District Not Recorded

Diana Shipping Services S.A., a Panamanian corporation headquartered in Greece,  Ioannis Prokakis and Antonios Boumpoutelos, both citizens of Greece, were convicted today after an 12-day bench trial  on charges related to the illegal discharge of waste oil and oil-contaminated waste water from the M/V Thetis, a cargo vessel operated by Diana Shipping Services, announced Robert G. Dreher, Acting Assistant Attorney General for the Justice Department’s Environment and Natural Resources Division, Neil H. MacBride, U.S. Attorney for the Eastern District of Virginia, Otis E. Harris, Jr., Special Agent in Charge, Coast Guard Investigative Service, Chesapeake Region, and David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program for the Middle Atlantic States. 

All the defendants were convicted of conspiracy, knowing failure to fully maintain an oil record book, falsification of records and concealing tangible objects in a federal investigation.  In addition, Prokakis was also convicted of obstruction of justice for ordering crewmembers to lie to U.S. Coast Guard inspectors on board the ship.  The guilty verdicts were handed down by U.S. District Judge Mark S. Davis of the Eastern District of Virginia.

“The pollution of our oceans, the falsification of environmental records, and lying to the U.S. Coast Guard are serious crimes,” said Acting Assistant Attorney General Dreher.  “Companies and individuals that intentionally attempt to cover up these crimes and obstruct U.S. Coast Guard investigations, will be prosecuted to the fullest extent of the law.”

“These defendants not only violated the law when they illegally discharged contaminated waste into our waters, but then conspired to cover up their nefarious conduct,” said United States Attorney Neil H. MacBride.  “Those who choose to continue to violate the law, even after being confronted, will find themselves in the same, serious trouble as these defendants.”

“The Coast Guard protects not only the environment of our nation, but the world’s,” said Capt. John Little, Commander of Coast Guard Sector Hampton Roads.  “Our Port State Control Teams board thousands of vessels annually to ensure compliance with U.S. law, regulations, and international treaties on pollution prevention.  This case affirms the strength of our partnerships with the Department of Justice, the U.S. Attorney’s Office and our Coast Guard Investigative Service in holding accountable those vessel operators who deliberately discharge oil and falsify ship records.”

“The oceans must be protected from shipping companies that cut corners and dump waste improperly,” said David G. McLeod, Jr., Special Agent in Charge of EPA’s criminal enforcement program for the Middle Atlantic States.  “The defendants conspired to discharge oily waste from the M/V Thetis into the open water, falsified the ship’s record books and attempted to thwart the investigation.  Today's guilty verdict should send a clear message that our collaborative efforts will lead to the vigorous prosecution of those who despoil our oceans and violate our nation’s environmental laws.”

Diana Shipping Services, S.A. faces a maximum fine of $5.5 million and five years of probation.  Prokakis and Boumpoutelos face a maximum sentence of five years for the conspiracy conviction, six years per failure to maintain an oil record book conviction, and 20 years per falsification of record conviction.  Prokakis faces an additional five year sentence for obstruction of justice.  All three defendants will be sentenced on Nov. 8, 2013.

Diana Shipping Services S.A., Prokakis, and Boumpoutelos, were indicted on May 22, 2013, in an 11-count superseding indictment alleging the illegal discharging of waste oil and oil-contaminated waste water in violation of the Act to Prevent Pollution from Ships. In September 2012, crewmembers of the M/V Thetis, a cargo vessel operated by Diana Shipping Services, reported that the vessel was discharging its bilge waste and sludge illegally by various means, including a “magic pipe” that bypassed the oily water separator.  Coast Guard inspectors boarded the vessel when it entered port in Norfolk and discovered the “magic pipe” and that the oily water separator was non-functioning.  The inspectors were also presented with an oil record book that contained false entries made by the ship’s Chief Engineer, Ioannis Prokakis and the Second Engineer Antonios Boumpoutelos.  During the inspection, Prokakis lied to inspectors about the “magic pipe” and told other members of the engineering crew to not disclose its existence to the Coast Guard inspectors.

This case was investigated by the Coast Guard Investigative Service and the EPA’s Criminal Investigations Division.  Assistant U.S. Attorney Joseph L. Kosky of the Eastern District of Virginia and Trial Attorney Kenneth E. Nelson of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division are prosecuting the case on behalf of the United States.

Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally and U.S. Attorney Daniel G. Bogden for the District of Nevada today announced that Arthur Risser Jr., of Las Vegas, pleaded guilty to filing a false personal tax return for 2008.

According to the plea agreement, Risser earned over $100,000 each year during 2006 through 2008 while employed as a large engine mechanic from 2006 to 2008, at Aggregate Industries Southern Nevada Paving Inc. and, during 2006 and 2007, at Las Vegas Paving Corporation.  Risser intentionally understated his wages and listed inflated amounts for withheld taxes to increase his refund on his individual income tax returns for 2006, 2007 and 2008.  According to the indictment, Risser earned over $300,000 from 2006 to 2008 but only reported $54,472 of income on his federal tax returns for those three years.

Risser faces a potential maximum prison term of three years and a maximum fine of $250,000.  His sentencing is scheduled for Nov. 13, 2013, before U.S. District Judge Andrew P. Gordon. 

Assistant Attorney General Kathryn Keneally and U.S. Attorney Daniel G. Bogden thanked special agents of  the Internal Revenue Service-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Nicholas Dickinson and Tax Division Trial Attorney Sonia M. Owens, who prosecuted the case.

The Justice Department announced today an agreement with the city of Fort Morgan, Colo., to improve access to all aspects of civic life for persons with disabilities.  The agreement was reached under Project Civic Access (PCA), the department’s wide-ranging initiative to ensure that cities, towns and counties throughout the country comply with the Americans with Disabilities Act (ADA).

PCA ensures that people with disabilities have an equal opportunity to participate in civic life.  As part of PCA, Justice Department staff survey state and local government facilities, services and programs in communities across the country to identify changes needed to comply with the ADA.  The agreements detail the actions a city must take to improve access to the city.  This agreement is the 208th entered into under the department’s PCA initiative.

Under the agreement, which may be viewed at www.ada.gov/fort-morgan-pca/fort-morgan-pca-sa.htm, the city will remove barriers to accessibility at the animal shelter, cemetery, city complex, city hall, library and museum, municipal court,  police department and airport, as well as City Park, Fulton Heights Park, Gateway Park, Jaycee Park, Old Fort Park and Optimist Park.  The city will also request the school district to remove barriers to access within the areas of the high school and the middle school that are currently used for emergency shelters.

The agreement also requires the city to address emergency management policies and procedures for persons with disabilities, develop a method for providing information for persons with disabilities about the existence and location of the city’s accessible services, establish and implement a policy to make the city’s web pages accessible and i mplement a plan to make sidewalks and curb cuts accessible throughout the city.

“Access to a city government’s programs, services and activities is one of the most basic civil rights guaranteed to community members, including those with disabilities,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “By signing this agreement, the city of Fort Morgan, Colo. is committing to ensuring its doors are open to people with disabilities.”

“One of the important roles the Department of Justice plays is ensuring that anyone can access their government,” said Walsh, U.S. Attorney for the District of Colorado.  “With the signing of this agreement with Fort Morgan, those with disabilities will be able to interact with their government, free of any barriers that may have previously blocked their access.”

Today’s agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments. The agreement requires the actions to be completed within three years. The department will actively monitor compliance with the agreement throughout this timeframe.

This agreement is among the first to be posted on the department’s newly redesigned PCA web page and may be viewed at www.ada.gov/civicac.htm .  The web page allows users to identify PCA agreements in two different ways: by geographic location using a clickable map or a state list and by chronological order, when the agreement became effective.

People interested in finding out more about the ADA, today’s agreement with the city of Fort Morgan, the Project Civic Access initiative or the ADA Best Practices Tool Kit for State and Local Governments may access the ADA web page at www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).

The Justice Department and Internal Revenue Service (IRS) announced that April J. Rampton, 42, formerly of Heber City, Utah, was sentenced today to 21 months in prison for filing false claims for income tax refunds.  U.S. District Judge Dee Benson also ordered Rampton to pay $230,678.36 in restitution to the IRS and to serve three years of supervised release upon her release from prison. 

Rampton was convicted at trial in December 2012 of nine counts of filing false claims for refund.  According to the indictment and the proof at trial, in July 2011, Rampton filed a false individual income tax return, based on false Forms 1099-OID, which sought a refund of more than $225,000.  On these false Forms 1099-OID, Rampton listed items of debt, such as her home mortgage and credit cards, as if the bank or loan holder had withheld the entire amount of her debt as a federal income tax payment.  Rampton received a refund check from the IRS, photocopied the check, and showed it to friends and family members. Rampton then began preparing returns for friends, family members, acquaintances and strangers, all using false Forms 1099-OID that sought tax refunds corresponding to their debts.

This case was investigated by IRS-Criminal Investigation and prosecuted by Trial Attorneys Michael Romano and Stuart Wexler of the Justice Department’s Tax Division. 

Thuron L. Hammersley, 44, of Fairborn, Ohio, pleaded guilty in U.S. District Court today to one count of transporting an individual from Ohio to Kentucky for purposes of engaging in prostitution.  He also admitted to enticing a woman to travel from Kentucky to Ohio to engage in prostitution and obstructing the investigation into his activities.

Carter M. Stewart, U.S. Attorney for the Southern District of Ohio; Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division of the U.S. Department of Justice; Kevin R. Cornelius, Special Agent in Charge, FBI, Cincinnati Field Office; Richard Biehl, Chief,  Dayton, Ohio, Police Department; and John Sedlak, Chief, Miamisburg, Ohio Police Department announced the plea entered today before U.S. District Judge Timothy S. Black.

According to court documents, Hammersley met the women on the website plentyoffish.com and placed ads for them on the internet site backpage.com, offering the women as “escorts.”  He directed the men who responded to the ads to motels in Kentucky and Ohio, where they engaged in sexual activity for money.  He also enticed another woman to travel from Kentucky to the Dayton area to engage in prostitution.  Hammersley enticed her by offering her employment, paying for her bus ticket and paying for condoms.  Hammersley collected the money paid by the men.

The plea agreement includes a recommended sentence of 78 months in prison followed by five years of supervised release.  Under the terms of the plea agreement, the court will review a pre-sentence investigation report before determining whether or not to accept the recommended sentence.

The case was investigated by the FBI and the Dayton and Miamisburg police departments.  Assistant U.S. Attorneys Vipal Patel and Alex R. Sistla and Department of Justice Trial Attorney Betsy Biffl prosecuted the case.

The Justice Department announced today that Gary Mach, a Palm Desert, Calif. resident who operated Crystal Springs Pool Service (CSPS), pleaded guilty to conspiracy to defraud the Internal Revenue Service (IRS).

According to the plea agreement, beginning around January 2002 and continuing through December 2010, Mach failed to report substantial income he earned from CSPS, a pool servicing business operated throughout Riverside County, Calif. Mach and others established fictitious trusts which they used to receive income and hold assets in an attempt to conceal the assets and income from the IRS.   

According to court documents, Mach purported to operate a trust called “Quintessential,” and directed that his paychecks be made payable to Quintessential. He also opened a bank account in the name of Quintessential where he deposited CSPS proceeds. Mach admits that he did not report to the IRS any of the income he earned from CSPS between 2002 and 2010 and used Quintessential to conceal income from the IRS. In furtherance of the conspiracy, Mach also attempted to impede an IRS summons issued to a bank for business account records. Mach closed his bank account after the bank complied with the IRS summons.

As stated in the plea agreement, the agreed upon total unreported income for the tax years 2002 through 2010 is $1,410,430 and the total tax due and owing is $270,725.  Mach has also agreed that he should be ordered to pay restitution for the amount of total tax due and owing.

Mach’s sentencing is scheduled for Nov. 14, 2013, before U.S. District Judge John A. Kronstadt and he faces a maximum penalty of five years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss resulting from his offense.

Kathryn Keneally, Assistant Attorney General for the Justice Department's Tax Division, commended the efforts of special agents of IRS - Criminal Investigation, who investigated the case, Tax Division Trial Attorneys Sonia M. Owens and Mark L. Williams, who prosecuted the case, and Assistant U.S. Attorneys Sandra R. Brown and Paul Rochmes of the U.S. Attorney’s Office for the Central District of California, who assisted with the prosecution.

The Justice Department announced today that  the United States has filed a civil injunction suit against Michael I. Turner, of San Diego to stop him from preparing federal tax returns.

The government complaint, filed in the U.S. District Court for the Southern District of California, alleges that Turner, who has prepared returns since at least 2004, has failed to sign or affix a Preparer Tax Identification Number (PTIN) to many of the returns that he has prepared. In addition and according to the government, Turner takes bogus deductions on his customers’ returns in order to claim larger refunds for his customers.  His customers then recommend Turner as a tax preparer to their friends, which helps Turner to expand his customer base and further increase his own profits.  Specifically, the government alleges that Turner claims inflated or fabricated deductions on the Schedule A of his customers’ Form 1040 tax returns, claiming that his customers have large non-cash charitable contributions and unreimbursed employee expenses.  The complaint also  alleges that when Turner’s customers are audited, Turner has provided false documents to those customers in an attempt to assist them in substantiating charitable contributions and employee expenses that they did not incur.  According to the complaint, however, Turner has instructed his customers not to identify him as their tax return preparer in communications with the Internal Revenue Service (IRS).

The government alleges that Turner continues to prepare tax returns.  According to the complaint, Turner applied for a PTIN in 2010, and has prepared at least 68 tax returns for the 2012 tax year using that PTIN.

The government seeks, among other things, that the court bar Turner from acting as a tax return preparer or assisting others in preparing or filing federal tax returns or other tax forms or documents.  The government also requests that the court bar Turner from appearing as a representative on behalf of any person or entity before the IRS, and from owning, managing, controlling, working for or volunteering for a tax-return preparation business.

In the past decade the Justice Department Tax Division has obtained injunctions against hundreds of tax preparers. More information about these cases is available on the Justice Department website.

Related Materials:

United States v. Michael Turner
Complaint for Permanent Injunction and Other Relief (PDF)

The Justice Department and the Internal Revenue Service (IRS) announced today that Jimmie Duane Ross of Lehi, Utah, and formerly of Sevierville, Tenn., was convicted today of five counts of tax evasion following a jury trial in the U.S. District Court for the Eastern District of Tennessee.

According to the indictment and evidence produced at trial, Ross won a monetary award of approximately $840,000 in 1999 after arbitration of an employment dispute with a former employer.  Ross thereafter failed to pay the full amount of his income tax due and owing for 1999 and evaded the tax by filing a false mortgage on his residence, filing a false lien on his vehicle, dealing extensively in cash and directing funds to an offshore account.  In addition, from 2004 through 2007, Ross earned commission income for referring clients to a purported Nevis-based investment company and evaded his taxes by using nominees and other means.

Following the jury verdict, U.S. District Judge R. Leon Jordan ordered that Ross be detained and scheduled the sentencing for Jan. 14, 2014.  On each of the five counts of conviction, Ross faces a maximum sentence of five years in prison and a maximum fine of $250,000.

The case was investigated by Special Agents of IRS – Criminal Investigation.  Trial Attorneys Kevin Lombardi and Kimberly Shartar of the Justice Department’s Tax Division prosecuted the case.

Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax.

A second superseding indictment against five Puerto Rico Police Department (PRPD) officers was announced today by Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division; Rosa Emilia Rodriguez-Velez, U.S. Attorney for the District of Puerto Rico; and Carlos Cases, Special Agent in Charge of the FBI San Juan Field Office.

According to the indictment unsealed today, PRPD Lt. Erick Rivera Nazario, Officer David Colon Martinez and Officer Angel Torres Quinones were indicted on civil rights charges alleging that they violated the constitutional rights of Jose Irizarry Perez while he was celebrating the local election results at the Las Colinas housing development in Yauco, Puerto Rico, on Nov. 5, 2008.  Rivera was also charged with violating the civil rights of Irizarry Perez’s father, Jose Irizarry Muniz.  In addition, Rivera, Colon,  Officer Miguel Negron Vazquez and Sgt. Antonio Rodriguez Caraballo were indicted for obstruction of justice and making false statements to the FBI and a federal grand jury.  Torres was indicted for obstruction of justice by providing misleading information to the local prosecutor.

According to the twenty-count second superseding indictment, while Colon held and restrained Irizarry Perez, Rivera and another PRPD officer physically struck Irizarry Perez and assaulted him with a police baton, which resulted in bodily injury to him.  In addition, the second superseding indictment charges Torres with striking Irizarry Perez with a police baton, which also resulted in bodily injury to him.  The second superseding indictment alleges that Rivera, Colon and Torres thereby deprived Irizarry Perez of his right to be free from unreasonable seizures by those acting under color of law.  Although Irizarry Perez died as a result of injuries he sustained on Nov. 5, 2008, the second superseding indictment does not include charges that his death resulted from the defendants’ conduct.   Rivera, who was a supervisor at the time of the incident, was also charged with failing to keep Irizarry Perez and his father from harm when an officer whom Rivera supervised assaulted the victims in Rivera’s presence. 

In addition, the second superseding indictment alleges that Rivera, Colon, Negron and Rodriguez made false statements concerning the incident to the FBI and to the federal grand jury which had been investigating the incident.  Colon and Negron were also charged with obstruction of justice for submitting false police reports and for providing misleading information to the Puerto Rico prosecutor that initially investigated the matter.  Rodriguez and Torres were also charged with obstruction of justice for providing misleading information to the Puerto Rico prosecutor, and Rivera was additionally charged with obstruction of justice for submitting a false police report.   

Each of the civil rights charges is punishable by a maximum term of ten years in prison.  Each count charging obstruction of justice is punishable by a maximum term of twenty years in prison.  Each count charging making false statements to the FBI and perjury is punishable by a maximum term of five years in prison.  In addition, every charge in the indictment carries a maximum fine of $250,000.   

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

This case is being investigated by the San Juan Division of the FBI and is being prosecuted by Assistant U.S. Attorney Jose A. Contreras from the U.S. Attorney’s Office for the District of Puerto Rico and Senior Litigation Counsel Gerard Hogan and Trial Attorney Shan Patel from the Civil Rights Division of the U.S. Department of Justice.

Qiang Wang, a/k/a Jeffrey Wang, a New York antiques dealer, pleaded guilty today in federal court in New York City to conspiracy to smuggle Asian artifacts made from rhinoceros horns and ivory and violate wildlife trafficking laws, announced Robert G. Dreher, the Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, Preet Bharara, U.S. Attorney for the Southern District of New York, and Dan Ashe, Director of the U.S. Fish and Wildlife Service.
 
