District Not Recorded

The Justice Department today announced its annual plan for making anticipated grant funding available this fiscal year to advance public safety activities and improve justice system outcomes. The Department is inviting community-based organizations; state, local, Tribal, and territorial government agencies, including law enforcement agencies; research institutions; and nonprofit entities to apply for funding from more than 200 grant programs, administered by its Office of Community Oriented Policing Services (COPS Office), Office of Justice Programs (OJP), and Office on Violence Against Women (OVW). As in prior years, the awards will be made later this year, subject to appropriations, and will build on almost $5.8 billion in grants awarded in Fiscal Year (FY) 2023.

“Every person, in every neighborhood, deserves to be safe and feel protected,” said Attorney General Merrick B. Garland. “In the coming year, the Justice Department plans to put more resources directly into the hands of our law enforcement and community partners working to drive down violent crime and improve public safety. We encourage police departments, community organizations, and other partners to apply for this funding through the Justice Department’s more than 200 grant programs.”

“These critical resources will make a profound difference in lives of Americans across the country, from funding more officers on the beat to helping survivors of domestic violence seek shelter,” said Deputy Attorney General Lisa O. Monaco. “Community-based organizations, crisis centers, law enforcement agencies, and more will benefit from these investments, and our communities will be safer because of them.” 

Funding awarded by the Department’s three grantmaking components covers a wide range of public safety activities, from law enforcement hiring and community violence intervention to justice system-behavioral health partnerships, school safety measures, and programs designed to curb domestic violence, dating violence, sexual assault, and stalking. Program solicitations will invite proposals from eligible applicants for competitive and formula grant funding.

“The anticipated investments in this year’s Program Plan demonstrate the Justice Department’s continued commitment to helping our community and law enforcement partners across the country advance community safety, justice, and wellness,” said Acting Associate Attorney General Benjamin C. Mizer. “I am grateful to the dedicated employees in our three grantmaking offices who work hard every day to administer our grants and support applicants and grantees throughout the process.”

Published annually, the Justice Department Program Plan outlines funding opportunities that the Department intends to provide to enhance community safety and trust and improve the criminal, civil, and juvenile justice systems; assist victims of crime; provide training and technical assistance to state, local, Tribal, and territorial government agencies, as well as to community-based organizations; and conduct research and collect national statistics. The Program Plan provides summary details of the funding opportunities each grantmaking component has released or anticipates releasing this fiscal year. The Plan is searchable by component or office, keyword, eligible applicant category, and expected release date.

Funding amounts in the FY 2024 Plan and other relevant information are subject to the availability of appropriations and potential legislative changes and may be updated frequently. Potential applicants can request to be notified of the release of solicitations and of updates through email subscription services available from the COPS Office, OJP, and OVW.

To learn more about where to find DOJ funding opportunities and how to apply, visit the JustGrants Resources Application Submission Training page.

Information about FY 2023 awards can be found on the COPS Office, OJP, and OVW websites.

The founder and former CEO of a sustainable fuel company pleaded guilty today to wire fraud in connection with a scheme to embezzle at least $5.9 million from the company and to defraud several investors out of $15 million.

According to court documents, between 2021 and 2022, Bryan Sherbacow, 55, of Charleston, South Carolina, and Washington, D.C., defrauded the company he co-founded by transferring company funds without authorization to his personal bank account and by making unauthorized personal expenditures from a company bank account. Sherbacow attempted to conceal his actions by, among other things, emailing altered bank statements and other falsified financial records to the company’s outside accounting firm and members of the company’s board. Sherbacow used embezzled funds to pay for, among other things, a vintage Mercedes-Benz sports car, a Range Rover sport utility vehicle, payments to an art auction operator, personal tax liens, personal credit card payments, rent payments on personal residences, payment to a beach club, electronics, and a down payment on a condo. 

To raise additional funds for the company, Sherbacow also sent or caused to be sent altered bank statements and other falsified financial records to prospective and current investors. For example, Sherbacow caused a false and fabricated bank statement to be sent to two investors, in which Sherbacow intentionally removed transactions showing transfers from the company bank account to his personal bank account and falsified account balance information to make it appear that the company possessed more cash on hand than it possessed, due in part to Sherbacow’s unauthorized transfer of funds. Sherbacow also caused a balance sheet containing false and misleading financial information to be sent to another investor. In at least partial reliance on the fabricated bank statement and false and misleading financial information, three investors collectively invested approximately $15 million. 

Sherbacow pleaded guilty to one count of wire fraud. He is scheduled to be sentenced on May 16 and faces a maximum penalty of 20 years in prison. A federal district court 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 and Assistant Director in Charge David Sundberg of the FBI Washington Field Office made the announcement.

The FBI Washington Field Office and the Defense Criminal Investigative Service, Charleston Resident Agency are investigating the case.

Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section is prosecuting the case.

A federal grand jury indicted a Texas man yesterday with filing false tax returns and structuring cash deposits to avoid currency transaction reporting requirements. 

According to the indictment, between 2017 and 2019, Frank Richard Ahlgren III, of Austin, filed false tax returns that underreported or did not report the sale of $4 million worth of bitcoin in which he had substantial gains. All taxpayers are required to report any sale proceeds and gains or losses from the sale of cryptocurrency, such as bitcoin, on a tax return.  In 2017, Ahlgren allegedly used the proceeds from the sale of approximately $3.7 million worth of bitcoin to purchase a residence. Ahlgren allegedly filed a false 2017 tax return that inflated the price he originally paid for the bitcoin, thereby underreporting his capital gain from the sale. In 2018 and 2019, Ahlgren allegedly sold bitcoin for more than $650,000, and allegedly failed to report his sales of bitcoin on his 2018 and 2019 tax returns. 

The indictment also charges that after selling some of his bitcoin to an individual in exchange for cash, Ahlgren made a series of bank deposits of the cash in amounts less than $10,000 each to avoid triggering currency transaction reporting requirements.

Ahlgren faces a maximum penalty of five years in prison for each structuring count and three years in prison for each false return count. 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 Jaime Esparza for the Western District of Texas made the announcement.

IRS Criminal Investigation and the Texas Office of Attorney General are investigating the case.

Assistant Chief Michael C. Boteler and Trial Attorney Mary Frances Richardson of the Justice Department’s Tax Division and Assistant U.S. Attorney William R. Harris for the Western District of Texas 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.

A Massachusetts man pleaded guilty today to evading taxes on income he earned as a commercial fisherman.

According to court documents and statements made in court, Rodolfo Membreno, of Fall River, worked as a commercial fisherman and deckhand operating primarily out of the Port of New Bedford. Membreno did not report over $1.3 million in income between 2013 and 2021. For 2013 to 2019, and again for 2021, Membreno did not file federal income tax returns or pay taxes. In 2020, he filed a false tax return that overstated business expenses. For 2012, Membreno filed a tax return but did not pay the tax that was due. To conceal his income, Membreno regularly cashed his paychecks from the fishing companies and used the cash to pay for personal expenses. In total, he caused a tax loss to the IRS of approximately $293,118.

Membreno is scheduled to be sentenced on May 15 and faces a maximum sentence of five years in prison. The defendant also faces a period of supervised release, restitution and monetary penalties. 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 Acting U.S. Attorney Joshua S. Levy for the District of Massachusetts made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Ezra Spiro and Acting Chief John Kane of the Justice Department’s Tax Division and Assistant U.S. Attorney Victor Wild for the District of Massachusetts are prosecuting the case.

The Justice Department announced today that it has secured a settlement agreement with Latitude Inc. (Latitude), a staffing company in Hanover, Maryland. The agreement resolves the department’s determination that Latitude violated the Immigration and Nationality Act (INA) by discriminating against certain non-U.S. citizens with permission to work in the United States and excluding them from job opportunities based on their citizenship status.

“Companies cannot unlawfully exclude all non-U.S. citizens with permission to work in the United States from job opportunities based on their citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold accountable those who engage in such behavior that violates our nation’s federal civil rights laws.”

The department’s investigation determined that, from at least April 2022 through July 2023, Latitude refused to refer, recruit or hire any non-U.S. citizens for several positions with a client company that had requested the restriction without any legal basis. These actions harmed lawful permanent resident workers, non-citizen national workers and workers who have been granted asylum or refugee status by unlawfully deterring them from applying to and failing to advance those who did apply for further consideration in the hiring process.

Under the terms of the settlement, Latitude will train its personnel on the INA’s requirements, revise its employment policies and be subject to departmental monitoring and reporting requirements. Latitude will pay civil penalties to the United States. 

The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute generally 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. 

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 today convened the National Elder Justice Law Enforcement Summit, which represents the first national gathering of local, state, and federal law enforcement to focus on efforts to combat elder abuse, neglect, financial exploitation, and fraud.    

During the two-day event, held at the U.S. Securities and Exchange Commission (SEC)’s headquarters in Washington, D.C., representatives from local, state, and national law enforcement organizations from around the country will join federal law enforcement representatives to discuss and learn about the various forms of elder abuse; identify promising practices, resources and tools available to state and local law enforcement; and foster greater collaboration between law enforcement and elder justice professionals to prevent, identify, and address elder abuse in their communities. Some of the specific topics to be addressed will include how dementia may impact elder abuse investigations; how to overcome challenges associated with investigating financial exploitation; how trauma impacts older victims and the importance of connecting older victims with services; and the unique challenge of investigating abuse and neglect committed against nursing home residents.  

“Tragically, millions of older Americans suffer from some form of elder abuse each year,” said Acting Associate Attorney General Benjamin C. Mizer, who opened the event. “While the pandemic brought to light some of the most egregious elder abuses, we know that far too many cases still go unreported.”

In his remarks, the Acting Associate Attorney General emphasized the value of collaboration among all levels of law enforcement, adding: “While the Department is steadfast in our commitment to pursue elder justice, it’s clear that none of us can do this work alone. You are valued partners in the Department’s fight against elder abuse and fraud, and we continue to reap the benefits of working collaboratively with you.” He reiterated the Department’s commitment to supporting the critical work of state and local partners.

In October 2023, the Justice Department released its fifth Annual Justice Report to Congress, highlighting its ongoing efforts to root out heinous activity that strategically targets and exploits vulnerable, older populations. During the period covered by the report of July 2022 through June 2023, the Department pursued nearly 300 criminal and civil actions against more than 650 defendants who collectively stole more than $1.5 billion from over 2.4 million victims. Also noted in the report, the Department has returned hundreds of millions of dollars to victims of elder fraud schemes, while helping to freeze millions of dollars for other older victims before their funds were transferred to fraudsters. The Department also supported over 5,000 victim assistance organizations that provided services (including individual advocacy, crisis intervention, civil legal assistance, transportation, and emergency shelter) to over 240,000 victims aged 60 and older.

The Summit was organized by the Justice Department’s Elder Justice Initiative, with support from the Office for Victims of Crime and the Office of Community Orienting Policing Services.  The event was also supported by members of the Elder Justice Coordinating Council, including the Securities and Exchange Commission, the Federal Trade Commission, the Consumer Financial Protection Bureau, and the Department of Health and Human Services Administration for Community Living. 

To report elder financial fraud, call the National Elder Fraud Hotline, 1-833-FRAUD-11 (1-833-372-8311). For more information on the Department’s elder justice activities, visit the Department’s Elder Justice Website, where information on the Summit also is available.

El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Latitude Inc. (Latitude), una empresa de dotación de personal en Hanover, Maryland. El acuerdo resuelve la determinación del departamento que Latitude vulneró la ley de Inmigración y Nacionalidad (INA, por sus siglas en inglés) al discriminar a ciertos no ciudadanos de los EE. UU. con permiso para trabajar en los Estados Unidos y los excluyó de oportunidades laborales con base en su estatus de ciudadanía.

«Las compañías no pueden excluir, de manera ilegal, a todo no ciudadano de los EE. UU. que tenga permiso para trabajar en los Estados Unidos de oportunidades laborales debido a estatus de ciudadanía», dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá responsabilizando a aquellos cuyas acciones vulneren las leyes federales de derechos civiles de nuestra nación».

La investigación del departamento determinó que, desde al menos abril del 2022 hasta julio del 2023, Latitude se negó a recomendar, reclutar o contratar a no ciudadanos de los EE. UU. para varios puestos en una empresa cliente que había solicitado la restricción sin ninguna base jurídica. Estas acciones perjudicaron a los trabajadores que son residentes permanentes legales, a los trabajadores nacionales que no son ciudadanos y a los trabajadores a los que se les ha otorgado el asilo o el estatus de refugiado, al disuadirles, de manera ilícita, de presentar una solicitud y no avanzar por el proceso de contratación, para mayor consideración, a aquellos que sí solicitaron un trabajo.

En virtud de los términos del acuerdo, Latitude capacitará a su personal en cuanto a los requisitos de la INA, revisará sus políticas de empleo y que se someterá a los requisitos de supervisión y declaración departamentales. Por otra parte, Latitude pagará sanciones civiles a los Estados Unidos.

La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, por lo general, 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.  

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 IER.

The Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) joined federal partners, including U.S. Immigration and Customs Enforcement’s Human Rights Violators and War Crimes Center (HRVWCC) and the FBI’s International Human Rights Unit (IHRU), non-governmental organizations (NGOs), and others today in recognizing the International Day of Zero Tolerance for Female Genital Mutilation (FGM).

“Female genital mutilation, a form of gender-based violence and child abuse, will not be tolerated today — or any day — in the United States,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Justice Department and our law enforcement partners remain committed to holding perpetrators accountable and to providing support for victims of FGM using every tool available to us.”

“Female genital mutilation is a devastating crime affecting the lifelong emotional and physical wellbeing of survivors,” said Assistant Director Michael D. Nordwall of the FBI’s Criminal Investigative Division. “Ending this human rights abuse will take a multidisciplinary approach from law enforcement, including community outreach, education, and training. Today and every day, the FBI stands with women and girls against FGM and all forms of violence.” 

“This international observance provides an opportunity to recognize this global issue, while raising awareness of those whose lives have been claimed or who have suffered life-long effects from this abhorrent practice,” said Executive Associate Director Katrina W. Berger of Homeland Security Investigations (HSI). “HSI, along with our global partners, is dedicated to ending this practice, advocating for victims, and bringing perpetrators to justice.”

Federal law enforcement agencies have engaged in many initiatives aimed at protecting those in the United States who have been subjected to, or who may be at risk of, FGM:

• The Justice Department’s Office of Victims of Crime awarded over $5 million in 2020 and 2021 in three-year grants through a grant program to support community projects designed to increase direct services, education, and community partner engagement to stop the victimization of women and girls through FGM. For more information, please see www.ojp.gov/sites/g/files/xyckuh241/files/media/document/ojp-news-10302020.pdf.
• Federal law enforcement authorities actively investigate allegations of FGM within the United States and abroad. Agencies collect tips and leads from the public and partner with NGOs that will relay information if they suspect a child is in imminent danger of being subjected to FGM or taken out of the country for purposes of FGM. Individuals suspected of FGM may be investigated by the HRVWCC and prosecuted by the Justice Department as appropriate.
• The FBI’s IHRU proactively conducts outreach to NGOs and provides frequent trainings to educate both the public and the FBI workforce on the FGM violation. These trainings provide awareness to the public about this form of abuse, which is a federal crime, as well as provide the FBI workforce the necessary tools to investigate and prevent instances of FGM.
• The Justice Department’s Office on Violence Against Women (OVW) administers federal grant funding authorized under the Violence Against Women Act to prevent and address sexual assault, domestic violence, and stalking. Funds from certain OVW grant programs may be used by grantees to provide culturally specific victim services and responses to FGM.  
• HSI launched Operation Limelight USA, a premier FGM outreach and education program, in 2017, which has been recognized domestically and internationally as a critical outreach effort to combat FGM by the Women in Federal Law Enforcement and the World Class Policing Awards. Examples of other agency initiatives aimed at protecting women and girls at risk of FGM can be found in the STOP FGM Act 2022 Annual Report of the Attorney General.

FGM is a form of child abuse, a serious human rights violation, and, since 1996, a federal crime in the United States. In 2013, Congress amended the federal FGM statute, 18 U.S.C. § 116, to prohibit taking a girl out of the United States for the purpose of performing FGM. In 2021, the STOP FGM Act 2020 was signed into law, strengthening existing law by expanding the scope of punishable acts and increasing the maximum penalty. Violations of this law may result in imprisonment and potential removal from the United States.

According to UNICEF, more than 200 million women and girls have been subjected to FGM, which refers to procedures that injure the female genital organs for non-medical reasons. While primarily concentrated in North, West, and Central Africa, as well as parts of the Middle East and Asia, FGM also occurs in the United States.

Established in 2008, the HRVWCC furthers HSI’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, FGM, and the use or recruitment of child soldiers. The HRVWCC leverages the expertise of a select group of agents, lawyers, intelligence and research specialists, historians, and analysts who direct the agency’s broader enforcement efforts against these offenders.

Members of the public who have information about victims or suspected perpetrators engaging in FGM or other human rights abuses are urged to call the FBI tip line at 1-800-CALL-FBI (800-225-5324) or the HSI tip line at (866) 347-2423. To submit a tip online, visit tips.fbi.gov or the HSI online form. Tips may be provided anonymously.

The Justice Department, Environmental Protection Agency (EPA) and Commonwealth of Massachusetts announced a settlement agreement with the City of Lowell, Massachusetts, requiring the city to reduce sewage discharges into the Merrimack River. Under the consent decree, Lowell will pay a $200,000 penalty for past violations.

A portion of Lowell’s wastewater collection system consists of sewers that convey sanitary sewage and stormwater runoff in a single pipe. During wet weather, untreated combined sewage is discharged through combined sewer overflow (CSO) outfalls to the Merrimack River and its tributaries, including Beaver Brook and the Concord River. The Merrimack River is a drinking water source for several downstream communities. Today’s settlement requires work to separate wastewater and stormwater, which will minimize the number of times untreated sewage is released into nearby waters. 

Lowell will also implement a program to detect and eliminate illicit connections that discharge wastewater to the city’s stormwater system thereby reducing pollution in stormwater that flows into local streams and rivers. Lowell must also establish and implement city ordinances to help prevent stormwater runoff from construction and post construction sites.

The total cost to update the sewer system has been estimated at approximately $195 million.

This consent decree was the result of a joint enforcement action brought by the Justice Department on behalf of the EPA, and the Massachusetts Attorney General’s Office, on behalf of the Massachusetts Department of Environmental Protection.

“Today’s settlement will result in cleaner and healthier water for the residents of Lowell and downstream communities, including some with environmental justice concerns, that rely on the Merrimack River for drinking water,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The Justice Department is committed to upholding our nation’s water protection laws for the benefit all.” 

“For far too long the city of Lowell, Massachusetts has failed to protect the communities that rely on the Merrimack River and other water sources for their drinking water,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “Today’s settlement demonstrates EPA’s commitment to ensure cities and towns meet their obligations under the Clean Water Act to prevent the overflow of sewage, pollutants, and debris into our nation’s waterways.”

“With this consent decree, the City of Lowell is taking necessary steps to further protect Lowell’s historic river ecosystem and improve the quality of the Merrimack River for its residents,” said Massachusetts Attorney General Andrea Joy Campbell. “These measures are critical as we continue our work to ensure that all of our residents live in a healthy and safe environment.”

