District Not Recorded

A Coral Gables, Florida resident and former Miami-Dade County General Services Administration (GSA) employee pleaded guilty to a one-count information charging him with tax evasion, the Justice Department and Internal Revenue Service (IRS) announced today.

Jesus Pons pleaded guilty in the U.S. District Court for the Southern District of Florida.  According to the information, Pons was a computer services manager at the GSA of Miami-Dade County responsible for managing and allocating resources to information technology projects for Miami-Dade County.  According to court filings, he was also responsible for supervising and managing tasks performed by county vendors.  From 2007 to 2011, Pons received money in the form of illegal kickback payments from county vendors Data Industries and Paradyne Consulting Services (Paradyne).  In exchange for these illegal kickbacks, Pons approved payments from Miami-Data County to Data Industries and Paradyne for consulting work that was never done.  According to the plea agreement, Pons did not report the illegal kickbacks on his tax returns.  From 2007 through 2011, Pons earned income from the scheme in the amount of $1,666,998 that he did not report to the IRS, causing a tax loss of $556,254.

Pons faces up to a statutory maximum sentence of five years in prison at his sentencing on Dec. 17.

This case was investigated by IRS-Criminal Investigation.  It is being prosecuted by Trial Attorneys Jeffrey McLellan and Erin Pulice of the Tax Division.

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

Attorney General Eric Holder recognizes 278 department employees for their distinguished public service today at the 62nd Annual Attorney General’s Awards Ceremony.  Ten other individuals outside of the department are also honored for their work.  Held at DAR Constitution Hall, this annual ceremony recognizes both department employees and others for their outstanding dedication to carrying out the Department of Justice’s missions.

“With this important event, we come together to honor some of our nation’s most distinguished, dedicated, and deserving public servants,” said Attorney General Holder.  “The hard work and impressive achievements of these 278 award recipients have inspired their colleagues at every level of the U.S. Department of Justice – including me.  Their leadership has been indispensable in defining the past year as one of historic accomplishment in the face of nearly unprecedented challenge.”

Attorney General Holder and Deputy Attorney General James M. Cole present the Attorney General’s Award for Exceptional Service – the department’s highest award for employee performance – to the team responsible for outstanding achievement in U.S. v. Windsor implementation.

The task of the Windsor Implementation Team was to make real the promise of the U.S. v. Windsor decision striking down Section 3 of the Defense of Marriage Act.  As the U.S. Supreme Court noted, the purpose and effect of Section 3 was to discriminate against same-sex couples in the more than 1,000 federal laws in which marital status is a relevant consideration.  Bringing to bear expertise from across the department, the Windsor team coordinated with agencies across the government to identify these laws, as well as other federal rules and policies affected by Section 3, and issue new policies and guidance to expunge the discrimination Section 3 had required.  In doing so, the team ensured that committed and loving couples throughout the country, and their families, would receive equal treatment by the government regardless of their sexual orientation.

The recipients of the Attorney General’s Award for Exceptional Service include, from the Civil Division, Chief of Staff and Counselor to the Assistant Attorney General Jonathan F. Olin; Senior Counsel to the Assistant Attorney General Natalia T. Sorgente; Counsels to the Assistant Attorney General James A. Cadogan, James C. Cox, Helen L. Gilbert and Joshua I. Wilkenfeld; Special Assistant for Policy in the Office of the Assistant Attorney General Kerry A. Bollerman; Federal Programs Branch Assistant Branch Director Arthur R. Goldberg; Federal Programs Branch Trial Attorneys Jennie L. Kneedler, Jean Lin and Eric R. Womack; and Appellate Staff Attorneys Adam C. Jed, Jeffrey E. Sandberg and Abby C. Wright; from the Civil Rights Division, Deputy Assistant Attorney General Pamela Karlan; Office of the Assistant Attorney General Acting Chief of Staff and Senior Counselor Emily M. Loeb; Policy and Strategy Section Legislative and Policy Counsel Varda Hussain; and Appellate Section Trial Attorney Holly A. Thomas; from the Executive Office for U.S. Attorneys, Office of Legal and Victim Programs Attorney-Advisor Jason F. Cunningham; from the Office of the Attorney General, Deputy Chief of Staff and Counselor to the Attorney General Jenny R. Mosier; from the Office of the Deputy Attorney General, Associate Deputy Attorney General Robin E. Jacobsohn and Counsel to the Deputy Attorney General Geoffrey A. Starks; from the Office of the Associate Attorney General, Counsel to the Associate Attorney General Stacey K. Grigsby; from the Office of Legal Counsel, Office of the Assistant Attorney General, Deputy Assistant Attorneys General Benjamin C. Mizer and Leondra Kruger; from the Office of Legal Policy, Chief of Staff Steven Siger; from the Office of Justice Programs, Office of the Assistant Attorney General Senior Adviser Theron P. Pride Jr.; from the Office of the Solicitor General, Assistant to the Solicitor General Eric J. Feigin; and from the Tax Division, Appellate Section Attorney Ivan C. Dale.

The Attorney General’s Award for Exceptional Heroism is given to recognize an extraordinary act of courage and voluntary risk of life during the performance of official duties.  This year’s award is presented for courageous acts during the rescue of a young hostage.

On Jan. 29, 2013, Jimmy Lee Dykes boarded a school bus in rural Midland City, Alabama, killed the driver, and took five-year-old Ethan Gilman hostage in a fortified underground bunker.  Armed with multiple weapons and improvised explosive devices (IED), Dykes grew increasingly unstable over the six-day standoff, leading to an assessment that the kidnapped child would ultimately die unless a rescue was attempted.  On Feb. 4, 2013, at grave personal risk and without regard for their own safety, five members of the FBI Hostage Rescue Team made entry into the bunker, which Dyke’s had previously indicated was a “funnel of death.”  The initial breach was violent, but successfully cleared the bunker hatch for the five-man entry team.  The team immediately encountered additional obstacles placed lower in the opening by Dykes.  As the entry slowed, Dykes retrieved his handgun and engaged the team from less than five feet away while in a position of cover, and with Ethan as a shield.  During the initial assault, Dykes detonated an external IED, and was believed to be in the process of attempting to detonate a second IED inside the bunker.  At grave personal risk and without regard for their own safety, the members of the team moved from a position of cover, exposing themselves to gunfire, in order to clear the obstruction for entry.  Without hesitation, the team entered into the darkened, smoke-filled hole.  Once inside, they swiftly sorted through a confused situation, identified Ethan and immediately evacuated him from the bunker and the remaining IED threat.  The exceptional courage and extraordinary decisiveness of the recipients ultimately prevailed, resulting in the death of Dykes and the rescue of Ethan unharmed.

The recipients of the Attorney General’s Award for Exceptional Heroism include, from the FBI’s Salt Lake City Field Office, Supervisory Special Agents Christopher K. Curren, Neil Whitfield Darnell, William T. Francis Jr., Ryan J. Short and Kyle R. Vowinkel; Critical Incident Response Group Special Agents Brocklyn D. Bahe, Christopher S. Baylor, Benjamin M. Binger, Christian Galeski, J. Michael Montoya, Kevin P. Murray, Matthew Nagle and Stanley M. Wadas; and Special Agent Rodney O. Draper.

The Edward H. Levi Award for Outstanding Professionalism and Exemplary Integrity is presented to pay tribute to the memory and achievements of former Attorney General Edward H. Levi, whose career as an attorney, law professor, dean and public servant exemplified these qualities in the best traditions of the department.  This year’s award is presented to Deputy Assistant Attorney General and Counselor for International Affairs in the Criminal Division’s Office of the Assistant Attorney General Bruce C. Swartz for exemplary service to the Criminal Division and the department.

Mr. Swartz is a person of utmost integrity, who has demonstrated his exceptional strength of character and expertise in over 12 years as Deputy Assistant Attorney General in the Criminal Division and, more recently, as the department’s Counselor for International Affairs.  He supervises three Criminal Division offices, each of which plays a critical role in international law enforcement.  In addition to guiding these offices as they navigate some of the most sensitive international legal issues that the department handles, Mr. Swartz provides essential advice to the Attorney General, the Deputy Attorney General and other department leaders concerning the intersection of U.S. and international interests in areas of criminal law enforcement, national security and intelligence matters.  He is the consummate professional and an exemplary public servant.

The Mary C. Lawton Lifetime Service Award recognizes employees who have served at least 20 years in the department and have demonstrated high standards of excellence and dedication throughout their careers.  This award is presented only in exceptional circumstances to those individuals of special merit and is not awarded to express general appreciation for tenure alone.  One Mary C. Lawton Award is presented this year.

 This year’s award is presented to T. Christian Herren Jr.¸ Chief of the Civil Rights Division’s Voting Section for exceptional contributions and leadership to the Civil Rights Division and the department. 

Mr. Herren’s oversight and direction have guided the heavy and highly complex litigation, appellate and administrative review docket carried by the Civil Rights Division Voting Section, while managing resources wisely and efficiently, and raising the productivity and professionalism standards of staff.  Throughout his 20 years of service to the Voting Section, Mr. Herren has significantly contributed to the development of the jurisprudence of voting rights law through his appellate work on matters before the U.S. Supreme Court or the courts of appeal, or his trial work in the district courts throughout the nation.  His institutional knowledge of the section’s work and voting law in general, coupled with a critical review of existing practices and a willingness to innovate and strategize, has enabled him to maximize the Voting Section’s enforcement efforts.  He is highly respected within the division, the department, and by elections officials and civil rights practitioners nationwide.  Mr. Herren’s lifetime of dedication to the Voting Section exemplifies his strong commitment to not only voting rights, but to civil rights in general and overall public service.

The William French Smith Award for Outstanding Contributions to Cooperative Law Enforcement is an honorary award granted to recognize state and local law enforcement officials who have made significant contributions to cooperative law enforcement endeavors.  This year’s award is presented to the Broward County, Florida, Sheriff’s Office Task Force Officer William Schwartz.

Prescription drug abuse is a serious problem throughout the nation.  Detective Schwartz has been a true crusader in our country’s battle against prescription drug abuse and has led the Drug Enforcement Administration’s (DEA) Miami Field Division’s (MFD) Tactical Diversion Squad (TDS) program with an end result that has made a substantial impact on the illegal distribution of pharmaceuticals throughout the state of Florida.  Through his outstanding investigative work on high impact pharmaceutical investigations, he has been instrumental in the success of the DEA MFD TDS goals and objectives.  Detective Schwartz has educated hundreds of federal and state attorneys and law enforcement officers to investigate and successfully prosecute those responsible for the illegal diversion of pharmaceutical drugs.  His outstanding accomplishments have significantly contributed to preventing the illegal diversion of pharmaceutical drugs and reducing prescription drug abuse which is vital to the health and welfare of the American people.

The Attorney General’s Award for Meritorious Public Service is the top public service award granted by the department, and is designed to recognize the most significant contributions of citizens and organizations that have assisted the Department of Justice in the accomplishment of its mission and objectives. This year’s award is presented to Helen Miner, a volunteer with the Federal Bureau of Prisons at the Federal Correctional Institution in El Reno, Oklahoma, for her outstanding dedication to FCI El Reno and the inmate population.  Ms. Miner is honored for her outstanding dedication to the rehabilitation and improvement of the incarcerated as they prepare to reenter back into society.  Her dedication as a volunteer at FCI El Reno for 44 years has greatly infused the incarcerated men at FCI El Reno by giving inmates hope and skills that will extend beyond their incarceration.  Ms. Miner demonstrates confidence and respect, while promoting self-confidence, self-improvement and self-worth within the inmate population.  Her commitment and contributions to FCI El Reno have been invaluable.

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

The first Distinguished Service Award is presented to members of the investigative and litigation team responsible for exemplary performance in the prosecution of conspiracies in the automobile parts industry.  This team, honored for its leadership, dedication and tireless investigation of global anticompetitive cartels, is responsible for the historic prosecution of over a dozen price-fixing, bid-rigging and market-allocation conspiracies in the automobile parts industry.  This four-year investigation was unprecedented in both its scope and the volume of commerce affected by the illegal conduct.  Due to the team’s efforts, 26 companies have agreed to pay fines totaling $2.3 billion and 20 individuals have been sentenced to serve jail sentences.  The conspiracies uncovered by the investigation affected more than 25 million cars purchased by American consumers and over $5 billion in automotive parts sold to U.S. car manufacturers and automobile plants in 14 states.  As a result of the extraordinary efforts of the team, competition was restored to the auto parts industry, and the companies and individuals responsible were held accountable for their illegal conduct.

Award recipients include, from the Antitrust Division, Chief Lisa M. Phelan; Assistant Chief Kathryn M. Hellings; Trial Attorneys Shane Cralle, Paul Gallagher, Kenneth W. Gaul, Mark C. Grundvig, Jason Jones and Eric Meiring; Washington Criminal I Section Secretary Priscilla Scruggs; Paralegal Unit Paralegal Specialist Meghan Ballard; and Office of Operations Trial Attorney Portia Brown; from the FBI’s Washington Field Office, Special Agents Kristina Honeycutt and Faustine M. Smith-Neil; and from the FBI’s Detroit Field Office, Special Agent Douglas R. Wood Jr.

The second Distinguished Service Award is presented for distinguished service by the team that engaged in groundbreaking work to address constitutional violations in the operation of the juvenile court in Shelby County, Tennessee.  For the first time since the law was enacted almost 20 years ago, the Violent Crime Control and Law Enforcement Act was used to investigate a juvenile court.  The investigation uncovered that children were not: provided timely and adequate notice of the charges against them; protected against self-incrimination; provided timely probable cause hearings; provided meaningful assistance of counsel; and provided adequate protections before being transferred to adult court.  The investigation also revealed that black children received disproportionately harsh treatment in the different stages of the delinquency process.  The team negotiated a landmark settlement that is being implemented and promises to transform the juvenile court in Shelby County into a model for the nation.  In the short time since the settlement was entered, Shelby County has already funded and inaugurated a juvenile public defender system.  In that same time, the rate of admissions to pre-trial detention has drastically dropped, and initial data suggests that black children are already being treated more fairly at all stages of the delinquency process.

Award recipients include, from the Civil Rights Division’s Special Litigation Section, Deputy Chief Judith C. Preston, Special Litigation Counsel Winsome G. Gayle and Trial Attorney Anika N. Gzifa.

The third Distinguished Service Award is presented for groundbreaking and highly successful work as part of the investigation into manipulation of the London InterBank Offered Rate (LIBOR), a leading benchmark interest rate that is tied to student loans, mortgages and financial instruments used around the world, as well as other leading benchmark interest rates, including the Euro Interbank Offered Rate (Euribor).  Between June 2012 and October 2013, members of the LIBOR team resolved cases with four of the world’s largest financial institutions: Barclays Bank PLC (Barclays), UBS AG (UBS), The Royal Bank of Scotland PLC (RBS), and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank).  At all four institutions, certain derivatives traders requested that certain rate submitters submit LIBOR and/or Euribor contributions that would benefit the traders’ positions, rather than rates that complied with the definitions of LIBOR and Euribor.  In addition, at Barclays and UBS, management directed that LIBOR submissions be lowered in order to reduce the reputational risk associated with proper, higher LIBOR submissions.  To date, the criminal penalties assessed by the department and resulting from the LIBOR team’s actions exceed $1.1 billion.

Award recipients include, from the Criminal Division’s Fraud Section, Acting Deputy Chief of Staff and Counselor to the Assistant Attorney General for the Criminal Division Rebecca A. Rohr; Acting Fraud Section Chief William J. Stellmach; Deputy Fraud Section Chiefs Daniel Braun and Patrick F. Stokes; Assistant Fraud Section Chief Sandra Moser; and Trial Attorneys Alexander H. Berlin and Gary Winters; from the Antitrust Division, Assistant Chief Elizabeth B. Prewitt; Trial Attorneys Ludovic C. Ghesquiere, Richard A. Powers and Daniel M. Tracer; New York Office Legal Administrative Officer Caitlin E. Morrison; Chicago Office Trial Attorney Eric L. Schleef; and Litigation I Section Trial Attorney Michael T. Koenig; from the FBI’s Washington Field Office, Special Agents Patrick M. Boone, Michael P. Kelly, Michael J. McGillicuddy, Kendra S. McLamb and Jeffrey Weeks; and Forensic Accountant Kyle D. Dornbos.

The fourth Distinguished Service Award is presented to the team whose outstanding contribution led to the successful arrest and prosecution of James “Whitey” Bulger and his longtime girlfriend, Catherine E. Greig.  Bulger, one of the country’s most notorious criminals, had eluded capture for his crimes for over 16 years, helped in no small part by Greig.  In June 2011, federal law enforcement officials developed a public campaign that focused on Greig rather than Bulger.  The campaign worked, and Bulger and Greig were located in a Santa Monica, California, apartment along with over $800,000 in cash and 30 firearms.  Bulger and Greig were then successfully prosecuted, and Greig received one of the highest sentences for harboring a fugitive ever imposed in the United States.  After a 10-week trial, Bulger was convicted of multiple offenses and in November 2013, he was sentenced to serve consecutive life terms in prison.  Bulger’s trial was a monumental undertaking, involving evidence spanning more than 20 years of criminal conduct, including 19 charged murders.  Over the course of the 10-week trial, the government called almost 70 witnesses, many of whom were hostile, advanced in age and murderers themselves.  Following trial, the team also resolved several difficult and novel victim-related forfeiture issues.

Award recipients include, from the U.S. Attorney’s Office for the District of Massachusetts, Assistant U.S. Attorneys Zachary R. Hafer, Mary B. Murrane and Fred M. Wyshak Jr.; and Paralegal Specialist Theresa M. Fahey; from the DEA’s New England Division, Supervisory Special Agent Daniel M. Doherty; from the FBI’s Boston Field Office, Supervisory Special Agent Richard E. Teahan; Special Agents Michael J. Carazza and Gregory J. Comcowich; and Public Affairs Specialist Katherine A. Gulotta; from the FBI’s Los Angeles Field Office, Special Agent Scott F. Garriola; from the Office of the Inspector General Investigations Division, Senior Special Agent James J. Marra; from the U.S. Marshals Service, Asset Forfeiture Division Assistant Chief Inspector Thomas J. Abernathy III and District of Massachusetts Deputy U.S. Marshal Neil R. Sullivan; from the U.S. Department of the Treasury, Internal Revenue Service-Criminal Investigation Division Special Agent Sandra J. Lemanski; and from the Massachusetts State Police, Detective Lieutenant Stephen P. Johnson.

The fifth Distinguished Service Award is presented for the successful settlement negotiations and the predicate fraud investigations conducted by the recipients which led to the largest settlement with a single entity in American history – $13 billion – and the largest Financial Institutions Reform, Recovery, and Enforcement Act penalty ever recovered by the department - $2 billion.  The tireless efforts of the recipients advanced core missions of the department by holding wrongdoers accountable for reckless and abusive conduct that contributed to the financial crisis, as well as providing substantial compensation for federal entities supported by American taxpayers and critical assistance to neighborhoods impacted by the mortgage meltdown.

Award recipients include, from the Office of the Associate Attorney General, Principal Deputy Associate Attorney General Elizabeth Taylor; Chief of Staff Brian Martinez; and Director of the RMBS Working Group Geoffrey Graber; from the Civil Division, Director of E-Discovery, FOIA and Records Allison C. Stanton; Office of the Assistant Attorney General Counsel Melanie T. Singh; Consumer Protection Branch Trial Attorney David A. Frank; and Fraud Section Trial Attorney Carol Lynn Wallack; from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Assistant U.S. Attorneys David A. Degnan and Viveca D. Parker; and from the U.S. Attorney’s Office for the Eastern District of California, Assistant U.S. Attorneys Richard Elias, Colleen M. Kennedy, David T. Shelledy and Kelli L. Taylor.

The sixth Distinguished Service Award is presented to the Fire Department of New York (FDNY) Trial Team for exemplary performance in litigating the U.S. v. City of New York discrimination case.  In this long-standing Title VII case, the district court found that the city of New York engaged in a pattern or practice of discrimination against black and Hispanic applicants for entry-level firefighter positions.  Specifically, the district court found that the city violated Title VII by using written examinations that had a disparate impact on black and Hispanic applicants, and did not test the relevant skills needed to perform the firefighter job.  At the time the city administered the first challenged examination, the uniformed members of the FDNY were only 2.9 percent black and 2.8 percent Hispanic.  This extremely low level of minority representation in the FDNY was essentially the same as in the early 1970s, when the city was also sued for racially discriminatory hiring practices in its fire department.  As a result of the liability finding and the United States’ continued litigation of remedies, current and future applicants to the FDNY have the opportunity to compete for employment on a fair and lawful basis for the first time in decades based on a new examination developed under the supervision of the district court and in conjunction with the recipients.  In addition, the city has agreed in principle to pay up to $98 million in back-pay to victims of the city’s discrimination, and the court ordered the city to give 293 victims priority employment as a firefighter.  This is the largest affirmative recovery ever obtained by the Civil Rights Division in a Title VII case.

Award recipients include, from the Civil Rights Division’s Employment Litigation Section, Deputy Chief Meredith L. Burrell; Special Litigation Counsels Eric K. Bachman and Sharon A. Seeley; Supervisory Civil Rights Analyst Cynthia M. Jones; Trial Attorneys Clare F. Geller, Kathryn E. Ladewski, Barbara A. Schwabauer, Jennifer M. Swedish, Allan K. Townsend and Carolyn P. Weiss; and Paralegal Specialists Adrienne D. Harrell and Tamera N.C. Overton; from the Criminal Section, Trial Attorney David N. Reese; from the Appellate Section, Deputy Chief Dennis J. Dimsey and Trial Attorney Lisa J. Stark; and from the U.S. Attorney’s Office for the Eastern District of New York, Senior Trial Counsel Elliot M. Schachner.

The seventh Distinguished Service Award is presented to the teams involved in the successful investigation and prosecution of the violent transnational criminal organization Barrio Azteca.  This complex racketeering case targeted an organization responsible for the U.S. Consulate murders in Juarez, Mexico, and countless shootings, assaults, and other acts of violence, as well as narcotics trafficking and money laundering.  The team eventually charged 35 members and associates, and sustained convictions on all who were found or brought into the United States, with the most violent members, including those responsible for the consulate murders, being sentenced to serve life sentences in prison.

Award recipients include, from the Criminal Division, Human Rights and Special Prosecutions Section Trial Attorney Brian D. Skaret; from the DEA, U.S. Consulate General Special Agents James D. Armstrong and Javier Barraza; from the U.S. Attorney’s Office for the Middle District of Alabama, Assistant U.S. Attorney Christopher A. Snyder; from the U.S. Attorney’s Office for the Western District of Texas, Assistant U.S. Attorney John Gibson; from the U.S. Attorney’s Office for the Northern District of Texas, Assistant U.S. Attorney George Leal; from the FBI’s Tampa Field Office Special Agent Carlos M. Hernandez; from the FBI’s El Paso Field Office, Supervisory Special Agent Rodolfo Ortega Jr. and Special Agents Samantha A. Mikeska, Lorenzo Perez Jr. and Alyson Samuels; from the FBI’s Miami Field Office, Supervisory Special Agents Edgar Cruz and Alfred A. Watson, and Special Agent Charles M. Bryden; from the FBI’s Albuquerque Field Office Supervisory Special Agent Rene F. Medina and Special Agent Gregory Watterson; and from the U.S. Marshals Service’s Investigative Operations Division, Chief Inspector M. Brian Maxwell.

