District Not Recorded

A former FBI special agent and a conspirator pleaded guilty in the District of Utah yesterday and today to participating in a bribery scheme to obstruct a grand jury investigation in exchange for the promise of cash and multimillion dollar business contracts offered by a businessman under investigation.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Acting U.S. Attorney Carlie Christensen of the District of Utah and Justice Department Inspector General Michael E. Horowitz made the announcement after the guilty pleas were accepted by U.S. District Judge Tena Campbell.

“No one is above the law, no matter what rank or badge a person might hold,” said Assistant Attorney General Caldwell.  “Corruption by those entrusted to enforce the law strikes at the heart of our criminal justice system, and it will not be tolerated.  This case lays bare a disgraceful attempt by a veteran FBI agent to get rich by thwarting an ongoing investigation.  The Justice Department will fight corruption wherever we find it, even within the ranks of federal law enforcement.”

“These plea agreements demonstrate that Federal law enforcement officers who sell their badges for cash and frustrate the administration of justice will be held accountable for their actions,” said Inspector General Horowitz.  “Department employees are held to the highest standards, and we cannot permit our criminal justice system to be stained by such bribery and corruption.”

“When a law enforcement officer violates his oath and the public’s trust by breaking the law, he must be held accountable,” said Acting U.S. Attorney Christensen.  “In this case, former Agent Lustyik’s decision to enter into a conspiracy to obstruct a significant fraud investigation in Utah is a troubling reminder that corruption may exist even among those we entrust with protecting our citizens and upholding our laws.”

A 24-year veteran of the FBI, Robert Lustyik Jr., 51, of Sleepy Hollow, New York, pleaded guilty on Sept. 30, 2014, to an 11-count indictment charging him with conspiracy, eight counts of honest services wire fraud, obstruction of a grand jury proceeding, and obstruction of an agency proceeding.  A childhood friend of Lustyik, Johannes Thaler, 50, of New Fairfield, Connecticut, pleaded guilty today to conspiracy to commit bribery, obstruction of a grand jury proceeding and obstruction of an agency proceeding.  Sentencing is scheduled for Jan. 5, 2015.

In court documents and at the plea hearings, Lustyik and Thaler admitted that from October 2011 to September 2012, Lustyik, while employed as an FBI counterintelligence special agent, and Thaler conspired to use Lustyik’s official position to obstruct a criminal investigation into Michael Taylor, a businessman who owned and operated American International Security Corporation and was under investigation for paying kickbacks to obtain a series of contracts from the Department of Defense worth approximately $54 million.  Taylor promised Lustyik and Thaler that in exchange for their help, he would provide them cash and multimillion dollar business contracts.  Taylor told the two men: “I’ll make you guys more money than you can believe, provided they don’t think I’m a bad guy and put me in jail.” 

Court documents state that Lustyik attempted to obstruct the investigation into Taylor by opening Taylor as an official FBI source in an effort to persuade the FBI, the Justice Department and the prosecutors and law enforcement agents investigating Taylor that Taylor’s usefulness as a source outweighed the government’s interest in prosecuting him.  Lustyik also advocated on Taylor’s behalf directly to the prosecutors and law enforcement agents, urging them to use Taylor as a cooperating witness and emphasizing that indicting Taylor would threaten the nation’s security. 

According to court documents, while Lustyik was obstructing the investigation into Taylor, Lustyik suggested that Thaler “blatantly” ask Taylor for money, emphasizing “he knows we are keeping him outta jail.”  Lustyik explained to Thaler that on his upcoming trip to meet Taylor in Lebanon, “Taylor is gonna hand you cash in Lebanon,” “[l]ike 150 gs.”  When Thaler asked Lustyik how he was supposed to bring that much cash back to the United States, Lustyik instructed him “[i]n your pants.  Or wire it?  They won’t stop 2 white guys at customs without a reason, [o]r I meet you at customs at JFK and cred you in.” 

Court records state that during the conspiracy, Lustyik and Thaler acknowledged that Taylor was probably guilty, but they boasted about their success in using Lustyik’s official position to obstruct the investigation into Taylor, with Lustyik texting Thaler, “at this point IF he is indicted there is NO WAY he gets convicted even though he Prob did it.”  During the conspiracy, Lustyik texted Thaler, “I think we are rich by Christmas!!”  When Thaler asked why, Lustyik responded, “he [Taylor] is gonna be free!!!!!!!!”  

Taylor pleaded guilty in the District of Utah to honest services wire fraud for his role in the scheme on Nov. 27, 2013.  He is scheduled for sentencing on Jan. 5, 2015.

The investigation was conducted by Assistant Special Agent in Charge Tom Hopkins of the U.S. Department of Justice Office of Inspector General.  The case is being prosecuted by Deputy Chief Peter Koski and Trial Attorney Maria Lerner of the Criminal Division’s Public Integrity Section, and Trial Attorney Ann Marie Blaylock of the Criminal Division’s Asset Forfeiture and Money Laundering Section.  Scott Ferber of the Counterespionage Section of the National Security Division also assisted in the prosecution. 

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A Florida man was sentenced today to serve 27 months in prison for attempting to purchase sensitive, detailed personal identifying information, known as PII – including Social Security numbers and bank account numbers – to open credit card accounts and file fraudulent tax returns.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney John P. Kacavas of the District of New Hampshire made the announcement.  U.S. District Judge Steven J. McAuliffe of the District of New Hampshire imposed the sentence.             

Derric Theoc, 36, was indicted by a federal grand jury in July 2013 and pleaded guilty in June 2014 to one count of attempted access device fraud.  In addition to his prison sentence, he was ordered to serve two years of supervised release. 

In his guilty plea, Theoc admitted that, in April 2013, he attempted to purchase packages of personal identifying information for 100 people from an undercover United States Secret Service agent who was posing as a known, prolific vendor of personally identifiable information, Hieu Minh Ngo.  Theoc had previously made multiple similar purchases from Ngo. 

Ngo, a Vietnamese national, pleaded guilty on March 3, 2013, to wire fraud, identification fraud and fraud in connection with access devices and on Aug. 21, 2014, to a separate indictment to four counts of computer fraud.  Sentencing is scheduled for Dec. 1, 2014.  According to court documents, Ngo administered websites from 2007 through February 2013 that allowed more than 1,000 individuals from throughout the world to access databases containing personal identifying information and conduct more than 3 million queries to obtain a person’s date of birth, Social Security number and other information.  He also sold or transferred more than 150,000 packages of personally identifiable information that would allow criminals to take over the identity of another person.

The packages of personal identifying information that Theoc attempted to purchase typically included a person’s name, address, date of birth, Social Security number, mother’s maiden name, driver’s license number, bank account number, bank routing number, email account, account password and place of work.  Theoc further admitted that he attempted to purchase the information with the intent to obtain credit cards to make purchases or withdraw money and to file fraudulent tax returns in an effort to receive refunds to which he was not entitled.

The case is being investigated by the United States Secret Service.  The case is being prosecuted by Senior Counsel Mysti Degani of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Arnold H. Huftalen of the District of New Hampshire. 

Flakeboard America Ltd. abandoned its plan to acquire one medium-density fiberboard (MDF) and two particleboard mills from SierraPine after the Department of Justice expressed concerns about the transaction’s likely anticompetitive effects in MDF.  The department said that the transaction likely would have substantially lessened competition in the market for the production of MDF sold to customers in the west coast states of California, Oregon and Washington.

MDF is a manufactured wood product widely used in furniture, kitchen cabinets, and decorative mouldings.  An increase in the price of MDF would likely result in significant harm to MDF consumers on the West Coast, the department said.

“This deal threatened to weaken competition and raise MDF prices for customers on the West Coast,” said Bill Baer, Assistant Attorney General of the Department of Justice’s Antitrust Division.  “The companies’ decision to abandon the deal is a victory for consumers, who will continue to enjoy the benefits of MDF competition between Flakeboard and SierraPine.”

Flakeboard and SierraPine are two of only four significant suppliers of MDF to the West Coast.  Both companies operate MDF mills in Oregon—Flakeboard in Eugene; SierraPine in Medford—and the nearest competing mill is several hundred miles away.  For many customers, Flakeboard and SierraPine are the two closest sellers of MDF.  The proposed merger would have given the combined firm a 58 percent market share for the thicker and denser grades of MDF that Flakeboard and SierraPine sell on the West Coast.

According to the department, the acquisition would have eliminated significant head-to-head competition between Flakeboard and SierraPine.  In addition, by gaining control over SierraPine’s MDF mill, the department said that Flakeboard would have been in a better position to raise prices by restricting the amount of MDF available to the West Coast.  The acquisition also would have enhanced the risk of coordination between Flakeboard and its few remaining rivals on output and prices, the department said.

Flakeboard is a Delaware corporation headquartered in Ontario, Canada.  Flakeboard’s parent company is Celulosa Arauco y Constitución (Arauco), which is held by Inversiones Angelini y Compañia Limitada, a Chilean corporation headquartered in Santiago, Chile.  In 2013, Flakeboard’s annual revenues from its MDF business were approximately $380 million. SierraPine is a California limited partnership headquartered in Roseville, California.  In 2013, SierraPine’s annual revenues from its MDF business were approximately $70 million.

Four retired and one active-duty Army National Guard officials and one civilian have been charged for their alleged participation in bribery schemes related to the awarding of millions of dollars of Army National Guard marketing, retention and recruitment contracts.  Two of the retired Army National Guard officials and the civilian pleaded guilty for their roles in the schemes.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, U.S. Attorney Loretta E. Lynch of the Eastern District of New York, Assistant Director in Charge Andrew McCabe of the FBI’s Washington Field Office, Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office and Director Frank Robey of the U.S. Army Criminal Investigative Command’s Major Procurement Fraud Unit (Army-CID) made the announcement.

“As captured by its motto, the Army National Guard is ‘always ready, always there’ for the American people,” said Assistant Attorney General Caldwell.  “Unfortunately, today’s charges expose National Guard officials who were ‘always ready’ to pocket bribes and ‘always there’ to take kickbacks.  In return, the charged officials allegedly subverted the open bidding process and illegally steered millions of taxpayer dollars to the bribe-payers through marketing and advertising contracts.  Corruption should know no place in American government, but least of all in the military that so honorably serves our country.  The Criminal Division is committed to rooting out corruption wherever we find it, including in the military, so that we can ensure that no one is putting the public’s trust up for sale.”

“These criminal charges and guilty pleas reflect our continued commitment to rooting out public corruption wherever it occurs,” said U.S. Attorney Boente.  “The public contracting process should be one of integrity and fairness, and these cases should send a strong message that public corruption will be vigorously prosecuted in the military as well as other areas of government.”

“This investigation has sadly reminded us that even some members of our military are willing to trade on the trust their country placed in them to line their pockets with the profits of corrupt activities,” said U.S. Attorney Lynch.  “We and our law enforcement partners will constantly guard against and root out such corruption wherever we find it.”

Charles Sines, 56, of Stafford, Virginia, a retired colonel from the United States Army National Guard; Wesley Russell, 48, of Albany, Indiana, a retired lieutenant colonel from the Indiana Army National Guard; and Jason Rappoccio, 39, of Hampton, South Carolina, an active-duty sergeant first class from the Army National Guard are charged with conspiracy to solicit bribes and the solicitation of bribes.  Russell and Rappoccio allegedly asked for and received bribes, and Sines allegedly provided bribes.

Robert Porter, 50 of Columbia, Maryland, a retired colonel from the Army National Guard, and Timothy Bebus, 44, of Forest Lake, Minnesota, a retired sergeant major of the Minnesota Army National Guard and owner of Mil-Team Consulting and Solutions LLC, each pleaded guilty in the Eastern District of Virginia in September 2014 to conspiracy to commit bribery and bribery of a public official.  Julianne Hubbell, 45, of Brooklyn Park, Minnesota, a civilian who partnered with her brother, Bebus, as the vice president of operations of Mil-Team, also pleaded guilty in September 2014 to conspiracy to commit bribery.  Sentencing hearings for Bebus and Hubbell are scheduled for Jan. 23, 2015, and for Porter on Jan. 30, 2015.

“The alleged steering of large government contracts is offensive to active duty, reserve and retired members of the National Guard Bureau who took an oath to support and defend the Constitution,” said FBI Assistant Director in Charge McCabe.  “It is also offensive to average American citizens who trust their government and its contractors to use taxpayer money wisely.  We urge anyone who has knowledge of corruption and abuse in federal government contracting to contact the FBI.”

“The Department of Defense places special trust and confidence in its service members, particularly those in positions to influence the expenditure of taxpayer dollars,” said DCIS Special Agent in Charge Craig.  “Guardsmen hold a unique position in our society, representing both their state and military service.  The alleged behavior uncovered in this investigation was a disservice to both, but in no way typical of those honorable women and men that serve in our Army and Air National Guard.  Identifying and investigating fraud and public corruption remains the highest of priorities for the Defense Criminal Investigative Service.  Alongside our law enforcement partners, we will continue to aggressively pursue allegations of fraud impacting Department of Defense resources.”

“We have highly-trained, Army CID special agents who are extremely talented and very capable of rooting out this type of corruption within our ranks,” said Army-CID Director Robey.   “People must realize, both in and out of uniform, that fraud will not be tolerated within the Army and Department of Defense, and greed cannot and will not trump duty and honor.”

As set forth in the indictments and other publicly-filed documents, the National Guard Bureau is a joint activity of the U.S. Department of Defense (DOD), state Army National Guard units and the Departments of the Army and Air Force.  The National Guard Bureau, located in Arlington, Virginia, oversees the distribution of federal funding provided to the Army National Guard and its state units.

The DOD provides millions of dollars of federal funds to the Army National Guard for, among other things, advertising, marketing and sponsorships in order to recruit new members.  The National Guard Bureau uses these funds to promote the Army National Guard by entering into advertising, marketing and sponsorship contracts.  For example, through advertising, marketing and sponsorship contracts, the National Guard was an official sponsor of Dew Tour, Warrior Dash, and American Motorcycle Association Supercross’s events, where recruiters handed out promotional items and recruited new members.  The National Guard also had a contract to sponsor Michael Jordan’s AMA Superbike team.

The National Guard Bureau can avoid a competitive bid process by awarding these federally-funded marketing contracts to Small Business Administration (SBA) certified 8(a) companies, which are minority-owned businesses.  The National Guard Bureau also provides a portion of the federal funds to the state units to allocate. 

The indictments allege that Sines and Rappoccio evaded the competitive bid process by using 8(a) companies to award contracts in exchange for bribes. 

According to allegations in the indictment against him, Sines founded a company, Financial Solutions, after retiring from the Army National Guard as a colonel.  Sines allegedly paid Porter, a then-active-duty colonel in the Army National Guard, a percentage of all contracts that Porter steered to Financial Solutions through 8(a) companies.  As the director of the National Guard Bureau’s Guard Strength Directorate, Porter had substantial influence over the awarding of National Guard Bureau contracts, and allegedly steered approximately $4.5 million worth of contracts to Sines and Financial Solutions.

The indictment against Russell alleges that, while on active duty as a lieutenant colonel in the Indiana Army National Guard, Russell demanded 15 percent of all profits that a private marketing company would receive from state Army National Guard units.  In return for his 15 percent cut of the profits, Russell allegedly promoted and encouraged state Army National Guard units to purchase the marketing company’s products. 

The indictment against Rappoccio, an active-duty sergeant first class in the Army National Guard, alleges that Bebus and Hubbell paid Rappoccio a $30,000 bribe for steering a contract worth approximately $3.7 million to an 8(a) company chosen by Bebus.  In pleading guilty, Bebus and Hubbell admitted to paying this bribe.  In an effort to conceal the bribe payment, Bebus, Hubbell and others allegedly arranged for the payment of $6,000 in cash to Rappoccio, and the remaining $24,000 was allegedly routed from a business account controlled by Hubbell to an account controlled by Bebus and Hubbell’s brother-in-law, and then provided to Rappoccio in the form of a cashier’s check to Rappoccio’s wife. 

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

The case is being investigated by the FBI’s Washington Field Office, with assistance from DCIS’s Mid-Atlantic Field Office and Army-CID’s Expeditionary Fraud Resident Agency’s Major Procurement Fraud Unit.  The case is being prosecuted by Trial Attorney Alison L. Anderson of the Criminal Division’s Fraud Section, Assistant U.S. Attorney Jonathan Fahey of the Eastern District of Virginia and Assistant U.S. Attorneys Marisa Seifan and Martin Coffey of the Eastern District of New York.

Allegations of bribery or corruption within the National Guard Bureau’s retention and recruitment contracting can be reported to the FBI’s Washington Field Office at (202) 278-2000 or the FBI’s Northern Virginia Public Corruption Hotline at (703) 686-6225.

Bebus Statement of Facts

Hubbell Statement of Facts

Porter Statement of Facts

Indictment - Sines 14cr325

Indictment - Russell 14cr324

Indictment - Rappoccio 14cr323

A federal jury in Detroit late yesterday convicted the operator of an adult day care center and two individuals who owned and operated a network of home health care companies for their participation in a $29 million Medicare fraud scheme.

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 U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Office of Investigations Detroit Office and Special Agent in Charge Jarod Koopman of the Internal Revenue Service – Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.

According to evidence presented at trial, Felicar Williams, 51, of Dearborn, Michigan, operated Haven Adult Day Care Center LLC (Haven), which purported to provide adult day care services for patients suffering from mental health disorders such as schizophrenia and dementia.  At Williams’s direction, Haven billed Medicare for sophisticated mental health services purportedly provided by other, unlicensed staff members. 

Evidence at trial also established that Abdul Malik Al-Jumail, 54, and his daughter, Jamella Al-Jumail, 25, both of Brownstown, Michigan, owned and operated a series of fraudulent home health care companies, including ABC Home Care Inc., Associates in Home Care Inc., Accessible Home Care Inc., Swift Home Care LLC, and Be Well Home Care LLC.  The companies billed Medicare for home health services that were not needed or not provided.  At the instruction of both Abdul Malik Al-Jumail and Jamella Al-Jumail, employees of the home health companies fabricated patient medical records to make it appear that the services were needed and provided.

According to evidence presented at trial, Abdul Malik Al-Jumail paid kickbacks to Williams to obtain billing information about patients at Haven.  He then used the information to bill Medicare for home health care services that were never provided.

In addition, the evidence at trial showed that, on May 2, 2012, the day her father was arrested, Jamella Al-Jumail instructed an employee to retrieve falsified patient medical records from the company.  Later that day, Jamella Al-Jumail and others helped burn the false records. 