“We are proud to have worked alongside our colleagues at the Attorney General’s Office and with our federal partners to make significant progress toward reducing contamination in the Merrimack River,” said Commissioner Bonnie Heiple of the Massachusetts Department of Environmental Protection. “The Healey-Driscoll Administration is committed to addressing complex issues like combined sewer overflows head-on, using all available tools – including technical support, funding and enforcement – to promote better environmental and public health outcomes.”

“This settlement is good news for Lowell and for communities downstream who will be better able to enjoy healthful activities on and near the Merrimack River. The Merrimack flows through several historically disadvantaged communities, so this settlement is especially important for ensuring that all citizens can enjoy a clean and healthy environment,” said EPA New England Regional Administrator David W. Cash. “EPA is committed to continuing our work to ensure that Massachusetts and New Hampshire citizens along the Merrimack River have clean and safe water. The timing of this is fortunate, as funding assistance available in the Bipartisan Infrastructure Law may help defray costs borne by local ratepayers.”

Lowell owns and, through the Lowell Regional Wastewater Utility, operates the Duck Island Clean Water Facility, a 32 million gallon per day secondary wastewater treatment facility that discharges to the Merrimack River. The treatment facility treats wastewater not only from Lowell but also from the towns of Chelmsford, Dracut, Tewksbury and Tyngsboro, Massachusetts.

Lowell had previously signed a consent decree with the federal government and the Commonwealth of Massachusetts in 1988 to address its illegal CSO discharges. While several interim actions have taken place, Lowell has not yet fully complied with the federal and state environmental statutes. More information on EPA’s efforts to address water quality issues can be found on the agency’s Merrimack River website.

The Justice Department’s Environmental Enforcement Section filed today’s proposed consent decree in U.S. District Court for the District of Massachusetts. It is subject to a 30-day public comment period and court approval. A copy of the consent decree will be available on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.

A Texas man was sentenced today to 41 months in prison for evading his taxes by not reporting income he earned while working overseas.

According to court documents and statements made in court, from 2013 to 2018, Peter Joseph Tignini, formerly of Cypress, Texas, worked in the United Arab Emirates and Qatar, earning over $4,750,000 in income. For tax years 2013 through 2017, Tignini filed false tax returns that claimed that his income was only approximately $100,000 each year. The amount Tignini reported each year was near or below the amount that U.S. citizens who live and work abroad for most of a year can exclude from their taxable income on their U.S. tax return. Tignini did not file a return for 2018. As a result, Tignini caused a tax loss to the IRS of $1,169,348.

Following an interview with federal law enforcement, Tignini altered his employment contract and payroll documents to make it appear that his former employer, not Tignini himself, was responsible for failing to report the income and pay the tax. Tignini then caused his attorneys to provide the false documents to the Justice Department’s Tax Division and the IRS. After investigators asked a witness about the online program Tignini used to create the phony documents, Tignini attempted to delete the documents from his account.

In addition to the term of imprisonment, U.S. District Court Judge George C. Hanks ordered Tignini to serve three years of supervised release and to pay $1,169,348.60 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Alamdar S. Hamdani for the Southern District of Texas and Special Agent in Charge Ramsey E. Covington of IRS-Criminal Investigation Houston Field Office made the announcement.

IRS Criminal Investigation investigated the case.

Senior Litigation Counsel Sean Beaty and Trial Attorney Brian Flanagan of the Tax Division, and Assistant U.S. Attorney Adam Goldman for the Southern District of Texas are prosecuting the case.

Acting United States Attorney Susan Lehr announced that Drew T. Frost, 41 of Omaha, Nebraska was sentenced January 25, 2024, in federal court in Omaha, for being a felon in possession of a firearm. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Frost to 41 months’ imprisonment.  There is no parole in the federal system.  After Frost’s release from prison, he will begin a 3-year term of supervised release. 

On August 1, 2022, an ATF confidential source made a controlled buy of a Mossberg 12-gauge shotgun from Frost, who is a convicted felon.  The confidential source, equipped with audio and video recording devices, drove to a meet location on the 42nd block of Frances Street (Frost’s residence).  Frost came out of his apartment and entered the confidential source’s vehicle.

The confidential source gave Frost $360 of ATF buy fund money in exchange for the shotgun.  Frost was previously convicted of Theft by Shoplifting (April 17, 2015), in the District Court of Lancaster County, Nebraska which is a felony.  He is prohibited from possessing firearms.

The Mossberg 12-gauge shotgun was manufactured outside of Nebraska.

This case was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives and was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

WASHINGTON – Today, INTERPOL Washington announced the establishment of the Missing Persons Unit (MPU), a new unit dedicated to leveraging the extensive INTERPOL network, cutting-edge technology, and specialized expertise to bolster efforts in locating missing individuals anywhere in the world.

“The launch of the MPU marks a significant stride towards enhancing global law enforcement cooperation, bringing closure to families, and ensuring justice for missing persons,” said INTERPOL Washington Director Michael A. Hughes. “By integrating the unit into our operational framework, we are reinforcing our commitment to working with countries all over the globe to build a safer world together.”

The MPU is a unit within INTERPOL Washington’s Global Police Services (GPS) Division and will use its resources, technology, and expertise to assist foreign and domestic law enforcement agencies and families in locating missing individuals. The unit will collaborate with INTERPOL's global network of 196 member countries and partners to share information, coordinate efforts, and enhance cross-border cooperation in locating missing persons.

Using INTERPOL tools and the INTERPOL Washington team of experts in various fields, including law enforcement, the MPU will provide specialized support and guidance to domestic and foreign law enforcement agencies working on missing persons cases. MPU will also provide access to INTERPOL's extensive databases, which contain DNA, unidentified bodies, fingerprints, facial recognition, and other information.

These INTERPOL tools include:

• Yellow Notices, which are INTERPOL alerts issued to help locate missing persons, often minors, or to help identify persons who are unable to identify themselves.
• Black Notices, which are an INTERPOL alert issued to seek information about unidentified bodies.
• INTERPOL’s I-Familia service, which provides the necessary international mechanism to allow missing persons DNA data to be compared globally.

MPU’s establishment reflects INTERPOL Washington’s continuing proactive approach to addressing missing persons cases and emphasizes the agency’s dedication to bolstering global law enforcement cooperation.

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.

A New Jersey man was sentenced today in the U.S. District Court for the Eastern District of New York to 72 months in prison and two years of supervised release for committing two separate mail fraud schemes in which he stole more than $50 million from victims throughout the United States by sending letters falsely telling them that they were entitled to receive a large sum of money in exchange for payment of a small fee.

According to court documents, Ryan Young, 41, of Upper Saddle River, operated two separate mail fraud schemes. In the first scheme, which Young operated from 2011 through 2016, Young and his co-conspirators sent fraudulent prize notification letters to victims in the United States and numerous other countries. The letters falsely claimed recipients had won money or valuable prizes, such as luxury cars. Victims were instructed to send small processing fees – typically $20 or $25 – to claim the prizes. Many victims received nothing; others received only a cheap piece of jewelry or a report listing unrelated sweepstakes. In February 2018, Young pleaded guilty to one count of conspiracy to commit mail fraud for his role in this large-scale international mail fraud scheme that stole approximately $50 million from victims.  

While on release and awaiting sentencing on the first mail fraud scheme, Young operated a second mail fraud scheme from March 2019 through May 2022. In the second scheme, Young mailed out letters falsely notifying recipients that they were entitled to receive unclaimed funds worth millions of dollars, a portion of a multimillion-dollar legal settlement, or a prize in exchange for payment of a small fee of $30 to $40. Young did not deliver funds to any of the victims who sent payments in response to these letters. Instead, Young sent booklets containing publicly available information or flyers about online restaurant coupons. According to court documents, Young’s second scheme resulted in $1.6 million in losses to victims.

“The defendant in this case defrauded victims through multiple mail fraud schemes, depriving vulnerable Americans out of more than $50 million,” said Principal Deputy Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department and its federal law enforcement partners are committed to investigating and prosecuting those who target vulnerable American consumers for financial gain.” 

“The defendant’s conduct is especially egregious. After pleading guilty and acknowledging his responsibility, Mr. Young decided to revert back to what he knew best, which was ripping off Americans,” said Inspector in Charge Eric Shen of the U.S. Postal Inspection Service’s Criminal Investigations Group. “Today’s sentence sends a clear message to others who think they will not be caught – postal inspectors will find you.”

The U.S. Postal Inspection Service investigated the case.

Senior Trial Attorney Ann Entwistle and Assistant Director John W. Burke of the Civil Division's Consumer Protection Branch are prosecuting the case and Assistant U.S. Attorney Tanisha Payne for the Eastern District of New York is handling asset forfeiture. 

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Justice Department 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 relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

More information about the department’s efforts to help American seniors is available at its Elder Justice Initiative webpage. For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP. The Justice Department provides a variety of resources relating to elder fraud victimization through its Office for Victims of Crime, which can be reached at www.ovc.gov.

United States Attorney Susan Lehr announced that Matthew Banfield, 38, of Omaha, Nebraska, was sentenced February 2, 2024, in federal court in Omaha for escape from custody. Chief United States District Court Judge Robert F. Rossiter, Jr. sentenced Banfield to 12 months’ and one day imprisonment. There is no parole in the federal system. After Banfield’s release from prison, he will begin a 2-year term of supervised release.

Banfield was sentenced to serve 37 months with a 3-year term of supervised release following his conviction for being a felon in possession of a firearm. Banfield was in custody of the Bureau of Prisons (BOP) residing at Dismas Charities in Omaha, which is a Federal Residential Reentry Center (RRC). On June 13, 2023, Banfield left Dismas Charities and failed to return as required. Banfield was placed in escape status until he was located and arrested on a warrant in August 2023. Because Banfield was in the custody of the BOP at the time he left the RRC, his failing to return to the RRC was an escape from BOP custody. 

This case was investigated by the United States Marshal Service.

A Maryland tax return preparer was sentenced today to 27 months in prison for preparing false tax returns.

According to court documents and statements made in court, Adis Smith, of Chula Vista, California, and formerly of Baltimore, prepared and filed false income tax returns for his clients to fraudulently lower the taxes they owed or to generate refunds from the IRS to which they were not entitled. Smith typically reported fictitious or inflated business losses and itemized deductions. To conceal his fraud from the IRS, Smith prepared and filed each client’s tax return as a “ghost preparer,” reporting it had been self-prepared by the client rather than by Smith. In total, Smith prepared over 1,000 false tax returns and caused a tax loss to the IRS of approximately $4,729,311.

In addition to his prison sentence, U.S. District Judge Stephanie A. Gallagher for the District of Maryland ordered Smith to serve one year of supervised release and to pay $4,729,311 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Erek L. Barron for the District of Maryland made the announcement.

IRS Criminal Investigation investigated the case.

Trial Attorneys Matthew Cofer and Sarah Ranney of the Justice Department’s Tax Division and Assistant U.S. Attorney Sean Delaney for the District of Maryland prosecuted the case.

A federal judge in the District of Hawaii unsealed a 20-count indictment charging a Hawaii man with five counts of sex trafficking by force, fraud or coercion; one count of sex trafficking of a minor; three counts of obstructing and interfering with a sex trafficking investigation; 11 counts of interstate travel and transportation in aid of racketeering enterprises and one count of interstate transportation of the purposes of prostitution. The indictment also charges a co-defendant with three counts of interstate transportation for purposes of prostitution.

According to the indictment, Isaiah McCoy, 37, used force, fraud and coercion to cause four adult women and one minor to engage in commercial sex acts in Hawaii between May 2019 and May 2023. The indictment also alleges that co-defendant Anwar Al-Rasul, 60, used cell phones and the internet to discuss booking commercial sex acts and collected payments from commercial sex acts between October 2019 and November 2019.

The charge of sex trafficking by force, fraud or coercion carries a mandatory minimum penalty of 15 years, a maximum penalty of life in prison, up to five years of supervised release and a fine of up to $250,000. Restitution is also mandatory upon any conviction for sex trafficking. A federal district court judge will determine any sentence upon any conviction after considering the U.S. Sentencing Guidelines and other statutory factors.  

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Special Agent in Charge John F. Tobon of Homeland Security Investigations (HSI) Honolulu Field Office made the announcement.

HSI investigated the case with the assistance of the Honolulu Police Department.

Trial Attorneys Maryam Zhuravitsky and Meghan Tokash of the Civil Rights Division’s Human Trafficking Prosecution Unit are prosecuting the case.

HSI is asking anyone with information about McCoy and Al Rasul to contact the HSI Honolulu Field Office at 808-529-1900 and Press “2” for the duty agent. Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Justice Department’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

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

A federal jury in Atlanta today convicted Saleem Hakim, 54, of tax evasion and failing to file tax returns.

According to court documents and evidence introduced at trial, from 2011 through 2013, Hakim brokered the sale of precious metals to his clients. Hakim earned more than $1 million in commissions from the sales, which enabled him to fund a lavish lifestyle that included purchases of high-end watches, jewelry, designer accessories and furs. Despite earning substantial income, he did not file income tax returns for tax years 2011 through 2013.

The evidence introduced at trial also showed that from 2020 through 2022, Hakim and his wife worked for businesses in Atlanta that bought and sold jewelry and luxury handbags. The Hakims earned a combined income of more than $260,000 for those years yet did not file tax returns. The evidence established that Hakim attempted to hide his and his wife’s income from the IRS by diverting his income into a trust that he established after being initially charged with tax crimes for tax years 2011 through 2013.

In addition, Hakim attempted to obstruct the investigation into his tax misconduct for 2020 through 2022. A witness testified that after he received a grand jury subpoena for records relating to income that the witness paid to Hakim and his wife, Hakim drafted a letter for the witness falsely stating he did not have any business records in his possession relating to the Hakims and asked the witness to send the letter. The witness sent the letter to federal prosecutors and IRS agents.

Sentencing is scheduled for April 30. Hakim faces a maximum penalty of five years in prison for each tax evasion charge and one year in prison on each failure to file charge. He also faces a period of supervised release, restitution and monetary penalties. 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 made the announcement. 

IRS Criminal Investigation is investigating the case.

Trial Attorneys Melissa S. Siskind and Colleen McCarthy of the Justice Department’s Tax Division prosecuted the case. Paralegal Robert Resto of the Tax Division assisted at trial. Acting Deputy Assistant Attorney General Goldberg also thanked the U.S. Attorney’s Office for the Northern District of Georgia for the substantial assistance they provided in the investigation and prosecution of this matter.

Two Michigan companies and two individuals have pleaded guilty for their roles in conspiracies to rig bids for asphalt paving services contracts in the State of Michigan. According to court documents and proceedings, four defendants — Asphalt Specialists LLC, its former Vice-president, Bruce F. Israel, Al’s Asphalt Paving Company Inc. (Al’s Asphalt) and its president, Edward D. Swanson — conspired with each other and other co-conspirators to rig bids in each other’s favor from March 2013 through November 2018.

Asphalt Specialists and Israel also participated in a separate conspiracy with F. Allied Construction Company Inc. (Allied) and its employees from July 2017 through May 2021. Al’s Asphalt and Swanson participated in a separate conspiracy of their own with Allied and its employees from June 2013 through June 2019. Allied and two of its executives previously pleaded guilty in August 2023 for their participation in the conspiracies with Asphalt Specialists LLC and Al’s Asphalt.

Each conspiracy operated in much the same way: the co-conspirators coordinated each other’s bid prices so that the agreed-upon losing company would submit intentionally non-competitive bids. These bids gave customers the false impression of competition when, in fact, the co-conspirators had already decided among themselves who would win the contracts.

“Asphalt paving is a key component of our transportation infrastructure,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “The division and our law enforcement partners will continue to prosecute corporations and individuals who undermine the competition that is crucial to responsible taxpayer spending and providing transportation services throughout Michigan.”

“Through these guilty pleas, the U.S. Department of Transportation Office of Inspector General (DOT OIG) holds accountable two executives and two Michigan companies that engaged in this bid rigging scheme,” said Special Agent in Charge Andrea M. Kropf of the DOT OIG, Midwestern Region. “We will continue to partner with our law enforcement and prosecutorial colleagues to pursue and prosecute those who attempt to stifle competition by violating federal antitrust laws.”

“The Justice Department’s Antitrust Division, along with our other federal law enforcement partners, secured a victory today in our fight against bid-rigging and collusion,” said Executive Special Agent in Charge Kenneth Cleevely of the U.S. Postal Service Office of Inspector General (USPS OIG). “The USPS OIG will vigorously investigate those who would engage in harmful anticompetitive practices and hold accountable those companies that subvert the competitive process for personal gain and corporate greed.”

The defendants each pleaded guilty to two counts of violating Section One of the Sherman Act. The maximum penalty for individuals is 10 years in prison and a $1 million criminal fine. The maximum penalty for corporations is a $100 million criminal fine. The fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime if either amount is greater than the maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Antitrust Division’s Chicago Office, DOT OIG and USPS OIG investigated the case, as part of an ongoing federal antitrust investigation into bid rigging and other anticompetitive conduct in the asphalt paving services industry.

The Justice Department’s Antitrust Division prosecuted the case.

Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit www.justice.gov/atr/report-violations.

Attorney General Merrick B. Garland today announced the recipients of the 70th and 71st Annual Attorney General’s Awards, honoring Justice Department employees and others for extraordinary contributions to the enforcement of our nation’s laws. Recipients from both 2022 and 2023 were selected from a group of more than 800 nominees.

“Each of today’s recipients has served with distinction, and in so doing, they have enabled the Justice Department to advance its work on behalf of the American people,” said Attorney General Garland. “Their exceptional leadership, heroism, and dedication have benefited people and communities across the country. 

The 70th and 71st Attorney General’s Awards and recipients are as follows.

70th Annual Attorney General’s Awards – 2022

The Attorney General’s David Margolis Award for Exceptional Service is the highest award given by the Justice Department to recognize employee achievement. The Attorney General commends Special Litigation Counsel Samantha Trepel of the Civil Rights Division; Trial Attorney Tara Allison of the Civil Rights Division; Assistant U.S. Attorneys Allen Slaughter, Evan Gilead, LeeAnn Bell Manda Sertich, and Samantha Bates for the District of Minnesota; FBI Special Agent Blake Hostetter; Paralegals Henry Fronk of the Civil Rights Division and Stefnie Braun for the District of Minnesota; Victim/Witness Specialists Selina Kolsrud and Christina Busse for the District of Minnesota; and Litigation Support Specialist Daniel Czapko for the District of Minnesota.

The Attorney General’s Award for Distinguished Service is the Department’s second highest award for employee performance; there are 13 Distinguished Service Awards for 2022.

The first Distinguished Award for 2022 is presented to Deputy Chief Barbara “Bobbi” Bernstein of the Civil Rights Division’s Criminal Section; Assistant U.S. Attorney Tara Lyons for the Southern District of Georgia; FBI Special Agents Jeffrey Roberts, Marcus Griffin, and Skylar Barnes; Investigator Steven Harrell of the Civil Rights Division; Paralegals Taylore Thomas of the Civil Rights Division and Tracy Long for the Southern District of Georgia; Victim Witness Coordinators Kellie Wiggins and Iverna Campbell for the Southern District of Georgia; FBI Staff Operations Specialist Maria Pagan; Special Litigation Counsel Christopher J. Perras of the Civil Rights Division; and FBI Intelligence Analyst Amy Vaughan.

