District Not Recorded

A jury in the District of Columbia found former D.C. Metro Transit Police Officer Andra Vance, 48, guilty today of a civil rights violation for his unlawful beating of an unarmed transit rider with a metal baton without legal justification on Feb. 16, 2018.

In 2019, a federal grand jury in the District of Columbia returned a two-count indictment alleging that Vance violated the civil rights of a victim identified in court documents as “D.C.” D.C.’s civil rights by striking and then choking D.C. with a metal baton. Vance was found guilty of one count of deprivation of rights involving the beating and acquitted of the second charge alleging the choking.  

During the week-long trial, the government introduced evidence that the victim, D.C., attempted to use an invalid Metro card to board a train at the Anacostia Metro station. When the card was confiscated by Metro Transit personnel, D.C. became angry. As D.C. complained to Vance, Vance used his metal baton to hit D.C. in the head. As D.C. fled, Vance chased D.C. from the Metro station and continued striking D.C. in the head and neck area. D.C. fell to the ground and Vance climbed on top of D.C., put the metal baton to his neck, and pressed down as D.C. bled onto the sidewalk below. A fellow officer helped to handcuff D.C. and was present when medical personnel responded to treat D.C. for his injuries. At least one fellow officer who witnessed the assault testified that D.C. was not a threat to Vance or anyone else at the Anacostia Metro station.

“People in the District of Columbia have the right to be free from excessive force at the hands of law enforcement, and that includes transit officers working for the D.C. Metro,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department will continue to aggressively prosecute any law enforcement officer who willfully violates the civil rights of our community members.”

“As members of law enforcement, it is our sworn duty to uphold the law,” said Matthew M. Graves, U.S. Attorney for the District of Columbia. “A crime like this betrays that duty and the badge with which the defendant was entrusted. When officers violate the civil rights of District citizens through unreasonable and unjustified violence, we will hold them accountable.”

“Our commitment to transparency is key in our efforts to support and build trust with the communities we serve,” said Chief Michael Anzallo of the Metro Transit Police Department. “We value our partner agencies and appreciate the opportunity to hold this former officer accountable for his actions.”

Sentencing has been set for March 10, 2023. Vance faces a maximum statutory penalty of 10 years in prison and a fine up to $250,000.

Assistant Attorney General Clarke, U.S. Attorney Graves and Chief Anzallo made the announcement.

Trial Attorney Maura White of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Gauri Gopal for the U.S. Attorney’s Office for the District of Columbia prosecuted the case.

A superseding indictment was returned by a federal grand jury in Dallas today charging a Texas lawyer and three co-conspirators with wire fraud, conspiracy to commit wire fraud, helping their clients file false tax returns, and conspiracy to defraud the United States, all based on an illegal tax shelter they promoted and helped implement. Joseph Garza, of Dallas, was previously charged on Oct. 18. The superseding indictment adds charges against three tax professionals, Kevin McDonnell, James Richardson and Craig Fenton.

According to the original indictment, from approximately 2012 to 2021 Garza promoted a tax shelter that allowed high-income clients to claim fraudulent tax deductions that reduced the taxes they owed to the IRS. Garza and his co-conspirators allegedly directed the clients to transfer funds into shell companies, then returned this money to the clients, untaxed, for their personal use. To conceal the circular flow of funds, Garza and the co-conspirators allegedly commissioned fictitious business valuation reports, created invoices for fake business expenses, and drafted sham contractual agreements.

The superseding indictment alleges that Garza directed clients to use hand-picked CPAs and other tax professionals, including McDonnell, Richardson and Fenton. McDonnell and Richardson, both CPAs, allegedly owned and operated McDonnell Richardson, P.C., an accounting, tax preparation, and legal services business located in Waxahachie. McDonnell allegedly is also a licensed attorney. Fenton allegedly was employed as a tax manager at McDonnell Richardson.

McDonnell, Richardson and Fenton allegedly helped Garza run the illegal tax shelter by preparing and filing fraudulent tax returns for the high-income clients and the shell companies, among other entities. The scheme allegedly allowed clients to conceal $1 billion from the IRS and caused a total tax loss exceeding $200 million.

McDonnell, Richardson and Fenton will all make their initial appearances at a later date before a U.S. Magistrate Judge of the U.S. District Court for the Northern District of Texas. If convicted, all four men face a maximum penalty of 20 years in prison for each count of wire fraud, 20 years in prison for conspiracy to commit wire fraud, three years in prison for each count of aiding and assisting in the filing of false tax returns, and five years for conspiracy to defraud the United States. 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 M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Chad E. Meacham for the Northern District of Texas made the announcement.

IRS Criminal Investigations and the FBI are investigating the case.

Assistant U.S. Attorneys Renee Hunter, Katherine Miller and Marty Basu and trial attorney Robert A. Kemins of the Tax Division are prosecuting the case.

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

The Justice Department announced today that the Procurement Collusion Strike Force (PCSF) welcomed four new national law enforcement partners to the Strike Force, for a total of 34 agencies and offices committed to deterring, detecting, investigating and prosecuting antitrust crimes and related schemes that target government procurement, grants and program funding at all levels of government.

