District Not Recorded

ST. LOUIS – A jury in U.S. District Court in St. Louis on March 19, 2024 found Phillip J. Cutler of Muskogee, Oklahoma guilty of conspiring to murder-for-hire and the murder-for-hire of St. Louis Public School teacher Jocelyn Peters, and her unborn child, Micah Leigh, in 2016.

Prosecutors proved to jurors that Cutler was enlisted by his longtime friend, Cornelius M. Green, to murder Green’s 30-year-old girlfriend, Jocelyn Peters, and her unborn child.

Green, 42, of St. Louis, pleaded guilty on Feb. 28, 2024 to the same charges. He admitted as part of his plea hiring his longtime friend, Cutler, to kill Peters. Peters was 31 weeks pregnant with Green’s child, which she had named Micah Leigh. Green was also involved in sexual relationships with several other women.

Green admitted during his plea that he used cash stolen from Carr Lane Middle School, where he was principal, to pay Cutler. On Feb. 28, 2016, Green texted Cutler and asked him to come to St. Louis during the week of March 20, 2016. Cutler asked if Green would be sending “the package,” and on March 7, Green sent Cutler a UPS package containing $2,500 cash.

On March 21, Cutler arrived in St. Louis via Greyhound bus, staying with Green’s sister. Green took a train trip to Chicago to establish his alibi for the murder, giving Cutler the keys to his Kia Optima and Peters’ apartment.

On March 24, Cutler drove Green’s car to Peters’ apartment in the 4200 block of West Pine in St. Louis, let himself in using Green’s keys, and shot Peters in the eye using a potato as a silencer. During his testimony, Cutler admitted seeing the 1992 film South Central, during which a character similarly used a potato as a silencer. Peters was working on baby shower invitations at the time she was killed.

At 6:14 a.m. the morning following the murder, Cutler confirmed to Green that Jocelyn and the baby had been killed. Following their conversation, Green bought his return train ticket, and Cutler then went to North River Front Park to dispose of evidence.

Upon arriving back in St. Louis, Green retrieved his car from Cutler and went directly to Peters’ apartment and called 911 to report her death. He repeatedly made false statements to law enforcement and others attempting to evade responsibility for his ordering of the murders and pretending he had no knowledge of the circumstances leading to the deaths. Cutler was detained for questioning that same night after attempting to retrieve the Kia Optima from the crime scene. When told he was being detained, Cutler actually ate two pieces of paper from a notebook in his pocket.

Green is scheduled to be sentenced June 5 and faces a sentence of life in prison. As part of the plea, the St. Louis Circuit Attorney’s Office has agreed to dismiss their case against Green for the murders if he is sentenced to life in federal prison.

Cutler is scheduled to be sentenced June 18. He faces life in prison on each charge.

The St. Louis Metropolitan Police Department and the FBI investigated the case, which is being prosecuted in cooperation with the St. Louis Circuit Attorney’s Office. Assistant U.S. Attorneys Tiffany Becker and Zachary Bluestone are prosecuting the case.  Former SLMPD Detective Mark Biondolino was the case agent.

A Maryland man pleaded guilty today in Baltimore federal court to conspiracy to commit bank fraud.

According to court documents, Theodore Sapperstein, 66, of Pikesville, and his coconspirators unlawfully debited money from the bank accounts of unknowing U.S. victims without their authorization. Sapperstein and his coconspirators created shell companies and then falsely represented that debits against consumer-victims’ bank accounts were authorized as payment for services allegedly provided by those shell companies.

The unauthorized debits against consumer-victim accounts resulted in returned transactions and high return rates that could generate scrutiny from banks. To both conceal and continue making unauthorized debits, Sapperstein and his coconspirators caused “micro debit” transactions (i.e., a large number of low-value sham transactions) to be made against other bank accounts that they controlled and/or funded, and which they knew would not result in returns. The “micro debits” were therefore used to artificially lower return rates to levels that Sapperstein and his coconspirators believed would reduce bank scrutiny and potential termination of banking services. Sapperstein helped broker payment processing for the fraud scheme, securing a payment processor who processed the unauthorized debits and the fraudulent micro debits. As part of his guilty plea, Sapperstein admitted that more than $1.5 million in loss was reasonably foreseeable to him.

“Those who knowingly participate in schemes to use personal and financial information about American consumers to steal money from their accounts will be held accountable,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to investigating and prosecuting individuals who facilitate such schemes.”

“The U.S. Postal Inspection Service (USPIS) will not tolerate schemes aimed at draining the accounts of innocent people trying to create financial stability for themselves and their families,” said Inspector in Charge Carroll N. Harris of USPIS' LA Division. “Postal Inspectors along with their law enforcement partners will tirelessly investigate these crimes, ensuring these criminals face the maximum penalties for their illegal activities.”

“We formed the Maryland Financial Intelligence Task Force to identify financial fraudsters, whose actions impact victim-account holders here in Maryland and beyond,” said U.S. Attorney Erek L. Barron for the District of Maryland. “Our goal is to aggressively protect the financial information of public consumers.”

A sentencing hearing is scheduled for Aug. 15. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Cases against related scheme participants have previously been filed in Los Angeles, San Diego, and Las Vegas. In May 2023, a grand jury in Los Angeles returned an indictment in United States v. Courdy, et al. charging 14 defendants with RICO conspiracy and other charges in the Central District of California. The indictment alleges that the defendants and associates debited consumer-victims’ bank accounts without authorization and used shell entities and “micro debits” to conceal the activity from banks. The “Information for Victims in Large Cases” section on the Consumer Protection Branch’s website contains additional information on United States v. Courdy, et al. In December 2023, scheme participant Luis Ramirez pleaded guilty to conspiracy to commit access device fraud in federal court in San Diego, and is scheduled to be sentenced on April 22. A related scheme participant, Harold Sobel, pleaded guilty to bank fraud conspiracy in federal court in Las Vegas. In December 2022, Sobel was sentenced to 42 months in prison.

The U.S. Postal Inspection Service is investigating the case.

Trial Attorneys Wei Xiang, Meredith Healy and Amy Kaplan of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Darryl Tarver for the District of Maryland are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Central District of California.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Consumer complaints may be filed with the FTC at www.reportfraud.ftc.gov/ or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

The Justice Department announced today that it has secured a settlement agreement with Printful Inc. (Printful), an on-demand printing and fulfillment company headquartered in Charlotte, North Carolina. The agreement resolves the department’s determination that Printful violated the Immigration and Nationality Act (INA) by discriminating against a worker based on her citizenship status when checking her permission to work, and by having a discriminatory policy requiring non-U.S. citizens to present specific documents to prove their permission to work.

“Companies cannot reject workers’ valid documents or require specific or unnecessary documents based on citizenship status when checking their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable employers who run afoul of our nation’s civil rights laws.”

The department’s investigations determined that Printful rejected a lawful permanent resident’s valid driver’s license and Social Security card, even though those documents were sufficient to prove her permission to work, and required her to present her Permanent Resident Card (sometimes referred to as a “green card”). The Civil Rights Division’s Immigrant and Employee Rights Section (IER) also concluded that Printful maintained at least a year-long policy, starting from July 2022 to July 2023, of requiring non-U.S. citizens to present specific documents to prove their permission to work while allowing U.S. citizens a choice of documents. Federal law allows all workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status or national origin. Employers cannot demand more documents than are necessary or specify documentation they prefer to see as part of this process.

Under the terms of the settlement, Printful will pay civil penalties to the United States and backpay to the worker who filed a complaint. The agreement also requires Printful to train its personnel on the INA’s anti-discrimination requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements.

IER is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee; unfair documentary practices; retaliation and intimidation. 

Find more information on how employers can avoid discrimination when verifying someone’s permission to work on IER’s website. Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a live webinar or watch an on-demand presentation; email IER@usdoj.gov or visit IER’s English and Spanish websites. Sign up for email updates from IER.

The Justice Department’s Civil Rights Division hosted a forum in Orange County, California, today with the U.S. Attorney’s Office for the Central District of California on the department’s continued efforts to combat religious discrimination and promote religious liberty through enforcement of the Religious Land Use and Institutionalized Persons Act (RLUIPA). RLUIPA is a federal law that protects people and religious institutions from discriminatory and overly burdensome land use regulations. The division also issued a letter to state, county and municipal leaders throughout the country to remind them of their obligations under RLUIPA.

During the forum, Deputy Assistant Attorney General Johnathan Smith of the Justice Department’s Civil Rights Division and U.S. Attorney Martin Estrada for the Central District of California discussed the continued importance of RLUIPA and highlighted the need to ensure that the public is aware of the critical protections provided by the law. They heard from members of different religious communities, land use officials and local attorneys about challenges involving religious land use in Southern California.   

Today’s forum, held at the Fowler School of Law at Chapman University, is the second in a series of nationwide outreach events designed to ensure that communities understand RLUIPA’s legal protections and are of the department’s enforcement of the law. The department held the first outreach event of the series in October in New Jersey. 

“At this time when many faith communities are experiencing antisemitism, Islamophobia or other forms of religious discrimination, the department is actively working to guarantee that all faith communities are free to worship and engage in religious exercise,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Religious Land Use and Institutionalized Persons Act is an important federal law in the Justice Department’s efforts to combat religious discrimination. Our letter aims to ensure that state and local governments around the country are aware of and understand their obligations under the law.”

“Today’s unprecedented gathering brought together local faith leaders, land use officials, lawyers and students to learn and discuss how federal laws such as RLUIPA protect the free exercise of religion,” said U.S. Attorney Martin Estrada for the Central District of California. “My office and the entire Justice Department is committed to protect religious institutions from unduly burdensome or discriminatory land use regulations. Over the past year, the civil rights attorneys in my office have worked closely with local religious organizations such as Micah’s Way and the Catholic Charities of Orange County to ensure that zoning officials do not run afoul of the RLUIPA statute.”

The Civil Rights Division’s letter to officials outlines RLUIPA’s land use provisions and emphasizes the protections they afford to religious institutions and assemblies. The letter, which describes documents and resources available from the Justice Department to help local governments comply with RLUIPA, was prompted by a concern, based on the department’s enforcement and outreach work, that many government officials are insufficiently familiar with law’s requirements.

RLUIPA was passed unanimously by Congress and signed into law on Sept. 22, 2000. The law contains provisions covering both religious land use and religious exercise by people who are incarcerated. Since RLUIPA’s passage, the department has opened over 155 formal investigations and filed nearly 30 lawsuits and 36 briefs related to RLUIPA’s land use provisions. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.

The U.S. Attorney’s Office for the Central District of California is actively involved in enforcing RLUIPA, including recently filing a statement of interest in Micah’s Way v. City of Santa Ana, a federal lawsuit alleging that Santa Ana violated a faith-based group’s freedom to engage in protected religious exercise.

Individuals who believe they have been subjected to religious discrimination in land use or zoning decisions may file a complaint with the U.S Attorney’s Office at www.justice.gov/usao-cdca/civil-division/civil-rights-section or call the U.S. Attorney’s Office Civil Rights Section at (213) 894-2879. Individuals may also contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291 or submit a complaint through the complaint portal. 

El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Printful Inc. (Printful), una empresa de impresión y logística a la carta con sede en Charlotte, Carolina del Norte. El acuerdo resuelve la determinación del Departamento que Printful infringió la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) cuando discriminó a un trabajador por motivos de su estatus de ciudadanía a la hora de verificar su permiso para trabajar, y al tener una política discriminatoria que requiere que los no ciudadanos de los EE. UU. presenten documentos específicos para demostrar su permiso para trabajar.

«Al verificar su permiso para trabajar, las empresas no pueden rechazar documentos válidos de los trabajadores ni tampoco requerir que entreguen documentos específicos o innecesarios, con base en su estatus de ciudadanía», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá responsabilizando a los empleadores que vulneren las leyes de derechos civiles de nuestra nación».

Las investigaciones del Departamento determinaron que Printful rechazó la licencia de conducir y la tarjeta del Seguro Social válidas de un residente permanente legal, aunque esos documentos eran suficientes para demostrar su permiso para trabajar, y le exigió que presentara su tarjeta de residente permanente (a veces denominada «tarjeta verde»). Por otra parte, la Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés), de la División de Derechos Civiles, también concluyó que Printful mantuvo una política durante al menos un año, eso es, desde julio del 2022 hasta julio del 2023, de exigir que los no ciudadanos de los EE. UU. presentasen documentos específicos para demostrar su permiso para trabajar mientras ofrecía una selección de documentos a ciudadanos de los EE. UU. Las leyes federales permiten a todos los trabajadores elegir la documentación válida y legalmente aceptable que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. Los empleadores no pueden exigir más documentos de los necesarios ni especificar la documentación que prefieren ver como parte de este proceso.

En virtud de los términos del acuerdo, Printful pagará sanciones civiles a los Estados Unidos y pagos retroactivos al trabajador que presentó una reclamación. El acuerdo también requiere que Printful capacite a su personal en cuanto a los requisitos antidiscriminatorios de la INA, que revise sus políticas de empleo y que se someta a los requisitos de supervisión y declaración departamentales.

La IER es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.  

Puede obtener más información sobre cómo los empleadores pueden evitar la discriminar al verificar el permiso para trabajar de alguien en el sitio web de la IER.  Aprenda más sobre el trabajo de la IER y cómo conseguir ayuda mediante este vídeo corto. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido, reclutamiento o verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) o sujetos a represalias pueden presentar una denuncia. El público también puede llamar a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llamar a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscribirse a un seminario en línea gratuito o visualizar una presentación a la carta; enviar un correo electrónico a IER@usdoj.gov; o visitar los sitios web de la IER en inglés y español. Inscríbase para recibir actualizaciones por correo electrónico desde la IER.

WINSTON-SALEM – A North Carolina man was sentenced today to 224 total months of imprisonment, after pleading guilty to one count of felon in possession of a firearm, announced United States Attorney Sandra J. Hairston of the Middle District of North Carolina (MDNC).

ARMAND SAQUAN SUFYAN LEWIS-LANGSTON, age 26, of Durham, North Carolina, was sentenced by the Honorable Thomas D. Schroeder, United States District Judge in the United States District Court for the MDNC to a 200-month term of imprisonment after pleading guilty on December 11, 2023, to felon in possession of a firearm, a violation of Title 18, United States Code, Sections 922(g)(1) and 924(e). He was sentenced to an additional twenty-four-month term of imprisonment to run consecutively to the 200-month term for violating the terms of his federal supervised release.

According to court records, LEWIS-LANGSTON, then on federal supervised release after serving a 26-month term of imprisonment for felon in possession of a firearm, was found asleep in a car by a Durham Police Department (DPD) officer on October 22, 2020, with a Cugir 7.62x39 Draco assault-style pistol. He was arrested and charged by the state and bonded out of custody.

On November 17, 2020, officers with the DPD Select Enforcement Team arrested LEWIS-LANGSTON at a residence on Scheer Avenue in possession of a Kel-Tec Sub2000 9mm foldable rifle. This firearm was forensically linked to the shooting of an off-duty Durham County Sheriff’s Office deputy that occurred on November 14, 2020. Specifically, a forensic firearms examiner with DPD microscopically compared 9mm cartridge casings recovered from the November 14, 2020, shooting of the deputy with a cartridge casing test fired from the Kel-Tec Sub2000 9mm foldable rifle and determined that, based on similar class characteristics and sufficient agreement of individual characteristics, the 9mm cartridge casings recovered from the scene on November 14, 2020, were fired from the Kel-Tec Sub2000 9mm foldable rifle.

At the time of these offenses, LEWIS-LANGSTON had been previously convicted of multiple felonies. In connection with these offenses, LEWIS-LANGSTON was sentenced to multiple terms of imprisonment exceeding one year. Thus, at the time of the offenses, LEWIS-LANGSTON was legally barred from possessing a firearm due to his status as a felon.

The case was investigated by the Federal Bureau of Investigation’s Raleigh-Durham Safe Streets Task Force (SSTF), the Durham Police Department, and the Durham County Sheriff’s Office. The lead investigator was an FBI Task Force Officer from the Durham County Sheriff’s Office. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.

