District Not Recorded

Two Long Beach, California, men pleaded guilty today to conspiracy charges arising from a sex trafficking scheme that exploited adult women for prostitution. Roshaun Nakia Porter, 39, and Marquis Monte Horn, 35, both pleaded guilty before Judge Josephine L. Staton in the U.S. District Court for the Central District of California to conspiring to engage in sex trafficking by force, fraud and coercion. Sentencing has been set for Oct. 24, 2014, and each defendant faces a sentence of up to life imprisonment.

According to documents filed in court, from October 2009 through April 2012, Porter and Horn conspired together and with others to recruit, entice, harbor, transport and provide women to engage in commercial sex acts, using various coercive means to compel the women to engage in prostitution for the defendants’ financial benefit. Porter and Horn’s scheme of force, fraud and coercion included false and deceptive internet advertisements they used to lure the victims into romantic relationships with the defendants, and psychological manipulation and control to cause the victims to engage in commercial sex acts for the defendants’ financial benefit.

“The Department of Justice is committed to the vigorous prosecution of defendants who prey upon and exploit vulnerable individuals for their own financial gain,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “We will continue to pursue justice on behalf of victims of human trafficking to restore their rights and dignity and to hold their traffickers accountable.”

“Human trafficking is a horrific crime that causes significant damage to victims who are often forced to commit unspeakable acts,” said U.S. Attorney André Birotte Jr. for the Central District of California. “This scheme to control and manipulate victims forced to work in the sex trade has come to an end. With today’s guilty pleas, I hope that healing for the victims can begin.”

“Sex trafficking is not something that only happens outside of the United States, but victimizes Americans in our own backyards,” said Assistant Director of the FBI Los Angeles Field Office Bill Lewis. “In this case, the defendants defrauded victims and forced them to work as sex slaves under threat to themselves and their families. I hope this conviction reminds vigilant members of the public to report the signs of human and sex trafficking to law enforcement when they encounter it.”

This matter was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Sandy Leal of the U.S. Attorney’s Office for the Central District of California and Trial Attorney Daniel H. Weiss of the Civil Rights Division’s Human Trafficking Prosecution Unit.

A south Florida man was sentenced today in federal court in Tampa, Florida, to serve 48 months in prison in connection with a $10.5 million Medicare fraud scheme involving physical and occupational therapy services.

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

Luis Alberto Garcia Perojo (Garcia), 43, previously pleaded guilty to an information charging him with conspiracy to commit health care fraud. In addition to his prison term, he was sentenced to serve three years of supervised release and ordered to pay $6,248,056 in restitution, jointly and severally with his co-conspirators.

According to documents filed in the case, Garcia conspired with others to execute a health care fraud scheme through Renew Therapy Center of Port St. Lucie LLC (Renew Therapy), a comprehensive outpatient rehabilitation facility that he helped operate. From November 2007 through August 2009, Renew Therapy submitted approximately $10,549,361 in fraudulent claims for reimbursement to Medicare for therapy services that were not legitimately prescribed and not legitimately provided to Medicare beneficiaries. As a result of those fraudulent claims, Medicare deposited approximately $6,248,056 into a Renew Therapy bank account. The fraud proceeds in that account were subsequently disbursed to various entities, including $1,847,222 to Ariguanabo Investment Group Inc. and IRE Diagnostic Center Inc. Garcia was President of Ariguanabo Investment Group and had authority over bank accounts for Ariguanabo Investment Group and IRE Diagnostic Center, both of which were shell companies. Garcia and others used this money from Renew Therapy for, among other purposes, paying kickbacks to obtain Medicare beneficiary identifying information that was used in Renew Therapy’s fraudulent reimbursement claims.

This case is being investigated by HHS-OIG and the FBI and was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida. This case is being prosecuted by Trial Attorney Christopher J. Hunter of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 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 Justice Department today filed a status report with the United States District Court for the Western District of Pennsylvania updating the court on the progress in disrupting the Gameover Zeus botnet and the malicious software known as Cryptolocker. The disruption began in late May, when the Justice Department implemented a series of Court-authorized measures to neutralize Gameover Zeus and Cryptolocker - two of the most sophisticated and destructive forms of malicious software in existence.

In the status report, the Justice Department informed the Court that the technical and legal measures undertaken to disrupt Gameover Zeus and Cryptolocker have proven successful, and that significant progress has been made in remediating computers infected with Gameover Zeus.

The Justice Department reported that all or nearly all of the active computers infected with Gameover Zeus have been liberated from the criminals’ control and are now communicating exclusively with the substitute server established pursuant to court order. The Justice Department also reported that traffic data from the substitute server shows that remediation efforts by internet service providers and victims have reduced the number of computers infected with Gameover Zeus by 31 percent since the disruption commenced.

The Justice Department also reported that Cryptolocker has been neutralized by the disruption and cannot communicate with the infrastructure used to control the malicious software. As a result, Cryptolocker is effectively non-functional and unable to encrypt newly infected computers.

Computer users who believe they may be infected with Gameover Zeus are encouraged to visit the Department of Homeland Security’s dedicated Gameover Zeus webpage, which is located at www.us-cert.gov/gameoverzeus . Among other resources, the webpage includes links to tools from trusted vendors that can detect and remove the Gameover Zeus infection.

Related Materials:

Status Report
Motion for Default
Declaration in Support of Motion

Joshua Vandyk, a U.S. citizen, and Eric St-Cyr and Patrick Poulin, Canadian citizens, have each pleaded guilty to conspiring to launder monetary instruments, the Justice Department and Internal Revenue Service (IRS) announced today.

Patrick Poulin, 41, pleaded guilty today, Vandyk, 34, pleaded guilty on June 12, and St-Cyr, 50, pleaded guilty on June 27. The three defendants were indicted by a grand jury in the U.S. District Court for the Eastern District of Virginia on March 6, and the indictment was unsealed on March 12 after the defendants were arrested in Miami.

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

“This investigation highlights the Justice Department’s commitment to worldwide enforcement of federal laws designed to ensure that U.S. taxpayers fully disclose and report all foreign income and assets,” said Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division. “ The Tax Division is committed to using every tool available to hold these wrongdoers accountable .”

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

“Individuals who assist others in laundering criminal proceeds will be held accountable for their own criminal actions,” said IRS-Criminal Investigation Chief Richard Weber. “The defendants in this investigation had a blatant disrespect for the laws and laundered purported criminal proceeds through offshore structures to conceal the identity of the proceeds’ owners. IRS Criminal Investigation has ramped up its presence in the international arena and will aggressively pursue those who commit financial crimes.”

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

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

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

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

This fourth annual report to Congress describes efforts to collect and improve data on crime and justice in Indian country, as required by the Tribal Law and Order Act of 2010. The report details the number of tribal law enforcement agencies reporting crime data to the FBI’s Uniform Crime Reporting program. It describes BJS’s first National Survey of Tribal Court Systems which will collect data on tribal courts in the lower 48 states and Alaska covering 566 tribes. The survey will also cover the tribal Courts of Federal Regulations that handle some offenses and resolve disputes among tribal members. It also summarizes tribal eligibility for Edward Byrne Memorial Justice Assistance Grant awards and the total funds awarded to tribes.

http://ojp.gov/newsroom/pressreleases/2014/ojppr071014.pdf

Attorney General Eric Holder will deliver the keynote address at the Department of Justice’s 50th anniversary celebration of the Civil Rights Act of 1964. Secretary of Labor Thomas Perez, Secretary of Education Arne Duncan, Congresswoman Eleanor Holmes Norton, Deputy Attorney General James Cole, Associate Attorney General Tony West, Ambassador Andrew Young and Howard University Interim President Dr. Wayne A.I. Frederick will also deliver remarks at the event co-hosted by Howard University, on TUESDAY, JULY 15, 2014, at 10:00 a.m. EDT, to honor the civil rights movement and celebrate the groundbreaking act.

Journalist Charlayne Hunter-Gault will lead a panel discussion during the program on the impact of the Civil Rights Act of 1964 with Julian Bond, Howard University School of Law Associate Dean for Academic Affairs Lisa A. Crooms-Robinson, Joan Trumpauer Mulholland and Helen Zia.

The event will be live streamed at http://tinyurl.com/och84d4.

WHO: Attorney General Eric Holder, Secretary of Labor Thomas Perez, Secretary of Education Arne Duncan, Congresswoman Eleanor Holmes Norton, Deputy Attorney General James Cole, Associate Attorney General Tony West, Ambassador Andrew Young, Howard University Interim President Dr. Wayne A.I. Frederick, Howard University School of Law Associate Dean for Academic Affairs Lisa A. Crooms-Robinson, Julian Bond, Charlayne Hunter-Gault, Joan Trumpauer Mulholland, Helen Zia

WHAT: “The 50th Anniversary of the Civil Rights Act of 1964: Preserving Progress, Charting the Future”

WHEN: Tuesday, July 15, 2014

10:00 a.m. EDT

WHERE: Cramton Auditorium

Howard University

2455 6th St., N.W.

Washington, D.C.

OPEN PRESS

NOTE: All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Media interested in attending must RSVP to Erica Lacy at erica.lacy@usdoj.gov no later than 5:00 p.m. EDT, on Monday, July 14, 2014. Media may begin arriving at 8:30 a.m. EDT. All cameras must be pre-set and radios must be in place by 9:30 a.m. EDT. Pen and pad reporters must be in place by 9:50 a.m. EDT.Press inquiries regarding logistics should be directed to Erica Lacy at 202-514-2007 or at erica.lacy@usdoj.gov. Press inquiries regarding interviews with Howard University staff should be directed to Rachel Mann at 202-308-8903 or at rachel.mann@howard.edu.

Houston-based CCS (USA) Inc. and several of its operating subsidiaries will pay a $2.5 million civil penalty relating to operations at its Shreveport, Louisiana, industrial wastewater treatment plant, the Department of Justice, U.S. Environmental Protection Agency (EPA) and the state of Louisiana announced today. The settlement will resolve violations of the Clean Water Act, the Clean Air Act and the hazardous waste law known as RCRA.

CCS acquired the plant in 2006 through its purchase of two closely held companies owned by John Emerson Tuma. Tuma is now serving a five-year prison sentence for illegally discharging untreated and improperly treated wastewater from the plant into the Red River and Shreveport Publicly Owned Treatment Works (POTW). Inspections by EPA and the Louisiana Department of Environmental Quality following the sale led to the discovery of these violations and others, including unpermitted storage and improper handling of hazardous wastes and sludge, unpermitted stormwater discharges and noncompliance with Clean Air Act requirements for benzene-containing wastes.

After discovering these violations, CCS ceased wastewater treatment operations at the facility. Under EPA supervision, CCS removed the hazardous wastes illegally stored there.

The $2.5 million civil penalty will be split evenly between the United States and state of Louisiana.

The stipulation of settlement, filed in the U.S. District Court for the Western District of Louisiana, is subject to a 45-day public comment period and approval by the federal court.

Three Police of Puerto Rico (POPR) officers and two civilians were charged with robbery, firearms violations, drug conspiracy and civil rights violations for their involvement in a July 2012 robbery in Bayamon, Puerto Rico, and an additional POPR officer was charged with lying to federal agents.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Field Office made the announcement.

Jorge Fernandez-Aviles, 48, Fernando Reyes-Rojas, 42, and David Figueroa-Rodríguez, 32, were charged in an indictment returned yesterday in the District of Puerto Rico with one count of conspiracy to commit robbery and one count of conspiracy to commit civil rights violations; Fernandez and Reyes were also charged with one count of conspiracy to possess and distribute controlled substances and one count of firearms possession. Alexander Mir-Hernandez, 39, was charged with one count of false statements for lying to federal agents about his role and the roles of others in the July 2012 robbery.

Pedro Lopez-Torres, 35, and Luis Ramos-Figueroa, 38, were each charged by information on June 25, 2014, for their roles in the July 2012 robbery and other crimes. Lopez and Ramos pleaded guilty before U.S. District Judge José A. Fusté of the District of Puerto Rico on the same day. The charges against them were unsealed today.

At the time of the crimes charged, Jorge Fernandez-Aviles was a sergeant with POPR, Pedro Lopez-Torres, Luis Ramos-Figueroa and Alexander Mir-Hernandez were POPR officers, and Fernando Reyes-Rojas and David Figueroa-Rodríguez were civilians.

According to court documents, Reyes asked POPR Sergeant Fernandez and Officers Lopez and Ramos to participate in a robbery of a civilian. The officers agreed amongst themselves to participate. They further agreed that Officer Ramos would invite his cousin, Figueroa, to join them, and Officer Lopez would contact Officer Mir to borrow a marked patrol car to facilitate the planned robbery.

On July 14, 2012, Sergeant Fernandez, Officer Lopez, Officer Ramos and Figueroa went to the airport where they picked up a marked patrol car from Officer Mir. They drove the patrol car to meet Reyes and then went together to the location of the robbery. Sergeant Fernandez, Officer Lopez and Officer Ramos were dressed in dark colored, tactical police gear and armed with their POPR issued handguns. Figueroa and Reyes were also dressed in dark colored clothing, and Reyes appeared to have a handgun as well.

Upon entering the house through the garage, one or more of the officers identified themselves as police and falsely claimed they were executing a search warrant. They ordered several individuals in the garage to stand facing the wall and searched them for weapons. While Figueroa watched the occupants, Sergeant Fernandez, Officer Lopez, Officer Ramos and Reyes searched the property. They ultimately went to a shed in the backyard, where Reyes found cocaine and exclaimed, “Bingo!” At that point, they all departed in their respective vehicles. A few days later, Reyes met with Lopez and gave him money, which Reyes explained was a portion of the proceeds from the sale of the cocaine he took on the day of the robbery. Officer Lopez split the money with Sergeant Fernandez and Officer Ramos.

According to the indictment, Officer Mir was interviewed by Special Agents of the FBI and lied. Officer Mir falsely claimed that he did not recognize a photograph of Officer Lopez; that he had not met with Officer Lopez in more than six months; and that he did not provide the patrol car that was used to commit the July 2012 robbery.

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

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

Jose Rodrigo Arechiga-Gamboa, also known as “Chino Antrax,” was formally extradited to the United States by the Netherlands today.

Arechiga-Gamboa arrived at San Diego International airport about 2 p.m. under heavy security. He was flown in by the United States Marshals Service and the Drug Enforcement Administration from Amsterdam to San Diego. He was booked into federal custody and is scheduled to be arraigned on Friday, July 11, 2014, at 2:00 p.m. before U.S. Magistrate Judge Mitchell D. Dembin.

A federal grand jury in San Diego returned an indictment on December 20, 2013, charging Arechiga-Gamboa with Conspiracy to Distribute Controlled Substances Intended for Importation and Conspiracy to Import Controlled Substances. That same day, the Clerk of the Court issued a sealed warrant for his arrest.

Arechiga-Gamboa was arrested on December 30, 2013, at the Schiphol Airport in Amsterdam, Netherlands at the request of the United States. Arechiga-Gamboa was taken into custody at the airport traveling under a fraudulent name, “Norberto Sicairos-Garcia,” as he deplaned a KLM flight from Mexico City, Mexico to Amsterdam. The United States made formal requests for assistance from foreign authorities via a provisional arrest warrant and an Interpol Red Notice. The indictment was unsealed in San Diego a few days later, on January 3, 2014.

According to formal documents filed in support of Arechiga-Gamboa’s extradition from the Netherlands, Arechiga-Gamboa is alleged to have worked for the Sinaloa Cartel as a bodyguard and the leader of an enforcement group called “Los Antrax.” In this position, he allegedly assisted the Sinaloa Cartel by providing security for narcotics shipments and conducting enforcement operations.

According to extradition documents, Arechiga-Gamboa later rose to become one of the highest-level leaders of the Sinaloa Cartel. Despite traveling under a fraudulent Mexican passport by assuming the identity of a deceased individual, undergoing significant plastic surgery and attempting to alter his fingerprints, U.S. law enforcement officials were able to confirm Arechiga-Gamboa’s identity through forensic techniques. A Dutch Court considered the extradition request and, on May 28, 2014, ordered that Arechiga-Gamboa be extradited to the United States to stand trial on the narcotics trafficking offenses.

The Justice Department’s Criminal Division Office of International Affairs provided substantial assistance in the extradition of the defendant.

Investigating agencies include the U.S. Drug Enforcement Administration, Customs and Border Protection Office of Field Operations, Customs and Border Protection Office of Border Patrol, San Diego Law Enforcement Coordination Center, Homeland Security Investigations, Internal Revenue Service, and Interpol.

