state of Tennessee in 1996, concerning conditions of care and the right to care in integrated settings for residents of Clover Bottom Developmental Center, Greene Valley Developmental Center and Nat T. Winston Center.  The state and the United States, along with two interveners, settled the case in 1996 through an agreement that called for both improved conditions within the centers and the integration of residents into community settings.  Shortly after the initiation of the suit, the state closed Nat T. Winston Center.  The state is now closing Clover Bottom Center and Greene Valley Developmental Centers.  In 2015, the court approved an exit plan designed to resolve the litigation by bringing to fruition planned community improvements in respite care, individual support planning and other areas.  The exit plan also required that the state develop the law enforcement training discussed above. 

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

The Justice Department announced today that it has moved to intervene in Aleeha Dudley v. Miami University, et al., 14-cv-038 (S.D. Ohio), a private lawsuit alleging disability discrimination by Miami University in Oxford, Ohio.  In the United States’ motion to intervene and complaint, the United States alleges that Miami University has violated Title II of the Americans with Disabilities Act (ADA) by requiring current and former students with disabilities to use inaccessible websites and learning management system software, and by providing these students with inaccessible course materials.  The motion was filed in the U.S. District Court of the Southern District of Ohio.

As alleged in today’s filings, Miami University uses technologies that are inaccessible to current and former students who have vision, hearing or learning disabilities.  Miami University has failed to ensure that individuals with disabilities can interact with its websites and learning management systems and access course assignments, textbooks and graphical materials on an equal basis with students without disabilities.  Miami’s failures have deprived persons with disabilities of a full and equal opportunity to benefit from Miami University’s educational opportunities.

Many students with disabilities, including those who have vision, hearing or learning disabilities, require assistive technologies to use computers and interact with electronic content.  Examples of assistive technologies include screen reader software, refreshable Braille displays, audio description, captioning and keyboard navigation.  Screen reader software audibly reads aloud information that is otherwise presented visually on a computer screen; refreshable Braille displays convert digital text into Braille; captioning translates video narration and sound into text; and keyboard navigation allows individuals with visual or manual dexterity disabilities to access computer content using a keyboard rather than a mouse.

The complaint seeks a judgment from the court requiring Miami University to provide accessible materials to ensure that individuals with disabilities can equally participate in and benefit from Miami University’s educational opportunities, and to compensate aggrieved individuals.

“Education is said to be the great equalizer of American society, and educational technologies hold great promise to make this a reality,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “However, students with disabilities continue to encounter an impenetrable glass ceiling of opportunity when schools fail to comply with the ADA.”   

Title II of the ADA prohibits discrimination on the basis of disability by state and local government entities, including colleges and universities.  Title III of the ADA likewise prohibits disability discrimination by private educational institutions.

Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

The Justice Department’s Civil Rights Division and U.S Attorney Carlie Christensen of the District of Utah announced today the filing of a complaint in U.S. District Court in Salt Lake City against Veteran’s Trading Company (VTC), a business with headquarters in Park City, Utah.  The complaint alleges the business violated the employment rights of Naval Reserve Captain Paul M. Costello under the Uniformed Services Employment and Reemployment Rights Act (USERRA).  Costello is a Navy veteran with a disability who has served his country as an F-18 fighter pilot.  Since 1997, he has served as a member of the United States Naval Reserve. 

According to the complaint, filed by the United States on Costello’s behalf, Costello’s military service was a motivating factor in VTC’s decisions to deny his request for re-employment and, ultimately, to terminate his employment.  The United States claims that both actions by VTC violated Costello’s USERRA rights. 

The complaint further alleges that in July 2013, VTC fired Costello from his job as company President due to his military service and subsequently denied Costello’s application for reemployment following his active military duty in September 2013.  On April 30, 2015, VTC pre-emptively filed its own suit against Costello in Utah state court claiming that he was inappropriately remunerated for his service to the company while he was on military leave; despite the fact that while he was on military he took personal leave in order to preside over company meetings.  In addition to filing its federal complaint, the United States removed the employer’s action from state court to federal court.

“The brave men and women who serve in our Armed Forces should never have to fear losing their job while they’re deployed overseas,” said Acting Associate Attorney General Stuart F. Delery.  “That’s why the Department of Justice is committed to protecting the employment rights of service members and we will continue to devote time and resources to hold bad actors accountable.”

“Captain Costello served our nation honorably, and USERRA guarantees his right to re-employment upon his return from service,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “Through the department’s newly created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”

“Members of our National Guard and Reserves make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Christensen.  “When our service members are deployed in the service of our country, they are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations.  We are filing suit today, on behalf of Captain Costello, a member of the U.S. Naval Reserve, to ensure that he does not lose his rights while he was protecting ours.” 

USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations, and proved that service members cannot be discriminated against because of their military obligations. 

The lawsuit filed by the United States seeks damages equal to the amount of Costello’s lost wages and other benefits caused by VTC’s failure to comply with USERRA and a dismissal of VTC’s complaint.  It also seeks an order requiring VTC to return Costello’s ownership and distribution shares and pay him all amounts that were distributed to shareholders between June 9, 2013, and the date of judgment.  The lawsuit seeks an order requiring VTC to pay for all litigation fees related to the court action.

Costello initially filed a complaint with the Labor Department’s Veterans’ Employment and Training Service, which investigated this matter and, after resolution failed, referred it to the Justice Department’s Civil Rights Division, Employment Litigation Section.  This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office for the District of Utah.  The Department of Justice has given a high priority to the enforcement of service members’ rights under USERRA.  Additional information about USERRA can be found on the Justice Department’s Web sites at http://www.usdoj.gov/crt/emp and http://www.servicemembers.gov, as well as on the Labor Department’s website at http://www.dol.gov/vets/programs/userra/main.htm.

A Temple Hills, Maryland, resident who operated a company that provided security guards to private businesses and apartment complexes pleaded guilty today in the U.S. District Court for the District of Columbia to failing to file employment tax returns and pay over approximately $600,000 in employment taxes to the Internal Revenue Service (IRS), announced Acting Deputy Assistant Attorney General Larry J. Wszalek of the Justice Department’s Tax Division.

Jeffrey Norman Jackson operated Innovative Security Services LLC in Washington, D.C., between 2005 and 2009, according to court documents.  Jackson controlled the business’s finances and was responsible for filing the Employer’s Quarterly Federal Tax Returns (IRS Forms 941) and paying over to the IRS the business’ federal income, social security and Medicare taxes (known as FICA taxes) that were withheld from the wages of Innovative’s employees.  For more than four years, Jackson willfully failed to comply with these legal obligations.  He used the stolen funds to pay personal expenses, such as rent and gym membership fees.

The plea agreement requires Jackson to pay $595,687.39 in restitution to the IRS for the taxes due and owing.  He faces a statutory maximum sentence of five years in prison and a $250,000 fine when he is sentenced on July 27.

Acting Deputy Assistant Attorney General Wszalek commended the special agents of IRS-Criminal Investigation, who investigated the case and Trial Attorney Melissa S. Siskind of the Tax Division, who is prosecuting the case.  Wszalek also thanked the U.S. Attorney’s Office of the District of Columbia for their assistance.

Today, the United States District Court for the Southern District of Mississippi approved the joint motion for unitary status filed by the Department of Justice and the Wayne County School District in Mississippi.  At the department and school district’s request, the court dismissed this longstanding school desegregation case.  The school district serves close to 3,500 students and has been operating under a desegregation order since 1970. 

In 2006, the court entered an order specifically prohibiting the use of race in classroom assignments at Waynesboro Elementary School, one of the district’s four elementary schools.  In 2012, after concerns continued about Waynesboro’s classroom assignment practices, the court approved a consent order directing the district to randomly assign students to classrooms in the school.  The district has successfully used the new classroom assignment procedures for the last four school years.

The department recently determined that the district had complied fully with the terms of the 2012 consent order and is therefore eligible for unitary status and dismissal of the case.

“We commend the Wayne County School District for satisfying its remaining obligations in this case and ensuring equal educational opportunities for all students,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “We have been pleased to work with the district and other school systems under desegregation orders to resolve outstanding issues and seek dismissal of these cases when district have satisfied their obligations.”

Currently, the department monitors 178 school districts under active desegregation orders.  Over the last year, several school districts under desegregation orders have successfully sought unitary status from the courts and the cases have been dismissed.

Promoting school desegregation is a priority of the department’s Civil Rights Division.  Additional information about the division is available at www.justice.gov/crt.   

A Phenix City, Alabama, resident was arrested today after being indicted on April 28 by a federal grand jury sitting in the Middle District of Alabama on charges of conspiracy to defraud the United States, wire fraud and aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.

The indictment charges Talashia Hinton, aka LayLay and LaLa, with one count of conspiracy to defraud the United States, five counts of wire fraud and five counts of aggravated identity theft.  According to the allegations in the indictment, Hinton participated in a large-scale stolen identity tax refund scheme in which more than 3,000 false tax returns for 2012 and 2013 were filed that claimed more than $7.5 million in fraudulent federal income tax refunds from the Internal Revenue Service (IRS).  Hinton worked with other individuals who supplied her with IRS electronic filing identification numbers (EFINs) and stolen identities that included personal information so that Hinton could prepare and file false tax returns to claim refunds using those stolen names.  Hinton directed the IRS to pay the refunds by issuing U.S. Treasury checks and direct deposits onto prepaid debit cards.    

If convicted, Hinton faces a statutory maximum sentence of 20 years in prison for each wire fraud count, a statutory maximum sentence of five years in prison for the conspiracy count and a mandatory minimum sentence of two years in prison for aggravated identity theft.  Hinton also faces monetary penalties, including fines, forfeiture and restitution.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck Jr. commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Michael C. Boteler and Gregory P. Bailey of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting the case.

The charges contained in the indictment are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

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

Heather Elizabeth Coffman, 29, of Glen Allen, Virginia, was sentenced today to 54 months in prison for making false statements in an international terrorism investigation.

Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Special Agent in Charge Adam S. Lee of the FBI’s Richmond Field Office made the announcement. 

Coffman pleaded guilty to a one-count criminal information on Jan. 30, 2015.  According to the statement of facts filed with the plea agreement, Coffman admitted that beginning prior to June 2014 and continuing up through November 2014, she used several Facebook accounts under different names showing her support for the Islamic State of Iraq and the Levant’s (ISIL, referred to as ISIS by the defendant and within court documents) cause.  These accounts also revealed the defendant’s romantic involvement with an individual referred to as “N.A.,” a foreign national living outside of the United States.  In the months leading up to September 2014, Coffman and N.A. communicated almost daily via Facebook and other communications platforms.  During their conversations, Coffman and N.A. explored options for N.A. to travel to Syria in order to fight for ISIS and die a “Shaheed,” referring to a martyr who dies for “jihad.”

Coffman cultivated online relationships with individuals she believed were ISIS facilitators operating in Syria.  She put N.A. in contact with a facilitator to assist with his travel and eventual training with ISIS (with the Coffman’s financial assistance for travel) before he was to cross the border into Syria to fight with ISIS.  This plan was moving forward when the couple’s relationship deteriorated in early September 2014, and N.A. backed out of the plans.  Coffman later communicated with others about her disappointment and expressed how she wished that the plan had succeeded.

According to the plea documents, Coffman admitted that she lied during the ongoing investigation on Nov. 13, 2014, when she told FBI agents that she did not know whether N.A. had talked to anybody else who supported ISIS, and that she did not know anybody N.A. had talked to when, as Coffman well knew, she had previously put N.A. in contact with ISIS fighters and N.A., in turn, had communicated with them to facilitate N.A.’s travel to Turkey to join ISIS.

This case was investigated by FBI’s Richmond Field Office and the Richmond Joint Terrorism Task Force (JTTF).  Member agencies of the Richmond JTTF who assisted in this particular investigation include Virginia State Police, Henrico County Police, Chesterfield County Police, Richmond Police, Homeland Security Investigations, U.S. Secret Service, Bureau of Alcohol Tobacco and Firearms and Explosives, Department of State Diplomatic Security Service, Transportation Security Administration and Defense Criminal Investigative Service.

The prosecution is being handled by Assistant U.S. Attorneys Michael Gill and Jessica Aber of the Eastern District of Virginia, and Trial Attorney Annamartine Salick of the National Security Division's Counterterrorism Section.

Under a $12 million settlement with the United States and the state of New York, Tonawanda Coke Corp. will pay $2.75 million in civil penalties, spend approximately $7.9 million to reduce air pollution and enhance air and water quality and spend an additional $1.3 million for environmental projects in the area of Tonawanda, New York.  The agreement was announced jointly by Assistant Attorney General John C. Cruden for the Department of Justice’s Environment and Natural Resources Division, Regional Administrator Judith A. Enck for the Environmental Protection Agency (EPA), Commissioner Joseph Martens for the New York State Department of Environmental Conservation (NYSDEC) and Attorney General Eric T. Schneiderman for New York.

Under the consent decree lodged today in federal court in the Western District of New York, Tonawanda Coke must improve its processes, operations and monitoring for coke oven gas leaks, assess key equipment, repair or replace equipment, install new pollution controls and take many additional measures under a prescribed schedule.  This work, estimated to cost approximately $7.9 million, will secure significant reductions of benzene, ammonia and particulate matter emissions from the plant, improving air quality in Tonawanda and protecting public health.