The eighth Distinguished Service Award is presented to the team who performed distinguished work on complex legal issues arising from the 17-day federal government shutdown that occurred in October 2013 as the Executive Branch faced novel questions arising from a possible default on its fiscal obligations in the midst of a government-wide shutdown.  Teams of attorneys from the Office of Legal Counsel and the Civil Division’s Federal Programs and Commercial Litigation Branches were on the front lines in addressing all of these complicated legal questions.  The team advised the White House, the U.S. Department of the Treasury, the Attorney General and various other agencies, while also fending off lawsuits challenging agencies’ actions (or inaction) during the shutdown.  In a historic time of great national significance, and under extraordinary deadlines, the team’s work was thorough and careful; covered a wide range of statutory, regulatory and constitutional issues affecting every agency in the Executive Branch; and combined the highest standards of craft with the imagination and creativity demanded by the unprecedented nature of the shutdown and debt limit conflict.

Award recipients include, from the Office of Legal Counsel, Deputy Assistant Attorney General Daniel L. Koffsky; Senior Counsel Matthew D. Roberts; and Attorney-Advisers Jaynie Lilley, Thomas G. Pulham and Nitin Shah; from the Civil Division’s Commercial Litigation Branch, Assistant Branch Director Susan K. Rudy; Federal Programs Branch Trial Attorneys Kathryn C. Davis, Lesley R. Farby, Adam D. Kirschner and Daniel S.G. Schwei; and Senior Trial Counsel Ellen M. Lynch.

The ninth Distinguished Service Award is presented to the Office for Victims of Crime Antiterrorism and Emergency Assistance Program (AEAP) Team for its effective, reliable and compassionate response to victims of terrorism and mass violence.  Due to the far-reaching scope and horrific nature of crimes of mass violence, communities are usually unprepared, financially or emotionally, to respond to the needs of victims and survivors.  The AEAP Team has provided these communities with invaluable support in both the short and long term, from emergency crisis response to enabling victims and their families to participate in criminal justice proceedings years later.  The AEAP Team has gone far beyond the role of simply awarding funding, and has taken a farsighted and proactive role to assist victims and their states and communities.

Award recipients include, from the Office of Justice Programs’ Office for Victims of Crime, Director Joye E. Frost; Deputy Director J. Robert Cantrall; and Program Manager Eugenia Pedley.

The 10th and final Distinguished Service Award is presented to Tax Division Office of the Assistant Attorney General Counsel to the Assistant Attorney General Kathleen E. Lyon for her extraordinary work in drafting the Program for Non-Prosecution Agreement or Non-Target Letters for Swiss Banks (Swiss Bank Program).  The department has had ongoing investigations into the use of foreign bank accounts to evade U.S. taxes, and the Swiss Bank Program was designed to encourage Swiss banks not already under investigation to cooperate with the department’s efforts.  Ms. Lyon was instrumental in drafting the terms of the Swiss Bank Program.

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

 The first Attorney General’s Award for Excellence in Law Enforcement is presented to the members of Operation Main Hub, a multi-agency investigation into neighborhood gangs and drug trafficking organizations initiated in 2009.  The FBI focused on the Turabo Heights Public Housing Projects (PHP) and the Barriada Morales while the DEA investigated the Gautier Benitez and Brisas del Turabo PHPs.  The investigation revealed that neighborhood based gangs and drug trafficking organizations (DTOs) in these areas were directly involved in several shootings to protect their territory, and were responsible for distributing powder cocaine, crack cocaine, heroin, marijuana and prescription pills, resulting in millions of dollars of illicit revenue.  Within Barriada Morales, the investigation targeted drug points near elementary schools and head start programs, and included multiple controlled drug buys, controlled firearms purchases, and firearms seizures from the gangs, along with extensive surveillance and law enforcement interventions.  Agents utilized advanced investigative techniques and obtained numerous pen registers and six Title III wire intercepts.  The FBI’s San Juan, Puerto Rico, Division was assisted by approximately 350 other law enforcement agents, including agents from the FBI, DEA, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and local law enforcement agencies.  As a result, the U.S. Attorney’s Office for the District of Puerto Rico agreed to indict 79 individuals in the Turabo Heights PHP and 126 individuals in the Barriada Morales DTO.  Additionally, the DEA indicted 60 individuals between the Gautier Benitez and Brisas del Turabo PHPs.  With over 350 tactical operators flown to the island, the arrests within the Barriada Morales became the largest single day tactical operation in FBI history.  These arrests significantly disrupted the narcotics distribution network within Caguas, Puerto Rico, and caused a noticeable decrease in violence, especially within the Turabo Heights PHP.

 Award recipients include, from the FBI’s Chicago Field Office, John A. Morales, and from the FBI’s San Juan Field Office, Special Agents Cristina R. Bretsch, Michael A. Dubravetz Jr. and Allen P. Pack; from the Bureau of Alcohol, Tobacco, Firearms and Explosives’ Miami Field Division, Puerto Rico III Field Office Special Agent Carlos M. Gonzalez; from the DEA’s Caribbean Division, Special Agents Rafael A. Santiago, Joseph R. Slesar and Stavros Stefanidis; from the U.S. Attorney’s Office for the District of Puerto Rico, Assistant U.S. Attorneys Jennifer Y. Hernandez-Vega, Alberto R. Lopez and Teresa Sofia Zapata; from the Police of Puerto Rico, Agents Jose A. Velazquez-Garcia; Pablo A. Irizarry-Ayala and Jesus Marrero-Cruz; and from the San Juan Municipal Police, Agent Michelle C. Cheveres-Contes.

The second Attorney General’s Award for Excellence in Law Enforcement is presented for outstanding performance in the recovery of missing children.

Award recipients include, from the U.S. Marshals Service’s Investigative Operations Division, Chief Inspector Denis Donovan IV and Senior Inspector Frank T. Conner.  The investigators of the U.S. Marshals Service (USMS) Sex Offender Investigations Branch target missing child cases when a felony warrant is outstanding for the abductor or companion of an abducted, missing or endangered child.  This missing child initiative teams fugitive hunters from the Sex Offender Investigations Branch with the National Center for Missing and Exploited Children’s (NCMEC) resources as the nation’s clearinghouse for missing children.  This mandate began as a joint effort between the USMS and NCMEC to identify outstanding warrants associated with missing child cases.  On Jan. 10, 2014, the USMS and NCMEC reached their milestone 500th child recovery for the Sex Offender Investigations Branch missing child initiative.  More than 10 years after the start of the operation, the missing child initiative continues to grow and make a positive impact in communities across the nation.

The Attorney General’s Award tor Exceptional Service in Indian Country recognizes extraordinary efforts by department employees that demonstrate the department’s commitment to fight crime in Indian Country. This year’s award is presented to Assistant U.S. Attorney Glynette R. Carson McNabb for the District of New Mexico for her exceptional service and outstanding contributions to public safety in Indian Country over the course of 14 years as an Assistant U.S. Attorney.  Since June 2010, Ms. McNabb has served as the supervisor for the District of New Mexico’s Indian Country Crimes Section and Tribal Liaison for the 22 tribes in New Mexico.  Her dedication to improving public safety and the quality of life in tribal communities not only in New Mexico but throughout the country, has substantially contributed to the department’s commitment to fight crime in Indian Country.

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

Award recipients include, from the U.S. Marshals Service’s Office of General Counsel, Principal Deputy General Counsel Lisa M. Dickinson for her exemplary leadership in management at the U.S. Marshals Service; and from the Civil Division’s Office of Management Programs, Executive Officer and Director Kenneth L. Zwick for his exemplary leadership in management of the Civil Division.

Ms. Dickinson has dedicated 20 years of professionalism and integrity to the U.S. Marshals Service (USMS).  Her efforts to support and improve the USMS and its employees, while serving in myriad capacities within the organization, exemplify the best traditions of the department.  She is not only highly regarded for her expert legal counsel, but also is respected for her stellar historical knowledge of the USMS and known for always willing to share her insight and knowledge.  In her current position as the Principal Deputy General Counsel overseeing operations of the Office of General Counsel, Ms. Dickinson continues to provide legal advice and guidance, coordinate litigation matters with U.S. Attorney's Offices and respond to inquiries from other federal agencies and members of the public.  Throughout her career, she has been called upon numerous times to serve dual roles for the USMS.  From 2004 to 2006, she served as the Acting Executive Assistant to the director, while at the same time serving as the Equal Employment Opportunity Officer.  From 2006 to 2008, she served as the Senior Counsel to the director, providing advice and guidance on diverse issues and matters.  In 2012, while providing counsel in the Office of General Counsel, she also served as the Acting Assistant Director for the Human Resources Division, and from June 2013 through March 2014, she served as the Associate Director for Administration.  In every position throughout her career, Ms. Dickinson has inspired co-workers and subordinates with her dedication and knowledge of the USMS, and its historic role in protecting our judiciary for the nation.

Mr. Zwick is recognized for his sustained leadership in guiding the business operations of the department’s component.  In his tenure with the department, Mr. Zwick has responded with speed and effectiveness to repeated challenges of extraordinary complexity, including the creation of an administrative infrastructure to support the September 11th Victim Compensation Fund.  He has also expertly transformed the daily operations of the Civil Division’s litigation support and human resources efforts, saving the department millions of dollars and dramatically improving efficiency.  Mr. Zwick has consistently provided outstanding contributions to the department under challenging conditions, and his exceptional leadership has markedly improved the department’s operations.

The Attorney General’s Award for Excellence in Information Technology recognizes outstanding achievements in applying information technology to improve operations and productivity, reduce or avoid costs, and solve problems.  Two Excellence in Information Technology Awards are presented this year.

The first Attorney General’s Award for Excellence in Information Technology  recipient is Director Richard W. Tayman from the Environment and Natural Resources Division’s Office of Information Technology for Superior Program Management of ENRD Information Technology Systems.

Mr. Tayman is a true technology innovator who is extremely well respected throughout the department.  While he has taken care of the Environment and Natural Resources Division’s (ENRD) automated information technology systems for over 25 years, Mr. Tayman is also regularly called upon to provide expert guidance for the development and deployment of major enterprise-wide department’s IT systems.  Just as the department turns to him for advice, insight and guidance, so do some of the world’s largest information technology equipment vendors and service providers.  As a result, ENRD and the department often see incredibly satisfying price tags on the products and services it procures, and technology solutions are often provided with extra care and concern when Mr. Tayman is involved in such acquisitions.

The second recipients of the Attorney General’s Award for Excellence in Information Technology are Supervisory IT Specialist Ray M. Jagels and IT Specialist Douglas L. Baus from the U.S. Marshals Service’s Justice Prisoner and Alien Transportation System, for the development of the innovative and complex JPATS System

Over an aggressive 19-month development cycle, the Justice Prisoner and Alien Transportation System (JPATS) Information Technology Team developed the innovative and complex JPATS Automated Routing and Scheduling System.  The team implemented the details of hundreds of JPATS trips and over 11,000 prisoner routes in the system, developed major customization of Oracle Transportation Management Software, and implemented complex data integration procedures between the Base Scheduling System and the Automated Routing and Scheduling System.  New user interface functions were created, and a comprehensive training program was developed to successfully address a significantly re-engineered business process.  At the close of fiscal year 2013, the use of this program succeeded in exceeding target goals by supporting improvements in scheduler productivity, and by enhancing operational performance that resulted in an overall savings of $11.1 million for the department.

The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security recognizes outstanding achievements and contributions in protecting U.S. national security.  One Excellence in Furthering the Interests of U.S. National Security Award is presented this year for exemplary service in the operation of a national online counterterrorism program.  Through innovative online targeting strategies and creative use of technology, Terror Net is a key contributor to the FBI’s mission to protect the U.S. from terrorist attack.  Terror Net is a national online counterterrorism program operated by the FBI San Francisco Division.  It targets predicated subjects who use the Internet in furtherance of terrorist acts, and focuses on homegrown violent extremists (HVEs) who are difficult to identify and investigate through traditional methods.  The Terror Net team conducts online targeting of HVEs, both in the San Francisco Division and other FBI field offices which do not have their own resources or subject matter expertise to conduct this type of operation.  The Terror Net team is the preeminent FBI asset used to locate, engage, and disrupt terrorist threats emanating from the online realm.  Through fiscal year 2013 to present, Terror Net has conducted major counterterrorism disruptions against two subjects who attempted to conduct large scale vehicle bomb attacks on significant targets in the United States.  Terror Net is currently supporting 37 cases in 17 field offices, and has supported over 70 investigations in 25 field offices over time.

Award recipients include, from the FBI, San Francisco Field Office Special Agents James P. Colraine, Daniel R. Costin, Stephen V. Denitto, Kevin J. Gray, T.M. Ito, Steven A. Kornaros, Matthew Quick, Mike P. Stahala and Gregory Wuthrich; Sacramento Field Office Language Specialist Bassam Dib; Legat Singapore Supervisory Special Agent Sanjay Virmani; Counterterrorism Division Intelligence Analyst Sarah E. Marconi and Management and Program Analyst Melissa L. Willig.

The Attorney General’s Award for Equal Employment Opportunity is the department’s highest award for performance in support of the Equal Employment Opportunity program.  One Equal Employment Opportunity Award is presented this year for outstanding leadership and performance in equal employment opportunity and diversity in the Tax Division.  The Tax Division’s Attorney Diversity Subcommittee has made significant and long-lasting contributions to the division and the department in the areas of diversity, inclusion, and employee engagement.  The subcommittee developed concrete proposals to improve attorney hiring practices in the division; brought the Diversity and Inclusion Dialogue Project to the department; recommended changes to the division’s attorney worklife policies; fostered deeper relationships with department affinity groups; and hosted a number of thought-provoking, interesting and fun diversity and inclusion events for division employees.  The recipients each served as chair of this subcommittee and, as such, deserve to be recognized for their outstanding contributions to diversity and inclusion in the division and the department.

Award recipients include, from the Tax Division, in the Criminal Enforcement Section, Northern Region, Assistant Chief Karen Kelly; from the Civil Trial Section, Southern Region Assistant Chief David M. Katinsky; from the Office of Review, Section Chief Ann C. Reid; and from the Civil Trial Section, Eastern Region, Section Chief Deborah S. Meland.

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

 In the Paralegal Category, this year’s award for Excellence in Legal Support is presented to Paula C. Clinedinst, Paralegal Specialist for the Environment and Natural Resources Division’s Wildlife and Marine Resources Section for her sustained outstanding paralegal support to the ENRD Wildlife and Marine Resources Section.  Ms. Clinedinst is a key member of the Wildlife and Marine Resources team, superbly providing all facets of paralegal support, including cite-checking and proofing briefs; legal research; overseeing and tracking two high-volume litigation dockets; and training other paralegals.  For 25 years, she has gone above and beyond the call of duty time and again, and has delivered outstanding results for the division.  Moreover, her tireless efforts and dedication have ensured success in some of the division’s most important and difficult matters, including litigation related to the Navy’s use of sonar; the operation of the Federal Columbia River Power System; the listing of the polar bear as a threatened species under the Endangered Species Act; and California’s Central Valley Project.

 In the Legal Support Category, this year’s award for Excellence in Legal Support is presented to Gail P. Dallman, Legal Assistant for the Executive Office for U.S. Trustees’ Office of the U.S. Trustee - Region 11 for her outstanding and sustained dedication and contributions to the U.S. Trustee Program.  On her own initiative, Ms. Dallman worked to identify, test and implement the use of low-cost alternatives to the Public Access to Case Electronic Records (PACER) system.  Based on her success in converting offices in Region 11, the U.S. Trustee Program made PACER costs savings nationwide a priority for fiscal year 2014, and Ms. Dallman is playing an important role in that effort.  She serves as one of the field leads on the CourtLink Working Group, adapted the PowerPoint tutorial she developed for her region for use on a national level, and assisted in drafting frequently asked questions and answers for new users.  She also fields questions and provides assistance to staff from around the country as they work to implement this new system in their offices.  As a result of the efforts started by Ms. Dallman, the U.S. Trustee Program has already realized significant savings, and projects a drop in PACER costs of at least $750,000 in fiscal year 2014.

The Attorney General’s Award for Excellence in Administrative Support recognizes outstanding performance in administrative or managerial support by an administrative employee or secretary. Two Excellence in Administrative Support Awards are presented this year.

 In the Administrative Category, this year’s award for Excellence in Administrative Support is presented to Staci A. Card, Contract Specialist for the Federal Bureau of Prisons’ Federal Correctional Institution in Otisville, New York, for her outstanding work in her contracting efforts for the Electronics Business Group of Federal Prison Industries (FPI).  Her expertise, attention to detail and innovative thinking have directly resulted in the realization of numerous renewable energy projects, benefitting FPI and federal agencies in their quest to become more energy efficient.  Ms. Card’s devotion to duty is in keeping with the highest standards of the agency, and reflects great credit upon herself, the Federal Bureau of Prisons and the department.

In the Secretarial Category, this year’s award for Excellence in Administrative Support is presented to Renee L. Robinson, Information Technology Specialist for the U.S. Attorney’s Office for the District of Alaska for her outstanding and sustained dedication and contributions to the U.S. Attorney’s Office for the District of Alaska.  Ms. Robinson is recognized for her indispensable contributions to the mission of the U.S. Attorney’s Office in multiple roles.  Besides her regular responsibilities as Information Technology Manager, Ms. Robinson developed and executed the Information Management, Records Management, Case Management and Property Accountability Programs for the U.S. Attorney’s Office and two branch offices in the District of Alaska.  She served as the Acting Administrative Officer while the position was vacant, and has ensured that docketing functions are accomplished while that position remains vacant.  Ms. Robinson can be counted on to perform any support task required in the office, and does so willingly, accurately, and professionally.  Her dedication reflects greatly upon herself, the U.S. Attorney’s Office and the department.

The Claudia J. Flynn Award for Professional Responsibility recognizes a department attorney who has made significant contributions in the area of professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that department attorneys carry out their duties in accordance with the rules of professional conduct.  This year’s award is presented to Paul M. O’Brien, Deputy Assistant Attorney General in the Criminal Division’s Office of the Assistant Attorney General for his significant contributions to the professional responsibility of department attorneys.  Mr. O’Brien has spent his 20-year career representing the interests of the department on challenging professional responsibility issues.  In his capacity as the Deputy Assistant Attorney General of the Criminal Division, he oversees the highly sensitive work of the Office of Enforcement Operations and the Public Integrity Section, and has led efforts to ensure that the department’s attorneys carry out their duties in accordance with the rules of professional conduct.  His improvements to the Electronic Surveillance Unit and the Freedom of Information Act (FOIA) Unit ensure that department attorneys have the tools, resources and knowledge to represent the interests of the United States while meeting their professional responsibility obligations.  Whether the issues involve particularly sensitive or challenging matters, or enhance department policy in the area of professional responsibility, Mr. O’Brien is highly respected by his colleagues as a dedicated leader who can be depended upon for his integrity, judgment and commitment to do the right thing in every circumstance.

The Attorney General’s Award for Outstanding Service in Freedom of Information Act Administration recognizes exceptional dedication and effort to the implementation of FOIA.  The president’s Open Government Directive and the Attorney General’s FOIA Guidelines prioritize the need for the government to incorporate information technology into FOIA processing when responding to requests for information.  The Civil Division’s FOIA Unit developed a groundbreaking program that successfully increased the efficiency and timeliness, while decreasing the cost, of responding to FOIA requests.  In just one fiscal year, the recipients successfully transformed workflows and applied information technology typically used in litigation to the FOIA search, review, and response process.  Using these new methods, in fiscal year 2013 the team reduced the division’s request backlog by more than 50 percent, while receiving six percent more requests than the previous year.  Using new processes and technology the team completed 33 percent more requests than in fiscal year 2012.  The success of the team is attributable to its expertise and dedication to the president’s open government priorities.  Through its efforts, the recipients created a technologically innovative FOIA system that advances the president’s and the Attorney General’s goals of providing faster and more complete responses to requests for information by the public.

Award recipients include, from the Civil Division’s Office of the Assistant Attorney General, Senior Supervisory FOIA Counsels Angie E. Cecil and James M. Kovakas; Director of the Office of Litigation Support Joshua P. Wood; and Office of Management Programs Senior Litigation Support Professional Tammy L. Walmsley for their outstanding and sustained dedication and contributions to the department’s FOIA Program.

The Attorney General’s Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate and prosecute fraud, white-collar crimes and official corruption.  This team is honored for its exceptional perseverance, diligence and vision in the investigation, litigation and prosecution of allegations that Johnson & Johnson and two of its subsidiaries, Janssen and Scios, improperly promoted drugs, disregarded patient safety and paid kickbacks to enhance sales.  The resolution marks the culmination of an extensive, coordinated eight-year investigation.  The team’s extraordinary efforts resulted in three civil complaints and two criminal informations filed in the three different districts, and demonstrated an exemplary use of parallel proceedings.  More important, the team’s efforts resulted in Johnson & Johnson paying in excess of $2.2 billion to resolve criminal and civil liability arising from its illegal misbranding and fraudulent marketing of drugs to vulnerable populations such as the elderly, children and those with developmental disabilities, and its payment of kickbacks to physicians and the nation’s largest long-term care pharmacy provider.  The global resolution is the third largest health care fraud settlement in U.S. history, and with respect to Risperdal, the resolution is the largest settlement for one drug.

Award recipients include, from the U.S. Attorney’s Office for the Eastern District of Pennsylvania, Deputy Chief for Affirmative Civil Litigation Mary Catherine Frye; and Assistant U.S. Attorneys Scott M. Cullen, Charlene Keller Fuller and Albers S. Glenn; from the U.S. Attorney’s Office for the Northern District of California, Assistant U.S. Attorneys Thomas R. Green and Sara Winslow; from the from the U.S. Attorney’s Office for the Southern District of Florida, Assistant U.S. Attorney Kevin James Larsen; from the U.S. Attorney’s Office for the District of Massachusetts, Assistant U.S. Attorneys George B. Henderson III and Gregg David Shapiro; and from the Civil Division’s Commercial Litigation Branch Fraud Section, Senior Trial Counsel Laurie A. Oberembt; Senior Counsel for Healthcare Fraud Edward C. Crooke; and Trial Attorneys Jennifer L. Cihon, Kimberly I. Friday, Patrick M. Klein II and Renée S. Orleans.

The Attorney General’s Award for Outstanding Contributions to Community Partnerships for Public Safety recognizes outstanding achievement in the development and support of community partnerships designed to address public safety within a community. The award recognizes the significant contributions of citizens and organizations that have assisted the department in the accomplishment of these programs.

