District Not Recorded

The owner and operator of a Houston area ambulance company was sentenced today to serve 97 months in prison for her role in a $2.4 million Medicare fraud scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Carlos J. Barron of the FBI’s Houston Field Office, Special Agent in Charge Mike Fields of the Dallas Regional Office of HHS’s Office of Inspector General (HHS-OIG) and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.

Gwendolyn Climmons-Johnson, 54, was convicted by a federal jury in Houston, Texas, on Oct. 30, 2013, of one count of conspiracy to commit health care fraud and four counts of health care fraud. In addition to the prison sentence, Climmons-Johnson was also sentenced to serve three years of supervised release and ordered to pay $972,132 in restitution.

According to evidence presented at trial, Climmons-Johnson was the owner and operator of Urgent Response EMS, a Texas-based entity that purportedly provided non-emergency ambulance services to Medicare beneficiaries in the Houston area. The evidence showed that from January 2010 through December 2011, Climmons-Johnson and others conspired to enrich themselves by submitting false and fraudulent claims to Medicare for ambulance services that were medically unnecessary and/or not provided. Climmons-Johnson, who controlled the day-to-day operations of Urgent Response, submitted, and caused to be submitted, approximately $2.4 million in fraudulent ambulance service claims to Medicare.

At trial, the evidence showed that patient records had been falsified and the Medicare beneficiaries for whom Climmons-Johnson had billed ambulance services did not need ambulance services and were not in the condition stated in the records.

The case was investigated by the FBI, HHS-OIG and Texas MFCU and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. The case was prosecuted by Trial Attorney Christopher Cestaro and Assistant Chief Laura M.K. Cordova 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 nearly 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, 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 .

WASHINGTON -- Un tribunal federal EN Fresno, California ha prohibido en forma permanente a Ken Mendoza y Alice Mendoza preparar declaraciones de impuestos federales para terceros, anunció hoy el Departamento de Justicia. Ken Mendoza y Alice Mendoza, quienes funcionaban bajo el nombre comercial "Mendoza Business Services" en Fresno, consitieron a la orden de interdicto civil firmada por el Juez Federal de Distrito J. O'Neill en el Tribunal Federal de Distrito para el Distrito Este de California.

De acuerdo con la demanda, los Mendoza declaran indebidamente las obligaciones de impuestos federales de sus clientes al inventar gastos, pedir créditos falsos o exagerados, especialmente créditos educativos, y deducir gastos personales de sus clientes. En total, la demanda alega que la pérdida para el Tesoro de EE.UU. debido a las actividades de los Mendoza podría ser de hasta 2.8 millones de dóalres para los años fiscales 2010 a 2011. La demanda también alega que muchos de los clientes de los Mendoza podrían deber impuestos adicionales, intereses y multas debido a declaraciones preparadas indebidamente.

Además de prohibir a los Mendoza la preparación o presentación de declaraciones de impuestos federales para terceros, el tribunal también prohibió la preparación o presentación de declaraciones de impuestos federales a cualquiera que actúe en conjunto con los Mendoza, y prohibió a los Mendoza de solicitar o encauzar la preparación de declaraciones de impuestos federales para terceros. El tribunal exigió que los Mendoza se comunicaran con todas las personas para las que prepararon una declaración de impuestos federales desde el 1° de enero de 2008, para informar a dichas personas del interdicto permanente contra ellos.

El fraude de preparación de declaraciones de impuestos es uno de los ardides de la Docena sucia de ardides tributarios de 2013 del Servicio de Impuestos Internos [Internal Revenue Service (IRS)]. El IRS tiene algunos consejos en su portal en Internet para la elección de un preparador de impuestos. En la última década, la División de Impuestos ha obtenido interdictos contra cientos de preparadores de impuestos inescrupulosos. Se puede encontrar información sobre estos casos en el portal del Departamento de Justicia. Se encuentra una lista alfabética de personas prohibidas de preparar declaraciones de impuestos y promover ardides tributarios en esta página. Si usted cree que una de las personas o empresas bajo prohibición puede estar violando un interdicto, por favor comuníquese con la División de Impuestos para proveer detalles.

Marcel Lehel Lazar, 42, of Arad, Romania, also known as the hacker “Guccifer,” was indicted by a federal grand jury today on charges of wire fraud, unauthorized access to a protected computer, aggravated identity theft, cyberstalking and obstruction of justice.

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 Edward Lowery of the United States Secret Service Criminal Investigative Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Principal Deputy Assistant Secretary Bill A. Miller of the U.S. Department of State Bureau of Diplomatic Security made the announcement .

According to the indictment, from December 2012 to January 2014, Lazar hacked into the email and social media accounts of high-profile victims, including a family member of two former U.S. presidents, a former U.S. Cabinet member, a former member of the U.S. Joint Chiefs of Staff and a former presidential advisor. After gaining unauthorized access to their email and social media accounts, Lazar publicly released his victims’ private email correspondence, medical and financial information, and personal photographs. The indictment also alleges that in July and August 2013, Lazar impersonated a victim after compromising the victim’s account.

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

This case was investigated by United States Secret Service, the FBI’s Washington Field Office and the U.S. Department of State Bureau of Diplomatic Security, with assistance from the Romanian National Police . The case is being prosecuted by Trial Attorney Peter V. Roman of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Ryan K. Dickey of the Eastern District of Virginia. The Criminal Division’s Office of International Affairs provided assistance.

The Justice Department reached an agreement today with Commercial Cleaning Systems, a janitorial services company with headquarters in Denver. The agreement resolves claims that the company discriminated against work-authorized non-U.S. citizens in violation of the Immigration and Nationality Act (INA).

The department’s investigation was initiated based on a referral from U.S. Citizenship and Immigration Services. The investigation found that Commercial Cleaning Systems required work-authorized non-U.S. citizens to present specific documentation issued by the U.S. Department of Homeland Security in order to verify their employment eligibility, while U.S. citizens were permitted to present their choice of documentation. The INA’s anti-discrimination provision prohibits employers from placing additional documentary burdens on work-authorized employees during the hiring and employment eligibility verification process based on their citizenship status or national origin.

Under the settlement agreement, Commercial Cleaning Systems will pay $53,500 in civil penalties, create a $25,000 back pay fund to compensate individuals who may have lost wages as a result of the company’s discriminatory document practices, and be subject to monitoring of its employment eligibility verification practices for one year.

“Discriminating against work-authorized employees because they are not citizens violates federal law and the Justice Department is committed to enforcing this law,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “We applaud Commercial Cleaning Systems for working cooperatively with the division to resolve this matter.”

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA. The statute also prohibits, among other things, citizenship status and national origin discrimination in hiring, firing and recruitment or referral for a fee. The case was handled by OSC Trial Attorney Linda White Andrews.

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

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

WASHINGTON - A joint investigation between the National Oceanic and Atmospheric Administration (NOAA), the United States Coast Guard (USCG), and Interpol Washington (U.S. National Central Bureau) has led to the publication of the first-ever Interpol Purple Notice issued by the United States for a vessel believed to be engaged in illegal fishing activities.

According to the Purple Notice, the fishing vessel named 'Stellar' was sighted twice in May 2014 operating on the high seas of the North Pacific Ocean by the USCG. It appears to change its name, national registration and other identifying characteristics in order to hide illegal activity. 'Stellar' is suspected of engaging in illicit fisheries transshipment activities near the Russian Exclusive Economic Zone.

'Stellar' was last known to have arrived in the port of Busan, Korea on June 3, 2014. The USCG provided information to the Korean authorities regarding the suspicious activities of 'Stellar' and recommended the vessel be inspected for potential violations.

“Illegal fisheries activity has a wide-ranging impact on the health and sustainability of the oceans fish stocks,” said Bruce Buckson, Director of NOAA's Office of Law Enforcement. “We're pleased to be working with Interpol, its member agencies, and the U.S. Coast Guard to combat this type of activity. We expect this international effort will help level the playing field for U.S. domestic fishers.”

“I commend NOAA, the USCG and Interpol Washington's Economic Crimes Division representatives for their extraordinary efforts, collaboration and partnership during this investigation which has resulted in the first Interpol Purple Notice issued by U.S. law enforcement authorities,” stated Interpol Washington Director Shawn A. Bray.

The United States wishes to make all 189 other Interpol member countries aware of the suspected illegal operations of the fishing vessel 'Stellar' (also known as 'Sungari'). By raising awareness of this vessel's operations, member countries will be able to investigate possible violations of their laws and take appropriate enforcement measures should the vessel attempt to operate illegally in their waters or ports, or under their national jurisdiction.

Pamela Morris, former secretary of a chapter of the Ku Klux Klan (KKK) in Ozark, Alabama, pleaded guilty today to committing perjury during a grand jury’s investigation into a racially motivated cross-burning in the U.S. District Court for the Middle District of Alabama.

Morris, 46, admitted in plea documents that on Feb. 20, 2013, she lied to a federal grand jury looking into a cross-burning committed by Steven Joshua Dinkle, Morris’s son and the leader of the local KKK, and Thomas Smith, another KKK member. On May 8, 2009, Dinkle and Smith burned a six-foot tall cross at the entrance to an African-American neighborhood in Ozark to threaten and intimidate residents. In sworn testimony before the grand jury, Morris made several false statements, including denying that she had been the secretary of the chapter or involved with the KKK at all.

In pleading guilty, Morris admitted that she had been an officer of the KKK and that her testimony denying any connection to the organization was false. She further acknowledged that she knew Dinkle had committed the cross-burning. In addition, Morris admitted that she testified falsely to prevent the grand jury from learning about other KKK members who had information relevant to the investigation.

A sentencing date has not yet been scheduled. Morris faces a statutory maximum sentence of five years in prison and a $250,000 fine.

Dinkle pleaded guilty on Feb. 3, 2014, to hate crime and obstruction of justice charges related to the cross-burning. On May 15, 2014, he was sentenced to serve 24 months in prison. Smith, Dinkle’s co-conspirator, pleaded guilty to conspiracy to interfere with housing rights on Dec. 6, 2013. He is scheduled to be sentenced on Aug. 19, 2014.

“Defendant Morris lied under oath blatantly and repeatedly to hinder an investigation into a cross-burning that was committed to intimidate an entire community,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department will continue to hold accountable not only those who commit such acts of violence, but also those who lie and obstruct the investigation into these crimes of intimidation.”

“Ms. Morris lied to the grand jury in an attempt to protect herself and to protect a cross burner,” said U.S. Attorney George L. Beck Jr. for the Middle District of Alabama. “When someone testifies in court they swear to tell the truth. Unfortunately, Ms. Morris lied. For our system of justice to protect the rights of all, those who testify before the grand jury must provide accurate and honest information. If someone fails to tell the truth while under oath, we will prosecute them.”

This case is being investigated by the FBI with the assistance of the Dale County Sheriff’s Office and the Ozark Police Department. The case is being prosecuted by Assistant U.S. Attorney Jerusha T. Adams of the Middle District of Alabama and Trial Attorney Chiraag Bains of the Civil Rights Division.

A federal court in Fresno, California, has permanently barred Ken Mendoza and Alice Mendoza from preparing federal tax returns for others, the Justice Department announced today. Ken Mendoza and Alice Mendoza, who operated under the business name “Mendoza Business Services” in Fresno, consented to the civil injunction order, which was signed by U.S. District Judge Lawrence J. O’Neill in the U.S. District Court for the Eastern District of California.

According to the complaint, the Mendozas improperly understate their customers’ federal tax liabilities by fabricating expenses, claiming false or inflated credits, particularly educational credits, and deducting personal expenses of their customers. In total, the complaint alleges that the loss to the U.S. Treasury from the Mendozas’ activities could be as much as $2.8 million for tax years 2010 through 2011. The complaint also alleges that many of the Mendozas’ customers may owe additional tax, interest and penalties because of the improperly prepared returns.

In addition to barring the Mendozas from preparing or filing federal tax returns for others, the court also enjoined anyone acting in concert with the Mendozas from preparing or filing federal tax returns, and prohibited the Mendozas from requesting or directing the preparation of federal tax returns for others. The court required the Mendozas to contact all persons for whom they prepared a federal tax return since Jan. 1, 2008, to inform all such persons of the permanent injunction entered against them.

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . 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.

WASHINGTON - El Departamento de Justicia llegó a un acuerdo hoy con Commercial Cleaning Systems, una empresa de servicios de limpieza con sede en Denver. El acuerdo resuelve los reclamos de que la empresa discriminó en contra de empleados que están autorizados a trabajar en los Estados Unidos pero que no son ciudadanos estadounidenses, en violación de la Ley de Inmigración y Nacionalidad (INA por sus siglas en inglés).

La investigación del departamento se inició basada en una remisión del Servicio de Ciudadanía e Inmigración de los Estados Unidos. La investigación encontró que Commercial Cleaning Systems requirió que empleados que no son ciudadanos estadounidenses, pero que cuentan con autorización de trabajo, presentaran documentos específicos emitidos por el Departamento de Seguridad Nacional para probar su elegibilidad de empleo, mientras que a los ciudadanos estadounidenses se les permitía presentar los documentos de su preferencia. La provisión anti-discriminación de la INA prohíbe que los empleadores impongan cargas documentales adicionales a los empleados con autorización de trabajo durante el proceso de contratación y verificación de elegibilidad de empleo por causa de su ciudadanía u origen nacional.

Conforme al acuerdo de resolución, Commercial Cleaning Systems pagará $53,500 en sanciones civiles a los Estados Unidos y establecerá un fondo de $25,000 con propósito de compensar a los individuos quienes hayan perdido salario como resultado de las prácticas discriminatorias documentales de la compañía. Además, la compañía estará sujeta a un período de monitoreo de un año de sus prácticas de verificación de elegibilidad de empleo.

"Discriminar en contra de empleados autorizados a trabajar por no ser ciudadanos viola la ley federal y el Departamento de Justicia está comprometido a hacer cumplir con esta ley," dijo la Sub-Procuradora Interina de la División de Derechos Civiles, Jocelyn Samuels. "Aplaudimos a Commercial Cleaning Systems por trabajar cooperativamente con la división para resolver este asunto."

La Oficina del Consejero Especial para Prácticas Injustas en el Empleo Relacionadas con Inmigración (OSC por sus siglas en inglés) es responsable de exigir el cumplimiento de la provisión anti-discriminación de la INA. La ley también prohíbe, entre otras cosas, la discriminación por causa del estado de ciudadanía y origen nacional en la contratación, despido y reclutamiento o referencia por comisión. El caso fue manejado por la abogada Linda White Andrews.

Para más información sobre las protecciones contra la discriminación en el empleo conforme a las leyes de inmigración o para registrarse en un seminario de internet gratis, llame a la línea directa para trabajadores de la OSC al 1-800-255-7688 (1-800-237-2515, TTY para las personas con dificultades auditivos, llame a la línea directa para empleadores de la OSC al 1-800-255-8155 (1-800-237-2515, TTY) para las personas con dificultades auditivos, o visite el sitio web en www.justice.gov/crt/about/osc.

Los solicitantes o trabajadores que creen que han sido sometidos a requisitos documentales distintos o discriminación por causa de su ciudadanía, estatus de inmigración u origen nacional, en la contratación, despido, o reclutamiento o referencia por comisión, deben comunicarse con la línea directa para trabajadores indicada arriba para recibir ayuda.

Najee C. Moore, 23, of Milwaukee, pleaded guilty today to five counts of conspiracy to engage in sex trafficking and one count of use of a facility in interstate commerce in aid of racketeering in the U.S. District Court for the Eastern District of Wisconsin.

According to documents filed in court, from 2007 through 2013, Moore engaged in multiple conspiracies knowing or in reckless disregard of the fact that means of force, fraud or coercion would be used to cause both minor and adult victims to engage in commercial sex acts in Milwaukee and elsewhere. Moore also used an internet website to promote his illegal enterprise.

“Bringing human traffickers to justice is a top priority of the Department of Justice,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division. “The Civil Rights Division is committed to the vigorous prosecution of those who prey upon, abuse, and exploit others for their own financial benefit.”

