District Not Recorded

The Justice Department Office of Community Oriented Policing Services (COPS Office) announced today that it has awarded nearly $75 million in critical grant funding to law enforcement agencies and stakeholders across the country. This funding is designed to not only assist with the Department’s crime reduction efforts, but also to provide much needed assistance to agencies looking to expand their law enforcement mental health and wellness services, combat the distribution and trafficking of illicit drugs, and receive active shooter training.

“Today’s announcement underscores the Justice Department’s commitment to supporting our state and local law enforcement partners as we work together to keep our communities safe,” said Attorney General Merrick B. Garland. “These grants build on our efforts to disrupt the trafficking of deadly drugs, expand access to the mental health and wellness services that police officers deserve, and fund other critical programs. The Justice Department will continue to do everything in our power to get law enforcement officers the resources and assistance needed to help keep them and their communities safe.”

“Every day, across the country, our state and local law enforcement partners are working tirelessly on the ground to protect our communities and preserve public safety,” said Deputy Attorney General Lisa O. Monaco. “Through the grants announced today, the Justice Department honors and supports our state and local partners with much-needed resources for community policing and critical training while increasing officer access to mental health and wellness services.”

“The COPS Office grants announced today will help ensure law enforcement agencies across the country have the resources and training they need to promote public safety and further develop police-community trust,” said Associate Attorney General Vanita Gupta. “Our investment in the Collaborative Reform Initiative, in particular, will allow the Justice Department and our law enforcement partners to continue providing critical, voluntary technical assistance and support to agencies that request it.”

“COPS Office grants work to not only reduce crime and increase public safety,” said Director Hugh T. Clements of the COPS Office. “But they also make sure that the work is done through the lens of community policing. I know that both officers and community residents will be well-served by these grants.”

Funding highlights include:

• Nearly $48 million to combat the distribution and trafficking of opioids and methamphetamine through the COPS Anti-Heroin Task Force (AHTF) program and the COPS Anti-Methamphetamine Program (CAMP).

• Through the Law Enforcement Mental Health and Wellness Act (LEMHWA) program, over $9 million to law enforcement agencies and stakeholder organizations to improve the delivery of and access to mental health and wellness services for law enforcement through training and technical assistance, demonstration projects, and implementation of promising practices related to peer mentoring mental health and wellness programs.

• Almost $11 million in active shooter training funding through the Preparing for Active Shooter Situations (PASS) program.

• Nearly $7.6 million in funding for the continuation of the Collaborative Reform Initiative, through which technical assistance providers offer expert services to state, local, territorial, and tribal law enforcement agencies to support effective community policing.

• An award for $130,000 to support the efforts of the National Blue Alert Network, a voluntary nationwide system to give authorities an early warning of threats against law enforcement and to aid in the apprehension of suspects who have killed or seriously injured an officer or deputy.

Complete lists of award recipients under these programs, including funding amounts, can be found here.

The COPS Office is the federal component of the Justice Department responsible for advancing community policing nationwide. The only Justice Department agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served. The COPS Office has been appropriated more than $20 billion to advance community policing, including grants awarded to over 13,000 state, local, territorial, and Tribal law enforcement agencies to fund the hiring and redeployment of more than 136,000 officers.

Washington – A federal grand jury in Chicago returned an indictment charging a former nursing home employee with seven counts of wire fraud.

According to court documents, Alisha Richardson, 44, of Chicago, devised a scheme to defraud her employer, a Chicago-area nursing home, of funds by falsifying records to generate payments to individuals who never worked at the facility (so-called “ghost” employees). The indictment alleges that, as part of the scheme, Richardson created false records to make it appear as though the individuals were employed as Certified Nursing Assistants, when in fact they were not working at the nursing home. The indictment further alleges that Richardson logged false hours for these “ghost” employees, which caused the nursing home to issue paychecks. According to the indictment, some “ghost” employees cashed the checks and shared the proceeds with Richardson. The indictment further alleges that on other occasions Richardson forged endorsement signatures for the individuals and deposited the paychecks into her own bank accounts. As a result of the scheme, the nursing home paid out over $100,000 for work that was never performed.

“These charges reflect the department’s commitment to hold criminals accountable for their wrongdoing,” said Principal Deputy Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We thank the FBI and the Department of Health and Human Services Office of Inspector General for their tireless efforts in investigating this case.”

“The FBI and its partners work tirelessly to ensure that those who engage in illegal activity do not go unpunished,” said Executive Assistant Director Timothy Langan of the FBI’s Criminal, Cyber, Response, and Services Branch. “This indictment shows our commitment to that sentiment and should deter others from engaging in fraudulent activities.”

“Individuals who fraudulently obtain funds that were otherwise intended to support the delivery of health care services unlawfully redirect valuable resources away from people in need of medical care,” said Special Agent in Charge Mario M. Pinto of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Chicago Region. “HHS-OIG remains committed to working together with our law enforcement partners to identify and investigate those who allegedly engage in fraud targeting our federal health care programs.”

The FBI and the HHS-OIG investigated the case.

The case is being prosecuted by Senior Trial Attorneys Raquel Toledo and James T. Nelson of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Jason Julien for the Northern District of Illinois.

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

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

The U.S. District Court for the Southern District of Texas ruled this morning that the redistricting plan used by the governing body of Galveston County, Texas, known as the Commissioners Court, violates Section 2 of the Voting Rights Act. The court held that the County’s plan denies Black and Latino voters an equal opportunity to participate in the political process and to elect a candidate of their choice.

“This decision demonstrates that the Justice Department is vigorously enforcing the Voting Rights Act in communities across the country,” said Attorney General Merrick B. Garland. “The court recognized that the Galveston County Commissioners Court redistricting plan deprived the county’s Black and Latino voters of an equal opportunity to participate in the political process and elect a candidate of their choice. The Justice Department will continue to stand up for the right of every eligible citizen to vote and to have that vote counted.”

“This ruling should send a clear message that all jurisdictions, whether at the state or local level, must comply with the Voting Rights Act,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Voting Rights Act stands as one of our most important civil rights laws that protects the ability of communities of color to participate in the political process and have an equal opportunity to elect candidates of choice. As the court made clear, this is not a typical redistricting case. Even though there was no need to do so, the commissioners court eliminated Black and Latino voters’ opportunity to have a voice on that body. As the district court correctly found, destroying the only district with a majority of Black and Latino residents is a blatant violation of the Voting Rights Act.”

“The right to vote is one of the fundamental rights in our democracy, a right guaranteed irrespective of race or ethnicity, said U.S. Attorney Alamdar Hamdani for the Southern District of Texas. “This decision protects the rights of Black and Latino voters in Galveston County and affords them an equal opportunity to have a voice on the Galveston County Commissioners’ Court consistent with federal law.”

The court held that the county’s plan prevents Black and Latino voters from electing a candidate of choice in any district. In particular, the court found that county eliminated an existing district where such an opportunity had existed for decades. The court observed that doing so was “mean-spirited” and “egregious” given that there was no reason to make major changes to the district as it had previously existed. The court concluded that the County’s elimination of that district extinguished the Black and Latino communities’ voice on its commissioners court. It does so even though these two groups comprise 38% of the total population in Galveston County.

Because candidate qualifying for Galveston County’s 2024 elections is fast approaching, the County has until Oct. 20 to enact a redistricting plan that contains at least one district that provides Black and Latino voters with an equal opportunity to elect a candidate of choice to the county governing body. If the county prefers not to submit a revised plan, the court has ordered it to implement a redistricting plan presented by the United States on or before Nov. 1.

The court’s ruling comes following a bench trial earlier this year that lasted from Aug. 7 through 18. The redistricting plan at issue in the case was adopted by the county on Nov. 12, 2021, after release of the data from the 2020 Census. The Justice Department filed its complaint against Galveston County in March 2022.

Complaints about discriminatory practices may be reported to the Civil Rights Division through its internet reporting portal at www.civilrights.justice.gov or by calling (800) 253-3931.

Additional information about the Civil Rights Division’s work to uphold and protect the voting rights of all Americans is available on the Justice Department’s website at www.justice.gov/crt/voting-section.

I’d like to thank ABA SEER for inviting me to your environmental law conference.

It’s a pleasure to be here, and in particular to appear with Tommy Beaudreau, who has had a phenomenal career as Deputy Secretary at the Department of the Interior.

For those I haven’t met before, my name is Todd Kim, and I have the great privilege to serve as the Assistant Attorney General of the Environment and Natural Resources Division at the Department of Justice.

Becoming the AAG for ENRD has been a homecoming for me. I originally joined the Division as an Honors Attorney, and I spent almost eight years in the Division’s Appellate Section. I’m very proud to be back at ENRD, and I’m eager to talk with you about our work and how it relates to your experiences representing private clients on environmental compliance issues or working on environmental initiatives in the public sector.

Today, I’ll briefly address ENRD practice in the Supreme Court, and then focus on environmental justice and climate change—priority issues for this ambitious Administration. But let me start with a short overview of ENRD.

As most of you know, ENRD is one of the litigating divisions at DOJ. We’re sometimes called the “world’s largest environmental law firm,” with over 600 employees, including more than 400 attorneys. 

ENRD’s mission is to protect the health and welfare of the American people, preserve our breathtaking landscapes and precious natural resources, and ensure that all Americans are treated fairly under the law.

And our civil and criminal enforcement efforts have real nationwide impact. In fiscal year 2023, for instance, we obtained over $400 million in civil and criminal fines, penalties and costs recovered, and we secured federal injunctive relief valued at over $2.3 billion.

ENRD, of course, also has a substantial practice defending agency actions taken or challenged under environmental and natural resource laws, in addition to acquiring lands needed for federal projects, and litigating to secure and protect the rights and resources of federally recognized tribes.

Let’s turn now to substantive topics. Environment and natural resource matters appear on the Supreme Court’s docket with some frequency, and ENRD plays an important role in assisting the Solicitor General in handling these matters.

Today, I’d like to mention three cases—one current, two recent—that reflect how environmental law is at the cutting edge of administrative law.

First, the current case: Loper Bright Enterprises v. Raimondo, which involves the doctrine of judicial deference named after the famous case of Chevron v. NRDC. 

This case directly concerns whether the D.C. Circuit erred in applying Chevron to hold that the National Marine Fisheries Service had authority to promulgate a particular rule under the Magnuson-Stevens Fishery Conservation and Management Act.

But the question on which the Supreme Court granted certiorari in May transcends this particular context. That question reads: “Whether the Court should overrule Chevron or at least clarify that statutory silence concerning controversial powers expressly but narrowly granted elsewhere in the statute does not constitute an ambiguity requiring deference to the agency.”

As I’m sure you recognize, a decision in this case may have broad implications for administrative practice across the federal government. The brief of the United States, filed last month, argues that the Court should not overrule Chevron because it is a bedrock principle of administrative law that sets clear ground rules for all three branches of government, and principles of stare decisis weigh heavily in favor of adhering to Chevron. I commend the brief to you for reading. 

Oral argument has not yet been set in the case. Stay tuned.

Next, let’s turn back to June of last year, and the Supreme Court’s decision in West Virginia v. EPA. The Court concluded that a particular Clean Air Act provision did not authorize the EPA to devise emission limitations for power plants based on the generation-shifting approach in the Clean Power Plan issued in 2015.

Of interest beyond the Clean Air Act, the Court articulated a major questions doctrine under which, absent a sufficiently clear statement from Congress, courts should not interpret a statute to authorize certain “novel” or “unprecedented” agency actions of “vast economic and political significance.” 

The full implications of the ruling are still being debated. In the sixteen months following the decision, litigants have raised the major questions doctrine in a wide array of challenges to agency actions. This body of law will continue to develop. Again, stay tuned.

Finally, Sackett v. EPA, a decision from this past May. There, the Court held that an adjacent wetland is within the Clean Water Act’s protections as a “water of the United States” only if the wetland has a continuous-surface connection with a body of water that is itself a covered “water of the United States.” The Court interpreted this statutory phrase to include relatively permanent bodies of water connected to a traditional navigable water. The Court rejected the “significant nexus” standard established in 2006 under Justice Kennedy’s concurring opinion in Rapanos v. United States.

The United States is of course committed to following the law and implementing the Clean Water Act to deliver the essential protections that safeguard the nation’s waters from pollution and degradation. Let me highlight some actions that have already occurred since Sackett issued.

Last month, to conform to the decision, EPA and the Department of the Army published a rule amending the definition of “waters of the United States” in regulations that had issued in January. For example, the new rule removed the “significant nexus” standard from consideration when identifying tributaries and other waters as federally protected.  Going forward, the agencies will also continue to interpret the regulations defining “waters of the United States” consistent with the Sackett decision through the wide range of tools available: approved jurisdictional determinations, guidance, agency forms and training materials, or future rulemaking as appropriate. 

Litigation challenging the January rule also continues in various courts. In light of Sackett and the new rulemaking, ENRD teams have been working with the parties and making appropriate filings in cases in the Sixth Circuit, the District of North Dakota, and the Southern District of Texas.

I highlight each of these cases because they are important, and their full implications are as yet uncertain. Once more: stay tuned.

Now let me turn to two of the Administration’s key priorities: furthering environmental justice and combating the climate crisis.

All Americans should be able to breathe clean air, be protected from the worsening effects of climate change, and have access to safe drinking water. Yet across the nation, there are communities—all too often low-income communities, communities of color, and indigenous communities—that suffer disproportionately from environmental injustice.

Last fall, I was in Jackson, Mississippi. Unprecedented flooding had caused Jackson’s largest water treatment facility to fail.  At least 150,000 residents were left without drinking water. My division, working with EPA, the City of Jackson, and the State of Mississippi, quickly negotiated an interim order, subsequently approved by a federal district court, that put in place an Interim Third-Party Manager, among other important steps to stabilize the public drinking water system. 

Unfortunately, there are other problems facing the people of Jackson. The City has longstanding issues complying with a Clean Water Act consent decree; billions of gallons of untreated or partially treated wastewater have spilled into neighborhoods and the Pearl River. Just two weeks ago, we successfully moved the district court to approve another interim order that will ensure that some repairs are made to the sewer system in the near term to address these sewage overflows.

The kind of inequity and injustice that the people of Jackson have suffered goes against everything we stand for as a nation. But it persists. So, this Administration is taking action toward its ambitious environmental justice goals. ENRD’s role in that process is central. 

Case in point: in May of last year, the Department of Justice established an Office of Environmental Justice and housed it within ENRD. Our new office acts to engage the entire Department in the collective pursuit of environmental justice, so that ENRD and the Department as a whole do our best to protect overburdened and underserved communities and to promote fair and equal treatment and meaningful involvement of all people in the decision-making that affects their lives. The Office of Environmental Justice has been very active—look, for instance, to how it has been training the environmental justice coordinators that every one of the 94 U.S. Attorney’s Offices have appointed.

Another demonstration of our commitment is the Department’s Comprehensive Environmental Justice Enforcement Strategy. This strategy establishes four principles that will guide the advancement of environmental justice through federal enforcement. These principles are that we will: prioritize cases that will reduce public health and environmental harms to overburdened and underserved communities; make strategic use of all available legal tools to address environmental justice concerns; ensure meaningful engagement with impacted communities; and promote transparency in our environmental justice enforcement. The strategy is on our website, as will be the annual report that we are releasing today; I hope you’ll take a look.

That report has much more, but here are some examples of the Department’s environmental justice work.

Earlier this year, the Department launched the Puerto Rico and U.S. Virgin Islands Environmental Crimes Task Force to investigate and prosecute violations of federal environmental law in that region. This task force will leverage resources from many federal agencies to aggressively prosecute environmental crimes and associated fraud, waste, and abuse. We’re working with the U.S. Attorney’s Office and more than fifteen federal agencies to consider a wide range of potential violations, ranging from oil or chemical spills to issues involving air quality or toxic waste.

Among many specific case examples I could highlight, ENRD has also recently filed Clean Water Act claims against the City of Baytown, Texas for hundreds of instances of untreated sewage discharge into waterways in and around the City. In that case we seek injunctive relief and penalties, with the goal of ensuring that the Baytown community has access to clean water.

I should emphasize, though, that the Department’s environmental justice efforts are not limited to ENRD’s cases.  Several months ago, for instance, the Civil Rights Division secured a settlement in its environmental justice investigation into the City of Houston’s response to illegal dumping in Black and Latino Neighborhoods.

The Department’s environmental justice strategy also recognizes the need to prioritize enforcement that addresses the unique impacts that tribal communities may face, including impacts to treaty rights, water, land, or other resources needed to support tribal sovereignty and homelands.  Over the past year, with the Department’s Office of Tribal Justice, ENRD has convened three summits with various federal agencies and tribal governments to discuss how the federal government and tribes can more effectively work together on these issues. 

So here’s the takeaway for those who deal with compliance matters. Our enforcement decisions take into account the imperative to advance environmental justice.  We are listening to concerns expressed in historically overburdened and underserved communities across the country and are actively seeking to address those concerns. We encourage industry clients to be sure they are listening to neighboring communities and meeting their obligations under federal environmental law.  The failure to do so could result in federal enforcement.

This brings me to my last big topic—climate. In Executive Order 14,008, President Biden directed the United States Government to “combat the climate crisis with bold, progressive action that combines the full capacity of the Federal Government with efforts from every corner of our Nation…”  

ENRD is doing its part, hand-in-hand with client agencies and our state, local, and tribal partners. For example, ENRD will partner with EPA on the new National Enforcement and Compliance Initiatives and Climate Enforcement and Compliance Strategy that Assistant Administrator Uhlmann mentioned yesterday.