Haven and the various home health care companies billed Medicare for more than $29 million in the course of the conspiracy.

The defendants were charged in a superseding indictment on May 1, 2014.  After the 12-week jury trial, Williams was found guilty of conspiracy to commit health care fraud and conspiracy to pay and receive health care kickbacks in relation to the sale of Medicare billing information to Abdul Malik Al-Jumail.  

Abdul Malik Al-Jumail and Jamella Al-Jumail were each found guilty of conspiracy to commit health care fraud.  Abdul Malik Al-Jumail was also found guilty of conspiracy to pay and receive health care kickbacks.  Jamella Al-Jumail was also found guilty of destroying documents in connection with a federal investigation. 

Carey Vigor, 61, a psychiatrist from Algonac, Michigan, was also charged in the indictment and was acquitted by the jury.

Sentencing has not yet been scheduled.  Two other individuals charged in the indictment, Mohammed Sadiq and Philandis Thomas, are scheduled for trial in October 2014.  One individual remains a fugitive. 

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

The case is being investigated by HHS-OIG, FBI and IRS-CI 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 Eastern District of Michigan.  The case is being prosecuted by Trial Attorneys Patrick Hurford, Chris Cestaro and Brooke Harper 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 Team (HEAT), go to: www.stopmedicarefraud.gov.

PORTLAND, Oregon. – Mohamed Osman Mohamud, 23, who was convicted in 2013 of attempting to use a weapon of mass destruction (explosives) in connection with a plot to detonate a vehicle bomb at an annual Christmas tree lighting ceremony in Portland, was sentenced today to serve 30 years in prison, followed by a lifetime term of supervised release.

Mohamud, a naturalized U.S. citizen from Somalia and former resident of Corvallis, Oregon, was arrested on Nov. 26, 2010, after he attempted to detonate what he believed to be an explosives-laden van that was parked near the tree lighting ceremony in Portland.  The arrest was the culmination of a long-term undercover operation, during which Mohamud was monitored closely for months as his bomb plot developed.  The device was in fact inert, and the public was never in danger from the device.

At sentencing, United States District Court Judge Garr M. King, who presided over Mohamed’s 14-day trial, said “the intended crime was horrific,” and that the defendant, even though he was presented with options by undercover FBI employees, “never once expressed a change of heart.”  King further noted that the Christmas tree ceremony was attended by up to 10,000 people, and that the defendant “wanted everyone to leave either dead or injured.”  King said his sentence was necessary in view of the seriousness of the crime and to serve as deterrence to others who might consider similar acts.    

“With today’s sentencing, Mohamed Osman Mohamud is being held accountable for his attempted use of what he believed to be a massive bomb to attack innocent civilians attending a public Christmas tree lighting ceremony in Portland,” said John P. Carlin, Assistant Attorney General for National Security.  “The evidence clearly indicated that Mohamud was intent on killing as many people as possible with his attack.  Fortunately, law enforcement was able to identify him as a threat, insert themselves in the place of a terrorist that Mohamud was trying to contact, and thwart Mohamud’s efforts to conduct an attack on our soil.  This case highlights how the use of undercover operations against would-be terrorists allows us to engage and disrupt those who wish to commit horrific acts of violence against the innocent public.  The many agents, analysts, and prosecutors who have worked on this case deserve great credit for their roles in protecting Portland from the threat posed by this defendant and ensuring that he was brought to justice.”

“This trial provided a rare glimpse into the techniques Al Qaeda employs to radicalize home-grown extremists,” said Amanda Marshall, U.S. Attorney for the District of Oregon.  “With the sentencing today, the court has held this defendant accountable.   I thank the dedicated professionals in the law enforcement and intelligence communities who were responsible for this successful outcome.  I look forward to our continued work with Muslim communities in Oregon who are committed to ensuring that all young people are safe from extremists who seek to radicalize others to engage in violence.” 

According to the trial evidence, in February 2009, Mohamud began communicating via e-mail with Samir Khan, a now-deceased al Qaeda terrorist who published Jihad Recollections, an online magazine that advocated violent jihad, and who also published Inspire, the official magazine of al-Qaeda in the Arabian Peninsula.  Between February and August 2009, Mohamed exchanged approximately 150 emails with Khan.  Mohamud wrote several articles for Jihad Recollections that were published under assumed names.

In August 2009, Mohamud was in email contact with Amro Al-Ali, a Saudi national who was in Yemen at the time and is today in custody in Saudi Arabia for terrorism offenses.  Al-Ali sent Mohamud detailed e-mails designed to facilitate Mohamud’s travel to Yemen to train for violent jihad.  In December 2009, while Al-Ali was in the northwest frontier province of Pakistan, Mohamud and Al-Ali discussed the possibility of Mohamud traveling to Pakistan to join Al-Ali in terrorist activities. Mohamud responded to Al-Ali in an e-mail: “yes, that would be wonderful, just tell me what I need to do.”  Al-Ali referred Mohamud to a second associate overseas and provided Mohamud with a name and email address to facilitate the process.

In the following months, Mohamud made several unsuccessful attempts to contact Al-Ali’s associate.  Ultimately, an FBI undercover operative contacted Mohamud via email under the guise of being an associate of Al-Ali’s.  Mohamud and the FBI undercover operative agreed to meet in Portland in July 2010.  At the meeting, Mohamud told the FBI undercover operative he had written articles that were published in Jihad Recollections.  Mohamud also said that he wanted to become “operational.”  Asked what he meant by “operational,” Mohamud said he wanted to put an explosion together, but needed help.

According to evidence presented at trial, at a meeting in August 2010, Mohamud told undercover FBI operatives he had been thinking of committing violent jihad since the age of 15.  Mohamud then told the undercover FBI operatives that he had identified a potential target for a bomb: the annual Christmas tree lighting ceremony in Portland’s Pioneer Courthouse Square on Nov. 26, 2010.  The undercover FBI operatives cautioned Mohamud several times about the seriousness of this plan, noting there would be many people at the event, including children, and emphasized that Mohamud could abandon his attack plans at any time with no shame.  Mohamud indicated the deaths would be justified and that he would not mind carrying out a suicide attack on the crowd.

According to evidence presented at trial, in the ensuing months Mohamud continued to express his interest in carrying out the attack and worked on logistics.  On Nov. 4, 2010, Mohamud and the undercover FBI operatives traveled to a remote location in Lincoln County, Oregon, where they detonated a bomb concealed in a backpack as a trial run for the upcoming attack.  During the drive back to Corvallis, Mohamud was asked if was capable looking at all the bodies of those who would be killed during the explosion.  In response, Mohamud noted, “I want whoever is attending that event to be, to leave either dead or injured.”  Mohamud later recorded a video of himself, with the assistance of the undercover FBI operatives, in which he read a statement that offered his rationale for his bomb attack. 

On Nov. 18, 2010, undercover FBI operatives picked up Mohamud to travel to Portland to finalize the details of the attack.  On Nov. 26, 2010, just hours before the planned attack, Mohamud examined the 1,800 pound bomb in the van and remarked that it was “beautiful.”  Later that day, Mohamud was arrested after he attempted to remotely detonate the inert vehicle bomb rked near the Christmas tree lighting ceremony

This case was investigated by the FBI, with assistance from the Oregon State Police, the Corvallis Police Department, the Lincoln County Sheriff’s Office and the Portland Police Bureau.  The prosecution was handled by Assistant U.S. Attorneys Ethan D. Knight and Pamala Holsinger from the U.S. Attorney’s Office for the District of Oregon.  Trial Attorney Jolie F. Zimmerman, from the Counterterrorism Section of the Justice Department’s National Security Division, assisted.

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14-1077

Today, United States Attorney General Eric Holder and European Union (EU) Commissioner for Home Affairs Cecilia Malmström welcomed high-level government officials representing over 30 members of the Global Alliance Against Child Sexual Abuse Online to a ministerial conference in Washington.  The Global Alliance was launched by Attorney General Holder and Commissioner Malmström in December 2012 with the aim of uniting decision-makers all around the world to commit to more effectively identify and rescue child sexual abuse victims, investigate and prosecute online exploitation offenses, increase public awareness of the risks posed by children’s online activities, and reduce the amount of child sexual abuse images available online. 

“Together, thanks to the hard work of the Global Alliance countries, this important, life-changing work has enabled us to intervene to rescue numerous child victims suffering at the hands of abusers; to arrest and prosecute those who did them harm; and to begin the long process of healing for each one of these survivors,” said Attorney General Holder.  “I have no doubt that this work will continue – and be amplified – by the work we’re discussing today.”

The conference was divided into two sessions.  The morning session featured global leaders and experts from the investigative, public policy, victim advocacy and legal arenas, who shared insight and experience from the cutting edge of combating online child exploitation.  They addressed a variety of topics related to the shared policy targets of the Global Alliance, including: investigative tactics that enabled the takedown of a hidden, highly sophisticated global enterprise of distributors of child sexual abuse images; the latest technological and tactical breakthroughs in identifying previously unknown victims of child sexual abuse online; and novel approaches to partnering with the private sector to combat the online proliferation of child sexual abuse images.  The afternoon ministerial session featured keynote speakers from law enforcement and from the private sector with deep experience in combating the online exploitation of children.  In addition, ministerial or other high-level government officials from each nation in attendance highlighted notable accomplishments over the past two years related to the Alliance’s policy targets, as well as offering their vision for the Alliance’s future.  

“The threat to young people posed by online sex predators is on the rise,” said Commissioner Malmström.  “Challenges are constantly evolving.  Every time a picture of an abused child is shown that child is being abused, over and over again.  The global alliance shows our collective willingness to fight this hideous crime, something we can only do by working together.  Our collective promises must become a reality.”

The states participating in the Alliance include Albania, Armenia, Australia, Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Cambodia, Canada, Costa Rica, Croatia, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Georgia, Germany, Ghana, Greece, Hungary, Ireland, Israel, Italy, Japan, Kosovo, Latvia, Lithuania, Luxembourg, Malta, Mexico, Montenegro, the Netherlands, New Zealand, Nigeria, Norway, the Philippines, Poland, Portugal, the Republic of Korea, the Republic of Moldova, Romania, Serbia, the Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Thailand, Turkey, Ukraine, the United Kingdom and the United States.

Global Alliance: Greater Commitments for Better Results

At the conclusion of the conference, the 54 Alliance members endorsed a Ministerial Declaration that commits to addressing the transborder obstacles to identifying and rescuing victims of exploitation and to identifying and prosecuting offenders, by agreeing to pursue the following potential actions where and when possible, in full respect of due process and fundamental rights requirements:

• Enabling law enforcement among Global Alliance countries to gain timely access to electronic information and evidence held by Internet service providers and other repositories of electronic information that is material to the investigation and prosecution of child sexual abuse offenses through central authorities and other legally authorized channels, so that no nation becomes a safe haven for such information;

• Facilitating prompt and comprehensive exchange among law enforcement of information and evidence pertinent to child sexual abuse offenses featuring transborder offense conduct, victims, co-conspirators or evidence repositories;

• Enabling Internet service providers and other repositories of electronic information to provide information pertinent to the identification, apprehension, and ultimate prosecution of online child sexual abuse offenders to law enforcement pursuant to legal process in a manner and time frame consistent with reasonable investigative and prosecutorial demands; and

• Augmenting existing, collaborative and transborder efforts to identify and rescue victims of online child sexual abuse.

Background

The United States, through the Department of Justice, the Department of Homeland Security, the Postal Inspection Service and other government agencies, in collaboration with non-governmental organizations (NGOs), industry and international partners, has made progress in combating all forms of child sexual exploitation.

For example, this past March, the Department of Justice obtained a 30-year sentence against a United States citizen who served as an English teacher in China, using that position of authority to molest children under the age of 12 and to produce child pornography.  In July, the department obtained a sentence of 120 years against a noncommissioned officer in the U.S. military who had drugged and sexually abused children, producing images and videos of that horrific abuse. 

A recent U.S. operation targeting offenders exploiting children on a global scale secured convictions of 30 and 40 years, respectively, for Peter Truong and Mark Newton.  Truong and Newton were residents of Queensland, Australia who brought their five-year-old son to the United States and France to meet with other men from various countries, so that these persons could record the sexual abuse of the minor victim.  Over the course of this scheme to sexually exploit their son, Newton and Truong were also found to have engaged in a conspiracy to transport the child pornography produced during these encounters to individuals around the world, including individuals living in Florida, Virginia, and Indiana.  It was this trafficking of materials that alerted United States Postal Inspectors and Indiana investigators to the case, launching the two year investigation of Newton, Truong, and the other men who conspired to abuse their son.  Prosecutions of these other men are ongoing.

In addition, the U.S. Congress has funded the creation of state-level task forces, known as the Internet Crimes Against Children (ICAC) Task Forces, which help state and local agencies to develop successful, long-term responses to online child exploitation.  These task forces are supported by the Department of Justice, not just with funding, but with training. 

As threats to our children continue to evolve in every corner of the globe, the Department of Justice is committed to drawing upon the collective experience of every country, and the cooperation of every community, to protect our young citizens and to hold abusers accountable to the fullest extent of the law.  For more information regarding the Justice Department’s efforts to combat child exploitation, please visit: http://www.justice.gov/criminal/ceos.  

Two Detroit-area residents were arrested today on charges related to a Medicare fraud scheme in which they are alleged to have referred Medicare beneficiaries to home health care agencies in exchange for kickbacks.

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 U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, and Acting Special Agent in Charge Jarod Koopman, of the Internal Revenue Service - Criminal Investigation (IRS-CI) Detroit Field Office, made the announcement.

Sophia Eggleston, 52, of Farmington Hills, Michigan, and Sekne Ali, 48, of Dearborn, Michigan, were charged in a four-count indictment, unsealed today, with conspiracy to violate the Anti-Kickback Statute and substantive violations of the Anti-Kickback Statute.   The indictment alleges that both defendants recruited Medicare beneficiaries to two home health agencies in Oakland County, Michigan – Prestige Home Health Services Inc. and Royal Home Health Care Inc. – and were paid kickbacks for the patient referrals.  Both agencies purported to provide in-home health care services to Medicare beneficiaries. 

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

This case was investigated by the FBI, HHS-OIG and IRS-CI 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 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 & 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.

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Six South Florida residents have been indicted for their alleged participation in a $6.2 million Medicare fraud scheme involving defunct home health care company Professional Medical Home Health LLC (Professional Home Health).  

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and 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 made the announcement.

On Sept. 25, 2014, a federal grand jury in Miami returned a 14-count indictment charging Ernesto Fernandez, 48, Dennis Hernandez, 32, Jose Alvarez, 47, and Joel San Pedro, 44, all of Miami; Alina Hernandez, 38, of West Palm Beach; and Juan Valdes, 37, of Palm Springs, for their roles in defrauding Medicare and soliciting and receiving health care kickbacks. 

According to allegations in the indictment, the defendants recruited patients for Professional Home Health, a Miami home health care agency.  As part of the scheme, the defendants solicited and received kickbacks from the owners and operators of Professional Home Health in exchange for providing beneficiaries for home health services that were not medically necessary or not provided.  The defendants and their co-conspirators also allegedly falsified patient documentation to support the fraudulent billing.  From December 2008 through February 2014, Medicare paid Professional Home Health more than $6.2 million for these fraudulent home health care claims.

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

Two other individuals have already pleaded guilty for their roles in the scheme.  Annarella Garcia, an owner of Professional Home Health, pleaded guilty to one count of conspiracy to commit health care fraud, and on Aug. 26, 2014, she was sentenced to serve 70 months in prison and ordered to pay $6,257,142 in restitution.  Annilet Dominguez, an administrator of Professional Home Health, pleaded guilty to one count of conspiracy to commit health care fraud and three counts of false statements related to health care matters.  On Sept. 29, 2014, she was sentenced to serve 68 months in prison and ordered to pay $6,257,149 in restitution. 

This case was 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 Southern District of Florida.  This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart 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. 

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The Justice Department today announced that a North Ridgeville, Ohio, landlord, Emil Bagi, and his management company, Ridgeway Management Ltd., have entered into a consent decree and have agreed pay $30,000 to resolve claims that they discriminated on the basis of race at the Ridge Plaza Apartments, a 36 unit apartment complex they own and operate in North Ridgeville, Ohio.  The settlement must still be approved by the federal district court in the Northern District of Ohio.

According to documents filed along with the settlement agreement the department alleges that the defendants discriminated against African Americans by quoting higher rental and application fee rates to them than to white apartment seekers, and by refusing to show African Americans vacant units when they visited while showing such units to white apartment seekers who visited the complex.  The complaint is based on evidence obtained by the department’s fair housing testing program.  The department sent African-American and white testers posing as prospective renters to the complex and the African-American testers were quoted higher rents and application fees than the white testers.  African-American testers were also told that they could not view a unit at that time, while similarly situated white testers were shown units.  The department also alleges that since acquiring ownership of the property in 1995, the defendants have never leased a unit to an African-American tenant. 

Under the terms of the settlement, the defendant wills establish a settlement fund of $20,000 to compensate persons harmed by the alleged discrimination and a $10,000 civil penalty to the United States.  In addition, the defendants will establish non-discriminatory rental policies, obtain fair housing training, and submit to reporting and monitoring requirements for the three year term of the settlement.  

“It is simply unacceptable for a landlord to make renting an apartment more difficult and more expensive because of a person’s race,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.

“The Department of Justice is committed to enforcing the Fair Housing Act using every tool at our disposal,” said U.S. Attorney Steven M. Dettelbach for the Northern District of Ohio.  “This landlord got caught by fair housing testers trying to charge higher rent to minority applicants.  He failed the test miserably – and now he has to pay the price.  Other landlords should keep that in mind when they are showing properties.”

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

An owner of a Detroit-area home health agency has been charged for her alleged role in a $2.6 million home health care scheme involving the payment of kickbacks to patient recruiters and physicians for the referral of Medicare beneficiaries.

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 U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office, and Special Agent in Charge Jarod Koopman of the Internal Revenue Service – Criminal Investigation (IRS-CI) Detroit Field Office made the announcement.

Rahmat Begum, 48, of Farmington Hills, Michigan, was charged in a six-count indictment, unsealed today, with conspiracy to commit wire fraud, false statements relating to health care matters, conspiracy to violate the Anti-Kickback Statute and money laundering. 

According to allegations in the indictment, Begum co-owned and operated Empirical Home Health Care Inc., an Oakland County, Michigan, home health agency that purported to provide in-home health care services to Medicare beneficiaries.  Begum allegedly paid kickbacks to patient recruiters and physicians for their referral of Medicare beneficiaries to Empirical Home Health Care.  The indictment also alleges that Begum laundered the proceeds of the scheme through a company known as Focal Project Management Consulting. 