Wang was arrested in February 2013 as part of “Operation Crash,” a nation-wide crackdown in the illegal trafficking in rhinoceros horns, for his role in smuggling libation cups carved from rhinoceros horns from New York to Hong Kong and China.  He pleaded guilty today before U.S. District Judge Katherine B. Forrest of the Southern District of New York.

“Wang and others conspired in an illegal trade that is threatening the future of these species,” said Acting Assistant Attorney General Dreher. “This prosecution and continuing investigation should send a clear message to buyers and sellers that we will vigorously investigate and prosecute those who are involved in this devastating trade.” 

“Today’s guilty plea ensures that Qiang Wang, who flouted domestic and international regulations by smuggling artifacts made from an endangered species out of the United States, will be held to account for his crimes,” said U.S. Attorney Bharara.  “This Office will continue to work with its law enforcement partners to hold to account anyone engaged in this illegal trade.”

“Poaching and profiteering are undermining decades of work by conservationists to stabilize and rebuild rhino and elephant populations,” said Fish and Wildlife Service Director Ashe.  “As this latest guilty plea demonstrates, we continue working with our partners in the United States and overseas to stop the slaughter and crack down on the illegal trafficking that fuels it.”   

According to the information, plea agreement, and statements made during court proceedings: In China, there is a tradition dating back centuries of intricately carving rhinoceros horn cups.  Drinking from such a cup was believed by some to bring good health, and antique carvings are highly prized by collectors.  Libation cups and other ornamental carvings are particularly sought after in China and in other Asian countries, as well as in the United States.  The escalating value of such items has resulted in an increased demand for rhinoceros horn that has helped fuel a thriving black market, including fake antiques made from recently hunted rhinoceros.   

Between approximately January 2011 and February 2013, Wang conspired with at least two others to smuggle objects containing rhinoceros horn and elephant ivory out of the United States knowing that it was illegal to export such items without required permits.  Due to their dwindling populations, all rhinoceros and elephant species are protected under international trade agreements.  Wang made and used false U.S. Customs Declarations for the packages containing rhinoceros horn and ivory objects in order to conceal the true contents of the packages, and did not declare them to the U.S. Fish and Wildlife Service or U.S. Customs and Border Protection as required under U.S. law and international trade agreements. 

Wang, 34, of Flushing, N.Y., pleaded guilty to one count of conspiracy, which carries a maximum penalty of five years in prison.  Under the terms of the plea agreement, items recovered from Wang’s apartment, including an ivory statute found hidden behind his bed, will be forfeited.  He is scheduled to be sentenced by Judge Forrest on Oct. 25, 2013. 

Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law.  Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife, and plants that are or may become imperiled due to the demands of international markets. 

Operation Crash is a continuing investigation being conducted by the Department of the Interior’s Fish and Wildlife Service (FWS), in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  A “crash” is the term for a herd of rhinoceros.  Operation Crash is an ongoing effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.

Mr. Bharara and Mr. Dreher commended the U.S. Fish and Wildlife Service for its outstanding work in this investigation.  They also thanked the New York State Department of Environmental Conservation Division of Law Enforcement and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations for their assistance.  

The case is being handled by the U.S. Attorney’s Office Complex Frauds Unit and the Justice Department’s Environment and Natural Resources Division.  Assistant United States Attorney Janis M. Echenberg and Senior Trial Attorney Richard A. Udell of the Justice Department’s Environmental Crimes Section are in charge of the prosecution. 

Two men were arrested today for allegedly conspiring to traffic in counterfeit and misbranded medicine, specifically Viagra.  The arrests were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.

Jamal Khattab, 49, of Katy, Texas, and Fayez Al-Jabri, 45, of Chicago, were charged in an 11-count indictment, which was unsealed today in the Southern District of Texas.  Khattab will appear tomorrow before U.S. Magistrate Judge Nancy Johnson in Houston, while Al-Jabri made his appearance today before U.S. Magistrate Judge Arlander Keys in Chicago, at which time he was ordered into custody pending an identity and detention hearing scheduled for Thursday morning.

The indictment charges Khattab with one count of conspiracy, one count of smuggling goods into the United States, two counts of trafficking in counterfeit goods, two counts of trafficking in misbranded drugs and two counts of trafficking in counterfeit drugs.  Al-Jabri is charged with one count of trafficking in counterfeit goods, one count of trafficking in misbranded drugs and one count of trafficking in counterfeit drugs. 

According to the indictment, from June 2010 through March 2012, the defendants smuggled counterfeit Viagra from China into the United States.  The counterfeit Viagra would then allegedly get shipped either to Chicago or to Houston in bulk for later distribution in smaller quantities. 
 
The indictment further alleges that law enforcement initially became aware of the smuggling in July 2010.  At that time, Khattab was identified as an intended recipient of a package of counterfeit Viagra that was shipped from China to Houston and was intercepted by law enforcement agents in San Francisco. U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) and U.S. Food and Drug Administration Office of Criminal Investigations (FDA-OCI) agents in Houston were notified of the shipment and commenced an investigation.

The indictment further alleges that from January 2011 through September 2011, Khattab and Al-Jabri delivered approximately 17,000 counterfeit and misbranded Viagra tablets to an undercover agent who had successfully infiltrated the counterfeit pharmaceutical trafficking organization.
 
Both men face up to five years in prison for the conspiracy, upon conviction, as well as a $250,000 fine.  Trafficking in misbranded drugs and counterfeit drugs carries as possible punishment up to three years in prison and a $10,000 fine, while trafficking in counterfeit goods could result in a possible maximum sentence of 10 years in prison and a $250,000 fine.  Finally, if convicted of smuggling goods into the U.S., Khattab could be sentenced to up to 20 years in prison and faces a possible maximum fine of $2.5 million.

An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This matter was investigated by HSI, FDA-OCI, U.S. Diplomatic Security Service (DSS), the Houston Police Department and the Chicago Police Department.  The case is being prosecuted by Assistant U.S. Attorney Kebharu Smith of the Southern District of Texas and Senior Counsel John Zacharia of the Criminal Division’s Computer Crime and Intellectual Property Section.

Related Materials:

Indictment

Three leaders of MS-13 in Washington, D.C., were found guilty by a federal jury today of conspiring to participate in racketeering activity and other charges stemming from their roles in murders, extortion and other violent crimes in the Washington area.

The verdicts, which followed a month-long trial, were announced by Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Ronald C. Machen Jr. of the District of Columbia; Special Agent in Charge John P. Torres of U.S. Immigration and Customs Enforcement (ICE) - Homeland Security Investigations (HSI) in Washington; and Cathy L. Lanier, Chief of the Washington, D.C., Metropolitan Police Department (MPD).

“Today, a jury has found three defendants guilty of committing heinous crimes as part of their membership in a brutal international criminal organization that has terrorized communities throughout the United States and Central America,” said Acting Assistant Attorney General Raman.  “As a result of this successful investigation and prosecution, these violent gang members now face substantial prison sentences.”

“After a month-long trial, this jury delivered the message that MS-13 and its brutal brand of violence will not be tolerated in the District of Columbia,” said U.S. Attorney Machen.  “These three killers now face life in prison for their outrageous crimes, including the stabbing death of a 14-year-old boy in Columbia Heights.  I want to thank the prosecutors and our law enforcement partners who have dedicated years to investigating and prosecuting this transnational gang.  The District is safer with these murderers behind bars.”

 “This verdict represents the consequences for the decisions made and the lifestyle choices of the three convicted gang members,” said Special Agent in Charge Torres. “Investigating violent crimes committed by trans-national gang members is a priority for HSI.”

“The convictions of these three violent gang leaders should send a clear message to the members of this ruthless, international criminal organization that gang activity will not be tolerated in our communities,” said Police Chief Lanier.  “I applaud the hard work and dedication by the members of the Metropolitan Police Department and our law enforcement partners who helped make today’s convictions possible.  Our communities will be safer as a result.”

Yester Ayala, 22, aka “Freeway” and “Daddy Yankee,” of Washington; Noe Machado-Erazo, aka “Gallo,” 30, of Wheaton, Md.; and Jose Martinez-Amaya, 26, aka “Crimen,” of Brentwood, Md., were each found guilty in U.S. District Court in the District of Columbia.  At sentencing, scheduled for Nov. 4, 2013, each of the defendants faces a maximum sentence of life in prison.
 
Ayala was found guilty of one count of conspiracy to participate in racketeering activity, two counts of murder in aid of racketeering, one count of first-degree premeditated murder and one count of second-degree murder. Machado-Erazo was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.  Martinez-Amaya was found guilty of conspiracy to participate in racketeering activity, murder in aid of racketeering and possession of a firearm during a crime of violence.

The government’s evidence showed that MS-13, a large gang that operates in the United States and Central America, engages in racketeering activity including murder, narcotics distribution, extortion, robberies, obstruction of justice and other crimes. The gang has numerous rules, such as enduring a beating of 13 seconds before becoming a member; killing rival gang members; and staying unfailingly loyal.

According to the government’s evidence, Machado-Erazo was a member and Martinez-Amaya was a leader of the Normandie clique, one of a number of smaller MS-13 groups operating in the Washington area. Ayala was a leader of the Sailors, another clique.  The local cliques often act together, and evidence showed that Machado-Erazo was the leader of a program of cliques that worked together.  According to evidence presented in court, the local MS-13 cliques act in accordance with the international MS-13’s strictures and have frequent contact with MS-13 leadership in El Salvador.  The evidence showed that two of the murders were committed on orders from MS-13 leadership in El Salvador.

The three defendants are among numerous people indicted by a grand jury in 2010 following a federal investigation.  Twelve others have pleaded guilty to charges in the case.

The range of criminal activity alleged in the indictment includes acts committed from 2008 through 2010 in the District of Columbia, Maryland, Virginia and other states.

Ayala was convicted of taking part in two murders in 2008, and Machado-Erazo and Martinez-Amaya were convicted of taking part in the murder of another victim.

The government presented evidence that Ayala helped carry out orders to murder Louis Alberto Membreno-Zelaya, a fellow MS-13 member who had removed his gang tattoos.  Membreno-Zelaya, 27, was stabbed at least 20 times, according to evidence presented in court. His body was found on Nov. 6, 2008, in Northwest Washington.

The second murder, according to evidence presented in court, took place in the late afternoon of Dec. 12, 2008.  Ayala joined in on an attack against Giovanni Sanchez, 14, near the Columbia Heights Metro station in Washington.  Giovanni had 11 stab wounds, and witnesses identified Ayala as one of the assailants.

According to evidence presented at trial, Machado-Erazo and Martinez-Amaya took part in the killing of Felipe Enriquez, 25, whose body was found on March 31, 2010, in Montgomery County, Md.  Enriquez, another fellow MS-13 member, was fatally shot.  Evidence presented during trial showed that Machado-Erazao provided the gun and Martinez-Amaya committed the shooting.

This case was prosecuted by Assistant U.S. Attorney Nihar Mohanty of the District of Columbia and Trial Attorney Laura Gwinn of the Criminal Division’s Organized Crime and Gang Section.

The case was investigated by ICE-HSI and the MPD.  Assistance was provided by the Montgomery County and the Prince George’s County, Md. Police Departments, the State’s Attorney’s Office for Montgomery County, the U.S. Attorney’s Office for the District of Maryland and the U.S. Attorney’s Office for the Eastern District of Virginia.  Assistance was provided by the Organized Crime Drug Enforcement Task Force (OCDETF).

Larry Lehmann of Giddings, Texas has agreed to pay $400,000 to settle allegations that he violated the False Claims Act in connection with the Federal Communications Commission’s E-rate Program, the Department of Justice announced today. The E-rate Program, created by Congress in the Telecommunications Act of 1996, subsidizes eligible equipment and services to make Internet access and internal networking more affordable for public schools and libraries.  The Houston Independent School District (HISD) was one of the applicants that successfully sought and received E-rate subsidies from 2004 through 2006.
 
“The E-rate Program provides vital support for our nation’s students and schools,” said Stuart F. Delery, Assistant Attorney General for the Civil Division of the Department of Justice.  “We are committed to protecting the integrity of this important program, which helps our children connect to the digital world.”
 
“Our office is committed to protecting the integrity of government initiatives,” said U.S. Attorney Kenneth Magidson.  “We will continue to work closely with the Department in cases such as this one to ensure the E-rate and other federal programs are free from fraudulent and deceitful claims.”
 
Lehmann functioned as the CEO and managing partner of Acclaim Professional Services (Acclaim), which partnered with other companies to provide E-rate funded equipment and services to HISD during this period.  The United States contended that, in violation of E-rate competitive bidding requirements and HISD procurement rules, Lehmann provided gifts and loans to HISD employees, including tickets to sporting events and two loans totaling $66,750 to an HISD employee who was involved in the procurement and administration of HISD’s E-rate projects.
 
The United States also alleged that Lehmann helped devise a scheme in which HISD outsourced some of its employees to Acclaim, which allowed them to continue to work for HISD while passing the cost on to the E-rate Program.  The United States further alleged that, with Lehmann’s approval, Acclaim hid the cost of these employees in its E-rate Program invoices by rolling them into the cost of eligible goods and services.        
 
The settlement with Lehmann is part of a broader investigation by the United States of E-rate funding requests submitted by HISD and the Dallas Independent School District (DISD).  The government previously recovered $16.25 million from Hewlett-Packard, $850,000 from HISD, and $750,000 from DISD.  The government’s investigation was initiated, in part, by a qui tam or whistleblower lawsuit filed under the False Claims Act by Dave Richardson and Dave Gillis, who investigated allegations of improprieties based on Richardson’s experience bidding for contracts at HISD and DISD.  The False Claims Act authorizes private parties to file suit for false claims on behalf of the United States and share in the government’s recovery.  The United States intervened in Richardson and Gillis’ lawsuit, and added Lehmann as a defendant. 
 
“E-rate is one of the FCC’s biggest success stories, helping connect nearly every U.S. library and school to the Internet,” said Julie Veach, Chief of the FCC Wireline Competition Bureau.  “We take any abuse of our rules seriously and thank the Department of Justice for their assistance in protecting the integrity of the E-rate Program for students, teachers, and libraries across the country.  Today’s action is a signal to those interested in profiting at the expense of our nation’s schools and libraries: fraud doesn’t pay.”
 
This case was handled by the U.S. Department of Justice’s Civil Division, the U.S. Attorney’s Office for the Southern District of Texas, and the FCC’s Office of the Inspector General and Office of the General Counsel.
 
The claims resolved by this settlement are allegations only, and there has been no determination of liability.  The lawsuit against Lehmann is captioned United States ex rel. Dave Richardson and Dave Gillis v. Larry Lehmann, Civil Action No. 4:05-cv-3836 (S.D. Tex.).

Xavier Jiménez-Benceví, aka “Xavi,” 28, was sentenced to life in prison following his conviction for murdering a federal witness on a drug trafficking case.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and U.S. Attorney Rosa Emilia Rodríguez-Vélez of the District of Puerto Rico made the announcement after sentencing by U.S. District Judge Jose A. Fuste.

On April 30, 2013, Jiménez-Benceví was convicted of the murder of a federal witness, possession of a firearm, attempted kidnapping and possession of a machine gun.  According to evidence presented in court, on June 21, 2010, Jimenez-Benceví enlisted the help of others to lure Delia Sánchez-Sánchez – a woman he believed was about to report his drug trafficking activities to federal agents – to the parking lot of a supermarket, where Jimenez-Benceví executed her with a fully automatic 9mm handgun. 

Evidence provided in court also showed that Jimenez-Benceví was previously convicted in Puerto Rico of murdering Eduardo Cabrerra-Arriba on Aug. 28, 2007, and shooting at three police officers in the Falin Torrech public housing project on Sept. 16, 2010.  In addition, the court heard evidence that Jimenez-Benceví wounded 11 people with a shooting at the Victory Shopping Center on May 25, 2011.

The case was investigated by the FBI and the Puerto Rico Police Department, and prosecuted by Assistant U.S. Attorneys José Capó-Iriarte, Ilianys Rivera-Miranda and Luke V. Cass, and Trial Attorneys James D. Peterson and Rich Burns of the Criminal Division’s Capital Case Unit.

Dr. Farid Fata, 48, of Oakland Township, Michigan, was arrested this morning and charged in a criminal complaint for his role in a health care fraud scheme which involved submitting false claims to Medicare for services that were medically unnecessary, including chemotherapy treatments. 

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, FBI Special Agent in Charge Robert D. Foley III and Special Agent in Charge Lamont Pugh of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

“Dr. Fata allegedly perpetrated a brazen and dangerous fraud that time and again jeopardized his patients’ wellbeing,” said Acting Assistant Attorney General Raman. “The conduct alleged today is chilling, with the defendant endangering patient safety through misdiagnoses, over- or mis-prescription of chemotherapy and other treatments, and delay of hospital care for patients with serious injuries.  Through the work of our dedicated prosecutors and agents, today we have taken swift action to safeguard patient safety and hold the defendant to account.” 

“Our first priority is patient care,” said U.S. Attorney McQuade. “The agents and attorneys acted with great attention to detail to stop these allegedly dangerous practices as quickly as possible, and we have set up a victim hotline so that patients can access their files and get questions answered.”

“Violating a patient's trust and placing them at risk through fraudulent abuse of our nation's health care system is deplorable and a crime which the FBI takes most seriously,” said FBI Special Agent in Charge Foley. “The FBI remains committed to the arrest and prosecution of those who commit health care fraud.”

“The conduct alleged in this complaint is serious, not only in terms of potential Medicare dollars improperly obtained, but patient safety as well,” said HHS-OIG Special Agent in Charge Pugh.  “The OIG will aggressively investigate allegations of this nature in order to ensure the safety of Medicare patients and to protect vital taxpayer dollars.”

According to the complaint, Dr. Fata owns and operates Michigan Hematology Oncology Centers (MHO), which has offices in Clarkston, Bloomfield Hills, Lapeer, Sterling Heights, Troy and Oak Park.  It was through MHO that Dr. Fata allegedly submitted fraudulent claims to Medicare for medically unnecessary services, including chemotherapy treatments, Positron Emission Tomograph (PET) scans and a variety of cancer and hematology treatments for patients who did not need them.  In the course of the scheme, Dr. Fata falsified and directed others to falsify documents to justify cancer treatments for billing purposes.  MHO billed Medicare for approximately $35 million dollars over a two-year period, approximately $25 million of which is attributable to Dr. Fata.