The second Distinguished Award for 2022 is presented to Supervisory Special Agents Michael D. Muller and Kerry M. Whitmore of the Drug Enforcement Administration (DEA), DEA Diversion Investigator Jessica A. Stransky-Chrisman; Assistant U.S. Attorneys Nicolas Roos, Alexandra Rothman, Louis Pellegrino, Stephanie Lake, and Thomas Burnett for the Southern District of New York; DEA Special Agent George J. Burdzy; DEA Diversion Investigators Kathleen M. Whitmore, Brittany G. Korines, and Christine L. Barnes; and DEA Staff Coordinator William J. Kivelehan.

The third Distinguished Award is presented to Assistant U.S. Attorneys Kenneth S. Clark, Zachary Stendig, and Anatoly Smolkin for the District of Maryland; FBI Special Agent Alicia C. Zimmerman, FBI Task Force Officer Detective Tara Baione Augustin, FBI Task Force Officer Kyrie Yackovich, FBI Staff Operations Specialist John Coward II; Special Agent Kimmesia Sampson of the Department of Homeland Security (DHS), Homeland Security Investigations (HSI).

The fourth Distinguished Award is presented to Trial Attorneys Matthew J. McKenzie and S. Derek Shugert of the National Security Division; Assistant U.S. Attorneys Jarod J. Douglas for the Northern District of West Virginia and Jessica Lieber Smolar for the Western District of Pennsylvania; FBI Special Agents Jason Serone, Justin Van Tromp, and Peter L. Olinits; FBI Supervisory Special Agent Andrew Bass Gray; FBI Unit Chief Andrew Thomas Mitchell; Special Agent John C. Nocella of the Naval Criminal Investigative Service (NCIS); FBI Intelligence Analyst Brent Cronce; FBI Staff Operations Specialist Vicky Mineard; FBI Supervisory Special Agent David Brassini; FBI Supervisory Investigative Specialist Keith Smith; and FBI Intelligence Analyst Sean Cottington.

The fifth Distinguished Award is presented to Acting Director Katherine Harman-Stokes of the Office of Privacy & Civil Liberties; Deputy Assistant Attorneys General Richard Downing and Bruce Swartz of the Criminal Division; Associate Director Sheri Shepherd-Pratt of the Criminal Division’s Office of International Affairs; Assistant Deputy Chief Erica O’Neil of the Criminal Division’s Computer Crime and Intellectual Property Section; Senior Counsels Benjamin Fitzpatrick and Kenneth Harris of the Criminal Division; and Attorney Advisor Hannah Mayer of the Criminal Division.

The sixth Distinguished Award is presented to Supervisor Deputy U.S. Marshal Jerry Viera; Deputy U.S. Marshals Teddy Josh Moff, Brady M. Flannigan, Troy W. Oberly, and Kyle L. Perry; and Task Force Officers Brandon J. Bansemer and Truman S. Wiles of the U.S. Marshals Service (USMS).

The seventh Distinguished Award is presented to Director John Patrick Glynn of the Civil Division’s Environmental Torts Section.

The eighth Distinguished Award is presented to First Assistant U.S. Attorney Raj Parekh for the Eastern District of Virginia; Assistant U.S. Attorneys Aidan Taft Grano-Mickelsen, Dennis M. Fitzpatrick, and John T. Gibbs for the Eastern District of Virginia; Trial Attorney Alicia H. Cook of the National Security Division; Paralegal Specialist Nicole M. Lopez for the Eastern District of Virginia; Victim-Witness Coordinator Jennifer A. Donnarumma for the Eastern District of Virginia; FBI Supervisory Special Agent John M. Chiappone; FBI Special Agents Brian D. Czekala, Daniel P. O’Toole, William H. Heaney, and Julius F. Nutter; FBI Intelligence Analyst Edward R. Laney; Command Judge Advocate Elisabeth L. Gilman of the Department of Defense; and Associate Deputy General Counsel Michael D. Vozzo of the Department of Defense.

The ninth Distinguished Award is presented to Assistant U.S. Attorneys Kriss R. Basil, Alexia R. DeVincentis, Stephen E. Frank, Kristen A. Kearney, Justin D. O’Connell, Ian J. Stearns, Leslie A. Wright, and Carol E. Head for the District of Massachusetts, Financial Investigator Lauren M. George for the District of Massachusetts, FBI Special Agents Laura C. Smith, Kaitlyn A. Cedrone, Keith T. Brown, and Chris Giankura; IRS Special Agent Elizabeth A. Keating; and Special Agent Mark G. Deckett of the Department of Education Office of Inspector General.

The 10th Distinguished Award is presented to FBI Assistant Special Agent in Charge Andrew P. Patchman; FBI Supervisory Special Agent Edward A. Panetta; FBI Special Agents Raymond Esposito and Keri A. Shannon; FBI Staff Operations Specialists Amanda Rossi and Samir Taslaman; FBI Language Specialist Dragan Minic; FBI Assistant Legal Attaches Veh Bezdikian and Justin Hefner; Assistant U.S. Attorneys Joshua Hafetz, J. Matthew Haggans and Saritha Komatireddy for the Eastern District of New York; Paralegal Specialist Huda Abouchaer for the Eastern District of New York; and DHS Special Agent/Task Force Officer Charles M. Reich.

The 11th Distinguished Award is presented to Attorney-Advisors Christopher Clements, Megan Fluckiger, Alice Jou, Tyler Wood, and Stephen Buckingham of the National Security Division; Ryan Watzel of the Office of Legal Counsel; and FBI Intelligence Analyst Mike Granzini.

The 12th Distinguished Award is presented to Special Agent in Charge Matthew J. Nutt of the Office of the Inspector (OIG); OIG Program Manager Mark E. Gray; OIG Special Agent Rolando Ortiz-Rodriguez; Senior Counsel to the Inspector General Karen Rich, Office of the Inspector General.

The 13th Distinguished Award is presented to Chief of the Criminal Appeals Division David C. James for the Eastern District of New York.

The Attorney General’s Award for Exceptional Heroism recognizes a remarkable act of bravery and risk of life while performing official duties. Two Exception Herrorism Awards are presented this year.

The first Award for Exceptional Heroism is presented posthumously to DEA Group Supervisor Michael G. Garbo; DEA Special Agent Steven J. Fox; DEA Detective/Task Force Officer Gabe A. Lopez of the Tucson Police Department; Sergeant/Task Force Officer Jesse Chamberlain of the Tucson Police Department; and Officer/Task Force Officer Phillip M. Hengsteler Chamberlain of the Tucson Police Department.

The second Award for Exceptional Heroism is presented to USMS Senior Inspector Michael Cundiff.

The Edward H. Levi Award for Outstanding Professionalism and Exemplary Integrity pays tribute former Attorney General Edward H. Levi by honoring an individual whose service to the Department exemplifies these qualities. The 2022 recipient of this award is Appellate Litigation Counsel Michael S. Raab of the Civil Division.

The Mary C. Lawton Lifetime Service Award recognizes employees who have served at least 20 years in the Department and who have demonstrated high standards of excellence and dedication throughout their careers. This award is presented only in exceptional circumstances to those individuals of special merit and is not awarded to express general appreciation for tenure alone. Two Mary C. Lawton Awards are presented for 2022.

The first Mary C. Lawton Lifetime Service Award is presented to Acting Deputy Chief Gerald A. Toner of the Criminal Division’s Organized Crime and Gang Section.

The second Mary C. Lawton Lifetime Service Award is presented posthumously to Deputy Chief Nathaniel Douglas of the Environment and Natural Resources Division’s Environment Enforcement Section.

The William French Smith Award for Outstanding Contributions to Cooperative Law Enforcement recognizes state and local law enforcement officials who have made significant contributions to cooperative law enforcement endeavors. The 2022 recipients of this award are Assistant Special Agents in Charge Richard Dial and Jason Seacrist of the Georgia Bureau of Investigation.

The Attorney General’s Award for Exceptional Service in Indian Country recognizes extraordinary efforts by Justice Department employees that demonstrate the Department’s commitment to fight crime in Indian Country. The award is presented to DEA Supervisory Special Agent Mihajlo D. Zivkovic; DEA Special Agents Daryl A. Iannillo, Christopher H. Salyer, and Virginia W. Foster; DEA Task Force Officer Preston H. Brogdon; Officer Tyler Bond of the Yavapai Apache Police Department; Detective Rex Van Ausdall of the Yavapai Apache Police Department; Detective Sergeant Steve Gunis of the Yavapai Apache Police Department; and Chief Nathan Huibregtse of the Yavapai Apache Police Department.

The Attorney General’s Award for Excellence in Law Enforcement recognizes outstanding professional achievements by law enforcement officers within the Justice Department. Two Excellence in Law Enforcement Awards are presented for 2022.

The first Award for Excellence in Law Enforcement is presented to DEA Special Agents Adam J. Cirillo, Adrian M. Owens, Kelly Y. Chang, Kelly D. Webster, Kevin D. Novick, Silvana M. Restrepo, Trenton L. Shaffer, and Tiffany Hsieh; and DEA Intelligence Analyst Diana D. Wu.

The second Award for Excellence in Law Enforcement is presented to FBI Supervisory Special Agent Margaret Mande; FBU Special Agent Jose M. De La Sierra; FBI Special Agent William Lewis Donaldson III; and Supervisory Officer/Task Force Officer Daniel Jose Gonzalez of the Customs and Border Protection (CBP).

The Attorney General’s Award for Excellence in Management recognizes outstanding administrative or managerial achievements which have significant improved operations, productivity, or reduced costs. The award is presented to Director for Strategic Planning and Performance Staff Robin S. Funston of the Justice Management Division; Senior Performance Advisor Tennille R. Nance of the Justice Management Division; Senior Evaluation Advisor Russell C. Burnett of the Justice Management Division; Senior Advisor for Enterprise Risk Management Debra R. Williams of the Justice Management Division; Program Analyst Marita J. La Palm of the Justice Management Division; Senior Counsel Sonja M. Ralston of the Office of the Deputy Attorney General; and Special Advisor Apiyo Oloya of the Office of the Deputy Attorney General.

The Attorney General’s Award for Excellence in Information Technology recognizes exceptional achievement in applying information technology to enhance Department operations, maintain efficiency, and solve problems. This award is presented to FBI Information Technology Specialists Angela S. Epperly, Chad E. Elliott, Dennis G. Klingensmith, Donald Carpenter Jr., Dustin Tawney, Gregory A. Wood, James D. Marple, James M. Murray, Matthew L. Groves, Nicholas Daniel Fleming, Richard L. Whitescarver, Tonya Nicole Church, and Warren A. Morgan Jr.

The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security recognizes outstanding achievements and contributions towards protecting U.S. national security. This award is presented to Assistant U.S. Attorneys Fred Sheppard and Sabrina Feve for the Southern District of California; Chief of National Security and Cybercrimes John Parmley for the Southern District of California; FBI Special Agents Amy Poling, Adam James, Marina Shalfeyeva, Nicholas Arico, and Udell Hardy; and FBI Supervisory Special Agent Edison Constante. The Attorney General’s Award for Equal Employment Opportunity is the Department’s highest award for performance in support of the Equal Employment Opportunity Program. This award is presented to Special Assistant Erika Pugh of the Office of the FBI Deputy Director; FBI Supervisory Management and Program Analysts Janelle Anite Jones and Joshua Lyn Curry; FBI Management and Program Analysts Kathleen Ann Oltman, Kourtney Pearson, and Amanda L. Carroll; and FBI Special Advisor/Management and Program Analyst Apiyo Oloya.

The Attorney General’s Award for Excellence in Legal Support recognizes outstanding achievements in the field of legal support to attorneys by paralegal specialists and other legal assistants.

The first award for Excellence in Legal Support – Paralegal Support is presented to Litigation Technology Case Manager Amanda J. Reinken of the Tax Division.

The second award for Excellence in Legal Support – Legal Assistance Support is presented to Data Analyst Patrick Gifford of the Criminal Division.

The Attorney General’s Award for Excellence in Administrative Support recognizes outstanding performance in administrative or managerial support by administrative employees or secretaries. This award is presented to Administrative Services Specialist Rae N. Ross of the Justice Management Division.

The Claudia J. Flynn Award for Professional Responsibility recognizes a Department attorney who has made significant contributions in the area of professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that Department attorneys carry out their duties in accordance with the rules of professional conduct. The award is presented to Senior Associate Counsel William J. Birney of the Office of Professional Responsibility.

The Attorney General’s Award for Fraud Prevention recognizes exceptional dedication and effort to prevent, investigate, and prosecute fraud, white collar crimes, and official corruption. The award is presented to Assistant U.S. Attorneys Brooke C. Watson and Nicole Grosnoff for the Southern District of Florida and Dina McLeod for the Southern District of New York; Special Agents David Brant of the Federal Deposit Insurance Corporation; Special Agent Tyreek Brown of the U.S. Secret Service; Special Agents Sara Oliver, Sandip Singh, and Simon Dinitis of the Small Business Administration; Special Agent Ramon De Leon of the Social Security Administration; FBI Special Agents Adam Dixon and Zac Effting; and General Analyst Larry Alfonso of the U.S. Postal Inspection Service.

The Attorney General’s Award for Outstanding Contributions to Community Partnerships for Public Safety recognizes excellent achievement in the development and support of community partnerships designed to address public safety within a community. The award recognizes the significant contributions of citizens and organizations that have assisted the Department in the accomplishment of these programs. This award is presented to Deputy U.S. Marshal Albert Maresca Jr.

The Attorney General’s Award for Outstanding Contributions by a New Employee recognizes exceptional performance and notable accomplishments towards the Department’s mission by an employee with fewer than five years of federal career service. The 2022 award is presented to Appellate Trial Attorney Daniel L. Winik of the Civil Division.

The John Marshall Awards are the Department’s highest awards presented to attorneys for contributions and excellence in specialized areas of legal performance. Ten awards in eight categories are presented this year.

The first John Marshall Award for Trial of Litigation is presented to Deputy Chiefs Alixandra E. Smith and Jennifer E. Ambuehl of the Criminal Division’s Money Laundering and Asset Recovery Section; Co-Principal Deputy Chief Brent Wible of the Criminal Division’s Fraud Section; and Assistant U.S. Attorneys Drew G. Rolle and Dylan Stern for the Eastern District of New York.

The second John Marshall Award is presented to Acting Chief Saritha Komatireddy for the Eastern District of New York’s International Narcotics and Money Laundering Section and Assistant U.S. Attorneys Alexander F. Mindlin and Artie McConnell for the Eastern District of New York.

The third John Marshall Award for Participation in Litigation is presented to Deputy Chief Rachael Tamar Hagler of the Civil Rights Division’s Housing and Civil Enforcement Section; Trial Attorneys Erin Meehan Richmond, Kathryn Legomsky, and Natasha Babazedeh of the Civil Rights Division; and Assistant U.S. Attorneys Michael Campion and Susan Millenky for the District of New Jersey.

The fourth John Marshall Award for Support of Litigation is presented to Senior Counsel Jared S. Hosid of the Criminal Division; Assistant U.S. Attorneys Emily Miller for the District of Columbia, Geoffrey Barrow for the District of Oregon, and Marcus Busch for the Northern District of Texas; National Criminal Discovery Coordinator Andrew Goldsmith of the Office of the Deputy Attorney General; Legal Administrative Officer Caitlin Grzymala of the Antitrust Division; FBI Associate Division Counsel Vicki Wilson; Litigation Technology Coordinator Susan Cooke of the Executive Office for U.S. Attorneys; Information Technology Program Manager Mustafa Edrisy of the Justice Management Division; Information Technology Program Manager John Brandon Platt of the Executive Office for U.S. Attorneys; Information Technology Specialist Maisha Treadwell of the National Security Division; FBI Supervisory Special Agent Joshua Taylor; FBI Assistant Special Agent in Charge Jennifer Runyan; Information Technology Specialist Joshua Ellen for the Western District of North Carolina; Paralegal Specialist Cassi Wiseman of the Antitrust Division; and Litigation Chief Karen McColman of the National Security Division’s Technology Support Services.

The fifth John Marshall Award for Handling of Appeals is presented to Appellate Trial Attorney Lindsey Powell of the Civil Division.

The sixth John Marshall Award for Providing Legal Advice is presented to Special Counsel Rosemary A. Hart of the Office of Legal Counsel; Senior Counsels Laura E. Heim and Nathan Forrester of the Office of Legal Counsel; Counsel Nicholas Nasrallah of the Office of Legal Counsel; and Attorney-Advisors James A. Durling, Amin Aminafar, Janine S. Balekdijan, Kevin J. Barber, Conor J. Clarke, Conor J. Craft, Adam Grogg, Kelley Brooke Hostetler, Anjali Motgi, and Ryan Watzel of the Office of Legal Counsel.

The seventh John Marshall Award for Preparation or Handling of Legislation is presented to Chief Sarah Dorsey of the Criminal Division’s Policy Unit; and Attorney-Advisors Molly Cusson and Susan Schneider of the Criminal Division.

The eighth John Marshall Award for Asset Forfeiture is presented to Section Chief Seth M. Barsky of the Environment and Natural Resources Division’s Wildlife and Marine Resources Section; Assistant Section Chief Meredith L. Flax of the Environment and Natural Resources Division’s Wildlife and Marine Resources Section; Senior Attorney Mary E. Hollingsworth of the Environment and Natural Resources Division; Trial Attorneys Briena L. Strippoli and Devon L. Flanagan of the Environment and Natural Resources Division; Chief Susan S. Brandon for the Eastern District of Oklahoma’s Civil Division; Assistant U.S. Attorney Michael J. O’Malley for the Eastern District of Oklahoma; Senior Policy Advisor Darrin L. McCullough of the Criminal Division; Assistant Section Chief Jennifer L. Crane of the USMS’ Asset Forfeiture Division; USMS Property Management Specialist Cynthia L. Bridges; and USMS Assistant Chief Inspector Sean M. Xuereb.

The ninth John Marshall Award for Alternative Dispute Resolution is presented to Assistant U.S. Attorneys Andrew M. Soler, David Z. Moskowitz, Katherine A. Ross, Jacob Licht, and Nicholas A. Deuschle for the District of Colorado.

71st Annual Attorney General’s Awards – 2023

The Attorney General’s David Margolis Award for Exceptional Service is the highest award granted by the Attorney General within the Justice Department. The 2023 award is presented to Director Hilary Axam of the Civil Rights Division’s Human Trafficking Prosecution Unit; Deputy Director William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit; Assistant U.S. Attorneys Melinda Williams, Laura Provinzino, Craig Baune, and David Genrich for the District of Minnesota; Paralegal Stefnie Braun for the District of Minnesota; Victim/Witness Specialist Selina Kolsrud for the District of Minnesota; Litigation Support Specialist Daniel Czapko for the District of Minnesota; Supervisory Litigation Support Specialist Mark Zeitz for the District of Minnesota; HSI Supervisory Special Agent Tonya Price; IRS Special Agent John Tschida; and Special Agent Kevin Sullivan of the Minnesota Department of Commerce.

The Attorney General’s Award for Distinguished Service is the second highest Justice Department award granted by the Attorney General. There are 16 Distinguished Service Awards presented in 2023.