The four entities joining the PCSF are the Offices of Inspector General for the United States Department of Energy, Department of the Interior, Department of Transportation and Environmental Protection Agency. Together, these offices are responsible for overseeing hundreds of billions of dollars in authorized funding that will be distributed to federal, state and local government agencies through the Infrastructure Investment and Jobs Act, the Inflation Reduction Act of 2022 and the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act of 2022. The offices have proven to be invaluable partners through their track records of working with the PCSF and the Justice Department’s Antitrust Division.  

“Recent legislation will finance billions of dollars for government procurements and grants,” Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division said upon announcing the new partners in Washington, D.C. “Expanding the PCSF’s national partnership to include these critical offices will better position the PCSF to protect taxpayer dollars and combat collusion in government spending.”

“The priority at Department of Energy’s Office of Inspector General is always to protect the American taxpayer’s investment,” said Inspector General Teri L. Donaldson for the Department of Energy. “Recent legislation established over fifty new programs, along with providing increased funding to existing programs at the Department of Energy. We must take all steps necessary to detect and deter fraud within the Department’s complex and the government. I am proud to be a national partner of the Procurement Collusion Strike Force and to work alongside DOJ and its other partners in this effort. I’d like to thank Assistant Attorney General Kanter for bringing us all together and providing this opportunity.”

“Rooting out waste, fraud, and abuse in government spending is at the core of our mission,” said Inspector General Mark Lee Greenblatt for the Department of Interior. “The Department of the Interior Office of Inspector General looks forward to partnering with the Department of Justice’s Antitrust Division and our law enforcement colleagues on the Strike Force to protect American taxpayers.”

“Those who cheat and collude in procurement place transportation safety at risk and deprive taxpayers of the transportation infrastructure to which they are entitled,” said Inspector General Eric J. Soskin for the Department of Transportation. “By joining this strike force, the DOT Office of Inspector General looks forward to leveraging partnerships with our fellow law enforcement community members to prevent and detect fraud, waste, and abuse in Federal contracting and to holding wrongdoers accountable.”

“The Environmental Protection Agency Office of Inspector General is pleased to join our law enforcement colleagues as part of the Procurement Collusion Strike Force,” said Inspector General Sean O’Donnell for the Environmental Protection Agency. “We look forward to partnering with others who share our commitment to investigating and combating antitrust and public procurement crimes.”

In November 2019, the Department of Justice created the 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 opened a pattern or practice investigation into the Worcester Police Department (WPD). This civil investigation will assess whether WPD engages in a pattern or practice of excessive force or engages in discriminatory policing based on race or sex. The investigation will include a comprehensive review of policies, procedures, trainings, investigatory files and data. The investigation will also include a review of WPD’s systems of accountability, including its systems to address misconduct complaints and discipline. The department will also evaluate how WPD officers interact with the public, collect evidence and complete investigations.

“Based on information provided to the Justice Department, we find significant justification to investigate whether the Worcester Police Department engages in a pattern or practice of racially discriminatory and gender-biased policing, and uses excessive force,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Ensuring that our law enforcement officers act in a constitutional and non-discriminatory manner is among the highest priorities of the Department of Justice. Our pattern or practice investigations are a key tool in our efforts to ensure community safety and promote constitutional policing across the country. We look forward to working with officials towards the shared goals of ensuring constitutional, effective policing and fostering greater trust between law enforcement officers and the community members they serve.”

“The City of Worcester is a thriving and vital part of our district and we work closely every day with its Police Department,” said  U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “WPD officers have a challenging job of ensuring the safety of the Worcester community. This often means responding to or encountering tense and at times dangerous conflicts and situations. I am well aware that the overwhelming majority of officers serve and do their jobs with honor, pride, restraint and distinction. The purpose of this civil investigation is to determine – through objective and thorough examination – whether or not there is an overall pattern or practice of conduct that violates the Constitution or federal law. This is the beginning of the process. We will go where the facts take us. You will hear from me at the end of the investigation, irrespective of outcome. Our ultimate goal is to ensure that policing in Worcester is constitutional, safe, and effective all while the civil rights of their residents remain intact. We thank the City of Worcester, and specifically Chief Sargent, for their cooperation and collaboration in this matter.”

The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The statute allows the department to remedy such misconduct through civil litigation. The Justice Department will be assessing law enforcement practices under the Fourth and Fourteenth Amendments to the U.S. Constitution, as well as under the Safe Streets Act of 1968 and Title VI of the Civil Rights Act of 1964.

This is the second investigation of a Massachusetts law enforcement agency conducted pursuant to this statute. In 2018, the Justice Department opened an investigation of the Springfield Police Department, which was resolved by a consent decree in 2022.

Prior to this announcement, department officials informed Worcester Mayor Joseph Petty, Worcester Acting City Manager Eric Batista and Worcester Police Chief Steven Sargent of the investigation. They pledged to cooperate with the investigation. As part of this investigation, the department officials will reach out to community groups and members of the public to learn about their experiences with WPD.

The Special Litigation Section of the Department of Justice Civil Rights Division and the U.S. Attorney’s Office for the District of Massachusetts will jointly conduct this investigation. Individuals with relevant information are encouraged to contact the Department of Justice via email at community.wpd@usdoj.gov or by toll free phone at 888-221-6023. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s reporting portal, available at https://civilrights.justice.gov/.  

Information specific to the Civil Rights Division’s Police Reform Work can be found here: /media/872116/dl?inline. 