“Here in Eastern Wisconsin and throughout the nation, our focused and effective teams of investigators and prosecutors—federal, state, local and tribal—continue to identify, pursue and bring to justice those people who engage in this type of invidious criminal conduct,” said U.S. Attorney James L. Santelle for the Eastern District of Wisconsin. “Today’s plea reflects that unyielding commitment to address commercial sex trafficking in a manner that assists and supports the vulnerable victims of it and that responds to the legitimate community outrage over this destructive conduct.”

“Child prostitution remains a persistent threat to children in Wisconsin and across America,” said FBI Special Agent in Charge of the Milwaukee Field Office Robert J. Shields. “This investigation serves as a reminder that the predators that commit these crimes can reside anywhere. The FBI and its law enforcement partners remain committed to pursuing and stopping these subjects where ever they operate."

“This case is another example of how successful law enforcement can be when resources are combined to focus on those who engage in criminal behavior,” said Wisconsin Department of Justice – Division of Criminal Investigation (DCI) Administrator David Matthews. “Having received a tip, law enforcement at the state, local and federal levels – as part of the Human Trafficking Task Force – worked this case jointly to share information and support investigative efforts, all of which resulted in the arrest and successful prosecution of Najee Moore. I thank all of those involved for their contributions toward bringing justice in this case.”

“I’m proud of the work of the human trafficking investigators assigned to our Sensitive Crimes Division,” said Milwaukee Police Chief Edward Flynn. “Their partnered efforts with federal officials continues to result in the successful apprehension and prosecution of dangerous sexual predators.”

This prosecution is the result of the joint investigation by the Human Trafficking Task Force for the Eastern District of Wisconsin and was the work of cooperative efforts between enforcement agencies including the FBI, Milwaukee Police Department, Wisconsin Department of Justice - DCI, Homeland Security Investigations the U.S. Attorney’s Office for the Eastern District of Wisconsin and the Civil Rights Division.

The case is being prosecuted by Assistant U.S. Attorney Karine Moreno-Taxman of the U.S. Attorney’s Office for the Eastern District of Wisconsin and Trial Attorney Daniel H. Weiss of the Civil Rights Division.

The Advisory Committee of the Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence convenes its final public hearing in Anchorage, Alaska, today and tomorrow. The hearing will examine the wide-ranging impact of violence on children in Alaska Native communities and consider programs to effectively support these children and promote healing.

"I am honored to be here in Alaska to have the opportunity to meet leaders and representatives of Alaska's Native villages here today," said Associate Attorney General Tony West. "Despite heroic efforts on the part of law enforcement officers and service providers, the safety and welfare of Alaska Native people are precarious at best. And the ones who are at greatest risk - and who suffer the most - are their children. At the Department of Justice, we believe we have a role in changing the present circumstances - and the future prospects - of native youth."

This public hearing will gather expert testimony from Alaska Native leaders and tribal judges through panel discussions on the prevalence of violence, recommendations in the Indian Law and Order Commission Report specific to Alaska Native youth and the impact of the court system on these youth. Additional panels will discuss specific ways Alaska Native children are affected by violence in their homes and communities and consider recommendations to improve how these children are identified, assessed and treated.

The Attorney General’s Task Force on American Indian and Alaska Native Children Exposed to Violence is composed of a federal working group that includes U.S. Attorneys and officials from the Interior and Justice Departments and a federal advisory committee of experts on American Indian studies, child health and trauma, victim services and child welfare. Former U.S. Senator Byron Dorgan and Iroquois composer and singer Joanne Shenandoah co-chair the 13-member committee.

The advisory committee will draw upon research and information gathered through this hearing and three previous public hearings to draft a final report of policy recommendations to present to Attorney General Eric Holder by late 2014. Previous hearings addressed domestic and community violence in Indian Country; the pathway from victimization to the juvenile justice system; the roles of juvenile courts, detention facilities and the child welfare system; gang violence; and child sex trafficking. The first public hearing was held Dec. 9, 2013, in Bismarck, North Dakota, the second Feb. 11, 2014, in the Salt River Pima-Maricopa Indian Community in Scottsdale, Arizona, and the third April 16-17, 2014, in Fort Lauderdale, Florida.

Attorney General Holder created the task force in 2013 as part of his Defending Childhood initiative to prevent and reduce children’s exposure to violence as victims and witnesses. The task force is also a component of the Justice Department’s ongoing collaboration with leaders in American Indian and Alaska Native communities to improve public safety. For more information about the advisory committee and public hearings, please visit www.justice.gov/defendingchildhood .

William P. Danielczyk Jr., formerly of Oakton, Virginia, pleaded guilty to one count of willful failure to collect and pay over employment taxes for the quarter ending Sept. 30, 2010, and one count of theft or embezzlement from an employee benefit plan for the calendar year 2010, the Department of Justice and Internal Revenue Service (IRS) announced today.

According to court documents, from March 2009 until December 2011, Danielczyk was the executive chairman of Innolog Holdings Corporation, a company that acquired Innovative Logistics Technology Inc. in March 2009. Innovative operated in the government services industry and provided technology-supported logistics services to the U.S. military and various defense organizations. The principal offices for Innovative and Innolog were located in McLean, Virginia, and later in Fairfax, Virginia.

For the third calendar quarter of 2009 through the last calendar quarter of 2011, Danielczyk was the person responsible for collecting, accounting for and paying appropriate payroll tax amounts to the IRS. Although payroll taxes were withheld from the wages of Innovative’s employees, Danielczyk failed to pay both the employee withholdings amounts and the employer’s matching portions to the IRS. The total tax loss for all quarters is $2,232,781.

According to court documents, Innovative employees were permitted to contribute to a qualified pension plan that was administered by an asset custodian, and pursuant to this plan, Innovative withheld participants’ elected contribution amounts from their regular paychecks. The total sum of employee withholdings was to be sent to the asset custodian on a bi-weekly basis. Although Danielczyk was the person responsible for authorizing payments to the asset custodian, he failed to send these payments. The total loss amount associated with this conduct, for 2009 through 2011, is $186,263.

Instead of paying Innovative’s employment taxes and remitting employee withholdings to the asset custodian of the company’s qualified pension plan, Danielczyk made purchases that included $505,871 for the use of a Washington, D.C., football stadium executive suite and $40,000 for the sponsorship of a horse race in Virginia.

Sentencing in this case has been set forSept. 11, 2014. For the employment tax charge, Danielczyk faces a statutory maximum sentence of five years in prison and a maximum fine of $250,000. Danielczyk faces a statutory maximum sentence of five years in prison and a fine of $250,000 for the theft from employee benefit plan charge.

The case was investigated by IRS-Criminal Investigation and the U.S. Department of Labor, Employee Benefits Security Administration, Philadelphia Regional Office. Trial Attorney Tracy L. Gostyla of the Tax Division and Assistant U.S. Attorney Mark D. Lytle for the Eastern District of Virginia are prosecuting the case.

A grand jury in Miami, Florida, indicted two individuals and two corporations for allegedly operating call centers in Peru that lied to and threatened Spanish-speaking victims into paying fraudulent settlements.

Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division, U.S. Attorney Wilfredo A. Ferrer of the Southern District of Florida and U.S. Postal Inspector in Charge Ronald Verrochio of the Miami Office made the announcement.

Maria Luzula, of Miami and Juan Alejandro Rodriguez Cuya, of Lima, Peru, were charged with conspiracy, mail and wire fraud and extortion. Two Miami-based corporate entities – Angeluz Florida Corporation and Angeluz Miami, LLC – were charged with the same offenses.

“The Department of Justice is committed to fighting consumer fraud,” said Assistant Attorney General Delery. “Threats, misrepresentations and other predatory tactics used to rip off consumers will not be tolerated.”

“Consumer fraud that targets a specific population is shameful,” said U.S. Attorney Ferrer. “In this case, the defendants are alleged to have targeted Spanish-speaking consumers and falsely threatened them with arrest, deportation, forfeiture of property or harm to their credit scores when the consumers refused to settle claims for products that were not delivered or ordered. Such tactics are intolerable. The U.S. Attorney’s Office is committed and stands united with the Department of Justice’s Civil Division, Consumer Protection Branch, to protect our consumers from fraud.”

“The U.S. Postal Inspection Service will continue to aggressively investigate and pursue those who threaten our citizens and defraud them of their hard earned money, no matter what country they are operating from,” said U.S. Postal Inspector in Charge Verrochio.

According to allegations in the indictment, the defendants’ employees in Peru, using Internet-based telephone calls, lied to Spanish-speaking victims in the U.S. about fines they owed and lawsuits that would be brought against the victims. Peruvian callers threatened the victims and falsely told each victim that he or she had wrongfully failed to receive a delivery of products. The callers went on to claim, again falsely, that the victims owed thousands of dollars in fines. In reality, the victims had never ordered these products and no attempts to deliver products to the victims had been made.

The indictment alleges that Luzula’s and Rodriguez Cuya’s employees claimed that the consumers could resolve the fines if they immediately paid a “settlement fee.” Consumers who contested these settlement fees were told that failure to pay could lead to arrest, deportation, forfeiture of property or harm to their credit scores. Although consumers typically objected that they did not order or refuse delivery of any products, thousands still agreed to pay the fees due to these threats. The indictment alleges that a phone room in Miami collected the fees.

Luzula and Rodriguez Cuya originally were charged by criminal complaint and arrested on Jan. 10, 2013. They have remained incarcerated since their arrests.

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

Assistant Attorney General Delery commended the Postal Inspection Service for their investigative efforts and thanked the U.S. Attorney’s Office for the Southern District of Florida for their contributions to the case. The case is being prosecuted by Trial Attorney Phil Toomajian and Assistant Director Richard Goldberg with the Department of Justice’s Civil Division, Consumer Protection Branch.

WASHINGTON—Attorney General Eric Holder announced Tuesday that the Justice Department would formally support a proposal under consideration by the U.S. Sentencing Commission to allow certain individuals serving time in federal prison for nonviolent drug offenses to be eligible for reduced sentences.

The Commission—which sets the guidelines for sentences imposed on federal criminal defendants—approved a proposal in April to lower, by two levels, the base offense associated with various drug quantities involved in drug trafficking crimes. Next month, the Commission will vote on whether the change, which is estimated to reduce the average sentence by 23 months, should be applied retroactively to individuals who are already in prison.

The department is proposing that the Commission make the revised guidelines retroactive for individuals who lack significant criminal histories and whose offenses did not include aggravating factors, such as the possession of a dangerous weapon or the use of violence. This approach is consistent with the department’s overall criminal justice reform efforts, which seek to reserve the harshest penalties for the most serious criminals who pose the greatest threat to public safety.

“Under the department’s proposal, if your offense was nonviolent, did not involve a weapon, and you do not have a significant criminal history, then you would be eligible to apply for a reduced sentence in accordance with the new rules approved by the Commission in April,” Holder said. “Not everyone in prison for a drug-related offense would be eligible. Nor would everyone who is eligible be guaranteed a reduced sentence. But this proposal strikes the best balance between protecting public safety and addressing the overcrowding of our prison system that has been exacerbated by unnecessarily long sentences.”

The department’s position in favor of applying the revised guidelines retrospectively in some cases was conveyed Tuesday during a formal hearing of the Commission. Sally Yates, the U.S. Attorney for the Northern District of Georgia, and Bureau of Prisons Director Charles Samuels testified on behalf of the department.

“We believe that the federal drug sentencing structure in place before the amendment resulted in unnecessarily long sentences for some offenders that has resulted in significant prison overcrowding, and that imprisonment terms for those sentenced pursuant to the old guideline should be moderated to the extent possible consistent with other policy considerations,” Yates said. Under the plan supported by the department, Yates added, “retroactivity would be available to a class of non-violent offenders who have limited criminal history and did not possess or use a weapon, and thus will apply only to the category of drug offender who warrants a less severe sentence and who also poses the least risk of reoffending.”

The department’s proposal calls for retroactivity to be applied to defendants in Criminal History Categories I and II who did not receive (1) a mandatory minimum sentence for a firearms offense pursuant to 18 U.S.C. § 924(c); (2) an enhancement for possession of a dangerous weapon pursuant to §2D1.1(b)(1); (3) an enhancement for using, threatening, or directing the use of violence pursuant to §2D1.1(b)(2); (4) an enhancement for engaging in an aggravating role in the offense pursuant to §3B1.1; or (5) an enhancement for obstruction or attempted obstruction of justice pursuant to §3C1.1. (2) an enhancement for possession of a dangerous weapon pursuant to §2D1.1(b)(1); (3) an enhancement for using, threatening, or directing the use of violence pursuant to §2D1.1(b)(2); (4) an enhancement for engaging in an aggravating role in the offense pursuant to §3B1.1; or (5) an enhancement for obstruction or attempted obstruction of justice pursuant to §3C1.1.

USDOJ: INTERPOL Washington: Updates

INTERPOL President Mireille Ballestrazzi Visits with INTERPOL Washington and DHS

WASHINGTON - During the week of May 26th, INTERPOL President Mireille Ballestrazzi visited the U.S. where she conducted several meetings with high ranking U.S. law enforcement officials. One of the highlights of Mrs. Ballestrazzi's visit was her meeting with DHS Secretary Jeh Johnson that took place on Tuesday, May 27th. In attendance at their meeting was INTERPOL Vice President of the Americas Region Alan Bersin, INTERPOL Washington Director Shawn A. Bray, and members of Mr. Johnson's cabinet. They discussed ideas and opportunities for continued collaboration between INTERPOL and the U.S. Department of Homeland Security. Mrs. Ballestrazzi is the first-ever elected female to hold the position of INTERPOL President. Along with her title of INTERPOL President, she also serves as the Central Director of the French Judicial Police.

A former Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (Rabobank) Japanese Yen derivatives trader pleaded guilty today for his role in a conspiracy to commit wire and bank fraud by manipulating Rabobank’s Yen London InterBank Offered Rate (LIBOR) submissions to benefit his trading positions.

Attorney General Eric H. Holder, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.

Today, a criminal information was filed in the Southern District of New York charging Takayuki Yagami, a Japanese national, with one count of conspiracy to commit wire fraud and bank fraud. Yagami pleaded guilty to the information before United States District Judge Jed S. Rakoff in the Southern District of New York.

“With this guilty plea, we take another significant step to hold accountable those who fraudulently manipulated the world’s cornerstone benchmark interest rate for financial gain,” said Attorney General Eric Holder. “This conduct distorted transactions and financial products around the world. Manipulating LIBOR effectively rigs the global financial system, compromising the fairness of world markets. This plea demonstrates that the Justice Department will never waver, and we will never rest, in our determination to ensure the integrity of the marketplace and protect it from fraud.

“Today, a former Rabobank trader has pleaded guilty to participating in a scheme to manipulate the global benchmark interest rate LIBOR to benefit Rabobank’s trading positions,” said Assistant Attorney General Caldwell. “This was the ultimate inside job. As alleged, traders illegally influenced the very interest rate on which their trades were based, using fraud to gain an unfair advantage. Takayuki Yagami is the ninth person charged by the Justice Department in connection with the industry-wide LIBOR investigation, and we are determined to pursue other individuals and institutions who engaged in this crime.”

“Today’s guilty plea is a significant step forward in the LIBOR investigation and demonstrates the Department’s firm commitment to individual accountability,” said Deputy Assistant Attorney General Snyder. “We will continue to pursue aggressively other individuals involved in this or other illegal schemes that undermine free and fair financial markets.”

“Manipulating financial trading markets to create an unfair advantage is against the law,” said Assistant Director in Charge Parlave. “Today’s guilty plea further underscores the FBI’s ability to investigate complex international financial crimes and bring the perpetrators to justice. The Washington Field Office has committed significant time and resources including the expertise of Special Agents, forensic accountants and analysts to investigate this case along with our Department of Justice colleagues. Their efforts send a clear message to anyone contemplating financial crimes: think twice or you will face the consequences.”

According to court documents, LIBOR is an average interest rate, calculated based on submissions from leading banks around the world, reflecting the rates those banks believe they would be charged if borrowing from other banks. LIBOR serves as the primary benchmark for short-term interest rates globally and is used as a reference rate for many interest rate contracts, mortgages, credit cards, student loans and other consumer lending products. The Bank of International Settlements estimated that as of the second half of 2009, outstanding interest rate contracts were valued at approximately $450 trillion.