Since 1992, the FBI’s Safe Streets Violent Crime Initiative has successfully aligned FBI Agents, state and local law enforcement investigators, and federal and state prosecutors onto SSTFs to reduce violent crime. This nationwide initiative brings resources together in a “force multiplier concept” and utilizes the expertise of each agency. SSTFs focus primarily upon street gang and drug-related violence through sustained, proactive, coordinated investigations to obtain prosecutions on violations such as racketeering, drug conspiracy, and firearms violations.

A copy of this press release will be posted on our website. Related court documents and information can be found on the website of the U.S. District Court for the Middle District of North Carolina or on PACER by searching for Case Nos. 1:23-cr-321-1 and 1:16-cr-10-1.

Two former Mississippi law enforcement officers were sentenced today for the torture and abuse of two Black men in Rankin County, Mississippi. Hunter Elward, 31, a former Rankin County Sheriff’s Office (RCSO) Deputy, was sentenced to 20 years in prison. Jeffrey Middleton, 46, a former RCSO Lieutenant, was sentenced to 17.5 years in prison.

Four more defendants, all former Mississippi law enforcement officers, will be sentenced tomorrow and Thursday. In 2023, all six defendants pleaded guilty to a criminal information charging them with multiple felony offenses, including civil rights conspiracy, deprivation of rights under color of law, discharge of a firearm during a crime of violence, conspiracy to obstruct justice, and obstruction of justice.

The Justice Department issued the following statement from Attorney General Merrick B. Garland:

“These defendants will spend  20 years and 17.5 years in prison for their heinous attack on citizens they had sworn an oath to protect,” said Attorney General Merrick B. Garland. “These defendants kicked in the door of a home where two Black men were residing, handcuffed and arrested them without probable cause, called them racial slurs, and punched, kicked, tased, and assaulted them. After one of the defendants fired his gun in the mouth of one of the victims, breaking his jaw, the defendants gathered outside to come up with a cover story as the victim lay bleeding on the floor. The Justice Department will hold accountable officers who violate constitutional rights, and in so doing, betray the public trust.”

The Justice Department issued the following statement from Attorney General Merrick B. Garland on the release of the FBI Quarterly Uniform Crime Report:

“In May 2021, the Justice Department launched our violent crime reduction strategy aimed at addressing the spike in violent crime that occurred during the pandemic.

“Since then, our prosecutors, agents, and grantmaking experts have worked in close partnership with police departments and communities across the country to go after the recidivists and gangs that are responsible for the greatest violence; to seize illegal guns and deadly drugs; to make critical investments in hiring more law enforcement officers; and to fund evidence-based, community violence intervention initiatives.

“We know that hard fought progress can easily slip away, and we must remain focused and vigilant. But today, we are encouraged by this data indicating a decrease in violent crime in communities across the country in 2023 compared to the prior year, including an over 13% decline in homicides. This important indicator of declining violent crime comes in the wake of other encouraging data we have seen released within the last year. 

“The Justice Department will continue to remain laser-focused on working with our law enforcement and community partners to drive down violent crime. We will not rest until every community in our country is safe.”

A Tennessee nurse practitioner known locally as the “Rock Doc” was sentenced today to 20 years in prison for illegally prescribing opioids — including oxycodone and fentanyl — from his medical practice in Jackson, Tennessee.

“The self-proclaimed ‘Rock Doc’ abused the power of the prescription pad to supply his small community with hundreds of thousands of doses of highly addictive prescription opioids to obtain money, notoriety, and sexual favors,” said Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division. “The defendant’s conduct endangered his patients and the community as a whole. Today’s sentence reflects the seriousness of this criminal conduct and the department’s commitment to protecting communities from the scourge of illegally prescribed drugs.”

“The epidemic of opioid abuse is fueled by doctors like the defendant who are willing to over-prescribe highly addictive drugs and exploit patient pain for their own financial gain,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “This sentence sends a strong message that healthcare professionals who prey on those who suffer from addiction are no better than street corner drug dealers — and that our office and law enforcement partners will hold them just as accountable for their crimes.”

According to court documents and evidence presented at trial, Jeffrey W. Young Jr., 49, of Jackson, used his medical practice, Preventagenix, to illegally prescribe medically unnecessary controlled substance pills to hundreds of patients, including a pregnant woman and women with whom he was having inappropriate physical relationships. Young maintained a party-type atmosphere at his clinic, and prescribed these drugs at least in part to boost his popularity on social media and promote a self-produced reality TV show pilot based on his self-identified persona, the “Rock Doc.” Young prescribed more than 100,000 doses of hydrocodone, oxycodone, and fentanyl into the community.

“Mr. Young operated a medical practice with a wanton disregard for the health and well-being of his patients who entrusted him with their medical care,” said Acting Special Agent in Charge Erek Davodowich of the Drug Enforcement Administration (DEA) Louisville Field Division. “Any healthcare provider who conducts business in such a manner that causes harm to his patients and community should expect to meet the full weight of the justice system.”

“While we applaud the dedication of the overwhelming majority of medical providers, on occasion, a provider such as Mr. Young abuses his prescribing authority to serve self-interests and contribute to patient addiction and endangerment,” said Director David Rausch of the Tennessee Bureau of Investigation (TBI). “Alongside our valuable law enforcement partners, the healthcare community, and private citizens, the TBI stands committed to identifying, investigating, and bringing to justice those who seek to misuse their authority for personal gain or notoriety and put our community at risk.”

The DEA and TBI investigated the case, with valuable assistance from the Jackson Police Department.

Assistant Chief Kate Payerle and Trial Attorney Drew Pennebaker of the Criminal Division’s Fraud Section prosecuted the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

On March 11 and 12, Deputy Assistant Attorney General (DAAG) Arun G. Rao of the Civil Division’s Consumer Protection Branch (CPB), Deputy Assistant Attorney General Lisa H. Miller of the Criminal Division’s Fraud and Appellate Sections, CPB leadership, London-based Justice Department Attaché Ken Kohl, and the department’s London-based Fraud Prosecutorial Liaison Vanessa Sisti attended the United Kingdom (U.K.) Home Office’s first Global Fraud Summit in London. Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division, FBI Deputy Assistant Director James C. Barnacle, U.S. Department of Homeland Security (DHS) Deputy Under Secretary Kelli Ann Burriesci, and DHS Attaché to the United Kingdom Craig Symons were also part of the U.S. delegation. They were joined by over 200 leaders from government, law enforcement, regulatory agencies, and the public and private sectors, as well as experts from the banking, technology, and telecommunications industries from 11 countries, including Australia, Canada, France, Germany, Italy, Japan, New Zealand, the Republic of Korea, Singapore, and the United Kingdom, along with INTERPOL, EUROPOL, and the United Nations’ Office on Drugs and Crime.

U.S. Delegation at the Global Fraud Summit.

 DAAG Rao participated in discussions at Global Fraud Summit.

While at the Global Fraud Summit, DAAG Rao delivered remarks on behalf of the department at two plenary ministerial sessions on March 11, facilitated by U.K. Home Secretary James Cleverly, where he spoke about the scale of the global fraud threat and the role of law enforcement, as well as how governments and institutions can collaborate to protect the public. DAAG Rao and members of the U.S. delegation also participated in a series of strategic discussions on the nature of global fraud with experts from the banking, technology, and telecommunications industries on March 12. DAAG Miller and FBI Assistant Director Nordwall co-chaired a law enforcement roundtable about the challenges that law enforcement face when investigating fraud and what law enforcement can do to ensure they remain responsive to these evolving threats. 

 DAAG Miller and FBI Assistant Director Nordwall co-chaired a law enforcement roundtable.

The U.S. delegation joined international ministers to endorse a framework and commit to coordinate for purposes of giving global law enforcement agencies access to enhanced intelligence to stop fraud at the source and disrupt international fraud networks.

On March 11, DAAG Rao and the CPB leadership met with Josephine Teo, the Minister for Communications and Information of Singapore, to discuss ways to work together against shared transnational fraud threats.

DAAG Rao, CPB Director Amanda Liskamm, and CPB Senior Deputy Director of Criminal Litigation A.J. Nardozzi met with Singaporean delegation.

On March 13, DAAG Miller, DAAG Rao, and the CPB leadership met with Nick Ephgrave QPM, Director of the U.K.’s Serious Fraud Office to discuss areas of future collaboration.

 DAAGs Rao and Miller with Director of the U.K.’s Serious Fraud Office Nick Ephgrave QPM (center).

On March 13, DAAG Miller separately met with Mark Francis, the U.K. Financial Conduct Authority’s Director of Wholesale and Unauthorized Business Investigations. DAAG Miller also participated in a panel of enforcers and regulators at the Practising Law Institute’s 23rd Annual Institute on Securities Regulation in Europe, where she summarized the Justice Department’s approach to combating complex fraud and foreign corruption schemes, recent enforcement efforts, and emerging developments in corporate criminal enforcement policies. 

Global threats such as transnational fraud and money laundering require global responses. The visit helped further partnerships with foreign governments and technology and telecommunications sectors as well as strengthen existing law enforcement collaboration to combat, prevent, and protect the public from this shared threat. We look forward to continuing our efforts to investigate and prosecute individuals and corporations that commit cross-border crimes.

CPB leads the department’s Transnational Elder Fraud Strike Force, which investigates and prosecutes individuals and organizations engaged in foreign-based fraud schemes that disproportionately affect American seniors. The strike force was created in 2019 and expanded in 2022 by Attorney General Merrick B. Garland. The strike force is comprised of attorneys and analysts from CPB and 20 U.S. Attorney’s Offices. The FBI, U.S. Postal Inspection Service, and Homeland Security Investigations provide dedicated resources for identifying the most harmful elder fraud schemes and bringing perpetrators to justice. 

The department coordinates its response to transnational fraud schemes through its leadership of the Global Anti-fraud Enforcement Network (GAEN), which CPB co-chairs, an alliance of law enforcement from numerous countries around the world. GAEN members work together to identify the highest impact threats posed by international fraud schemes, evaluate strategies for disruption, and engage in law enforcement operations to dismantle illegal conduct. 

Reporting from consumers about fraud and fraud attempts is critical to law enforcement efforts to investigate and prosecute schemes targeting older adults. If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available through the National Elder Fraud Hotline: 1-833 FRAUD-11 (1-833-372-8311). This department’s hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting or connect them with agencies, and provide resources and referrals on a case-by-case basis. The hotline is staffed seven days a week from 10:00 a.m. to 6:00 p.m. ET. English, Spanish, and other languages are available. More information about the department’s elder justice efforts can be found on the Department’s Elder Justice website, www.elderjustice.gov. 

The Fraud Section’s Market Integrity Unit is a national leader in prosecuting fraud and market manipulation involving cryptocurrency. Since 2019, the unit has charged cryptocurrency fraud cases involving over $2 billion in intended financial losses to investors from around the world. Prosecutors use blockchain data analytics and traditional law enforcement techniques to identify and prosecute complex cryptocurrency investment schemes; price and market manipulation involving cryptocurrencies; unregistered cryptocurrency exchanges involved in fraud schemes; and insider trading schemes affecting cryptocurrency markets. Prosecutors in the Unit frequently work in parallel with the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission and with law enforcement authorities across the globe. For further information, visit www.justice.gov/criminal/criminal-fraud/crypto-enforcement.

DAAG Rao (back row) with Ministers of 10 countries and senior officials of INTERPOL, EUROPOL, and the UN Office on Drugs and Crime. 

The operator of several Key West, Florida, labor staffing companies – including PSEB Specialty Service Inc., Perfect Service Excellent Benefits Services Inc., Starline Hospitality Inc., Norbert Janitorial Service Inc., E.S.F. Services Inc. and Expert Services F.S. Inc. – was sentenced today to four years in prison for tax and immigration-related crimes.

According to court documents and statements made in court, at various times between January 2011 and January 2021, Petr Sutka and others helped run a series of labor staffing companies that facilitated the employment in hotels, bars and restaurants in Key West and elsewhere of non-resident aliens who were not authorized to work in the United States. These labor staffing companies did not withhold federal income taxes and Social Security and Medicare taxes from these workers’ wages and did not report the wages to the IRS.

In addition to his prison sentence, U.S. District Court Judge Jose E. Martinez for the Southern District of Florida ordered Sutka to serve three years of supervised release and to pay $3,551,423.84 in restitution to the United States.

Sutka’s co-conspirators, Vasil Khatiashvili and Zdenek Strnad, are scheduled to be sentenced on April 22.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida made the announcement.

Homeland Security Investigations and IRS Criminal Investigation investigated the case.

Senior Litigation Counsel Sean Beaty and Trial Attorneys Jessica A. Kraft, Nicholas J. Schilling Jr., Matthew C. Hicks and Wilson Rae Stamm of the Justice Department’s Tax Division and Senior Litigation Counsel Christopher J. Clark for the Southern District of Florida prosecuted the case.

The Justice Department and the Federal Trade Commission (FTC) will cohost the third annual Spring Enforcers Summit on Monday, April 8. 

Assistant Attorney General Jonathan Kanter of the Antitrust Division and FTC Chair Lina M. Khan, as well as senior staff from both agencies, will gather with international competition enforcers and state attorneys general to discuss enforcement priorities and strategies for effective coordination.

The morning plenary sessions will be livestreamed to the public on the FTC’s website. The agencies will meet in the afternoon for closed-door in-person discussions between international enforcers and state attorneys general on common issues.  

The Enforcers Summit agenda will be posted to the Antitrust Division’s website prior to the event. A link to view the summit’s open virtual session will be posted to the FTC’s website the day of the event.

The Justice Department announced today the results of its investigation into allegations that a former head coach of the Swimming and Diving Team at the University of Maryland, Baltimore County (UMBC) sexually harassed male student-athletes and discriminated against female student-athletes. The department notified UMBC that its failure to respond to known allegations of sex discrimination violated Title IX of the Education Amendments of 1972 (Title IX) and that UMBC’s failures allowed the former head coach to exploit his power over student-athletes, prey on student-athletes’ vulnerabilities and engage in egregious and ongoing abuse spanning many years.

“We will not tolerate sexual harassment and abuse of student-athletes on college campuses in our country. Too many school officials and administrators knew something for UMBC to have done nothing,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold our nation’s colleges and universities to their promise to educate students free from sexual harassment and discrimination — our young people deserve nothing less. We will continue to stand with the survivors of sexual harassment and ensure that schools take actions necessary to protect students from this kind of degrading and painful discrimination and abuse.”

Among other things, the department’s investigation found that, as early as 2015 and continuing through 2020, UMBC was on notice of and failed to respond adequately to allegations that the former head coach filmed students while showering and sexually touched male student-athletes on the pool deck, in the locker room and in the bathroom of the university’s aquatic center.

The department also found that, from 2016 through 2020, the Athletics Department failed to report several incidents of dating violence by male student-athletes against female teammates. Athletics staff and male swimming and diving teammates also made degrading comments about female student-athletes’ bodies and the head coach asked invasive questions about their sexual relationships.

Attorneys from the Justice Department's Civil Rights Division’s Educational Opportunities Section and an Assistant U.S. Attorney for the District of Maryland conducted the investigation, with UMBC’s full cooperation.

Individuals with information related to the department’s findings are encouraged to contact the Justice Department at Community.UMBC@usdoj.gov.

The enforcement of Title IX, which prohibits sex discrimination in education programs and activities operated by recipients of federal financial assistance, is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at www.civilrights.justice.gov/report/.

To commemorate National Public Defense Day, the Justice Department’s Office for Access to Justice (ATJ) announced the launch of the Public Defense Resource Hub (PD Hub), a one-stop shop with comprehensive resources and materials to support individuals and organizations involved in public defense. The PD Hub will collect existing resources for professionals providing public defense services, public defense commissions, and related organizations from across the federal government and develop additional tools to help defenders access necessary resources, research, and guidance to support the constitutional right to counsel. 

“Every day, in courts across America, the promise of the Sixth Amendment is made real through the dedication and commitment of public defenders,” said Attorney General Merrick B. Garland. “The Justice Department is proud to stand with the public defenders and criminal defense attorneys who work to carry out the foundational principle, reaffirmed 61 years ago today in Gideon v. Wainwright, that the law protects all of us – the poor as well as the rich, the powerless as well as the powerful.” 