 This year’s Outstanding Contribution to Community Partnerships for Public Safety Award is presented to the team who performed exceptional work to address solutions to the active shooter epidemic.  This team focused on two major collaborative efforts: working with Executive Branch members to create a singular national voice addressing potential solutions to the active shooter problem; and working with law enforcement nationally to share best practices and lessons learned.  To accomplish the first task, the recipients began what became six months of nearly-daily meetings with representatives from Executive Branch agencies.  President Obama had asked the working group to focus first on creating guides for schools, institutions of higher learning, and houses of worship which would be used to develop comprehensive Emergency Operations Plans.  From the first meeting led by the Vice President’s Office, it became clear that each working group member brought his or her own agencies varied priorities and responsibilities.  Out of intense and productive discussions, three distinct 100-page guides were written, vetted, and approved by the Executive Branch agencies.  When the documents were released by Vice President Biden during a July 2013 press conference, it marked the first time a collaborative effort had resulted in Federal agency collaboration on emergency planning guides.  The guides provide practical advice on how to work with students, teachers and administrators on ways to prevent and intercede before an active shooter incident happens, and how to react and respond when it does.  The second effort undertaken by the team focused on finding a practical way to share with 800,000 law enforcement officers better ways to predict and respond to active shooter incidents.  The team designed a three-tiered approach to this task.  First, the team worked with the department’s Bureau of Justice Assistance and Texas State University to adopt a national response protocol for law enforcement.  Second, the team developed materials for a two-day conference, hosted by FBI field office personnel to bring lessons learned and best practices to the chiefs, sheriffs, and commanders on the scenes of these incidents.  Finally, the team developed tabletop exercises specific to schools and universities to bring law enforcement and first responders together to discuss how they would handle an active shooter incident in their territory.

Award recipients include, from the FBI’s Washington Field Office, Office of the Director Supervisory Special Agent Michael McElhenny; Resource Planning Office Special Advisor Kathryn M. Crotts; Critical Incident Response Group Supervisory Special Agent Katherine W. Schweit; and Public Affairs Specialist Andrew C. Ames; from the Department of California Highway Patrol, Lieutenant David William Knoff.

The Cubby Dorsey Award for Outstanding Contributions by a Wage Grade System Employee recognizes extraordinary performance and contributions by wage grade system employees, including laborers, mechanics, and skilled craft workers.  One Cubby Dorsey Award for Outstanding Service by a Federal Wage Grade System Employee is presented this year to Michael Grigsby, HVAC Supervisor Federal Bureau of Prisons Federal Prison Camp (FPC) in Montgomery, Alabama.

Mr. Grigsby is honored for his outstanding leadership and dedication to FPC Montgomery for the past 16 years.  His knowledge and fortitude to research the most cost effective methods for repairing projects at an institution which opened in 1930 continues to exceed expectations.  Mr. Grigsby supervises the plumbing, electrical, and HVAC details at the facility.  Additionally, he works closely with Maxwell Air Force Base personnel, and continues to exemplify a very positive partnership with the local community.  Mr. Grigsby handles institution emergencies regarding facility concerns in his area of expertise with outstanding efficiency.  His ownership of projects assigned to him are reflective of his determination to ensure the best solution for a long term resolution are utilized, as well as always researching the most cost effective methods.  Mr. Grigsby is viewed as a leader among his peers, and his reputation is that of a great historian to FPC Montgomery.

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

The first Contribution by a New Employee Award is presented to Regina Kline, Trial Attorney in the Civil Rights Division’s Disability Rights Section, for her exemplary work in the division.  As the driving force behind the precedent-setting U.S. v. Rhode Island and City of Providence (Rhode Island) sheltered workshop lawsuit filed by the Civil Rights Division, Ms. Kline has distinguished herself as an extraordinarily dedicated and effective advocate for the United States.  Through her outstanding oral and written advocacy, a groundbreaking settlement was achieved in the case, the first agreement to apply the Americans with Disabilities Act (ADA) integration mandate in a comprehensive manner to state and local employment service systems for persons with disabilities.  Olmstead v. LC (Olmstead) has been called the Brown v. Board of Education of the disability rights movement, and Olmstead enforcement has been a top priority for the department.  Although many of the department’s cases involve the unnecessary segregation of people with disabilities in residential institutions, Ms. Kline’s work in Rhode Island expanded this work to look beyond just where people live, to examine how people live.  The results obtained by Ms. Kline in Rhode Island have played a pivotal role in leveraging the department’s Olmstead enforcement to bring about broad policy change, and have led to nationwide interest in addressing segregation in state employment services.  Although Ms. Kline has served as a trial attorney at the department for less than two years, she has also played a lead role in the United States’ intervention in Lane v. Kitzhaber, an ADA lawsuit challenging the state of Oregon’s over-reliance on segregated employment services settings for people with disabilities. 

The second and final Contribution by a New Employee Award is presented to Ashley Altshuler, Assistant U.S. Attorney for the Western District of Oklahoma, for his exceptional performance in support of the DOJ Project Safe Neighborhoods, Project Sentry and Offender Reentry Initiatives.  Since his hiring, Mr. Altshuler has exceptionally performed his duties in support of the department’s Project Safe Neighborhoods, Project Sentry and offender reentry initiatives.  He has taken the initiative to make reentry a priority, and led his U.S. Attorney’s Office’s efforts, even though he has been an Assistant U.S. Attorney for less than three years.  His creation and development of the Probationer and Parolee Reentry Program has made the Western District of Oklahoma safer.  Mr. Altshuler has also established a research partnership with a local university to study the effectiveness of the reentry program.

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

The first John Marshall Award for Trial of Litigation is presented to John O. Holm, Erika B. Kranz and Kristin R. Muenzen, Trial Attorneys in the Environment and Natural Resources Division’s Land Acquisition Section, for their exceptional work litigating the acquisition of land for the United Airlines Flight 93 Memorial.

The Flight 93 National Memorial Trial Team was responsible for litigating the acquisition of over 275 acres of land in Somerset County, Pennsylvania, where United Airlines Flight 93 crashed on Sept. 11, 2001.  The land was acquired to construct the Flight 93 National Memorial to honor the victims of this national tragedy.  The recipients were responsible for litigating this case and ensuring just compensation was paid to the former landowners.  The case involved extensive discovery, motion practice, settlement negotiations and a week-long trial during the most recent government shutdown.  On Dec. 9, 2013, the Land Commission issued a report finding that the fair market value of the subject property was $1.5 million, which was $21.7 million less than the valuation by the landowners’ appraiser.  As the result reflects, the Flight 93 Trial Team was successful at every stage of this litigation from the preparation of numerous successful motions that eliminated millions of dollars claimed by the landowners, to limiting the scope of evidence presented at a highly-contentious trial in which the team was able to undermine the testimony of an expert who is nationally recognized in the field of valuing similar, high-profile properties.  Through the team’s efforts, the United States and its taxpayers saved tens of millions of dollars, while ensuring that the necessary land was acquired to develop a national memorial to the victims of United Airlines Flight 93 who lost their lives on Sept. 11, 2001.

The second John Marshall Award for Trial of Litigation is presented to Joseph E. DePadilla, Benjamin L. Hatch and Brian J. Samuels, Assistant U.S. Attorneys in the U.S. Attorney’s Office for the Eastern District of Virginia, and Paul G. Casey, Trial Attorney in the National Security Division’s Counterterrorism Section, for their outstanding performance prosecuting 14 sea-based Somali pirates and one land-based Somali pirate leader for their role in the capture and murders of four Americans onboard the sailboat Quest.  These prosecutions resulted in two separate trials, U.S. v. Mohammad Saaili Shibin, and a two-month capital trial involving three defendants, U.S. v. Ahmed Muse Salad, Abukar Osman Beyle, and Shani Nurani Shiekh Abrar.  Shibin was the first Somali-based pirate leader ever brought to trial in the United States, and his case was the first time that U.S. piracy laws had ever been applied to a person who did not himself go onto the high seas to commit violent acts of piracy, but rather facilitated those acts from the relative safety of Somalia.  The recipients secured convictions on all counts and Shibin was sentenced to serve more than 12 life sentences.  In the Salad, et al. trial, the Attorney General directed the prosecution team to seek the death penalty for all three defendants who were found guilty on 26 counts of the indictment.  The jury determined that the defendants were eligible to receive the death penalty, and ultimately recommended sentences of life imprisonment.  The district court subsequently imposed 19 consecutive life sentences, two concurrent life sentences, and 360 months consecutive for each defendant.  This prosecution demonstrates the United States’ commitment to obtaining justice for victims of piracy affecting the United States and the international community, and it sends a strong message that Somali pirates and their land-based leaders are not beyond the reach of U.S. and international law.

The first John Marshall Award for Participation in Litigation is presented for exemplary dedication and contributions to assert government interest to guarantee right to counsel for indigent defendants.  In the 50 years since the landmark U.S. Supreme Court decision in Gideon v. Wainwright  guaranteeing the Sixth Amendment right to counsel for indigent defendants, the department had spoken about the indigent defense crisis in America and provided leadership and grant-making to address it, but had never participated in litigation to contribute to assuring that all Americans facing criminal charges are guaranteed an attorney.  That changed in 2013, when a litigation team from the Access to Justice Initiative and the Civil Rights Division researched, crafted, and filed a statement of interest in the federal case of Wilbur v. City of Mount Vernon  asserting that the federal government has a strong interest in ensuring that all jurisdictions are fulfilling their obligations under Gideon.  The filing stated that in the event that the court found constitutional violations, workload limits for public defense providers should be imposed to better ensure quality representation for each client, and an independent monitor should be appointed to ensure compliance.  In December 2013, the Federal District Court Judge in Wilbur ruled that there had been a systematic deprivation of the right to counsel and ordered the appointment of an independent monitor.  The department’s participation in the case drew national attention and strengthened the department’s ongoing contribution to justice for all, including those who are unable to afford an attorney.

Award recipients include, from the Civil Rights Division’s Special Litigation Section, Chief Jonathan M. Smith and Trial Attorney Paul A. Killebrew; and Access to Justice Initiative Acting Senior Counselors Karen A. Lash and Deborah Leff; and Senior Counsels Jenni Katzman and Larry Kupers.

The second John Marshall Award for Participation in Litigation is presented for superior performance in the litigation and prosecution of Randolph Linn, the Islamic Center of Greater Toledo arsonist.  Award recipients include, from the U.S. Attorney’s Office for the Northern District of Ohio, Assistant U.S. Attorneys Bridget M. Brennan and Ava M. Rotell Dustin.  On Sept. 30, 2012, Linn, armed with gas cans and a handgun, set fire to the Islamic Center of Greater Toledo, the largest mosque in northwest Ohio.  This horrific act resulted in more than $1.4 million in damage, displaced the congregation and a full-time elementary school for over a year, and caused a wave of fear to spread throughout the Muslim community in the region.  Less than three months after the fire was set, the recipients skillfully negotiated a binding plea agreement resulting in Linn pleading guilty to damage to religious property, use of a fire to commit a felony and use of a firearm to commit a crime of violence.  On April 16, 2013, Linn was sentenced to serve 20 years in prison for these hate crimes.

The first John Marshall Award for Support of Litigation is presented for exceptional support to the National Labor Relations Board and the Consumer Financial Protection Bureau.   Award Recipients include, from the Office of the Assistant Attorney General for the Civil Division, Deputy Assistant Attorney General Beth S. Brinkmann; Appellate Counsel Scott R. McIntosh; and Appellate Staff Attorneys Melissa N. Patterson and Benjamin M. Shultz; and from the Office of the Solicitor General, Assistant to the Solicitor General Curtis E. Gannon.  This team is honored for providing exceptional support to the National Labor Relations Board in connection with the challenged validity of President Obama’s recess appointment of three board members, and to the Consumer Financial Protection Bureau in connection with the president’s appointment of its director.  The issues opened up multiple first-impression questions of constitutional law implicating the historical practices under the Recess Appointments Clause all the way back to the first president.  The recipients undertook an extraordinary effort, turning to the primary historical sources themselves, poring over original appointment records in the National Archives, the U.S. Department of State, the Library of Congress and other historical collections, and documented a substantial number of presidential recess appointments never before reported in any academic source or judicial decision.

The second John Marshall Award for Support of Litigation is presented to the Environment and Natural Resources Division’s Environmental Enforcement Section, Deputy Section Chief Ellen M. Mahan; Assistant Section Chief William D. Brighton; Senior Counsel Jerome W. MacLaughlin; Senior Attorneys Peter M. Flynn and Keith T. Tashima; and Trial Attorney Bradley L. Levine, for outstanding performance recovering funds for cleanup and restoration at the New Bedford Harbor PCB Superfund Site.  This team was instrumental in recovering $475 million for environmental cleanup and restoration of natural resources at the New Bedford Harbor polychlorinated biphenyls (PCBs) Superfund Site in Massachusetts.  Decades of industrial discharges spread PCB contamination across 18,000 acres of the harbor bottom.  PCB pollution threatens human health and interferes with a multi-generational tradition of fin and shell fishing in the harbor by local families, including families of Portuguese, Puerto Rican and Cape Verdean descent.  The money recovered will increase the pace and efficiency of the harbor cleanup.  This case procured a huge victory for the people of New Bedford and for the environment, and struck a blow for environmental justice.  It represents an outstanding achievement by this talented, determined and resourceful team of litigators.

The John Marshall Award for Handling of Appeals is presented to Deputy Chief Robert A. Parker of the Criminal Division’s Appellate Section, Criminal Division Attorney Christopher J. Smith; General Attorney Paula H. Wulff of the FBI’s Office of the General Counsel; Senior Counsel David J. Karp from the Office of Legal Policy; and from the Office of the Solicitor, Deputy Solicitor General Michael R. Dreeben, and General Assistant to the Solicitor General Elaine J. Goldenberg.  This team is recognized for its extraordinary work in successfully defending the interests of the United States before the U.S. Supreme Court in Maryland v. King.  In King, the court, by a narrow vote of five to four, upheld the right of federal and state law enforcement to collect DNA samples from arrestees for the purpose of generating identification profiles.  The importance of this decision cannot be overstated as it validates over two decades of efforts by Congress, state legislatures and federal and state law enforcement agencies to create a reliable national database of DNA identification profiles that can be used to identify criminal offenders, solve crimes and exonerate the innocent, all while rigorously protecting personal privacy.  The recipients worked together to brief and argue the case on behalf of the United States, and the Supreme Court majority’s opinion closely tracks the arguments they crafted.  Their efforts were crucial to the outcome of this case, and will have far-reaching effects on the ability of federal, state and local enforcement agencies to identify offenders and solve crimes. 

The John Marshall Award for Providing Legal Advice is presented to John T. Lynch Jr., Chief of the Criminal Division’s Computer Crime and Intellectual Property Section, for his dedicated service and outstanding leadership of the Criminal Division’s Computer Crime and Intellectual Property Section.  Mr. Lynch is a leader in one of the department’s most prominent areas of concern, and his expert, tireless and professional work as Chief of the Criminal Division’s Computer Crime and Intellectual Property Section has furthered the department’s mission at every stage.  From the highest levels of the department and throughout the law enforcement community, anyone who confronts complex issues involving computer crime or cyber threats knows and relies upon Mr. Lynch and the people that he leads.  From providing expert advice on hacking cases, protecting intellectual property rights, and guiding the department’s position on crucial legislative and policy initiatives, Mr. Lynch has served the government with the highest commitment and level of professionalism.

 The John Marshall Award for Preparation or Handling of Legislation is presented to Deputy Director Michelle Morales and Attorney Janis Kockritz from the Criminal Division’s Office of Policy and Legislation for their exceptional work in conceptualizing, planning and completing the DOJ Review of Federal Firearm Prohibitors Report.  The report was commissioned by President Obama following the murder of 20 first graders and six adult staff members at the Sandy Hook Elementary School in Newtown, Connecticut.  The team’s exhaustive work resulted in a comprehensive report that examines how the current prohibitors are applied in practice to prevent certain categories of persons from obtaining and/or possessing firearms; identifies statutory, regulatory and operational gaps or weaknesses in the existing prohibitors; and presents legislative and executive policy options for modifying or enhancing the prohibitors to make them more effective in preventing potentially dangerous individuals from having guns.  The report is a major contribution to department’s understanding of the role, application and realities of the federal firearm prohibitors in federal law enforcement, and marks a notable advancement for the Criminal Division in legal and policy analysis.

The John Marshall Award for Asset Forfeiture is presented to Assistant U.S. Attorneys Arlo Devlin-Brown, Christopher D. Frey, Randall Wade Jackson, Paul M. Monteleoni, Matthew L. Schwartz and John T. Zach for the U.S. Attorney’s Office for the Southern District of New York; and Assistant U.S. Attorney Barbara A. Ward of the U.S. Attorney’s Office for the District of New Jersey.  This team is responsible for the investigation and prosecution of various cases stemming from the collapse of Bernard L. Madoff Investment Securities, which was revealed in December 2008 to be the largest Ponzi scheme in history.  In the five years since Bernard Madoff was arrested for orchestrating his massive Ponzi scheme, the team conducted an international investigation that resulted in the prosecution of more than a dozen individuals; a deferred prosecution agreement with JPMorgan Chase Bank; and the forfeiture and collection of more than $4 billion.  The forfeited funds are being distributed through the largest and most ambitious remission project in the department’s history, where it will reach thousands of victims in dozens of countries, and serve as a precedent for future large-scale remission programs.  The team’s extraordinary work, including its novel use of forfeiture, has ensured a meaningful measure of recompense to thousands of innocent victims who otherwise would not have recovered anything from the failed investments.

The John Marshall Award for Alternative Dispute Resolution is presented to the Environment and Natural Resources Division’s Natural Resources Section Assistant Section Chief Keith E. Saxe and Senior Attorneys Stephen G. Bartell and Thomas K. Snodgrass for their outstanding professional achievement for the protection of ecosystems in Juab County, Utah.  This team is honored for its exemplary work in the management of litigation involving claims brought under the Quiet Title Act for highway rights-of-way, and the negotiation of a creative three-sided resolution of the first of dozens of lawsuits involving highway rights-of-way claims that threaten the federal government’s ability to manage federal lands in the western United States.  The settlement provides for the protection of important ecosystems in a remote area of Juab County in Utah, designated as the Deep Creek Mountains Wilderness Study Area, which is known for its beauty and impressive geologic formations.  The agreement balances the protection of the lands with limited access to these remote areas for recreational purposes.  The settlement is historic in identifying an approach to resolving a flood of litigation that could severely drain the resources of the department and its client land-management agencies.  The negotiation was a model of cooperation among federal, state and local governments, as well as environmental interests, and set a foundation of good will on which to build further agreement and resolutions.

The John Marshall Award for Interagency Cooperation in Support of Litigation is presented to Robert A. Kaplan, Regional Counsel for Region 5 of the U.S. Environmental Protection Agency (EPA) for his outstanding work managing EPA’s largest regional enforcement program.  As the chief attorney overseeing the EPA’s largest and most successful regional enforcement program, Mr. Kaplan is recognized for his unrelenting efforts to support the environmental enforcement litigation that the department pursues on EPA’s behalf.  In fiscal year 2013, the Office of Regional Counsel overseen by Mr. Kaplan led all 10 EPA regions in the number of civil litigation referrals to the department, the number of civil judicial matters concluded, the total dollar value of injunctive relief and supplemental environmental projects obtained in their cases, and the total amount of air pollution reduced through enforcement efforts.  These results were enabled in large part by Mr. Kaplan’s leadership and initiatives promoting joint priority-setting by EPA and the department; the efficient deployment of enforcement resources; and the active oversight and support of the case development work, negotiations and litigation undertaken by the assigned case teams.

Attorney General Eric Holder announced on Wednesday that Vanita Gupta will serve as Principal Deputy Assistant Attorney General and Acting Assistant Attorney General for the Civil Rights Division. 

Gupta succeeds Molly Moran, who will become Principal Deputy Associate Attorney General.

“Vanita has spent her entire career working to ensure that our nation lives up to its promise of equal justice for all,” said Attorney General Holder.  “Even as she has done trailblazing work as a civil rights lawyer, Vanita is also known as a unifier and consensus builder.  She has a knack for bridging differences and building coalitions to drive progress.  I am certain that Vanita will serve as a sound steward of this critical division, continuing the exemplary work that Molly Moran, Jocelyn Samuels and Tom Perez, have so ably led.”

Prior to joining the department, Gupta served as Deputy Legal Director of the American Civil Liberties Union and Director of its Center for Justice.  Previously, she was an attorney for its Racial Justice Program.  Over her career, Gupta has earned a reputation for working closely and collaboratively with law enforcement, departments of corrections and across the political spectrum to advance smart policing and criminal justice reforms.  Through her work with the ACLU, she has been involved in reform initiatives around the country pertaining to federal and state policing, sentencing, drug policy and criminal law.  Her recent work has focused on building a bipartisan consensus to end overreliance on incarceration.

Gupta began her career as a lawyer with the NAACP Legal Defense and Educational Fund.  In addition to her work with the ACLU and NAACP Legal Defense Fund, Gupta has taught civil rights litigation and advocacy clinics at New York University School of Law since 2008.  She received a B.A., magna cum laude, from Yale University and J.D. from New York University School of Law. 

Her first case involved leading an effort to win the release of 35 defendants in Tulia, Texas, whose drug convictions and lengthy sentences were discredited by the work of Gupta and the legal team of private bar attorneys she organized.  All of the defendants were eventually pardoned in 2003 by Governor Rick Perry, and she helped to negotiate a $6 million settlement for those arrested.

Gupta begins at the department on Monday, Oct. 20.

The Attorney General also announced that Molly Moran will become Principal Deputy Associate Attorney General in Acting Associate Attorney General Stuart F. Delery’s office. 

“Molly Moran stepped in to lead the Civil Rights Division at my request and she has led the division through some unprecedented challenges,” said Attorney General Holder.  “During a time of transition for the division, Molly provided stability and leadership.  From Ferguson, Missouri to voting rights cases in Texas, North Carolina and beyond, the division has continued its critical work on behalf of the American people with the benefit of Molly’s wise counsel, thoughtful leadership and tireless advocacy.  Fortunately for the country, the department and I will be able to continue to rely on Molly’s talents for the foreseeable future as Principal Deputy Associate Attorney General.”

Since becoming Acting Assistant Attorney General for the Civil Rights Division, Moran has provided stability and leadership to the division during one of its most high profile periods.  Stepping into the role as Acting Assistant Attorney General just before the shooting of Michael Brown by a Ferguson Missouri Police Officer, Moran has overseen the ongoing civil rights investigation into the shooting and opened a civil pattern or practice investigation into the operations of the Ferguson Police Department.  In September, the division filed a statement of interest in Hurrell-Harring et al. v. New York regarding the standards for indigent defense provided by the state—only the second time the division has weighed in on a state level case on right to counsel.  Following a September 2014 trial, the department won its first Voting Rights Act case since the Supreme Court’s Shelby v. Holder ruling.  In the case, which challenged the Texas voter ID law, the court agreed with the department’s position that the law is discriminatory in both effect and intent.

 

A federal court in Montgomery, Alabama, has permanently barred a Montgomery tax preparer from preparing federal tax returns for others, the Justice Department announced today.

The complaint alleged that Jenika Williams prepared returns that falsely claimed or inflated taxpayers’ income tax refunds by using social security numbers and other identifying information of third parties to falsely claim dependents in order to overstate the taxpayers’ claim to the Earned Income Tax Credit.

