District Not Recorded

SOUTH BEND – Dustin Hartline, 29 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Robert L. Miller, Jr. after pleading guilty to carjacking and discharging a firearm during a crime of violence, announced United States Attorney Clifford D. Johnson.

Hartline was sentenced to 169 months in prison followed by 3 years of supervised release. 

According to court filed documents, in February 2022, Hartline ordered a ride through a rideshare company. After the rideshare driver picked him up and drove him to his destination, Hartline pressed a loaded pistol into the driver’s body. Hartline threatened the driver and as the driver was pleading for his/her vehicle, Hartline fired a round from the pistol into the ground. Hartline then drove away in the car.  Using information from the driver’s cell phone left in the stolen car, law enforcement officers were able to track Hartline to a residence in Niles, Michigan, where he was arrested.  The stolen car and the firearm Hartline used – which likewise had been stolen-- were recovered when Hartline was arrested. A factor in the imposed sentence was Hartline’s recent criminal history of multiple felony convictions for grand theft of a motor vehicle, resisting law enforcement, and fleeing a police officer.

“Carjacking of rideshare drivers is a violent crime that is increasing as the public’s use of those services becomes commonplace. Frequently, as here, perpetrators use firearms as part of the carjacking.  Fortunately, the driver that Mr. Hartline victimized was not physically hurt, but whenever a gun is discharged during a crime, all the ingredients for deadly consequences are present,” said United States Attorney Clifford D. Johnson.  “My Office and our law enforcement partners will cooperatively utilize all combined resources to bring such lawless, violent and dangerous criminals to justice.”

“Today’s sentencing demonstrates the FBI’s commitment to investigating cases of violent crime to protect innocent victims and sends the message these crimes will not be tolerated,” said FBI Indianapolis Special Agent in Charge Herbert J. Stapleton. “The teamwork between the FBI and our law enforcement partners ensured there is one less predator on the street and helped make our communities safer.”

This case was investigated by the Federal Bureau of Investigation with the assistance of the South Bend Police Department and the Niles Michigan Police Department.  This case was prosecuted by Assistant United States Attorney Molly E. Donnelly.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

 

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Note: The Spanish version can be found here.

The Justice Department announced today that it has secured a settlement agreement with Nederlander Marketing, Inc., dba Broadway Direct (Broadway Direct), a ticket services company based in New York. The agreement resolves the department’s determination that Broadway Direct violated the Immigration and Nationality Act (INA) by discriminating against non-U.S. citizen workers based on citizenship status when it advertised and hired for a position in New York.

“Job advertisements that unlawfully limit jobs to U.S. citizens create barriers for non-U.S. citizens who have permission to work in the United States,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to ensure that all workers have a fair shot at job opportunities, and will hold employers accountable for discriminating against workers because of citizenship, immigration status, or national origin.”

The department began its investigation in July 2022, after learning that Broadway Direct may have posted a job advertisement limiting its hiring for a position to only U.S. citizen applicants. The department’s investigation determined that Broadway Direct had posted at least one job advertisement with unlawful citizenship status restrictions. Under the INA, employers cannot generally discriminate based on citizenship, immigration status, or national origin at any stage of the hiring process.

Under the terms of the settlement, Nederlander will pay a civil penalty to the United States, train staff on the INA’s anti-discrimination provision, review and revise their employment policies, and be subject to departmental monitoring for a two-year period.

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. Learn more about prohibitions against citizenship status discrimination.

Find more information on how employers can avoid discrimination in hiring and recruiting on IER’s website. Learn more about how IER protects workers’ rights in this video. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email IER@usdoj.gov; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.

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The Justice Department announced today that Attorney General Merrick B. Garland has selected Tara Twomey to serve as Director of the U.S. Trustee Program (USTP) at the Department of Justice.

“The United States Trustee Program plays a critical role in ensuring the fairness of the bankruptcy process — including by providing impartial oversight and protecting consumer debtors from fraud and abuse,” said Attorney General Merrick B. Garland. “I am confident that Ms. Twomey’s leadership will advance USTP’s mission to promote the integrity and efficiency of the bankruptcy system for debtors, creditors, and the public.”

Ms. Twomey has over 20 years of experience working on bankruptcy and consumer credit issues. She currently serves as the Executive Director of the National Consumer Bankruptcy Rights Center, which advances the rights of consumer bankruptcy debtors. She is Of Counsel at the National Consumer Law Center, and serves as a member of the Judicial Conference Advisory Committee on Bankruptcy Rules. She is the author of numerous books and articles on bankruptcy law and practice, and has served as an instructor at Boston College Law School, Harvard Law School, and Stanford Law School. Ms. Twomey is a fellow of the American College of Bankruptcy, a conferee of the National Bankruptcy Conference, and a director of the National Association of Consumer Bankruptcy Attorneys. She earned her Bachelor of Arts in Political Science from the University of California, San Diego, and her Juris Doctor, summa cum laude, from Boston College Law School.

“Throughout her career as a practitioner, scholar, and teacher, Tara Twomey has been a leader in the bankruptcy bar and a passionate voice for making the bankruptcy system accessible to all,” said Associate Attorney General Vanita Gupta. “She will bring energy, experience, and judgment to her new role as USTP Director. I look forward to working with her in this new role.”

USTP is the only neutral party in the bankruptcy process, and brings a national perspective to every bankruptcy matter. USTP also plays a critical role in protecting consumer debtors against fraud and abuse. USTP consists of the Executive Office for U.S. Trustees, located in Washington, D.C., and 21 regions with 90 field offices throughout the country. The Director of USTP is responsible for leading approximately 1000 employees to implement USTP’s core mission to protect the integrity of the bankruptcy system.

Ms. Twomey will assume her duties on Feb. 27.

Four former correctional officers at the Hawaii Community Correctional Center have been sentenced for their roles in the assault of an inmate and participation in a multi-year conspiracy to cover-up the abuse. 

Jordan DeMattos, 30, the youngest of the four officers involved, previously accepted responsibility for his crimes by pleading guilty, and testified against his co-defendants at a trial last Summer. He was sentenced to 12 months and one day in prison.

DeMattos’s co-defendants were found guilty during a joint trial of violating the rights of an inmate by assaulting him and lying to cover up the incident afterwards. The co-defendants have already been sentenced. Jonathan Taum, 50, the officer who supervised the beating and orchestrated the conspiracy to cover it up, was sentenced to 144 months in prison. Jason Tagaloa, 31, the officer who delivered the most vicious punches and kicks to the victim’s head, was sentenced to 96 months in prison. Craig Pinkney, 39, who struck the victim and held him down as Tagaloa punched and kicked him, was sentenced to 60 months in prison.

“Physical abuse and corruption by officials working inside jails and prisons is unacceptable, no matter where it occurs,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will vigorously prosecute abusive officers to ensure that the civil rights of all people, including those in custody, are protected.”

According to court documents and evidence introduced at trial, on June 15, 2015, Sergeant Taum supervised Tagaloa, Pinkney and DeMattos while they transported an inmate across the facility. The inmate became frightened in the course of the transfer, and Taum’s fellow officers took the non-violent inmate to the ground and repeatedly punched and kicked him in the face, head, and body — breaking the inmate’s jaw, nose, and orbital socket. Thereafter, Taum led the officers in a cover-up conspiracy that included writing false reports, submitting false statements to internal affairs, and providing false testimony to disciplinary board members.

“This vicious assault on an incarcerated person justifies both the convictions and sentences,” said U.S. Attorney Clare E. Connors for the District of Hawaii. “As illustrated by this prosecution, we are committed to enforcing our nation’s civil rights laws.”

“These correctional officers were in a position of public trust and violated that trust not only by acts of violence against an inmate but also by attempting to cover it up,” said Special Agent in Charge Steven Merrill of the FBI Honolulu Field Office. “The FBI will stop at nothing when investigating allegations of civil rights violations.”

The FBI Honolulu Field Office investigated the case. 

Assistant U.S. Attorney Craig Nolan for the District of Hawaii and Special Litigation Counsel Christopher Perras and Trial Attorney Thomas Johnson of the Civil Rights Division’s Criminal Section prosecuted the case.

El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Nederlander Marketing, Inc., que opera como Broadway Direct (Broadway Direct), una empresa de servicios de boletos con sede en Nueva York. El acuerdo resuelve la determinación del Departamento que Broadway Direct vulneró la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al discriminar a trabajadores no ciudadanos de los EE. UU. con base en su estatus de ciudadanía cuando publicó anuncios y contrató para un puesto en Nueva York.

«Los anuncios de trabajo que limitan ilegalmente los trabajos a ciudadanos de los EE. UU. crean barreras para los no ciudadanos de los EE. UU. que cuentan con permiso para trabajar en los Estados Unidos», manifestó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá garantizando que todos los trabajadores cuenten con una oportunidad justa para las oportunidades de trabajo y hará responsable a los empleadores por discriminar a los trabajadores por motivos de ciudadanía, estatus migratorio o nacionalidad de origen».

El Departamento inició su investigación en julio de 2022, al enterarse de que Broadway Direct puede haber publicado un anuncio de trabajo que limitaba la contratación para el puesto a postulantes ciudadanos de los EE. UU. únicamente. La investigación del Departamento determinó que Broadway Direct había publicado al menos un anuncio de trabajo con restricciones ilegales de estatus de ciudadanía. En virtud de la INA, los empleadores generalmente no pueden discriminar por motivos de ciudadanía, estatus migratorio o nacionalidad de origen en ninguna etapa del proceso de contratación.

Según los términos del acuerdo, Nederlander pagará una sanción civil a los Estados Unidos, capacitará al personal sobre la disposición antidiscriminatoria de la INA, revisará y actualizará sus políticas de empleo y se someterá a la supervisión del Departamento durante dos años.

La Sección de Derechos de Inmigrantes y Empleados (IER) 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, reclutamiento o recomendación por comisión; las prácticas documentales injustas; y las represalias y la intimidación.

Encuentre más información en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación durante la contratación y el reclutamiento. Aprenda más sobre cómo la IER protege los derechos de los trabajadores en este vídeo. Para más información sobre las protecciones contra la discriminación en virtud de las leyes de inmigración, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase en un seminario en línea gratuito; envié un correo electrónico a IER@usdoj.gov; o visite los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.

 

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The Justice Department announced today that it filed a complaint and proposed consent decree with the U.S. District Court for the Middle District of Tennessee, to resolve allegations that Cumberland County, Tennessee violated Title I of the Americans with Disabilities Act (ADA), which prohibits employers from discriminating based on disability. Among other things, it requires them to make reasonable accommodations to qualified employees with disabilities.

The lawsuit alleges that the County Sheriff’s Department discriminated against a correctional officer on the basis of his disability, opioid use disorder (OUD), by failing to make reasonable accommodations to permit his continued employment while taking prescribed medication for OUD. The Sheriff’s Department also constructively discharged him by forcing him to resign. The lawsuit also alleges that the Sheriff’s Department violated the ADA by preventing employees who are taking legally prescribed medications from having them present in their system while at work. This is the Justice Department’s first ADA settlement resolving claims of employment discrimination based on opioid use disorder.

“Employees with opioid use disorder or other disabilities should not face termination for taking lawfully prescribed medications needed to treat their disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department remains committed to ensuring equal employment opportunities for people with opioid use disorder and other disabilities.”

Under the terms of the consent decree, which must be approved by the Court, the County will implement policies and procedures regarding non-discrimination in employment, and train personnel on the requirements of Title I of the ADA. The County will also pay a total of $160,000 to the former correctional officer. 

This matter is based on a referral from the Nashville Area Office of the U.S. Equal Employment Opportunity Commission, which conducted the initial investigation.

For more information on the Civil Rights Division, please visit www.justice.gov/crt. For more information on the Civil Rights Division’s Disability Rights Section, please call the department’s toll-free ADA Information Line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov.

The owner of several companies in the construction industry was sentenced to 27 months in prison and ordered to pay a $1.75 million fine for his role in a long-running scheme to defraud the United States.

Following a six-day trial in the U.S. District Court for the Western District of Texas in June 2022, a jury convicted Michael Angelo Padron of conspiracy to defraud the United States and wire fraud for his role in obtaining valuable government contracts under programs administered by the Small Business Administration (SBA). The evidence showed that Padron conspired with others to install a service-disabled veteran as the ostensible owner of a general construction company held out as a Service-Disabled Veteran-Owned Small Business (SDVOSB). Padron, along with his business partners, exercised disqualifying financial and operational control over the construction company. According to court documents, the conspirators concealed that control in order to secure over $240 million in government contracts that were set aside for SDVOSBs and other small businesses in order to benefit their larger, nonqualifying businesses.

“The sentence reflects the seriousness of the offense and the long-running nature of the scheme,” said Acting Deputy Assistant Attorney General for Criminal Enforcement Marvin Price of the Justice Department’s Antitrust Division. “The Antitrust Division and its Procurement Collusion Strike Force remain committed to holding executives accountable when they choose to defraud federal procurement programs.”

“Conspiring to fraudulently use SBA program funds intended for service-disabled veteran’s is reprehensible,” said Special Agent in Charge Sharon Johnson of the Small Business Administration Office of Inspector General (SBA-OIG), Central Region. “This sentence demonstrates that those that defraud the nations vital economic programs will be held accountable. I want to thank the Antitrust Division and our law enforcement partners for their dedication and pursuit of justice.”

“Today's sentencing should serve as a stark reminder that our agents, and those of our partner law enforcement agencies, are relentless in our pursuit of those who choose to defraud the government," said Special Agent in Charge L. Scott Moreland of the Department of the Army Criminal Investigation Division’s (CID) Major Procurement Fraud Field Office. “We have a very robust group of highly-trained special agents and analysts who are masters at combating and uncovering fraud, deception, and other criminal acts associated with government contracting and purchasing.”

“A level playing field is vital to the procurement process,” said Special Agent in Charge Jamie Willemin of the General Services Administration Office of Inspector General (GSA-OIG) Southwest and Rocky Mountain Division. “Today’s sentencing signifies GSA OIG’s commitment to aggressively investigate fraudulent business practices that cheat legitimate small businesses and the taxpayer.”

“The VA-OIG is committed to identifying and stopping those individuals who misappropriate an opportunity meant solely for our nation’s veterans with disabilities,” said Acting Special Agent in Charge Patrick Roche of the Department of Veterans Affairs Office of Inspector General’s (VA-OIG) South Central Field Office. “The VA-OIG thanks the Department of Justice and our law enforcement partners for their joint efforts to achieve justice in this case.” 