Where available, we will use statutory authority directed at specific greenhouse gases.  But existing law also enables us to enforce violations that indirectly result in excess greenhouse gases, and to seek remedies that will ensure future compliance, notwithstanding the growing threats of drought, extreme temperatures, wildfires and flooding. 

So, what we consider ENRD “climate” cases has a fairly flexible definition, covering three broad categories of matters: first, affirmative litigation to mitigate greenhouse gas emissions; second, affirmative litigation to otherwise protect natural resources and the environment against climate-related threats; and third, climate-related defensive litigation.  Let’s take a quick look at each of these areas.

First, in the most classic “climate case” typology, we bring affirmative enforcement actions that reduce, or promote absorption of, greenhouse gas emissions. Many types of sources generate pollution contributing to climate change, including petrochemical plants, cement kilns, fossil-fuel power plants, refrigerants and foam insulation, oil and gas production, refineries, landfills and mobile sources. ENRD’s docket includes many cases against such sources under the pollution control statutes administered by EPA, especially the Clean Air Act. 

For example, this April, we announced settlements under which three natural gas processors agreed to pay over $9 million in penalties and to make improvements to prevent leaks and emissions at 25 natural gas processing plants and 91 compressor stations in 12 states and Indian Country. Once fully implemented, the agreements will reduce greenhouse gas emissions by more than 50,000 tons per year.

One growing field of enforcement involves HFCs, greenhouse gases hundreds to thousands of times more potent than carbon dioxide. In 2020, Congress enacted the bipartisan American Innovation and Manufacturing Act, providing EPA with new authority to phase down the production and consumption of HFCs. 

To help ensure the integrity of the program and a rigorous and timely phasedown, ENRD participates in a multi-agency enforcement and prosecution initiative to prevent the illegal trade, production, use, and sale of HFCs, along with EPA and the Departments of Homeland Security, State, and Defense. We expect to see even more case referrals from our key client agencies as the initiative ramps up. 

And we have affirmative case work enforcing laws that protect critical carbon “sinks” like wetlands and forests, which absorb greenhouse gases and slow climate change. We bring actions under the Clean Water Act to respond to illegal filling of wetlands without a required permit. We also work in the international arena to reduce deforestation worldwide, including through criminal prosecutions under the Lacey Act and other criminal statutes to counter trade in illegally harvested timber.

Indeed, ENRD has prioritized investigating and prosecuting timber trafficking offenses. The Division’s Environmental Crimes Section partners regularly with U.S. Attorneys’ offices to prosecute cross-boundary offenses. Our successful prosecutions to date have yielded the highest ever fine for timber trafficking, in a case against Lumber Liquidators; restitution to foreign countries like Peru for timber illegally sourced from their countries; and many lessons about how trafficking works, and how we can stop it.

The Division has also focused on developing relationships with foreign governments and strengthening their ability to detect and prosecute these offenses. Because these crimes cross boundaries, it is essential that U.S. and foreign enforcement personnel understand our mutual legal frameworks, how they complement each other, and how each country and its economy and natural resources affect the global supply chain. 

This April, the Department formalized some of this work, announcing the formation of a Timber Working Group. It is an interagency collaboration created to target available resources across the federal government to identify and investigate complex timber trafficking cases domestically and transnationally; to develop new tools and techniques to investigate and prosecute timber trafficking cases; and to build the ability of partner governments worldwide to combat this devastating illegal trade.

That brings me to the second broad category of climate cases I mentioned: affirmative litigation to protect wildlife and natural resources. These cases may include claims on behalf of Indian tribes or federal agencies to secure water rights as well as reserved treaty, hunting, fishing and gathering rights on behalf of tribes.  These are all resources under increasing threat from the effects of climate change—increasing temperatures, drought, and more. 

And in the final broad category, ENRD’s docket contains an increasing number of cases defending greenhouse gas emissions regulations and controls; agency actions in support of the conversion to cleaner energy; and various policy and management decisions to protect sensitive resources.

For example, last month, after extensive briefing, ENRD participated in oral arguments defending two significant EPA actions under the Clean Air Act with climate implications. On September 14 and 15, the D.C. Circuit heard oral arguments in Texas v. EPA, a challenge to EPA’s 2021 regulations prescribing greenhouse gas emission standards for passenger cars and light trucks; and then Ohio v. EPA, a challenge to EPA’s waiver of Clean Air Act preemption to allow California to operate its pre-existing vehicle emissions program, including its zero-emission vehicle and greenhouse gas standards.

In closing, it is obviously an exciting and important time to be an environmental lawyer. I know I am excited to be at ENRD as we hope to undertake even more of this vital work in the years ahead.

Thank you very much.

Two former tactical officers for the Tennessee Department of Corrections Strike Force pleaded guilty for their roles in the assault of an inmate and the cover up that followed at Northwest Correctional Complex in Tiptonville, Tennessee.

Javian Griffin, 38, of Nashville pleaded guilty yesterday to using unlawful force on an inmate and to providing false information in his official report for the incident. His co-defendant, Sebron Hollands, 33, of Clarksville pleaded guilty last week to providing false information in his official report regarding the same incident.

“These two defendants used their power as correctional officers to engage in criminal conduct that victimized a person in state custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to hold accountable correctional officers who assault inmates and then try to cover up their criminal conduct.”

“We look to corrections officers to keep prisons safe and secure and to carry out their duties with the utmost integrity,” said U.S. Attorney Kevin G. Ritz for the Western District of Tennessee. “Instead of upholding and enforcing the oath he took, this officer used his position of authority to violate an inmate’s rights and then conceal the harm he caused. No correctional officer is above the law. This office’s National Security and Civil Rights Unit will continue to prioritize the prosecution of public employees who violate the civil rights of others.”

“Correctional officers who abuse their authority and harm or cover up harm to inmates whose safety they are charged with undermine the criminal justice system as a whole,” said Special Agent in Charge Douglas S. DePodesta of the FBI Memphis Field Office. “The FBI is committed to protecting the civil rights of all people and will aggressively investigate and bring to justice any officer who violates the civil rights of those they are sworn to protect.”

According to court documents, Griffin admitted that he punched an inmate, identified as K.W., in the head without justification, breaking his jaw. Griffin admitted that at the time he punched K.W., the inmate did not resist or pose a threat justifying his use of force. Griffin and Hollands each admitted that they provided false information in their official reports to obstruct the investigation of the incident.

Pursuant to the plea agreement, the parties agreed to jointly recommend that Griffin serve a 48-month prison sentence. Hollands faces a maximum penalty of 20 years in prison for his false report. Sentencing is scheduled for Griffin on March 5, 2024. Sentencing is scheduled for Hollands on Jan. 19, 2024. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI Memphis Field Office investigated this case.

Assistant U.S. Attorney David Pritchard for the Western District of Tennessee and Trial Attorneys Andrew Manns and Matthew Tannenbaum for the Justice Department’s Civil Rights Division prosecuted the case.

The Justice Department and Consumer Financial Protection Bureau (CFPB) issued a joint statement today that reminds financial institutions that all credit applicants are protected from discrimination on the basis of their national origin, race and other characteristics covered by the Equal Credit Opportunity Act (ECOA), regardless of their immigration status. The Justice Department and CFPB are issuing this statement because consumers have reported being rejected for credit cards as well as for auto, student, personal and equipment loans because of their immigration status, even when they have strong credit histories and ties to the United States and are otherwise qualified to receive the loans.

While the ECOA allows a creditor to consider an applicant’s immigration status when necessary to ascertain the creditor’s rights regarding repayment, creditors should be aware that unnecessary or overbroad reliance on immigration status, including when that reliance is based on bias, may run afoul of the law.

“Lenders should not deny people the opportunity to take out a loan to buy a home, build their businesses or otherwise pursue their financial goals because of unlawful bias and without regard to their actual ability to repay,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This guidance reminds lenders that denying someone access to credit based solely on their actual or perceived immigrant status may violate federal law.”

“Fair access to credit is crucially important for building wealth and strengthening household financial stability,” said CFPB Director Rohit Chopra. “The CFPB will not allow companies to use immigration status as an excuse for illegal discrimination.”

Some financial institutions have maintained blanket policies denying credit to individuals based on their immigration status, regardless of their personal circumstances and demonstrated ability to repay, arguing that the ECOA, and the regulation that implements it, protect them whenever they consider immigration status in making a credit decision. Others have incorrectly claimed that the Act shields lenders from liability under other federal and state civil rights laws that bar discrimination on the basis of someone’s status as an immigrant or noncitizen.  

The joint statement explains that while the ECOA allows creditors to consider immigration status when necessary to ascertain the creditor’s rights regarding repayment, unnecessary or overbroad reliance on immigration status may violate the Act’s prohibition of discrimination on the basis of national origin, race or another prohibited basis. The joint statement also confirms that neither the ECOA nor its regulations provide companies a safe harbor with respect to other laws barring discrimination on the basis of immigration status.

Read today’s joint statement.

The Civil Rights Division enforces federal laws that protect individuals from discrimination based on your race, color, national origin, disability status, sex, religion, familial status or loss of other constitutional rights. If you believe your civil rights, or someone else’s, have been violated, submit a report using our online form.

The CFPB is a 21st century agency that implements and enforces federal consumer financial law and ensures that markets for consumer financial products are fair, transparent and competitive. For more information, visit consumerfinance.gov.

Consumers can submit complaints about financial products or services by visiting the CFPB’s website or by calling (855) 411-CFPB (2372). Employees who believe their companies have violated federal consumer financial protection laws are encouraged to send information about what they know to whistleblower@cfpb.gov. To learn more about reporting potential industry misconduct, visit the CFPB’s website.

An IRS contractor, Charles Littlejohn, 38, of Washington, D.C., pleaded guilty today to disclosing tax return information without authorization.

“By using his role as a government contractor to gain access to private tax information, steal that information, and disclose it publicly, Charles Littlejohn broke federal law and betrayed the public’s trust,” said Attorney General Merrick B. Garland. “In every case, the Department of Justice is committed to following the facts wherever they lead and holding accountable those who violate our laws.”

“The unauthorized theft and disclosure of tax return information by government employees or contractors is a serious breach of the public’s trust,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “The Department will hold accountable those who illegally exploit their access to sensitive personal information.”

“The Treasury Inspector General for Tax Administration (TIGTA) is dedicated to conducting comprehensive investigations of criminal activity that impacts federal tax administration. The American people have every right to expect the utmost integrity from those who are granted access to sensitive taxpayer information through their employment with the IRS. TIGTA stands ready to investigate, pursue, and bring to justice any individuals, whether they be employees, contractors, or unaffiliated outside parties who abuse IRS’s systems, steal taxpayer information, and/or illegally disclose taxpayer information,” said Deputy Inspector General for Investigations Trevor Nelson of TIGTA. “TIGTA is committed to investigating and bringing to justice those individuals who illegally disclose taxpayer information. I want to thank TIGTA special agents, the Department of Justice Public Integrity Section, and the U.S. Attorney’s offices for their hard work in their commitment to this goal.”

According to court documents, Littlejohn, while working at the IRS as a government contractor, stole tax return information associated with a high-ranking government official (Public Official A). Littlejohn accessed tax returns associated with Public Official A – and related individuals and entities – on an IRS database after using broad search parameters designed to conceal the true purpose of his queries. He then evaded IRS protocols established to detect and prevent large downloads or uploads from IRS devices or systems. Littlejohn then saved the tax returns to multiple personal storage devices, including an iPod, before contacting News Organization 1. Between around August 2019 and October 2019, Littlejohn provided News Organization 1 with the tax return information associated with Public Official A. Littlejohn then stole additional tax return information related to Public Official A and provided it to News Organization 1. In September 2020, News Organization 1 published a series of articles about Public Official A’s tax returns.

In July and August 2020, Littlejohn separately stole tax return information for thousands of the nation’s wealthiest individuals. Littlejohn was again able to evade IRS detection. In November 2020, Littlejohn disclosed this tax return information to News Organization 2, which published over 50 articles using the stolen data. Littlejohn then obstructed the forthcoming investigation into his conduct by deleting and destroying evidence of his disclosures.

Littlejohn pleaded guilty to unauthorized disclosure of tax return and return information. He is scheduled to be sentenced on Jan. 29, 2024, and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

TIGTA investigated the case.

Trial Attorneys Lauren Castaldi and Jonathan E. Jacobson of the Justice Department’s Public Integrity Section are prosecuting the case, with substantial assistance from Assistant U.S. Attorney Eleanor Hurney for the Northern District of West Virginia.

If you believe you are a victim in this case, please contact the Public Integrity Section by email at CRM-PIN.Victims@usdoj.gov. Victims can find case updates and additional information at www.justice.gov/criminal-vns/case/united-states-v-charles-littlejohn.

A former police officer with the Elkhart Police Department, Joshua Titus, 34, was sentenced today to one year and one day in federal prison followed by one year of supervised release for his role in assaulting a handcuffed detainee in his custody.

On Dec. 8, 2022, Titus’s co-defendant, former Elkhart Police Officer Cory Newland, 40, was sentenced to 15 months in prison for his role in the same offense. Titus and Newland were both sentenced by District Court Judge Phillip P. Simon in the Northern District of Indiana after pleading guilty to their respective roles in the assault.

“When officers abuse their power by assaulting handcuffed and defenseless arrestees, it erodes the public trust and tarnishes the reputation police officers everywhere,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “No one is above the law, and the Justice Department will continue to ensure that officers who violate the rights of individuals in their custody are held accountable.”

“To have effective law enforcement, the public must be confident that the officers will perform their duties consistently, within the boundaries of the constitution and federal law,” said U.S. Attorney Clifford D. Johnson for the Northern District of Indiana.  “Instead of honoring their duties by protecting and serving the public, these defendants engaged in criminal behavior. When this happens, my office will fulfill our duties by vigorously prosecuting those officers.”

“The majority of law enforcement officers are well trained professionals who uphold their oath to serve and protect and do so with the utmost integrity. But the few who violate that oath and betray public trust will be held accountable,” said Acting Special Agent in Charge Robert “Alex” Middleton of the FBI Indianapolis Field Office. “There is no acceptable level of abuse of power and the FBI will vigorously investigate those officers who violate that oath.”

According to court documents, on Jan. 12, 2018, while on duty, Newland assisted in the arrest of an individual identified by the initials M.L. and transported him to the booking area at the police department. Once at the police department, M.L. was placed in a chair with his hands handcuffed behind his back, with both arms behind the back of the chair. While seated in the chair, M.L. spat in the direction of Newland, at which point both Titus and Newland began punching M.L. in the face, causing him to fall backwards onto the concrete floor. Titus and Newland then hunched over M.L. and punched him approximately 10 more times in the face and body. Both former officers have acknowledged that they knew at the time of the assault that their use of force on M.L. was unjustified and unlawful under the circumstances.

The FBI Indianapolis Field Office investigated this case.

Trial Attorney Katherine G. DeVar of the Justice Department’s Civil Rights Division and General Crimes Unit Chief Abizer Zanzi for the Northern District of Indiana prosecuted the case.

A former chief executive officer of an investment firm pleaded guilty yesterday to 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. 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-coconspirator controlled in Belarus and Dominica.

“The defendant breached client trust for personal profit,” said Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division. “This conduct undermines investor confidence in the commodities markets. This plea demonstrates that the Justice Department will not allow financial advisors to place their self-interest ahead of clients, including by cherry-picking trades. It also underscores the Justice Department’s commitment to using data analytics to prosecute wrongdoing in the financial markets.”

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.

“Yesterday’s plea recognizes the importance of holding the defendant accountable for his actions in misleading and defrauding investors through a cherry-picking scheme, and using proceeds from the scheme to fund his own personal lifestyle,” said Assistant Inspector General for Investigations Shimon R. Richmond of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The FDIC-OIG remains committed to working with our law enforcement partners to protect investors and the nation’s banking system from individuals who commit such egregious financial crimes.”

Kambolin pleaded guilty to conspiracy to commit commodities fraud. He faces a maximum penalty of five years in prison. A sentencing date has not yet been set. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FDIC-OIG is investigating 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 is prosecuting the case.

The Justice Department issued the following statement from Attorney General Merrick B. Garland after his meeting with the President and members of his national security team regarding the terrorist attacks on Israel:

“Hamas’ horrific terrorist attacks on Israel mark the deadliest massacre of Jews since the Holocaust. My heart is with the families whose loved ones have been killed and those whose loved ones are still missing.

“Since these attacks began, the Justice Department has focused on working with the families of missing Americans to locate their loved ones. We continue to work on the return of all missing Americans, including those believed to be taken hostage.

“The Justice Department has offered assistance to the Israeli government, including through the FBI’s Critical Incident Response Group (CIRG), Operational Technology Division (OTD), and Laboratory Division. These highly trained hostage rescue specialists and other experts stand ready to advise their Israeli counterparts to help locate and bring home missing U.S. citizens.

“In addition, the FBI’s Victim Services Division will continue to coordinate with the State Department to provide support and information to the loved ones of Americans who are missing. For assistance or to report information about missing Americans, call the FBI at 1-800-CALL-FBI.

“And, as always, we remain focused on the threat terrorism poses to our country. Today, I briefed President Biden and his national security team on the Justice Department’s dedication of critical resources to monitor the potential threat of terrorism here at home.”

A New York man pleaded guilty today to conspiring to defraud the United States relating to his efforts to conceal income from the IRS.