“The community that is home to the Tonawanda facility is finally receiving the protections it deserves from its neighbor,” said Assistant Attorney General Cruden.  “We are pleased to be joining with the state of New York in this important environmental enforcement action, which holds Tonawanda accountable for its numerous violations of federal and state environmental laws and requires measures to achieve significant reductions in air and water pollution that will benefit Tonawanda residents for years to come.”

The settlement also requires Tonawanda Coke to pay a $1.75 million civil penalty to the United States to resolve violations of the Clean Air Act, the Clean Water Act and the Emergency Planning and Community Right-to-know Act, and pay a $1 million civil penalty to the state of New York, which is a co-plaintiff with the United States.  In addition to the state penalty, Tonawanda Coke will pay another $1 million to fund projects that will benefit the environment and the residents of Tonawanda.  Additionally, $357,000 will be provided to Ducks Unlimited, a nonprofit organization, to acquire and preserve wetlands.  In addition to protecting and enhancing water quality, wetlands reduce flooding, filter pollutants and provide habitat for fish and wildlife.      

“Tonawanda Coke has been an environmental outlaw for too long,” said Regional Administrator Enck.  “Today’s legal settlement will provide greater public health protections for the people of Western New York.  I particularly want to thank the residents of Tonawanda, their elected officials, the Clean Air Coalition of Western New York and the Citizen Science Community Resources who all shined a spotlight on these pollution problems.  The community did their own air toxic monitoring, which revealed high levels of pollution.  This fine example of citizen science spurred government action to protect the community.”

“For years, Tonawanda Coke recklessly ignored clean air, clean water and community right-to-know laws,” Attorney General Schneiderman said.  “In doing so, the company ignored both its legal responsibilities and its responsibilities to the health and safety of the residents of the surrounding communities.  With this settlement – which requires the company to clean up its operations and pay New York $2 million for penalties and local environment improvement projects – we are holding Tonawanda Coke accountable for its actions.” 

“I would like to acknowledge the good work done by everyone involved in this joint state and federal enforcement action that has resulted in significant operational changes at the Tonawanda Coke facility and will continue to improve the air quality in the Tonawanda community,” said Commissioner Martens.  “Importantly, a portion of the civil penalty assessed under the consent decree will be used to fund environmental benefit projects that will further improve public health and the environment in Tonawanda.”

The company’s violations of the Clean Air Act resulted in releases of coke oven gas, which contains benzene and other harmful chemicals.  Tonawanda failed to install air pollution controls on its coke ovens, failed to properly monitor equipment for coke oven gas leaks, failed to conduct required annual maintenance inspections of emission controls and proper operations and maintenance and failed to complete multiple required reports among other violations.  Exposure to benzene and other hazardous air pollutants found in coke oven gas can significantly harm human health and excessive exposure to benzene is a known cause of cancer.

Under the terms of the settlement, Tonawanda Coke is currently installing coke oven battery pollution controls to limit coke oven gas emissions from the battery.  These controls are known as “pushing controls,” and are estimated to reduce particulate matter by up to 162 tons per year once fully operational.

Among the other actions that Tonawanda Coke is required to take are:

• Repair or replace equipment in the by-products area.

• Install and operate pushing controls at the coke oven battery by the end of 2015.

• Install a continuous monitoring system on the battery stack.

• Comply with the particulate emission limits at the bag house stack.

• Improve coke battery work practices, operations and maintenance.

• Expand and improve the facility’s leak detection and repair program.

• Adopt a plan to control dust that is generated by its operations at the facility and reduce particulate emissions.

• Undergo a comprehensive evaluation by a third-party to assess its furnace coke production, coke oven walls and other key elements.

In addition, Tonawanda Coke will conduct additional auditing of its operations to implement necessary and appropriate changes that may arise from the third party audit.

Tonawanda Coke’s Clean Water Act violations include discharging wastewater and other prohibited pollutants in its stormwater discharges to the Niagara River, discharging excessive amounts of cyanide, ammonia and naphthalene in its process wastewater and allowing process water holding tanks to decay, pipes to leak and spill containment structures to become ineffective.  Tonawanda Coke’s illegal discharges and other Clean Water Act violations threatened human health and the ecology and economy of the Niagara River and Lake Ontario.

While Tonawanda Coke has largely resolved the Clean Water Act violations identified in the complaint, under the settlement, Tonawanda Coke’s facility will be subject to an independent, third-party audit of its Clean Water Act compliance and will be required to implement all necessary recommendations for improving facility operations.  EPA’s oversight of the facility’s Clean Water Act compliance will be ongoing.

Under the Emergency Planning and Community Right-to-Know Act, Tonawanda Coke failed to report that it manufactured benzene and ammonia in quantities that exceeded the 25,000 pound per year reporting threshold.  Companies that manufacture, process, import or otherwise use chemicals above a certain amount must annually submit chemical inventory information to local authorities and to the state, giving detailed information about the chemicals they have on location.  Tonawanda Coke has agreed to submit several years’ worth of information about its use and emissions of ammonia and benzene under this law.

The proposed consent decree was filed in federal court in the Western District of New York and will be subject to a 30 day public commenting period following its publication in the federal registry.  The consent decree can be viewed at http://www.justice.gov/enrd/Consent_Decrees.html

For more information about EPA’s actions at Tonawanda Coke and related legal documents, visit http://www.epa.gov/region02/capp/tonawanda.html.

Follow EPA Region 2 on Twitter at http://twitter.com/eparegion2 and visit our Facebook page, http://www.facebook.com/eparegion2.

Attorney General Loretta E. Lynch released the following statement on the death of two officers in Hattiesburg, Mississippi:

“The shocking assault on law enforcement officers in Hattiesburg, Mississippi, struck at the heart of that great city.  The Department of Justice stands ready to offer any possible aid to the Hattiesburg community as they investigate this appalling incident.  And we will continue to do all that we can to protect our officers across the country and support all those who wear the badge.

“Officer Benjamin Deen and Officer Liquori Tate were committed and courageous public safety officials, dedicated to their community and devoted to their mission.  They exemplified the very best that our country has to offer.  And as we go forward, the Department of Justice intends to honor their service and their sacrifice by fighting for the values they protected every day, and defending the American people they were proud to serve.

“Their loss is made even more tragic by the fact that, on the day they were killed this past Saturday, the country began observing Police Week – a time when we pause to remember and honor the more than 20,000 law enforcement officers who have been killed in the line of duty.  The murder of these young men is a devastating reminder that the work our brave police officers perform every day is extremely dangerous, profoundly heroic, and deeply deserving of our unequivocal support.  All Americans owe these courageous citizens a debt of gratitude.  The Department of Justice stands in solidarity with our brothers and sisters at every level of law enforcement as we mourn this most recent loss.”

A Raleigh, North Carolina, man pleaded guilty today to conspiracy to file false claims and identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Thomas G. Walker of the Eastern District of North Carolina.

According to court documents and court statements, Christian Rhodes and other co-conspirators recruited individuals to provide their personal information, which Rhodes and his co-conspirators used to prepare false federal individual income tax returns.  The tax returns that Rhodes prepared and filed contained false wages, income tax withholdings and deductions, resulting in the false claims for tax refunds.  Rhodes also used stolen identities to file false claims for tax refunds, and directed the Internal Revenue Service (IRS) to deposit these refunds electronically into bank accounts that he controlled, as well as accounts in the names of and controlled by third-party taxpayers.  The tax loss as a result of these false claims is more than $3 million.

Rhodes faces a statutory maximum sentence of 10 years in prison for the conspiracy charge and a mandatory minimum sentence of two years in prison for aggravated identity theft.  He also faces financial penalties, including fines and restitution.  Senior U.S. District Judge James C. Fox scheduled sentencing for the Aug. 5th term in Wilmington, North Carolina.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Walker commended the special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Susan Menzer of the Eastern District of North Carolina, and Trial Attorneys Lauren Castaldi and Rebecca Perlmutter 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.  Additional information about tax fraud schemes to watch out for may be found on the IRS-Criminal Investigation website.

The Department of Justice announced today that the Missoula, Montana, Police Department (MPD) has fully implemented the requirements of its agreement with the department to improve the MPD’s response to reports of sexual assault.  The agreement, which was entered into in May 2013, resolved part of the department’s comprehensive investigation of the response by the Missoula criminal justice system and the University of Montana to sexual assault.  Thomas R. Tremblay, the independent reviewer who determines whether the terms of the agreement have been met, has determined, and the department has agreed, that the MPD has met all of its obligations under the agreement and achieved the overall purpose of the agreement. 

The purpose of the agreement between the department and the MPD was to better protect and vindicate the rights of sexual assault victims by transforming the MPD’s response to allegations of sexual assault.  To do this, the agreement required significant changes to the police department’s policies, practices and supervision.  These changes promote more reliable sexual assault investigations, and effective, nondiscriminatory law enforcement and community support for victims, the police department and its officers.  The MPD’s implementation of the agreement has resulted in a host of historic advances in the Missoula response to sexual assault, including the following:

• creation of a new Special Victims’ Unit in the MPD focusing on sex crimes cases, and an interview room specifically designed for interviews with victims of sexual assault;

• extensive specialized training for first responders and detectives in the response to sexual assault;

• development and institution of an external review panel – one of the first of its kind – to review closed sexual assault cases for investigative comprehensiveness and indications of gender bias;

• completion of an audit of the community-wide response to sexual assault – one of the first community audits to focus exclusively on sexual assault – including all of the key law enforcement agencies, advocacy organizations and medical service providers serving victims of sexual assault in Missoula County;

• community advocates reporting better communication and coordination with local law enforcement than ever before; and

• victim surveys indicating significant satisfaction with police officers’ and detectives’ treatment of victims reporting sexual assault to law enforcement.

“Our agreement with the Missoula Police Department following our investigation into the handling of sexual assault complaints made by women in Missoula has been a catalyst for powerful changes in both the law enforcement and the community’s coordinated response to sexual assault,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “We are grateful for the efforts of MPD and the entire Missoula community because, as a result of these reforms, the women of Missoula are safer, more trusting of the criminal justice system, and subject to more fair and respectful treatment by local law enforcement.  Missoula’s police department had the courage and leadership to acknowledge that it had a problem and to address it, and as a result, is poised to become a model for communities struggling with these issues around the country.”

“We commend the Missoula Police Department and the city of Missoula for the leadership and commitment that they have demonstrated to transform the way in which their city police department responds to reports of sexual assault,” said U.S. Attorney Michael Cotter of the District of Montana.  “We also recognize and appreciate the hard work that the detectives and officers of the Missoula Police Department have put into carrying out these reforms.  In so doing, they have carried out the highest ideals of public service, making the safety and civil rights of their community a top priority, and their efforts should be an inspiration to us all.” 

The full implementation of the department’s agreement with the MPD marks the first completion of the series of agreements stemming from the department’s multi-pronged investigation, launched in May 2012, regarding the handling of sexual assault complaints made by women in Missoula.  The investigation, conducted under the Violent Crime and Law Enforcement act of 1994, the Safe Streets Act, Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, evaluated the response to sexual assault at the University of Montana at Missoula, the University of Montana Police Department (UMPD), the MPD, and the Missoula County Attorney’s Office.  The department entered into agreements with the university, the UMPD and the MPD in May 2013, to resolve findings related to those parties and address deficiencies in their response to sexual assaults.  The department, together with the Montana Attorney General’s Office, entered into agreements regarding the Missoula County Attorney’s Office the following year, in June 2014.  The implementation of those agreements has already improved these parties’ response to sexual assaults.

These agreements, as well as a description of the department’s work regarding sexual assault in Missoula, are available at: http://www.justice.gov/crt/about/spl/.  The independent reviewer’s final compliance report, describing in detail his determination that the MPD has successfully implemented the department’s agreement, is forthcoming, and will be available on the department’s website upon its release.

Jeffrey A. Sterling, 47, of O’Fallon, Missouri, was sentenced today to 42 months in prison for disclosing national defense information and obstructing justice.  Sterling disclosed classified information about a clandestine operational program concerning Iran’s nuclear weapons program to a New York Times reporter in 2003.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia and Assistant Director in Charge Andrew McCabe of the FBI’s Washington, D.C. Field Office made the announcement.

“For his own vindictive purposes, Jeffrey Sterling carelessly disclosed extremely valuable, highly classified information that he had taken an oath to keep secret,” said U.S. Attorney Boente.  “His attempt to leverage national security information for his own malicious reasons brought him to this sentence today.  I would like to thank the trial team and our partners at the FBI’s Washington Field Office and the Central Intelligence Agency for their hard work and commitment to this case.”

“The sentence handed down by a federal judge is the culmination of a lengthy investigation, a protracted prosecution and a unanimous decision by a federal jury to convict Mr. Sterling for the unauthorized disclosure of national security information,” said Assistant Director in Charge McCabe.  “The time and effort dedicated to this case by FBI special agents, intelligence analysts and prosecutors working on this matter exemplify the extent the FBI will undertake in pursuit of justice.”

Sterling was found guilty by a federal jury on Jan. 26, 2015.  According to court records and evidence at trial, Sterling was employed by the CIA from May 1993 to January 2002.  From November 1998 through May 2000, he was assigned to a classified clandestine operational program designed to undermine the Iranian nuclear weapons program.  He was also the operations officer assigned to handle a human asset associated with that program, a person identified at trial as Merlin.  Sterling was reassigned in May 2000, at which time he was no longer authorized to receive or possess classified documents concerning the program or the individual.