Four patient recruiters pleaded guilty in connection with a $20 million health care fraud scheme involving Trust Care Health Services Inc. (Trust Care), a defunct home health care company.

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 Ryan Lynch of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG), Office of Investigations Miami office made the announcement.

At a hearing today before U.S. District Judge Darrin P. Gayles of the Southern District of Florida, Estrella Perez, 57, and Solchys Perez, 34, both pleaded guilty to conspiracy to commit health care fraud, and Abigail Aguila, 40, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks. Sentencing for all three defendants is set for Sept. 18, 2014 in front of Judge Gayles. On June 17, 2014, another co-defendant, Monica Macias, 52, pleaded guilty to conspiracy to defraud the United States and receive health care kickbacks before U.S. Magistrate Judge Chris M. McAliley of the Southern District of Florida. Sentencing for Macias is set for Sept. 10, 2014 before Judge Gayles.

According to court documents, the defendants worked as patient recruiters for the owners and operators of Trust Care, a Miami home health care agency that purported to provide home health and physical therapy services to Medicare beneficiaries. Trust Care was operated for the purpose of billing the Medicare Program for, among other things, expensive physical therapy and home health care services that were not medically necessary and/or were not provided.

The defendants recruited patients for Trust Care and solicited and received kickbacks and bribes from the owners and operators of Trust Care in return for allowing the agency to bill the Medicare program on behalf of the recruited Medicare patients. These Medicare beneficiaries were billed for home health care and therapy services that were not medically necessary and/or were not provided.

Estrella Perez and Solchys Perez also paid kickbacks and bribes to co-conspirators in doctors’ offices and clinics in exchange for providing home health and therapy prescriptions, plans of care, and medical certifications for their recruited patients. Co-conspirators at Trust Care then used these prescriptions, plans of care and medical certifications to fraudulently bill the Medicare program for home health care services.

From approximately March 2007 through at least January 2010, Trust Care submitted more than $20 million in claims for home health services. Medicare paid Trust Care more than $15 million for these fraudulent claims.

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 A. Brendan Stewart and Anne P. McNamara of the Criminal Division’s Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 1,900 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 .

Deputy Attorney General James Cole made a return trip today to the U.S. Customs and Border Protection’s McAllen Station and processing facility to discuss steps the Department of Justice is taking to help address the influx of migrants crossing the southwest border.

Chief Patrol Agent Kevin Oaks and Deputy Chief Patrol Agent Raul Ortiz gave the Deputy Attorney General a tour of the facility and a briefing on the operations at McAllen. McAllen staff discussed the numbers of migrants that are arriving each day, including the numbers of unaccompanied children, families and adults; and the reasons, including violence in Central American countries, that many are giving for making the dangerous trek to the U.S. border. Cole also viewed the station’s processing facility, where migrants who have arrived in the past few days are housed.

During his talk with McAllen staff, Cole took the opportunity to highlight the Justice Department’s commitment to prioritizing adjudication of cases that fall into the following four groups: unaccompanied children who recently crossed the border; families who recently crossed the border and are held in detention; families who recently crossed the border but are on “alternatives to detention;” and other detained cases, including border crossers and significant public safety threats. He also emphasized that the department’s intention to reassign immigration judges in immigration courts around the country from their current dockets to hear the cases of individuals falling in these four groups.

Cole noted that the department is also seeking new funding for as many as 40 more immigration judges and to provide technical assistance to Central American countries in identifying and dismantling smuggling operations that take advantage of migrants seeking to enter the U.S. He also noted that the department has requested funding to provide technical assistance in combating transnational crime and the threat posed by criminal gangs. Cole reiterated that the department continues to focus on investigating and prosecuting smugglers who exploit and victimize vulnerable migrants, including children, in partnership with DHS and foreign governments. The discussion with McAllen staff also included a productive exchange of ideas on strategic ways to combat smuggling.

The Deputy Attorney General was impressed by the professionalism and dedication of the McAllen staff and thanked them for their service. Cole last visited the facility in November 2013.

WASHINGTON – Los Departamentos de Justicia y de Educación anunciaron hoy que han realizado un acuerdo amplio con el Sistema de Escuelas Públicas de la Parroquia Jefferson en Louisiana [Jefferson Parish Public School System (JPPSS)] para garantizar que todos los estudiantes puedan matricularse en las escuelas, independientemente del origen nacional o el estado inmigratorio propios o de sus padres o tutores.  El acuerdo también resuelve quejas acerca de las políticas y pràcticas del JPPSS de comunicación con los padres con conocimientos limitados del idioma inglés [Limited English Proficiency (LEP)] y la respuesta del JPPSS al presunto acoso de estudiantes hispanos debido a su origen nacional. 

“Este acuerdo garantizarà que en la Parroquia de Jefferson, las puertas de las escuelas y a las oportunidades estén abiertas a todos los niños, independientemente de su procedencia”, señaló la Secretaria de Justicia Auxiliar Interina Jocelyn Samuels de la División de Derechos Civiles del Departamento de Justicia.  “Felicitamos al distrito escolar por su cooperación para resolver este asunto y por su compromiso de asegurarse de que sus escuelas acojan y sean accesibles a todos los estudiantes y padres”.

“Aplaudimos a la Parroquia de Jefferson por asegurar que todos los estudiantes tengan acceso a sus escuelas públicas y que todos los padres, independientemente del idioma que hablen, cuenten con la información necesaria para que sus hijos puedan participar en y aprovechar plenamente sus programas educativos”, señaló la Secretaria Auxiliar Catherine E. Lhamon de la Oficina de Derechos Civiles del Departamento de Educación.  “Nos complacerà trabajar con el Departamento de Justicia y el distrito escolar en resolver estos temas cruciales asociados a los derechos civiles”.

Específicamente, bajo los términos de un acuerdo voluntario de tres años de duración, el JPPSS:

• realizarà una revisión de materiales y políticas de matriculación antes del inicio del año escolar 2014-2015 para asegurarse de no excluir o desalentar a estudiantes en lo que se refiere a su matriculación debido a su ciudadanía o situación inmigratoria;
   
• se asegurarà de que no se les pida a padres y alumnos que presenten un número de seguro social, una tarjeta de seguro social, un documento de identidad emitido por el estado u otro documento que requiera prueba de ciudadanía o estado inmigratorio para inscribirse o graduarse;
   
• capacitarà anualmente a todos los empleados responsables de la matriculación e inscripción de alumnos en las políticas revisadas;
   
• implementarà una política de traducción e interpretación para garantizar que los padres LEP reciban información esencial en un idioma que comprendan;
   
• capacitarà anualmente a todo el personal del JPPSS que interactúe con el público respecto de la comunicación efectiva con padres LEP y los tipos de información que deben ser objeto de traducción o interpretación;
   
• crearà un comité asesor de padres bilingüe para que realice recomendaciones al JPPSS acerca del programa educativo para aprendices del idioma inglés, políticas de matriculación e inscripción, acoso e intimidación y comunicaciones con padres LEP;
   
• revisarà sus políticas y pràcticas actuales para garantizar que todas las quejas de discriminación debido a raza, color u origen nacional, incluidos alegatos de acoso por los mismos motivos, se investiguen y resuelvan adecuadamente;
   
• brindarà capacitación sobre la diversidad, contra el acoso y contra la intimidación para docentes, personal y alumnos de la Escuela Secundaria West Jefferson,donde se produjeron los supuestos hechos de acoso e intimidación; y
   
• realizarà anualmente una encuesta de ambiente escolar en la Escuela Secundaria West Jefferson para evaluar la presencia de acoso e intimidación debido a origen nacional, raza y/o color.

Los departamentos controlaràn diligentemente la implementación del acuerdo para garantizar una implementación efectiva y en tiempo hàbil, así como la igualdad de oportunidades para todos los alumnos respecto de la participación en los programas educativos de JPPSS.

El 8 de mayo de 2014, los departamentos divulgaron documentos de orientación recién revisados, en los que se recordó a todos los distritos escolares su obligación bajo la ley federal de brindar oportunidades educativas igualitarias a todos los niños residentes en sus distritos, independientemente de su raza, color, origen nacional, ciudadanía o estado inmigratorio o el estado de sus padres.  Se encuentra una copia de la carta en el portal del Departamento de Educación.

El hacer valer el Título VI de la Ley de Derechos Civiles de 1964, el que prohíbe la discriminación debido a raza, color u origen nacional por destinatarios de asistencia financiera federal, es una de las principales prioridades de ambos departamentos.  El Departamento de Justicia también hace valer el Título IV de la Ley de Derechos Civiles de 1964, el que prohíbe la discriminación debido a raza, color, origen nacional, sexo y religión en escuelas públicas, y la Ley de Igualdad de Oportunidades Educativas de 1974, la que exige que las escuelas tomen las medidas necesarias para superar las barreras idiomàticas que impiden la participación igualitaria en programas educativos por parte de los estudiantes.  

Se encuentra en el portal del Departamento de Educación una versión firmada del acuerdo en formato PDF en inglés y español.     

La misión de la Oficina de Derechos Civiles [Office for Civil Rights (OCR)] del Departamento de Educación es garantizar el acceso igualitario a la educación y promover la excelencia educativa en toda la nación haciendo valer enérgicamente los derechos civiles.  La OCR es responsable de hacer valer las leyes federales de derechos civiles que prohíben la discriminación por instituciones educativas debido a discapacidad, raza, color, origen nacional, sexo y edad, así como la Ley de Acceso Igualitario a los Boy Scouts of America de 2001. Se encuentra información adicional sobre la oficina en este portal.

Existe información adicional disponible sobre la Sección de Oportunidades Educativas de la División de Derechos Civiles del Departamento de Justicia en el portal de la sección.

WASHINGTON –Today, leaders in the fight against elder abuse announced a framework for tackling the highest priority challenges to elder abuse prevention and prosecution, and called on all Americans to take a stand against the serious societal problem of elder abuse, neglect and financial exploitation.

Research suggests that one in 10 Americans over the age of 60 has experienced elder abuse or neglect, and that people with dementia are at higher risk for abuse.

Supported by the Department of Justice (DOJ) and the Department of Health and Human Services (HHS), the Elder Justice Roadmap was developed by harnessing the expertise and gathering the input of hundreds of public and private stakeholders from across the country. The goal of these expert summits was to identify the most critical priorities and concrete opportunities for greater public and private investment and engagement in elder abuse issues. The Elder Justice Roadmap, which is being published today, reflects the knowledge and perspectives of these experts in the field and will be considered by the Elder Justice Coordinating Council and others in developing their own strategic plans to prevent and combat elder abuse.

“The Roadmap Project is an important milestone for elder justice,” said Associate Attorney General Tony West. “Elder abuse is a problem that has gone on too long, but the Roadmap Report released today can change this trajectory by offering comprehensive and concrete action items for all of the stakeholders dedicated to combating the multi-faceted dimensions of elder abuse and financial exploitation. While we have taken some important steps in the right direction, we must do more to prevent elder abuse from occurring in the first place and face it head on when it occurs.”

“From now until 2030, every day, about 10,000 baby boomers will celebrate their 65th birthday,” said Kathy Greenlee, HHS’ assistant secretary for aging and administrator of the Administration for Community Living. “And the fastest-growing population is people 85 years old, or older. Stemming the tide of abuse will require individuals, neighbors, communities, and public and private entities to take a hard look at how each of us encounters elder abuse—and commit to combat it.”

To support the mission of elder abuse prevention and prosecution, DOJ has developed an interactive, online curriculum to teach legal aid and other civil attorneys to identify and respond to elder abuse. The first three modules of the training cover what lawyers should know about elder abuse; practical and ethical strategies to use when facing challenges in this area; and a primer on domestic violence and sexual assault. This training will expand to include six one-hour modules covering issues relevant to attorneys who may encounter elder abuse victims in the course of their practice.

HHS is supporting the mission by developing a voluntary national adult protective services (APS) data system. Collecting national data on adult mistreatment will help to identify and address many gaps about the number and characteristics of adults who are the victims of maltreatment and the nature of services that are provided by APS agencies to protect these vulnerable adults. In addition, the data will better inform the development of improved, more targeted policy and programmatic interventions.

In addition to informing federal elder justice efforts, the roadmap has already inspired private stakeholders to take action. For example, as a result of the roadmap, the Archstone Foundation has funded a project at the Keck School of Medicine at the University of Southern California to develop a national training initiative, while other funders, such as the Weinberg Foundation, have begun to consider inquiries and projects outlined in the roadmap. Likewise, the Brookdale Center for Healthy Aging at Hunter College, The Harry and Jeannette Weinberg Center for Elder Abuse Prevention at the Hebrew Home at Riverdale and the New York City Elder Abuse Center will be co-sponsoring a symposium in September 2014 focusing on innovations and challenges related to elder abuse multidisciplinary teams, a priority area identified in the roadmap.

“While federal and state governments certainly have critical roles to play, the battle against elder abuse can only be won with grassroots action at the community and individual level,” said Greenlee. “Turning the tide against elder abuse requires much greater public commitment, so every American will recognize elder abuse when they see it and know what to do if they encounter it.”

Two steps local communities, families and individuals can take are:

• Learn the signs of elder abuse. The National Center on Elder Abuse, a program of the Administration on Aging at ACL, has developed a helpful Red Flags of Abuse Factsheet (PDF) that lists the signs of and risk factors for abuse and neglect.

• Report suspected abuse when you see it. Contact your local adult protective services agency. Phone numbers for state or local offices can be found at the National Center for Elder Abuse website, or call 1-800-677-1116.

“We must take a stand to ensure that older Americans are safe from harm and neglect,” said Associate Attorney General West. “For their contributions to our nation, to our society, and to our lives, we owe them nothing less.”

The Elder Justice Roadmap and accompanying materials are at: http://ncea.acl.gov/Library/Gov_Report/index.aspx.

Free online training for attorneys is at: https://www.ovcttac.gov/views/dspLegalAssistance.cfm?tab=1#onlinetraining.

The Justice Department announced today that it reached a settlement with the city of Hubbard, Oregon, resolving an investigation of the city under Title I of the Americans with Disabilities Act (ADA). The investigation found that the city’s online employment application asked questions about disabilities in violation of the ADA. The ADA does not permit employers to inquire whether an applicant is an individual with a disability or as to the nature of such disability before making a conditional offer of employment. However, the ADA permits federal contractors subject to affirmative action requirements under Section 503 of the Rehabilitation Act of 1973 to invite an applicant voluntarily to self-identify as an individual with a disability, consistent with certain requirements. Last month, the department reached a similar settlement agreement with Florida State University.

Under the settlement, the city agrees to ensure that its hiring policies do not discriminate against any applicant on the basis of disability, including by:

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

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

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

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

“This agreement ensures that people with disabilities will have an equal chance to compete for jobs with the city of Hubbard,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to eliminating employment barriers for people with disabilities, and we commend the city of Hubbard for its cooperation and efforts to ensure fairness in the job application process.”

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

The Department of Justice announced today that a federal grand jury in the U.S. District Court for the Middle District of Georgia returned indictments charging four law enforcement officers with civil rights violations and obstruction of justice in connection with an incident that occurred at Bainbridge BikeFest in 2012. A seven count indictment was returned charging former Grady County Sheriff’s Deputy Wiley Griffin IV and Decatur County Sheriff’s Office Captain Elizabeth Croley with violating an individual’s civil rights. Additionally, Croley, Decatur County Sheriff’s Deputy Christopher Kines and former Decatur County Sheriff’s Deputy Robert Wade Umbach were charged with obstructive conduct relating to the investigation into the civil rights violation.

The indictment charges that Griffin used excessive force during the arrest of a civilian, A.P., at the Bainbridge BikeFest motorcycle event in Bainbridge, Georgia, on Sept. 15 to 16, 2012, thereby violating A.P.’s civil rights. As a result of the assault, A.P. sustained injuries to his face, including cuts, bleeding, swelling and bruising.

The indictment also charges Croley, Kines and Umbach with writing false reports to cover up the assault. In addition, Kines and Umbach were charged with making misleading statements to the FBI to obstruct the agency’s investigation into the use of force against A.P.

In addition, the indictment charges Croley with violating A.P.’s constitutional right to a fair trial by intentionally withholding material exculpatory evidence from the District Attorney’s office, and, in turn, from A.P.’s criminal defense attorney, during prosecution of A.P. arising from the arrest at BikeFest.