The Antitrust Division’s Washington Criminal II Section prosecuted the case, which was investigated by SBA-OIG, U.S. Army CID Major Procurement Fraud Unit, VA-OIG, DCIS, and GSA-OIG. The U.S. Attorney’s Office for the Western District of Texas and the Army Audit Agency also assisted with the investigation.

Anyone with information in connection with this investigation is urged to call the Antitrust Division’s Washington Criminal II Section at 202-598-4000, or visit https://www.justice.gov/atr/contact/newcase.html.

In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. To learn more about the PCSF, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to defense-related spending, go to https://www.justice.gov/procurement-collusion-strike-force.

A Florida CPA pleaded guilty in the District of New Jersey today to conspiring to sell fraudulent tax deductions disguised as charitable deductions to high-income clients.

According to the Information and other court documents and statements made in court, Ralph B. Anderson of Naples, Florida, promoted and sold fraudulent syndicated conservation easement tax shelters that allowed high-income clients to buy tax deductions to illegally shelter their income from taxes. These illegal tax shelters facilitated high-income taxpayers in claiming inflated charitable contribution tax deductions in connection with the donation of a conservation easement over land. Between 2013 and 2019, while working as a CPA, Anderson, along with others, promoted and helped sell such fraudulent syndicated conservation easement tax shelters.  To carry out the scheme, the conspirators obtained falsely inflated appraisals in order to achieve the desired amount of tax deductions. Anderson was paid more than $300,000 in commissions for his promotion and sale of the tax shelters. He also was given “free units” he could use to take false deductions for charitable contributions on his own tax returns. As a part of his guilty plea, Anderson admitted his conduct resulted in a loss of nearly $3.5 million.

Anderson is scheduled to be sentenced on June 7, 2023, and faces a maximum penalty of five years in prison for conspiring to defraud the United States. He also faces a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Christopher Magnani and Richard Rolwing of the Tax Division are prosecuting the case.

A federal jury convicted a Colorado physician on Friday for misappropriating approximately $250,000 from two separate COVID-19 relief programs.

According to court documents and evidence presented at trial, Dr. Francis F. Joseph, 57, of Highlands Ranch, received government funds for COVID-19 relief from the Accelerated and Advance Payment Program and the Paycheck Protection Program. Each program was designed to provide emergency financial assistance to medical providers and small businesses who were suffering the economic effects resulting from the COVID-19 pandemic. In all, Joseph received approximately $250,000 from these funds and fraudulently used the money to pay for his own personal expenses, and not in accordance with the terms of the relief programs. 

Joseph was convicted in the District of Colorado of theft in connection with healthcare and wire fraud. The jury acquitted Joseph of theft of government property related to a separate Covid-relief payment.  He faces a maximum penalty of 20 years in prison on the wire-fraud count. 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.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Curt Muller of the Department of Health and Human Services Office of Inspector General (HHS-OIG), Kansas City Region; and Special Agent in Charge Weston King of the U.S. Small Business Administration Office of Inspector General (SBA-OIG), Western Region made the announcement.

The HHS-OIG and SBA-OIG investigated the case.

Trial Attorneys Jennifer Bilinkas and John J. Liolos of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Criminal Division’s efforts to combat fraud related to the COVID-19 pandemic, particularly with respect to the resources made available by Congress through the Coronavirus Aid, Relief, and Economic Security (CARES) Act for programs including the Paycheck Protection Program, the Economic Injury Disaster Loan program, and the Provider Relief Fund. Since the CARES Act passed, Fraud Section attorneys have prosecuted more than 200 defendants in more than 130 criminal cases related to CARES Act programs and funds. The Fraud Section has also seized more than $80 million in cash proceeds derived from CARES Act-related fraud schemes, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/cares-act-fraud.

In May 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

United States Attorney Steven Russell announced that Gary Ross, 24, of Omaha, Nebraska, was sentenced on January 13, 2023, in federal court in Omaha for possession with intent to distribute marijuana and possession of a firearm in furtherance of a drug trafficking crime.  Chief United States District Judge Robert F. Rossiter, Jr. sentenced Ross to 61 months of imprisonment.  There is no parole in the federal system.  After his release from prison, he will begin a three-year term of supervised release.

On August 28, 2020, officers conducted a search warrant at Ross’s Omaha apartment.  Officers located approximately three pounds of marijuana, a 9 mm handgun, a scale, and approximately $15,300.  The firearm was in Ross’s bedroom and the marijuana was near it in a duffel bag.  Per the plea agreement, the $15,300 was forfeited.

This case was investigated by the Federal Bureau of Investigation, Safe Streets Task Force, Omaha Police Department.

A Texas military contractor pleaded guilty on Jan. 12 to rigging bids on public military contracts in the state of Texas.

According to court documents, Aaron Stephens, 53, conspired with others to rig bids on certain government contracts from May 2013 to January 2018 in order to give the false impression of competition and to secure government payments in excess of $17.2 million. The plea agreement detailed six contracting bids that Stephens and his co-conspirators rigged, which included work performed for the Red River Army Depot in Texarkana, Texas. The projects included heavy military equipment work such as refurbishing armor kits for military trucks and turrets for Humvees. One of Stephens’s co-conspirators, John “Mark” Leveritt, pleaded guilty in July 2022.

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

The Antitrust Division’s Washington Criminal II Section is prosecuting the case, which was investigated with the assistance of the U.S. Attorney’s Office for the Eastern District of Texas, the U.S. Army Criminal Investigation Division’s Dallas Fraud Resident Agency, and the FBI’s Dallas Field Office.

In November 2019, the Department of Justice created the Procurement Collusion Strike Force (PCSF), a joint law enforcement effort to combat antitrust crimes and related fraudulent schemes that impact government procurement, grant, and program funding at all levels of government – federal, state and local. For more information, visit https://www.justice.gov/procurement-collusion-strike-force.

The Justice Department announced today that it has filed a proposed consent decree with Barnet Dulaney Perkins Eye Centers (BDP) and American Vision Partners (AVP), to resolve its lawsuit alleging that the eye care practices violated the Americans with Disabilities Act. The lawsuit alleged that BDP and AVP refused to operate on certain patients who needed assistance transferring from their wheelchairs for surgery and required other such patients to pay for third-party medical transport and transfer assistance. Medical providers routinely offer this type of assistance to patients who need help transferring from a wheelchair to an examination or surgical table for surgery and exams.

“The Americans with Disabilities Act requires health care providers to offer equal access to their services,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Patients with disabilities must not be denied crucial medical services or forced to pay surcharges because they need transfer assistance. The Justice Department is fully committed to protecting the civil rights of individuals with disabilities to get the medical care they need.” 

“This agreement reflects an important step in obtaining equal access to health care services for Arizonans with disabilities,” said U.S. Attorney Gary Restaino for the District of Arizona. “The U.S. Attorney’s Office will continue to work closely with the Civil Rights Division to ensure that all Arizonans are afforded equal opportunity to access health care services in our state.”

Under the decree, BDP and AVP will end their policies of denying surgery and prohibiting staff from providing transfer assistance to people with mobility disabilities. BDP operates eye care facilities throughout Arizona, and AVP, one of the largest eye care practice management organizations in the country, partners with eye care providers in Arizona, New Mexico, Nevada and Texas, including BDP, Southwestern Eye Center, M & M Eye Institute, Retinol Consultants of Arizona, Abrams Eye Institute, Southwest Eye Institute, Aiello Eye Institute, Havasu Eye Center, Visage Aesthetics and Plastic Surgery and Moretsky Cassidy Vision Correction. These eye care providers will also train staff on the new policy requirements and on safe transfer techniques, and pay $950,000 to patients and prospective patients who were harmed by its policies and a civil penalty of $50,000.

For more information on the Civil Rights Division, please visit http://www.justice.gov/crt. For more information on the ADA, please call the department’s toll-free ADA information line at 800-514-0301 (TDD 800-514-0383) or visit www.ada.gov. ADA complaints may be filed online at http://www.ada.gov/complaint.

The Justice Department announced today that it has reached a settlement with Schuylkill County, Pennsylvania, to resolve the department’s claims in Doe et al. v. Schuylkill County et al., a lawsuit filed in the U.S. District Court for the Middle District of Pennsylvania alleging violations of Title VII of the Civil Rights Act of 1964 (Title VII).

The consent decree resolves the department’s allegations that County Commissioner George F. Halcovage Jr. sexually harassed four female employees and that those employees suffered retaliation when they opposed Halcovage’s sexual harassment. The complaint also alleged multiple incidents of sexual advances, coercion of sexual intercourse and inappropriate sex-based comments occurring over many years.

“All people deserve to go to work each day without fear of sexual harassment and retaliation when they oppose that harassment,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This resolution sends a clear message that the Justice Department will not tolerate sexual harassment and retaliation especially when it is perpetrated by an elected official who abuses the powers of their office.”

“Today, by this consent decree, we emphasize that local governments must have comprehensive policies and training to prevent sexual harassment and retaliation by public servants,” said U.S. Attorney Gerard M. Karam for the Middle District of Pennsylvania. “No official can abuse their power and position to a workforce they were elected to supervise, and this settlement provides steps the County must take to prevent and address this abusive behavior.”

Under the terms of the consent decree, if approved by the court, the county will, among other things, retain a consultant from a list of consultants approved by the Justice Department. The consultant will conduct a workplace climate survey, propose improvements to the County’s equal employment opportunity policies and develop a new sexual harassment training program. The consent decree also includes restrictions on Commissioner Halcovage, who has refused to resign from his position and who can only be removed, under state law, through impeachment in the Pennsylvania House of Representatives and conviction in the Pennsylvania Senate. The four women harassed by Halcovage, who have additional claims under state and federal law against Schuylkill County and several individual defendants, will continue to pursue their claims.

This lawsuit is part of the Civil Rights Division’s Sexual Harassment in the Workplace Initiative. The initiative is aimed at eradicating sexual harassment in state and local government workplaces. It focuses on litigation, outreach and development of effective remedial measures to address and prevent future sex discrimination and harassment.

Trial Attorneys Allan Townsend and Amber Trzinski Fox of the Civil Rights Division’s Employment Litigation Section and Assistant U.S. Attorney Michael Butler for the Middle District of Pennsylvania prosecuted this case. 

The full and fair enforcement of Title VII is a top priority of the Civil Rights Division’s Employment Litigation Section. Additional information about the Civil Rights Division and the Employment Litigation Section is available on its websites www.justice.gov/crt and www.justice.gov/crt/employment-litigation-section.

Today, the Department of Justice announced it has submitted to the Federal Register the “Stabilizing Braces” Final Rule, which makes clear that when manufacturers, dealers, and individuals use stabilizing braces to convert pistols into rifles with a barrel of less than 16 inches, commonly referred to as a short-barreled rifles, they must comply with the laws that regulate those rifles, including the National Firearms Act (NFA). In April 2021, at an event with President Biden, the Attorney General directed the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) to address the issue of stabilizing braces.

“Keeping our communities safe from gun violence is among the Department’s highest priorities,” said Attorney General Merrick B. Garland. “Almost a century ago, Congress determined that short-barreled rifles must be subject to heightened requirements. Today’s rule makes clear that firearm manufacturers, dealers, and individuals cannot evade these important public safety protections simply by adding accessories to pistols that transform them into short-barreled rifles.”

“This rule enhances public safety and prevents people from circumventing the laws Congress passed almost a century ago. In the days of Al Capone, Congress said back then that short-barreled rifles and sawed-off shotguns should be subjected to greater legal requirements than most other guns. The reason for that is that short-barreled rifles have the greater capability of long guns, yet are easier to conceal, like a pistol,” said ATF Director Steven Dettelbach. “But certain so-called stabilizing braces are designed to just attach to pistols, essentially converting them into short-barreled rifles to be fired from the shoulder. Therefore, they must be treated in the same way under the statute.”

Since the 1930s, the NFA has imposed requirements on short-barreled rifles because they are more easily concealable than long-barreled rifles but have more destructive power than traditional handguns. Beyond background checks and serial numbers, those heightened requirements include taxation and registration requirements that include background checks for all transfers including private transfers. Often, when pistols are converted to rifles by the use of a stabilizing brace covered by the rule, they have barrels less than 16 inches in length and must comply with the same heightened requirements that apply to short-barreled rifles under the NFA.

The rule goes into effect on the date of publication in the Federal Register. The rule allows for a 120-day period for manufacturers, dealers, and individuals to register tax-free any existing NFA short-barreled rifles covered by the rule. Other options including removing the stabilizing brace to return the firearm to a pistol or surrendering covered short-barreled rifles to ATF. Nothing in this rule bans stabilizing braces or the use of stabilizing braces on pistols.

On June 7, 2021, the Department of Justice issued a notice of proposed rulemaking, and during the 90-day open comment period, the ATF received more than 237,000 comments.

The final rule, as submitted to the Federal Register, can be viewed here: https://www.atf.gov/rules-and-regulations/factoring-criteria-firearms-attached-stabilizing-braces

To learn more about the rulemaking process, please see: https://www.federalregister.gov/uploads/2011/01/the_rulemaking_process.pdf

A federal judge sentenced a Florida woman to prison for making a false statement to a government investigator related to a clinical trial that studied the effectiveness of asthma drugs in children.

Jessica Palacio, 37, of Miami, was convicted by a jury on Sept. 13, 2022, for lying to a U.S. Food and Drug Administration (FDA) investigator during a 2017 regulatory inspection of the firm conducting the drug trial. On January 12, U.S. District Judge Darrin P. Gayles sentenced Palacio to 36 months in prison and three years of supervised release.

According to evidence presented at trial, Palacio worked from 2013 to 2015 as a clinical research coordinator at a clinical trial firm in Miami called Unlimited Medical Research (UMR). UMR was one of many companies hired to conduct a clinical trial designed to investigate the safety of an asthma medication in children. The drug manufacturer identified issues in the trial performed by the company based on a review of data and notified the FDA.

In May 2021, a grand jury in Miami returned a two-count indictment against Palacio alleging a scheme to falsify medical records to make it appear as though pediatric subjects made scheduled visits to UMR, received physical exams from a clinical investigator, and took study drugs as required, when in fact these events had not occurred. The indictment alleged that when Palacio was confronted by an FDA regulatory investigator about her role in the clinical trial conducted by UMR, she submitted a false affidavit claiming that she had performed a screening visit of a child subject when she had not.