At the time relevant to the charges, LIBOR was published by the British Bankers’ Association (BBA), a trade association based in London. LIBOR was calculated for 10 currencies at 15 borrowing periods, known as maturities, ranging from overnight to one year. The published LIBOR “fix” for Yen LIBOR at a specific maturity is the result of a calculation based upon submissions from a panel of 16 banks, including Rabobank.

Yagami admitted to conspiring with Paul Robson, of the United Kingdom, Paul Thompson, of Australia, and Tetsuya Motomura, of Japan. Robson, Thompson and Motomura were charged with conspiracy to commit wire fraud and bank fraud as well as substantive counts of wire fraud in a fifteen-count indictment returned by a federal grand jury in the Southern District of New York on April 28, 2014. All four are former employees of Rabobank.

Rabobank entered into a deferred prosecution agreement with the Department of Justice on Oct. 29, 2013 and agreed to pay a $325 million penalty to resolve violations arising from Rabobank’s LIBOR submissions.

According to allegations in the information and indictment, the four defendants traded in derivative products that referenced Yen LIBOR. Robson worked as a senior trader at Rabobank’s Money Markets and Short Term Forwards desk in London; Thompson was Rabobank’s head of Money Market and Derivatives Trading Northeast Asia and worked in Singapore; Motomura was a senior trader at Rabobank’s Tokyo desk who supervised money market and derivative traders; and Yagami worked as a senior trader at Rabobank’s Money Market/FX Forwards desks in Tokyo and elsewhere in Asia. In addition to trading derivative products that referenced Yen LIBOR, Robson also served as Rabobank’s primary submitter of Yen LIBOR to the BBA.

Robson, Thompson, Motomura and Yagami each entered into derivatives contracts containing Yen LIBOR as a price component . The profit and loss that flowed from those contracts was directly affected by the relevant Yen LIBOR on certain dates. If the relevant Yen LIBOR moved in the direction favorable to the defendants’ positions, Rabobank and the defendants benefitted at the expense of the counterparties. When LIBOR moved in the opposite direction, the defendants and Rabobank stood to lose money to their counterparties.

As alleged in court filings, from about May 2006 to at least January 2011, the four defendants and others agreed to make false and fraudulent Yen LIBOR submissions for the benefit of their trading positions. According to the allegations, sometimes Robson submitted rates at a specific level requested by a co-defendant, including Yagami, and consistent with the co-defendant’s trading positions. Other times, Robson made a higher or lower Yen LIBOR submission consistent with the direction requested by a co-defendant and consistent with the co-defendant’s trading positions. On those occasions, Robson’s manipulated Yen LIBOR submissions were to the detriment of, among others, Rabobank’s counterparties to derivative contracts. Thompson, Motomura and Yagami (described in the indictment as Trader-R) made requests of Robson for Yen LIBOR submissions through electronic chats and email exchanges.

For example, according to court filings, on Sept. 21, 2007, Yagami asked Robson by email, “wehre do you think today’s libors are? If you can I would like 1mth higher today.” Robson responded, “bookies reckon .85,” to which Yagami replied, “I have some fixings in 1mth so would appreciate if you can put it higher mate.” Robson answered, “no prob mate let me know your level.” After Yagami asked for “0.90% for 1mth,” Robson confirmed, “sure no prob[ ] I’ll probably get a few phone calls but no worries mate… there’s bigger crooks in the market than us guys!”

The indictment alleges that Robson accommodated the requests of his co-defendants. For example, on Sept. 21, 2007, after Robson allegedly received a request from Yagami for a high 1-month Yen LIBOR, Rabobank submitted a 1-month Yen LIBOR rate of 0.90, which was 7 basis points higher than the previous day and 5 basis points above where Robson said that “bookies” predicted it, and which moved Rabobank’s submission from the middle to the highest of the panel.

According to court documents, the defendants were also aware that they were making false or fraudulent Yen LIBOR submissions. For example, on May 10, 2006, Robson admitted in an email to Yagami that “it must be pretty embarrasing to set such a low libor. I was very embarrased to set my 6 mth – but wanted to help thomo [Thompson]. Tomorrow it will be more like 33 from me.” At times, Robson referred to the submissions that he submitted on behalf of his co-defendants as “ridiculously high” and “obscenely high,” and acknowledged that his submissions would be so out of line with the other Yen LIBOR panel banks that he might receive a phone call about them from the BBA or Thomson Reuters.

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

The investigation is being conducted by special agents, forensic accountants, and intelligence analysts in the FBI’s Washington Field Office. The prosecution is being handled by Senior Litigation Counsel Carol L. Sipperly and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section, and Trial Attorney Michael T. Koenig of the Antitrust Division. The Criminal Division’s Office of International Affairs has provided assistance in this matter.

The Justice Department expresses its appreciation for the assistance provided by various enforcement agencies in the United States and abroad. The Commodity Futures Trading Commission’s Division of Enforcement referred this matter to the department and, along with the U.K. Financial Conduct Authority, has played a major role in the LIBOR investigation. The Securities and Exchange Commission also has played a significant role in the LIBOR series of investigations, and the department expresses its appreciation to the United Kingdom’s Serious Fraud Office for its assistance and ongoing cooperation. The department has worked closely with the Dutch Public Prosecution Service and the Dutch Central Bank in the investigation of Rabobank. Various agencies and enforcement authorities from other nations are also participating in different aspects of the broader investigation relating to LIBOR and other benchmark rates, and the department is grateful for their cooperation and assistance.

This prosecution is part of efforts underway 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.com.

WASHINGTON - Un gran jurado en Miami, Florida, acusó formalmente a dos individuos y dos empresas por supuestamente operar centros de llamadas en Perú que mintieron y amenazaron a víctimas de habla hispana para que pagaran cargos de resolución fraudulentos.

El Secretario de Justicia Auxiliar Stuart F. Delery de la División Civil del Departamento de Justicia, el Fiscal federal Wilfredo A. Ferrer del Distrito Sur de Florida y el Inspector Postal de EE.UU. a Cargo Ronald Verrochio de la Oficina de Miami realizaron el anuncio.

María Luzula, de Miami, y Juan Alejandro Rodríguez Cuya, de Lima, Perú, fueron acusados de conspiración, fraude postal y telegráfico y extorsión. Dos sociedades con sede en Miami – Angeluz Florida Corporation y Angeluz Miami, LLC – fueron acusadas de los mismos delitos.

"El Departamento de Justicia se compromete a combatir el fraude contra consumidores", señaló el Secretario de Justicia Auxiliar de la División Civil del Departamento de Justicia Stuart F. Delery. "No se tolerarán las amenazas, declaraciones falsas y otras tácticas predatorias utilizadas para estafar a consumidores".

"El fraude contra el consumidor que apunta a una población específica es vergonzoso", señaló el Fiscal Federal Ferrer. "En este caso, se alega que los demandados tomaron como blanco a consumidores de habla hispana y los amenazaron falsamente con arresto, deportación, confiscación de propiedad o daño a sus puntajes de crédito cuando los consumidores se negaron a realizar un acuerdo por productos que no fueron entregados ni pedidos. Dichas tácticas son intolerables. La Fiscalía Federal se empeña en proteger a nuestros consumidores contra el fraude, unida a la Oficina de Protección al Consumidor de la División Civil del Departamento de Justicia".

"El Servicio de Inspección Postal de EE.UU. seguirá investigando y persiguiendo enérgicamente a quienes amenacen a nuestros ciudadanos y les estafen su dinero ganado con trabajo arduo, independientemente del país desde el que operen", dijo el Inspector Postal de EE.UU. a Cargo Verrochio.

De acuerdo con los alegatos en la acusación formal, los empleados de los demandados en Perú, por medio del uso de llamadas telefónicas vía Internet, mintieron a víctimas de habla hispana en EE.UU. acerca de multas que debían y demandas judiciales que se iniciarían contra las víctimas. Los llamantes peruanos amenazaron a las víctimas y le dijeron falsamente a cada víctima que él o ella se negaron indebidamente a recibir un envío de productos. Los llamantes alegaron, también falsamente, que las víctimas debían miles de dólares en multas. En realidad, las víctimas nunca habían pedidos los productos y no se había realizado ningún intento de entregar productos a las víctimas.

La acusación formal alega que los empleados de Luzula y Rodríguez Cuya alegaron que los consumidores podrían resolver las multas si pagaban de inmediato un "cargo de resolución". Se les dijo a los consumidores que disputaron los cargos de resolución que, si no pagaban, podrían ser objeto de arresto, deportación, confiscación de propiedad o que sus puntajes de crédito podrían verse perjudicados. A pesar de que, en general, los consumidores objetaron que no pidieron ni rechazaron el envío de ningún producto, miles de consumidores aceptaron pagar los cargos debido a estas amenazas. La acusación formal alega que una sala telefónica en Miami cobraba los cargos.

Luzula y Rodríguez Cuya fueron acusados originalmente por medio de demanda penal y arrestados el 10 de enero de 2013. Permanecen encarcelados desde sus arrestos.

Los cargos en la acusación formal son meros alegatos, y se supone que los demandados son inocentes hasta que se pruebe lo contrario.

El Secretario de Justicia Auxiliar Delery elogió al Servicio de Inspección Postal por su labor de investigación y agradeció a la Fiscalía Federal para el Distrito Sur de Florida por sus aportes al caso. Están a cargo del enjuiciamiento del caso el Abogado Litigante Phil Toomajian y el Director Auxiliar Richard Goldberg de la Oficina de Protección del Consumidor de la División Civil del Departamento de Justicia.

The Department of Justice announced today that it has reached a comprehensive agreement with the Missoula County Attorney’s Office, as well as Missoula County, Montana, and the Montana Attorney General’s Office, to resolve the department’s investigation of alleged gender bias in the prosecution of sexual assaults by the Missoula County Attorney’s Office (MCAO). Under this first-of-its-kind agreement, MCAO and the county agree to take a number of significant steps to improve MCAO’s response to allegations of sexual assault and eliminate discrimination and gender bias. This agreement completes the Civil Rights Division’s investigation of the response by the Missoula criminal justice system and the University of Montana to sexual assault.

"This historic agreement will fundamentally transform the way in which the Missoula County Attorney's Office responds to sexual assault allegations," said Attorney General Eric Holder. "By taking key steps and implementing robust new safeguards to eliminate gender bias, improve communication and prosecution techniques, and increase support for victims, county law enforcement officials will strengthen their ability to combat sexual assault crimes, increase public safety, and protect those who are victimized. This action marks a critical step forward in the Justice Department's comprehensive efforts to ensure the safety and civil rights of all people across the country. And it is my hope that these remedies can serve as a model for the resolution of other cases moving forward."

Under the agreement, the MCAO will take the following steps, which will address gender bias in MCAO’s response to sexual assault and help to restore community confidence in the criminal justice system:

· Develop and implement sexual assault policies and training for prosecutors, including supervisors;

· Improve treatment of individuals who report sexual assault, including in-person interviews and improved communication;

· Use prosecution techniques that have been shown to result in better sexual assault investigations, through improved communication with law enforcement and victims, use of investigators, closer supervision of the development of cases, hiring an in-house victim coordinator, and the use of expert witnesses;

· Improve communication and coordination with other Missoula stakeholders regarding sexual assault response, including through public outreach and collaboration with the Missoula Police Department in conducting, and analyzing the results of, a victim witness survey; and

· Improve the tracking and sharing of data regarding sexual assault prosecutions, so that MCAO has a broader picture of what it is doing and can better identify any general concerns or necessary improvements.

Montana Attorney General Tim Fox, who has oversight authority over all Montana County Attorneys, has agreed to monitor the implementation of these measures, review sexual assault cases MCAO declines to prosecute, and retain a technical advisor, Anne Munch. Munch is a former sex crimes prosecutor and one of the country’s foremost experts in the subject area. As technical advisor, Munch will provide training to MCAO, advise the Montana Attorney General regarding policies, and make recommendations and provide reports regarding implementation that will be made publicly available, alongside the quarterly reports the Attorney General’s office will also publicly disseminate.

“Sexual assault is a crime that is all too pervasive and that has devastating consequences,” said Acting Assistant Attorney General for Civil Rights, Jocelyn Samuels. “Today’s agreement completes a plan for comprehensive reform at every stage of the law enforcement response, from the handling of complaints of assault by the University of Montana, through the investigation of crimes by the Missoula Police Department, to the prosecution of those crimes by the County Attorney. This holistic approach will enable the Missoula community to improve women’s safety and ensure respect for their civil rights.”

“Over the past year, the City of Missoula, the University of Montana, and the Missoula Police Department already have made important strides toward improving their response to sexual assault and strengthening the community’s confidence in its local police,” said Michael Cotter, United States Attorney for Montana. “We are delighted that the Missoula County Attorney has agreed to partner with them and to work cooperatively with the Justice Department to improve the safety of women in Missoula.”

Today’s agreement resolves the last outstanding component of the department’s multi-pronged investigation, launched in May of 2012, regarding the handling of sexual assault complaints made by women in Missoula. The investigation, conducted under the Violent Crime and Law Enforcement act of 1994, the Safe Streets Act, Title VI of the Civil Rights Act of 1964 and Title IX of the Education Amendments of 1972, evaluated the response to sexual assault at the University of Montana at Missoula, the University’s Office of Public Safety (OPS), the Missoula Police Department (MPD) and MCAO. In May of 2013, the department entered into agreements with the university, OPS and MPD to resolve findings related to those parties and address deficiencies in their response to sexual assaults. The implementation of those agreements has already improved these parties’ response to sexual assaults.

As part of today’s agreement, Missoula’s County Attorney will dismiss with prejudice the declaratory judgment action filed on behalf of the county attorney against the department in February of 2014. The department has agreed not to file suit regarding its allegations, outlined in a February 2014 letter of findings, that the MCAO’s response to sexual assault violated federal law.

The agreement, as well as a description of the Department of Justice’s work regarding sexual assault in Missoula, Montana, will be available at: http://www.justice.gov/crt/about/spl/ .

The Justice Department today announced a settlement with the city of San Jacinto, California, that resolves a lawsuit alleging disability discrimination filed in the U.S. District Court for the Central District of California. Under the settlement, San Jacinto has changed its laws to comply with the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA). In addition, the city has agreed to pay a total of $746,599 in compensatory damages to housing providers and former residents with disabilities, including private plaintiffs’ attorneys’ fees and costs, as well as a $10,000 civil penalty to the United States. The settlement is subject to court approval.

The Justice Department’s complaint, which was filed in November 2012, alleged that San Jacinto violated the FHA and the ADA by enacting an ordinance intended to exclude unlicensed and some licensed homes for persons with disabilities from the city, and by targeting homes for persons with disabilities for enforcement of the ordinance and other local laws.

“Municipalities and other governmental entities cannot violate federal civil rights statutes by hiding behind intentionally discriminatory laws designed to appear neutral on their face,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “No American should be denied his or her rights, subjected to harassment or excluded from our communities because of a disability. We commend the city for working cooperatively to resolve this matter and to enact legislation to safeguard the fair housing rights of its residents with disabilities.”

The city’s enforcement efforts included an early morning sweep of unlicensed group homes for persons with disabilities by city officials in November 2008, including the city attorney and representatives of the city’s Code Enforcement and Public Works Departments, as well as armed and uniformed law enforcement officers of the Riverside County Sheriff’s Department acting as agents for the city. The officials arrived at the homes unannounced and without warrants and interrogated the residents from a prepared questionnaire targeted to persons with mental disabilities. The questions included whether the residents were or ever had been drug addicts or alcoholics; whether they suffered from any form of mental illness, and if so, what type; whether they were taking “psych” medications, and if so, what kind; whether they or other residents were currently using illegal drugs or alcohol; whether they were on parole or probation; and whether they were registered sex offenders.

“Federal laws protect the fair housing rights of all people, and no local zoning or harassment can change that,” said the U.S. Department of Housing and Urban Development (HUD) Acting Assistant Secretary for Fair Housing and Equal Opportunity Dave Ziaya. “HUD and the Department of Justice remain committed to ensuring that everyone has access to housing free of discrimination, including people with disabilities.”

The case arose as a result of complaints filed with HUD by two providers of housing for persons with disabilities in the city. HUD investigated the complaints and referred them to the Justice Department, which conducted an investigation pursuant to the Attorney General’s independent authority under the FHA and the ADA.