The civil rights charge against Griffin carries a statutory maximum sentence of 10 years in prison. The civil rights charge against Croley carries a statutory maximum sentence of one year in prison. Additionally, Croley, Kines and Umbach face a statutory maximum sentence of 20 years in prison for their falsification of reports, and Umbach and Kines face a statutory maximum sentence of 20 years in prison for making misleading statements to obstruct justice.

This case is being investigated by the FBI and is being prosecuted by Trial Attorneys Christine M. Siscaretti and Risa Berkower of the Justice Department’s Civil Rights Division, with support from the U.S. Attorney’s Office for the Middle District of Georgia.

An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendants are presumed innocent unless and until proven guilty.

The Justice Department announced today that the U.S. District Court for the Eastern District of New York has entered a consent decree of permanent injunction against Triceutical Inc. and its president, Liqun Zhang, of Farmingdale, New York, to prevent the distribution of adulterated dietary supplements.

According to a complaint filed last month, the defendants violated the Federal Food, Drug, and Cosmetic Act (FDCA) by manufacturing and distributing dietary supplements that were adulterated. Under the FDCA, dietary supplement manufacturers are required to have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. The government’s actions resulted from a series of inspections of Triceutical’s manufacturing facility in Farmingdale, which revealed, among other things, that Triceutical failed to ensure that components, dietary supplements, packaging and labels were not mixed up, contaminated or deteriorated.

In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the FDCA. The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if the defendants wish to resume manufacturing dietary supplements in the future, the FDA first must determine that Triceutical’s manufacturing practices have come into compliance with the law. The consent decree was filed with the complaint in June and docketed yesterday.

Triceutical was the manufacturer of Joint King dietary supplement, which was found to contain high levels of Vitamin D. A consumer of Joint King experienced headache, confusion and kidney failure resulting in hospitalization due to Vitamin D toxicity.

The FDA referred this matter to the Department of Justice. The Consumer Protection Branch of the Justice Department’s Civil Division, together with the U.S. Attorney’s Office for the Eastern District of New York, filed this case on behalf of the United States.

The Departments of Justice and Education announced today that they have reached a comprehensive agreement with the Jefferson Parish Public School System in Louisiana (JPPSS) to ensure that all students can enroll in school regardless of their own national origin or immigration status, or that of their parents or guardians. The agreement also resolves complaints regarding JPPSS’ policies and practices for communicating with parents who have limited English proficiency (LEP) and JPPSS’ response to alleged harassment of Latino students based on their national origin.

“This agreement will ensure that in Jefferson Parish, the doors to school and to opportunity will be open to all children, regardless of background,” said Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division. “We commend the school district for working collaboratively to resolve this matter and for its commitment to making sure that its schools are welcoming and accessible to all students and parents.”

“We applaud Jefferson Parish for ensuring that all students will have access to their public schools and that all parents, regardless of the language they speak, are equipped with the information necessary for their children to fully participate in and benefit from their educational programs,” said Assistant Secretary Catherine E. Lhamon for the Department of Education’s Office for Civil Rights. “We look forward to working with the Department of Justice and the school district to address these crucial civil rights issues.”

Specifically, under the terms of the three-year voluntary agreement, JPPSS will:

· revise enrollment and registration materials and policies before the beginning of the 2014-2015 school year to ensure they do not exclude or discourage students from enrolling based on citizenship or immigration status;

· ensure that parents and students are not asked to produce a social security number, social security card, state-issued identity document or other document that requires proof of citizenship or immigration status in order to enroll or graduate;

· annually train all employees responsible for student enrollment and registration on the revised policies;

· implement a translation and interpretation policy to ensure that LEP parents receive essential information in a language they understand;

· annually train all JPPSS personnel who interact with the public regarding effective communication with LEP parents and what types of information must be translated or interpreted;

· create a bilingual parent advisory committee to make recommendations to JPPSS regarding the educational program for English language learners, registration and enrollment policies, harassment and bullying and communications with LEP parents;

· revise its current policy and practices to ensure that all complaints of discrimination on the basis of race, color or national origin, including allegations of harassment on these bases, are appropriately investigated and resolved;

· provide anti-harassment, anti-bullying and diversity training for the faculty, staff and students of West Jefferson High School, where the alleged harassment and bullying occurred; and

· annually administer a school climate survey at West Jefferson High School to assess the presence of harassment and bullying on the basis of national origin, race and/or color.

The departments will closely monitor the implementation of the agreement to ensure timely and effective implementation and equal opportunity for all students to participate in JPPSS’ educational programs.

On May 8, 2014, the departments released newly-revised guidance documents reminding all school districts of their obligation under federal law to provide equal educational opportunities to all children residing in their districts, regardless of race, color, national origin, citizenship or immigration status or the status of their parents. A copy of the letter can be found on the Department of Education website.

The enforcement of Title VI of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color or national origin by recipients of federal financial assistance, is a top priority of both departments. The Justice Department also enforces Title IV of the Civil Rights Act of 1964, which prohibits discrimination on the basis of race, color, national origin, sex and religion in public schools, and the Equal Educational Opportunities Act of 1974, which requires schools to take appropriate action to overcome language barriers that impede students’ equal participation in instructional programs.

A signed, PDF version of the agreement can be found online in both English and Spanish

The mission of the Office for Civil Rights (OCR) in the Department of Education is to ensure equal access to education and promote educational excellence throughout the nation through the vigorous enforcement of civil rights. OCR is responsible for enforcing federal civil rights laws that prohibit discrimination by educational institutions on the basis of disability, race, color, national origin, sex and age, as well as the Boy Scouts of America Equal Access Act of 2001. Additional information about the office is available at this website

Additional information about the Justice Department’s Civil Rights Division, Educational Opportunities Section, is available at the section's website

Deputy Attorney General James Cole announced today that the Justice Department will implement a series of steps to help address the influx of migrants crossing the southern border of the United States. These include refocusing immigration court resources to adjudicate the cases of recent migrants; providing support and training to help address violence in Central America; and redoubling efforts to work with other federal agencies and the Mexican government to investigate and prosecute those who smuggle migrants to the United States.

“Individuals who embark on the perilous journey from Central America to the United States are subject to violent crime, abuse, and extortion as they rely on dangerous human smuggling networks to transport them through Central America and Mexico,” Deputy Attorney General Cole said. “We have an obligation to provide humanitarian care for children and adults with children who are apprehended on our borders, but we also must do whatever we can to stem the tide of this dangerous migration pattern. The efforts we are announcing today are intended to address the challenges of this influx in a humane, efficient and timely way.”

Cole announced that the department’s Executive Office for Immigration Review (EOIR) will refocus its resources to prioritize cases involving migrants who have recently crossed the southwest border and whom DHS has placed into removal proceedings -- so that these cases are processed both quickly and fairly to enable prompt removal in appropriate cases, while ensuring the protection of asylum seekers and others.

“This refocusing of resources will allow EOIR to prioritize the adjudication of the cases of those individuals involved in the evolving situation at the southwest border,” said EOIR Director Juan P. Osuna. “Although our case management priorities are shifting, our immigration judges will continue to evaluate and rule upon cases consistent with all substantive and procedural rights and safeguards applicable to immigration proceedings.”

To augment its capacity to adjudicate cases as promptly as possible, EOIR is committed to hiring more immigration judges. EOIR this week will also publish a regulation allowing for the appointment of temporary immigration judges. Further, EOIR plans both to expand its existing legal access programs, and enhance access to legal resources and assistance for persons in removal proceedings.

Cole also announced that the Department is seeking new funding, as a part of the President’s emergency supplemental appropriations request, to assist Central American countries in combatting transnational crime and the threat posed by criminal gangs. This regional strategy for law enforcement capacity building would be aimed at addressing the issues that have been a factor in forcing many migrants to flee Central America for the United States.

The department will also redouble its efforts to work with Mexican authorities to identify and apprehend smugglers who are aiding unaccompanied children in crossing the U.S. border. Later this week, the Deputy Attorney General will also be meeting with the five U.S. Attorneys who represent the southwest border districts to strategize on ways to disrupt and dismantle criminal organizations on the border that are facilitating the transportation of unaccompanied minors and others.

Today, Deputy Attorney General Cole will go to the U.S. Customs and Border Protection’s McAllen Station and processing facility to see the urgent situation at the border. EOIR Director Osuna will be testifying before the Senate Homeland Security and Governmental Affairs Committee to highlight the Justice Department’s efforts to aid in the administration-wide response to the migrant influx.

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Fact Sheet

Jaime Viteri, a Chicago businessman, pleaded guilty to two counts of willfully failing to file federal individual income tax returns today, announced the Justice Department and the Internal Revenue Service (IRS).

On June 12, a criminal information was filed in the U.S. District Court for the Northern District of Illinois that alleged Viteri had willfully failed to file individual income tax returns for tax years 2007, 2008 and 2009. According to the plea agreement filed with the district court, Viteri earned and received gross income from his work as the president and chief executive officer of Viteri Inc., doing business as Chicago Latino Network (CLN), a solely owned media company focused on the Latino community in Chicago. Viteri was also an employee and managing director of the Bureau of Entrepreneurship and Small Business at the Department of Commerce and Economic Opportunity, an Illinois state government agency.

Viteri’s gross income from his employment exceeded approximately $270,000 for the 2008 tax year and $290,000 for the 2009 tax year. During these years, Viteri was required to file individual income tax returns and report the gross income he earned. Despite earning and receiving gross income from two different sources, Viteri willfully failed to file individual income tax returns with the IRS for tax years 2008 and 2009 as required by law. Under the terms of the plea agreement, Viteri also agrees to pay restitution to the IRS.

Sentencing is scheduled for Nov. 5, 2014. Viteri faces a statutory maximum sentence of one year in prison per count, one year of supervised release per count and a maximum fine of $100,000 per count.

The case was investigated by special agents from IRS-Criminal Investigation and prosecuted by Trial Attorney Christopher Maietta of the Justice Department’s Tax Division.

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

BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, pleaded guilty today before U.S. District Judge Lorna G. Schofield in the Southern District of New York to a one-count information charging the bank with conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA), for its role in processing billions of dollars of U.S. dollar transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions from 2004 through 2012.

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

In accepting BNPP’s guilty plea, the court accepted the plea agreement that had been entered into by the government and BNPP on June 30, 2014, under which BNPP agreed to forfeit a total of $8.8336 billion, pay a criminal fine of $140 million, cooperate with U.S. authorities, and be subject to a five-year term of probation, during which BNPP must enhance its compliance policies and procedures in accordance with settlement agreements BNPP has entered into with its principal U.S. regulators, the Board of Governors of the Federal Reserve System and the New York State Department of Financial Services.

According to the plea agreement, statements made during today’s plea proceeding, and the statement of facts containing further admissions by BNPP, BNPP knowingly and willfully moved more than $8.8 billion through the U.S. financial system on behalf of entities subject to U.S. embargo from 2004 through 2012, including more than $4.3 billion in transactions involving entities that were specifically designated by the U.S. government as being cut off from the U.S. financial system.

BNPP admitted that the majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses. BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assisting the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period. Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”

One way in which BNPP processed illegal transactions on behalf of Sudanese sanctioned entities was through a sophisticated system of “satellite banks” set up to disguise both BNPP’s and the sanctioned entities’ roles in the payments to and from financial institutions in the United States. As early as August 2005, a senior compliance officer at BNPP warned several legal, business, and compliance personnel at BNPP’s subsidiary in Geneva that the satellite bank system was being used to evade U.S. sanctions: “As I understand it, we have a number of Arab Banks (nine identified) on our books that only carry out clearing transactions for Sudanese banks in dollars. . . . This practice effectively means that we are circumventing the US embargo on transactions in USD by Sudan.”

Similarly, BNPP admitted that it provided Cuban sanctioned entities with access to the U.S. financial system by hiding the Cuban sanctioned entities’ involvement in payment messages. From October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.747 billion on behalf of Cuban sanctioned entities. In the statement of facts, BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal in order to preserve BNPP’s business relationships with Cuban entities. BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal,” as evidenced by the bank’s 2006 decision, after certain Cuban payments were blocked when they reached the United States, to strip the wire messages for those payments of references to Cuban entities and resubmit them as a lump sum in order to conceal from U.S. regulators the bank’s longstanding, and illicit, Cuban business.

BNPP also admitted to engaging in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012 – nearly two years after the bank had commenced an internal investigation into its sanctions compliance and had pledged to cooperate with the government. The illicit Iranian transactions were done on behalf of BNPP clients, including a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company, and an Iranian oil company.

This case was investigated by the Internal Revenue Service-Criminal Investigation’s Washington Field Division and the FBI’s New York Field Office. This case is being prosecuted by the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) and the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Southern District of New York. Trial Attorneys Craig Timm and Jennifer E. Ambuehl of AFMLS and Assistant United States Attorneys Andrew D. Goldstein, Martin S. Bell, Christine I. Magdo and Micah W.J. Smith of the Southern District of New York are in charge of the prosecution.

The New York County District Attorney’s Office also conducted its own investigation alongside the Department of Justice on this investigation. The Department of Justice expressed its gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services, and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter.

Two Aryan Brotherhood of Texas (ABT) gang members have pleaded guilty to racketeering charges related to their membership in the ABT’s criminal enterprise, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Steven Worthey, of San Antonio, Texas, pleaded guilty today before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity. James Lawrence Burns, aka “Chance,” of Dallas, Texas, pleaded guilty to the same charge on July 3, 2014.

According to court documents, Worthey, Burns and other ABT gang members and associates agreed to commit multiple acts of murder, robbery, arson, kidnapping and narcotics trafficking on behalf of the ABT gang. Worthey, Burns and numerous ABT gang members met on a regular basis at various locations throughout Texas to report on gang-related business, collect dues, commit disciplinary assaults against fellow gang members and discuss acts of violence against rival gang members, among other things.

By pleading guilty to racketeering charges, Worthey and Burns admitted to being members of the ABT criminal enterprise.

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

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

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

Worthey and Burns are both scheduled to be sentenced on Oct. 8, 2014. Each faces a maximum penalty of life in prison.

Worthey and Burns are two of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 32 defendants have pleaded guilty.

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

The case is being prosecuted by the Criminal Division’s Organized Crime and Gang Section and the U.S. Attorney’s Office for the Southern District of Texas.

RE/MAX Allegiance Relocation Services, a Virginia-based move management company, has agreed to pay the government $509,807 to resolve allegations that it violated the False Claims Act by overbilling for transportation services, the Department of Justice announced today.

“Today’s settlement demonstrates our continuing vigilance to ensure that those doing business with the government do so legally and honestly and that taxpayer funds are not misused,” said Assistant Attorney General for the Civil Division Stuart F. Delery. “Government contractors who seek to profit at the expense of taxpayers will be held accountable.”

The settlement relates to allegations involving contracts to transport personal property of federal employees relocating duty stations within the United States and between the United States and Canada. The government alleged that the defendant charged for move management services that were not provided and overbilled agencies on other moves by charging inapplicable tariff rates.

“We encourage whistleblowers to provide us with useful information to help us combat all manners of fraud on the U.S. Government,” said U.S. Attorney for the Eastern District of Virginia Dana J. Boente.

“We will continue to investigate allegations of federal contractors fraudulently maximizing their profits at the expense of American taxpayers,” said U.S. General Services Administration Acting Inspector General Robert C. Erickson.

The settlement resolves allegations filed in a lawsuit by Michael Angel, a former employee of RE/MAX Allegiance Relocation Services, in federal court in Alexandria, Virginia. The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The act also allows the government to intervene and take over the action, as it did in this case. Angel will receive $86,667.

The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Eastern District of Virginia, the General Services Administration Office of Inspector General, U.S. Department of Homeland Security Office of Inspector General, Department of Agriculture Office of Inspector General and NASA Office of Inspector General.

The case is captioned United States ex rel. Michael Angel v. Franconia Real Estate Services, Inc., d/b/a RE/MAX Allegiance Relocation Services; No. 1:12cv764 (E.D.Va.). The claims resolved by the settlement are allegations only; there has been no determination of liability.

Deundra Milhouse and Fredrick Hill, both residents of Alabama, were sentenced today in separate stolen identity refund fraud (SIRF) cases, announced Acting Assistant Attorney General Tamara Ashford of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. Milhouse was sentenced to serve 81 months in prison and Hill was sentenced to serve 74 months in prison.

Deundra Milhouse Case

Milhouse previously pleaded guilty to one count of access device fraud, one count of aggravated identity theft and one count of being a felon in possession of a firearm. He was indicted in December 2013 and has been detained since his arrest in late January. According to his plea agreement, Milhouse was involved in SIRF crimes—using stolen identities to steal money from the Internal Revenue Service (IRS) by filing fraudulent tax returns claiming refunds in the victims’ names—from spring 2011 through late 2013. In 2011 and 2012, Milhouse received more than $80,000 in fraudulently obtained tax refunds into a bank account he controlled. By 2013, he switched to using prepaid debit cards to receive the refunds.