The complaint further alleges that Dr. Fata directed the administration of unnecessary chemotherapy to patients in remission; deliberate misdiagnoses of patients as having cancer to justify unnecessary cancer treatment; administration of chemotherapy to end-of-life patients who would not have benefitted from the treatment; deliberate misdiagnoses of patients without cancer to justify expensive testing; fabrication of other diagnoses such as anemia and fatigue to justify unnecessary hematology treatments, and distribution of controlled substances to patients without medical necessity or through administering the drugs at dangerous levels.

Dr. Fata will be making his initial appearance in federal court this afternoon at 1 p.m. in Detroit.

Patients who have questions concerning their medical records and/or information regarding this investigation and prosecution can call the United States Attorney’s Office Information Line at 888-702-0553.
 
The case is being prosecuted by Assistant Chief Catherine Dick, supervisor of the Detroit Medicare Fraud Strike Force and Trial Attorney Matthew Thuesen of the Department of Justice as well as Sarah Resnick Cohen, Deputy Chief of the Health Care Fraud Unit at the U.S. Attorney’s Office, and Justin Bidwell, Special Assistant United States Attorney.  The investigations were conducted jointly by the FBI and HHS-OIG, along with the assistance of the Michigan Attorney General’s Office.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion.  In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

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

Attorney General Eric Holder and U.S. Attorney for the Western District of North Carolina Anne M. Tompkins announced today that the United States has filed a civil lawsuit against Bank of America Corporation and certain of its affiliates, including Merrill Lynch, Pierce, Fenner & Smith f/k/a/ Banc of America Securities, LLC, Bank of America, N.A., and Banc of America Mortgages Securities, Inc. (collectively “Bank of America”). The complaint alleges that Bank of America lied to investors about the relative riskiness of the mortgage loans backing the residential mortgage-backed securities (RMBS), made false statements after intentionally not performing proper due diligence and filled the securitization with a disproportionate amount of risky mortgages originated through third party mortgage brokers. 

This announcement is part of the ongoing efforts of President Obama’s Financial Fraud Enforcement Task Force’s RMBS Working Group and is accompanied by an announcement by the Securities and Exchange Commission (SEC) that it has filed civil charges in federal court in Charlotte, N.C. against Bank of America for defrauding investors. 

“Today's filing marks the latest step forward in the Justice Department’s ongoing efforts to hold accountable those who engage in fraudulent or irresponsible conduct,” said Attorney General Eric Holder.  “As this action proves, President Obama’s Financial Fraud Enforcement Task Force will continue to take an aggressive approach to combating financial fraud and uncovering abuses in the residential mortgage-backed securities market. As we proceed with this case, and pursue a range of additional investigations, we will continue to use every tool, resource, and appropriate authority to ensure stability, accountability, and – above all – justice for those who have been victimized.”

“This is the RMBS Working Group’s most recent legal enforcement targeting misconduct in the RMBS market, but it will not be our last,” said Associate Attorney General Tony West. “Combating financial fraud is a top priority for the Department of Justice.  By filing this lawsuit today, we reaffirm an important principle – that everyone must play by the same set of rules, and no institution is too big or too powerful to escape appropriate enforcement.  It is also a testament to the cooperation and coordination among the Working Group’s members, as the Justice Department and the SEC brought to bear their collective expertise and resources to build these cases against Bank of America.”

“Bank of America’s reckless and fraudulent origination and securitization practices in the lead-up to the financial crisis caused significant losses to investors,” U.S. Attorney Tompkins said. “Now, Bank of America will have to face the consequences of its actions. We have made a commitment to the American people to hold financial institutions accountable for practices that violated the law and wreaked havoc on the financial system, and my office takes that commitment very seriously. Our investigation into Bank of America’s mortgage and securitization practices continues.”

“I applaud Attorney General Holder for taking this important step toward holding Bank of America accountable for packaging and selling toxic loans to investors and brokers, a key cause of the housing collapse that crashed our economy and still plagues communities to this day,” said New York Attorney General Eric Schneiderman. “As a Co-Chair of the Working Group, I look forward to further action to address the causes and consequences of the financial crisis. The housing crisis in New York is far from over, and actions like these are necessary to ensure that homeowners are protected from similar conduct by banks and lenders in the future.”

A residential mortgage-backed security is a bond backed by of a pool of residential mortgage loans that were packaged together and sold in different tranches (or risk-levels) to investors. 

The civil complaint filed today in U.S. District Court in Charlotte alleges that Bank of America defrauded investors, including federally insured financial institutions, who purchased more than $850 million in RMBS from Bank of America Mortgage Securities 2008-A (BOAMS 2008-A) securitization. The government’s civil complaint also seeks civil penalties from Bank of America under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA). According to the complaint, in or about January 2008, Bank of America sold BOAMS 2008-A RMBS certificates to investors by knowingly and willfully making materially false and misleading statements and by failing to disclose important facts about the mortgages collateralizing the RMBS, including Bank of America’s failure to conduct loan level due diligence in the offering documents filed with the U.S. Securities and Exchange Commission (SEC). These misstatements and omissions concerned the quality and safety of the mortgages collateralizing the BOAMS 2008-A securitization, how it originated those mortgages and the likelihood that the “prime” loans would perform as expected.
 
First, according to the filed complaint, a material number of the mortgages in the BOAMS 2008-A collateral pool failed to materially adhere to Bank of America’s underwriting standards.  Specifically, more than 40% of the 1,191 mortgages in the BOAMS 2008-A collateral pool did not substantially comply with Bank of America’s underwriting standards in place at the time they were originated and did not have sufficient documented compensating factors.  As alleged in the complaint, Bank of America knew that specific loans in the BOAMS 2008-A collateral pool did not materially adhere or comply with Bank of America’s underwriting standards.

Second, Bank of America did not conduct any loan-level due diligence at the time of securitization.  According to the complaint, this was a violation of Bank of America’s own policies, procedures and prior practice, and was contrary to industry standards and investor expectations.  Moreover, this decision allowed Bank of America to keep bad loans in the deal. According to the complaint, these bad loans had a range of glaring origination problems, such as overstated income, fake employment, inflated appraisals, wrong loan-to-value ratios, undisclosed debt, occupancy misrepresentation, mortgage fraud and other red flags wholly inconsistent with a purportedly prime securitization. As a result of this lack of due diligence, Bank of America had no basis to make many of the representations it made in the offering documents regarding the credit quality of the underlying mortgages. 

Finally, Bank of America concealed important risks associated with the mortgages backing the BOAMS 2008-A securitization. For example, Bank of America originated more than 70% of the loans through third party mortgage brokers. These loans, known as “wholesale mortgages,” were riskier than similar mortgages originated directly by Bank of America. More significantly, at the same time Bank of America was finalizing this deal, it was receiving a series of internal reports that showed an alarming and significant decrease in the quality and performance of its wholesale mortgages. According to the complaint, Bank of America did not disclose that important information or the associated risks to investors.   

Investors in the BOAMS 2008-A certificates have already suffered millions of dollars in losses and it is estimated that total losses sustained by investors will exceed $100 million.

FIRREA permits the Attorney General to commence civil actions to recover penalties from, among others, people who violate specified provisions of Title 18 of the United States Code, including 18 U.S.C. § 1001 (false statement to government) and 18 U.S.C. § 1014 (false statement to financial institution). In such actions, the civil penalties assessed may equal $1.1 million per violation, or, for a continuing violation, up to $1.1 million per day or $5.5 million, whichever is less pursuant to(12 U.S.C. § 1833(a)(b)(1)-(2); see also 28 C.F.R. § 85.3. The statute further provides that the penalty can exceed these limits to permit the recovery of the amount of monetary gain received from or the amount of monetary loss caused by the violations under  12 U.S.C. §1833a(b)(3).

Attorney Tompkins thanked the U.S. Securities and Exchange Commission, Division of Enforcement, Atlanta Regional Office for its significant cooperation.  The case is being handled by Assistant United States Attorneys Daniel S. Ryan and Mark T. Odulio of the United States Attorney’s Office in Charlotte.

The RMBS Working Group is a federal and state law enforcement effort focused on investigating fraud and abuse in the RMBS market that helped lead to the 2008 financial crisis. The RMBS Working Group brings together more than 200 attorneys, investigators, analysts and staff from dozens of state and federal agencies including the Department of Justice, ten U.S. Attorneys’ Offices, the FBI, the SEC, the Department of Housing and Urban Development (HUD), HUD’s Office of Inspector General, the Federal Housing Finance Agency’s Office of Inspector General, the Office of the Special Inspector General for the Troubled Asset Relief Program, the Federal Reserve Board’s Office of Inspector General, the Recovery Accountability and Transparency Board, the Financial Crimes Enforcement Network, and more than  ten state Attorneys General offices around the country.

The RMBS Working Group is led by five co-chairs: Acting Assistant Attorney General for the Criminal Division Mythili Raman, Assistant Attorney General for the Civil Division Stuart Delery, Co-Director of the SEC’s Division of Enforcement George Canellos, U.S. Attorney for the District of Colorado John Walsh and New York Attorney General Eric Schneiderman.

Learn more about the Residential Mortgage- Backed Securities Working Group and the Financial Fraud Enforcement Task Force at www.stopfraud.gov.

For more information on the SEC’s charges against Bank of America, please visit: http://www.sec.gov/News/PressRelease/Detail/PressRelease/1370539751924.

NEW YORK -- Immigration Judge Alice Segal from the Executive Office for Immigration Review, New York Immigration Court, delivered the keynote speech and administered the oath of allegiance to approximately 150 candidates during a naturalization ceremony at 26 Federal Plaza in New York on August 2, 2013. The New York District Office of U.S. Citizenship and Immigration Services, Department of Homeland Security, hosted the ceremony.

Biographical Information

Attorney General Eric Holder appointed Judge Segal in October 2010. Judge Segal received a bachelor of arts degree in 1992 from the University of Pennsylvania and a juris doctorate in 1995 from George Washington University Law School. From 2007 to October 2010, she was a senior attorney for U.S. Immigration and Customs Enforcement (ICE), Department of Homeland Security, in New York. From 1998 to 2007, Judge Segal was an assistant chief counsel for ICE, New York. From August 2004 to December 2004, she served as a special assistant U.S. Attorney for the U.S. Attorney’s Office, Eastern District of New York. From 1995 to 1998, she served as a law clerk and attorney advisor for the Executive Office for Immigration Review, Board of Immigration Appeals, entering on duty through the Attorney General’s Honors Program. Judge Segal is a member of the New York State and New Jersey State Bars.

- 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.

Christian Fernando Borda, a major narcotics trafficker aligned with paramilitary groups in Colombia, was sentenced today to serve 25 years in prison for conspiring to import ton-quantities of cocaine into the United States, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Administrator Michele M. Leonhart of the Drug Enforcement Administration (DEA).

Borda, 49, aka “Tony,” was sentenced by U.S. District Judge Gladys Kessler in the District of Columbia.  Borda’s sentence included a mandatory minimum prison term of 20 years due to his 1998 conviction in the Southern District of Florida for possession with intent to distribute five kilograms or more of cocaine.  In addition to his prison term, Borda was sentenced to serve 10 years of supervised release and ordered to pay a fine of $6.5 million.

“Christian Borda will spend 25 years in prison for leading a massive international drug trafficking operation that conspired to move vast quantities of cocaine into the United States,” said Acting Assistant Attorney General Raman.  “The substantial prison term secured against Borda would not have been possible without the extensive cooperation between law enforcement in the U.S. and abroad, and it demonstrates our commitment to holding drug traffickers accountable for their crimes.”

“Our relentless pursuit of justice alongside our Colombian partners has ensured Christian Fernando Borda will be punished for his criminal activities,” said DEA Administrator Leonhart. “For years, Borda operated a massive drug trafficking and money laundering enterprise, which facilitated the AUC’s terrorist activities.  This successful investigation demonstrates the strong will and skill of the United States and Colombian governments to rid the world of the most dangerous and ruthless drug traffickers and facilitators.”

Following a trial that lasted almost seven weeks, Borda was convicted by a federal jury on Dec. 9, 2010, of one count of conspiracy to distribute five kilograms or more of cocaine, knowing and intending that the substances would be unlawfully imported into the United States. 

Borda, a Colombian national, led a major international narcotics trafficking organization based in Colombia that transported ton-quantities of cocaine from Colombia to the United States and elsewhere via Mexico.  As the leader of this drug trafficking group, Borda obtained large amounts of cocaine from Colombian sources and directed others who took part in the drug trafficking activities.  One of their shipments of cocaine in 2005 involved approximately 1,500 kilograms that were smuggled in a containerized shipment of drums of palm oil on a vessel departing from the north coast of Colombia. 

The evidence further showed that Borda conspired with others to distribute tons of cocaine in Colombia, Mexico and elsewhere, with the knowledge and intent that the cocaine would be imported into the United States.

Borda was one of seven defendants charged with drug trafficking offenses in an indictment filed on March 16, 2007.  He was extradited to the United States from Colombia in October 2009 and was ordered detained in federal custody pending trial.

Borda’s co-defendant, Alvaro Alvaran-Velez, is scheduled to be sentenced on Sept. 3, 2013, before U.S. District Judge Gladys Kessler in the District of Columbia.
 
The case was prosecuted by Trial Attorneys Paul W. Laymon and Robert J. Raymond of the Criminal Division’s Narcotic and Dangerous Drug Section, and Charles D. Griffith Jr., now of the Criminal Division’s Office of Enforcement Operations.  The Criminal Division’s Office of International Affairs provided significant assistance in the provisional arrest and extradition of Borda, and the Criminal Division’s Asset Forfeiture and Money Laundering Section provided assistance at sentencing.  The investigation in this case was initiated by the DEA Miami Field Division in approximately 2004.  The DEA Houston Field Division conducted a related investigation.  Both investigations were conducted with assistance by the DEA's county offices in Cartagena and Bogota, Colombia, Mexico City and Guadalajara, Mexico.  The U.S. Coast Guard provided valuable investigative assistance.  The investigation also involved unprecedented cooperation from the Colombian National Police and the Colombian Fiscalia.  The case, known as Operation Acapulco Express, was part of an operation assisted by the Organized Crime Drug Enforcement Task Force (OCDETF) in Washington, D.C. 

The Justice Department announced today that it has reached a cooperative settlement agreement with the city of Henderson, Nev. under the Americans with Disabilities Act (ADA).

The Justice Department received complaints by individuals who are deaf that officers for the city of Henderson did not provide them with qualified sign language interpreters and other auxiliary aids and services when needed for effective communication.  One of the complainants had been arrested and detained for two days in the Henderson detention facility, while the other was an alleged crime victim.   

During the course of its investigation into the allegations, the department inquired whether the city of Henderson would be interested in resolving the matter voluntarily. The city expressed its full commitment to ensure compliance with the ADA.

The resulting settlement agreement includes some model ways to ensure people who are deaf or hard of hearing are able to communicate effectively with law enforcement.  For instance, officers for Henderson will use a pictogram to ask whether a deaf or hard of hearing person requests a sign language interpreter: www.justice.gov/opa/images/sign-lang-small.gif .

Once the person expresses a need for a sign language interpreter, Henderson has agreed to provide one under most circumstances, usually within an hour of the request.

“People who are deaf or hard of hearing must be able to communicate clearly with law enforcement, whether they are crime victims, witnesses, arrestees, detainees or just members of the public,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division.

“This agreement provides an effective model for Nevada’s – and the nation’s – law enforcement communities to work with deaf and hard of hearing citizens.  The people of Henderson should be proud of their city’s leadership, including Mayor Andy A. Hafen and Police Chief Patrick Moers,” said U.S. Attorney for the District of Nevada Daniel G. Bogden.  “The commitments made by Henderson are simple and cost-effective; the city will be better able to protect public safety while complying with the Americans with Disabilities Act.”

Under the settlement, the city of Henderson will pay a total of $35,000 to the complainants.  In addition, it will renew contracts with qualified sign language interpreters to ensure ready availability, train law enforcement officers, staff members, and volunteers on the ADA, take additional steps to notify the public of the city’s ADA Coordinator, post signs indicating the availability of sign language interpreters and other auxiliary aids and services for people who are deaf or hard of hearing, provide text telephones and volume control telephones, modify its handcuffing policies for people who use sign language or hand writing to communicate, stock and provide hearing aid and cochlear implant processor batteries in the detention facility, and adopt other policies consistent with the ADA.

For more information on the ADA and law enforcement, visit www.ada.gov. Those interested in finding out more about this settlement or the obligations of law enforcement under the ADA may also call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov . ADA complaints may be filed by email to ada.complaint@usdoj.gov .

The Justice Department announced today the filing of a lawsuit with the Executive Office of Immigration Review’s Office of the Chief Administrative Hearing Officer (OCAHO), against Autobuses Ejecutivos LLC, d/b/a Omnibus Express, a bus company based in Houston. 

The complaint alleges Omnibus Express violated the Immigration and Nationality Act’s (INA) anti-discrimination provision by preferring to hire temporary nonimmigrant visa holders over U.S. citizens, certain lawful permanent residents and other protected individuals for bus driver positions.  Specifically, the complaint states that from at least September 2012 to February 2013, Omnibus Express failed to consider the applications of many qualified U.S. citizens and other protected individuals, or actively discouraged them from pursuing their applications, while at the same time petitioning the U.S. Department of Labor (DOL) and U.S. Citizenship and Immigration Services (USCIS) for permission to hire up to 50 foreign workers on H-2B visas.  The H-2B program allows U.S. employers to bring foreign nationals to the United States to fill temporary nonagricultural jobs when there are not enough U.S. workers who are able, willing or qualified to do the temporary work.  The complaint further alleges that Omnibus Express hired 42 H-2B workers during this period, and in doing so, represented to the DOL and USCIS that there were not enough qualified workers in the United States to fill the 50 bus driver positions.  The complaint seeks an order prohibiting future discrimination by Omnibus Express, civil penalties, back pay for injured parties and injunctive relief. The INA’s anti-discrimination provision prohibits employers from discriminating in hiring against certain workers based on their citizenship status.

“The nation’s current immigration law protects individuals in the United States, such as U.S. citizens, certain lawful permanent residents, refugees and asylees, from unlawful discrimination in hiring based on their citizenship status,” said Jocelyn Samuels, Acting Assistant Attorney General for the Justice Department’s Civil Rights Division. “We are committed to enforcing the INA so that work-authorized individuals have equal access to employment in the United States.”