The department’s lawsuit is being resolved together with a lawsuit filed by the two HUD complainants and a third individual whose case was consolidated with that of the United States. The settlement prohibits the city from imposing restrictions on housing for persons with disabilities that are not imposed on housing for an equal or greater number of persons without disabilities. This includes numerical occupancy limits on group housing for unrelated persons with disabilities that are more restrictive than numerical occupancy limits for families or other unrelated persons.

As part of the agreement, the city adopted an ordinance that creates a new zoning classification, “Group Home for Persons with Disabilities,” and under the ordinance, such homes are permitted use in all residential zones. The city also revised its process for providing persons with disabilities exceptions to its zoning and land use requirements to comport with the FHA and the ADA. The agreement also requires the city to pay for fair housing training of its officials, including council members and law enforcement officers employed by the Riverside County Sheriff’s Department; maintain records relating to future proposals for housing for persons with disabilities; and submit periodic compliance reports to the department for a period of five years.

The federal FHA prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. Title II of the ADA prohibits governments from discriminating on the basis of disability in administering their zoning laws. More information on the obligation of city and county governments not to discriminate on the basis of disability is available on the department’s website . Individuals who believe that they may have been victims of housing discrimination may call the housing discrimination tip line at 1-800-896-7743, e-mail the department at fairhousing@usdoj.gov , or contact HUD at 1-800-896-7743.

SUMMARY - The Executive Office for Immigration Review (EOIR) invites interested parties to participate in a teleconference and Webinar providing a general overview of EOIR's recognition and accreditation program. This event is intended to educate interested parties about the process for obtaining recognition for an organization and accreditation for individuals.

DATE: Thursday, June 19, 2014, at 2 p.m.

RSVP: To RSVP for the meeting, please contact Lauren Alder Reid, Counsel for Legislative and Public Affairs, 703-305-0289, PAO.EOIR@usdoj.gov, by noon on Wednesday, June 18, 2014. Please note that there will be no in-person attendance for this event. EOIR will send call-in and Web access information on Wednesday, June 18th, to those who RSVP. To attend the meeting via conference call and Web, please RSVP with the name(s) of the attendee(s), the attendee's organization, and an email address where instructions may be sent for accessing the conference call and Web meeting.

- EOIR -

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

Eric Anderson, of Dix Hills, New York, pleaded guilty today in the U.S. District Court for the Eastern District of New York to the willful failure to collect and pay over employment taxes, the Justice Department and Internal Revenue Service (IRS) announced.

According to court documents, Anderson owned three construction companies located in Dix Hills: Anderson Framing, Anderson Enterprise and Anderson Trim Specialty. Anderson corruptly endeavored to obstruct the IRS between 2006 and 2008 by using a check cashing service to cash over $10.5 million of gross receipts checks paid to his construction companies. He concealed his check cashing activities from his tax return preparer so that the income was not included on the companies’ tax returns. Anderson paid his employees in cash while failing to collect and pay over employment taxes to the IRS. He also diverted cash receipts earned by his companies for his own personal use. Finally, after learning of the criminal investigation, Anderson shredded business records and lied to IRS investigators about his use of the check cashing service. The estimated tax loss resulting from Anderson’s activities is between $1 and $2.5 million.

Anderson faces a statutory potential maximum sentence of five years in prison and a potential fine of up to $250,000. U.S. District Judge Arthur Spatt set sentencing for Sept. 19, 2014.

The case was investigated by IRS-Criminal Investigation and is being prosecuted by Trial Attorneys Mark Kotila and Jeffrey Bender of the Justice Department’s Tax Division.

Acting Assistant Attorney General for the Justice Department’s Civil Rights Division Jocelyn Samuels, U.S. Attorney for the District of Montana Michael Cotter, Montana Attorney General Tim Fox, Missoula County Attorney Fred Van Valkenburg and Missoula County Commissioner Bill Carey will hold a press conference TOMORROW, TUESDAY, JUNE 10, 2014 at 1:00 p.m. EDT (11:00 a.m. MDT), to announce negotiated agreements regarding the handling of sexual assault cases.

WHO: Acting Assistant Attorney General for the Justice Department’s Civil Rights Division Jocelyn Samuels U.S. Attorney for the District of Montana Michael Cotter Montana Attorney General Tim Fox Missoula County Attorney Fred Van Valkenburg and Missoula County Commissioner Bill Carey

WHAT: Press Conference

WHEN: Tuesday, June 10, 2014 , at 1:00 p.m. EDT (11:00 a.m. MDT)

WHERE: Missoula County Administration Building Commissioners Conference Room 206 , 199 W. Pine Street Missoula, Montana

OPEN PRESS

NOTE: All media must present government-issued photo I.D. (such as driver’s license) as well as valid media credentials. Press inquiries regarding logistics should be directed to the Office of Public Affairs at 202-514-2007.

The Department of Justice announced today that it has entered into and filed a consent decree that, if approved by the court, will resolve the department’s allegations that the city of Austin violated Title VII of the Civil Rights Act of 1964 by discriminating against African-American and Hispanic applicants for entry-level firefighter positions at the Austin Fire Department (AFD).

Title VII’s prohibitions of discrimination in employment forbid not only intentional discrimination, but also the use of employment practices, such as written tests, that result in disparate impact against any group based on the race, color, sex, national origin or religion of that group’s members, unless an employer can prove that such practices are job related and consistent with business necessity. Absent such proof, those practices do not identify the best qualified candidates and violate the law. The complaint, filed along with the consent decree in the U.S. District Court for the Western District of Texas in Austin, alleges that in 2012, the city used a written test that disproportionately eliminated African-Americans and Hispanics from the hiring process, and that Austin cannot demonstrate that its use of the test was job related and consistent with business necessity. Similarly, the complaint alleges that Austin’s method of weighting the 2012 assessments and processing candidates in descending rank order by composite score had an adverse impact on individuals in these protected groups who passed the written test, and that this practice was also not job related or consistent with business necessity. The United States has challenged the hiring process Austin planned to use for these positions in 2013 as well.

The Justice Department, along with the city of Austin, filed a joint motion today requesting that the court provisionally approve the consent decree executed by the parties and schedule an initial fairness hearing regarding the terms of the consent decree.

The consent decree requires that Austin no longer use the selection practices challenged by the United States in screening and selecting candidates for the AFD’s entry-level firefighter positions. The decree requires that Austin develop a new, lawful selection procedure that complies with Title VII, and also requires that the city pay $780,000 in back pay to entry-level firefighter applicants who were harmed by the 2012 hiring practice challenged by the United States and who are determined to be eligible for relief. Additionally, African-American and Hispanic applicants determined to be eligible for relief under the decree will be eligible for one of 30 priority appointments to an entry-level firefighter position with the AFD. All applicants must pass the new, lawful selection procedure and other lawful selection procedures in order to be considered for priority hire relief. African-American and Hispanic applicants who are offered priority hire relief are also eligible for retroactive seniority.

“The Department of Justice will not permit employers to use screening and selection devices that adversely affect any protected group unless those devices are shown to properly distinguish between qualified and unqualified applicants,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division. “The department commends Austin for its efforts to address these issues and to ensure that effective, Title VII-compliant selection practices are put into place.”

The department and the U.S. Equal Employment Opportunity Commission (EEOC) each investigated the AFD’s hiring practices. Today’s proposed resolution was made possible in part through collaboration between the department and the San Antonio Field Office of the EEOC.

More information about Title VII and other federal employment laws is available on the Department of Justice website.

Acting Assistant Attorney General for the Justice Department’s Civil Rights Division Jocelyn Samuels and U.S. Attorney for the District of Montana Michael Cotter will hold a press call TOMORROW, TUESDAY, JUNE 10, 2014 at 1:45 p.m. EDT (11:45 a.m. MDT), for reporters who are unable to attend in person the 1:00 p.m. EDT (11:00 a.m. MDT), press conference announcing negotiated agreements regarding the handling of sexual assault cases.

WHO: Acting Assistant Attorney General for the Justice Department’s Civil Rights Division Jocelyn Samuels and U.S. Attorney for the District of Montana Michael Cotter

WHAT: Press Conference Call

WHEN: Tuesday, June 10, 2014 at 1:45 p.m. EDT (11:45 a.m. MDT)

CALL IN: 1-800-860-2442 Call title: Press Call on Missoula, Montana, Agreement

NOTE: Participants will be asked for their name and media outlet. Press inquiries may be directed to the Office of Public Affairs at 202-514-2007.

INTERPOL Secretary General Launches Global Awareness Campaign Entitled Turn Back Crime

In a new step to boost voting access for American Indians and Alaska Natives, Attorney General Eric Holder today suggested the idea of requiring state and local election administrators whose territory includes tribal lands to place at least one polling site in a location chosen by the tribal government.  Attorney General Holder said the Justice Department would begin consulting with tribal authorities about the concept, and following consultations, would seek to cooperate with Congress on enacting the potential proposal.

Attorney General Holder said action was necessary to confront the range of factors that have contributed to the reduced voting access experienced by American Indians and Alaska Natives.  Those factors include inaccessible polling places in tribal areas, English-only ballots for areas with limited English proficiency, and "precinct realignment" practices that attempt to combine geographically isolated Native communities. 

“These conditions are not only unacceptable, they’re outrageous,” said Attorney General Holder.  "As a nation, we cannot, and we will not, simply stand by as the voices of Native Americans are shut out of the democratic process.  I am personally committed to working with tribal authorities – and with Congress – to confront disparities and end misguided voting practices once and for all.”

Attorney General Holder made the remarks in his weekly video message, which was posted on the Justice Department’s website.

Later today, Associate Attorney General Tony West will expand on this announcement in his remarks at the National Congress of American Indian Mid-year Conference in Anchorage, Alaska.  In his remarks, Associate Attorney General West will denounce the use of discriminatory practices used to prevent certain groups from participating in the voting process and further discuss the need to take critical next steps to tackle disenfranchisement among Indian Americans and Alaska Natives.

“Our proposal would give American Indian and Alaska Native voters a right that most other citizens take for granted: a polling place in their community where they can cast a ballot and receive voter assistance to make sure their vote will be counted,” Associate Attorney General West will say in his remarks.  “We take this step because voting is a legal right we guarantee to our citizens.  We do it because it is right. And we do it because our shared history compels no less.”

The complete text of Attorney General Holder’s video message is copied below:

“At every level of our nation’s Department of Justice, my colleagues and I are firmly committed to protecting the voting rights of every eligible American.  Unfortunately, when it comes to exercising this fundamental right, many individuals and communities face significant obstacles.  And this is particularly true among American Indian and Alaska Native populations.

“All too often, tribal communities must contend with inaccessible polling places, reduced voting hours – and even requirements for mail-in, English-only ballots in places with low literacy rates and limited English proficiency.  In some areas in Alaska, for example, state election officials have engaged in “precinct realignment” practices that combine two or more geographically isolated Native communities that are accessible to one another only by air or boat.  For some voters, this means that casting a ballot would require them to cross a body of water or a mountain range that’s impassable on a snowy November Election Day.

“Let me be clear: these conditions are not only unacceptable – they’re outrageous.  As a nation, we cannot – and we will not – simply stand by as the voices of Native Americans are shut out of the democratic process.  And I am personally committed to working with tribal authorities – and with Congress – to confront disparities and end misguided voting practices once and for all.

“As Attorney General, I support taking whatever steps are necessary to guarantee that voters have access to polling places on Indian reservations and in Alaska Native villages.  One idea in this regard would be federal legislation requiring any state or local election administrator whose territory includes all or part of an Indian reservation, an Alaska Native village, or other tribal lands to locate at least one polling place in a venue selected by the tribal government.  In other words, we suggest that each tribe in the nation should have at least one polling place in a location of its choice.  To consider this idea, the Justice Department will officially enter into formal consultations with sovereign tribes.  If the tribes support it, the department will formally propose legislation to Congress and work to enact it.

“For decades upon decades, American Indians and Alaska Natives have faced a distinctive history of discrimination that has adversely affected their right to vote.  As I made clear last November – at a White House Tribal Nations Conference in Washington – this Department of Justice and this Administration will never waver in our commitment to tribal sovereignty and self-determination.  Today, we’re taking a critical step to make good on that commitment.  And we’re reaffirming our dedication to expanding the ability of native peoples to exercise their most fundamental rights, to chart their own courses, and to build the better and brighter futures that they and their children deserve.”

The full video message is available at http://www.justice.gov/agwa.php.

An alleged general of the Aryan Brotherhood of Texas gang (ABT) pleaded guilty today to racketeering charges related to his 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.

Terry Ross Blake, aka “Big Terry,” 56, of Corpus Christi, Texas, pleaded guilty before U.S. District Judge Sim Lake in the Southern District of Texas to one count of conspiracy to participate in racketeering activity.

According to court documents, Blake 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. Blake 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, Blake admitted to being a member 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, previously, 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 violate the rules or pose a threat to the enterprise. Members, and oftentimes associates, were required to follow the orders of higher-ranking members, often referred to as “direct orders.”

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.

At sentencing, scheduled for Oct. 8, 2014, Blake faces a maximum penalty of life in prison.

Blake is one of 36 defendants charged with conducting racketeering activity through the ABT criminal enterprise, among other charges. To date, 28 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.

The Corporation for National and Community Service (CNCS), which administers AmeriCorps, and the Department of Justice today announced “justice AmeriCorps,” a strategic partnership to increase national service opportunities while enhancing the effective and efficient adjudication of immigration proceedings involving certain children who have crossed the U.S. border without a parent or legal guardian.

The interagency agreement reflects the spirit of a presidential memorandum issued on July 15, 2013, that established the Task Force on Expanding National Service.  The task force calls on federal agency leaders to identify ways to address some of the nation's most pressing challenges by expanding national service.

“With the launch of justice AmeriCorps, we're taking a historic step to strengthen our justice system and protect the rights of the most vulnerable members of society,” said Attorney General Eric Holder.  “How we treat those in need, particularly young people who must appear in immigration proceedings - many of whom are fleeing violence, persecution, abuse or trafficking - goes to the core of who we are as a nation.  Through this program, we reaffirm our allegiance to the values that have always shaped our pursuit of justice.  We empower new generations of aspiring attorneys and paralegals to serve their country and stand on the front lines of this fight.  And we bolster both the efficacy and the efficiency of our immigration courts.”

“Young immigrant children entering the U.S., often under dangerous circumstances, represent some of the most vulnerable individuals who interact with our immigration system,” said Wendy Spencer, Chief Executive Officer of CNCS.  “AmeriCorps members will provide critical support for these children, many of whom are escaping abuse, persecution or violence.  The justice AmeriCorps partnership responds to a direct call from Congress, and reflects how national service can be a part of the solution to some of the most challenging issues facing our country today.”

The partnership, known as justice AmeriCorps, is a grant program that will enroll approximately 100 lawyers and paralegals as AmeriCorps members to provide legal services to the most vulnerable of these children, responding to Congress' direction to the department’s Executive Office for Immigration Review (EOIR) “to better serve vulnerable populations such as children and improve court efficiency through pilot efforts aimed at improving legal representation.”  In addition, department officials believe the AmeriCorps members will help identify unaccompanied immigrant children who have been victims of human trafficking or abuse to assist in the investigation and prosecution of those who perpetrate such crimes on those children.

CNCS is a federal agency that engages more than five million Americans in service through its AmeriCorps, Senior Corps, Social Innovation Fund and other programs, and leads the President’s national call to service initiative, United We Serve.  For more information, visit CNCS' website.  

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

The Justice Department today released its latest compliance assessment of mental health services at the Los Angeles County Jails based on a memorandum of agreement (MOA) designed to protect the constitutional rights of prisoners with serious mental illness at the jails.  The department concluded that, despite progress in some areas of the MOA, the county of Los Angeles fails to provide sufficient suicide prevention practices to protect prisoners from self-harm.  The department also found that other serious deficiencies in the mental health care delivery system remain and combine with inadequate supervision and deplorable environmental conditions to deprive prisoners of constitutionally-required mental health care. 