“Last year, I was proud to join the Office for Access to Justice in Florida to announce the Justice Department’s National Public Defense Day Tour,” said Deputy Attorney General Lisa Monaco. “This year, by launching the new Public Defense Resource Hub, we take another important step to support the critical work of public defenders nationwide.”

“The Justice Department is committed to supporting modern public defense systems that address the urgent criminal and civil legal needs in communities across the country,” said Acting Associate Attorney General Benjamin C. Mizer. “On National Public Defense Day, we renew this commitment by establishing a Public Defense Resource Hub that will simplify access to federal government resources to strengthen public defense.”

The Public Defense Resource Hub offers numerous benefits and introduces a novel approach to supporting public defense from the Department:

1. Centralized Access: By consolidating all funding information, toolkits, research, advocacy resources, and other relevant materials, the PD Hub provides a one-stop destination for resources to support individuals and organizations involved in public defense.
2. Efficiency: Users can explore a wide range of resources without needing to navigate multiple websites or sources, saving time and effort in finding pertinent information.
3. Increased Resources: The PD Hub will encourage increased resources to support public defense and will empower public defenders with tools to strengthen advocacy efforts, thereby improving the quality of multidisciplinary public defense
4. Transparency: Hosting funding information on the PD Hub promotes transparency in resource allocation for public defense, ensuring that criminal justice stakeholders are aware of available funding opportunities and committed to support equitable distribution.
5. Collaboration and Innovation: The PD Hub will foster collaboration and innovation among public defenders, policymakers, researchers, and impacted communities.

“Providing public defenders with the tools, resources, and support they need to fulfill their critical mission makes our justice system fairer, more equal, and more just,” said ATJ Director Rachel Rossi. “The Public Defense Resource Hub is an innovative first-of-its kind resource to assist public defenders, state, local, and Tribal policymakers, and related professionals to provide the highest quality multidisciplinary legal representation to historically underserved and marginalized communities.”

The Public Defense Resource Hub was developed in response to feedback and engagement during the  National Public Defense Day Tour and National Law School Tour in commemoration of the 60th anniversary of Gideon v. Wainwright last year, and direct engagements with public defenders, defender commissions, Tribal defenders, and law schools across the country. These included visits with public defense leaders, law students, impacted communities and other justice system stakeholders in Miami, Florida; Tulsa, Oklahoma; the Muscogee (Creek) Nation; Las Vegas; Nashville, Tennessee; Des Moines, Iowa; Concord, New Hampshire; Portland, Maine; Missoula, Montana; Seattle, Washington; and Dallas.

On March 21, the office will conclude its National Law School Tour with a final stop at Atlanta’s John Marshall Law School, where Director Rossi will announce the launch of the Public Defense Resource Hub and speak to law students about the nation’s critical need for public defenders and the future of public defense. 

A Florida man was sentenced today to 30 months in prison for failing to pay over taxes that he withheld from his employees’ paychecks.

According to court documents and evidence presented in court, Timothy Meade, of Fort Myers, Florida, operated a prison phone call service under several business names. From 2011 through 2021, he withheld taxes from his employees’ paychecks but did not pay over to the IRS the full amount of the taxes he withheld. He also did not pay the business’ portion of his employees’ Social Security and Medicare taxes. The IRS attempted to collect the taxes, but Meade changed the call service’s names and bank accounts to thwart the IRS’ collection efforts.

In total, Meade caused a tax loss of $971,130 to the IRS.

In addition to the prison sentence, U.S. District Court Judge Sheri Polster Chappell for the Middle District of Florida ordered Meade to serve three years of supervised release and to pay $971,130 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Roger B. Handberg for the Middle District of Florida and Acting Special Agent in Charge Lani Rosado-Espinal of IRS Criminal Investigation’s Tampa Field Office made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Brian Flanagan and Curtis Weidler of the Justice Department’s Tax Division and Assistant U.S. Attorney Yolande Viacava for the Middle District of Florida are prosecuting the case.

Today, U.S. District Judge John D. Russell sentenced Caleb Lee Giles, 24, of Afton to 210 months imprisonment for Sexual Abuse of a Minor in Indian Country and Coercion and Enticement of a Minor. Upon his release, Giles will be supervised for life and will also be required to register as a sex offender.

According to court documents, in September 2020, Giles began communicating and aggressively pursuing a romantic relationship with the 13-year-old victim. Giles requested the victim to send him nude photos through a social media application. They began having a sexual relationship in May 2021 when Giles knew the victim was only 14 years old. Giles then started to communicate with a second victim who was only 12 years old. He began requesting nude photos. After bringing alcohol to the 12-year-old, he sexually abused her as well.

Previously released on bond, Giles was taken into custody following his guilty plea in February 2023. Following the sentencing today, Giles will be transferred to a U.S. Bureau of Prisons facility. Giles is a citizen of the Cherokee Nation.

The FBI investigated the case. Assistant U.S. Attorneys Nathan E. Michel and Valeria Luster prosecuted the case.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit Justice.gov/PSC.

A Virginia man pleaded guilty today to failing to pay over to the IRS the taxes withheld from his employees’ paychecks. 

According to court documents and statements made in court, Rick Tariq Rahim owned and operated several businesses, including laser tag facilities and an Amazon reseller. From 2015 to 2021, Rahim did not pay to the IRS the taxes withheld from his employees’ paychecks or file the required quarterly employment tax returns reporting those withholdings.

Additionally, between October 2010 and October 2012, Rahim filed two personal income tax returns on which he reported owing substantial taxes but did not pay the taxes he reported were due. When the IRS attempted to collect the unpaid taxes, Rahim submitted a false Form 433-A, Collection Information Statement, which omitted valuable assets he owned, including a helicopter, 2006 Bentley, 2008 Lamborghini and real property in Great Falls, Virginia. Approximately two weeks later, Rahim transferred ownership of that Great Falls property to his wife. He also paid personal expenses from his business bank accounts, including more than $889,000 toward his mortgages and more than $669,000 to purchase or lease cars, including three different Lamborghinis. In addition, Rahim withdrew more than $1.1 million in cash in amounts less than $10,000 to avoid triggering currency transaction reports from the bank.

Rahim has not filed a personal income tax return since 2012 despite earning more than $34 million in gross income.

In total, Rahim has caused a loss to the IRS of at least $1,844,489. His sentencing is scheduled for June 25.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jessica D. Aber for the Eastern District of Virginia made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys William Montague and Ashley Stein of the Justice Department’s Tax Division and Assistant U.S. Attorney Kimberly Shartar for the Eastern District of Virginia are prosecuting the case.

A Mississippi man was sentenced today to 70 months in prison for conspiring to prepare and file false tax returns for clients in Jackson, Mississippi, and for preparing false returns.

According to court documents and evidence presented in court, Christopher Randell worked at Sunbelt Tax Services and conspired with others to claim inflated tax refunds for clients by reporting false education credits, itemized deductions and business profits or losses on their clients’ tax returns. Over the years, Randell and his co-conspirators prepared thousands of fraudulent returns, causing over $3.5 million in tax loss to the IRS. A jury convicted Randell and his co-conspirators in November 2023.

In addition to his prison sentence, U.S. District Court Judge Daniel P. Jordan III for the Southern District of Mississippi ordered Randell to serve three years of supervised release, and to pay restitution to the United States, in an amount to be determined later by the Court.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Patrick Elwell, Zachary Cobb and Mary Frances Richardson of the Tax Division prosecuted the case.

The Justice Department’s U.S. Trustee Program (USTP) recently prevented the payment of bonuses to an executive of three small businesses that had stopped operating and already had sold their assets in bankruptcy.

Aviation Safety Resources and its two debtor affiliates, which filed for bankruptcy under subchapter V of chapter 11, argued that $30,000 in bonuses were designed to incentivize the companies’ president to avoid leaving for other employment and to facilitate a sale of the debtors’ assets. The U.S. Trustee’s Orlando office objected to the bonuses as a “key employee retention plan,” commonly known as a KERP, which is impermissible under the Bankruptcy Code for insiders unless the proponent can satisfy stringent standards. Among other things, the USTP argued that the bonuses were not incentivizing because they were not tied to any performance-based metrics and that the debtors had already closed on the sale of nearly all their assets three days before filing a motion to approve the bonuses.

On February 2, after a half-day trial, the Bankruptcy Court for the Middle District of Florida sustained the U.S. Trustee’s objection and denied the debtors’ KERP motion.

“The USTP scrutinizes executive bonus plans regardless of their label,” said Director Tara Twomey of the Executive Office for U.S. Trustees. “To ensure the faithful application of the Code, we will continue to hold the proponents of these plans to their proof.”

The Code restricts payments intended to induce corporate officers and other insiders to remain with the debtor through the bankruptcy. The proponent of those retention payments must prove that they are necessary because the insider has a bona fide job offer at the same or greater compensation, that the insider’s services are essential to the business’s survival and that the payments are within certain statutory limits. Many debtors improperly seek to characterize insider payments as incentive payments rather than retention payments to avoid this high standard.

The USTP’s mission is to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders – debtors, creditors and the public. The USTP consists of 21 regions with 89 field offices nationwide and an Executive Office in Washington, D.C. Learn more about the program at www.justice.gov/ust.

A leader of the Lorenzana drug trafficking organization was sentenced last week to 33 years in prison and ordered to forfeit $27 million for charges related to international drug trafficking.

According to court documents, beginning in or about 2008 and continuing to at least 2019, Marta Julia Lorenzana-Cordon, 47, from Zacapa, Guatemala, was a leader of the Lorenzana drug trafficking organization, one of the largest and most influential drug cartels in Guatemala, which was comprised primarily of family members. The organization transports tonnage quantities of cocaine from Colombia into Guatemala, where the cocaine is inventoried and stored on properties owned by the organization throughout Guatemala. Once processed, the organization works with the Sinaloa Cartel, among other organizations, to traffic cocaine into Mexico, through Central America, and eventually, into the United States.

Lorenzana-Cordon was extradited in December 2021 to the United States from Guatemala. She pleaded guilty on May 2, 2023, to conspiring to distribute five kilograms or more of cocaine, knowing and intending that it would be unlawfully imported to the United States.  

Between 1996 continuing through 2019, the organization coordinated the transportation, storage, and distribution of multi-ton quantities of cocaine from Colombia to Central America and Mexico, for eventual distribution into the United States. Lorenzana-Cordon’s siblings, Eliu Elixander Lorenzana-Cordon, 53, and Waldemar Lorenzana-Cordon, 59, were convicted in March 2019 on international narcotics trafficking charges in the District of Columbia and sentenced to life in prison. Lorenzana-Cordon’s father, Waldemar Lorenzana-Lima Sr., who has since passed away, pleaded guilty in August 2014 to international narcotics trafficking charges in the District of Columbia and was sentenced to 23 years in prison.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division and Administrator Anne Milgram of the Drug Enforcement Administration (DEA) made the announcement.

This investigation is part of “Operation Slipknot,” which is supported by the Organized Crime Drug Enforcement Task Forces (OCDETF). The DEA’s 959/Bilateral Investigations Unit is investigating the case, with assistance from the DEA Guatemala City Country Office. The Justice Department thanks the Department of the Treasury’s Office of Foreign Assets Control for their support and contributions to the case.

The Justice Department’s Office of International Affairs provided significant assistance in securing the arrest and extradition of the defendants. The department appreciates the assistance provided by the government of Guatemala.

Trial Attorneys Imani Hutty and Douglas Meisel of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted the case.

The Justice Department’s Antitrust Division and Federal Trade Commission (FTC) have submitted a comment to the U.S. Copyright Office to advocate for regulations that would facilitate consumers’ and businesses’ right to repair their own products.

The Justice Department and FTC submitted the comment as the Copyright Office considers whether to recommend that the Librarian of Congress renew and expand temporary exemptions to the Digital Millennium Copyright Act’s (DMCA) prohibition against the circumvention of technology protection measures that control access to copyrighted content.

In their comment, the Justice Department and FTC said that renewing and expanding repair-related exemptions would promote competition in markets for replacement parts, repair and maintenance services, as well as facilitate competition in markets for repairable products. Promoting competition in repair markets benefits consumers and businesses by making it easier and cheaper to fix things they own. Expanding repair exemptions can also remove barriers that limit the ability of independent service providers — including small businesses and entrepreneurs — to provide repair services.

Manufacturers use technology protection measures to protect copyrighted works from theft and infringing uses, but these software locks can also be used to prevent non-infringing third-party repair, according to the Justice Department and FTC comment. For example, such measures can restrict access to computer maintenance hardware and software programs, leaving only original equipment manufacturers able to do maintenance and repair work. In their comment, the Justice Department and FTC say that by limiting access to the data and software needed for independent repair and maintenance, these technology protection measures can be used to squash competition for replacement parts, repair and maintenance, which ultimately limits consumers’ and businesses’ choices and raises costs. 

The Justice Department has actively opposed repair restrictions that limit the ability of consumers and businesses to repair their own products. In a recently filed statement of interest in In re Deere & Co. Repair Services Litigation, 3:22-cv-50188 (N.D. Ill., 2023), the Antitrust Division stated clearly that “federal antitrust laws have long protected competition in aftermarkets,” such as markets for replacement parts and repair services by independent dealers.[1] The division has also brought cases to protect competition in markets for repair services or component parts, engaged in competition advocacy and provided technical assistance to Congress on proposed legislation that would promote the right to repair.

In their joint comment, the Justice Department and FTC expressed support for renewing, expanding and adding some specific DMCA exemptions. The agencies support renewing the current exemption related to computer programs that control devices designed primarily for use by consumers for diagnosis, maintenance or repair of the device and expanding it to include commercial and industrial equipment. In addition, they also support renewing an exemption related to the repair of motor vehicles and granting a new exemption to allow vehicle owners or independent repair shops to access, store and share vehicle operational data.

[1] Statement of Interest of the United States at 8, In re: Deere & Company Repair Services Antitrust Litigation, No. 3:22-cv-5018 (N.D.Ill. 2023).  The district court recently denied the defendant’s motion for judgment on the pleadings, in part, citing the Division’s statement.  The court’s reasoning acknowledged that the defendant plausibly has market power in the equipment market, and the difficulty of lifecycle pricing can support a repair aftermarket for purposes of determining harm to competition. Memorandum Opinion and Order at 39-49, In re: Deere & Company Repair Services Antitrust Litigation, No. 3:22-cv-5018 (N.D.Ill. 2023).

The U.S. District Court for the Northern District of Texas permanently enjoined a Dallas-area tax return preparer today from preparing federal tax returns for others and from owning, operating or franchising any tax return preparation business, among other related prohibitions. The court also ordered the tax return preparer, Ashley Diondria Fisher, to pay almost $200,000 to the United States in ill-gotten tax preparation fees. Fisher consented to entry of the permanent injunction and disgorgement order against her.

The complaint alleged that Fisher operated a tax preparation business under the brand names Integrity Tax Services and Integrity Tax Returns, which filed tax returns claiming false business income or losses on Form 1040 Schedule C, false household help income and fabricated education credits. The complaint also alleged that the IRS previously suspended nine of Fisher’s Electronic Filing Identification Numbers (EFINs), which the IRS assigns to firms that have applied for and meet the requirements to file tax returns electronically. After the IRS suspended nine of Fisher’s EFINs, she allegedly used her aunt’s identity to apply for and use EFINs in her aunt’s name, and subsequently used EFINs in the names of others.

According to the IRS, anyone who is paid to prepare or assists in preparing federal tax returns is legally required to have a valid Preparer Tax Identification Number (PTIN) and paid preparers must sign and include their PTIN on returns. Not signing a return, commonly known as “ghost preparation,” is often a red flag that a preparer is attempting to avoid detection by the IRS. The complaint alleged Fisher operated as a ghost preparer.

The IRS estimates the harm caused by Fisher exceeds $3 million for tax years 2014 through 2019 alone.