Williams, the suit alleges, previously pleaded guilty to conspiracy to defraud the United States, wire fraud and aggravated identity theft.  Altogether, the loss to the U.S. Treasury from Williams’ activities may exceed $1 million.  The permanent injunction was entered by U.S. District Judge W. Keith Watkins for the Middle District of Alabama after Williams failed to respond to the lawsuit.

Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2014.  The IRS has some tips on their website for choosing a tax preparer.  In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers.  Information about these cases is available on the Justice Department website.

Related Materials:

United States v. Tonja Renee Toney, et al.
Permanent Injunction Against Jenika Williams

The Justice Department announced that it has entered into a comprehensive settlement agreement with the Falcon School District 49 in Colorado Springs, Colorado, to resolve complaints about the district’s response to racial harassment and discrimination in its schools.    

The agreement will continue for at least three years and replaces a settlement agreement reached by the parties in 2010 which addressed similar issues. The agreement requires the district to take affirmative steps to eliminate and prevent racial harassment and discrimination in schools.  Specifically, the district agrees to:

• revise its policies and procedures on harassment and discrimination;
• maintain adequate records of all incidents of racial harassment and discrimination;
• analyze incidents of racial harassment and discrimination to ensure that all incidents are properly identified, investigated, and resolved;
• train staff in preventing and responding to harassment and discrimination;
• provide training to students to prevent and address harassment and discrimination;
• include restorative justice techniques and positive behavior interventions and supports in the district’s disciplinary responses to incidents of harassment and discrimination; and
• hire a consultant to identify any additional measures the district should take to effectively address, prevent, and respond to harassment and discrimination.

“We applaud the Falcon School District 49 for working cooperatively with the Department of Justice to resolve this matter and ensure that all students can attend school without fear of harassment or discrimination from their peers,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.

The enforcement of Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, sex and religion in public schools, is a top priority of the Justice Department’s Civil Rights Division.  Additional information about the Civil Rights Division of the Justice Department is available on its website at www.justice.gov/crt. 

A Florida managing member of a shell company pleaded guilty today in federal court in Tampa, Florida, for his role in a multi-million dollar health care fraud and money laundering scheme. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.

Gregory J. Sylvestri, 44, formerly of Lake Worth, Florida, pleaded guilty in the U.S. District Court for the Middle District of Florida to two charges related to money laundering of health care fraud proceeds.  His sentencing date will be set by the court at a later date.  In his plea agreement, Sylvestri agreed to the forfeiture of a $60,000 platinum and diamond engagement ring that he purchased with health care fraud proceeds.

According to his plea agreement, from June 2010 through April 2014, Sylvestri’s co-conspirators submitted over $12 million in fraudulent claims to Medicare through three purported health clinics, Cornerstone Health Specialists of Lakeland, Florida, Summit Health Specialists P.L. of Tampa, and Coastal Health Specialists LLC of Lakeland and Melbourne, Florida.  These fraudulent claims included claims resulting from illegal kickback arrangements and claims for radiology, audiology, neurology and cardiology services that were never rendered.  In fact, some of the services were purportedly provided to Medicare beneficiaries who had died before the supposed date of service.  Medicare paid over $2,500,000 in reimbursement on the fraudulent claims. 

Sylvestri admitted that he and his co-conspirators used bank accounts for the clinics and shell companies, including his shell company, BONB LLC, aka BioScan, to conceal and disburse the fraud proceeds.   

Four other defendants were indicted in this case on health care fraud and money laundering charges.  In addition to Sylvestri, one of the other defendants has pleaded guilty.  The remaining three defendants are scheduled for a jury trial in April 2015.  An indictment is merely an accusation, and the 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 and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida.  This case is being prosecuted by Trial Attorney Christopher J. Hunter 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 2,000 defendants who have collectively billed the Medicare program for more than $6 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.

Attorney General Eric Holder, along with Deputy Attorney General James M. Cole, announced today that the Department of Justice will no longer ask criminal defendants who plead guilty to waive their right to bring future claims of ineffective assistance of counsel.  The new policy bolsters the department’s commitment to ensuring that individuals are ably represented as they face criminal charges and marks the Attorney General’s latest step to reform the criminal justice system.

“Everyone in this country who faces criminal legal action deserves the opportunity to make decisions with the assistance of effective legal counsel,” said Attorney General Holder.  “Under this policy, no defendant will have to forego their right to able representation in the course of pleading guilty to a crime.  I am confident in the ability of our outstanding prosecutors to ably and successfully perform their duties without the use of these waivers, as the vast majority of them already do.  Moving forward, I am certain that this more consistent policy will help to bring our system of justice closer in line with our most fundamental values and highest ideals.”

“This new policy reaffirms the commitment by the department’s prosecutors to protecting the right to counsel and enhancing due process,” said Deputy Attorney General Cole.  “As reflected in our recent intervention to secure greater public defender services in New York, the criminal justice system is best served when parties have competent and unbiased legal representation.”

Deputy Attorney General Cole unveiled the new policy through a memorandum to all federal prosecutors and through a conference call today.  Prior to today’s action, 35 of the department’s 94 U.S. Attorney’s Offices sought waivers of future claims that included claims of ineffective assistance of counsel.  While the department believes such waivers are legal and ethical, the new policy will create a uniform policy for all U.S. Attorneys to follow.

The memo directs federal prosecutors to no longer ask defendants to waive future claims of ineffective assistance of counsel in plea agreements.  It also instructs prosecutors to decline to enforce waivers that have already been signed in cases where defense counsel provided ineffective assistance resulting in prejudice or where the defendant’s ineffective assistance claim raises a serious issue that a court should resolve.

A federal grand jury in the District of Columbia returned a superseding indictment today charging Ahmed Abu Khatallah, aka Ahmed Mukatallah, with numerous additional offenses arising from his alleged participation in the Sept. 11 through 12, 2012, terrorist attacks in Benghazi, Libya, which resulted in the deaths of Ambassador J. Christopher Stevens and U.S. government personnel Sean Smith, Tyrone Woods and Glen Doherty.

Khatallah, 43, a Libyan national, was initially indicted on June 26, 2014, on the charge of conspiracy to provide material support and resources to terrorists resulting in death.  That charge, which is included in the superseding indictment, carries a potential life sentence.  The superseding indictment includes a total of 17 new charges, including some that could be punishable by death.

“These additional charges reflect Ahmed Abu Khattalah’s integral role in the attack on U.S. facilities in Benghazi, which led to the deaths of four brave Americans,” said Attorney General Eric Holder. “We will never relent in pursuing justice against those who commit heinous acts of terrorism against the United States. Those who would do harm to our citizens—no matter how far away—should understand that our nation’s memory is long and our reach is far.” 

“This superseding indictment charges Ahmed Abu Khatallah for his role in the attacks on U.S. facilities in Benghazi, Libya that resulted in the deaths of four U.S. government personnel,” said Assistant Attorney General for National Security John Carlin.  “This case reminds us of the continued threat the United States faces abroad from terrorism, but it also highlights our resolve to find and hold terrorists accountable wherever they may hide.” 

“We have no higher priority than bringing to justice terrorists who kill U.S. citizens serving our country on foreign soil,” said U.S. Attorney Ronald C. Machen Jr. for the District of Columbia.  “With this 18-count indictment, a grand jury in our nation’s capital has charged Ahmed Abu Khatallah with the murders of four brave Americans in Benghazi.  We will press forward with our efforts to hold accountable all those who are responsible for this cowardly act.” 

“With additional charges being announced today, Ahmed Abu Khatallah’s role in the Benghazi attack is even clearer,” said Assistant Director in Charge George Venizelos of the FBI’s New York Field Office.  “As the charges allege, he was the leader of an extremist militia group who carried out this brutal act of violence that took the lives of four honorable Americans.  The Benghazi investigation remains one of the FBI’s top priorities and we will work tirelessly until all of those responsible are brought to justice.”

The superseding indictment describes Khatallah’s alleged role in the attacks at a U.S. diplomatic mission in Benghazi and a second U.S. facility there, known as the annex.  According to the superseding indictment, Khatallah was a leader of an extremist militia group and he conspired with others to attack the facilities, kill U.S. citizens, destroy buildings and other property, and plunder materials, including documents, maps and computers containing sensitive information.

The offenses that could carry death sentences include one count of murder of an internationally protected person; three counts of murder of an officer and employee of the United States; four counts of killing a person in the course of an attack on a federal facility involving the use of a firearm and a dangerous weapon; and two counts of maliciously damaging and destroying U.S. property by means of fire and an explosive causing death.

The seven other new charges in the superseding indictment include one count of providing material support and resources to terrorists resulting in death; three counts of attempted murder of an officer and employee of the United States; two counts of maliciously destroying and injuring dwellings and property, and placing lives in jeopardy within the special maritime and territorial jurisdiction of the United States, and attempting to do the same; and one count of using, carrying, brandishing and discharging a firearm during a crime of violence, which carries a mandatory minimum sentence of 30 years in prison.

Khatallah will be arraigned on the new charges at a hearing Oct. 20, 2014, before the Honorable Christopher R. Cooper in the U.S. District Court for the District of Columbia.  At an earlier hearing, he pleaded not guilty to the terrorism conspiracy charge.

The investigation is continuing.

According to the superseding indictment, Khatallah was the commander of Ubaydah Bin Jarrah (UBJ), an Islamist extremist militia in Benghazi, which had the goal of establishing Sharia law in Libya.  In approximately 2011, UBJ merged with Ansar al-Sharia (AAS), another Islamist extremist group in Libya with the same goal of establishing Sharia law in the country.  Khatallah was a Benghazi-based leader of AAS.

The attack at the diplomatic mission, which took place on the night of Sept. 11, 2012, led to the deaths of Ambassador Stevens and Smith, who was an Information Management Officer for the U.S. Department of State; a second State Department employee was injured in this violence.  The attack at the annex took place early Sept. 12, 2012.  Woods and Doherty, who were security officers working on the U.S. government’s behalf, were killed in the attack at the annex, and another security officer and a State Department employee were wounded in the violence there.

In June 2014, Khatallah was taken into custody, and he initially was charged in a criminal complaint that was filed under seal on July 15, 2013, which became public on June 17, 2014.  The earlier indictment became public on June 28, 2014, the date of his first court appearance.

An indictment is merely a formal allegation that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty. 

The case is being investigated by the FBI New York Field Office's Joint Terrorism Task Force with substantial assistance from various other government agencies.  The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the Counterterrorism Section of the National Security Division.

A former resident of Taiwan, who the United States has linked to the supply of weapons manufacturing machinery to North Korea, pleaded guilty today to conspiracy to violate U.S. regulations regarding the proliferation of weapons of mass destruction, announced Assistant Attorney General John Carlin for the National Security Division and U.S. Attorney Zachary T. Fardon for the Northern District of Illinois.  The defendant, Hsien Tai Tsai, admitted that he engaged in illegal business transactions involving the export of U.S. origin goods and machinery.

Tsai, 69, also known as “Alex Tsai,” was arrested in May 2013 in Tallinn, Estonia, and later was extradited to the United States, where he remains in federal custody.  

Tsai pleaded guilty to conspiracy to defraud the United States in its enforcement of regulations targeting proliferators of weapons of mass destruction before U.S. District Judge Charles Norgle in Federal Court in Chicago.  Sentencing was set for Dec. 5, 2014.  Tsai faces a maximum sentence of five years in prison and a $250,000 fine.  Under the terms of his plea agreement, the government will recommend a sentence of approximately 30 months in prison provided Tsai continues to fully cooperate with the United States.

According to court documents, Tsai was associated with at least three companies based in Taiwan – Global Interface Company Inc., Trans Merits Co. Ltd., and Trans Multi Mechanics Co. Ltd. – that purchased and then exported, and attempted to purchase and then export, from the United States and other countries machinery used to fabricate metals and other materials with a high degree of precision.

In January 2009, under Executive Order 13382 which sanctions proliferators of weapons of mass destruction and their supporters, the Treasury Department’s Office of Foreign Assets Control (OFAC) designated Tsai, Global Interface, and Trans Merits as proliferators of weapons of mass destruction, isolating them from the U.S. financial and commercial systems and prohibiting any person or company in the United States from knowingly engaging in any transaction or dealing with them.

The Treasury Department said at the time that Tsai was designated for providing, or attempting to provide, financial, technological, or other support for, or goods or services in support of the Korea Mining Development Trading Corporation (KOMID), which was designated as a proliferator by President George W. Bush in June 2005.  The Treasury Department asserted that Tsai “has been supplying goods with weapons production capabilities to KOMID and its subordinates since the late 1990s, and he has been involved in shipping items to North Korea that could be used to support North Korea’s advanced weapons program.”  The Treasury Department further said that Global Interface was designated “for being owned or controlled by Tsai,” who was a shareholder of the company and acted as its president.  Tsai was also the general manager of Trans Merits Co. Ltd., which was designated for being a subsidiary owned or controlled by Global Interface Company Inc.  http://www.treasury.gov/press-center/press-releases/Pages/hp1359.aspx

After the OFAC designations, Tsai and others allegedly continued to conduct business together, but attempted to hide Tsai’s and Trans Merit’s involvement in those transactions by conducting business under different company names, including Trans Multi Mechanics.  For example, by August 2009 – approximately eight months after the OFAC designations –Tsai and others allegedly began using Trans Multi Mechanics to purchase and export machinery on behalf of Trans Merits and Tsai.

In pleading guilty, Tsai admitted that in September 2009 he was involved in the purchase of a Bryant center hole grinder from a U.S. company based in suburban Chicago, and exported it to Taiwan using the company Trans Multi Mechanics.  A Bryant center hole grinder is a machine tool used to grind a center hole, with precisely smooth sides, through the length of a material.  Tsai also admitted a role in Trans Merits’ transaction involving LED road lights and an oil pump.

Charges remain pending against Tsai’s son, Yueh-Hsun Tsai, 37, of Glenview, Ill., also known as “Gary” Tsai.  He was released on bond after he was arrested in May 2013 and has pleaded not guilty.

The guilty plea was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Gary Hartwig, Special Agent-in-Charge of U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) in Chicago; and Ronald B. Orzel, Special Agent-in-Charge for the Chicago Field Office of the U.S. Department of Commerce, Bureau of Industry and Security, Office of Export Enforcement.  The Justice Department’s National Security Division and Office International Affairs assisted with the investigation.  The Estonian Internal Security Service and the Estonian Prosecutor’s Office cooperated with the United States.

The government is being represented by Assistant U.S. Attorney Brian Hayes and Justice Department Trial Attorney Brandon L. Van Grack.

The Department of Justice has reached a settlement of its civil forfeiture cases against assets in the United States owned by the Second Vice President of the Republic of Equatorial Guinea Teodoro Nguema Obiang Mangue that he purchased with the proceeds of corruption.     

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting Director Thomas S. Winkowski of U.S. Immigration and Customs and Enforcement made the announcement after the settlement was signed and lodged with the U.S. District Court for the Central District of California. 

“Through relentless embezzlement and extortion, Vice President Nguema Obiang shamelessly looted his government and shook down businesses in his country to support his lavish lifestyle, while many of his fellow citizens lived in extreme poverty,” said Assistant Attorney General Caldwell.  “After raking in millions in bribes and kickbacks, Nguema Obiang embarked on a corruption-fueled spending spree in the United States.  This settlement forces Nguema Obiang to relinquish assets worth an estimated $30 million, and prevents Nguema Obiang from hiding other stolen money in the United States, fulfilling the goals of our Kleptocracy Asset Recovery Initiative: to deny safe haven to the proceeds of large-scale foreign official corruption and recover those funds for the people harmed by the abuse of office.”

“While this settlement is certainly gratifying for the many investigators and prosecutors who worked tirelessly to bring it to fruition, it is undoubtedly even more rewarding for the people of Equatorial Guinea, knowing that at least some of the money plundered from their country’s coffers is being returned to them,” said Acting ICE Director Winkowski.  “ICE remains steadfast in its resolve to combat foreign corruption when the spoils of these crimes come to our shores and we are committed to seeking justice and compensation for the often impoverished victims.”

According to court documents, Nguema Obiang, the son of Equatorial Guinea’s President Teodoro Obiang Nguema Mbasogo, received an official government salary of less than $100,000 but used his position and influence as a government minister to amass more than $300 million worth of assets through corruption and money laundering, in violation of both Equatoguinean and U.S. law.  Through intermediaries and corporate entities, Nguema Obiang acquired numerous assets in the United States that he is agreeing to relinquish in a combination of forfeiture and divestment to a charity for the benefit of the people of Equatorial Guinea.

Under the terms of the settlement, Nguema Obiang must sell a $30 million mansion located in Malibu, California, a Ferrari automobile and various items of Michael Jackson memorabilia purchased with the proceeds of corruption.  Of those proceeds, $20 million will be given to a charitable organization to be used for the benefit of the people of Equatorial Guinea.  Another $10.3 million will be forfeited to the United States and will be used for the benefit of the people of Equatorial Guinea to the extent permitted by law.

Under the agreement, Nguema Obiang must also disclose and remove other assets he owns in the United States.  Nguema Obiang must also make a $1 million payment to the United States, representing the value of Michael Jackson memorabilia already removed from the United States for disbursement to the charitable organization.  The agreement also provides that if certain of Nguema Obiang’s other assets, including a Gulfstream Jet, are ever brought into the United States, they are subject to seizure and forfeiture.

Next week, the parties will request that the court enter appropriate orders to implement and enforce this agreement.

This case was brought under the Kleptocracy Asset Recovery Initiative by a team of dedicated prosecutors in the Criminal Division’s Asset Forfeiture and Money Laundering Section, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit the people harmed by these acts of corruption and abuse of office.  Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov.

The investigation was conducted by ICE, Homeland Security Investigation’s (HSI) Foreign Corruption Investigations Group and the HSI Asset Identification and Removal Group in Miami, with the assistance of the HSI Office of the Special Agent in Charge for Los Angeles, the HSI Attaché Office in Rome, HSI Attaché Office in Madrid, HSI Attaché Office in London and the HSI Attaché Office in Paris.  HSI established the FCIG in 2003 to conduct investigations into the laundering of proceeds emanating from foreign public corruption, bribery and embezzlement. The cases are worked jointly with representatives of the victimized foreign governments. The FCIG’s goal is to prevent foreign-derived, ill-gotten gains from entering the U.S. financial infrastructure; to seize assets identified in the U.S.; and to repatriate these funds to the victimized governments. Since the initiative’s launch, HSI has effected 220 seizures involving more than $146 million worth of property and assets.

The case was handled by Trial Attorneys Woo S. Lee, Stephen A. Gibbons, and Della G. Sentilles and Assistant Deputy Chief Daniel Claman of the Criminal Division’s Asset Forfeiture and Money Laundering Section, with substantial assistance from Assistant U.S. Attorney Steven Welk of the Central District of California.  The Criminal Division’s Office of International Affairs also provided significant assistance 

The department appreciates the extensive assistance provided by the Government of France in this investigation and prosecution. 

Obiang Settlement Agreement

The founder of Liberty Reserve, a virtual currency used by cybercriminals around the world to launder proceeds of their illegal activity, was extradited from Spain and arrived in the United States this afternoon.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Preet Bharara of the Southern District of New York made the announcement.

Arthur Budovsky, 40, a citizen of Costa Rica, was arrested in Spain in May 2013 after being indicted by a grand jury in the Southern District of New York.  Following his extradition by Spanish authorities, Budovsky arrived in New York this afternoon and will be presented before U.S. Magistrate Judge James C. Francis IV on Oct. 11, 2014, at 2:00 p.m.  Budovsky will be arraigned before U.S. District Judge Denise L. Cote on Oct. 14, 2014, at 12:45 p.m.

“Arthur Budovsky allegedly built Liberty Reserve overseas to provide the international underworld with a crime-friendly digital currency and elude the scrutiny of American authorities. He even renounced his U.S. citizenship to try to escape facing justice in an American courtroom,” said Assistant Attorney General Caldwell.  “With the cooperation of our foreign partners in Spain and elsewhere, this case and extradition are a clear example that money launderers can run, but they cannot hide from the Department of Justice.”

“For years, Arthur Budovsky allegedly enabled criminals in the United States and around the world to process illegal payments and to launder billions of dollars in crime proceeds through Liberty Reserve,” said U.S. Attorney Bharara.  “Budovsky operated Liberty Reserve from Costa Rica, hoping to evade the reach of U.S. law enforcement.  Thanks to the cooperative efforts of our law enforcement partners here and in Spain, he was apprehended and extradited to the United States where he will now face justice.”

According to allegations contained in the indictment and statements made in related court proceedings, Liberty Reserve was born out of Budovsky’s unsuccessful experience running a third-party exchange service, called Gold Age Inc., for another digital currency, called E-Gold. In or about 2006, Budovsky was convicted in New York State of operating Gold Age Inc. as an unlicensed money transmitting business.  In 2007, the operators of E-Gold were also charged with criminal offenses, including money laundering and operating an unlicensed money transmitting business, and subsequently ceased doing business.  In the wake of his own criminal conviction, Budovsky set about building a digital currency that would succeed in eluding law enforcement where E-Gold had failed, by, among other ways, locating the business outside the United States.  Accordingly, Budovsky emigrated to Costa Rica, where he and other defendants began operating Liberty Reserve.

Liberty Reserve, which billed itself as the Internet’s “largest payment processor and money transfer system,” was created, structured and operated to help users conduct illegal transactions anonymously and launder the proceeds of their crimes. The indictment alleges that Budovsky devoted himself to building and expanding Liberty Reserve so that the company could profit from attracting more and more criminal customers, all while seeking to evade the scrutiny and reach of U.S. law enforcement authorities. At all relevant times, Budovsky directed and supervised Liberty Reserve’s operations, finances, and corporate strategy.

Liberty Reserve emerged as one of the principal money transfer agents used by cybercriminals around the world to distribute, store, and launder the proceeds of their illegal activity.  Liberty Reserve was used extensively for illegal purposes, functioning as the bank of choice for the criminal underworld because it provided an infrastructure that enabled cybercriminals to conduct anonymous and untraceable financial transactions.  The indictment alleges that Budovsky was so committed to evading U.S. law enforcement that he formally renounced his U.S. citizenship in 2011 and became a Costa Rican citizen, telling U.S. immigration authorities that he was concerned that the “software” his “company” was developing “might open him up to liability in the U.S.”

Before being shut down by the U.S. government in May 2013, Liberty Reserve had more than one million users worldwide, including more than 200,000 users in the United States, who conducted approximately 55 million transactions through its system totaling more than $6 billion in funds.  These funds encompassed suspected proceeds of credit card fraud, identity theft, investment fraud, computer hacking, narcotics trafficking, and other crimes.

Budovsky is among seven individuals charged in the indictment, which was unsealed on May 28, 2013.  Four co-defendants – Vladimir Kats, Azzeddine el Amine, Mark Marmilev, and Maxim Chukharev – have pleaded guilty and await sentencing before U.S. District Judge Denise L. Cote.  Charges against Liberty Reserve and two individual defendants who have not been apprehended remain pending.

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

This case is being investigated by the U.S. Secret Service, the Internal Revenue Service-Criminal Investigation and the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, with assistance from the Secret Service’s New York Electronic Crimes Task Force.  The Judicial Investigation Organization in Costa Rica, the National High Tech Crime Unit in the Netherlands, the Financial and Economic Crime Unit of the Spanish National Police, the Cyber Crime Unit at the Swedish National Bureau of Investigation and the Swiss Federal Prosecutor’s Office also provided assistance. 