According to the indictment, Medicare paid Empirical approximately $2,661,331 for false and fraudulent home health care claims where the referrals were obtained through the payment of kickbacks. 

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

This case was investigated by the FBI, HHS-OIG and IRS-CI and was brought as part of the Medicare Fraud Strike Force, under the supervision 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 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 & 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.

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The owner of a Miami home health care agency has been arrested in connection with an $8 million health care fraud scheme involving Acclaim Home Healthcare Inc. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and 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 made the announcement.

In an indictment returned on Sept. 25, 2014, and unsealed today, Orelvis Olivera, 45, of Miami, was charged with conspiracy to commit health care and wire fraud, conspiracy to pay and receive kickbacks and paying and receiving kickbacks in connection with a federal health care benefit program. 

According to the indictment, Acclaim Home Health was a Miami-based home health care agency that purported to provide home health care and physical therapy services to Medicare beneficiaries.  Olivera allegedly paid kickbacks to patient recruiters in return for the recruiters’ referral of Medicare beneficiaries to Acclaim Home Health.  In addition, Olivera allegedly solicited and received kickbacks in return for referring Medicare beneficiaries to other Miami-based home health care agencies. 

As alleged in the indictment, from May 2008 to June 2014, Acclaim Home Health billed Medicare approximately $8 million for fraudulent claims, and was paid approximately $7.3 million by Medicare for those claims. 

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

The case was 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 Southern District of Florida.  This case is being prosecuted by Trial Attorney Kelly Graves 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.

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The Justice Department announced today that developer Douglas Pauley and entities affiliated with him have agreed to pay $110,000 and make approximately $1.7 million in retrofits required to remove accessibility barriers at 30 apartment complexes, involving more than 750 units in West Virginia.  The parties’ agreement will settle the United States’ claims that defendants had violated the Fair Housing Act and the Americans with Disabilities Act by building the complexes with a variety of features that made them inaccessible to persons with disabilities.  The United States District Court for the Southern District of West Virginia approved the settlement yesterday.

Under the terms of the agreement, Pauley, as General Partner of 30 limited liability partnerships, must take extensive actions to make the complexes accessible to persons with disabilities, including wheelchair users.  These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb ramps to allow persons with disabilities to access the sidewalks from the parking areas, replacing cabinets in bathrooms and kitchens to provide sufficient room for wheelchair users, and reducing door threshold heights.  In addition, defendants will pay $100,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $10,000 as a civil penalty.

“The Fair Housing Act protects the rights of persons with disabilities to have equal opportunities to enjoy the housing of their choice,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “And this comprehensive resolution will ensure equal access to persons with disabilities at 30 apartment complexes and will compensate those injured by the failure to provide accessible housing.” 

“Housing is a fundamental human need, and it’s deeply unfair to deny persons with disabilities equal access to it,” said Booth Goodwin, United States Attorney for the Southern District of West Virginia.  “Thanks to this case, the developer will be required to devote nearly $2 million to correcting and compensating for the harm that he and his companies have caused.  That’s an important victory for West Virginians with disabilities.”

Individuals who are entitled to share in the settlement fund will be identified through a process established in the settlement.  Notices of the settlement and a list of subject properties will be published in the Charleston Gazette.  Persons who believe they were subjected to unlawful discrimination at one of those properties either when they lived there or considered living there should contact the Justice Department toll-free at 1-800-896-7743 mailbox # 9993 or e-mail the Justice Department at fairhousing@usdoj.gov. 

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

The Justice Department announced today it has published a new technical assistance publication about federal laws that protect the rights of voters with disabilities, including the Americans with Disabilities Act, the Voting Rights Act, the National Voter Registration Act and the Help America Vote Act.  The publication, “The Americans with Disabilities Act & Other Federal Laws Protecting the Rights of Voters with Disabilities,” is intended to help election officials, poll workers and voters understand how the ADA and other federal laws ensure equality in the voting process for people with disabilities. 

“The right to vote is the foundation upon which our country is built,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “For too long in our history, many people with disabilities have been excluded from exercising this fundamental right and have been prevented from being a full participant in our democracy.  A number of federal civil rights laws, including the Americans with Disabilities Act and the Voting Rights Act, have been put in place to address fairness in the voting process for people with disabilities.  The Justice Department is fully committed to enforcing these laws to ensure that voters with disabilities are no longer discriminated against in the election process.”

The publication provides guidance about how the federal disability rights laws apply to the election process, from registration to voting.  The publication discusses the need for policies, procedures, and programs to be in place to ensure that voters with disabilities are not discriminated against or illegally excluded from voting.  For example, the guidance discusses local governments’ obligations under the ADA to ensure polling places are physically accessible to voters with mobility disabilities, as well as their obligation to provide effective communication with voters who have vision and hearing disabilities.  Voters with disabilities must be able to access their polling place like everyone else, and vote alongside their neighbors and friends. 

The “The Americans with Disabilities Act & Other Federal Laws Protecting the Rights of Voters with Disabilities” publication may be found at http://www.ada.gov/ada_voting/ada_voting_ta.pdf or http://www.ada.gov/ada_voting/ada_voting_ta.htm.  Those interested in finding out more about the ADA may call the Justice Department’s toll-free ADA information line at 1-800-514-0301 (V) or 1-800-514-0383 (TTY), or visit its ADA website at www.ada.gov.  ADA complaints may be filed by email to ada.complaint@usdoj.gov.

The Justice Department filed a lawsuit yesterday against West Virginia-based developer Biafora’s Incorporated (Biafora) and several affiliated companies, for violating the Fair Housing Act and the Americans with Disabilities Act (ADA).  The lawsuit alleges that the defendants violated these laws when they designed and constructed twenty-three residential properties with barriers that make them inaccessible to persons with disabilities.

“For over two decades, the Fair Housing Act and ADA have required those who design and build multifamily housing complexes to make them accessible to persons with disabilities,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “Residential complexes built with steps but without ramps or other means of access deny Americans with disabilities the basic right to equal housing opportunities.”

“The United States Attorney’s Office is committed to working together with the Civil Rights Division to ensure that the rights of citizens with disabilities in the Northern District of West Virginia are fully protected,” said U.S. Attorney William J. Ihlenfeld for the Northern District of West Virginia.  “It’s important that building developers in our district design and construct housing units which comply with the Fair Housing Act and the Americans with Disabilities Act.”

The suit, filed in U.S. District Court in Clarksburg, West Virginia, alleges that twenty-three properties located in Monongalia County, Harrison County, and Marion County, West Virginia, as well as in Greene County, Pennsylvania, have significant barriers, including steps leading to building entrances, non-existent or excessively sloped pedestrian routes from apartment units to site amenities (e.g., picnic areas, dumpsters, clubhouse/leasing offices), insufficient maneuvering space in bathrooms and kitchens, excessively high light switches and temperature controls and inaccessible parking. 

The suit seeks a court order requiring the defendants to bring properties they have designed and constructed since 1991 into compliance with the Fair Housing Act and the ADA, as well as monetary damages for persons harmed by the lack of accessibility and civil penalties to the United States.  The suit also names Biafora’s affiliates Falconcrest LLC, Five Star Holdings LLC, Metro Rentals LLC, Metro Rentals II LLC, RDR Properties LLC, RDR Properties II LLC, The Gables LLC, The Woodlands LLC, 3BT LLC and CMC Company LLC.  Anyone with information about the inaccessible conditions at these properties should call the Justice Department at 1-800-896-7743, and follow the prompts to enter mailbox 998.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, and disability.  Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities.  More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.

The complaint is an allegation of unlawful conduct.  The allegations in the complaint must still be proven in federal court.

ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that the United States of America, on behalf of the United States Environmental Protection Agency (“U.S. EPA”), secured $285,000 in settlement of a civil lawsuit against GRH Technologies Construction Co., Ltd. (“GRH”), and GRH’s Treasurer, Chen Pei SU (“SU”). The lawsuit alleged that GRH and SU committed a violation of the False Claims Act, 31 U.S.C. § 3729 et seq., when they submitted a fraudulent claim for reimbursement under a contract funded by the American Recovery and Reinvestment Act (“ARRA”) between Guam Waterworks Authority and GRH for services including leak detection, pipeline, location, mapping, leak control, and related training.  GRH and SU submitted a claim for reimbursement of $117,912, which GRH and SU purport was used to purchase equipment from a Taiwan-based company.  However, the check used to pay the Taiwan-based company was never negotiated and GRH and SU could not produce evidence that such payment was made. The lawsuit sought triple damages and civil penalties from GRH and SU.

The United States settled the False Claims Act lawsuit with GRH and SU for $285,000.  Upon collecting the $285,000 in settlement funds, the United States dismissed its claims on August 8, 2014.

U.S. Attorney Alicia A.G. Limtiaco stated, “False claims to the United States government have an effect on all its citizens and on the agencies that serve those citizens. They affect not only the particular agency to whom the specific act was committed, but in the aggregate they affect the overall vitality of government programs and contracts and detract from the millions of Americans who could benefit from those programs. The U.S. Attorney’s Office for the Districts of Guam and the Northern Mariana Islands and federal agencies in this region, most specifically in this case the U.S. Environmental Protection Agency, continue to aggressively enforce the False Claims Act against those that violate the public trust and misuse public funds.”

This case was investigated by the U.S. EPA and prosecuted by Assistant U.S. Attorneys Mikel W. Schwab and Jessica F. Cruz.

Four members of an international computer hacking ring have been charged with breaking into computer networks of prominent technology companies and the U.S. Army and stealing more than $100 million in intellectual property and other proprietary data.  Two of the charged members have already pleaded guilty.  The alleged cyber theft included software and data related to the Xbox One gaming console and Xbox Live online gaming system; popular games such as “Call of Duty: Modern Warfare 3” and “Gears of War 3”;  and proprietary software used to train military helicopter pilots.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Charles M. Oberly III of the District of Delaware and Special Agent in Charge Stephen E. Vogt of the FBI’s Baltimore Field Office made the announcement.

“As the indictment charges, the members of this international hacking ring stole trade secret data used in high-tech American products, ranging from software that trains U.S. soldiers to fly Apache helicopters to Xbox games that entertain millions around the world,” said Assistant Attorney General Caldwell.  “The American economy is driven by innovation.  But American innovation is only valuable when it can be protected.  Today’s guilty pleas show that we will protect America’s intellectual property from hackers, whether they hack from here or from abroad.”

“Electronic breaking and entering of computer networks and the digital looting of identities and intellectual property have become much too common,” said U.S. Attorney Oberly.  “These are not harmless crimes, and those who commit them should not believe they are safely beyond our reach.”

Nathan Leroux, 20, of Bowie, Maryland; Sanadodeh Nesheiwat, 28, of Washington, New Jersey; David Pokora, 22, of Mississauga, Ontario, Canada; and Austin Alcala, 18, of McCordsville, Indiana, were charged in an 18-count superseding indictment returned by a federal grand jury in the District of Delaware on April 23, 2014, and unsealed earlier today.  The charges in the indictment include conspiracies to commit computer fraud, copyright infringement, wire fraud, mail fraud, identity theft and theft of trade secrets.  The defendants are also charged with individual counts of aggravated identity theft, unauthorized computer access, copyright infringement and wire fraud.

Today, Pokora and Nesheiwat pleaded guilty to conspiracy to commit computer fraud and copyright infringement and are scheduled for sentencing on Jan. 13, 2015.  Pokora was arrested on March 28, 2014, while attempting to enter the United States at the Lewiston, New York, Port of Entry.  Pokora’s plea is believed to be the first conviction of a foreign-based individual for hacking into U.S. businesses to steal trade secret information. 

According to the superseding indictment and other court records, from January 2011 to March 2014, the four men and others located in the United States and abroad allegedly hacked into the computer networks of Microsoft Corporation, Epic Games Inc., Valve Corporation, Zombie Studios and the U.S. Army.  The defendants and others allegedly obtained access to the victims’ computer networks through methods including SQL injection and the use of stolen usernames and passwords of company employees and their software development partners.  Once inside the victims’ computer networks, the conspirators accessed and stole unreleased software, software source code, trade secrets, copyrighted and pre-release works and other confidential and proprietary information.  Members of the conspiracy also allegedly stole financial and other sensitive information relating to the companies – but not their customers – and certain employees of such companies. 

Specifically, the data cyber-theft allegedly included source code, technical specifications and related information for Microsoft’s then-unreleased Xbox One gaming console; intellectual property and proprietary data related to Xbox Live, Microsoft’s online multi-player gaming and media-delivery system; Apache helicopter simulator software developed by Zombie Studios for the U.S. Army; a pre-release version of Epic’s video game, “Gears of War 3;” and a pre-release version of Activision’s video game, “Call of Duty: Modern Warfare 3.”  The defendants also allegedly conspired to use, share and sell the stolen information. 

The value of the intellectual property and other data that the defendants stole, as well as the costs associated with the victims’ responses to the conduct, is estimated to range between $100 million and $200 million.  To date, the United States has seized over $620,000 in cash and other proceeds related to the charged conduct.

In addition to those charged in the United States, an Australian citizen has been charged under Australian law for his alleged role in the conspiracy. 

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

This case is being investigated by the FBI, with assistance from the Criminal Division’s Office of International Affairs, the U.S. Department of Homeland Security’s Homeland Security Investigations and Customs and Border Patrol, and the U.S. Postal Inspection Service.  The investigation also has been coordinated with the Western Australia Police and the Peel Regional Police of Ontario, Canada. 

The case is being prosecuted by Trial Attorney James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Edward J. McAndrew of the District of Delaware.     

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Timothy Flanagan, 33, pleaded guilty today in federal court in Nashville, Tennessee, for his role in the April 30, 2012, cross burning in front of an interracial family’s home in Minor Hill, Tennessee, the Department of Justice announced.  Flanagan pleaded guilty to one count of conspiring with others to threaten, intimidate and interfere with an African-American man’s enjoyment of his housing rights, and one count of interfering with those housing rights. 

Flanagan—a former member of the Church of the National Knights, a Ku Klux Klan affiliate—admitted during the plea hearing that on the night of April 30,2012, he and two other individuals devised a plan to burn a cross in the yard of an African American man in Minor Hill, Tennessee. Flanagan’s co-conspirator, Timothy Stafford, constructed a wooden cross in a workshop behind his house.  Using Flanagan’s credit card, Stafford and co-conspirator Ivan “Rusty” London then purchased diesel-fuel with which to soak the cross.  Flanagan and the other co-conspirators then drove the cross to the victim’s residence and upon arriving at the residence, Flanagan and London exited the truck.  The cross was placed in the driveway leading up to the house and was ignited.  The co-conspirators burned the cross with the purpose of intimidating the African-American male who resided at that residence. 

Ivan “Rusty” London IV, 21, of Lexington, Kentucky, and Timothy Stafford, 41, of Minor Hill, Tennessee, previously pleaded guilty for their roles in the conspiracy, and are currently awaiting sentencing. 

“Hate-motivated crimes will not be tolerated in our country,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division. “The Justice Department will vigorously prosecute individuals who violate the rights of others because of race.”

“There can be no tolerance for such acts of intimidation when innocent persons are targeted simply because of their race,” said U.S. Attorney David Rivera for the Middle District of Tennessee.  “The U.S. Attorney’s Office and our law enforcement partners will work tirelessly to protect the civil rights of all persons and bring to justice, anyone who would attempt to impede the constitutionally protected right to liberty of any person.”

Timothy Flanagan faces up to 20 years in prison and fines up to $500,000.  Timothy Stafford faces up to 10 years in prison and fines of up to $250,000.  Ivan London faces up to 5 years in prison and fines of up to $250,000. Sentencing for Flanagan is set for January 8, 2015.

This case was investigated by the Columbia, Tennessee, Division of the FBI and is being prosecuted by Trial Attorney Jared Fishman of the Civil Rights Division and by Assistant U.S. Attorney Hal McDonough of the Middle District of Tennessee.

The U.S. District Court for the Southern District of Florida permanently barred Marvel Angelita Ebanks, a tax preparer who prepared returns in Palm Beach County, Florida, and her company, Marvelous Enterprises Inc., from preparing federal tax returns for others, the Justice Department announced today.  A final judgment of permanent injunction was entered against Ebanks and her company by the court today.

The complaint alleged that Ebanks and her company prepared federal income tax returns for customers that claimed ficticious business expenses.  In addition, Ebanks and her company prepared returns that claimed false or inflated education credits and child care credits, and other deductions and/or credits in order to unlawfully understate tax liabilities and generate larger than warranted refunds.  Pursuant to the final judgment of permanent injunction, Ebanks and her company are permanently enjoined from preparing or assisting in the preparation or filing of federal tax returns and amended returns.

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 fraudulent 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.

Four defendants, including a Detroit-area physician, were charged in a superseding indictment with a $7 million health care fraud conspiracy.  Fifteen defendants have now been charged in this case, including seven who have pleaded guilty for their conduct. 

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 and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.

The eight-count superseding indictment, unsealed today, charges defendants Dr. Kutub Mesiwala, 63, of Bloomfield Hills, Michigan, Jaweed Mohammed, 34, of Orland Park, Illinois, Mohammad Zubair Khan, 27, of West Bloomfield, Michigan, and Tousif Khan, 42, of Ypsilanti, Michigan, in connection with Medicare fraud involving unnecessary home health care and therapy services. 

According to allegations in the indictment, Advance Home Health Care Services Inc. (Advance Home Health) and Perfect Home Health Care LLP (Perfect Home Health) purported to provide home health care and physical therapy services to eligible Medicare beneficiaries in the Detroit metropolitan area.   

Dr. Mesiwala allegedly received kickbacks to refer Medicare beneficiaries to Advance Home Health and to falsely certify that the beneficiaries required home health care.  Patient recruiters and office staff, including Tousif Khan, allegedly paid cash kickbacks to Medicare beneficiaries in exchange for their signing blank physical therapy records.  Jaweed Mohammed, Mohammed Zubair Khan, and other co-conspirators then allegedly used those pre-signed blank physical therapy records to fabricate patient records for Advance Home Health and Perfect Home Health.  Those records were used to support claims to Medicare when, in fact, no services were rendered.  