The first Distinguished Service award is presented to Deputy Assistant Director Andrew R. Lange of the Bureau of Alcohol, Tobacco and Firearms (ATF)’s Enforcement Programs and Services; Chief Vivian S. Chu of the ATF’s Office of Regulatory Affairs;           ATF Senior Economist Jeana L. Davalos; ATF Regulations Writers Helen L. Koppe and Denise R. Brown; ATF Senior Policy Counsel Eric M. Epstein; ATF Associate Chief Counsel James P. Vann; ATF Deputy Associate Chief Counsel Jonathan S. Jacobs; ATF Senior Counsel Melissa A. Anderson; ATF Firearms & Ammunition Chief William J. Ryan; ATF Chief Counsel Pamela J. Hicks.

The second Distinguished Service award is presented to Economists Malika Krishna and Jessica C. Stahl of the Antitrust Division; Trial Attorneys Ihan Kim, Jessica Leal, Brittney A. Dimond, Sarah Licht, Jon Goldsmith, Bennett Matelson, Collier Kelley, John P. Read, Kevin Krautscheid, Lauren Riker, Ethan Stevenson, and Robert Vance of the Antitrust Division; and Senior Litigation Counsel Jeffrey Vernon of the Antitrust Division.

The third Distinguished Service award is presented to Deputy Assistant Attorney General Sarah E. Harrington of the Civil Division; Appellate Litigation Counsel Michael S. Raab of the Civil Division; Senior Appellate Counsel Alisa B. Klein of the Civil Division; Assistant Branch Directors Eric B. Beckenhauer and Julie Straus Harris of the Civil Division’s Federal Programs Branch; Assistant Director Hilary K. Perkins of the Civil Division’s Consumer Protection Branch; Appellate Attorney Cynthia A. Barmore of the Civil Division; Trial Attorneys Christopher A. Eiswerth, Kate Talmor, Emily B. Nestler, Noah T. Katzen, Scott P. Kennedy, Oliver J. McDonald, and Isaac C. Belfer of the Civil Division; Assistants to the Solicitor General Luke McCloud and Erica Ross; Special Counsel Daniel S. Schwei of the Civil Division; Counsel Kathleen A. Choi of the Civil Division; Attorney-Advisor Naomi Gilens of the Office of Legal Counsel; and Senior Trial Counsel Amy D. Kossak of the Civil Division.

The fourth Distinguished Service award is presented to Trial Attorneys Christen Gallagher and Alison Zitron of the Criminal Division; FBI Special Agents Bryan Hamaker, Delaney Jester, Paul Rey, Justin Crenshaw, and Timothy Callinan; Assistant Deputy Chief William Hall and Deputy Chief James Silver of the Criminal Division’s Computer Crime and Intellectual Property Section; Assistant U.S. Attorneys Chauncey Bratt for the Middle District of Florida and Jonathan Keim and Zoe Bedell for the Eastern District of Virginia; FBI IT Specialist Angel V. Nanov; FBI Supervisory Special Agent Ryan J. Leszczynski; and Cyber Operations International Liaison Louisa Becker of the Criminal Division.

The fifth Distinguished Service award is presented to Deputy Chief Elizabeth E. McDonald of the Civil Rights Division’s Disability Rights Section; Trial Attorneys Lindsey M. Weinstock, Hans Justin Park, James V. Fletcher, Lauren M. Latterell Powell, Jillian R. Lenson, Amanda B. Pearlstein, Janelle J. Geddes, Nonny Onyekweli, Beth Esposito, and Nicole Kovite Zeitler of the Civil Rights Division; Program Specialist Sara Olsen of the Civil Rights Division; Assistant U.S. Attorney Veronica Harrell James for the Southern District of Florida; Litigation Support Specialist Justin Fields-Gray of the Civil Rights Division; and Paralegal Specialist Krysten Diaz-Silveira of the Civil Rights Division.

The sixth Distinguished Service award is presented to Supervisory Assistant U.S. Attorneys Gregory McDonald and Ian Hanna for the Western District of Texas; Assistant U.S. Attorney Patricia Acosta for the Western District of Texas; Trial Attorneys Timothy Visser and Kyle Boynton of the Civil Rights Division; Trial Attorney Michael Warbel of the Criminal Division; Deputy Chief Forrest Christian of the Civil Rights Division’s Criminal Section; Victim Witness Coordinator Gloria Gonzalez for the Western District of Texas; FBI Special Agents Eddie Dominguez, Christina Papp, and America Guevara; FBI Victim Specialists Jennifer Romero, and Kelly Murphy; ATF Special Agent Nate Anderson; and FBI Task Force Officer Brandon Speed.

The seventh Distinguished Service award is presented to DEA Group Supervisors Eric Jolley and Elvis Hugee and DEA Special Agents Brent Ramos, Peter Kinyoun, Rochelle Cup-Choy, Alexander Pearlstone, Audrey Alaniz, Michael Sier, and Eric Kischer.

The eighth Distinguished Service Award is presented to Senior Attorney Gabriel M. Allen of the Environmental and Natural Resources Division; Attorney-Advisor Katherine A. Abend of the Environmental and Natural Resources Division; Assistant Section Chief Lori B. Jonas of the Environmental and Natural Resources Division’s Environmental Enforcement Section; Community Outreach Specialist Brenda J. Horner of the Environment and Natural Resources Division; Director Cynthia M. Ferguson Environmental and Natural Resources Division’s Office of Environmental Justice; Chief Angela Givens Williams for the Southern District of Mississippi’s Civil Division; Paralegal Specialist Minnie V. Becton of the Environment and Natural Resources Division; Senior Counsels Karl J. Fingerhood and Angela Mo of the Environment and Natural Resources Division; Assistant U.S. Attorney Mitzi Dease Paige for the Southern District of Mississippi; and Lead Conciliation Specialist for Region IV Walter L. Atkinson of the Community Relations Services.

The ninth Distinguished Service Award is presented to Assistant U.S. Attorneys Saritha Komatireddy, Philip Pilmar, and Adam Amir for the Eastern District of New York; Deputy Chief Erin Reid for the Eastern District of New York’s Civil Rights Section; Chief Ryan Harris of the Eastern District of New York’s Public Integrity Section; Paralegal Specialists Huda T. Abouchaer and Melissa Bennett for the Eastern District of New York; Special Agent George Dietz for the Eastern District of New York; FBI Special Agent Paul West; DEA Special Agents Jason Franks, James Cain, and John Muglia; and HSI Special Agents Damian Mazzaferro, Jimmy Cepeda, and Scott Vogel.

The 10th Distinguished Service Award is presented to Assistant U.S. Attorneys Kathryn Rakoczy, Jeffrey Nestler, Alexandra “Alex” Hughes, Jocelyn Ballentine, and Troy A Edwards Jr. for the District of Columbia; FBI Special Agents Michael Palian, Sylvia Hilgeman, Joanna Abrams, Byron Cody, Kelsey Harris, John D. “Jack” Moore, Adam K. Pope, and Justin T. Eller; FBI Intelligence Analyst Katherine Riley Prendergast; Paralegal Specialist Amanda Rohde for the District of Columbia; Victim/Witness Program Specialist Yvonne Bryant for the District of Columbia; and FBI Supervisory Special Agent Jennifer Banks.

The 11th Distinguished Service Award is presented to Assistant U.S. Attorneys Jason B.A. McCullough and Erik M. Kenerson for the District of Columbia and Nadia Moore for the Eastern District of New York; Trial Attorney Conor Mulroe of the Criminal Division; FBI Special Agents Nicholas Hanak, Kathryn Camiliere, Anthony J. “A.J.” Needler, Peter R. Dubrowski, Nicole Miller, and Brandon Camiliere; FBI Tactical Specialist Rebecca Corazzi; FBI Intelligence Analyst Brian M. Lizana; and FBI Senior Digital Forensic Examiner Jennifer Kathryn Cain.

The 12th Distinguished Service Award is presented to FBI Special Agents David B. Bannan, Steven M. Dixon, Melissa M. Fair, Deana M. Jones, Ashley T. Kakareka, Brian Sharrow, and Jason R. Maslow; FBI Staff Operations Specialist Tawnya Delarosa; FBI Intelligence Analysts Kris Hemme and Stacy Hamilton; FBI Legal Assistant Thomas Donnelly; FBI Task Force Officer Andrew Maurer; Chief Cherie Krigsman for Middle District of Florida’s National Security Section; and Assistant U.S. Attorney Risha Asokan for the Middle District of Florida.

The 13th Distinguished Service Award is presented to FBI Special Agents Ryan Boron, Nicholas Milan, and Thomas H. Lipp; Special Agent Christopher O’Neill of the Department of Commerce; FBI Supervisory Special Agents Calvin R. Davis and Steven Jefferson; FBI Staff Operations Specialists Alexander J. Kornberger and Kathryn McCool; FBI Forensics Accountant Jordanna A. Lubelli; FBI Assistant Legal Attache Jonathan R. Schmidt, Assistant U.S. Attorneys Artie McConnell and Madeline O’Connor for the Eastern District of New York; Trial Attorney Scott A. Claffee of the National Security Division; Justice Department Attache Josh Cavinato of the Office of International Affairs.

The 14th Distinguished Service Award is presented to OIG Special Agent Lyeson T. Daniel; OIG Assistant Special Agents in Charge Dennis E. Matulewicz Jr., Ryan T. Geach and H. Jeremy Horne; OIG Deputy Assistant Inspector General Sandra D. Barnes; and Senior Counsel to the Inspector General Erin Aslan.

The 15th Distinguished Service Award is presented to Deputy Solicitor General Edwin S. Kneedler; Appellate Trial Attorneys Amber B. Blaha and Mary Gabrielle Sprague of the Environment and Natural Resources Division; Assistant to the Solicitor General Frederick Liu; Chief S. Craig Alexander of the Environment and Natural Resources Division’s Indian Resources Section; Assistant Appellate Section Chiefs William B. Lazarus and Rachel E. Heron of the Environment and Natural Resources Division; Attorney-Advisor Christine W. Ennis of the Environment and Natural Resources Division; Deputy Assistant Attorney General Gina L. Allery of the Environment and Natural Resources Division; Director Tracy Toulou of the Office of Tribal Justice; and Deputy Director JoAnn L. Kintz of the Office of Tribal Justice.

The Attorney General’s Award for Exceptional Heroism is designed to recognize an extraordinary act of courage or voluntary risk of life during the performance of duty. One Exceptional Heroism Award is presented to ATF Special Agent Adam R. Daniels.

The Edward H. Levi Award for Outstanding Professionalism and Exemplary Integrity is established to pay tribute to the memory and achievements of former Attorney General Edward H. Levi, whose career as an attorney, law professor, and dean and public servant exemplified these qualities in the best traditions of the Department. In 2023, one Edward H. Levi Award is presented to Deputy Assistant Attorney General George Z. Toscas of the National Security Division.

The Mary C. Lawton Lifetime Service Award recognizes employees who have served at least 20 years in the Department and who have demonstrated high standards of excellence and dedication throughout their careers. This award is presented only in exceptional circumstances to those individuals of special merit and is not awarded to express general appreciation for tenure alone. Two Mary C. Lawton Awards are presented for 2023.

The first Mary C. Lawton Lifetime Service Award is presented to ATF Senior Counsel to the Director Joseph J. Allen.

The second Mary C. Lawton Lifetime Service Award is presented to Section Chief Steven H. Rosenbaum of the Civil Rights Division’s Special Litigation Section.

The William French Smith Award for Outstanding Contribution to Cooperative Law Enforcement was established to pay tribute to the memory and achievements of former Attorney General William French Smith for his establishment of Law Enforcement Coordinating Committees (LECCs), and his outstanding efforts in promoting law enforcement cooperation and coordination throughout the nation. It is designed to recognize state and local law enforcement officials who, through their participation in cooperative interagency efforts, have made significant contributions to law enforcement endeavors and objectives. This award is presented to DEA Task force Officer Jason Pearce-Best.

The Attorney General’s Award for Meritorious Public Service is the top public service award granted by the Department and is designed to recognize the most significant contributions of citizens and organizations that have assisted the Department in the accomplishment of its missions and objectives. This award is presented to District Attorney Summer Stephan for the County of San Diego California.

The Attorney General’s Award for Exceptional Service in Indian Country is designed to recognize extraordinary efforts to demonstrate the Department's commitment to fight crime in Indian Country.

The first Award for Exceptional Service in Indian Country is presented to Victim Assistant Specialists Brandi Duvall, Taelyn Langford, and Karriem Harris for the Northern District of Oklahoma.

The second Award for Exceptional Service in Indian Country is presented to Supervisory Grants Management Specialists Anne Hamilton and LeBretia White of the Office of Justice Programs; Principal Deputy Director Katherine Darke Schmitt of the Office of Justice Programs; and Grant Management Specialists Jessica Andrew, Mary Atlas-Terry, Yolanda Curtis Gibson, Dawn Hill, Tanya Miller, Ramesa Pitts, Alexis Polen, Barbara L. Robertson, Carmen Santiago Roberts, Lori Gardner, Jenny Semanta Stancell, and Kimberly R. Woodard of the Office of Justice Programs.

The Attorney General’s Award for Excellence in Management is designed to recognize outstanding administrative or managerial achievements which have significantly improved the operations or productivity of the Department or have reduced costs. This award is presented to Director Christian C. Alvarez of the Justice Management Division’s Finance Staff; Deputy Director Matthew J. Roper of the Justice Management Division’s Finance Staff; Associate Directors Jeffrey D. Pullen and Nathaniel H. Wheeler of the Justice Management Division’s Finance Staff; Assistant Directors Marc Berlove and Vu C. Truong of the Justice Management Division’s Finance Staff; Finance Management Specialists Dara L. Sabanosh and Catherine Green-Lee of the Justice Management Division; Systems Accountant Jocelyn M. Harris of the Justice Management Division; Supervisory IT Specialist Leon Braddell of the Justice Management Division; and IT Specialists Giles T. Welles, Vincent B. Anderson, and Reena J. Shah of the Justice Management Division; and IT Specialist Jerome K. Milligan of the Justice Management Division.

The Attorney General’s Award for Excellence in Information Technology is designed to recognize outstanding achievements in applying information technology to improve the operations or productivity of the Department, reduce or avoid costs, or solve problems. Two Awards for Excellence in Information Technology are presented this year.

The first Award for Excellence in Information Technology is presented to Special Assistant to the Assistant Director Edward Stely in the ATF’s Office of Enforcement Programs and Services; ATF Special Agent Cassandra Mullins; ATF Assistant Special Agent in Charge Robert Maynard; ATF Intelligence Research Specialist Stacie Alvey of the Louisville Field Division; ATF Acting Branch Chief Carl A. O’Day of the Application Development Branch; and Colonel Philip Burnette Jr. and Lieutenant Colonel Larry Newton of the Kentucky State Police.

The second Award for Excellence in Information Technology is presented to DEA Chief Information Officer Nick Ward; Senior Counsel Leonard Bailey of the Criminal Division; FBI Supervisory Special Agent Michael Bettine; Attorney Advisor Gabriel Slater of the National Security Division; Deputy Cyber Chief Sean Newell of the National Security Division; and Chief Information Security Officer Vu Nguyen of the Justice Management Division; Deputy Chief Information Security Officer Kevin Yasuda of the Justice Management Division; and Acting Assistant Director Larry Tun of the Justice Management Division’s Office of the Chief Information Officer.

The Attorney General’s Award for Excellence in Furthering the Interests of U.S. National Security is designed to recognize a special act or service by a Department employee who has greatly contributed to protecting U.S. national security. The 2023 award is presented to FBI Computer Scientist Michael R. Berger; FBI Staff Operations Specialist Katherine Miles; FBI Intelligence Analyst Laci Falk; FBI Special Agents Chad R. Loewenstine, Jason Moore, Jonathan R. Perlstein, Martin A. Quintana, Justin H. Rowland and Taylor M. Forry; FBI Intelligence Analysts Adam E. Foster and Alec T. Hass Cyber Division; and Assistant U.S. Attorney Ian Richardson for the District of New York.

The Attorney General’s Award for Equal Employment Opportunity is designed to recognize significant contributions to the Equal Employment Opportunity Program. This award is presented to Director Richard Toscano of the Justice Management Division’s Equal Employment Opportunity Staff; Special Assistant to the Executive Officer Elizabeth D. Preston of the Tax Division’s Office of Management and Administration; and Assistant Section Chief Michelle O. Rindone of the Antitrust Division’s International Section.

The Attorney General’s Award for Excellence in Legal Support is designed to recognize outstanding achievements in the field of legal support to attorneys. The award for Excellence in Legal Support – Paralegal Support is presented to Paralegal Specialist Anna Rogers of the Criminal.

The award for Excellence in Legal Support – Legal Assistance Support is presented to Legal Assistant Debra L. Nash for the Northern District of Iowa.

The Attorney General’s Award for Excellence in Administrative Support recognizes outstanding performance in administrative or managerial support by administrative employees or secretaries. There are two Excellence in Administrative Support Awards this year.

The first Award for Excellence in Administrative Support is presented to Lead Management Analyst Catherine M. Murray of the Criminal Division’s Office of International Affairs.

The second Award for Excellence in Administrative Support is presented posthumously to IT Specialist Hector Radhames Gonzalez for the District of Massachusetts.

The Attorney General’s Award for Excellence in Administrative Support – Non-Legal Secretarial is designed to recognize outstanding administrative or managerial achievements. This award is presented to Psychology Secretary Christa A. Butler of Federal Correctional Institution – Schuylkill, Pennsylvania.

The Claudia J. Flynn Award for Professional Responsibility is designed to recognize a Department attorney who has made significant contributions in professional responsibility by successfully handling a sensitive and challenging professional responsibility issue in an exemplary fashion and/or leading efforts to ensure that Department attorneys carry out their duties in accordance with the rules of professional conduct.

The first Claudia J. Flynn Award for Professional Responsibility is presented to Assistant U.S. Attorney and Senior Litigation Counsel Peter Ko for the Southern District of California.

The second Claudia J. Flynn Award for Professional Responsibility is presented to Assistant Chief Jeremy Sanders of the Criminal Division’s Fraud Section; Victim-Witness Attorney Coordinator Brian Strang of the Criminal Division; Trial Attorney Gwendolyn Stamper of the Criminal Division; Senior Counsels Lauren Britsch Slater, Alissa Kempler, and Daniel Richenthal of the Criminal Division; Trial Attorneys Sonja Lauren Kupersmith and Anne Pings of the Criminal Division; Deputy Chief Alexandra Gelber of the Criminal Division’s Child Exploitation and Obscenity Section; Child Victim Witness Program Administrator Nicole Borello of Criminal Division; Attorney Advisor Molly Cusson of the Criminal Division; Appellate Attorney Sonja Ralston of the Criminal Division; and Assistant Deputy Chief Erica O’Neil of the Criminal Division’s Computer Crimes and Intellectual Property Section.

The Attorney General’s Award for Outstanding Service in Freedom of Information Act (FOIA) Administration is designated to recognize exceptional dedication to the implementation of the Freedom of Information Act. A Recipient’s actions through participation in the processes of FOIA administration should foster a spirit of openness in government and dedicated service to FOIA requesters. This award presented to Assistant U.S. Attorney Sarah S. Normand for the Southern District of New York.

The Attorney General’s Award for Fraud Prevention is designed to recognize those who have been involved with the prevention, investigation and prosecution of fraud and other white-collar crimes. This award is presented to Trial Attorneys James F. Bresnahan II, Lauren A. Darwit, Richard G. Rose, Harris J. Phillips, and Gregory E. Van Hoey of the Tax Division.