The district court previously entered a preliminary injunction barring Fisher from preparing returns for others and has now made that disallowance permanent in today’s order. The terms of agreed order require that Fisher send notice of the injunction to each customer for whom she prepared federal tax returns and post a copy of the injunction in places where she conducts business, including social media accounts and websites. Fisher also agreed to disgorge $195,468.59 in illicitly received tax preparation fees to the United States.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Attorneys from the Tax Division handled the case.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid ghost preparers and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

A New York woman was sentenced today to 33 months in prison for filing false tax returns and obstructing the IRS.

According to court documents and evidence presented at trial, Ehrenfriede Kauapirura, a hospital dietician, sought to obtain tax refunds to which she was not entitled. As part of that scheme, Kauapirura filed a false amended 2015 tax return and a false 2016 tax return. On both returns, Kauapirura reported hundreds of thousands of dollars in fictitious tax withholdings that she used to claim refunds of approximately $250,000 for each year, which the IRS paid her.

After determining that Kauapirura’s claims were fraudulent, the IRS attempted to recoup the money. To thwart the IRS’ collection efforts, Kauapirura transferred funds from her personal bank account to a bank account in the name of a purported trust that she controlled. Kauapirura also submitted to the IRS a $1 million check drawn on a non-existent bank as payment of her tax obligations. In addition, despite earning substantial income from her job at the hospital, Kauapirura did not file individual tax returns for tax years 2017 through 2020.

In addition to her prison sentence, U.S. District Judge Diane Gujarati for the Eastern District of New York ordered Kauapirura to serve one year of supervised release and to pay $301,462.41 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Kenneth C. Vert and Michael C. Vasiliadis of the Tax Division prosecuted the case.

The Justice Department filed a civil injunction suit in the U.S. District Court for the Southern District of Texas seeking to permanently bar a Houston-based return preparer from owning or operating a tax return preparation business and preparing tax returns for others.

The complaint alleges that Morshanda Lewis – operating through her business, Taxes R Us – regularly prepared and filed federal income tax returns for her customers on which she knowingly underreported the tax her customers owed, often generating larger refunds than her customers should have obtained. The complaint offers several examples of how, from 2020 to 2023, Lewis prepared hundreds of returns for tax years 2019 through 2022 that claimed residential energy credits or education credits to which she knew or should have known her customers were not entitled. The United States contends Lewis continued to prepare tax returns that claimed false credits despite several warnings from the IRS as early as November 2013 that many of the returns she prepared contained apparent errors. 

According to the complaint, Lewis’ false residential energy credit and false education credit schemes for tax years 2019 to 2021, alone, caused significant loss in tax revenue, estimated to exceed $1 million.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers 10 tips to avoid tax season fraud and ways to safeguard their personal information.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

The United States filed a complaint alleging that six health plans participating in the Uniformed Services Family Health Plan (USFHP) program, as well as their trade group, the US Family Health Plan Alliance, violated the False Claims Act by knowingly retaining erroneously inflated payments for healthcare services the health plans contracted to provide to retired military members and their families. The United States has also reached a settlement with Department of Defense (DOD) contractor Kennell & Associates Inc., a consulting firm, related to the conduct.

The USFHP program is one of the healthcare options available to military personnel, retirees and their families. Six health plans are eligible to participate in this program, each of which is a defendant in the government’s complaint: Brighton Marine Health Center, CHRISTUS Health Services, Johns Hopkins Medical Services Corporation, Martin’s Point Health Care, Pacific Medical Center and St. Vincent’s Catholic Medical Centers of New York.

Through the USFHP program, the DOD pays the plans capitated rates to provide healthcare services to their enrollees. According to the complaint, in June 2012, the plans learned of calculation errors that had inflated the rates they had been paid in prior years. Nevertheless, the plans took steps to conceal the existence of the overpayments from the government and continued to submit invoices at the inflated payment rates. The complaint alleges that during discussions about rates for the subsequent year, some of the plans even asked the government to continue paying them at the prior, inflated rates even though, by that time, those plans knew the rates were inflated by the errors.

“Contractors have an obligation to return overpayments, and we will hold accountable contractors that knowingly and improperly retain such funds,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We are committed to ensuring that taxpayer funds for healthcare services to military members and their families are actually used for that purpose, not to enrich those charged with administering the program.”

“Protecting the integrity of the healthcare system for our military members and their families, is a top priority of the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” said Acting Special Agent in Charge Brian J. Solecki of the DCIS Northeast Field Office. “The DOD expects companies to adhere to contract requirements and DCIS will continue to work with our law enforcement partners and the Justice Department to hold DOD contractors who engage in fraudulent activity at the expense of the U.S. military accountable for their actions.”

The United States filed its complaint in a lawsuit originally brought under the qui tam or whistleblower provisions of the False Claims Act by Jane Rollinson and Daniel Gregorie in the District of Maine. From 2007 to 2015, Rollinson worked at Martin’s Point Health Care, including as its Interim Chief Financial Officer. Gregorie was a consultant to the CEO and Board of Martin’s Point Health Care and later served on its Board of Trustees. The False Claims Act permits a private party to file an action on behalf of the United States and receive a portion of any recovery. The United States has the ability to intervene in such lawsuits, as it has in this case. The qui tam case is captioned United States ex rel. Rollinson v. Martin’s Point Health Care Inc., No. 2:16-cv-00447-NT.

The United States entered into a settlement agreement with Kennell and Associates Inc., a research and consulting firm located in Falls Church, Virginia, that provides actuarial consulting services to the Defense Health Agency (DHA) in connection with the USFHP program. The settlement resolves allegations that Kennell & Associates failed to notify DHA about errors in executing the rate-setting methodology that caused the USFHP rates to be overstated and their impact on DHA’s payments made to the plans. Under the terms of the settlement agreement, Kennell & Associates has agreed to pay the United States $779,951, plus interest, as well as contingent payments based on its annual contract revenue and cash reserves through the year 2025. The settlement amount is based on Kennell and Associates’ ability to pay.

The Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the District of Maine investigated the case, with assistance from DHA.

Attorneys Diana Cieslak, Evan Ballan and Amy Kossak of the Civil Division’s Fraud Section and Assistant U.S. Attorneys Andrew Lizotte and Sheila Sawyer for the District of Maine are handling this case.

The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).

The claims in the complaint and settlement agreement are allegations only. There has been no determination of liability.

A U.S. citizen who served as U.S. Army hotel manager in South Korea pleaded guilty yesterday to a conspiracy involving the theft of government property and influencing the award of hotel contracts in exchange for bribes from a South Korean company.  

According to court documents, Bon Ku, 52, was employed by the Dragon Hill Lodge (DHL), which is owned by a U.S. Army base in Seoul, South Korea. DHL is one of five resorts operated by the Department of Defense under the Armed Forces Recreation Centers program. Between 2014 and 2020, Ku conspired with Donald Gower, a U.S. citizen who was also a manager at DHL, to engage in two schemes to convert payments for DHL’s recyclable goods to their own use. To carry out these schemes, Ku directed DHL employees to engage in tasks outside the scope of their normal employment duties, resulting in the United States paying them to perform tasks that benefited Ku and Gower.

Between 2014 and 2021, Ku was also involved in four additional schemes in which he influenced the award of contracts valued at over $9 million in exchange for bribes from four South Korean companies, one of which was part of the conspiracy to which Ku pleaded guilty. As part of the bribe scheme to which Ku pleaded guilty, DHL awarded a contract to a South Korean company to, among other things, clean its loading dock. Prior to awarding this contract, Ku had an agreement with the company under which he would receive approximately 10-20% of the value of the contracts that were awarded by DHL. After entering into this agreement, Ku made a positive recommendation to DHL officials regarding the company’s ability to perform on the contract to influence its award to the company. Ku received payments related to this agreement from the company in his South Korean bank account, after which Ku split the payments with Gower. 

Ku pleaded guilty to a dual-object conspiracy to commit theft of government property and bribery of a public official. He is scheduled to be sentenced on June 18 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. As part of a global resolution, the government will move to dismiss an indictment in the U.S. District Court for the District of Columbia in which Ku is charged with conduct related to one of the additional schemes.

On Sept. 15, 2022, Gower pleaded guilty to conspiracy to commit theft of government property. He is scheduled to be sentenced on Aug. 8 and faces a maximum penalty of five years in prison.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division; Acting Assistant Director in Charge Amir Ehsaei of the FBI Los Angeles Field Office; and Special Agent in Charge Keith K. Kelly of the Department of the Army Criminal Investigation Division’s (Army-CID) Fraud Field Office made the announcement.

The FBI and Army-CID are investigating the case.

Trial Attorneys Matt Kahn and Brandon Burkart of the Criminal Division’s Fraud Section are prosecuting the case.

Last week, Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, Deputy Director Paul Abbate of the FBI and Component Head Justin Lock of the Community Relations Service (CRS) hosted two webinars with community stakeholders from Jewish, Muslim, Arab and Palestinian communities. The webinars build on the department’s vigorous efforts to combat rising violence and threats of violence based on their religion, race, color, ethnicity or national origin.

“No person and no community in this country should have to live in fear of hate-fueled violence or discrimination,” said Assistant Attorney General Clarke. “With an increase in volume and frequency of threats since Oct. 7th, the Justice Department reaffirms our commitment to using every tool available to address discrimination and violence targeting vulnerable communities.”

The Justice Department officials provided updates on their efforts to bolster community safety and to prevent, disrupt, and prosecute illegal acts motivated by hate-fueled violence and discrimination. During the webinars, they directed stakeholders to critical safety resources, and listened to stakeholders express their concerns about the rise in threats. Officials also highlighted the Department’s United Against Hate community education and engagement program, which has hosted more than 300 events around the country attracting more than 10,000 participants.

“We are tremendously grateful for the relationships we have with our community partners, and appreciate the opportunity for continued engagement,” said FBI Deputy Director Abbate. “We hear you, we share your concerns, and we will continue to work relentlessly, 24/7, to protect and keep members of your communities safe.”

Deputy Director Abbate discussed the regular, ongoing engagement the FBI has with Jewish, Muslim, Arab and Palestinian community organizations and leaders across the country. The FBI works diligently to maintain two-way communication with community organizations at headquarters and in each of the 56 field offices. He addressed the current threat environment, describing an upward trend in reported hate crimes and an increase in violence and threats of violence towards the communities. Deputy Director Abbate assured call participants that the FBI continues work, with urgency, along with state and local partners to mitigate threats and prevent harm to our communities.

“The CRS recognizes that safety for communities is inclusive of both physical safety as well as a sense of belonging within community,” said Component Head Lock. “To this end, the CRS is committed to opening and sustaining channels of communication, forums for dialogue and better understanding as a means of returning agency, dignity and power back to all American communities.”

Component Head Lock shared CRS’s ongoing work with community leaders, law enforcement and civil society to prevent and respond to hate crimes and facilitate training and mediation services. This work includes CRS’ Places of Worship Forum, which provides faith-based leaders and congregations information about religious-bias hate crimes and brings together federal, state and local law enforcement to address safety and security issues.

Assistant Attorney General Clarke also announced the release of a number of fact sheets and resource documents that are designed to give the public a better understanding of federal civil rights laws, including laws that prohibit violence and discrimination on the basis of religion, national origin as well as protections in places of public accommodation and in local land use decisions. Preventing and prosecuting hate crimes is a top priority for the Justice Department, and you can find a recently updated Hate Crimes Fact Sheet here.

If you believe that you or someone else experienced religious or national origin discrimination, you can report a civil rights violation online at civilrights.justice.gov.  If you believe you are a victim or a witness of a hate crime, report it to the FBI by calling 1-800-CALL-FBI or submit a tip at tips.fbi.gov. You can learn more about the department’s work on hate crimes here.

A Montana man pleaded guilty today to two felony wildlife crimes – a conspiracy to violate the Lacey Act and substantively violating the Lacey Act – as part of an almost decade-long effort to create giant sheep hybrids in the United States with an aim to sell the species to captive hunting facilities.

Arthur “Jack” Schubarth, 80, of Vaughn, Montana, is the owner and operator of Sun River Enterprises LLC – also known as Schubarth Ranch – which is a 215-acre alternative livestock ranch in Vaughn. The Schubarth Ranch is engaged in the purchase, sale and breeding of “alternative livestock” such as mountain sheep, mountain goats and various ungulates. The primary market for Schubarth’s livestock is captive hunting operations, also known as shooting preserves or game ranches.

According to court documents, Schubarth conspired with at least five other individuals between 2013 and 2021 to create a larger hybrid species of sheep that would garner higher prices from shooting preserves. Schubarth brought parts of the largest sheep in the world, Marco Polo argali sheep (Ovis ammon polii), from Kyrgyzstan into the United States without declaring the importation. Average males can weigh more than 300 pounds with horns that span more than five feet. Marco Polo argali are native to the high elevations of the Pamir region of Central Asia. They are protected internationally by the Convention on International Trade in Endangered Species, domestically by the U.S. Endangered Species Act and are prohibited in the State of Montana to protect native sheep from disease and hybridization.

Schubarth sent genetic material from the argali parts to a lab to create cloned embryos. Schubarth then implanted the embryos in ewes on his ranch, resulting in a single, pure genetic male Marco Polo argali that he named “Montana Mountain King” or MMK.

Court documents explain that Schubarth worked with the other unnamed coconspirators to use MMK’s semen to artificially impregnate various other species of ewes – all of which were prohibited in Montana – and create hybrid animals. Their goal was to create a larger and more valuable species of sheep to sell to captive hunting facilities, primarily in Texas.

To move the prohibited sheep into and out of Montana, Schubarth and others forged veterinary inspection certificates, falsely claiming that the sheep were legally permitted species. On occasion, Schubarth sold MMK semen directly to sheep breeders in other states.

Court documents also describe how Schubarth illegally obtained genetic material from wild-hunted Rocky Mountain bighorn sheep in Montana. Schubarth purchased parts of these wild-hunted sheep in violation of Montana law, which prohibits the sale of game animal parts within the state and prohibits the use of Montana game animals on alternative livestock ranches. Schubarth transported and sold the bighorn parts in interstate commerce.

“This was an audacious scheme to create massive hybrid sheep species to be sold and hunted as trophies,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “In pursuit of this scheme, Schubarth violated international law and the Lacey Act, both of which protect the viability and health of native populations of animals.”

“The kind of crime we uncovered here could threaten the integrity of our wildlife species in Montana,” said Ron Howell, Chief of Enforcement for Montana Fish, Wildlife & Parks (FWP). “This was a complex case and the partnership between us and U.S Fish and Wildlife Service was critical in solving it.”

The Lacey Act prohibits interstate trade in wildlife that has been taken, possessed, transported or sold in violation of federal or state law. The Lacey Act also prohibits the interstate sale of wildlife that has been falsely labeled. The Act is one of the most powerful tools the United States has to combat wildlife trafficking and prevent ecological invasion by injurious wildlife.

For each felony count, Schubarth faces a maximum penalty of five years in prison, a fine of up to $250,000 and three years of supervised release. Schubarth is scheduled to be sentenced on July 11 by Chief U.S. District Court Judge Brian M. Morris for the District of Montana.

The U.S. Fish and Wildlife Service and Montana FWP are investigating the case.

Trial Attorney Sarah M. Brown and Senior Trial Attorney Patrick M. Duggan of ENRD’s Environmental Crimes Section and Assistant U.S. Attorney Jeffrey Starnes for the District of Montana are prosecuting the case.

The Justice Department filed a complaint today seeking to bar a central Florida-area return preparer from owning or operating a tax return preparation business and preparing tax returns for others.

The civil complaint against Kenia Rodriguez, also known as Kenia Legon, was filed in the U.S. District Court for the Middle District of Florida. The complaint alleges that Rodriguez, through a fictitious entity called Rodriguez Tax Services, prepared federal income tax returns on which she claimed extensive fraudulent deductions and credits to purposely underreport the taxes her customers owed and claimed refunds they were not entitled to receive. Specifically, the complaint alleges that Rodriguez prepared returns with false or inflated itemized deductions claimed on Form 1040 Schedule A and false claims for residential clean energy credits. The United States contends that Rodriguez hid her tax preparation activity by failing to properly identify herself on the tax returns that she prepared.