Following trial, the jury found Palacio guilty of both conspiring to commit wire fraud and with making a false statement. The court subsequently granted a defense motion for a judgment of acquittal on the conspiracy charge but denied a motion for judgment of acquittal as to the false statement charge.

“Clinical trials play a critical role in establishing drug safety and efficacy,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head  of the Justice Department’s Civil Division. “The Justice Department will work closely with its law enforcement partners to protect the integrity of this important process.”

“Reliable and accurate data from clinical trials is the cornerstone of FDA’s evaluation of a new drug,” said Special Agent in Charge Justin C. Fielder in the FDA Office of Criminal Investigations Miami Field Office. “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. Today’s sentencing demonstrates that those who attempt to subvert the regulatory functions of the FDA by making false statements to the agency to cover up falsified data will be held accountable for their actions.”

Four co-conspirators previously pleaded guilty and were sentenced for their roles in the scheme at UMR. Yvelice Villaman Bencosme, M.D., 66, of Miami, was sentenced to 36 months’ imprisonment, and Lisett Raventos, 48, also of Miami, was sentenced to 30 months’ imprisonment. In addition, Maytee Lledo, 52, of Hialeah, Florida, was sentenced to 14 months’ imprisonment, which the court later modified to time served, and Olga Torres, 50, of Miami, was sentenced to 3 years’ probation.    

The FDA Office of Criminal Investigations investigated the case.

The case was prosecuted by Senior Litigation Counsel David A. Frank and Trial Attorney Marilee L. Miller from the Civil Division’s Consumer Protection Branch, with the assistance of Associate Chief Kyrsten Melander for Enforcement at FDA’s Office of Chief Counsel.

The United States has filed a complaint under the National Housing Act of 1934 (NHA) against Bob Dean Jr. and several affiliated corporate entities for misappropriating and misusing the assets and income of four nursing homes in Louisiana before and after Hurricane Ida’s landfall in August 2021. The four nursing homes, all of which were owned and operated by Dean and his companies, and had loans insured by the Federal Housing Administration (FHA), are Maison De’Ville Nursing Home – Houma, Maison De’Ville Nursing Home of Harvey, Maison Orleans Healthcare of New Orleans, and West Jefferson Health Care Center.

The FHA, which is part of the U.S. Department of Housing and Urban Development (HUD), provides mortgage insurance on loans that cover residential care facilities, such as nursing homes, pursuant to the NHA. To encourage lenders to make loans to such facilities, FHA mortgage insurance provides lenders with protection against losses that result from borrowers defaulting on their mortgage loans. To obtain such FHA-insured loans, loan recipients must enter into Regulatory Agreements with the FHA that provide, among other requirements, that the assets and income of an FHA-insured nursing home may only be spent on goods and services that are reasonable and necessary to the operation of the nursing home. The NHA permits the United States to recover twice the amount of any assets and income of FHA-insured nursing homes that were improperly distributed or misspent.

The United States’ complaint, filed in U.S. District Court for the Middle District of Louisiana, alleges that, from 2016 to 2021, Dean required the nursing homes to pay “rent” on an industrial warehouse he had acquired supposedly to serve as a hurricane evacuation center. The rent, which totaled more than $1 million, was paid to one of his corporate entities. Rather than using the funds to prepare the warehouse for a hurricane, he funneled much of that money to his personal bank accounts. In the days leading up to Hurricane Ida’s expected landfall in August 2021, Dean evacuated the residents of the four nursing homes to the warehouse. After residents arrived, sanitation was not maintained, and the nursing homes’ staff did not prepare sufficient food, provide wound care, or ensure adequate medical care and support for the residents. As a result, on Sept. 2, 2021, the Louisiana Department of Health removed the residents from the evacuation center and revoked Dean’s nursing home licenses.

The complaint further alleges that after the residents had been evacuated and the licenses revoked, Dean and his corporate entities continued to misdirect and misspend the nursing homes’ assets and income. Specifically, Dean directed his bookkeeper to sweep all of the nursing homes’ bank accounts and transfer the millions of dollars of funds to his personal accounts. The United States alleges that Dean did not use these funds to operate or maintain the nursing homes, which at this point were not operating because of the hurricane, and instead used this money to purchase personal goods and services, including antiques, firearms, and cars, and to fund allowances for his family members. The complaint alleges that, in total, Dean misspent and misallocated more than $4 million of the nursing homes’ assets and income.

“The department is committed to protecting our nation’s seniors and the important federal programs designed to support them,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “When individuals seek to exploit these programs for their own financial gain, we will use all of the appropriate tools at our disposal to hold them accountable.”

“Federal loan guarantees are designed to facilitate the care of our most vulnerable citizens,” said U.S. Attorney Ronald C. Gathe Jr. for the Middle District of Louisiana. “It is unfortunate that some chose to use the tragic landfall of Hurricane Ida as an opportunity to take advantage of the system to unjustly enrich their business. This office will continue to work with our partners to hold those accountable who misappropriate federal funds.”

“Upon learning of the callous manner in which residents of nursing homes owned by Bob Dean were treated during Hurricane Ida, HUD referred this matter to the Justice Department to investigate Dean’s alleged misuse of HUD’s funds,” said General Counsel Damon Smith of the HUD. "By working with our partners at the Justice Department and supporting this action, HUD reaffirms that it takes the obligations of nursing home owners seriously.”

“Dean’s alleged actions represent a gross disregard for human life and our most vulnerable community,” said Acting Special Agent in Charge Robert Lawler of HUD Office of Inspector General (HUD OIG). “HUD OIG will continue to work with its law enforcement partners to diligently pursue, investigate, and hold accountable bad actors who willfully misuse and mismanage Federal assets and place HUD beneficiaries in harm’s way.”

The complaint is the result of an effort by the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Louisiana, with substantial assistance from HUD and the HUD OIG. This matter is being handled by Fraud Section Trial Attorney Christopher Reimer and Assistant U.S. Attorney Davis Rhorer Jr. for the Middle District of Louisiana.

The case is captioned United States v. Bob Dean, Jr., et al., 3:23-cv-00019 (M.D. La.).

The United States’ complaint stems from an investigation that the Department of Justice initiated as part of its Elder Justice Initiative, which supports the efforts of state and local prosecutors, law enforcement, and other elder justice professionals to combat elder abuse, neglect, and financial exploitation, with the development of training, resources and information. Learn more about the Justice Department’s Elder Justice Initiative at http://www.justice.gov/elderjustice.

 

 

Following his appointment by Attorney General Merrick B. Garland today, Special Counsel Robert K. Hur made the following statement:

“I will conduct the assigned investigation with fair, impartial, and dispassionate judgment. I intend to follow the facts swiftly and thoroughly, without fear or favor, and will honor the trust placed in me to perform this service.”

Attorney General Merrick B. Garland announced today the appointment of a former career Justice Department prosecutor and former U.S. Attorney for the District of Maryland Robert K. Hur to serve as special counsel to conduct the investigation of matters that were the subject of the initial investigation by U.S. Attorney John R. Lausch Jr. related to the possible unauthorized removal and retention of classified documents or other records discovered at the Penn Biden Center for Diplomacy and Global Engagement and the Wilmington, Delaware, private residence of President Joseph R. Biden Jr.

“Based on Mr. Lausch's initial investigation, I concluded that, under the Special Counsel regulations, it was in the public interest to appoint a Special Counsel. In the days since, while Mr. Lausch continued the investigation, the Department identified Mr. Hur for appointment as Special Counsel.

“This appointment underscores for the public the Department's commitment to both independence and accountability in particularly sensitive matters, and to making decisions indisputably guided only by the facts and the law. 

I am confident that Mr. Hur will carry out his responsibility in an even-handed and urgent manner, and in accordance with the highest traditions of this Department.”

A federal judge in Amarillo yesterday sentenced Dr. Richard Kazmaier, 55, to six months in prison, three years of post-release supervision, and a $5,000 fine. Kazmaier pleaded guilty on Aug. 19, 2022, to a Lacey Act felony for importing protected wildlife into the United States without declaring it or obtaining the required permits.

According to court documents, Kazmaier was an associate professor of biology at West Texas A&M University before resigning in October 2022. A federal grand jury issued an indictment in January 2022 charging Kazmaier with smuggling goods into the United States and two violations of the Endangered Species Act. Kazmaier pleaded guilty to a superseding information charging the Lacey Act, the nation’s oldest wildlife trafficking statute. The court dismissed the indictment at the government’s request.

The Lacey Act and federal regulations require importers to declare wildlife to customs and U.S. Fish and Wildlife Service when it enters the country. Between March 2013 and February 2020, Kazmaier admitted he imported wildlife items from Bulgaria, Canada, China, Czech Republic, Indonesia, Latvia, Norway, Russia, South Africa, Spain, the United Kingdom, and Uruguay into Texas without declaring them. Kazmaier admitted he purchased and imported approximately 358 wildlife items with a total market value of $14,423 from eBay and other online sales websites. He did not import any live animals and instead purchased mostly skulls, skeletons, and taxidermy mounts.

The Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) regulates trade in endangered or threatened species through permit requirements. The United States and 183 other countries are signatories to the CITES treaty. Kazmaier acknowledged importing 14 protected species without obtaining permits, including the Eurasian otter, lynx, caracal, vervet monkey, greater naked-tailed armadillo, and king bird-of-paradise.

The U.S. Fish and Wildlife Service’s Office of Law Enforcement in Redmond, Washington, conducted the investigation as part of Operation Global Reach. The operation focused on the trafficking of wildlife from Indonesia to the United States.

The government is represented by Assistant U.S. Attorney Anna Marie Bell for the Northern District of Texas and Senior Trial Attorney Ryan Connors of the Department of Justice’s Environmental Crimes Section.

On Sunday, Jan. 8, in connection with the North America Leaders’ Summit, Attorney General Merrick B. Garland traveled to Mexico City, Mexico for bilateral meetings with Mexican and Canadian officials on shared law enforcement priorities.

On Monday, Jan. 9, the Attorney General joined members of the cabinet and President Joseph R. Biden in a bilateral meeting with Mexican President Andrés Manuel López Obrador and members of his cabinet. The bilateral meeting included discussions on deepening and expanding security cooperation between countries, including efforts to combat drug trafficking.

On Tuesday, Jan. 10, the Attorney General joined members of the cabinet and President Biden for a bilateral meeting with Canadian Prime Minister Justin Trudeau and members of his cabinet to discuss strengthening our defense and security cooperation and addressing regional and global challenges, including Russia’s war in Ukraine and instability in Haiti. The Attorney General also met with Canadian Public Safety Minister Marco Mendicino on those issues and other shared law enforcement priorities such as combating drug and firearms trafficking.

While in Mexico City, the Attorney General participated in additional meetings on the Justice Department’s work to combat trafficking of fentanyl and other drugs, including fentanyl precursors, firearms trafficking, and human smuggling. The Attorney General returned to the United States on Tuesday, Jan. 10.

The Attorney General receives a briefing from the U.S. law enforcement representatives stationed at the U.S. Embassy in Mexico The Attorney General with the Canadian Minister of Public Safety Marco Mendicino

 

A Florida man was sentenced today to 133 months in prison for his role in an international telemarketing scheme orchestrated from a call center in Costa Rica that defrauded more than 400 victims – many of whom were elderly – in the United States out of millions of dollars.

Manuel Mauro Chavez, 32, of Hollywood, was convicted at trial in July 2021 in the Western District of North Carolina of one count of conspiracy to commit mail and wire fraud, six counts of wire fraud, one count of conspiracy to commit international money laundering, and six counts of international money laundering. According to court documents and evidence presented at trial, Chavez was a U.S.-based participant in a fraudulent scheme in which telemarketers based in Costa Rica falsely posed as U.S. government officials and contacted victims in the United States to tell them they had won a substantial “sweepstakes” prize, but before collecting this supposed prize, they needed to make a series of up-front payments to cover purported taxes or other fees. After deceiving victims out of their money, Chavez transmitted these funds from the United States for the benefit of the call center and others involved in the scheme in Costa Rica.

In two related matters, Mark Raymond Oman, 38, of Long Beach, Washington, was sentenced on Nov. 17, 2022, to three years and one month in prison, and Paul Andy Stiep, 30, of Miami, was sentenced on Dec. 20, 2022, to seven years in prison. Oman worked at the call center soliciting victims and collected victim funds in Costa Rica, while Stiep transmitted victims’ payments from the United States for the benefit of the call center in Costa Rica.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division, Acting Special Agent in Charge Michael Scherck of the FBI Charlotte Field Office, Inspector in Charge Tommy Coke of the U.S. Postal Inspection Service’s (USPIS) Atlanta Division, and Special Agent in Charge Bryant Jackson of the IRS Criminal Investigation (IRS-CI) Cincinnati Field Office made the announcement.

The FBI, USPIS, and IRS-CI investigated the case.

Trial Attorneys Joshua DeBold and Della Sentilles of the Criminal Division’s Fraud Section prosecuted the case.

The department’s extensive and broad-based efforts to combat elder fraud seek to halt the widespread losses seniors suffer from fraud schemes. The best method for prevention, however, is by sharing information about the various types of elder fraud schemes with relatives, friends, neighbors, and other seniors who can use that information to protect themselves.

If you or someone you know is age 60 or older and has been a victim of financial fraud, help is available at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This Department of Justice 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 staffed seven days a week from 6:00 a.m. to 11:00 p.m. ET. English, Spanish, and other languages are available.

The former leader of a drug trafficking organization that operated in Baja California, Mexico, was sentenced to 15 years in prison for his role in leading an international drug trafficking organization which transported more than 450 kilograms of cocaine and 45,000 kilograms of marijuana into the United States from Mexico.

In April 2018, Pedro Alejandro Rubio-Perez pleaded guilty in the District of Columbia to conspiracy to distribute five kilograms or more of cocaine and 1,000 kilograms or more of marijuana for importation to the United States. According to court documents, Rubio-Perez led a drug trafficking organization operating in Baja, California between 1999 and 2009, and was a principal leader from at least 2004 to 2006. Rubio-Perez and members of his organization used tractor-trailer trucks with hidden compartments to transport at least 450 kilograms of cocaine and tons of marijuana into the United States.