The Department of Justice and the Environmental Protection Agency (EPA) today announced settlements with four separate solar farm owners to resolve alleged violations of the Clean Water Act. The alleged violations were construction permit violations and stormwater mismanagement at large-scale solar generating facilities: a site near LaFayette, Alabama, owned by AL Solar A LLC (AL Solar); a site near American Falls, Idaho, owned by American Falls Solar LLC (American Falls); a site in Perry County, Illinois, owned by Prairie State Solar LLC (Prairie State); and a site in White County, Illinois, owned by Big River Solar LLC (Big River). The states of Alabama and Illinois joined in the Alabama and Illinois settlements.

These four solar farm owners are all subsidiaries of large international finance and investment companies, and all four used a common construction contractor for the development of their solar farms. Together, the four settlements with these defendants secure a total of $1.34 million in civil penalties and ensure that remaining construction will take place in compliance with Clean Water Act stormwater permits. The settlements resolved claims alleged in four separate complaints the government also filed today.

“While the development of renewable energy holds great promise for combatting climate change, the solar energy industry must comply with the Clean Water Act,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The proposed settlements demonstrate the Department of Justice’s commitment to require those developing these facilities, including the site owners, to comply with the law, or be held accountable for construction practices that put our waterways at risk.”  

“The development of solar energy is a key component of this Administration’s efforts to combat climate change,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “These settlements send an important message to the site owners of solar farm projects that these facilities must be planned and built in compliance with all environmental laws, including those that prevent the discharge of sediment into local waters during construction.”

Solar farm construction involves clearing and grading large sections of land, which can lead to significant erosion and major runoff of sediment into waterways if stormwater controls at the site are inadequate. Increased sediment in waterways can injure, suffocate or kill aquatic life; damage aquatic ecosystems; and cause significant harm to drinking water treatment systems. To avoid these harms to the environment and public health, parties responsible for construction of solar farms are required to get construction stormwater permits under the Clean Water Act and comply with the terms of those permits. Each of the complaints filed today allege that the owners of these four sites violated their construction stormwater permits in similar ways: failing to design, install, and maintain proper stormwater controls; failing to conduct regular site inspections; failing to employ qualified personnel to conduct inspections; and failing to accurately report and address stormwater issues at the site. The complaints filed against AL Solar and American Falls Solar also allege unauthorized discharges of excess sediment from their construction sites to nearby waterways.

Construction at the Idaho and Alabama sites is now complete and permit coverage has been terminated. Therefore, these settlements only include civil penalties. The United States and the Alabama Department of Environmental Management (ADEM) filed a stipulation of settlement with AL Solar in the U.S. District Court for the Middle District of Alabama along with its complaint. Under that settlement, AL Solar will pay a $250,000 civil penalty to the United States and a $250,000 civil penalty to ADEM. A second stipulation of settlement involving American Falls was filed in the U.S. District Court for the District of Idaho. Under that settlement, American Falls will pay a civil penalty of $416,500 to the United States. 

In addition, consent decrees with Prairie State and Big River were filed by the United States and the State of Illinois. Because both Illinois sites remain subject to Clean Water Act permits, these two settlements require the owners to ensure compliance with those permits until construction at the sites is complete and the United States and State agree that permit coverage can be terminated. In addition, Prairie State will pay a civil penalty of $157,500 to the United States and $67,500 to the state of Illinois, and Big River will pay a civil penalty of $122,500 to the United States and $52,500 to the state of Illinois. The consent decrees were lodged with the U.S. District Court for the Southern District of Illinois and are subject to a 30-day public comment period and final court approval.

The consent decrees can be viewed at the Department of Justice website here.

A federal grand jury in Topeka, Kansas, returned a three-count indictment, unsealed today, charging former Kansas City Police Department detective Roger Golubski and three other men – Cecil Brooks, LeMark Roberson and Richard Robinson – with conspiring, decades ago, to hold young women in a condition of involuntary sexual servitude. Brooks, Roberson and Robinson are also charged in a substantive count with holding a young woman, identified as Person 1, in a condition of involuntary servitude; and Brooks, Roberson and Golubski are charged in a substantive count with holding another young woman, Person 2, in a condition of involuntary servitude.

According to the indictment, from 1996 through 1998, Brooks provided a location at Delevan Apartments in Kansas City, where young women were held and where Brooks, Roberson and Robinson used physical beatings, sexual assaults and threats to compel young women to provide sexual services to men. Then detective Golubski is alleged to have accepted money from Brooks; provided protection from law enforcement for the criminal activity, including sex trafficking; and forcibly raped the young woman identified as Person 2.

The first count of the indictment charges all four men with conspiring to hold young women, including Person 1 and Person 2, in a condition of involuntary servitude; the second count  charges Brooks, Roberson, and Robinson with holding Person 1 in involuntary servitude and forcing her to provide sexual services to Roberson; and the third count charges Brooks, Roberson and Golubski with holding Person 2 in involuntary servitude and forcing her to provide sexual services to adult men, including Brooks, Roberson and Golubski.

If convicted, each defendant faces a maximum sentence of life in prison.

Golubski was previously charged, in a separate indictment with civil rights violations for allegedly acting under color of law to commit aggravated sexual assaults.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Duston Slinkard for the District of Kansas and Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office made the announcement.