The Los Angeles County Jails system is the largest jail system in the country, housing approximately 19,000 pre-sentenced and sentenced prisoners in seven facilities throughout the county.  The Los Angeles Sheriff’s Department operates the jails system and supports the delivery of mental health services within the jails by the county’s Department of Mental Health.  In 2002, the department entered into the MOA with the county to resolve a long-standing civil investigation into conditions of confinement at the jails under the Civil Rights of Institutionalized Persons Act (CRIPA).  The MOA gives the department access to personnel, documents and prisoners to evaluate the county’s compliance with the MOA.  The department is assisted by expert consultants in correctional mental health care and suicide prevention, and provides ongoing technical assistance as part of its monitoring activities.  The county has cooperated fully and openly with the department.   

The comprehensive assessment released today confirms that certain conditions and practices have not been remedied under the MOA and continue to violate the constitutional rights of prisoners with mental illness.  There have been 15 completed suicides at the jails in less than 30 months and the department concluded that some of the deaths may have been preventable with proper suicide prevention practices.  The department’s assessment also reveals widespread lapses with regard to basic supervision of prisoners at risk; deficient mental health care for prisoners with clearly demonstrated needs; deplorable environmental conditions, most acutely at Men’s Central Jail; and a suicide review process that often includes inaccurate information and fails to remedy evident and repeated problems in order to prevent similar incidents in the future.

At the same time, the department’s assessment reveals that the county has achieved substantial compliance with certain aspects of the MOA.  For example, the county has implemented nearly all provisions related to mental health screening at intake, developed a robust electronic medical records system, increased the number of clinical and support staff and ensured that custodial staff receive initial and ongoing training in the identification and custodial care of prisoners with mental illness.  The county has demonstrated a sustained level of acceptable performance and improvement in these areas, which will no longer be subject to evaluation under the MOA.  

“The Los Angeles County Jails have an obligation to provide conditions of confinement that do not offend the Constitution and to take reasonable measures to protect inmates from harm,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “Although the county has consulted with the Justice Department for years, our latest assessment reveals serious deficiencies that require further corrective action.  We are hopeful that county officials will continue their long-standing cooperation to ensure that sustainable reforms are implemented fully.”

The department intends to enter into discussions with county officials from the Los Angeles County Sheriff’s Department and the county’s Department of Mental Health to address the results of the evaluation.  The department expects that those MOA requirements that are in substantial compliance will terminate and no longer be subject to monitoring.  The department will propose additional corrective action in the form of a court-enforceable agreement to address the remaining areas with serious deficiencies that violate prisoners’ constitutional rights.  The department’s compliance letter includes a comprehensive list of recommended remedial measures that are designed to ensure adequate mental health treatment, supervision, suicide prevention and conditions of confinement for prisoners throughout the jails.

The challenges that the county faces in providing constitutionally adequate mental health services at the jail are driven in part by a rapid increase in the number of prisoners who are seriously mentally ill.  The county has begun to take steps to expand diversion programs that will provide community supervision and treatment in a manner consistent with public safety.   The department applauds these efforts.

CRIPA was enacted in 1980 to eradicate egregious and harmful conditions that result in a pattern or practice of civil rights violations in jails, prisons, juvenile justice facilities and other public institutions.  CRIPA authorizes the department to investigate and, if necessary, initiate a civil action to guarantee the federal and constitutional rights of institutionalized persons.

The MOA is enforced by the Special Litigation Section of the Civil Rights Division and the U.S. Attorney’s Office for the Central District of California, Civil Division.  A copy of the MOA can be obtained on the department's website and additional information about the Civil Rights Division’s enforcement activities under CRIPA can be found at the division website .

WASHINGTON - The Corporation for National and Community Service (CNCS), which administers AmeriCorps, and the Department of Justice today announced "justice AmeriCorps," a strategic partnership to increase national service opportunities while enhancing the effective and efficient adjudication of immigration proceedings involving certain children who have crossed the U.S. Border without a parent or legal guardian.

The interagency agreement reflects the spirit of a Presidential Memorandum issued on July 15, 2013 that established the Task Force on Expanding National Service. The Task Force calls on federal agency leaders to identify ways to address some of the nation's most pressing challenges by expanding national service.

"With the launch of justice AmeriCorps, we're taking a historic step to strengthen our justice system and protect the rights of the most vulnerable members of society," said Attorney General Eric Holder. "How we treat those in need, particularly young people who must appear in immigration proceedings - many of whom are fleeing violence, persecution, abuse, or trafficking - goes to the core of who we are as a nation. Through this program, we reaffirm our allegiance to the values that have always shaped our pursuit of justice. We empower new generations of aspiring attorneys and paralegals to serve their country and stand on the front lines of this fight. And we bolster both the efficacy and the efficiency of our immigration courts."

"Young immigrant children entering the U.S., often under dangerous circumstances, represent some of the most vulnerable individuals who interact with our immigration system," said Wendy Spencer, CEO of the Corporation for National and Community Service. "AmeriCorps members will provide critical support for these children, many of whom are escaping abuse, persecution, or violence. The justice AmeriCorps partnership responds to a direct call from Congress, and reflects how national service can be a part of the solution to some of the most challenging issues facing our country today."

The partnership, known as "justice AmeriCorps," is a grant program that will enroll approximately 100 lawyers and paralegals as AmeriCorps members to provide legal services to the most vulnerable of these children, responding to Congress' direction to DOJ's Executive Office for Immigration Review "to better serve vulnerable populations such as children and improve court efficiency through pilot efforts aimed at improving legal representation." In addition, DOJ officials believe the AmeriCorps members will help identify unaccompanied immigrant children who have been victims of human trafficking or abuse to assist in the investigation and prosecution of those who perpetrate such crimes on those children.

- EOIR -

The Corporation for National and Community Service is a federal agency that engages more than five million Americans in service through its AmeriCorps, Senior Corps, Social Innovation Fund, and other programs, and leads President's national call to service initiative, United We Serve. For more information, visit nationalservice.gov.

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

A campaign worker pleaded guilty today for paying voters to vote in the November 2012 school board election in Donna, Texas, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Guadalupe Escamilla, 72, of Weslaco, Texas, pleaded guilty to one count of vote-buying before Chief U.S. District Judge Ricardo Hinojosa in the Southern District of Texas, McAllen Division. Sentencing is scheduled for Aug. 29, 2014.

According to a factual statement read during the plea hearing, a general election was held on Nov. 6, 2012, in Donna for the presidential election, as well as various state, county and local offices, including the Donna School Board. Escamilla assisted in the campaign to elect candidates to the Donna School Board. In the course of that work, Escamilla knowingly and willfully paid and offered to pay voters for voting in this election. In addition, she indicated during the plea hearing that at least two candidates gave her money to pay to voters for voting in the election.

Two other campaign workers, Rebecca Gonzalez, 44, and Diana Balderas Castaneda, 48, of Donna, Texas, have pleaded guilty to the same charge. Gonzalez is scheduled to be sentenced on Sept. 16, 2014 and Castaneda is scheduled to be sentenced on July 25, 2014.

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

Associate Attorney General Tony West will visit Alaska next week to discuss the Department of Justice’s efforts to protect civil rights and strengthen public safety in American Indian and Alaska Native communities. He will deliver remarks at the National Congress of American Indians Mid-Year Conference in Anchorage, Alaska, on MONDAY, JUNE 9, 2014, at 10:20 a.m. AKDT .

Associate Attorney General West will also deliver opening remarks at the fourth and final publ ic h earing of the Advisory Committee of the Attorney General’s Task Force on A merican Ind ian and Ala ska Native Child ren Exposed to Vio lence in Anchorage on WEDNESDAY, JUNE 11, 2014, at 1:00 p.m. AKDT . For more infor mation on the Attorney General’s Task Force and the Adv isory Co m mittee, plea se visi t: the department website .

Monday, June 9, 2014

10:20 a.m. AKDT/ Associate Attorney General Tony West will deliver remarks at the

2:20 p.m. EDT National Congress of American Indians Mid-Year Conference.

Dena'ina Civic and Convention Center

600 West Seventh Avenue

Anchorage, Alaska

OPEN PRESS

NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media inquiries regarding logistics should be directed to Sarah Beccio at 410-371-5551 or via email

Wednesday, June 11, 2014

1:00 p.m. AKDT/ Associate Attorney General Tony West will deliver remarks at the

5:00 p.m. EDT Opening of the Task Force Hearing on American Indian and Alaska Native Children’s Exposure to Violence

Sheraton Hotel

Howard Rock Ballroom

401 East Sixth Avenue

Anchorage, Alaska

                                   OPEN PRESS

NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Media inquiries regarding logistics should be directed to Wyn Hornbuckle at 202-514-2007 or via email

The Department of Justice announced today that it has reached a settlement with the Florida State University Board of Trustees, acting for and on behalf of Florida State University (FSU), in Tallahassee, Florida.  The settlement agreement resolves an investigation and compliance review of the FSU Police Department by the Justice Department under Title I of the Americans with Disabilities Act (ADA) and its implementing regulations.  The investigation found that the FSU Police Department’s online application form asked questions about a past or present disability and other medical conditions 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.

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

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

·          after making a conditional offer of employment, limiting the scope of medical examinations or disability-related inquiries to what is necessary to either confirm the job applicant’s ability to perform job-related functions, with or without a reasonable accommodation; or whether the applicant poses a direct threat to the health or safety of the applicant or others;

·          maintaining the medical or disability-related information of an applicant or employee in separate, confidential medical files;

·          training employees who make hiring or personnel decisions within the FSU Police Department on ADA regulations; and

·          ensuring that the FSU Police Department website, including its employment opportunities website and its mobile applications, conform to the Web Content Accessibility Guidelines 2.0 Level AA Success Criteria and other Conformance Requirements (WCAG 2.0 AA).  The WCAG 2.0 AA is available online .  

“This agreement ensures that people with disabilities will have an equal opportunity to compete for jobs in the FSU Police Department,” said Acting Assistant Attorney General Jocelyn Samuels for the Civil Rights Division.  “The Justice Department is committed to knocking down employment barriers for people with disabilities, and we commend the FSU for its cooperation and continuing efforts to improve accessibility for all job applicants.”       

People interested in finding out more about the ADA or this agreement can call the department’s toll-free ADA Information Line at 1-800-514-0301 or 1-800-514-0383 (TTY), or visit the ADA website

Patrick Brightwell, 48, of Bogart, Georgia, pleaded guilty today to federal charges that he orchestrated the discharge of waste into the Potomac River at East Potomac Park from 2009 through 2011, during the same period he managed the company hired by the National Park Service to clean out the storm water sewer system on the National Mall.

The guilty plea was announced by Acting Assistant Attorney General Sam Hirsch of the Justice Department’s Environment and Natural Resources Division; U.S. Attorney for the District of Columbia Ronald C. Machen Jr.; Special Agent in Charge David G. McLeod Jr. of the Environmental Protection Agency’s criminal enforcement program for the Middle Atlantic States; and Acting Chief Robert D. MacLean of the United States Park Police.

Brightwell pleaded guilty in the U.S. District Court for the District of Columbia to one count of violating the Clean Water Act by knowingly discharging a pollutant without a permit and one count of presenting false claims to the United States. The Honorable James E. Boasberg scheduled sentencing for September 3, 2014. Under federal sentencing guidelines, Brightwell faces a likely range of 46 to 57 months in prison and a fine of up to $75,000. Brightwell also has agreed to pay $270,667 in restitution to the National Park Service, representing the losses for the work that was not properly performed. He also must pay a forfeiture money judgment totaling $230,899.

An eight-count indictment of Brightwell was unsealed following his arrest in Georgia on Dec. 5, 2013. The remaining charges will be dismissed as part of the guilty plea.

“While he was supposed to be helping to keep the National Mall – a treasure of our national park system – clean and free of trash, Brightwell was actually directing the dumping of debris and wastewater into the Potomac River,” said Acting Assistant Attorney General Hirsch. “He now faces a stiff penalty for his callous and egregious violation of the Clean Water Act.”

“Patrick Brightwell harmed the U.S. taxpayer and our nation’s capital by directing his workers to dump waste in the Potomac River,” said U.S. Attorney Machen. “Instead of fulfilling a contract to take waste from the National Mall to a disposal facility, Brightwell polluted our water by telling his employees to cut corners regardless of the damage to our environment. The prison time that Brightwell now faces is an indication of how serious we are about enforcing the Clean Water Act.”

“The defendant dumped untreated wastewater and debris into one of our nation’s most treasured rivers, the Potomac,” said Special Agent in Charge McLeod. “Businesses and their contractors who flout the nation's environmental laws will be held accountable. EPA and its partner agencies are committed to vigorously working together to protect the public from this type of illegal and dangerous action.”

“The guilty pleas in this case shall serve as a reminder that environmental crimes will not be tolerated by the National Park Service, law enforcement, the criminal justice system, and the community," said Acting Chief MacLean.  “I applaud the collaborative efforts of every agency involved as a testament to the inherent dedication to protecting our nation's natural resources.”

According to a statement of offense signed by the government and defendant, from in or about 2007 through 2011, Brightwell was a manager of a company that had a contract with the National Park Service to clean the storm water sewer system on the National Mall. The contract required that waste removed from the Mall’s storm drains and oil-water separators be disposed of at a proper disposal facility in compliance with District of Columbia regulations and federal law.

Brightwell hired employees and subcontractors to perform work under the contract and oversaw their work from 2008 to 2011. To clean the structures, Brightwell and his company used a vacuum truck, a vehicle designed to gather, store, and transport such waste. When the storage compartment in the vacuum truck became full, workers would have to discharge waste from the truck prior to continuing the cleaning.

In 2009, 2010 and 2011, according to the statement of offense, Brightwell directed his employees and subcontractors to discharge waste from the vacuum truck at a storm drain near a parking lot in East Potomac Park, across Ohio Drive from the Potomac River. Brightwell concealed these discharges from the National Park Service and police. Workers also discharged waste at a manhole near Fort McNair in the District of Columbia.

During this period, Brightwell continued to invoice the National Park Service for cleaning services, but concealed and did not disclose that the waste was not being properly disposed, as required by the contract. From 2009 through 2011, Brightwell’s company received approximately $406,000 in payments from the National Park Service related to the contract.

According to the statement of offense, the employees and subcontractors illegally dumped waste at the parking lot approximately two-thirds of the time, and dumped the waste at a proper disposal facility in Fort Washington, Maryland, about one-third of the time.

The subcontractor, B&P Environmental LLC, and a B&P employee working on June 6, 2011, both pleaded guilty in November 2014 to violations of the Clean Water Act before the U.S. District Court. As part of their pleas, both the company and employee agreed to cooperate with the government’s investigation. Both the company and employee are awaiting sentencing.

The case was investigated by Special Agent S. Christopher Michael of the EPA and Detective Jon Crichfield of the U.S. Park Police and supported by Environmental Protection Specialists Jerry Crutchley and Justin Young. It is being prosecuted by Senior Trial Attorney Lana Pettus of the Department of Justice’s Environmental Crimes Section and Assistant U.S. Attorney Jonathan P. Hooks of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Paralegal Specialist Ashleigh Nye of DOJ’s Environmental Crimes Section and Paralegal Specialists Krishawn Graham and Donna Galindo of the U.S. Attorney’s Office.

A Detroit federal grand jury returned a one-count indictment against a former top executive of a Japanese manufacturer of automotive parts for his participation in a conspiracy to fix prices of seatbelts, the Department of Justice announced today.

The indictment, filed today in the U.S. District Court for the Eastern District of Michigan, charges Gikou Nakajima, a former executive at Takata Corp., with participating in a conspiracy to suppress and eliminate competition in the automotive parts industry by agreeing to rig bids for, and to fix, stabilize and maintain the prices of, seatbelts sold to Toyota Motor Corp., Honda Motor Company Ltd., Nissan Motor Co. Ltd., Mazda Motor Corp., Fuji Heavy Industries Ltd. – more commonly known by its brand name, Subaru – and/or certain of their subsidiaries, for installation in vehicles sold in the United States and elsewhere.  Nakajima served as director of customer relations division at Takata, the highest-level global sales executive at the company, from June 2005 until at least June 2009.