The Attorney General’s Award for Outstanding Contributions to Community Partnerships for Public Safety recognizes outstanding achievement in the development and support of community partnerships designed to address public safety within a community. The award recognizes extraordinary contributions to building collaborations that draw upon the skills and resources of a range of stakeholders within a community – including state and local community leaders, law enforcement, service providers, as well as local residents and representatives of the business community – in addressing public safety, crime prevention and control, community justice and other community-building and revitalization issues. This award is presented to FBI Supervisory Special Agent Kalon P. Fancher; FBI Supervisory Intelligence Analyst Ryan C. Summers; FBI Intelligence Analyst Donald L. Metzmeier; FBI Operational Support Technician Amelia M. Herrera; FBI Liaison Specialist John Bush; FBI Management and Program Analyst Russell J. Myers II; FBI Intelligence Analyst Nicolette G. Rose; FBI Native American Affairs Coordinator Dawn Begay of the City of Albuquerque; Task Force Chair Lynn Trujillo of the Department of Interior; Public Safety Answering Point Supervisor Reycita Billie of the Albuquerque Division of Public Safety; Special Agent in Charge Clarence Gibson of the New Mexico Attorney General’s Office; Assistant General Counsel Stephanie Salazar of the New Mexico Attorney General’s Office; Acting Commander Gerald Bartlett of the Albuquerque Police Department; Staff Lead Melody Delmar of the New Mexico Indian Affairs Department; Task Force Officer Darlene Gomez of the Albuquerque Law Offices of Darlene Gomez LLC.

The Cubby Dorsey Award for Outstanding Service by a Federal Wage Grade System Employee is designed to recognize extraordinary performance and contributions by wage grade system employees, including laborers, mechanics and skilled craft workers. The award is presented to Electrical Worker Foreman Charles D. Treadway II of the Federal Detention Center SeaTac.

The Attorney General’s Award for Outstanding Contributions by a New Employee is designed to recognize exceptional performance and notable accomplishments towards the Department’s mission by an employee with fewer than five years of service with the Department and federal government. This award is presented to Trial Attorney Nathan J. Bu of the Civil Division’s Environmental Torts Litigation Section.

The John Marshall Award, named for the fourth Chief Justice of the United States, recognizes outstanding professional achievement by attorneys of the Justice Department.

The first John Marshall Award for Trial of Litigation is presented to Assistant U.S. Attorneys Robert S. Leach, Kelly I. Volkar, John C. Bostic, and Jeffrey D. Nedrow for the Northern District of California.

The second John Marshall Award for Trial of Litigation is presented to Assistant U.S. Attorneys Elizabeth M. Yusi John, F. Butler, and E. Rebecca Gantt for the Eastern District of Virginia.

The third John Marshall Award for Participation in Litigation is presented to Senior Trial Counsel John Adam Bain of the Civil Division.

The fourth John Marshall Award for Participation in Litigation is presented to Co-Chiefs David J. Kennedy and Ellen Blain for the Southern District of New York’s Civil Rights Unit; Deputy Chief Christine S. Poscablo for the Southern District of New York’s Civil Rights Unit; and Assistant U.S. Attorney Jacob T. Lillywhite for the Southern District of New York.

The fifth John Marshall Award for Support of Litigation is presented to Senior Attorneys Paul Cirino and Leslie M. Hill of the Environment and Natural Resources Division; Trial Attorneys Lucy E. Brown and David M. Mitchell of the Environmental and Natural Resources Division; and Assistant Section Chief Martha C. Mann of the Environment and Natural Resources Division’s Environmental Defense Section.

The sixth John Marshall Award for Support of Litigation is presented to Trial Attorney Leigh P. Rendé of the Environment and Natural Resources Division.

The seventh John Marshall Award for Handling of Appeals is presented to Assistant U.S. Attorneys Laura Thomas Rivero and Michael Brenner for the Southern District of Florida.

The eighth John Marshall Award for Providing Legal Advice is presented to Special Counsel Laura Eddleman Heim of the Office of Legal Counsel; Attorney-Adviser Ryan N. Watzel of the Office of Legal Counsel; Director Mark R. Freeman of the Civil Division’s Appellate Staff; and Assistant Director Joshua M. Salzman Civil Division’s Appellate Staff.

The ninth John Marshall Award for Handling Legislation is presented to Special Master Mary Patrice Brown of the Criminal Division’s Money Laundering and Asset Recover Section; Attorney Advisors Barbara Gilmore, Regan Kruse, Jane Lee, Anish Mather, and Jacqueline Feil of the Criminal Division; Senior Legal Counsel James Curt Bohling of the Criminal Division; Chief Sarah B. Dorsey of the Criminal Division’s Policy Unit; Chief Jennifer Bickford of the Criminal Division’s Program Management and Training Unit; and Deputy Chief Matthew Colon of the Criminal Division’s Program Management and Training Unit.

The 10th John Marshall Award for Asset Forfeiture is presented to Chief Brent S. Wible of the Criminal Division’s Money Laundering and Asset Recovery Section; Principal Deputy Chief Margaret A. Moeser of the Criminal Division’s Money Laundering and Asset Recovery Section; Deputy Director Michael Khoo of the Criminal Division’s Money Laundering and Asset Recovery Section; Attorney Advisor Janice Nsor of the Office of Legislative Affairs; Deputy Assistant Attorney General Christina Calce of the Office of Legislative Affairs; Director Andrew C. Adams of Task Force KleptoCapture; Associate Deputy Attorney General L. Rush Atkinson of the Office of the Deputy Attorney General; Assistant U.S. Attorneys Thane Rehn, Jessica Greenwood, and Vladislav Vainberg for the Southern District of New York; and Deputy Director David Lim National Security Division’s Counterintelligence and Export Control Section.

The 11th John Marshall Award for Alternative Dispute Resolution is presented to Assistant Branch Director Carlotta P. Wells of the Civil Division’s Federal Programs Branch and Senior Trial Counsel Lisa A. Olson Civil Division.

The 12th John Marshall Award for Interagency Cooperation is presented to Senior Litigation Counsel John J. W. Inkeles of the Civil Division; Trial Attorney Mack J. Swan of the Civil Division; Senior Attorney Kim Kucik of the Immigration and Customs Enforcement’s Office (ICE); ICE Deputy Chief Counsel Kimberlee Krawchuk; ICE Assistant Chief Counsel Katerina Alexopolous; ICE Associate Legal Advisor Michael McVicker; ICE Special Agent Thomas Connors; and ICE Historian William Tomljanovich.

Guam Waterworks Authority (GWA) agreed to a consent decree with the United States today to improve the quality of its sewer system, estimated to cost approximately $400 million, to address unauthorized overflows of untreated sewage and other violations of the Clean Water Act. The Government of Guam is also a party to the agreement.

The United States filed a complaint alleging that GWA was in violation of provisions of the Clean Water Act and applicable permits by repeatedly discharging untreated sewage from its wastewater collection system and discharging excess pollutants from its wastewater treatment plants. At least 237 sanitary sewer overflows have occurred from GWA’s collection system since 2018. GWA has also been implementing Safe Drinking Water Act work and other Clean Water Act work under a 2011 federal court order.

“Today’s action shows our continuing commitment to prioritize enforcement and encourage environmental improvement in the communities most burdened by environmental harm,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “By improving Guam’s sewer system infrastructure, GWA can encourage and support better health for people and the environment and improve their ability to meet the challenges presented by a changing climate.”

“Sewer overflows can cause significant health and environmental problems in communities, which is why today’s settlement with Guam Water Authority is so essential,” said Assistant Administrator David M. Uhlmann of the Environmental Protection Agency's (EPA) Office of Enforcement and Compliance Assurance. “By improving sewer system operations and updating infrastructure, Guam will meet its legal obligations and be better prepared for the major storms that are likely to happen more frequently due to climate change.”

“Clean water is fundamental to public health,” said U.S. Attorney Shawn N. Anderson for the Districts of Guam and the Northern Mariana Islands. “Guam deserves an enhanced, modern infrastructure to ensure the continuing preservation of its natural resources and the health of our communities. The benefits of this agreement will be enjoyed by generations of residents and visitors on this beautiful island.”

The consent decree requires GWA to minimize overflows, which will have immediate benefits to the island’s environment. Untreated sewage from overflows can pose serious threats to human health and damage the environment.

GWA will improve sewer system operation and maintenance programs and implement new requirements for pretreatment of wastewater and to control fats, oils and grease (FOG). Sewer system upgrades will include practices to improve climate change resiliency of pump stations and to consider EPA’s Creating Resilient Water Utilities initiative, including the Resilient Strategies Guide for Water Utilities. The settlement also requires enhanced public outreach and engagement to increase transparency around GWA’s plans to comply with the agreement and educate the public on its environmental improvements.

GWA will also develop a feasibility study for secondary treatment upgrades to the Hagåtña wastewater treatment plant, which will include analyses of climate change and sea level rise and be submitted for EPA’s approval. This secondary treatment upgrade will be embodied in a subsequent judicial settlement. GWA receives some grant funding from EPA for wastewater and drinking water projects, including $50 million in Bipartisan Infrastructure Law funding over the past two years.

Reducing overflows will also protect coral reef ecosystems from adverse nutrient imbalances and coral diseases that can result from sewage discharges. The environmental impacts of sewage spills to waters include hypoxia, harmful algal blooms, habitat degradation, floating debris and impacts to sensitive species.

For more information about today's settlement, please visit the Guam Waterworks Authority settlement sheet here.

The proposed partial consent decree is lodged in the U.S. District Court of Guam. The settlement is subject to a public comment period and final court approval. The consent decree will be available for viewing on the Justice Department’s website at www.justice.gov/enrd/consent-decrees.

A former project manager for a government contractor pleaded guilty today for his role in a conspiracy to inflate project costs by over $200,000 and receive kickbacks related to contracts for commercial flooring services at a U.S. Army facility in Fairbanks, Alaska. 

Kevin Mahler pleaded guilty to a six-count felony information filed on Jan. 29, in the U.S. District Court for the District of Alaska. According to the plea, from March 2016 to March 2021, Mahler conspired to receive kickbacks from Benjamin McCulloch, the owner of a commercial flooring services company, related to construction contracts administered by the U.S. Army at Fort Wainwright. Mahler pleaded guilty to conspiring with McCulloch to inflate the costs of flooring construction subcontracts and receiving half of the proceeds as kickback payments from McCulloch. During the five-year scheme, Mahler received over $100,000 in kickbacks. As a part of his plea, he has agreed to pay restitution. According to the information, Mahler also failed to report his income from the scheme to the IRS, in violation of federal tax laws. McCulloch previously pleaded guilty for his role in the conspiracy.

“Taking advantage of U.S. taxpayers by defrauding U.S. Army facilities is a crime and will not be tolerated,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “The Justice Department’s Procurement Collusion Strike Force will hold accountable individuals who conspire to illegally profit — through kickbacks or otherwise — at the expense of the public.”

“We are very pleased with today's announcement,” said Special Agent in Charge Keith K. Kelly of the Department of the Army Criminal Investigation Division’s Fraud Field Office. “This is a true testament to our continued commitment to work closely and seamlessly with our outstanding fellow law enforcement agencies to help bring those to justice who attempt to defraud the U.S. Government and U.S. Army.”

“The FBI and our partners are committed to protecting the integrity of the government’s competitive contracting practices,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “This outcome demonstrates that those who engage in fraudulent kickback schemes, harming American taxpayers in the process, will be held accountable for their crimes.”

“This plea marks a significant milestone in the ongoing efforts to combat corruption and uphold integrity within government contracting processes,” said Special Agent in Charge Bryan D. Denny of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “Mahler’s actions, which involved a calculated scheme to defraud the U.S. Army and exploit American taxpayers, were brought to light thanks to the diligent work and collaborative efforts of multiple law enforcement agencies.”

“‘Be all you can be’ is a resounding call by the U.S. Army for excellence, dedication and bravery. It is not a call for fraudsters to fill their coffers illegally at the Army’s expense,” said Special Agent in Charge Adam Jobes of the IRS Criminal Investigation (IRS:CI) Seattle Field Office. “Mahler’s disregard and theft from those who serve our country is being brought to light today, and this guilty plea emphasizes IRS:CI’s commitment to fighting fraud no matter where it is found.”

Mahler faces a maximum penalty of 10 years in prison and a fine of $250,000. The fine for the anti-kickback conspiracy charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

The Antitrust Division’s San Francisco Office, U.S. Attorney’s Office for the District of Alaska, FBI Anchorage Field Office, DCIS’s Western Field Office in Seattle and IRS:CI Seattle Office are investigating the case.

Anyone with information in connection with this investigation is urged to contact the Antitrust Division’s San Francisco Office at 415-934-5300, Antitrust Division’s Citizen Complaint Center at 888-647-3258 or www.justice.gov/atr/contact/newcase.html or the FBI Anchorage Field Office at 907-276-4441.

In November 2019, the Justice Department created the Procurement Collusion Strike Force (PCSF), 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. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to federal government contracts, go to www.justice.gov/procurement-collusion-strike-force.

The Justice Department and Environmental Protection Agency (EPA) today announced that Holly Energy Partners-Operating L.P. and Osage Pipe Line Company LLC have agreed to pay $7.4 million in Clean Water Act civil penalties and implement corrective measures to settle claims stemming from a pipeline rupture and crude oil spill from the Osage pipeline onto land owned by members of the Sac and Fox Nation in Oklahoma. In addition to payment of the civil penalties, the settlement requires that the two companies complete the cleanup and remediation of the impacted area and take additional steps to prepare for and prevent future spills.

“Oil companies have a responsibility to prevent harmful oil spills, and today’s settlement demonstrates that those who violate this duty will be held accountable under the law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We appreciate the Sac and Fox Nation’s steady involvement in monitoring the cleanup efforts for environmental, natural resource and cultural resource impacts and respect the Nation’s efforts to be caring stewards of lands owned by its members.”

“The pipeline spill in this case dumped nearly 300,000 gallons of crude oil, contaminating Skull Creek and severely hampering water quality and the aquatic environment in the creek,” said Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “EPA and its federal partners are requiring the oil companies who caused the spill to restore Skull Creek, operate safely, and take steps to prevent future spills.”

“Safeguarding Oklahoma’s natural resources is of the utmost importance for future generations,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “My office remains committed to furthering environmental justice by ensuring those responsible for oil spills remediate and rectify the impacts to our communities and tribal partners.”

“The Sac and Fox Nation is a strong partner in conserving and protecting the environment and natural resources. EPA worked closely with the Nation to keep its environmental staff and leadership updated during the response and cleanup of the Osage Pipeline spill,” said Administrator Dr. Earthea Nance of EPA Region 6. “Today’s settlement is an important step in holding the company accountable for the impacts to Skull Creek and other potential effects.”

The United States filed its complaint today in the U.S. District Court for the Western District of Oklahoma along with the notice of lodging of a proposed consent decree to resolve the case. In the complaint, the United States alleges that the two related Dallas-based companies are liable under the Clean Water Act for the crude oil spill that occurred on July 8, 2022. Osage Pipe Line Company owns the 135-mile-long, 20-inch-diameter pipeline that transports crude oil from a tank farm in Cushing, Oklahoma, to the HollyFrontier refinery in El Dorado, Kansas. Holly Energy Partners-Operating is the operator of the pipeline.

The complaint alleges the spill occurred when a segment of the pipeline ruptured adjacent to Skull Creek about five miles north of Cushing. From the point of the discharge, Skull Creek flows about three more miles before entering the Cimarron River. The pipeline was operating at the time of the rupture and discharged about 300,000 gallons (7,110 barrels) of crude oil into the creek. The land where the rupture occurred, and the adjacent downstream parcel that the creek runs through, are both allotment lands owned by members of the Sac and Fox Nation.

The companies, the EPA, the Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA), the Department of the Interior’s Bureau of Indian Affairs and the Sac and Fox Nation responded to the rupture and spill. The companies are continuing cleanup work in Skull Creek under the oversight of the EPA, and the pipeline was returned to operation at reduced pressure under the oversight of PHMSA through its corrective action authority. The Sac and Fox Nation deployed tribal monitors to observe the companies’ work at the spill site and monitor for impacts to natural and cultural resources. 

In addition to payment of the civil penalties in the proposed consent decree, the companies will be required to complete the cleanup and remediation of the impacted area, improve their pipeline integrity management program, provide additional training for all their control room operators and expand their spill notification efforts for Tribal governments with land interests within the footprint of the pipeline. The penalties and remedial measures required by the proposed consent decree are in addition to the costs the companies have incurred to clean up the oil spill.

Section 311(b) of the Clean Water Act makes it unlawful to discharge oil or hazardous substances into or upon the navigable waters of the United States or adjoining shorelines, the contiguous zone, or in connection with activities under the Outer Continental Shelf Lands Act in quantities that may be harmful to the environment or public health. The penalties for this spill will be deposited in the federal Oil Spill Liability Trust Fund managed by the National Pollution Funds Center. The Oil Spill Liability Trust Fund is used to pay for federal response activities and to compensate victims for damages when there is a discharge or substantial threat of discharge of oil or hazardous substances.

The Justice Department’s Environmental Enforcement Section lodged the consent decree with the U.S. District Court for the Western District of Oklahoma. The proposed consent decree is subject to a 30-day public comment period and court review and approval. A copy of the proposed consent decree is available on the Justice Department website at www.justice.gov/enrd/consent-decrees.

A Florida man pleaded guilty yesterday in the Southern District of Florida to money laundering for his role in funneling the proceeds of scams against American consumers and businesses to co-conspirators located in Nigeria.

Niselio Barros Garcia Jr., 50, of Kissimmee, was indicted by a grand jury on July 12, 2023. According to court documents, Garcia supplied bank accounts to his co-conspirators for the purpose of receiving proceeds from romance scams, business email compromises and other fraud schemes. After receiving the criminal proceeds, Garcia used a cryptocurrency exchange to conceal and transfer the funds in Bitcoin to co-conspirators in Nigeria. Garcia personally laundered over $2.3 million of criminal proceeds and earned hundreds of thousands of dollars in fees.

Business email compromises involve criminals hacking or spoofing business email accounts to initiate fraudulent money transfers. Romance scams involve fraudsters creating fake online personas to gain the trust and affection of victims, leading to financial exploitation. These schemes not only cause significant financial losses, but also deeply impact the lives of victims.

“This prosecution demonstrates our ongoing commitment to protecting the public from complex financial crimes,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “This case serves as a reminder of the sophisticated methods employed by criminals and the need for vigilance in the digital age. The Justice Department remains committed to aggressively pursuing individuals and groups involved in these kinds of illicit activities.”

Garcia is scheduled to be sentenced in the Southern District of Florida on April 23. He faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Four additional defendants have been charged in this scheme but remain at large.

The FBI Buffalo Field Office investigated the case.

Trial Attorneys Lauren Elfner and Matthew Robinson of the Civil Division’s Consumer Protection Branch are prosecuting the case.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311). This Justice Department 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 relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies and provide resources and referrals on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud, and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

For more information about the Consumer Protection Branch and its enforcement efforts, visit www.justice.gov/civil/consumer-protection-branch. Information about the Justice Department’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

The United States and Australia today have brought into force the landmark Agreement on Access to Electronic Data for the Purpose of Countering Serious Crime. The Agreement will transform and enhance international cooperation in addressing serious crimes, including terrorism and child sexual abuse. The Agreement will complement the existing close relationships between the United States and Australia across law enforcement, contributing to the safety and security of both nations.