According to court documents, cocaine or marijuana distributed by Rubio-Perez was seized in Arizona, California, and Missouri. Drug proceeds in bulk cash form were hidden in the same tractor-trailers and delivered to stash houses at the U.S. border with Mexico, where the money was counted and then transported to Rubio-Perez in Mexico or flown to Rubio-Perez in private aircraft from the United States to Mexico, carrying up to $2 million at a time.          

The DEA Orange County, California Office and DEA Mexico City Country Office investigated the case. 

Trial Attorneys Kate Naseef and Samantha Thompson of the Criminal Division’s Narcotic and Dangerous Drug Section prosecuted this case, with significant assistance provided by the Justice Department’s Judicial Attachés in Mexico City, the Justice Department’s Office of International Affairs, and the Criminal Division’s Office of Enforcement Operations.

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Fritz Ventura Tady Ganzon, age 40 from Dededo, Guam, was sentenced to 121 months imprisonment with credit for time served by the District Court of Guam.  Ganzon was charged with Conspiracy to Import Fifty or More Grams of Methamphetamine, in violation of 21 U.S.C. §§ 952 and 960.  The Court also ordered five years of supervised release and a mandatory $100 special assessment fee.  In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits. 

Ganzon conspired with others since January 2017 to import methamphetamine from the Philippines into Guam for distribution. Two trips were planned.  On the first trip, a Philippine drug supplier paid for Ganzon’s travel expenses and arranged for the drugs to be delivered to Ganzon.  In April 2017, Ganzon travelled to the Philippines to pick up the drugs, which were concealed in noodle packaging.  Ganzon then smuggled the drugs into Guam on May 5, 2017.  The supplier paid Ganzon $3,000 for importing the drugs.

During April 2017, the Philippine supplier offered Ganzon $2,000 to conduct a second trip to Guam.  On May 1, 2017, Ganzon informed Joel Po Ymballa that he planned to smuggle a kilogram of methamphetamine into Guam.  Ganzon recruited Ymballa to travel with him to the Philippines to act as a lookout and assist with importing the drugs.  Ganzon and Ymballa agreed to deliver the drugs to a Guam distributor for the Philippine supplier.

On May 18, 2017, Ganzon gave Ymballa cash to purchase two round-trip tickets on Philippine Airlines, departing Guam to the Philippines on June 9, 2017, and returning to Guam on June 24, 2017.  At the Guam airport, Ganzon instructed Ymballa to carry $9,000 on his person until they landed in the Philippines.  Once in the Philippines, Ganzon paid for all travel expenses, in addition to methamphetamine that they both smoked.  Ganzon then met with the Philippine drug supplier to obtain the drugs for importation into Guam.  The drugs were wrapped in 23 cellophane bundles and concealed in nine snack boxes.  Ganzon and the Philippine drug supplier placed the snack boxes into Ymballa’s suitcase.  Ymballa’s suitcase was seized upon arrival at the airport in Guam.  The Drug Enforcement Administration Southwest Laboratory determined that the 23 bundles contained 969.5 grams of methamphetamine, with 98% purity.

“This case reveals that drugs in Guam are sourced from many locations, including overseas,” stated United States Attorney Anderson.  “Our federal and local partnerships are key to interdicting this criminal activity.  I applaud the efforts of Homeland Security Investigations in protecting our homeland from these threats.”

“Together with our federal law enforcement partners and the U.S. Attorney’s office we will continue to investigate and prosecute distributors like Ganzon who bring methamphetamine to our community,” said John F. Tobon, Special Agent in Charge, HSI Honolulu. “Dangerous drugs like meth are a global scourge and we have zero tolerance for them here.”

This investigation was led by Homeland Security Investigations, with assistance from Guam Customs and Quarantine.  It was prosecuted by Laura C. Sambataro and Rosetta L. San Nicolas, Assistant United States Attorneys in the District of Guam.

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that MICHAEL MALONE, age 38, a resident of Covington, Louisiana, was sentenced on January 10, 2023 in the United States District Court in connection with his plea of guilty to a one-count indictment charging him with Possession of a Firearm by a Convicted Felon in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). 

United States District Court Judge Greg G. Guidry sentenced MALONE to 82 months of imprisonment in the Bureau of Prisons. Following his term of imprisonment, MALONE will be placed on supervised release for a period of three years. The court did not impose a fine, but imposed a mandatory special assessment fee of $100.00.

On the night of February 3, 2022, at approximately 11:30 p.m., St. Tammany Parish deputies were on patrol on Highway 434 in Lacombe when they observed MALONE’s silver Toyota Highlander, parked in front of the 434 Mini Storage. Deputies observed an individual inside of the vehicle.  Concerned that a burglary could have been in progress, the deputies approached MALONE’s vehicle. 

Upon approaching the vehicle, deputies spoke with MALONE’s girlfriend, who told the deputies that MALONE was inside of his storage unit.  The deputies observed that a number of miscellaneous items were located outside of the unit, but that the unit’s door was closed. MALONE was not visible to the deputies. As the deputies continued to approach the unit, they heard the sound of a gun being racked.  Upon opening the door to the storage unit, the deputies observed MALONE in possession of a firearm.  Deputies located 33 firearms inside of the unit. Deputies detained MALONE. MALONE admitted to being on probation at the time of his arrest and being a convicted felon with two convictions for possession of Methylenedioxymethamphetamine (MDMA) (ecstasy), simple burglary of an inhabited dwelling, and two counts of simple burglary.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, setting focused and strategic enforcement priorities, and measuring the results.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the St. Tammany Parish Sheriff’s Office.  It is being prosecuted by Assistant United States Attorney Brittany Reed of the Violent Crime/Strike Force Unit of the U.S. Attorney’s Office.

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Shawn Michael Palacios Rosario, age 41, from Guam, was sentenced to 41 months imprisonment by the District Court of Guam.  Rosario was convicted of two counts of Felon in Possession of Firearms and Ammunition, in violation of 18 U.S.C. § 922(g)(1).  The Court also ordered three years of supervised release, 100 hours of community service, and mandatory $200 special assessment fee. 

On February 7, 2022, Guam Police Department officers saw a motorcycle being driven at a high rate of speed in Dededo, Guam.  The motorcycle was not displaying a license plate.  The rider continued speeding, attempting to evade police, before crashing into a parked vehicle.  The rider was identified as Rosario.  Officers discovered that he possessed a .380 caliber pistol and 18 rounds of ammunition.  Under federal law, Rosario was prohibited from possessing firearms or ammunition due to a prior felony conviction in the District Court of Guam.

On May 17, 2022, the U.S. Marshals Fugitive Task Force served an outstanding arrest warrant on Rosario at a residence in Dededo.  Federal law enforcement discovered that Rosario had a pouch next to him that contained a .40 caliber pistol and four rounds of ammunition.  They also found a pipe, syringe, and hypodermic needle, in addition to three grams of methamphetamine.  Under federal law, drug users are also prohibited from possessing firearms or ammunition.

“Rosario’s possession of even a single round of ammunition would have resulted in similar consequences,” stated United States Attorney Anderson.  “Felons and firearms are a dangerous combination for our communities.  We will continue to work closely with our partners to hold these criminals accountable.”

“We commend the Guam Police Department officers and the U.S. Marshals Fugitive Task Force for their work getting this felon off the streets,” said ATF Seattle Special Agent in Charge Jonathan T. McPherson. “Felons cannot possess firearms or ammunition, and Mr. Rosario compounded it by possessing illegal narcotics.  Hopefully this sentence will give him time to reflect on his actions and change his ways.”  

This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts.  PSN is an evidence-based program proven to be effective at reducing violent crime.  Through PSN, a broad spectrum of stakeholders works together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Guam Police Department conducted the investigation that resulted in the indictment.  The investigation was also facilitated by the U.S. Marshals Fugitive Task Force.  The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.

ABC Polymer Industries LLC pleaded guilty yesterday to a willful violation of an Occupational Safety and Health Administration (OSHA) standard that caused a worker’s death. The charge involves an Aug. 16, 2017, incident at the Helena, Alabama, plant owned by ABC Polymer Industries LLC, in which a worker was pulled into a cluster of unguarded moving rollers and killed. U.S. District Judge Annemarie Carney Axon for the Northern District of Alabama accepted the plea.

According to court documents, ABC Polymer operated multiple plastic extrusion lines at its facility, which molded raw materials into flat rectangular plastic sheets. The machinery pulled the sheets through a series of rollers arranged in clusters before cutting them into plastic threads or tapes, which were sold for use in various products. According to court documents filed in connection with the case, the machine at issue in the worker’s death was equipped with a “cage” or barrier guard that could be pulled down over one of the exposed sides of the rollers. OSHA standards require moving machinery such as this to be guarded while the machine is energized.

However, ABC Polymer was aware that its employees routinely raised the guard on its machines to cut tangled plastic off the rollers, thereby operating the machines without the required guarding. ABC Polymer also trained its employees to cut tangled plastic off the rollers while the rollers were in operation. ABC Polymer admitted that it knew or should have known that these practices exposed employees to a risk of injuries and death in violation of federal law.

“This victim’s tragic death was entirely preventable,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “Employers who willfully violate OSHA standards are gambling with their employees’ health and lives. We will continue to hold accountable those who fail to follow these critical safety rules.”

“This tragic loss of life could have been avoided by following federal safety standards,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “We are grateful for the work of our OSHA partners in holding employers accountable for the safety of their employees. My office will use the tools available to us to protect Alabama workers and prosecute employers who willfully violate federal safety laws.”

Federal law makes it a class B misdemeanor to willfully fail to follow an OSHA safety standard, where the failure causes the death of an employee. The class B misdemeanor is the only federal criminal charge covering such workplace safety violations. The count of conviction carries a maximum sentence of a $500,000 fine, or twice the financial gain to the defendant or twice the financial loss to another, whichever is greater, and restitution to the victim. Judge Axon scheduled sentencing for Jan. 24 where she will determine the sentence after considering the relevant statutory factors.

This case was investigated by the Occupational Safety and Health Administration of the U.S. Department of Labor.

Trial Attorneys Ethan Eddy and William Shapiro of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorneys Robert Posey and Ryan Rummage for the Northern District of Alabama are prosecuting the case.

A Utah professional tax preparer was sentenced yesterday to 37 months in prison for tax evasion, conspiring to defraud the United States and obstructing the IRS’s efforts to collect his tax debt, which exceeded $1.1 million.

According to court documents and statements made in court, Sergio Sosa, of Orem, owned and operated Sergio Central Latino, a tax preparation business. From approximately 2004 to 2020, Sosa conspired to defraud the United States by concealing his assets and income from the IRS. From 2003 through 2017, Sosa also did not timely file his own tax returns or pay the taxes he owed for these years. After the IRS audited Sosa and began efforts to collect his tax debt – which at the time amounted to more than $750,000 – he obstructed those efforts by using nominees to open business bank accounts, renaming his business and placing it in his children’s names, and making false statements to the IRS. Sosa also directed one of his children to make mortgage payments on his personal residence using funds he provided.

In addition to the term of imprisonment, U.S. District Judge David Sam ordered Sosa to serve 36 months of supervised release and to pay $1,104,737 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Trina A. Higgins for the District of Utah made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorney Ahmed Almudallal of the Tax Division and Assistant U.S. Attorney Ruth Hackford-Peer for the District of Utah prosecuted the case.

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendant Basiano B. Joysa, age 47 from Dededo, Guam was sentenced in the United States District Court of Guam to 21 months imprisonment, with credit for time served, for Unauthorized Use of Food Stamp Benefits, in violation of 7 U.S.C. § 2024(b).  The Court also ordered three years of supervised release following imprisonment, $250,000 in restitution, and a mandatory $100 special assessment fee.  In addition, defendants convicted of trafficking SNAP benefits are ineligible to receive SNAP benefits and may not participate in the program as vendors.

Basiano Joysa and Hilaria Willy owned and operated Angarap Fish Mart (“Angarap”), a small specialty seafood store in Dededo.  On October 2001, Angarap was authorized by the USDA’s Food and Nutrition Service to participate in the agency’s program known as SNAP, formerly the Food Stamp Program.  SNAP is a 100% federally funded program that provides financial aid to eligible recipients for use at authorized retail food stores.  Under the program, SNAP recipients receive electronic benefits transfer (“EBT”) authorization cards that operate as debit cards.  Each month authorized recipients are issued certain amounts of SNAP benefits that can be accessed only with their EBT cards and encrypted personal identification numbers.  Under the program, Joysa and Willy knew that SNAP benefits could not be accepted or redeemed in exchange for credit or loans, and that SNAP recipients could not be discriminated against by charging them interest.

From January 1, 2010, to December 31, 2013, Joysa and Willy acquired SNAP benefits in exchange for extending credit to SNAP recipients and payment on their credit accounts.  They also charged SNAP recipients who purchased merchandise on credit with a 1.2 percent fee for every credit transaction.  Willy previously pled guilty and will be sentenced on February 21, 2023.

“Nutritional benefits provide essential support to low-income individuals nationwide,” stated United States Attorney Anderson.  “Any unlawful fees and interest imposed by retailers diminishes the impact of this important program.  We will continue to uphold the accountability and integrity of SNAP through targeted prosecutions in our districts.”

“SNAP is taxpayer-funded and intended to help the disadvantaged,” said FBI Special Agent in Charge Steven Merrill. “The FBI, along with our partners in law enforcement, is committed to investigating the misuse or abuse of any government-funded program.”

The Federal Bureau of Investigation and the USDA- Office of Inspector General (USDA) investigated this case.  The case was prosecuted by Marivic P. David, First Assistant United States Attorney in the District of Guam.

A former Philadelphia Department of Prisons sergeant pleaded guilty in federal court in Philadelphia to a civil rights charge and falsification of records related to the use of excessive force on a detainee.

During the plea hearing, Ronald C. Granville, 42, admitted that on Oct. 6, 2020, he was ordered by a senior officer to supervise a strip-search of an individual whose initials were V.H., a pre-trial detainee housed at the Curran-Fromhold Correctional Facility (CFCF) in Philadelphia. At approximately 9:00 p.m., Granville and four correctional officers escorted V.H. to his cell to conduct the strip-search. After V.H. complied with the correctional officers’ orders and was naked, Granville and other officers physically assaulted V.H. As a result of the assault, V.H. was hospitalized with injuries to his face, ribs and scrotum, and had to undergo emergency surgery. Following the assault, the defendant and other officers submitted and helped submit false reports about the incident. The investigation into the other correctional officers’ actions is ongoing.