The superseding indictment charges all four defendants with conspiracy to commit health care fraud, and charges Dr. Mesiwala and Tousif Khan with conspiracy to pay or receive health care kickbacks.  It also charges Mohammad Zubair Khan, Jaweed Mohammed, and Tousif Khan with destruction of documents with the intent to obstruct the investigation.  Additionally, Dr. Mesiwala was charged with two counts of health care fraud in relation to claims for reimbursement submitted to Medicare for visiting physician services that he purportedly rendered to patients in their Michigan homes while he was allegedly out of the country. 

Between February 2009 and November 2013, Medicare paid Advance Home Health and Perfect Home Health more than $7 million as a result of these allegedly false and fraudulent claims.  Fifteen defendants have been charged with participating in the health care fraud and kickback conspiracies, and seven of those defendants have entered guilty pleas.  One of those defendants, Dr. Adelina Herrero, was sentenced by U.S. District Judge Paul D. Borman of the Eastern District of Michigan on Aug. 18, 2014, to three years in prison and ordered to pay $1,321,372 in restitution. 

An indictment is merely an allegation, 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 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 Eastern District of Michigan.  This case is being prosecuted by Trial Attorneys Patrick J. Hurford and Katharine A. Wagner and Special Trial Attorney Katie R. Fink 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.

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The Justice Department today announced five settlement agreements under the Americans with Disabilities Act (ADA) to make businesses in upstate New York and Corpus Christi, Texas, accessible to people with disabilities.

The settlements are with Hamilton Initiative in Hamilton, New York; Glenwood Plaza in Oneida, New York; Alliance NY in Cazenovia, New York, Subway of Cazenovia in Cazenovia, New York, and Water Street Seafood Company in Corpus Christi, Texas.  These businesses, including a strip mall and several restaurants, were investigated in conjunction with the department’s Project Civic Access, a Civil Rights Division initiative to ensure that cities, towns and counties throughout the country comply with the ADA.  The investigation revealed that each business had made alterations after the effective date of the ADA, but had failed to make the altered areas accessible.

At each business, certain architectural elements were inaccessible to people with disabilities.  All five businesses worked cooperatively with the department after architectural barriers to access were identified.  The department and each business agreed to remedy the barriers in compliance with the 2010 ADA Standards for Accessible Design (2010 Standards) within certain timelines.  Details on each settlement follow: 

• Hamilton Initiative owns and leases property to an eatery called the No. 10 Tavern.Under the agreement, the exterior entrance and restrooms will be modified to comply with the 2010 standards.

• Glenwood Plaza is a strip mall in Oneida, New York.Under the agreement, the parking lot at the strip mall will be modified to include the required accessible parking spaces, compliant signage and access aisles.

• Two settlement agreements were entered regarding Subway of Cazenovia sandwich shop. Alliance NY owns and leases property to Subway of Cazenovia and has agreed to renovate the exterior entrance to the restaurant to make it accessible to persons with mobility impairments.Subway of Cazenovia is the operator of the sandwich shop and has agreed to make modifications to the restroom in compliance with the 2010 Standards.

• Water Street Seafood Company is a restaurant that has already started correcting accessibility barriers at its exterior entrance and restrooms.Under the agreement, the restaurant will continue its modifications to make the restaurant compliant with the 2010 standards.

“The Civil Rights Division of the Justice Department is committed to the full and fair enforcement of the Americans with Disabilities Act,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “While it is important to have equal access to larger venues such as hospitals and stadiums, it is equally important that people with disabilities be able to enjoy all types of goods and services in their own neighborhood.  When a business alters its space, it is critical that those alterations be made accessible so that people with disabilities can enjoy access to restaurants and businesses and be fully integrated in their communities.”

The ADA protects individuals with disabilities from discrimination by public accommodations, such as restaurants and shopping malls, and requires that when such entities make alterations, they must do so accessibly to the maximum extent feasible.  In addition, businesses have an ongoing obligation to remove architectural barriers to make their businesses accessible to persons with disabilities to the extent it is readily achievable to do so.  It is “readily achievable” to remove an accessibility barrier if it is easily accomplishable without much difficulty or expense.  The Department of Justice and Small Business Administration have provided an ADA Guide for Small Businesses describing these obligations, as well as tax credits and deductions available, at http://www.ada.gov//smbustxt.htm.  People interested in finding out more about the ADA or this agreement can call the Justice Department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or access its ADA Web site at www.ada.gov.

Toyoda Gosei Co. Ltd., an automotive parts manufacturer based in Aichi, Japan, has agreed to plead guilty and to pay a $26 million criminal fine for its role in conspiracies to fix prices and rig bids for automotive hoses, airbags and steering wheels sold to automobile manufacturers, the Department of Justice announced today. 

According to a two-count felony charge filed today in the U.S. District Court for the Northern District of Ohio in Toledo, Toyoda Gosei conspired to fix the prices of certain automotive hoses sold to Toyota Motor Corp. and certain of its subsidiaries, affiliates and suppliers (collectively Toyota), in the United States; and conspired to fix the prices of automotive airbags and steering wheels sold to Toyota and Fuji Heavy Industries Ltd. and certain of its subsidiaries, affiliates and suppliers, and certain of their subsidiaries, affiliates and suppliers (collectively Subaru), in the United States and elsewhere.  In addition to the criminal fine, Toyoda Gosei has agreed to cooperate in the department’s ongoing investigation.  The plea agreement will be subject to court approval.

“When purchasing an automobile, American consumers should feel confident that the sticker price is based on fair market costs to manufacture the vehicle,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “The Antitrust Division will continue to prosecute cases in the auto parts industry to ensure fair and competitive prices are maintained.”

Toyoda Gosei and its co–conspirators, according to the charges, conspired through meetings and conversations in which they discussed and agreed upon bids and price quotations to be submitted to certain automakers and to allocate the supply of the products to those automakers.  In furtherance of the agreements, Toyoda Gosei sold certain automotive hoses at noncompetitive prices to Toyota in the United States, and sold airbags and steering wheels at noncompetitive prices to Toyota and Subaru in the United States and elsewhere.  Toyoda Gosei’s involvement in the automotive hoses conspiracy lasted from at least as early as February 2004 until at least September 2010 and its involvement in the automotive airbags and steering wheels conspiracy lasted from at least as early as September 2003 until at least September 2010.

Toyoda Gosei manufactures and sells a variety of automotive parts, including certain automotive hoses, airbags and steering wheels.  The charges against Toyoda Gosei are the latest in the department’s ongoing investigation into anticompetitive conduct in the automotive parts industry.  These are the first charges filed relating to automotive hoses sold to automobile manufacturers.

To date, 43 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry.  Twenty-nine companies, including Toyoda Gosei, have pleaded guilty or agreed to plead guilty and have agreed to pay a total of nearly $2.4 billion in fines.

Toyoda Gosei is charged with price fixing and bid rigging in violation of the Sherman Act, which carries a maximum penalty for corporations of $100 million for each violation.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charge was brought by the Antitrust Division’s Chicago Office and the FBI’s Cleveland Field Office, Lima Resident Agency, with the assistance of the FBI headquarters’ International Corruption Unit and the U.S. Attorney’s Office for the Northern District of Ohio.  Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 1-888-647–3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Cleveland Field Office at 216-522-1400.

A Pakistani man has been indicted in the Eastern District of Virginia for allegedly conspiring to advertise and sell StealthGenie, a spyware application (app) that could monitor calls, texts, videos and other communications on mobile phones without detection.  This marks the first-ever criminal case concerning the advertisement and sale of a mobile device spyware app.   

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

“Selling spyware is not just reprehensible, it’s a crime,” said Assistant Attorney General Caldwell.  “Apps like StealthGenie are expressly designed for use by stalkers and domestic abusers who want to know every detail of a victim’s personal life – all without the victim’s knowledge.  The Criminal Division is committed to cracking down on those who seek to profit from technology designed and used to commit brazen invasions of individual privacy.”

“StealthGenie has little use beyond invading a victim’s privacy” said U.S. Attorney Boente.  “Advertising and selling spyware technology is a criminal offense, and such conduct will be aggressively pursued by this office and our law enforcement partners.”    

“This application allegedly equips potential stalkers and criminals with a means to invade an individual’s confidential communications,” said FBI Assistant Director in Charge McCabe.  “They do this not by breaking into their homes or offices, but by physically installing spyware on unwitting victim’s phones and illegally tracking an individual’s every move.  As technology continues to evolve, the FBI will investigate and bring to justice those who use illegal means to monitor and track individuals without their knowledge.”

According to allegations in the indictment, Hammad Akbar, 31, of Lahore, Pakistan, is the chief executive officer of InvoCode Pvt Ltd, the company that advertises and sells StealthGenie online.  Akbar and his co-conspirators allegedly created the spyware, which could intercept communications to and from mobile phones, including Apple’s iPhone, Google’s Android, and Blackberry Limited’s Blackberry.  StealthGenie was undetectable by most users and was advertised as being untraceable. 

Akbar was charged in the indictment with conspiracy, sale of a surreptitious interception device, advertisement of a known interception device and advertising a device as a surreptitious interception device.  He was arrested in Los Angeles on Sept. 27, 2014, and is expected to appear before a magistrate judge in the Central District of California later today. 

StealthGenie was hosted at a data center in Ashburn, Virginia.  On Sept. 26, 2014, a federal judge in the Eastern District of Virginia issued a temporary restraining order authorizing the FBI to temporarily disable the website hosting StealthGenie.

The indictment alleges that StealthGenie’s capabilities included the following: it recorded all incoming/outgoing voice calls; it intercepted calls on the phone to be monitored while they take place; it allowed the purchaser to call the phone and activate it at any time to monitor all surrounding conversations within a 15-foot radius; and it allowed the purchaser to monitor the user’s incoming and outgoing e-mail messages and SMS messages, incoming voicemail messages, address book, calendar, photographs, and videos.  All of these functions were enabled without the knowledge of the user of the phone.

Akbar and his co-conspirators allegedly programmed StealthGenie to synchronize communications intercepted by the app with the customer’s account so that the customer could review intercepted communications almost immediately from any computer with access to the Internet.  To install the app, a purchaser needed to obtain physical control over the phone to be monitored for only a few minutes.  The purchaser could then review communications intercepted from the monitored phone without ever again having physical control over the phone.  Akbar and others alleged designed SteathGenie to be undetectable to users of the phone. 

According to allegations in the indictment, the business plan for the development, sale and advertisement of StealthGenie stated that the target population for the marketing of the app was “[s]pousal cheat: Husband/Wife of (sic) boyfriend/girlfriend suspecting their other half of cheating or any other suspicious behaviour or if they just want to monitor them.”  Language and testimonials on the StealthGenie website focused significantly on potential purchasers who did not have any ownership interest in the mobile phone to be monitored, including those suspecting a spouse or romantic partner of infidelity.  The indictment alleges that Akbar and his co-conspirators fabricated the testimonials.    

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

This case is being investigated by the FBI’s Washington Field Office, and prosecuted by Trial Attorneys William A. Hall Jr. and Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Jay V. Prabhu of the Eastern District of Virginia.

The FBI has made available a document for individuals with questions concerning StealthGenie.  It may be found at http://www.ic3.gov/media/2014/140930.aspx.

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The Justice Department announced today that it has reached an agreement with Milwaukee Montessori School, a private day school serving over 400 children from 18 months old through eighth grade, to remedy alleged violations of the Americans with Disabilities Act (ADA).  The agreement resolves allegations by the department that the school failed to accommodate and then impermissibly disenrolled a young child whose disability caused him to stumble and fall more frequently than his peers.  The agreement is being filed as a consent decree along with a complaint in the U.S. District Court for the Eastern District of Wisconsin, and must be approved by the court.

Under the agreement, the school will adopt a disability nondiscrimination policy, including procedures for prompt handling of requests to reasonably modify school policies for children with disabilities.  The school will train teachers, administrators, and board members on ADA requirements and report to the department on its compliance with the agreement.  In addition, the school will pay $50,000 in compensatory damages to the child identified in the complaint and his parents, and will pay a civil penalty of $5,000 to the United States. 

“It is illegal under the ADA to discriminate against children with disabilities,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “Just like public schools, private schools must make reasonable modifications of policies to permit children with disabilities to participate fully in their programs.  This agreement ensures that children will not be denied quality educational opportunities based on their disabilities.”

“This is a most important, meaningful, and effective action by the leadership of the Milwaukee Montessori School to ensure compliance with the ADA,” said James L. Santelle, U.S. Attorney for the Eastern District of Wisconsin.  “The agreement that we are announcing today reflects the school’s commitment and that of the Justice Department to ensure the full accessibility and opportunity promises of the law in the private educational setting.”

Title III of the ADA requires public accommodations, including private schools such as Milwaukee Montessori School, to provide individuals with disabilities equal access to goods, services, privileges, accommodations, facilities, advantages and accommodations.  For more information about the ADA, call the Department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or access the ADA website at www.ada.gov.

Attorney General Eric Holder and Assistant Attorney General Karol V. Mason for the Office of Justice Programs today launched the Violence Reduction Network (VRN), a national comprehensive approach to reduce violent crime in communities around the country.  The Justice Department’s ability to provide intensive training and cutting-edge technical assistance will give local officials and law enforcement executives in each of the partner communities the support they need to advance anti-violence strategies. 

“This new ‘all-hands’ approach to curbing endemic violence is founded on the recognition that our efforts are most effective when all criminal justice leaders stand united,” said Attorney General Holder.  “It’s predicated on the notion that – although violent crime is in some ways a fundamentally local problem – it is not one that any community can meet in isolation.”

The Violence Reduction Network will help localities access a broad spectrum of Justice Department resources – empowering the federal government to strengthen partnerships and collaboratively tackle persistent challenges caused by violent crime.  The partnering cities announced today are Camden, New Jersey; Chicago, Illinois; Detroit, Michigan; Oakland/Richmond, California; and Wilmington, Delaware. 

The VRN summit’s agenda is dedicated to collaborative working sessions analyzing each city’s violence challenges and discussing the variety of department resources available to address the issues.  Following the summit, the department will work with police chiefs and city leaders, along with leading criminal justice researchers and practitioners, to develop effective approaches to accomplishing each city’s violence reduction strategies.

“Through our partnerships with local leaders and practitioners and the wide range of resources we have available to address America’s public safety challenges, the Department of Justice is putting its full support behind violence reduction efforts in these five cities,” said Assistant Attorney General Mason.  “I am eager to begin working with each of the sites and to help define a way forward to safer, healthier communities.”  

Even with reports of national violent crime decreasing, in too many communities, crime rates have remained unacceptably high, particularly in areas where social ills like poverty, unemployment, and a lack of opportunity lead to tragic circumstances in which systemic violence can easily take root.

The launch of VRN is a result of the Obama administration’s continuing efforts to address violence in communities across the country.  Nearly a year ago, President Obama convened a meeting at the White House with 18 mayors to discuss strategies for reducing youth violence.  Following that meeting, Attorney General Holder sat down with mayors and police chiefs to talk about how the federal government can better support local efforts. 

Representatives from VRN partner federal agencies include the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco and Firearms, the United States Marshals Service, the Drug Enforcement Administration, the Executive Office of the United States Attorneys, the Community Oriented Policing Services Office, the Office on Violence Against Women and the Office of Justice Programs. 

Attorney General Eric Holder and Director Ron Davis of the Office of Community Oriented Policing Services (COPS) today announced the department's latest effort to strengthen community policing through hiring grants that will fund nearly 950 officers at 215 law enforcement agencies in cities and communities across the country.  This year’s $124 million in awards place a special emphasis on increasing community policing, bolstering crime reduction, and making the streets of America safer.

“These targeted investments will help to address acute needs – such as high rates of violent crime – funding 75 percent of the salary and benefits of every newly-hired or re-hired officer for three full years,” said Attorney General Holder.  “The impact of this critical support will extend far beyond the creation and preservation of law enforcement jobs.  It will strengthen relationships between these officers and the communities they serve, improve public safety and keep law enforcement officers on the beat.”

“The COPS Office is pleased to assist local law enforcement agencies throughout the country in addressing their most critical public safety issues,” said Director Davis.  “Funding from this year’s program will allow many cities and counties to focus newly sworn personnel on issues related to violent crime, property crime and school safety.”

The COPS Hiring Program offers grants to state, local and tribal law enforcement agencies to hire or rehire community policing officers.  The program provides up to 75 percent of the approved entry-level salaries and fringe benefits of full-time officers for a 36-month grant period, with a minimum 25 percent local cash match requirement and a maximum federal share of $125,000 per officer position.

Grantees for the 2014 hiring program were selected based on their proposed community policing strategies, fiscal need and violent crime rates.

To date, the COPS Office has funded more than 125,000 officers serving over 13,000 state, local and tribal law enforcement agencies, in jurisdictions both large and small.  More than 700,000 people – including government leaders, community members and police officials – have received training through COPS-funded organizations.  Since its inception in 1994, the COPS Office has provided roughly $14 billion to put additional officers on the streets, to provide technical assistance and training, to enhance crime fighting technology and to support cutting-edge crime prevention initiatives.

For the entire list of grantees and additional information about the 2014 COPS Hiring Program, visit the COPS website at www.cops.usdoj.gov.  

An administrator of a Miami home health care company, Professional Medical Home Health LLC, was sentenced to serve 68 months in prison and ordered to pay $6,257,142 million in restitution today for her participation in a $6 million health care fraud scheme.    

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and 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 made the announcement.  U.S. District Judge Federico A. Moreno of the Southern District of Florida imposed the sentence.

According to court documents, Annilet Dominguez, 28, of Hialeah, Florida, was an administrator at Professional Home Health.  Dominguez and her co-conspirators paid kickbacks to patient recruiters in return for providing patients to Professional Home Health.  Dominguez and her co-conspirators falsified patient documentation to make it appear that beneficiaries qualified for and received home health care services, when, in fact, many of the beneficiaries did not actually qualify for or receive such services.  Dominguez and her co-conspirators then caused the submission of false claims to Medicare for services that were not medically necessary or not provided.    

From December 2008 through February 2014, Medicare paid Professional Home Health approximately $6.25 million for fraudulent claims for home health care services.

On June 25, 2014, Dominguez pleaded guilty to one count of conspiracy to commit health care fraud and three counts of making false statements related to health care matters.  On Aug. 26, 2014, co-defendant Annarella Garcia was sentenced to serve 70 months in prison and ordered to pay $6,257,142 million in restitution.

The case was 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 Southern District of Florida.  This case is being prosecuted by Trial Attorneys Anne P. McNamara and A. Brendan Stewart 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. 

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Two campaign workers pleaded guilty this week in the Southern District of Texas for paying voters to vote in two 2012 elections in Hidalgo County, Texas, 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.