The Agreement will allow U.S. and Australian authorities to obtain more timely access to electronic data held by service providers in the partner nation. Obtaining this information will help U.S. and Australian agencies prevent, detect, investigate, and prosecute serious crime and safeguard our national security.

Importantly, the Agreement also provides safeguards and protections that reflect the commitment of both countries to human rights, civil liberties, and the rule of law. These include stringent privacy and oversight protections to ensure any data collected meets the Agreement’s robust requirements.

Signed between the Government of the United States of America and the Government of Australia, on Dec. 15, 2021, the Agreement is supported by each Party’s domestic legislative frameworks – the United States’ Clarifying Lawful Overseas Use of Data (CLOUD) Act and Australia’s Schedule 1 of the Telecommunications (Interception and Access) Act 1979 (Cth).

An Indian national was sentenced today to nine years in prison for orchestrating a nearly $2.8 million health care fraud and wire fraud conspiracy and engaging in money laundering, aggravated identity theft, and witness tampering.

According to court documents and evidence presented at trial, Yogesh K. Pancholi, 43, of Northville, Michigan, owned and operated Shring Home Care Inc. (Shring), a home health company based in Livonia, Michigan. Despite being excluded from billing Medicare, Pancholi purchased Shring using the names, signatures, and personal identifying information of others to conceal his ownership of the company. In a two-month period, Pancholi and his co-conspirators billed and were paid nearly $2.8 million by Medicare for services that were never provided. Pancholi then transferred these funds through bank accounts belonging to shell corporations and eventually into his accounts in India. After being indicted, and on the eve of trial, Pancholi, using a pseudonym, wrote false and malicious emails to various federal government agencies alleging a government witness had committed various crimes and should not be allowed to remain in the United States in an attempt to keep the witness from testifying. 

In September 2023, a federal jury in the Eastern District of Michigan convicted Pancholi of conspiracy to commit health care and wire fraud, two substantive counts of health care fraud, two counts of money laundering, two counts of aggravated identity theft, and one count of witness tampering.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Special Agent in Charge Cheyvoryea “Shea” Gibson of the FBI Detroit Field Office, and Special Agent in Charge Mario Pinto of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) made the announcement.

The FBI Detroit Field Office and HHS-OIG investigated the case.

Trial Attorneys Shankar Ramamurthy and Andres Almendarez 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 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.

Ten people were arrested in multiple cities over the past day in relation to two federal indictments charging members of an organized crime syndicate who allegedly conspired to traffic and import hundreds of kilograms of cocaine and other controlled substances from Mexico through Los Angeles for export to Canada or re-distribution throughout the United States.

Arrest and search warrants were executed this morning by a coalition of international law enforcement partners in various cities, including Los Angeles; Sacramento, California; Miami; Odessa, Texas; Montreal; Toronto; and Calgary, Canada.

In addition to those arrested, two defendants were already in state custody, and seven defendants are fugitives, including three Mexicans who allegedly supplied wholesale quantities of narcotics to the traffickers in the United States and Canada.

The investigation, known as “Operation Dead Hand,” resulted in two federal grand jury indictments returned under seal in Los Angeles earlier this month. The indictments, which were unsealed today, collectively charge 19 individuals for their alleged roles in the organized crime syndicate, including Mexico-based suppliers who brought large quantities of narcotics into the United States, United States distributors, a Canadian who led an exportation organization, Canadian-based semi-truck drivers who operate in the United States, and a large-scale Canadian trafficker and Italian organized crime figure, Robert Scoppa, whom investigators allege was purchasing massive quantities of drugs on a wholesale basis.

“Today’s charges and arrests across North America reflect the Justice Department’s close coordination with our Mexican and Canadian partners to disrupt international narcotics trafficking,” said Deputy Attorney General Lisa O. Monaco. “These cases provide yet another example of how our agents and prosecutors work side-by-side to uncover and dismantle organized criminal networks peddling and profiting from deadly drugs.”

“Drug trafficking is a global problem being driven by sophisticated, organized crime groups who put profits over people’s lives,” said U.S. Attorney Martin Estrada for the Central District of California. “Motivated by greed, these criminals destroy lives, devastate families, and wreak havoc in our community. But this case shows that we will collaborate with our international partners to bring these criminal networks to justice. Those who traffic in highly addictive and dangerous drugs will be held accountable.”

“Until today, the organized members of this conspiracy operated with impunity throughout the many thousands of miles that comprise the North American continent, poisoning communities along the way,” said Assistant Director in Charge Donald Alway of the FBI Los Angeles Field Office. “The strength of this partnership cannot be overstated. The agents and detectives on this case did an outstanding job of pooling resources and worked seamlessly across borders toward a mutual goal of putting this massive drug pipeline out of business.”

Investigators developed information indicating the organized crime group used Canadian “handlers” and “dispatchers” who travelled from Canada to Los Angeles for short amounts of time. The handlers coordinated the pick-up and delivery of large shipments of cocaine and methamphetamine, which were loaded onto long-haul semi-trucks destined for Canada. Wholesale quantities of fentanyl were seized as a result of the investigation. The transportation was coordinated by a network of drivers working with dozens of trucking companies who made numerous border crossings from the United States to Canada via the Detroit Windsor Tunnel, the Buffalo Peace Bridge, and the Blue Water Bridge.

The indictments allege illicit drug trafficking activity cumulatively involving approximately 845 kilograms (1,860 pounds) of methamphetamine, 951 kilograms (2,092 pounds) of cocaine, 20 kilograms (44 pounds) of fentanyl, and 4 kilograms (nearly 9 pounds) of heroin. Over $900,000 in cash was seized during the investigation. The estimated wholesale value of the narcotics seized was between $16-28 million.

“Customs and Border Protection’s partnerships with international, federal, state, and local law enforcement agencies are a key component of our efforts to combat the transnational organized crime threat and prevent the movement of dangerous illicit drugs,” said Director of Field Operations Cheryl M. Davies of U.S. Customs and Border Protection (CBP)’s Los Angeles Field Office. “CBP will continue to invest in these partnerships as we work together to keep dangerous drugs out of our communities.”

U.S. v. Sandoval:

An 18-count indictment returned on Jan. 4 charges 10 defendants for their roles in an organization which allegedly began operating on an unknown date and continued to on or about March 2023. The charges in the indictment allege two drug trafficking conspiracies; conspiracy to import cocaine; drug exportation conspiracy; distribution/possession with intent to distribute controlled substances; possession of a firearm in furtherance of drug trafficking; and being a felon in possession of ammunition.

The defendants charged in this indictment are:

• Jesus Ruiz Sandoval Jr., 45, of Guadalajara, Mexico;
• John Joe Soto, 42, of Guadalajara;
• Eduardo Carvajal, 50, of Guadalajara;
• Roberto Scoppa, 55, of Montreal;
• Ayush Sharma, 25, of Brampton, Canada;
• Subham Kumar, 29, of Calgary, Canada;
• Carlos Barragan, 51, of Long Beach, California;
• Corell Carbajal Garcia, 38, of Hemet, California;
• Humberto Luis Bermejo, 26, of Odessa, Texas; and
• Esteban Sinhue Mercado, 24, of San Jacinto, California.

Sandoval Jr., who is currently a fugitive, is believed to be a large-scale drug trafficker involved in importing drugs from Mexico into the United States for distribution. John Joe Soto is believed to work under Sandoval. Eduardo Carvajal, also an alleged large-scale drug-trafficker, is believed to export drugs from the United States to Canada. Robert Scoppa is an alleged Canadian drug trafficker with close ties to an Italian organized crime family in Montreal. Barragan is an alleged drug trafficker who lives in the United States. Sharma and Kumar are semi-truck drivers involved in exporting drugs to Canada.

U.S. v. Sidhu:

A 23-count indictment returned on Jan. 3 charges nine defendants for their roles in a related criminal enterprise which allegedly operated from at least September 2020 through February 2023. In addition to a drug trafficking conspiracy, the indictment alleges a drug exportation conspiracy and substantive counts of distribution/possession with intent to distribute controlled substances.

The defendants charged in this indictment are:

• Guramrit Sidhu, 60, of Brampton, Canada;
• Ivan Gravel Gonzalez, 32, a resident of both the Dominican Republic and Montreal;
• Daniel Antonio Trejo Huerta, 43, of Riverside, California;
• Ignacio Lopez, 53, a resident of Santa Ana, California;
• Daniel Joseph Alan Herrera, 27, of Miami;
• Orlando Velasco Jr., 29, of Stanton, California;
• Angel Larry Sandoval, 32, of Bell Gardens, California;
• Jorge Pina Nicols, 22, of Long Beach, California; and
• Bryan Ureta Valenzuela, 24, of Ontario, California.

Sidhu, also known as King, is alleged to have orchestrated the trafficking and exportation of large-scale quantities of controlled substances to Canada working with several co-defendants described as suppliers. Ivan Gravel Gonzalez is alleged to be part of Sidhu’s exportation team based in the United States. Sidhu is charged with one count of engaging in a continuing criminal enterprise. According to the indictment, Sidhu occupied a position of organizer, supervisor, and manager, and in this role obtained substantial income and resources.

If convicted, each defendant faces maximum penalties ranging from 40 years to life in prison. If convicted, Sidhu would face a mandatory minimum penalty of 20 years in prison. If convicted, Sandoval and Carvajal each would face a mandatory minimum penalty of 15 years in prison.

The FBI, the Los Angeles Police Department and the Los Angeles Interagency Metropolitan Police Apprehension Crime Task Force (LA IMPACT), the Royal Canadian Mounted Police, CBP, and law enforcement authorities in Mexico investigated the case. Significant assistance was provided by Homeland Security Investigations and the Drug Enforcement Administration. The Justice Department’s Office of International Affairs, the FBI’s Legal Attaché Offices in Mexico City, Ottawa, and New Delhi, and the FBI Miami, El Paso, and Buffalo Field Offices provided substantial assistance and support.

Operation Dead Hand is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Assistant U.S. Attorney Brittney M. Harris for the Central District of California’s International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.

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

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants Francisco Herrera Salas, age 43, from Barrigada, Guam and Joseph Mesa Babauta, age 48, from Agat, Guam, were sentenced each to serve 108 months in federal prison.  They were convicted of Attempted Possession with Intent to Deliver Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1).  The Court also ordered both defendants to serve 3 years of supervised release following imprisonment and to pay a mandatory $100 special assessment fee.  In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits. 

In December 2020, federal agents intercepted three priority mail packages containing methamphetamine, one of which was addressed to “Frankie Salas.”  The Salas package contained 1,781 grams of methamphetamine, which was replaced with a sham substance.  During a controlled delivery, Salas claimed the package and drove to a location in Agat.  Agents were alerted that the package had been opened.  They also saw Babauta driving a vehicle away from the scene.  Agents then stopped the vehicle and found the sham substance from the Salas package on the front seat.  Soon after, agents stopped Salas in the same vehicle he used to pick up the package from the post office.  Both Babauta and Salas had clue spray on their hands and clothing, indicating they had opened the Salas package or handled the contents.

“The Postal Inspection Service continues to interdict drug trafficking in our mail system,” stated United States Attorney Anderson.  “We will aggressively prosecute those associated with this illicit activity.  As this case demonstrates, a conviction under federal law can result in substantial penalties.”

The United States Postal Inspection Services, Drug Enforcement Administration Los Angeles Field Division – Guam Office, and Guam Customs & Quarantine Agency investigated this matter. 

This case was prosecuted by Stephen F. Leon Guerrero and Benjamin K. Petersburg, Assistant United States Attorneys in the District of Guam.

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Melvin John Salas Naputi, age 51, from Guam, was sentenced to 30 years imprisonment.  Naputi was charged and convicted of Attempted Possession with Intent to Deliver Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1) and Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. §922(g)(1).  The Court also ordered 10 years of supervised release following imprisonment and a mandatory $200 special assessment fee.  In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits. 

On August 8, 2018, U.S. Marshals executed a federal arrest warrant for Naputi at a hotel room in Tumon, Guam.  A female accompanied Naputi at the room.  She was present as officers conducted a safety sweep, during which drug paraphernalia was found in plain sight.  The female admitted that there were illegal drugs and a firearm in the hotel room and consented to a more thorough search.  Law enforcement found 15 grams of methamphetamine in an ice bucket, 4.59 grams of methamphetamine in a pouch, cocaine, drug packaging material, drug paraphernalia, firearms, and ammunition as well as $7,405 in drug proceeds.  

On April 4, 2021, U.S. Postal Inspection Services (USPIS) intercepted a package addressed to “Tina Lay,” which contained 926 grams of methamphetamine with a purity level of 100%.  USPIS replaced the drugs with a sham substance and coordinated with task force officers for the delivery of the package to the addressed recipient.  The package was delivered to a mailbox and then picked up by a male riding a motorcycle.  It was tracked to a residence located in Mangilao, Guam.  Task force officers entered the home once package was opened.  Naputi climbed out of a window and ran away leaving behind his backpack, cell phones, the package, and the vehicle.  His backpack was found to contain $24,075 in cash, plastic baggies, three scales, calibration weights, and 821 grams of methamphetamine.  Two plastic bags on the front seat of the vehicle contained $71,000 in cash.

Naputi was arrested in July 2023.  He was found in possession of 3,442 grams of methamphetamine (roughly 7 ½ pounds) and $219,144 in cash, amounting to the illegal proceeds of drug distribution.  Law enforcement also seized vehicles, electronics, jewelry, and other miscellaneous items.

“Naputi was a serious threat to public safety in Guam,” stated United States Attorney Anderson.  “The outstanding work of our federal partners and Guam agencies brought this defendant to justice.  We will continue to focus federal resources to combat drug trafficking and firearm violations in an effort to protect our communities.”

“Organized trafficking of methamphetamine and other illegal drugs contributes to the unacceptable level of violence in Guam and the Northern Mariana Islands. Those who persist in engaging in dangerous criminal conduct despite determined efforts to dissuade them will be held accountable,” said Homeland Security Investigations Special Agent in Charge John F. Tobon. “Dismantling drug trafficking organizations and taking guns out of the hands criminals, is a critical part of our fight to reduce violent crime in our communities.”

“Following the issuance of a warrant of arrest, a comprehensive law enforcement effort was undertaken to locate and capture this fugitive.  During the fugitive investigation, credible information surfaced concerning this fugitive’s continuing criminal activity,” said Deputy U.S. Marshal, Pedro Patrick Cortez. “The United States Marshals Service is committed to capturing fugitives, disabling their criminal activity and keeping our community safe.” 

“Melvin Naputi was a fugitive for years and a drug dealer known for violence for years, if not decades,” said Resident Agent in Charge Kenneth L. Bowman. “It’s good that he will be off the streets of Guam for a long time.”

“Drugs and firearms make a very deadly combination to the safety of our communities,” said ATF Seattle Field Division Special Agent in Charge Jonathan E. Blais. “ATF will not stop in our mission of investigating those involved in actions such as these.  This sentence sends a strong message to Mr. Salas that this behavior will not be tolerated.”

“The FBI remains committed to working with our law enforcement partners to remove dangerous criminals who destroy and harm lives in our neighborhoods in Guam,” said FBI Special Agent in Charge Steven Merrill.  “Justice was served today as Naputi was sentenced for distribution of methamphetamine and being a felon in possession of firearms.”

“Postal inspectors are committed to keeping dangerous weapons and controlled substances like methamphetamine out of the mail and off the street in Guam and across the United States, " said San Francisco Division Inspector-in-Charge Rafael Nuñez. "I would like to thank our law enforcement partners at the Guam Customs and Quarantine Agency, the Guam Police Department, and the federal government for sharing this responsibility with us.”

This case was a joint investigation conducted by United States Marshals Service, Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives, Drug Enforcement Administration Los Angeles Field Division – Guam Office, Department of Homeland Security, United States Postal Inspection Services, Federal Bureau of Investigation, and the Guam Police Department.

The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.

On Friday, a federal jury convicted two Ohio men of tax, gambling, money laundering, conspiracy and obstruction crimes related to their operation of illegal gambling businesses in Canton and their scheme to conceal the illicit proceeds from those businesses to avoid paying taxes. Two others involved in the conspiracy pleaded guilty.

Convictions

According to court documents and evidence presented at trial, between 2009 and 2018, Christos Karasarides Jr. and Ronald DiPietro, together with others, operated multiple illegal gambling businesses, including Skilled Shamrock, as part of an organized criminal operation. At Skilled Shamrock, which primarily operated slot machines, patrons gambled more than $34 million between 2012 and 2017, with Skilled Shamrock’s owners retaining more than $7 million. Karasarides and DiPietro sought to conceal their ownership of the gambling businesses through the use of nominee owners and sham contracts.

Karasarides owed the IRS more than $2 million in taxes on income he earned gambling and from other businesses he ran, which the IRS was trying to collect. DiPietro, who was also a Certified Public Accountant, assisted Karasarides in thwarting the IRS’s collection efforts by falsely representing to the IRS, including by preparing tax returns for Karasarides, that Karasarides did not have the assets or income to pay his taxes. Evidence at trial also showed that Karasarides conspired to launder money from his gambling businesses to make it more difficult for the IRS to seize his home by using a straw purchaser to disguise his ownership of it.

Karasarides and DiPietro used the proceeds of their schemes to purchase luxury vehicles and buy and sell property. Karasarides also took several extravagant gambling trips, making millions of dollars of bets at legal casinos throughout the country. They also kept thousands and sometimes hundreds of thousands of dollars in cash or silver at their homes and other properties they controlled.  For instance, law enforcement seized more than $150,000 in cash from Karasarides’ house.

Sentencing for both men is scheduled for May 1 before U.S. District Judge Donald Nugent for the Northern District of Ohio. Karasarides faces a maximum penalty of twenty years in prison for conspiracy to commit money laundering, five years in prison for tax evasion, five years in prison for each count of conspiracy to operate an illegal gambling business, five years in prison for each count of conspiracy to defraud the United States, five years in prison for falsification of records, three years in prison for each count of operating an illegal gambling business, three years in prison for witness tampering and three years in prison for filing false income tax returns.

DiPietro faces a maximum penalty of five years in prison for conspiracy to operate an illegal gambling business, three years in prison for operating an illegal gambling business, five years in prison for tax evasion and three years in prison for each count of preparing false income tax returns. 

Pleas

Just prior to the trial, Thomas Helmick, who served as a nominee owner of one of Karasarides’ illegal gambling businesses, pleaded guilty to conspiring to defraud the United States. Helmick is scheduled to be sentenced before U.S. District Judge Donald Nugent on May 2. He faces a maximum penalty of five years in prison. 

During the course of the trial, Christopher Karasarides, pleaded guilty to conspiring to defraud the United States by executing false documents and acting as a nominee owner for some of Christos Karasarides’ assets. Christopher Karasarides is scheduled to be sentenced before U.S. District Judge Donald Nugent on April 30. He faces a maximum penalty of five years in prison.

A federal district court judge will determine the sentence of each defendant 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 Rebecca C. Lutzko for the Northern District of Ohio made the announcement.

IRS Criminal Investigation; U.S. Department of Homeland Security, Homeland Security Investigations; the U.S. Department of Treasury, Office of Inspector General; the Stark County Prosecutor’s Office; the Ohio Casino Control Commission and Ohio Organized Crime Investigations Commission-Major Crimes Task Force are investigating the case.