This case is being prosecuted jointly by the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the U.S. Attorney’s Office’s Complex Frauds Unit and Asset Forfeiture Unit in the Southern District of New York, with assistance from the Criminal Division’s Office of International Affairs and Computer Crime and Intellectual Property Section.

Trial Attorney Kevin Mosley of AFMLS and Assistant U.S. Attorneys Serrin Turner, Andrew Goldstein and Christine Magdo of the Southern District of New York are in charge of the prosecution, and Assistant U.S. Attorney Christine Magdo is in charge of the forfeiture aspects of the case.

Extendicare Health Services Inc. (Extendicare) and its subsidiary Progressive Step Corporation (ProStep) have agreed to pay $38 million to the United States and eight states to resolve allegations that Extendicare billed Medicare and Medicaid for materially substandard nursing services that were so deficient that they were effectively worthless and billed Medicare for medically unreasonable and unnecessary rehabilitation therapy services, the Justice Department and the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) jointly announced today.  This resolution is the largest failure of care settlement with a chain-wide skilled nursing facility in the department’s history.

As part of this settlement, Extendicare has also been required to enter into a five year chain-wide Corporate Integrity Agreement with HHS-OIG.  Extendicare is a Delaware corporation that, through its subsidiaries, operates 146 skilled nursing facilities in 11 states.  ProStep provides physical, speech, and occupational rehabilitation services. 

“Our seniors rely on the Medicare and Medicaid programs to provide them with quality care, ensuring that they are treated with dignity and respect when they are most vulnerable,” said Acting Associate Attorney General Stuart F. Delery.  “It is critically important that we confront nursing home operators who put their own economic gain ahead of the needs of their residents.  Operators who bill Medicare and Medicaid while failing to provide essential services or bill for services so grossly substandard as to be effectively worthless will be pursued for false claims.” 

This settlement resolves allegations that between 2007 and 2013, in 33 of its skilled nursing homes in eight states, Extendicare billed Medicare and Medicaid for materially substandard skilled nursing services and failed to provide care to its residents that met federal and state standards of care and regulatory requirements.  The government alleges, for example, that Extendicare failed to have a sufficient number of skilled nurses to adequately care for its skilled nursing residents; failed to provide adequate catheter care to some of the residents and failed to follow the appropriate protocols to prevent pressure ulcers or falls.  The eight states involved in this component of the settlement are Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, Washington and Wisconsin.   

“The continued viability of Medicare depends, in large part, on the honesty and integrity of the program participants,” said Acting Assistant Attorney General Joyce R. Branda for the Civil Division.  “Health care providers must make decisions regarding the level of services to be provided based solely on their patients’ clinical needs, and not corporate financial targets.”   

“This investigation and settlement highlights the importance of leveraging the joint resources and expertise of the states and federal government,” said Ohio Attorney General Mike DeWine.  “Working together allowed us to focus our efforts nationally on protecting the most vulnerable in our population who rely on quality care in our nursing homes.”

Additionally, this settlement resolves allegations that between 2007 and 2013, in 33 of its skilled nursing homes, Extendicare provided medically unreasonable and unnecessary rehabilitation therapy services to its Medicare Part A beneficiaries, particularly during the patients’ assessment reference periods, so that it could bill Medicare for those patients at the highest per diem rate possible.   

As a result of today’s settlement, the federal government will receive $32.3 million and the eight state Medicaid programs will receive $5.7 million.  The Medicaid program is funded jointly by the federal and state governments.  

“The United States remains committed to demanding the highest quality of care for nursing home and skilled facility residents,” said U.S. Attorney Carter M. Stewart for the Southern District of Ohio.  “We are proud of our efforts to work cooperatively with our partners at the Ohio Attorney General’s Medicaid Fraud Control Unit, as well as with other U.S. Attorney’s offices across the country.  We will remain vigilant in our efforts to combat healthcare fraud, especially when it impacts the most vulnerable in our society, including seniors and others requiring significant long term care.”

“Nursing home residents should not be subject to unreasonable or unnecessary rehabilitation therapy that is dictated by a company’s profits rather than patient needs,” said U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania.  “It is critical to the integrity of a system that benefits millions of Americans that we do as much as possible to hold accountable those who commit fraudulent acts.  The Eastern District of Pennsylvania will continue its efforts to prevent Medicare fraud and protect government beneficiaries.”

In addition, as part of this resolution, Extendicare and ProStep are required to enter into a five year chain-wide Corporate Integrity Agreement.  It is a priority of the OIG to investigate and pursue cases involving abuse or grossly deficient care of Medicare or Medicaid beneficiaries and to recommend improvements to the systems intended to promote quality of care.  To protect the Federal healthcare programs and its beneficiaries, OIG required Extendicare to agree to a Corporate Integrity Agreement under which Extendicare must have a comprehensive compliance program with systems to address the quality of resident care.  Extendicare’s compliance program must include, among other things, corporate-level committees to address compliance and quality, including a committee to assess staffing, and an internal audit program to assess the quality of care provided to its residents.  Extendicare must retain an independent monitor, selected by the OIG, who will regularly visit Extendicare’s facilities and report to the OIG.  In addition, an independent review organization will perform annual reviews of Extendicare’s claims to Medicare. 

“This case demonstrates that the government will aggressively pursue allegations of abuse and grossly deficient care,” said Inspector General Daniel R. Levinson of the U.S. Department of Health and Human Services.  “Our five-year corporate integrity agreement with Extendicare requires a government-selected quality of care monitor be retained by Extendicare, and additional rigorous provisions designed to ensure Extendicare provides appropriate staffing and monitors the quality of care provided to its residents.”  

Under the False Claims Act, private citizens, known as relators, can bring suit on behalf of the United States and share in any recovery.  Two relators brought separate cases against Extendicare.  Relator Tracy Lovvron will receive more than $1.8 million as her share of the recovery in the RUGS upcoding case, and Relator Donald Gallick will receive more than $250,000 as his share of the recovery in the Ohio worthless services case.

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $22.5 billion through False Claims Act cases, with more than $14.3 billion of that amount recovered in cases involving fraud against federal health care programs. 

The settlement was the result of a coordinated federal and state effort by the Civil Division, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the U.S. Attorney’s Office for the Southern District of Ohio, HHS-OIG and the Attorneys General for the states of Indiana, Kentucky, Michigan, Minnesota, Ohio, Pennsylvania, Washington and Wisconsin.  This investigation was also supported by the department’s Elder Justice Initiative, which coordinates the department’s activities combating elder abuse, neglect and financial exploitation, especially as they impact beneficiaries of Medicare, Medicaid and other federal health care programs.  Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice/.  

The two qui tam cases are docketed as United States ex rel. Lovvorn v. EHSI, et. al. C.A. 10-1580 (E.D. Pa) and United States ex rel. Gallick et al., v. EHSI et al., C.A. 2:13cv-092 (S.D. Ohio).  The claims resolved by the settlement are allegations only; there has been no determination of liability. 

The Boeing Company paid $23 million to resolve allegations that it submitted false claims for labor charges on maintenance contracts with the U.S. Air Force for the C-17 Globemaster aircraft, the Justice Department announced today.  Boeing, an aerospace and defense industry giant, is headquartered in Chicago.

“Today’s settlement demonstrates that the Justice Department vigilantly ensures that companies meet their contractual obligations and charge the government appropriately,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “Government contractors who seek illegal profit at the expense of taxpayers will face serious consequences.”

The government alleged that Boeing improperly charged labor costs under contracts with the Air Force for the maintenance and repair of C-17 Globemaster aircraft at Boeing’s Aerospace Support Center in San Antonio, Texas.  The C-17 Globemaster aircraft, which is both manufactured and maintained by Boeing, is one of the military’s major systems for transporting troops and cargo throughout the world.  The government alleged that the company knowingly and improperly billed a variety of labor costs in violation of applicable contract requirements, including for time its mechanics spent at meetings not directly related to the contracts.

“Defense contractors are required to obey strict accounting standards when submitting billing for work performed on government contracts,” said U.S. Attorney Robert Pitman for the Western District of Texas.  “The pursuit and favorable settlement of this civil litigation was the result of effective teamwork between the Justice Department and the investigative agencies.”

The settlement resolves allegations originally brought in a lawsuit by present and former Boeing employees Clinton Craddock, Fred Van Shoubrouek, Anthony Rico and Fernando de la Garza in federal court in San Antonio under the False Claims Act.  The act permits private parties to sue for false claims on behalf of the United States and to share in any recovery.  The individuals who filed the suit will receive $3,910,000 as their share of the settlement.

The settlement was the result of a coordinated effort by the Civil Division, the U.S. Attorney’s Office for the Western District of Texas, the Defense Criminal Investigative Service, the Air Force Office of Special Investigations, the Defense Contract Audit Agency and the Defense Contract Management Agency.

The case is United States ex rel. Craddock v. Boeing, Case No. SA-07-CA-0880FB (W.D. Tex.).  The claims resolved by the settlement are allegations only; there has been no determination of liability. 

WILMINGTON, Del. - Dmitry Ustinov, of Moscow, Russia, 53, was sentenced in U.S. District Court to 18 months in prison and 3 years supervised release, for conspiracy to export high-tech military technology, in violation of federal law, including the Arms Export Control Act (AECA) and the International Traffic in Arms Regulations (ITAR), announced Charles M. Oberly, III, U.S. Attorney for the District of Delaware yesterday afternoon.  Ustinov will be deported from the United States upon his release from federal prison.

Ustinov has been incarcerated since April 15, 2013, when he was arrested at the request of the U.S. Government in Vilnius, Lithuania after entering the country from Russia.  On August 23, 2013, Lithuania extradited Ustinov to the United States.  On July 10, 2013, Ustinov pled guilty to the conspiracy offense listed above.

According to court documents, between July 2010 and April 2013, Ustinov caused or attempted to cause the export of approximately seventeen different night vision devices and thermal imaging scopes, which are designated on the United States Munition List (USML) as defense articles, and are prohibited from export outside the United States. The defense articles at issue, including Insight Mini Thermal Monoculars, D-740 night vision scopes, and Flir Tau 640 thermal imaging cameras, are primarily used as weapons’ mounted or helmet mounted night vision devices, and in the case of the Flir Tau 640s, can even be mounted to fast moving vehicles or aircrafts, such as unmanned aerial vehicles. 

Given the sensitive nature of the defense articles at issue, Ustinov’s scheme was designed to avoid detection by law enforcement at each step in the process.  First, Ustinov worked closely with a United States-based straw purchaser to conceal his involvement at the point of sale.  Second, once a specific defense article was identified for purchase, Ustinov wired money to the straw purchaser to buy the defense article from front companies located in off-shore accounts in Cyprus.  Finally, Ustinov also caused the packages containing USML defense articles to be falsely labeled so that customs officials from the United States and other countries would be less likely to search the package.  Moreover, Ustinov also discussed using less traditional methods to obtain and export these night vision devices outside the United States, such as establishing a phony front company in the United States, and placing these high-tech devices inside chopped up car parts to conceal them from customs officials.  At no time, however, did Ustinov ever apply for or receive a license to export these devices from the U.S. Department of State.  

U.S. Attorney Oberly thanked U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their hard work, and stated, “No matter the distance we must travel or the nationality of the defendant, those individuals that want to profit themselves by unlawfully obtaining and exporting items designated by the United States as defense articles will be prosecuted.  It is important that we take all necessary steps to prevent our military technology from being exported and possibly used against our service members and our allies overseas.”

 “HSI will continue to deter individuals putting America's national security at risk by illegally exporting technology to prohibited countries,” said John P. Kelleghan, Special Agent in Charge of HSI Philadelphia. “Our longstanding commitment with our federal law enforcement partners to stop the illegal export of technology to prohibited countries underscores HSI’s determination to dismantle and disrupt any illegal scheme involving the illegal export of controlled military equipment.”

This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  It was prosecuted by Assistant United States Attorney Jamie M. McCall and Trial Attorney Mariclaire Rourke of the Counterespionage Section of the U.S. Department of Justice, National Security Division.  For further information, please contact AUSA McCall at 302-573-6079.

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ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant MARION MENDIOLA, was sentenced on October 7, 2014, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood.

Defendant Mendiola was sentenced to one month in jail and seven months home confinement and placed on three years supervised release for his part in a drug conspiracy case. On July 13, 2012, postal inspectors seized a first class letter containing 60 grams of methamphetamine, which was 98% pure.  The agents removed the meth and replaced it with ‘sham’ and delivered the letter to the defendant’s grandmother’s residence where defendant resided.

Agents observed defendant remove the letter from the mailbox and take it into the residence.  Shortly thereafter, agents entered the residence.  Defendant admitted he knew the letter contained methamphetamine.  He told agents his brother Eugene expected the letter. Agents arrested Eugene Mendiola who was sentenced on July 23, 2014 to 31 months in prison and five years supervised release.

This case is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.

Credit for the investigation is given to U.S. Postal Inspectors, Guam Customs and Quarantine and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  The case was handled by Assistant U.S. Attorney Clyde Lemons.

ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants JIMMY HSIEH, WILLIAM PEREZ AND PAULINE PEREZ who were convicted in a criminal conspiracy to conduct an illegal gambling business at the former MGM Spa in Tamuning, were sentenced on October 8, 2014.   Chief Judge Tydingco-Gatewood imposed a two year prison sentence for JIMMY HSIEH who had pled guilty to the gambling conspiracy and money laundering.  A $423,640.47 money judgment of forfeiture was also entered against HSIEH. HSIEH agreed to forfeit $178,113.45 from personal accounts and that three of his condos are subject to possible forfeiture proceedings, and was also ordered to pay a $100 special assessment.  HSIEH's personal accounts and an MGM corporate account had already been previously seized by Internal Revenue Service - Criminal Investigation agents with assistance from the FBI.

WILLIAM PEREZ, the manager and supervisor of the MGM poker operation in 2010, received a one year sentence (six months prison term and six months home confinement) and three years supervised release for conspiring to operate the illegal gambling business, by operating baccarat and poker games at the former MGM Spa.  PEREZ also was ordered to pay a $100 special assessment and $24,000 fine.

PAULINE PEREZ, who had pled guilty to participating in the gambling business, and substantially assisted the government in the prosecution of the case, received one year probation and community service.

U.S. Attorney Alicia A.G. Limtiaco stated, “These sentences and the federal forfeiture of almost half a million dollars reflect the  U.S. Attorney’s Office and Department of Justice’s commitment to prosecute those white-collar crimes, including illegal gambling businesses, money laundering and structuring offenses, where individuals evade currency transaction reporting requirements.”

The Criminal Investigation Division of the IRS, FBI and Naval Criminal Investigative Service supported the investigation and prosecution of this illegal gambling operation and related offenses. Assistant U.S. Attorney Karon Johnson (retired) was responsible for the prosecution of this case and Assistant U.S. Attorney B. Alcantara represented the U.S. Attorney's Office at the sentencing.  One more defendant, JENNIE PAU, will be sentenced on Thursday, October 16, 2014, at the District Court of Guam.

A warrant of arrest has been issued for the fifth co-defendant, WAI KAM HO, who is currently a fugitive as he never returned to Guam as ordered by the Court, and will be prosecuted to the full extent of the law when found. Anyone with information related to WAI KAM HO also known as KEN HO is encouraged to contact the FBI at (671) 472-7332.

Acting Assistant Attorney General Molly Moran for the Justice Department’s Civil Rights Division and U.S. Attorney Wifredo A. Ferrer for the Southern District of Florida announced today that Rafael Alberto Cadena-Sosa pleaded guilty in the Southern District of Florida to one count of conspiracy and one count of holding a person in involuntary servitude.  Cadena-Sosa faces a maximum sentence of 15 years in prison and a fine of $500,000.  Sentencing is scheduled to occur on Jan. 27, 2015, before United States District Judge Jose Martinez.  According to the terms of the plea agreement, the parties will recommend the maximum sentence of 15 years and over $1.26 million in restitution to the victims.

Cadena-Sosa, a 45 year-old Mexican national, pleaded guilty to holding the victim, a young, undocumented Mexican national, in involuntary servitude from 1996 to 1997, using beatings, rapes, threats of harm toward the victim and her family and threats of arrest to compel her to engage in prostitution to pay off a smuggling debt.  Cadena-Sosa also pleaded guilty to conspiring with other members of the Cadena organization to commit additional offenses in connection with the scheme.   

Sixteen defendants were charged in a superseding indictment filed in 1998.  Cadena-Sosa was arrested in Mexico and extradited to the United States in November 2013.  Four other family members have been convicted, including Cadena-Sosa’s uncle, Rogerio Cadena, who pleaded guilty in 1999 and was sentenced to 15 years; Cadena-Sosa’s brother, Abel Cadena-Sosa, who was convicted in Mexico and sentenced to 24 years, and two other brothers, Hugo and Juan Luis Cadena-Sosa, who pleaded guilty 2002 and 2008, and were sentenced to 5 years and 15 years, respectively.  Six other defendants have pleaded guilty in federal court in connection with the scheme, and one was convicted in state court for a murder outside a Cadena-run brothel. 

According to court records, the defendant and other members of the Cadena organization recruited young women and girls, some as young as fourteen, in Veracruz, Mexico, and lured them to the United States on false promises of legitimate jobs.  The defendants then smuggled the victims into the United States, imposed heavy smuggling debts, and compelled them into prostitution for twelve hours a day, six days a week, using brutal assaults, rapes and threats to control the victims and punish those who attempted to escape.

“No human being should have to endure the atrocities these young women and girls suffered at the hands of the Cadena organization,” said Acting Assistant Attorney General Moran.  “These violations of the victims’ individual rights and freedom are intolerable in a nation founded on rights, liberty, and the rule of law.  The Department of Justice will continue in its relentless efforts to bring human traffickers to justice and restore the rights and dignity of the courageous survivors of this crime.”

“Undoubtedly, sex trafficking is one the most serious crimes prosecuted by our Office and the Department of Justice,” said U.S. Attorney Ferrer.  “The heinous acts committed against these young women and girls by the Cadena organization simply cannot be tolerated, and we will continue to identify, arrest and prosecute those who seek to profit at the expense of the suffering of others.  The victims here are survivors and today’s plea represents one more step towards closure in a case that has taken them down a long road to justice.”

“Rafael Alberto Cadena-Sosa is a brutal criminal who threatened and coerced young victims into prostitution to pay off smuggling debts,” said FBI Special Agent in Charge George L. Pira of the FBI’s Miami Office.  “ He is now behind bars in large part due to the diligence and dedication of our many law enforcement partners who helped bring this case to justice.”

Acting Assistant Attorney General Moran and U.S. Attorney Ferrer commended the collaborative efforts of multiple law enforcement agencies throughout the investigation and prosecution, including the Federal Bureau of Investigation, the Department of Homeland Security’s Customs and Border Protection and Immigration and Customs Enforcement, the Bureau of Alcohol, Tobacco and Firearms, Florida Department of Law Enforcement, Palm Beach County Sheriff’s Office, West Palm Beach Police Department, Okeechobee County Sheriff’s Office, Fort Pierce Police Department, Avon Park Police Department, Boynton Beach Police Department and Lee County Sheriff’s Office.   They also thanked the Justice Department’s Office of International Affairs for its assistance with the extradition.  The case is being prosecuted by Assistant United States Attorney Adam McMichael and Trial Attorney Matthew Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit. 

ALICIA A.G. LIMTIACO, United States Attorney for Guam, announced that JIMMY ALONSO TURRUBIARTES, was sentenced on October 8, 2014, in the U.S. District Court of Guam by Chief Judge Frances Tydingco-Gatewood, to 57 months incarceration, five years of supervised release, and ordered to pay a $100 special assessment.

Defendant TURRUBIARTES pled guilty on September 11, 2013 to one count of Receipt of Child Pornography in violation of Title 18 U.S.C. Section 2252A(a)(2).  Defendant TURRUBIARTES utilized the peer to peer (P2P) network to receive approximately 150 movies which depict the sexual abuse of young children.  Defendant TURRUBIARTES was also ordered to register with the Sex Offender Registry wherever he lives, works or attends school.  He was also ordered to forfeit his computer and all storage devices.

U.S. Attorney Limtiaco states “Child pornography offenses involve the sexual abuse and exploitation of children.  These offenses are extremely serious because they result in perpetual harm to the child victims, and normalize the sexual exploitation of children. When the internet is utilized to obtain these images of child sexual abuse, the images can travel to offenders domestically and internationally anywhere in the world, to include the Pacific region.  The harm to victims is lifelong.  The U.S. Attorney’s Office remains committed to aggressively prosecute defendants who victimize and prey on children through any means, including by computer.”

The U.S. Attorney reminds defendants who have committed sexual abuse of children that, under federal and local law, all sex offenders have a duty to register and keep their registration current with the Sex Offender Registry in their jurisdiction.  Sex offenders who travel to Guam and who reside on Guam must inform the Guam Sex Offender Registry where they reside, work, or attend school - they must also periodically update their registration information.  The U.S. Attorney notes that the sex offender registry was created in order to protect the public by protecting victims, preventing further victimization and informing the public of the whereabouts of sex offenders.  Guam’s Sex Offender Registry can be found online at www.guamcourts.org.

This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood (PSC) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in the sexual victimization of children and adults, possess or receive child pornography, and sex offenders who fail to register with the jurisdiction’s Sex Offender Registry.

The investigation was conducted by the Naval Criminal Investigative Service.  The case was handled by Assistant U.S. Attorney R. San Nicolas.

Attorney General Eric Holder released the following statement late Thursday after a federal district court ruled in favor of the Justice Department's lawsuit against Texas' voter identification law:

"We are extremely heartened by the court's decision, which affirms our position that the Texas voter identification law unfairly and unnecessarily restricts access to the franchise. Even after the Voting Rights Act was seriously eroded last year, we vowed to continue enforcing the remaining portions of that statute as aggressively as possible. This ruling is an important vindication of those efforts.

"We are also pleased that the Supreme Court has refused to allow Wisconsin to implement its own restrictive voter identification law.

"This Department will never yield in its commitment to protecting that most sacred of Americans' rights - the right to vote."

A federal grand jury in Seattle returned a second superseding indictment late yesterday charging a Russian national with 11 additional counts and further detailing his alleged scheme to hack into businesses and steal credit card information for later sale over the Internet on “carding” websites. 

The now 40-count indictment alleges that Roman Valerevich Seleznev, aka “Track2,” 30, of Vladivostok, Russia, was involved in the theft and sale of more than 2 million credit card numbers.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Acting U.S. Attorney Annette L. Hayes of the Western District of Washington made the announcement.

“The additions in this superseding indictment show how cybercriminals use the Internet not only to infiltrate and steal sensitive data, but also to teach other criminals how to navigate the credit-card selling underworld and get equipment that can be used to defraud U.S. citizens,” said Assistant Attorney General Caldwell.  “The Criminal Division is committed to investigating these thefts and uncovering the methods of computer hackers to stay one step ahead of them and bring them to face justice.”