The Office of Special Counsel for Immigration-Related Unfair Employment Practices (OSC) is responsible for enforcing the anti-discrimination provision of the INA, which prohibits employers from discriminating against work-authorized individuals on the basis of citizenship status or national origin in hiring, firing, recruitment or referral for a fee. 

For more information about protections against employment discrimination under federal immigration law, call OSC’s worker hotline at 1-800-255-7688 (1-800-237-2525, TTY for hearing impaired), OSC’s employer hotline at 1-800-255-8155 (1-800-237-2525, TTY for hearing impaired) or 202-616-5594, sign up for a free webinar at www.justice.gov/crt/about/webinars.php ; email osccrt@usdoj.gov ; or visit OSC’s website at www.justice/gov/crt/about/osc .

Glen Alan Ward, 48, a former Los Angeles resident who fled to Canada and was a federal fugitive for 12 years, was sentenced today to serve 132 months in prison for aggravated identity theft and bankruptcy fraud in connection with his leading role in a nearly 15-year foreclosure-rescue scam that fraudulently postponed foreclosure sales for more than 800 distressed homeowners.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney André Birotte Jr. of the Central District of California, U.S. Attorney for the Northern District of California Melinda Haag, Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office, Special Agent in Charge David J. Johnson of the FBI’s San Francisco Field Office and Special Inspector General for the Troubled Asset Relief Program Christy Romero made the announcement.

Ward was sentenced by U.S. District Judge Dale S. Fischer in the Central District of California.  In addition to his prison term, Ward was sentenced to serve three years of supervised release and ordered to pay approximately $60,000 in restitution.

Ward pleaded guilty on April 8, 2013, in connection with three separate sets of charges in the Central and Northern Districts of California, all stemming from Ward’s 15-year fraud.  In 2000, Ward became a federal fugitive when he failed to appear in court after signing a plea agreement, which arose out of federal charges in 2000 in the Central District of California related to Ward’s early conduct in the scheme.  In 2002, Ward was indicted on multiple counts of bankruptcy fraud in the Northern District of California for continuing the scheme in and around San Francisco.  On Aug. 17, 2012, Ward was indicted on mail fraud, aggravated identity theft, and additional bankruptcy fraud counts in the Central District of California after fleeing to Canada and continuing his fraud from there.  While in Canada, Ward recruited Frederic Alan Gladle, who was indicted in the Central District of California for bankruptcy fraud and identity theft in 2011, and was sentenced in 2012 on his guilty plea to 61 months in custody for engaging in similar conduct.

On April 5, 2012, Ward was arrested in Canada by the Royal Canadian Mounted Police and the Waterloo Regional Police Service based on a U.S. provisional arrest warrant.  On Dec. 21, 2012, Ward was extradited to the United States to answer all three sets of charges.

According to the plea agreement, Ward led a scheme that solicited and recruited homeowners whose properties were in danger of imminent foreclosure.  Ward promised to delay their foreclosures for as long as the homeowners could afford his $700 monthly fee.  Once a homeowner paid the fee, Ward accessed a public bankruptcy database and retrieved the name of an individual debtor who recently filed bankruptcy.  Ward admitted that he obtained copies of unsuspecting debtors’ bankruptcy petitions and directed his clients to execute, notarize and record a grant deed transferring generally a 1/100th fractional interest in their distressed home into the name of the debtor that Ward provided.  Then, after stealing the debtor’s identity, Ward faxed a copy of the bankruptcy petition, the notarized grant deed and a cover letter to the homeowner’s lender or the lender’s representative, directing it to stop the impending foreclosure sale due to the bankruptcy. 

Because bankruptcy filings give rise to automatic stays that protect debtors’ properties, the receipt of the bankruptcy petitions and deeds in the debtors’ names forced lenders to cancel foreclosure sales.  The lenders, which included banks that received government funds under the Troubled Asset Relief Program (TARP), could not move forward to collect money that was owed to them until getting permission from the bankruptcy courts, thereby repeatedly delaying the lenders’ recovery of their money for months and even years.  In addition, if a distressed homeowner wanted to complete a loan modification or short sale, they were left to the mercy of Ward to send them forged deeds, supposedly signed by the debtors, to re-unify their title as required by most lenders.

As part of the scheme, Ward delayed the foreclosure sales of approximately 824 distressed properties by using at least 414 bankruptcies filed in 26 judicial districts across the country.  During that same period, Ward admitted to collecting from his clients who paid for his illegal foreclosure-delay services more than $1.2 million.

The investigation was conducted by the Office of the Special Inspector General for the Troubled Asset Relief Program and the FBI, which received substantial assistance from the U.S. Trustee’s Office.  In addition, the Office of International Affairs of the Department of Justice, Canadian Waterloo Regional Police Service and Royal Canadian Mounted Police provided exceptional support and assistance in connection with Ward’s arrest and extradition.

This case was prosecuted by Assistant U.S. Attorney Evan Davis of the U.S. Attorney’s Office for the Central District of California with assistance from the Criminal Division’s Fraud Section.  Assistant U.S. Attorney Jonathan Schmidt is prosecuting the charges in the Northern District of California, which were transferred to the Central District of California for entry of the guilty pleas. 

This prosecution is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF), which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes.  With more than 20 federal agencies, 94 U.S. Attorney’s offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud.  Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations.  Over the past three fiscal years, the Justice Department has filed more than 10,000 financial fraud cases against nearly 15,000 defendants, including more than 2,700 mortgage fraud defendants.  For more information on the task force, visit www.stopfraud.gov.

Two individuals, Donald Torriero and Julius DeSimone, were sentenced in federal court in Utica, N.Y., for illegally dumping thousands of tons of asbestos-contaminated construction debris on a 28-acre piece of property on the Mohawk River in upstate New York, the Justice Department announced.

U.S. District Judge David N. Hurd sentenced Torriero to serve 36 months in prison followed by three years of supervised release. Torriero was immediately remanded into custody of the U.S. Marshals. DeSimone was sentenced to five years’ probation, including six months of home confinement. Both were ordered to pay $492,000 in restitution for, among other things, cleanup expenses at the site.

The two pleaded guilty to conspiring to violate the Clean Water Act, the Superfund statute, wire fraud and to defrauding the United States. In addition, Torriero pleaded guilty to substantive wire fraud charges, and DeSimone was convicted of making false statements to law enforcement in connection with a fabricated "permit letter" the conspirators created and used to dump at the site.

According to the evidence, Torriero, DeSimone and others conspired to fill in the entire property over the course of five years with pulverized construction and demolition debris that was processed at New Jersey solid waste management facilities and then transported to open property in Frankfort, N.Y.  The plot was uncovered by law enforcement just months after the operation began, but not before the conspirators had already dumped at least 400 truckloads of debris at the site. Much of the material that was dumped was placed in and around waters of the United States and some of the material was found to be contaminated with asbestos. The conspirators then concealed the illegal dumping and recruited others to join in the illegal dumping by fabricating a New York State Department of Environmental Conservation (DEC) permit and forged the name of a DEC official on the fraudulent permit. 

“Torriero and DeSimone endangered the health of both their fellow citizens and sensitive wetlands by violating numerous laws meant to ensure the proper disposal of toxic materials. They also committed other criminal acts in their attempts to cover up their misdeeds,” stated Acting Assistant Attorney General Robert Dreher of the Justice Department’s Environment and Natural Resources Division. “Holding these men responsible for their criminal activities will serve as notice to others involved in similar schemes that the Justice Department will not tolerate such flagrant disregard for the law and the environment.”

“Asbestos can cause cancer and other serious respiratory diseases; there is no safe level of exposure to it,” said Vernesa Jones-Allen, Acting Special Agent in Charge of EPA’s Criminal Investigation Division in New York. “The defendants in this case conspired to illegally dispose asbestos containing material. This case demonstrates that the American people will not tolerate those who make money by breaking the law and damage the environment.”  

“This case demonstrates the commitment of local, state and federal law enforcement agencies to work together to protect the environment and the health of the citizens we serve,” said Richard S. Hartunian, U.S. Attorney for the Northern District of New York. “I commend all the law enforcement officers involved in this case for their hard work in bringing Torriero and DeSimone to justice.”

“The disposal of hazardous materials is closely regulated in New York State to protect public health and our environment,” said New York State Department of Environmental Conservation (DEC) Commissioner Joe Martens. “The forgery of permits by the defendants in this case was a blatant and potentially dangerous criminal act that undermined the integrity of the permit system. I applaud the collaborative work of DEC investigators and partners to halt this illegal dumping, apprehend the perpetrators, and bring them to justice.”

This case is related to the guilty pleas and sentencings associated with Eagle Recycling, Mazza & Sons Inc., Dominick Mazza, Cross Nicastro and Jon Deck. Mr. Deck is the last remaining individual awaiting sentencing. 

This case was investigated by the New York State Environmental Conservation Police, Bureau of Environmental Crimes, EPA’s Criminal Investigation Division, Internal Revenue Service, New Jersey State Police Office of Business Integrity Unit, New Jersey Department of Environmental Protection, and Ohio Department of Environmental Protection. The case is being prosecuted by Assistant U.S. Attorney Craig A. Benedict of the Northern District of New York, and Trial Attorneys Todd W. Gleason and Gary Donner of the Environmental Crimes Section of the Justice Department’s Environment and Natural Resources Division.

A former FBI agent and two others have been charged in the Southern District of New York with engaging in a bribery scheme to secure confidential, internal law enforcement documents about a prominent individual in Bangladesh.

Acting Assistant U.S. Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Preet Bharara of the Southern District of New York, and Inspector General Michael E. Horowitz of the Department of Justice made the announcement.

 Robert Lustyik, 50, a former FBI special agent in the White Plains Resident Agency, is accused in a criminal complaint of conspiring with his friend, Johannes Thaler, 49, of soliciting cash payments from Thaler’s acquaintance, Rizve Ahmed, 34, aka “Caesar,” in exchange for confidential, internal law enforcement documents and information that Lustyik could access by virtue of his position at the FBI.  Ahmed and Thaler were arrested today on the charges in the complaint and will be presented later today before U.S. Magistrate Judge George A. Yanthis in the federal court in White Plains.  Lustyik is currently detained in connection with an unrelated indictment in U.S. District Court for the District of Utah, where he will be initially presented on the charges in the complaint.

Lustyik, Thaler, and Ahmed are each charged in a four-count complaint. Count one charges Lustyik, Thaler, and Ahmed with conspiring to bribe a public official.  Count two charges Lustyik and Thaler with soliciting and receiving bribes.  Count three charges Ahmed with bribing a public official and offering to bribe a public official.  Count four charges Lustyik with unlawfully disclosing a Suspicious Activity Report. 

If convicted, Lustyik, of Westchester County, faces a maximum sentence of 25 years in prison. Thaler, of Fairfield County, Conn., faces a maximum sentence of 20 years in prison. Ahmed, of Fairfield County, faces a maximum sentence of 20 years in prison.
 
According to allegations in the complaint unsealed today in the White Plains federal courthouse, from about September 2011 through March 2012, Lustyik, Thaler and Ahmed engaged in a bribery scheme on behalf of Ahmed, a native of Bangladesh who sought confidential law enforcement information pertaining to a prominent citizen of Bangladesh who was affiliated with an opposing political party (Individual 1).  Ahmed sought, among other things, to obtain information about Individual 1, to locate Individual 1, and to harm Individual 1 and others associated with Individual 1.

As part of the scheme, Lustyik and Thaler exchanged text messages, including messages about how to pressure Ahmed to pay them additional money in exchange for confidential information.  For example, in text messages, Lustyik told Thaler, “we need to push [Ahmed] for this meeting and get that 40 gs quick . . . . I will talk us into getting the cash . . . . I will work my magic . . . . We r sooooooo close.”  Thaler responded, “I know.  It’s all right there in front of us.  Pretty soon we’ll be having lunch in our oceanfront restaurant . . . .”  As another example, in or about late January 2012, Lustyik, upon learning that Ahmed was considering using a different source to obtain confidential information about Individual 1, texted Thaler, “I want to kill [Ahmed] . . . . I hung my [***] out the window n we got nothing? . . . . Tell [Ahmed], I’ve got [Individual 1’s] number and I’m pissed. . . . I will put a wire on n get [Ahmed and his associates] to admit they want [a Bangladeshi political figure] offed n we sell it to [Individual 1].”

According to the complaint, Lustyik and Thaler accepted at least $1,000 from Ahmed in exchange for confidential FBI information, including a Suspicious Activity Report.  The complaint also alleges that Lustyik and Thaler schemed to obtain monthly cash bribes from Ahmed, in increments of tens of thousands of dollars, in exchange for the provision of additional confidential law enforcement information about Individual 1 and for assistance in having criminal charges against a Bangladeshi political figure dismissed.

This case was investigated by the Department of Justice’s Office of Inspector General. The prosecution is being handled by the U.S. Attorney’s Office for the Southern District of New York’s White Plains Division and by the Public Integrity Section of the U.S. Department of Justice’ Criminal Division. Assistant U. S. Attorney Benjamin Allee and Trial Attorney Emily Rae Woods are in charge of the prosecution.  

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

The Department of Justice and 33 State Attorneys General today submitted to the court a proposed remedy to address Apple Inc.’s illegal conduct, following the July 10, 2013, U.S. District Court for the Southern District of New York decision finding that Apple conspired to fix the prices of e-books in the United States.  The proposed relief is intended to halt Apple’s anticompetitive conduct, restore lost competition and prevent a recurrence of the illegal activities. 

“The court found that Apple’s illegal conduct deprived consumers of the benefits of e-book price competition and forced them to pay substantially higher prices,” said Bill Baer, Assistant Attorney General in charge of the Department of Justice’s Antitrust Division.  “Under the department’s proposed order, Apple’s illegal conduct will cease and Apple and its senior executives will be prevented from conspiring to thwart competition in the future.”

The department’s proposal, if approved by the court, will require Apple to terminate its existing agreements with the five major publishers with which it conspired – Hachette Book Group (USA), HarperCollins Publishers L.L.C., Holtzbrinck Publishers LLC, which does business as Macmillan, Penguin Group (USA) Inc. and Simon & Schuster Inc. – and to refrain for five years from entering new e-book distribution contracts which would restrain Apple from competing on price.  Under the department’s proposed remedy, Apple will be prohibited from again serving as a conduit of information among the conspiring publishers or from retaliating against publishers for refusing to sell e-books on agency terms.  Apple will also be prohibited from entering into agreements with suppliers of e-books, music, movies, television shows or other content that are likely to increase the prices at which Apple’s competitor retailers may sell that content.  To reset competition to the conditions that existed before the conspiracy, Apple must also for two years allow other e-book retailers like Amazon and Barnes & Noble to provide links from their e-book apps to their e-bookstores, allowing consumers who purchase and read e-books on their iPads and iPhones easily to compare Apple’s prices with those of its competitors.

Additionally, the Department of Justice is asking the court to appoint an external monitor to ensure that Apple’s internal antitrust compliance policies are sufficient to catch anticompetitive activities before they result in harm to consumers.  The monitor, whose salary and expenses will be paid by Apple, will work with an internal antitrust compliance officer who will be hired by and report exclusively to the outside directors comprising Apple’s audit committee.   The antitrust compliance officer will be responsible for training Apple’s senior executives and other employees about the antitrust laws and ensuring that Apple abides by the relief ordered by the court.

On April 11, 2012, the department filed a civil antitrust lawsuit in the U.S. District Court for the Southern District of New York against Apple, Hachette, HarperCollins, Macmillan, Penguin and Simon & Schuster, for conspiring to end e-book retailers' freedom to compete on price by taking control of pricing from e-book retailers and substantially increasing the prices that consumers paid for e-books.

 
At the same time that it filed the lawsuit, the department reached settlements with three of the publishers – Hachette, HarperCollins and Simon & Schuster. Those settlements were approved by the court in September 2012.  The department settled with Penguin on Dec. 18, 2012, and with Macmillan on Feb. 8, 2013.  The Penguin settlement was approved by the court in May 2013.  Final approval of the Macmillan settlement is pending before the court.  Under the settlements, each publisher was required to terminate agreements that prevented e-book retailers from lowering the prices at which they sell e-books to consumers and to allow for retail price competition in renegotiated e-book distribution agreements.

 
The department’s trial against Apple, which was overseen by Judge Denise Cote, began on June 3, 2013. The trial lasted for three weeks, with closing arguments taking place on June 20, 2013.  The court issued its opinion that Apple Inc. violated Section 1 of the Sherman Act on July 10, 2013.  The court will hold a hearing on remedies on Aug. 9, 2013.

United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced today that defendant RUDY GUMATAOTAO PALOMO was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to forty six (46) months imprisonment for the offense of Felon in Possession of a Firearm, and forty six (46) months imprisonment for the offense of Felon in Possession of Ammunition, both terms to run concurrently. After defendant serves his term of imprisonment, he will be placed on supervised release for three (3) years for each count, to run concurrently, and is required to pay a $200 special assessment fee, and attend a substance abuse program.  His jail term is to be served at the Bureau of Prisons facility in
Sheridan, Oregon.

On July 29, 2012, defendant RUDY GUMATATAO PALOMO was in possession of a 30.30 Marvin Lever Action Rifle which contained a chambered round of ammunition.  PALOMO then pointed the firearm at a relative.  The relative immediately called police.   Guam Police Officers pulled over PALOMO in the village of Yigo and discovered the firearm and ammunition underneath his seat. Because PALOMO has prior felony convictions in the Superior Court of Guam, he is prohibited from carrying a firearm or ammunition.

U.S. Attorney Limtiaco states “Felons are absolutely prohibited from possessing firearms or ammunition.  It is important to protect innocent civilians and law enforcement officers from armed convicts, and felons who possess guns or ammunition must be aware that they will face aggressive prosecution and will receive long prison sentences.”

U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in drug distribution, gang involvement and violent crime.

U.S. Attorney Limtiaco commends the investigative efforts of the Guam Police Department and Task Force Officer Katrina Alconaba with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

The Justice Department announced today that the city of St. Peters, Mo. will pay $80,000 and make changes to its zoning laws to settle a lawsuit alleging that the city violated the federal Fair Housing Act (FHA) and Title II of the Americans with Disabilities Act (ADA) when it denied a zoning request to operate a group home for four women with intellectual disabilities.  The lawsuit is part of the Justice Department’s continuing effort to enforce civil rights laws that require states and municipalities to end discrimination against, and unnecessary segregation of, persons with disabilities. The settlement was filed today and must be approved by the U.S. District Court for the Eastern District of Missouri.