According to court documents and statements made in court, Aniello Strocchia, of Maspeth, owned and operated an auto repair shop. From 2013 to 2017, Strocchia, along with others, cashed more than $1.3 million in checks payable to his auto shop at check-cashing businesses instead of depositing those funds into the business’ bank account. Strocchia concealed the check-cashing activity from his tax return preparers which resulted in the filing of false tax returns that underreported the auto repair shop’s gross receipts and ordinary business income, as well his total personal income. Strocchia used the unreported income on personal expenditures, including luxury car purchases and approximately $500,000 in extensive home renovations.

If convicted, Strocchia faces a maximum penalty of five years in prison. 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 Breon Peace for the Eastern District of New York made the announcement. 

IRS-Criminal Investigation is investigating the case. 

Trial Attorneys Matthew Cofer and Ann M. Cherry of the Tax Division are prosecuting the case.

The Justice Department announced today that it has secured an agreement to improve and expand educational opportunities for students in the Fayette County School District in Tennessee. The consent order was approved by U.S. District Court Judge S. Thomas Anderson for the Western District of Tennessee as part of a longstanding school desegregation case.

Under the consent decree, the school district will improve its practices for identifying and serving students in its gifted programs and in dual enrollment classes, which give high school students access to college-level coursework; bolster efforts to recruit and retain diverse faculty; and revise student discipline policies to prevent racial discrimination and support a positive climate, including by ending the use of corporal punishment.   

“School desegregation and equal access to a quality education was critically important nearly 70 years ago when the Supreme Court decided Brown v. Board, and it is critically important today,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains steadfast in our commitment to making real the promise of Brown and dismantling the legacy of discrimination in our schools. This consent decree is a giant step forward for students deserving of racially just and equitable outcomes in Fayette County Schools. These reforms will expand access to enriched academic opportunities and give students the positive, inclusive learning environment they need to thrive.”

As part of the consent decree, the court declared the district had met its desegregation obligations in several areas of operations, including staff assignment, facilities, transportation and extracurricular activities. The consent decree also provides that the district will, among other requirements:

• Work with the Justice Department and private plaintiffs represented by the NAACP Legal Defense Fund to develop an effective and sustainable student assignment policy to further desegregation in its schools;
• Adopt a plan to ensure that all students, including Black students, are properly identified for enrollment in its gifted program and that the district delivers gifted services to properly designated students in a nondiscriminatory manner;
• Review its enrollment in advanced and dual enrollment courses in secondary schools to identify any racial disparities and implement practicable responses designed to reduce barriers that limit the participation of Black students;
• Work with a consultant to implement changes to its student discipline policies designed to reduce racial disparities in discipline, and instill positive reinforcement techniques;
• Eliminate the use of corporal punishment, a practice that undermines effective implementation of positive behavioral interventions; and
• Conduct a comprehensive review of the district’s hiring policies and procedures to identify racial disparities in the recruitment, hiring, promotion and retention of Black faculty and implement appropriate remedial measures.

Next year marks the 70th anniversary of the U.S. Supreme Court’s decision in Brown v. Board of Education. The Justice Department’s Civil Rights Division continues to prioritize enforcement of desegregation orders in school districts formerly segregated by law, to ensure that all children can access the building blocks of educational success. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section.

Members of the public may report possible civil rights violations at www.civilrights.justice.gov/report.

A Nevada woman pleaded guilty on Friday to assisting in the preparation of false income tax returns.

According to court documents and statements made in court, from 2015 to 2020, Jessica Avras operated a Las Vegas tax preparation business. During that time, Avras prepared and filed false returns that fraudulently reduced the income tax owed and/or inflated the tax refunds due to her clients. Avras routinely reported fictitious businesses that had significant purported losses or reported fabricated deductions, including noncash charitable contributions and sales taxes. Avras admitted that her conduct caused a tax loss to the IRS of approximately $525,000.

Avras is scheduled to be sentenced on Jan. 4, 2024, and faces a maximum penalty of three years in prison. She also faces a period of supervised release 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 Jason M. Frierson for the District of Nevada made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Thomas Flynn and Samuel Robins of the Tax Division are prosecuting the case.

A federal jury in Fort Pierce, Florida, convicted a Florida man on Oct. 6 for his role in a scheme to defraud Medicare of over $67 million by tricking physicians into authorizing thousands of genetic tests that were completely unnecessary and not used in the treatment of the Medicare beneficiaries who took them.

According to court documents and evidence presented at trial, Jose Goyos, 37, of West Palm Beach, managed a call center that engaged in deceptive telemarketing calls targeting thousands of Medicare beneficiaries and their physicians. Goyos and his co-conspirators managed the so-called “doctor chase” division of the call center, which contacted the primary care physicians of targeted Medicare beneficiaries and tricked these medical providers into ordering and authorizing medically unnecessary genetic tests based on medical paperwork that the call center created. For example, Goyos directed call center employees to falsely represent to providers that the Medicare beneficiaries were “mutual patients” who requested these genetic tests, and that the beneficiaries had medical conditions justifying genetic testing, when neither statement was true. 

Goyos and his co-conspirators then used those doctors’ authorizations to submit claims to Medicare for the expensive and unnecessary genetic tests. In reality, the labs were shells; they had no equipment, did not conduct a single test, and had no lab personnel. Goyos and his co-conspirators referred all the genetic tests to other labs, which conducted them at a small fraction of the price that Goyos and his co-conspirators charged to Medicare. Finally, after the tests were conducted, the results often were not sent to the Medicare beneficiary’s primary care physicians and were not used in the treatment of the beneficiary.

In total, between June 2020 and July 2021, Goyos and his co-conspirators submitted over $67 million of these false and fraudulent claims to Medicare, of which Medicare paid over $52 million.

The jury convicted Goyos of conspiracy to commit wire fraud and conspiracy to commit money laundering. He is scheduled to be sentenced on Dec. 21. He faces a maximum penalty of 20 years in prison for the conspiracy to commit wire fraud count and 10 years in prison for the conspiracy to commit money laundering count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

To date, 20 other defendants have pleaded guilty in the scheme to various charges, including the leaders of the scheme – Daniel M. Carver, Thomas Dougherty, and John Paul Gosney Jr. – who are scheduled to be sentenced in December.

Acting Assistant Attorney General Nicole M. Argentieri of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, and Deputy Inspector General for Investigations Christian J. Schrank of the Department of Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.

The FBI and HHS-OIG investigated the case.

Trial Attorneys Patrick J. Queenan, Reginald Cuyler Jr., and Andrew Tamayo of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat health care fraud through the Health Care Fraud Strike Force Program. Since March 2007, this program, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the 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.

On Tuesday, Oct. 3, the Justice Department's Office of Community Oriented Policing Services (COPS) Office and the Reporters Committee for Freedom of the Press convened a meeting of law enforcement executives and members of the press, facilitated by the Police Executive Research Forum (PERF), to discuss recommendations for law enforcement interactions with journalists during protests and mass demonstrations. The discussion was prompted by a request from the Reporters Committee, which expressed the need for concrete, specific suggestions that would account for both the important role of the working press in a functioning democracy, as well as the challenge of policing large protests and demonstrations.

Associate Attorney General Vanita Gupta, who asked the COPS Office to convene the meeting, addressed the participants saying, “Each of you in this room has a difficult job. Journalists are entrusted with uncovering truth, holding those in power accountable, and providing the public with the information they need to make informed decisions. Law enforcement officers are constantly balancing their mandate to preserve public safety and fight crime, with the imperative to work constantly and consistently to build trust and maintain positive relationships with the communities they serve.” Associate Attorney General Gupta went on to say that “[t]he recommendations that come from today’s discussion, and the many conversations leading up to this event, will without a doubt accrue to everyone’s benefit.”  

Last year, the department issued recommendations for law enforcement related to First Amendment issues in the context of mass demonstrations, but yesterday’s discussion focused specifically on best practices for law enforcement interactions with journalists.

The group discussed issues including safeguarding First Amendment rights, the identification of members of the news media during protest activity, the utility in a persistent point of contact for open communication between press and police during protest activity, the importance of developing relationships between the press and police in advance of demonstrations, the need for a “playbook” before a planned event, the challenges brought about by social media, and more. The result of the discussion will be a series of recommendations that will be widely disseminated by the Justice Department, law enforcement organizations, and the media.

In addition to the Associate Attorney General, attendees included COPS Office Director Hugh Clements, other Justice Department officials and COPS Office staff; representatives of the Reporters Committee; journalists, editors and senior managers from major broadcast and print outlets; and law enforcement executives from across the country.

A federal grand jury in Lexington, Kentucky, returned an indictment today charging a former Boyle County Sheriff’s Deputy with five counts of deprivation of rights under color of law, one count of falsification of records and one count of conspiracy.

According to court documents, during 2021, then-Sheriff’s Deputy Tanner M. Abbott, 30, of Danville, Kentucky, violated the civil rights of five people by using excessive force while arresting them. During one of these arrests, Abbott also conducted an illegal warrantless search of a hotel room. The indictment further alleges that on two occasions, Abbott obstructed justice by writing and conspiring with another person to write false police reports to conceal his misconduct.

The civil rights charges each carry a maximum penalty of 10 years in prison. The falsification of records charge carries a maximum penalty of 20 years in prison. The conspiracy charges carry a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Carlton S. Shier IV for the Eastern District of Kentucky and Special Agent in Charge Michael E. Stansbury of the FBI Louisville Field Office made the announcement.

Assistant U.S. Attorney Zachary Dembo for the Eastern District of Kentucky and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section 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 federal grand jury in Cleveland returned a superseding indictment today charging Steven Saris of Canton, Ohio, with operating illegal gambling businesses (IGBs), tax evasion, conspiracy to defraud the United States, willful failure to collect and pay over employment taxes, money laundering and an obstruction-related offense. Saris was previously indicted and charged with one count of owning and operating an IGB.

According to the superseding indictment, from 2012 through 2022, Saris owned and operated multiple IGBs in Ohio, including Café 62, Lucky’s, Winner’s World, Spin City and an IGB located in Springfield, Ohio. He allegedly concealed his involvement in these IGBs by having others serve as the nominee owners of the businesses. Saris allegedly did not file personal income tax returns with the IRS for 2016 through 2021 even though he allegedly received more than $4 million in income from the IGBs. To further conceal his involvement in and income from the IGBs, Saris allegedly destroyed and directed others to destroy business records associated with each IGB. The indictment further alleges that Saris paid IGB employees in cash and did not account for or pay over employment taxes.

The indictment alleges that Saris lied to investigators about his ownership and involvement in Winner’s World and attempted to prevent investigators from finding and taking his cell phone during the execution of a search warrant at his home by allegedly concealing it inside the water tank of a toilet.

If convicted, Saris faces a maximum penalty of five years in prison for each count of tax evasion, illegal gambling business, conspiracy, employment tax and destruction and removal of property to prevent seizure; he faces a maximum penalty of ten years in prison for each money laundering 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 Rebecca C. Lutzko for the Northern District of Ohio made the announcement.

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

Trial Attorney Sam Bean of the Tax Division and Assistant U.S. Attorney Aaron Howell for the Northern District of Ohio 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 federal jury in Central Islip, New York, convicted a Long Island fisherman today for crimes associated with his captainship of the trawler New Age from 2014 to 2017. The jury unanimously convicted Christopher Winkler of Montauk, New York, of one count of federal criminal conspiracy, two counts of mail fraud and two counts of obstruction of justice.

On at least 200 fishing trips, Winkler targeted summer flounder (fluke) and black sea bass and harvested those fish in excess of quotas and state trip limits. He also falsified Fishing Vessel Trip Reports (FVTRs) for those trips. His co-conspirators falsified corresponding dealer reports. Both sets of false documents were used to cover up fish that Winkler took in excess of quotas.

“Fluke and black sea bass play a vital part in our marine ecosystem and quotas are designed to prevent overfishing and stabilize populations for the public good,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue to seek justice against those who flout laws that protect fisheries and the fishing industry.”

“While most U.S. fishermen follow the law, some still feel that they are above it,” said Michael Henry, Acting Assistant Director of NOAA's Office of Law Enforcement, Northeast Division. “It is our job to protect honest fishermen and good actors and this verdict should serve as a reminder that those who break the rules will be held accountable.”

Fishing quotas for fluke and black sea bass were designed by the National Oceanic and Atmospheric Administration (NOAA) and the New York Department of Environmental Conservation to ensure a long-term, sustainable population of the fish. As part of the fisheries management plan, NOAA requires fishing captains like Winkler to accurately complete an FVTR at the end of each fishing trip. Winkler was required to declare his catch – which included fish species and weights – to NOAA and the State of New York. To cover up his illicit harvest and landings, Winkler falsified approximately 200 FVTRs that he then mailed to NOAA.

Similarly, a fish dealer – which is the first company that buys fish directly from a fishing vessel –must specify what it purchases on a federal form known as a dealer report. NOAA uses this information to set policies designed to provide for biologically and economically viable fish stocks. Winkler sold illegal fish to three fish dealers. Because a mismatch between FVTRs and dealer reports would have alerted fisheries statisticians and enforcement personnel, Winkler’s co-conspirators falsified dealer reports to cover up that fish were taken in excess of quotas. The entire scam netted an overharvest of approximately 200,000 pounds of fluke and black sea bass, valued conservatively at least at $750,000 (wholesale).

In a related case, Bryan Gosman and Asa Gosman of Bob Gosman Co. Inc. – a Montauk-based fish dealer – previously pleaded guilty to a charge of criminally conspiring with Christopher Winkler in November 2021. They testified at the trial against Winkler. It was revealed during the trial that Bryan Gosman had served as a lookout for Winkler on at least 16 occasions during the conspiracy, often communicating by text before the defendant arrived at the dock.

Sentencing for all three defendants will be scheduled by the court.

NOAA’s Office of Law Enforcement investigated the case as part of Operation One-Way Chandelier.

Christopher L. Hale and Kenneth Nelson of the Justice Department’s Environmental Crimes Section prosecuted the case, with logistical support from the U.S. Attorney’s Office for the Eastern District of New York.

The Justice Department issued the following statement from Attorney General Merrick B. Garland on the transfer of approximately 1.1 million 7.62mm rounds to the Ukrainian armed forces. The U.S. Government obtained ownership of these munitions on July 20, through the Justice Department’s civil forfeiture claims against Iran’s Islamic Revolutionary Guard Corps (IRGC). The munitions were originally seized by U.S. Central Command naval forces from the transiting stateless dhow MARWAN 1, on Dec. 9, 2022. The munitions were being transferred from the IRGC to the Houthis in Yemen in violation of the United Nations Security Council Resolution 2216.

“With this weapons transfer, the Justice Department's forfeiture actions against one authoritarian regime are now directly supporting the Ukrainian people's fight against another authoritarian regime. We will continue to use every legal authority at our disposal to support Ukraine in their fight for freedom, democracy, and the rule of law.”

A Washington man was sentenced today in federal court for committing a hate crime in connection with an arson at a nightclub and event space in Seattle, Washington.

Kalvinn Garcia, 26, of Sedro Woolley, was sentenced to 48 months in prison followed by three years of supervised release for his bias-motivated arson at Queer/Bar, a nightclub and event space in Seattle.

According to facts admitted in his guilty plea, on Feb. 24, 2020, Garcia set fire to the contents of a dumpster in the alley directly behind Queer/Bar. Garcia was arrested only minutes after setting the fire. Garcia admitted to law enforcement that he set the fire and that he targeted Queer/Bar because it angered him to see a sign that said “queer.” Garcia also told officers, “I think it’s wrong that we have a bunch of queers in our society.” A few weeks after the incident, Garcia told a stranger that his intent in setting the fire was to trap and hurt the people inside. Garcia admitted that, through the use of fire, he willfully attempted to cause bodily injury to the occupants of Queer/Bar because of their actual or perceived sexual orientation or gender identity.

“The defendant committed an act of violence targeting innocent victims inside Queer/Bar, a known safe space for the LGBTQI+ community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Bias-motivated violence runs contrary to our values and violates our federal civil rights laws. This sentence should send the message that every person in our nation deserves equal protection under the law regardless of who they love or how they identify and that those carrying out similar acts of violence against the LGBTQI+ community will be brought to justice.”

“Mr. Garcia endangered the lives of more than 100 people because of his hatred for members of our LGBTQI+ community,” said Acting U.S. Attorney Tessa M. Gorman for the Western District of Washington. “We work diligently with our federal, state and local partners to investigate and prosecute acts of hatred against people because of their sexuality or gender identity. This work is a priority because the effect of these hate crimes can linger in communities and traumatize the members of the targeted community for weeks, months or years after.”

“Mr. Garcia admitted to setting the fire in an effort to hurt people based on his own bias,” said Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office. “No person in the United States should fear for their safety based on their sexual orientation or gender identity. I am proud of the continued work of the FBI and our partners in protecting the civil rights of all people.”

The FBI Seattle Field Office and the Seattle Police Department investigated the case.

Assistant U.S. Attorney Will Dreher for the Western District of Washington and Trial Attorney Matthew Tannenbaum of the Civil Rights Division’s Criminal Section prosecuted the case.

For more information and resources about the department’s work to combat hate crimes, visit www.justice.gov/hatecrimes.

The Justice Department announced today that it will monitor the election on Oct. 3 in certain jurisdictions in the state of Alaska to ensure compliance with the minority language accessibility requirements of the Voting Rights Act of 1965. On election day, the Civil Rights Division will be monitoring in the following jurisdictions: Dillingham Census Area, Kusilvak Census Area and North Slope Borough, Alaska.