“This defendant is being held accountable for using excessive force and violating the Constitutional rights of a detainee under his care, custody and control,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to work with our federal, state and local partners to investigative and prosecute law enforcement officers who violate federal criminal civil rights laws.”

“A uniform and a badge do not provide a license to brutalize,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “The U.S. Attorney's Office and our partners at the FBI and DOJ’s Civil Rights Division will devote the personnel and resources necessary to ensure that excessive force cases are investigated and prosecuted to the fullest extent of the law. As law enforcement, we must maintain the highest standards of conduct to protect the integrity of our criminal justice system and the civil rights of all Americans, while recognizing with gratitude that the overwhelming majority of law enforcement officers do just that every day.”

“While those behind bars may have lost their freedom, they retain their humanity — and their civil rights,” said Special Agent in Charge Jacqueline Maguire of the FBI Philadelphia Field Office. “Battering a compliant detainee is indefensible, and the FBI is committed to seeking justice for the victims of such violence and other criminal misconduct.”

A sentencing date has been set for April 25. Granville faces up to 30 years of imprisonment and a fine of up to $500,000.

The FBI Philadelphia Field Office and the Philadelphia Department of Prisons investigated the case.

Assistant U.S. Attorneys Nancy E. Potts and Everett R. Witherell for the Eastern District of Pennsylvania and Trial Attorney Daniel E. Grunert of the Civil Rights Division’s Criminal Section are prosecuting the case.

A former sergeant with the Muncie Police Department (MPD), in Muncie, Indiana, pleaded guilty today to one count of obstruction of justice for writing a false report to cover up the excessive use of force by other MPD officers under his command.

According to court documents and statements made during the change of plea hearing, on or about Aug. 9, 2018, Joseph Krejsa, 52, responded to the scene of an arrest involving a civilian with the initials L.G. Before he arrived on the scene, other MPD officers under his supervision – including Officer Chase Winkle, the son of the then-Chief of Police – had used excessive force against L.G., resulting in serious injury to L.G.’s face. The day after the arrest, Krejsa conducted a supervisory review of the incident, during which he noted that he had watched the videos of the incident and falsely deemed those uses of force “justified.”

Several days later, on or about Aug. 13 and Aug. 14, 2018, the captain of MPD’s patrol division tasked Krejsa with conducting a more in-depth review of the officers’ uses of force during L.G.’s arrest, which was separate from the typical shift sergeant review. In response to this request, Krejsa watched the involved-officers’ body worn camera videos, which revealed what had happened during the arrest: Two officers under his supervision, Chase Winkle and Corey Posey, approached L.G. in an alley way and gave several verbal commands to L.G. – including to put his hands on his head and to get on the ground – and L.G. complied with those commands. On the ground, as Posey held both of L.G.’s hands behind his back, L.G. directed a verbal insult towards officers, and in response, Winkle, using his knee, dropped his bodyweight down onto L.G.’s neck and head area. L.G. screamed out words to the effect of, “He crushed my whole face!” and pulled his hands towards his face. Winkle then tased L.G., as other MPD officers, including Officer Jeremy Gibson, arrived to assist. Toward the end of the incident, officers secured one of L.G.’s hands in handcuffs, lifted him up to a seated position, and Gibson delivered two forceful knee strikes directly to L.G.’s face.

After reviewing the officers’ body camera videos, Krejsa knowingly authored a lengthy memorandum for MPD’s official records that contained several false statements. Specifically, Krejsa falsely implied that any force used against L.G. was justified to ensure officer safety; falsely asserted that officers used only low levels of force near the start of the incident, and escalated to higher levels of force only after less  force was ineffective; falsely stated that Winkle “kneeled on [L.G.]’s left shoulder and upper body,” when in fact Krejsa knew that Winkle had used his knee to strike L.G.’s head and neck area; and falsely implied that Winkle’s uses of force against L.G. caused only cuts to L.G.’s face, when Krejsa knew that the use of force against L.G. caused serious bodily injury to L.G. As part of his plea, Krejsa admitted that he knew, when he wrote the false report, that the inaccuracies and material omissions in his report were intended to influence any potential investigation into the incident.

Krejsa is the fourth Muncie Police Department official to plead guilty in connection with this investigation. Krejsa was one of four MPD officers who were indicted in April 2021 in a 17-count superseding indictment for their roles in using excessive force against arrestees and/or attempting to cover up the misconduct. A fifth Muncie police officer, Dalton Kurtz, previously entered a pre-indictment guilty plea on Aug. 4, 2021, to one count of misprision of felony for concealing and failing to report inappropriate use of force by Winkle during a separate incident. 

On May 13, 2022, Gibson also pleaded guilty to civil rights and obstruction charges for assaulting a different arrestee and writing a false report about the incident. On Dec. 5, 2022, Winkle pleaded guilty to eleven counts of civil rights and obstruction offenses for assaulting arrestees and writing false reports about the incidents, including the arrest of L.G. The last remaining officer is scheduled to stand trial at a later date.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Zachary A. Myers for the Southern District of Indiana, and Special Agent in Charge Herbert J. Stapleton of the FBI Indianapolis Field Office made the announcement.

The FBI Indianapolis Field Office investigated the case.

Trial Attorneys Katherine G. DeVar and Mary J. Hahn of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Peter Blackett for the Southern District of Indiana are prosecuting the case.

The Justice Department announced today that it has reached a key milestone in its settlement agreement with Meta Platforms Inc. (Meta), formerly known as Facebook Inc., requiring Meta to change its advertisement delivery system to prevent discriminatory advertising in violation of the Fair Housing Act (FHA). As required by the settlement entered on June 27, 2022, resolving a lawsuit filed in the U.S. District Court for the Southern District of New York, Meta has now built a new system to address algorithmic discrimination. Today, the parties informed the court that they have reached agreement on the system’s compliance targets. This development ensures that Meta will be subject to court oversight and regular review of its compliance with the settlement through June 27, 2026. 

“This development marks a pivotal step in the Justice Department’s efforts to hold Meta accountable for unlawful algorithmic bias and discriminatory ad delivery on its platforms,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to hold Meta accountable by ensuring the Variance Reduction System addresses and eliminates discriminatory delivery of advertisements on its platforms. Federal monitoring of Meta should send a strong signal to other tech companies that they too will be held accountable for failing to address algorithmic discrimination that runs afoul of our civil rights laws.”

“This groundbreaking resolution sets a new standard for addressing discrimination through machine learning,” said U.S. Attorney Damian Williams for the Southern District of New York. “We appreciate that Meta agreed to work with us toward a resolution of this matter and applaud Meta for taking the first steps towards addressing algorithmic bias. We hope that other companies will follow Meta’s lead in addressing discrimination in their advertising platforms. We will continue to use all of the tools at our disposal to address violations of the Fair Housing Act.”

The United States’ complaint alleged, among other things, that Meta uses algorithms in determining which Meta users receive advertisements, including housing advertisements, and that those algorithms rely, in part, on characteristics protected under the FHA. Specifically, the United States alleged that Meta feeds troves of user information into its advertisement delivery system, including information related to users’ FHA-protected characteristics such as sex and race, and uses that information in its personalization algorithms to predict which advertisement is most relevant to which user. As the complaint alleged, Meta’s delivery algorithms introduce bias when delivering advertisements, resulting in a variance along sex and estimated race/ethnicity between the set of users who are eligible to see housing advertisements based on the advertiser’s targeted audience and the set of users who actually see the advertisement. 

Pursuant to the settlement, Meta has developed a new system — the Variance Reduction System (VRS) — to reduce the variances between the eligible audiences and the actual audiences. The United States has concluded that the new system will substantially reduce the variances between the eligible and actual audiences along sex and estimated race/ethnicity in the delivery of housing advertisements. The VRS will operate on all housing advertisements across Meta platforms, and the agreement requires Meta to meet certain compliance metrics in stages. For example, by Dec. 31, for the vast majority of housing advertisements on Meta platforms, Meta will reduce variances to less than or equal to 10% for 91.7% of those advertisements for sex and less than or equal to 10% for 81.0% of those advertisements for estimated race/ethnicity. For more information on the operation of the VRS, read Meta’s technical paper.

The Justice Department and Meta have also selected an independent, third-party reviewer, Guidehouse Inc. (Guidehouse), to investigate and verify on an ongoing basis whether the VRS is meeting the compliance metrics agreed to by the parties. Under the agreement, Meta must provide Guidehouse and the United States with regular compliance reports and make available any information necessary to verify compliance with the agreed-upon metrics. The court will have ultimate authority to resolve any disputes over the information that Meta must provide.

Finally, as also required by the settlement agreement, Meta has ceased delivering housing advertisements using the Special Ad Audience tool (which delivered advertisements to users who “look like” other users), and Meta will not provide any targeting options for housing advertisers that directly describe or relate to FHA-protected characteristics.

This agreement marks the first time that Meta is subject to court oversight for its advertisement targeting and delivery system.

More information about the Civil Rights Division and the civil rights laws it enforces is available at www.justice.gov/crt. More information about the U.S. Attorney’s Office for the Southern District of New York is available at www.justice.gov/usao-sdny. Individuals who believe they have been victims of housing discrimination may submit a report to the U.S. Attorney’s Office for the Southern District of New York online at www.justice.gov/usao-sdny/civil-rights or by telephone at (212) 637-0840; may submit a report online to the Department of Justice at www.civilrights.justice.gov; or may contact the Department of Housing and Urban Development at 1-800-669-9777 or through its website at www.hud.gov. 

The Justice Department announced today that it has secured a settlement agreement with Youth UpRising, a community organization in Oakland, California, that provides youth services. The agreement resolves the department’s determination that Youth UpRising violated the Immigration and Nationality Act (INA) by discriminating against a non-U.S. citizen employee based on citizenship status and retaliating against a second employee who tried to stop the discrimination.

“Employers cannot discriminate against workers when verifying their permission to work based on their citizenship, immigration status or national origin,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Workers also should not face negative consequences when they raise concerns about such discrimination, and the Justice Department will steadfastly protect those who assert rights on behalf of themselves or others under this law.”

The department’s investigation, which was initiated based on two complaints, revealed that Youth UpRising unlawfully discriminated against a newly hired non-U.S. citizen by rejecting her valid documentation showing her permission to work, and requiring other documentation because of her citizenship. The employee was fired when she could not comply with the unnecessary document demand. The department also concluded that Youth UpRising fired a different employee in retaliation for investigating the incident and trying to stop the discrimination. Under the INA’s anti-discrimination provision, all employees have the right to choose the valid documentation they wish to present when demonstrating that they have permission to work in the United States, and to assert the rights protected under that provision without facing retaliation.

The settlement requires Youth UpRising to pay $10,360 in civil penalties – the maximum allowable in this instance. Because the former employees recovered their lost wages before the department completed its investigation, the settlement does not require any additional back pay. Under the agreement, the organization will also change its employment policies to comply with the anti-discrimination provision of the INA; train its board members and all employees who are responsible for verifying workers’ permission to work in the United States; and be subject to departmental monitoring for two years.

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 permission to work on IER’s website. Learn more about how IER protects workers’ rights in this video. For more information about protections against employment discrimination under immigration laws, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email IER@usdoj.gov; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.

View Spanish press release here.

The Department of Justice and the Department of Housing and Urban Development (HUD) announced today that they filed a Statement of Interest to explain the Fair Housing Act’s (FHA) application to algorithm-based tenant screening systems. The Statement of Interest was filed in Louis et al. v. SafeRent et al., a lawsuit currently pending in the U.S. District Court for the District of Massachusetts alleging that defendants’ use of an algorithm-based scoring system to screen tenants discriminates against Black and Hispanic rental applicants in violation of the FHA.

“Housing providers and tenant screening companies that use algorithms and data to screen tenants are not absolved from liability when their practices disproportionately deny people of color access to fair housing opportunities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This filing demonstrates the Justice Department’s commitment to ensuring that the Fair Housing Act is appropriately applied in cases involving algorithms and tenant screening software.”

“Algorithms are written by people. As such, they are susceptible to all of the biases, implicit or explicit, of the people that create them,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “As the housing industry and other professions adopt algorithms into their everyday decisions, there can be disparate impacts on certain protected communities. Stable and affordable housing provides a unique pathway to success, opportunity and safety. We must fiercely protect the rights and protections promulgated in the Fair Housing Act. Today’s filing recognizes that our 20th century civil rights laws apply to 21st century innovations.”

“Tenant screening policies are not exempt from the Fair Housing Act’s protections just because decisions are made by algorithm,” said HUD General Counsel Damon Smith. “Housing providers and tenant screening companies must ensure that all policies that exclude people from housing opportunities, whether based on algorithm or otherwise, do not have an unjustified disparate impact because of race, national origin or another protected characteristic.”  

The Louis lawsuit was filed on behalf of two plaintiffs, Mary Louis and Monica Douglas, Black rental applicants who use housing vouchers to pay part of their rent. Plaintiffs applied for rental housing but allege they were denied due to their “SafeRent Score,” a score derived from Defendant SafeRent’s algorithm-based screening software. The plaintiffs allege that SafeRent scores result in disparate impact against Black and Hispanic rental applicants because the underlying algorithm relies on certain factors that disproportionately disadvantage Black and Hispanic applicants, such as credit history and non-tenancy related debts, while failing to consider one highly-relevant factor, that the use of housing vouchers funded by HUD makes such tenants more likely to pay their rents.

The defendants have moved to dismiss the case, and the plaintiffs have opposed the defendants’ motions. Through the Statement of Interest, the department seeks to assist the court by correcting two questions of law erroneously represented in the defendants’ motions to dismiss. First, the statement sets out the appropriate standard for pleading disparate impact claims under the FHA. Second, the statement clarifies that the FHA’s text and caselaw support the FHA’s application to companies providing residential screening services. The motions to dismiss are currently pending before the court.

The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status (having one or more children under 18), nation origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. 

Individuals who believe they have been victims of housing discrimination can submit a report online at www.civilrights.justice.gov. Such individuals also may contact the U.S. Department of Housing and Urban Development at 1-800-669-9977 or file a complaint online.

El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Youth UpRising, una organización comunitaria con sede en Oakland, California, que presta servicios para jóvenes. El acuerdo resuelve la determinación del Departamento que Youth UpRising vulneró la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al discriminar a un empleado no ciudadano de los EE. UU. con base en su estatus de ciudadanía y tomar represalias contra un segundo empleado que intentó detener la discriminación.