According to the IRS, anyone who is paid to prepare or who assists in preparing federal tax returns is legally required to have a valid Preparer Tax Identification Number (PTIN), and paid preparers must sign and include their PTIN on the return. Not signing a return, commonly known as “ghost preparation,” is often a red flag that a preparer is attempting to avoid detection by the IRS. The complaint alleges that Rodriguez operated as a “ghost preparer.”

By repeatedly understating her customers’ tax liabilities, the complaint alleges that the United States has been harmed by Rodriguez’s conduct, resulting in the significant loss in tax revenue of over $6 million since 2021. In addition to seeking an injunction against Rodriguez, the government requests an order of disgorgement to prevent Rodriguez from profiting from violating the internal revenue laws.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Attorneys from the Tax Division are handling the case.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid "ghost preparers" and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

The Justice Department today announced its finding that the Utah Department of Corrections (UDOC) violated the Americans with Disabilities Act (ADA) by discriminating against an incarcerated transgender woman on the basis of her disability, gender dysphoria. The department’s investigation found that UDOC failed to provide the complainant (who identifies as female but was assigned male at birth) equal access to health care services after she repeatedly requested hormone therapy. UDOC also failed to make reasonable modifications to its policies and practices to treat the complainant’s gender dysphoria.

Gender dysphoria is a serious medical condition marked by clinically significant distress caused by an incongruence between the sex an individual is assigned at birth and their gender identity. Left untreated, individuals with gender dysphoria can experience serious adverse mental health outcomes. 

“All people with disabilities including those who are incarcerated are protected by the ADA and are entitled to reasonable modifications and equal access to medical care, and that basic right extends to those with gender dysphoria,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to ensuring that jails and prisons throughout the country do not discriminate against people with disabilities, and that right includes people with gender dysphoria.”

The department’s investigation found that UDOC imposed unnecessary barriers to treatment for gender dysphoria that were not required for other health conditions, and unnecessarily delayed the complainant’s treatment. When UDOC finally provided her with hormone therapy, it failed to take basic steps to ensure that the treatment was provided safely and effectively.

UDOC also failed to grant the complainant’s requests for reasonable modifications including permitting her to purchase female clothing and personal items in the commissary, modifying pat search policies and individually assessing her housing requests to avoid discrimination on the basis of gender dysphoria. As a result, her gender dysphoria worsened during her incarceration at UDOC. Twenty-two months after entering custody, she performed dangerous self-surgery and removed her own testicles.

The department’s written notice to UDOC of its findings details remedial measures necessary to address them. The department’s investigation is part of its broader efforts to combat discrimination against individuals with gender dysphoria. These include the Civil Rights Division’s recently filed statement of interest clarifying that gender dysphoria can be a covered disability under the ADA and explaining that correctional institutions violate the Eighth Amendment when they categorically refuse to provide medically necessary gender-affirming care to incarcerated individuals with gender dysphoria.

The Civil Rights Division’s Disability Rights Section is handling this matter in collaboration with the U.S. Attorney’s Office for the District of Utah.

For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TTY 1-833-610-1264) or visit www.ada.gov. 

Today the Elliott Bay Trustees announced a settlement with General Recycling of Washington LLC (General Recycling) and its affiliates – Nucor Steel Seattle Inc. and the David J. Joseph Company – related to natural resource injuries caused by hazardous contaminants released into Seattle’s Lower Duwamish River.

The Elliott Bay Trustees include the United States, on behalf of the National Oceanic and Atmospheric Administration (NOAA); the Department of the Interior represented by the U.S. Fish & Wildlife Service; the State of Washington, on behalf of the Department of Ecology and Department of Fish and Wildlife; the Muckleshoot Indian Tribe; and the Suquamish Indian Tribe of the Port Madison Reservation.

As part of the settlement, the companies will construct and maintain a habitat restoration project at the General Recycling facility, located on the west bank of the Lower Duwamish River. It will provide nearly three acres of off-channel habitat for fish and other wildlife and natural resources injured by contamination. This habitat will provide refuge areas and food sources for wildlife and various fish species, including juvenile salmon migrating from upriver spawning areas.

The settlement also requires the companies to reimburse a proportion of costs incurred by the Trustees to assess natural resource damages in the river totaling more than $360,000.

The settlement and project resolve claims alleged under federal and state laws for natural resource damages stemming from releases of oil and hazardous substances from the General Recycling facility.

“This settlement will provide critically needed habitat in the Lower Duwamish River that will provide significant benefits to important natural resources in the region,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.    

“NOAA is pleased to join this agreement with our co-trustees, private partners and industry to help restore vital habitats, fisheries and wildlife injured by pollution at this site,” said Assistant Administrator Nicole LeBoeuf for NOAA’s National Ocean Service. “Clean and productive waterways are vital to Tribal and local communities for their cultural and economic well-being and this restoration will especially benefit those who have been disproportionately impacted by pollution.”

“This agreement marks an important step towards restoration of salmon habitat in the Duwamish River, which is essential for the recovery of salmon species and for the exercise of the treaty fishing rights of the Suquamish people as guaranteed by the 1855 Treaty of Point Elliott,” said Chairman Leonard Forsman of the Suquamish Tribe. “The Salish Sea, and the marine life that depend on it, are precious resources to the Suquamish people. We look forward to continued progress in reversing the damage done by years of pollution and destructive land use. With this settlement, and more that are on the way, we are beginning to see what restoration of habitat looks like, and that means strengthening our treaty fishery and our way of life.”  

 “This project on the Duwamish River will restore habitat for fish, wildlife and birds in a crucial estuarine environment,” said Washington State Supervisor Brad Thompson of the U.S. Fish & Wildlife Service. “It exemplifies what can be accomplished when partners come together to develop a common vision and then work side by side to realize that vision.”

“Ecology is pleased General Recycling and co-trustees have reached this settlement that will aid the recovery of the Lower Duwamish River, benefiting both wildlife and Washington residents,” said Natural Resource Trustee Michael L. Blanton for the Washington State Department of Ecology.

“The Washington Department of Fish and Wildlife fully supports this project that will restore valuable out-migrating juvenile salmonid habitat, while also removing a significant amount of shoreline armoring, shoreline debris, and creosote-treated pilings, a source of PAH contamination harmful to fish and wildlife,” said Trustee Representative Laura Arber for the Washington Department of Fish and Wildlife. “This rearing habitat, in a heavily industrialized area, will benefit multiple species including ESA listed juvenile salmonids in the Lower Duwamish estuary and bring us one step closer to salmon recovery.”

The Elliott Bay Trustees developed a Draft Restoration Plan and Environmental Assessment (RP/EA) analyzing the environmental benefits and impacts of the project, which is also subject to a 30-day comment period. A copy of the draft RP/EA is available here.

This settlement is part of a series of early settlements with polluting parties for natural resource damages in the Lower Duwamish River. More information about the Lower Duwamish River Natural Resource Damage Assessment is online at: https://darrp.noaa.gov/hazardous-waste/lower-duwamish-river.

Today’s settlement was filed by the Justice Department’s Environmental Enforcement Section in the U.S. District Court for the Western District of Washington. It is subject to a 30-day public comment period and court approval. To view and comment on the proposed Consent Decree, visit the department’s website: www.justice.gov/enrd/consent-decrees.

Argus Information & Advisory Services Inc. (Argus) has agreed to pay the United States $37 million to resolve claims under the False Claims Act and the Financial Institutions Reform, Recovery and Enforcement Act of 1989 (FIRREA), in connection with its access to and use of credit card data obtained pursuant to contracts with various federal regulators, including the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB) and the Consumer Financial Protection Bureau (CFPB).

Argus is incorporated in Delaware, with offices in White Plains, New York. Argus analyzes economic transactions, credit card data and credit bureau data to provide benchmarking and market analysis products to commercial and government clients. Between March 2009 and 2020, Argus executed contracts with the OCC, the independent bureau of the Department of Treasury that charters and regulates national banks and federal savings associations; the FRB, the independent federal regulator for certain banks and bank holding companies; the CFPB, an independent regulator of consumer practices at certain depository institutions; and the Federal Reserve Bank of Philadelphia. Under these contracts, Argus was tasked with performing validating, aggregating, storage, retrieval and reporting services for anonymized credit card data that the regulatory agencies directed the banks to provide. The contracts each placed restrictions on Argus’ ability to use, disclose or distribute credit card data collected from banks for purposes other than the performance of the work under the government contracts.

The settlement announced today resolves allegations that, from 2010 through 2020, Argus improperly accessed, used and retained anonymized credit card data that it received under the contracts. The United States alleged that Argus used this anonymized data to create synthetic (proxy) data that it incorporated into the products and services it sold to some commercial customers in place of actual data from certain banks. The United States further alleged that Argus failed to disclose its improper access, use and retention of credit card data to the United States and the extent to which it relied on synthetic data to its commercial clients. The synthetic data in question did not include personally identifiable information.

“Companies that do business with the federal government are expected to abide by the terms of their agreements, including any restrictions on the use or disclosure of government supplied data,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not permit contractors to profit from the misuse of such data and to put the data at risk.”

“Those who collect sensitive information for federal regulators should never disregard their contractual obligations to appropriately use and protect that information,” said First Assistant U.S. Attorney Raj Parekh for the Eastern District of Virginia. “We will hold companies accountable when they breach their agreements with regulators and misuse sensitive data for their own commercial gain.”

“The American public expects integrity in the processes by which its government provides services and contractors who seek unfair advantage undermine this integrity,” said Acting Inspector General Rich Delmar of the Department of Treasury’s Office of Inspector General (OIG). “Treasury OIG is committed to conducting investigations, audits, and other work to detect and prevent these violations of the public trust.”

“Companies that breach their agreements to properly protect and use sensitive financial data must be held accountable,” said Special Agent in Charge John T. Perez of Headquarters Operations for the Office of Inspector General for the  FRB and the CFPB. “I commend our agents and their federal law enforcement partners for their hard work, which ultimately led to today’s announcement.”

The settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Eastern District of Virginia; the Department of Treasury OIG; and the Office of the Inspector General for the FRB and the CFPB.

Senior Special Agent Jacob Heminger from the Department of the Treasury OIG and Special Agent Will Burmeister from the Office of the Inspector General for the FRB and the CFPB investigated the case.

Senior Trial Counsels David W. Tyler and Don Williamson from the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Tanya Kapoor for the Eastern District of Virginia handled the matter.

The claims resolved by the settlement are allegations only. There has been no determination of liability.

Note: Read the Department of Justice FY2025 Budget Fact Sheets here.

The President today submitted to Congress his Budget for Fiscal Year (FY) 2025, which requests a total of $37.8 billion in discretionary resources, an increase of $467 million over an FY 2024 Annualized Continuing Resolution, and a total of $10.5 billion in mandatory funding for the Justice Department.

“The dedicated men and women of the Justice Department work every day to uphold the rule of law, keep our country safe, and protect civil rights,” said Attorney General Merrick B. Garland. “Securing these resources is critical to advancing that mission in service of the American people.”

Key investments to keep our country safe include:

• Over $20.6 billion to expand the capacity of the Department’s law enforcement and U.S. Attorneys’ Offices to combat a wide range of complex and evolving threats. This includes $11.3 billion for the FBI and $2.8 billion for U.S. Attorneys’ Offices to carry out their complex missions, including keeping our country safe from violent crime, cybercrime, hate crimes, terrorism, espionage, and the proliferation and potential use of weapons of mass destruction. The budget also includes:

  • $2.7 billion for the Drug Enforcement Administration (DEA) to continue the fight against dangerous drug trafficking gangs and cartels and to prevent the flow of deadly drugs into our communities.

  • $1.9 billion for the U.S. Marshals Service (USMS) to assist local law enforcement in apprehending violent fugitives from our neighborhoods and to protect our nation’s judges and courts.

  • $2 billion for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) to reduce gun violence and violent crime.

• Investments of $1.6 billion in discretionary funding and $3.5 billion in mandatory funding to combat violent crime and reduce gun violence in the United States. This includes the new Violent Crime Reduction and Prevention Fund (VCRPF) and mandatory funding for the Community Oriented Policing Services (COPS) Hiring Program. The VCRPF, over five years, will hire new federal law enforcement agents, prosecutors, and forensic specialist to combat fentanyl, as well as apprehend dangerous fugitives and aims to drive down the high rate of unsolved violent crimes and the lengthy delays that undermine public trust and public safety.

  • $2.2 billion in mandatory funding, and $370 million in discretionary funding, for a total of almost $2.6 billion for the COPS Hiring Program to provide resources to meet the administration’s goal of 100,000 new police officers in America’s neighborhoods, through the President’s Safer America Plan.

• • $884 million for a new mandatory Gun Crime Prevention Strategic Fund totaling $4.4 billion over five years in funding to provide states and localities with comprehensive resources to invest in law enforcement and crime prevention.

  • $247.1 million in funding annually for five years for the new mandatory-funded VCRPF dedicated to providing resources to states, localities, and Tribal communities to help prevent and respond to violent crime. This funding supports 4,700 detectives at the state and local level over five years through COPS funding, as well as the USMS’ Operation North Star, DEA’s Operation Overdrive, additional prosecutors for U.S. Attorneys’ Offices, and expansion of ATF’s and FBI’s staffing efforts to bolster violent crime reduction.

• $7.7 billion for programs to protect national security, enhance cybersecurity, and combat cybercrime to counter terrorism and keep pace with rising national security threats, while protecting civil rights and civil liberties.

• $4.7 billion to support state and local law enforcement and community violence prevention and intervention programs to make neighborhoods safer.

• • • $483 million for COPS, which includes funding for law enforcement to boost community policing, the STOP School Violence Program to provides resources to prevent school violence, and active shooter training to prepare officials to respond to shooting incidents.

    • $856.5 million for the Office of Justice Programs (OJP), which includes funding to support state, local, and Tribal public safety and community justice activities to reduce violent crime.  

• $1.1 billion to protect the most vulnerable by combating child exploitation, combating gender-based discrimination and harassment, and protecting victims of violence and abuse. Funding is provided for several new programs within the Office on Violence Against Women (OVW), including $20 million the Access to Sexual Assault Nurse Exams, $10 million for the Special Initiative to Address the Intersection of Missing and Murdered Indigenous Persons and Domestic Violence, Sexual Assault, Stalking, and Human Trafficking, and $3 million for the National Service Line for Incarcerated Survivors of Sexual Abuse.

Key investments to support the Department’s mission of protecting civil rights includes include $737.6 million in funding that supports:

• $641 million for the OJP to provide resources, leadership, and solutions to advance community safety, build community trust, and provide grants, including a $5 million increase for the Khalid Jabara and Heather Heyer NO HATE Act grant program. Funding includes $300 million for the Accelerating Justice System Reform initiative to enhance public safety while reducing disparities in the criminal and juvenile justice systems and $5 million for the Deaths in Custody Reporting Act (DCRA) to enhance the collection and reporting of DCRA data.

• $94 million to support the Department’s Body Worn Camera Initiative.

Key investments to support the Department’s mission to uphold the Rule of Law include $119.1 million in funding that supports:

• $38.1 million to protect democratic institutions, including:

  • $28.1 million for the USMS’ Supreme Court of the U.S. Protective Services, which includes personnel and equipment for protective services and details.

  • $10 million for grants under the Daniel Anderl Judicial Security and Privacy Act to help prevent the disclosure of personal information of Federal judges and their family members.

• $12.5 million for Justice Information Sharing Technology. This includes $10 million to support for the new National Law Enforcement Accountability Database that helps law enforcement agencies make more informed hiring decisions, thereby enhancing both accountability and public safety. In addition, $2.5 million is requested to support the Department’s effort to capitalize on the extraordinary capabilities of artificial intelligence in a responsible and secure manner.

The Department’s overall request for FY 2025 reflects the limits imposed by the Fiscal Responsibility Act (FRA) of 2023.

A federal grand jury charged a Chinese man on Friday in a four-count indictment alleging he smuggled eastern box turtles, a protected wildlife species, from the United States to China for the global pet trade black market.