Veronica Saldivar, 42, of Donna, Texas, pleaded guilty today to one count of vote-buying before U.S. District Judge Randy Crane of the Southern District of Texas and is scheduled for sentencing on Dec. 8, 2014.  Belinda Solis, 39, also of Donna, pleaded guilty on Sept. 25, 2014, to one count of vote-buying before U.S. District Judge Micaela Alvarez of the Southern District of Texas and is scheduled for sentencing on Dec. 11, 2014.

According to Saldivar’s plea agreement, a primary election was held on May 29, 2012, in Donna for the presidential election, and various state, county, and local offices, including the office of a county commissioner for Hidalgo County.  Saldivar assisted in the campaign to elect a candidate to the office of county commissioner.  In the course of that work, she paid voters with cash and cocaine for voting in this primary election and for voting for a specific candidate for a county commissioner position.

According to Solis’s plea agreement, a general election was held on Nov. 6, 2012, in Donna, for the presidential election and various state, county, and local offices, including the Donna School Board.  Solis assisted in the campaign to elect a slate of four candidates to the Donna School Board.  In the course of that work, she paid voters cash for voting in the election and for voting for specific Donna School Board candidates.

This case was investigated by the FBI and is being prosecuted by Trial Attorneys Monique Abrishami and Jennifer Blackwell of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Leo J. Leo of the Southern District of Texas.

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Nathan R. Garber, 45, of Kalispell, Montana, pleaded guilty in federal court in Bismarck to eleven felony charges stemming from the operation of a saltwater disposal well near Dickinson, in Stark County, North Dakota, the Justice Department announced. 

Garber pleaded guilty to one count of conspiracy to violate the Safe Drinking Water Act and defraud the United States.  He also pleaded guilty to five counts of violating the Safe Drinking Water Act, two counts of making false statements, two counts of falsification of records and one count of concealment or cover up of a tangible object.

The well, named the Halek 5-22, received “produced water” constituting “brine and other wastes” commonly and generically referred to as “saltwater.”  “Saltwater” in this context covers a wide array of drilling waste fluids, including hydraulic fracturing fluid, which is water combined with chemical additives such as biocides, polymers and “weak acids.”  The EPA has stressed that this water is often saltier than seawater and can “contain toxic metals and radioactive substances.”

“Every aspect of domestic energy extraction, including the disposal of wastewater, must accord with the nation’s environmental laws that protect air, water and soil from contamination,” said Sam Hirsch, the Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division.  “The American people expect nothing less than safe, responsible and legal behavior from those involved in oil and gas development in the Bakken and elsewhere.  The Justice Department will vigorously prosecute those who violate this trust and the law.”

“The convictions secured today on 11 felony counts underscores the seriousness of the conduct here,” said U.S. Attorney Timothy Purdon of the District of North Dakota.  “Any time anyone in the Bakken oil boom region puts our water supplies at risk for contamination by intentionally breaking the laws in place to protect that water, the North Dakota U.S. Attorney’s Office, the Department of Justice and our partners at Environmental Protection Criminal Investigation Division will use every tool at our disposal to ensure that these offenders are brought to justice.  I want to particularly commend the Environmental Protection Agents based in Helena, Montana who worked this case.  Their commitment to this investigation, despite the fact that it being an eight hour one-way drive from their office, never  wavered.  Their commitment to make sure that this complex investigation was handled with the professionalism and skill it needed deserves special recognition and underscores the importance of ensuring that the Bakken region has access to these skilled Agents on a permanent basis.”

“As oil and natural gas development continues, it must be done in a way that ensures drilling byproducts are disposed of safely and legally,” said Special Agent in Charge Jeffrey Martinez of EPA’s criminal enforcement program in North Dakota.  “The defendant’s disregard of environmental regulation under the Safe Drinking Water Act put human health and the environment at serious risk.  Today’s plea demonstrates that EPA and its law enforcement partners are committed to protecting North Dakota’s precious water sources and the communities that rely upon them.”

According to an agreed-upon factual statement filed in court, Garber admitted to conspiring with others in a number of coordinated and illegal acts.  For instance, Garber injected saltwater into the well without first having the state of North Dakota witness a test of the well’s integrity, causing a regulator to determine that there was no assurance as to the integrity of the well and that “the fluid could be going anywhere.”  Garber also violated a February 2012 order from the state to stop injecting until a well integrity test was done.  When questioned by the state about these injections, Garber made false statements in a March 6, 2012 email where he denied that these injections occurred.

The well failed a pressure test on Feb. 2, 2012, and Garber continued to inject saltwater even though he knew that the well did not have integrity and thus posed an increased risk of contaminating ground water.  

Further, Garber moved a device called a “packer” up the wellbore in violation of the well’s permit, without first getting approval from the state.  A properly placed packer is an essential device to maintaining integrity of the well and ensuring wastewater does not escape into surrounding soil and groundwater.

Then, Garber gave false information to a state inspector regarding the depth of the packer. 

A search warrant was executed at the well on Nov. 20, 2013, and it was confirmed that the packer had been moved up in the wellbore and was significantly higher than the depth that had been initially represented by Garber.  Despite illegally moving the packer on Feb. 14, 2012, Garber continued to inject saltwater into the well until on or about March 5, 2012, when a state employee shut the well in.

The case was investigated by the U.S. Environmental Protection Agency’s Criminal Investigation Division.  Significant cooperation was provided by the North Dakota Industrial Commission (NDIC).  The case is being prosecuted by the United States Attorney’s Office for the District of North Dakota and the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.

A Detroit-area physician who made fraudulent referrals for home health care in a $1.3 million Medicare fraud scheme pleaded guilty today.

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, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) Chicago Regional Office made the announcement.

Dr. Vicha Janviriya, 77, of Southfield, Michigan, pleaded guilty before U.S. District Judge Arthur J. Tarnow in the Eastern District of Michigan to one count of conspiracy to commit health care fraud.  Sentencing is scheduled for Jan. 21, 2015.

According to court documents, Janviriya admitted that from February 2006 through September 2012, he falsified medical documentation and falsely certified Medicare beneficiaries as homebound or requiring home health care services.  In many cases, he had never met those beneficiaries.  Janviriya admitted that he knew the false home health certifications would be used to support false claims to Medicare for services that were never rendered or not medically necessary, or where the Medicare beneficiary referrals were obtained through the payment of kickbacks. 

Between February 2006 and September 2012, Janviriya caused Medicare to pay approximately $1,366,496 based on his false home health certifications.

This case was 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 Eastern District of Michigan.  This case is being prosecuted by Trial Attorneys Niall M. O’Donnell and Matthew Thuesen 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 Team (HEAT), go to: www.stopmedicarefraud.gov.

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The Justice Department announced today that it reached a settlement with Autobuses Ejecutivos LLC, doing business as Omnibus Express, a bus company based in Houston, Texas.  The settlement resolves a lawsuit filed in August 2013 by the department under the Immigration and Nationality Act’s (INA) antidiscrimination provision.  The lawsuit alleged that the company discriminated against U.S. workers by preferring to hire workers on temporary H-2B visas for its bus driver positions.

Under the settlement agreement, Omnibus Express will establish a $208,000 fund to compensate victims of its discriminatory practices, pay $37,800 in civil penalties to the United States and be subject to monitoring of its hiring and recruiting practices for a two-year period.  Individuals who sought bus driver positions with Omnibus Express between August 2012 and February 2013, but were not hired, should contact Joann Sazama at (202) 307-3092, or Ryan Thompson at (202) 616-5557. 

“Federal law prohibits employers from discriminating on the basis of citizenship status in hiring and recruiting,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “The department is committed to investigating and prosecuting discriminatory hiring preferences that impede the ability of U.S. citizens and other work-authorized individuals to compete equally for employment.”

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA.  Among other things, the statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.  For more information about protections against employment discrimination under immigration laws, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call OSC’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar at www.justice.gov/crt/about/osc/webinars.php; email osccrt@usdoj.gov; or visit the website at www.justice.gov/crt/about/osc.  

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

The Justice Department announced today that the United States has filed a civil injunction suit against a Dayton, Ohio, man to enjoin him from preparing tax returns which understate his customer’s tax liabilities.

Rodger S. Thomas Sr. is alleged to have prepared tax returns for customers that claimed false business deductions on their Schedule C (profit and loss from business) and fictitious deductions on their Schedule A (itemized deductions) from 2006 through 2009 in a complaint filed in the U.S. District Court for the Southern District of Ohio.  According to the complaint, Thomas also prepared false Forms 1099 in order to inflate customers’ income and maximize their Earned Income Tax Credits.  The government alleged that Thomas would then report these payments on the Schedule C of his own income tax returns as expenses incurred by his business Ramjet Express.  The complaint also alleged that Thomas failed to sign or affix a Preparer Tax Identification Number (PTIN) to many of the returns that he prepared.

In 2012, Thomas pleaded guilty to one count of making a false statement on an income tax return and one count of aiding and assisting in the filing of a false income tax return.  He was subsequently sentenced to 24 months in prison.  Thomas was released from prison in March 2014 and, according to the government’s complaint, has indicated that he intends to continue preparing tax returns.  The United States seeks, among other things, that the court bar Thomas from preparing or assisting others in the preparation of a tax form that understates a tax liability.  Additionally, the government is requesting that Thomas be required to identify himself on returns using his name and PTIN, keep a list of the names of individuals for whom he prepares federal tax returns, and provide the list of customers to the Internal Revenue Service (IRS) for inspection upon demand.

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. Rodger S. Thomas Sr.
Complaint for Preliminary and Permanent Injunction

A federal jury in the Western District of Louisiana today returned a verdict imposing the death penalty on a Las Vegas man for the brutal kidnapping and murder of a 12-year-old girl.  This case represents the first time the death penalty has been imposed in federal court in the Western District of Louisiana.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Stephanie A. Finley and Special Agent in Charge Michael J. Anderson of the FBI’s New Orleans Division made the announcement. 

Thomas Sanders, 57, was convicted on Sept. 8, 2014, of one count of kidnapping resulting in death and one count of using a firearm during a crime of violence resulting in death, for the kidnap and murder of Lexis Roberts in the fall of 2010. 

“This is a heartbreaking case,” said Assistant Attorney General Caldwell.  “A young girl witnessed the murder of her mother, was held captive for days, and had her life cut tragically short by a senseless, brutal murder.  We hope today’s verdict will help Lexis’s family as they continue to struggle with the loss of their loved ones.”

“These types of cases are never easy, but today we remember the victims, their families and their loved ones,” said U.S. Attorney Finley.  “The nature of the crime and the level of violence involved are something that we never get used to no matter how long we have done this.  The severity of the sentence imposed against Sanders underscores the senseless brutality of his acts against an innocent 12-year-old girl.  Lexis Roberts was needlessly taken from a family that loved her, and she was denied the most fundamental right of life, and they were denied the joy of knowing what that life could have been.  Still, we do not lose sight of the fact that this trial and sentencing also represent the right of due process that was extended to Sanders, and a jury of his peers has rendered justice.  Nothing, no trial or sentence, can ever bring Lexis or her mother back, but we hope that the verdict brings some measure of closure to Lexis’s family.  The prosecutors and the law enforcement agencies that assisted in this case are to be commended for their hard work.  The importance of their collective efforts cannot be overstated.”

“Our thoughts and prayers go out to the family and friends of the victims who have endured unimaginable grief while awaiting the just verdict and sentence for such horrific crimes,” said FBI Special Agent in Charge Anderson.

Evidence admitted during trial established that Sanders met Suellen Roberts, 31, in the summer of 2010 when Roberts rented a storage unit at a warehouse in Las Vegas where Sanders worked.  Roberts and Sanders began dating, and approximately two months later Roberts agreed that she and her 12-year-old daughter, Lexis, would go on a trip with Sanders over the Labor Day weekend to a wildlife park near the Grand Canyon.  As they were returning to Nevada after three days of traveling, Sanders pulled off Interstate 40 in a remote location in the Arizona desert and shot Suellen Roberts in the head and forced Lexis Roberts into the car, keeping her captive.

Sanders drove several days across the country before he murdered Lexis Roberts in a wooded area in Catahoula Parish, Louisiana.  Evidence at trial established that Sanders shot Lexis Roberts four times, cut her throat and left her body in the woods, where a hunter found her body on Oct. 8, 2010.  A nationwide manhunt ensued, and Sanders was arrested on Nov. 14, 2010, at a truck stop in Gulfport, Mississippi, by FBI agents and a Harrison County Sheriff’s Deputy.

At trial, the jury heard a recorded confession in which Sanders admitted killing the mother and daughter.   

This case was investigated by the FBI’s New Orleans Division, Central Louisiana Safe Streets Task Force, Catahoula Parish Sheriff’s Office, Harrison County Sheriff’s Office, Yavapai County Arizona Sheriff’s Office, Coconino County Arizona Sheriff’s Office, and the Las Vegas Metropolitan Police Department.  Trial Attorney Julie Mosley of the Criminal Division’s Capital Case Section and Assistant U.S. Attorneys William J. Flanagan and Brandon B. Brown prosecuted the case.

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Kawasaki Kisen Kaisha Ltd. (K-Line), a Japanese corporation, has agreed to plead guilty and to pay a $67.7 million criminal fine for its involvement in a conspiracy to fix prices, allocate customers, and rig bids of international ocean shipping services for roll-on, roll-off cargo, such as cars and trucks, to and from the United States and elsewhere, the Department of Justice announced today.

According to a one-count felony charge filed today in U.S. District Court for the District of Maryland in Baltimore, K-Line conspired to suppress and eliminate competition by allocating customers and routes, rigging bids and fixing prices for the sale of international ocean shipments of roll-on, roll-off cargo to and from the United States and elsewhere, including the Port of Baltimore.  K-Line participated in the conspiracy from at least as early as February 1997 until at least September 2012.  K-Line has agreed to cooperate with the Department’s ongoing antitrust investigation.  The plea agreement is subject to court approval.

Roll-on, roll-off cargo is non-containerized cargo that can be both rolled onto and rolled off of an ocean-going vessel.  Examples of this cargo include new and used cars and trucks and construction and agricultural equipment.

“Our efforts exposed a long-running global conspiracy that operated globally, affecting the shipping costs of staggering numbers of cars, into and out of the Port of Baltimore, and other ports in the United States and across the globe.  Today’s announcement demonstrates our continuing resolve to bring the members of this conspiracy to justice. ” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “We are continuing our efforts to ensure that both the corporations and individuals involved in this cartel are held accountable for their acts and the harm they inflicted on American consumers.” 

According to the charge, K-Line and its co-conspirators conspired by, among other things, agreeing – during meetings and communications – on prices, allocating customers, agreeing to refrain from bidding against one another and exchanging customer pricing information.  The department said the companies then charged rates in accordance with those agreements for international ocean shipping services for certain roll-on, roll-off cargo to and from the United States and elsewhere at collusive and non-competitive prices.

K-Line is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of a $100 million criminal fine for corporations.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s charge is the result of an ongoing federal antitrust investigation into price fixing, bid rigging, and other anticompetitive conduct in the international roll-on, roll-off ocean shipping industry, which is being conducted by the Antitrust Division’s Washington Criminal I Section and the FBI’s Baltimore Field Office, along with assistance from the U.S. Customs and Border Protection Office of Internal Affairs, Washington Field Office/Special Investigations Unit.  Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal I Section at 202-307-6694, visit www.justice.gov/atr/contact/newcase.html, or call the FBI’s Baltimore Field Office at 410-265-8080.

A Miami man was arrested today on health care fraud and money laundering charges in connection with an alleged $24 million scheme to defraud Medicare.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; Special Agent in Charge Paul Wysopal of the FBI’s Tampa Field Office; Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office; 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 Mike Fields of HHS-OIG’s Dallas Regional Office made the announcement.

Angel M. Mirabal, 61, of Miami, was arrested on a previously sealed indictment returned by a grand jury in the Southern District of Florida charging him with conspiracy to commit health care fraud and conspiracy to commit money laundering of health care fraud proceeds, as well as 10 substantive money laundering counts.

According to the indictment, Mirabal operated Quick Solutions Medical Supplies Inc., a durable medical equipment (DME) supply company located in Houston, Texas.  From April 2010 through July 2013, Mirabal allegedly conspired with individuals who operated other DME companies to submit approximately $24 million in fraudulent claims for reimbursement to Medicare.  These claims represented that Quick Solutions and others provided DME, such as wound care supplies, to Medicare beneficiaries when, in fact, these items were not medically necessary and were not actually provided.  Many of the Medicare beneficiaries who supposedly received DME from Quick Solutions resided hundreds of miles away in Miami.  Mirabal and his co-conspirators allegedly used fraudulent shell companies to launder and disburse the proceeds from the health care fraud scheme.

An indictment is only an accusation, and a defendant is presumed innocent until and unless 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 U.S. Attorney’s Office for the Southern District of Florida.  This case is being prosecuted by Trial Attorney Timothy P. Loper 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 Team (HEAT), go to: www.stopmedicarefraud.gov.

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WASHINGTON – El Departamento de Justicia anunció hoy que llegó a un acuerdo con Autobuses Ejecutivos, LLC, operando como Omnibus Express, una compañía de autobuses con sede en Houston, Texas.  El acuerdo resuelve una demanda presentada en agosto del 2013 por el departamento bajo la provisiόn antidiscriminatoria de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).  La demanda alegό que la compañía discriminaba en contra de trabajadores en los Estados Unidos ya que prefería contratar a trabajadores con visas temporales H-2B para las posiciones de operadores.

Según el acuerdo, Omnibus Express establecerá un fondo de $208,000 para compensar a los individuos que fueron víctimas de sus prácticas discriminatorias, le pagará $37,800 a los Estados Unidos en forma de sanciones civiles, y también estará sujeto a un período de monitoreo de sus prácticas de contratación y reclutamiento por el departamento por dos años.  Los individuos que solicitaron una posición de operador con Omnibus Express entre Agosto del 2012 y Febrero del 2013 y no fueron contratados deben comunicarse con Joann Sazama al (202) 307-3092, o con Ryan Thompson al (202) 616-5557.

            “La ley federal prohíbe que  los empleadores discriminen durante la contratación y reclutamiento por motivo de estatus de ciudadanía,” dijo Molly Moran, Sub-Procuradora General Interina para la Divisiόn de Derechos Civiles.  “El departamento se compromete a investigar y combatir las preferencias discriminatorias durante la contratación que impiden que los ciudadanos estadounidenses y los individuos con autorización de trabajo compitan igualmente por el empleo.”