Trial Attorneys Sam Bean and Hayter Whitman of the Justice Department’s Tax Division and Assistant U.S. Attorney Aaron Howell for the Northern District of Ohio are prosecuting the case.

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Julien Abat Weymouth, age 32, from Dededo, Guam was sentenced to 30 months imprisonment.  He was charged with Operating an Unlawful Money Transmitting Business, in violation of 18 U.S.C. § 1960.  The Court also ordered 3 years of supervised release following imprisonment and a mandatory $100 special assessment fee. 

From January 2020 to April 2021, Julien Abat Weymouth was engaged in the operation of an unlawful money transmitting business involving the exchange and transfer of cryptocurrency, primarily Bitcoin. Weymouth solicited cash and cryptocurrency from “clients" or "investors" within and outside the District of Guam, and transmitted the bitcoin to a third-party, William Ichioka, located outside of Guam for purported investment purposes.  Ichioka operated a fraudulent investment scheme known as Ichioka Ventures.  Ichioka was prosecuted separately in the Northern District of California.

Weymouth guaranteed his clients and investors a percentage return on their alleged investment and kept any excess return over and above the guaranteed rate as his fee.  As part of his scheme, Weymouth solicited and accepted funds and cryptocurrency from individuals involved in illegal activity.  Operating as a cryptocurrency exchanger and engaged in the business of transmitting funds on behalf of others to third parties for a fee, he failed to register with FinCEN and failed to comply with federal regulations governing money transmitters.

During the time of his scheme, Weymouth transmitted funds and cryptocurrency worth approximately $5,517,323.48.  He generated significant personal profits which he reinvested into various forms of cryptocurrency, held in bank accounts, and funded the purchase of vehicles and other assets.  As part of his plea agreement, Weymouth stipulated to the forfeiture of over 200 Bitcoin with a present value of over $8 million, 6 vehicles, and $127,000 in a PenFed bank account.

“Cryptocurrencies are often used to facilitate fraudulent activity,” stated United States Attorney Anderson.  “These financial assets do not guarantee anonymity, as generally perceived by criminals.  Our office will continue to target unlicensed money transmitting, money laundering, and any other unlawful transactions associated with cryptocurrency.

“U.S. Secret Service Guam Resident Office is dedicated to protecting our nation’s citizens within the Districts of Guam and the Northern Mariana Islands,” said Resident Agent in Charge Neal de Paz. “We appreciate federal law enforcement partners, the United States Attorney’s Office and the Guam Police Department, whose hard work and dedication ensured successful outcome in this complex investigation.” 

This case was investigated by U.S. Secret Service and prosecuted by Benjamin K. Petersburg, Assistant United States Attorney in the District of Guam.

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Shaylene Doris Valentine, age 29, from Guam, was sentenced to 135 months imprisonment.  Valentine was charged with Possession with Intent to Deliver Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1) and Felon in Possession of a Firearm and Ammunition, in violation of 18 U.S.C. §922(g)(1).  The Court also ordered 5 years of supervised release following imprisonment and a mandatory $200 special assessment fee.  In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits. 

On February 24, 2023, GPD officers stopped Valentine for a traffic violation.  Officers noticed that she appeared to be nervous and kept looking down at her feet.  Valentine consented to a search of the vehicle. Officers then located a glass jar and a cooler, both of which contained suspected methamphetamine.  Forensic testing indicated a net weight of 362 grams with a purity level of 99%.  Officers also found a handgun, 16 rounds of ammunition, and an empty magazine beneath the driver’s seat.  Valentine is a convicted felon and prohibited from possessing any firearms or ammunition.  A search of Valentine’s cellular phone revealed that she sold methamphetamine.  The phone also contained videos of her discharging firearms on prior occasions.  A subsequent search of Valentine’s residence revealed two additional firearms and ammunition.  

“Drugs and firearms are a dangerous combination,” stated United States Attorney Anderson.  “This case demonstrates the threats faced by law enforcement during seemingly routine traffic stops.  I applaud the efforts of GPD and our federal partners in combating this illegal activity.”

“This sentencing sends a message that drug traffickers will be held accountable,” said Special Agent in Charge John F. Tobon. “Any time we can remove large amounts of debilitating drugs such as methamphetamine, it is a big win. HSI remains committed to working hand in hand with our state, local and federal partners to keep our communities safe. HSI commends the outstanding work of all the agencies who participated in this investigation.”

This case was a joint investigation conducted by Homeland Security Investigations (HSI), Bureau of Alcohol, Tobacco, Firearms and Explosives (BATFE), and the Guam Police Department (GPD).

The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Aaron Matthew Pangelinan, age 50, was sentenced to 60 months imprisonment by the U.S. District Court of Guam.  Pangelinan was convicted of Distribution of More than Five Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. § 841(a)(1).  The Court also ordered four years of supervised release following imprisonment and a mandatory $100 special assessment fee.  In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits. 

From December 2, 2019, to October 7, 2020, Pangelinan distributed methamphetamine hydrochloride from his Ordot, Chalan Pago residence.  On four occasions, law enforcement conducted undercover purchases of methamphetamine from Pangelinan at an outdoor patio of his residence. The drug purity levels ranged from 93% to 99% pure methamphetamine based upon laboratory testing.  Pangelinan was previously convicted of a drug trafficking offense in Kitsap County Superior Court in the State of Washington on June 5, 2009.  He served 14 months in a state prison for that offense.

“Unfortunately, this defendant’s first conviction was not a deterrence from additional criminal conduct,” stated United States Attorney Anderson.  “Repeat offenders are subject to substantial penalties in federal court, as demonstrated here.  The sentence imposed by the Court will help promote respect for the law and protection for our communities.”

This case was investigated by the Drug Enforcement Administration (DEA) Los Angeles Field Division-Guam Resident Office and prosecuted by Marivic P. David, Assistant United States Attorney in the District of Guam.

The Justice Department, together with the Federal Trade Commission (FTC), announced that Kubota North America Corp. (Kubota) has agreed to a settlement that requires it to pay a civil penalty and cease making misleading claims about the origins of its products.

In a complaint filed in the U.S. District Court for the Northern District of Texas, the government alleges that Kubota violated the FTC Act and the Made in USA Rule by falsely marketing foreign-manufactured replacement parts as made in the United States. These false labels affected thousands of replacement parts.

The stipulated order will enjoin Kubota from making country-of-origin claims about any of their products unless the claims satisfy certain requirements, and from making any unsubstantiated representations about their products. The consent decree imposes a $2 million civil penalty.

“The Justice Department is committed to stopping companies from making misleading and fraudulent claims to market their products,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the FTC to enforce the FTC Act against those using unfair and deceptive marketing to sell products as purportedly made in the United States, when, in fact, those products are made elsewhere.”

“Today’s settlement includes the largest civil penalty assessed for violating the Made in USA Labeling Rule,” said Director Samuel Levine of the FTC’s Bureau of Consumer Protection. “The FTC will continue cracking down on deceptive Made in USA claims that cheat consumers and honest businesses.”

This matter is being handled by Trial Attorney Sean Saper and Assistant Director Lisa Hsiao of the Civil Division’s Consumer Protection Branch, along with Julia Ensor of the FTC’s Division of Enforcement. The branch thanks the U.S. Attorney’s Office for its assistance in the matter.

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

*This release has been updated to reflect the correct headline.

Nearly 200 people have been charged as part of a series of arrests targeting large-scale drug-trafficking organizations operating throughout the United States.

“Over just three days and across 10 states, the Justice Department has charged nearly 200 individuals for their alleged roles in major drug trafficking operations,” said Attorney General Merrick B. Garland. “These cases represent just a fraction of the work our agents and prosecutors are doing every day to target, disrupt, and dismantle the cartels and drug trafficking organizations that are poisoning the American people.”

“Every year, tens of thousands of Americans die from illicit drugs trafficked into our communities, including fentanyl and other synthetic opioids,” said Deputy Attorney General Lisa O. Monaco. “This wave of indictments and arrests — stretching from Alaska to Mississippi and from Nebraska to West Virginia — shows the reach of the Justice Department and our partners across the country and around the world when it comes to disrupting narcotics trafficking.”

The cases announced this week were brought by federal law enforcement in four districts leading to the arrest of defendants from 10 states that cover crime rings operating in the Eastern, Southern, and Midwest regions of the U.S. and throughout Alaska.

These efforts are all part of a Department-wide Violent Crime Reduction Strategy implemented under Attorney General Garland to leverage the resources of the Department’s federal prosecutors, agents, investigators, criminal justice experts and grant programs to combat violent crime.

Every U.S. Attorney’s Office across the country has worked alongside state and local partners to implement district-specific violent crime reduction strategies. These cases represent the ongoing, targeted efforts by U.S. Attorney’s Offices to seize deadly drugs and to prosecute those whose actions bring violence in communities.

On Jan. 25, the District of Alaska announced charges against 54 defendants in connections with a large-scale organized crime ring operating within the state of Alaska, allegedly run by an inmate from a California prison. Heraclio Sanchez-Rodriguez, 57, is accused of using contraband cell phones to communicate with his suppliers in Mexico and their brokers, leaders in California and Oregon, and distributors of the drug trafficking enterprise in Alaska. From February 2022 to July 2023, law enforcement intercepted over 36 kilograms of fentanyl, 27.3 kilograms of meth, 11.3 kilograms of heroin, and 118 grams of cocaine connected to the enterprise The indictments allege the enterprise mainly used high-level suppliers to send drug packages through the U.S. Postal Service from Oregon and California to Alaska. Distributors located in Alaska would allegedly receive the packages and traffic the drugs to Alaskan communities, from the most populous cities to some of Alaska’s smallest villages.

On Jan. 24, the Northern District of West Virginia announced charges against 82 defendants for a drug trafficking ring operating in the Eastern Panhandle. According to court documents, Gary Bernard Brown Jr., 38, of Baltimore, supplied others with large quantities of fentanyl capsules and powder for redistribution in Berkeley and Jefferson Counties. The investigation yielded 10 kilograms of fentanyl with a street value of $1.2 million. The fentanyl being trafficked was blue and packaged in colorful capsules, potentially attractive to children. It was enough fentanyl to create more than 33,000 of the capsules for sale. Officers also found cocaine, methamphetamine, firearms, and hundreds of thousands of dollars in assets during the investigation.  

On Jan. 23, the District of Nebraska announced charges against 19 defendants for their roles as part of a meth distribution ring operating throughout Nebraska with ties to Kentucky and California. Alejandro Ruiz, 41, allegedly ran the crime syndicate out of California and trafficked meth and other narcotics from Mexico into California and then into the Midwest, including central Nebraska. In addition to meth seized through controlled buys, law enforcement also seized three firearms. 

On Jan. 23, the Southern District of Mississippi arrested 40 individuals stemming from a four-year federal investigation of multiple drug-trafficking organizations distributing meth, cocaine, and other illegal narcotics. The case included defendants throughout Mississippi with connections to Mexico, California, Texas, Alabama, and elsewhere. Some defendants are charged with committing a meth drug offense while minors, including a young toddler, were at the location. Investigators seized 36 firearms, five kilograms of crystal meth, and one kilogram of cocaine.

The investigation and prosecution of these cases are part of Organized Crime Drug Enforcement Task Forces (OCDETF) operations, which aim to identify, disrupt, and dismantle the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The Justice Department’s Antitrust Division and the Federal Trade Commission (FTC) today announced that both agencies are updating language in their standard preservation letters and specifications for all second requests, voluntary access letters and compulsory legal process, including grand jury subpoenas, to address the increased use of collaboration tools and ephemeral messaging platforms in the modern workplace. These updates reinforce longstanding obligations requiring companies to preserve materials during the pendency of government investigations and litigation.

“These updates to our legal process will ensure that neither opposing counsel nor their clients can feign ignorance when their clients or companies choose to conduct business through ephemeral messages,” said Deputy Assistant Attorney General Manish Kumar of the Justice Department’s Antitrust Division. “The Antitrust Division and the Federal Trade Commission expect that opposing counsel will preserve and produce any and all responsive documents, including data from ephemeral messaging applications designed to hide evidence. Failure to produce such documents may result in obstruction of justice charges.”

“Companies and individuals have a legal responsibility to preserve documents when involved in government investigations or litigation in order to promote efficient and effective enforcement that protects the American public,” said Director Henry Liu of the FTC Bureau of Competition. “Today’s update reinforces that this preservation responsibility applies to new methods of collaboration and information sharing tools, even including tools that allow for messages to disappear via ephemeral messaging capabilities.”

Companies continue to adopt new technologies to do their work, and in recent years there has been an increase in use of collaboration tools and ephemeral messaging applications, such as Slack, Microsoft Teams and Signal. Some of these technologies allow, or even automatically enable, immediate and irretrievable destruction of communications and documents. Documents created through use of these technologies have long been covered by Justice Department and the FTC document requests. However, companies have not always properly retained these types of documents during government investigations and litigation.

Today’s announcement underscores the continued cooperation between the Antitrust Division and FTC’s Bureau of Competition on criminal enforcement of antitrust laws and related issues that arise in antitrust actions.

Two New Jersey owners of a popular South Philadelphia cheesesteak restaurant were sentenced today for their decade-long conspiracy to defraud the IRS. The court sentenced Nicholas Lucidonio, 57, and Anthony Lucidonio Sr., 84, to 20 months in prison each.  

According to court documents and statements made in court, the Lucidonios owned and operated Tony Luke’s, a cheesesteak and sandwich restaurant located in South Philadelphia. From 2006 to 2016, they hid from the IRS more than $8 million in cash receipts by, among other things, depositing only a portion of the cash they received into Tony Luke’s business bank accounts and providing incomplete information to their accountant, which caused their accountant to file false tax returns that substantially underreported business receipts and income.

The Lucidonios also committed employment tax fraud by paying employees “off the books” in cash. To evade detection, they paid most employees a portion of their wages “on the books.” The Lucidonios then paid the remainder of their wages in cash without withholding federal income tax, Social Security and Medicare taxes or paying those to the IRS. They did not report these cash wages to their accountant, which caused the accountant to prepare and file false quarterly employment tax returns with the IRS.

When a dispute over Tony Luke’s franchising rights arose between the Lucidonios and another individual in 2015, the Lucidonios became concerned that their tax fraud scheme would be revealed, so they directed that the prior year’s tax returns be amended to increase reported sales. The Lucidonios continued to hide their ongoing payroll tax scheme.

As a result of their tax fraud scheme, the defendants caused a loss of $1,321,042 to the United States.

In addition to the terms of imprisonment, U.S. District Judge Gerald A. McHugh ordered both defendants to serve three years of supervised release.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania made the announcement.

IRS Criminal Investigation investigated the case.

Acting Section Chief John Kane of the Tax Division and Assistant U.S. Attorney and Criminal Division Chief Richard Barrett for the Eastern District of Pennsylvania are prosecuting the case.

An indictment was unsealed today in St. Paul, Minnesota, charging a former Excelsior, Minnesota, man with tax evasion, assisting in the preparation of false tax returns and making false statements to federal agents.

According to the indictment, from 2014 through 2018, David V. Erickson, a licensed CPA, engaged in a scheme to conceal from the IRS income that he earned abroad by falsely characterizing the funds he received as loans. Erickson allegedly owned and operated Halstead Bay Holdings (HBH), a Minnesota-based consulting company. HBH allegedly received payments from several foreign companies that Erickson partially owned. These foreign companies allegedly provided marketing and payment processing systems for an adult content website.

Erickson allegedly caused his foreign companies to transfer millions of dollars held offshore to bank accounts in the United States that he controlled. He allegedly directed his bookkeeper and others to falsely characterize those payments as nontaxable loans in HBH’s accounting records. HBH’s purported debt allegedly grew to nearly $5 million by the end of 2018. Erickson allegedly used the funds for personal expenses, including the purchase of a $1.3 million home and a luxury vehicle.

The indictment further alleges that Erickson provided false information to his accountants and bookkeepers, and, in turn, filed false federal income tax returns with the IRS. Erickson also allegedly lied to IRS Criminal Investigation special agents by claiming he had no authority to direct the foreign companies to send money.

If convicted, he faces a maximum penalty of five years in prison for each tax evasion count and for making a false statement to IRS-CI agents and three years in prison for each count of assisting in the preparation of false tax returns. 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 Andrew M. Luger for the District of Minnesota made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorneys Amanda R. Scott and Boris Bourget of the Justice Department’s Tax Division 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.

Acting United States Attorney Susan Lehr announced that a federal jury on January 25, 2024, returned verdicts against Donnale Clay, 40, of Tacoma, Washington. The jury found Clay not guilty of possession with intent to distribute methamphetamine and guilty of felon in possession of a firearm. The jury also found Clay guilty of the lesser-included offense of possession of methamphetamine. The verdicts followed a two-day trial in front of United States District Judge Brian C. Buescher. Judge Buescher scheduled sentencing for April 24, 2024. Clay faces a maximum of 10 years in prison for the firearm conviction and a mandatory minimum sentence of 15 days up to two years for the drug charge.

The evidence at trial established that on April 27, 2022, interdiction officers with a DEA task force were conducting routine surveillance at the Omaha bus terminal when a bus from Denver arrived. Officers visually examined the luggage compartment and noticed a suspicious suitcase. Officers set the suitcase next to the bus to observe if anyone would pick it up. Clay came and retrieved the suitcase. During a consensual conversation, the officer noticed other suspicious factors about Clay’s travel. Clay told the officer he was travelling from Tacoma to St. Paul, Minnesota. After granting consent to search the suitcase, Clay ran away. He was taken into custody after a short pursuit.

A search of the suitcase uncovered three handguns, including a loaded .38-caliber Colt semi-automatic. A search of a backpack Clay had been wearing uncovered about 689 grams (1.51 pounds) of methamphetamine, about 60 grams (weight with packaging) of fentanyl pills, and an Airsoft pistol.

After the jury returned the guilty verdicts on the two charges, it found that Clay had a prior conviction for a drug offense, enhancing his minimum and maximum sentences for the possession charge.

This case was investigated by the Drug Enforcement Administration and the Nebraska State Patrol. The Douglas County Sheriff’s Office conducted forensic testing of the drugs. An agent from the Bureau of Alcohol, Tobacco, Firearms and Explosives also testified.

The Justice Department announced today that a federal judge sentenced a Philadelphia-area man to prison yesterday for his role in distributing medical devices without U.S. Food and Drug Administration (FDA) clearance.

Peter Stoll III, 35, pleaded guilty last year to one felony count of violating the Federal Food, Drug and Cosmetic Act (FDCA) by causing the introduction of misbranded and adulterated medical devices into interstate commerce. U.S. District Judge Joseph F. Leeson sentenced Stoll to 12 months in prison and one year of supervised release.

According to court documents, Stoll was a regulatory affairs specialist at a medical device manufacturer located in the Eastern District of Pennsylvania and was responsible for making submissions to the FDA that were required before the company could sell its medical devices. In pleading guilty, Stoll admitted that in 2017, he created two false letters that purported to show that FDA had granted clearance to sell two different medical devices. As a result, the company illegally sold tens of thousands of dollars’ worth of medical devices throughout the United States.

According to court documents, Stoll was responsible for shepherding two of the company’s devices through the FDA’s 510(k) clearance process: the ELAN-4 Air Drill, a high-speed surgical drill used for bone cutting, sawing and drilling, and the JS Series SterilContainer S2, a reusable sterilization container for medical instruments. Stoll admitted that he never submitted any 510(k) documents to FDA regarding either device. Instead, Stoll created a fraudulent letter using FDA letterhead and bearing the forged digital signature of an FDA official that falsely stated that FDA had cleared the ELAN-4 Air to be marketed. Stoll later created another, similarly fraudulent letter on FDA letterhead for the SterilContainer JS Series medical device.