Sai Keung Tin, 53, aka “SK Tin,” “Ricky Tin” and “Ji Yearlong,” of Hong Kong, is charged with four counts of exporting merchandise contrary to law.

Tin was arrested Feb. 25 at John F. Kennedy (JFK) International Airport in New York City and made his initial appearance the following day in federal court in Brooklyn. His arraignment is expected in the coming weeks in U.S. District Court in Los Angeles.

According to the indictment returned Friday, Tin in June 2023 knowingly and illegally aided in the exportation of 40 eastern box turtles to be sent from the United States to Hong Kong. Wildlife inspectors at an international mail facility in Torrance, California, intercepted four packages addressed to “Ji Yearlong,” a name believed to be one of Tin’s aliases, and which were to be shipped to Tin’s home in Hong Kong, according to court documents. Tin allegedly falsely labeled the packages containing the protected turtles as containing almonds and chocolate cookies.

Three of the packages contained between eight and 12 live eastern box turtles each – all bound in socks, according to court papers. The fourth package contained seven live eastern box turtles and one deceased eastern box turtle. A special agent also searched property records and learned that the name listed as the sender on each of the packages was fake.

The eastern box turtle (Terrapene carolina carolina) is a subspecies of the common box turtle and is native to forested regions of the eastern United States with some isolated populations in the Midwest. Turtles with colorful markings are especially prized in the domestic and foreign pet trade market, particularly in China and Hong Kong. These animals are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), an international agreement to protect fish, wildlife and plants that are or may become threatened with extinction. The United States and China are parties to this agreement.

An affidavit that was filed with a criminal complaint filed with this case on Feb. 26 says that Tin was associated with Kang Juntao, of Hangzhou City, China, a convicted felon and international turtle smuggler. Kang recruited turtle poachers and suppliers in the United States to ship turtles domestically to middlemen, who would then bundle the turtles into other packages and export them to Hong Kong. The turtles were bound in socks to protect their shells and so they could not move and alert authorities.

Court papers allege that from June 2017 to December 2018, Kang caused at least 1,500 turtles – with a market value exceeding $2.25 million – to be shipped from the United States to Hong Kong. Middlemen shipped approximately 46 packages containing turtles from New York and New Jersey, which were routed through an international mail facility at JFK, to addresses in Hong Kong, including Tin’s.

Kang pleaded guilty to a money laundering charge after his extradition from Malaysia in 2019, and later was sentenced to 38 months in federal prison. Since Kang’s sentencing, law enforcement has continued to intercept packages addressed to Tin and others, court papers state.

If convicted, Tin faces a maximum sentence of 10 years in prison for each smuggling count.

Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division, U.S. Attorney E. Martin Estrada for the Central District of California and Assistant Director Edward Grace of the U.S. Fish and Wildlife Service (USFWS), Office of Law Enforcement made the announcement.

The United States Fish and Wildlife Service is investigating this case, with assistance from Customs and Border Protection and Homeland Security Investigations.

Senior Trial Attorney Ryan Connors and Trial Attorney Lauren Steele of the Justice Department’s Environmental Crimes Section and Assistant U.S. Attorney Dominique Caamano for the Central District of California are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Ford Motor Company has agreed to pay the United States $365 million to resolve allegations that it violated the Tariff Act of 1930 by misclassifying and understating the value of hundreds of thousands of its Transit Connect vehicles, the Justice Department announced today.

The settlement resolves allegations that Ford devised a scheme to avoid higher duties by misclassifying cargo vans. Specifically, the government alleged that from April 2009 to March 2013, Ford imported Transit Connect cargo vans from Turkey into the United States and presented them to U.S. Customs and Border Protection (CBP) with sham rear seats and other temporary features to make the vans appear to be passenger vehicles. These temporary rear seats were never intended to be, and never were, used to carry passengers. Rather, the government alleged, Ford included these seats and features to avoid paying the 25% duty rate applicable to cargo vehicles. By classifying the vans as vehicles for the transport of passengers, Ford instead paid a duty rate of just 2.5%. Ford submitted entry papers to CBP declaring these vehicles as classifiable under tariff heading 8703 as “Motor cars and other motor vehicles principally designed for the transport of persons.” After customs clearance, each of these Transit Connect vehicles was immediately stripped of its rear seats and returned to its original identity as a two-seat cargo van. 

The settlement also resolves allegations that, from April 2009 through August 2013, Ford avoided paying import duties by under-declaring to CBP the value of certain Transit Connect vehicles.

“When companies misclassify imports to avoid paying what they owe, they will be held accountable,” said Acting Associate Attorney General Benjamin C. Mizer. “Today’s settlement is a victory for American taxpayers and for our efforts to combat trade fraud and ensure compliance with United States trade laws. Companies that attempt to evade customs duties with sham representations and workarounds will not be rewarded.”

“Importers have an obligation to truthfully declare the nature of their products and pay the duties that are owed,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The government will not permit companies to evade duties by adding sham features to their products and then misclassifying them.”

“This settlement, which is one of the largest customs penalty settlements in recent history, demonstrates that U.S. Customs and Border Protection will pursue even the largest companies to ensure that all importers follow the rules; our intent is to enforce the customs laws fairly, which means that non-compliance is not an option for anyone,” said Senior Official Performing Duties of the Commissioner Troy A. Miller of CBP. “The partnership between CBP and the Justice Department provides a critical safeguard to protect the revenue of the United States.” 

To combat trade fraud, including avoidance of import duties, the Justice Department created a Trade Fraud Task Force. The Task Force partners with CBP and other law enforcement agencies to ensure compliance with United States trade laws. 

The resolution obtained in this matter was the result of a coordinated effort between CBP and the Civil Division’s Commercial Litigation Branch’s International Field Office and National Courts Section.

Attorneys Beverly Farrell and Justin Miller of the Civil Division’s International Trade Field Office and Claudia Burke, Joshua Kurland, Patricia McCarthy and Frank White of the Civil Division’s National Courts Section handled this matter.

The claims resolved by this settlement are allegations only. There has been no determination of liability.

A federal criminal complaint was unsealed today in the Southern District of Florida charging a Florida man with conspiring to defraud the United States by hiding income and assets offshore and with making a false statement to the IRS.

According to the allegations contained in the complaint,[1] between 1985 and 2020, Dan Rotta hid more than $20 million in assets in at least two dozen secret bank accounts at five different Swiss banks, including UBS and Credit Suisse. Over the years, Rotta allegedly earned substantial income from these assets that he did not report on his tax returns.

Starting in 2008, after it was reported publicly that UBS and its bankers were under criminal investigation for helping U.S. taxpayers evade their taxes, Rotta allegedly took steps to continue concealing his offshore assets, including by closing his UBS account and moving the funds to Credit Suisse and another Swiss bank, and then later transferring the funds into Swiss bank accounts in the name of nominees.

In 2011, the IRS allegedly began auditing Rotta after it obtained evidence that he had unreported foreign financial accounts. Allegedly, Rotta falsely denied that he had any such accounts. During the audit, the IRS allegedly obtained evidence showing Rotta received transfers of hundreds of thousands of dollars from these foreign accounts that he did not report on his tax returns. Rotta allegedly claimed that these transfers were non-taxable loans from third parties and caused his representative to present the IRS with sham loan documents to corroborate his claims. As part of the scheme, Rotta allegedly enlisted his friend and cousin, Co-Conspirator 1, a native and resident of Brazil, to claim to the IRS that he either made or facilitated the fake loans.

The IRS allegedly did not believe Rotta and assessed additional taxes as well as penalties and interest against him. Rotta allegedly then caused a petition in U.S. Tax Court to be filed that sought a redetermination of the IRS’s assessments. In that petition, Rotta, through his attorney, allegedly falsely denied having any foreign accounts and attached the fictitious loan documents. Furthermore, Rotta allegedly caused Co-Conspirator 1 to travel to the United States and retell the false loan story to IRS attorneys. In 2017, after Rotta allegedly presented evidence showing that the purported loans had been repaid, the IRS reversed the deficiencies and agreed that Rotta owed no additional tax. Unbeknownst to the IRS, however, the funds that Rotta purportedly repaid to the third parties allegedly went into accounts that he controlled.

In 2019, after he allegedly became aware that the IRS would receive copies of his Swiss bank records, Rotta attempted to participate in the IRS’s voluntary disclosure practice. Under that practice, taxpayers who willfully do not comply with their tax and reporting obligations can make timely, accurate and complete disclosures of their conduct, which may be a way to resolve their non-compliance and limit their criminal exposure. In his submission, which was signed under penalties of perjury, Rotta allegedly made several false statements.

Rotta was arrested on March 9 and made his initial court appearance today before U.S. Magistrate Judge Jared M Strauss of the U.S. District Court for the Southern District of Florida. If convicted, Rotta faces a maximum penalty of five years in prison for the conspiracy charge and five years in prison for the false statement charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Markenzy Lapointe for the Southern District of Florida made the announcement.

The International Tax and Financial Crimes group of IRS Criminal Investigation is investigating the case.

Senior Litigation Counsels Sean Beaty and Mark Daly and Trial Attorneys Patrick Elwell and William Montague of the Justice Department’s Tax Division, and Assistant U.S. Attorney Michael Homer for the Southern District of Florida are prosecuting the case.

A complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

[1] As the introductory phrase signifies, the entirety of the text of the complaint and the description of the complaint set forth herein constitute only allegations. Every fact described should be treated as an allegation.

This week, Principal Associate Deputy Attorney General (PADAG) Marshall Miller traveled to San Francisco and San Diego to highlight the Justice Department’s efforts to uphold the rule of law through its corporate criminal enforcement program and through its commitment to ensuring robust access to counsel for federal criminal defendants.

On Wednesday, March 6, in San Francisco, PADAG Miller participated in a panel of Enforcers and Regulators at the American Bar Association’s 39th Annual National Institute on White Collar Crime — a panel which also included Assistant Attorney General Nicole M. Argentieri of the Department’s Criminal Division, U.S. Attorney Ismail Ramsey for the Northern District of California, and the enforcement directors of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). In his remarks, PADAG Miller outlined the Justice Department’s approach to corporate criminal enforcement: holding individuals accountable; targeting resources to combat the most serious white-collar criminal conduct; and pursuing tough penalties for repeat corporate offenders. PADAG Miller also previewed Deputy Attorney General (AG) Monaco’s announcement of a new Justice Department whistleblower rewards program.

On Friday, March 8, PADAG Miller led an access to counsel stakeholder convening at Metropolitan Correctional Center (MCC) San Diego, providing opening remarks and facilitating a wide-ranging stakeholder conversation. PADAG Miller was joined at this event by representatives from the leadership teams at the Federal Bureau of Prisons (FBOP) and the Office for Access to Justice (ATJ), as well as U.S. Attorney Tara McGrath for the Southern District of California and leadership representatives from the Federal Defenders of San Diego, U.S. Marshals Service, U.S. District Court, and U.S. Probation Office, among others. This meeting was the last in an annual series of 10 convenings on access to counsel at pretrial detention facilities across the FBOP.

PADAG Miller’s visit to MCC San Diego follows a comprehensive, 100-day review of practices and policies related to access to counsel in FBOP’s 10 pretrial facilities, launched by Deputy AG Monaco last year. Coming out of that review, on July 21, 2023, Deputy AG Monaco issued a groundbreaking Report and Recommendations Concerning Access to Counsel at the Federal Bureau of Prisons’ (BOP) Pretrial Facilities (the “Report”). The Report provided over 30 recommendations for BOP to further safeguard the right to counsel in its pretrial facilities, including the recommendation to convene annual meetings of local stakeholders to “assess legal correspondence, discovery, visiting, and other pertinent legal access challenges at pretrial facilities and to identify solutions.”

During the San Diego convening, PADAG Miller stressed the importance of local, cross-agency participation in the Department’s ongoing efforts to protect the right of access to counsel in federal facilities. He also highlighted several access to counsel reforms that the Department has implemented since the Report’s publication. Those reforms included, among other recommendations, policy authorizing defense practitioners to bring laptops for legal visitations at all pretrial facilities and guidance standardizing the rules for legal visits by non-attorney legal staff.

Following the convening, PADAG Miller toured MCC San Diego, accompanied by U.S. Attorney McGrath, as well as representatives from FBOP and ATJ. The tour inspected the facility’s newly constructed legal visitation pods and counsel consultation phone booths, which provide additional confidential spaces for legal visits and calls with counsel. After departing the BOP facility, PADAG Miller visited both the U.S. Attorney’s Office for the Southern District of California and the Federal Defenders of San Diego, where he met with office leadership and staff for further conversation on access to counsel and other topics. At the U.S. Attorney’s Office, PADAG Miller thanked U.S. Attorney McGrath, her leadership team, and office personnel for their hard work in fulfilling the Department’s mission to uphold the rule of law, keep our country safe, and protect civil rights.

Deputy Attorney General (AG) Lisa Monaco traveled to San Francisco and Seattle this week to highlight the Justice Department’s efforts to uphold the rule of law through its corporate criminal enforcement program and the development of guardrails to prevent misuse of artificial intelligence (AI).

In her keynote remarks at the American Bar Association's 39th Annual National Institute on White Collar Crime, the Deputy AG outlined the Justice Department’s approach to corporate criminal enforcement: holding individuals accountable; targeting resources to combat the most serious white-collar criminal conduct; and pursuing tough penalties for repeat corporate offenders. She highlighted the Justice Department’s “carrots and sticks” approach of encouraging companies and individuals to self-report corporate crimes and other financial misconduct and imposing the most significant penalties on those most culpable.

To reinforce these efforts, the Deputy AG announced a new Justice Department whistleblower rewards program, which will offer rewards to individuals who discover and report financial and corporate misconduct not otherwise known to the government – akin to the successful whistleblower programs operated by the Securities and Exchange Commission and the Commodity Futures Trading Commission. The Department’s program’s launch will follow a 90-day pilot development period and will complement the Department’s existing voluntary self-disclosure programs that operate with the same principle: individuals and companies who want to qualify for reporting benefits have to be the first in the door. In her announcement, the Deputy AG said, “Our message to whistleblowers is clear: the Department of Justice wants to hear from you. And to those considering a voluntary self-disclosure, our message is equally clear: knock on our door before we knock on yours.” 

The Deputy AG also warned of AI’s potential to supercharge corporate crime, stressing that federal prosecutors will seek stronger sentences when AI is abused to render a corporate crime significantly more serious. She also announced that going forward, in all corporate cases, federal prosecutors will assess companies’ ability to manage AI-related risks as part of their overall compliance efforts.

In keeping with the Department’s focus on AI, the Deputy AG convened the first roundtable discussion of the “Justice AI Initiative,” which she launched last month at the University of Oxford. Justice AI brings together stakeholders across industry, academia, law enforcement, and civil society to share expertise on both the promise of AI and the perils of its misuse. Together with industry leaders, the Deputy AG discussed how AI will impact the Department’s mission to uphold the rule of law, keep the nation safe, and protect civil rights.

The Deputy AG concluded her trip in Seattle, where she visited the U.S. Attorney’s Office for the Western District of Washington. In meetings with U.S. Attorney Tessa M. Gorman for the Western District of Washington, her leadership team, and the prosecutors and professional staff of the office, she thanked them for their hard work to combat increasingly complex and dangerous threats, such as swatting incidents, cybercrime, and nation state actors seeking to steal our best technology. She also sat down with federal law enforcement partners and leadership of the Swinomish Tribe to discuss their collaboration around violent crime and public safety challenges, including deadly synthetic opioids such as fentanyl.

The owner of two purported telemedicine companies pleaded guilty today to her role in a conspiracy to defraud Medicare of $136 million.

According to court documents, Jean Wilson, 52, of Richmond Hill, Georgia, was a licensed nurse practitioner in New Jersey. Wilson owned two purported telemedicine companies, Advantage Choice Care LLC (ACC) and Tele Medcare LLC (Tele Medcare), and two orthotic brace suppliers, Southeastern DME and Choice Care Medical. Wilson, through these companies, recruited medical professionals who were bribed to sign prescriptions for Medicare beneficiaries for orthotic braces and prescription drugs that were medically unnecessary, ineligible for Medicare reimbursement, or not provided as represented. In certain instances, Wilson only paid providers when they signed orthotic brace orders. The medical professionals Wilson recruited would often sign the orthotic brace orders based solely on a brief telephonic interaction with the beneficiary, or no interaction at all. Wilson and the medical providers she retained frequently signed false and misleading documentation to support claims to Medicare.