The FBI Kansas City Field Office investigated the case in conjunction with the Kansas Bureau of Investigation. Assistant U.S. Attorney Stephen Hunting for  the District of Kansas and Trial Attorney Tara Allison of the Justice Department’s Civil Rights Division are prosecuting the case.

This investigation is ongoing. Anyone with additional information is encouraged to call the FBI at 1-800-CALL-FBI.

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

The Florida Birth-Related Neurological Injury Compensation Plan and its administrator, the Florida Birth-Related Neurological Injury Compensation Association (collectively, “NICA”), have agreed to pay $51 million to resolve allegations that they violated the False Claims Act by causing NICA participants to submit their healthcare claims to Medicaid rather than NICA, in violation of Medicaid’s status as the payer of last resort under federal law.

The civil settlement resolves a lawsuit filed and pursued by Veronica N. Arven and the estate of Theodore Arven III against NICA under the qui tam or whistleblower provisions of the False Claims Act, which permit a private party (known as a relator) to file a lawsuit on behalf of the United States and receive a portion of any recovery. Although the United States did not intervene in this case, it continued to investigate the whistleblowers’ allegations, provided substantial assistance to the whistleblowers in defending against a motion to dismiss, and negotiated the settlement announced today. The Arvens will receive $12,750,000 as their share of the recovery in this case.

“Health care plans may not shift the payment of claims to federally funded programs like Medicaid,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Today’s settlement demonstrates our continuing commitment to ensuring that federal health care dollars are spent appropriately.” 

“The Medicaid program provides a safety net for our most vulnerable populations that do not have access to traditional healthcare coverage,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “My office is dedicated to protecting critical government healthcare programs, like Medicaid, that serve the elderly and disabled. The misuse of Medicaid funds will not be tolerated.”

“When Medicaid is improperly billed for services that should be covered by other funding sources, the integrity of this safety net program is undermined,” said Special Agent in Charge Omar Pérez Aybar of the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG will continue to investigate such schemes to protect federal health care programs and those served by them.”

The Florida Legislature established NICA in 1988 as an alternative to the traditional tort system. NICA was intended to provide compensation, on a no-fault basis, for the medical, rehabilitative and custodial care of children who suffered certain categories of birth-related neurological injuries. Under Florida law, once a child is admitted into NICA’s program, NICA is responsible for the payment of medical and other expenses incurred because of a birth-related neurological injury. Medicaid is a joint federal-state healthcare program that provides coverage and benefits to low-income and disabled individuals. Under federal law, Medicaid is generally the payer of last resort.

The qui tam case is captioned United States ex rel. Arven v. The Florida Birth-Related Neurological Injury Compensation Ass’n, et al., Case No. 19-cv-61053-WPD (S.D. Fla.). This case was handled by the U.S. Attorney’s Office for the Southern District of Florida, with assistance from the Civil Division’s Commercial Litigation Branch and the U.S. Department of Health and Human Services Office of Inspector General.

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 investigated by Assistant U.S. Attorney Rosaline Chan for the Southern District of Florida and Fraud Section Attorney Seth Greene.

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

A construction company owner became the third person to plead guilty for his role in a bid-rigging and bribery scheme involving California Department of Transportation (Caltrans) improvement and repair contracts.

According to a plea agreement filed today in the U.S. District Court for the Eastern District of California in Sacramento, Bill R. Miller engaged in a conspiracy, from April 2015 through at least December 2019, to thwart the competitive bidding process for Caltrans contracts on numerous occasions in order to ensure that companies controlled by co-conspirators or himself submitted the winning bid and would be awarded the contract. As part of the conspiracy, Miller recruited others to submit sham bids on Caltrans contracts, including co-conspirator William D. Opp, a former business partner who pleaded guilty in the case on Oct. 3, 2022. 

In addition to pleading guilty to bid rigging, Miller also pleaded guilty for paying bribes to Choon Foo “Keith” Yong, the former Caltrans contract manager who managed the contracts involved on behalf of Caltrans, a California state agency that receives significant federal funding. On April 11, 2022, Yong pleaded guilty to his role in the bid-rigging and bribery scheme. According to Yong’s plea agreement, Yong received the bribes in the form of cash payments, wine, furniture and remodeling services on his home. The total value of the payments and benefits Yong received exceeded $800,000.

“This construction company owner is the third person to plead guilty and the highest-level contractor to face justice in the Antitrust Division’s investigation into bribery and bid rigging at Caltrans,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Transportation infrastructure is critical to our nation, so punishing bid-rigging and bribery schemes that target public works remains a top priority for the division and its Procurement Collusion Strike Force partners.”

“California has many government projects that obligate taxpayer money, making it important to root out corruption and protect the integrity of the contracting process,” said U.S. Attorney Phillip A. Talbert for the Eastern District of California. “My office is committed to investigating and prosecuting those who attempt to bribe public officials or who engage in other acts of public corruption that undermine the public’s confidence in the integrity of the government.”

Miller is scheduled to be sentenced on Feb. 6, 2023, by U.S. District Judge Kimberly J. Mueller. For the bid-rigging conspiracy, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $1 million or twice the gross pecuniary loss resulting from the offense. For bribery concerning programs receiving federal funds, Miller faces a maximum statutory penalty of 10 years of incarceration and a fine of up to $250,000 or twice the gross pecuniary loss resulting from the offense. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and U.S. Sentencing Guidelines. In addition to his guilty plea, Miller has agreed to pay restitution. 