“Today’s indictment demonstrates that the Antitrust Division continues to hold accountable executives who collude with their competitors,” said Brent Snyder, Deputy Assistant Attorney General for the Antitrust Division’s criminal enforcement program.  “The division will not tolerate executives participating in – and directing their subordinates to participate in – conspiracies to raise the prices on automotive parts that are essential to the safety of U.S. consumers.”

The indictment alleges, among other things, that from at least as early as September 2005 and continuing until June 2009, Nakajima and others attended meetings with co-conspirators and reached collusive agreements to rig bids, allocate the supply and fix the prices of seatbelts sold to the automobile manufacturers. It alleges that Nakajima participated directly in the conspiratorial conduct, and that he directed, authorized and consented to his subordinates’ participation.

Takata is a Tokyo-based manufacturer of automotive parts, including seatbelts.  Takata supplies automotive parts to automobile manufacturers in the United States, in part, through its U.S. subsidiary, TK Holdings Inc., located in Auburn Hills, Michigan.  Takata pleaded guilty on Dec. 5, 2013, for its involvement in the conspiracy, and was sentenced to pay criminal fine of $71.3 million.  Four other executives from Takata have pleaded guilty and have been sentenced to serve time in a U.S. prison and to pay criminal fines for their roles in the conspiracy.

Including Nakajima, 35 individuals have been charged in the government’s ongoing investigation into price fixing and bid rigging in the auto parts industry, 24 of whom have pleaded guilty or agreed to plead guilty.  Of those, 22 have been sentenced to serve prison terms ranging from a year and one day to two years.  Additionally, 27 companies have pleaded guilty or agreed to plead guilty and have agreed to pay a total of more than $2.3 billion in fines.

Nakajima is charged with price fixing in violation of the Sherman Act, which carries a maximum penalty of 10 years in prison and a $1 million criminal fine for individuals.  The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

Today’s indictment is the result of an ongoing federal antitrust investigation into price fixing, bid rigging and other anticompetitive conduct in the automotive parts industry, which is being conducted by four of the Antitrust Division’s criminal enforcement sections and the FBI.  Today’s charge was brought by the Antitrust Division’s Washington Criminal I Section and the FBI’s Detroit Field Office, with the assistance of the FBI headquarters’ International Corruption Unit.  Anyone with information on price fixing, bid rigging and other anticompetitive conduct related to other products in the automotive parts industry should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258, visit www.justice.gov/atr/contact/newcase.html or call the FBI’s Detroit Field Office at 313-965-2323.

The Office of the Chief Administrative Hearing Officer (OCAHO), Executive Office for Immigration Review (EOIR), has launched a voluntary pilot program to test an electronic filing system in cases filed with OCAHO under 8 U.S.C. § 1324a and § 1324b. The pilot program will be in effect from May 30, 2014, until November 26, 2014. Parties who enroll in the pilot program with respect to a particular case within these dates will be permitted to continue utilizing electronic filing throughout the pendency of that case.

See more information about the Office of the Chief Administrative Hearing Officer Electronic Filing Pilot Program by visiting http://go.usa.gov/8wEP.

- EOIR -

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

Today, U.S. District Judge Gustavo A. Gelpí approved the selection of Arnaldo Claudio to serve as Technical Compliance Advisor (TCA), overseeing the implementation of sweeping civil rights reforms under the Agreement for Sustainable Reform of the Puerto Rico Police Department.   The agreement resolved a civil action filed by the Department of Justice in 2012 to protect individuals from the use of excessive force, unconstitutional searches and seizures and discriminatory policing by officers of the Puerto Rico Police Department (PRPD).  According to the order of appointment, Claudio will begin his term on June 6, 2014. 

Under the agreement, the department and the Commonwealth of Puerto Rico agreed to jointly select a TCA to assist the court and the public in determining whether critical reforms are implemented fully and in a timely manner.  The reforms cover 11 core areas, including use of force, searches and seizures, bias-free policing, recruitment, promotions, training, supervision, discipline, community engagement and information technology.  The TCA will serve a vital role in promoting compliance and the sustainability of reforms.  The TCA will also provide substantive expertise and technical assistance to guide PRPD in its implementation efforts and assures the public that PRPD’s progress is evaluated in a reliable, independent and transparent manner.    

The department and the commonwealth selected Claudio after an exhaustive review of potential candidates based on numerous objective factors.  These factors included relevant experience with institutional reform, subject-matter expertise, Spanish language proficiency, impartiality, an ability to interact effectively with diverse communities and a strong commitment to civil rights and effective policing.  Claudio’s proven record of outstanding performance and achievement demonstrate that he possesses the necessary skills and abilities to effectively carry out the TCA’s duties.

Claudio has the Spanish language proficiency that is contemplated by the agreement and is necessary to communicate effectively in Puerto Rico.  He is firmly committed to meaningful community engagement and maintaining a consistent presence in Puerto Rico throughout the reform process.  His exceptional work with police departments and criminal justice systems in the United States and around the world will assist in promoting compliance with critical structural and systemic reforms that are necessary to restoring public confidence and achieving effective and constitutional policing in Puerto Rico.  

Claudio was born and raised in Puerto Rico.  He attended the University of Puerto Rico and was commissioned a Second Lieutenant in the U.S. Army Military Police Corps.  He earned a Master of Science Degree in Education from Jacksonville State University and is a graduate of the Inter-American Defense College.  During his 30 years of military service, Claudio has held numerous highly sensitive positions culminating as Chief of Staff and Chief of Police of Joint Force Headquarters for the National Capital Region in Washington, D.C.  In his current position as Interagency Program Director of the Joint Force Headquarters National Capital Region, he coordinates directly with local, state and federal law enforcement agencies and other national security partners.  He also leads critical relationships with governmental and non-governmental agencies to ensure regional safety and security.  Many of Claudio’s assignments have allowed him to work closely with police agencies and communities domestically, such as Washington, D.C. and Hawaii, and abroad, including Peru, Bolivia, Colombia and El Salvador.  He served as Provost Marshal and Chief of Police of the Multinational Coalition Forces in Iraq, working tirelessly to promote democratic policing and human rights.  He also served as Chief of Staff and Operations with the Peace Corps where he oversaw volunteer recruitment, selection and placement.  Claudio’s remarkable skill, performance and dedication have been recognized with numerous military and civilian awards and decorations.   

“Mr. Claudio’s extraordinary career and service to our nation has been marked by an unwavering commitment to basic principles of human dignity and safety for all people, both here and abroad,” said Associate Attorney General Tony West.  “He now brings his exceptional skill and talent home to Puerto Rico to embark in the critical task of transforming the second largest law enforcement agency in the country into a modern, professional agency that serves and protects all residents with respect and fairness.”  

“Reforming the Puerto Rico Police Department will take a collaborative and sustained effort over the course of many years, and Mr. Claudio has enthusiastically embraced that challenge to help restore public confidence and public safety to the people of Puerto Rico,” said Acting Assistant Attorney General Jocelyn Samuels for the department’s Civil Rights Division.  “We look forward to working closely with Mr. Claudio, the court, the commonwealth government, police officers and all of the communities that make up Puerto Rico to ensure the full implementation of fundamental civil rights reforms.”

In the coming days and weeks, the department will work with the commonwealth to assist the TCA in building a cohesive team of subject-matter experts to oversee all areas of the agreement and to engage broadly with PRPD and the community.  With the start of his term, Claudio will work to evaluate PRPD’s efforts over the last year and will oversee the development of action plans that will guide implementation during the initial capacity-building phase of the agreement.  The TCA’s assessments will include a thorough review of PRPD’s policies, training curricula, standard operating procedures, plans, protocols and other operational documents related to the agreement.  The TCA will also assess whether the implementation of the agreement results in constitutional policing, increased community trust and the professional treatment of individuals by PRPD officers.  To this end, the TCA will engage with a broad cross-section of community stakeholders, including representatives of civic and community organizations, minority communities, lesbian, gay, bisexual, transgender communities, student and labor groups, civil rights organizations, women’s advocacy groups and police officers to ensure they have a voice in the reform process.  

District Judge Gelpí entered the agreement as an order in July 2013, following extensive negotiations and a thorough investigation by the Civil Rights Division.  The investigation focused on allegations of use of excessive force, unconstitutional searches and seizures and discriminatory policing by officers of the PRPD.  The department issued findings of violations and serious deficiencies in September 2011 and filed a civil action to remedy the violations in December 2012.  The case was brought under the Violent Crime Control and Law Enforcement Act of 1994, which authorizes the Attorney General to file suit against government authorities to eliminate a pattern or practice of misconduct by state and local law enforcement officers. 

A copy of the complaint, the final agreement and the September 2011 findings letter can be found at the department website  Additional information about the Civil Rights Division and its enforcement of civil rights laws involving law enforcement agencies can be found on the division website .

The Justice Department, the Internal Revenue Service (IRS) and the Treasury Inspector General for Tax Administration (TIGTA) announced that Matthew Bender, of Detroit, was convicted yesterday following a jury trial in the U.S. District Court for the Eastern District of Michigan of failing to appear at a bond hearing on July 2, 2013.  The bond hearing had been set to adjudicate Bender's noncompliance with the conditions of his pretrial release on federal tax charges.

The evidence at trial showed that Bender attended a family reunion in Ohio and flew to Texas in the summer of 2013 after a warrant was issued for his arrest.  Bender was apprehended by the U.S. Marshals Service on Aug. 13, 2013.

Bender was previously convicted by another Detroit jury in March 2014 of obstructing the IRS and nine counts of aiding and assisting in the preparation of false federal income tax returns.  According to court documents and evidence produced at the March 2014 trial, Bender prepared over 3,000 tax returns between 2006 and 2011 and earned over $500,000 in tax preparation fees.  However, Bender failed to report his own income to the IRS, either by filing false tax returns for himself or by failing to file his own tax returns at all.  The evidence showed that Bender caused his customer’s tax refunds to be inflated by placing false deductions on their returns.

Following the most recent conviction, Bender remains detained pending sentencing for his convictions. 

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

Larry Couchot, 59, a certified public accountant (CPA) from Dayton, Ohio, who is the president and part owner of an accounting firm in Centerville, Ohio, and prepared the tax returns of businessmen associated with Cadillac Ranch restaurants, pleaded guilty today to tax charges, the Justice Department and Internal Revenue Service (IRS) announced.

According to documents filed with the court, Couchot admitted that for tax years 2006 through 2010, he assisted in the preparation of false individual income tax returns for a group of individuals associated with the Cadillac Ranch restaurants, which caused a tax loss of over $191,000 to the IRS.  On May 15, 2014, Jon Field from Dublin, Ohio, along with Eric Schilder, of Marion, Ohio, and Paul Butler, also from Dublin, pleaded guilty to tax charges related to Cadillac Ranch. 

According to documents filed with the court, during the period 2006 through 2010, Couchot was aware that these individuals used a substantial amount of company funds to pay for personal expenses, including payments for their personal cars, car insurance, country club dues, personal credit card charges and their individual income tax liabilities.  Couchot also admitted that he was aware that one individual used company funds to pay for other personal expenses, including lawn services, repairs and maintenance to personal residences, granite counter tops and TV and audio systems.

Couchot admitted that he prepared false federal income tax returns that failed to report these items as income on two individuals’ income tax returns.  Couchot pleaded guilty to aiding and assisting in the preparation of a false income tax return for the year 2009 for Jon Field and to preparing a false income tax return for Eric Schilder for the year 2007, which reported only $68,000 of income.  In contrast, the business records of the company indicated Schilder earned over $129,000 in income in that year.  Couchot admitted that after the false return was filed with the IRS on behalf of Schilder, he created a false summary that he retained in his records to support the false income reported on that return.

At sentencing, Couchot faces a statutory maximum sentence of three years in prison, a $250,000 fine and one year of supervised release for each of the two charges.

The case was investigated by IRS-Criminal Investigation, and is being prosecuted by Trial Attorney Richard M. Rolwing and Senior Litigation Counsel John E. Sullivan of the Justice Department’s Tax Division.  Additional information about the Tax Division and its enforcement efforts can be found at the division website Additional information about tax fraud schemes can be found on the IRS-Criminal Investigation website

A former soldier in the U.S. Army National Guard pleaded guilty to bribery and fraud on the U.S. Army National Guard Bureau, 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.

Former Specialist Christopher Renfro, 26, of Houston, Texas pleaded guilty today to two counts of wire fraud and one count of aggravated identity theft. Previously, on March 24, 2014, Renfro pleaded guilty to one count of conspiracy and one count of bribery in connection with the same scheme.

According to court documents, former and current military recruiters and U.S. soldiers in the San Antonio and Houston areas engaged in a wide-ranging corruption scheme to obtain fraudulent recruiting bonuses. To date, the investigation has led to charges against 25 individuals, 23 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 Army National Guard. Through this program, a participating soldier could receive up to $2,000 in bonus payments for referring another individual to join the Army National Guard. 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.

Renfro admitted that between approximately February 2008 and August 2011, he paid former Sergeant First Class Michael Rambaran for the personal identifying information of potential Army National Guard soldiers. Renfro further admitted that he used the personal information for these potential soldiers to obtain fraudulent bonuses by falsely claiming that he was responsible for referring these soldiers to join the Army National Guard.

Renfro is scheduled to be sentenced on Jan. 9, 2015 before U.S. District Judge Lee H. Rosenthal of the Southern District of Texas.

Rambaran pleaded guilty on March 25, 2014 to one count of conspiracy, one count of bribery, and one count of aggravated identity theft. He is scheduled to be sentenced on Jan. 9, 2015 before U.S. District Judge Rosenthal in Houston.

This case is being investigated by the San Antonio Fraud Resident Agency of Army CID’s Major Procurement Fraud Unit. This 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 and Assistant U.S. Attorney John Pearson of the Southern District of Texas.

The Department of Justice and the Federal Trade Commission (FTC) have issued the agenda for their joint public workshop, which will be held on June 23, 2014, to explore the economic and legal analysis of conditional pricing practices among firms in a supply chain.  Announced in early May, the workshop will focus on conditional pricing arrangements – practices in which prices are explicitly or effectively contingent on commitments to purchase or sell a specified share or volume of a single product or a mix of multiple products – such as loyalty or bundled pricing.

            
A principal goal of the workshop will be to advance the economic understanding of the potential harms and benefits of conditional pricing practices and to reexamine their treatment under the antitrust laws.  As detailed in the press release first announcing the event, participants will focus primarily on: 1) Economic Learning, and 2) Law and Policy Issues related to conditional pricing practices.

 
The Department of Justice and the FTC are interested in receiving comments on conditional pricing practices, and will accept written submissions from the public from now through Aug. 22, 2014, 60 days after the event.  Interested parties may submit public comments online.  Submitted comments will be made publicly available on the Department of Justice and FTC websites.

 
The all-day workshop is free and open to the public.  Individuals are encouraged, but not required, to register in advance for the workshop by sending an email to CPPworkshop@ftc.gov,  Please include “RSVP” in the subject line.  Seating will be on a first-come, first-serve basis.  It will take place at the FTC’s new satellite conference center, Constitution Center, 400 Seventh Street, SW, Washington, DC 20024.

 
Reasonable accommodations for people with disabilities are available upon request.  Requests should be submitted by e-mail to lkittelson@ftc.gov , or by calling Lara Kittelson at 202-326-3388.  Requests should be made in advance. Please include a detailed description of the accommodation needed and provide contact information.

A former trader for ConvergEx Global Markets Limited (CGM Limited) — a former securities broker-dealer registered in Bermuda — has been charged in the District of New Jersey with conspiracy to commit wire fraud.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office and Inspector in Charge Philip R. Bartlett from the U.S. Postal Inspection Service (USPIS) made the announcement.

Craig Marshall, 47, of Bermuda, was charged under seal by criminal complaint on May 27, 2014, and he made his initial appearance this morning.

On Dec. 18, 2013, Jonathan Daspin, the head trader at CGM Limited, Thomas Lekargeren, a sales trader at a different ConvergEx subsidiary, and CGM Limited all pleaded guilty to conspiracy to commit securities and wire fraud before U.S. District Judge Jose Linares in the District of New Jersey. On the same day, CGM Limited’s parent company, ConvergEx Group LLC, entered into a deferred prosecution agreement. Collectively, the two ConvergEx entities paid $43.8 million in criminal penalties and restitution.