“The charges returned by the grand jury detail a criminal scheme that continued right up until Mr. Seleznev’s arrest in July,” said Acting U.S. Attorney Hayes.  “As set forth in the indictment, the government expects to prove at trial that Seleznev was a leader in the marketplace for stolen credit card numbers, and even created a website offering a tutorial on how to use stolen credit card numbers to commit crime.”

The indictment charges Seleznev with 11 counts of wire fraud, nine counts of intentional damage to a protected computer, nine counts of obtaining information from a protected computer, nine counts of possession of 15 or more unauthorized access devices and two counts of aggravated identity theft.  Seleznev is currently scheduled for trial on Nov. 3, 2014, and will be arraigned on the new charges sometime next week. 

According to court documents, between October 2009 and October 2013, Seleznev allegedly hacked into retail point of sale systems and installed malicious software to steal credit card numbers from various businesses.  Seleznev allegedly created and operated the infrastructure to facilitate the theft and sale of credit card data, used servers located all over the world to facilitate his operation, and sold stolen credit card data on a website known as “2pac.cc.”

Seleznev is also charged in a separate indictment in the District of Nevada with participating in a racketeer influenced corrupt organization (RICO) and conspiracy to engage in a racketeer influenced corrupt organization, as well as two counts of possession of 15 or more counterfeit and unauthorized access devices.  

The charges contained in the indictments 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.

The case is being investigated by the U.S. Secret Service Electronic Crimes Task Force, which includes detectives from the Seattle Police Department.  The case is being prosecuted by Trial Attorney Ethan Arenson of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorneys Norman M. Barbosa and Seth Wilkinson of the Western District of Washington.  The Office of International Affairs and the U.S. Attorney’s Office for the District of Guam provided substantial assistance in this case.

A former owner and manager of two Detroit-area home health care agencies has pleaded guilty in federal court for his role in a $22 million Medicare fraud conspiracy.   

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, Special Agent in Charge Paul M. Abbate of the FBI’s Detroit Field Office, Special Agent in Charge Lamont Pugh III of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Regional Office and Acting Special Agent in Charge Jarod Koopman of Internal Revenue Service, Criminal Investigation (IRS-CI) made the announcement.

Usman Butt, 40, of Shelby Township, Michigan, pleaded guilty before U.S. District Judge Bernard A. Friedman in the Eastern District of Michigan to conspiracy to commit health care fraud and aiding or assisting in preparing a fraudulent tax return on Aug. 27, 2014, and the case was unsealed today.  Sentencing has been scheduled for Jan. 13, 2015.  His plea follows that of his former business partner and co-conspirator, Muhammad Aamir, who pleaded guilty on Aug. 20, 2014.

According to plea documents, Butt admitted that beginning in 2008 and continuing through January 2013, he conspired with others to bill Medicare for home health care services that were not actually rendered, not medically necessary, and procured through paying illegal kickbacks.   

Specifically, Butt admitted that the physical therapy and skilled nursing services provided by his companies, Prestige Home Health Services Inc., based in Troy, Michigan, and Royal Home Health Care Inc., of Clawson and Troy, Michigan, were not medically necessary or even rendered.  Butt also admitted that he fabricated patient files to give the false appearance that the services were medically necessary and actually provided.    

During the scheme, Butt submitted or caused the submission of false claims to Medicare, which in turn caused Medicare to pay approximately $12,607,262.  According to court records, the conspiracy resulted in the submission of fraudulent claims that caused Medicare to pay more than $22 million.  Butt also admitted that he assisted a co-conspirator in filing a false corporate tax return for Prestige, deducting illegal kickbacks as “business expenses” to save Prestige at least $321,485 in taxes due for 2009.

This case was investigated by the FBI, HHS-OIG, and IRS-CI, 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 for the Eastern District of Michigan.  This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and James P. McDonald 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 2,000 defendants who have collectively billed the Medicare program for more than $6 billion.  In addition, the HHS Centers for Medicare and 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 Action Team (HEAT), go to: www.stopmedicarefraud.gov.

An indictment was unsealed today charging two managers and operators of three Los Angeles medical clinics with Medicare fraud and conspiracy to pay illegal kickbacks for medical procedures that were never actually provided.    

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Acting U.S. Attorney Stephanie Yonekura of the Central District of California; Special Agent in Charge Glenn R. Ferry of the Los Angeles Region of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) and Assistant Director in Charge Bill Lewis of the FBI’s Los Angeles Field Office made the announcement.

Hovik Simitian, 47, of Los Angeles, and Anahit Shatvoryan, 49, of Glendale, California, were each charged in the Central District of California with one count of conspiracy to commit health care fraud, six counts of health care fraud and one count of conspiracy to pay health care kickbacks.

According to allegations in the indictment, Simitian and and Shatvoryan managed and operated three medical clinics – Columbia Medical Group Inc., Life Care Medical Clinic and Safe Health Medical Clinic – out of two suites in the same Los Angeles office building.  From approximately February 2010 through June 2014, Simitian and Shatvoryan paid marketers illegal kickbacks to recruit Medicare beneficiaries to the clinics.  They then submitted false claims to Medicare for services – including procedures such as anorectal manometry and nerve conduction tests – that were not medically necessary and never actually provided. 

From approximately February 2010 through June 2014, the clinics allegedly submitted a total of $4,526,791 in false and fraudulent claims to Medicare, and Medicare paid $1,668,559 on those claims.

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

This case is being investigated by the FBI and HHS-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 Central District of California.  This case is being prosecuted by Trial Attorneys Blanca Quintero and Alexander F. Porter 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 2,000 defendants who have collectively billed the Medicare program for more than $6 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 Action Team (HEAT), go to: www.stopmedicarefraud.gov.

Five Aryan Brotherhood of Texas (ABT) gang members from Dallas were sentenced to prison this week for their roles in the violent ABT enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Today, James Lawrence Burns, 44, and Kenneth Hancock, 34, high-ranking members in the ABT’s hierarchical structure, were ordered to serve respective terms of 20 and 15 years in federal prison by U.S. District Judge Sim Lake in the Southern District of Texas.  Yesterday, Dustin Harris, 30, and Christopher Morris, 39, were each ordered to serve 10 years in prison, while Clay Kirkland, 35, received a sentence of more than 11 years in prison.  An additional defendant – Bill Frank Weatherred, 29 – will be sentenced tomorrow.

According to information presented in court, the six men were admitted members of ABT, a powerful race-based, statewide organization that operates inside and outside of state federal prisons throughout Texas and the United States.  Along with other ABT gang members and associates, they agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang.  ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.  

The ABT was established in the early 1980s within the Texas prison system.  The gang modeled itself after and adopted many of the precepts and writings of the Aryan Brotherhood, a California-based prison gang that was formed in the California prison system during the 1960s.  Previously, the ABT was primarily concerned with the protection of white inmates and white supremacy/separatism, but over time, the ABT has expanded its criminal enterprise to include illegal activities for profit, according to court records.

Court documents allege that the ABT enforced its rules and promoted discipline among its members, prospects and associates through murder, attempted murder, conspiracy to murder, arson, assault, robbery and threats against those who violate the rules or pose a threat to the enterprise.  Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

In order to be considered for ABT membership, a person must be sponsored by another gang member.  Once sponsored, a prospective member must serve an unspecified term, during which he is referred to as a prospect, while his conduct is observed by the members of the ABT.

The defendants sentenced this week are six of 36 defendants convicted of conducting racketeering activity through the ABT criminal enterprise, among other charges.     

This Organized Crime Drug Enforcement Task Force case is being investigated by a multi-agency task force consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; FBI; U.S. Marshals Service; Federal Bureau of Prisons; U.S. Immigration and Customs Enforcement, Homeland Security Investigations; Texas Rangers; Texas Department of Public Safety; Montgomery County, Texas, Sheriff’s Office; Houston Police Department-Gang Division; Texas Department of Criminal Justice – Office of Inspector General; Harris County, Texas, Sheriff’s Office; Atascosa County, Texas, Sheriff’s Office; Orange County, Texas, Sheriff’s Office; Waller County, Texas, Sheriff’s Office; Alvin, Texas, Police Department; Carrollton, Texas, Police Department; Mesquite, Texas, Police Department; Montgomery County District Attorney’s Office; and the Atascosa County District Attorney’s Office.

The case is being prosecuted by David Karpel of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Ed Gallagher and Tim Braley of the Southern District of Texas. 

Federal inmate Kevin Marquette Bellinger, a former resident of Washington, D.C., and an inmate at the United States Penitentiary in Hazelton, West Virginia, was sentenced today to life in prison for the murder of another inmate.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney William J. Ihlenfeld II, for the Northern District of West Virginia made the announcement after sentencing by U.S. District Judge Irene M. Keeley of the Northern District of West Virginia.

Bellinger was convicted by a federal jury on June 16, 2014, of one count of murder by a federal prisoner serving a life sentence and one count of second degree murder in a federal facility for his role in the Oct. 7, 2007, murder of inmate Jesse Harris.

According to evidence presented at trial, during a move of inmates from the recreation yard back to their cells, Bellinger and a co-defendant left the yard ahead of the others and traveled to an intersection of two corridors in the prison facility, where they confronted Harris and stabbed him with shanks in an orchestrated attack.  In less than a minute, an officer approached, and the attackers fled.  Officers apprehended Bellinger after a short pursuit, but they did not recover his weapon.  Surveillance footage of the attack showed Bellinger and his co-defendant engaged in a verbal exchange with Harris, followed by the two attackers wielding weapons and assaulting Harris, who was unarmed and backing away from them.

At the time of the murder, Bellinger was serving a life sentence for an assault with intent to kill that took place in 2000.

This case was investigated by the FBI and the U.S. Bureau of Prisons.  The case was prosecuted by Trial Attorney Richard Burns from the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Andrew Cogar and former Assistant U.S. Attorney Brandon Flower of the Northern District of West Virginia.

A former driver for a national trucking company pleaded guilty today to bribery charges, admitting that he bribed employees in the Traffic Office at the Marine Corps Logistics Base Albany (MCLB-Albany) in order to obtain lucrative freight hauling business, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Michael J. Moore of the Middle District of Georgia.

David R. Nelson, 54, of Lucedale, Mississippi, pleaded guilty today before U.S. District Judge W. Louis Sands in the Middle District of Georgia to one count of bribery of a public official.

During his guilty plea, Nelson, a former driver for a large transportation company based in Louisville, Kentucky, admitted to paying more than $100,000 in bribes between 2006 and 2012 to officials in the Traffic Office at MCLB-Albany in exchange for obtaining freight shipments from the base to destinations on the West Coast.  The bribes started at $500 for each shipment, but later grew to as much as $1,500 per shipment.  From the money he made from these freight shipments, Nelson purchased a $50,000 specially-modified trailer that allowed him to carry multiple Protected Security Service loads on a single trip.

As part of his plea agreement with the United States, Nelson agreed to forfeit the proceeds he received as a result of the bribery scheme, as well as to pay full restitution to the Department of Defense.  Sentencing will be scheduled at a later date.

The case is being investigated by the Naval Criminal Investigative Service and the Defense Criminal Investigative Service.  The case is being prosecuted by Trial Attorneys Richard B. Evans, J.P. Cooney and John Keller of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney K. Alan Dasher of the Middle District of Georgia. 

The United States filed a civil injunction suit in Memphis, Tennessee, to bar three individuals from owning or operating a tax return preparation business or preparing tax returns for others, the Justice Department announced today.

Shandon Allen, Tabitha Tunstall and Shewanda Hamilton previously managed Mo’ Money Taxes stores in Memphis, but more recently have prepared tax returns under the names Southern King Taxes, Tabitha’s Taxes, LaQuita’s Professional Tax Service and Cash King Tax Service, according to the complaint.  The United States previously obtained an injunction permanently barring the owners of Mo’ Money Taxes, Markey Granberry and Derrick Robinson, as well as a former Mo’ Money manager, Eumora Reese, from preparing tax returns for others and owning or operating a tax return preparation business.

The complaint alleges that the defendants and their employees prepare fraudulent tax returns that cause their customers to incorrectly report their federal tax liabilities and underpay their taxes.  According to the complaint, the defendants and their employees prepare federal tax returns on which they falsely claim the Earned Income Tax Credit,  improper filing status and bogus education credits.  Additionally, the defendants and their employees allegedly improperly prepare tax returns using paystubs rather than W-2 forms, fabricate bogus W-2 forms and file tax returns without customers’ consent while charging deceptive and unconscionable fees, according to the suit.

Return preparer fraud is one of the Internal Revenue Service’s (IRS) Dirty Dozen Tax Scams for 2014.  The IRS has some tips on their website for choosing a tax preparer.  In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers.  Information about these cases is available on the Justice Department 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.

Related Materials:

United States v. Shandon Allen, et al.
Complaint for Permanent Injunction and Other Relief

A former Police of Puerto Rico (POPR) sergeant and a civilian have pleaded guilty for their involvement in a July 2012 robbery in Bayamon, Puerto Rico, and an additional POPR officer has pleaded guilty to lying to federal agents, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico.

Jorge Fernandez-Aviles, 49, a POPR sergeant, pleaded guilty today to robbery and firearms charges for his role in a July 2012 robbery in Bayamon, Puerto Rico.   On Oct. 3, 2014, David Figueroa, 32, a civilian, pleaded guilty to robbery and civil rights charges for his involvement in the robbery.  Alexander Mir-Hernandez, 40, a POPR officer, also pleaded guilty on Oct. 3, 2014, to one count of false statements for lying to federal agents about his role in the July 2012 robbery and to a civil rights crime for an unrelated December 2013 robbery.  Sentencing for all three is scheduled for Jan. 9, 2015.

Pedro Lopez-Torres, 35, and Luis Ramos-Figueroa, 38, were each POPR officers and were charged by information on June 25, 2014, for their roles in the July 2012 robbery and other crimes.  Lopez and Torres pleaded guilty before U.S. District Judge José A. Fusté the same day.  Fernando Reyes-Rojas, a civilian, has been indicted for robbery, drug, and firearms charges for his involvement in the July 2012 robbery.  Reyes-Rojas is scheduled for trial on Nov. 3, 2014.

According to court documents, on July 14, 2012, Sergeant Fernandez-Aviles and Officers Lopez-Torres and Ramos-Figueroa, armed with their POPR weapons, went with Figueroa, Ramos-Figueroa’s cousin, to the airport, where they picked up a marked patrol car from Officer Mir before a planned home robbery.  They drove the patrol car to meet Reyes-Rojas and then went together to the location of the robbery.  

Upon entering the house, the officers identified themselves as police, falsely claimed they were executing a search warrant, and ordered several individuals in the garage to the ground and searched for weapons.   While Figueroa watched the occupants, Sergeant Fernandez, Officer Lopez-Torres, Officer Ramos-Figueroa, and Reyes-Rojas searched the property, and Reyes-Rojas found cocaine in a shed in the backyard.  A few days later, Reyes-Rojas met with Lopez-Torres and gave him money from the proceeds of the sale of the cocaine he took on the day of the robbery.  Officer Lopez-Torres split the money with Sergeant Fernandez-Aviles and Officer Ramos-Figueroa.

In June 2014, Officer Mir was interviewed by Special Agents of the Federal Bureau of Investigation and falsely claimed that he did not recognize a photograph of Officer Lopez-Torres; that he had not met with Officer Lopez-Torres in more than six months; and that he did not provide the patrol car that was used to commit the July 2012 robbery.

An indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty.

This case was investigated by the FBI’s San Juan Division and is being prosecuted by Trial Attorney Heidi Boutros Gesch of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Mariana Bauza of the District of Puerto Rico.

DRS Technical Services Inc. (DRS) has agreed to pay $13.7 million to settle allegations that it violated the False Claims Act by knowingly overbilling the government for work performed by DRS personnel who lacked the job qualifications required by the contract, the Justice Department announced today.  DRS is located in Herndon, Virginia, and is a subsidiary of DRS Defense Solutions LLC.

DRS designs, integrates, operates and maintains satellite and wireless network solutions and telecommunication services and security systems for government and private sector customers.  DRS C3 & Aviation Company, which is headquartered in Gaithersburg, Maryland, is an indirect subsidiary of DRS and provides services to government agencies, including aircraft maintenance, logistics and depot support, and engineering support.  Between March 2003 and Dec. 31, 2012, DRS and its predecessors were awarded time and materials contracts for services and supplies to be provided to the Army’s Communication and Electronics Command (CECOM) in Iraq and Afghanistan, and to the Coast Guard for aircraft maintenance.

“Contractors that fail to provide qualified labor as promised are not entitled to bill the government as though they had,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “The Department of Justice will pursue contractors that claim taxpayer funds to which they are not entitled.”

The alleged labor mischarging occurred on the Rapid Response or “R2” contract issued by the U.S. Army Communication and Electronics Command (CECOM) located at the Aberdeen Proving Ground in Maryland.  The U.S. Army used the R2 contract to purchase a variety of goods and services needed to support U.S. forces in Iraq, Afghanistan and elsewhere on a quick turnaround basis.  The settlement also resolves labor mischarging on a similar U.S. Coast Guard contract.

The government contends that from Jan. 1, 2003, to Dec. 31, 2012, DRS billed CECOM for work performed by individuals whose job qualifications did not meet all the qualifications prescribed by the contracts for the labor categories under which their efforts were billed, thereby falsely increasing the amount of money DRS claimed and CECOM paid.  Similarly, from Dec. 19, 2009, to Dec. 18, 2011, the government contends that DRS charged the Coast Guard’s Aviation Logistics Center for work performed by individuals whose job qualifications did not meet the qualifications prescribed by the contract, again, thereby inflating the cost of the services provided.     

“Companies that submit false bills to the government must be held accountable,” said U.S. Attorney Rod J. Rosenstein for the District of Maryland.

“This settlement is yet another example of the tenacity and hard work of our Army CID agents,” said Director Frank Robey of the U.S. Army Criminal Investigation Command's Major Procurement Fraud Unit (MPFU).  “It is a testament to MPFU's continued resolve to hold companies accountable for the work they do for the U.S. government.” 

The settlement was the result of a coordinated effort by the U.S. Attorney’s Office for the District of Maryland, the Civil Division, the Defense Contract Audit Agency, the Army’s Criminal Investigative Command’s MPFU and the Department of Defense Office of Inspector General’s Defense Criminal Investigative Service.   

The claims resolved by the settlements are allegations only and there has been no determination of liability.

Two Detroit area men were sentenced today in the U.S. District Court for the Eastern District of Michigan for conspiracy and filing $3.4 million in false claims against the Internal Revenue Service (IRS), the Justice Department and IRS announced. 

Jason McGuire, 38, of Detroit, was sentenced to serve 63 months in prison to be followed by three years of supervised release and to pay $1.675 million in restitution.  Delvin Davis, 37, of Saint Clair Shores, Michigan, was sentenced to serve 42 months in prison to be followed by three years of supervised release and to pay $1.146 million in restitution.

On Jan. 30, McGuire and Davis were found guilty by a jury in Detroit of conspiracy to file false claims in the form of false individual income tax returns and false trust tax returns.  The defendants were also found guilty of filing or aiding and abetting in the filing of false, fictitious and fraudulent claims; McGuire was found guilty of 18 such counts and Davis was found guilty of five counts.  Witness testimony revealed that the defendants attended the same high school in Detroit and started the scheme in 2008.  Prior to that time, McGuire had worked as a mechanic and Davis had worked as a mortgage broker and operated a credit repair business.

According to court documents and evidence introduced at trial, McGuire and Davis recruited individuals from the Detroit area with whom they had existing, long-standing business and personal relationships to sign fraudulent trust and income tax returns.  McGuire had the taxpayers sign blank trust return forms, and the taxpayers never saw the filled-out forms before they were filed.  McGuire attached bogus forms to the income tax returns.  McGuire included fictitious withholdings in both types of return forms which resulted in the taxpayers receiving large refunds.  The defendants recruited at least nine different taxpayers to participate in the fraudulent scheme.  The IRS received returns requesting more than $3.4 million in false refunds and paid more than $1.5 million in false refunds as a result of the fraudulent scheme.  Several taxpayers testified at trial that they were required to pay fines and interest to the IRS as a result of the false tax returns that the defendants submitted.

This case was investigated by special agents from IRS – Criminal Investigation and prosecuted by Assistant U.S. Attorney Elizabeth Stafford for the Eastern District of Michigan and Trial Attorney Mark McDonald of the Tax Division.

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

The Department of Justice announced today that three Athens, Texas, residents have been indicted on charges associated with their alleged smuggling of imitation, unapproved, and misbranded prescription drugs from China.

Wanda Hollis, 63, Tom Giddens, 57, and Catherine Nix, 41, were each charged with one felony count of conspiracy to smuggle merchandise into the United States, seven counts of causing the introduction of misbranded drugs into interstate commerce with the intent to defraud or mislead, seven counts of smuggling and one count of tampering with a witness.  Giddens was also charged with two additional counts of tampering and Nix was charged with one additional tampering count.  The defendants were also charged with misdemeanor counts of causing misbranded imitation drugs to be introduced into interstate commerce.  Nix was arrested on October 2 in Athens.  Giddens and Hollis surrendered this morning.

According to the indictment, the defendants conspired to smuggle at least 30 known shipments, totaling approximately 100,000 pills, from China to Texas.  As alleged in the indictment, the shipments contained bogus imitations of Xanax, Valium, sibutramine, Cialis, Viagra and Stilnox, which is marketed in the United States as Ambien.  None of the pills seized and tested were legitimate, and all either contained incorrect active ingredients or were sub-potent.  The defendants also attempted to conceal their smuggling by using shipping labels that concealed the contents of their shipments, including customs declarations falsely describing the contents as “gifts” or “toys” with low declared monetary values, and by using multiple addresses in an effort to reduce the likelihood of seizures by U.S. Customs authorities.  Additionally, the indictment states that the defendants instructed family members to destroy evidence once they became aware that the U.S. Food and Drug Administration (FDA) was investigating them.

“The smuggling and sale of counterfeit prescription drugs puts the public's health and safety at risk,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “Consumers should know that the drugs they are buying are what they purported to be and not misbranded to look like name-brand products that could ultimately do them more harm than good.”

“A key element of FDA’s mission to protect the public’s health is to ensure that safe and effective prescription drugs are properly distributed via the supply chain and dispensed to the ultimate consumer, and that includes ensuring that those prescription drugs contain the treatments that patients expect,” said Acting Director Philip J. Walsky of the FDA’s Office of Criminal Investigations.  “We will continue to pursue and bring to justice those who would put the public’s health at risk by introducing illegal prescription drugs.”

This case was investigated by the FDA’s Office of Criminal Investigations and U.S. Immigration and Customs Enforcement-Homeland Security Investigations.  The case is being prosecuted by Trial Attorney John W.M. Claud of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Allen Hurst for the U.S. Attorney’s Office for the Eastern District of Texas.

 

Charges set forth in an indictment are merely accusations 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 a Montana builder, Gabriel Nistler, and an engineer, Derek Brown, have agreed to pay over $26,000 and remove accessibility barriers at three apartment buildings in Helena, Montana, in order to settle a lawsuit alleging that they had violated the Fair Housing Act.