Milhouse admitted in his plea agreement that he was driving a car that was stopped on Oct. 8, 2013, in Elmore County, Alabama. He managed to flee on foot and threw away a handgun that he had been carrying. At that time, Milhouse was a convicted felon prohibited from having a firearm. Numerous prepaid debit cards and documents with personal identifying information were found in the car he was driving. Milhouse also admitted that a later search of his house uncovered many more documents with the personal identifying information of victims, as well as more than 200 prepaid debit cards, a computer used to file tax returns and a magazine and ammunition for the discarded handgun. As part of his plea, Milhouse stipulated that his conduct involved an attempted fraud loss of more than $400,000 to more than 250 victims and that he had a least one felony conviction for a crime of violence prior to his possession of the handgun.

Fredrick Hill Case

Hill previously pleaded guilty to access device fraud and aggravated identity theft. According to his plea agreement, Hill sold stolen identities to others to be used in SIRF crimes. Hill admitted that at one point he possessed dozens of prepaid debit cards and more than 300 stolen identities in connection with his involvement in SIRF crime.

Both cases were investigated by special agents of IRS - Criminal Investigation. The Elmore County Sheriff’s Office also provided assistance in the Milhouse case. Trial Attorneys Jason Poole and Michael Boteler of the department's Tax Division prosecuted the Milhouse case and Trial Attorneys Jason Poole and Gregory Bailey prosecuted the Hill case. Assistant U.S. Attorney Todd Brown and the U.S. Attorney’s Office for the Middle District of Alabama assisted with both cases.

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

ROMAN SELEZNEV, a Russian national indicted in the Western District of Washington for a computer hacking scheme that compromised the financial accounts of credit card customers, was arrested in Guam on July 6, 2014 by law enforcement agents from the U.S. Secret Service.

SELEZNEV was indicted in March 2011 for multiple counts of Bank Fraud, Intentional Damage to a Protected Computer, Obtaining Information from a Protected Computer, Possession of Fifteen or More Unauthorized Access Devices, Trafficking in Unauthorized Access Devices, and Aggravated Identity Theft related to a computer hacking scheme that occurred between October 2009 to February 2011 within the Western District of Washington and elsewhere.  The superseding indictment from the Western District of Washington details, among other things, a bank fraud scheme in which SELEZNEV is charged with hacking into retail point of sale systems and installing malicious software on the systems to steal credit card numbers.  The indictment further alleges that SELEZNEV created and used infrastructure to further the theft and sales of credit card data, and used servers worldwide to facilitate the operation.

SELEZNEV appeared before the Honorable Joaquin V.E. Manibusan, Magistrate Judge of the U.S. District Court of Guam, on July 7, 2014 for his initial appearance, and was remanded to the custody of the U.S. Marshals Service pending a further hearing set for July 22, 2014.

Alicia A.G. Limtiaco stated, “The United States Attorney’s Office for the Districts of Guam and the Northern Mariana Islands is committed to working with our law enforcement partners and community of United States Attorney’s Offices, to combat against cybercrime, data theft and financial crimes, and to hold offenders accountable and ensure that they are brought to justice.”

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

ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that Defendants RENEELINETTE P. MESA, age 33, and OK JA CHO, age 47, were sentenced today in the District Court of Guam by Judge Ramona Manglona, for their roles in making and passing counterfeit currency on Guam.

Defendant MESA was sentenced for the offense of Making Photographs in the Likeness of U.S. Currency.  Defendant CHO was sentenced for Dealing in Counterfeit U.S. Obligations and Securities.  Defendant MESA and co-defendant Michael Badar (who will be sentenced later) made counterfeit currency and passed them at various businesses throughout Guam.  They were discovered when a vendor at Micronesian Mall called Mall Security when Defendant CHO attempted to pass one of the counterfeit notes.  The vendor led the Mall Security Officers to CHO.  Mall Security detained CHO until the Guam Police Department (GPD) and the U.S. Secret Service (USSS) responded.  Defendant CHO confessed that day and led United States Secret Service to Badar and Defendant MESA.  Agents recovered the materials they used to produce the counterfeit currency in garbage bags to be thrown out.

Defendant MESA was sentenced to 14 months imprisonment, five years supervised release, and 125 hours community service.  Defendant MESA was also ordered to pay restitution to the victims who filed claims.  Defendant CHO was sentenced to time served, with credit for seven months and eight days, three years supervised release, 200 hours community service and was ordered to report her conviction to the U.S. Department of Homeland Security, U.S. Citizenship & Immigration Services.

Ashvin Desai, of San Jose, California, was sentenced yesterday to serve six months in prison and six months and one day of home confinement for concealing more than $8 million in foreign bank accounts, the Justice Department and Internal Revenue Service (IRS) announced. Prior to yesterday’s sentencing hearing, Desai filed with the court a document indicating that the IRS has assessed and demanded payment of a Reports of Foreign Bank and Financial Accounts (FBAR) penalty against him for $14,229,744.

In October 2013, a jury convicted Desai, a medical device manufacturer, of failing to report his family’s foreign bank accounts to the government on tax returns and FBARs. The jury also found that Desai failed to disclose more than $1.2 million in interest income generated by these accounts between 2007 and 2009. Desai was sentenced by U.S. District Judge Edward J. Davila.

According to the evidence presented in court, Desai controlled several foreign bank accounts at HSBC in India and Dubai, including accounts held in the name of his wife and adult children. Desai invested the funds in these accounts in certificates of deposit, which earned interest at rates as high as nine percent. Desai funded these accounts by mailing checks from the United States and by transferring money from other undeclared bank accounts in Singapore and the United Kingdom to his family’s accounts in India. Desai also sold medical devices abroad, and, on at least one occasion, directed that his customer wire funds directly to his undeclared HSBC India account.

Between 2007 and 2009, Desai paid approximately $17,000 in taxes. However, Desai owed an additional $357,783 in taxes to the IRS on his unreported interest income. Desai’s deposits into his foreign accounts also far exceeded the income he disclosed on his tax returns each year. In 2008, for example, he deposited nearly $1.1 million into foreign accounts while only reporting income of $115,810.91 on his tax return.

The evidence at trial demonstrated the steps Desai took to conceal his family’s foreign accounts from the government. In addition to failing to report his accounts on tax returns and FBARs, Desai also directed the bank not to mail bank statements to his house. On one occasion, Desai wrote an email in which he asked an HSBC banker: “Why are all the statements coming to Home address? I thought we had a different arrangement.”

This case was investigated by IRS-Criminal Investigation and prosecuted by Trial Attorney Melissa Siskind of the Tax Division.

The Justice Department, the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) announced that Matthew Bender, of Detroit, was sentenced today by U.S. District Judge Julian Abele Cook Jr. to serve 48 months in prison and one year of supervised release.

On March 18, after a fourday trial, a jury in the U.S. District Court for the Eastern District of Michigan convicted Bender of obstructing the IRS and of nine counts of aiding and assisting in the preparation of false federal income tax returns. On June 4, another jury convicted Bender of failing to make a required appearance in court. Today’s sentencing is for all of Bender’s convictions.

According to court documents and evidence produced at trial, between 2006 and 2011, Bender prepared more than 3,000 tax returns and earned more than $500,000 in fees. However, Bender failed to report his own income from tax preparation to the IRS, either by filing false tax returns for himself or by failing to file his own tax returns at all. The evidence also showed that Bender caused inflated tax refunds for his customers by placing false deductions on their returns.

After the initial indictment prior to his first trial, Bender was ordered by Judge Cook Jr. to appear in court July 2, 2013, concerning his failure to comply with his conditions of release. Bender failed to appear in court on that date and was arrested in August 2013 by the U.S. Marshals Service after returning to Michigan from traveling to Ohio and Texas.

The case was investigated by special agents of IRS – Criminal Investigation and TIGTA. Trial Attorneys Jeffrey McLellan and Kenneth Vert of the department’s Tax Division prosecuted the case.

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

In a speech Tuesday, Attorney General Eric Holder called Syria "a cradle of violent extremism" and urged multilateral law enforcement action to confront the security threat posed by radicalized individuals from the United States and Europe traveling there.

An estimated 7,000 foreign fighters, including dozens of Americans, have streamed into Syria to participate in the conflict there. These individuals can link up with violent extremist groups operating in the region and then seek to return to their home countries with training in how to carry out violence on a large scale. Attorney General Holder said the U.S. and its allies have a mutual interest in confronting this trend, observing that the ability of citizens of European nations to travel, visa-free, to the United States--and likewise, U.S. citizens' ability to freely visit Europe--means that "the problem of fighters in Syria returning to any of our countries is a problem for all of our countries."

Holder called for a four-part strategy to counter the threat. The approach includes enacting statutes that allow governments to prosecute planning activities undertaken by radicalized extremists seeking to aid terrorist groups. Holder also pointed to the Federal Bureau of Investigation's undercover operations as a successful method for identifying violent extremists and disrupting their plots. He also called for more information sharing among nations about travelers to Syria, and for expanded outreach to key communities in order to prevent individuals from becoming radicalized in the first place.

"In the face of a threat so grave, we cannot afford to be passive," Holder said. "Rather, we need the benefit of investigative and prosecutorial tools that allow us to be preemptive in our approach to confronting this problem. If we wait for our nations’ citizens to travel to Syria or Iraq, to become radicalized, and to return home, it may be too late to adequately protect our national security."

The Attorney General spoke in Oslo at the U.S. ambassador's residence. The remarks followed one-on-one meetings earlier Tuesday with both the Prime Minister of Norway and the country’s Minister of Justice. In 2013, Norway amended its laws to criminalize preparatory acts to terrorism, including training for terrorism, preparation for terrorism and participation in a terrorist organization. In addition, last month the Norwegian government announced a 30-point "Action Plan Against Radicalism and Violent Extremism" that focuses on civic engagement and detection of threats. Holder praised both steps in his remarks Tuesday and said the United States looked forward to continued cooperation with Norway on these matters.

Later this week, Attorney General Holder travels to London for the Sixth Annual Meeting of the Quintet of Attorney Generals from the United States, United Kingdom, Canada, Australia and New Zealand. The issue of Syrian foreign fighters is expected to be part of those discussions as well.

A copy of the Attorney General's remarks appears below.

Thank you for those kind words – and thank you all for such a warm welcome. Ladies and gentlemen; distinguished guests; leaders and citizens – it is a pleasure to be in Norway. And it’s a great privilege to be in the beautiful city of Oslo today.

I’d like to thank the Norwegian government – and especially Prime Minister [Erna] Solberg and Minister of Justice [Anders] Anundsen, with whom I met earlier today – for their hospitality. I’d also like to recognize our Charge, Julie Furuta-Toy, and the hardworking men and women of the U.S. Embassy for bringing us together – and for all that they do, every day, to advance our shared interests.

It’s an honor to join them – and to stand with all of you – in strengthening the ties that bind our nations together; in discussing some of the most critical challenges the international community must confront; and in reaffirming our mutual commitment to the values we share, and the high ideals – of democracy, liberty, and equal justice under law – that have defined our nations’ friendship over the past two centuries.

That friendship, and those values, have deep roots. Norwegian-Americans have played an important role in the development of our country. And your citizens and values have had an impact around the world. Two hundred years ago, Norway ratified a constitution that asserted certain essential and immutable rights. Through centuries of triumph and challenge, our people and our governments have both been guided by a shared understanding that “all people are born free and equal.”

Today, Norway is a leader in extending worldwide the promise of equality and justice, through its own development work overseas, and through its support of international institutions. And Norway leads global efforts to address urgent threats – most recently in Syria, where Norwegian and American personnel are working side-by-side to rid that country of chemical weapons. Around the world, Norway is recognized as a champion of democracy and human rights. And, for decades, you’ve been leading by example.

After all, as history teaches us – and as you’ve seen here in Norway and we in the United States – progress is not inevitable. And our democratic values, our open societies – and our commitment to tolerance and inclusion – must be continuously protected against agents of intolerance, extremism, and hate.

Particularly when hatred and extremism take expression in acts of violence and terror, we must be resolute in our protection of equal rights, democracy, and the rule of law. And we must be both innovative and aggressive in combating violent extremism in all its forms.

It was just three years ago this month that Norway endured devastating attacks on the government quarter of Oslo and a Workers’ Youth League summer camp – heinous acts that shocked citizens everywhere, and earned swift condemnation and sympathy from around the world – as President Obama stated, our hearts went out to you. Horrific crimes like these are not only terrible tragedies for the individuals and the nations targeted; they test our fortitude and challenge the very foundations of who we are. Yet Norway has not faltered or changed its values – and is an example for the world in this regard as well.

Like Norway, the United States is all too familiar with domestic threats, having suffered deadly attacks on our soil – including against government buildings, places of worship, and sporting events. These attacks, like the attacks you suffered here in Norway, share a common theme: they are attacks on tolerance, in the name of violent extremist ideologies.

Under the Obama Administration, while we have acted to protect our country and our allies, we have also redoubled our commitment to civil rights and to tolerance. This is what violent extremists most fear, for their goal is to undermine open societies. At the same time, we also have joined with our international partners to ensure that there is no impunity for those who seek to commit terrorist attacks. Now, Norway, the United States, and countries around the world face a new threat – the possibility that violent extremists fighting today in Syria, Iraq, or other locations may seek to commit acts of terror tomorrow in our countries as well.

U.S. intelligence officials estimate that nearly 23,000 violent extremists are currently operating in Syria. Among these are over 7,000 foreign fighters – among whom are dozens of Americans, a number that is growing.

We have a mutual and compelling interest in developing shared strategies for confronting the influx of U.S.- and European-born violent extremists into Syria. And because our citizens can freely travel, visa-free, from the U.S. to Norway and other European states – and vice versa – the problem of fighters in Syria returning to any of our countries is a problem for all of our countries.

This is a global crisis in need of a global solution. The Syrian conflict has turned that region into a cradle of violent extremism. But the world cannot simply sit back and let it become a training ground from which our nationals can return and launch attacks. And we will not.

In the face of a threat so grave, we cannot afford to be passive. Rather, we need the benefit of investigative and prosecutorial tools that allow us to be preemptive in our approach to confronting this problem. If we wait for our nations’ citizens to travel to Syria or Iraq, to become radicalized, and to return home, it may be too late to adequately protect our national security.

That’s why we need to adopt a multilateral four-pronged strategy to combat this threat, to counter violent extremism in all its forms, and to keep our citizens safe.

The first element of our united approach must be to ensure that there are laws in our systems that enable governments to properly police that threat. In its Rabat Memorandum, the Global Counterterrorism Forum – a group of 30 countries from around the world, working in partnership with the UN – stated that “Criminalizing preparatory acts, such as conspiracy, terrorist fundraising, terrorist recruitment, planning and training, particularly when a terrorist attack has not yet been carried out, is vital in an effective criminal justice preventive approach to counterterrorism.” In this regard, the U.S. relies on a statute that criminalizes the providing of “material support to terrorist organizations.” Our material-support law, which was originally enacted in 1994 and amended after the attacks in New York on September 11, 2001, bars not only contributions of personnel, cash, weapons and other tangible aid to designated terrorist organizations, but also intangible means of support – such as training, service, and expert advice or assistance. Similarly, in 2013, Norway amended its laws to criminalize preparatory acts to terrorism, including training for terrorism, preparation for terrorism and participation in a terrorist organization Likewise, in 2012, France enacted a new statute that enables prosecutors to charge individuals with “criminal association with the intent to commit terrorist acts.” Earlier this year, French authorities sentenced the nation’s first three defendants under this new law; all three were plotting to travel to Syria. Today, I urge governments around the world to consider similar measures that criminalize the preparatory acts committed by those with terrorist plans.

The second part of our comprehensive strategy looks to ensure that we have in place law enforcement investigative tools and techniques that are both effective and protective of individual rights and the rule of law. In this regard, we have found undercover operations – which the Federal Bureau of Investigation pioneered in fighting transnational organized crime – to be essential in fighting terrorism as well. In the United States, the FBI has already conducted undercover operations that have identified individuals with intentions to travel to Syria. These operations are conducted with extraordinary care and precision, ensuring that law enforcement officials are accountable for the steps they take – and that suspects are neither entrapped nor denied legal protections. Here, too, the Global Counterterrorism Forum’s Rabat Memorandum calls for such techniques to be applied in countries around the world: one of the “good practices” it advocates is that countries “Provide a Legal Framework and Practical Measures for Undercover Investigations of Terrorist Suspects or Organizations.”