Today’s guilty plea is the result of a joint investigation being conducted by the Antitrust Division’s San Francisco office, the U.S. Attorney’s Office for the Eastern District of California and the FBI’s Sacramento Division as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). 

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. In fall 2020, the Strike Force expanded its footprint with the launch of PCSF: global, designed to deter, detect, investigate and prosecute collusive schemes that target government spending outside of the United States. 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.

The Ohio State University (OSU), a public university in Columbus, Ohio, has paid $875,689 to resolve civil allegations that it failed to disclose an OSU professor’s affiliations with and support from a foreign government in connection with federal research funding.

This settlement relates to Army, National Aeronautics and Space Administration (NASA), and National Science Foundation (NSF) grants and research support agreements that provided funding to OSU from November 2012 to August 2020. In the funding application process, the Army, NASA the NSF require disclosures of, among other things, foreign government support received by any principal investigator (PI) or co-PI on the grant or agreement. The settlement resolves allegations that an OSU professor failed to disclose funding that he was receiving from a foreign government in connection with: (1) employment at a foreign public university; (2) participation in a foreign talent plan, a program established by the foreign government to recruit individuals with knowledge or access to foreign technology intellectual property; and (3) a grant from the foreign government’s natural science foundation. As part of its settlement, OSU has agreed to cooperate with the United States government’s investigation of others involved in the alleged violations of law.

“Universities, institutions and researchers are required to make certain disclosures when applying for federal grants so that the government can assess whether to fund their research and development,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The department will hold accountable applicants who undermine the integrity of the grant process by knowingly failing to submit complete and truthful applications.”

“Failing to comply with federal disclosure obligations is not tolerable. Period,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “Institutions, agencies, and researchers who do so will be held accountable.”

“The Department of the Army Criminal Investigation Division uses all available resources to see that those who attempt to bypass full disclosure rules when working with foreign governments are held accountable,” said Special Agent in Charge Scott Moreland of the Major Procurement Fraud Field Office.

“This settlement demonstrates NASA Office of Inspector General (OIG)’s commitment to identifying and holding accountable those who conceal affiliations with foreign entities to obtain research funding,” said Assistant Inspector General Robert Steinau of Investigations for NASA-OIG. “I am proud of the exceptional teamwork of our law enforcement partners, the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Southern District of Ohio, that resulted in securing this settlement and ensuring aggressive oversight of taxpayer funds awarded for academic research.”

The settlement 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 Southern District of Ohio, with assistance from the FBI, Army, NASA-OIG and NSF.

This matter was handled by Senior Trial Counsel Christopher Terranova of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney Michael J.T. Downey for the Southern District of Ohio.

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

Ahead of Veterans Day, the Justice Department’s Civil Rights Division, the U.S. Equal Employment Opportunity Commission (EEOC) and the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (OFCCP) and its Veterans’ Employment and Training Service (VETS), issued a resource document describing federal protections from unlawful employment discrimination against servicemembers and veterans.

The document details federal laws that provide workplace protections specific to servicemembers and veterans, such as the Uniformed Services and Employment and Reemployment Rights Act. The document also explains how additional federal laws prohibit discrimination against employees for other reasons that servicemembers and veterans may face, including discrimination on the basis of a disability or other protected characteristics.

This is the first time that these agencies have jointly authored a resource document to help veterans and servicemembers determine which laws and federal agencies are responsible for enforcing their workplace rights and where to seek assistance if they believe those rights have been violated.

“We owe our servicemembers, veterans and their families a deep debt of gratitude for their service to our country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Through rigorous enforcement of federal civil rights laws, the Justice Department is working hard to ensure that the rights of the brave servicemembers and veterans are safeguarded from discrimination and unfair treatment.”

“Our military members sacrifice immensely to keep our country safe, and whether they are actively serving, reservists, or veterans, we must ensure they know their workplace rights and how to enforce them if they experience discrimination.” said EEOC Chair Charlotte A. Burrows. “This document clearly explains that they are protected from discrimination because of their military service, veteran status, disability or other reasons, such as their race, color, religion, national origin, sex (including pregnancy, sexual orientation or gender identity), age or genetic information.”

“OFCCP is pleased to release this important resource on employment discrimination protections for service members and veterans with VETS – at the Department of Labor – and our sister federal civil rights agencies,” said Director Jenny R. Yang of the Department of Labor’s Office of Federal Contract Compliance Programs. “As the federal government makes historic investments in infrastructure, manufacturing and technology, OFCCP is playing a central role in ensuring that the nation is utilizing the full talents of all workers, including our nation’s protected veterans.”

On Wednesday, the Civil Rights Division and the Justice Department’s Office for Access to Justice (ATJ) partnered with the Department of Veterans Affairs (VA) to host an event to highlight the work of VA-associated medical legal partnerships and discuss legal issues impacting veterans. The event also identified ways that federal attorneys and legal staff can be part of the solution by volunteering for pro bono assistance. The program featured remarks by Assistant Attorney General Clarke and ATJ Director Rachel Rossi, as well as Catherine Mitrano, Acting General Counsel for the VA and a number of veterans’ advocates.