The division regularly deploys its staff to monitor for compliance with the federal civil rights laws in elections in communities all across the country. In addition, the division also deploys monitors from the Office of Personnel Management, where authorized by federal court order. 

Individuals can file complaints related to possible violations of the federal voting rights laws by a complaint form on the department’s website civilrights.justice.gov/ or by telephone toll-free at 800-253-3931. In addition, individuals may also report complaints by email to voting.section@usdoj.gov.

Visit www.justice.gov/crt/voting-section for more information about the Voting Rights Act and other federal voting rights laws.

The Justice Department today announced the unsealing of eight indictments in the Middle and Southern Districts of Florida charging China-based companies and their employees with crimes relating to fentanyl and methamphetamine production, distribution of synthetic opioids, and sales resulting from precursor chemicals. 

The indictments build on prosecutions announced in June and mark the second set of prosecutions to charge China-based chemical manufacturing companies and nationals of the People’s Republic of China (PRC) for trafficking fentanyl precursor chemicals into the United States. 

The indictments complement actions taken today by the Department of the Treasury’s Office of Foreign Assets Control (OFAC) to designate 28 individuals and entities involved with the international proliferation of illicit drugs. 

“We know that the global fentanyl supply chain, which ends with the deaths of Americans, often starts with chemical companies in China,” said Attorney General Merrick B. Garland. “The United States government is focused on breaking apart every link in that chain, getting fentanyl out of our communities, and bringing those who put it there to justice.” 

“The international dimension to the deadly scourge of fentanyl requires the all-of-government response that we are delivering today,” said Secretary of Homeland Security Alejandro Mayorkas. “Through the dedication and investigative abilities of agents and officers from HSI, CBP, and our federal partners, we are bringing accountability to ruthless organizations and individuals resident in the People’s Republic of China and to the cartel members that seek to profit from the death and destruction that fentanyl causes.” 

“The charges announced today are another down payment on the Justice Department’s pledge to every American family that has lost a loved one to fentanyl poisoning,” said Deputy Attorney General Lisa O. Monaco. “Just as we did in the fight against terrorists and cybercriminals, we are deploying a whole-of-government approach – sharing intelligence, combining resources, and relentlessly pursuing justice – to attack the global supply chain fueling the fentanyl crisis. We will not rest until we have rid our communities of this poison.” 

“Fentanyl is the deadliest drug threat our nation has ever faced. These eight cases are the result of DEA’s efforts to attack the fentanyl supply chain where it starts — in China. Chinese chemical companies are fueling the fentanyl crisis in the United States by sending fentanyl precursors, fentanyl analogues, xylazine, and nitazenes into our country and into Mexico. These chemicals are used to make fentanyl and make it especially deadly,” said Drug Enforcement Administration (DEA) Administrator Anne Milgram. “DEA will not stop until we defeat this threat. We are grateful to our law enforcement partners whose collaboration and dedication have made these actions possible. I am also deeply grateful for the incredible work by the DEA Miami Field Division. Their pursuit of these organizations demonstrates the drive and determination of the men and women, who are working as one DEA, to defeat the cartels and their entire global supply chain.” 

“This investigation of a narcotics trafficker utilizing counterfeit postage labels highlights the unique jurisdiction of the Postal Inspection Service,” said Chief Postal Inspector Gary R. Barksdale of the U.S. Postal Inspection Service (USPIS). “This indictment is a win in our battle against counterfeit postage and those seeking to use the nation’s mail system to distribute dangerous substances.” 

The DEA led the investigations brought in both districts and used its unique authority to specially schedule protonitazene and metonitazene as Schedule I controlled substances, which was necessary as their adverse health effects, including death, pose an imminent threat to public safety. As a result of that order, the regulatory controls and administrative, civil, and criminal sanctions applicable to Schedule I controlled substances can be imposed on persons who handle or propose to handle these substances. In addition, Homeland Security Investigations (HSI) and U.S. Customs and Border Protection (CBP) seized more than 1,000 kilograms of fentanyl-related precursor chemicals, and the USPIS also traced packages containing the precursor chemicals mailed through the U.S. mail and analyzed their contents after seizure. 

Fentanyl is the deadliest drug threat facing the United States. Not only is fentanyl 50 times more potent than heroin and 100 times more potent than morphine, a dose of as little as two milligrams can kill a grown adult. Fentanyl analogues are similar in chemical structure and effects as fentanyl. Fentanyl is the leading cause of death for Americans ages 18 to 49. From February 2022 to January, at least 105,263 Americans died of drug overdoses, the majority of which involved synthetic opioids such as fentanyl and fentanyl analogues. 

Protonitazene and metonitazene are synthetic opioids that were emergency listed as Schedule I controlled substances in April 2022. There are no approved medical uses for protonitazene and metonitazene in the United States, or anywhere else in the world. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Methamphetamine overdose deaths are also surging in the United States. Methamphetamine is becoming more deadly because it is more frequently being mixed with highly potent fentanyl. There are currently no FDA-approved medications for treating methamphetamine use disorder or reversing overdoses. Drug overdose deaths involving psychostimulants, primarily methamphetamine, rose from 547 deaths in 1999 to 32,537 deaths in 2021.  

The manufacture of fentanyl and methamphetamine begins with raw chemicals, known as precursors. Fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids are manufactured and distributed by China-based chemical companies, many of which openly advertise on the internet. These China-based manufacturers ship fentanyl and methamphetamine precursors, opioid additives, and synthetic opioids around the world, including to the United States and Mexico, where drug cartels and traffickers combine the chemicals and then distribute fentanyl and methamphetamines throughout the United States to individual users.  

These China-based chemical companies often attempt to evade law enforcement by using re-shippers in the United States, false return labels, false invoices, fraudulent postage, and packaging that conceals the true contents of the parcels and the identity of the distributors. In addition, these companies tend to use cryptocurrency transactions to conceal their identities and the location and movement of their funds. 

The primary distributors of fentanyl and fentanyl analogues in North America are the Sinaloa Cartel based in Sinaloa, Mexico, and the Cartel Jalisco Nueva Generación based in Jalisco, Mexico. These two transnational criminal organizations have significant presences throughout Mexico, maintain distribution hubs in various cities across the United States, and control smuggling corridors into the United States. 

Organizations such as the Sinaloa Cartel and Cartel Jalisco Nueva Generación receive fentanyl precursors from China that are then synthesized within clandestine laboratories into finished fentanyl at scale. China-based precursor chemical manufacturers ship precursors from mainland China by, among other methods, mislabeling the products being shipped and using containers and other packaging to mask their illicit contents. 

Middle District of Florida 

Five indictments were unsealed in the Middle District of Florida charging five Chinese corporations and eight Chinese nationals with the illegal importation of fentanyl and fentanyl-related chemicals into the United States. 

According to the indictments, the defendants openly advertised their ability to thwart U.S. customs and deliver the chemicals used to make fentanyl to the Middle District of Florida and elsewhere in the United States. The defendants used fake shipping labels and special delivery procedures to ensure the illicit chemicals went undetected. The defendants played various roles, such as coordinators and suppliers, and eight defendants are also charged with international money laundering. According to the indictments, the Chinese companies demonstrated past success delivering a stable supply of product to clients in Mexico for years.   

“The protection of our country from the deadly scourge of fentanyl is a key priority of the Department of Justice and my office,” said U.S. Attorney Roger B. Handberg for the Middle District of Florida. “We will continue to pursue cases against Chinese chemical companies who are knowingly manufacturing and exporting fentanyl precursors to profit on the pain and suffering of people in the United States. We thank our partners at the Drug Enforcement Administration for their tireless efforts in support of these prosecutions.” 

Hebei Shenghao Import and Export Company, based in Shijiazhuang, Hebei Province, China, is charged with fentanyl trafficking conspiracy, along with Chinese nationals Qingshun Li, 29, who allegedly negotiates the sale of precursor chemicals and maintains a bank account for the receipt of payments; Qingsong Li, 32; and Chunhui Chen, 33, both of whom allegedly maintain cryptocurrency wallets for the remittance of payments of precursor chemicals; Chunzhou Chen, 30, who allegedly received Western Union payments on behalf of Hebei Shenghao. 

Lihe Pharmaceutical Technology Company, based in Wuhan, Hebei Province, China, was charged with fentanyl trafficking conspiracy and international money laundering, along with Chinese nationals Mingming Wang, 34, who is the alleged holder for three bitcoin accounts shared by sales agents for Lihe Pharmaceutical, and Xinqiang Lu, 40, the alleged recipient of funds via Western Union on the company’s behalf. 

Henan Ruijiu Biotechnology Company, based in Zhengzhou, Henan Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Yongle Gao, 30, who is the alleged registered owner of the bitcoin wallet associated with Henan Ruijiu. 

Xiamen Wonderful Biotechnology Company, based in Xiamen, Fujian Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering, along with Chinese national Guo Liang, 34, the alleged registered owner of the bitcoin wallet associated with Xiamen Wonderful. 

Anhui Ruihan Technology Company, based in Hefei, Anhui Province, China, was charged with attempted importation of fentanyl precursor and attempted international money laundering. 

DEA investigated these cases. 

Assistant U.S. Attorney Daniel Baeza and Special Assistant U.S. Attorney Michael Leath for the Middle District of Florida are prosecuting the cases. 

Southern District of Florida 

Three indictments were unsealed in the Southern District of Florida charging three Chinese companies and four officers and employees with fentanyl trafficking, synthetic opioid trafficking, precursor chemical importation, defrauding the U.S. Postal Service, and making and using counterfeit postage. 

“Targeting those who fuel the opioid epidemic, regardless of who they are and where they are operating from, is one of our district’s top priorities,” said U.S. Attorney Markenzy Lapointe for the Southern District of Florida. “Today, we announced charges against the Chinese companies and employees that manufacture and introduce the raw chemicals at the start of the fentanyl and methamphetamine supply chain. This is only the beginning of our fight. The precursors and synthetic opioids that are being marketed, sold, and shipped to the United States and Mexico are being mixed and re-distributed into our local communities as powerful and potentially deadly cocktails of controlled substances. We commend our partner agencies for their skill and resourcefulness, as we work collectively to prosecute the sources of the poison and protect the public.”

Hanhong Medicine Technology Company, a pharmaceutical company located in Wuhan, Hubei Province, China, was charged in a four-count indictment, along with Chinese nationals Changgen Du, 30, and Xuebi Gan, 28. According to the indictment, Hanhong has exported large quantities of fentanyl precursors and non-opioid additives, like xylazine, to the United States and Mexico, including to a drug trafficker in Pennsylvania and to a drug trafficker in the Sinaloa cartel for the manufacture of fentanyl in Mexico for eventual distribution in the United States. Xylazine is often mixed with fentanyl to increase the effects of the drug for users. Xylazine is a non-opioid drug approved for veterinary use for purposes of sedation, anesthesia, muscle relaxation, and pain relief in horses, cattle, and other animals. It is not approved for human use. Many opioid users are unaware they are taking xylazine. Overdose deaths involving xylazine have steadily increased year over year. Drug users who inject xylazine, or drug mixtures containing xylazine, often develop necrotic tissue resulting in disfiguring wounds or amputation.  

The Du Transnational Criminal Organization is listed on the United States Attorney General’s Consolidated Priority Organization Target (CPOT) list. The CPOT list identifies the most significant transnational criminal organizations presenting a priority threat to the United States, including those international drug and money laundering organizations affecting the illicit drug supply of the United States. The CPOT list identifies those criminal organizations by the name(s) of their leaders. Du, as the criminal organization’s leader, is the director of Hanhong and allegedly negotiates sales with customers. Gan is an alleged sales representative. Du and Gan each operated a crypocurrency wallet that accepted payment for Hanhong’s sales. The four-count indictment charges Hanhong, Du, and Gan with conspiracy to manufacture and distribute fentanyl; conspiracy to manufacture and distribute a fentanyl precursor with intent to unlawfully import it into the U.S.; manufacturing and distributing a fentanyl precursor with intent to unlawfully import it into the U.S.; and conspiracy to commit money laundering. 

Jiangsu Bangdeya New Material Technology Company, a pharmaceutical company located in Jiangsu, China, was charged in an eight-count indictment, along with Jiantong Wang, 40, a Chinese national and alleged owner and operator of Bangdeya. The indictment alleges that Bangdeya advertises openly online as an export company for chemicals, including synthetic opioids protonitazene and metonitazene. The introduction of these synthetic opioids into the illicit drug market threatens to exacerbate the overdose problem in the United States. Drug traffickers typically mix protonitazene and metonitazene with other opioids, such as fentanyl, to create new and more powerful cocktails of dangerous opioids. Bengdeya has imported large quantities of these synthetic opioids into the U.S., including to a drug trafficker in the Southern District of Florida. 

Bangdeya and Wang were charged with conspiracy to import protonitazene and metonitazene; conspiracy to distribute protonitazene and metonitazene; multiple counts of distribution of protonitazene; conspiracy to defraud the United States and make and use forged and counterfeited postage; and making and printing unauthorized postage meter stamps. 

Hubei Guanlang Biotechnology Company, a chemical company located in Shijaizhuang, Hebei Province, China, was charged in a two-count indictment, along with Chinese national Wei Zhang, 28, who allegedly runs the day-to-day operations of the company and operates a cryptocurrency wallet that accepts payment for the company’s sales of fentanyl precursors and opioid additives.  

According to the indictment, Guanlang openly advertises online and sells an array of chemicals, including methamphetamine precursors like methylamine HCL, to customers in the United States and Mexico. Methylamine HCL is an essential precursor chemical that Mexican cartels use to manufacture highly pure and potent  methamphetamine. Currently, most of the methamphetamine supply in the United States is produced by drug trafficking cartels in Mexico. 

Guanlang and Zhang are charged with conspiracy to manufacture and distribute a methamphetamine precursor and unlawfully import into the U.S. and conspiracy to unlawfully import a methamphetamine precursor into the U.S. with the intent to manufacture methamphetamine; and the manufacture and distribution of a methamphetamine precursor that was unlawfully imported into the United States. 

The DEA Miami Field Division, HSI Miami, USPIS-Miami, IRS-CI Miami, and FBI Miami Field Office investigated these cases.   

Assistant U.S. Attorney Monique Botero and Jon Juenger for the Southern District of Florida are prosecuting the cases. Assistant U.S. Attorney Michell Hyman for the Southern District of Florida is handling asset forfeiture. 

The U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN) provided assistance with the indictments brought in both districts. 

The indictments are a result of Organized Crime Drug Enforcement Task Forces (OCDETF) investigations. The OCDETF mission is to identify, disrupt, and dismantle the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency task force approach. OCDETF synchronizes and incentivizes prosecutors and agents to lead smart, creative investigations targeting the command-and-control networks of organized criminal groups and the illicit financiers that support them. Additional information about the OCDETF Program may be found at www.justice.gov/OCDETF. 

Members of the South Florida High Intensity Drug Trafficking Area (HIDTA) Task Force carried out this case and prosecution. HIDTA was established in 1990. This program, which is made up of federal, state, and local law enforcement agencies, fosters intra-agency cooperation among law enforcement agencies in South Florida and involves them in developing a strategy to target the region's drug-related and violent crime threats to public safety, as with the opioid epidemic, fentanyl, and the cocaine threat to our nation. The South Florida HIDTA uses the funding provided by the Office of National Drug Control Policy, out of the Executive Office of the President of the United States, that sponsors a variety of law enforcement initiatives that target the region's illicit drug and violent crime threats to our community. 

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

The Justice Department announced today that JAG Management Company LLC (JAG), which manages large apartment properties in several states, agreed on Friday to pay $61,581 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA). The Justice Department’s complaint alleges that JAG imposed illegal fees on at least nine servicemembers who had exercised their right under the SCRA to terminate their leases after receiving qualifying military orders. The servicemembers were residents of the Jefferson Mount Laurel apartment complex in Mount Laurel, New Jersey. The termination fees ran as high as $2,750 per servicemember.

“Servicemembers should not have to pay any fees – much less exorbitant fees – to landlords when they are simply complying with their military orders and protecting our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution reaffirms the Justice Department’s unwavering commitment to protecting the rights of servicemembers, veterans and their families.”

“Our office is committed to protecting the rights of servicemembers who make tremendous sacrifices on behalf of our nation,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Landlords and property managers may not unlawfully penalize members of our armed forces who are simply carrying out their duty. Through this consent order, we protect the rights of servicemembers and provide compensation to those who suffered harm when they were allegedly unlawfully charged early lease termination fees upon receiving military orders.”

The complaint filed today in the U.S. District Court for the District of New Jersey alleges that Coast Guard Lieutenant Daniel Pereira sought to terminate his lease with JAG Management after he received permanent change of station orders transferring him from Philadelphia to New London, Connecticut. Lt. Pereira provided JAG with timely written notice of his lease termination and a copy of his transfer orders before vacating his apartment. However, two months after moving, Lt. Pereira was notified – for the first time – that JAG was demanding that he repay a $2,100 rent concession he received when he signed his lease. Despite Lt. Pereira’s efforts to resolve the matter, including providing JAG with the relevant provisions of the SCRA and prior Justice Department cases on this issue, JAG reported the debt to credit reporting agencies and Lt. Pereira’s credit score was downgraded. The complaint also alleges that JAG charged illegal fees to at least eight other servicemembers, representing the U.S. Air Force, Army, Coast Guard and Air National Guard, who had exercised their right to terminate their residential leases upon receipt of qualifying military orders.