In connection with his employment, Sterling, who is a lawyer, signed various security, secrecy and non-disclosure agreements in which he agreed never to disclose classified information to unauthorized persons, acknowledged that classified information was the property of the CIA, and also acknowledged that the unauthorized disclosure of classified information could constitute a criminal offense.  These agreements also set forth the proper procedures to follow if Sterling had concerns that the CIA had engaged in any “unlawful or improper” conduct that implicated classified information.  These procedures permit such concerns to be addressed while still protecting the classified nature of the information.  The media was not an authorized party to receive such classified information.

In August 2000, Sterling pursued administrative and civil actions against the CIA.  Evidence at trial showed that Sterling, in retaliation for the CIA’s refusal to settle those actions on terms favorable to him, disclosed information concerning the classified operational program and the human asset to a New York Times reporter working on an unpublished article in early 2003 and a book the reporter published in January 2006.  Sterling’s civil and administrative claims were ultimately dismissed by the court.

Evidence demonstrated that in February and March 2003, Sterling made various telephone calls to the reporter’s residence and e-mailed a newspaper article about the weapons capabilities of a certain country that was within Sterling’s previous clandestine operational assignment.  While the possible newspaper article containing the classified information Sterling provided was ultimately not published in 2003, evidence showed that Sterling and the reporter remained in touch from December 2003 through November 2005 via telephone and e-mail.  In January 2006, the reporter published a book that contained classified information about the program and the human asset.

Evidence at trial showed that Sterling was aware of a grand jury investigation into the matter by June 2006 when he was served a grand jury subpoena for documents relating to the reporter’s book.  Nevertheless, between April and July 2006, Sterling deleted the e-mail containing the classified information he had sent from his account in an effort to obstruct the investigation.

This case was investigated by the FBI’s Washington Field Office, with assistance in the arrest from the FBI’s St. Louis Field Office.  This case was prosecuted by Deputy Chief Eric G. Olshan of the Criminal Division’s Public Integrity Section and Senior Litigation Counsel James L. Trump and Assistant U.S. Attorney Dennis Fitzpatrick of the Eastern District of Virginia. 

The Department of Justice announced today that Vadian Bank AG (Vadian), located in St. Gallen, Switzerland, reached a resolution under the Department of Justice’s (DOJ) Swiss Bank Program.

“The department continues to work with Swiss banks to reach final resolutions in accordance with the terms of the program, and is focused on its goal of completing this process expeditiously,” said Acting Assistant Attorney General Caroline D. Ciraolo of the Department of Justice’s Tax Division.  “Simultaneously, the department has opened investigations of culpable individuals and entities based on information obtained from the Swiss banks in the program, and will pursue and prosecute those engaged or assisting others in evading U.S. tax obligations.”

The Swiss Bank Program, which was announced on Aug. 29, 2013, provides a path for Swiss banks to resolve potential criminal liabilities in the United States.  Swiss banks eligible to enter the program were required to advise the department by Dec. 31, 2013, that they had reason to believe that they had committed tax-related criminal offenses in connection with undeclared U.S.-related accounts.  Banks already under criminal investigation related to their Swiss-banking activities and all individuals were expressly excluded from the program.

Under the program, banks are required to:

• Make a complete disclosure of their cross-border activities;
• Provide detailed information on an account-by-account basis for accounts in which U.S. taxpayers have a direct or indirect interest;
• Cooperate in treaty requests for account information;
• Provide detailed information as to other banks that transferred funds into secret accounts or that accepted funds when secret accounts were closed;
• Agree to close accounts of account holders who fail to come into compliance with U.S. reporting obligations; and
• Pay appropriate penalties.

Banks meeting all of the above requirements are eligible for a non-prosecution agreement.

According to the terms of the non-prosecution agreement signed today, Vadian agrees to cooperate in any related criminal or civil proceedings, demonstrate its implementation of controls to stop misconduct involving undeclared U.S. accounts and pay a $4.253 million penalty in return for the department’s agreement not to prosecute Vadian for tax-related criminal offenses.

Vadian has one office and 26 employees.  Prior to 2008, Vadian’s business predominantly consisted of savings accounts, residential mortgage lending and small business loans.  In 2007, Vadian hired a marketing firm to assist with its planned growth into private banking, and focused its efforts on attracting external asset managers.  In 2008, after it became publicly known that UBS was a target of a criminal investigation, Vadian accepted accounts from U.S. persons who were forced out of other Swiss banks.  At this time, Vadian’s management was aware that the U.S. authorities were pursuing Swiss banks that facilitated tax evasion for U.S. accountholders in Switzerland, but was not deterred because Vadian had no U.S. presence.  As a result of its efforts, after August 2008, Vadian attracted cross-border private banking business and increased its U.S. related accounts from two to more than 70, with $76 million in assets under management.

Through its managers, employees and/or other individuals, Vadian knew or believed that many of its U.S. accountholders were not complying with their U.S. tax obligations, and Vadian would and did assist those clients to conceal assets and income from the IRS.  Vadian’s services included: “hold mail” services; numbered accounts, where the client was known to most bank employees only by a number or code name; opening and maintaining accounts for U.S. taxpayers through non-U.S. entities such as corporations, trusts or foundations; and accepting instructions from U.S.-based accountholders to prevent investments from being made in U.S.-based securities that would require disclosure to U.S. tax authorities. 

In resolving its criminal liabilities under the program, Vadian provided extensive cooperation and encouraged U.S. accountholders to come into compliance.

While Vadian’s U.S. accountholders who have not yet declared their accounts to the IRS may still be eligible to participate in the IRS’s offshore voluntary disclosure programs, the price of such disclosure has increased.

Most U.S. taxpayers who enter the IRS offshore voluntary disclosure program to resolve undeclared offshore accounts will pay a penalty equal to 27.5 percent of the high value of the accounts.  On Aug. 4, 2014, the IRS increased the penalty to 50 percent if, at the time the taxpayer initiated their disclosure, either a foreign financial institution at which the taxpayer had an account or a facilitator who helped the taxpayer establish or maintain an offshore arrangement had been publicly identified as being under investigation, the recipient of a John Doe summons or cooperating with a government investigation, including the execution of a deferred prosecution agreement or non-prosecution agreement.  With today’s announcement of Vadian’s non-prosecution agreement, its noncompliant U.S. accountholders must now pay that 50 percent penalty to the IRS if they wish to enter the IRS’ program. 

“Today’s action is another warning for those who are still considering hiding money offshore to evade U.S. tax laws,” said Chief Richard Weber of IRS-Criminal Investigation (CI).  “The IRS and DOJ continue to aggressively work together to put an end to this abuse.  When individuals and institutions allow this to happen, they are not only cheating the U.S. government, they are cheating the honest taxpaying citizens who are obeying the law and doing the right thing.”

Acting Assistant Attorney General Ciraolo thanked the IRS and in particular, IRS-CI and IRS’s Large Business and International Division (LB & I) for their substantial assistance, as well as Trial Attorney Michael Wilcove of the Tax Division, who served as lead counsel on this matter, and Senior Counsel for International Tax Matters and Coordinator of the Swiss Bank Program Thomas J. Sawyer of the Tax Division. 

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

The Justice Department announced today that the Housing Authority of the city of Ruston, Louisiana, has agreed to pay $175,000 and adopt comprehensive new policies to settle a race discrimination lawsuit filed by the department.  The settlement must still be approved by U.S. District Court Judge Robert G. James of the Western District of Louisiana.   

The department’s lawsuit, filed in September 2013, alleged that the Ruston Housing Authority (RHA) had long segregated the 300 apartments in its five public housing developments by assigning vacancies to applicants based on their race, rather than on their place on the waiting list.  Specifically, the department alleged that the RHA disproportionately assigned white applicants to its two developments that were located in the predominantly white neighborhoods of Ruston—Louise Homes and Maryland Plaza Homes.  At the same time, the department alleged, RHA primarily assigned African-American applicants to the complexes located in predominantly African-American neighborhoods—Eastwood Homes, Greenwood Homes and Truman Homes.  When it originally began developing housing in the 1950’s and early 1960’s, the RHA explicitly reserved Louise Homes and Maryland Plaza for “white” persons, while reserving Greenwood and Truman for what it termed “colored” persons.  

Although the RHA no longer maintained this de jure system, the department alleged that it had continued to segregate its complexes in practice.  During the litigation, the former Ruston Housing Authority project manager from 2003 to 2013 admitted in her sworn deposition testimony that on numerous occasions she skipped over earlier applying African-American applicants in order to fill vacancies at Louise Drive Homes with later applying white applicants.  She also testified that on multiple occasions she did not offer eligible white applicants available apartments in the nearly all-black Eastwood Homes, Greenwood Homes and Truman Homes, but instead offered those units to later-applying African American applicants.   

“People who seek public housing, like all other home seekers, have the right to access housing free from racial discrimination," said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “It is particularly distressing that, almost 50 years after the passage of the Fair Housing Act, this public housing authority was still filling vacancies based on the color of an applicant’s skin, rather than based on when he or she had applied.  We are pleased that the Ruston Housing Authority has agreed to dismantle this segregated system and compensate its victims.”   

“We have zero tolerance for housing providers that discriminate against individuals based on race,” said U.S. Attorney Stephanie A. Finley of the Western District of Louisiana.  “Today’s settlement is an example of our continuing effort to end discrimination in such a vital need, housing.  The U.S. Attorney’s Office is committed to addressing unlawful discriminatory practices and enforcing anti-discrimination laws that protect the rights of all people."

“Assigning persons housing based on the color of their skin not only robs them of the basic dignity everyone seeking housing should be afforded, it violates the Fair Housing Act,” said Assistant Secretary Gustavo Velasquez of the Department of Housing and Urban Development’s Fair Housing and Equal Opportunity Office.  “HUD is committed to working with the Justice Department to take action against housing providers whose policies and practices are discriminatory.”

Upon court approval, the settlement, which is in the form of a consent decree, will require the RHA to implement nondiscriminatory policies and procedures to ensure compliance with the Fair Housing Act and to ensure that RHA housing units are made available for rent based on an applicant’s position on its waiting list, irrespective of race.  The decree also requires that if RHA builds or acquires additional units, they are to be located in areas that do not further racial segregation.  In addition, RHA employees who are responsible for making housing decisions will receive training on the new nondiscriminatory policies and procedures, the consent decree and the Fair Housing Act.

In addition, the RHA will pay $175,000 to compensate 19 individuals who suffered damages as a result of the RHA passing them over for available housing units because of their race.  Additionally, for those 19 victims of the RHA’s discriminatory actions identified in the consent order, the RHA will allow those who are current tenants to request a transfer to another complex on a priority basis.  It will also permit those identified individuals who are prior applicants and former tenants to reapply and, upon approval of their applications, give them priority for a unit at a complex of their choice.

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

The Justice Department announced today that it reached a settlement with The Data Entry Company Inc., a government subcontractor headquartered in Bethesda, Maryland.  The settlement resolves a charge filed with the Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC), claiming that the company engaged in hiring discrimination in violation of the Immigration and Nationality Act (INA).   

The department’s investigation found that on two occasions The Data Entry Company Inc., removed a U.S. citizen from its pool of applicants because she is a dual citizen, in violation of the INA.  The INA’s anti-discrimination provision prohibits employers from engaging in hiring discrimination on the basis of citizenship.

“The Justice Department is committed to identifying and tearing down illegal barriers that prevent authorized workers from working,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “The department commends The Data Entry Company Inc., for working to rectify this situation in a cooperative manner.”

Under the settlement agreement, The Data Entry Company Inc. will pay $7,007.75 in back pay to the charging party and will also pay a civil penalty to the United States.  The company also will undergo training on the anti-discrimination provision of the INA. 

OSC is responsible for enforcing the anti-discrimination provision of the INA.  Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.  Trial Attorney Silvia Dominguez-Reese investigated this charge. 

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

Attorney General Loretta E. Lynch announced today that the Justice Department has opened a civil pattern or practice investigation into Baltimore Police Department (BPD), pursuant to the Violent Crime Control and Law Enforcement Act of 1994.  The department’s investigation of BPD will seek to determine whether there are systemic violations of the Constitution or federal law by officers of BPD.  The investigation will focus on BPD’s use of force, including deadly force, and its stops, searches and arrests, as well as whether there is a pattern or practice of discriminatory policing.

While the pattern or practice investigation is ongoing, the department’s Office of Community Oriented Policing will continue to work with BPD and the collaborative reform process that was started in October 2014 will convert to the provision of technical assistance to the BPD allowing for changes and improvements even as the pattern or practice investigation is underway.

“Our goal is to work with the community, public officials and law enforcement alike to create a stronger, better Baltimore,” said Attorney General Loretta Lynch.  “The Department of Justice’s Civil Rights Division has conducted dozens of these pattern or practice investigations, and we have seen from our work in jurisdictions across the country that communities that have gone through this process are experiencing improved policing practices and increased trust between the police and the community.  In fact, I encourage other cities to study our past recommendations and see whether they can be applied in their own communities.  Ultimately, this process is meant to ensure that officers are being provided with the tools they need – including training, policy guidance and equipment – to be more effective, to partner with civilians and to strengthen public safety.” 