The Civil Rights Division also houses the Justice Department’s Servicemembers and Veterans Initiative (SVI), which supports this legal work by conducting targeted outreach, training, policy development and coordination with other federal partners. In the last two years, SVI conducted 45 training and outreach programs, issued guidance to over 130 of businesses about servicemember financial rights and responded to hundreds of citizen requests for information. In addition, the division has assisted more than 3,450 servicemembers, veterans, and their families, securing more than $2 million in relief for them under federal civil rights law. 

To learn more about the division’s Servicemembers and Veterans Initiative, please visit www.servicemembers.gov. To learn more about the Office for Access to Justice, please visit www.justice.gov/atj. More information about the laws the EEOC enforces and how to file a charge of discrimination is available at www.eeoc.gov. More information about the OFCCP is available at www.dol.gov/agencies/ofccp, and more information about VETS is available at www.dol.gov/agencies/vets.

An indictment was unsealed today charging a Pennsylvania man for his alleged role in an insider trading scheme involving the securities of Mylan N.V. (Mylan), a publicly traded pharmaceutical company.

According to court documents, Ramkumar Rayapureddy, 54, of Upper Saint Clair, conspired with his former colleague, Dayakar Mallu, to fraudulently trade in Mylan securities based on material nonpublic inside information Rayapureddy obtained through his position at Mylan in advance of market-moving corporate announcements for their own financial gain. At the time of the alleged scheme, Rayapureddy was Mylan’s chief information officer.

From 2017 through 2019, Rayapureddy allegedly tipped Mallu on multiple occasions with material nonpublic inside information about Mylan concerning, among other things, FDA drug approvals, financial earnings, and a merger with a division of Pfizer, Inc. Mallu allegedly used the inside information to execute trades in the company’s securities and in return Rayapureddy or his designee received cash payments.

Rayapureddy is charged with one count of conspiracy to commit securities fraud and three counts of securities fraud. If convicted, he faces a maximum penalty of 20 years in prison on each of the securities fraud charges and five years in prison on the conspiracy charge. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

In September 2021, Mallu pleaded guilty to conspiracy to commit securities fraud and aiding in the preparation of a false tax return and is awaiting sentencing.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office made the announcement.

The FBI is investigating the case.

Trial Attorneys Matthew Reilly and Amanda Fretto Lingwood of the Criminal Division’s Fraud Section are prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.

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

The city of Elyria, Ohio, has entered into a consent decree with the United States and the State of Ohio to complete a series of capital projects designed to eliminate discharges of untreated sewage from its sewer system into the Black River, 10 miles upstream from Lake Erie.

The projects that Elyria has agreed to implement will significantly increase the amount of wastewater that receives treatment and prevent overflows from sanitary and combined sewer outfalls when the system becomes overloaded. When completed, the water quality of the Black River, around which the City of Elyria is situated, will be greatly improved. Elyria is expected to spend nearly $250 million to improve its sewer system. It will also pay a civil penalty of $100,000 to the United States and pay $100,000 to Ohio’s Surface Water Improvement Fund.

The consent decree would resolve the violations alleged in the underlying complaint filed by the United States and the state of Ohio. The complaint alleges that Elyria’s sanitary sewers overflowed on more than 1,100 occasions since 2011, resulting in discharges of untreated sewage into the Black River or a tributary to the river. The complaint also alleges that Elyria failed to comply with a previous court order to stop these illegal discharges.

“The Clean Water Act requires adequate infrastructure to limit discharges of untreated sewage,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “These settlements require meaningful investments that will improve the health of the Black River and Lake Erie.”

“The City of Elyria’s infrastructure investment will not only reduce untreated sewage from entering the Black River, but also improve water quality for residents,” said Acting Assistant Administrator Larry Starfield of the EPA’s Office of Enforcement and Compliance Assurance. “EPA and the State of Ohio worked with the City of Elyria to develop a comprehensive solution to protect water quality.”

Under the proposed consent decree, Elyria will construct various projects within its sewer system to be completed by Dec. 31, 2044. The most environmentally-significant of these projects will be completed within the first 15 years. This includes completion of the city’s East Side Relief Sewer, increasing capacity at Elyria’s wastewater treatment plant, adding processes to mitigate the harm from any bypasses around the wastewater treatment plant, and 12 other projects that will control waste overflows or the flow of non-wastewater into the sewer system. Elyria will submit semi-annual progress reports to the United States and the state of Ohio until all work has been completed.

The proposed agreements are subject to a 30-day public comment period and final court approval after publication in the Federal Register.

More information about this settlement can be found here.

The consent decree, lodged in the U.S. District Court for the Northern District of Ohio, is subject to a 30-day public comment period and final court approval. The consent decree will be available for viewing at https://www.justice.gov/enrd/consent-decrees.

The Justice Department announced today that Kendall Morgan, 44, the former undersheriff of the Le Flore County Sheriff’s Department (LCSO) in Le Flore County, Oklahoma, pleaded guilty to a criminal civil rights violation for using unlawful force on an arrestee.

According to court documents, on Jan. 25, 2017, while acting in his official capacity as LCSO’s undersheriff, Morgan willfully assaulted an individual identified as D.P. by repeatedly striking D.P. while D.P. was in handcuffs and not resisting arrest. The assault deprived D.P. of his right to be free from unreasonable force, did not further a legitimate law enforcement purpose, and resulted in bodily injury to D.P.