La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas a la Inmigración es la oficina responsable por hacer cumplir con la provisión antidiscriminatoria de la INA.  Entre otras cosas, la ley prohíbe discriminación por estatus de ciudadanía o del origen nacional durante la contrataciόn, el despido, el reclutamiento o la referencia por comisiόn, las prácticas injustas de documentación, represalias, e intimidación.  Para más información sobre las protecciones contra discriminación en el empleo según las leyes migratorias, llame a la línea directa de OSC para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidad auditiva), llame a la línea directa de OSC para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidad auditiva), o para registrarse para un seminario gratis ofrecido a través del internet visite www.justice.gov/crt/about/osc/webinars.php, envíe un correo electrónico al osccrt@usdoj.gov, o visite el sitio de Internet www.justice.gov/crt/about/osc.

Los solicitantes o empleados que consideren que fueron sujetos a (1) diferentes requisitos de verificación por su estatus de ciudadanía, estatus migratorio u origen nacional, o (2) discriminación por estatus de ciudadanía, estatus migratorio, u origen nacional con relación a la contratación, el despido y el reclutamiento o la referencia por comisión, deberán comunicarse a la línea dedicada a los trabajadores anteriormente citada para poderlos ayudar.

Caremark L.L.C., a pharmacy benefit management company (PBM), will pay the United States $6 million to settle allegations that Caremark knowingly failed to reimburse Medicaid for prescription drug costs paid on behalf of Medicaid beneficiaries who also were eligible for drug benefits under Caremark-administered private health plans, the Justice Department announced today.  Caremark is operated by CVS Caremark Corporation, one of the largest PBMs and retail pharmacies in the country. 

“It is vitally important that cash-strapped Medicaid programs receive reimbursement for the costs they incur that should properly have been paid for by other insurers,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “We are committed to protecting the integrity of state Medicaid programs.”

When an individual is covered by both Medicaid and a private health plan, the individual is called a “dual eligible.”  Under the law, the private insurer, rather than the government, must assume the costs of health care for dual eligibles.  If Medicaid erroneously pays for the prescription claim of a dual eligible, Medicaid is entitled to seek reimbursement from the private insurer or its PBM.  A PBM administers and manages the drug benefits for clients who offer drug benefits under a health insurance plan. 

Caremark served as the PBM for private health plans who insured a number of individuals receiving prescription drug benefits under both a Caremark-administered plan and Medicaid.  According to the government, Caremark’s RxCLAIM computer platform allegedly failed to pay the full amount due on certain claims because it improperly deducted certain co-payment or deductible amounts when calculating payments.  The government alleged that Caremark’s actions caused Medicaid to incur prescription drug costs for dual eligibles that should have been paid for by the Caremark-administered private health plans rather than Medicaid.     

The allegations settled today arose from a lawsuit filed by Donald Well, a former Caremark employee, under the qui tam, or whistleblower, provisions of the False Claims Act.  The United States may intervene in the lawsuit, as it did here.  Under the False Claims Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery.  Well will receive $1.02 million plus interest.

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 $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.

This case was jointly handled by the U.S. Attorney’s Office for the Western District of

Texas, the Justice Department’s Civil Division, and the Department of Health and Human Services Office of Inspector General.

The case is captioned United States ex rel. Well v. CVS Caremark, Inc., Civil Action No. SA:11-CV-00747 (W.D. Tex.).  The claims settled by this agreement are allegations only; there has been no determination of liability.

Attorney General Eric Holder and U.S. Secretary of the Interior Sally Jewell today announced the settlement of a lawsuit filed by the Navajo Nation regarding the U.S. government’s management of funds and natural resources that it holds in trust for the Navajo Nation.  The settlement resolves a long-standing dispute, with some of the claims dating back more than 50 years, and brings to an end protracted litigation that has burdened both the Navajo Nation and the United States. 

Secretary Jewell joined Navajo Nation President Ben Shelly, Assistant Secretary of Indian Affairs Kevin Washburn, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resource Division Sam Hirsch, and numerous tribal officials at a commemorative signing ceremony held in Window Rock, Arizona today.

“This historic agreement resolves a longstanding dispute between the United States and the Navajo Nation, including some claims that have been sources of tension for generations,” said Attorney General Holder.  “The Department of Justice has made it a top priority to honor and foster the trust relationship between the United States and American Indian tribes.  This landmark resolution ends protracted and burdensome litigation. It will provide important resources to the Navajo Nation.  And it fairly and honorably resolves a legal conflict over the accounting and management of tribal resources.  This demonstrates the Justice Department’s firm commitment to strengthening our partnerships with tribal nations -- so we can expand cooperation, empower sovereign tribes, and keep moving forward together with mutual respect and shared purpose.”

 “This settlement reflects our continuing commitment to upholding the federal trust responsibility to Indian Country and to building strong, prosperous and resilient tribal communities,” said Secretary Jewell.  “The historic agreement strengthens the government-to-government relationship between the United States and the Navajo Nation, helps restore a positive working relationship with the Nation’s leaders and empowers Navajo communities. The landmark Cobell settlement and resolution of 80 other tribal trust management lawsuits under President Obama has opened a new chapter in federal trust relations with tribes and individual Indian beneficiaries.”

The Navajo Nation is the largest Indian tribe in the United States, with over 300,000 members.  The Nation has the largest reservation in the United States, encompassing over 27,000 square miles of land in the states of Arizona, New Mexico, and Utah.  The reservation includes more than 14 million acres of trust lands, which are leased for various productive uses, including farming; grazing; oil, gas, and other mineral development; businesses; rights-of-way; timber harvesting; and housing.  The Navajo Nation also owns or has ownership interests in over 100 trust accounts.

Under the agreement, the United States will pay the Navajo Nation $554 million in settlement of its claims.  In return, the Navajo Nation will dismiss its current lawsuit and forego further litigation regarding the United States’ historic management or accounting of Navajo funds or resources held in the trust by the United States.  The Navajo Nation and the United States will undertake prospectively information-sharing procedures that will lead to improved communication concerning the management of Navajo’s trust funds and resources, and also the parties will abide by alternative dispute resolution procedures to reduce the likelihood of future litigation.

In addition to the negotiations that led to this historic settlement with the Navajo Nation, the Departments of Justice, the Interior, and the Treasury have been diligently engaged in settlement conversations involving other litigating tribes.  On April 11, 2012, the United States announced settlements with 41 tribes for about $1 billion.  Since that time, the federal government has focused considerable dedicated effort on the remaining tribal trust accounting and trust mismanagement cases and has been able to resolve “breach of trust” claims, without the need for further extended litigation, of almost 40 additional tribes, for over $1.5 billion.

The United States will continue settlement discussions in numerous other cases that are still pending and is committed to resolving the litigating tribes’ trust accounting and trust mismanagement claims in a manner that is fair and reasonable to the tribes and the United States.

“From his first days in office, President Obama has worked to honor the government-to-government relationships between the United States and tribal governments," said Acting Assistant Attorney General Sam Hirsch.  "This settlement is yet another example of the Administration’s promise to strengthen the ties between the United States and the Navajo Nation.  And it reflects my personal commitment to resolving long-standing lawsuits rather than wasting the time and resources of both the United States and Indian tribes in contentious litigation.”

STATEMENT FROM ETHEL KENNEDY REGARDING ATTORNEY GENERAL ERIC HOLDER

“Eric Holder has vigilantly defended an ideal Bobby strongly believed -- that the Justice Department must deliver justice for all Americans. Especially our most vulnerable, who live in the very communities where justice can be hardest to find.”

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STATEMENT FROM MYRLIE EVERS REGARDING ATTORNEY GENERAL ERIC HOLDER

“There has been no greater ally in the fight for justice, civil rights, equal rights, and voting rights than Attorney General Holder.  As a fierce consequential defender of the right to vote, the Attorney General has worked tirelessly to ensure that every American has the right, the ability and the opportunity to cast their vote and let their voice be heard.

“Attorney General Holder never shied away from the issues that greatly affect us all.  From lobbying Congress to reduce prison sentences for non-violent drug offenders, to cracking down on abuse by police departments and to working to ease racial tension throughout the United States, the Attorney General was always there ready to correct injustices and offer common sense reforms to better our nation.

“I am honored to call the Attorney General a friend, and have had the distinct pleasure of working very closely with him throughout his tenure as AG and prior to his appointment. Just last year, when we celebrated the life of my husband Medgar, Attorney General Holder was the first to offer his assistance to honor Medgar and vowed to continue his pursuit for justice for all Americans, just as Medgar did.

“I wish AG Holder continued success, and look forward to continuing our work together to ensure that that this country stays on the path to greatness, righteousness and equality that we both have dedicated our lives to.”

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STATEMENT FROM MAYOR RAHM EMANUEL REGARDING ATTORNEY GENERAL ERIC HOLDER

“On behalf of the City of Chicago, I want to thank Attorney General Eric Holder for more than five and a half years of extraordinary service as our nation’s Attorney General. Whether it’s reducing gun violence on our streets or supporting restorative justice in our schools so more children can stay on track to graduate, the City of Chicago has had a strong partner in Attorney General Holder. He has been a great champion for keeping our streets safer, making our communities stronger, and making our criminal justice system fairer. We are a better nation because of Attorney General Holder’s outstanding service.”  

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STATEMENT FROM THE LEADERSHIP CONFERENCE ON CIVIL AND HUMAN RIGHTS CEO WADE HENDERSON REGARDING ATTORNEY GENERAL ERIC HOLDER

“Attorney General Holder has presided over one of the most forward-thinking and visionary Justice Departments in memory. Remembering only his historic confirmation as the first African-American attorney general would not do justice to his tenure over the past six years, which was one of the most successful in modern American history.

"Under his leadership, the Department of Justice has put forth groundbreaking reforms to our broken criminal justice system, championed the right to vote, defended the Affordable Care Act, protected homeowners from predatory lending, defended the federal government from state overreach on immigration laws, and backed the reauthorization of the Violence Against Women Act.

"His tenure is even more remarkable considering that he was victim to an unprecedented witch hunt and abuse of power by House Republicans.  Their attempt to stain the office by issuing the only contempt citation against a sitting cabinet member in modern history only validated Attorney General Holder’s effectiveness and commitment to promoting the civil and human rights of all Americans.

"Attorney General Holder came to the job as the one of the most well-prepared nominees ever considered for the post, and he has surpassed even those high expectations. We commend his service to our nation and will work to confirm a successor that will continue Justice’s commitment to the advancement of civil and human rights.”

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STATEMENT FROM THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND REGARDING ATTORNEY GENERAL ERIC HOLDER

The NAACP Legal Defense and Educational Fund, Inc. today lauded the stellar leadership of departing Attorney General Eric Holder, who announced his resignation this morning. LDF also emphasized the need for continued vigilance in the protection of civil rights.

“When Attorney General Holder took the helm of the Department of Justice in 2009, he vowed to make the Civil Rights division the department's ‘crown jewel,’ and he has more than fulfilled that mission,” said Sherrilyn A. Ifill, President and Director-Counsel of NAACP LDF. “When the history of his tenure is written, Eric Holder will ultimately be recognized as one of the finest Attorneys General this country has ever known. In the field of civil rights there are few who could even claim to rival this Attorney General's dedication, strategic focus and commitment."

“General Holder's vision for the Civil Rights Division was one of restoration and transformation, from his leadership on voting rights, to legal services for the poor, to criminal justice reforms and, in recent weeks, to his forceful response to the tragic events in Ferguson,” Ifill added.

Ifill expressed particular support for the Attorney General’s forceful and courageous willingness to speak openly about the problem of mass incarceration in this country. “The ‘Smart on Crime’ initiatives he announced last year are a quintessential example of Attorney General Holder’s vision and boldness,” she said.

In 2013, Ifill noted, when the Supreme Court invalidated key portions of the Voting Rights Act in a devastating decision, Attorney General Holder immediately deployed the full litigation strength of the Justice Department in places like Texas and North Carolina to protect voters of color who had been made even more vulnerable to voting discrimination.  Most recently, his Justice Department attorneys stood side-by-side with LDF lawyers in a Texas courtroom to challenge that state’s discriminatory photo ID law.  A decision in that case, United States v. Texas, is expected in the next few weeks.

“It is hard to overstate the impact of General Holder’s tenure – but we are confident that his initiatives will endure, even under new leadership,” said Leslie Proll, Director of LDF’s Washington Office.  “At this critical time for America, we can’t afford to lose momentum on civil rights.  Certainly the next nominee will have big shoes to fill, but we trust and expect that his replacement will be up to the task.”

Attorney General Holder began his storied legal career as an intern at the NAACP Legal Defense Fund while at law school.  Earlier this year, he was the keynote speaker at LDF’s 60th anniversary celebration of the landmark Supreme Court ruling in Brown v. Board of Education. View his remarks online here.

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STATEMENT FROM THE HUMAN RIGHTS CAMPAIGN REGARDING ATTORNEY GENERAL ERIC HOLDER

The Human Rights Campaign (HRC), the nation’s largest civil rights organization working to achieve lesbian, gay, bisexual, and transgender (LGBT) equality, today praised the distinguished service of Eric Holder upon learning that he will be stepping down as U.S. Attorney General pending confirmation of his successor. HRC believes that the President should use this opportunity to appoint the nation’s first out LGBT cabinet member.

"Some Attorneys General wait for history, others make history happen. Attorney General Holder made history for the LGBT community,” said Chad Griffin, President of HRC. “He was our Robert F. Kennedy, lightening the burden of every American who faces legal discrimination and social oppression. We owe him a profound debt of gratitude for his legacy of advocacy and service."

Attorney General Holder has been a staunch advocate for civil rights for LGBT Americans throughout his career in public life. As U.S. Attorney General for the District of Columbia, he formed the first hate crimes task force, which has become a model for U.S. Attorneys throughout the country. He spearheaded the administration’s decision to not defend the Defense of Marriage Act (DOMA) on the grounds that it was unconstitutional. Under his leadership, the FBI and Civil Rights Division began actively investigating and prosecuting hate crimes based on sexual orientation and gender identity with the implementation of the Matthew Shepard and James Byrd, Jr. Hate Crimes Prevention Act. 

His leadership is without comparison in the swift implementation of the Supreme Court’s Decision in Windsor v. United States. Attorney General Holder declared that the ruling meant that, “Americans in same-sex marriages are entitled to equal protection and equal treatment under the law.” From this historic statement, more than 1,000 federal rights and benefits of marriages have begun to flow to same-sex couples across the country.

HRC continues to advocate for the historic appointment of an openly LGBT cabinet member to the Obama administration.

"President Obama faces a historic opportunity in light of Attorney General Holder's departure,” said Chad Griffin, President of HRC. “The President has expressed a commitment to appointing a cabinet that reflects the full diversity of the American people, and there are many richly-qualified candidates available to serve as the first openly-LGBT cabinet secretary. It would be a natural extension of this administration's enduring commitment to equality to send a message of visibility and inclusion by nominating such a candidate to serve in this historic role."

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STATEMENT FROM U.S. SECRETARY OF EDUCATION ARNE DUNCAN REGARDING ATTORNEY GENERAL ERIC HOLDER

“It has been a true honor to work with Eric Holder, and I know he will remain an ally in the fight for justice and equal opportunity for every student in America. Eric understands - at a very deep, personal level - the costs to families, communities and our country when students do not have equal access to educational opportunities. I am grateful for Eric’s partnership on so many issues, among them: addressing disparities in school discipline, enforcing civil rights laws in education, keeping schools and college campuses safe from violence, and ensuring value and service for students who borrow money for college. I am so grateful to Eric, Sharon and their family for their commitment to equality for all. I look forward to continuing this work with the next Attorney General.”

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STATEMENT FROM U.S. SECRETARY OF LABOR THOMAS E. PEREZ REGARDING ATTORNEY GENERAL ERIC HOLDER

“Eric Holder is a man of extraordinary conscience and competence. It was a unique honor to serve with him at the Justice Department, and I am enormously grateful for his unwavering commitment to the cause of civil rights and to reinvigorating the Civil Rights Division in particular.

“I am confident that when objective historians write about America’s most critical moments, Eric Holder will go down as one of the preeminent attorneys general in our nation’s history – whether it’s his support of LGBT equality and his indispensable role in the president’s decision not to defend the Defense of Marriage Act; or his aggressiveness in ensuring the right to vote; or his commitment to sentencing reform; or his tough crackdown on hate crimes, financial fraud and racial profiling.

“The Justice Department is stronger for his quarter century of service there. The nation is stronger for his lifetime of work on behalf of justice and equal opportunity.”

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STATEMENT FROM SENATOR BILL NELSON REGARDING ATTORNEY GENERAL ERIC HOLDER

“I have found Attorney General Holder to be an outstanding public servant with whom I’ve had the privilege to work with on a number of issues. Among them, he has led the fight to protect the right to vote for all citizens and that includes his recent letter warning Florida’s governor against any future efforts there to suppress the vote.  And he also has been very supportive of scientists’ efforts to unlock the secrets of potential abuse at a now-shuttered reform school in North Florida.  The president will miss his counsel.” 

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STATEMENT FROM REPRESENTATIVE JOHN CONYERS REGARDING ATTORNEY GENERAL ERIC HOLDER

“Attorney General Eric Holder has delivered the utmost distinguished service during his tenure in the Obama Administration.  As the first African American to serve as Attorney General, Mr. Holder has shown vigorous dedication to the American people and advancing civil rights for all. 

“As the fourth longest serving Attorney General in U.S. history, his devotion to the pursuit of justice is unparalleled and has comforted the nation during great times of turmoil. I appreciate that he will remain in his post until a successor is named.  I wish him well in all his future endeavors and thank him for his tireless efforts over the past six years and more.”

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STATEMENT FROM REPRESENTATIVE ELEANOR HOLMES NORTON REGARDING ATTORNEY GENERAL ERIC HOLDER

“It is heartbreaking for me to see the Attorney General leave the administration, but it is understandable that, after six years of outstanding work on domestic and international legal issues, he would desire to return to private life,” Norton said.  “We in the District of Columbia are especially proud and grateful that it was his outstanding record as U.S. Attorney here that first brought Eric to the attention of President Clinton and, ultimately, to President Obama.  This morning, we discussed his exceptional work to avoid the harshness of federal mandatory minimum sentencing in selected cases, when the results would have been particularly unfair, by using the local courts.  This was possible because of the U.S. Attorney’s dual local and federal jurisdiction.  His work influenced the changes now underway with federal mandatory minimums that are reducing the sentences of thousands of low-level drug offenders.”