During the conspiracy, Wilson and others submitted, or caused the submission of, false and fraudulent claims to Medicare, Medicare sponsors, and Medicare Part D plans in excess of approximately $136 million for orthotic braces and prescription drugs that were medically unnecessary, ineligible for Medicare reimbursement, or not provided as represented. Medicare, Medicare sponsors, and Medicare Part D plans paid at least $66 million for these claims.

Wilson pleaded guilty to conspiracy to commit health care fraud and wire fraud. She is scheduled to be sentenced on July 18 and faces a maximum penalty of 20 years in prison. As part of her plea, she has agreed to pay over $66 million in restitution to Medicare and the IRS. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Naomi Gruchacz of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Special Agent in Charge James Dennehy of the FBI Newark Field Office, and Special Agent in Charge Tammy Tomlins of the IRS Criminal Investigation (IRS-CI) Newark Field Office made the announcement.

The HHS-OIG, FBI, and IRS-CI are investigating the case.

Trial Attorneys Darren C. Halverson and Nicholas K. Peone of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, currently comprised of nine strike forces operating in 27 federal districts, has charged more than 5,400 defendants who collectively have billed federal health care programs and private insurers more than $27 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

The Justice Department’s Environment and Natural Resources Division (ENRD), U.S. Department of Agriculture (USDA) Animal and Plant Health Inspection Service (APHIS) and USDA Office of the General Counsel (OGC) signed a Memorandum of Understanding (MOU) on Civil Judicial Enforcement of the Animal Welfare Act (AWA).

Assistant Attorney General Todd Kim of ENRD, USDA Principal Deputy General Counsel Mary Beth Schultz and USDA-APHIS Administrator Michael Watson made the announcement.

The agencies have been closely collaborating on civil judicial enforcement of the AWA for almost four years. This collaboration has resulted in a number of important enforcement actions, including securing the surrender of close to 150 animals from a Michigan animal dealer, some of which are protected under the Endangered Species Act, and an injunction protecting dogs and cats against pervasive mistreatment at a breeder facility.

The MOU represents another significant step forward in AWA enforcement, as it outlines new actions the agencies will take to enhance their collaboration. In general, the MOU establishes a framework for notification, consultation and coordination among APHIS, USDA’s General Counsel and ENRD. Building on the agencies’ ongoing relationship, this framework formalizes procedures for regular meetings, coordination on enforcement referrals, information sharing and additional training for employees, among other activities. These procedures will better enable the agencies to prepare for and coordinate on potential civil enforcement actions.

USDA and the Justice Department take seriously their common goal of ensuring that animals protected by the AWA are cared for and treated humanely. This MOU demonstrates the agencies’ joint commitment to fulfilling this mission.

The Justice Department filed a complaint today seeking to bar a Chicago-area tax return preparer from owning or operating a tax return preparation business and preparing tax returns for others.

The civil complaint against Sir-Michael Davenport and his Illinois-based business, My Unity Financial & Tax Preparation LLC, was filed in the U.S. District Court for the Northern District of Illinois.

The complaint alleges that Davenport knowingly took unreasonable or incorrect positions on returns he prepared that resulted in understatements of the tax his customers owed and overstatements of the refunds to which they were entitled to receive. In particular, the complaint alleges that Davenport prepared returns that claimed deductions for purported business losses on Form 1040 Schedule C that he knew were false. The complaint also alleges that Davenport conceals his identity from the IRS by operating as a “ghost preparer,” meaning he does not sign his clients’ tax returns, nor does he identify himself as the paid preparer by reporting his Preparer Tax Identification Number – or PTIN – on the returns he prepares for paying clients despite being legally required to do so. Not signing a return, or “ghost preparation,” is often a red flag that a preparer is attempting to avoid detection by the IRS.

The government further alleges that Davenport began preparing tax returns as early as 2018 and filed hundreds of tax returns in 2021 and 2022, with anywhere from 69% to 81% of the returns he prepared in those years reporting average business losses of between $26,507 to $31,879. By repeatedly understating his customers’ tax liabilities, the complaint alleges that the United States has been harmed by Davenport’s conduct resulting in the significant loss in tax revenue of an estimated $715,407 for tax year 2021 alone.

Deputy Assistant General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS warns taxpayers to avoid "ghost preparers" and lists other improper acts that tax preparers engage in to take advantage of their unsuspecting customers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

WASHINGTON – Last week, INTERPOL Washington and members of the U.S. Marshals Service (USMS) presented awards to the Fiscalía General de la República in Mexico City for their exceptional assistance in the capture of two individuals on the USMS 15 Most Wanted Fugitives list.

The fugitives, Edgar Salvador Casian-Garcia and Araceli Medina, were elevated to the list in February 2023, wanted by the Pasco Police Department in Franklin County, Washington, in reference to aggravated murder of a child, rape in the first degree of another child, and three counts of aggravated assault of a child in the first degree.

Acting on U.S. requests for provisional arrest for the purpose of extradition, and thanks to the diligent efforts of the Agencia de Investigación Criminal and INTERPOL Mexico, the pair was successfully arrested in Mexico on March 22, 2023, and subsequently extradited to the U.S. This operation also led to the recovery of five missing and endangered children. INTERPOL Washington issued two INTERPOL Red Notices and five urgent Yellow Notices regarding Casian-Garcia and Medina that were instrumental in their location and apprehension.

“It is a great privilege to honor the incredible work done by our partners in Mexico to bring these dangerous fugitives back to the U.S. to face justice for such heinous accusations,” said INTERPOL Washington Director Michael A. Hughes. “Criminals don’t stop at borders and neither do we. Through this remarkable example of international law enforcement collaboration, we have once again demonstrated that by working together, we can build a safer world.”

The charges came after Casian-Garcia’s biological daughters, 8 and 3 at the time, were found abandoned in Tijuana, Mexico, in mid-2020. Both girls showed signs of severe physical abuse. Subsequent forensic interviews done with one of the girls determined that Casian-Garcia and Medina had likely been physically abusing the children, as well as the girls’ seven-year-old brother, who is believed to have been tortured to death in Washington state and his body later dumped. His remains were found in a rural part of neighboring Benton County in February 2022.

After presenting the awards, INTERPOL Washington also visited INTERPOL Mexico to recognize its support and assistance in the case, as well as provide an operational update and discuss increased partnership opportunities.

A component of the U.S. Department of Justice co-managed by the U.S. Department of Homeland Security, INTERPOL Washington—the U.S. National Central Bureau (USNCB)—is the designated U.S. representative to INTERPOL. It serves as the national point of contact and coordination for all INTERPOL matters, coordinating international investigative efforts among member countries and the more than 18,000 local, state, federal, tribal, and territorial law enforcement agencies.

The Justice Department filed a complaint today seeking to bar several Michigan tax return preparers from owning or operating a tax return preparation business and preparing tax returns for others.

The civil complaint against J&A Tax Services LLC, doing business as Equitax; Anne Heibeck aka Ann Marie Dziergas; Crystal Patrick; Debra Washington; Kianna Dancy; Sade Cooper and Tasha Washington was filed in the U.S. District Court for the Eastern District of Michigan. 

The complaint alleges that the defendants, using a variety of schemes, knowingly took unreasonable or incorrect positions on tax returns they prepared that resulted in understating their customers’ tax liabilities or overstating the amount of refunds their customers were entitled to receive. The complaint alleges that the defendants prepared customers’ returns that included various false or fabricated deductions and credits, including falsely reporting business income or loss on Form 1040 Schedule C, either by reporting fictitious sole proprietorships or by manipulating authentic sole proprietorship income and expenses, fabricated child and dependent care expenses, fictitious credits for education expenses and false COVID-19 sick and family leave credits.

The government further alleges that in 2022 alone, the defendants filed 865 returns, with at least 98% of the returns claiming a refund. By repeatedly reducing their customers’ tax liabilities or inflating their customers’ refunds, the complaint alleges that defendants harmed the United States through, among other things, the significant loss in tax revenue, estimated at over $2 million for the 2021 tax year alone.

Deputy Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.

Taxpayers seeking a return preparer should remain vigilant against unscrupulous tax preparers. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers. The IRS also offers guidance on the credentials and qualifications that taxpayers should seek from their return preparer.

In the past decade, the Justice Department’s Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.

KVK Research Inc., a generic drug manufacturer in Bucks County, Pennsylvania, pleaded guilty today to criminal charges that it introduced adulterated drugs into interstate commerce.

A criminal information filed in federal court in Philadelphia charged KVK Research and its corporate affiliate, KVK Tech Inc., with two misdemeanor counts of introducing adulterated drugs into interstate commerce in violation of the Federal Food, Drug and Cosmetic Act (FDCA). Pursuant to a plea agreement, KVK Research pleaded guilty to the information and agreed to a proposed fine and forfeiture amount of $1.5 million.

KVK Tech agreed to a three-year deferred prosecution agreement (DPA) that will allow the company to avoid conviction on the charges in the information if it complies with the terms of the agreement, which include implementation of a compliance program designed to prevent and detect violations of federal regulations regarding current good manufacturing processes. The DPA also requires KVK Tech to engage an independent compliance monitor to evaluate the company’s corporate compliance program to address and reduce the risk of future violations.

U.S. District Judge Harvey Bartle III presided over the KVK Research plea hearing.

“Consumers have a right to expect that the drugs they purchase are safe and manufactured in compliance with the FDCA and FDA regulations,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will continue to work with FDA to prosecute companies that put consumers at risk by selling adulterated drugs.”

“Consumers in this District expect that manufacturers will adhere to FDA regulations,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “When adulterated drugs are introduced into interstate commerce, that conduct has the potential to jeopardize patient safety. This case exemplifies my office’s commitment to holding manufacturers responsible for their crimes, as well as refocusing efforts on the company’s compliance to prevent future illegal conduct. In this case, the joint efforts between the office’s criminal and civil divisions to hold defendants accountable also returned money to those federal agencies affected by the defendants’ conduct.”

“The FDA’s requirements for manufacturing generic drugs are designed to ensure that patients receive safe and effective medical treatments. Evading the FDA process and distributing adulterated drugs to U.S. consumers will not be tolerated,” said Special Agent in Charge George Scavdis of the FDA Office of Criminal Investigations, Metro Washington Field Office. “We will continue to investigate and protect the public health of the nation.”

As part of the plea agreement and the DPA, the companies admitted that between January 2011 and October 2013, KVK Tech introduced into interstate commerce at least 62 batches of adulterated hydroxyzine tablets. The tablets were manufactured with an active pharmaceutical ingredient (API) made at a foreign facility. KVK Tech failed to notify FDA or seek FDA authorization to use that facility as a source of API for its hydroxyzine products. The companies also admitted that between Feb. 27, 2019, and April 16, 2019, KVK Tech manufactured prescription drugs while failing to exercise appropriate controls over computer and related systems as required by current good manufacturing practices regulations. Under federal law, such drugs are deemed to be adulterated.

Additionally, KVK Tech agreed to pay $2 million to resolve its civil liability under the False Claims Act arising from the company’s failure to exercise appropriate controls as required by current good manufacturing practice regulations, which caused KVK Tech to introduce into interstate commerce drugs deemed to be adulterated. During the Feb. 27, 2019, through April 16, 2019, time period, KVK Tech sold the adulterated pharmaceuticals, which resulted in alleged false claims submitted to the TRICARE program, Federal Employees Health Benefits Program (FEHBP), Veterans Administration (VA) and Department of Labor, Office of Workers Compensation Programs (DOL-OWCP), in violation of the False Claims Act.

“Protecting the welfare of our nation’s military members and their families is a priority for the Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense Office of Inspector General,” said Acting Special Agent in Charge Brian J. Solecki of the DCIS Northeast Field Office. “The introduction of adulterated pharmaceuticals into the TRICARE system endangers the lives of American service members and threatens our military readiness. The DCIS is committed to working with the Justice Department and our law enforcement partners to ensure that companies who engage in fraudulent activity, at the expense of the U.S. military, are investigated and prosecuted.”

“We expect manufacturers to comply with all federal laws and regulations when they are serving federal health care recipients,” said Deputy Assistant Inspector General for Investigations Conrad J. Quarles of the Office of Personnel Management Office of the Inspector General. “We applaud our investigative staff, and our law enforcement partners for their hard work protecting FEHBP enrollees and their families.”

FDA’s Office of Criminal Investigations investigated the case.

Assistant Director Ross S. Goldstein and Trial Attorney Alisha Crovetto of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorneys M. Beth Leahy and Patrick Murray for the Eastern District of Pennsylvania are prosecuting the case. Deputy Chief Charlene Keller Fullmer, Assistant U.S. Attorney Anthony D. Scicchitano and Auditor Dawn Wiggins for the Eastern District of Pennsylvania handled the civil case.

Additional information about the Consumer Protection Branch and its enforcement efforts can be found at www.justice.gov/civil/consumer-protection-branch.

Except to the extent that the defendants’ admissions are part of its criminal resolution, the claims resolved by the civil settlement are allegations only and there has been no determination of liability.

The Department of Justice, Department of Commerce’s Bureau of Industry and Security (BIS), and the Department of the Treasury’s Office of Foreign Assets Control (OFAC) today issued a joint compliance note focusing on the obligations foreign-based individuals and entities have to comply with U.S. sanctions and export control laws and the risks of exposure that they face for non-compliance. Today’s note marks the third collective effort by the three agencies to inform the private sector about enforcement trends and provide guidance to the business community on compliance with U.S. sanctions and export laws. All three agencies also joined three other multi-seal advisories in the past year.

“Any person or company participating in the global marketplace has an obligation to comply with our sanctions and export control laws, regardless of where they are located,” said Assistant Attorney General for National Security Matthew G. Olsen. “Today’s advisory makes clear that the global business community must ensure that they are educated about how these laws apply and take steps to mitigate any risks they may face as a result of their business operations.”

“As today’s compliance note makes clear, it doesn’t matter where in the world you’re located – if you’re dealing in items subject to the EAR, you must comply with U.S. export controls,” said Matthew S. Axelrod, Assistant Secretary of Commerce for Export Enforcement. “Failure to do so may risk you being the subject of an administrative or criminal enforcement action.” 

The compliance note highlights the applicability of U.S. sanctions and export control laws to persons and entities located abroad and describes the enforcement mechanisms available to hold violators accountable, including civil enforcement actions and criminal prosecutions. In addition, the note provides an overview of compliance considerations for non-U.S. companies and compliance measures that could potentially help mitigate their risk.

“OFAC will continue to actively enforce our sanctions against those who violate them, whether in the United States or abroad.” said Director Bradley T. Smith of the Department of the Treasury’s Office of Foreign Assets Control. “As underscored by today’s advisory, foreign persons should be vigilant in understanding their OFAC-administered sanctions obligations and take steps necessary to comply.” 

As with prior multi-agency advisories, the compliance note underscores the importance of an effective and robust compliance program to mitigate any risks of non-compliance that they may face in today’s global business environment. This is especially true for foreign companies who do business with both the United States and jurisdictions, people, or entities who are subject to restrictions under U.S. sanctions or export control laws.

A federal grand jury in the Western District of Texas returned a superseding indictment today charging a third South Korean national and a South Korean company for their roles in a bid-rigging conspiracy and a scheme to defraud the United States in connection with operation and maintenance work for U.S. military installations in South Korea.

According to the superseding indictment filed in the U.S. District Court for the Western District of Texas, Hye Yeon “Rachel” Jo was the CEO of DESCA Co. Ltd. (DESCA), a company that performed subcontract work on U.S. military installations in South Korea. Beginning at least as early as November 2018, Jo and DESCA, along with others, conspired to rig bids and fix prices for subcontract work, and defrauded the U.S. Department of Defense to obtain millions of dollars in repair and maintenance subcontract work at U.S military installations in South Korea. Hyuk Jin Kwon and Hyun Ki Shin, who conspired with Jo and DESCA, were previously indicted on similar charges on March 16, 2022.