During the course of the investigation, the Justice Department will consider all relevant information, particularly the efforts that BPD has undertaken to ensure compliance with federal law, and the experiences and views of the community.  The Justice Department has taken similar steps involving a variety of state and local law enforcement agencies, both large and small, in jurisdictions throughout the United States.  These investigations have in many instances resulted in comprehensive, court-overseen agreements to fundamentally change the law enforcement agency’s police practices.

In addition to gathering information directly from community members, pattern or practice investigations involve interviewing police officers and local officials; gathering information from other criminal justice stake holders, such as public defenders and prosecutors; observing officer activities through ride-alongs and other means; and reviewing documents and specific incidents that are relevant to our investigation.

Pattern or practice investigations of police departments do not assess individual cases for potential criminal violations.  The investigation into BPD is separate from the department’s concurrent criminal civil rights investigation related to the death of Freddie Gray.

This matter is being investigated by attorneys and staff from the Justice Department’s Civil Rights Division.  They will be assisted by experienced law enforcement experts.  The department welcomes the views of anyone wishing to provide relevant information.  Individuals who wish to share information related to the investigation are encouraged to contact the department at 1-844-401-3733 or via email at Community.Baltimore@usdoj.gov.

Police Reform and Accountability Fact Sheet

How P&P Investigations Work

CRI Fact Sheet

Defendant Arrested in the Philippines

An indictment has been unsealed charging Charles Harvey Eccleston, a former employee of the U.S. Department of Energy and the U.S. Nuclear Regulatory Commission (NRC), in connection with an attempted email “spear-phishing” attack in January 2015, targeting dozens of Department of Energy employee e-mail accounts.

The indictment was announced today by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Assistant Director in Charge Andrew G. McCabe of the FBI’s Washington Field Office.

The indictment was unsealed, along with an earlier-filed complaint and affidavit, following Eccleston’s first appearance this afternoon in the U.S. District Court of the District of Columbia.  The court ordered that he remain detained pending a hearing set for May 20, 2015.

According to the affidavit, the goal of the attack was to cause damage to the computer network of the Department of Energy through a computer virus that Eccleston believed was being delivered to particular department employees through emails, and to extract sensitive, nuclear weapons-related government information that Eccleston believed would be collected by a foreign country. 

An email spear-phishing attack involves crafting a convincing email for selected recipients that appears to be from a trusted source and that, when opened, infects the recipient’s computer with a virus.  Attackers may gather personal information about their target to increase their probability of success.

“Combating cyber-based threats to our national assets is one of our highest priorities,” said Assistant Attorney General Carlin.  “As alleged in the indictment, Eccleston sought to compromise, exploit and damage U.S. government computer systems that contained sensitive nuclear weapon-related information with the intent to allow foreign nations to gain access to that material.  We must continue to evolve our efforts and capabilities to confront cyber enabled threats and aggressively detect, disrupt and deter them.  We are grateful for the tireless efforts of law enforcement in this case.”

“This former federal employee is charged with trying to launch a cyber-attack to steal sensitive information from the Department of Energy,” said Acting U.S. Attorney Cohen.  “Thanks to an innovative operation by the FBI, no malicious code was actually transmitted to government computers.  This prosecution demonstrates federal law enforcement’s vigorous efforts to neutralize cyber threats that put consumers, our economy, and our national security at risk.”

“Computer intrusions are among the greatest cyber threats to our national security,” said Assistant Director in Charge McCabe.  “Cyber actors have become increasingly adept at exploiting our computer networks in order to exfiltrate our nation’s secrets and valuable research.  As threats to the U.S. government become increasingly complex, the FBI will continue to evolve in order to counter these threats.”

Eccleston, 62, a U.S. citizen who had been living in Davos City in the Philippines since 2011, was terminated from his employment at the U.S. Nuclear Regulatory Commission in 2010.  The attack targeted computers at the Department of Energy.  Eccleston was detained by Philippine authorities in Manila on March 27, 2015, and deported to the United States to face U.S. criminal charges.

According to the affidavit, Eccleston initially came to the attention of the FBI after he entered a foreign embassy and offered to provide classified information, which he claimed had been taken from the U.S. government.  Thereafter, Eccleston met with FBI undercover employees who were posing as representatives of the foreign country, and in exchange for a promised future payment, offered to design and send spear-phishing e-mails that could be used to damage the computer systems used by his former employer and to extract sensitive information from them.

The affidavit alleges that Eccleston sent those emails to over 80 Department of Energy computers in January 2015.  The FBI was able to ensure that no computer virus or malicious code was actually transmitted to the government computers.   

The indictment charges Eccleston with a total of four felony offenses. These include three counts of crimes involving unauthorized access of computers.  Each of the crimes, as charged, is a felony punishable by a fine or imprisonment for various terms, the longest of which is ten years.   The indictment also charges Eccleston with wire fraud.  Such a violation is a felony punishable by a fine or imprisonment for not more than 20 years, or both.  Eccleston is charged with attempted violations of the statutes because the FBI ensured that no computer virus was actually embedded in the spear-phishing emails. 

Charges contained in an indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

The investigation was conducted by the FBI’s Washington Field Office with assistance from the Nuclear Regulatory Commission and Department of Energy.  The prosecution is being handled by Assistant U.S. Attorney Thomas A. Gillice of the District of Columbia.  Trial Attorneys Scott Ferber and Julie A. Edelstein of the Justice Department’s National Security Division assisted in this matter. 

The Department of Justice expressed appreciation to the Government of the Philippines for its assistance.

Eccleston Indictment

A physician who ran a medical house call service business in Dallas, and an employee of that business were arrested this morning on charges related to their alleged participation in a $5.2 million health care fraud scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney John R. Parker of the Northern District of Texas, Special Agent in Charge Mike Fields of the Department of Health and Human Services’ Office of the Inspector General’s (HHS-OIG) Dallas Regional Office, the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU), Special Agent in Charge Thomas M. Class, Sr. of the FBI’s Dallas Division and Special Agent in Charge Max Eamiguel of the U.S. Postal Service’s Office of the Inspector General’s (USPS-OIG) Southern Area Field Office made the announcement.  

Hector Molina, M.D., 51, of Irving, Texas, and Blanca Mata, 46, of Forney, Texas, were charged with one count of conspiracy to commit health care fraud.  In addition, Molina was charged with eight counts of health care fraud, and Mata was charged with four counts of health care fraud.  Both defendants made their initial appearances before U.S. Magistrate Judge Renée Harris Toliver of the Northern District of Texas earlier today and were released on bond.

According to allegations in the indictment, Molina owned and operated Molina Medical Housecall Services in Dallas, and Mata was an employee of that business.  The indictment alleges that from approximately June 2012 through January 2015, Molina and Mata conspired to defraud Medicare by billing for home visits performed by Mata, who was not a physician, as if Molina had performed the home visits.  Additionally, the indictment alleges that Molina billed for home visits performed in the Dallas area while he was out of the country. 

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

This case is being investigated by HHS-OIG, the Texas Attorney General’s MFCU, the FBI and USPS-OIG, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Northern District of Texas.  The case is being prosecuted by Trial Attorney Jason Knutson of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.

Three California men and a Minnesota company were charged in an indictment today in the Southern District of Ohio for their roles in a massive prescription drug diversion scheme. 

The indictment alleges that David Jess Miller, 50, of Santa Ana, California; Artur Stepanyan, 38, and Mihran Stepanyan, 29, both of Encino, California, and Minnesota Independent Cooperative Inc. (MIC) engaged in a conspiracy to sell prescription drugs from illegal, unlicensed sources to wholesalers and pharmacies throughout the United States.  The 12-count indictment charges the defendants with conspiracy to commit mail and wire fraud, multiple counts of mail fraud, and conspiracy to distribute prescription drugs without a license and to make false statements.    

Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division, U.S. Attorney Carter M. Stewart of the Southern District of Ohio, Director George M. Karavetsos of the U.S. Food and Drug Administration (FDA)’s Office of Criminal Investigations and Assistant Inspector in Charge Christopher White of the U.S. Postal Inspection Service (USPIS) announced the charges. 

According to the indictment, from 2007 through April 2014, David Miller and his company, MIC, of Eagan, Minnesota, purchased prescription drugs from a network of illegal and unlicensed sources in New York, Florida and California.  Artur Stepanyan and Mihran Stepanyan, worked together to sell drugs from illegal sources to Miller and MIC.  Artur and Mihran Stepanyan, using a variety of company names, including Panda Capital Group, Red Rock Capital Group, Trans Atlantic Capital Group and GC National Wholesale, were Miller’s largest source of illegal drugs.  During the course of the conspiracy, Miller and MIC paid the Stepanyans approximately $160 million for these prescription drugs. 

“American consumers should be able to rely on the prescription drug supply chain,” said Principal Deputy Assistant Attorney General Mizer.  “Prescription drug diversion schemes like the one charged in this indictment undermine that supply chain and increase the risk that counterfeit, adulterated, misbranded, sub-potent or expired drugs will be sold to patients and consumers.” 

To hide the true, illegal sources of their prescription drugs, David Miller and MIC falsified so-called drug pedigree documents.  Pedigrees are documents required by law that show the source of drugs.  For most of the conspiracy, the fraudulent pedigrees falsely listed B&Y Wholesale, a company located in Puerto Rico and co-owned by co-conspirator Yusef Yassin Gomez (Yassin) as the source of the drugs.  The pedigree documents also falsely stated that Yassin’s company was an authorized distributor of the drugs.  On Feb. 19, 2014, Yassin pleaded guilty in U.S. District Court for the Southern District of Ohio to conspiracy to engage in the wholesale distribution of prescription drugs without a wholesale license.  In connection with his guilty plea, Yassin admitted the he agreed to allow Miller and MIC to use his company’s name on pedigree documents to hide the true drug sources.  In exchange, Miller and MIC paid Yassin a commission on all of the drug sales. 

 “Once a prescription drug is diverted outside of the regulated distribution channels, it becomes difficult, if not impossible, for regulators, law enforcement and end-users to know whether the prescription drug package actually contains the correct drug or the correct dose,” said U.S. Attorney Stewart.  “We will aggressively prosecute individuals and companies that ignore the law and sell illegally diverted prescription drugs to pharmacies, and ultimately, to American consumers.

“We are committed to protecting the integrity of the pharmaceutical supply chain, especially as criminals go to more extreme measures to subvert it,” said FDA’s Office of Criminal Investigations Director Karavetsos. “We will continue to pursue these criminals and work to bring them to justice.”

“The Postal Inspection Service is proud to partner with the FDA Office of Criminal Investigations to bring to bear our mail fraud expertise to help the fight against drug diversion,” said USPIS Assistant Inspector in Charge White.

Throughout the course of the conspiracy charged in the indictment, using these fraudulent pedigree documents, Miller and MIC sold approximately $393 million worth of prescription drugs to wholesalers and retail pharmacies throughout the United States, including to multiple customers in the Southern District of Ohio. 

In addition to Yassin, two of Miller’s other illegal drug suppliers, Peter Kats and Joseph Dallal, previously pleaded guilty to conspiracy to commit mail and wire fraud for their sales of illegally-diverted prescription drugs to Miller and MIC. 

This matter is being investigated by the FDA and USPIS.  Assistant U.S. Attorneys Anne L. Porter and Christy Muncy of the Southern District of Ohio and Trial Attorney John W. Burke of the Civil Division’s Consumer Protection Branch are prosecuting this case.

David Miller, Artur Stepanyan, and Mihran Stepanyan were charged amongst 30 other individuals in the Northern District of California in a separate indictment on charges including federal Racketeer Influenced and Corrupt Organizations (RICO) Act; conspiracy to commit identity theft; conspiracy to commit access device fraud; conspiracy to commit mail, wire, and bank fraud; money laundering conspiracy; and conspiracy to distribute prescription drugs without a wholesale license.

The charges in the indictment are merely allegations, and do not constitute proof of guilt.  Every defendant is presumed to be innocent unless and until proven guilty.

The Justice Department announced today that 16 separate hospitals and their respective corporate parents have agreed to collectively pay $15.69 million to resolve False Claims Act allegations that the providers sought and received reimbursement from Medicare for services that were not medically reasonable or necessary, the U.S. Department of Justice announced today. 

“Hospitals that participate in the Medicare program must ensure that the services they provide and bill for are based on the medical needs of patients rather than the desire to maximize profits,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer of the Justice Department’s Civil Division.  “The Department of Justice is committed to ensuring that those who seek to abuse the Medicare program will be held accountable for their actions.”

This case concerns claims to Medicare for Intensive Outpatient Psychotherapy (IOP) services.  IOP services represent a continuation of ambulatory psychiatric services and provide active treatment to individuals with mental disorders using a variety of treatment methods.  Medicare will pay for an appropriate course of IOP treatment provided a number of specific requirements are met including, most notably, that the services in question are reasonable and necessary for the diagnosis and treatment of the patient’s condition.

These settlements resolve allegations that, beginning as early as 2005 and in some cases continuing into 2013, the hospitals knowingly submitted claims for IOP services that did not qualify for Medicare reimbursement because: the patient’s condition did not qualify for IOP; the patient’s treatments were not provided pursuant to an individualized treatment plan designed to help the patient address specific mental health needs and reach achievable goals; the patient’s progress was not being adequately tracked or documented; the patient received an inappropriate level of treatment; and/or the therapy provided was primarily recreational or diversional in nature, and not therapeutic.  The IOP services in question were typically performed on the providers’ behalf by Allegiance Health Management (Allegiance), a post-acute healthcare management company based in Shreveport, Louisiana, but billed to Medicare by the providers.