Under the terms of the proposed consent order, which was filed with the complaint and is subject to court approval, JAG Management must pay a total of $41,581 in damages to the nine servicemembers. JAG must also pay a civil penalty of $20,000 to the federal government. In addition, JAG must implement policies to ensure it complies with the SCRA, trains employees on the protections afforded by the SCRA and reports future SCRA-related complaints to the federal government.

The U.S. Attorney’s Office for the District of New Jersey and the Civil Rights Division’s Housing and Civil Enforcement Section investigated JAG Management’s leasing practices after receiving a referral from the Justice Department’s Servicemembers and Veterans Initiative.

The purpose of the SCRA is to allow servicemembers to devote their entire energy to the national defense. The SCRA provides protections to servicemembers in areas such as evictions, security deposits, pre-paid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. The SCRA also allows servicemembers to terminate their residential leases after entering military service or receiving military orders for a permanent change of station, deployment or retirement without paying a penalty or an early termination charge.

Since 2011, the department has obtained over $481 million in monetary relief for over 146,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

Servicemembers and their dependents who believe their rights under the SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil.

Individuals who believe their civil rights have been violated may also file a complaint with the U.S. Attorney’s Office for the District of New Jersey at www.justice.gov/usao-nj/civil-rights-enforcement/complaint or may call the U.S. Attorney’s Office’s Civil Rights Complaint Hotline at (855) 281-3339.

Moustafa Moustafa, M.D. and his medical practice, South Carolina Nephrology and Hypertension Center Inc., of Orangeburg and Bamberg, South Carolina, have agreed to pay $585,540 to resolve False Claims Act allegations that they received illegal kickbacks in violation of the Anti-Kickback Statute in return for referring patients for laboratory testing. Dr. Moustafa and his practice have agreed to cooperate with the Justice Department's investigations of, and litigation against, other participants in the alleged kickback schemes.

“Financial inducements to healthcare providers can influence medical decisions and undermine the integrity of public healthcare programs,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will continue to hold accountable those who participate in kickback arrangements, including unlawful arrangements involving clinical laboratory testing.”

The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded healthcare programs. The Anti-Kickback Statute is intended to ensure that medical providers’ judgments are not compromised by improper financial incentives and are instead based on the best interests of their patients.

The settlement announced today resolves allegations that Dr. Moustafa and his practice received kickbacks in violation of the Anti-Kickback Statute in return for Dr. Moustafa’s laboratory referrals and caused the submission of false or fraudulent claims to Medicare and TRICARE.

• Office Rent and Phlebotomy Kickbacks. From June 2017 to December 2021, Dr. Moustafa and his practice allegedly received thousands of dollars in remuneration disguised as purported office space rental and phlebotomy payments, paid monthly or in a lump sum money order, from a clinical laboratory in Anderson, South Carolina, in return for Dr. Moustafa’s laboratory referrals.

• Clinical Staff Kickbacks. From August 2020 to December 2022, Dr. Moustafa and his practice allegedly received from a clinical laboratory in Kenilworth, New Jersey, remuneration in the form of free clinical staff to provide services to Dr. Moustafa’s practice unrelated to that laboratory, in return for Dr. Moustafa’s referrals for laboratory testing.

• Consulting and Medical Director Kickbacks. From September 2019 to March 2023, Dr. Moustafa allegedly received from marketing company Ralston Health Group Inc. (Ralston) thousands of dollars in remuneration disguised as consulting and medical director payments, paid monthly, in return for Dr. Moustafa ordering clinical laboratory services from five laboratories. The settlement resolves allegations that Ralston kicked back to Dr. Moustafa a portion of the commissions those five laboratories paid to Ralston, in return for Dr. Moustafa ordering laboratory testing from those laboratories.

“Rooting out healthcare fraud is a priority in the District of South Carolina,” said U.S. Attorney Adair F. Boroughs for the District of South Carolina. “Kickbacks raise costs for taxpayers and undermine our healthcare programs by leading to unnecessary medical services. We are committed to holding those who give and receive illegal kickbacks accountable.”

“Kickbacks have no place in our healthcare system,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Health care providers and clinical laboratories are on notice that benefits in exchange for referrals are improper, and may violate the Anti-Kickback Statute. We will continue to pursue those who enter into unlawful arrangements that waste taxpayer dollars and improperly influence healthcare providers’ medical judgments.”

“Healthcare providers who accept kickbacks can allow greed to influence their medical decision-making, putting patients and their healthcare programs at risk of harm,” said Special Agent in Charge Naomi Gruchacz of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work alongside our law enforcement partners to protect HHS programs from abuse and ensure that patient needs drive providers’ decisions.”

“Kickback schemes have no place in federal healthcare programs and will not be tolerated,” said Special Agent in Charge Christopher Dillard of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “DCIS and our partner agencies continue to stand firm in our dedication to protect the integrity of these programs.”

The settlement was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorneys’ Offices for the Districts of South Carolina and New Jersey, with assistance from the Federal Bureau of Investigation, HHS-OIG and DCIS.  The settlement announced today was handled by Senior Trial Counsel Christopher Terranova in the Civil Division’s Commercial Litigation Branch (Fraud Section), Assistant U.S. Attorney Beth C. Warren for the District of South Carolina and Assistant U.S. Attorney Kruti Dharia for the District of New Jersey.

The government’s pursuit of this matter illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

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

The Justice Department’s Environment and Natural Resources Division (ENRD), Office of Environmental Justice and Office of Tribal Justice helped convene a Federal/Tribal Regional Summit in Minnesota’s Twin Cities on Sept. 26 and 27; the event was hosted by the Regional Solicitor’s office of the U.S. Department of the Interior. Summit participants also included Justice Department personnel from the Community Relations Service and Executive Office for U.S. Attorneys as well as Tribal nations representatives from Minnesota, Wisconsin, Nebraska, Michigan, Iowa and South Dakota.

Assistant Attorney General (AAG) Todd Kim of ENRD challenged the group to identify new ways to work together to support Tribal sovereignty and ensure the preservation of sustainable Tribal homelands.

“The United States supports Tribal sovereignty and self-determination and has a unique government-to-government relationship with Tribes,” he said. “And, like the U.S. Constitution and federal statutes, treaties are the supreme law of the land. This administration is fully committed to using all available authorities to protect Tribal treaty and reserved rights and to supporting Tribal efforts to strengthen Tribes’ resilience in responding to climate impacts that include erosion, drought, wildfires and rising sea levels.”

AAG Kim pointed to last week’s historic settlement of litigation by Tribes over management of the Columbia River System. AAG Kim noted that all parties hope the settlement “will further a comprehensive solution to restore salmon populations in the Basin while also advancing clean energy goals.”

The Summit featured an address by Midwest Regional Administrator Debra Shore of the Environmental Protection Agency as well as short presentations and in-depth discussions on environmental justice; Tribal treaty rights related to hunting, fishing and gathering of natural resources; Tribal jurisdictional issues; trespass on Tribal lands; identification and enforcement of environmental crimes; and climate adaptation strategies. Additional sessions focused on best practices for working with federal agencies on ensuring protection of Tribal rights and resources.

This meeting was the second of three Regional Summits planned for 2023, and follows national conversations with Tribes held in Washington, D.C., in November 2022 and Columbia, South Carolina, earlier this year. The Summits are intended to deliver on the promise in the Department’s Comprehensive Environmental Justice Enforcement Strategy to work with Tribal governments and other federal agencies to “address and incorporate Tribal concerns into the Department’s enforcement work.” 

The next Regional Federal/Tribal Summit is scheduled for Oct. 15-17 in Albuquerque, New Mexico.

The Justice Department sued the state of Colorado today for unnecessarily segregating adults with physical disabilities, including older adults, in nursing facilities in violation of the Americans with Disabilities Act (ADA) and the U.S. Supreme Court’s decision in Olmstead v. L.C. The department previously notified Colorado of its findings of civil rights violations in a March 2022 letter to Colorado Governor Polis. The letter identified steps that Colorado should take to remedy the identified violations.

“Far too often, people with physical disabilities – including older adults – are institutionalized in nursing facilities when they could live in their own homes,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is steadfast in its commitment to protect the rights of people with disabilities and ensure the promise of community integration enshrined in the Americans with Disabilities Act.”

The ADA and the Olmstead decision require state and local governments to make their services for people with disabilities available in the most integrated setting appropriate to each person’s needs, regardless of their age or type of disability. These include services that help with bathing, dressing, managing medications and preparing meals. But many Coloradans with physical disabilities are denied a meaningful choice to receive the services they need in their own homes and communities, instead of in nursing facilities.

Many of Colorado’s Medicaid-funded nursing facility residents are interested in moving back to their homes and communities and could live at home successfully if the needed services were provided at home. Yet few Coloradans with physical disabilities who want to move out of nursing facilities, or who are at risk of having to enter nursing facilities, get these community-based State services. Most nursing facility residents are unaware of the services available to help them move to and live successfully in the community. 

The Civil Rights Division’s Disability Rights Section investigated this case, with assistance from the U.S. Attorney’s Office for the District of Colorado.

For more information on the ADA, please call the department’s toll-free ADA Information Line at 1-800-514-0301 (TDD 800-514-0383) or visit www.ada.gov/topics/community-integration/.

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

The letter of findings can be viewed here.

The Justice Department announced today that it has secured a $130,000 agreement resolving allegations that Abraham Kesary, violated the Fair Housing Act by sexually harassing multiple female tenants at the Los Angeles rental property he managed. The settlement also resolves claims against M&F Development LLC, the owner of the property.

“Tenants have the right to live in their homes free from sexual harassment by their landlords,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce fair housing laws against landlords who prey on vulnerable residents.”

“Our office will not stand for unlawful discrimination of any type,” said U.S. Attorney Martin Estrada for the Central District of California. “The lengthy course of sexual harassment against female residents alleged in this case is disturbing and unacceptable. We will continue to be vigilant in holding landlords and property managers accountable for discrimination and harassment and the Fair Housing Act gives us a powerful tool to seek justice for victims.”

Under the agreement, subject to approval by the U.S. District Court for the Central District of California, M&F Development LLC will pay $120,000 to compensate individuals harmed by the harassment and a $10,000 civil penalty to the United States.

In addition, the consent order prohibits Kesary from managing rental housing and requires M&F Development LLC to retain an independent property manager to manage the rental property and to implement non-discrimination policies and complaint procedures to prevent sexual harassment at the property in the future. The order also requires both defendants to take fair housing training.

The lawsuit alleged that Kesary sexually harassed female tenants at 445 S. Western Avenue in Los Angeles since at least 2012. According to the complaint, Kesary offered housing-related benefits in exchange for sexual acts, made unwelcome sexual comments and advances to female tenants, entered the homes of female tenants without their permission and subjected female tenants to unwelcome sexual acts. The lawsuit also names M&F Development LLC as a defendant.

The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorneys’ Offices across the country. The initiative seeks to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers and other people who have control over housing. Since launching the initiative, the department has filed 36 lawsuits alleging sexual harassment in housing and recovered nearly $11 million for victims of such harassment.

The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The Civil Rights Division is committed to protecting people from sexual misconduct. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.

Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.  

A federal grand jury in Orlando returned an indictment, unsealed yesterday, charging three Florida men with crimes related to their respective roles in a tax refund fraud scheme.

According to the indictment, from 2015 to 2018, Christopher Johnson, of Orlando, and Jasen Harvey, of Tampa, allegedly conspired to promote a scheme in which Harvey and others prepared returns for clients falsely reporting large amounts of income tax withholdings to the IRS, resulting in tax refunds to which the clients were not otherwise entitled. Johnson and Harvey allegedly charged each client a fee per return – Johnson allegedly did not report his portion of those fees on his personal tax returns.

The indictment also charged that in January 2020, a federal judge issued an order enjoining Harvey from preparing tax returns for others but, despite the court’s injunction, Harvey allegedly continued to prepare and file returns from 2020 to 2021.

In addition, the indictment alleges that Arthur Grimes, of Orlando and Ocoee, Florida, participated in the scheme and caused to be filed four false income tax returns prepared by Harvey. When the IRS attempted to recover a refund allegedly issued to Grimes based on a false income tax return, Grimes allegedly (1) made false statements to an IRS revenue officer, (2) submitted false documents to the IRS, (3) transferred funds to a nominee bank account and (4) otherwise obstructed IRS collection efforts.

Johnson, Harvey and Grimes are each charged with aiding in the preparation of false tax returns, which carries a maximum statutory penalty of three years in prison; Johnson and Harvey are charged with conspiring to defraud the United States, which carries a maximum statutory penalty of five years in prison; Johnson is charged with filing false personal tax returns, which carries a maximum statutory penalty of three years in prison; Harvey is charged with criminal contempt, which carries a maximum statutory penalty of life in prison; and Grimes is charged with corruptly endeavoring to obstruct the due administration of the internal revenue laws, which carries a maximum statutory penalty of three years. 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 Roger B. Handberg for the Middle District of Florida made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Melissa Siskind, Jeffrey McLellan and Caroline Pearson of the Tax Division and Assistant U.S. Attorney Diane Hu for the Middle District of Florida are prosecuting the case.

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

Didion Milling Inc. pleaded guilty to criminal charges today in federal court in Madison, Wisconsin. As part of a plea agreement, the company has agreed to pay a total of $1 million in criminal fines and $10.25 million in restitution to victims of a May 31, 2017 catastrophic explosion at its Cambria, Wisconsin, corn mill facility. Five Didion Milling employees were killed in that explosion and others were injured.

Didion Milling was previously indicted in May 2022 with multiple federal crimes related to compliance with Occupational Safety and Health Act, Clean Air Act and food safety obligations at the Cambria corn mill and representations made to its customers and authorities. Didion Milling pleaded guilty today to counts six and seven of the indictment, charging it with falsifying records related to its Occupational Safety and Health Act and Clean Air Act obligations to conceal violations from government agencies.

 “Today’s guilty plea should send a message to all employers that we will not tolerate lying to OSHA, EPA and EPA’s state partners as they seek to fulfill their mandates to ensure the safety of workers and protect public health and the environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Our thoughts continue to be with the victims of the May 2017 explosion. As demonstrated by today’s action, we will vigorously pursue restitution for victims of workplace incidents.”

“After an explosion killed five of its workers, Didion Milling lied and falsified records to conceal violations of the environmental and worker safety laws,” said Assistant Administrator David Uhlmann of the Environmental Protection Agency's (EPA) Office of Enforcement and Compliance Assurance. “There is no excuse for false and misleading conduct, particularly in the aftermath of a tragedy, and this prosecution holds Didion Milling accountable.”

According to court documents, Didion Milling was required to operate “baghouses,” equipment designed to prevent particulate matter, such as corn dust, from being released into the environment from the corn mill. From at least 2015 to May 2017, Didion Milling employees, including shift workers and shift superintendents, made false entries in the mill’s “baghouse logs,” disguising data meant to monitor and document whether the mill’s baghouse equipment was working properly to filter particulates from the air. Didion Milling’s environmental manager provided baghouse logs for 2015, 2016 and 2017 to environmental inspectors, knowing that they contained false entries.

Didion Milling was also required under Occupational Safety and Health Act safety standards to develop and implement a housekeeping program to reduce the accumulation of fugitive grain dust within its corn mill. Didion Milling maintained a “master sanitation schedule” logbook listing each of the required dust cleanings and the specific dates by which the cleanings were supposed to be completed. The sanitation logbook contained spaces for Didion Milling employees to record that the dust cleanings had been performed and that documentations procedures had been followed. On or about May 19, 2017, Didion Milling employees falsely initialed, signed and dated entries in the sanitation logbook for the week of May 1 through May 7, 2017, giving the appearance that the required dust cleanings were performed when they had not been. Didion Milling provided the sanitation logbook containing the false May 2017 dust cleaning entries to the Occupational Safety and Health Administration (OSHA) during its investigation of the May 31, 2017 explosion at the Didion Milling corn mill.

A sentencing hearing before U.S. District Court Judge James D. Peterson for the Western District of Wisconsin will be scheduled at a later date.

EPA’s Criminal Investigation Division and the Wisconsin Department of Natural Resources investigated the case.

Three additional charged defendants are scheduled to begin trial on Oct. 2.

Trial Attorneys Samuel Lord and Joel La Bissonniere and Senior Trial Attorney Richard J. Powers of the Environment and Natural Resources Division’s Environmental Crimes Section are prosecuting the case.

A jury in Los Angeles convicted three individuals for their roles in laundering proceeds of large-scale consumer fraud schemes through gift card transactions. Blade Bai, Bowen Hu and Tairan Shi were convicted of conspiracy to launder proceeds of wire fraud. Bai was also convicted of a separate money laundering conspiracy count.

As part of the scheme, fraudsters engaged in government-imposter scams and tech support scams. In a government-imposter scam, fraudsters contact consumers and impersonate government officials, such as officials with the Social Security Administration or local police officers. The fraudsters falsely claim that victims need to purchase gift cards to resolve an issue, often claiming that the victims are subject to a pending arrest warrant or that the victims have a problem with their Social Security number. In a tech support scam, fraudsters deceive victims into believing that there is a serious problem with the victim’s computer or with an online or mobile app account access and that the problem can only be resolved by paying substantial amounts through gift cards.

In this case, telephone scammers instructed victims to purchase gift cards from the retail store Target and provide the scammers with the account numbers and access codes listed on the gift cards. The defendants then distributed the numbers assigned to the gift cards to “runners,” who used the funds on the cards at Target stores (primarily in Los Angeles and Orange counties) to purchase consumer electronics, other gift cards and other items. In one instance presented as evidence at trial, runners acting on behalf of the defendants redeemed gift cards that originated from a victim in Illinois approximately 13 minutes after the victim purchased the cards. Through the purchases and other transactions at multiple Target stores, the defendants and their co-conspirators sought to conceal the fact that the gift cards had been originally funded with fraudulent proceeds.