Third: in order to further our investigative capabilities, we must strengthen international cooperation, in a variety of respects. As an initial matter, we must prioritize the sharing of traveler information as a potential way to prevent would-be foreign fighters from going to Syria in the first place – and tracking those who come back. The United States is committed to doing its part in this regard. As we speak, through law enforcement agencies such as the FBI, U.S. authorities are working with Interpol to disseminate information on foreign fighters. We encourage other countries to use Interpol – and Interpol notices – to combat the foreign-fighter phenomenon. And we are actively supporting Interpol’s Fusion Cell, which focuses on information-sharing relating to foreign fighters. In fact, the U.S. has provided personnel, including FBI agents, to support this specialized office.

While we are committed to ensuring that we protect the safety of our fellow citizens, we are also committed to protecting their privacy. Alongside policymakers in Brussels, we’re also working to attain an “umbrella” data-sharing agreement between the United States and the European Union, that would strengthen the already strong protections that are presently in existence and that ensure that law enforcement information is shared effectively, and in accordance with data privacy principles. This agreement will guarantee that there will be no diminishment of the key exchanges of law enforcement information, including terrorism information, that is critical to the safety of citizens in Europe, the U.S., and around the world. And as a step to advance this endeavor, last month – in Athens – I announced a United States commitment that the Obama Administration would seek legislation to create the ability – for non-U.S. persons – to seek judicial redress for access and rectification, and for willful or intentional disclosure, of law enforcement information transferred to the United States. This is an historic commitment by the United States to extend privacy protections beyond U.S. persons in this context. It is imperative that we reach an “umbrella” agreement in this regard as soon as possible. The time for posturing has long past. It is time for nations that have long shared fundamental views about privacy to act together.

Countries must also effectively use mutual legal assistance and extradition to counter foreign fighters. Here, too, the Rabat Memorandum of the Global Counterterrorism Forum is instructive: “Because terrorism often transcends national boundaries, timely and effective international cooperation is indispensable to a criminal justice response to terrorism.” Through international mutual legal assistance, the U.S. Department of Justice has provided evidence to countries for use in prosecutions of terrorist organizations – including terrorist groups that were recruiting others to fight in Syria. We continue to assist foreign partners around the globe by acting on mutual legal assistance requests and providing evidence to support those criminal investigations and prosecutions. And we believe it’s critical that countries develop their abilities to effectively engage in mutual legal assistance – including by strengthening their central authorities – so that we can work together to counter this shared threat.

International cooperation also means working together to build the capacity of other nations, as Norway does in so many different contexts. Norwegian and U.S. Department of Justice legal advisors have worked together to build Rule of Law in Georgia and Moldova. And to enhance similar efforts on a global scale, the U.S. Department of Justice is providing capacity-building assistance to help our partners build fair and transparent justice systems that will allow their countries to confront transnational crime and terrorism, including the problem of foreign fighters. Applying the standards of the UN Counterterrorism Treaties, and the best practices of the Rabat Memorandum, our capacity-building work, and that of our foreign partners, has helped advance laws permitting police and prosecutors to more effectively investigate and prosecute suspected foreign fighters, within the Rule of Law – leading to the disruption of foreign fighters and the dismantlement of organizations that recruit would-be fighters to travel to Syria. Through ongoing programs in places such as the Balkans, Africa, and elsewhere, we continue to work with international partners to help them stem the flows of foreign fighters; to use the tools they have to more effectively impede their movements; and to assist in the investigation and prosecution of foreign fighters once captured.

Today, I challenge additional nations to step forward, as Norway has. Commit to robust, and privacy-protective, data-sharing in service of our mutual security. Pledge support for Interpol’s “Transnational Fighter Initiative.” Support mutual legal assistance and capacity building. And urge others to do their part by participating fully in these efforts – which will be effective only to the extent that they are as comprehensive as possible.

The fourth and final element of our strategy is founded on the notion that strong laws, effective investigative tools, and robust information-sharing must be matched with public engagement – and extensive community outreach. We must seek to stop individuals from becoming radicalized in the first place by putting in place strong programs to counter violent extremism in its earliest stages. In my time here in Norway, I have had the chance to learn about – and have been deeply impressed by – Norway’s Action Plan Against Radicalization and Violent Extremism.

Indeed, I have found it critical to engage in international exchanges with my counterparts regarding how we can do better on combating radicalization, and to learn from each other. I will take home with me important lessons from Norway’s experience. These lessons will help us implement our own National Strategy and Strategic Implementation Plan, which is led by the Justice Department, the FBI, the Department of Homeland Security, and the National Counterterrorism Center.

Our approach depends on building mutual trust and respect with members of communities across the country – so that we can understand their needs and concerns and to foster open dialogue with community leaders and citizens. This enables us to work with them to mitigate tensions and identify emerging threats.

At the heart of these engagement efforts in the United States are our United States Attorneys, the chief federal prosecutors in each of the jurisdictions they serve. Since 2012, our U.S. Attorneys have held or attended more than 1,700 engagement-related events. And the resulting relationships have not only served to build trust. They have also produced valuable cooperation, in some cases spurring community members to alert law enforcement about individuals who show an inclination to turn to violence.

Across the United States and in countries around the world, such counter-radicalization programs show significant promise. They serve our broader aim of fostering tolerance, inclusion, and understanding – which are themselves powerful tools against violent extremism. But ultimately, our goal must be not just to fight radicalization or apprehend dangerous individuals. At its core, this work is about forging more just and open societies – and building a more peaceful world.

That’s why it’s especially fitting that we recommit ourselves to these efforts here in Oslo – where so many of mankind’s highest ideals and aspirations have been recognized. For more than a century, this city has welcomed some of the most devoted peacemakers the world has ever known – from the Reverend Dr. Martin Luther King, Jr., who advocated for “a more noble civilization” in the midst of America’s long night of racial injustice; to Nelson Mandela, who insisted that “an injury to one is an injury to all.”

Throughout history, these pioneers of peace have called us to recognize that our capacity for courage has no limit. The struggle for human rights, civil rights, and equal justice knows no borders or boundaries. Yet their stories also remind us that, for all the progress that they have made possible, our journey still stretches beyond the horizon. And our work has no end.

You know as well as anyone that the work ahead will not be easy. None of the challenges we face are simple or straightforward. We will suffer setbacks. But so long as we remain committed to standing together, working together, and striving together – as people of courage, as leaders of conviction, and as nations of high ideals – I cannot help but feel optimistic about where our joint efforts will lead us. I thank you all, once again, for your leadership, your collaboration, and your friendship. And I look forward to everything the United States and the Kingdom of Norway will achieve together in the months and years to come.

Thank you.

A soldier of the U.S. Army National Guard pleaded guilty today for his role in a wide-ranging corruption scheme involving fraudulent recruiting bonuses from the Army National Guard Bureau.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Robert Pitman for the Western District of Texas made the announcement.

Sergeant First Class Eduardo Ruesga-Larracilla, 41, of San Antonio, Texas, pleaded guilty today to one count of conspiracy to commit bribery and wire fraud, and one count of bribery of a public official.

The case against Ruesga arises from an investigation that has led to charges against 26 individuals, 24 of whom have pleaded guilty.

According to court documents, in approximately September 2005, the National Guard Bureau entered into a contract with Document and Packaging Broker Inc. (Docupak) to administer the Guard Recruiting Assistance Program (G-RAP). The G-RAP was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the National Guard. Through this program, a participating soldier could receive up to $2,000 in bonus payments for a referral. Based on certain milestones achieved by the referred soldier, a participating soldier would receive payment through direct deposit into the participating soldier’s designated bank account. To participate in the program, soldiers were required to create online recruiting assistant accounts.

Ruesga admitted that between approximately January 2010 and approximately October 2011, he conspired with a recruiter and paid him for the personal information of potential Army National Guard soldiers. Ruesga further admitted that, in order to obtain fraudulent bonuses, he used the personal information for these potential soldiers fraudulently to claim that he was responsible for referring these soldiers for enlistment in the National Guard.

Ruesga is scheduled to be sentenced on Oct. 9, 2014 before U.S. District Judge Orlando L. Garcia in San Antonio, Texas.

This case is being investigated by the San Antonio Fraud Resident Agency of the Army Criminal Investigation Command’s Major Procurement Fraud Unit. The case is being prosecuted by Trial Attorneys Sean F. Mulryne, Heidi Boutros Gesch, and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.

Kamarian D. Millender, of Dothan, Alabama,pleaded guilty today to one count of aggravated identity theft , Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced.

According to court documents, Millenderworkedas a lab technician at a medical facility in Dothan. He and others stole patient medical records, which contained personal identification information. Millender used this information to file false tax returns in an attempt to obtain fraudulent tax refunds from the Internal Revenue Service (IRS). Millender’sactions led to the filing of more than 100 false federal tax returns, which victimized approximately 73 individuals and sought to defraud the IRS out of approximately $536,028. The IRS was successfully able to stop the vast majority of the falsely claimed refunds, however an estimated $18,915 in refunds were issued.

As a result of his plea, Millenderwill be sentenced to serve the statutory mandatory sentence of two years in prison and is subject to a maximum fine in the amount of $250,000.

This case was investigated by special agents of IRS - Criminal Investigation. Trial Attorneys Charles M. Edgar Jr. and Michael Boteler of the Tax Division are prosecuting the case.

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

A Southern California man who was convicted at trial of conspiracy to commit health care fraud, six counts of health care fraud and six counts of aggravated identity theft was sentenced to serve 121 months in prison today in federal court in Los Angeles.

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

Vahe Tahmasian, 36, of Glendale, California, was found guilty by a federal jury on March 21, 2014, for his role in a $1.5 million Medicare fraud and identity theft scheme. In addition to his prison term of 121 months, he was sentenced to serve three years of supervised release and ordered to pay $994,036 in restitution to the Medicare program.

The evidence at trial showed that between April 2009 and February 2011, Tahmasian operated a Medicare fraud scheme at Orthomed Appliance Inc. (Orthomed), a DME supply company in West Hollywood, California. Tahmasian and his co-conspirator, Eric Mkhitarian, purchased Orthomed from the previous owners and put the company in the name of a “straw” owner. The defendant and his co-conspirator then stole the personal identifying information of Medicare beneficiaries and doctors in the company’s patient files, and used that information to submit a large volume of fraudulent claims to Medicare. The evidence showed that during a three-month period in late 2010, Tahmasian submitted more than $1.2 million in fraudulent claims to Medicare for services that were never prescribed by a physician and never provided to the Medicare beneficiaries. Tahmasian and his co-conspirator then took out more than $622,000 in cash from the company over a six-week period in early 2011. The evidence also showed that Tahmasian used a fake California driver’s license to further the fraud scheme. Tahmasian submitted a total of $1,584,640 in claims to Medicare and received approximately $994,036 on those claims.

The case was investigated by the FBI and the Los Angeles Region of HHS-OIG. The case was prosecuted by Assistant Chief Benton Curtis and Trial Attorney Alexander Porter of the Criminal Division’s Fraud Section.

The case was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

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

ALICIA A.G. LIMTIACO, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that three more defendants who were witnesses in the U.S. v. Mateo B. Sardoma, Jr. aka “Mat”, Rudy P.H. Sablan, Maria C. Edrosa aka “Cristina”, et al. trial were sentenced this week by Chief Judge Frances Tydingco-Gatewood, as follows:

1. Defendant CORY LEE BOND, age 27, was sentenced on July 1, 2014, to a sentence of time served, and followed by three years of supervised release.  Defendant BOND pleaded guilty to Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 841(a)(1) and 846.  Defendant BOND had assisted co-defendant Brian San Agustin in shipping methamphetamine to Guam for Defendant Mateo B. Sardoma, Jr.

2. Defendant BENNY BENAVIDEZ, age 33, was sentenced on July 2, 2014, to time served and five years of supervised release.  Defendant BENAVIDEZ pleaded guilty to Conspiracy to Distribute Methamphetamine in relation to the two Express Mail Packages he had received, in violation of 21 U.S.C. §§ 841 and 846.

3. Defendant DEBORAH ARBES, age 49, was sentenced on July 3, 2014, to 36 months imprisonment and five years of supervised release.  Defendant ARBES pleaded guilty to Conspiracy to Distribute Methamphetamine, in violation of 21 U.S.C. §§ 841 and 846. ARBES testified she was a user and sold methamphetamine on Guam.  ARBES also received a shipment of methamphetamine on behalf of Defendant Mateo B. Sardoma, Jr.

U.S. Attorney Limtiaco stated, “Our community is not immune from the poison of methamphetamine.  These cases illustrate the hard work our partners in law enforcement do every day to stop the distribution of methamphetamine into Guam.”  These three defendants were witnesses in the U.S. v. Mateo B. Sardoma, Jr. aka “Mat”, Rudy P.H. Sablan, Maria C. Edrosa aka “Cristina”, et al., which is the product of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations throughout the United States by leveraging the combined expertise of federal, state and local law enforcement agencies.

The investigations were conducted by Special Agents and Task Force Officers at the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the U.S. Department of Homeland Security-Homeland Security Investigations (DHS-HSI) and the Drug Enforcement Administration (DEA).  The cases against Defendants BOND and BENAVIDEZ were prosecuted by Assistant U.S. Attorney Clyde Lemons.  The case against Defendant ARBES was prosecuted by Assistant U.S. Attorney Fred Black.

The Department of Justice today announced an agreement with SunTrust Mortgage Inc. that resolves a criminal investigation of SunTrust’s administration of the Home Affordable Modification Program (HAMP).

As detailed in documents filed today, SunTrust misled numerous mortgage servicing customers who sought mortgage relief through HAMP. Specifically, SunTrust made material misrepresentations and omissions to borrowers in HAMP solicitations, and failed to process HAMP applications in a timely fashion. As a result of SunTrust’s mismanagement of HAMP, thousands of homeowners who applied for a HAMP modification with SunTrust suffered serious financial harms.

SunTrust has agreed to pay $320 million to resolve the criminal investigation into SunTrust’s HAMP Program. The money is divided as follows:

• Restitution – SunTrust will pay $179 million in restitution to compensate borrowers for damage caused by its mismanagement of HAMP. That money will be distributed to borrowers in eight pre-determined categories of harm. If more than $179 million is needed, the bank will also guarantee an additional $95 million for additional restitution. SunTrust will also pay $10 million in restitution directly to Fannie Mae and Freddie Mac.
• Forfeiture – SunTrust will pay $16 million in forfeiture. This money will be available to law enforcement agencies working on mortgage fraud and other matters related to the misuse of TARP funds.
• Prevention – SunTrust will pay $20 million to establish a fund for distribution to organizations providing counseling and other services to distressed homeowners. Specifically, SunTrust will pay this amount to a grant administrator selected by the government, which funds will in turn be awarded to housing counseling agencies and other non-profits devoted to consumer counseling and advocacy.

In addition to the significant payment, SunTrust has agreed to implement certain remedial measures aimed at preventing future problems like those that led to this investigation. Specifically, it will increase loss mitigation staff, monitor their mortgage modification process, and provide semi-annual reports regarding compliance with the agreement.

This settlement makes clear the Department’s commitment to supplementing its enforcement work with support for prevention programs. The grant fund established by this settlement will help distressed homeowners avoid the harms that befell SunTrust customers. This is real relief for housing agencies, which will compete for grants to increase their counseling and other services to homeowners across the country.

“Instead of helping distressed homeowners, SunTrust’s mismanagement drove up foreclosures, decimated individual credit and increased costs for hardworking men and women across our nation,” said Attorney General Eric Holder. “This resolution will provide much-needed restitution for victims. It will make available substantial funds to help other homeowners avoid foreclosure. And it will result in the kinds of systemic changes needed to ensure that this will not happen again. This outcome demonstrates yet again that the Justice Department will never waver in its ongoing pursuit of those whose reckless and willful actions harm the American people and undermine our financial markets.”

“The $320 million resolution of this long-running investigation requires SunTrust Mortgage to compensate its customers for the harm caused by the company’s false promises in administration of the Home Affordable Modification Program in 2009 and 2010 – conduct thoroughly described in the Statement of Facts that accompanies the settlement documents,” U.S. Attorney Timothy J. Heaphy said today. “Up to $284 million will be paid in restitution directly to the victims of SunTrust’s conduct. SunTrust will also establish a $20 million grant fund which will be distributed to agencies working with distressed homeowners and provide $16 million in asset forfeiture funds that will be used by law enforcement for future mortgage fraud investigations. The company has also agreed to make specific changes in its operations designed to prevent similar problems in the future.