The providers who have reached agreements to resolve these allegations with the United States include:

• Health Management Associates Inc. (HMA), and the following 14 hospitals formerly owned and operated by HMA: Central Mississippi Medical Center in Mississippi, Crossgate River Oaks in Mississippi, Dallas Regional Medical Center in Texas, Davis Regional Medical Center in North Carolina, East Georgia Regional Medical Center in Georgia, Gilmore Regional Medical Center in Mississippi, Lake Norman Regional Medical Center in North Carolina, Lehigh Regional Medical Center in Florida, Medical Center of Southeastern Oklahoma in Oklahoma, Natchez Community Hospital in Mississippi, Northwest Mississippi Regional Medical Center in Mississippi, Santa Rosa Medical Center in Florida, Southwest Regional Medical Center in Arkansas, and Summit Medical Center in Arkansas, which agreed to collectively pay $15 million;

• Community Health Systems and its subsidiary Wesley Medical Center in Mississippi, which agreed to pay $210,000; and

• North Texas Medical Center in Texas, which agreed to pay $480,000.

In October 2013, the United States resolved similar allegations with LifePoint Hospitals Inc. and two of its subsidiaries, PHC-Minden L.P., doing business as Minden Medical Center, and PHC-Cleveland Inc., doing business as Bolivar Medical Center, which collectively paid $4,672,469.80.

“This case demonstrates that the U.S. Attorney’s Office for the Eastern District of Arkansas will aggressively pursue civil health care fraud cases, where the integrity of the Medicare system has been undermined,” said U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas.  “Medical care providers who abuse Medicare hurt all taxpayers, and today’s announcement highlights our commitment to protecting our national health care system, as well as the Arkansans who depend on it.”

“Our agency is dedicated to investigating health care fraud schemes such as this, which divert scarce taxpayer funds meant to provide for legitimate patient care, including services for the often underserved mentally ill population,” said Special Agent in Charge Mike Fields of U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG).

The allegations resolved by today’s settlements arose from a lawsuit filed under the False Claims Act.  The act allows private individuals known as “relators” to sue on behalf of the United States and to share in the proceeds of any settlement or judgment that may result.  The relator in this case will receive $2,667,300. 

These settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Eastern District of Arkansas and HHS’ Office of Audit Statistics and OIG.

These settlements illustrate 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 $24 billion through False Claims Act cases, with more than $15.3 billion of that amount recovered in cases involving fraud against federal health care programs.

The claims settled by these agreements are allegations only, and there has been no determination of liability. 

Settlement Compensates Affected Borrowers and Allows Bank to Continue Motorcycle Lending Using Revised Dealer Compensation Policies

Evergreen Bank Group of Oak Brook, Illinois, will eliminate or limit the discretion it gives to motorcycle dealers to increase interest rates as part of a settlement of a federal lawsuit alleging a pattern or practice of national origin and race discrimination in motorcycle lending, the Justice Department announced today.  In addition to the elimination of dealer discretion, which is consistent with a policy that Evergreen voluntarily adopted in March 2014, the settlement will provide $395,000 in compensation for victims of Evergreen’s past discrimination.

The settlement, which remains subject to court approval, was filed today with the department’s complaint in the U.S. District Court of the Northern District of Illinois.  The complaint alleges that Evergreen violated the Equal Credit Opportunity Act (ECOA), by charging approximately 2,200 Hispanic and African-American borrowers higher interest rates than non-Hispanic white borrowers between January 2011 and March 2014.  The complaint alleges that Evergreen’s FreedomRoad Financial motorcycle lending unit charged borrowers higher interest rates because of their national origin or race, and not because of the borrowers’ creditworthiness or other objective criteria related to borrower risk.  This discriminatory charge would result in the average victim paying about $200 to $250 extra during the term of the loan.

“The department, in cooperation with our partner agencies, continues to closely examine the motor vehicle lending market for potential discrimination,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “We thank Evergreen for recognizing the risk of discrimination caused by discretionary dealer markups, and adopting new dealer compensation policies that substantially reduce that risk.”

Rather than taking applications directly from consumers, Evergreen makes most of its motorcycle loans through roughly 400 motorcycle dealers nationwide who help their customers pay for their new or used motorcycle by submitting their loan applications to Evergreen. 

Until March 2014, Evergreen’s business practice, like many other motor vehicle lenders, allowed motorcycle dealers subjective and unguided discretion to vary a loan’s interest rate from the price Evergreen initially set.  The initial price set by Evergreen reflected the borrower’s objective credit-related factors.  Dealers received greater payments from Evergreen on loans that included a higher interest rate markup.  The department’s December 2013 lawsuit against Ally Financial Inc. and Ally Bank, which resulted in a settlement providing $80 million in borrower compensation, involved a similar compensation system.

In March 2014, Evergreen eliminated motorcycle dealers’ discretion to increase interest rates.  Instead, Evergreen adopted a policy of always compensating dealers based on a percentage of the loan principal amount that does not vary based on the loan’s interest rate.  No discrimination was observed when the United States analyzed loans made under the new policy.  The settlement allows Evergreen to continue using the revised compensation policy it adopted in March 2014.

The lawsuit originated from a March 2013 referral by the Federal Deposit Insurance Corporation (FDIC) to the Justice Department’s Civil Rights Division.  Evergreen is regulated by the FDIC.  

The Justice Department’s enforcement of fair lending laws is conducted by the Fair Lending Unit of the Housing and Civil Enforcement Section in the Civil Right Division.  Since the Fair Lending Unit was established in February 2010, it has filed or resolved 38 lending matters under the Fair Housing Act, the Equal Credit Opportunity Act, and the Servicemembers Civil Relief Act.  The settlements in these matters provide over $1.2 billion in monetary relief for impacted communities and individual borrowers.  The Attorney General’s annual reports to Congress on ECOA highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications.

The Civil Rights Division, the U.S. Attorney’s Office for the Northern District of Illinois, and the FDIC are members of the Financial Fraud Enforcement Task Force.  President Obama established this task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.  The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.  For more information on the task force, visit www.StopFraud.gov.

The settlement provides for an independent administrator to locate victims and distribute payments of compensation at no cost to borrowers whom the department identifies as victims of Evergreen’s discrimination.  The department will make a public announcement and post information on its website once more details about the compensation process become available.  Borrowers who are eligible for compensation from the settlement will be contacted by the administrator, and do not need to contact the department at this time.  Individuals who believe that they may have been victims of lending discrimination by Evergreen and have questions about the settlement may contact the department at 202-514-4713.

A copy of the complaint and proposed settlement order, as well as additional information about fair lending enforcement by the United States Department of Justice, can be obtained from the United States Department of Justice website at www.justice.gov/fairhousing.

Alleges Violation of Employment Rights of Sergeant in Army National Guard

The Department of Justice announced today it has filed a civil complaint against a South Jersey company for failing to re-employ a former employee when she returned from a National Guard deployment, a violation of federal law.

The civil lawsuit, filed in Camden federal court, alleges that Healthcare Commons Inc., of Carneys Point, New Jersey, willfully violated the Uniformed Services Employment and Re-employment Rights Act of 1994 (USERRA).  USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations and provides that they shall not be discriminated against because of their military obligations.  

Megan Toliver, 32, of New Castle, Delaware, is a former employee of Healthcare Commons.  She joined the U.S. Army National Guard in September 2004 and, most recently, had served as a sergeant, with honorable service as a mental health specialist.  According to the complaint, when Toliver returned from her military deployment in May 2014, Healthcare Commons willfully violated USERRA by not re-employing her as a mental health screener or in another comparable position. 

“No person should lose their job for serving our country, but according to our complaint that’s exactly what happened to a National Guard member here,” said Acting Associate General Stuart F. Delery. “Today’s filing is one more example of the Department of Justice’s commitment to protecting the men and women who serve in our Armed Forces from discrimination and unlawful actions.”

“The filing of this case reinforces the commitment of the Department of Justice to the vigorously enforce the prohibition of employment discrimination based on military service,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “I want to thank the Department of Labor for referring this case to the Department of Justice.  I’m hopeful that through the department’s newly created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”

“The men and women who serve in our armed forces here and abroad do so at great personal sacrifice,” said U.S. Attorney Paul Fishman of the District of New Jersey.  “Because of that sacrifice, federal law guarantees that they have the opportunity to resume their careers when they’ve completed their service.  When companies seek to skirt their obligations to re-employ our returning veterans, we will hold them accountable.”

The case was referred by U.S. Department of Labor following an investigation by the department’s Veterans’ Employment and Training Service.

The plaintiff is represented by Special Litigation Counsel Andrew Braniff of the Civil Rights Division and Assistant U.S. Attorney Michael E. Campion of the District of New Jersey.

In March 2015, the Attorney General created the Servicemembers and Veterans Initiative, which is led by three dedicated career Justice Department attorneys with strong ties to the military community.  They will further the department’s existing efforts by coordinating and expanding enforcement, outreach, and training efforts on behalf of service members, veterans and their families.  The initiative will address the unique challenges that service members face while on active duty, that veterans face upon returning home, and that families face when a loved one is deployed.

Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, the U.S. Attorney’s Office website at www.justice.gov/usao-nj and the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

Company Must Pay $232.7 Million Penalty

The U.S. District Court of the District of Columbia entered a formal judgment yesterday memorializing the sentence requiring Schlumberger Oilfield Holdings Ltd. (SOHL), a wholly-owned subsidiary of Schlumberger Ltd, to pay a $232,708,356 penalty to the United States for conspiring to violate the International Emergency Economic Powers Act (IEEPA) by willfully facilitating illegal transactions and engaging in trade with Iran and Sudan.

The judgment was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Vincent H. Cohen Jr. of the District of Columbia and Under Secretary Eric L. Hirschhorn of the U.S. Commerce Department’s Bureau of Industry and Security (BIS). 

At a hearing on April 30, 2015, the District Judge John D. Bates of the District of Columbia accepted the company’s guilty plea and sentenced the company to the proposed sentence articulated in the plea agreement, which called for the fine and other terms of corporate probation.  The court recognized the seriousness of SOHL’s criminal conduct, which posed a threat to our national security.  In addition, the court noted that the scope of criminal conduct justified the large monetary penalty imposed.  Finally, the court concluded that the terms of probation provided adequate deterrence to SOHL as well as other companies.  Yesterday, the court entered the written judgment confirming the sentence imposed on April 30, 2015.

“The court’s judgment represents a milestone in the enforcement of U.S. sanctions laws,” said Assistant Attorney General Carlin.  “This case marks the first conviction of a corporate entity for facilitating violations of the International Economic Emergency Powers Act and the highest criminal fine ever imposed in a sanctions prosecution.  The Court’s imposition of this serious sentence should serve as a strong deterrent for multinational corporations doing any business in countries subject to U.S. economic sanctions.”

“This guilty plea and sentence hold this company accountable for violating trade laws by doing business with sanctioned countries and undermining the interests of the United States,” said Acting U.S. Attorney Cohen. “We hope that other companies tempted to break our export laws take note of the $232.7 million penalty that will be paid in this case.”

The criminal information and plea agreement were filed on March 25, 2015, in federal court in the District of Columbia, charging SOHL with one count of knowingly and willfully conspiring to violate IEEPA.  The plea agreement that the court approved also requires SOHL to submit to a three-year period of corporate probation and agree to continue to cooperate with the government and not commit any additional felony violations of U.S. federal law.  SOHL’s monetary penalty includes a $77,569,452 criminal forfeiture and an additional $155,138,904 criminal fine.  The criminal fine represents the largest criminal fine in connection with an IEEPA prosecution.  In addition to SOHL’s commitments, under the plea agreement SOHL’s parent company, Schlumberger Ltd., has also agreed to the following terms during the three-year term of probation, among others: maintaining its cessation of all operations in Iran and Sudan, reporting on the parent company’s compliance with sanctions, responding to requests to disclose information and materials related to the parent company’s compliance with U.S. sanctions laws when requested by U.S. authorities, and hiring an independent consultant to review the parent company’s internal sanctions policies and procedures and the parent company’s internal audits focused on sanctions compliance. 

The court agreed that in addition to SOHL continuing its cooperation with U.S. authorities throughout the three-year period of probation and agreeing not to engage in any felony violation of U.S. federal law, SOHL’s parent company, Schlumberger Ltd., will also hire an independent consultant who will review the parent company’s internal sanctions policies, procedures and company-generated sanctions audit reports.

According to court documents, starting on or about early 2004 and continuing through June 2010, Drilling & Measurements (D&M), a United States-based Schlumberger business segment, provided oilfield services to Schlumberger customers in Iran and Sudan through non-U.S. subsidiaries of SOHL.  Although SOHL, as a subsidiary of Schlumberger Ltd., had policies and procedures designed to ensure that D&M did not violate U.S. sanctions, SOHL failed to train its employees adequately to ensure that all U.S. persons, including non-U.S. citizens who resided in the United States while employed at D&M, complied with Schlumberger Ltd.’s sanctions policies and compliance procedures.  As a result of D&M’s lack of adherence to U.S. sanctions combined with SOHL’s failure to train properly U.S. persons and to enforce fully its policies and procedures, D&M, through the acts of employees residing in the United States, violated U.S. sanctions against Iran and Sudan by: (1) approving and disguising the company’s capital expenditure requests from Iran and Sudan for the manufacture of new oilfield drilling tools and for the spending of money for certain company purchases; (2) making and implementing business decisions specifically concerning Iran and Sudan; and (3) providing certain technical services and expertise in order to troubleshoot mechanical failures and to sustain expensive drilling tools and related equipment in Iran and Sudan. 