“Defendants played a key role in victimizing American consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “This case is a testament to the commitment of the department and our partners to ensuring that all those who knowingly facilitate fraud face justice.”

“This investigation is a good example of law enforcement collaboration coming together to protect communities from fraudulent activities,” said Special Agent in Charge Eddy Wang of Homeland Security Investigations (HSI) Los Angeles “HSI and its partners on the El Camino Real Financial Crimes Task Force will continue to track down criminal organizations preying on innocent victims and ensure they are held accountable.”

“These defendants knowingly laundered the proceeds of a fraudulent scheme that targeted vulnerable citizens, including older Americans,” said Assistant Director in Charge Donald Always of the FBI Los Angeles Field Office. “This significant conviction should educate potential victims about the scam and send a message to anyone conducting similar schemes that the bureau and our partners are serious about combating this fraud. Anyone being asked to purchase a gift card in order to resolve a technical issue or to avoid an arrest should not spend money but instead, make a report to the FBI at IC3.gov.”

A fourth defendant, Yan Fu, had previously pleaded guilty and was sentenced to 20 months in prison.

Bai, Hu and Shi are scheduled to be sentenced on Jan. 26, 2024.

HSI and the FBI Los Angeles Field Office, West Covina Resident Agency investigated the case. The investigation was conducted under the auspice of HSI Los Angeles' El Camino Real Financial Crimes Task Force, a multi-agency task force comprised of federal and state investigators focused on financial crimes in Southern California.

The Social Security Administration, Office of the Inspector General also provided assistance during the investigation, as did the following: the Brea (California) Police Department, Glynn County (Georgia) Police Department, Fontana (California) Police Department, Charlotte-Mecklenburg (North Carolina) Police Department, Streamwood (Illinois) Police Department, Cleveland (Ohio) Police Department, Madera County (California) Sheriff’s Office, New York Police Department, Norwood (New Jersey) Police Department, Loudoun County (Virginia) Sheriff's Office, Waukesha County (Wisconsin) Sheriff's Department, Fremont (California) Police Department, Marin County (California) Sheriff’s Office, County of Hawaii Police Department, Henderson (Nevada) Police Department, Wilmington (Massachusetts) Police Department, Las Vegas (Nevada) Metropolitan Police Department, Lewisville (Texas) Police Department, Gardena (California) Police Department, Des Moines (Iowa) Police Department, Cobb County (Georgia) Sheriff’s Department, Millburn (New Jersey) Police, Wauwatosa (Wisconsin) Police Department, San Angelo (Texas) Police Department, Fairfax City (Virginia) Police Department and Virginia Beach (Virginia) Police Department.

Trial Attorneys Wei Xiang and Meredith Healy of the Civil Division’s Consumer Protection Branch and Assistant U.S. Attorney Monica Tait of the Major Frauds Section for the Central District of California prosecuted the case.

The Consumer Protection Branch and United States Attorney’s Office for the Central District of California are part of the Transnational Elder Fraud Strike Force, which investigates and prosecutes scams run by transnational criminal organizations, including mass mailing and telemarketing fraud scams.

If you purchased a gift card at the direction of a scammer, immediately call the gift card issuer and ask them to freeze the gift card numbers involved – and save your receipt and the gift card. Then, report the crime to the Federal Trade Commission at www.reportfraud.ftc.gov/#/ or 877-382-4357, to the FBI’s Internet Crime Complaint Center at www.ic3.gov, and to your local police department.

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.

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

Additional information about the U.S. Attorney’s Office for the Central District of California may be found at www.justice.gov/usao-cdca.

A Massachusetts woman pleaded guilty today to filing a false tax return and engaging in a pattern of financial transactions designed to avoid bank currency transaction reporting requirements.  

According to court documents and statements made in court, Michele L. Letourneau of Charlton was the President, Treasurer and majority owner of a commercial trash collection and removal business. Between January 2016 and December 2020, Letourneau skimmed business income by directing her office staff to separate checks written to her company that contained “Inc.” in the payee description from those that did not. Those checks that included “Inc.” were logged into the company’s customer tracking system and accounting ledgers and deposited into the business bank account. 

The separated checks were given to Letourneau after being logged into the company’s customer tracking system, but not into the accounting ledgers. Instead, Letourneau regularly batch deposited a vast majority of the checks missing the “Inc.” into a personal bank account she jointly held with another, purposely keeping each deposit under $10,000 to illegally avoid bank reporting requirements for currency transactions in excess of $10,000, commonly referred to as structuring. Once available, Letourneau would then withdraw the exact amount as was deposited. In all, Letourneau admitted to structuring 196 deposits and withdrawals knowing that banks were required to issue a report for a currency transaction in excess of $10,000.

In total, Letourneau structured approximately $1,261,724 worth of transactions from 2016 to 2020 and did not disclose this income or the bank account to the preparers of her corporate and personal tax returns. Letourneau admitted to filing a false 2018 personal return that substantially underreported her income for that year and, in total, her conduct during this period caused a tax loss to the IRS in the amount $472,167.

Letourneau is scheduled to be sentenced on Jan. 4, 2024, and faces a maximum penalty of three years in prison for filing a false return and five years for cash structuring.  She 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.

Assistant Chief Jorge Almonte and Trial Attorney George Meggali of the Tax Division are prosecuting the case.

The Justice Department filed a civil antitrust lawsuit against Agri Stats Inc. today for organizing and managing anticompetitive information exchanges among broiler chicken, pork and turkey processors. The complaint alleges that Agri Stats violated Section 1 of the Sherman Act by collecting, integrating and distributing competitively sensitive information related to price, cost and output among competing meat processors. This conduct harms customers, including grocery stores and American families.

The complaint, filed in the District of Minnesota, alleges that Agri Stats has for years produced comprehensive weekly and monthly reports for participating meat processors, which use the data to set prices and output levels. Spanning hundreds of pages, the reports contain recent data relating to sales prices, costs such as worker and farmer compensation and output that are often detailed by facility or company. Participating processors accounted for more than 90% of broiler chicken sales, 80% of pork sales and 90% of turkey sales in the United States. The complaint further alleges that Agri Stats understood that meat processors have used these reports for anticompetitive purposes and, in some instances, even encouraged meat processors to raise prices and reduce supply. While distributing troves of competitively sensitive information among participating processors, Agri Stats withholds its reports from meat purchasers, workers and American consumers, resulting in an information asymmetry that further exacerbates the competitive harm of Agri Stats’ information exchanges.

“The Justice Department is committed to addressing anticompetitive information exchanges that result in consumers paying more for chicken, pork and turkey,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “This case is the latest effort by the Justice Department to protect American consumers, farmers and workers from anticompetitive practices in the agriculture industry.”

The complaint alleges that Agri Stats’ scheme continues to this day in the chicken processing industry, among others. While Agri Stats paused its turkey and pork reporting after facing several private antitrust lawsuits, Agri Stats has expressed an intent to resume such reporting after these lawsuits’ resolution.

This lawsuit marks the latest action by the Antitrust Division to combat unlawful information exchanges. It follows a recent enforcement action (here and here) against four poultry processors as well as two facilitators for participating in a long-running conspiracy to suppress workers’ compensation in the poultry industry. In that case, the district court entered consent decrees enjoining the processors from exchanging competitively sensitive information and barring the facilitators from providing surveys or other services that enable direct competitors in any industry to share competitively sensitive information.

Anyone with information about collusion in agriculture industries, competitors sharing non-public price or compensation information or any other violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or antitrust.complaints@usdoj.gov. Information about anticompetitive practices in livestock and poultry markets can also be submitted to the USDA and Justice Department’s Agricultural Markets Enforcement Partnership at www.farmerfairness.gov.

The Justice Department announced today that it has secured a settlement agreement with Greene Kleen of South Florida Inc. (Greene Kleen), a janitorial services company based in Miami. The settlement agreement resolves the department’s determination that Greene Kleen violated the Immigration and Nationality Act (INA) by discriminating against non-U.S. citizens when checking their permission to work in the United States.

“Employers cannot impose specific document requirements on workers to prove their permission to work that differ based on citizenship or immigration status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department will not tolerate unlawful and discriminatory practices, which create unnecessary barriers to jobs for people who are just trying to make a living.”

The department’s investigation determined that, from at least Jan. 1, 2019, to Feb. 28, 2022, Greene Kleen routinely allowed U.S. citizens to choose which acceptable documentation to present to prove their permission to work but routinely required lawful permanent residents and other non-U.S. citizens to present only one kind of documentation.

Under the terms of the settlement, Greene Kleen will pay $140,000 in civil penalties to the United States, train its employees on the INA’s anti-discrimination requirements, revise its employment policies and be subject to monitoring by the department.

Federal law allows all workers to choose which valid, legally acceptable documentation to present to prove their identity and permission to work in the United States, regardless of citizenship status, immigration status or national origin. The INA’s anti-discrimination provision prohibits employers from asking for specific or unnecessary documents because of a worker’s citizenship status, immigration status or national origin. Indeed, many non-U.S. citizens, including lawful permanent residents, are eligible for several of the same types of documents to prove their permission to work as U.S. citizens are (for example, a state ID or driver’s license and an unrestricted Social Security card). Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine and to relate to the worker.

The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation. 

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

The Justice Department announced today that it has secured a settlement agreement with Home and Body Company (Home and Body), a soap and lotions manufacturer based in Huntington Beach, California. The settlement resolves the department’s determination that Home and Body violated the Immigration and Nationality Act (INA) by discriminating against non-U.S. citizens when checking their permission to work in the United States.

“Employers cannot limit the type of documents workers can use to prove their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department is committed to knocking down unlawful discriminatory barriers that make it harder for people to work in the United States.”

The department’s investigation determined that from at least Sept. 23, 2019, to Oct. 1, 2020, Home and Body routinely required lawful permanent residents to present a specific immigration document when checking their permission to work, based on their citizenship or immigration status.

Under the terms of the settlement, Home and Body will pay $130,000 in civil penalties to the United States, train its personnel on the INA’s requirements, review its employment policies and be subject to monitoring by the department.

Federal law allows all workers to choose which valid, legally acceptable documentation to present to prove their identity and permission to work, regardless of citizenship status, immigration status or national origin. The INA’s anti-discrimination provision prohibits employers from asking for specific or unnecessary documents because of a worker’s citizenship status, immigration status or national origin. Indeed, many non-U.S. citizens, including lawful permanent residents, are eligible for several of the same types of documents to prove their permission to work as U.S. citizens are (for example, a state ID or driver’s license and an unrestricted Social Security card). Employers must allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.

The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship status and national origin in hiring, firing or recruitment or referral for a fee, unfair documentary practices and retaliation and intimidation. 

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

The Justice Department announced today that it is awarding more than $4.4 billion to support state, local, and Tribal public safety and community justice activities. The grants, from the Department’s Office of Justice Programs (OJP), will help build community capacity to curb violence, serve victims and youth, and achieve fair outcomes through evidence-based criminal and juvenile justice strategies.

“Everyone in this country deserves to be safe in their communities,” said Attorney General Merrick B. Garland. “That is why, in addition to continuing our efforts to identify and prosecute the most violent criminals, the Justice Department is putting every available resource to work to support the efforts of our law enforcement and community partners nationwide. This significant investment will go directly to state and local programs that support the victims of crime, support officer safety and wellness, build the public trust in law enforcement essential to public safety, and help make all of our communities safer.”

The more than 3,700 OJP grants being awarded this fiscal year will support state, local, and community-based efforts and evidence-based interventions that reduce violence, crime, and recidivism while delivering treatment and services to those at-risk of justice system involvement. Funding will expand partnerships between criminal justice professionals and behavioral health experts, help people safely and successfully transition from confinement back to their communities, reach crime victims in underserved areas, steer young people away from justice system contact, improve the management of sex offenders, and support a wide range of research and statistical activities that will help justice system professionals meet community safety challenges.

“Across the country, the Justice Department is working side-by-side with our partners in state and local law enforcement to combat violent crime by using our federal resources to amplify their work on the front lines,” said Deputy Attorney General Lisa O. Monaco. “The billions of dollars in grants announced today will augment those efforts and the tools law enforcement is using to curb violence, counter deadly drug abuse, and promote safety and public trust. Together with our state and local partners, the Department will continue to do everything we can to protect the communities we all serve.”

“The Department of Justice is investing in community-based approaches to violence prevention, law enforcement health and wellness, Tribal courts, improved services for victims, research and data collection efforts, reentry programs, and much more,” said Associate Attorney General Vanita Gupta. “The grants announced today further our commitment to working with our state, Tribal, and local partners to increase public safety, build police-community trust, and ensure safe, healthy, and just communities for all.”

“Every sector of our society — not only the justice system, but nonprofit and faith-based groups, local leaders, and advocates, and people with lived experience who serve as credible messengers — plays a critical role in ensuring public safety and public health,” said OJP Assistant Attorney General Amy L. Solomon. “The Office of Justice Programs is proud to make these substantial investments in building community infrastructure and supporting communities as co-producers of safety and justice.”

Grants will support five major community safety and justice priorities:

• Awards totaling more than $1 billion will promote safety and strengthen trust, helping communities tackle the proliferation of gun violence in America and restore bonds of trust between community residents and the justice system. Grants will support innovative and evidence-based strategies designed to prevent and reduce violent crime, support the health and safety of law enforcement and public safety professionals, promote rehabilitation and reentry success, and address the rise in hate crimes across the country.
• More than $437 million in grant awards will accelerate justice system reforms designed to achieve equal justice and fair treatment for all. Grants will expand access to services among historically underserved and marginalized communities, reduce counterproductive involvement in the justice system, increase opportunities for diversion, and build pathways to treatment for people with substance use and mental health disorders.
• Over $192 million will improve the fairness and effectiveness of the juvenile justice system by supporting developmentally appropriate and culturally responsive interventions for youth. Funding will ensure that young people are served at home in their communities whenever possible, are equipped to transition to a healthy adulthood free of crime, and are protected from violence and abuse.
• More than $1.7 billion will expand access to victim services by investing in programs that provide trauma-informed and culturally responsive services to victims. Funding will support thousands of local victim assistance programs across the country and victim compensation programs in every state and U.S. territory, while helping these programs build their capacity to reach those disproportionately affected by crime and victimization.
• Over $418 million in awards will advance science and innovation to strengthen the base of knowledge that policymakers and practitioners can use to design and deploy effective community safety strategies. Awards will support research and data collection on a wide range of public safety issues, help maintain timely and accurate criminal history records, and improve the capacity of crime labs and forensic analysts to solve crimes, absolve the innocent, and deliver justice to victims.

In addition, OJP will award more than $611 million to continue its support of other previously funded programs and congressionally directed spending. More information about the awards announced today can be found by visiting www.ojp.gov/funding/fy23awards.

El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Greene Kleen of South Florida, Incorporated (Greene Kleen), una empresa de servicios de conserjería con sede en Miami, Florida. El acuerdo conciliatorio resuelve la determinación del Departamento de que Greene Kleen vulneró la ley de Inmigración y Nacionalidad (INA) al discriminar a no ciudadanos de los EE. UU. al verificar su permiso para trabajar en los Estados Unidos.

«Los empleadores no pueden imponer requisitos de documentos específicos a los trabajadores para demostrar su permiso para trabajar que difieran en función de la ciudadanía o el estatus migratorio», dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento no tolerará estas prácticas ilegales y discriminatorias, que crean barreras innecesarias al empleo para las personas que solo están intentando ganarse la vida».

La investigación del Departamento determinó que, desde al menos el 1 de enero del 2019, hasta el 28 de febrero del 2022, Greene Kleen permitía, de forma rutinaria, a los ciudadanos de los EE. UU. elegir la documentación aceptable que deseaban presentar para demostrar su permiso para trabajar, pero, de forma rutinaria, requería que residentes permanentes legales y otros no ciudadanos de los EE. UU. presentaran solamente un tipo de documentación.

Conforme los términos del acuerdo, Greene Kleen pagará $140,000 en sanciones civiles a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos antidiscriminatorios de la INA, revisará sus políticas de empleo y se someterá a supervisión por parte del Departamento.

Las leyes federales permiten a todos los trabajadores elegir la documentación válida y legalmente aceptable que desean presentar para demostrar su identidad y permiso para trabajar en los EE. UU., independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminatoria de la INA prohíbe a los empleadores solicitar documentos específicos o innecesarios por motivos del estatus de ciudadanía, estatus migratorio o nacionalidad de origen de un trabajador. De hecho, muchos no ciudadanos de los EE. UU., incluidos los residentes permanentes legales, son elegibles para varios de los mismos tipos de documentos para demostrar su permiso para trabajar como lo son los ciudadanos de los EE. UU. (por ejemplo, un carnet de identidad estatal o licencia de conducir y una tarjeta de Seguro Social sin restricciones). Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores mismos elijan y no pueden rechazar documentación válida que parezca razonablemente genuina y relacionada con el trabajador.

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. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación

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

El Departamento de Justicia anunció hoy que ha conseguido un acuerdo conciliatorio con Home and Body Company (Home and Body), un fabricante de jabones y cremas con sede en Huntington Beach, California. El acuerdo resuelve la determinación del Departamento que Home and Body vulneró la ley de Inmigración y Nacionalidad (INA) al discriminar a no ciudadanos de los EE. UU. cuando verificó su permiso para trabajar en los Estados Unidos.