The settlement resolves a lawsuit filed in 2013 alleging that defendants violated the Fair Housing Act when they designed and constructed an eight-unit property located at 175 and 195 Silsbee Avenue in Helena, Montana, with steps and other features that made them inaccessible to persons with disabilities.  Under the terms of the parties’ agreement, the owners and builders of the property, Gabriel and Sommer Nistler and Nistler Engineering LLC, and the designer of the property, Derek Brown and Derek Brown Consulting Inc., must take actions to remove accessibility barriers at the Silsbee Avenue property, and at two other properties they designed and constructed that Gabriel Nistler currently owns.  Those two other properties are located at 109 and 111 Reed Avenue and 1220 and 1240 Laurel Street in Helena.  The defendants have already taken actions during the course of the litigation to improve accessibility at the Silsbee Avenue property.  The corrective actions at the three properties under the settlement include removing steps from sidewalks, installing properly sloped curb ramps to allow persons with disabilities to access their front doors from the parking areas, creating accessible routes from the units to common areas such outside such as mailboxes, providing accessible parking and garage units, moving outlets to accessible locations, and making modifications to the kitchens and bathrooms to improve accessibility.  In addition, the defendants will pay $17,500 to Montana Fair Housing Inc., whose investigation revealed the violations at the Silsbee Avenue property and which intervened in the United States’ lawsuit, and $8,500 in civil penalties to the United States.

“The Fair Housing Act ensures that persons with disabilities do not face unnecessary barriers to access to housing of their choice and are able to make full use of that housing,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “The Justice Department is strongly committed to the enforcement of the fair housing laws that protect the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice.”

“This is a fair settlement that should be an important reminder to contractors and developers in Montana that persons with disabilities have the right, under the Fair Housing Act, to housing alternatives without barriers,” said U.S. Attorney Michael Cotter for the District of Montana.  “Montana builders do not want to exclude buyers or renters with disabilities and Montanans in general do not want persons with disabilities to be further disadvantaged.  Fair housing laws must be enforced to give substance to that shared community interest and provide notice that planning and construction must be consistent with its objectives.”  

The lawsuit, filed in September 2013, arose as a result of a complaint filed by Montana Fair Housing with the U.S. Department of Housing and Urban Development (HUD).  After HUD investigated the complaint, it issued a charge of discrimination and referred the matter to the Justice Department.

“The Fair Housing Act guarantees the right for people with mobility impairments to feel at home and live in a place that accommodates their disability,” said HUD Assistant Secretary Gustavo Velasquez for Fair Housing and Equal Opportunity.  “HUD will continue to work with the Justice Department to enforce the nation’s fair housing laws and create more housing opportunities for persons with disabilities.”

More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.  Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at fairhousing@usdoj.gov, or contact the U.S. Department of Housing and Urban Development at 1-800-669-9777 or through www.hud.gov.

A southwest suburban Bolingbrook man was arrested Saturday night for allegedly attempting to travel overseas to join a foreign terrorist organization operating inside Iraq and Syria, federal law enforcement officials announced today.  The defendant, Mohammed Hamzah Khan, 19, a U.S. citizen, was charged with attempting to join the Islamic State of Iraq and the Levant (ISIL), also known as the Islamic State of Iraq and Syria (ISIS).

Khan was taken into custody without incident at O’Hare International Airport by members of the Chicago FBI’s Joint Terrorism Task Force before he attempted to fly to Vienna, Austria, on his way to Istanbul, Turkey.

Khan was charged in a criminal complaint filed today in U.S. District Court with one count of attempting to provide material support to a foreign terrorist organization.  He appeared this morning in U.S. District Court before U.S. Magistrate Judge Susan Cox, and remains in federal custody pending a detention hearing at 10:30 a.m. Thursday.

According to the complaint affidavit, a roundtrip ticket was purchased for Khan on Sept. 26 to travel from Chicago to Istanbul, departing on Saturday, and returning later this week.

Law enforcement agents observed Khan passing through the security screening checkpoint Saturday afternoon at O’Hare’s international terminal.  Federal agents then executed a search warrant at Khan’s residence and recovered multiple handwritten documents that appeared to be drafted by Khan and/or others, which expressed support for ISIL, the affidavit alleges.  Some of those documents, including travel plans and materials referencing ISIL and jihad, are described in the complaint affidavit.

Khan was initially approached by U.S. Customs and Border Protection officers and was later interviewed later by FBI agents at the airport. 

Attempting to provide material support to a foreign terrorist organization carries a maximum penalty of 15 years in prison and a $250,000 fine.  If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.

The JTTF is comprised of Special Agents of the FBI, officers of the Chicago Police Department, and representatives from an additional 20 federal, state and local law enforcement agencies.  The Justice Department’s National Security Division assisted in the investigation.  U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), and the Illinois State Police also provided significant assistance. 

The arrest and complaint were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.  The investigation is continuing, they said.  

The government is being represented by Assistant U.S. Attorneys Matthew Hiller and Angel Krull.

The public is reminded that a complaint contains only charges and is not evidence of guilt.  The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.       

A citizen and resident of Costa Rica pleaded guilty today to conspiracy to smuggle more than 25 undocumented immigrants to the United States.

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, and Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations’ (HSI) Washington, D.C., Field Office made the announcement. 

Mercedes Morera Roche, 49, was extradited to the United States from Panama on Aug. 21, 2014, to face charges for smuggling more than 25 undocumented immigrants from Cuba to the United States. 

According to her plea agreement, Roche admitted that between 2004 and 2011, she was an organizer of a human smuggling network that provided instructions, fraudulent identity and travel documents, escorts, transport, safe house locations, and other assistance to facilitate the illicit travel of undocumented immigrants to the United States.  Roche admitted that in some cases, she provided fraudulent passports so that undocumented immigrants could fly to the United States with the help of corrupt foreign airline and immigration officials.  Roche directed the immigrants to destroy the fraudulent documents during the flights before landing at United States airports and instructed the immigrants about engaging with authorities at the airports.  In other cases, Roche coordinated the smuggling of undocumented immigrants via land through Latin America and Mexico into the United States.  Roche solicited payments of up to $10,000 for each undocumented immigrant. 

Roche’s sentencing is scheduled on Dec. 11, 2014, before U.S. District Court Judge Ursula M. Ungaro of the Southern District of Florida. 

The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI.  The ECT program focuses on human smuggling networks that may present particular national security or public safety risks or present grave humanitarian concerns.  ECT has dedicated investigative, intelligence and prosecutorial resources.  ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.

The investigation was conducted by HSI’s Washington, D.C. Field Office with support from the Human Smuggling Trafficking Center and U.S. Customs and Border Protection’s National Targeting Center.  Critical assistance was also provided by HSI’s Miami Field Office and the ICE Attaché Office in Panama.  Extradition assistance was provided by the Criminal Division’s Office of International Affairs, Interpol Washington and the United States Marshals Service.  The Justice Department is grateful for the significant assistance provided by the Panamanian Ministry of Foreign Affairs.  This case is being prosecuted by Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Robert Emery of the Southern District of Florida.

On the heels of the Supreme Court’s decision late last month to allow Ohio’s new voting law to go into effect, Attorney General Eric Holder criticized the law’s restrictions on early voting, which he said were “heavily used” by African-American voters.

“It is a major step backward to allow these reductions to early voting to go into effect,” the Attorney General said in a video message posted on the Justice Department’s website.  “Early voting is about much more than making it more convenient for people to exercise their civic responsibilities.  It’s about preserving access and openness for every eligible voter, not just those who can afford to miss work or who can afford to pay for childcare.”

The Ohio law has been the subject of a lawsuit by civil rights groups and the Justice Department filed a brief in the case in July.  A federal judge ruled that the law violated the Voting Rights Act and blocked it from taking effect.  A federal appeals court judge upheld that ruling, but the Supreme Court disagreed and ruled the law should go into effect immediately. Absent the Court’s ruling, early voting would have begun in Ohio last Tuesday.

In North Carolina, the Justice Department has directly challenged a state law that cuts back on early voting and eliminates same-day registration.  While no ruling on the merits has been issued yet in that case, the 4th Circuit Court of Appeals ruled last week to allow much of the law—including the reductions to early voting—to go into effect in the meantime.

The complete text of the Attorney General’s video message appears below.

“One of the Justice Department’s most solemn responsibilities is ensuring access to the ballot box for every eligible citizen.  And over the last six years, my colleagues and I have taken robust action to protect the voting rights of all Americans – including communities that have been too long overlooked and too often underserved.

“Before the Shelby County case was wrongly decided, we successfully challenged efforts in Texas and Florida that would have disproportionately disenfranchised citizens of color in those states, and South Carolina had to make changes to its voting restrictions.  It should not be lost on us that almost as soon as the Supreme Court decision in Shelby County was handed down, the state of Texas implemented a photo ID law that the courts had previously blocked, and that North Carolina implemented sweeping restrictions on voting rights.  The Department of Justice has now been forced to challenge those discriminatory laws in court.

“Our work has taken us to other parts of our nation as well.  We have worked to protect the voting rights of servicemembers, and to ensure accessible polling places throughout Indian Country and Alaska Native communities.  And we have fought back against discriminatory redistricting proposals that may make it more difficult for many Americans to make their voices heard.

“Despite these efforts, in some places, we’ve continued to see troubling new measures that unnecessarily restrict the ability of particular Americans to participate in the democratic process.  Ohio, for example, has imposed new restrictions that significantly reduce opportunities for early voting – opportunities that had in the past been heavily used by African-American voters.

“The early voting times targeted for cancellation – including weeknight and Sunday hours – previously provided critical opportunities for many people to get to the polls.  In 2012, tens of thousands of Ohio voters cast their ballots during the voting days that Ohio has now eliminated.  And studies suggest that these restrictions will disproportionately affect people with childcare responsibilities, hourly salaries, and reduced access to transportation – people who may have difficulty getting to the polls at any other time, and who are much more likely to be low-income or minority individuals.

“It is a major step backward to allow these reductions to early voting to go into effect.  The public should be demanding the state officials who seek to impose these restrictions to justify—clearly, factually, and empirically—why they are necessary.  Early voting is about much more than making it more convenient for people to exercise their civic responsibilities.  It’s about preserving access and openness for every eligible voter, not just those who can afford to miss work or who can afford to pay for childcare.  That’s why a number of states have expanded early voting in recent years.  Throughout our nation’s history, we’ve repeatedly seen that there is simply no good reason – no good reason – to reduce voting access.  Indeed, the arc of our nation’s history has, until recently, been to expand access to the ballot.  Restricting voting hours in ways that would disproportionately impact minority communities is not only unnecessary and unwarranted – it is out of step with our history of continually expanding the franchise.  It is contrary to our fundamental values of equality, opportunity, and inclusion.  And it is an affront to millions who have marched, and fought, and too often died to make real America’s most basic promise.  Three brave young men gave their lives in 1964, as did a courageous Detroit mother of five in 1965, so that others might be able to vote and be truly free.  Are we now to turn our back on those ultimate sacrifices?

“We at the Department of Justice will never rest in our efforts to ensure the right to vote.  Nor will I.  And today, I’m calling on election officials and other public servants at every level across the country – men and women who are charged with upholding America’s highest ideals – to consider their responsibilities not to political constituencies, but to the country we all serve.  To think about the deep unfairness of curtailing voting opportunities.  And to reflect on their place in the history of this country to which they are potentially consigning themselves.

“In a great nation governed both by and for the people, our advances have always been of our own making.  And going forward, it will be up to all of us to ensure that engagement in that democratic process remains the responsibility and the birthright of every American.”

The full video of the Attorney General’s message is available at http://www.justice.gov/agwa.php.

Justice Department spokeswoman Dena Iverson released the following statement Friday regarding the just-completed, two-day visit to Ferguson, Missouri, by senior Justice Department officials:

“At the request of Attorney General Eric Holder, Department of Justice leadership traveled to Ferguson, Missouri, for meetings with the city and the community on Thursday and Friday. As part of the Civil Rights Division’s commitment to a thorough and fair investigation Acting Assistant Attorney General for Civil Rights Molly Moran and Deputy Assistant Attorney General Mark Kappelhoff met with Ferguson City and Ferguson Police Department leadership regarding the ongoing pattern and practice investigation into FPD and discussions included follow up on letters sent to Ferguson Police Chief Jackson regarding identification of officers and uniform requirements.  Ronald Davis, Director of the Office Community Oriented Policing Service, and Rob Chapman, Deputy Director of COPS, also attended law enforcement leadership meetings in Ferguson and St. Louis County as part of COPS’s efforts to provide technical assistance to the police department on an ongoing basis.

“Moran, Davis and Kappelhoff were joined by the Community Relations Service during a meeting with community leaders regarding the pattern and practice investigation on Thursday.  There will be additional opportunities for community members to meet with Civil Rights Division staff as part of the pattern and practice investigation in the near future.

“While in St. Louis the Civil Rights Division leadership also received an update from the FBI, Civil Rights Division and U.S. Attorney’s Office investigators on the continuing investigation into the shooting of Michael Brown.”

A Northern California real estate investor has agreed to plead guilty for his role in conspiracies to rig bids and commit mail fraud at public real estate foreclosure auctions in Northern California, the Department of Justice announced.

Felony charges were filed today in the U.S. District Court for the Northern District of California in Oakland against Gernot Sebastian Zepernick of Concord, Calif.  To date, 47 individuals have agreed to plead or have pleaded guilty, as a result of the department’s ongoing antitrust investigations into bid rigging and fraud at public real estate foreclosure auctions in Northern California.

According to court documents, beginning as early as November 2008 until about January 2011, Zepernick conspired with others not to bid against one another, and instead to designate a winning bidder to obtain selected properties at public real estate foreclosure auctions in Contra Costa County.  Zepernick was also charged with conspiring to use the mail to carry out a scheme to fraudulently acquire title to selected Contra Costa County properties sold at public auctions, to make and receive payoffs, and to divert money to co-conspirators that would have otherwise gone to mortgage holders and other beneficiaries by holding second, private auctions open only to members of the conspiracy.  The department said that the selected properties were then awarded to the conspirators who submitted the highest bids in the second, private auctions.  The private auctions often took place at or near the courthouse steps where the public auctions were held.    

“Collusion at the foreclosure auctions created an unfair playing field where the conspirators pocketed illegal payoffs at the expense of lenders and distressed homeowners,” said Brent Snyder, Deputy Assistant Attorney for the Antitrust Division’s criminal enforcement program.  “The division will continue to investigate and prosecute local cartels that corrupt the competitive process.”

The department said that the primary purpose of the conspiracies was to suppress and eliminate competition and to conceal payoffs in order to obtain selected real estate offered at Contra Costa County public foreclosure auctions at non-competitive prices.  When real estate properties are sold at these auctions, the proceeds are used to pay off the mortgage and other debt attached to the property, with remaining proceeds, if any, paid to the homeowner.  These conspirators paid and received money, according to the court documents, that otherwise would have gone to pay off the mortgage and other holders of debt secured by the properties, and, in some cases, the defaulting homeowner.

“These charges represent another significant success in our ongoing fight against the corrupt practices and illegal activities central to this long running bid-rigging scheme,” said David J. Johnson, FBI Special Agent in Charge of the San Francisco Field Office.  “The FBI will continue to aggressively investigate real estate-related frauds and other violations of federal law which victimize distressed homeowners and financial institutions through the exploitation of the housing crisis.”      

A violation of the Sherman Act carries a maximum penalty of 10 years in prison and a $1 million fine for individuals.  The maximum fine for the Sherman Act charges may be increased to twice the gain derived from the crime or twice the loss suffered by the victims if either amount is greater than $1 million.  A count of conspiracy to commit mail fraud carries a maximum sentence of 30 years in prison and a $1 million fine.  The government can also seek to forfeit the proceeds earned from participating in the conspiracy to commit mail fraud.

Today’s charges are the latest filed by the department in its ongoing investigation into bid rigging and fraud at public real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties, California.  These investigations are being conducted by the Antitrust Division’s San Francisco Office and the FBI’s San Francisco Office.  Anyone with information concerning bid rigging or fraud related to public real estate foreclosure auctions should contact the Antitrust Division’s San Francisco Office at 415-934-5300, or call the FBI tip line at 415-553-7400.

Today’s charges were brought in connection with the President’s Financial Fraud Enforcement Task Force.  The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 93 U.S. Attorneys’ offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations.  Over the past three fiscal years, the Justice Department has filed nearly 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,900 mortgage fraud defendants.  For more information on the task force, please visit www.StopFraud.gov.

**The fraud charge(s) referenced in this press release were subsequently dismissed on the government’s motion.**

The Justice Department’s Civil Rights Division and U. S. Attorney A. Lee Bentley III for the Middle District of Florida announced today that they reached an agreement with Key Safety Systems Inc. resolving claims that Key Safety Systems violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) by demoting U.S. Army National Guard Member Ronald Collins Jr. following the announcement of his military deployment.

According to the complaint, filed in the United States District Court for the Middle District of Florida, in October 2012, Collins notified Key Safety Systems that he was being deployed in February 2013 for one year of military service.  In December 2012, Collins was notified by Key Safety Systems that, effective immediately, he was being demoted, which resulted in a reduction in pay.  According to the complaint, Collins had not been the subject of any disciplinary actions prior to the announcement of his impending deployment. 

The complaint further alleged that, at the time of the demotion, Collins was not provided any basis underlying the decision to demote him.  In January 2014, Collins returned from deployment and was returned to the position to which he had been demoted at Key Safety Systems.  Collins submitted his letter of resignation to Key Safety Systems in February 2014.

USERRA protects the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations, and provides that servicemembers shall not be discriminated against because of their military obligations.

“Congress enacted USERRA to protect our men and women in uniform,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “Mr. Collins, like many members of the National Guard and Reserve, was called upon by his country in a time of need and the Department of Justice strongly supports the rights of service members to reclaim their rightful positions in the workforce after they complete their military service.”

Under the terms of the settlement, which was filed as a consent decree simultaneously with the complaint, Key Safety Systems has agreed to pay $20,000 as back pay and liquidated damages to Collins. 

“Members of the United States Army National Guard are often called to make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Bentley.  “When they are deployed in the service of our country, their employment rights must be protected.  Our office and the entire Department of Justice are committed to ensuring that individuals do not lose their rights while they are protecting ours.”

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 and the U.S. Attorney’s Office for the Middle District of Florida, who work collaboratively with the DOL to protect the jobs and benefits of National Guard and Reserve servicemembers 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 Department of Justice announced today that the department, on behalf of the Food and Drug Administration (FDA), has filed suit in the U.S. District Court for the District of New Jersey against Pharmaceutical Innovations Inc. and Gilbert Buchalter, who is the company’s founder, owner, and chairman of the board. 

According to the complaint, the defendants violated the Federal Food, Drug and Cosmetic Act (FDCA) by manufacturing and distributing adulterated and misbranded medical devices.  The devices at issue are gels that hospitals and other caregivers use to take ultrasound scans.  Under the FDCA, a device manufacturer must: comply with current good manufacturing practice requirements; obtain required premarket approval or clearance before distributing its devices and notify the FDA and follow-up on any reports of serious injuries or deaths associated with its devices.  The government alleges that the company violated each of these requirements.

“This action furthers the FDA’s mission of ensuring that all medical devices sold to hospitals and other caregivers are produced in conformance with current good manufacturing practice requirements,” said Acting Assistant Attorney General for the Civil Division Joyce R. Branda.  “Device manufacturers who undermine this mission will be held accountable.”

“Patients should be able to have confidence that the healthcare products they use are safe,” said U.S. Attorney Paul J. Fishman for the District of New Jersey.  “Actions like the one we are taking here reinforce the law that manufacturers adhere to strict approval and production requirements.  We are committed to stopping those who don’t.”

The complaint alleges that FDA inspections at Pharmaceutical Innovations’ Newark, New Jersey, facility have identified numerous and repeated deviations from current good manufacturing practices, including that the company has failed to show that it: validated its dry heat sterilization and dry heat treatment processes; routinely monitors its water systems to ensure that the water is suitable for manufacturing medical devices and routinely sanitizes the tubing and connections of its water systems to ensure objectionable microorganisms do not reside in the inner piping surface.  The complaint further alleges that Pharmaceutical Innovations has not sought FDA approval or clearance for the new ultrasound gels it has brought into the market.  As a result, according to the complaint, the defendants’ products are adulterated and misbranded devices under the FDCA.

The complaint alleges that, in February 2012, a Michigan hospital reported that it had traced infections among 16 surgical patients to a specific gel made by Pharmaceutical Innovations.  However, the company failed to submit a medical device report to the FDA after becoming aware of these infections as required by law.  FDA testing on samples of that gel identified bacterial contamination.  The relevant lots of Pharmaceutical Innovations’ ultrasound gel were seized by the U.S. Marshals Service, following a seizure lawsuit filed by the United States. 

The complaint alleges that, despite numerous warnings from FDA, the defendants have failed to bring their operations into compliance with the law.  The Justice Department will seek a permanent injunction requiring the defendants to cease manufacturing, processing, packing, labeling, holding and distributing devices until they comply with the FDCA and applicable FDA regulations. 

The FDA referred this matter to the Justice Department.  The Consumer Protection Branch of the Civil Division filed this case on behalf of the United States.

A complaint is merely a set of allegations that, if the case were to proceed to trial, the government would need to prove by a preponderance of the evidence.

The Department of Justice announced today that it will not challenge a proposal by CyberPoint International LLC to offer a cyber intelligence data-sharing platform known as TruSTAR.   The TruSTAR platform allows members to share threat and incident data along with attack information and develop remediation solutions to help define more effective strategies across industries to prevent successful cyber attacks.

The department’s position was stated in a business review letter to counsel for CyberPoint, from Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.

CyberPoint’s proposed information sharing system is designed to address shortfalls in conventional, legacy information sharing services, while operating within the framework set forth in the Department of Justice and Federal Trade Commission’s Antitrust Policy Statement on Sharing of Cybersecurity Information.[1]  Assistant Attorney General Baer cited to the department’s April policy statement with the Federal Trade Commission to underscore that “the federal antitrust agencies recognize the important role that information sharing plays in securing the nation’s IT infrastructure.”  He further said that “[t]he antitrust laws are not an impediment to legitimate private-sector initiatives to share specific information about cyber incidents and mitigation techniques in order to defend against cyber attacks.”  In approving the proposed TruSTAR platform, he concluded that the operation of the TruSTAR platform, as proposed, would be unlikely to facilitate price or other competitive coordination.

CyberPoint is a privately held company that provides security products, services and solutions to commercial and government customers.  The TruSTAR platform is designed to collect incident reports that include specific and highly technical cyber-threat information, including current attack actors, targets of attack, contextual information regarding threats, and remediation solutions.  An important component of the TruSTAR platform is that members are able to submit incident reports with complete anonymity.  The TruSTAR platform also provides a community forum for members to anonymously collaborate with their peers on cyber threats and techniques for responding to them.  Before they are permitted to use the system, all members who participate in any aspect of information sharing on the TruSTAR platform must agree not to share competitively sensitive information.

Under the department’s business review procedure, an organization may submit a proposed action to the Antitrust Division and receive a statement as to whether the division currently intends to challenge the action under the antitrust laws based on the information provided.  The department reserves the right to challenge the proposed action under the antitrust laws if it produces anticompetitive effects.