“SunTrust has done the right thing by agreeing to this novel package of restitution, remediation, and prevention, which represents a significant victory not only for SunTrust customers, but also for Americans who will receive counseling and other assistance when faced with financial challenges,” U.S. Attorney Heaphy said. “This settlement demonstrates the commitment of the Department of Justice and the Special Inspector General for the Troubled Asset Relief Program to hold financial institutions accountable and provide restitution to those harmed by their conduct.”

“Today’s agreement with SunTrust underlines the importance of holding accountable those individuals and companies who pledge to ensure that homeowners are protected at all times; especially during times when the homeowner is seeking to save their home through a loan modification. SunTrust has conceded that their HAMP program had numerous deficiencies and has harmed a significant amount of homeowners. This behavior will not be tolerated. We are proud to have worked with our law enforcement partners on this case,” said Michael P. Stephens, Acting Inspector General of the Federal Housing Finance Agency Office of Inspector General.

“HAMP was designed to be a beacon of hope and opportunity for homeowners in dire straits, but TARP recipient SunTrust, rather than assist homeowners in need, financially ruined many through an utter dereliction of its HAMP program,” said Christy Romero, Special Inspector General for TARP (SIGTARP). “This criminal investigation uncovered that SunTrust so bungled its administration of the program, that many homeowners would have been exponentially better off having never applied through the bank in the first place. Unwilling to put resources into HAMP despite holding billions in TARP funds, SunTrust put piles of unopened homeowners’ HAMP applications in a room. SunTrust’s floor actually buckled under the sheer weight of unopened document packages. Documents and paperwork were lost. Homeowners were improperly foreclosed upon. Treasury was lied to. The negligence with which SunTrust administered its HAMP program is appalling, miserable, inexcusable, and repulsive. Real people lost their homes, and many others faced financial ruin. Ending this behavior and, where necessary, forcing institutions to change their culture through law enforcement by SIGTARP and our partners will help begin the process of restoring faith in financial institutions and healing public trust.”

The investigation of the case was conducted by the United States Attorney’s Office for the Western District of Virginia, the Office of the Special Inspector General for the Troubled Asset Relief Program, and the Office of the Inspector General for the Federal Housing Finance Agency (FHFA) and the United States Postal Inspection Service.

A member and an associate of the Lucchese organized crime family and two Texas brothers were convicted today of racketeering and other charges after a six-month trial.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Paul J. Fishman for the District of New Jersey made the announcement.

Nicodemo S. Scarfo, 49, of Galloway, N.J., a member of the Lucchese organized crime family of La Cosa Nostra (LCN) and Salvatore Pelullo, 47, of Philadelphia, an associate of the Lucchese and Philadelphia LCN families, were convicted of all the counts against them, including racketeering conspiracy and related offenses, including securities fraud, wire fraud, mail fraud, bank fraud, extortion, money laundering and obstruction of justice. Two other defendants, William and John Maxwell, were also convicted. Co-defendants David Adler, Gary McCarthy and Donald Manno were acquitted on all counts.

“Nicodemo Scarfo, Salvatore Pellulo and their cohorts used threats of physical and economic harm to take over a publicly-traded financial firm, then callously and systematically looted the company out of millions of dollars to buy luxury items for themselves,” said Assistant Attorney General Caldwell. “As a result of today’s guilty verdict, this mafia member and his conspirators now face substantial prison sentences.”

“Today, four people stand convicted for giving new meaning to ‘corporate takeover’ – looting a publicly traded company to benefit their criminal enterprise,” U.S. Attorney

Fishman said. “The defendants stole more than $12 million from shareholders through rampant self-dealing, fraudulent SEC filings and intimidation. The public should not have to worry that the interests of shareholders are being subverted to benefit organized crime or for other corrupt ends.”

The jury deliberated two weeks before delivering its verdicts following a six-month trial before U.S. District Judge Robert B. Kugler in Camden federal court. The defendants were charged in an indictment returned in 2011 by a federal grand jury in Camden. It named Nicodemo D. Scarfo (Scarfo Sr.) – Nicodemo S. Scarfo’s father and the imprisoned former boss of the Philadelphia LCN family – and Vittorio Amuso, the imprisoned boss of the Lucchese family, as conspirators.

Five other defendants – Cory Leshner, Howard Drossner, John Parisi, Todd Stark, and Scarfo’s wife, Lisa Murray-Scarfo – have previously pleaded guilty to various charges related to their roles in the criminal scheme.

According to documents filed in this case and the evidence at trial: Scarfo is a made member of the Lucchese family, having become a member after an attempt on his life in 1989 following an internal struggle for control of the Philadelphia family. In the mid-1990s, while Scarfo Sr. and Amuso were in federal prison in Atlanta, Ga., Amuso arranged for Scarfo to become a member of the Lucchese family as a favor to Scarfo Sr. As a member of the Lucchese family, Scarfo was required to earn money and participate in the affairs of the Lucchese family.

In April 2007, Scarfo, Pelullo and others devised a scheme to take over FirstPlus Financial Group Inc. (FPFG), a publicly-held company in Texas. Scarfo and Pelullo used threats of economic harm to intimidate and remove the prior management and board of directors of replaced those officers with individuals beholden to Scarfo and Pelullo, including William Maxwell, an attorney from Houston, Texas, and his brother, John Maxwell, of Irving, Texas, who acted as the company’s CEO.

Once the takeover was completed, the figurehead board named William Maxwell as “special counsel” to FPFG, a position that he used to funnel approximately $12 million to himself, Scarfo and Pelullo through fraudulent legal services and consulting agreements. The agreements, as well as FPFG’s fraudulent acquisitions of companies controlled by Scarfo and Pelullo, were designed to mask the true identity and nature of the control exerted over FPFG and to conceal the source of the money fraudulently conveyed to Scarfo and Pelullo.

In a telephone call intercepted by law enforcement, Pelullo called Scarfo to tell him about the sudden death of a former FPFG executive. This former executive had provided information to Pelullo and Maxwell that they used to extort control of FPFG. At the time of his death, he was employed by FPFG as a member of its “compliance team.” During the conversation, Scarfo and Pelullo expressed relief regarding his death. After laughing about how he was “crushed” that “the rat is dead,” Pelullo acknowledged that the executive was “the only connection, the only tie to anything.” Scarfo replied: “Oh boy. Yeah, Sal, you wanna know something though? That’s one that I know you can’t take credit for . . . [laughter] . . . and that’s the natural best thing. You know what I mean? That is so like Enron-ish. You know what I mean? Kenneth Lay, he bailed out and took a heart attack."

Scarfo and Pelullo used their illicit gains to fund extravagant purchases, including an $850,000 yacht for both defendants, a luxury home for Scarfo, a Bentley automobile for Pelullo, and thousands of dollars in jewelry for Scarfo’s wife. As a direct result of the enterprise’s criminal activity, FPFG and its shareholders suffered a loss of at least $12 million.

Sentencing for Scarfo is scheduled for Oct. 22, 2014; for Pelullo, Oct. 21, 2014, and for both Maxwell brothers, Oct. 23, 2014.

This case was investigated by the FBI, Department of Labor Office of Inspector General, Office of Labor Racketeering and Fraud Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Trial Attorney Adam L. Small of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys Steven D’Aguanno and Howard Wiener of the District of New Jersey’s Organized Crime/Gangs Unit.

A retired Navy official who started a second career working for defense contractor Glenn Defense Marine Asia (GDMA) pleaded guilty in federal court today, admitting that he and others overcharged the Navy by up to $2.5 million for port services to American ships and then used some of the proceeds to treat Navy officials to lavish dinners, cocktails and entertainment.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy for the Southern District of California, Director Andrew L. Traver of Naval Criminal Investigative Service (NCIS) and Acting Deputy Inspector General of Investigations James R. Ives of the Department of Defense (DCIS) made the announcement.

“There is an old Navy saying: ‘Not self, but country.’ Edmond Aruffo instead put self before country when he stole from the U.S. Navy as part of a massive fraud and bribery scheme that cost the U.S. Navy more than $20 million ,” said Assistant Attorney General Caldwell.

“This corruption scandal continues to lead us in new directions, and we continue to marvel at the extent of it,” said U.S. Attorney Laura Duffy. “If there are others who, like Edmond Aruffo, have traded integrity and honesty for greed and profit, we will find them and prosecute them.”

“Retired U.S. Navy Lieutenant Commander Edmond A. Aruffo, who previously held a position of trust and responsibility conferred on him by the Navy, betrayed his former service for personal gain by rigging invoices and deserves to be held accountable for his criminal actions,” said Director Traver. “NCIS will continue to work with DCIS and the Department of Justice in vigorously investigating and prosecuting these crimes of corruption and fraud.”

“The guilty plea of Edward Aruffo is part of an ongoing effort by the DCIS and its law enforcement partners to bring to justice individuals who seek to illegally enrich themselves at the expense of U.S. taxpayers,” said Acting Deputy Inspector General Ives. “While the vast majority of DOD contractors engage in lawful business practices, a few are driven by greed to break the law. Those who do will be caught and punished. American taxpayers will accept nothing less.”

Edmond A. Aruffo, who retired in 2007 at the rank of lieutenant commander after a military career spanning more than 20 years, is the seventh defendant charged – and the fourth to plead guilty – in the expanding corruption scandal involving GDMA’s illicit relationships with Navy officials. GDMA is a Singapore-based contractor that has serviced Navy ships and submarines in the Pacific for decades.

Aruffo, who became manager of GDMA’s Japan operations in 2009, entered his plea before U.S. Magistrate Judge Karen S. Crawford of the Southern District of California to a single count of conspiracy to defraud the United States. Aruffo’s bond was set at $40,000; however, he indicated to the court he not post bond and immediate self-surrender. A sentencing hearing was scheduled for Oct. 3, 2014, at 9 a.m. before U.S. District Judge Janis L. Sammartino of the Southern District of California.

According to court documents, GDMA owner and CEO Leonard Francis enlisted the clandestine assistance of Navy personnel – including Commander Michael Vannak Khem Misiewicz, Commander Jose Luis Sanchez, NCIS Special Agent John Beliveau and Petty Officer First Class Daniel Layug – to provide classified ship schedules and other sensitive information about an ongoing criminal investigation of GDMA. Court documents also allege that Francis and his cousin, GDMA executive Alex Wisidagama, conspired to defraud the United States through a number of overbilling schemes. In total, GDMA allegedly overcharged the Navy under its contracts and submitted bogus invoices for more than $20 million. Wisidagama, Beliveau and Layug have pleaded guilty while the others are awaiting trial.

According to Aruffo’s plea agreement, Aruffo was hired by GDMA’s Francis, who is accused of bribing Navy personnel with cash, luxury travel, expensive meals, consumer electronics and prostitutes in exchange for classified and proprietary information to win contracts and favorable treatment for his company.

According to the plea agreement, Aruffo was serving as the operations officer of the USS Blue Ridge when he met Francis. GDMA was providing “husbanding” services, such as tug boats, harbor pilots, trash removal, line handlers and transportation to that ship and numerous others.

In the plea agreement, Aruffo admitted that he and others defrauded the U.S. Navy in connection with charges for port services provided to nearly every Navy ship that came to port in Japan from July 2009 to September 2010.

As part of its contract with the Navy, GDMA was required to coordinate various vendors to provide port services for the Navy ships. Those vendors were to submit invoices directly to the Navy, rather than through GDMA.

The plea agreement said that Aruffo and others obtained letterhead from the Japanese vendors and used it to prepare bogus invoices which inflated the cost for services by tens of thousands of dollars. Aruffo admitted he arranged kickbacks to GDMA from the vendors, once they were paid by the Navy.

For example, according to the plea agreement, in February of 2010 the USS Lake Erie visited the port of Sukomo, Japan. Aruffo arranged for a Japanese vendor to provide a variety of husbanding services. The vendor invoiced the Navy $145,229.77 – an amount inflated by about $50,000, which the vendor ultimately gave to GDMA as a kickback.

A few days later, Aruffo arranged for another Japanese vendor to provide such services to the USS Blue Ridge at the port of Otaru, Japan, the plea agreement said. The vendor billed the Navy in the amount of $432,476.14 and then kicked back $204,961.20 to GDMA.

The ongoing investigation is being conducted by NCIS, DCIS and the Defense Contract Audit Agency. The case is being prosecuted by Director of Procurement Fraud Catherine Votaw and Trial Attorneys Brian Young and Wade Weems of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Mark Pletcher and Robert Huie of the Southern District of California.

Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline , or call (800) 424-9098.

A federal court has permanently barred Kavivah Branson, aka Kavivah Bradley, of Clinton, Mississippi, and her Jackson, Mississippi, business, Branson Tax Service, from preparing federal tax returns for others, the Justice Department announced today. The civil injunction order, to which Branson consented, was signed by Judge Tom S. Lee of the U.S. District Court for the Southern District of Mississippi.

According to the complaint, Branson prepared federal income tax returns for customers that understated the tax actually due. The complaint also alleged that Branson claimed improper earned income tax credits and education credits for her customers without performing the required due diligence and despite the absence of any supporting documentation, leading to the understatements. These unsubstantiated credits often resulted in overstated refunds because the credits claimed on the returns were refundable. Consequently, even taxpayers who report no federal tax liability could have received a refund up to the amount of the refundable credit claimed.

According to the complaint, over 99 percent of the 2,401 returns Branson has prepared since Jan. 1, 2009, sought a refund, and 97 percent of the 287 returns the IRS audited to date understated the customer’s tax liability by an average of $5,006. Given the number of returns Branson has prepared since 2009, the harm to the U.S. Treasury caused by her practices could be in the millions of dollars.

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. Kavivah Branson, etc.
Order Entering Permanent Injunction

Seven Colombian nationals were extradited to the United States to face charges relating to the kidnapping and murder of Drug Enforcement Administration (DEA) Special Agent James Terry Watson.

Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Dana J. Boente for 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 State Department’s Diplomatic Security Service (DSS) made the announcement.

“With the extradition of these suspects, we are one step closer to ensuring that justice is served for the kidnapping and murder of an American hero,” said Attorney General Holder. “Special Agent Watson gave his life in the service of his country. We owe him, and his family, a debt of gratitude we can never fully repay. The Justice Department will never waver in our commitment to ensure that those who commit acts of violence against our best and bravest can be caught and held accountable.”

“DEA Special Agent James ‘Terry’ Watson was a brave and talented special agent who represented everything good about federal law enforcement and our DEA family,” said DEA Administrator Leonhart. “We will never forget Terry’s sacrifice on behalf of the American people during his 13 years of service, nor will DEA ever forget the outstanding work of the Colombian National Police and our other law enforcement partners. Their efforts quickly led to the arrest and extradition of those accused of committing this heinous act.”

All of the defendants were indicted by a grand jury in the Eastern District of Virginia on July 18, 2013. Gerardo Figueroa Sepulveda, 39; Omar Fabian Valdes Gualtero, 27; Edgar Javier Bello Murillo, 27; Hector Leonardo Lopez, 34; Julio Estiven Gracia Ramirez, 31; and Andrés Alvaro Oviedo-Garcia, 22, were each charged with two counts of second degree murder, one count of kidnapping and one count of conspiracy to kidnap. Oviedo-Garcia was also charged with two counts of assault. Additionally, the grand jury indicted Wilson Daniel Peralta-Bocachica, 31, also a Colombian national, for his alleged efforts to destroy evidence associated with the murder of Special Agent Watson.

The defendants arrived in the United States on July 1, 2014, and made their initial appearance in federal court in Alexandria, Virginia, today before United States Magistrate Judge Thomas Rawles Jones Jr. A detention hearing is scheduled for July 9, 2014, before United States Magistrate Judge Ivan D. Davis.

According to the indictment, Figueroa, Valdes, Bello, Lopez, Gracia and Oviedo-Garcia were part of a kidnapping and robbery conspiracy that utilized taxi cabs in Bogotá, Colombia, to lure victims into a position where they could be attacked and robbed. Once an intended victim entered a taxi cab, the driver of the taxi cab would signal other conspirators to commence the robbery and kidnapping operation.

The indictment alleges that on June 20, 2013, while he was working for the U.S. Mission in Colombia, Special Agent Watson entered a taxi cab operated by one of the defendants. Special Agent Watson was then allegedly attacked by two other defendants – one who stunned Special Agent Watson with a stun gun and another who stabbed Special Agent Watson with a knife, resulting in his death.