“Individuals who subvert the FDA clearance process for medical devices put patients’ lives at risk,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Justice Department will work with its law enforcement partners to prosecute individuals who falsify documents and violate the law.”

“The FDA’s checks and balances exist for one reason: to protect the public,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “One of the medical devices illegally sold in this case is meant to be used in invasive surgeries; the other, to sterilize instruments, preventing infection or contamination. Evading the prescribed FDA clearance process can literally be a matter of life and death, which is why we take these cases so seriously and work to hold perpetrators responsible for their actions.”

“The FDA must be notified and given the opportunity to clear certain medical devices before they are distributed into interstate commerce,” said Assistant Commissioner for Criminal Investigations Justin D. Green of the FDA. “A medical device distributed without FDA clearance can put patients at risk. Our office will aggressively pursue those who place patients at risk by failing to follow the law. The FDA’s Office of Criminal Investigations (OCI) protects the American public by rigorously investigating allegations involving FDA-regulated products and violations of the FDCA. In this case, OCI worked with the Justice Department to ensure a just resolution, and we applaud the exceptional work done by the team.”

FDA’s OCI investigated the case.

Trial Attorney Max Goldman and Assistant Director Ross S. Goldstein of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney and Health Care and Government Fraud Chief Mary Mary Beth Leahy for the Eastern District of Pennsylvania are prosecuting the case.

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

The Justice Department announced today that it and the Department of Health and Human Services (HHS) issued a joint letter to state Medicaid administrators urging them to ensure, in accordance with the Americans with Disabilities Act (ADA), that their Medicaid programs allow people who have both Hepatitis C (HCV) and substance use disorder (SUD) to access life-saving HCV medications called direct-acting antivirals (DAAs). 

More than two million adults in the United States have HCV, which can result in a range of serious health conditions including liver disease, liver cancer and death. However, highly effective DAA medications cure HCV in more than 95% of cases.

“Medicaid recipients with substance use disorders are entitled to the same access as others to a cure for Hepatitis C,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This letter reminds state Medicaid administrators that they have an obligation to ensure their programs are in compliance with federal civil rights law. The Justice Department stands ready to enforce the ADA in order to eliminate unnecessary barriers that stand in the way of equal access to health care.”

The letter highlights a settlement agreement between the Justice Department and Alabama’s Medicaid Agency (Alabama Medicaid) to address a policy that denied Medicaid coverage for DAAs to patients who had consumed any alcohol or illicit drugs within the six months prior to starting treatment. Alabama Medicaid’s policy meant that people with HCV and SUD, who also had evidence of recent use of alcohol and/or illicit drugs, were denied potentially life-saving medication. Following the initiation of an investigation by the department, Alabama Medicaid withdrew this policy and entered into an agreement to secure Medicaid coverage for such patients going forward.

The letter explains that both the Justice Department and HHS enforce the ADA with respect to state Medicaid programs. The ADA requires that states, in administering their Medicaid programs, provide individuals with disabilities, including SUD, equal opportunity to participate in and benefit from a state’s Medicaid program. The letter urges all state Medicaid administrators to review their current and forthcoming policies and practices, including those on HCV treatment, to determine if any changes are necessary to comply with the ADA.    

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 800-514-0301 (TTY 833-610-1264) or visit www.ada.gov. ADA complaints may be filed online at www.civilrights.justice.gov/report.

Today, the Justice Department participated in a trilateral meeting with enforcers from Mexico’s Federal Economic Competition Commission (COFECE), Canada’s Competition Bureau and the Federal Trade Commission (FTC). Discussions were held among Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, Chair Lina M. Khan of the FTC, Canadian Commissioner of Competition Matthew Boswell and President Andrea Marván Saltiel of COFECE.

The meeting, which took place in Mexico City, included discussions on competition in the technology and platform sectors and the impact of competition on labor markets, as well as discussions on new enforcement tools and bringing a whole-of-government approach to competition law.

“The competition law agencies of Canada, Mexico and the United States share the common goal to preserve and protect fair and lawful competition,” said Assistant Attorney General Kanter. “I am grateful for the opportunity to meet with our fellow enforcers and discuss opportunities to promote competition and enhance enforcement in North America.”

“This annual trilateral with our enforcement partners lets us share expertise and learning, strengthening our work to promote fair competition and protect the American public from anticompetitive and monopolistic tactics,” said Chair Khan.

Assistant Attorney General Kanter of the Antitrust Division (far right) meets with Chair Lina M. Khan of the FTC, Canadian Commissioner of Competition Matthew Boswell and President Andrea Marván Saltiel of COFECE.

The 1995 cooperation agreement between the United States and Canada, the 1999 agreement between the United States and Mexico and the 2001 agreement between Canada and Mexico laid the foundation for these meetings. The agreements commit the agencies to coordinating and cooperating with each other to ensure consistent and effective antitrust enforcement.

Tomorrow, Assistant Attorney General Kanter will deliver a keynote speech at an event hosted by COFECE commemorating the release of a special anniversary book reflecting on the development of competition policy in Mexico. The book includes essays from competition experts around the world and is being released in honor of the 10th anniversary of the agency and 30th anniversary of the passage of Mexico’s first competition law.

A federal jury convicted a Michigan businessman today of aggravated identity theft for placing the name and address of another man with the same name in legal documents to avoid a settlement payment of more than $6 million.

According to documents and evidence presented at trial, Hassan Kamal Fayad, of Dearborn, operated three medical practices and a transportation business. To fund business operations, Fayad sold outstanding medical and transportation invoices to a Texas-based investment firm. After Fayad failed to make appropriate payments to the Texas firm pursuant to their contracts, the Texas firm sued him in civil court for damages. Throughout the civil proceedings, Fayad caused the name and address of another Michigan resident who shared Fayad’s first and last name, but lived at a different address, to be placed on multiple legal documents, including on a settlement document which obligated Fayad to pay the Texas firm more than $6.3 million. Fayad’s use of the other Michigan resident’s name and address caused the garnishment of all funds from the other Michigan resident’s bank account.

A date for sentencing has not been set. 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 made the announcement.

The FBI investigated the case.

Trial Attorneys Mark McDonald and Christopher P. O’Donnell of the Justice Department’s Tax Division are prosecuting the case.

The Justice Department announced today that it secured a settlement agreement with Service Oklahoma, a state agency, to resolve its findings that the agency violated Title II of the Americans with Disabilities Act (ADA) by maintaining a mobile application that is inaccessible to individuals with disabilities.

“When public entities make services available through mobile apps, they may not exclude people with disabilities by failing to make their technology accessible,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Through this agreement, Service Oklahoma will ensure their mobile apps comply with the ADA by removing barriers that prevent Oklahomans with disabilities from accessing public services. As more state and local governments turn to mobile apps for critical public services, the Justice Department will work to ensure that people with disabilities are guaranteed the ADA’s promise of equal access.”

The department investigated Service Oklahoma’s predecessor entity based on a complaint from a blind Oklahoma resident alleging that the Oklahoma Mobile ID Application is inaccessible to individuals with vision disabilities. In November 2023, the department issued a letter of findings concluding that the mobile app imposes critical accessibility barriers for people with vision disabilities. The department found that Service Oklahoma violates the ADA by denying people with disabilities equal access to the mobile app and by failing to ensure that communications with them are as effective as communications with others.

Under the agreement, Service Oklahoma will ensure that any mobile app that it creates, administers or maintains is accessible to individuals with disabilities and conforms to Web Content Accessibility Guidelines (WCAG), Version 2.1, Level AA, which are industry guidelines for making web content accessible. Service Oklahoma will take other corrective actions, including soliciting accessibility feedback and requests from the public, retaining an ADA coordinator, providing ADA training to employees and reporting to the department.

This settlement agreement is part of the Civil Rights Division’s Tech Equity Initiative to combat disability discrimination that occurs through technology such as websites and mobile apps. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TTY 833-610-1264) or visit www.ada.gov. For more information on the Civil Rights Division, please visit www.justice.gov/crt. If you believe you’ve been discriminated against, you may file a complaint online at www.civilrights.justice.gov/.

Response Tree LLC and its president and managing member Derek Thomas Doherty have agreed to a court order resolving allegations that they violated the Telemarketing Sales Rule (TSR) by assisting and facilitating illegal telemarketing campaigns by operating as an unlawful lead generator and consent farm. Lead generators collect, aggregate and sell consumer information — or “leads” — for profit. Consent farms sell those leads coupled with consumers’ purported consent to receive certain types of telephone calls.

The stipulated order, which was entered today by the U.S. District Court for the Central District of California, prohibits Response Tree and Doherty from violating the TSR and from collecting or selling covered information — including consumers’ names, addresses, contact information, gender and age — in connection with lead generation. The order also imposes a $7 million civil penalty judgment, which is suspended based on the defendants’ inability to pay.

According to the complaint filed on Jan. 2, Response Tree and Doherty obtained consumer information and purported consent to receive certain telephone calls, including telephone calls that deliver a prerecorded message (otherwise known as robocalls) and calls made to telephone numbers on the National Do Not Call Registry. The defendants allegedly did so by operating over 50 websites that deceptively induced consumers to disclose personal information by, for example, purporting to provide mortgage refinancing services. According to the complaint, the defendants then sold the consumer data to sellers of goods and services who then inundated American consumers with illegal robocalls based on the consumers’ invalid consent. Those robocalls delivered prerecorded marketing messages, and many of them were delivered to numbers listed on the National Do Not Call Registry.

“Today’s order is a victory in the Justice Department's efforts to protect American consumers from illegal robocalls and to stop others, including those who operate unlawful consent farms, from enabling those calls,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to work with the Federal Trade Commission to enforce the Telemarketing Sales Rule.”

“Response Tree fueled millions of illegal telemarketing calls by tricking consumers into turning over their personal information and selling that information to telemarketers,” said Director Samuel Levine of the Federal Trade Commission's (FTC) Bureau of Consumer Protection. “The FTC will continue to target every corner of the illegal telemarketing ecosystem to protect consumers and hold wrongdoers accountable.” 

The case was handled by attorneys in the Civil Division’s Consumer Protection Branch, including Trial Attorney Rowan Reid and Assistant Director Rachael Doud, in conjunction with staff in the FTC’s Division of Marketing Practices. 

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

A Missouri man made his initial appearance yesterday on an indictment returned by a federal grand jury in Kansas City, Kansas, in December 2023 charging him with willfully failing to pay over employment taxes owed to the IRS.

According to the indictment, from 2017 to 2018, Ephantus Mwangi, of Loch Lloyd, owned and operated True Payments Solutions Inc. (TPS), a corporation based in Kansas. Mwangi allegedly withheld federal income and Social Security and Medicare taxes from the wages of TPS employees for six quarters in 2017 and 2018, but did not pay those withholdings to the IRS, as required by law. In total, Mwangi allegedly caused a tax loss to the IRS of approximately $337,350.

If convicted, Mwangi faces a maximum penalty of five years in prison for each of the six employment tax counts. He also faces a period of supervised release, restitution and monetary penalties. 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 Kate E. Brubacher for the District of Kansas made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney J. Parker Gochenour of the Justice Department’s Tax Division and Assistant U.S. Attorney Ryan Huschka for the District of Kansas 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.

A Kansas woman was sentenced yesterday to two years in prison for willfully failing to account for and pay over employment taxes to the IRS in connection with three construction firms that she controlled.

According to court documents and statements made in court, Sheryl Clanton, of Bucyrus, owned and operated McCorkendale Construction Inc. (McCorkendale), a business specializing in setting up and maintaining underground infrastructure. As the president of McCorkendale from 2006 through 2011, Clanton was responsible for filing quarterly employment tax returns and collecting and paying to the IRS federal income, Social Security and Medicare taxes withheld from employees’ wages. For the first quarter of 2010 through the last quarter of 2011, however, Clanton did not pay to the IRS approximately $980,536 in employee withholdings.

In 2011, Clanton abandoned McCorkendale due to its outstanding tax debts and a bank mortgage foreclosure and started McClan Construction LLC (McClan). From the second quarter of 2012 through the fourth quarter of 2017, Clanton did not pay approximately $1.1 million of employment taxes or file on behalf of McClan quarterly payroll tax returns as required by law.

Clanton also operated a third underground construction business, NJ Trenching LLC, organized in late 2011. Between 2012 and 2015, Clanton again was responsible for not reporting or paying to the IRS nearly $100,000 of employment taxes relating to NJ Trenching.

In addition to the prison sentence, U.S. District Judge Daniel Crabtree for the District of Kansas ordered Clanton to serve three years of supervised release and to pay $2,223,174.41 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 Robert Kemins and Dominick Giovanniello of the Justice Department’s Tax Division prosecuted the case.

The United States filed a civil complaint today in the U.S. District Court for the District of Colorado against Denver-area tax return preparer Daniel Mattison. The complaint seeks to enjoin Mattison from owning or operating a tax return preparation business and from preparing federal income tax returns for others.

The complaint alleges that Mattison prepared thousands of federal income tax returns for paying customers between 2018 and 2023 through his business, DCM Financial Inc. Mattison allegedly advertises his business as the “one-stop solution” for people’s tax needs, promising to help his customers and future customers get their taxes done “right.” But the complaint alleges that Mattison fails on this promise by filing tax returns for customers that are riddled with errors, fabrications and fraudulent entries. Mattison allegedly claims false tax credits, fabricates business schedules, creates bogus income and changes tax return information without the customer’s consent or knowledge to reduce taxable income and inflate refunds improperly and illegally. As the complaint states, Mattison continued to prepare and file improper and fraudulent tax returns despite repeated warnings from the IRS about Mattison’s unlawful conduct, the assessment of civil penalties against him and the temporary suspension of his Electronic Filing Identification Number (EFIN) for failing to comply with filing and payment requirements.

By repeatedly understating his customers’ tax liabilities, the complaint alleges that the United States has been harmed by Mattison’s conduct resulting in the significant loss in tax revenue of an estimated $1.99 million in 2018 and 2019 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.

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.

mattison_complaint_ecf.pdf

A Florida attorney pleaded guilty today to conspiracy to defraud the United States and tax evasion arising out of his promotion of an illegal tax shelter scheme involving false charitable deductions.

According to court documents, from at least 2013 through 2021, Michael L. Meyer, of Davie, organized and sold the Ultimate Tax Plan, an illegal tax shelter designed to assist high-income individuals in reducing their taxes. Meyer marketed the scheme as a way for clients to reduce their taxes by claiming deductions for charitable donations that he knew were fraudulent. Meyer prepared boilerplate transaction paperwork for his clients which made it appear that they had donated valuable property to charities Meyer controlled. In fact, the clients retained complete control over the donated assets. Meyer illegally advised that clients could access their donated assets for their own personal use through tax-free loans and execute an “exit strategy” to buy back their donations at a significantly discounted rate. In some instances, Meyer backdated documents so that clients could claim these purported donations on their prior years’ tax returns.  

In April 2018, the Justice Department filed a civil suit against Meyer seeking to enjoin him from continuing to promote the Ultimate Tax Plan. As part of that litigation, the department issued civil subpoenas to Meyer’s clients requesting records related to the Ultimate Tax Plan. In response, Meyer created false, backdated documents and directed clients to submit them to the Justice Department. Meyer also provided false, backdated documents in response to document demands he directly received from the Justice Department. In April 2019, a federal district court permanently enjoined him from organizing, promoting, marketing or selling the Ultimate Tax Plan. 

Meyer earned more than $10 million from selling the Ultimate Tax Plan. He used that income to purchase a multimillion-dollar estate and a luxury vehicle collection that included Lamborghinis, Rolls Royces, Mercedes Benzes, a Bentley and a Ferrari.

A sentencing date has not been set yet. Meyer faces a maximum penalty of five years in prison for each charge. He also faces a period of supervised release, restitution and monetary penalties. 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 made the announcement.

IRS Criminal Investigation is investigating the case.

Assistant Chief Michael Boteler and Trial Attorneys Andrew Ascencio and Michael Jones of the Tax Division are prosecuting the case.

A chief executive officer of an investment firm was sentenced today to two years in prison followed by one year and six months of home confinement and ordered to forfeit approximately $1.6 million for a “cherry-picking” scheme, in which he fraudulently misappropriated profitable trades to himself and saddled his investors with losses. 

According to court documents, Peter Kambolin, 48, a U.S.-Russian national of Sunny Isles Beach, Florida, was the owner and chief executive officer of Systematic Alpha Management LLC (SAM), an investment firm that Kambolin marketed as offering algorithmic trading strategies involving futures contracts. Established in 2007, by 2011, SAM had more than $720 million in assets under management. Between January 2019 and November 2021, Kambolin, who at the time was a commodity trading advisor and a commodity pool operator, engaged in a cherry-picking scheme in which he fraudulently allocated profits and losses from futures trades in a manner designed to benefit his own accounts unfairly at the expense of his clients. Kambolin also misrepresented to his clients that SAM employed trading strategies focused on cryptocurrency futures contracts and foreign exchange futures contracts, when in reality, approximately half of Kambolin’s trading in each pool involved equity index futures contracts. In doing so, Kambolin defrauded investors located in the United States and abroad by, among other things, depriving them of profitable trades. Kambolin used the proceeds of the scheme to fund personal expenses, including rent for a beachfront apartment, and transferred proceeds to foreign bank accounts his co-conspirator controlled in Belarus and Dominica.

During the relevant period, Kambolin executed trades for pool participants together with trades he executed on behalf of his proprietary accounts, and fraudulently allocated the profits and losses of the trades to benefit his own accounts.

Kambolin pleaded guilty on Oct. 11, 2023, to one count of conspiracy to commit commodities fraud.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division and Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG) made the announcement.

The FDIC-OIG investigated the case. The Commodity Futures Trading Commission previously charged Kambolin and SAM by complaint.

Trial Attorney Matt Kahn of the Criminal Division’s Fraud Section prosecuted the case.

A federal grand jury in Fort Smith, Arkansas, returned an indictment yesterday charging an Arkansas woman with evading her federal income taxes and failing to file income tax returns.

According to the indictment, Kristine J. Collins, of Centerton, did not file individual income tax returns for 2017 through 2022, despite earning sufficient income requiring her to do so. Collins was allegedly employed by a company as a senior manager in asset protection, responsible for protecting the company against internal fraud and theft. The indictment alleges that Collins supplied her employer with employee withholding certificates (Forms W-4) falsely claiming she was exempt from federal income tax withholding each year. In August 2022, when questioned by IRS special agents conducting a criminal investigation into her failure to file tax returns, she allegedly made several false statements. In approximately March 2023, Collins allegedly filed another false Form W-4 claiming exemption from income tax withholding for 2023. During the years covered in the indictment, Collins allegedly earned gross income in excess of $750,000.

If convicted, Collins faces a maximum penalty of five years in prison on each tax evasion count and one year in prison for each tax return count. 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 David Clay Fowlkes for the Western District of Arkansas made the announcement.

IRS Criminal Investigation is investigating the case.

Trial Attorney Andres Chinchilla and Assistant Chief Greg Tortella of the Justice Department’s Tax Division and Assistant U.S. Attorney Carly Marshall for the Western District of Arkansas 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.