«Los empleadores no pueden limitar el tipo de documentos que los trabajadores pueden usar para demostrar su permiso para trabajar», declaró Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento se compromete a eliminar las barreras discriminatorias ilegales que dificultan el trabajo para personas en los EE. UU.».

La investigación del Departamento determinó que, desde al menos el 23 de septiembre del 2019 hasta el 1 de octubre del 2020, Home and Body requerían, de forma rutinaria, que los residentes legales permanentes presentaran un documento de inmigración específico al verificar su permiso para trabajar, en función de su ciudadanía o estatus migratorio.

Conforme los términos del acuerdo, Home and Body pagará $130,000 en sanciones civiles a los Estados Unidos, capacitará a sus empleados en cuanto a los requisitos de la INA, revisará sus políticas de empleo y se someterá a supervisión por parte del Departamento.

Las leyes federales permiten a todos los trabajadores elegir la documentación válida y legalmente aceptable desean presentar para demostrar su identidad y permiso para trabajar en los EE. UU., independientemente de su estatus de ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminación de la INA prohíbe a los empleadores solicitar documentos específicos o innecesarios por motivos del estatus de ciudadanía, estatus migratorio o nacionalidad de origen de un trabajador. De hecho, muchos no ciudadanos de los EE. UU., incluidos los residentes permanentes legales, son elegibles para varios de los mismos tipos de documentos para demostrar su permiso para trabajar como lo son ciudadanos de los EE. UU. (por ejemplo, un carnet de identidad estatal o licencia de conducir y una tarjeta de Seguro Social sin restricciones). Los empleadores deben permitir que los trabajadores presenten cualquier documentación aceptable que los trabajadores mismos elijan y no pueden rechazar documentación válida que parece ser genuina.

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. La ley prohíbe la discriminación por motivos de estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión, prácticas documentales injustas y represalias e intimidación.  

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

Saipan, CNMI – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that the United States District Court for the NMI ordered 51 months imprisonment for Bing Li, age 41, a citizen of the People’s Republic of China (PRC), for Possession with Intent to Distribute Methamphetamine, in violation of 21 U.S.C. § 841(a)(1).  The Court also ordered Li to serve three years of supervised release and pay a $100 special assessment fee.  He was further ordered to report for deportation proceedings.

In January 2023, Bing Li received a package at the U.S. Post Office in Chalan Kanoa, Saipan.  The package was addressed to Li and mailed by a sender in San Leandro, California.  During an inspection of the package, Commonwealth of the Northern Mariana Islands Customs and Biosecurity Officers discovered two plastic bags inside the package containing a total of 831.6 grams of methamphetamine with 99% purity levels.  Upon questioning by agents of the Drug Enforcement Administration, Li admitted he agreed with others to receive and further distribute the methamphetamine inside the package for personal profit.  In January 2023, the street value on Saipan of the seized methamphetamine was at least $332,000.

“This case demonstrates the continued targeting of mail parcels by law enforcement to interdict illicit drugs entering our jurisdictions,” stated United States Attorney Anderson.  “The penalties for traffickers are significant and include removal from the United States for foreign nationals.”

This case was investigated by the CNMI Customs & Biosecurity and the U.S. Drug Enforcement Administration.  Assistant United States Attorney Albert S. Flores Jr. in the District of the Northern Mariana Islands prosecuted the case.

Saipan, CNMI – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), announced that the United States District Court for the NMI ordered 14 months imprisonment for MD Ikbal, age 37, a citizen of Bangladesh living on the island of Rota, after being convicted of Illegal Alien in Possession of a Firearm, in violation of 18 U.S.C. § 922(g)(5)(A).  Ikbal will enter deportation proceedings following his release from prison.

During June 2016, Ikbal arrived in the Commonwealth of the Mariana Islands (CNMI) pursuant to a CNMI-Only Transitional Worker (CW-1) visa.  A CW-1 is a nonimmigrant visa that allows employers in the CNMI to apply for permission to employ individuals who are otherwise ineligible to work under other nonimmigrant worker categories.  Following the expiration of his visa in January 2017, Ikbal remained on the island of Rota without lawful immigration status.  In October 2021, Ikbal entered the home of another without permission and threatened to kill occupants.  Ikbal was subsequently charged in local court for trespassing and assault, then released on bail.

During May 2022, police on Rota received a report that Ikbal was in possession of a firearm.  Officers from the CNMI Department of Public Safety searched the island for Ikbal.  After nine hours, they located Ikbal hiding in a jungle area, armed with a stolen .40 caliber handgun containing a fully loaded magazine.  The firearm was a service weapon issued to a Rota police officer.  The gun was reported stolen a week prior.

“Federal law prohibits foreign nationals from possessing firearms and ammunition except in limited circumstances,” stated United States Attorney Anderson.  “These cases will be aggressively prosecuted by our office in an effort to keep our communities safe from gun crime.” 

The CNMI Department of Public Safety, the U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives, and U.S. Homeland Security Investigations investigated this case.

Assistant United States Attorney Albert S. Flores Jr. in the District of the Northern Mariana Islands prosecuted this case.

A federal jury in the Eastern District of Michigan convicted an Indian national today for orchestrating a $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 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. 

The jury convicted Pancholi of conspiracy to commit health care and wire fraud, two counts of substantive health care fraud, two counts of money laundering, two counts of aggravated identity theft, and one count of witness tampering. He is scheduled to be sentenced on Jan. 10, 2024, and faces a mandatory minimum penalty of two years in prison for aggravated identity theft, a maximum penalty of 20 years in prison on each of the conspiracy and witness tampering convictions, and a maximum penalty of 10 years in prison on each of the health care fraud and money laundering counts. 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, Acting Special Agent in Charge Devin J. Kowalski 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 are prosecuting the case, with assistance from Trial Attorney Kathleen Cooperstein. Trial Attorney Patrick Suter investigated and originally charged 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, comprised of 15 strike forces operating in 25 federal districts, has charged more than 5,000 defendants who collectively have billed federal health care programs and private insurers more than $24 billion. In addition, the Centers for Medicare & Medicaid Services, working in conjunction with the Office of the Inspector General for the Department of Health and Human Services, are taking steps to hold providers accountable for their involvement in health care fraud schemes. More information can be found at www.justice.gov/criminal-fraud/health-care-fraud-unit.

The Justice Department and the Federal Trade Commission (FTC) announced today that they plan to hold two additional workshops to facilitate public dialogue on the 2023 Draft Merger Guidelines that the agencies announced in July. Like the agencies’ first workshop on Sept. 5, these events will promote a detailed discussion about the Draft Guidelines to complement the thousands of public comments submitted to the agencies. Each of the two remaining workshops will be held in-person at an academic institution. 

The second workshop, co-hosted with the MIT Economics Department and the Mossavar-Rahmani Center for Business and Government, Harvard Kennedy School, will take place at the Harvard Kennedy School on Oct. 5 from 1:30 p.m. to 4:45 p.m. ET. Participants who register here will receive a link to view the event virtually. More information, including a tentative agenda for the workshop, can be found on the event page.

The third workshop, co-hosted with the University of Chicago Law School, Coase Sandor Institute for Law and Economics, will take place on Nov. 3 from 9 a.m. to 4:45 p.m. CT. More information about the workshop, including an agenda, will be updated on the event page in the coming weeks.

If either event needs to be postponed for any reason, information on rescheduling will appear on the event page.

The Justice Department’s Antitrust Division and the FTC are reviewing comments from the public on the Draft Guidelines, submitted online during the comment period, at www.regulations.gov/docket/FTC-2023-0043.

The agencies protect competition through enforcement of the antitrust laws and other federal competition statutes. Since 1968, the agencies have issued and revised merger guidelines to enhance transparency and promote awareness of how the agencies review mergers and acquisitions under the federal antitrust laws.

The Justice Department announced today that Washington Trust Company (Washington Trust), the oldest community bank in the nation, has agreed to pay $9 million to resolve allegations that it engaged in a pattern or practice of lending discrimination by redlining majority-Black and Hispanic neighborhoods in Rhode Island.

Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of residents in those communities.

“This settlement should send a strong message to banks regarding the Justice Department’s firm commitment to combat modern-day redlining and ensure that all lenders are providing equal access to home loan opportunities to communities of color,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution will provide critical relief to impacted Black and Hispanic communities, enabling them to buy a home, keep their home or access the equity in their home. Ending redlining and providing relief to communities of color impacted by this unlawful practice is a necessary step in ongoing efforts to reduce racial wealth and homeownership gaps across our country.”

“Everyone who pursues the American dream has the right to expect to be treated equally and with dignity, regardless of their race, their background, or zip code. When communities are denied access to fair lending, families are denied the opportunity to build stability and financial success,” said U.S. Attorney Zachary A. Cunha for the District of Rhode Island. “I am pleased that, as a result of the hard work of attorneys in my office and the department’s Civil Rights Division, Washington Trust has agreed to take targeted and extensive measures to make meaningful lending services available for all Rhode Islanders, regardless of race or background.”

The complaint alleges, from 2016 through at least 2021, Washington Trust failed to provide mortgage lending services to majority-Black and Hispanic neighborhoods in Rhode Island. The complaint alleges that despite expansion across the state of Rhode Island, Washington Trust has never opened a branch in a majority-Black and Hispanic neighborhood. The complaint alleges that Washington Trust relied on mortgage loan officers working out of only majority-white areas as the primary source for generating loan applications, and Washington Trust failed to train or incentivize its lending staff or conduct outreach, marketing and advertising of its mortgage services to compensate for its lack of branches and presence in majority-Black and Hispanic areas. The complaint further alleges that, compared to Washington Trust, over the same six-year period, other banks received nearly four times as many loan applications each year in majority-Black and Hispanic neighborhoods in Rhode Island. The complaint also alleges that, even when Washington Trust generated loan applications from majority-Black and Hispanic areas, the applicants themselves were disproportionately white.  

Under the proposed consent order, which is subject to court approval, Washington Trust has agreed to do the following:

• Invest at least $7 million in a loan subsidy fund to increase access to home mortgage, home improvement, home refinance and home equity loans and lines of credit for residents of majority-Black and Hispanic neighborhoods in Rhode Island;
• Spend $1 million on community partnerships to provide services that increase residential mortgage credit access for residents of those neighborhoods;
• Spend $1 million for advertising, outreach, consumer financial education and credit counseling focused on majority-Black and Hispanic neighborhoods;
• Open two new branches in majority-Black and Hispanic neighborhoods in Rhode Island; and ensure at least two mortgage loan officers are dedicated to serving these neighborhoods; and
• Employ a Director of Community Lending who will oversee the continued development of lending in communities of color.

Washington Trust also agreed to complete a community credit needs assessment, to assess and report on its fair lending program; and to train staff on the bank’s obligations under the consent order. Washington Trust worked cooperatively with the department to resolve and remedy the redlining concerns that were identified and agreed to settle this matter without contested litigation.

In October 2021, Attorney General Merrick B. Garland and Assistant Attorney General Kristen Clarke launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. Since 2021, the department has announced nine redlining cases and secured $98 million in relief for communities of color that have been the victims of lending discrimination across the country.

A copy of the complaint and information about the department’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291 or submitting a report online.

A former Fulton County, Georgia, Sheriff’s Office detention officer was indicted on federal charges of depriving a pretrial detainee of her civil rights under color of law.

The indictment charges former Detention Officer Monique Clark, 32, with one count of deprivation of rights under color of law for willfully using unreasonable force against a pretrial detainee, who is identified in the indictment as C.B. Specifically, the indictment alleges that Clark, without legal justification, strangled C.B. while C.B. was handcuffed, resulting in bodily injury to C.B.

The charge carries a maximum penalty of 10 years in prison. A federal judge will determine any sentence based on the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Ryan Buchanan for the Northern District of Georgia and Special Agent in Charge Keri Farley of the FBI Atlanta Field Office made the announcement.

The FBI Atlanta Field Office investigated this case.

Assistant U.S. Attorney Brent Gray for the Northern District of Georgia and Trial Attorney Alec Ward of the Civil Rights Division’s Criminal Section 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.

El Departamento de Justicia anunció hoy que Washington Trust Company (Washington Trust), el banco comunitario más antiguo del país, ha acordado pagar $9 millones para resolver las alegaciones que incurrió en un patrón o una práctica de discriminación crediticia al practicar la exclusión financiera en barrios de mayoría negra e hispana en Rhode Island.

La exclusión financiera es una práctica ilícita en la que los prestamistas evitan la provisión de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color de piel o el origen nacional de las personas que viven en esas comunidades.

“Este acuerdo debería enviar un mensaje sólido a los bancos con respecto al firme compromiso del Departamento de Justicia de combatir la exclusión financiera que existe hoy y garantizar que todos los prestamistas proporcionen la igualdad de oportunidades de préstamos hipotecarios a las comunidades de color”, dijo Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. “Esta resolución proporcionará una compensación crítica a las comunidades negras e hispanas afectadas, así permitiéndoles comprar una casa, conservar su casa o acceder al valor neto de su casa. Poner fin a la exclusión financiera y proporcionar una compensación a las comunidades de color afectadas por esta práctica ilegal es un paso necesario en los esfuerzos continuos para reducir las brechas en la riqueza racial y las posibilidades de ser propietario de una vivienda por todo nuestro país”.

“Todo aquel que persiga el sueño americano tiene derecho a recibir un trato igualitario y digno, independientemente de sus antecedentes, raza o código postal. Cuando a las comunidades se les niega el acceso a préstamos justos, se les niega a las familias la oportunidad de construir estabilidad y éxito financiero”, afirmó el Fiscal Federal Zachary A. Cunha. “Me complace que, como resultado del arduo trabajo de los abogados en mi oficina y en la División de Derechos Civiles del Departamento de Justicia, Washington Trust haya acordado tomar medidas específicas y extensas para poner servicios crediticios a la disposición de todos los de Rhode Island, independientemente de su raza o antecedentes”.

La queja alega que, desde 2016 hasta al menos 2021, Washington Trust no proporcionó servicios de préstamos hipotecarios a barrios de mayoría negra e hispana en Rhode Island. La queja alega que, a pesar de su expansión en todo el estado de Rhode Island, Washington Trust nunca ha abierto una sucursal en un barrio de mayoría negra e hispana. La queja alega que Washington Trust confió en los agentes de préstamos hipotecarios que trabajaban solo en áreas de mayoría blanca como la fuente principal para generar solicitudes de préstamos, y Washington Trust no entrenó ni incentivó a su personal de préstamos ni llevó a cabo la difusión, comercialización y publicidad de sus servicios hipotecarios para compensar su falta de sucursales y presencia en áreas de mayoría negra e hispana. Más aún, la demanda alega que, en comparación con Washington Trust, durante el mismo período de seis años, otros bancos recibieron casi cuatro veces más solicitudes de préstamos cada año en barrios de mayoría negra e hispana en Rhode Island. La queja también alega que, incluso cuando Washington Trust generó solicitudes de préstamos de áreas de mayoría negra e hispana, los propios solicitantes eran desproporcionadamente blancos.  

En virtud de la orden de consentimiento propuesta, que está sujeta a la aprobación del tribunal, Washington Trust ha acordado hacer lo siguiente:

• Invertir al menos $7 millones en un fondo de subsidios para préstamos para aumentar el acceso a préstamos hipotecarios, mejoras en la vivienda, refinanciamiento y préstamos y líneas de crédito sobre el valor neto de la vivienda para residentes de barrios de mayoría negra e hispana en Rhode Island;

• Invertir $1 millón en asociaciones comunitarias para proporcionar servicios que aumenten el acceso al crédito hipotecario residencial para residentes de esos barrios;

• Invertir $1 millón en publicidad, proyección comunitaria, educación financiera al consumidor y asesoramiento de crédito centrado en barrios de mayoría negra e hispana;

• Abrir dos sucursales nuevas en barrios de mayoría negra e hispana en Rhode Island; garantizar que al menos dos agentes de préstamos hipotecarios estén dedicados a servir a estos barrios; y

• Emplear a un Director de Préstamos Comunitarios que supervisará el desarrollo continuo de préstamos en comunidades de color.

Por otra parte, Washington Trust acordó completar una evaluación de necesidades de crédito comunitario, para evaluar e informar sobre su programa de préstamos justos; y capacitar al personal sobre las obligaciones del banco en virtud de la orden de consentimiento. Washington Trust colaboró con el Departamento para resolver y corregir las preocupaciones de exclusión financiera que se identificaron y acordó resolver este asunto sin litigios impugnados.

En octubre del 2021, el Fiscal General Merrick B. Garland y la Fiscal General Auxiliar Kristen Clarke lanzaron la Iniciativa contra la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley para abordar esta forma persistente de discriminación contra las comunidades de color. Desde el año 2021, el Departamento ha anunciado nueve casos de exclusión financiera y ha obtenido $98 millones por concepto de compensación para comunidades de color que han sido víctimas de discriminación crediticia por todo el país.

Puede encontrar una copia de la queja e información sobre la aplicación de las leyes de préstamos justos del Departamento en www.justice.gov/fairhousing. Para informarnos de incidentes de discriminación en el ámbito crediticio, llame a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o entregue un informe en línea.