“The Fair Housing Act and the Americans with Disabilities Act ensure that municipalities cannot enforce discriminatory land use policies that restrict the rights of their residents to live in the housing of their choice,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division. “This important settlement compensates the individuals who were harmed by the city’s practices and will prevent future housing discrimination against the city’s residents who have disabilities.”

“Zoning ordinances that unjustifiably keep group homes out of neighborhoods violate the Fair Housing Act,” said Bryan Greene, U.S. Department of Housing and Urban Development’s (HUD) Acting Assistant Secretary for Fair Housing and Equal Opportunity. “HUD and the Department of Justice will continue to work together to ensure that everyone, including persons with disabilities, has access to the kind of housing that meets their needs.”

The settlement resolves the United States’ claims that the city violated the FHA and ADA when it adopted and enforced a facially discriminatory 2,500 foot group-home spacing requirement and when its Board of Adjustment refused, without justification, a variance petition to allow Community Living Inc. (CLI) to operate a group home for four women with disabilities.  The complaint also alleges that the city refused to make reasonable accommodations to the city’s rules, policies, practices or services that were necessary to afford the residents an opportunity to use and enjoy their home.  In addition to providing $80,000 for the residents, the settlement requires that the city:

·          Replace the city ordinance that imposes a 2,500-foot spacing requirement on group homes for persons with disabilities with an ordinance that is approved by the United States;

·          Adopt a written policy by which persons may request reasonable accommodations or modifications on the basis of disability from the city’s zoning and land use requirements;

·          Prepare detailed written findings whenever the city denies any type of request for zoning or land use relating to a dwelling occupied by, or designated or intended for occupancy by, persons with disabilities; and

·          Provide training on the FHA and ADA to City officials and employees involved in land use and zoning decisions.

The case began when a legal guardian for a resident of the group home filed a complaint with HUD after the Board of Adjustment denied the group home’s variance petition.  HUD referred the complaint to the Justice Department, which conducted an investigation.

The federal Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status.  Individuals who believe that they may have been victims of housing discrimination should call the Housing Discrimination Tip Line (1-800-896-7743) or e-mail the Justice Department at fairhousing@usdoj.gov. Such persons may also contact HUD at 1-800-669-9777.

Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt

Paul S. Kruse, 60, of Jacksonville, Fla., was sentenced late yesterday to serve 30 years in prison for wire fraud, wire fraud conspiracy, attempting to murder a government witness and murder-for-hire, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division and Acting U.S. Attorney A. Lee Bentley III of the Middle District of Florida.

 
Kruse was sentenced by Senior U.S. District Judge Harvey E. Schlesinger in the Middle District of Florida. In addition to his prison term, Kruse was sentenced to serve five years of supervised release and ordered to pay a money judgment of $897,960, which represents the net proceeds of the charged criminal conduct.

On Feb. 11, 2013, Kruse was found guilty by a federal jury in Jacksonville.

 
According to court documents, beginning in 2010, Kruse and his brother conspired to recruit and defraud a number of clients to whom they provided financial advisory services. As part of the scheme, Kruse established a sham investment firm called Yorkshire Financial Services. He and his brother convinced their clients, a number of whom were retirees, to move their savings to Yorkshire. Kruse and his brother deceptively told clients that Yorkshire had been in business for more than 30 years, had a staff of experienced securities traders, and traded in a combination of stocks, bonds and currencies appropriate for individual retirement accounts (IRAs). In reality, Kruse did not invest the investors' funds. Rather, he spent the investors’ money on luxury cars, home improvements and personal items and made hundreds of thousands of dollars in cash withdrawals. As a result of the scheme, Kruse stole $931,844 from 21 victims.

 
In 2011, Kruse hired a personal assistant who witnessed Kruse's conduct. The assistant reported Kruse’s conduct to the FBI, and the Yorkshire scam unraveled shortly thereafter.

 
In 2012, Kruse’s co-conspirator brother committed suicide. Subsequently, while Kruse was being held in pre-trial detention, Kruse hired hit men to murder his former personal assistant, who was scheduled to be a government witness. Kruse stated that he wanted the former assistant killed to both prevent her from testifying and avenge his brother’s death. Kruse also hired the hit men to rob and kill two former business partners, who Kruse contended had cheated him. Unbeknownst to Kruse, the hit men were undercover federal agents.

This case was investigated by the FBI and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It was prosecuted by Assistant U.S. Attorney Mark B. Devereaux and Trial Attorney Ryan Rohlfsen of the Criminal Division’s Fraud Section.

Barren County, Ky., Sheriff Christopher Brian Eaton, 42, of Glasgow, Ky., was sentenced today by U.S. District Judge Joseph H. McKinley Jr. to serve an 18-month prison term followed by two years of supervised release, after a jury convicted him on May 9, 2013, of two counts of obstructing justice during a federal criminal civil rights investigation conducted by the FBI.  Eaton was convicted of corruptly persuading two of his deputies to write false reports regarding an alleged unreasonable use of force against a man arrested by Eaton and several of his deputies outside a church on Feb. 24, 2010. 

Eaton was convicted of directing the first deputy, who did not participate in the arrest, to write a report which falsely stated that Eaton and the deputy had walked back to the area where the individual had been arrested and located a knife lying on the ground.  Eaton was convicted of directing the second deputy, who had participated in the arrest, to falsify reports and testify falsely in state court proceedings that that the victim had pulled a knife on Eaton during the victim’s arrest, when Eaton and his deputy fully knew this not to be true. 

“Obstruction of justice by law enforcement officers strikes at the heart of the fundamental right of every citizen accused of a crime to due process of the law,” said Acting Assistant Attorney General Jocelyn Samuels of the Civil Rights Division of the U.S. Department of Justice.  “As the trial, verdict and sentence in this case demonstrate, the Department of Justice and the Civil Rights Division will vigorously prosecute law enforcement officers who violate their sworn duty to respect and enforce the constitutional rights of every person.”

This case was investigated by the Louisville, Ky. Division of the FBI and was prosecuted by Trial Attorneys Roy Conn and Sanjay Patel of the Department of Justice Civil Rights Division.

Attorney General Eric Holder today welcomed the confirmation last night by the U.S. Senate of Stuart F. Delery as the Department of Justice’s Assistant Attorney General for the Civil Division. 

“I am pleased to congratulate Stuart Delery on his confirmation as Assistant Attorney General for the Civil Division, an office he has held in an acting capacity for more than a year,” said Attorney General Eric H. Holder, Jr.  “During that time, and throughout his service at the Department – including his tenure as Chief of Staff to the Deputy Attorney General and Senior Counselor in my office – Stuart has exemplified the highest standards of integrity and professionalism.  He has provided strong and steady leadership in our efforts to advance equality, opportunity, and justice.  And I look forward to continuing to work with him as we continue the Division’s critical work on behalf of the American people.”

The Civil Division is the largest litigating division in the Department of Justice and represents the United States in legal challenges to Congressional statutes, Administration policies, and federal agency actions.  They concern federal benefit programs; commercial issues such as contract disputes, banking, insurance, patents, and debt collection; international trade matters; enforcement of immigration laws; and civil and criminal violations of consumer protection laws.  The Civil Division recovers billions of dollars for taxpayers through its affirmative litigation, such as its enforcement of federal consumer protection laws and its record-setting efforts under the False Claims Act, including cases targeting health care fraud, financial fraud, and fraud against the military.  Finally, the Division protects the health and safety of Americans by defending cases related to national security and by enforcing protections for the safety of food and medicines. 

Delery joined the Justice Department in January 2009 as Chief of Staff and Counselor to the Deputy Attorney General and later served as Associate Deputy Attorney General.  From 2010 until 2012, Delery served as Senior Counselor to the Attorney General and focused on civil and appellate matters, including national security litigation and legal policy issues.  He has since served as Acting Assistant Attorney General for the Civil Division. 

Prior to his federal government experience, Delery was a partner in the Washington, D.C.  law firm of WilmerHale, where he was a member of the Litigation Department and the Appellate and Supreme Court Litigation Practice Group and a vice chair of the firm’s Securities Department. 

Delery graduated from Yale Law School and the University of Virginia.  He clerked for U.S. Supreme Court Justices Sandra Day O’Connor and Byron R. White and for Chief Judge Gerald B. Tjoflat of the U.S. Court of Appeals for the 11th Circuit. 

Dos ex agentes de la Policía de Puerto Rico y otra persona fueron sentenciados a prisión ayer por sus papeles en brindar seguridad para transacciones de narcotráfico.

El Secretario de Justicia Auxiliar Interino Mythili Raman de la División Penal del Departamento de Justicia, la Fiscal Federal Rosa E. Rodriguez-Velez del Distrito de Puerto Rico y el Agente Especial a Cargo Carlos Cases de la Oficina Local de San Juan del Buró Federal de Investigaciones [Federal Bureau of Investigation (FBI)] realizaron un anuncio después de emitida la sentencia por la Juez Federal de Distrito Consuelo Cerezo en el Distrito de Puerto Rico.

Los ex agentes de la Policía de Puerto Rico Daviel Salinas-Acevedo, 29, de Bayamon, Puerto Rico, y Miguel Santiago-Cordero, 30, de Lares, Puerto Rico, fueron ambos sentenciados el 30 de julio de 2013 a 181 meses de prisión. Asimismo, Wendell Rivera-Ruperto, 38, de Las Marías, Puerto Rico, también fue sentenciado ayer a 420 meses en prisión.

El 10 de enero de 2013, Salinas-Acevedo y Santiago-Cordero fueron ambos condenados en juicio por un cargo de conspirar para poseer con la intención de distribuir más de cinco kilogramos de cocaína y un cargo de posesión de arma de fuego para promover una transacción de drogas. Rivera-Ruperto fue condenado por un cargo de conspiración para poseer con la intención de distribuir más de cinco kilogramos de cocaína, intento de posesión con la intención de distribuir más de cinco kilogramos de cocaína y posesión de arma de fuego para promover una transacción de drogas. Rivera-Ruperto había sido condenado anteriormente por 15 otros cargos derivados de su participación en otras transacciones de narcotráfico relacionadas.

El caso contra los tres demandados surgió de la operación encubierta del FBI conocida como "Operación Guard Shack". Hasta la fecha, 131 demandados se han declarado culpables o han sido condenados en juicio, y 123 demandados han sido sentenciados como resultado de la operación.

De acuerdo con pruebas presentadas en el tribunal, Salinas-Acevedo, Santiago-Cordero y Rivera-Ruperto brindaron, cada uno, seguridad para lo que creían ser transacciones ilegales de cocaína que ocurrieron el 24 de marzo, el 9 de abril y el 8 de julio, respectivamente. De hecho, cada supuesta transacción de narcotráfico fue una de docenas de transacciones simuladas llevadas a cabo como parte de la operación encubierta del FBI. Los tres hombres prestaron servicios de seguridad armada para las transacciones de cocaína de múltiples kilogramos al registrar al comprador, mantenerse de guardia a medida que se contaron los kilos e inspeccionar y escoltar al comprador al llegar y salir del lugar de la transacción.

A cambio por la seguridad que brindaron, Salinas-Acevedo, Santiago-Cordero y Rivera-Ruperto recibieron un pago en efectivo de 2,000 dólares cada uno. Ninguno de los demandados devolvió el dinero y ninguno de ellos jamás denunció las transacciones.

El caso fue investigado por el FBI. El Departamento de Justicia de Puerto Rico también brindó asistencia en este caso.

El caso fue enjuiciado por los Abogados Litigantes Anthony J. Phillips y Edward J. Loya Jr. de la Sección de Integridad Pública de la División de lo Penal. La Fiscalía Federal para el Distrito de Puerto Rico participó en la investigación y el enjuiciamiento de este caso.

Two former officers with the Police of Puerto Rico and another individual were sentenced to prison late yesterday for their roles in providing security for drug transactions.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Rosa E. Rodriguez-Velez of the District of Puerto Rico and Special Agent in Charge Carlos Cases of the FBI’s San Juan Field Office made the announcement after sentencing by U.S. District Judge Carmen Consuelo Cerezo in the District of Puerto Rico.

Former Police of Puerto Rico officers Daviel Salinas-Acevedo, 29, of Bayamon, Puerto Rico, and Miguel Santiago-Cordero, 30, of Lares, Puerto Rico, were each sentenced on July 30, 2013, to serve 181 months in prison. In addition, Wendell Rivera-Ruperto, 38, of Las Marias, Puerto Rico, was also sentenced yesterday to 420 months in prison.

On Jan. 10, 2013, Salinas-Acevedo and Santiago-Cordero were each convicted at trial of one count of conspiring to possess with intent to distribute more than five kilograms of cocaine and one count of possessing a firearm in furtherance of a drug transaction.  Rivera-Ruperto was convicted of one count of conspiring to possess with intent to distribute more than five kilograms of cocaine, attempting to possess with the intent to distribute more than five kilograms of cocaine and possessing a firearm in furtherance of a drug transaction.  Rivera-Ruperto had been convicted previously of 15 other counts arising from his participation in other, related drug transactions.

The case against the three defendants arose from the FBI’s undercover operation known as “Operation Guard Shack.”  To date, 131 defendants have pleaded guilty or been convicted at trial, and 123 defendants have been sentenced as a result of the operation.

According to the evidence presented in court, Salinas-Acevedo, Santiago-Cordero and Rivera-Ruperto each provided security for what they believed were illegal cocaine deals that occurred on March 24, April 9 and July 8, 2010, respectively.  In fact, each purported drug transaction was one of dozens of simulated transactions conducted as part of the undercover FBI operation.  The three men performed armed security for the multi-kilogram cocaine deals by frisking the buyer, standing guard as the kilos were counted and inspecting and escorting the buyer in and out of the transaction.

In return for the security they provided, Salinas-Acevedo, Santiago-Cordero and Rivera-Ruperto each received a cash payment of $2,000.  The money was never returned by any of the defendants, and none of the defendants ever reported the transactions.

The case was investigated by the FBI.  The Puerto Rico Department of Justice also provided assistance in this case. 

The case was prosecuted by Trial Attorneys Anthony J. Phillips and Edward J. Loya Jr. of the Criminal Division’s Public Integrity Section. The U.S. Attorney’s Office for the District of Puerto Rico participated in the investigation and prosecution of this case.

The Justice Department announced today that the Executive Director of the Financial Fraud Enforcement Task Force (FFETF) Michael Bresnick will be leaving the department on Thursday, August 1, 2013.  Bresnick has served as Executive Director of the FFETF since October 2011.

“Throughout his tenure as Executive Director of the President’s Financial Fraud Enforcement Task Force, Mike Bresnick has played an indispensable role in leading interagency efforts to ensure stability and fairness in our financial and housing markets – while holding accountable those who take advantage of their fellow citizens,” said Attorney General Eric Holder.  “Under Mike’s leadership, the Department’s approach in identifying – and combating – financial fraud has never been smarter, more systematic, or more effective.  I am grateful for his tireless work, his dedication to public service, and his commitment to the highest standards of professionalism and integrity.  I am certain that the Department, and the American people, will continue to benefit from Mike’s efforts for years to come.  And I wish him the best as he takes the next step in his career.”

In 2009, President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. As executive director, Mr. Bresnick has upheld this commitment by overseeing the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud and protect the American consumer.

Protecting Americans from the devastating effects of fraudulent schemes and reinforcing consumer education and awareness has been a primary focus of Bresnick’s tenure.  In 2012 he launched the Consumer Protection Working Group to address consumer fraud, an issue that can financially cripple households and can cause extensive losses to the economy.  The group has worked across federal law enforcement and regulatory agencies, and with state and local partners, to confront consumer fraud through prosecution and education. 

Under Bresnick’s leadership and direction, the department also implemented innovative and aggressivestrategies to investigate fraud in the residential mortgage-backed securities market.  In 2012, the department launched the Task Force’s Residential Mortgage-Backed Securities (RMBS) Working Group, which is a collaborative effort between federal and state law enforcement agencies to focus on fraud in the packaging and sale of RMBS offerings.  There are now more than 200 lawyers, investigators, analysts and staff actively engaged in RMBS investigatory work across federal and state governments throughout the country.  Thus far working group members have taken legal action against major financial institutions that have sought to deceive investors through fraudulent misrepresentation in the sale of mortgage back securities, and more are expected.

Bresnick has been a federal prosecutor, representing the interests of the American people for nearly 10 years. Prior to his role as the executive director of FFETF, he worked as an assistant chief in the Fraud Section of the Criminal Division where he supervised a team of attorneys in the investigation and prosecution of a broad range of financial crimes, including mortgage fraud and bank fraud.  Bresnick also served as an assistant U.S. Attorney in Philadelphia, where he prosecuted a wide variety of criminal cases, including financial fraud, health care fraud, public corruption and Racketeer Influenced and Corrupt Organization Act offenses.

“I would like to thank Attorney General Holder and the Department for allowing me the unique opportunity to lead the government’s anti-fraud efforts and pursue justice on behalf of the American people.  These last 10 years as a career prosecutor have been an honor and a privilege, and I am truly grateful for the experience.”

Bresnick will end his tenure as Executive Director of FFETF to serve as a partner in the law firm Stein Mitchell Muse and Cipollone LLP in Washington, D.C.

The Justice Department, the Internal Revenue Service (IRS) and the FBI announced today that James Timothy Turner, also known as Tim Turner, was sentenced to serve 18 years in federal prison for conspiracy to defraud the United States, attempting to pay taxes with fictitious financial instruments, attempting to obstruct and impede the IRS, failing to file a 2009 federal income tax return and falsely testifying under oath in a bankruptcy proceeding. 

In March 2013, following a five-day jury trial, Turner was convicted on 10 counts in the U.S. District Court for the Middle District of Alabama.  Based on the evidence introduced at trial and in court filings, Turner, the self-proclaimed “president” of the sovereign citizen group Republic for the united States of America (RuSA), traveled the country in 2008 and 2009 conducting seminars teaching attendees how to defraud the IRS by preparing and submitting fictitious bonds to the U.S. government in payment of federal taxes, mortgages, and other debt. The evidence at trial revealed the bonds are fictitious and worthless but witnesses testified that Turner used special paper, financial terminology and elaborate borders in an effort to make them look  authentic and more likely to succeed in defrauding the recipient.  Turner was convicted of sending a $300 million fictitious bond in his own name and of aiding and abetting others in sending fifteen other fictitious bonds to the Treasury Department to pay taxes and other debts.