A file containing the business review request and the department’s response may be examined in the Antitrust Documents Group of the Antitrust Division, U.S. Department of Justice, 450 Fifth Street, N.W., Suite 1010, Washington, D.C. 20530.  After a 30-day waiting period, the documents supporting the business review will be added to the file, unless a basis for their exclusion for reasons of confidentiality has been established under the business review procedure.

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[1] See Department of Justice and Federal Trade Commission:  Antitrust Policy Statement on Sharing of Cyber Security Information (April 10, 2014) (“DOJ and FTC Antitrust Policy Statement”).

The Department of Justice announced today a second superseding indictment in a sex trafficking conspiracy charging six individuals for offenses related to their involvement in sex trafficking adult victims in New Orleans and elsewhere.  Five defendants, Granville Robinson, aka “Bear” and “HB,” 25; Duane Phillips, aka “P-nut,” 28; Anthony Ellis, aka “Anthony Deshun Lloyd,” “Animal,” and “AD,” 25; Christopher Williams, aka “Gutter,” 29; and LaQuentin Brown, aka “Nino,” 32, all of Memphis, Tennessee, were charged with conspiring to commit sex trafficking by force, fraud, and coercion.  A sixth defendant, Kanubhai Patel, aka “Mr. Kenny” and “Pop,” 73, of Kenner, Louisiana, was indicted for benefitting financially from participating in a sex trafficking venture.   

According to the indictment, from January 2013, until Jan. 15, 2014, Robinson, Phillips, Ellis, Williams and Brown conspired to recruit, entice, harbor, transport, provide, obtain and maintain multiple adult women for prostitution, using force, threats of force, fraud and coercion to cause them to engage in commercial sex acts in New Orleans and elsewhere.  In addition to being charged with sex trafficking conspiracy, defendants Robinson, Phillips and Williams are each charged with additional counts of sex trafficking by force, fraud and coercion and with transporting women in interstate commerce for the purpose of prostitution.

If convicted of sex trafficking conspiracy, defendants Robinson, Phillips, Ellis, Williams and Brown each face a statutory maximum sentence of life imprisonment, a $250,000 fine and a lifetime of supervised release.  If convicted of transportation for prostitution, Robinson, Phillips and Williams each face a statutory maximum of ten years in prison, a $250,000 fine and 3 years supervised release.

If convicted of benefitting financially from participation in a sex trafficking venture, Patel faces a statutory maximum sentence of life imprisonment, a $250,000 fine and a lifetime of supervised release. 

A seventh defendant who was previously charged in connection with the case, Zacchaeus Taylor, aka “Little Z,” “Little Zay,” and “Little 5,” 21, also of Memphis Tennessee, pleaded guilty on June 25, 2014, to sex trafficking, conspiring and transporting women across state lines for prostitution.  He is currently awaiting sentencing.

An indictment is merely a charge and defendants are presumed innocent until proven guilty beyond a reasonable doubt.

This case was investigated jointly by agents from the New Orleans Field Offices of the FBI and ICE Homeland Security Investigations as well as the FBI’s Memphis Field Office.  This case is being prosecuted by Special Litigation Counsel John Cotton Richmond and Trial Attorney Christine M. Siscaretti of the Civil Right Division’s Human Trafficking Prosecution Unit, and Assistant United States Attorney Julia K. Evans of the Eastern District of Louisiana.

Three Colombian citizens pleaded guilty today for conspiring to transport more than 1,000 kilograms of cocaine on board “go-fast boats” from the north coast of Colombia into international waters on vessels subject to the jurisdiction of the United States.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the U.S. Drug Enforcement Administration (DEA) made the announcement.

Angel Javier Varon Castro, 43; Luis Delio Herrera Astudillo, 45; and Eusebio David Webster Archbold, 33, all Colombian nationals, pleaded guilty before U.S. District Judge Beryl A. Howell of the District of Columbia to one count of conspiracy to distribute cocaine and possess with intent to distribute cocaine on board a vessel subject to the jurisdiction of the United States.  Sentencing is set for Jan. 9, 2015.

“Today’s guilty pleas highlight our successful and vigorous partnership with Colombian law enforcement as we work to halt the flow of drugs heading north from the coast of Colombia,” said Assistant Attorney General Caldwell.  “These defendants and their drug trafficking partners used seagoing vessels to inject vast quantities of cocaine into international commerce.  But while drug traffickers may believe they can operate on the high seas with impunity, today’s convictions prove otherwise.  Working with our international partners, we will bring to justice those who would flood our ports and, ultimately, our communities with dangerous narcotics.”

“The arrests and guilty pleas of these three international drug smugglers are the direct result of the resolute partnership between the DEA and our Colombian law enforcement partners,” said DEA Administrator Leonhart.  “This is another example of the fine work that DEA, prosecutors, and our partners around the globe accomplish every day.”

According to their plea agreements, the defendants worked for a drug-trafficking organization responsible for transporting cocaine aboard go-fast vessels leaving from the area of Cartagena, Colombia, to Central America, and traveling in international waters on vessels subject to the jurisdiction of the United States.  During the investigation, pursuant to Colombian judicial authority, law enforcement recorded the defendants’ telephone conversations in which they planned the operation, including the use of two 40-foot go-fast vessels.  These boats were later intercepted in February and April 2010 in international waters by the United States Coast Guard.  Go-fast vessels are specially equipped speed boats designed to transport large quantities of narcotics.     

This Organized Crime Drug Enforcement Task Force (OCDETF) case, called Operation Pacific Empire, is being investigated by DEA’s Cartagena Country Office, assisted by DEA’s offices in Miami and Puerto Rico.  The Cartagena office worked in partnership with the Judicial Police of the Prosecutor General’s Office in Colombia (CTI) and the Colombian National Police.  

The case is being prosecuted by Trial Attorneys Meredith Mills, Brad Price and Paul Laymon of the Criminal Division’s Narcotic and Dangerous Drug Section, with significant assistance from the Judicial Attachés in Bogotá, Colombia, the Criminal Division’s Office of International Affairs, and the Prosecutor General’s Office of the Republic of Colombia.   

Eric St-Cyr, an investment advisor, and Patrick Poulin, an attorney, were sentenced today to serve 14 months in prison and three years of supervised release each for conspiring to launder monetary instruments, the Justice Department and Internal Revenue Service (IRS) announced.

Senior U.S. District Judge T.S. Ellis III imposed the sentences after considering the defendants’ substantial cooperation with ongoing government investigations.  St-Cyr and Poulin, both Canadian citizens, along with Joshua Vandyk, a U.S. citizen, were indicted by a grand jury in the U.S. District Court for the Eastern District of Virginia on March 6, and the indictment was unsealed March 12 after the defendants were arrested in Miami.  St-Cyr, 50, pleaded guilty on June 27 and Poulin, 41, pleaded guilty on July 11.  Vandyk, 34, pleaded guilty on June 12 and was sentenced on Sept. 5 to serve 30 months in prison.     

According to the plea agreements and statements of facts, Vandyk, St-Cyr and Poulin conspired to conceal and disguise the nature, location, source, ownership and control of property believed to be the proceeds of bank fraud, specifically $2 million.  Vandyk, St-Cyr and Poulin assisted undercover law enforcement agents posing as U.S. clients in laundering purported criminal proceeds through an offshore structure designed to conceal the true identity of the proceeds’ owners.  Vandyk and St-Cyr invested the laundered funds on the clients’ behalf and represented that the funds would not be reported to the U.S. government.

“The sentences imposed by the court today show that those who use offshore accounts and entities for money laundering and tax evasion will be punished,” said Deputy Assistant Attorney General Ronald A. Cimino for the Justice Department’s Tax Division.  “This investigation, which lasted years, involved extensive undercover activity as well as cooperation from multiple foreign law enforcement agencies.  The undercover IRS agents in this investigation went to Canada, the Turks and Caicos and the Cayman Islands to develop the evidence.  These two defendants are cooperating with the IRS, and we anticipate that other investigations will develop from the information they have provided.”

“These defendants played a shell game by creating offshore entities designed to help their U.S. clients evade taxes and other legal requirements, and they used that same shell game to launder purported criminal proceeds,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia.  “We are committed to working with our law enforcement partners to penetrate and combat these schemes wherever they occur.”

“Today’s sentencings close the door on a business built on skirting the law,” said Chief of IRS-Criminal Investigation Richard Weber.  “This investigation reinforces our commitment to investigate and prosecute criminals worldwide who conduct illegal financial transactions, launder money or attempt to conceal the true source of their income in order to evade paying taxes.  This should send a clear message to those involved in this type of crime—we will find you.”

According to court documents, Vandyk and St-Cyr lived in the Cayman Islands and worked for an investment firm based there.  St-Cyr was the founder and head of the investment firm, whose clientele included numerous U.S. citizens.  Poulin, an attorney at a law firm based in Turks and Caicos, worked and resided in Canada as well as Turks and Caicos.  His clientele also included numerous U.S. citizens.  Vandyk, St-Cyr and Poulin solicited U.S. citizens to use their services to hide assets from the U.S. government, including the IRS.  Vandyk and St-Cyr directed the undercover agents to create an offshore corporation with the assistance of Poulin and others because they and the investment firm did not want to appear to deal with U.S. clients.  Vandyk, St-Cyr and Poulin used the offshore entity to move money into the Cayman Islands and used Poulin as a nominee intermediary for the transactions.

According to court documents, Poulin established an offshore corporation called Zero Exposure Inc. for the undercover agents and served as a nominal board member in lieu of the clients.  Poulin transferred approximately $200,000 that the defendants believed to be the proceeds of bank fraud from the offshore corporation to the Cayman Islands, where Vandyk and St-Cyr invested those funds outside of the United States in the name of the offshore corporation.  The investment firm represented that it would neither disclose the investments or any investment gains to the U.S. government, nor would it provide monthly statements or other investment statements to the clients.  Clients were able to monitor their investments online through the use of anonymous, numeric passcodes.  Upon request from the U.S. client, Vandyk and St-Cyr liquidated investments and transferred money, through Poulin, back to the United States.  According to Vandyk and St-Cyr, the investment firm would charge clients higher fees to launder criminal proceeds than to assist them in tax evasion.

The case was investigated by special agents of the IRS-Criminal Investigation.  Trial Attorney Todd Ellinwood and Assistant Chief Caryn Finley of the Tax Division and Assistant U.S. Attorney Kosta Stojilkovic for the Eastern District of Virginia are prosecuting the case.  The Justice Department and the IRS would like to thank the Royal Canadian Mounted Police, the Royal Cayman Islands Police Service and the Royal Turks and Caicos Islands Police Force for their assistance in this investigation.

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

VALLEJO, Calif. – U.S. Marshal Don O’Keefe is proud to announce the arrest of Fermin Aguilar-Agueta, 26, a suspected MS-13 gang member, who is wanted in El Salvador for aggravated homicide.

Aguilar-Agueta is suspected by Salvadorian authorities of being involved in a drunken altercation between rival gang factions, which resulted in the shooting death of an individual in March 2007. He was formally charged with aggravated homicide in El Salvador in 2009. An Interpol Red Notice was issued by El Salvador in 2013 for Aguilar-Agueta initiating an international manhunt.

On September 22, Aguilar-Agueta was spotted in a vehicle by Concord Police Department officers during a routine traffic stop. Officers gathered information about him, as well as his associates, and forwarded the information to the U.S. Marshals Fugitive Task Force, which specializes in the apprehension of domestic and foreign fugitives.

The following day, based on the information from the Concord Police, and in coordination with Deputy U.S. Marshals at Interpol Washington, the U.S. National Central Bureau (USNCB), in Washington, D.C.,  the U.S. Marshals Service Pacific Southwest Regional Fugitive Task Force in the Bay Area, which consists of several federal, state, and local agencies, to include officers from Immigration and Customs Enforcement (ICE), were able to determine that Aguilar-Agueta was residing illegally in the U.S., and that he had no record of legal entry.

U.S. Marshals Task Force members located the vehicle associated with the traffic stop at the 1200 block of Georgia Street, Vallejo, CA, and established surveillance. Soon after, Aguilar-Agueta was spotted getting into the vehicle. A traffic stop was conducted and he was taken into custody without incident. Aguilar-Agueta is currently in immigration custody pending deportation.

To find more information on fugitives currently being sought by the U.S. Marshals in Northern California, or to submit an anonymous tip on the whereabouts of a fugitive, please visit: http://northerncaliforniamostwanted.org. The U.S. Marshals Service is the primary federal agency charged with conducting fugitive investigations throughout the country. The U.S. Marshals regularly works in concert with other federal, state, and local law enforcement agencies to seek out and arrest violent fugitives and sex offenders, and has established task forces throughout the nation to facilitate the apprehension of fugitives. aguilar_agueta_press_release.pdf

A Florida managing member of a shell company pleaded guilty today in federal court in Tampa for his role in a multi-million dollar health care fraud and money laundering scheme. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Acting Special Agent in Charge Derrick Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office, and Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office made the announcement.

Leonard Austin, 45, of Lake Worth, Florida, pleaded guilty in the U.S. District Court for the Middle District of Florida to conspiracy to commit money laundering of health care fraud proceeds.  His sentencing date will be set at a later date by the court. 

According to his plea agreement and factual proffer, from June 2010 through April 2014, Austin’s co-conspirators submitted $12 million in fraudulent claims to Medicare through three purported health clinics, Cornerstone Health Specialists of Lakeland, Florida, Summit Health Specialists P.L. of Tampa, Florida, and Coastal Health Specialists LLC of Lakeland and Melbourne, Florida.  These fraudulent claims included claims resulting from illegal kickback arrangements and claims for radiology, audiology, neurology, and cardiology services that were never rendered.  In fact, some of the services were purportedly provided to Medicare beneficiaries who actually had died before the supposed date of service. Medicare paid over $2,500,000 on the fraudulent claims. 

Austin admitted that he and his co-conspirators attempted to conceal the funds by transferring funds through bank accounts for the clinics and Austin’s shell company, BONB LLC, aka BioScan, and other entities. 

Four other defendants were indicted in this case on health care fraud and money laundering charges and are scheduled for a jury trial on April 6, 2015. An indictment is merely an accusation, and the 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 and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and U.S. Attorney’s Office for the Middle District of Florida.  This case is being prosecuted by Trial Attorney Christopher J. Hunter 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 2,000 defendants who have collectively billed the Medicare program for more than $6 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.

ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendant JEREMIAH SANTOS ISEZAKI, age 30, was sentenced on October 1, 2014, in the District Court of Guam by Chief Judge Frances Tydingco-Gatewood.

Defendant Isezaki was sentenced to 57 months in prison with credit for time served.  He will be placed on three years supervised release when he gets out of jail.  Isezaki was assessed a $100 special assessment fee and ordered to perform 25 hours of community service.

On January 30, 2012, a Guam Police Department (GPD) officer attempted to pull over Isezaki for a traffic violation.  Defendant Isezaki kept going which led to a high speed chase reaching speeds of up to 100 miles an hour.  Defendant eventually ran off the road while driving his motorcycle and GPD officers arrested him.  The officers recovered a Colt .45 1911 pistol. Defendant Isezaki was convicted by a jury on June 12, 2012.

Credit for the investigation is given to GPD together with and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).  The case was handled by Assistant U.S. Attorney Clyde Lemons.

A former deputy director of the Arkansas Department of Human Services (ADHS), a multi-billion dollar state agency, pleaded guilty today for providing official assistance in exchange for bribes from the owner of two mental health companies.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and First Assistant United States Attorney Patrick C. Harris of the Eastern District of Arkansas made the announcement.

Steven B. Jones, 49, of Marion, Arkansas, pleaded guilty to a two-count information charging him with conspiracy and bribery concerning programs receiving federal funds.  A sentencing hearing is scheduled for April 2, 2015, before U.S. District Judge Billy Roy Wilson of the Eastern District of Arkansas.

According to his plea agreement, Jones served as deputy director of ADHS from approximately April 2007 until July 2013.  While serving in that capacity, Jones solicited and accepted multiple cash payments and other things of value from the owner of two businesses that provided inpatient and outpatient mental health services to juveniles.  This individual provided the cash payments and other things of value to Jones through the use of two intermediaries, a local pastor and a former county probation officer and city councilman.

As part of his plea, Jones admitted that in return for the bribes, he provided official assistance, including providing internal ADHS information about the individual’s businesses.  Jones further admitted that he and other members of the conspiracy concealed their dealings by, among other things, holding meetings at restaurants in Memphis, Tennessee, or rural Arkansas, where they would not be easily recognized; funneling the cash payments through the pastor’s church; providing the bribe payments in cash so that the transactions would not be easily traceable; and speaking in code during telephone conversations. 

The case was investigated by the FBI’s Little Rock Field Office, and is being prosecuted by Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorneys Patricia S. Harris and Angela S. Jegley of the Eastern District of Arkansas. 

Today, Tamika Floyd pleaded guilty to one count of conspiracy to defraud the United States and one count of aggravated identity theft for her involvement in a Stolen Identity Refund Fraud Scheme (SIRF), announced Deputy Assistant Attorney General Ronald A. Cimino for the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.

According to the court documents, between 2006 and 2014, Floyd worked at the State of Alabama Department of Public Health and the Alabama Department of Human Resources, both located in Opelika, Alabama.  At both jobs, she had access to the identification information of individuals.   Beginning in 2012, Floyd was approached to obtain names from her employer that would be used to file false tax returns.  Floyd agreed to steal the names and in turn provided them to her co-conspirator.  Most of the names stolen belonged to teenagers.  Floyd’s co-conspirators used the names she provided to file more than 3,000 fraudulent federal income tax returns that claimed more than $7.5 million in refunds.

A sentencing date has not been scheduled.

The case was investigated by special agents of the Internal Revenue Service - Criminal Investigation.  Trial Attorney Michael Boteler of the Tax Division and Assistant U.S. Attorney Todd Brown for the Middle District of Alabama are prosecuting the case. 

 

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

John P. Carlin, Assistant Attorney General for National Security, Ronald C. Machen Jr., U.S. Attorney for the District of Columbia, and Eric L. Hirschhorn, U.S. Department of Commerce Under Secretary for Industry and Security announced today that Robbins & Myers Belgium S.A., a wholly-owned subsidiary of Robbins & Myers Inc., pleaded guilty today to four counts of violating the International Emergency Economic Powers Act and the Export Administration Regulations.

The guilty plea stemmed from actions by Robbins & Myers Belgium that, in 2006, caused four illegal exports, reexports and/or transshipments of stators—important components of oil extraction equipment—that had made from steel that had been milled in the United States to a customer operating oil fields in Syria.

As part of its plea agreement Robbins & Myers Belgium agreed to pay a total of $1 million in criminal fines ($250,000 for each violation) and to serve a term of corporate probation.  The gross proceeds received by Robbins & Myers Belgium for these four illegal exports was $31,716.  As part of its plea agreement, Robbins & Myers Belgium has forfeited the entire $31,716 to the government.  Robbins & Myers Belgium has also entered into a civil settlement with the Department of Commerce requiring the company to pay $600,000 in civil penalties.

Robbins & Myers Belgium entered the guilty plea this afternoon and was sentenced this afternoon in accordance with the terms of the plea agreement by the Honorable Judge Beryl A. Howell in U.S. District Court for the District of Columbia.

“This case shows that the United States will vigorously enforce its export laws against companies doing business with Syria, a state-sponsor of terrorism and home to one of the most brutal regimes on earth,” said U.S. Attorney Machen.  “The Department of Justice will hit companies that do business with Syria where it hurts most: the bottom line.  This company will pay fines, penalties, and forfeitures more than 50 times greater than the proceeds of its sales.”          

“The significant civil and criminal penalties in this case show our resolve to pursue and prosecute those who flout our export control laws,” said Under Secretary of Commerce Hirschhorn.  “We will continue to work in concert with our partner agencies to ensure that U.S. technology stays out of the wrong hands.”

According to court documents, in or about May 2006 an internal auditor with Robbins & Myers Inc. (the U.S. parent company of Robbins & Myers Belgium which was acquired by National Oilwell Varco in 2013) discovered that the company’s Belgian subsidiary had shipped stators made from U.S.-origin steel to a customer in Syria.  The internal auditor informed senior management at Robbins & Myers Inc. of the shipments; management then confirmed that those shipments had occurred and that they were likely in violation of U.S. law which prohibited trade in U.S.-origin goods with Syria.  Although the U.S.-based parent directed Robbins & Myers Belgium to stop such shipments, the subsidiary continued to make shipments of stators to Syria between August 2006 and October 2006.  Following those illegal shipments, employees of the Belgian subsidiary attempted to hide documents related to those shipments from the government’s investigators.

In announcing the guilty plea and sentencing, U.S. Attorney Machen and Under Secretary Hirschhorn commended Special Agents Richard Jereski and Joseph Bankins, who worked under the direction of Special Agent in Charge Nasir Khan, as well as Attorney Advisor R. Elizabeth Abraham of the Department of Commerce's Bureau of Industry and Security.  They also thanked Special Assistant U.S. Attorney John W. Borchert and the Counterespionage Section of the Justice Department's National Security Division for their roles in prosecuting this matter.

An Alabama tax return preparer was sentenced to serve 36 months in prison for aiding in the preparation of false tax returns, the Justice Department and Internal Revenue Service (IRS) announced today. 

Russell Burroughs was also ordered to pay restitution in the amount of $211,960.

According to court documents, during the 2008 through 2010 tax seasons, Burroughs owned and operated Computer Services, a tax return preparation business, located in Montgomery, Alabama.  Burroughs admitted that he deliberately falsified information on client tax returns in order to illegally generate higher tax refunds.  He intentionally included false items such as false business income and losses, false Schedule A deductions, false real estate rental losses, false education credits and false energy credits in order to inflate his client’s refunds.  At his sentencing hearing, the court found that the tax loss associated with the false returns Burroughs filed exceeded $2.9 million.

This case was investigated by special agents of IRS - Criminal Investigation.  Trial Attorneys Katherine Reinhart, Charles M. Edgar Jr. and Michael Boteler of the Justice Department’s Tax Division are prosecuting the case.

The United States filed a civil injunction suit against a Hixson, Tennessee, man to enjoin him from preparing federal income tax returns for others, the Justice Department announced today.

According to the complaint filed in the U.S. District Court for the Eastern District of Tennessee, Kevin Walker is alleged to have prepared federal income tax returns for his customers with fake businesses; reported false profits, losses and expenses; improperly claimed false employee business expenses and falsely claimed the Earned Income Tax Credit and education-related tax credits.  According to the complaint, two returns prepared over a two-year period for one customer claimed bogus receipts, but no expenses, from a fictitious business so as to maximize tax refunds based on the Earned Income Tax Credit.  As a result, the customer erroneously received income tax refunds of more than $6,000 for the two years.  The Internal Revenue Service (IRS) estimates that Walker’s activities over the last five years have cost the U.S. Treasury as much as hundreds of thousands of dollars in lost income tax revenue.

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2014.  The IRS has some tips on their website for choosing a tax preparer.  In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers.  Information about these cases is available on the Justice Department 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.

Related Materials:

United States v. Kevin M. Walker
Complaint for Preliminary and Permanent Injunction