“This defendant, an experienced law enforcement officer, is being held accountable for unlawfully injuring a handcuffed man who was not resisting arrest and unable to defend himself,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department is committed to prosecuting any officer who violates their position and authority by using excessive force without cause.”

“Every citizen is entitled to be treated fairly and law enforcement officers should be models of this very important principle,” said U.S. Attorney Christopher Wilson for the Eastern District of Oklahoma. “The defendant’s actions in this case were illegal, immoral and unethical, and justice demands he face the consequences for his acts.”

“Mr. Morgan’s actions not only violated the civil rights of his victim, but compromised the public’s trust in the law enforcement system,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Office. “The FBI is committed to holding those who abuse their authority accountable and safeguarding the civil liberties of all Americans.”

Morgan faces a maximum sentence of 10 years in prison, three years of supervised release and a fine of up to $250,000. A sentencing hearing has not yet been set.   

Assistant Attorney General Clarke, U.S. Attorney Wilson and Special Agent in Charge Gray made the announcement.

The FBI Oklahoma City Field Office investigated the case. Assistant U.S. Attorney Jarrod Leaman for the Eastern District of Oklahoma and Trial Attorney Avner Shapiro of the Civil Rights Division are prosecuting the case.

A Washington man pleaded guilty today in U.S. District Court in Seattle to making interstate threats and committing a hate crime for interference with a federally protected activity. The defendant has been in federal custody since his arrest on July 22.

According to the plea agreement, Joey David George, 37, of Lynwood, telephoned multiple grocery stores in Buffalo, New York, and threatened to shoot Black people in the stores. George told the staff at the store to “take him seriously,” and ordered the store to clear out the customers, as he was “nearby” and “preparing to shoot all Black customers.” One store closed. The threats followed a racially-motivated shooting at another Buffalo grocery store in May. Law enforcement traced the phone number and identified George as the person who made the call.

In addition to the calls to Buffalo, George admits that in May, he called a restaurant in San Bruno, California. In that call, George allegedly threatened to shoot Black and Hispanic patrons in the restaurant. He told law enforcement that he made the threat to strike fear in the Bay Area Black community.

On Sept. 11, 2021, George called a cannabis dispensary in Rockville, Maryland, and used racial slurs as he threatened to shoot and kill Black people at the business. George admitted his racial hate to local law enforcement who used caller ID to trace the call. The dispensary shut down and hired extra security, causing a loss of over $50,000. George also called a Denny’s restaurant in Enfield, Connecticut, and threatened Black patrons at the restaurant on the same day.

In his plea agreement George admitted he made threatening telephone calls from at or near his home in Lynnwood, to grocery stores in Buffalo, New York, restaurants in California and Connecticut, and a marijuana dispensary in Maryland. Sentencing is scheduled in front of U.S. District Judge Ricardo S. Martinez on Dec.16.

In his plea agreement George agrees to pay restitution to the impacted businesses. 

Making interstate threats in punishable by up to five years in prison. Interfering with a federally protected activity is punishable by up to 10 years in prison.

Prosecutors have agreed to limit their sentencing recommendation to the high end of the federal sentencing guidelines range.  Judge Martinez is not bound by prosecutors’ recommendations and can impose any sentence up to the 10-year statutory maximum after considering the sentencing guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Nick Brown for the Western District of Washington and Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office made the announcement.

The FBI Seattle Field Office investigated the case, with the assistance of multiple local police departments. Assistant U.S. Attorneys Thomas Woods and Rebecca Cohen for the Western District of Washington prosecuted the case in consultation with the Justice Department’s Civil Rights Division.

The Justice Department announced today its plans to monitor compliance with federal voting rights laws in 64 jurisdictions in 24 states for the Nov. 8, 2022 general election. Since the passage of the Voting Rights Act of 1965, the Civil Rights Division has regularly monitored elections in the field in jurisdictions around the country to protect the rights of voters. The Civil Rights Division will also take complaints from the public nationwide regarding possible violations of the federal voting rights laws through its call center. The Civil Rights Division enforces the federal voting rights laws that protect the rights of all citizens to access the ballot.   

For the general election, the Civil Rights Division will monitor for compliance with the federal voting rights laws on Election Day and/or in early voting in 64 jurisdictions: 