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STATEMENT FROM REPRESENTATIVE ELIJAH E. CUMMINGS REGARDING ATTORNEY GENERAL ERIC HOLDER

“Over the past six years, Attorney General Holder has worked to improve our nation’s broken justice system, enforce civil rights laws, ban racial profiling, rekindle trust between law enforcement and communities of color, restructure sentencing guidelines, and identify constructive alternatives to incarceration.  In the process, he has improved how our courts and law enforcement officers do their jobs.

“As the first-ever African American to serve in this position, Attorney General Holder has promoted equal protection under the law by building bridges across ideology, race, gender, and class.  His capacity to fight for the rights of every American has been boundless, and his plan to continue many of those battles beyond his tenure at the Department of Justice is a testament to his character.

“In his 26 years of public service, he has built a legacy of which he can be extremely proud, and I wish him the best as he moves on to new endeavors.”

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STATEMENT BY REPRESENTATIVE JOHN LEWIS REGARDING ATTORNEY GENERAL ERIC HOLDER

"I am deeply saddened to learn today that the U.S. Attorney General, Eric Holder, is stepping down.  His resignation is a great loss for any American seeking justice in our society.  He became the symbol of fairness, an embodiment of the best in the federal government. 

 He has been a persistent and consistent leader in the struggle for civil and human rights.  That legacy is in his bones.  It is written on his heart, and his intelligence and committed leadership will be hard to replace. 

 In my conversation with him today, I thanked the Attorney General for his years of service to this nation.  He and his family have been a blessing, and his leadership will be sorely missed."

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STATEMENT BY SENATOR PATRICK LEAHY REGARDING ATTORNEY GENERAL ERIC HOLDER

“Attorney General Holder has been an extraordinary leader of the Department of Justice, and is to be congratulated for his service.  Under his leadership, the Department has had remarkable success in convicting terrorists and disrupting threats to national security, while upholding the Department’s mission of keeping our communities safe from crime and fighting fraud.  I particularly appreciate how Attorney General Holder has restored the Civil Rights Division to its historical mission.  His dedication to defending Americans’ voting rights, at a time when these constitutional rights are under attack, has been supremely important.  Attorney General Holder has demonstrated his commitment to protecting the civil rights of all Americans with his thoughtful implementation of both the Matthew Shepard Hate Crimes Act and the Violence Against Women Reauthorization Act.   His recent focus on the need for sentencing reform and programs to reduce recidivism have brought to the fore an important conversation we as a nation must have.  I thank Attorney General Holder for his service, and I wish him and his wife Sharon the very best in the future.”

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STATEMENT BY SENATOR BARBARA A. MIKULSKI REGARDING ATTORNEY GENERAL ERIC HOLDER

“During his six years as Attorney General, Eric Holder Jr., supported our federal law enforcement agents in the fight against criminals and terrorists and was a strong advocate for civil rights and criminal justice reform.

“In the dark days of sequester and shutdown, Attorney General Holder worked closely with me in my role as CJS Chairwoman to keep DOJ and its people on the job and on the case.

“As one of the longest serving members of President Obama’s cabinet, he has served his nation and his President well.

"I thank him for his dedicated service to our country and wish him well in the future.”

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STATEMENT BY SENATOR BILL NELSON REGARDING ATTORNEY GENERAL ERIC HOLDER

“During his six years as Attorney General, Eric Holder Jr., supported our federal law enforcement agents in the fight against criminals and terrorists and was a strong advocate for civil rights and criminal justice reform.

“In the dark days of sequester and shutdown, Attorney General Holder worked closely with me in my role as CJS Chairwoman to keep DOJ and its people on the job and on the case.

“As one of the longest serving members of President Obama’s cabinet, he has served his nation and his President well.

"I thank him for his dedicated service to our country and wish him well in the future.”

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TWEET BY REPRESENTATIVE JOHN LEWIS REGARDING ATTORNEY GENERAL ERIC HOLDER

“I deeply saddened to learn today that the U.S. Attorney General, Eric Holder, is stepping down.”

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TWEET BY SENATOR SHELDON WHITEHOUSE REGARDING ATTORNEY GENERAL ERIC HOLDER

“Thank you, Attorney General #Holder, for restoring confidence & morale and bringing honor & dignity to @TheJusticeDept for the last 6 years.”

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TWEET BY SENATOR PATRICK LEAHY REGARDING ATTORNEY GENERAL ERIC HOLDER

“Will talk with Andrea Mitchell @mitchellreports @MSNBC in a few minutes, about Eric Holder.”

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TWEET BY SENATOR CHUCK SCHUMER REGARDING ATTORNEY GENERAL ERIC HOLDER

“AG Holder was like ‘Horatius at the Bridge’ preventing or slowing down the regressive march to take away people’s hard-earned rights.”

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TWEET BY SENATOR LINDSEY GRAHAM REGARDING ATTORNEY GENERAL ERIC HOLDER

“I appreciate AG Holder’s service to our country even though we had strong disagreements at times. I wish him well in future endeavors.”

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A New Orleans grand jury today indicted seven defendants for their roles in a $56 million Medicare fraud scheme that operated in New Orleans and surrounding communities.  Thirteen defendants have now been charged in this case, three of whom pleaded guilty to their conduct yesterday. 

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite Jr. of the Eastern District of Louisiana, Special Agent in Charge Michael Anderson of the FBI’s New Orleans Field Office and Special Agent in Charge Mike Fields of the Dallas Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) made the announcement.

Paige Okpalobi, 57, of Slidell, Louisiana; Joe Ann Murthil, 57, of New Orleans; Latausha Dannel, 34, of Laplace, Louisiana; Dr. Winston Murray, 62, of Hammond, Louisiana; Dr. Divini Luccioni, 53, of Kenner, Louisiana; Christopher White, 48, of Destrehan, Louisiana; and Beverly Breaux, 66, of New Orleans, were charged in connection with their roles in a home health care fraud scheme involving thousands of Medicare recipients.  Mark Morad, 51, of Slidell; Dr. Barbara Smith, 65, of Metairie, Louisiana; and Dr. Roy Berkowitz, 68, of Slidell, had been previously charged for their participation in the scheme, and today’s indictment added new charges against them.

The second superseding indictment comes one day after Dr. Alvin Darby, 58, of Slidell; Demetrius Temple, 54, of New Orleans; and Nicole Oliver, 44, of Napoleonville, Louisiana, each pleaded guilty to conspiracy to commit health care fraud for their roles in the scheme.  Sentencing for each is scheduled for Jan. 7, 2015 before U.S. District Judge Sarah S. Vance of the Eastern District of Louisiana.

The indictment alleges that the defendants operated a number of companies in and around New Orleans that purported to offer home health services and durable medical equipment to Medicare beneficiaries.  The companies, Interlink Health Care Services Inc., Memorial Home Health Inc., Lakeland Health Care Services Inc., Lexmark Health Care LLC, Med Rite Pharmacy Inc. and Medical Specialists of New Orleans, billed Medicare claiming that they provided home health services and durable medical equipment to Medicare beneficiaries, but the vast majority of these services and equipment were not medically necessary or not provided. 

The indictment further alleges that Morad and Okpalobi owned and directed operations at these companies.  Morad allegedly paid kickbacks to patient recruiters, including Temple and Oliver, to provide Medicare beneficiary numbers that were then used to bill Medicare.  To conceal these kickbacks, Morad allegedly laundered Medicare money through a separate company he owned. 

Court documents also allege that Okpalobi instructed doctors, including Smith, Berkowitz, Murray, Luccioni, and Darby, to falsely certify that beneficiaries were qualified for home health services, and to prescribe durable medical equipment that was not medically needed.  These false certifications and prescriptions were then used to bill Medicare for the unnecessary services and equipment. 

Murthil and Dannel were office managers who allegedly oversaw daily operations at the home health companies.  White allegedly performed accounting services for these companies, and helped conceal the scheme by fabricating false tax and employee records.  Breaux was a registered nurse who is alleged to have falsely certified that home health clients were homebound, and that she had provided home health care services when she had not.

From 2007 through 2014, the companies allegedly involved in the scheme submitted more than $56 million in claims to Medicare, the majority of which are allegedly fraudulent.  Medicare paid approximately $50.7 million on those claims.

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

The 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 the U.S. Attorney’s Office for the Eastern District of Louisiana.  The case is being prosecuted by Trial Attorney William G. Kanellis of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Patrice Harris Sullivan of the Eastern District of Louisiana.

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 Team (HEAT), go to: www.stopmedicarefraud.gov.

# # #

The owner of a home health services company was sentenced to serve five years in prison for his leading role in a conspiracy to structure over $1.8 million in bank withdrawals to conceal a $4.5 million healthcare fraud scheme.

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

On April 16, 2014, Felix Maduka, 59, of Richmond, Texas, pleaded guilty to conspiring to structure more than $1.8 million in cash withdrawals and eight counts of structuring cash withdrawals from bank accounts where his company, Joystar Home Health Services LLC, received fraudulent payments from Medicare.  His wife and co-defendant, Stella Maduka, 49, was Joystar’s Director of Nursing.  In addition to the structuring charges, she also pleaded guilty to one count of healthcare fraud and one count of making false statements.

According court documents, Felix and Stella Maduka withdrew just under $10,000 in cash from Joystar bank accounts on nearly 300 occasions to avoid the bank’s mandatory reporting requirements of cash transactions involving more than $10,000 in cash.  They engaged in this structuring scheme to conceal the monies used to pay illegal kickbacks to recruiters in exchange for referring Medicare beneficiaries to Joystar and to doctors for authorizing home health services that were not medically necessary nor provided.  To further conceal the scheme, Felix and Stella Maduka fabricated patient records to support the fraudulent Medicare billing.

The case is being investigated by HHS-OIG, IRS-CI, RRB-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 the U.S. Attorney’s Office for the Southern District Texas.  The case is being prosecuted by Trial Attorney William S.W. Chang of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Kristine Rollinson of the Southern District Texas.

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 Team (HEAT), go to: www.stopmedicarefraud.gov.

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The Justice Department today announced that it has reached an agreement with the city of North Las Vegas under the Americans with Disabilities Act (ADA).  The agreement, filed as a consent decree along with a complaint in the U.S. District Court for the District of Nevada, resolves allegations that the city violated the ADA by failing to accommodate, and forcing out, a Parks Department maintenance crew leader with monocular vision.  The Justice Department alleged that the city revoked the employee’s long standing reasonable accommodation, which exempted him from obtaining a commercial driver’s license, even though the employee was able to perform the essential functions of the job with the reasonable accommodation and the accommodation did not impose an undue hardship on the city.

“Revoking a reasonable accommodation is a clear violation of the ADA, absent undue hardship on the employer,” said Acting Assistant Attorney General Molly Moran for the Civil Rights Division.  “The Justice Department is committed to knocking down barriers to equal employment opportunities for people with disabilities.  We applaud the city for working cooperatively with the department to promptly resolve this matter.”

The consent decree, which must be approved by the court, requires the city to pay the employee $38,229 for monetary and compensatory damages, provide training to city staff on Title I of the ADA, and file periodic reports with the department.

Title I of the ADA prohibits employers from discriminating against individuals on the basis of disability in various aspects of employment.  These prohibitions include using qualification standards that screen out individuals with disabilities and that are not job-related and consistent with business necessity.  The ADA requires employers to provide reasonable accommodations to qualified individuals with disabilities, where such an accommodation does not pose an undue hardship.

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

The Department of Justice today filed a statement of interest with the Supreme Court of the State of New York, Albany County in Hurrell-Harring v. State of New York.  In this class action litigation, the plaintiffs allege that, due to systemic failures in four New York counties, indigent criminal defendants have been constructively denied the right to counsel. 

In Hurrell-Harring the plaintiffs allege that a lack of funding for indigent defense deprives public defenders of the time or resources to prepare cases or meaningfully represent their clients and amounts to the denial of counsel in violation of Gideon v. Wainwright and the Sixth Amendment.  In its statement of interest, the department advised the court that under resourcing public defense may force even otherwise competent and well-intentioned public defenders into a position where they are, in effect, a lawyer in name only.  The statement of interest added that if the court finds that the plaintiffs have been constructively denied the right to counsel on a systemic basis, the court has broad injunctive authority to remedy those constitutional violations. 

“To truly guarantee adequate representation for low-income defendants, we must ensure that public defenders’ caseloads allow them to do an effective job,” said Attorney General Eric Holder.  “The Department of Justice is committed to addressing the inequalities that unfold every day in America’s courtrooms, and to fulfilling the Supreme Court’s historic decision in Gideon v. Wainwright.  America’s indigent defense systems exist in a state of crisis, and over 50 years after it was made, the promise of Gideon is not being met.”

“This case is emblematic of a national crisis in indigent criminal defense,” said Acting Assistant Attorney General Molly Moran of the Civil Rights Division.  “The right to counsel is one of the core guarantees of the Bill of Rights, and yet, as countless cases and studies show, indigent defense systems across the country are facing significant challenges in meeting their Sixth Amendment obligations.”

The purpose of the statement of interest is to provide the court with a framework to assess the plaintiffs’ claim of constructive denial of counsel.  As the department explained in the statement of interest, “An analysis of Gideon cases informs the United States’ position that constructive denial of counsel may occur when: (1) on a systemic basis, counsel for indigent defendants face severe structural limitations, such as a lack of resources, high workloads, and understaffing of public defender offices; and/or (2) indigent defenders are unable or are significantly compromised in their ability to provide the traditional markers of representation for their clients, such as timely and confidential consultation, appropriate investigation, and meaningful adversarial testing of the prosecution’s case.”

The Hurrell-Harring case was filed in 2007 and brought by former indigent defendants who faced criminal charges in five New York counties.  The plaintiffs seek systemic reform to prevent future violations of the right to counsel. The state court trial is scheduled to begin on Oct. 7, 2014.

A third Colombian man extradited to the Eastern District of Virginia pleaded guilty today for his involvement in the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson in Bogotá, Colombia, on June 20, 2013.

Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente of the Eastern District of Virginia, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, DEA Administrator Michele M. Leonhart and Director Bill A. Miller of the U.S. Department of State’s Diplomatic Security Service (DSS) made the announcement.

“This development marks yet another significant step forward in our effort to achieve justice for Special Agent Terry Watson, who gave his life in the service of his country,” said Attorney General Eric Holder. “This nation owes Special Agent Watson, and all of our fallen law enforcement personnel, a debt of gratitude we can never hope to repay. But we will never rest in our commitment to hold accountable all those responsible for his murder. That effort will continue. And his example will continue to guide and inspire us.”

Héctor Leonardo López, 34, pleaded guilty before U.S. District Judge Gerald Bruce Lee of the Eastern District of Virginia to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person.  Sentencing is scheduled for Dec. 12, 2014.

In a statement of facts filed with the plea agreement, López admitted that he and his conspirators agreed to conduct a “paseo milionario” or “millionaire’s ride” in which victims who were perceived as wealthy were lured into taxi cabs, kidnapped and then robbed.  López admitted that he was part of the group of individuals that targeted and picked up Special Agent Watson, outside of a restaurant in Bogotá.  Soon after, two conspirators entered the taxi carrying Special Agent Watson, and one used a stun gun to shock Special Agent Watson and the other stabbed him.  Special Agent Watson was able to escape from the taxi, but he later collapsed and died from his injuries.  López admitted that he drove the second taxi, which carried the two individuals who attacked Special Agent Watson.  López also admitted that part of his role in the robbery crew was to receive stolen bank cards and use them at various banks to take out money.

Six other defendants were charged in this case for their alleged involvement in the murder of Special Agent Watson.  Gerardo Figueroa Sepúlveda, 39; Omar Fabián Valdes Gualtero, 27; and Édgar Javier Bello Murillo, 27, are each charged by indictment with second degree murder, kidnapping and conspiracy to kidnap.  Wilson Daniel Peralta Bocachica, 31, was charged for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson. 

On Sept. 3, 2014, Julio Estiven Gracia Ramírez, 31, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person.  Sentencing for Gracia Ramírez is scheduled for Dec. 5, 2014.  On Sept. 17, 2014, Andrés Álvaro Oviedo García, 22, pleaded guilty to aiding and abetting the murder of an internationally protected person and conspiracy to kidnap an internationally protected person.  Sentencing is scheduled for Dec. 12, 2014.

Trial for the remaining defendants is set for Jan. 12, 2015.

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

This case was investigated by the FBI, DEA and DSS, in close cooperation with Colombian authorities and with assistance from Interpol and the Justice Department’s Office of International Affairs.  The case is being prosecuted by Special Counsel Stacey Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary of the U.S. Attorney’s Office for the Eastern District of Virginia.

The Department of Justice gratefully acknowledges the Colombian Attorney General’s Office, Colombian National Police, Colombian Directorate of Criminal Investigation and Interpol (DIJIN), DIJIN Special Investigative Unit, Bogotá Metropolitan Police, Bogotá Police Intelligence Body (CIPOL) Unit and Colombian Technical Investigation Team for their extraordinary efforts, support and professionalism in responding to this incident.

# # #

Pharmaceutical company Shire Pharmaceuticals LLC will pay $56.5 million to resolve civil allegations that it violated the False Claims Act as a result of its marketing and promotion of several drugs, the Justice Department announced today.  Shire, located in Wayne, Pennsylvania, manufactures and sells pharmaceuticals, including Adderall XR, Vyvanse and Daytrana, which are approved for the treatment of attention deficit hyperactivity disorder (ADHD), and Pentasa and Lialda, which are approved for the treatment of mild to moderate active ulcerative colitis.

“Patients and health care providers must receive accurate information about available prescription drugs so that they can make safe and informed treatment decisions,” said Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division.  “The Department of Justice will be vigilant to hold accountable pharmaceutical companies that provide misleading information regarding a drug’s safety or efficacy.”

The settlement resolves allegations that, between January 2004 and December 2007, Shire promoted Adderall XR for certain uses despite a lack of clinical data to support such claims and overstated the efficacy of Adderall XR, particularly relative to other ADHD drugs.  Among the allegedly unsupported claims was that Adderall XR was clinically superior to other ADHD drugs because it would “normalize” its recipients, rendering them indistinguishable from their non-ADHD peers.  Shire allegedly stated that its competitors’ products could not achieve similar results, which the government contended was not shown in the clinical data that Shire collected.  Shire also allegedly marketed Adderall XR based on unsupported claims that Adderall XR would prevent poor academic performance, loss of employment, criminal behavior, traffic accidents and sexually transmitted disease.  In addition, Shire allegedly promoted Adderall XR for the treatment of conduct disorder without approval from the Food and Drug Administration (FDA).