The Justice Department announced that it will award $68,196,816 through 88 grants to American Indian and Alaska Native communities to provide services and promote justice for survivors of domestic violence, sexual assault, stalking, and trafficking. The awards are administered through the Office on Violence Against Women (OVW) and will enhance Tribal justice systems, support an array of services for victims of these crimes, and provide training and technical assistance to service providers and Tribal governments. The awards were announced in conjunction with the 5th annual Tribal Governments Program Summit in Jacksonville, Florida.

“For too long, Alaska Native and American Indian communities have endured persistent and disproportionate levels of violence,” said Attorney General Merrick B. Garland. “These grants are another step in the Justice Department’s efforts to work in partnership with Tribes to deliver justice for survivors of domestic violence, sexual assault, stalking, and trafficking, and to help make Tribal communities safer.”

One National Institute of Justice study found that over 80% of American Indian and Alaska Native individuals have experienced violence in their lifetimes. This includes over 56% of women and 27% of men who have experienced sexual violence, and over 55% of women and 43% of men who have experienced physical violence by an intimate partner. 

“American Indian and Alaska Native individuals experience unacceptably high rates of violence, which is in many ways a direct reflection of systematic injustice and institutional failures these populations face,” said Associate Attorney General Vanita Gupta. “Through the authority and funding in VAWA 2022, the Justice Department is strengthening our partnerships with more Tribes, supporting communities in holding individuals accountable, and focusing on solutions that center survivors.”

“American Indian and Alaska Native communities know best the unique challenges they face and how best to allocate resources, strengthen prevention efforts, and provide pathways for safety, healing, and justice for survivors,” said OVW Director Rosie Hidalgo. “Today’s grant announcements are a direct result of Tribes, advocates, and survivors who have bravely shared their stories, challenges, recommendations, and leadership. We look forward to continuing our strong partnerships with Tribes and strengthening the collaboration to advance these shared goals.”

Today’s announced grants include:

• 48 grants totaling $39,958,557 under OVW’s Tribal Governments Program to support Tribes in developing strategies to respond to domestic violence, dating violence, sexual assault, stalking, and sex trafficking against Indian women, support survivor safety, and develop education and prevention strategies;

• 20 grants totaling $7,643,760 under the Grants to Tribal Domestic Violence and Sexual Assault Coalitions Program to encourage the development of nonprofit, nongovernmental Tribal domestic violence and sexual assault coalitions;

• Seven grants totaling $6,450,000 under the Tribal Sexual Assault Services Program to support projects that create, maintain, and expand services for sexual assault survivors provided by Tribes, Tribal organizations, and nonprofits within Tribal lands;

• Four grants totaling $6 million under the Special Tribal Criminal Jurisdiction Grant Program for Tribal governments to provide support and technical assistance in planning and implementing changes in their criminal justice systems to exercise special criminal jurisdiction and for expenses incurred in exercising the jurisdiction. In addition, OVW will award two grants totaling $3 million under the Special Tribal Criminal Jurisdiction: Targeted Support for Alaska Native Tribes Special Initiative;

• Five grants totaling $4,149,999 under OVW’s Tribal Special Assistant U.S. Attorney Initiative, which funds the salary, training, travel, and supplies for Tribal prosecutors who are designated as Special Assistant U.S. Attorneys (SAUSAs) to work directly with U.S. Attorney’s Offices in their investigation and prosecution of Indian country domestic violence, sexual assault, dating violence, stalking, and sex trafficking cases; and

Two grants totaling $994,500 under OVW’s National Tribal Clearinghouse on Sexual Assault (NTCSA) initiative to provide training and technical assistance on issues related to sexual assault of American Indian and Alaska Native women.

OVW administers grant programs designed to develop the nation’s capacity to reduce sexual assault, domestic and dating violence, and stalking. Tribal organizations and governments interested in applying for these and other grants are encouraged to visit the OVW website for more details and application guidelines.

Full Award Lists

• 2023 OVW STCJ-Alaska Awards

• 2023 OVW STCJ Awards

• 2023 OVW TSAUSA Awards

• 2023 OVW TSASP Awards

• 2023 OVW Tribal Government Awards

• 2023 OVW Tribal Coalition Awards

• 2023 OVW NTCSA Awards

Two Puerto Rican men pleaded guilty today to federal charges of conspiracy to commit a hate crime and obstruction of justice, arising out of an assault with a dangerous weapon against a transgender woman because of her gender identity.

According to court documents, on Feb. 24, 2020, at around 12:29 a.m. ET, Jordany Rafael Laboy-Garcia and Christian Yamaurie Rivera-Otero, along with their former co-defendant Anthony Steven Lobos-Ruiz, were out driving together in Toa Baja, Puerto Rico, when they saw the victim, identified as A.N.L., standing under a tent near the side of the road. The defendants recognized A.N.L. from social media posts concerning an incident that had occurred the day prior at a McDonald’s in Toa Baja. During that incident, A.N.L. had used a stall in the McDonald’s women’s restroom.

Upon recognizing A.N.L., Lobos-Ruiz used his iPhone to record a video of himself yelling, “la loca, la loca,” as well as other disparaging and threatening comments to A.N.L. from inside the car. The defendants then decided to get a paintball gun to shoot A.N.L. and record another iPhone video. Within 30 minutes, they retrieved a paintball gun and returned to the location where they had last seen A.N.L., who was still at that location. Lobos-Ruiz then used his iPhone to record Laboy-Garcia shooting at A.N.L. multiple times with the paintball gun. After the assault ended, Lobos Ruiz shared the iPhone video recordings with others.

Several hours later, Rivera-Otero and Lobos-Ruiz exchanged text messages, in which they told each other to delete the evidence of their harassment and paintball gun assault of A.N.L., in order to conceal their involvement. Following this message exchange, Lobos-Ruiz deleted the videos on his iPhone of himself yelling at A.N.L. and of Laboy-Garcia firing paintballs at A.N.L.

“The defendants are being held accountable for assaulting a transgender woman because of her gender identity and then trying to obstruct an investigation into that assault,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Acts of violence against LGBTQI+ people have no place in our society today. As we mark 25 years since the death of Matthew Shepard, the Justice Department remain steadfast in its commitment to investigate and prosecute those who target LGBTQI+ people with acts of violence.”

“To assault an innocent victim who posed no threat to the defendants for no other reason than her gender identity is reprehensible behavior that will not be tolerated,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “The Justice Department will continue to vigorously defend the rights of all people, regardless of their gender identity, to be free from hate-fueled violence. Our community must stand together against acts of violence motivated by hate for any group of people – we remain steadfast in our commitment to prosecute civil rights violations and keep our communities safe and free from fear.”

“What makes our country great is our diversity in all aspects of life,” said Special Agent in Charge Joseph Gonzalez of the FBI San Juan Field Office. “This diversity makes us strong, and criminal acts undermine our society's foundations. The FBI will not tolerate hateful criminal activity of any kind and will pursue these cases to the full extent of the law. We urge anyone who thinks they have been a victim or a witness to a hate crime to call 787-987-6500 or leave a tip by visiting Tips.FBI.Gov. Know that we are here for you."

As part of the plea agreement, Laboy-Garcia pleaded guilty to conspiring to commit a hate crime and admitted that he shot paintballs at A.N.L. because she was, and was perceived to be, transgender. Rivera-Otero pleaded guilty to obstruction of justice and admitted to directing his co-defendant to delete video recordings of the assault and harassment of A.N.L.

Sentencing hearings for both defendants have been scheduled for Nov. 10. A federal district court judge will determine any sentence after consideration of the U.S. Sentencing Guidelines and other statutory factors.

Lobos-Ruiz previously pleaded guilty to committing a hate crime and was sentenced to 33 months in prison.  

The FBI San Juan Field Office investigated the case.

Assistant U.S. Attorney Jose A. Contreras for the District of Puerto Rico and Trial Attorney Laura Gilson of the Civil Rights Division’s Criminal Section are prosecuting the case.

A federal grand jury in Denver returned an indictment, unsealed today, charging a Colorado man and a Texas man with conspiring to defraud the United States and with assisting in the preparation of false income tax returns. The indictment also charges the Colorado man and his spouse with evading their personal federal income taxes.

According to the indictment, since 2017, Timothy McPhee of Estes Park, Colorado, and Larry Conner of Frisco, Texas – along with others – promoted and sold an abusive-trust tax shelter to clients nationwide for fees ranging from approximately $25,000 to $50,000. The indictment alleges that McPhee and Conner instructed clients to assign their income to a series of sham trusts to make it appear as if the income was no longer owned or controlled by the client. However, this paper trail was allegedly false as the clients continued to benefit from and control the income assigned to the sham trusts. McPhee and Conner’s promotion and sale of the tax shelter allegedly resulted in tens of millions of dollars in federal income taxes not being paid to the IRS.

McPhee and Conner allegedly assured clients that after transferring income or personal property to the sham trusts, the clients would retain full control over the assets and could continue to use them for their benefit. To facilitate such use, McPhee and Conner allegedly directed their clients to open bank accounts and obtain credit cards in the names of their sham trusts and to pay personal expenses with funds held in those accounts. McPhee and Conner also allegedly directed their clients to transfer real estate and other assets to the sham trusts to avoid paying income taxes on any capital gains incurred from the sale of those assets.

McPhee and his wife, Marcia Predmore, are charged with using the abusive-trust tax shelter to conceal a substantial amount of their own income from the IRS. McPhee and Predmore allegedly signed trust instruments purporting to create four trusts, opened bank accounts in the name of each entity and paid for personal living expenses from those bank accounts. The indictment alleges that McPhee and Predmore assigned nearly all their income to their sham trusts and transferred multiple real estate properties to one of their sham trusts before selling the property. McPhee and Predmore then allegedly filed false individual income tax returns with the IRS that failed to report the income they assigned to the sham trusts.

If convicted, McPhee and Conner face a maximum penalty of five years in prison for conspiring to defraud the United States and three years in prison for each count of aiding and assisting in the preparation of false tax returns. McPhee and Predmore also face a maximum penalty of five years in prison for each count of tax evasion. 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.

Senior Litigation Counsel Corey J. Smith and Trial Attorneys Lauren K. Pope and Amanda R. Scott of the Tax Division are prosecuting the case.

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

The Justice Department announced today, alongside its partners from Mexico’s Federal Economic Competition Commission (COFECE) and Canada’s Competition Bureau, the launch of a joint initiative to deter, detect and prosecute collusive schemes related to the provision of goods and services in connection with the 2026 FIFA World Cup. The 2026 FIFA World Cup will be jointly hosted by the three nations, with events scheduled to occur across 11 locations in the United States, three cities in Mexico, and two cities in Canada. Through this initiative, the enforcement agencies will collaborate on outreach to the public and business community about anti-competitive conduct, as well as on investigations, using intelligence sharing and existing international cooperation tools.

“This historic event will bring billions of dollars in economic activity to cities across the United States, Mexico, and Canada,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Antitrust Division will be vigilant in detecting anticompetitive conduct by any businesses and individuals that exploit the economic opportunities created by the games. We look forward to working with our international partners on this effort.” 

“As an authority, we have set out to make the benefits of competition tangible for the population,” said Chairwoman Andrea Marván of COFECE. “For Mexico, competition in soccer means passion and enjoyment. Just as in the World Cup, for competition to happen in the economic markets, a level playing field for all those interested in offering their goods and services should be guaranteed. Today we announce a historic collaboration to promote the inclusive benefits of economic and sports competition. In this regard, COFECE will be as vigilant as ever to guarantee that the economic benefits derived from this event are not affected by anti-competitive conducts that could harm both local and international fans. We will work alongside the U.S. and Canadian antitrust agencies to ensure that, no matter where, all markets are working in a competitive and efficient way during this historic event.”

“Strong cooperation among law enforcers and partner organizations is key to ensuring that illegal conduct is investigated, and that appropriate action is taken,” said Commissioner Matthew Boswell of the Competition Bureau of Canada. “The Competition Bureau will do everything in its power to pursue those who seek to unjustly profit from the World Cup.”

The World Cup is expected to generate benefits across a wide range of sectors in the economy, including the construction, entertainment and tourism industries in the following host sites: Atlanta, Boston, Dallas, Houston, Kansas City, Missouri, Los Angeles, New York/New Jersey, Miami, Philadelphia, the San Francisco Bay Area and Seattle. Collaborating with our international partners will allow us to deter anti-competitive conduct impacting the games in our three nations.  

Anyone with information regarding market allocation, price fixing, bid rigging or other anticompetitive conduct should contact the Procurement Collusion Strike Force at www.justice.gov/procurement-collusion-strike-force or the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258.

The Justice Department is committed to working closely with the public, the business community and our international partners to enforce the antitrust laws for the protection of the American people.  

U.S. Attorney General (AG) Merrick B. Garland hosted Ukrainian Prosecutor General (PG) Andriy Kostin at the Justice Department today. The two leaders discussed efforts to hold accountable perpetrators of war crimes and other atrocities and the importance of strong, independent anti-corruption institutions.

“The Justice Department and the Ukrainian Prosecutor General’s Office are united in our resolve that the Russian perpetrators of aggression, war crimes, and crimes against humanity in Ukraine will not get away with them,” said Attorney General Merrick B. Garland. “And the Justice Department will continue to stand beside our Ukrainian partners as they work to ensure the continuity of a justice system the Ukrainian people can believe in.”

The meeting highlighted the important progress that the Department’s War Crimes Accountability Team, in partnership with PG Kostin’s Office, continues to make in its domestic investigations. The team also continues its support for Ukraine accountability efforts by providing Ukrainian prosecutors with operational assistance and advice including, recent training on environmental crimes and cooperation on victim witness issues. The AG also noted that earlier this month, the Department’s War Crimes Accountability Team made its second set of contributions of Ukraine-related evidence to Eurojust’s Core International Crimes Evidence Database.

The AG and PG also discussed the work of the newly appointed U.S. Special Prosecutor for the Crime of Aggression at the International Centre for the Prosecution of the Crime of Aggression Against Ukraine at The Hague as well as the work of the Department’s Resident Legal Advisor in Kyiv, Ukraine. After reaffirming their commitment to these important efforts, the leaders identified areas for strengthened law enforcement cooperation, including efforts against cybercrime, organized crime, and community prosecution.

AG Garland reiterated the Department’s commitment to work with Ukraine’s Prosecutor General’s Office, the Specialized Anti-Corruption Prosecutor’s Office (SAPO), and the National Anti-Corruption Bureau (NABU) to support and strengthen efforts to target high-level corruption, through the Criminal Division’s Office of Overseas Prosecutorial Development, Assistance and Training (OPDAT) Resident Legal Advisor in Kyiv.

The PG and Ambassador of Ukraine to the United States Oksana Markarova then presented Attorney General Garland with the Order of Prince Yaroslav the Wise award that President Zelenskyy authorized for the Attorney General’s steadfast support to Ukraine.

Also at the meeting was the Justice Department’s Counselor for War Crimes Accountability, Eli Rosenbaum, who accepted the order of merit award presented by PG Kostin and authorized by President Zelenskyy.

Attorney General Garland also reaffirmed the Department’s continued commitment to seizing and forfeiting illicit assets through the Department’s Task Force KleptoCapture and efforts of preventing and disrupting critical technology from being acquired by the Russian war machine.

PG Kostin updated the AG on anticorruption efforts as well as the importance of efforts to recover and seek justice for Ukrainian children kidnapped and forcibly deported by Russia and the gravity of Russian war crimes against Ukrainian children and adults.

WASHINGTON – To commemorate the 23rd anniversary of the signing of the Religious Land Use and Institutionalized Persons Act (RLUIPA), a federal law that protects persons and religious institutions from discriminatory land use regulations, the Justice Department announced several efforts to increase awareness of RLUIPA’s protections. The department will host a series of outreach events and has released updated informational materials about RLUIPA to provide an overview of the law and the department’s enforcement efforts, as well as information about how to identify and report violations.

“Over the last 23 years, the Religious Land Use and Institutionalized Persons Act has helped to combat religious discrimination by protecting the civil rights of faith communities across the country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “In light of continued anti-Semitism, Islamophobia and other forms of religious discrimination, the Justice Department stands ready to use federal civil rights law to ensure that communities can use their property for worship and to freely engage in religious exercise. The anniversary of RLUIPA provides an opportunity to underscore our commitment to protecting religious rights and ensuring that people are able to freely use land to worship and practice their faith.”

“RLUIPA provides important protections for religious groups throughout New Jersey,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “Our office is committed to combatting religious discrimination and ensuring that religious groups are treated fairly and equally under local land use laws. We look forward to increasing awareness of RLUIPA and co-hosting this important event with Seton Hall Law School.”

The department’s first RLUIPA outreach event will take place at Seton Hall Law School in Newark, New Jersey, on Oct. 30. The event will include remarks from officials with the Justice Department’s Civil Rights Division, the U.S. Attorney’s Office for the District of New Jersey, religious leaders in New Jersey whose organizations have benefited from RLUIPA’s protections and attorneys who have experience litigating RLUIPA cases. The department will host additional events across the country in the coming months, including in California and Michigan. For more information about these events, please see the department’s RLUIPA website. All events will be open to the public.

RLUIPA was passed unanimously by Congress and signed into law on Sept. 22, 2000, and contains provisions covering religious land use and religious exercise by people who are incarcerated. Since RLUIPA’s passage, the department has opened over 150 formal investigations and filed 28 lawsuits and 34 friend of the court briefs related to RLUIPA’s land use provisions. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.

Individuals who believe they have been subjected to religious discrimination in land use or zoning decisions may contact the Civil Rights Division’s Housing and Civil Enforcement Section at (833) 591-0291 or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at www.justice.gov/crt/about/hce/rluipaexplain.php.