«Los empleadores no pueden discriminar a los trabajadores a la hora de verificar su permiso para trabajar con base en su ciudadanía, estatus migratorio o nacionalidad de origen», manifestó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Los trabajadores tampoco deben enfrentar consecuencias negativas cuando plantean sus preocupaciones sobre tal discriminación, y el Departamento de Justicia protegerá firmemente a aquellos que hagan valer sus derechos en nombre propio o de otros en virtud de esta ley».

La investigación del Departamento, que se inició con base en dos quejas, reveló que Youth UpRising discriminó ilegalmente a una no ciudadana de los EE. UU. recién contratada al rechazar su documentación válida que demostraba su permiso para trabajar y requerir otra documentación, debido a su ciudadanía. La empleada fue despedida al no poder cumplir con la exigencia documental innecesaria. El Departamento también concluyó que Youth UpRising despidió a otro empleado como represalia por investigar el incidente e intentar detener la discriminación. En virtud de la disposición antidiscriminatoria de la INA, todo empleado tiene derecho a elegir la documentación válida que desea presentar para demostrar que tiene permiso para trabajar en los Estados Unidos, y a hacer valer los derechos protegidos en virtud de esa disposición sin enfrentar represalias.

Conforme al acuerdo, Youth UpRising pagará una sanción civil de $10,360 –el máximo permitido en esta instancia. Debido a que los exempleados recuperaron sus salarios perdidos antes de que el Departamento finalizara su investigación, el acuerdo no requiere ningún pago retroactivo adicional. En virtud del acuerdo, la organización también revisará sus políticas de empleo para cumplir con la disposición antidiscriminatoria de la INA; capacitará a los miembros del consejo directivo y a todos los empleados que son responsables de verificar el permiso de los trabajadores para trabajar en los Estados Unidos; y se someterá a supervisión del Departamento durante dos años.

La Sección de Derechos de Inmigrantes y Empleados 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; las prácticas documentales injustas; y las represalias y la intimidación.

Encuentre más información en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación a la hora de verificar el permiso para trabajar. Aprenda más sobre cómo la IER protege los derechos de los trabajadores en este vídeo. Para más información sobre las protecciones contra la discriminación en virtud de las leyes de inmigración, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase en un seminario en línea gratuito; envié un correo electrónico a IER@usdoj.gov; o visite los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.

View English press release here.

Four California agricultural companies and their owner have agreed to settle allegations that they violated the False Claims Act (FCA) and the Financial Institutions Reform, Recovery and Enforcement Act (FIRREA) by knowingly submitting false information in support of Paycheck Protection Program (PPP) loan applications. Mendota Land Co., Sweetwood Farm Co. LLC, Sweetwood Farm Inc., Seasholtz Co. LLC, and their owner John Seasholtz (collectively, “Seasholtz”) are alleged to have improperly inflated the employee headcount on the companies’ PPP loan applications by impermissibly including non-employee contract workers who were, in fact, employed by other, unrelated entities. The settlement resolves allegations that the inclusion of non-employees caused Seasholtz to receive approximately $1.8 million in excess PPP funds. Seasholtz previously repaid the excess PPP loan funds to the lender, thereby relieving the U.S. Small Business Administration of liability for approximately $1.8 million in loan guarantees. As a part of the settlement announced today, Seasholtz agreed to pay approximately $400,000 in damages and penalties under the FCA and approximately $200,000 in civil penalties under FIRREA.

“PPP loans were intended to provide critical relief to small businesses,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department is committed to pursuing those who knowingly obtained PPP or other COVID-19 assistance funds to which they were not entitled.”

“Paycheck Protection Program funds have helped qualified businesses throughout the Central Valley that were negatively impacted by the pandemic,” said Phillip A. Talbert for the Eastern District of California. “The U.S. Attorney’s Office invested significant time and resources in this investigation and will continue to do so to ensure that PPP funds only go to those who are eligible.”

“Providing accurate information when applying for the SBA’s vital disaster relief programs is the individual responsibility of the applicant,” said Special Agent in Charge Weston King of Small Business Administration (SBA) Office of Inspector General (OIG)’s. “This settlement demonstrates that wrongdoing will find its way into the open, and those responsible will be held accountable. I want to thank the U.S. Attorney’s office and our law enforcement partners for their support and dedication to pursuing justice in this case.”

Congress created the PPP in March 2020, as part of the Coronavirus Aid, Relief and Economic Security (CARES) Act, to provide emergency financial support to the millions of Americans suffering economic hardship due to the COVID-19 pandemic. The CARES Act authorized billions of dollars in forgivable loans to small businesses struggling to pay employees and other business expenses. When applying for PPP loans, borrowers were required to certify the truthfulness and accuracy of all information provided in their loan applications, including their number of employees and average monthly payroll.

The settlement resolved a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government’s recovery. The qui tam lawsuit was filed by Bell Hill LLC and is captioned United States ex rel. Bell Hill, LLC v. John Seasholtz, et al., No. 1:20-cv-942 (E.D. Cal.). There has been no determination regarding the amount of the recovery to be paid to Bell Hill LLC.

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Eastern District of California, with assistance from the SBA’s Office of General Counsel and the SBA Office of the Inspector General.

This matter was handled by Trial Attorney Jared S. Wiesner of the Civil Division and Assistant U.S. Attorney Emilia P. E. Morris for the Eastern District of California.

On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The task force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.

Tips and complaints from all sources about potential fraud affecting COVID-19 government relief programs can be reported by visiting the webpage of the Civil Division’s Fraud Section, which can be found here. Anyone with information about allegations of attempted fraud involving COVID-19 can also report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.

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

Two Dubai entities and several individuals were charged in an indictment unsealed in the District of Maryland recently for their roles in a multimillion-dollar scheme to export non-organic grain into the United States to be sold as certified organic.  

Hakan Agro DMCC and Hakan Organics DMCC, both based in Dubai, and Goksal Beyaz, Nuray Beyaz and Mustafa Cakiroglu, all of Turkey, were each charged with conspiracy, smuggling, and wire fraud. An initial appearance for Hakan Agro and Hakan Organics was held on Jan. 5 in the District of Maryland. 

The indictment alleges that between November 2015 and May 2017, the defendants operated a scheme where Hakan Agro, Hakan Organics and associated entities would purchase non-organic soybeans and corn from Eastern Europe before having it shipped to the United States as “organic.” This scheme allowed the defendants to charge the higher prices associated with organic grains. Organic grains often cost as much as 50% more than conventional (i.e. non-organic) grains. 

Among other misconduct, the indictment alleges: 

• In late 2015, the defendants obtained non-organic, non-GMO soybeans from Ukraine for $423 per metric ton (MT). Thereafter, the defendants arranged to have the same soybeans shipped to Baltimore, Maryland, where they were sold as “organic soybeans” for $614/MT, totaling over $4.9 million.  
• In early 2016, the defendants arranged to purchase non-organic corn for $168/MT and have it delivered to Constanta, Romania. Simultaneously, they arranged to sell the same corn from Constanta through Baltimore as “organic corn” for $247/MT. The invoices for this falsely labeled corn totaled over $3.3 million.  
• In late 2016, the defendants shipped 16,250 MT of non-organic soybeans falsely labeled as “organic” from Turkey to the United States where they were sold for over $10 million 
• In early 2017, the defendants arranged for 21,000 MT of non-organic corn to be shipped to the United States falsely labeled as organic. The invoices for the falsely-labeled corn totaled over $6.7 million.  

• In early 2017, the defendants arranged for a load of non-organic soybeans to be shipped from Turkey to Baltimore falsely labeled as “organic” soybeans.  

Wire fraud and smuggling are each punishable by a maximum penalty of 20 years in prison. Conspiracy is punishable by a maximum penalty of five years in prison. Upon conviction, a federal district court judge would determine any defendant’s sentence after considering the U.S. Sentencing Guidelines and other statutory factors.  

The U.S. Department of Agriculture, Office of Inspector General investigated this case 

Senior Trial Attorney Adam Cullman of the Environment and Natural Resources Division’s Environmental Crimes Section and Assistant U.S. Attorney LaRai Everett for the District of Maryland 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.

Former West Virginia Division of Corrections and Rehabilitation Parole Officer Anthony Demetro, 44, pleaded guilty today in federal court in the Southern District of West Virginia to violating the civil rights of a female parolee by sexually assaulting her.

During the plea hearing, Demetro admitted that on or about April 16, 2021, he used his position, authority and status as a state parole officer to force a female parolee to perform oral sex on him against her will. At the time, the parolee was participating in residential drug and alcohol treatment as a condition of her parole. Demetro admitted that he knew that the parolee did not want to have sex with him but that he coerced her into doing so anyway, for his own sexual gratification.

“This defendant’s job was to help parolees reenter society and reintegrate into their communities, but instead he abused his power and authority to sexually assault a female parolee who was seeking treatment and care in a state program,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division will continue to hold accountable those officers who breach the public trust by violating the rights of people in their custody and control at any stage of the criminal justice process.”

“The defendant abused his position of power and trust by sexually assaulting a vulnerable woman who was trying to re-enter society,” said U.S. Attorney Will Thompson for the Southern District of West Virginia. “This immoral and illegal conduct will not be tolerated in this District.  I commend the female victim who was brave enough to come forward, even though she knew she was putting her own personal freedom at risk.  I thank the FBI, the Justice Department’s Civil Rights Division and the Assistant U.S. Attorneys who investigated and prosecuted this case.”

“Protecting the civil rights of all Americans is a top priority for the FBI,” said Special Agent in Charge Mike Nordwall of the FBI Pittsburgh Field Office. “This plea should send a message that those who violate their oath of office and abuse their authority will be held accountable. The FBI will relentlessly pursue color of law violations and hold criminals like Mr. DeMetro accountable for their actions.”

With his guilty plea, the defendant faces a 15-year sentence, with a maximum of five years of supervised release, and registration as a sex offender under the Federal Sex Offender Registration and Notification Act.

A sentencing date has been set for April 20.

The FBI Pittsburgh Field Office investigated the case.

Trial Attorneys Kathryn E. Gilbert and Daniel E. Grunert of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorneys Monica Coleman and Nowles Heinrich for the Southern District of West Virginia prosecuted the case.

Two North Carolina women were sentenced to prison this week for preparing false tax returns for clients and causing them to be filed with the IRS.

According to court documents and statements made in court, from approximately 2009 through 2018 Betty Hawkins, 51, and Phyllis Ricks, 63, both of Rocky Mount, conspired with others to file false tax returns for clients of the tax preparation businesses where they worked. These returns included fictitious federal income tax withholding figures as well as other fraudulent items that generated fraudulent refunds for the clients. In total, Hawkins, Ricks and their co-conspirators caused more than 1,000 false tax returns to be filed with the IRS that claimed a total of approximately $5 million in fraudulent refunds.

Ricks was sentenced today to three years in prison and Hawkins was sentenced yesterday to two years in prison. In addition to the term of imprisonment, U.S. District Judge Terrence W. Boyle ordered both women to serve three years of supervised release and to pay approximately $5.2 million in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Michael F. Easley for the Eastern District of North Carolina made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorney Mary Frances Richardson of the Tax Division and Assistant U.S. Attorney Susan Menzer prosecuted the case.

Today, Deputy Attorney General Lisa O. Monaco, Director Christopher A. Wray, and Senators John Cornyn (TX), Joe Manchin (WV), Christopher Murphy (CT), Shelley Capito (WV) and Thom Tillis (NC) visited the Criminal Justice Information Services Division (CJIS) of the Federal Bureau of Investigation (FBI) in Clarksburg, West Virginia.

While in Clarksburg, they received a series of briefings and demonstrations on how the recent changes made to the National Instant Criminal Background Check System (NICS), following the passage of the NICS Denial Notification Act and the Bipartisan Safer Communities Act (BSCA), are protecting Americans across the country. NICS is the FBI's national system that, as required by law, conducts a background check on people in over 40 states and territories who want to purchase or possess a firearm or explosive. NICS assists 13 additional states that conduct their own checks, which often rely on data held by CJIS. 

Implemented this past September, the NICS Denial Notification Act now requires NICS to alert state and local law enforcement to background check denials, so that these authorities can decide whether to investigate or prosecute these denied individuals.

Building on that, BSCA further expanded and strengthened NICS background checks, including by enhancing checks for young adults, aged 18 to 21, to now require contacting state agencies and local law enforcement for disqualifying juvenal criminal history and mental health records. The legislation also closed the so-called “boyfriend loophole” by expanding the “misdemeanor crimes of domestic violence” prohibitor. Now, persons convicted on or after June 25, 2022, of a qualifying offense against a person with whom they are or were in a “dating relationship” will be denied their purchase of a firearm as a result of their background check.

Separately, CJIS Assistant Director Michael A. Christman and his executive staff provided the group with an overview of the National Threat Operations Center, which serves as the primary communication channel for the public to provide information pertaining to federal violations and threats to national security and operates out of CJIS. 

FRESNO, Calif. — Un gran jurado federal emitió hoy una acusación de un cargo contra Emmanuelle Padilla, de 26 años, de Fresno, acusándolo de ser un delincuente en posesión de municiones, anunció el fiscal federal Phillip A. Talbert.

Según documentos judiciales, se encontró a Padilla en posesión de municiones el 24 de octubre de 2022. Tiene antecedentes penales por posesión de sustancias controladas mientras estaba armado y por ser un delincuente en posesión de un arma de fuego y tiene prohibido poseer armas de fuego y municiones.

Este caso fue producto de una investigación del Departamento de Policía de Fresno y la Oficina Federal de Investigaciones. El fiscal federal adjunto Arin C. Heinz está procesando el caso.

Si es declarado culpable, Padilla enfrenta una pena legal máxima de 15 años de prisión y una multa de $250,000. Sin embargo, cualquier sentencia se determinaría a discreción del tribunal después de considerar cualquier factor legal aplicable y las Pautas de sentencias federales, que tienen en cuenta una serie de variables. Los cargos son solo acusaciones; el acusado se presume inocente hasta que se pruebe su culpabilidad más allá de una duda razonable.