On July 1, 2014, the Government of Colombia extradited the defendants to the United States.

This case was investigated by the FBI, DEA and DSS, including the Office of Special Investigations and the Regional Security Office at Embassy Bogatá, 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 Stacy Luck of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Michael P. Ben’Ary from 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.

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

Josh Jambon, 52, a resident of Grand Isle, Louisiana, pleaded guilty today in front of U.S. District Judge Susie Morgan to two counts of federal civil rights violations, announced Acting Assistant Attorney General Jocelyn Samuels for the Justice Department’s Civil Rights Division and U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.

In connection with his plea, Jambon admitted that he assaulted two female African-American Hurricane Isaac relief workers because of their race and because of their employment status. On Sept. 18, 2012, in Grand Isle, Jambon approached a work crew tasked with cleaning up debris from Hurricane Isaac. During an interaction with the work crew, Jambon used racial slurs against two female African-American crew members, M.R. and N.S. Jambon then approached N.S. and hit her in the face, because of her race and because of her employment with the work crew, then proceeded to assault M.R. in the same manner. When Jambon saw a third crew member, B.W., filming the incident on her cell phone, Jambon initiated a physical struggle with B.W. in an attempt to take her cell phone so that he could delete the video.

“Hate-fueled violence has no place in a civilized society,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Justice Department is committed to using all the tools in our law enforcement arsenal to prosecute acts motivated by racial bias.”

“By holding Mr. Jambon accountable for his racially-motivated criminal conduct, our office once again demonstrates its commitment to protecting the civil rights of all residents in Southeast Louisiana,” said U.S. Attorney Kenneth Allen Polite Jr. for the Eastern District of Louisiana.

For each count, Jambon faces a statutory maximum penalty of one year in prison, up to one year of supervised release, a $100,000 fine and a $25 special assessment.

The case is being investigated by special agents of the FBI.

The case is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division and Assistant U.S. Attorney Matt Chester for the Eastern District of Louisiana.

Teresa Floyd, of Phenix City, Alabama, was indicted for her alleged involvement in a stolen identity refund fraud scheme, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment.

Floyd has been charged with several counts of wire fraud and aggravated identity theft. According to the indictment, Floyd owned and operated a tax preparation business called T & L Tax Service that was located in Phenix City. Floyd obtained the means of identification of individuals and used those identities to file fraudulent income tax returns. In order to conceal her scheme, Floyd created fictitious identification documents and bills in the names of those individuals. The indictment also seeks to forfeit $320,397 from Floyd .

An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Floyd faces a statutory maximum sentence of 20 years in prison for each wire fraud count and a mandatory two year sentence for the aggravated identity theft counts. Floyd is also subject to fines, forfeiture and restitution if convicted.

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

Aaron H. Kelly, a U.S. Postal Service employee, pleaded guilty today in the U.S. District Court for the District of Maryland to aiding and assisting in filing a false tax return with the Internal Revenue Service (IRS), the Justice Department and IRS announced today. Kelly was indicted on Feb. 24, 2014, for allegedly engaging in a scheme to defraud the IRS, the Thrift Saving Plan and the Educational Systems Federal Credit Union by sending fictitious financial instruments to fraudulently extinguish the debts he owed to them, and for aiding in filing false tax returns with the IRS.

According to the plea agreement, in 2008, Kelly submitted a false individual income tax return for tax year 2006 to the IRS. On this tax return, Kelly falsely claimed that he had substantial federal income tax withheld, and fraudulently represented that he was entitled to a refund of $193,653. Sentencing is set for Feb. 2, 2015, where Kelly faces a statutory maximum sentence of three years in prison.

This case was investigated by special agents of the Treasury Inspector General for Tax Administration and IRS - Criminal Investigation. Trial Attorneys Ken Vert and Yael T. Epstein of the department’s Tax Division are prosecuting the case.

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

The United States has filed a complaint and the U.S. District Court for the Eastern District of New York has entered a consent decree against Mira Health Ltd. (Mira), its chief operating officer, Michael S. Ragno Sr., and its quality assurance manager, Michael S. Ragno Jr., all of Farmingdale, New York.

Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division and U.S. Attorney Loretta E. Lynch of the Eastern District of New York made the announcement.

The lawsuit alleges that the defendants violated the Federal Food, Drug and Cosmetic Act (FDCA) by manufacturing and distributing dietary supplements that were adulterated. Under the FDCA dietary supplement manufacturers are required have systems in place to ensure that their products meet specifications for identity, purity, strength and composition. The government’s actions resulted from a series of inspections of Mira’s manufacturing facility, which revealed, among other things, that Mira failed to ensure that components, dietary supplements, packaging and labels were not mixed-up, contaminated or deteriorated.

In conjunction with the filing of the complaint, the defendants agreed to settle the litigation and be bound by a consent decree of permanent injunction that prohibits them from committing violations of the FDCA. The consent decree requires the dietary supplement manufacturer to cease all operations and requires that if the defendants wish to resume manufacturing dietary supplements in the future, the FDA first must determine that Mira’s manufacturing practices have come into compliance with the law. The consent decree was entered by the court today.

Mira gained national attention in July 2013 when Purity First Health Ltd, a company that sold dietary supplements manufactured by Mira, became the subject of an FDA recall. Anabolic steroids were found to be present in the Healthy Life Chemistry By Purity B-50 dietary supplement. At the time of the recall, 29 illnesses and one hospitalization had been documented.

The FDA referred this matter to the Department of Justice. The Consumer Protection Branch of the Justice Department’s Civil Division together with the U.S. Attorney’s Office for the Eastern District of New York filed this case on behalf of the United States.

Related Materials:

Consent Decree
Complaint

Robert Walker, Charnesha Alexander and Ladonna Conley were indicted for their roles in a stolen identity refund fraud conspiracy, Deputy Assistant Attorney General Ronald A. Cimino of the Justice Department's Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama announced today following the unsealing of the indictment.

According to the indictment, between January 2011 and December 2013, the defendants ran an identity theft ring. The defendants obtained stolen identities from various sources to be used in filing false tax returns, including the identities of employees from a Columbus, Georgia, company. In order to file the false tax returns, the defendants obtained several electronic filing numbers in the names of tax businesses. On behalf of those tax businesses, the defendants applied for bank products from various financial institutions, which in turn mailed blank check stock and prepaid debit cards to the defendants. The defendants caused tax refunds to be dispersed through checks and prepaid treasury cards, and either cashed the fraudulent checks at several businesses located in Alabama and Georgia or deposited them into their bank accounts.

An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, each defendant faces a statutory maximum potential sentence of 10 years in prison for the conspiracy charge, a statutory maximum potential sentence of 20 years in prison for each wire fraud count and a mandatory two year sentence for each aggravated identity theft count. The defendants are also subject to fines, forfeiture and mandatory restitution if convicted.

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

A Detroit-area physician pleaded guilty today for his role in a $7 million health care 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 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.

Walayat Khan, 66, of Ypsilanti, Michigan pleaded guilty before U.S. District Judge Paul D. Borman in the Eastern District of Michigan to one count of conspiracy to commit health care fraud. Sentencing is scheduled for Oct. 7, 2014.

According to court documents, beginning in January 2009, Dr. Khan and others agreed that he would refer Medicare beneficiaries to Advance Home Health Care Services, Inc. (Advance HHC), Perfect Home Health Care Services, LLP (Perfect HHC), and other Detroit-area home health care agencies for medically unnecessary home health services. Dr. Khan signed medical documents, such as home health care certifications and plans of care for these beneficiaries, falsely certifying that they required home health care and they were under his care. Advance HHC, Perfect HHC, and other home health care agencies then used Dr. Khan’s false documents to support their claims to Medicare for home health services—including physical therapy services—that were never rendered and/or not medically necessary. Dr. Khan knew the medical documents he signed for his co-conspirators would be used to support false claims to Medicare.

Additionally, in exchange for signing the home health care documents, Dr. Khan received and accepted cash kickbacks and other forms of payment from home health agency owners, and Dr. Kahn paid kickbacks to a doctor in exchange for that doctor falsely certifying patients for home health care that would be billed to Medicare.

As further alleged in court documents, Dr. Khan used patient recruiters to recruit Medicare beneficiaries to his practice. Dr. Khan and one recruiter agreed that the recruiter would refer Medicare beneficiaries to Dr. Khan in exchange for Dr. Khan writing controlled substance prescriptions for the beneficiaries and paying cash to the recruiter. Another recruiter transported patients to Dr. Khan’s medical practice so that Dr. Khan would write the patients medically unnecessary prescriptions for controlled substances, bill Medicare for physician services purportedly provided to the patients, and refer the patients for medically unnecessary home health care services at Advance HHC, Perfect HHC, and other home health care agencies.

Dr. Khan billed Medicare and caused Medicare to be billed for medically unnecessary controlled substances, physician services, and home health services. These false and fraudulent claims to Medicare totaled approximately $6,123,044.28 in billings, of which $5,504,733.31 was paid.

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 Special Trial Attorney Katie R. Fink and Trial Attorney Patrick J. Hurford of the Fraud Section.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,900 defendants who have collectively billed the Medicare program for more than $6 billion. In addition, HHS’s Centers for Medicare and Medicaid Services, working in conjunction with 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 .

The Department of Justice announced today that it will be co-hosting the historic program and celebration, “The 50 th Anniversary of the Civil Rights Act of 1964: Preserving Progress, Charting the Future,” with Howard University on July 15, 2014. Signed into law by President Lyndon B. Johnson on July 2, 1964, the groundbreaking act outlawed discriminatory voting requirements and segregation in schools, employment and places of public accommodation. Attorney General Eric Holder has made protecting civil rights a top priority of his administration of the Department of Justice.

The long road to passage of the Civil Rights Act of 1964 was paved with the footsteps of countless ordinary Americans and well-known civil rights leaders who marched, held sit-ins, staged boycotts and led freedom rides to end segregation and discrimination. The call for comprehensive civil rights legislation gained momentum in 1963, as civil rights activists continued to organize peaceful demonstrations throughout the country. After hundreds of nonviolent protestors were met with police violence and arrest in Birmingham, Alabama, President John F. Kennedy delivered a nationally televised speech voicing his support for comprehensive civil rights legislation. After President Kennedy’s assassination in November 1963, President Lyndon B. Johnson made a commitment to pursue passage of civil rights legislation. And after the longest debate in senate history, the Civil Rights Act was finally passed and signed into law, becoming the first of many legislative victories over the next 50 years that have been critical tools for protecting civil rights.

The speakers and participants at the 50th anniversary program at Howard University will honor the strides that have been made in the journey for equal rights, and look to the work that remains to fully realize that promise. In addition to Howard University Interim President Dr. Wayne A.I. Frederick and the keynote address by Attorney General Holder, the program will include remarks from Secretary of Education Arne Duncan and Secretary of Labor Tom Perez, who lead two of the Department of Justice’s key government partners in enforcing the Civil Rights Act. Ambassador Andrew Young, former leader of the Southern Christian Leadership Conference will also deliver remarks. Charlayne Hunter-Gault will moderate a roundtable discussion titled “The Impact of the Civil Rights Act of 1964,” featuring civil rights movement veterans and scholars including Howard University School of Law Associate Dean for Academic Affairs Lisa A. Crooms-Robinson, Julian Bond, Joan Trumpauer Mulholland, Todd Purdum and Helen Zia. Congresswoman Eleanor Holmes Norton will deliver the event’s closing remarks.

The event will include a temporary display of original pages from the Civil Rights Act of 1964, on loan by the United States Archives. The display will be available for viewing prior to the program beginning at 9 a.m. in the lower level of Cramton Auditorium.

A limited number of tickets for the celebration are available to the public, which will also include performances by the Howard University Choir and the Gay Men’s Chorus of Washington, D.C., as well as readings and videos commemorating the act. Tickets are available, starting today, at the Cramton Auditorium Box Office on the Campus of Howard University on a first come, first served basis. Media registration details will be provided at a later date.

The Department of Justice today announced the filing of a civil lawsuit against Laclede Inc. and its president, Michael A. Pellico, seeking to stop the distribution of over-the-counter vaginal drug products that the company makes and sells nationwide.

The lawsuit, filed on June 25, 2014, in the United States District Court for the Central District of California, seeks a permanent injunction against the defendants for the sale and distribution of four drugs: Luvena Prebiotic Vaginal Moisturizer and Lubricant; Luvena Prebiotic Enhanced Personal Lubricant; Luvena Prebiotic Feminine Wipes; and Luvena Prebiotic Daily Therapeutic Wash (Luvena Products).

According to the allegations in the complaint, the sale and distribution of the Luvena Products, which are manufactured by the company in its Rancho Dominguez, California, facility, violate various provisions of the federal Food, Drug, and Cosmetic Act.

The Act generally prohibits the distribution into interstate commerce of any drug for which the U.S. Food and Drug Administration (FDA) has not given approval. Moreover, the Act prohibits the distribution of drugs that are misbranded, including drugs that fail to comply with FDA labeling regulations for over the counter drugs.

According to the complaint, since 2010, Laclede has sold one or more of the Luvena Products without the required FDA approval. Furthermore, the complaint charges that the company has made unapproved claims that the products treat or prevent vaginal infections, including claims that have appeared on the company’s web sites, Facebook page, and Twitter feed.

The complaint alleges that since 2010, the FDA has repeatedly warned the defendants ¯ including through letters, emails, inspections and meetings ¯ that they must obtain FDA approval before distributing one or more of the Luvena Products. Nevertheless, according to the complaint, the products were being distributed illegally as recently as March 2014.

The lawsuit was filed by the Justice Department Civil Division’s Consumer Protection Branch, in Washington, D.C., and is being handled by David A. Frank. Assistance for this matter is being provided by Yen Hoang of the FDA’s Office of Chief Counsel in Silver Spring, Maryland.

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Benjamin David Curell, 28, of Ellettsville, Indiana, pleaded guilty in federal court today to one count of violating the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to damage the property of a reproductive health services facility because of the services offered there. The plea stems from an incident that occurred during the early morning hours on April 11, 2013, when Curell broke into the Bloomington, Indiana, Planned Parenthood Clinic and caused extensive damage to the clinic building and its equipment.

Curell was sentenced by Magistrate Judge Mark Dinsmore to three years probation. Curell was also ordered to pay more than $22,000 in restitution. Curell’s federal sentence is to run concurrently with a sentence he received in state court on a felony burglary charge stemming from the same incident.

At the time of his arrest, Curell admitted to police that he broke into the clinic and damaged equipment with a hatchet because the clinic performed abortion services, and because Curell wanted to shut down the clinic.

“The Justice Department will not tolerate violent interference with the lawful work of reproductive health clinics,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The Department of Justice remains committed to protecting our communities from such violent acts and will continue to aggressively prosecute these acts.”

The case was investigated by the Bloomington Resident Agency of the FBI and the Bloomington Police Department. The case was prosecuted by Trial Attorney Sanjay Patel of the Civil Rights Division and Assistant U.S. Attorney Sharon Jackson for the Southern District of Indiana.

U.S. Bank has agreed to pay the United States $200 million to resolve allegations that it violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today.

“By misusing government programs designed to maintain and expand homeownership, U.S. Bank not only wasted taxpayer funds, but inflicted harm on homeowners and the housing market that lasts to this day,” said Assistant Attorney General for the Justice Department’s Civil Division Stuart F. Delery. “As this settlement shows, we will continue to hold accountable financial institutions that violate the law by pursuing their own financial interests at the expense of hardworking Americans.”

“U.S. Bank ignored certain lending requirements causing substantial losses to taxpayers,” said United States Attorney for the Northern District of Ohio Steven M. Dettelbach. “This settlement demonstrates that the Department of Justice will not permit lenders to play fast and loose with the rules and stick the American people with their significant tab.”

“U.S. Bank’s lax mortgage underwriting practices contributed to home foreclosures across the country,” said United States Attorney for the Eastern District of Michigan Barbara L. McQuade. “This settlement recovers funds for taxpayers and demonstrates that lenders will be held accountable for engaging in irresponsible lending practices.”

During the time period covered by the settlement, U.S. Bank participated as a direct endorsement lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and certify mortgages for FHA insurance. If a loan certified for FHA insurance later defaults, the holder of the loan may submit an insurance claim to the U.S. Department of Housing and Urban Development (HUD), FHA’s parent agency, for the losses resulting from the defaulted loan. Because FHA does not review a loan before it is endorsed for FHA insurance, FHA requires a DEL to follow program rules designed to ensure that the DEL is properly underwriting and submitting mortgages for FHA insurance.