The investigation that commenced in 2009 was led by the Justice Department’s National Security Division, the U.S. Attorney’s Office of the District of Columbia and the U.S. Department of Commerce BIS’ Dallas Field Office.  Assistant Attorney General Carlin is grateful to Special Agent Troy Shaffer from BIS’ Dallas Field Office for his excellent work.  Assistant Attorney General Carlin also acknowledged the work of those who handled the case from the National Security Division and the U.S. Attorney’s Office, including former Trial Attorney Ryan Fayhee and former Assistant U.S. Attorneys John Borchert and Ann H. Petalas.

The case was prosecuted by Trial Attorney Casey Arrowood of the National Security Division, Assistant U.S. Attorney Maia L. Miller of the National Security Section and Assistant U.S. Attorney Zia Faruqui of the District of Columbia.

WASHINGTON – El Departamento de Justicia anunció hoy que Evergreen Bank Group de Oak Brook, Illinois eliminará o limitará la libertad de discreción que les da a los vendedores de motocicletas de incrementar las tasas de interés como parte de un acuerdo conciliatorio de una demanda federal que alega un patrón o una práctica de discriminación por origen nacional y raza en préstamos para motocicletas. Además de la eliminación de la libertad de discreción, lo que coincide con una política que Evergreen adoptó voluntariamente en marzo de 2014, el acuerdo conciliatorio ofrecerá 395,000 dólares en compensación a víctimas de actos de discriminación pasados de Evergreen.

El acuerdo conciliatorio, que sigue estando sujeto a la aprobación del tribunal, fue presentado hoy con la denuncia del departamento en el Tribunal Federal de Distrito del Distrito Norte de Illinois. La denuncia alega que Evergreen violó la Ley de Igualdad de Oportunidades de Crédito [Equal Credit Opportunity Act (ECOA)] al cobrar a alrededor de 2,200 prestatarios hispanos y afroestadounidenses mayores tasas de interés que a prestatarios blancos no hispanos entre enero de 2011 y marzo de 2014. La denuncia alega que la unidad de préstamos para motocicletas FreedomRoad Financial de Evergreen les cobró a los prestatarios mayores tasas de interés debido a su origen nacional o raza y no debido a su solvencia u otros criterios objetivos relacionados con el riesgo crediticio. Este cargo discriminatorio hacía que la víctima promedio pagara de 200 a 250 dólares adicionales aproximadamente durante el término del préstamo.

“El departamento, en cooperación con nuestras dependencias asociadas, sigue examinando detenidamente el mercado de préstamos para vehículos motorizados en busca de actos de discriminación potencial”, dijo la Secretaria de Justicia Auxiliar Adjunta Principal Vanita Gupta de la División de Derechos Civiles. “Agradecemos a Evergreen por reconocer el riesgo de discriminación provocado por sobreprecios discrecionales de los vendedores y por adoptar nuevas políticas de compensación a vendedores que reducen significativamente ese riesgo”.

En vez de recibir las solicitudes directamente de los clientes, Evergreen realiza la mayor parte de sus préstamos para motocicletas a través de aproximadamente 400 vendedores de motocicletas en todo el país que ayudan a sus clientes a pagar su motocicleta nueva o usada presentando sus solicitudes de préstamo a Evergreen.

Hasta marzo de 2014, la práctica comercial de Evergreen, como la de muchos prestamistas para vehículos motorizados, permitía que los vendedores de motocicletas variaran según su propia discreción subjetiva y sin orientación la tasa de interés de un préstamo respecto del precio determinado inicialmente por Evergreen. Los vendedores recibían mayores pagos de Evergreen por préstamos que incluían un mayor margen de ganancias por tasa de interés. La demanda de diciembre de 2013 del departamento contra Ally Financial Inc. y Ally Bank, que generó un acuerdo conciliatorio que establecía una compensación de 80 millones de dólares para los prestatarios, implicó un sistema de compensaciones parecido.

En marzo de 2014, Evergreen eliminó la libertad de discreción de los vendedores de motocicletas para incrementar las tasas de interés. En su lugar, Evergreen adoptó una política por la cual siempre se compensa a los vendedores con base en un porcentaje de la suma principal del préstamo que no varía según la tasa de interés del préstamo. No se observó discriminación cuando los Estados Unidos analizaron préstamos otorgados bajo la nueva política. El acuerdo conciliatorio permite que Evergreen siga utilizando la política revisada de compensación que adoptó en marzo de 2014.

La demanda se originó en una remisión de marzo de 2013 a la División de Derechos Civiles del Departamento de Justicia por parte de la Federal Deposit Insurance Corporation (FDIC). Evergreen está regulada por la FDIC.

La coacción asociada a las leyes de otorgamiento justo de préstamos por parte del Departamento de Justicia es llevada a cabo por la Unidad de Préstamos Justos de la Sección de Vivienda y Cumplimiento de la Ley Civil de la División de Derechos Civiles. Desde que se estableció la Unidad de Préstamos Justos en febrero de 2010, ésta entabló o resolvió 38 casos de préstamos bajo la Ley de Vivienda Justa (FHA), la ECOA y la Ley de Alivio Civil para los Miembros de las Fuerzas Armadas [Servicemembers Civil Relief Act]. Los acuerdos conciliatorios en estos casos proveen más de 1,200 millones de dólares en asistencia monetaria para comunidades impactadas y prestatarios individuales. Los informes anuales del Secretario de Justicia de EE.UU. al Congreso sobre la ECOA destacan los logros del Departamento en el otorgamiento de préstamos justos y están disponibles en www.justice.gov/crt/publications/.

La División de Derechos Civiles, la Fiscalía Federal para el Distrito Norte de Illinois y la FDIC son miembros de la Fuerza de Tarea de Coacción contra el Fraude Financiero. El Presidente Obama fundó esta fuerza de tarea para generar una iniciativa enérgica, coordinada y proactiva para investigar y enjuiciar los delitos financieros. La fuerza de tarea incluye a representantes de una amplia gama de agencias federales, autoridades regulatorias, inspectores generales y fuerzas del orden público estatales y locales quienes, trabajando juntos, implementan un conjunto poderoso de recursos de coacción penal y civil.  La fuerza de tarea está trabajando para mejorar las iniciativas en todo el poder ejecutivo federal y, junto con asociados estatales y locales, investigar y enjuiciar delitos financieros importantes, garantizar un castigo justo y eficaz para quienes cometen delitos financieros, combatir la discriminación en los mercados financieros y de préstamos, y recuperar ganancias para las víctimas de delitos financieros. Para obtener más información sobre la fuerza de tarea, visitar www.StopFraud.gov.

El acuerdo conciliatorio estipula la existencia de un administrador independiente que ubique a las víctimas y distribuya los pagos sin costo para los prestatarios identificados por el departamento como víctimas de actos de discriminación de Evergreen. El departamento hará un anuncio público y publicará información en su portal de Internet cuando existan más detalles sobre el proceso de compensación. El administrador del acuerdo se comunicará con los prestatarios que sean elegibles para recibir compensación del acuerdo conciliatorio y no necesitan comunicarse con el departamento en este momento. Las personas que crean haber sido víctimas de actos de discriminación en préstamos por parte de Evergreen y tengan preguntas sobre el acuerdo conciliatorio pueden comunicarse con el departamento llamando al 202-514-4713.

Para obtener una copia de la demanda y de la orden de acuerdo conciliatorio propuesto, así como también información adicional sobre la labor del Departamento de Justicia de los Estados Unidos para hacer valer las leyes de otorgamiento justo de préstamos, visite el portal del Departamento de Justicia de los Estados Unidos en www.justice.gov/fairhousing. 

Two Detroit residents were sentenced after pleading guilty to charges of wire fraud and aiding and abetting in the use of false identification, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan and Special Agent in Charge Jarod Koopman of Internal Revenue Service-Criminal Investigation (IRS-CI) announced today.

McAllen Knight and Renita Adams were each sentenced to serve 18 months in prison by U.S. District Court Judge Avern Cohn of the Eastern District of Michigan.  Knight’s mother, sister and stepfather also pleaded guilty to wire fraud and aiding and abetting in the use of false identification.  Brenda Knight, Knight’s mother, and Adreann Turnage, Knight’s sister, were sentenced on April 14 to serve 24 and 18 months in prison, respectively.  Willie Watkins, Knight’s stepfather, was sentenced on April 29, 2014, to serve 30 months in prison.  All five defendants were ordered to pay $410,949 in restitution.   

According to court records, Adams and McAllen Knight participated in a scheme with Watkins, Brenda Knight and Adreann Turnage to defraud the United States by using the names and social security numbers of recently deceased individuals to prepare fraudulent tax returns.  They filed hundreds of fraudulent 2010 tax returns.  The returns sought refunds by making false claims for the Earned Income Credit, Education Credits and the Making Work Pay Credit.  The returns were transmitted electronically, utilizing public access Internet connections from local hotels and coffee shops.  An Internet account registered to Adams was used to transmit 306 fraudulent returns.  The refunds were directed to bank accounts that were established for the sole purpose of receiving the fraudulent refunds.  McAllen Knight caused some of these bank accounts to be opened by others to receive the deposits of the false tax refunds.  Adams helped distribute the proceeds of the fraudulently obtained tax refunds at the direction of her fellow participants and retained a portion of the proceeds for her own benefit.

The investigation of this case was conducted by special agents of IRS-CI and prosecuted by Assistant U.S. Attorney Ross I. MacKenzie of the Eastern District of Michigan and Trial Attorney Kenneth Vert of the Tax Division.

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

A federal grand jury has brought an additional charge against Christopher Lee Cornell, 21, of Green Township, Ohio.  In a superseding indictment returned in Cincinnati, he is now also charged with attempting to provide material support to a designated foreign terrorist organization.

The charge is in addition to the original Jan. 21, 2015, indictment that charged Cornell with attempting to kill officers and employees of the United States, solicitation to commit a crime of violence and possession of a firearm in furtherance of a crime of violence.  Cornell was charged for his alleged participation in a plot to attack the U.S. Capitol Building and kill government officials.

The superseding indictment, which was returned today, was announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Carter M. Stewart of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Division.

The four-count superseding indictment alleges that on or about August 2014 through January 2015, Cornell allegedly plotted, planned and attempted to attack the U.S. Capitol.

The defendant is also alleged to have attempted to provide material support and resources to a foreign terrorist organization, specifically the Islamic State of Iraq and the Levant (ISIL), knowing that the organization was a designated foreign terrorist organization and that the organization had engaged in and was continuing to engage in terrorist activity.  Material support and resources consisted of personnel in the form of the defendant himself by plotting and attempting to execute an attack on the U.S. Capitol.

Cornell allegedly attempted to kill officers and employees of the United States during their official duties, specifically by attempting to attack the U.S. Capitol Building.  During that same time, the defendant allegedly attempted to persuade others to kill officers and employees of the United States.  Cornell also allegedly possessed two semi-automatic rifles and approximately 600 rounds of ammunition.

Providing material support to a designated foreign terrorist organization carries a potential maximum sentence of 15 years in prison.  Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison.  Solicitation to commit an attempted murder is a crime punishable by 20 years in prison.  Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years in prison.

Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF).  The JTTF is made up of officers and agents from the Cincinnati Police Department; Colerain, Ohio, Police Department; Dayton, Ohio, Police Department; Ohio State Highway Patrol; U.S. Immigrations and Customs Enforcement; U.S. Secret Service; and West Chester, Ohio, Police Department.

Assistant Attorney General Carlin and U.S. Attorney Stewart commended the investigation of this case by the JTTF.  The case is being prosecuted by Trial Attorney Michael Dittoe of the Justice Department’s National Security Division and Assistant U.S. Attorney Tim Mangan of the Southern District of Ohio.

An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

Cornell Superseding Indictment

An Arizona shopping center developer was arrested today on fraud and bankruptcy charges in connection with a scheme to allegedly conceal his control of approximately $17 million in assets.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John S. Leonardo of the District of Arizona and Inspector in Charge Gary Barksdale of the Criminal Investigations Group of the U.S. Postal Inspection Service made the announcement.

Alex Papakyriakou, aka, Alex Papas, 57, of Phoenix, Arizona, was charged in an indictment in the District of Arizona with eight counts of bank fraud, one count of conspiracy to commit bankruptcy-related offenses, four counts of concealing assets in bankruptcy, one count of making a false oath in bankruptcy and three counts of falsification of records in bankruptcy.

According to allegations in the indictment, Papas and a now deceased business partner organized over 200 limited liability companies from 1997 to 2008 to develop shopping centers and other real estate projects in Arizona and elsewhere, funded by approximately $150 million from investors and $250 million in bank loans.  When the companies encountered financial difficulties in 2007 and 2008, Papas allegedly created Cobea Associates, LLC (Cobea), a company nominally owned by his sister in South Africa, but actually operated and controlled by him to shield his valuable family assets from investors and other creditors.  Papas then allegedly transferred title of his assets to Cobea, including a luxurious home in Paradise Valley, Arizona, a vacation beach house and a condominium in Laguna Beach, California, and a business entity in Scottsdale, Arizona, which bought and sold expensive vintage collector automobiles.