Este caso es parte del Proyecto Vecindarios Seguros (PSN), un programa que reúne a todos los niveles de las fuerzas del orden y las comunidades a las que sirven para reducir los delitos violentos y la violencia armada, y hacer que nuestros vecindarios sean más seguros para todos. El 26 de mayo de 2021, el Departamento lanzó una estrategia de reducción de delitos violentos que fortalece a PSN con base en estos principios básicos: fomentar la confianza y la legitimidad en nuestras comunidades, apoyar a las organizaciones comunitarias que ayudan a prevenir que ocurra la violencia en primer lugar, establecer las prioridades de aplicación y la medición de los resultados.

FRESNO, Calif. — Un gran jurado federal emitió hoy una acusación de dos cargos contra Arturo Márquez, de 45 años, de Bakersfield, acusándolo de posesión de más de 50 gramos de metanfetamina con la intención de distribuir y posesión de tres armas de fuego, dijo el fiscal federal Phillip Anunció A. Talbert.

Según documentos judiciales, después de realizar un registro en la residencia de Márquez en Bakersfield, los oficiales descubrieron trece armas de fuego, grandes cantidades de municiones y aproximadamente 936 gramos de metanfetamina. Márquez tiene condenas por delitos graves por posesión previa de armas de fuego y, por lo tanto, tiene prohibido poseer armas de fuego o municiones.

Este caso fue producto de una investigación realizada por la Oficina del Sheriff del Condado de San Luis Obispo, la Patrulla de Carreteras de California y la Oficina Federal de Investigaciones. El fiscal federal adjunto Arin C. Heinz está procesando el caso.

Si es declarado culpable de posesión con la intención de distribuir metanfetamina, Márquez enfrenta una pena máxima legal de cadena perpetua y una multa de $10 millones. Este cargo también conlleva una sentencia mínima obligatoria de diez años. Si es declarado culpable de ser un delincuente en posesión de un arma de fuego, Márquez enfrenta una pena legal máxima de 15 años de prisión y una multa de $250,000. Sin embargo, cualquier sentencia se determinaría a discreción del tribunal después de considerar cualquier factor legal aplicable y las Pautas de sentencias federales, que tienen en cuenta una serie de variables. Los cargos son solo acusaciones; el acusado se presume inocente hasta que se pruebe su culpabilidad más allá de una duda razonable.

Este caso es parte del Proyecto Vecindarios Seguros (PSN), un programa que reúne a todos los niveles de las fuerzas del orden y las comunidades a las que sirven para reducir los delitos violentos y la violencia armada, y hacer que nuestros vecindarios sean más seguros para todos. El 26 de mayo de 2021, el Departamento lanzó una estrategia de reducción de delitos violentos que fortalece a PSN con base en estos principios básicos: fomentar la confianza y la legitimidad en nuestras comunidades, apoyar a las organizaciones comunitarias que ayudan a prevenir que ocurra la violencia en primer lugar, establecer las prioridades de aplicación y la medición de los resultados.

A Texas return preparer pleaded guilty to engaging in a multi-year conspiracy to prepare and file false tax returns on behalf of clients and obtaining a fraudulent loan under the Paycheck Protection Program (PPP). The proceeding was held before U.S. Magistrate Judge Jeffrey C. Manske.

According to court documents and statements made in court, between 2012 and 2017 Labanda Loyd, of Waco, managed two tax return preparation businesses and also worked as a return preparer. Loyd conspired with others at both businesses to prepare and file false returns that fraudulently claimed refunds the clients were not entitled to receive. As a manager, Loyd personally instructed some of her co-conspirators how to prepare false tax returns. For some clients, Loyd and her co-conspirators completely fabricated wage and tax withholdings. For others, they altered the wages and withholdings legitimately reported to the IRS by their employers. Loyd’s co-conspirators include Lashamekwa Alexander, Deidra Brandon, Melissa Johnson, Shaterian Parr, Jaleesia Sais, and Tevin Thompson, all of whom have pleaded guilty to the tax conspiracy or other crimes. In all, the co-conspirators caused a tax loss exceeding $1.8 million.

Loyd also pleaded guilty to wire fraud stemming from her false application in 2021 for a PPP loan. On the application, Loyd falsified her business’s actual gross income and included false documents to corroborate the fabricated income. As a result, Loyd received approximately $18,000 in PPP funds.

Loyd faces a maximum penalty of five years in prison for the conspiracy charge and twenty years in prison for wire fraud. She and her co-conspirators are all scheduled to be sentenced on March 15, 2023. A federal district court judge will determine any sentences after considering the U.S. Sentencing Guidelines and other statutory factors.

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

IRS-Criminal Investigation is investigating the case. Trial Attorneys Patrick Elwell, Matthew Hicks, and Wilson Stamm of the Tax Division are prosecuting the case.

Pennsylvania-based medical device distributor Jet Medical Inc. (Jet) agreed to pay $200,000 to resolve criminal allegations relating to a migraine headache treatment, and Jet and two related companies agreed to pay another $545,000 in a civil settlement involving the same device.

In a criminal information filed today in the Southern District of Illinois, the government alleged that between April 2014 and April 2019, Jet introduced into interstate commerce devices that were misbranded under the Federal Food, Drug and Cosmetic Act (FDCA) because Jet did not obtain approval or clearance from the FDA prior to distributing the devices. Jet’s device, the Allevio SPG Nerve Block Catheter (Allevio), was intended to treat migraine headaches by administering nerve blocks to the sphenopalatine ganglion (SPG), a collection of nerves located deep in the midface of the skull. The information alleges that Jet never sought approval or clearance from FDA to distribute the Allevio for this intended use, nor did Jet conduct an investigational study regarding the Allevio’s safety and effectiveness when used as intended.

The resolution announced today includes a deferred prosecution agreement and criminal penalties totaling $200,000. As part of the deferred prosecution agreement, which must be approved by the court, Jet admitted that it distributed misbranded devices in violation of the FDCA and agreed to implement enhanced compliance measures. The resolution also includes a civil settlement with the federal government under the False Claims Act (FCA) totaling $545,133. Along with Jet, related companies Medical Components Inc. (MedComp) and Martech Medical Products Inc. (Martech) are parties to the civil settlement.

“The FDA approval and clearance process serves an important role in ensuring that devices used to treat patients are safe, effective, and medically appropriate,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will not permit companies to circumvent that process and put profits over patient safety.”

“Medical device companies put vulnerable patients at risk when they fail to follow FDA’s standards and requirements,” said U.S. Attorney Rachelle Aud Crowe for the Southern District of Illinois. “This resolution reflects our commitment to holding companies accountable for violating the integrity of the FDA approval process and placing profits over people.”

“Doctors and their patients rely on FDA oversight to ensure that the medical devices they depend upon are safe and effective for their intended uses. Device manufacturers who circumvent the proper regulatory path in bringing their products to market endanger patients and put the public health at risk,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA Office of Criminal Investigations. “We will continue to investigate and bring to justice companies that ignore the law and jeopardize the public health.”

“This medical device distributor undermined the integrity of the FDA approval process and disregarded patient safety for personal profit,” said Special Agent in Charge Curt L. Muller of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, we will continue to investigate and hold accountable those who put the health and safety of patients at risk and waste valuable taxpayer dollars.”

The civil settlement resolves a lawsuit filed under the qui tam or whistleblower provision of the False Claims Act in the Southern District of Illinois. That lawsuit alleged that Jet, MedComp, and Martech violated the FCA by causing medical providers to submit false claims to the Medicare Program for procedures using the Allevio. The lawsuit alleged the Allevio was not approved or authorized by the FDA for use in SPG nerve blocks for the treatment of headaches, and that the procedure was not covered by Medicare. The suit alleged that Jet, MedComp, and Martech instructed, coached, and encouraged medical providers to submit improper billing codes to Medicare for reimbursement of services using the Allevio device.

The resolution of this matter illustrates the government’s emphasis on combating health care fraud. The FCA is one of the most powerful tools in this effort. 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 900-HHS-TIPS (800-447-8477).

The FDA’s Office of Criminal Investigations conducted the investigation.

Assistant U.S. Attorney Luke Weissler for the Southern District of Illinois and Trial Attorney David Hixson of the Civil Division’s Consumer Protection Branch, with assistance from the FDA’s Office of Chief Counsel, represented the government in the criminal case. Assistant U.S. Attorney Laura Barke for the Southern District of Illinois represented the government in the civil case. 

Except as to conduct admitted in connection with the deferred prosecution agreement, the claims settled by the civil agreement are allegations only and there has been no determination of civil liability.

For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Southern District of Illinois, visit https://www.justice.gov/usao-sdil.

Bladimir Moreno, 55, was sentenced for leading a federal racketeering and forced labor conspiracy that victimized Mexican H-2A agricultural workers in the United States between 2015 and 2017. U.S. District Court Judge Charlene Edward Honeywell of the Middle District of Florida sentenced Moreno to 118 months in prison with three years of supervised release and ordered him to pay over $175,000 in restitution to the victims.

Moreno, the owner of Los Villatoros Harvesting LLC (LVH), the labor contracting company that employed the workers, was charged in September 2021 and pleaded guilty earlier this year to conspiracy under the Racketeer Influenced and Corrupt Organizations Act (RICO) and conspiracy to commit forced labor. Two of Moreno’s co-defendants previously pleaded guilty to conspiracy under RICO, and a third, Guadalupe Mendes, 45, pleaded guilty to conspiring to obstruct a federal investigation. They were sentenced in October 2022. Rodas, a citizen of Mexico, who worked for LVH as a recruiter, manager and supervisor, received 41 months in prison. Gamez, a U.S. citizen, who worked for LVH as a bookkeeper, manager and supervisor, received 37 months in prison. Mendes, a U.S. citizen, who worked for LVH as a manager and supervisor, received eight months of home detention and a $5,500 fine to be paid over 24 months of supervised release.

“Human trafficking, including forced labor campaigns that exploit vulnerable workers, is unlawful, immoral and inhumane,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This defendant abused his power as a business owner to capitalize on the victims’ vulnerabilities and immigration status, luring those seeking a better quality of life with false promises of lawful work paying a fair wage. The defendant forced Mexican agricultural workers to labor under inhumane conditions, confiscated their passports, imposed exorbitant fees and debts, and threatened them with deportation or false arrest. The Department of Justice is committed to seeking justice for survivors of forced labor campaigns, holding perpetrators accountable and stripping wrongdoers of their illegal profits.”

“Forcing individuals to work against their will using abusive and coercive tactics is not only unconscionable but illegal,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our task force partners to combat human trafficking in all its forms, including prosecuting those who exploit vulnerable workers.” 

According to court documents, Moreno owned, operated and managed LVH — a farm labor contracting company that brought large numbers of temporary, seasonal Mexican workers into the United States on H-2A agricultural visas — as a criminal enterprise. Moreno compelled victims to work in Florida, Kentucky, Indiana, Georgia and North Carolina, and he engaged in a pattern of other racketeering activity that included visa fraud and fraud in foreign labor contracting, among other things. In order to facilitate the enterprise, Moreno made false statements in applications to federal agencies for the company to be granted temporary, H-2A agricultural workers. Moreno and his co-conspirators also made false promises to the Mexican farm workers themselves to encourage them to work for LVH and then charged them inflated sums to come into the United States on H-2A visas.

Once the immigrants arrived in the United States, Moreno and his co-conspirators coerced over a dozen of them into providing long hours of physically demanding agricultural labor, six to seven days a week, for de minimis pay. Moreno and his co-conspirators used various forms of coercion, including imposing debts on the workers; confiscating their passports; subjecting them to crowded, unsanitary and degrading living conditions; harboring them in the United States after their visas had expired; and threatening them with arrest and deportation if they failed to comply with Moreno’s and his co-conspirators’ demands. Later, in an attempt to conceal the criminal enterprise from federal investigators, Moreno created and provided to investigators fraudulent records that contained falsified information about the workers’ pay and hours, and repeatedly made false statements to federal investigators.

Assistant Attorney General Clarke, U.S. Attorney Handberg and Acting Special Agent in Charge DeWitt announced the sentence.

The Palm Beach County Human Trafficking Task Force, which includes the FBI, Homeland Security Investigations and the Palm Beach County Sheriff’s Office investigated the case. The Task Force received assistance from the Department of Labor Office of the Inspector General, the Department of Labor Wage and Hour Division, the Department of State Diplomatic Security Service, the Coalition of Immokalee Workers, Colorado Legal Services Migrant Farm Worker Division, Legal Aid Services of Oregon Farmworker Program and Indiana Legal Services Worker Rights and Protection Project.

Assistant U.S. Attorney Ilyssa Spergel for the Middle District of Florida and Trial Attorneys Avner Shapiro, Maryam Zhuravitsky and Matthew Thiman of the Civil Rights Division’s Criminal Section are prosecuting the case.

Anyone who has information about human trafficking should report that information to the National Human Trafficking Hotline toll-free at 1-888-373-7888, which is available 24 hours a day, seven days a week. For more information about human trafficking, please visit www.humantraffickinghotline.org. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.

In a civil complaint filed today, the Department of Justice alleges that AmerisourceBergen Corporation and two of its subsidiaries, AmerisourceBergen Drug Corporation and Integrated Commercialization Solutions, LLC (together “AmerisourceBergen”), collectively one of the country’s largest wholesale pharmaceutical distributors, violated federal law in connection with the distribution of controlled substances to pharmacies and other customers across the country, contributing to the prescription opioid epidemic.

The complaint alleges that this unlawful conduct resulted in at least hundreds of thousands of violations of the Controlled Substances Act (CSA). The Justice Department seeks civil penalties and injunctive relief.

“The Department of Justice is committed to holding accountable those who fueled the opioid crisis by flouting the law,” said Associate Attorney General Vanita Gupta. “Companies distributing opioids are required to report suspicious orders to federal law enforcement. Our complaint alleges that AmerisourceBergen — which sold billions of units of prescription opioids over the past decade — repeatedly failed to comply with that requirement.”

“AmerisourceBergen, one of the largest wholesale distributors of opioids in the world, had a legal obligation to report suspicious orders to the Drug Enforcement Administration (DEA), and our complaint alleges that the company’s repeated and systemic failure to fulfill this simple obligation helped ignite an opioid epidemic that has resulted in hundreds of thousands of deaths over the past decade,” said DEA Administrator Anne Milgram. “The men and women of the DEA will stop at nothing to hold accountable registrants that fail to uphold their responsibility of saving American lives by filing suspicious order reports.”

Pharmaceutical distributors that sell controlled substances, including AmerisourceBergen, have a longstanding legal obligation to monitor the orders that they receive from pharmacies and other customers and must inform the DEA each and every time they receive a suspicious order.