As part of the settlement, U.S. Bank admitted that, from 2006 through 2011, it repeatedly certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements. U.S. Bank also admitted that its quality control program did not meet FHA requirements, and as a result, it failed to identify deficiencies in many of the loans it had certified for FHA insurance, failed to self-report many deficient loans to HUD, and failed to take the corrective action required under the program. U.S. Bank further acknowledged that its conduct caused FHA to insure thousands of loans that were not eligible for insurance and that the FHA suffered substantial losses when it later paid insurance claims on those loans.

“This substantial recovery on behalf of the Federal Housing Administration should serve as a vivid reminder of the potential consequences of not following HUD program rules, and the diligence with which we will pursue those that violate them, particularly where lenders such as U.S. Bank take actions to compromise the insurance fund,” said David A. Montoya, Inspector General of the Department of Housing and Urban Development.

“We are gratified that U.S. Bank has agreed to put this matter behind it, and we want to thank the Department of Justice and HUD’s Office of Inspector General for all of their efforts in helping us make this settlement a reality,” said Damon Smith, Acting General Counsel for the U.S. Department of Housing and Urban Development. “This settlement underscores our consistent message that following Federal Housing Administration rules for underwriting FHA-insured loans is a requirement, not an option.”

The agreement resolves potential violations of federal law based on U.S. Bank’s deficient origination of FHA insured mortgages. The agreement does not prevent state and federal authorities from pursuing enforcement actions for other origination conduct by U.S. Bank, or for any servicing or foreclosure conduct, including civil enforcement actions against U.S. Bank for violations of the CFPB’s new mortgage servicing rules that took effect on Jan. 10, 2014. U.S. Bank is a banking services company headquartered in Cincinnati, Ohio, and a wholly owned subsidiary of U.S. Bancorp, a bank holding company headquartered in Minneapolis, Minnesota.

The settlement was the result of a joint investigation conducted by HUD, its Office of Inspector General, the Civil Division of the Department of Justice, and the United States Attorney’s Offices for the Northern District of Ohio and the Eastern District of Michigan.

The settlement is part of enforcement efforts by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information about the task force, visit: www.stopfraud.gov .

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Dante Phearse, 33, was sentenced today by U.S. District Judge Kenneth M. Hoyt to serve 33 months in prison for calling in a bomb threat to Congregation Beth Israel, a synagogue in Houston. The announcement is being made jointly by the Department of Justice’s Civil Rights Division and the U.S. Attorney’s Office for the Southern District of Texas. Phearse was further ordered to pay $13,000 in restitution and will serve three years of supervised release following completion of his prison term.

On April 28, 2014, Phearse pleaded guilty to the civil rights violation of threatening to bomb a synagogue and to making a telephone bomb threat. As part of his plea, Phearse admitted that on April 30, 2013, he willfully obstructed members of Congregation Beth Israel from enjoying the free exercise of their religious beliefs by threat of force with an explosive device. Phearse also admitted to using an instrument of interstate commerce to communicate a threat to kill and injure people and to destroy a building by means of an explosive device.

As a result of Phearse’s threats, the school at Congregation Beth Israel was closed for a day and extra security was hired to guard the synagogue and school, thus obstructing the synagogues’ members in the enjoyment of the free exercise of their religious beliefs.

The FBI investigated the case with the assistance of the Houston Police Department. Trial Attorneys Nicholas Murphy and Saeed Mody of the Civil Rights Division and Assistant U.S. Attorneys Ruben Perez and Joe Magliolo are prosecuting in cooperation with the Harris County District Attorney’s Office.

An executive of Japan-based Denso Corp. has agreed to plead guilty and to serve one year and one day in a U.S. prison in connection with the Antitrust Division’s investigation into a conspiracy to fix the prices of instrument panel clusters, also known as meters, installed in cars sold in the United States and elsewhere, the Department of Justice announced today.

A one-count felony charge was filed on June 27, 2014, in the U.S. District Court for the Eastern District of Michigan in Detroit against Satoru Horisaki, a group leader in Denso’s Utsunomiya Branch Office. According to the charge, Horisaki, a Japanese national, participated in the conspiracy from in or about 2009 to in or about February 2010, by agreeing upon bids and prices for, and allocating the supply of, automotive instrument panel clusters sold to Honda of America Manufacturing Co. Inc., in the United States and elsewhere. In addition to the prison sentence, Horisaki has agreed to pay a $20,000 criminal fine and to cooperate with the department’s ongoing investigation. The plea agreement will be subject to court approval.

“This charge is the latest effort by the Antitrust Division to hold executives accountable for engaging in anticompetitive conspiracies that do real harm to the U.S. economy,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program. “The conspirators undermined a competitive bidding process by meeting to discuss and agree on price quotations.”

Instrument panel clusters are the mounted array of instruments and gauges housed in front of the driver of an automobile.

In March 2012, Denso pleaded guilty and was sentenced to pay a $78 million criminal fine for its role in conspiracies to fix the prices of heater control panels and electronic control units. Horisaki is the sixth Denso executive to be convicted in the Antitrust Division’s investigation into the automotive parts industry.

To date, 36 individuals, including Horisaki, have been charged in the department’s ongoing investigation into price fixing and bid rigging in the auto parts industry. Additionally, 27 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of over $2.3 billion in fines.

Horisaki is charged with price fixing in violation of the Sherman Act, which carries a maximum sentence of 10 years in prison and a $1 million criminal fine for individuals. The maximum fine for an individual 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.

The charges announced today arose from an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by each of the Antitrust Division’s criminal enforcement sections and the FBI. This case was brought by the Washington Criminal I Section and the San Francisco Office of the Antitrust Division, with the assistance of the Detroit Field Office of the FBI. Anyone with information concerning the focus of this investigation 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 Detroit Field Office of the FBI at 313-965-2323.

According to court documents submitted today, BNP Paribas S.A. (BNPP), a global financial institution headquartered in Paris, agreed to enter a guilty plea to conspiring to violate the International Emergency Economic Powers Act (IEEPA) and the Trading with the Enemy Act (TWEA) by processing billions of dollars of transactions through the U.S. financial system on behalf of Sudanese, Iranian, and Cuban entities subject to U.S. economic sanctions. The agreement by the French bank to plead guilty is the first time a global bank has agreed to plead guilty to large-scale, systematic violations of U.S. economic sanctions.

The announcement was made by Attorney General Eric H. Holder, Deputy Attorney General James M. Cole, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara for the Southern District of New York, FBI Director James B. Comey, Chief Richard Weber of the Internal Revenue Service Criminal Investigation (IRS-CI) and District Attorney Cyrus R. Vance Jr. of New York County.

“BNP Paribas went to elaborate lengths to conceal prohibited transactions, cover its tracks, and deceive U.S. authorities. These actions represent a serious breach of U.S. law,” Attorney General Holder said. “Sanctions are a key tool in protecting U.S. national security interests, but they only work if they are strictly enforced. If sanctions are to have teeth, violations must be punished. Banks thinking about conducting business in violation of U.S. sanctions should think twice because the Justice Department will not look the other way.”

“BNP ignored US sanctions laws and concealed its tracks. And when contacted by law enforcement it chose not to fully cooperate,” Deputy Attorney General Cole said. “This failure to cooperate had a real effect -- it significantly impacted the government’s ability to bring charges against responsible individuals, sanctioned entities and satellite banks. This failure together with BNP’s prolonged misconduct mandated the criminal plea and the nearly $9 billion penalty that we are announcing today.”

“By providing dollar clearing services to individuals and entities associated with Sudan, Iran, and Cuba – in clear violation of U.S. law – BNPP helped them gain illegal access to the U.S. financial system,” said Assistant Attorney General Caldwell. “In doing so, BNPP deliberately disregarded U.S. law of which it was well aware, and placed its financial network at the services of rogue nations, all to improve its bottom line. Remarkably, BNPP continued to engage in this criminal conduct even after being told by its own lawyers that what it was doing was illegal.”

“BNPP banked on never being held to account for its criminal support of countries and entities engaged in acts of terrorism and other atrocities,” said U.S. Attorney Bharara. “But that is exactly what we do today. BNPP, the world's fourth largest bank, has agreed to plead guilty and pay penalties of almost $9 billion for performing the hat trick of sanctions violations, unlawfully opening the doors of the U.S. financial markets to three sanctioned countries, Sudan, Iran, and Cuba. For years, BNPP provided access to billions of dollars to these sanctioned countries, as well as to individuals and groups specifically identified and designated by the U.S. government as being subject to sanctions. The bank did so deliberately and secretly, in ways designed to evade detection by the U.S. authorities. For its years-long and wide-ranging criminal conduct, BNPP will soon plead guilty in a federal courthouse in Manhattan.”

According to documents released publicly today, over the course of eight years, BNPP knowingly and willfully moved more than $8.8 billion through the U.S. financial system on behalf of sanctioned entities, including more than $4.3 billion in transactions involving entities that were specifically designated by the U.S. Government as being cut off from the U.S. financial system. BNPP engaged in this criminal conduct through various sophisticated schemes designed to conceal from U.S. regulators the true nature of the illicit transactions. BNPP routed illegal payments through third party financial institutions to conceal not only the involvement of the sanctioned entities but also BNPP’s role in facilitating the transactions. BNPP instructed other financial institutions not to mention the names of sanctioned entities in payments sent through the United States and removed references to sanctioned entities from payment messages to enable the funds to pass through the U.S. financial system undetected.

“The significant financial penalties imposed on BNP Paribas sends a powerful deterrent message to any company that places its profits ahead of its adherence to the law,” said FBI Director James Comey. “We will continue to work closely with our federal and state partners to ensure compliance with U.S. banking laws to promote integrity across financial institutions and to safeguard our national security.”

“Today’s outcome is a testament to U.S. efforts to stem the exploitation of the American financial system and ensure that if you chose to do business in our country you must abide by our laws,” said IRS-CI Chief Weber. “BNP Paribas will forfeit the historic figure of almost $8.9 Billion representing the proceeds of criminal activity. BNPP had many opportunities to take corrective action and abide by the law, and yet, despite warnings from American regulators and other banks, consciously chose to ignore those warnings and commit literally thousands of flagrant violations. IRS-CI, and our domestic and international law enforcement partners, will continue to pursue these cases and follow the money trail – wherever it may lead.”

“The most important values in the international community – respect for human rights, peaceful coexistence, and a world free of terror – significantly depend upon the effectiveness of international sanctions,” said District Attorney Vance. “Today’s guilty plea marks the seventh major case involving sanctions violations by a large international bank that my Office has pursued and resolved since 2009. These cases are critically important for international public safety and the security of our banking system, which is put at risk when it is used to further criminal activity. The seven investigations have revealed a series of widespread schemes to falsify the business records of financial institutions in Manhattan and have resulted in the forfeiture of approximately $12 billion in total. But, more importantly, they have resulted in a fundamental change in the way all banks conduct their business, have heightened vigilance worldwide with respect to dealing with sanctioned entities, and have increased the integrity of our Manhattan-based financial institutions.”

BNPP will waive indictment and be charged in a one-count felony criminal information, filed in federal court in the Southern District of New York, charging BNPP with knowingly and willfully conspiring to commit violations of IEEPA and TWEA, from 2004 through 2012. BNPP has agreed to plead guilty to the information, has entered into a written plea agreement, and has accepted responsibility for its criminal conduct. BNPP is scheduled to formally enter its guilty plea before United States District Judge Lorna Schofield on July 9, 2014 at 4:30 p.m.

The plea agreement, subject to approval by the court, provides that BNPP will pay total financial penalties of $8.9736 billion, including forfeiture of $8.8336 billion and a fine of $140 million.

In addition to the joint forfeiture judgment, the New York County District Attorney’s Office is also announcing today that BNPP has pleaded guilty in New York State Supreme Court to falsifying business records and conspiring to falsify business records. In addition, the Board of Governors of the Federal Reserve System is announcing that BNPP has agreed to a cease and desist order, to take certain remedial steps to ensure its compliance with U.S. law in its ongoing operations, and to pay a civil monetary penalty of $508 million. The New York State Department of Financial Services (DFS) is announcing BNPP has agreed to, among other things, terminate or separate from the bank 13 employees, including the Group Chief Operating Officer and other senior executives; suspend U.S. dollar clearing operations through its New York Branch and other affiliates for one year for business lines on which the misconduct centered; extend for two years the term of a monitorship put in place in 2013, and pay a monetary penalty to DFS of $2.2434 billion. In satisfying its criminal forfeiture penalty, BNPP will receive credit for payments it is making in connection with its resolution of these related state and regulatory matters. The Treasury Department’s Office of Foreign Assets Control has also levied a fine of $963 million, which will be satisfied by payments made to the Department of Justice.

According to documents released publicly today, including a detailed statement of facts admitted to by BNPP, BNPP has acknowledged that, from at least 2004 through 2012, it knowingly and willfully moved over $8.8 billion through the U.S. financial system on behalf of Sudanese, Iranian and Cuban sanctioned entities, in violation of U.S. economic sanctions. The majority of illegal payments were made on behalf of sanctioned entities in Sudan, which was subject to U.S. embargo based on the Sudanese government’s role in facilitating terrorism and committing human rights abuses. BNPP processed approximately $6.4 billion through the United States on behalf of Sudanese sanctioned entities from July 2006 through June 2007, including approximately $4 billion on behalf of a financial institution owned by the government of Sudan, even as internal emails showed BNPP employees expressing concern about the bank’s assisting the Sudanese government in light of its role in supporting international terrorism and committing human rights abuses during the same time period. Indeed, in March 2007, a senior compliance officer at BNPP wrote to other high-level BNPP compliance and legal employees reminding them that certain Sudanese banks with which BNPP dealt “play a pivotal part in the support of the Sudanese government which . . . has hosted Osama Bin Laden and refuses the United Nations intervention in Darfur.”

One way in which BNPP processed illegal transactions on behalf of Sudanese sanctioned entities was through a sophisticated system of “satellite banks” set up to disguise both BNPP’s and the sanctioned entities’ roles in the payments to and from financial institutions in the United States. As early as August 2005, a senior compliance officer at BNPP warned several legal, business and compliance personnel at BNPP’s subsidiary in Geneva that the satellite bank system was being used to evade U.S. sanctions: “As I understand it, we have a number of Arab Banks (nine identified) on our books that only carry out clearing transactions for Sudanese banks in dollars. . . . This practice effectively means that we are circumventing the US embargo on transactions in USD by Sudan.”

Similarly, BNPP provided Cuban sanctioned entities with access to the U.S. financial system by hiding the Cuban sanctioned entities’ involvement in payment messages. From October 2004 through early 2010, BNPP knowingly and willfully processed approximately $1.747 billion on behalf of Cuban sanctioned entities. In the statement of facts, BNPP admitted that it continued to do U.S. dollar business with Cuba long after it was clear that such business was illegal in order to preserve BNPP’s business relationships with Cuban entities. BNPP further admitted that its conduct with regard to the Cuban embargo was both “cavalier” and “criminal,” as evidenced by the bank’s 2006 decision, after certain Cuban payments were blocked when they reached the United States, to strip the wire messages for those payments of references to Cuban entities and resubmit them as a lump sum in order to conceal from U.S. regulators the bank’s longstanding, and illicit, Cuban business.

Further according to court documents, BNPP engaged in more than $650 million of transactions involving entities tied to Iran, and this conduct continued into 2012 – nearly two years after the bank had commenced an internal investigation into its sanctions compliance and had pledged to cooperate with the Government. The illicit Iranian transactions were done on behalf of BNPP clients, including a petroleum company based in Dubai that was effectively a front for an Iranian petroleum company, and an Iranian oil company.

This case was investigated by the IRS-Criminal Investigation’s Washington Field Division and FBI’s New York Field Office. This case is being prosecuted by the Money Laundering and Bank Integrity Unit of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS), and the Money Laundering and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Southern District of New York. Trial Attorneys Craig Timm and Jennifer E. Ambuehl of AFMLS and Assistant United States Attorneys Andrew D. Goldstein, Martin S. Bell, Christine I. Magdo and Micah W.J. Smith of the Southern District of New York are in charge of the prosecution.

The New York County District Attorney’s Office also conducted its own investigation alongside with the Department of Justice on this investigation. The Department of Justice expressed its gratitude to the Board of Governors of the Federal Reserve, the Federal Reserve Bank of New York, the New York State Department of Financial Services and the Treasury Department’s Office of Foreign Assets Control for their assistance with this matter.

Documents associated with this press release are available at: http://www.justice.gov/opa/bnp-paribas.html