The evidence at trial also established that Turner taught people how to file retaliatory liens against government officials who interfered with the processing of fictitious bonds. Turner filed a purported $17.6 billion maritime lien in Montgomery County, Ala., Probate Court against another individual.  This investigation began after Turner and three other self-proclaimed “Guardian Elders” sent demands to all 50 governors in the United States in March 2010 ordering each governor to resign within three days to be replaced by a “sovereign” leader or be “removed.” The FBI immediately began investigating Turner and IRS- Criminal Investigation (IRS-CI) joined the investigation soon thereafter. 

“This lengthy prison sentence shows that tax defiers  like Turner who use bogus tax schemes and file retaliatory liens against government officials will be punished,” said Assistant Attorney General for the Justice Department’s Tax Division Kathryn Keneally. “The Justice Department will continue to work with law enforcement to investigate and prosecute those who attempt to defraud the government.”

“This sentence should send a message that if you attempt to use retaliatory tax liens and fraudulent tax schemes as weapons against the United States and its citizens you will be punished,” stated acting U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “We cannot and will not tolerate those who violate the law for financial gain.  I would like to thank the law enforcement officers who worked vigilantly on this case to bring this criminal to justice.”

“Turner influenced others with his false ideology by aggressively promoting obstruction of the IRS,” stated Richard Weber, Chief, IRS-Criminal Investigation. “In truth, Turner’s own defiance of IRS and his attempts to lead others through the same labyrinth of lies and distortions led to his downfall as shown by the significant sentence he must now serve.  Today’s sentence should also send a strong message to those who may follow in Turner’s footsteps and attempt to defy their tax obligations.  The legality of our income tax laws has been challenged time and time again and the courts have consistently upheld them.”

“The FBI is committed to vigorously investigate individuals and groups who steal from the federal government for financial gain through schemes deigned to avoid payment on loans, taxes and other obligations owed the federal government,” stated Stephen Richardson, Special Agent in Charge of the FBI, Mobile Division.  

In addition to prison time, Turner was ordered to pay $26,021 in restitution to the IRS and to serve a five year term of supervised release upon his release from prison. 

This case was investigated by special agents of the FBI and IRS-CI, was prosecuted by Tax Division Trial Attorney Justin Gelfand and Middle District of Alabama Assistant U.S. Attorney Gray Borden.

A former Michigan resident was sentenced today in Miami to 165 years in prison, followed by a lifetime of supervised release, for child sex tourism offenses, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, U.S. Immigration and Customs Enforcement (ICE) Deputy Director Daniel Ragsdale, and Special Agent in Charge Alysa D. Erichs of the ICE Homeland Security Investigation’s (HSI) Miami Office.

Matthew Andrew Carter, 68, aka “William Charles Harcourt” and “Bill Carter,” formerly of Brighton, Mich., was sentenced by U.S. District Judge Joan A. Lenard of the Southern District of Florida.  On Feb. 28, 2013, a jury found Carter guilty of five counts of traveling in foreign commerce from the United States to Haiti for the purpose of engaging in illicit sexual conduct with children and one count of attempting to do so. 

“For 15 years, Matthew Carter, under the guise of serving as an international humanitarian, sexually abused more than 50 Haitian children,” said Acting Assistant Attorney General Raman. “He held himself out as a savior to vulnerable children in Haiti, but in fact cruelly forced those children to choose between poverty and submitting to repeated sexual abuse. Child sex tourism is a heinous crime, and today's sentence demonstrates our commitment to bringing the weight of justice on anyone who seeks to exploit our most vulnerable citizens, wherever they reside.”

“Today’s sentence brings to a close a horrific chapter in the lives of these victims,” said U.S. Attorney Ferrer. “While nothing can ever undo the abuse these victims endured throughout the years, we hope that today’s sentence restores them with some sense of confidence and trust, and satisfaction that justice has been served.”

“Crimes against children are some of the most heinous our agency investigates,” said ICE Deputy Director Daniel Ragsdale. “It is even more despicable that Mr. Carter used his position of trust to abuse children who relied on him for care. Today’s sentence should serve as notice to other child predators. We will find you, arrest you and make sure that you are prosecuted to the fullest extent of the law.”

According to court documents and evidence presented at trial, from 1995 to 2011, Carter resided at and operated the Morning Star Center near Port-au-Prince, Haiti, prior to his arrest on May 8, 2011.  The Morning Star Center was a residential facility that provided shelter, food, clothing and school tuition to Haitian children.  The children who lived at the Morning Star Center were from impoverished families that could not feed, educate or otherwise support their children.  The evidence at trial showed that Carter specifically targeted children in need and preyed on their vulnerability.  Between 1995 and 2011, Carter frequently traveled between the United States and Haiti in order to raise funds from churches and donors for the continued operation of the center.  Carter sexually and physically abused the children in his care and custody at the center during this period of time.  According to court documents and evidence presented at trial, Carter used force to get these children to comply with his sexual demands and required the children to participate in sexual acts in order to receive food, remain at the center and/or continue to receive school tuition payments.

At trial, 16 Haitian victims who resided at the Morning Star Center between 1995 and 2011 testified.  Additionally, four witnesses testified that they were sexually abused by Carter in London during the 1970s.  Carter previously was charged with and acquitted of charges related to the sexual abuse of children in London, Cairo and Winter Haven, Fla.

The case was investigated by HSI Miami, HSI Country Attaché Santo Domingo, Dominican Republic, and the HSI Santo Domingo Transnational Criminal Investigative Unit.  Substantial assistance was provided by the U.S. Secret Service Miami field office; Haitian National Police Brigade for the Protection of Minors; Haitian Social Services; Ministry of the Interior for Haiti; Bureau of Diplomatic Security, Regional Security Office for the U.S. Embassy in Port-au-Prince; Consular Section of the U.S. Embassy in Port-au-Prince; London Metropolitan Police Service; FBI’s Washington, Boston and Miami Field Offices; ICE-HSI Attaché’s Offices in London and Cairo; U.S. Coast Guard; and U.S. Citizenship and Immigration Service in Port-au-Prince.

The case was prosecuted by Trial Attorney Bonnie L. Kane of the Criminal Division’s Child Exploitation and Obscenity Section and Assistant U.S. Attorney Maria K. Medetis of the Southern District of Florida. 

United States Attorney ALICIA A.G. LIMTIACO, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI),announced today that defendant KEVIN MICHAEL CRUZ was sentenced by Chief Judge Frances Tydingco-Gatewood in the United States District Court, to one hundred and eleven (111) months imprisonment for the offenses of Conspiracy to Distribute Methamphetamine Hydrochloride and Use of a Firearm During a Crime of Violence.  After defendant serves his term of imprisonment, he will be placed on supervised release for three (3) years for the conspiracy count, followed by five (5) years for the firearm offense.  He is also  required to perform community service, pay a $200 special assessment fee, and attend a substance abuse program.

On September 4, 2012, local and federal Marshals were searching for fugitive KEVIN MICHAEL CRUZ who was wanted for a warrant of arrest.  Marshals discovered CRUZ hiding in a motel room at the Palm Ridge Inn in Barrigada Guam.  CRUZ was armed with a .9 millimeter Encom America handgun, nine rounds of ammunition, a .22 caliber Savage shotgun, a M-84 stun grenade, and a detonator.  He was also in possession of methamphetamine hydrochloride.  CRUZ admitted that he used the firearm, which he referred to as a “machine gun,” to protect his drug distribution business.

U.S. Attorney Limtiaco states “Firearms and drugs is a potentially deadly combination.  Armed drug dealers present a huge risk to innocent civilians and law enforcement officers. Those who use firearms to protect their illegal activities must know that they will face long prison sentences.” U.S. Attorney Limtiaco also states “Methamphetamine has been linked to an increase in violent crimes and results in devastating effects to individuals and to the community.  Those who engage in the criminal importation, receipt and sale of this illegal drug will be prosecuted and face severe penalties.”

U.S. Attorney Limtiaco noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Neighborhood (PSN) Initiative, a nationwide commitment to aggressively prosecute defendants who engage in drug distribution, gang involvement and violent crime.

U.S. Attorney Limtiaco commends the investigative efforts of the Marshals with the United States Marshals Service and the Superior Court of Guam, as well as Special Agents Darren Massin and Aaron Joseph with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).

The Justice Department announced that yesterday, a federal district judge in Indianapolis permanently barred Cynthia Hawk, who operates Gain Tax Services, from preparing federal income tax returns for others.  Hawk consented to the entry of this injunction.

The government’s complaint alleged that Hawk prepared at least 1,501 returns from 2009 through 2012, and that returns Hawk prepared claimed refunds at an unusually high percentage, ranging from 96 to 99 percent during these years. The government alleged that Hawk failed to comply with due-diligence requirements imposed by federal law on tax preparers who claim the earned income tax credit (EITC) on customers’ income tax returns.  Because Hawk failed to comply with these due-diligence requirements, in 2011 she was penalized by the Internal Revenue Service (IRS) . When the IRS performed a follow-up investigation in 2012, as it routinely does, the complaint alleged that it again found ongoing failures and fraudulent claims by Hawk.

The complaint also alleged that Hawk claimed education credits on her customers’ tax returns, when the customers did not actually have any qualifying education expenses.  Hawk also allegedly falsified customers’ income in order to claim the maximum EITC for them.

The complaint alleged that Hawk’s repeated conduct of preparing returns that understated her customers’ liabilities based on bogus credits or fabricated income or deductions was sufficient for the court to prohibit her from preparing federal tax returns.

In the past decade the Justice Department’s Tax Division has obtained injunctions against hundreds of tax-return preparers and tax-fraud promoters.  Information about these cases is available on the Justice Department website.

Related Materials:

United States v. Cynthia E. Hawk
Complaint for Permanent Injunction and Other Equitable Relief (PDF)
Order of Permanent Injunction (PDF)

The Justice Department and Internal Revenue Service (IRS) announced today  that John T. Hoang, of Woodbridge, Va., pleaded guilty in federal district court in Washington, D.C., to willfully aiding and assisting in the preparation of false income tax returns for tax year 2004.

According to court documents and statements made in court, Hoang was a certified public accountant (CPA) and an attorney.  From January 2005 through April 2007, Hoang operated John T. Hoang CPA, a tax return preparation business and was one of two partners who owned Tax-Smart Technology Services.  Hoang operated John T. Hoang CPA and Tax-Smart from various locations in the District of Columbia and Fairfax, Va. 

In his capacity as a tax return preparer, Hoang prepared and supervised the preparation of client tax returns to be filed with the  IRS and various state taxing authorities.  For the tax years 2004, 2005 and 2006, Hoang prepared hundreds of Forms 1040 (U.S. Individual Income Tax Returns) and earned substantial income from his tax preparation activities.  Hoang further received, through John T. Hoang CPA and Tax-Smart, a substantial portion of the refunds issued by the IRS to his clients.  Despite earning revenue through his businesses of approximately $1 million in 2004; $2 million in 2005; and $3 million in 2006, Hoang failed to file any federal income tax returns or pay any federal income taxes for himself or his businesses.

Hoang admitted that he prepared and caused the preparation of false and fraudulent 2004, 2005 and 2006 Forms 1040 for his clients.  When preparing these false Forms 1040 and related schedules for his clients, Hoang created wholly fictitious business income and expenses for what purported to be a technology licensing business.  The false information resulted in the client-taxpayers reporting fake losses from the business activity and receiving either larger refunds than they were entitled to or a decrease in the amount of taxes due.  Hoang admitted that the tax loss caused by some of the false returns he prepared was greater than $30,000 per return and that he prepared at least 24 such false returns for the 2004 through 2006 tax years. 

As part of the plea agreement, Hoang admitted that the total tax loss caused by his criminal conduct is greater than $1.5 million.

United States District Judge Richard J. Leon, who is presiding over the matter, set a sentencing date of Nov. 06, 2013.  Hoang faces a maximum sentence of six years in prison and a $500,000 fine.

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

Wyeth Pharmaceuticals Inc., a pharmaceutical company acquired by Pfizer, Inc. in 2009, has agreed to pay $490.9 million to resolve its criminal and civil liability arising from the unlawful marketing of the prescription drug Rapamune for uses not approved as safe and effective by the U.S. Food and Drug Administration (FDA), the Justice Department announced today.  Rapamune is an “immunosuppressive” drug that prevents the body’s immune system from rejecting a transplanted organ.

 “FDA’s drug approval process ensures companies market their products for uses proven safe and effective,” said Stuart F. Delery, Acting Assistant Attorney General for the Justice Department’s Civil Division.  “We will hold accountable those who put patients’ health at risk in pursuit of financial gain.”

 The Federal Food, Drug and Cosmetic Act (FDCA) requires a company such as Wyeth to specify the intended uses of a product in its new drug application to the FDA.  Once approved, a drug may not be introduced into interstate commerce for unapproved or “off-label” uses until the company receives FDA approval for the new intended uses.  In 1999, Wyeth received approval from the FDA for Rapamune use in renal (kidney) transplant patients.  However, the information alleges, Wyeth trained its national Rapamune sales force to promote the use of the drug in non-renal transplant patients.  Wyeth provided the sales force with training materials regarding non-renal transplant use and trained them on how to use these materials in presentations to transplant physicians.  Then, Wyeth encouraged sales force members, through financial incentives, to target all transplant patient populations to increase Rapamune sales. 

“The FDA approves drugs for certain uses after lengthy clinical trials,” said Sanford Coats, U.S. Attorney for the Western District of Oklahoma.  “Compliance with these approved uses is important to protect patient safety, and drug companies must only market and promote their drugs for FDA-approved uses.  The FDA approved Rapamune for limited use in renal transplants and required the label to include a warning against certain uses.  Yet, Wyeth trained its sales force to promote Rapamune for off-label uses not approved by the FDA, including ex-renal uses, and even paid bonuses to incentivize those sales.  This was a systemic, corporate effort to seek profit over safety.  Companies that ignore compliance with FDA regulations will face criminal prosecution and stiff penalties.” 

Wyeth has pleaded guilty to a criminal information charging it with a misbranding violation under the FDCA.  The resolution includes a criminal fine and forfeiture totaling $233.5 million.  Under a plea agreement, which has been accepted by the U.S. District Court in Oklahoma City, Wyeth has agreed to pay a criminal fine of $157.58 million and forfeit assets of $76 million. 

The resolution also includes civil settlements with the federal government and the states totaling $257.4 million.  Wyeth has agreed to settle its potential civil liability in connection with its off-label marketing of Rapamune.  The government alleged that Wyeth violated the False Claims Act, from 1998 through 2009, by promoting Rapamune for unapproved uses, some of which were not medically accepted indications and, therefore, were not covered by Medicare, Medicaid and other federal health care programs.  These unapproved uses included non-renal transplants, conversion use (switching a patient from another immunosuppressant to Rapamune) and using Rapamune in combination with other immunosuppressive agents not listed on the label.  The government alleged that this conduct resulted in the submission of false claims to government health care programs.  Of the amounts to resolve the civil claims, Wyeth will pay $230,112,596 to the federal government and $27,287,404 to the states.   

“Wyeth’s conduct put profits ahead of the health and safety of a highly vulnerable patient population dependent on life-sustaining therapy,” said Antoinette V. Henry, Special Agent in Charge, Metro-Washington Field Office, FDA Office of Criminal Investigations.  “FDA OCI is committed to working with the Department of Justice and our law enforcement counterparts to protect public health.”

Pfizer is currently subject to a Corporate Integrity Agreement (CIA) with the Department of Health and Human Services’ Office of Inspector General that it entered in connection with another matter in 2009, shortly before acquiring Wyeth.  The CIA covers former Wyeth employees who now perform sales and marketing functions at Pfizer.  Under the CIA, Pfizer is subject to exclusion from federal health care programs, including Medicare and Medicaid, for a material breach of the CIA, and the company is subject to monetary penalties for less significant breaches.

“We are committed to enforcing the laws protecting public health, taxpayers and government health programs, and to promoting effective compliance programs,” said Daniel R. Levinson, Inspector General, Department of Health and Human Services.  “Our integrity agreement with Pfizer, which acquired Wyeth, includes required risk assessments, a confidential disclosure program, and auditing and monitoring to help prospectively identify improper marketing.”

 The civil settlement resolves two lawsuits pending in federal court in the Western District of Oklahoma under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens to bring civil actions on behalf of the government and share in any recovery.  The first action was filed by a former Rapamune sales representative, Marlene Sandler, and a pharmacist, Scott Paris.  The second action was filed by a former Rapamune sales representative, Mark Campbell.  The whistleblowers’ share of the civil settlement has not been resolved.

 "The success obtained in this case is an excellent example of how we address the threats to our nation’s health care system; the importance of the public reporting of fraud, waste, or abuse; and the significant results that can be obtained through multiple agencies cooperating in investigations,” said James E. Finch, Special Agent in Charge of the Oklahoma City Division of the FBI. 

 The criminal case was handled by the U.S. Attorney’s Office for the Western District of Oklahoma (USAO) and the Justice Department’s Civil Division, Consumer Protection Branch.  The civil settlement was handled by USAO and the Justice Department’s Civil Division, Commercial Litigation Branch.  The Department of Health and Human Services’ (HHS) Office of Counsel to the Inspector General; the HHS Office of General Counsel, Center for Medicare and Medicaid Services; the FDA’s Office of Chief Counsel; and the National Association of Medicaid Fraud Control Units.  These matters were investigated by the FBI; the FDA’s Office of Criminal Investigation; HHS’ Office of Inspector General, Office of Investigations and Office of Audit Services; the Defense Criminal Investigative Service; the Office of Personnel Management’s Office of Inspector General and Office of Audit Services; the Department of Veterans’ Affairs’ Office of Inspector General; and TRICARE Program Integrity.

 Except for conduct admitted in connection with the criminal plea, the claims settled by the civil agreement are allegations only, and there has been no determination of civil liability.  The civil lawsuits are captioned United States ex rel. Sandler et al v. Wyeth Pharmaceuticals, Inc., Case No. 05-6609 (E.D. Pa.) and United States ex rel. Campbell v. Wyeth, Inc., Case No. 07-00051 (W.D. Okla.).