According to the charges, certain ConvergEx Group broker-dealers regularly routed securities orders to CGM Limited in Bermuda so that it could take a mark-up (an additional amount paid for the purchase of a security) or mark-down (a reduction of the amount received for the sale of a security) when executing the orders. ConvergEx employees referred to such mark-ups and mark-downs as “spread,” “trading profits,” or “TP.”

Also according to charges, to hide the fact that spread had been taken on trades, Marshall, Daspin, Lekargeren, and other employees at ConvergEx Group subsidiaries in Bermuda, New York and London created and sent false transaction reports to clients with fabricated details regarding the execution of orders, including the number of shares involved in a trade, the time at which a trade was executed and the price at which shares were either purchased or sold. After sending certain clients these false reports, the conspirators took a total of $5,171,394 in spread from them.

The charges allege that Marshall, along with Daspin and other conspirators, created and sent a false transaction report to a client on or around June 25, 2007, and created and sent an additional false transaction report to another client on Aug. 11, 2009.

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

The case is being investigated by the FBI’s Washington Field Office and the Washington, D.C., and New York offices of the U.S. Postal Inspection Service. The case is being prosecuted by Trial Attorneys Justin Goodyear, Jason Linder and Patrick Pericak of the Criminal Division’s Fraud Section. Fraud Section Assistant Chief Robert Zink and former Trial Attorney Charles Reed also assisted with the investigation.

The department appreciates the assistance of the U.S. Securities and Exchange Commission and the United States Attorney’s Office for the District of New Jersey.

Two inmates of the U.S. Medical Center for Federal Prisoners in Springfield, Missouri, who were convicted by a federal jury for murdering another inmate at the facility were sentenced to death late yesterday.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and United States Attorney Tammy Dickinson of the Western District of Missouri made the announcement.

“Two federal inmates senselessly killed another inmate, and today, they have been brought to justice,” said Assistant Attorney General Caldwell. “The Justice Department is committed to ensuring the safety and security of all Bureau of Prisons employees and inmates.”

“Achieving justice sometimes requires us to ask our citizens to make the most difficult sentencing decisions,” said U.S. Attorney Dickinson. “We appreciate their patience and commitment throughout trial. The defendants’ conduct strikes at the heart of our justice system, which depends upon the safety and security of our penal institutions. Mr. Castro was targeted for murder, in part, because he intervened to help a Bureau of Prisons employee as he was being attacked by another inmate.”

Wesley Paul Coonce Jr., 34, and Charles Michael Hall, 43, who are both inmates at the U.S. Medical Center for Federal Prisoners, were found guilty on May 7, 2014, of one count of murder in the first degree. Coonce was also found guilty of one count of murder by an inmate serving a life sentence.  The trial began on April 28, 2014, before U.S. District Judge Gary A. Fenner of the Western District of Missouri.

The evidence presented at trial demonstrated that another inmate at the prison medical center, Victor Castro-Rodriguez, 51, was found dead on the floor of his cell on Jan. 26, 2010, and had been murdered by Coonce and Hall. At the time of the murder, Coonce was serving a life sentence for a kidnapping and carjacking that involved the brutal rape of a young woman, and Hall was serving a combined 194-month sentence from the District of Maine for making threatening communications against a federal judge and a federal prosecutor.

This case was investigated by the FBI and the Bureau of Prisons and it was prosecuted by Assistant U.S. Attorney Randall D. Eggert and Trial Attorney James D. Peterson of the Capital Case Section of the U.S. Department of Justice’s Criminal Division.

The U.S. District Court for the Southern District of Texas in McAllen, Texas, permanently barred Maria I. Cantu from preparing federal tax returns for others, the Justice Department announced today. Cantu, a tax preparer in McAllen, agreed to the civil injunction order.

The order also requires Cantu to turn over to the United States a list of all persons for whom she prepared federal tax returns or claims for a refund for tax years 2010 through 2012, and to notify these customers of the permanent injunction against her. The order authorizes the United States to monitor Cantu’s compliance with the terms of the order.

 
The complaint alleged that Cantu prepared returns that contained false, improper or inflated deductions or tax credits, such as the earned income tax credit. The complaint also alleged that these activities led to her clients filing returns which unlawfully understated income tax liabilities and overstated refunds.

Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams for 2013 . 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.

Peter Picone, 41, of Methuen, Massachusetts, pleaded guilty today in U.S. District Court in Hartford, Connecticut to importing thousands of counterfeit integrated circuits (ICs) from China and Hong Kong and then reselling them to U.S. customers, including contractors supplying them to the U.S. Navy for use in nuclear submarines.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Deirdre M. Daly for the District of Connecticut made the announcement.

Picone pleaded guilty before U.S. Magistrate Judge Donna Martinez of the District of Connecticut to an indictment charging him with conspiracy to traffic in counterfeit military goods. As part of a plea agreement with the government, Picone agreed to a forfeiture money judgment of $70,050 and the forfeiture of 12,960 counterfeit ICs seized during the execution of a search warrant at his business and residence. Sentencing was set for Aug. 22, 2014.

According to court filings, from 2007 through 2012, Picone conspired with his suppliers in China and Hong Kong to sell millions of dollars’ worth of ICs bearing the counterfeit marks of approximately 35 major electronics manufacturers, including Motorola, Xilinx and National Semiconductor. Picone sold counterfeit ICs to contractors knowing that they would be supplied to the United States Navy for use in nuclear submarines.

Many of Picone’s customers specified in their orders that they would not accept anything but new ICs that were not from China, but Picone told them that the ICs were new and manufactured in Europe. Testing by the Navy and one of its contractors revealed that in fact the ICs purchased from Picone had been resurfaced to change the date code and to affix counterfeit marks, all in order to hide their true pedigree. Federal agents searched Picone’s business and residence on April 24, 2012, and recovered 12,960 counterfeit ICs.

This is the second conviction ever on a charge of trafficking in counterfeit military goods, a relatively new provision in the U.S. Criminal Code that was enacted as part of the National Defense Authorization Act of 2011.

The case was investigated by the Defense Criminal Investigative Service, the Naval Criminal Investigative Service and Homeland Security Investigations. The case is being prosecuted by Trial Attorney Kendra Ervin and Senior Counsel Evan Williams of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS), Special Assistant U.S. Attorney Carol Sipperly of the District of Connecticut, Trial Attorney Anna Kaminska of the Criminal Division’s Fraud Section, and Trial Attorney Kristen Warden of the Criminal Division’s Asset Forfeiture and Money Laundering Section.  Significant assistance was provided by the CCIPS Cybercrime Lab.

A Los Angeles physician was indicted today for a $33 million scheme to defraud Medicare, announced 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) for the Los Angeles Region and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office.

Robert A. Glazer, 67, of Los Angeles, California, was indicted in the Central District of California and charged with one count of conspiracy to commit health care fraud.

According to court documents, Glazer operated a medical clinic located in Los Angeles. From approximately January 2006 through May 2014, Glazer allegedly billed Medicare for services that were not medically necessary, and at times were not provided to the Medicare beneficiaries. In addition, Glazer allegedly signed prescriptions, certifications, and other medical documents for medically unnecessary home health services, hospice services, and power wheelchairs and other durable medical equipment (DME). Glazer’s co-conspirators then sold the prescriptions and certifications to DME supply companies, home health agencies, and other providers, knowing that the prescriptions and certifications were fraudulent. Based on these fraudulent prescriptions and certifications, the DME supply companies, home health agencies, and other providers then allegedly submitted false and fraudulent claims to Medicare.

As further alleged in court documents, from approximately January 2006 through May 2014, fraudulent prescriptions and certifications from Glazer were responsible for approximately $33,484,779 in false and fraudulent claims to Medicare, and Medicare paid approximately $22,056,332 on those claims.

The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. This case is being prosecuted by Trial Attorneys Fred Medick and Blanca Quintero 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 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 Justice Department announced today that it is opening a pattern or practice investigation of Hinds County Detention Center including both the Hinds County facility in Raymond, Mississippi, and the Jackson Detention Center, in Jackson, Mississippi.  The investigation will focus on whether Hinds County protects prisoners from harm at the hands of other prisoners and staff.  Attorneys for the County Board and the Sheriff were notified on June 2, 2014.  They pledged cooperation with the investigation

 
The department opened the investigation pursuant to the Civil Rights of Institutionalized Persons Act.  The investigation will include a comprehensive review of policies, procedures, and records, as well as interviews with county officials, jail administrators, staff, and current and former inmates.  The Justice Department will also  reach out to other stakeholders, including members of the community and groups with knowledge of conditions in the  two facilities.   

 
“Our investigation will focus on whether Hinds County protects prisoners from the harm that can result from prisoner on prisoner violence and the improper use of force,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division.  “We have not prejudged this matter, and will seek cooperation from county officials and other stakeholders during the course of the investigation.”

 
“The Office of the United States Attorney for the Southern District of Mississippi will work diligently with the Civil Rights Division to ensure that the investigation into the detention center is one that will ultimately yield results that are helpful to the citizenry of the Southern District of Mississippi, and specifically, Hinds County,” said Gregory K. Davis, United States Attorney for the Southern District of Mississippi.

Individuals who have allegations about unlawful conditions in the Jail are encouraged to contact the Justice Department by phone at (202) 514-6255, by email at HCDC.community@usdoj.gov or by mail at:

U.S. Department of Justice

Civil Rights Division

Special Litigation Section
950 Pennsylvania Avenue N.W.
Washington, D.C. 20530
(202) 514-6255

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

John Charles McCluskey, 49, was sentenced this morning by U.S. District Judge Judith C. Herrera of the District of New Mexico to serve life in prison followed by a consecutive term of 2,820 months (235 years) in prison for carjacking and murdering a retired couple from Oklahoma in August 2010.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Damon P. Martinez of the District of New Mexico, Special Agent in Charge Carol K.O. Lee of the FBI’s Albuquerque Division and New Mexico State Police Chief Pete N. Kassetas made the announcement.

McCluskey and his co-defendants, Tracy Allen Province, 46, and Casslyn Mae Welch, 47, were charged with numerous capital offenses in an indictment arising out of the Aug. 2, 2010, carjacking and murders of Gary and Linda Haas, both 61, in Quay County, New Mexico.  On Jan. 20, 2012, Province and Welch entered guilty pleas to crimes arising out of the carjacking and murder of Mr. and Mrs. Haas, and agreed to testify during McCluskey’s capital trial.  Yesterday, Province was sentenced to five consecutive terms of life imprisonment without the possibility of release as required by his plea agreement and Welch was sentenced to 40 years in prison.

On Oct. 7, 2013, McCluskey was found guilty on all counts of the indictment after an eight-week trial, and later was found eligible for the death penalty on Nov. 5, 2013, following a three-week proceeding.  McCluskey’s capital trial concluded on Dec. 11, 2013, when the jury said it was unable to reach a unanimous verdict on the death penalty, thus requiring that McCluskey be sentenced to life in prison.

“With the help of his conspirators, John Charles McCluskey mercilessly killed two innocent victims and burned their bodies as he fled law enforcement after escaping from prison,” said Assistant Attorney General Caldwell.  “Our thoughts are with those whose lives were changed forever by these heinous crimes.”

“Today’s sentencing hearing brings to a close a case that focused on an exceptionally violent episode in the summer of 2010, during which John Charles McCluskey and Tracy Allen Province escaped from prison with help from Casslyn Mae Welch, committed multiple kidnappings during their interstate flight from justice, and mercilessly killed two innocent victims to eliminate them as witnesses,” said U.S. Attorney Martinez. “While the sentences imposed on McCluskey and his co-conspirators cannot restore the loss of Gary and Linda Haas, I hope that they bring some measure of comfort and closure to their families and friends and I commend the prosecutors and investigators who worked tirelessly to seek justice for Gary and Linda Haas.”

The evidence presented during McCluskey’s capital trial established that, on July 30, 2010, McCluskey and Province escaped from an Arizona state prison with Welch’s aid.  On Aug. 2, 2010, McCluskey, Province and Welch carjacked Mr. and Mrs. Haas and their pickup truck and camping trailer at a rest stop off Interstate 40 in Quay County.  McCluskey shot and killed Mr. and Mrs. Haas in the trailer in a remote location east of Tucumcari, New Mexico.  The three associates then drove the Haases’ truck and trailer to a remote area in Guadalupe County, New Mexico, where they unhitched, burned and abandoned the trailer with the Haases’ remains still inside.  On Aug. 4, 2010, the New Mexico State Police discovered the burned remains of Mr. and Mrs. Haas in the trailer.  Province was arrested in Wyoming on Aug. 9, 2010, and McCluskey and Welch were arrested in Arizona on Aug. 19, 2010, following a nationwide, multi-agency manhunt.

“The rationale behind violent crimes like the ones committed against the Haases may be hard to understand, but our message today is crystal clear: the FBI and its partners will vigorously investigate and prosecute those who show such a callous disregard for innocent lives,” said FBI Special Agent in Charge Lee. “I am proud of the hard work of the FBI investigators and support personnel who worked on this case, alongside the federal prosecutors, victim/witness specialists, the New Mexico State Police and U.S. Marshals Service.”

“The conviction of John McCluskey and subsequent sentence of life in prison, without the chance of parole, is one that will make the community safer not only for the citizens we serve but also for the law enforcement officers who are sworn to protect them,” said New Mexico Police Chief Kassetas.  “McCluskey was and is a criminal predator who has no respect for the basic rights and liberties that we as a society value so greatly.  I can only hope that he is kept in a maximum level incarceration facility that will eliminate his ability to cause harm to anyone while he serves out his life sentence. I again want to thank the FBI, U.S. Attorney's Office and all the other New Mexico and Arizona law enforcement agencies that assisted with the Haas murder investigation, and with the capture and prosecution of McCluskey.”

The case was investigated by Albuquerque and Phoenix Divisions of the FBI and the New Mexico State Police. It was prosecuted by Trial Attorney Michael S. Warbel of the Criminal Division’s Capital Case Section and Assistant U.S. Attorney Linda Mott and former Assistant U.S. Attorney Gregory J. Fouratt of the District of New Mexico, with assistance from Kristopher N. Houghton, a contract attorney employed by the U.S. Attorney’s Office.

Quality Egg LLC (Quality Egg), Austin “Jack” DeCoster and Peter DeCoster pleaded guilty today in federal court in Sioux City, Iowa, in connection with the distribution of adulterated eggs in interstate commerce. As part of their plea agreements, the company and the two individuals admitted the company’s shell eggs were adulterated in that they contained a poisonous and deleterious substance, Salmonella Enteriditis, that may have rendered the eggs injurious to health.

Assistant Attorney General Stuart F. Delery of the Justice Department’s Civil Division and U.S. Attorney Kevin W. Techau of the Northern District of Iowa made the announcement.

Quality Egg, an egg production company with operations in Wright County, Iowa, pleaded guilty to one count of bribery of a public official, one count of introducing a misbranded food into interstate commerce with intent to defraud, and one count of introducing adulterated food into interstate commerce. Austin “Jack” DeCoster, 79, of Turner, Maine, and Peter DeCoster, 51, of Clarion, Iowa, each pled guilty to one count of introducing adulterated food into interstate commerce.

As part of its plea agreement, Quality Egg acknowledged that, on at least two occasions in 2010, its employees gave a cash bribe to an Inspector of the U.S. Department of Agriculture (USDA). The USDA Inspector’s job responsibilities included inspecting shell eggs at one or more of Quality Egg’s production facilities in Iowa. Quality Egg admitted its employees provided the bribe to the USDA Inspector (now deceased) in an attempt to corruptly influence the inspector to exercise his authority to release pallets of retained eggs for sale without re-processing the eggs as required by law and USDA standards. The eggs had been retained or “red tagged” for failing to meet minimum USDA quality grade standards.

On Sept. 12, 2012, former Quality Egg employee Tony Wasmund, 63, pleaded guilty to one count of conspiracy to bribe a public official, sell restricted eggs with intent to defraud, introduce misbranded food into interstate commerce with intent to defraud and mislead. Wasmund is scheduled to be sentenced before United States District Court Judge Mark W. Bennett of the Northern District of Iowa on Sept. 12, 2014.