From June 2008 through approximately June 2013, Papas allegedly deceived various banks regarding the transfer of the assets and his financial condition to both obtain new loans and extend existing loans secured by his assets.  Additionally, in 2011, Papas filed for bankruptcy, claiming that he had less than $1 million in assets and over $144 million in liabilities, while allegedly concealing and denying his control of the millions of dollars in assets he transferred to Cobea.

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

The case is being investigated by the Criminal Investigations Group of the U.S. Postal Inspection Service.  The case is being prosecuted by Senior Litigation Counsel Jack Patrick and Trial Attorney Sarah Hall of the Criminal Division’s Fraud Section, with the assistance of Assistant U.S. Attorney Raymond Woo of the District of Arizona.

The Justice Department’s Office of Justice for Victims of Overseas Terrorism (OVT) today celebrates its 10-year anniversary of providing specialized assistance to U.S. citizen victims and their families when they are injured or killed in terrorist attacks abroad, announced Assistant Attorney General for National Security John P. Carlin. 

OVT was founded on May 6, 2005, by then-Attorney General Alberto Gonzales.  It is now part of the Justice Department’s National Security Division, which was created in 2006.  OVT’s primary responsibility to Americans who are victims of overseas terrorism is to work to ensure that investigation and prosecution remain a high priority.  OVT also updates victims and their families on the progress of any criminal investigation and prosecution, and ensures that the rights of victims and their families are treated with honor and respect by criminal justice systems around the world.  The office has worked to provide support to U.S. victims of terrorist attacks in many nations, including Afghanistan, Colombia, Germany, Israel, Iraq, Indonesia, India, Kenya, Pakistan and the Philippines, among others.   

“The Office of Justice for Victims of Overseas Terrorism serves as an advocate for our citizens impacted by terrorism as they navigate foreign criminal justice systems in pursuit of accountability,” said Assistant Attorney General Carlin.  “I applaud the work they have done over the last decade to aid hundreds of victims and their families, and look forward to continuing to support their office as they provide such critical resources to American victims of terrorism overseas and their families.”

“OVT is truly a groundbreaking office in the Department of Justice,” said Director Heather Cartwright of OVT.  “Victims themselves identified the need and called for the creation of an office devoted to advocating for justice for U.S. citizens who suffer terrorist attacks in foreign countries.   Ten years after its creation, OVT has developed an advocacy program to support these victims, and looks forward to providing even more comprehensive support and services in the future.”

For more information on the important work done by OVT every day, please visit their website.  If you are a U.S. citizen victim of international terrorism or a victim’s family member and you seek information on foreign criminal justice proceedings, OVT can assist you.  Please contact OVT at nsd.ovt@usdoj.gov.

Justice Department spokesperson Dena Iverson released the following statement Wednesday following the request from Baltimore Mayor Stephanie Rawlings-Blake for a pattern or practice investigation into the Baltimore Police Department.

“The Attorney General has received Mayor Rawlings-Blake’s request for a Civil Rights Division 'pattern or practice' investigation into the Baltimore Police Department.  The Attorney General is actively considering that option in light of what she heard from law enforcement, city officials, and community, faith and youth leaders in Baltimore yesterday.”

A federal grand jury indicted an Illinois couple on charges of kidnapping and transportation with intent to engage in criminal sexual activity with a minor, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney James A. Lewis of the Central District of Illinois and Special Agent in Charge Sean Cox of the FBI’s Springfield Division. 

“Parents with adopted children who are struggling are all too frequently targets for those willing to say and do whatever it takes to gain access to those vulnerable children,” said Assistant Attorney General Caldwell.  “The Criminal Division is committed to bringing to justice anyone who seeks to exploit children and risk their safety.  Every child in America deserves a safe home.”

“Protecting children is a community responsibility,” said U.S. Attorney Lewis.  “Law enforcement relies on the assistance of proactive neighbors, school officials and parents to protect our kids.”

“The FBI is dedicated to the protection of children,” said Special Agent in Charge Cox.  “We will continue to use our resources to pursue those who would exploit them for their own benefit.”

Nicole Eason, 37, and Calvin Eason, 46, formerly of Danville and Westville, Illinois, were charged in an indictment unsealed today with two counts of kidnapping of a minor and one count of transportation of a minor.  They were previously charged by a criminal complaint and arrested on April 3, 2015, in Tucson, Arizona.  The couple has remained in custody since their arrest. 

According to allegations in the criminal complaint, Nicole and Calvin Eason participated in an online adoption discussion board in 2006 and 2007, and sought to adopt a child through a process sometimes referred to as private “re-homing.”  This practice is often associated with “disrupted” or failed adoptions, when an adoptive family places their child in another home because the adoptive family can no longer care for the child.

According to the complaint, the Easons communicated with a minor’s parents and allegedly misrepresented material facts about their background to gain the parents’ trust.  The Easons also allegedly lied about having a home study “waiver,” which the parents believed was needed to transfer custody of their child.  Based on the Easons’ false misrepresentations, the parents transported their child across state lines in 2007.  Both Nicole and Calvin Eason allegedly sexually abused the child while he/she was in their custody. 

The indictment further alleges that Nicole and Calvin Eason kidnapped a second minor in the same manner in 2008.  The Easons allegedly transported the second minor across state lines.

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

This case is being investigated by FBI’s Springfield Division.  The case is being prosecuted by Trial Attorney Jennifer Toritto Leonardo of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Elly Peirson of the Central District of Illinois.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

A Houston doctor and a group home owner were arrested on charges related to their alleged participation in a $5.2 million Medicare fraud scheme involving false claims for mental health treatment.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge Lucy R. Cruz of the Internal Revenue Service-Criminal Investigation’s (IRS-CI) Houston Field Office, the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) and Special Agent in Charge Mike Fields of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Field Office made the announcement.

Walid H. Hamoudi, M.D., 63, of Houston, and Geraldine J. Caroline, 49, of Houston, were each charged with one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks and five counts of paying and receiving kickbacks.  The indictment also charges Hamoudi with one count of money laundering.  Both defendants are expected to make their initial appearances in federal court in Houston today. 

According to the indictment, Hamoudi and Caroline allegedly participated in a scheme to defraud Medicare beginning in 2010 and continuing until June 2011.  The defendants allegedly caused the submission of false and fraudulent claims for partial hospitalization program (PHP) services—a form of intensive outpatient treatment for severe mental illness—to Medicare through a Houston hospital.  Hamoudi allegedly paid Caroline kickbacks to send her group home residents to the hospital to receive PHP services even though the patients did not qualify for or receive the services.

The indictment alleges that the defendants and their co-conspirators submitted or caused to be submitted approximately $5.2 million in claims to Medicare and over $380,000 in claims to Medicaid for PHP services purportedly provided by the hospital, when, in fact, the PHP services were medically unnecessary or never provided. 

In February 2012, Mohammad Khan, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty to one count of conspiracy to commit health care fraud, one count of conspiracy to pay illegal kickbacks and five counts of paying illegal kickbacks for his role in the scheme.  Khan is scheduled to be sentenced on May 21, 2015.

In October 2014, Earnest Gibson III, the president of the hospital, along with his son Earnest Gibson IV, Regina Askew and Robert Crane, were convicted for their roles in the scheme.  William Bullock III, Robert Ferguson, Waddie McDuffie, Sharonda Holmes and Leslie Clark have pleaded guilty for their roles in the scheme.  These defendants have not yet been sentenced.

The charges contained in an indictment are merely accusations, and a defendant is presumed innocent unless and until proven guilty.

This case was investigated by the FBI, IRS-CI, HHS-OIG and the MFCU, and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas.  The case is being prosecuted by Trial Attorney Ashlee C. McFarlane of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,100 defendants who have collectively billed the Medicare program for more than $6.5 billion.  In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.

Misled More Than 50 Individual Investors Who Bought Bonds

A former Queenstown, Maryland, resident pleaded guilty today to securities fraud and filing a false tax return. 

The guilty plea was announced by U.S. Attorney Rod J. Rosenstein of the District of Maryland, Special Agent in Charge Thomas J. Kelly of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington, D.C., Field Office and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Division.

In 1999, Wilfred T. Azar III, 53, became the president and majority owner of Empire Corporation and exercised complete control over the operations of Empire.  Empire Corporation owned Empire Towers Corporation.  Empire Towers Corporation’s primary asset was Empire Towers, a 10-story office building in Glen Burnie, Maryland. 

According to Azar’s plea agreement, by January 2006, Empire Corporation could no longer pay its expenses and was effectively insolvent.  By 2007, Empire Towers Corporation had exhausted its lines of credit from lending institutions. 

From January 2006 to April 2010, Azar caused Empire Corporation to sell bonds to more than 50 individual investors for more than $7 million.  While many of the bonds were titled “registered,” the bonds were not registered with either the U.S. Securities and Exchange Commission (SEC) or the state of Maryland.  In addition, Azar falsely told investors that Empire Corporation was in good financial health and that the company generated enough revenue to pay the promised 10 percent annual rate of return.  Azar falsely represented that the money invested would be used for a specific renovation project or other capital improvement at the Empire Towers office building.  Azar failed to inform investors that he used most of the money raised from previous bond sales for his own personal purposes.  Although the bonds were issued by Empire Corporation, Azar diverted millions of dollars of proceeds from the bond sales to his own bank account and to the bank accounts of other companies that he controlled.

During the period of the fraud, Azar misappropriated approximately $7,219,362 in investor proceeds raised through the sale of bonds.  Azar used the bond proceeds: to purchase a $100,000 Aston Martin luxury automobile; to pay the $3,000 monthly mortgage on his primary residence; to pay $51,000 to an Azar trust; to purchase Baltimore Ravens season tickets for $17,298; and to pay $25,389 in country club dues.  In addition, Azar charged more than $420,000 to a credit card paid by Empire Management Services, including daily living expenses, lavish vacations and university tuition for one of his children.  Azar also diverted more than $1.07 million in Empire funds to other unrelated businesses he controlled under the guise of “loans” which were never repaid.

During 2009, Azar embezzled approximately $1,959,250 in Empire funds, which he failed to report as income on his tax return.  This resulted in a tax loss to the government of $469,936.

Azar faces a statutory maximum sentence of 20 years in prison for securities fraud, and a maximum of three years in prison for filing a false tax return.  U.S. District Judge William D. Quarles Jr. has scheduled sentencing for Aug. 12 at 10:00 a.m.

The SEC has also filed a complaint against Azar and another individual in connection with the scheme, and that case is pending.

Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations.  Since the inception of FFETF in November 2009, the department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants, including nearly 3,500 mortgage fraud defendants.  For more information on the task force, visit www.stopfraud.gov.  

U.S. Attorney Rosenstein praised the IRS-CI, FBI and SEC for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Gregory Bockin of the District of Maryland and Trial Attorney Kenneth Vert of the Justice Department’s Tax Division, who are prosecuting the case.

The Justice Department announced today that it has agreed to enter into a consent decree with the city of Caribou, Maine, that, if approved by the U.S. District Court for the District of Maine, will resolve allegations that Caribou discriminated against a female employee based upon her sex, in violation of Title VII of the Civil Rights Act of 1964.

The department’s complaint alleges that Caribou discriminated against a female city employee when she was regularly subjected to sexual harassment in the workplace by the city’s former Fire Chief, Roy Woods.  According to the complaint, the sexual harassment of the victim included both unwanted touching and comments, culminating in Mr. Woods sexually assaulting the victim.  At the time of the assault, the victim was 18 years old and worked for Caribou under Mr. Woods’ supervision.  Mr. Woods was 66.

According to the department’s complaint, Caribou did not take reasonable steps to prevent Woods’ unlawful acts.  For instance, supervisory employees with Caribou knew that Woods had a history of sexually harassing women in the workplace but Caribou never took any action to stop his harassment.  Caribou did not take any corrective action at all until Dec. 27, 2011, after Woods had assaulted the victim.  The victim was never provided with Caribou’s sexual harassment policy and was unaware of the process for reporting Woods’ illegal conduct before it escalated to an assault.  The department’s complaint was based on a charge of discrimination filed by the victim with the Equal Employment Opportunity Commission (EEOC) and the Maine Human Rights Commission that was forwarded to the department by the EEOC’s Boston Office.

Under the terms of the consent decree, once approved by the district court, Caribou is required to review and revise its sexual harassment policies in order to protect its employees from sexual harassment in the workplace.  Caribou must provide training to its employees on its newly revised policies for the prevention of sexual harassment.  The consent decree also requires Caribou to pay the victim a monetary award of $85,000.

“All Americans are entitled to a workplace that is free of unlawful harassment based upon sex,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “The early resolution of this case, without contested litigation, was in the best interests of all parties concerned.”

The United States is represented in this case by Civil Rights Division attorney Allan Townsend.

The enforcement of Title VII is a priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its web sites at http://www.justice.gov/crt/ and http://www.justice.gov/crt/emp/.

Attorney General Loretta E. Lynch traveled to Baltimore, Maryland, today for meetings with Mayor Stephanie Rawlings-Blake, Commissioner Anthony Batts and line officers for the Baltimore Police Department, members of Congress, faith, youth and community leaders and the family of Freddie Gray.  This was Attorney General Lynch's first trip since being sworn in. She was joined on the trip by staff including Acting Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, Director Ronald Davis of the Office of Community Oriented Policing Services and Director Grande Lum of the Community Relations Service.