U.S. Attorney General Eric Holder released the following statement Monday night after the U.S. Senate voted 93-1 to confirm James Comey as the next director of the Federal Bureau of Investigation:

“Jim Comey is a dedicated public servant who brings an impeccable sense of judgment, a commitment to innovative methods and tools, and a lifetime of experience to a role that is critical to the protection of our nation and its citizens. I’ve known Jim for almost 20 years – and I have every confidence that, as he assumes leadership of the Federal Bureau of Investigation, he will continue to uphold the standards of excellence and integrity that the FBI’s outgoing Director, Bob Mueller, helped to establish.  As a seasoned prosecutor, a proven leader, and a faithful servant of the American people, I am confident that Jim will be a superb FBI Director.  I applaud the U.S. Senate for approving his nomination.  And I look forward to working with him – and with all of the brave men and women who serve the FBI – to continue protecting the American people, ensuring our nation’s security, and promoting the rule of law while upholding our most treasured values.”

A former senior executive of a French power and transportation company has been charged in a second superseding indictment for his alleged participation in a scheme to pay bribes to foreign government officials.

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, Acting U.S. Attorney Deirdre M. Daly of the District of Connecticut and Assistant Director in Charge Valerie Parlave of the FBI’s Washington Field Office made the announcement.

Lawrence Hoskins, 62, a former senior vice president for the Asia region for the French company, was charged in the District of Connecticut with conspiring to violate the Foreign Corrupt Practices Act (FCPA) and to launder money, as well as substantive FCPA and money laundering violations.  William Pomponi, a former executive of the Connecticut-based subsidiary of the power and transportation company who was previously charged in a superseding indictment on April 30, 2013, was charged with Hoskins in the second superseding indictment. 

Frederic Pierucci, a current company executive who was previously charged in this case, pleaded guilty yesterday to one count of conspiring to violate the FCPA and one count of violating the FCPA.  Charges against Pierucci were initially unsealed on April 16, 2013, along with a guilty plea by David Rothschild, a former vice president of regional sales at the Connecticut-based subsidiary, in connection with the bribery scheme.  Rothschild pleaded guilty on Nov. 2, 2012. 

According to the charges, the defendants, together with others, allegedly paid bribes to officials in Indonesia – including a member of the Indonesian Parliament and high-ranking members of Perusahaan Listrik Negara (PLN), the state-owned and state-controlled electricity company in Indonesia – in exchange for assistance in securing a $118 million contract, known as the Tarahan project, for the company and its consortium partner to provide power-related services for the citizens of Indonesia.  To conceal the bribes, the defendants retained two consultants purportedly to provide legitimate consulting services on behalf of the power company and its subsidiaries in connection with the Tarahan project.  The indictment, however, alleges that the primary purpose for hiring the consultants was to use the consultants to pay bribes to Indonesian officials.

The first consultant retained by the defendants allegedly received hundreds of thousands of dollars in his Maryland bank account to be used to bribe the member of Parliament. The consultant then allegedly transferred the bribe money to a bank account in Indonesia for the benefit of the official.  According to court documents, emails between Hoskins, Pomponi, Pierucci, Rothschild and their co-conspirators discuss in detail the use of the first consultant to funnel bribes to the member of Parliament and the influence that the member of Parliament could exert over the Tarahan project. 

Court documents allege that in the fall of 2003, Hoskins, Pomponi, Pierucci and others determined that the first consultant was not effectively bribing key officials at PLN.  One email between employees of the power company’s subsidiary in Indonesia described PLN officials’ “concern that if we have won the job, whether their rewards will still be satisfactory or this agent only give them pocket money and disappear.”  In another email, an employee at the power company’s subsidiary in Indonesia sent an email to Hoskins asserting that the consultant “has no grip on the PLN Tender team at all” and “is more or less similar to [a] cashier which I feel we pay too much.”  As a result, the co-conspirators allegedly retained a second consultant to more effectively bribe PLN officials.  The charges allege that the power company deviated from its usual practice of paying consultants on a pro-rata basis in order to make a much larger up-front payment to the second consultant so that the consultant could “get the right influence.”  An employee at the power company’s subsidiary in Indonesia sent an email to Hoskins, Pomponi, Pierucci and others asking them to finalize the consultancy agreement with the front-loaded payments but stated that in the meantime the employee would give his word to a high-level official at PLN, according to the charges.  The defendants and their co-conspirators were successful in securing the Tarahan project and subsequently made payments to the consultants for the alleged purpose of bribing the Indonesian officials. 
  
The conspiracy to commit violations of the FCPA count carries a maximum penalty of five years in prison and a fine of the greater of $250,000 or twice the value gained or lost.  The substantive FCPA counts each carry a maximum penalty of five years in prison and a fine of the greater of $100,000 or twice the value gained or lost.  The conspiracy to commit money laundering count carries a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.  The substantive money laundering counts each carry a maximum penalty of 20 years in prison and a fine of the greater of $500,000 or twice the value of the property involved in the transaction.

An indictment is merely an accusation, and defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

This case is being investigated by FBI agents who are part of the Washington Field Office’s dedicated FCPA squad, with assistance from the Meriden, Conn., Resident Agency of the FBI.  Significant assistance was provided by the Criminal Division’s Office of International Affairs, and the Department has also worked closely with its law enforcement counterparts in Indonesia at the Komisi Pemberantasan Korupsi (Corruption Eradication Commission) and deeply appreciates KPK’s assistance in this matter.

The case is being prosecuted by Trial Attorney Daniel S. Kahn of the Criminal Division’s Fraud Section and Assistant U.S. Attorney David E. Novick of the District of Connecticut. 

Additional information about the Justice Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.

Related Materials:

Second Superseding Indictment

The owner and operator of a durable medical equipment (DME) supply company was sentenced today to serve 24 months in prison for conspiring to submit nearly $1 million in fraudulent claims to Medicare. 

Acting Assistant Attorney General Mythili Raman 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 Los Angeles Region of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG); and Assistant Director in Charge Bill L. Lewis of the FBI’s Los Angeles Field Office made the announcement.

Tigran Aklyan, 37, of Van Nuys, Calif., was sentenced today by U.S. District Judge Michael W. Fitzgerald in the Central District of California.  In addition to his prison term, Aklyan was sentenced to serve three years of supervised release and ordered to pay $653,461 in restitution.

In April 2013, Aklyan pleaded guilty to conspiracy to commit health care fraud. In his plea agreement, Aklyan admitted that he was the owner and president of Las Tunas, a DME supply company located in San Gabriel, Calif.  Aklyan admitted that from in or around October 2007 through in or around May 2009 he conspired with others to commit health care fraud by providing medically unnecessary power wheelchairs (PWCs) and other DME to Medicare beneficiaries and submitting false and fraudulent claims to Medicare.  Aklyan admitted that he paid the owners and operators of fraudulent medical clinics to provide him with prescriptions and supporting medical documentation for the PWCs and DME that he billed to Medicare.  Aklyan knew that the prescriptions and medical documents that the clinics produced were fraudulent, yet he certified to Medicare with the submission of each claim that the DME was medically necessary.  Aklyan also admitted that he knew that it was illegal for him to pay for prescriptions, but he did so anyway.

From on or about Dec. 17, 2007, through on or about Feb. 20, 2009, Aklyan, through Las Tunas, submitted approximately $910,377 in fraudulent claims to Medicare for PWCs and related services, and Medicare paid Las Tunas approximately $653,461 on those claims. 

The case was investigated by the FBI and the Los Angeles Region of 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 Assistant Chief Benton Curtis and Trial Attorneys David M. Maria 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 more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.

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

The U.S. District Court for the District of Columbia has entered judgment for more than $17 million against Dr. Ishtiaq Malik and his two companies, Ishtiaq Malik M.D., P.C. and Advanced Nuclear Diagnostics, for submitting false nuclear cardiology claims to federal and state health care programs, the Justice Department announced today. Ishtiaq Malik, a nuclear cardiologist, has practiced in the District of Columbia metropolitan area since 2002.

“Physicians who participate in government health care programs must bill for their services accurately and honestly,” said Stuart F. Delery, Acting Assistant Attorney General for the Civil Division. “The Department of Justice is committed to pursuing those physicians who seek financial gain at the expense of taxpayer-funded programs.”

The government’s allegations focused on Dr. Malik’s inappropriate claims for myocardial perfusion studies, commonly referred to as nuclear stress tests. These diagnostic imaging studies determine whether a patient has heart disease due to inadequate blood flow to the heart muscles. The test is usually performed in two separate phases: stress and rest. The two phases, which can be conducted on the same day or separate days, must be coded and submitted as one test. The government alleged that, contrary to these requirements, Dr. Malik and his companies double-billed for multi-day nuclear stress test studies.

“This doctor fraudulently diverted critical resources from government health care programs, contributing to the rising cost of health care for all Americans,” said Ronald C. Machen Jr., U.S. Attorney for the District of Columbia. “This lawsuit was designed to hold the doctor to account for bilking the taxpayer. We will do everything in our power to obtain every cent of the $17 million this doctor now owes the American people.”

The government alleged that Dr. Malik submitted false claims to Medicare, District of Columbia Medicaid, Maryland Medicaid, TRICARE and the Federal Employees Health Benefits Plan. In addition, the government alleged that Dr. Malik and his companies billed under codes that did not apply to the nuclear stress test studies he administered and billed for services already included in the payment for nuclear stress test codes, such as intravenous injections, drug infusions, 3D rendering and drug administration. He and his companies also allegedly billed for services not performed.

“Federal employees deserve health care providers who meet the highest standards of ethical and professional behavior,” said Patrick E. McFarland, Inspector General of the U.S. Office of Personnel Management. “This judgment reminds health care providers that they must observe those standards and reflects the commitment of federal law enforcement organizations to pursue improper and illegal conduct that places the health care system at risk.”

“Dr. Malik fraudulently charged for his services and taxpayers deserve protection from such scams,” said Daniel R. Levinson, Inspector General of the U.S. Department of Health and Human Services. “OIG agents, working with other law enforcement agencies, conducted interviews, gathered records and analyzed data to conclude a successful investigation and bring the doctor to justice.”

The government filed suit against Dr. Malik and his two companies under the False Claims Act, which allows the government to recover three times its damages, plus penalties, from those who submit false claims for federal funds. The state of Maryland and the District of Columbia subsequently joined the lawsuit under their respective state false claims acts.

This civil lawsuit illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by Attorney General Eric Holder and Health and Human Services Secretary Kathleen Sebelius. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $14.7 billion through False Claims Act cases, with more than $10.7 billion of that amount recovered in cases involving fraud against federal health care programs.

This investigation was a cooperative effort among the Commercial Litigation Branch, Civil Division, Department of Justice; the U. S. Attorney’s Office for the District of Columbia; the Maryland Attorney General’s Office; and the Attorney General’s Office for the District of Columbia. The Department of Health and Human Services’ Office of the Inspector General and the Office of Personnel Management’s Office of the Inspector General assisted in the investigation. The lawsuit is United States of America et al. v. Malik et al., No. 1:12-01234-RLW (D.D.C.).

Kathryn Keneally, the Assistant Attorney General for the Tax Division of the Department of Justice, Preet Bharara, the U.S. Attorney for the Southern District of New York and Richard Weber, the Chief of the Internal Revenue Service, Criminal Investigation (IRS-CI), announced today that Liechtensteinische Landesbank AG, a bank based in Vaduz, Liechtenstein (LLB-Vaduz), has agreed to pay more than $23.8 million to the United States and entered into a non-prosecution agreement (NPA) with the U.S. Attorney’s Office for the Southern District of New York.  The NPA provides that LLB-Vaduz will not be criminally prosecuted for opening and maintaining undeclared bank accounts for U.S. taxpayers from 2001 through 2011, when LLB-Vaduz assisted a significant number of U.S. taxpayers in evading their U.S. tax obligations, filing false federal tax returns with the IRS and otherwise hiding accounts held at LLB-Vaduz from the IRS.  The NPA requires LLB-Vaduz to forfeit $16,316,000, representing the total gross revenues that it earned in maintaining these undeclared accounts, and to pay $7,525,542 in restitution to the IRS, representing the approximate unpaid taxes arising from the tax evasion by LLB-Vaduz’s clients.  The NPA applies only to LLB-Vaduz and not to any of its subsidiaries or any individuals.  LLB-Vaduz has decided to close its wholly-owned Swiss subsidiary, Liechtensteinische Landesbank (Switzerland) Ltd. and has also decided to sell another wholly-owned subsidiary, Jura Trust AG. 

Assistant Attorney General Kathryn Keneally stated “this non-prosecution agreement addresses the past wrongful conduct of LLB-Vaduz in allowing U.S. taxpayers to evade their legal obligations through the use of undisclosed Liechtenstein bank accounts, while also acknowledging the extraordinary efforts of the bank in bringing about significant changes in Liechtenstein law.  As a result of new Liechtenstein legislation, U.S. taxpayers who thought that they had obtained the benefit of Liechtenstein’s tax secrecy laws have learned that their bank files were turned over on the request of the Department of Justice.” 

“With this agreement, one of Liechtenstein’s most important banks has put an era behind it.  Today’s agreement with Liechtensteinische Landesbank AG reflects the unprecedented nature of the bank’s cooperation, and serves as another reminder for U.S. tax cheats who mistakenly believe that their offshore bank will never turn over their account files to U.S. authorities.  To them we say, you can hide, but not forever”, said U.S. Attorney Preet Bharara.

“In 2008, Liechtensteinische Landesbank AG began requiring all U.S. taxpayers with accounts at LLB-Vaduz to declare their income.  In addition, Liechtenstein’s Parliament amended their national law on tax matters to make easier the identification to the United States of non-compliant taxpayers. Today’s action sends a strong message to those Americans who hide their true income from the IRS.  It's time to come clean and pay your fair share of taxes like law-abiding citizens do every day”, said IRS-CI Chief  Weber.

The NPA recognizes that, in 2008, before the IRS and the U.S. Attorney’s Office began the investigation, LLB-Vaduz voluntarily implemented a series of remedial measures to stop assisting undeclared U.S. taxpayers in evading federal income taxes.  The NPA further recognizes LLB-Vaduz’s extraordinary cooperation in the form of its support and assistance in 2012 to obtain a change in law by the Liechtenstein Parliament that permitted the Department of Justice to request and obtain the bank files of non-compliant U.S. taxpayers from Liechtenstein without having to identify the taxpayers by name (the “2012 Law”). 

Pursuant to such a request by the Department of Justice, Liechtenstein transferred to the Department of Justice more than 200 files of U.S. taxpayers who held undeclared accounts at LLB-Vaduz, directly or through sham corporations, foundations or trusts (“structures”).  In addition, pursuant to the 2012 Law, the Department of Justice has submitted a second request to the Liechtenstein government for records relating to various Liechtenstein firms that provided trust administration and other fiduciary services that enabled U.S. taxpayers to hold undeclared accounts through structures at banks in Liechtenstein, Switzerland and elsewhere.

As part of the NPA, LLB-Vaduz admitted various facts concerning its wrongful conduct and the remedial measures that it took to cease that conduct.  Specifically, LLB-Vaduz admitted that it knew certain U.S. taxpayers were maintaining undeclared accounts at LLB-Vaduz in order to evade their U.S. tax obligations, in violation of U.S. law.  In addition, LLB-Vaduz admitted that it knew of the high probability that other U.S. taxpayers who held undeclared accounts did so for the same unlawful purpose because significant numbers of U.S. taxpayers employed structures to hold their accounts, instructed LLB-Vaduz to use code names or numbers to refer to them on account statements and other bank documents, instructed LLB-Vaduz not to mail such documents to them in the United States, and instructed LLB-Vaduz not to disclose their identity to the IRS, among other things.  At the end of 2006, LLB-Vaduz held more than $340 million of undeclared assets on behalf of U.S. taxpayers in more than 900 accounts.

As part of the NPA, LLB-Vaduz has agreed to forfeit $16,316,000 to the United States, representing LLB-Vaduz’s total gross revenues from services that it provided to undeclared U.S. taxpayers from 2001 through 2011.  In connection with this forfeiture, LLB-Vaduz has agreed not to contest a civil forfeiture action filed by the United States.  That action was filed on July 30, 2013, in U.S. District Court for the Southern District of New York and assigned to U.S. District Judge Katherine P. Failla.  

            The U.S. Attorney’s Office entered into the NPA based on factors including:

·          LLB-Vaduz’s voluntary implementation of various remedial measures beginning in June 2008, before the investigation of its conduct began;

·          LLB-Vaduz’s voluntary cooperation with this Office and the government of Liechtenstein after becoming aware of this Office’s investigation;

·          LLB-Vaduz’s willingness to continue to cooperate with this Office and the IRS to the extent permitted by applicable law;  

·          LLB-Vaduz’s substantial support for the 2012 Law, which has already permitted the production to the Department of Justice of more than 200 account files of U.S. taxpayers who held undeclared accounts at LLB-Vaduz;  

·          LLB-Vaduz’s representation, based on an investigation by external counsel, that the misconduct under investigation did not, and does not, extend beyond that described in the statement of facts;  

The NPA requires LLB-Vaduz to continue to cooperate with the United States for at least three years from the date of the agreement.  The NPA applies only to LLB-Vaduz and does not apply to any of its subsidiaries, including its Swiss subsidiary,or to any individuals.  In the event that LLB-Vaduz violates the NPA, the U.S. Attorney’s Office may prosecute LLB-Vaduz.

 U.S. Attorney Bharara thanked the IRS for its outstanding work in the investigation of this matter and the Tax Division of the Department of Justice for its assistance in the investigation.  Bharara also thanked the Liechtenstein Tax Authority and the Liechtenstein Public Prosecutor’s Office for their assistance in this matter.

This investigation is being overseen by the U.S. Attorney’s Office’s Complex Frauds Unit.  Assistant U.S. Attorneys David B. Massey, Daniel W. Levy and Jason H. Cowley are in charge of the matter.

Related Materials:

United States v. 15,899,000 in United States Currency
Verified Complaint (PDF)
Agreement Letter (PDF)
 

Yuri Khandrius, 50, of Brooklyn, N.Y., was sentenced today to eight years in prison for his role in a $77 million Medicare fraud scheme.

In addition to the prison term, U.S. District Judge Nina Gershon of the Eastern District of New York sentenced Khandrius to three years of supervised release with a concurrent exclusion from Medicare, Medicaid and all federal and state health programs and an exclusion from any employment that involves handling of any federal or state funds; ordered him to forfeit $446,655; and ordered him to pay restitution in the amount of $10 million. 

Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division; U.S. Attorney Loretta E. Lynch of the Eastern District of New York; Assistant Director in Charge George Venizelos of the FBI’s New York Field Office; and Special Agent in Charge Thomas O’Donnell of the U.S. Department of Health and Human Services’s Office of Inspector General (HHS-OIG) made the announcement.