“These alleged crimes targeted United States military installations overseas, where we make significant investments to protect our strategic interests,” said Director Daniel Glad of the Justice Department’s Procurement Collusion Strike Force (PCSF). “The Antitrust Division and our PCSF partners around the globe will continue to investigate and pursue charges for illegal conduct that targets U.S. military spending, wherever it occurs.”

“Fair and open competition is crucial to protecting the interests of the American taxpayer,” said Special Agent in Charge Stanley A. Newell of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service’s (DCIS) Transnational Operations Field Office. “The dedicated professionals of DCIS, along with our partners from the U.S. Army Criminal Investigation Division (CID), FBI and PCSF, remain vigilant in our efforts to bring to justice those who threaten the integrity of our military procurement system.”

“This adjudication was made possible by combining the investigative forces of Army CID’s Far East Fraud Resident Agency and the Republic of South Korea. These international partnerships are invaluable and help protect the integrity of the contracting and bidding process of the U.S. military,” said Special Agent in Charge Keith K. Kelly of the Army CID’s Fraud Field Office. “The Department of the Army Criminal Investigation Division is committed to identifying and holding accountable all those who would attempt to defraud the U.S. government and the American people.”

“Today’s indictment continues the results of the FBI’s investigation into a South Korean company for conspiring to defraud the United States,” said Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division. “The defendants orchestrated a scheme to rig bids and fix prices to obtain millions of dollars in contract work on military bases. As this case demonstrates, the FBI is committed to taking meaningful action to maintain a fair and free marketplace both at home, and abroad.”

The eight-count indictment charges Jo, DESCA, Kwon and Shin with one count of conspiracy to restrain trade (violating the Sherman Act), one count of conspiracy to commit wire fraud and six counts of wire fraud. This indictment is the second in an investigation into bid rigging and price fixing for operation and maintenance work for U.S. military installations in South Korea. A South Korean company was previously sentenced for participating in the conspiracy and fraud scheme on Sept. 12, 2023.

The defendants face a maximum penalty of 10 years in prison and a $1 million fine for individuals and a maximum penalty of a $100 million fine for corporations for the violation of the Sherman Act. They also face a maximum penalty of 20 years in prison and a $250,000 fine for violating the wire fraud statute. The maximum fines may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum. Upon a conviction, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

The Antitrust Division’s Washington Criminal II Section, Army CID, FBI and DCIS investigated the case.

Trial Attorneys Daniel E. Lipton and Daniel P. Chung of the Antitrust Division are prosecuting the case, with assistance from Assistant U.S. Attorney Matthew B. Devlin for the Western District of Texas.

Anyone with information about this investigation or other procurement fraud schemes should notify the Procurement Collusion Strike Force (PCSF) at www.justice.gov/atr/webform/pcsf-citizen-complaint. The Justice Department created the PCSF in November 2019. It is a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant and program funding at all levels of government – federal, state and local. For more information, visit www.justice.gov/procurement-collusion-strike-force.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The Departments of Justice and the Interior today released their joint response to the Not Invisible Act Commission’s recommendations on how to combat the missing or murdered Indigenous peoples (MMIP) and human trafficking crisis. The response recognizes that more must be done across the federal government to resolve this longstanding crisis and support healing from the generational traumas that Indigenous peoples have endured throughout the history of the United States.

“These recommendations are an important and necessary step toward healing the trauma, pain, and loss that Tribal communities have endured for generations,” said Attorney General Merrick B. Garland. “The Justice Department is committed to working with our partners at the Department of the Interior to put an end to the missing or murdered Indigenous persons and human trafficking crisis. We are deeply grateful to the Not Invisible Act commissioners and the survivors and family members of victims who testified before the Commission about their heartbreaking experiences. Those testimonies and the Commission’s recommendations will continue to guide our work.”

“Addressing violent crimes against Indigenous peoples has long been underfunded and ignored, as a cause of intergenerational trauma that has affected our communities since colonization,” said Secretary of the Interior Deb Haaland. “Through historic efforts like the Not Invisible Act Commission, we’re identifying recommendations created by Indian Country, for Indian Country. This will ensure that epidemics like the Missing and Murdered Indigenous Peoples Crisis and Human Trafficking are addressed with the resources they demand.”

The Justice and Interior Departments’ response addresses the Commission’s areas of concern including:

• Law enforcement and investigative resources;
• Recruitment and retention of law enforcement;
• Data collection and reporting;
• Cross-jurisdictional coordination;
• Family and survivor resources;
• Improving public safety resources; and
• Alaska-specific issues.

The Not Invisible Act Commission was created by the Not Invisible Act, the enactment of which was led by Secretary Haaland during her time in Congress. The Commission included law enforcement, Tribal leaders, federal partners, service providers, family members of missing or murdered individuals, and survivors. As mandated by the Act, the Commission developed recommendations for federal government actions to take on focused topics to combat violent crime against Indigenous people and within Indian lands, and to address the epidemic of missing people, and the murder or trafficking of American Indian and Alaska Native peoples, as specified under the law.

Background on Efforts to Address the Crisis of Missing or Murdered Indigenous People (MMIP)

At the 2021 White House Tribal Nations Summit, President Biden signed Executive Order 14053 on Improving Public Safety and Criminal Justice for Native Americans and Addressing the Crisis of Missing or Murdered Indigenous People directing the Departments of the Interior, Justice, and Health and Human Services to work with Tribal Nations and partners to build safe and healthy Tribal communities and to support comprehensive law enforcement, prevention, intervention and support services. In March 2022, the President signed the Violence Against Women Act Reauthorization Act of 2022 into law, which built on advancements from previous reauthorizations and reinforced Tribal sovereignty by recognizing Tribes’ inherent authority to address the epidemic of violence within their lands and communities.

At the 2022 White House Tribal Nations Summit, the Interior Department’s Bureau of Indian Affairs (BIA) and the FBI announced an agreement to provide for the effective and efficient administration of criminal investigations in Indian Country. The agreement specified that the BIA Office of Justice Services (BIA-OJS) and the FBI would cooperate on investigations and share information and investigative reports as well as establish written guidelines outlining jurisdiction and investigative roles and responsibilities. The agreement also requires that all BIA, FBI, and Tribal law enforcement officers receive training regarding trauma-informed, culturally responsive investigative approaches. In addition, at the Tribal Nations Summit, the Attorney General announced the selection of the Justice Department’s first Native American Outreach Services Liaison, who works to ensure that victims of crimes have a voice in every step of the criminal justice process where the federal government has jurisdiction.

Attorney General Garland traveled to Alaska last August, meeting with Tribal leaders and representatives of Native Tribal organizations to discuss public safety challenges and partnerships with Tribal communities to combat the MMIP crisis.

Since the establishment of the NIAC in 2020, the Justice Department has made strides in implementing systems aimed at preventing new instances of MMIP, locating individuals who are reported missing, and, where a crime has occurred, investigating and prosecuting those responsible.

In June 2023, the Justice Department launched the MMIP Regional Outreach Program. This program places regional attorneys and coordinators at U.S. Attorneys’ Offices across the United States to help prevent and respond to cases of missing or murdered Indigenous people, and it will work closely with the Native American Outreach Services Liaison to improve the Justice Department’s response to the MMIP crisis.

The Justice Department’s Office for Victims of Crime expanded the scope of allowable activities under its Tribal Victim Services Set-Aside grant program to permit Tribal communities to pay for costs related to generating awareness of individual missing persons cases involving American Indians and Alaska Native persons, supporting search efforts and coordination of Tribal, state, and federal responses to MMIP cases.

The Justice Department’s Antitrust Division, Federal Trade Commission (FTC) and Department of Health and Human Services (HHS) jointly launched a cross-government public inquiry into private-equity and other corporations’ increasing control over health care.

Private equity firms and other corporate owners are increasingly involved in health care system transactions, and, at times, those transactions may lead to a maximizing of profits at the expense of quality care. The cross-government inquiry seeks to understand how certain health care market transactions may increase consolidation and generate profits for firms while threatening patients’ health, workers’ safety, quality of care and affordable health care for patients and taxpayers.

The agencies issued a Request for Information (RFI) requesting public comment on deals conducted by health systems, private payers, private equity funds and other alternative asset managers that involve health care providers, facilities or ancillary products or services. The RFI also requests information on transactions that would not be reported to the Justice Department or FTC for antitrust review under the Hart-Scott-Rodino Antitrust Improvements Act.

“Preserving competition in health care markets is a priority for the Justice Department because of its important impact on the health and well-being of Americans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “This RFI will enable the agencies to accurately understand the modern market realities of the health care industry and forcefully enforce the law against unlawful deals. Hearing from patients, workers and market participants will be critical in developing future enforcement and policy efforts relating to consolidation in the health care sector.”

“When private equity firms buy out healthcare facilities only to slash staffing and cut quality, patients lose out,” said Chair Lina M. Khan of the FTC. “Through this inquiry, the FTC will continue scrutinizing private equity roll-ups, strip-and-flip tactics and other financial plays that can enrich executives but leave the American public worse off.”

“Increasing competition in health care markets gives people more choices. Competition helps ensure patients have access to high-quality, lower cost care, and that health care workers receive higher pay and work under better conditions. And it saves taxpayers money,” said Secretary Xavier Becerra of HHS. “We need to do more to understand the impact of private equity and corporate dealmaking on our policymaking, regulatory decisions and enforcement actions. The Biden-Harris Administration is committed to improving transparency and competition in health care.”

Research has shown that competition in health care provider and payer markets promotes higher quality, lower cost health care, greater access to care, increased innovation, higher wages and better benefits for health care workers. Comments submitted in response to the joint RFI will inform the agencies’ enforcement priorities and future action, including potential regulations aimed at promoting and protecting competition in health care markets and ensuring appropriate access to quality, affordable health care items and services.

The agencies’ RFI builds upon the Centers for Medicare & Medicaid Services’ recent RFI on Medicare Advantage and a RFI issued by the FTC and HHS on how pharmaceutical middleman groups may be contributing to drug shortages. The RFI issued today stems from a December 2023 announcement outlining efforts by the Justice Department, FTC and HHS to lower health care and drug costs, while promoting competition to benefit patients and health care workers.

In addition to the launch of the RFI, all three agencies will also be participating today in a virtual public workshop that will explore the impact of private equity in health care and will discuss what the federal government is doing to address any harmful effects.

All market participants — including patients, consumer advocates, doctors, nurses, health care providers and administrators, employers, insurers and more — are invited to share their comments in response to the RFI. The agencies seek comments on a variety of transactions, including those involving dialysis clinics, nursing homes, hospice providers, primary care providers, hospitals, home health agencies, home- and community-based services providers, behavioral health providers, as well as billing and collections services.

The public will have 60 days to submit comments at Regulations.gov, no later than May 6. Once submitted, comments will be posted to Regulations.gov.

A former raw milk cheese manufacturer and the company he owned and managed pleaded guilty today to charges related to cheese that was linked to a 2016-2017 outbreak of listeriosis, the disease caused by the pathogen Listeria monocytogenes. 

Johannes Vulto and his company, Vulto Creamery LLC, each pleaded guilty to one misdemeanor count of causing the introduction of adulterated food into interstate commerce. Vulto oversaw operations at Vulto Creamery manufacturing facility in Walton, New York, including those relating to sanitation and environmental monitoring. In pleading guilty, Vulto and Vulto Creamery admitted that between December 2014 and March 2017, they caused the shipment in interstate commerce of adulterated cheese.

According to the plea agreement, environmental swabs taken at the Vulto Creamery facility between approximately July 2014 and February 2017 repeatedly tested positive for Listeria species. The Listeria family includes both harmless species and L. monocytogenes, which can cause listeriosis in humans. In March 2017, after the U.S. Food and Drug Administration (FDA) linked Vulto Creamery’s cheese to an outbreak of listeriosis, Vulto shut down the Vulto Creamery facility and issued a partial recall that was expanded to a full recall within weeks. According to the Centers for Disease Control and Prevention, the listeriosis outbreak resulted in eight hospitalizations and two deaths.

“It is crucial that American consumers be able to trust that the foods they buy are safe to eat,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The department will continue to work with its law enforcement partners to hold responsible food manufacturers that sell dangerously contaminated products.”

“This investigation and prosecution holds accountable the defendant and his business who through unsafe practices caused illness and death to consumers in an entirely preventable tragedy,” said U.S. Attorney Carla B. Freedman for the Northern District of New York. “The law enforcement and regulatory partners involved in this case will continue to work together to bring to justice those who endanger the public through unsafe and unsanitary products and facilities.”

“U.S. consumers rely on the FDA to ensure that their food is safe and wholesome,” said Special Agent in Charge Fernando McMillan of FDA’s Office of Criminal Investigations New York Field Office. “When companies and individuals put themselves above the law by producing food that endangers and harms the public, as occurred in this case, we will see that they are brought to justice.” 

Listeriosis is a severe, invasive illness that can be life-threatening in some cases. Persons who have the greatest risk of experiencing listeriosis due to consumption of foods contaminated with L. monocytogenes are pregnant women and their newborns, the elderly and persons with weakened immune systems.

Vulto and Vulto Creamery pleaded guilty before Magistrate Judge Thérèse Wiley Dancks in Syracuse, New York. A sentencing date will be set by the court. Further information about the case will be posted under “Information for Victims in Large Cases” at the Consumer Protection Branch’s website: www.justice.gov/civil/consumer-protection-branch.

The FDA’s Office of Criminal Investigations investigated the case.

Senior Trial Attorney James T. Nelson of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Michael F. Perry for the Northern District of New York prosecuted the case.

For more information about the enforcement efforts of the Consumer Protection Branch, visit www.justice.gov/civil/consumer-protection-branch.

Director Rachel Rossi of the Office for Access to Justice (ATJ) traveled to Tempe, Mesa and Phoenix, Arizona, to engage access to justice stakeholders and deliver open plenary remarks at the Access to Justice and Future of Justice Work Conference.

Director Rossi met with the U.S. Attorney Gary Restaino for the District of Arizona, where she discussed and applauded the office’s commitment to pro bono work. Additional meetings included the Federal Public Defender for the District of Arizona and the Director of Public Defense Services of Maricopa County to discuss support for criminal justice, public defense and access to justice.

She also met with the Arizona Access to Justice Commission and the Arizona Bar Foundation to discuss state-level efforts to promote and expand civil legal services and improve Arizonans’ access to civil justice, including the recently convened State Agency Forum on Access to Justice.

Additionally, Director Rossi and ATJ staff met with legal services organizations about the significant challenges they face in providing basic legal needs, particularly in Tribal communities. They met with stakeholders who are part of a collaboration among five legal services organizations that will use non-attorney community justice workers to provide disaster legal services in American Indian and Alaska Native communities. The meeting included leaders and staff from Montana Legal Services, Anishinaabe Legal Services, DNA People’s Legal Services, Oklahoma Legal Services and Alaska Legal Services Corporation.

Following the convening, Director Rossi and ATJ visited two cutting-edge legal services programs run by Innovation for Justice, a legal innovation lab based in Arizona and Utah. As part of the visit, Director Rossi met with representatives from the Housing Stability Legal Advocate Initiative and the Domestic Violence Legal Advocate Initiative. ATJ heard about needs of the community and learned about the programs’ empowerment of community members to provide legal help with housing and domestic violence matters. In the meeting, advocates presented examples of the community-based justice worker nonlawyer program and provided an overview of their legal services design process.

The Access to Justice and Future of Justice Work Conference focused on ways in which trained nonlawyers and community justice workers can play a significant role in advancing access to justice. In her opening plenary remarks, Director Rossi highlighted recent efforts of ATJ to advance bold and creative solutions to civil justice gap, including the 2023 Legal Aid Interagency Roundtable report, Access to Justice in Federal Administrative Proceedings: Nonlawyer Assistance and Other Strategies. She highlighted the report’s compilation of numerous, varied ways in which nonlawyers provide legal representation and advice in federal agency administrative proceedings and how those uses can serve as an example for access to justice efforts throughout the U.S.