Quality Egg also pleaded guilty to introducing misbranded eggs into interstate commerce with the intent to defraud. As part of its plea agreement, Quality Egg admitted that, beginning no later than January 2006 and continuing through Aug. 12, 2010, its employees affixed labels to egg shipments that indicated false expiration dates with the intent to mislead state regulators and retail egg customers regarding the true age of the eggs. Quality Egg acknowledged that there were a number of ways that the company mislabeled older eggs with newer processing and expiration dates prior to shipping the eggs to customers in California, Arizona and other states. Sometimes Quality Egg personnel did not put any processing or corresponding expiration dates on the eggs when they were processed. The eggs would be kept in storage for several days or up to several weeks. Then, just prior to shipping the eggs, Quality Egg personnel labeled the eggs with processing dates that were false.

As part of its plea agreement to the charge of introducing adulterated eggs into interstate commerce, Quality Egg admitted that, between about the beginning of 2010 and in or about August 2010, the company sold shell eggs that were adulterated in that they contained a poisonous and deleterious substance, Salmonella Enteriditis. The company acknowledged that it produced, processed, held, and packed the contaminated eggs in Iowa and sold and caused the distribution of the eggs to buyers in states other than Iowa.

Austin “Jack” DeCoster and Peter DeCoster each pleaded guilty to one count of introducing adulterated eggs into interstate commerce.

As part of his plea agreement, Austin “Jack” DeCoster admitted that he was the trustee of a trust that owned Quality Egg (also doing business as Wright County Egg, and Environ), and he exercised substantial control over the operations of Quality Egg and related entities and assets in Iowa. Austin “Jack” DeCoster acknowledged that he was the person ultimately responsible for the operations of Quality Egg and the various egg facilities in Iowa associated with Quality Egg.

Peter DeCoster, as part of his plea agreement, admitted that was the Chief Operating Officer of Quality Egg, and he exercised some control over the production and distribution of shell eggs by Quality Egg and related entities and assets in Iowa. Peter DeCoster acknowledged he was one of the persons responsible for running the operations of Quality Egg and the various egg facilities in Iowa associated with Quality Egg.

Both Austin “Jack” DeCoster and Peter DeCoster admitted that between about the beginning of 2010 and in or about August 2010, Quality Egg introduced and caused to be introduced into interstate commerce shell eggs that were adulterated, in that they contained a poisonous and deleterious substance, Salmonella Enteriditis.

Sentencing will be set before Judge Mark W. Bennett after presentence reports are prepared. Austin “Jack” DeCoster and Peter DeCoster remain free on bail pending sentencing.

On the bribery count, Quality Egg faces a sentence of probation for at least one and up to five years and a fine equal to the greater of three times the monetary equivalent of the thing of value given, offered, or promised as part of the offense, or $500,000. Quality Egg also agreed to forfeit a money judgment of $10,000 representing proceeds of the bribery offense.

On the introducing misbranded eggs into interstate commerce with the intent to defraud count, Quality Egg faces a maximum sentence of probation for at least one and up to five years and a fine equal to the greater of twice the gross gain resulting from the offense, twice the gross loss resulting from the offense, or $500,000.

On the introducing adulterated eggs in interstate commerce count, Quality Egg faces a sentence of probation for up to five years and a fine equal to the greater of twice the gross gain resulting from the offense, twice the gross loss resulting from the offense, or $100,000.

Austin “Jack” DeCoster and Peter DeCoster each face a maximum sentence of up to one year imprisonment or a term of probation of not more than five years; a fine equal to the greater of twice the gross gain or the gross loss resulting from the offense, or $100,000; and a term of supervised release after any imprisonment for up to one year.

The case is being prosecuted by Trial Attorneys Lisa Hsiao and Christopher Parisi of the Consumer Protection Branch of the Justice Department’s Civil Division and Assistant U.S. Attorney Peter Deegan of the Northern District of Iowa. They were assisted by Associate Chief Counsel Michael Varrone of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services. The case was investigated by the Food and Drug Administration’s Office of Criminal Investigations, the United States Department of Agriculture Office of Inspector General, and the FBI.

Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is 14-CR-3024.

Bryant Thompson was sentenced today to serve 120 months in prison and Quincy Walton was sentenced to serve 84 months in prison for their roles in a stolen identity refund fraud scheme, announced Assistant Attorney General Kathryn Keneally of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. for the Middle District of Alabama.  Thompson and Walton, both former Alabama corrections officers, were convicted of conspiracy to defraud the United States following a week-long jury trial in January 2014.  Thompson was also convicted of seven counts of wire fraud and seven counts of aggravated identity theft, and Walton was also convicted of one count of aggravated identity theft.  In addition to their prison sentences Thompson and Walton have been ordered to pay $176,114 in restitution. 

 
According to evidence introduced at trial, Thompson was assigned to the shift clerk position at an Alabama state prison, which gave him access to the personal identifying information of every inmate in the custody of the Alabama Department of Corrections, past and present.  Thompson and Walton, his former co-worker, used information stolen from the databases to file false federal income tax returns in the names and Social Security numbers of inmates. 

 
According to the evidence introduced at trial, the investigation revealed that several internet protocol (IP) addresses were used to file the fraudulent tax returns, including one IP address directly assigned to Thompson’s residence at the time certain tax returns were filed.  Circumstantial evidence tied both Thompson and Walton to the other IP addresses. 

 
Also according to the evidence introduced at trial, the two directed the stolen tax refunds onto prepaid debit cards and requested other refunds in the form of U.S. Treasury checks.  Evidence showed that the cards and checks were mailed to several addresses associated with Thompson and Walton in Montgomery and Prattville, Alabama, and that several of the checks were cashed at a local retail store by Walton’s uncle and by a local check casher.  During this time, Thompson purchased a new paint job and new rims for his SUV and later purchased a BMW. 

 
According to evidence from the sentencing, altogether Thompson and Walton filed over 180 false tax returns claiming over $750,000 in tax refunds.  The IRS was able to identify many of the returns as fraudulent when filed and did not pay the refunds claimed, but was defrauded into issuing a total of $176,114 in improper refunds. 

 
The case was investigated by IRS-Criminal Investigation and was prosecuted by Trial Attorneys Jason Poole and Alexander Effendi of the Tax Division, with the assistance of the U.S. Attorney’s Office for the Middle District of Alabama. 

 
More information about the Tax Division and its enforcement efforts against stolen identity/refund crimes may be found at www.justice.gov/tax.

The Justice Department today announced a multi-national effort to disrupt the Gameover Zeus Botnet – a global network of infected victim computers used by cyber criminals to steal millions of dollars from businesses and consumers – and unsealed criminal charges in Pittsburgh, Pennsylvania, and Omaha, Nebraska, against an administrator of the botnet. In a separate action, U.S. and foreign law enforcement officials worked together to seize computer servers central to the malicious software or “malware” known as Cryptolocker, a form of “ransomware” that encrypts the files on victims’ computers until they pay a ransom.

Deputy Attorney General James M. Cole, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, FBI Executive Assistant Director Robert Anderson Jr., U.S. Attorney David J. Hickton of the Western District of Pennsylvania, U.S. Attorney Deborah R. Gilg of the District of Nebraska, and Department of Homeland Security’s (DHS) Deputy Under Secretary Dr. Phyllis Schneck made the announcement.

Victims of Gameover Zeus may use the following website created by DHS’s Computer Emergency Readiness Team (US-CERT) for assistance in removing the malware: https://www.us-cert.gov/gameoverzeus .

“This operation disrupted a global botnet that had stolen millions from businesses and consumers as well as a complex ransomware scheme that secretly encrypted hard drives and then demanded payments for giving users access to their own files and data,” said Deputy Attorney General Cole. “We succeeded in disabling Gameover Zeus and Cryptolocker only because we blended innovative legal and technical tactics with traditional law enforcement tools and developed strong working relationships with private industry experts and law enforcement counterparts in more than 10 countries around the world.”

“These schemes were highly sophisticated and immensely lucrative, and the cyber criminals did not make them easy to reach or disrupt,” said Assistant Attorney General Caldwell. “But under the leadership of the Justice Department, U.S. law enforcement, foreign partners in more than 10 different countries and numerous private sector partners joined together to disrupt both these schemes. Through these court-authorized operations, we have started to repair the damage the cyber criminals have caused over the past few years, we are helping victims regain control of their own computers, and we are protecting future potential victims from attack.”

“Gameover Zeus is the most sophisticated botnet the FBI and our allies have ever attempted to disrupt,” said FBI Executive Assistant Director Anderson. “The efforts announced today are a direct result of the effective relationships we have with our partners in the private sector, international law enforcement, and within the U.S. government.”

“The borderless, insidious nature of computer hacking and cybertheft requires us to be bold and imaginative,” said U.S. Attorney Hickton.  “We take this action on behalf of hundreds of thousands of computer users who were unwittingly infected and victimized.”

“The sophisticated computer malware targeting of U.S. victims by a global criminal enterprise demonstrates the grave threat of cybercrime to our citizens,” said U.S. Attorney Gilg.  “We are grateful for the outstanding collaboration of our international and U.S. law enforcement partners in this successful investigation.”

“The FBI has demonstrated great leadership in continuing to help combat cyber crime, and our international and private sector partners have made enormous contributions as well,” said Deputy Under Secretary Schneck. “This collective effort reflects our ‘whole-of-government’ approach to cybersecurity.  DHS is proud to support our partners in helping to identify compromised computers, sharing that information rapidly, and developing useful information and mitigation strategies to help the owners of hacked systems.”

Gameover Zeus Administrator Charged

A federal grand jury in Pittsburgh unsealed a 14-count indictment against Evgeniy Mikhailovich Bogachev, 30, of Anapa, Russian Federation, charging him with conspiracy, computer hacking, wire fraud, bank fraud and money laundering in connection with his alleged role as an administrator of the Gameover Zeus botnet. Bogachev was also charged by criminal complaint in Omaha with conspiracy to commit bank fraud related to his alleged involvement in the operation of a prior variant of Zeus malware known as “Jabber Zeus.”

In a separate civil injunction application filed by the United States in federal court in Pittsburgh, Bogachev is identified as a leader of a tightly knit gang of cyber criminals based in Russia and Ukraine that is responsible for the development and operation of both the Gameover Zeus and Cryptolocker schemes. An investigation led in Washington, D.C., identified the Gameover Zeus network as a common distribution mechanism for Cryptolocker. Unsolicited emails containing an infected file purporting to be a voicemail or shipping confirmation are also widely used to distribute Cryptolocker. When opened, those attachments infect victims’ computers. Bogachev is alleged in the civil filing to be an administrator of both Gameover Zeus and Cryptolocker. The injunction filing further alleges that Bogachev is linked to the well-known online nicknames “Slavik” and “Pollingsoon,” among others. The criminal complaint filed in Omaha alleges that Bogachev also used “Lucky12345,” a well-known online moniker previously the subject of criminal charges in September 2012 that were unsealed in Omaha on April 11, 2014.

Disruption of Gameover Zeus Botnet

Gameover Zeus, also known as “Peer-to-Peer Zeus,” is an extremely sophisticated type of malware designed to steal banking and other credentials from the computers it infects. Unknown to their rightful owners, the infected computers also secretly become part of a global network of compromised computers known as a “botnet,” a powerful online tool that cyber criminals can use for numerous criminal purposes besides stealing confidential information from the infected machines themselves. Gameover Zeus, which first emerged around September 2011, is the latest version of Zeus malware that began appearing at least as early as 2007. Gameover Zeus’s decentralized, peer-to-peer structure differentiates it from earlier Zeus variants. Security researchers estimate that between 500,000 and 1 million computers worldwide are infected with Gameover Zeus, and that approximately 25 percent of the infected computers are located in the United States. The principal purpose of the botnet is to capture banking credentials from infected computers. Those credentials are then used to initiate or re-direct wire transfers to accounts overseas that are controlled by cyber criminals. The FBI estimates that Gameover Zeus is responsible for more than $100 million in losses.

The Gameover Zeus botnet operates silently on victim computers by directing those computers to reach out to receive commands from other computers in the botnet and to funnel stolen banking credentials back to the criminals who control the botnet. For this reason, in addition to the criminal charges announced today, the United States obtained civil and criminal court orders in federal court in Pittsburgh authorizing measures to redirect the automated requests by victim computers for additional instructions away from the criminal operators to substitute servers established pursuant to court order. The order authorizes the FBI to obtain the Internet Protocol addresses of the victim computers reaching out to the substitute servers and to provide that information to US-CERT to distribute to other countries’ CERTS and private industry to assist victims in removing the Gameover Zeus malware from their computers. At no point during the operation did the FBI or law enforcement access the content of any of the victims' computers or electronic communications.

Besides the United States, law enforcement from the Australian Federal Police; the National Police of the Netherlands National High Tech Crime Unit; European Cybercrime Centre (EC3); Germany’s Bundeskriminalamt; France’s Police Judiciare; Italy’s Polizia Postale e delle Comunicazioni; Japan’s National Police Agency; Luxembourg’s Police Grand Ducale; New Zealand Police; the Royal Canadian Mounted Police; Ukraine’s Ministry of Internal Affairs – Division for Combating Cyber Crime; and the United Kingdom’s National Crime Agency participated in the operation. The Defense Criminal Investigative Service of the U.S. Department of Defense also participated in the investigation.

Invaluable technical assistance was provided by Dell SecureWorks and CrowdStrike. Numerous other companies also provided assistance, including facilitating efforts by victims to remediate the damage to their computers inflicted by Gameover Zeus. These companies include Microsoft Corporation, Abuse.ch, Afilias, F-Secure, Level 3 Communications, McAfee, Neustar, Shadowserver, Anubis Networks, Symantec, Heimdal Security, Sophos and Trend Micro.

The DHS National Cybersecurity and Communications Integration Center (NCCIC), which houses the US-CERT, plays a key role in triaging and collaboratively responding to the threat by providing technical assistance to information system operators, disseminating timely mitigation strategies to known victims, and sharing actionable information to the broader community to help prevent further infections.

Disruption of Cryptolocker

In addition to the disruption operation against Gameover Zeus, the Justice Department led a separate multi-national action to disrupt the malware known as Cryptolocker (sometimes written as “CryptoLocker”), which began appearing about September 2013 and is also a highly sophisticated malware that uses cryptographic key pairs to encrypt the computer files of its victims. Victims are forced to pay hundreds of dollars and often as much as $700 or more to receive the key necessary to unlock their files. If the victim does not pay the ransom, it is impossible to recover their files.

Security researchers estimate that, as of April 2014, Cryptolocker had infected more than 234,000 computers, with approximately half of those in the United States. One estimate indicates that more than $27 million in ransom payments were made in just the first two months since Cryptolocker emerged.

The law enforcement actions against Cryptolocker are the result of an ongoing criminal investigation by the FBI’s Washington Field Office, in coordination with law enforcement counterparts from Canada, Germany, Luxembourg, the Netherlands, United Kingdom and Ukraine.

Companies such as Dell SecureWorks and Deloitte Cyber Risk Services also assisted in the operation against Cryptolocker, as did Carnegie Mellon University and the Georgia Institute of Technology (Georgia Tech). The joint effort aided the FBI in identifying and seizing computer servers acting as command and control hubs for the Cryptolocker malware.

The FBI’s Omaha and Pittsburgh Field Offices led both malware disruptions and conducted the investigation of Bogachev. The prosecution in Pittsburgh is being handled by Assistant U.S. Attorney Shardul Desai of the Western District of Pennsylvania, and the prosecution in Omaha by Trial Attorney William A. Hall of the Criminal Division’s Computer Crime and Intellectual Property Section (CCIPS) and Assistant U.S. Attorney Steven Russell of the District of Nebraska. The civil action to disrupt the Gameover Zeus botnet and Cryptolocker malware is led by Trial Attorneys Ethan Arenson and David Aaron of CCIPS and Assistant U.S. Attorney Michael A. Comber of the Western District of Pennsylvania.

The Criminal Division’s Office of International Affairs provided significant assistance throughout the criminal and civil investigations.

The details contained in the indictment, criminal complaint and related pleadings are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Anyone claiming an interest in any of the property seized or actions enjoined pursuant to the court orders described in this release is advised to visit the following website for notice of the full contents of the orders: http://www.justice.gov/opa/gameover-zeus.html .