During the Attorney General's meeting with faith leaders and members of the Maryland congressional delegation, she emphasized that she came to Baltimore to listen to concerns expressed by all groups and reinforced her commitment to have the Justice Department remain in Baltimore after the cameras leave in order to help the city rebuild and move forward.  The Attorney General noted that watching people come together following the unrest last Monday has been personally inspiring.

The Attorney General then met with Baltimore Police Commissioner Batts and line police officers.  In her meeting with rank and file officers, the Attorney General thanked them for their work telling them: “You have picked a noble profession, you have picked a hard profession, but you have picked one of the best professions out there today, because you have picked the one that lets you go out there every day and say I’m going to help somebody.”  She also discussed the spotlight on Baltimore saying, "We don't always choose moments, sometimes they choose us."

During the Attorney General's meeting with Baltimore United Leaders, she heard from youth leaders who have focused on police reform issues.  The Attorney General and her staff heard about the efforts by the young people as well as their concerns.  The Attorney General assured youth leaders and community leaders that the independent civil rights investigation was ongoing and would be done as expeditiously as possible.

Following her meetings, the Attorney General spoke to pool reporters and shared that her meetings with city leaders, community leaders and police were positive.  The Attorney General said she took away a sense that everyone - community leaders, city officials and police officers - cares about the city and is working hard to overcome the loss of trust between the police and community.

“What I heard was both instructive and constructive,” said Attorney General Lynch

The Attorney General noted that the department has been engaged in a Collaborative Reform Initiative with Baltimore Police Department since October and that the Community Relations Service was on the ground meeting with community leaders.  She emphasized that the aim of her trip was to hear firsthand ideas for how the Justice Department could assist the city in addition to the work already being done.  Asked specifically to respond to city leaders asking for a “pattern or practice” investigation, she said she would consider the request.

     ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that MICHEL JUNIOR CASTRO, age 36, of Tamuning, was sentenced on April 29, 2015, before Senior Judge Alex R. Munson, in the District Court of Guam, to 174 months imprisonment and to three years supervised release.

     Between October 1, 2013 and November 12, 2013, CASTRO agreed with others to distribute methamphetamine hydrochloride.  Defendant CASTRO picked up a package at a Post Box which law enforcement discovered contained suspected methamphetamine.  A forensic chemist later determined the substance was 98% d-methamphetamine hydrochloride and weighed 1331.4 grams.  Defendant CASTRO informed law enforcement that he was supposed to receive $5,000.00 in exchange for picking up the box.  Law enforcement also discovered a black, “Hi-Point” Model C9 9mm Luger Handgun firearm with an obliterated serial number, which was found during a search of his residence.

     U.S. Attorney Alicia A.G. Limtiaco stated, “Our community is not immune from the poison of methamphetamine.  This case illustrates the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam.”

     This case was investigated by U.S. Postal Inspectors and Drug Enforcement Administration special agents.  Credit is also given to the Bureau of Alcohol, Tobacco, Firearms and Explosives for their assistance.  The case was prosecuted by Assistant U.S. Attorney Stephen F. Leon Guerrero.

The Justice Department’s Civil Rights Division announced today that a settlement has been reached with the Bullhead City Fire District (BCFD) in Arizona, resolving claims that BCFD violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA), by discriminating against U.S. Army Reserves Member Brett Guinan  and by failing to reemploy him following his military deployment.  USERRA protects the rights of uniformed service members to retain their civilian employment following absences due to military service obligations, and provides that service members shall not be discriminated against because of their military obligations.              

According to the complaint, filed yesterday in the United States District Court of the District of Arizona, BCFD discriminated against Guinan by terminating his employment on the basis of his military service.  The complaint alleges that, between 2008 and 2013, Guinan was deployed three times in the Army Reserves.  During his second military deployment, Guinan’s supervisor began making negative statements about Guinan’s military service obligations.  In June 2013, while Guinan was serving his third deployment, BCFD eliminated Guinan’s Fire Inspector position and terminated his employment, claiming to have undergone a “reduction in workforce.”  Guinan’s Fire Inspector position, however, was the only job position eliminated in 2013.  After Guinan’s position was eliminated, BCFD also continued to pay other people to perform Guinan’s Fire Inspector duties and continued to post new job openings on its website.  The complaint further alleges that after Guinan returned from his third deployment, he notified BCFD that he was seeking reemployment.  Despite Guinan’s efforts to be reemployed, BCFD refused to reemploy him as required by USERRA.

Under the terms of the settlement agreement, filed along with the complaint, BCFD has agreed to pay $75,000 as back pay and front pay damages to Guinan.  BCFD also has agreed to adopt a new personnel policy that informs employees of their rights and obligations under USERRA and to provide USERRA training to all supervisory staff in its five fire stations.

“This settlement will provide much needed relief to U.S. Army Reserve Member Brett Guinan, who lost his job simply for serving our country,” said Acting Associate Attorney General Stuart F. Delery.  “I want to thank the Department of Labor for referring this case to the Department of Justice. I’m hopeful that through the department’s newly created Servicemembers and Veterans Initiative, we will continue to build on our strong ties with federal partners and continue using every tool at our disposal to protect the rights of the men and women who serve in our Armed Forces.”

“The men and women who wear our nation’s uniform need to know that they will be protected from the types of injustice experienced by Mr. Guinan,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “The Department of Justice, through its enforcement of USERRA, strongly supports the right of service members to retain their rightful positions in the workforce both while they serve and after they complete their military service to our country.”

This case stems from a referral by the U.S. Department of Labor (DOL), pursuant to an investigation by the DOL’s Veterans’ Employment and Training Service.  The case is being handled by the Employment Litigation Section of the Department of Justice’s Civil Rights Division, which works collaboratively with the DOL to protect the jobs and benefits of Army Reserves service members upon their return to civilian life.

The Justice Department’s Civil Rights Division has given a high priority to the enforcement of service members’ rights under USERRA.  Additional information about USERRA can be found on the Justice Department’s websites at www.usdoj.gov/crt/emp and www.servicemembers.gov, as well as on the Labor Department’s website at www.dol.gov/vets/programs/userra/main.htm.

The United States filed a civil injunction suit seeking to bar a Tampa, Florida, man from owning, operating or franchising a tax return preparation business and from preparing tax returns for others, the Justice Department announced today.  The complaint also requests that the court order the defendant to disgorge the fees that he obtained through alleged fraudulent tax return preparation.

The suit, which was filed in the U.S. District Court for the Middle District of Florida, alleges that Milot Odne owns and operates Rapid Tax 1, a tax return preparation business in the Tampa area.  According to the complaint, Odne was previously a franchisee of LBS Tax Services. 

The suit alleges that Odne targets primarily low-income customers with deceptive and misleading advertisements, prepares and files fraudulent tax returns to fraudulently increase his customers’ refunds, and profits through unconscionable and exorbitant fees — all at the expense of his customers and the U.S. Treasury.

According to the suit, there is a “culture of greed” at Odne’s tax return preparation stores “that expressly promotes and encourages the preparation of false and fraudulent federal tax returns in order to maximize corporate and individual profits.”  The complaint alleges that Odne’s stores engage in fraudulent activity, including:

            •           Falsely claiming the Earned Income Tax Credit;

            •           Claiming improper filing status (i.e., head of household);

            •           Fabricating businesses and related business income and expenses;

            •           Fabricating itemized deductions on a Schedule A, including for unreimbursed employee business expenses, automobile expenses and charitable contributions;

            •           Falsely claiming education credits to which customers are not entitled;

            •           Improperly preparing returns based on paystubs rather than Forms W-2; and

            •           Failing to provide customers with a copy of a competed tax return, as required.

According to the complaint, the Internal Revenue Service (IRS) estimates that the tax loss resulting from these activities for the 2012, 2013 and 2014 tax years could be up to $35.5 million or more.

This lawsuit is one of several filed against former LBS Tax Services-related individuals, including Walner Gachette, Douglas Mesadieu, Jean Demesmin, Kerny Pierre-Louis, Demetrius Scott, Jason Stinson, Wilfrid Antoine, Tonya Chambers, Jehoakim Victor and Lauri Rodriguez.  In February 2015, a court barred Victor and Rodriquez from preparing tax returns for others and from owning or operating a tax return preparation business.

Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2015.  The IRS has some tips on its 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 and tax scheme promoters.  Information about these cases is available on the Justice Department’s website.  An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page.  If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

The Justice Department announced today that it reached settlement agreements with the city of Parowan, Utah; the city of Española, New Mexico; and the village of Ruidoso, New Mexico.  The agreements resolve investigations of each public entity under Title I of the Americans with Disabilities Act (ADA).  The investigations found that each jurisdiction’s online employment application asked questions about disabilities in violation of the ADA.  The ADA does not permit employers to inquire as to whether an applicant is an individual with a disability or as to the nature of such disability before making a conditional offer of employment.  Under Section 503 of the Rehabilitation Act of 1973, however, federal contractors subject to affirmative action requirements must invite an applicant voluntarily to self-identify as an individual with a disability, consistent with certain requirements. 

Two investigations also found that the public entity’s online employment opportunities website or job applications were not fully accessible to people with disabilities, such as those who are blind or have low vision, are deaf or hard of hearing, or have physical disabilities affecting manual dexterity (such as limited ability to use a mouse).  In recent months, the department reached similar settlement agreements with the cities of DeKalb, Illinois; Vero Beach, Florida; Fallon, Nevada; Isle of Palms, South Carolina; Hubbard, Oregon; and Florida State University. 

“These agreements ensure that job applicants with disabilities will have an equal chance to compete for jobs in the public sector and won’t face illegal questions,” said Principal Deputy Assistant Attorney General Vanita Gupta of the Civil Rights Division.  “We commend each public entity for its cooperation in making the job application process more accessible.”   

Under the settlement agreements, each public entity agrees to ensure that its hiring policies and procedures do not discriminate against any applicant on the basis of disability, including by:

• not conducting a medical examination or making a disability-related inquiry of a job applicant before a conditional offer of employment is made;

• not requiring a medical examination or making inquiries of an employee as to whether such employee is an individual with a disability or as to the nature or severity of the disability, unless such examination or inquiry is shown to be job-related and consistent with business necessity;

• maintaining the medical or disability-related information of applicants and employees in separate, confidential medical files; and

• training employees who make hiring or personnel decisions on the requirements of the ADA, designating an individual to address ADA compliance matters, and reporting on compliance.

Parowan and Ruidoso must also ensure that their online employment opportunities website and job applications conform with the Web Content Accessibility Guidelines 2.0, which are industry guidelines for making web content accessible.

Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

A Washington, D.C., resident and businessman was sentenced to prison for failing to pay over nearly $1 million in employment taxes, announced Acting Deputy Assistant Attorney General Larry J. Wszalek for the Justice Department’s Tax Division.

Kevin Bertram, former CEO of the wireless technology firm Distributive Networks LLC, was sentenced to serve 30 months in prison to be followed by three years of supervised release, and ordered to pay $897,921 in restitution to the Internal Revenue Service (IRS).  On Feb. 10, Bertram pleaded guilty in the U.S. District Court for the District of Columbia to willfully failing to pay over more than $900,000 in employment taxes, including federal income taxes, as well as the social security and Medicare taxes of Distributive Networks’ employees.

According to court documents, Bertram operated Distributive Networks from 2004 through 2010.  Bertram’s company, which was named one of Washington, D.C.’s “Great Places to Work” by Washingtonian magazine in 2007, created technology that allowed cell phone users to participate in contests, download ringtones and receive content such as trivia and horoscopes. 

According to court documents, Distributive Networks provided employee perks, such as free Starbucks coffee and gym memberships, and a 100 percent matching contribution to its employees’ 401(k) plans.  However, Bertram willfully failed to comply with Distributive Networks’ employment tax obligations.  For the quarterly tax periods in late 2007 through mid-2009, Bertram failed to file Distributive Networks’ required quarterly IRS Forms 941 (Employer’s Quarterly Federal Tax Returns) and failed to pay over $927,921.78 in employment taxes due to the IRS.  At the same time that Bertram was failing to pay the IRS income and other taxes withheld from employees’ paychecks, he spent hundreds of thousands of dollars of company funds on sporting event tickets and personal luxury goods.

Acting Deputy Assistant Attorney General Wszalek commended special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Tax Division, who are prosecuting the case.  Wszalek also thanked the U.S. Attorney’s Office of the District of Columbia for their substantial assistance.

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

FALLS CHURCH, Va. – The Executive Office for Immigration Review (EOIR) today announced that it has launched eInfo, a web-based application that allows registered attorneys and fully accredited representatives to view their clients’ case information.  eInfo provides similar information to that which is currently available by telephone via the Automated Case Information Hotline (also known as the “1-800 phone number”).  Users can retrieve information such as future hearing dates, decision information and case appeals.

eInfo brings EOIR’s electronic applications to three, joining eRegistry and eFiling, and creating the new Internet Immigration Information application known as I³.  I³ offers electronic access and filing for the immigration courts and the Board of Immigration Appeals.

“EOIR continues to work toward a paperless environment,” said EOIR Director Juan P. Osuna.  “eInfo is the latest complement to our long-term plan to provide continuous electronic access to immigration proceedings.”

EOIR has also updated its online Action Center, located on EOIR’s homepage, to provide users easy access to the electronic applications portal.  Please see the following link for more details and frequently asked questions: I³ Frequently Asked Questions.

- EOIR -

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