The settlement further resolves allegations that, between February 2007 and September 2010, Shire sales representatives and other agents allegedly made false and misleading statements about the efficacy and “abuseability” of Vyvanse to state Medicaid formulary committees and to individual physicians.  For example, one Shire medical science liaison allegedly told a state formulary board that Vyvanse “provides less abuse liability” than “every other long-acting release mechanism” on the market.  However, the government contended that no study Shire conducted had concluded that Vyvanse was not abuseable, and, as an amphetamine product, the Vyvanse label included an FDA-mandated black box warning for its potential for misuse and abuse.  Shire also made allegedly unsupported claims that treatment with Vyvanse would prevent car accidents, divorce, arrests and unemployment. 

Additionally, the settlement resolves allegations that from April 2006 to September 2010, Shire representatives improperly marketed Daytrana, administered through a patch, as less abuseable than traditional, pill-based medications, and, for part of this period, improperly made phone calls and drafted letters to state Medicaid authorities to assist physicians with the prior authorization process for prescriptions to induce these physicians to prescribe Daytrana and Vyvanse. 

Finally, the settlement resolves allegations that between January 2006 and June 2010, Shire sales representatives promoted Lialda and Pentasa for off-label uses not approved by the FDA and not covered by federal healthcare programs.  Specifically, the government alleged that Shire promoted Lialda off-label for the prevention of colorectal cancer.

"Marketing efforts that influence a doctor’s independent judgment can undermine the doctor-patient relationship and short-change the patient,” said U.S. Attorney Zane David Memeger for the Eastern District of Pennsylvania.  “Where children’s medication is concerned, it can interfere with a parent’s right to clear information regarding the risks to the safety and health of their child.  Shire cooperated throughout this investigation and, in advance of this settlement, began to correct its marketing activities.”

"This settlement represents another important step in our fight against fraud in federally-funded healthcare programs such as Medicare and Medicaid,” said U.S. Attorney Zachary T. Fardon for the Northern District of Illinois.  “The Shire settlement returns funds not only to the U.S. government but also to the individual states whose health care programs rely in part on the efficacy of jointly-funded programs like Medicaid.  We will continue doing everything in our power to combat fraud and ensure the integrity of our healthcare programs.”

As a result of today’s $56.5 million settlement, the federal government will receive $35,713,965, and state Medicaid programs will receive $20,786,034.  The Medicaid program is funded jointly by the federal and state governments.  In addition, Shire has separately reached agreement with the U.S. Department of Health and Human Services-Office of the Inspector General (HHS-OIG) on a corporate integrity agreement, which will address the company’s future marketing efforts.

“Our agency will continue to hold drug companies responsible for seeking to boost profits using false and misleading claims about products, such as the powerful medications prescribed to children and other drugs at issue in this settlement,” said Chief Counsel to the HHS Inspector General Gregory E. Demske.  “We entered into a corporate integrity agreement with Shire that requires comprehensive compliance safeguards, oversight of Shire promotional activities, and compliance certifications from Shire’s board of directors and management.”

The allegations resolved by the settlement arose from a lawsuit filed by Dr. Gerardo Torres, a former Shire executive, and a separate lawsuit filed by Anita Hsieh, Kara Harris and Ian Clark, former Shire sales representatives.  The lawsuits were filed under the False Claims Act’s whistleblower provisions, which permit private parties to sue for false claims on behalf of the government and to share in any recovery.  Torres will receive $5.9 million.   

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 HHS.  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 $22.4 billion through False Claims Act cases, with more than $14.2 billion of that amount recovered in cases involving fraud against federal health care programs.

This case was a cooperative effort among the U.S. Attorneys’ Offices for the Eastern District of Pennsylvania and the Northern District of Illinois, the Justice Department’s Civil Division, Office of the Inspector General for the Office of Personnel Management, HHS-OIG and the FDA.  The HHS Office of the General Counsel-CMS Division and the National Association of Medicaid Fraud Control Units also provided assistance. 

The lawsuits are captioned United States ex rel. Torres v. Shire Specialty Pharmaceuticals, et al., No. 08-4795 (E.D. Pa.) and United States ex rel. Hsieh, Harris, and Clark v. Shire PLC, et al., No. 09-6994 (N.D. Ill.).  The claims resolved by the settlement are allegations only; there has been no determination of liability.

Joseph Arigo, 47, a sergeant with the Fulton Police Department in Fulton, New York, pleaded guilty today in federal court to one count of deprivation of rights under color of law for beating a handcuffed man inside the Fulton police station.      

According to court documents filed in connection with his guilty plea, Arigo was sitting at the sergeant’s desk on June 28, 2014, when a handcuffed man, G.B., was brought into the police station.  G.B. was yelling, but was not physically threatening any officers or himself.  Arigo pulled the video camera out of the wall to stop it from recording, walked into the room where G.B. was being held, shoved his head into the bench, and punched him in the head multiple times.  G.B. suffered cuts and bruising, lost consciousness, and required seven stitches. After the incident, Arigo lied to his supervisors as well as in two official reports in an attempt to conceal his actions.

Sentencing is set for Jan. 23, 2015, and Arigo faces a maximum sentence of 10 years in prison. 

This case was investigated by the Syracuse Resident Agency of the Albany Division of the FBI and is being prosecuted by Trial Attorney Dana Mulhauser of the Civil Rights Division of the Department of Justice.

The United States filed eight civil injunction suits in Florida to bar Walner G. Gachette, the founder of Orlando-based tax preparation company LBS Tax Services, seven LBS Tax Services franchisees, and three LBS Tax Services managers from owning, operating, or franchising a tax return preparation business and preparing tax returns for others, the Justice Department announced today.

The seven franchisees and three managers sued are Douglas Mesadieu, Jean R. Demesmin, Kerny Pierre-Louis, Demetrius Scott, Jason Stinson, Wilfrid Antoine, Jacqueline Nunez, Tonya Chambers, Jehoakim Victor and Lauri Rodriguez.

According to the complaints, in 2013, LBS Tax Services operated at least 239 stores (192 owned by the named defendants) in Florida, North Carolina, South Carolina, Georgia, Texas, Tennessee, Alabama and Mississippi. The government also asserts that LBS Tax Services prepared more than 55,000 federal income tax returns in 2013.  The complaints allege that, in 2014, some of the defendants’ LBS Tax Services stores began doing business using the names Milestone Tax Services, Tax Giant, AWA Tax, Tax Master Xpress, BPTS Tax Services and Nation Tax Services.

“The public should be able to rely on federal income tax preparers to prepare honest and complete returns,” said Deputy Assistant Attorney General David A. Hubbert for the Justice Department’s Tax Division.  “The Internal Revenue Service and the Department of Justice have made it a priority to sue and enjoin tax return preparers who prepare fraudulent returns.”

The suits allege that the defendants target primarily low-income customers with deceptive and misleading advertisements, prepared and filed fraudulent tax returns to falsely increase their customers’ refunds and profit through unconscionable and exorbitant fees — all at the expense of their customers and the U.S. Treasury.  One case highlighted in the complaints erroneously suggests that potential customers will receive a tax refund of more than $3,000 “per child.”

            According to the complaints, the defendants directed return preparers for LBS Tax Services to, among other things:

            •           Falsely claim or increase the amount of the Earned Income Tax Credit;

            •           Claim improper filing status (i.e., head of household for married individuals);

            •           Fabricate businesses and related business income and expenses;

            •           Fabricate Schedule A deductions, particularly for unreimbursed employee business expenses; and

            •           Charge deceptive and unconscionable fees.

Among the many examples cited in the eight complaints are:

A customer in Tampa, Florida, was allegedly waiting at a bus station when he was approached by an LBS Tax Services employee, who offered to drive the customer to an LBS Tax Services store to have his tax return prepared.  According to the complaint, despite knowing that the customer did not have a car, LBS Tax Services reported on the customer’s tax return that he had driven his personal vehicle 30,256 miles for business purposes, resulting in a bogus $17,589 unreimbursed employee business expense claimed on the customer’s tax return.

A customer was allegedly approached at a flea market by an LBS Tax Services preparer who told her that she had to file a tax return, showed her a badge, and said that he was a police officer and would not do anything that was wrong.  That preparer allegedly prepared the customer’s tax return, on which the preparer falsely claimed that the customer had more than $10,000 in income in order to claim an Earned Income Tax Credit and bogus refund.

Another customer in Houston, Texas, won $250,000 in the lottery in 2012.  The LBS Tax Services preparer allegedly claimed several phony deductions to offset that income, including $30,141 in charitable contributions and $10,279 in unreimbursed employee business expenses. The customer’s tax return allegedly claimed a bogus refund in the amount of $8,247.

On the tax return of one Jacksonville, Florida customer, LBS Tax Services allegedly reported that the customer had a mechanic business through which he earned income, when he did not.  Allegedly, the customer did not work in 2012, and when he applied for social security disability benefits in 2013, he was denied because based on the income that LBS Tax Services falsely reported on his tax return, he had shown an ability to work.

"Tax return preparers play an important and integral role in our tax system," said IRS Deputy Commissioner for Services and Enforcement John M. Dalrymple. "The IRS and Justice Department are committed to protecting taxpayers and pursuing return preparers engaged in fraud. We encourage taxpayers to carefully select their tax preparer and be careful about misleading promises about refunds."

According to the complaints, the IRS estimates that the tax loss from the defendants’ stores for the 2012 tax year alone is in the tens of millions of dollars.  The complaints also requests that the court order the defendants to disgorge the fees that they obtained through their alleged fraudulent tax return preparation.

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.

Antoine Filed Complaint

Demesmin Filed Complaint

Gachette Filed Complaint

Mesadieu Filed Complaint

Nunez Filed Complaint

Pierre Louis Filed Complaint

Scott Filed Complaint

Stinson Filed Complaint

The United States has asked a federal court in Philadelphia to permanently bar Denise Miller Almanza and her business, Denise’s Centro de Servicios, PC, from preparing federal tax returns for others, the Justice Department announced today.  According to the complaint, Almanza inappropriately reduces her customers’ income or wrongly claims tax credits on their returns, causing the customers to receive tax refunds or increased refund amounts to which they are not entitled.  Almanza and her business have prepared more than 14,000 federal tax returns since 2010, according to the complaint.

The suit, filed in the U.S. District Court for the Eastern District of Pennsylvania, alleges that Almanza improperly claims the additional child tax credit on customers’ income tax returns, which allow her customers to receive, on average, over $2,900 in improper benefits per tax return.  In total, the complaint alleges that Almanza’s activities over the last four years have potentially cost the U.S. Treasury millions of dollars in lost 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 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. Denise Miller Almanza
Complaint

WASHINGTON—Interpol Washington today announced the formation of a dedicated Interpol Foreign Terrorist Fighter (FTF) program in partnership with the National Security Council (NSC), the Department of Justice (DOJ) and the Department of Homeland Security (DHS).

The program leverages the unique resources Interpol utilizes to combat transnational crime, including its secure, encrypted communications system, its criminal and analytical databases and its system of advisory notices.  Through this program, Interpol will provide an unparalleled mechanism for addressing the threat from FTFs by helping to monitor and deter their international movement and interdict them at strategic entry points, where possible.  Composed of the National Central Bureaus (NCB) of more than 30 member countries, the program was established in response to the need for a forum for sharing intelligence and best practices on a global scale to combat the threat of foreign terrorist fighters traveling to Iraq and Syria.

“Interpol provides critical leadership in advancing the Justice Department’s efforts to combat terrorism and ensure the safety of all Americans – offering cutting-edge resources, a structure for international cooperation, and strategic tools like Red, Blue and Green Notices for tracing, targeting and apprehending terror suspects,” said Attorney General Eric Holder.  “In a world that is increasingly interdependent and interconnected, Interpol helps to defend against a range of evolving challenges by disseminating information, combating crime, and identifying potential threats.  And particularly today, with the emergence of groups like ISIL, and the knowledge that some Americans are attempting to travel to countries like Syria and Iraq to take part in ongoing conflicts, Interpol – as the world’s largest international police organization – has a vital role to play in safeguarding our homeland and protecting the American people.”

“The threat posed by foreign fighters is one that is persistent and requires the full cooperation and resources of the international law enforcement community to effectively combat," said Secretary of Homeland Security Jeh Johnson.  “We are already working closely with European and other governments to build better information sharing, and we will continue to leverage our partnership with the Interpol, Department of Justice and other international partners to make enhanced and concerted efforts to track foreign fighters who come from or seek to enter the United States.”

The program currently supports a working group that includes Australia, Belgium, Canada, France, New Zealand, Spain, Switzerland, the Netherlands, Turkey, the United Kingdom and the United States, and an international symposia—a multinational database populated with information contributed by and accessible to participating member countries.  The criminal intelligence information contained in the database includes detailed identity particulars that are especially valuable to law enforcement and border control authorities in making determinations of the terrorist threat posed by subjects located in, or attempting to enter, their respective jurisdictions.

Interpol Washington played a critical role in the program’s development and is taking the lead on implementing it in the United States by continuing to strategically use Interpol Red Notices to target and apprehend terrorists for prosecution in U.S. courts and Interpol Blue Notices to trace and locate terrorists and others suspected of terrorism-related activity, including those not charged with a particular offense.  Further, Interpol Washington is extensively utilizing Interpol Green Notices to publish information about hundreds of foreign nationals previously identified in both Iraq and Afghanistan and involved in terrorist activities. Interpol also offers countries the ability to use its information sharing system to send targeted messages to key partners on terrorist subjects.

“Interpol Washington continues to champion international police cooperation by leading U.S. efforts in the Interpol Foreign Terrorist Fighter program,” said Interpol Washington Director Shawn A. Bray.  “Interpol provides a unique set of information sharing solutions for addressing this growing threat.  By applying these solutions via its secure global communications network, Interpol member countries send a strong, unified message of engagement against FTFs and those who support them.”

Regional meetings, meetings of the heads of National Central Bureaus and the annual Interpol General Assembly represent additional opportunities for strengthening the FTF program.  Finally, Interpol works closely with the United Nations, particularly the Sanctions Committee of the UN Security Council, to publish Special Notices on individuals listed by the Sanctions Committee as belonging to or associated with al Qaeda and the Taliban.

Interpol Washington, a component of the DOJ and co-managed by the DHS, facilitates the sharing of criminal justice, humanitarian and public safety information among Interpol’s 190 member countries and more than 18,000 local, state, federal and tribal law enforcement agencies in the United States.  In coordinating international investigative efforts, Interpol Washington works to enhance the safety and security of our nation.

For more information about Interpol Washington, visit: www.justice.gov/interpol-washington.

###

Interpol Washington today announced the formation of a dedicated Interpol Foreign Terrorist Fighter (FTF) program in partnership with the National Security Council (NSC), the Department of Justice (DOJ) and the Department of Homeland Security (DHS).

The program leverages the unique resources Interpol utilizes to combat transnational crime, including its secure, encrypted communications system, its criminal and analytical databases and its system of advisory notices.  Through this program, Interpol will provide an unparalleled mechanism for addressing the threat from FTFs by helping to monitor and deter their international movement and interdict them at strategic entry points, where possible.  Composed of the National Central Bureaus (NCB) of more than 30 member countries, the program was established in response to the need for a forum for sharing intelligence and best practices on a global scale to combat the threat of foreign terrorist fighters traveling to Iraq and Syria.

“Interpol provides critical leadership in advancing the Justice Department’s efforts to combat terrorism and ensure the safety of all Americans – offering cutting-edge resources, a structure for international cooperation, and strategic tools like Red, Blue and Green Notices for tracing, targeting and apprehending terror suspects,” said Attorney General Eric Holder.  “In a world that is increasingly interdependent and interconnected, Interpol helps to defend against a range of evolving challenges by disseminating information, combating crime, and identifying potential threats.  And particularly today, with the emergence of groups like ISIL, and the knowledge that some Americans are attempting to travel to countries like Syria and Iraq to take part in ongoing conflicts, Interpol – as the world’s largest international police organization – has a vital role to play in safeguarding our homeland and protecting the American people.”

“The threat posed by foreign fighters is one that is persistent and requires the full cooperation and resources of the international law enforcement community to effectively combat," said Secretary of Homeland Security Jeh Johnson.  “We are already working closely with European and other governments to build better information sharing, and we will continue to leverage our partnership with the Interpol, Department of Justice and other international partners to make enhanced and concerted efforts to track foreign fighters who come from or seek to enter the United States.”

The program currently supports a working group that includes Australia, Belgium, Canada, France, New Zealand, Spain, Switzerland, the Netherlands, Turkey, the United Kingdom and the United States, and an international symposia—a multinational database populated with information contributed by and accessible to participating member countries.  The criminal intelligence information contained in the database includes detailed identity particulars that are especially valuable to law enforcement and border control authorities in making determinations of the terrorist threat posed by subjects located in, or attempting to enter, their respective jurisdictions.

Interpol Washington played a critical role in the program’s development and is taking the lead on implementing it in the United States by continuing to strategically use Interpol Red Notices to target and apprehend terrorists for prosecution in U.S. courts and Interpol Blue Notices to trace and locate terrorists and others suspected of terrorism-related activity, including those not charged with a particular offense.  Further, Interpol Washington is extensively utilizing Interpol Green Notices to publish information about hundreds of foreign nationals previously identified in both Iraq and Afghanistan and involved in terrorist activities. Interpol also offers countries the ability to use its information sharing system to send targeted messages to key partners on terrorist subjects.

“Interpol Washington continues to champion international police cooperation by leading U.S. efforts in the Interpol Foreign Terrorist Fighter program,” said Interpol Washington Director Shawn A. Bray.  “Interpol provides a unique set of information sharing solutions for addressing this growing threat.  By applying these solutions via its secure global communications network, Interpol member countries send a strong, unified message of engagement against FTFs and those who support them.”  

Regional meetings, meetings of the heads of National Central Bureaus and the annual Interpol General Assembly represent additional opportunities for strengthening the FTF program.  Finally, Interpol works closely with the United Nations, particularly the Sanctions Committee of the UN Security Council, to publish Special Notices on individuals listed by the Sanctions Committee as belonging to or associated with al Qaeda and the Taliban.

Interpol Washington, a component of the DOJ and co-managed by the DHS, facilitates the sharing of criminal justice, humanitarian and public safety information among Interpol’s 190 member countries and more than 18,000 local, state, federal and tribal law enforcement agencies in the United States.  In coordinating international investigative efforts, Interpol Washington works to enhance the safety and security of our nation.

For more information about Interpol Washington, visit: www.justice.gove/interpol-washington.