Khandrius pleaded guilty on Dec. 3, 2012, to one count of conspiracy to commit health care fraud, one count of health care fraud and one count of conspiracy to pay kickbacks.
Including Khandrius, 13 individuals have been convicted in this case.

According to court documents, from 2005 to 2010, Khandrius was an employee of a clinic in Brooklyn that operated under three corporate names: Bay Medical Care PC, SVS Wellcare Medical PLLC and SZS Medical Care PLLC.  According to court documents, the owners, operators and employees of the Bay Medical clinic paid cash kickbacks to Medicare beneficiaries and used the beneficiaries’ names to bill Medicare for more than $77 million in services that were medically unnecessary or never provided.  The defendants billed Medicare for a wide variety of fraudulent medical services and procedures, including physician office visits, physical therapy and diagnostic tests.

According to trial testimony, Khandrius, who holds no medical licenses or certifications, impersonated his co-defendant Dr. Gustave Drivas at the clinic.  Drivas was the Bay Medical clinic’s “no-show” doctor.  Khandrius admitted at his change of plea hearing that he signed prescriptions and medical charts in Drivas’s name and performed medical tests and procedures on patients although he was not licensed to do so. Drivas was convicted by a federal jury on April 8, 2013, of health care fraud conspiracy and health care fraud.

Khandrius’s impersonation of Drivas assisted the conspirators in disguising the use of  Drivas’s Medicare billing number to bill more than $20 million in claims for services that were not rendered or medically unnecessary. According to trial testimony, Khandrius also directed a phony allergy testing fraud at the Bay Medical clinic that involved giving patients bottles of tap water instead of allergy medications; wrote prescriptions for co-workers and at least one minor child using Drivas’s prescription pad; and, in response to a written audit from Medicare, falsely filled out medical charts in an attempt to back up the billing and deceive Medicare.

The government’s investigation included the use of a court-ordered audio/video recording device hidden in a room at the clinic where the conspirators paid cash kickbacks to corrupt Medicare beneficiaries. The conspirators were recorded paying approximately $500,000 in cash kickbacks during a period of approximately six weeks from April to June 2010. This room was marked “PRIVATE” and featured a Soviet-era poster of a woman with a finger to her lips and the words “Don’t Gossip” in Russian. The purpose of the kickbacks was to induce the beneficiaries to receive unnecessary medical services or to stay silent when services not provided to the patients were billed to Medicare.

The case was investigated by the FBI and HHS and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of New York. This case is being prosecuted by Trial Attorney Sarah M. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Shannon Jones of the Eastern District of New York.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,500 defendants who have collectively billed the Medicare program for more than $5 billion. In addition, HHS’s Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country.

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

A federal grand jury has returned a superseding indictment charging Jean Claude Roy, aka “Dredd the Don,” and “Dreddy,” age 31, of Germantown, Md., and Brittney Creason, aka“Kitty Amor,” age 19, of Decatur, IL., of conspiracy to commit sex trafficking.  Dreddy is also charged with sex trafficking and attempted sex trafficking by force, fraud and coercion; interstate transportation for prostitution; possessing and brandishing a firearm during a crime of violence; and witness and evidence tampering.  Creason was arrested today in Las Vegas, where she was being held on unrelated charges.  Dreddy, who was charged in the initial indictment, remains detained.  The superseding indictment was returned on July 24, 2013.

The superseding indictment was announced by U.S.  Attorney for the District of Maryland Rod J. Rosenstein; Acting Assistant Attorney General for the Department of Justice Civil Rights Division Jocelyn Samuels; Special Agent in Charge William Winter of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Chief J. Thomas Manger of the Montgomery County Police Department.

“Protecting our communities from those who engage in human trafficking is a top priority for ICE Homeland Security Investigations,” said William Winter, special agent in charge of HSI Baltimore. "As a member of the Maryland Human Trafficking Task Force, HSI is committed to working with our law enforcement partners to investigate human trafficking, as well as working with our local non-governmental, community-based and faith-based organizations to identify, rescue and assist victims of trafficking.”

According to the 12-count indictment, between August and September 2012, Roy forced  an individual to engage in commercial sex acts, transported the victim across state lines to engage in prostitution and brandished  a gun to facilitate the sex trafficking.  The indictment further alleges that in December 2012, Roy and Creason engaged in a sex trafficking conspiracy to force three individuals to engage in commercial sex acts.  As part of the conspiracy, Roy and Creason are alleged to have recruited and transported females from Illinois and North Carolina, with the intent to have those women engage in prostitution.  According to the indictment, Roy forced one of the victims to engage in sex acts with him, while Creason held her down.  The indictment alleges that Roy forced the women to engage in prostitution by threatening them with physical force and death, brandishing a firearm and by bragging about beating murder charges. Finally, the indictment alleges that from Jan. 1 to Jan. 10, 2013, while Roy was in jail on related state charges, he made numerous telephone calls to an individual and had that person access online accounts and storage services belonging to Roy and Creason in order to erase evidence related to these charges.

Roy and Creason face a maximum sentenced of life in prison for conspiracy to commit sex trafficking.  Roy faces a minimum mandatory sentence of 15 years in prison and a maximum of life in prison on each of two counts of sex trafficking and two counts of attempted sex trafficking; a mandatory sentence of seven years for the first count of brandishing a firearm in relation to a crime of violence and a mandatory sentence of 25 years for the second count, consecutive to any other sentence imposed, and a maximum of life in prison; a maximum of 10 years in prison for each of four counts of interstate transportation for prostitution; and a maximum of 20 years in prison for witness and evidence tampering.  An initial appearance has not yet been scheduled for the defendants in U.S. District Court in Greenbelt, Md.

An indictment is not a finding of guilt.  An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.  

This case was investigated by the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders.  Members include federal, state and local law enforcement, as well as victim service providers and local community members.  For more information about the Maryland Human Trafficking Task Force, please visit www.justice.gov/usao/md/Human‑Trafficking/index.html.

Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.

U.S. Attorney Rod J. Rosenstein commended HSI Baltimore and the Montgomery County Police Department for their work in the investigation.  Mr. Rosenstein thanked Assistant U.S. Attorney Kristi N. O’Malley, and Trial Attorney William E. Nolan of the U.S. Department of Justice Civil Rights Division's Human Trafficking Prosecution Unit, who are prosecuting the case.

The Justice Department announced that federal courts in Minnesota, Texas, Pennsylvania, Oklahoma, Virginia and California have entered orders over the past week authorizing the Internal Revenue Service (IRS) to serve John Doe summonses on certain U.S. banks and financial institutions, seeking information about persons who have used specific credit or debit cards in Norway.  The summonses are referred to as “John Doe” summonses because the IRS does not know the identity of the person being investigated.  While orders have been entered in seven of these cases, the United States’ petitions in three additional cases remain pending.

The lawsuits, filed on July 19 and 22, 2013, in nine federal districts, were initiated at the request of the Norwegian government under a treaty between Norway and the United States.  The treaty allows the two countries to cooperate in exchanging information that is helpful in enforcing each country’s tax laws.  The United States is seeking the identities of persons who have used specific debit or credit cards issued by certain U.S. financial institutions so that Norway can determine if those persons have complied with Norwegian tax laws. A total of 18 U.S. financial institutions are identified in the government’s court filings. The filings do not allege that these financial institutions have violated any U.S. laws with respect to these accounts.

As alleged in court papers filed by the Justice Department, Norwegian authorities have reason to believe, based upon the use of payment cards in Norway that were issued by U.S. banks, that unidentified card holders may have failed to report financial account information or income on their Norwegian tax returns.  Court papers cite examples where individuals using non-Norwegian payment cards have claimed to be tax residents of other countries but were found to have resided in Norway for sufficient time to subject them to taxes in Norway.  

“The Department of Justice and the IRS are committed to working with our treaty partners to fight tax evasion wherever it occurs,” said Kathryn Keneally, Assistant Attorney General for the Justice Department’s Tax Division. “All taxpayers should know that our efforts in this area are global, coordinated and will continue.”

“These summonses reflect our continuing efforts to work with our international partners on offshore tax evasion,” said Douglas O’Donnell, IRS Assistant Deputy Commissioner, Large Business & International (LB&I). “By using effectively our existing network of bilateral agreements, countries can help one another put an end to the global practice of evading taxation by hiding assets abroad.”

The lawsuits are a part of ongoing international efforts to stop persons from using foreign financial accounts as a way to evade taxes.  Courts have previously approved John Doe summonses allowing the IRS to identify individuals using offshore accounts to evade their U. S tax obligations.  In the present suits, the Justice Department is seeking the identities of persons who may be attempting to hide their Norwegian taxable income in U.S. financial accounts.

Below is a list of the decided and pending cases. Copies of the pleadings will be made available on the Tax Division’s website :

• Petitions Granted:

In the Matter of the Tax Liabilities of John Does , Case No. 13-cv-01097 (C.D. Calif.)

In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00056 (D. Minn.)

In the Matter of the Tax Liabilities of John Does , Case No. 13-mc-00024 (E.D. Va.)

In the Matter of the Tax Liabilities of John Does , Case No. 13-mc-00018 (N.D. Okla.)

In the Matter of the Tax Liabilities of John Does , Case No. 13-cv-01066 (W.D. Pa.)

In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00657 (W.D. Tex.)

In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00232 (W.D. Tex.)

• Pending Petitions:

In the Matter of the Tax Liabilities of John Does , Case No. 13-cv-03393 (N.D. Calif.)

In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00301 (S.D. Miss.)

In the Matter of the Tax Liabilities of John Doe , Case No. 13-mc-00038 (D. N.H.)

 More information about the Justice Department’s Tax Division is available at http://www.justice.gov/tax/ .

Related Materials:

In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding East West Bank Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summonses; Memorandum in Support; Declaration of Cheryl Kiger; Declaration of Michael Danilack; (Proposed) Order (PDF)
Order (PDF)

In the Matter of the Tax Liabilities of: John Doe, Norwegian Taxpayer Holding Prairie Sun Bank Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "Johne Doe" Summons (PDF)
Ex Parte Petition for Leave to Serve "Johne Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "Johne Doe" Summons (PDF)
Order (PDF)
Summons (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)

In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding Bokf, N.A. Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Order (PDF)
Summons (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)

In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding PNC Bank N.A. Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summonses (PDF)
Order (PDF)
Summons (RBS Citizens, N.A.) (PDF)
Summons (PNC Bank, N.A.) (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)

In the Matter of the Tax Liabilities of: John Doe, Norwegian Taxpayer Holding USAA Federal Savings Bank Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)

In the Matter of the Tax Liabilities of: John Doe, Norwegian Taxpayer Holding American Express Company Payment Card, etc.
Notice of Filing Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Memorandum in Support of Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order (PDF)
Declaration of Cheryl Kiger (PDF)
Declaration of Michael Danilack (PDF)

In the Matter of the Tax Liabilities of: John Does, Norwegian Taxpayers Holding Capital One Bank, N.A. Payment Card, etc.
Ex Parte Petition for Leave to Serve "John Doe" Summons (PDF)
Order (PDF)

The Department of Justice announced today that it has filed a lawsuit against Dr. Hal Brown and Primary Care of the Treasure Coast of Vero Beach, Fla. (PCTC), alleging that the doctor and the medical practice violated the Americans with Disabilities Act by discriminating against Susan and James Liese, who are deaf. The complaint alleges that the doctor and the practice violated the ADA by retaliating against Mr. and Mrs. Liese because they engaged in activities protected under the act.  The suit was filed in the U.S. District Court for the Southern District of Florida in Ft. Pierce.

According to the Justice Department’s complaint, the doctor and medical practice terminated Mr. and Mrs. Liese as patients because the couple pursued ADA claims against a hospital for not providing effective communication during an emergency surgery.  The hospital is located next door to and affiliated with PCTC.  The complaint alleges that the Lieses threatened the hospital with an ADA suit based on failure to provide sign language interpreter services, and upon learning of the lawsuit, PCTC and Dr. Brown, who was the Liese’s primary doctor at PCTC, immediately terminated the Lieses as patients.

“The Department of Justice is committed to enforcing the provisions of the ADA that protect an individual from retaliation when he or she opposes disability discrimination and prohibit interference with an individual in the exercise of rights granted by the ADA,” said Jocelyn Samuels, Acting Assistant Attorney General for the Civil Rights Division.  “A person cannot be terminated as a patient because he or she asserts the right to effective communication at a hospital.”

The enforcement of the ADA is a top priority of the Justice Department’s Civil Rights Division.  The ADA prohibits retaliation against an individual because they oppose an act that is unlawful under the ADA and because they made a charge, testified, assisted or participated in any manner in an investigation, proceeding or hearing under the ADA.  The ADA also makes it unlawful to coerce, intimidate, threaten or interfere with any individual exercising their rights protected by the ADA.  The department’s Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate allegations of discrimination based upon disability. Visit www.justice.gov/crt and www.ada.gov to learn more about the ADA and other laws enforced by the Civil Rights Division.

Edin Sakoc, 54, of Burlington, Vt., was arrested today on charges that he obtained his naturalized citizenship through fraud by failing to disclose his prior acts of persecution and crimes committed during the Bosnian conflict, announced Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney Tristram J. Coffin of the District of Vermont, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Special Agent in Charge in Boston Bruce M. Foucart and Special Agent in Charge Andrew W. Vale of the FBI’s Albany, N.Y., Field Office.

According to the indictment filed in Burlington, Sakoc committed naturalization fraud by providing false and fraudulent information about his commission of crimes and his participation in the persecution of Bosnian Serbs during the conflict in Bosnia-Herzegovina.  Specifically, the indictment alleges that, in July 1992, Sakoc kidnapped and raped a Bosnian Serb woman and aided and abetted the murder of her elderly mother and aunt.  Sakoc also allegedly aided and abetted the burning of the victims’ family home.  According to the indictment, Sakoc allegedly failed to disclose his participation in these activities during his immigration and naturalization process.
   
Sakoc was charged in a two-count indictment filed yesterday in the U.S. District Court in the District of Vermont.  The charges carry a maximum sentence of 10 years in prison as well as automatic revocation of his U.S. citizenship and a fine of up to $250,000. 

The case is being investigated jointly by HSI Burlington and the FBI’s Albany Division.  ICE’s Human Rights Violators and War Crimes Center assisted in this investigation. Valuable assistance was provided by the Criminal Division’s Office of International Affairs and its counterpart at the Prosecutor’s Office of Bosnia and Herzegovina.  

Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the Human Rights and Special Prosecutions Section at hrsptips@usdoj.gov or toll-free at 1-800-813-5863 or the HSI tip line at 1-866-DHS-2-ICE or to complete its online tip form at www.ice.gov/exec/forms/hsi-tips/tips.asp.

The case is being prosecuted by Senior Trial Attorney Matthew C. Singer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Eugenia Cowles of the District of Vermont.  

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

Related Materials:

Indictment

The Justice Department announced today that a federal grand jury in Baton Rouge, La., returned an indictment yesterday charging Anthony Williams and Bobby Riley with conspiring to threaten to retaliate against a witness in a federal trial, threatening to retaliate against a witness in a federal trial and making false statements to federal agents.

According to the indictment, Williams and Riley, both residents of Baton Rouge, threatened to cause bodily injury to a witness who testified in the federal trial of United States v. Angela Myers.  The indictment alleges that Williams and Riley made a threat via Instagram with the intent to retaliate against the witness for his testimony in the Myers trial.  In March 2013, Myers was convicted by a jury of twenty-one federal felonies in a stolen identity tax refund fraud prosecution.  The indictment also alleges that Williams and Riley made false statements to federal agents in March 2013. 

An indictment merely alleges that crimes have been committed, and each defendant is presumed innocent of all crimes until proven guilty beyond a reasonable doubt.  If convicted, Riley and Williams each face a potential maximum sentence of 30 years in federal prison.

This case was investigated by Special Agents of the IRS - Criminal Investigation and the Treasury Inspector General for Tax Administration.  Trial Attorneys Justin Gelfand and Jason Poole of the Justice Department’s Tax Division are prosecuting the case with the assistance of the U.S. Attorney’s Office for the Middle District of Louisiana.

The Justice Department announced today that, as part of its Barrier-Free Health Care Initiative, it has reached a settlement with Barix Clinics under the Americans with Disabilities Act (ADA).  Barix Clinics operates bariatric treatment facilities in Michigan and Pennsylvania.  The settlement resolves allegations that Barix Clinics violated the ADA by refusing or cancelling surgery for two individuals because they have HIV.  This is the fifth settlement that the Justice Department has reached this year addressing HIV discrimination by a medical provider.

 The Justice Department found that Barix Clinics unlawfully refused to perform bariatric surgery on a man at its Langhorne, Pa., facility because he has HIV.  The department also determined that Barix Clinics cancelled bariatric surgery for another individual, Mr. Frank Hill, at its Ypsilanti, Mich., facility because of his HIV.  The department’s investigation revealed that Barix Clinics’ actions were not based on individual assessments of the patients or based on current medical knowledge.

 “Erecting unnecessary barriers to medical care for people with HIV can further exacerbate their condition and their marginalization in society,” said Jocelyn Samuels, Acting Assistant Attorney General for Civil Rights.  “These are the barriers that the ADA and the Justice Department seek to tear down.”

 “Blanket exclusions of patients with HIV are misguided and illegal," said Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan.  “Under the law, caregivers cannot withhold care unless the decision is based on current medical knowledge about the particular patient and condition, not on stereotypes about a disability.”

Under the settlement, Barix Clinics must pay $20,000 to the first complainant, $15,000 to Hill and a $10,000 civil penalty.  In addition, it must train its staff on the ADA and develop and implement an anti-discrimination policy. 

In the past six months, the department has reached five settlement agreements with medical providers to address HIV discrimination.  All five settlements are part of the Department of Justice’s Barrier-Free Health Care Initiative, a partnership of the Civil Rights Division and U.S. Attorney’s offices across the nation, to target enforcement efforts on a critical area for individuals with disabilities.  The initiative, launched on the 22nd anniversary of the ADA in July 2012, includes the participation of 40 U.S. Attorney’s offices and addresses access to health care for people with HIV and those with hearing disabilities, as well as physical access to medical facilities.  The department has reached a total of 18 settlements (including these five) regarding medical providers’ failure to provide access for people with HIV or who are deaf or hard of hearing.  For more information on the Barrier-Free Health Care Initiative visit http://www.ada.gov/usao-agreements.htm .

For more information on the ADA and HIV, visit www.ada.gov/aids .   Those interested in finding out more about these settlements or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov .  ADA complaints may be filed by email to ada.complaint@usdoj.gov .