The complaint filed in the U.S. District Court for the Eastern District of Pennsylvania alleges that over the course of nearly a decade, from 2014 through the present, AmerisourceBergen violated the CSA by failing to report at least hundreds of thousands of suspicious orders of controlled substances to the DEA as required by law. The alleged unlawful conduct includes filling and failing to report numerous orders from pharmacies that AmerisourceBergen knew were likely facilitating diversion of prescription opioids. Today’s filing is the result of a multi-year investigation by the DEA, the Civil Division’s Consumer Protection Branch and several U.S. Attorneys’ Offices.

“For years, AmerisourceBergen put its profits from opioid sales over the safety of Americans,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “According to the complaint, this was part of a brazen, blatant and systemic failure by one of the largest companies in America to comply with its obligations to report suspicious opioid orders, contributing to the epidemic of opioid abuse throughout this country.”

“Companies like AmerisourceBergen that sell controlled substances across the country have a significant responsibility to ensure that their product is handled appropriately and that they comply with their federal legal obligations,” said U.S. Attorney Jacqueline C. Romero for the Eastern District of Pennsylvania. “The allegations against AmerisourceBergen are disturbing, especially for a company that is headquartered only a few miles from neighborhoods in Philadelphia devastated by the opioid epidemic.”

“When drug distributors like AmerisourceBergen fail to alert the DEA of suspicious orders of prescription drugs by pharmacies, they shirk a key obligation in dealing with addictive drugs that can end lives,” said U.S. Attorney Cole Finegan for the District of Colorado. “This complaint makes clear that the Department of Justice will continue to hold accountable corporations that disregard the public’s safety for their own profit.”

“We allege that AmerisourceBergen, a wholesale drug distributor, flagrantly and repeatedly violated its obligation to notify DEA of suspicious orders for controlled substances, which directly contributed to the epidemic of prescription opioid abuse across the United States,” said U.S.  Attorney Breon Peace for the Eastern District of New York.

The government’s complaint specifies several pharmacies for which AmerisourceBergen allegedly was aware of significant “red flags” suggesting the existence of diversion of prescription drugs to illicit markets. The complaint asserts that AmerisourceBergen nevertheless continued to distribute drugs to the pharmacies for years and reported few suspicious orders to the DEA. The five examples include: two pharmacies, one in Florida and one in West Virginia, for which AmerisourceBergen knew the drugs it distributed were likely being sold in parking lots for cash; a New Jersey pharmacy that has pleaded guilty to unlawfully selling controlled substances; another New Jersey pharmacy whose pharmacist-in-charge has been indicted for drug diversion; and a Colorado pharmacy that AmerisourceBergen knew was its largest purchaser of oxycodone 30mg tablets in all of Colorado. The government further alleges that for this Colorado pharmacy, AmerisourceBergen specifically identified eleven patients as potential “drug addicts” whose prescriptions likely were illegitimate. Two of those patients subsequently died of overdoses.

The complaint further alleges that AmerisourceBergen not only ignored red flags of diversion, but also relied on internal systems to monitor and identify suspicious orders that were deeply inadequate, both in design and implementation. These systems allegedly flagged only a tiny fraction of suspicious orders, thereby enabling diversion and AmerisourceBergen’s failure to report orders it was legally obligated to identify to the DEA. In fact, the complaint asserts that in the midst of the opioid epidemic, AmerisourceBergen intentionally altered its internal systems in a way that reduced the number of controlled substances reported as suspicious. Even for the small percentage of orders that AmerisourceBergen did identify as suspicious, the company routinely failed to report them to the DEA.

The government’s complaint alleges that for years AmerisourceBergen flouted its legal obligations and prioritized profits over the well-being of Americans.

If AmerisourceBergen is found liable, it could face escalating civil penalties depending on when each violation occurred and the type of controlled substance at issue, specifically, up to $10,000 for each reporting violation before November 2015, up to $16,864 for each violation between November 2015 and October 2018 and for each violation relating to a suspicious order for a non-opioid controlled substance not reported after October 2018, and up to $109,374 for each violation relating to a suspicious opioid order not reported after October 2018, potentially totaling billions of dollars in penalties. The court also may award injunctive relief to prevent AmerisourceBergen from committing future CSA violations.

The United States is represented in the filed action by Trial Attorneys Michael Wadden, Amy DeLine and Deborah Sohn of the Justice Department’s Civil Division’s Consumer Protection Branch, Assistant U.S. Attorneys Hayden M. Brockett and Jordann R. Conaboy for the District of New Jersey, Assistant U.S. Attorneys Anthony D. Scicchitano and Landon Jones for the Eastern District of Pennsylvania, Assistant U.S. Attorneys Amanda Rocque and David Moskowitz for the District of Colorado, and Assistant U.S. Attorneys Elliot M. Schachner and Diane Leonardo for the Eastern District of New York. The DEA collaborated with the Civil Division’s Consumer Protection and the U.S. Attorneys’ Offices to investigate the case.

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

The claims made in the complaint are allegations that, if the case were to proceed to trial, the government must prove by a preponderance of the evidence.

A federal court in the Eastern District of Michigan has permanently enjoined two Detroit, Michigan-area tax return preparers and their Detroit-based business from preparing returns for others and from owning or operating any tax return preparation business in the future.

The civil complaint filed in the case alleged that Latavia Garrett, Latrina Hall, and their tax return preparation company, Detroit Tax Solution LLC, prepared fraudulent federal income tax returns. According to the complaint, defendants filed fraudulent federal tax returns that included the following schemes: reporting false income and expenses from fictious businesses; falsely claiming eligibility for child tax credits and education credits; falsely claiming dependents to increase the amount of earned income tax credits; utilizing falsely-reported prior year earned income to make customers eligible for tax credits; underreporting wage income; and, as to defendant Hall, often acting as a “ghost preparer” – that is, failing to sign the tax returns she prepared and failing to identify herself in any way on the returns. As alleged in the complaint, the IRS has conservatively estimated that defendants’ fraudulent return preparation activities have caused a combined loss to the United States for tax years 2019 and 2020 exceeding $1.2 million.

According to the court’s order, defendants consented to entry of the injunction, which permits the United States to conduct post-judgment discovery to monitor compliance. The order requires that defendants (1) send notice of the injunction to each person for whom they and their company prepared federal tax returns, amended tax returns, or claims for refund after January 1, 2019, and (2) post an electronic copy of the injunction on any business social media profile currently maintained or created over the next five years.

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

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

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

Zyno Medical LLC (Zyno), a medical device manufacturer headquartered in Massachusetts, has agreed to pay $493,140 to resolve allegations that it violated the False Claims Act by causing the submission of claims to Medicare in connection with the intravenous (IV) administration of medication using devices Zyno knew were materially defective. 

The settlement announced today resolves allegations that Zyno knowingly distributed defective IV administration sets that were used to deliver controlled dosages of chemotherapy and other medications to Medicare beneficiaries. As part of the settlement, Zyno has admitted that it knew as early as Nov. 5, 2015 that certain of its administration sets, sold for use with its Z-800 series of IV infusion pumps, were defective and that the defect caused leaks during the infusion of medication.  Zyno has further admitted that it did not institute a recall of the defective administration sets until July 29, 2016 and, in fact, continued to sell additional affected administration sets into commerce for a period of time.

“Medicare patients who need chemotherapy or other medication administered intravenously should not have to worry about whether the devices used for their treatment will deliver the intended dosage,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “We will pursue appropriate relief when health care providers, including medical device manufacturers, knowingly put the safety and welfare of federal healthcare program beneficiaries at risk.”  

“Medical device manufacturers who knowingly sell materially defective products undermine the integrity of federal health care programs,” said Special Agent in Charge Phillip M. Coyne of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will continue to work with concerned citizens, the Department of Justice, and our investigative partners to ensure the federal government only pays for honest, high quality health care products and services.” 

The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by John Bertucci, a former Territory Manager for Zyno, and Lowell Warner, Zyno’s former Vice President of Sales. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.  The qui tam case is captioned U.S. ex rel. Bertucci, et al. v. Zyno Medical LLC, et al., No. 20-cv-10388-WGY (D. Mass.).  As part of today’s resolution, the whistleblowers will receive approximately $100,000.   

The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Massachusetts, with assistance from the Department of Health and Human Services, Office of Inspector General and the FBI Boston Field Office.

The investigation and resolution 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 800-HHS-TIPS (800-447-8477).

The matter was handled by Trial Attorney Joanna G. Persio of the Civil Division and Assistant U.S. Attorney Charles B. Weinograd of the District of Massachusetts.   

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

The Justice Department announced today that it has secured a settlement agreement with Walter J. Willoughby Jr., M.D., Ltd. (Willoughby Ltd.), a medical practice located in Las Vegas, Nevada. The settlement resolves the department’s determination that Willoughby Ltd. violated the Immigration and Nationality Act (INA) by terminating a longstanding employee based on her Mexican-American national origin.  

“Firing an employee because of her national origin runs counter to our nation’s ideals,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “All workers have a right to be treated fairly by their employers. The Civil Rights Division is committed to addressing unlawful discrimination in all types of workplaces.”

The department’s investigation determined that Willoughby Ltd. unlawfully fired a high-performing Mexican-American employee based on her coworkers’ discriminatory bias. Specifically, after subjecting the employee to months of derogatory comments and jokes based on her Mexican heritage, the coworkers fabricated a false accusation against the employee that played into national origin stereotypes to oust her from the workplace. In March 2020, the medical practice credited the coworkers’ accusations without investigating them and agreed to terminate the employee on that basis. The INA’s anti-discrimination provision prohibits employers with four to fourteen employees from terminating workers based on their national origin. Employers with fifteen or more employees are prohibited from engaging in such discrimination by Title VII of the Civil Rights Act of 1964.

Under the settlement, Willoughby Ltd. will pay a civil penalty to the United States and $42,500 to the affected worker. Willoughby Ltd. also must train its employees on the INA’s anti-discrimination requirements, revise its employment policies, and be subject to departmental monitoring and reporting requirements. 

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

Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid unlawful discrimination on IER’s website. 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 free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.

WASHINGTON – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con Walter J. Willoughby Jr., M.D., Ltd. («Willoughby Ltd.»), un consultorio médico, cuya sede se encuentra en Las Vegas, Nevada. El acuerdo resuelve la determinación del Departamento que Willoughby Ltd. vulneró la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés) al despedir a una empleada con un vínculo laboral prolongado con base en su nacionalidad de origen mexicana-estadounidense.

«El despedir a una empleada a base de su nacionalidad de origen va en contra de los ideales de nuestra nación», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Todos los trabajadores tienen el derecho de recibir un trato justo por parte de sus empleadores. La División de Derechos Civiles está comprometida a abordar la discriminación ilegal en todo tipo de lugar de trabajo».

La investigación del Departamento determinó que Willoughby Ltd. despidió ilegalmente a una empleada mexicana-estadounidense de alto desempeño con base en el prejuicio discriminatorio de sus colegas. Específicamente, después de que durante varios meses los colegas de la empleada la sometieran a comentarios y bromas derogatorios a base de su herencia mexicana, ellos inventaron una acusación falsa en contra de la empleada que invocaba los estereotipos de nacionalidad de origen para expulsarla del lugar de trabajo. En marzo de 2020, el consultorio médico avaló las acusaciones hechas por los colegas sin investigarlas, y con base en ellas decidió despedir a la empleada. La disposición antidiscriminatoria de la INA prohíbe que los empleadores que tienen de cuatro a catorce empleados despidan a empleados a base de su nacionalidad de origen. A los empleadores con quince empleados o más se les prohíbe incurrir en dicha discriminación conforme al Título VII de la Ley de Derechos Civiles de 1964.

Conforme al acuerdo, Willoughby Ltd. pagará una sanción civil a los Estados Unidos y le pagará $42,500 a la empleada afectada. Asimismo, el acuerdo requiere que Willoughby, Ltd. capacite a sus empleados en cuanto a los requisitos antidiscriminatorios de la INA, que revise sus políticas de empleo y que se someta a los requisitos de supervisión y declaración del Departamento.

La Sección de Derechos de Inmigrantes y Empleados de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe la discriminación con base en el estatus de ciudadanía y la nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas; las represalias o la intimidación.

Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Aprenda más sobre cómo los empleadores pueden evitar la discriminación por motivos de estatus de ciudadanía en el sitio web de la IER. Aquellos aspirantes o empleados que creen haber sido discriminados por motivos de su estatus migratorio, ciudadanía 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 visitar los sitios web de la IER en inglés o español. Para recibir las últimas noticias de la IER, inscríbase a GovDelivery.

St. Croix, VI – United States Attorney Delia L. Smith announced today that Augusto Rodriguez-Molina, 37, of the Dominican Republic, pleaded guilty before U.S. Magistrate Judge Emile A. Henderson, III on December 22, 2022, to conspiracy to possess with intent to distribute cocaine while on board a vessel subject to the jurisdiction of the United States.

According to court documents, on January 9, 2022, Customs and Border Protection Air and Marine agents detected a vessel with bales of suspected cocaine in plain view on the deck of the vessel. The vessel was traveling on the northeast side of St. Croix heading north towards the British Virgin Islands. Upon further investigation, agents encountered a 32-foot Manta low-profile vessel with twin 300 HP outboard engines located at approximately 19 nautical miles northeast of St. Croix in international waters in an area known by law enforcement for drug trafficking. The vessel was dead in the water and displayed no indicia of nationality, flag nor registration and was determined to be a vessel without nationality, thus subject to the jurisdiction of the United States. Onboard the vessel, agents discovered four occupants later identified as Rodriguez-Molina, Shannon John, Sean John and Emmanuel Tolentino-Lebron, along with 21 bales wrapped in plastic and encased in rope. Drug Enforcement Administration laboratory analysis later confirmed that the bales recovered from the vessel contained approximately 567 kilograms of cocaine hydrochloride. Defendants Sean John, Shannon John and Tolentino-Lebron all pleaded guilty to the cocaine conspiracy charge. At sentencing, the defendants face a mandatory minimum sentence of 10 years in prison. A federal District Court judge will determine their sentence after considering the U.S. Sentencing Guidelines and other factors.

This case was investigated by the United States Coast Guard, Homeland Security Investigation, Customs and Border Protection and Drug Enforcement Administration and is being prosecuted by Assistant United States Attorney Melissa P. Ortiz. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.