• City of Bethel, Alaska;
• Dillingham Census Area, Alaska;
• Kusilvak Census Area, Alaska;
• Sitka City-Borough, Alaska;
• Maricopa County, Arizona;
• Navajo County, Arizona;
• Pima County, Arizona;
• Pinal County, Arizona;
• Yavapai County, Arizona;
• Newton County, Arkansas;
• Los Angeles County, California;
• Sonoma County, California;
• Broward County, Florida;
• Miami-Dade County, Florida;
• Palm Beach County, Florida;
• Cobb County, Georgia;
• Fulton County, Georgia;
• Gwinnett County, Georgia;
• Town of Clinton, Massachusetts;
• City of Everett, Massachusetts;
• City of Fitchburg, Massachusetts;
• City of Leominster, Massachusetts;
• City of Malden, Massachusetts;
• City of Methuen, Massachusetts;
• City of Randolph, Massachusetts;
• City of Salem, Massachusetts;
• Prince George’s County, Maryland;
• City of Detroit, Michigan;
• City of Flint, Michigan;
• City of Grand Rapids, Michigan;
• City of Pontiac, Michigan;
• City of Southfield, Michigan;
• City of Minneapolis, Minnesota;
• Hennepin County, Minnesota;
• Ramsey County, Minnesota;
• Cole County, Missouri;
• Alamance County, North Carolina;
• Columbus County, North Carolina;
• Harnett County, North Carolina;
• Mecklenburg County, North Carolina;
• Wayne County, North Carolina;
• Middlesex County, New Jersey;
• Bernalillo County, New Mexico;
• San Juan County, New Mexico;
• Clark County, Nevada;
• Washoe County, Nevada;
• Queens County, New York;
• Cuyahoga County, Ohio;
• Berks County, Pennsylvania;
• Centre County, Pennsylvania;
• Lehigh County, Pennsylvania;
• Luzerne County, Pennsylvania;
• Philadelphia County, Pennsylvania;
• City of Pawtucket, Rhode Island;
• Horry County, South Carolina;
• Dallas County, Texas;
• Harris County, Texas;
• Waller County, Texas;
• San Juan County, Utah;
• City of Manassas, Virginia;
• City of Manassas Park, Virginia;
• Prince William County, Virginia;
• City of Milwaukee, Wisconsin; and,
• City of Racine, Wisconsin.

Monitors will include personnel from the Civil Rights Division and from U.S. Attorneys’ Offices. In addition, the division also deploys monitors from the Office of Personnel Management, where authorized by federal court order. Division personnel will also maintain contact with state and local election officials.

The Civil Rights Division’s Voting Section enforces the civil provisions of federal statutes that protect the right to vote, including the Voting Rights Act, the Uniformed and Overseas Citizens Absentee Voting Act, the National Voter Registration Act, the Help America Vote Act and the Civil Rights Acts. The division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA) to ensure that persons with disabilities have a full and equal opportunity to vote. The division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter suppression based on race, color, national origin or religion. 

On Election Day, Civil Rights Division personnel will be available all day to receive complaints from the public related to possible violations of the federal voting rights laws by a complaint form on the department’s website https://civilrights.justice.gov/ or by telephone toll-free at 800-253-3931. 

Individuals with questions or complaints related to the ADA may call the department’s toll-free ADA information line at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website, at https://www.ada.gov/.

Complaints related to disruption at a polling place should always be reported immediately to local election officials (including officials in the polling place). Complaints related to violence, threats of violence or intimidation at a polling place should be reported immediately to local police authorities by calling 911. These complaints should also be reported to the department after local authorities have been contacted.

The Justice Department recently announced its overall plans for the general election to protect the right to vote and secure the integrity of the voting process through the work of the Civil Rights Division, Criminal Division, National Security Division and U.S. Attorneys’ Offices. 

More information about the federal civil rights laws is available on the Civil Rights Division’s website at https://www.justice.gov/crt.

Axion Specialty Contracting LLC (Axion) was sentenced to pay a $1,001,989 criminal fine and $313,121 in restitution on Nov. 4 in Bridgeport, Connecticut, for its participation in a bid-rigging scheme targeting public and private entities in Connecticut. This is the third sentencing arising out of a long-running investigation into the insulation contracting industry. 

According to a guilty plea entered on Aug. 3 the defendant conspired with other insulation contractors to rig bids on contracts for installing insulation around pipes and ducts on construction projects at universities, hospitals and other public and private entities in Connecticut. The conspiracy ran for over five years, beginning as early as October 2012 and continuing until as late as March 2018. Six other individuals and companies have pleaded guilty to criminal conduct arising out of this investigation. Three individuals and one company await sentencing. 

“Today’s sentence reflects the seriousness of conduct that subverts the competitive process and targets public and private institutions,” said Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division. “We will pursue and hold accountable companies that subvert the competitive process for personal gain and corporate greed.”   

“Through this prosecution, individuals and businesses that illegally colluded with competitors to improve their companies’ bottom lines are being held accountable,” said U.S. Attorney Vanessa Roberts Avery for the District of Connecticut. “I commend the FBI and DCIS for investigating this scheme that victimized hospitals, universities and businesses throughout Connecticut.”

“The FBI takes allegations of project or construction fraud and bid rigging very seriously and will expend all appropriate resources to investigate such matters fully,” said Special Agent in Charge David Sundberg of the FBI New Haven Office. “This sentence and punitive penalty stand as evidence that we will pursue and bring to justice those who conspire to commit such crimes.”

“The Defense Criminal Investigative Service (DCIS), the law enforcement arm of the Department of Defense (DoD) Office of Inspector General, investigates anticompetitive practices that erode equity and trust in the DoD contracting processes,” said Special Agent in Charge Patrick J. Hegarty of the DCIS Northeast Field Office. “This sentencing demonstrates our commitment to partner with the Department of Justice and the FBI to hold accountable those companies that threaten the DoD procurement system.”  

Axion previously pleaded guilty to one count of bid rigging under Section 1 of the Sherman Antitrust Act. Axion was also ordered to pay a special assessment of $400. 

The Antitrust Division’s New York Office, the U.S. Attorney’s Office for the District of Connecticut, the FBI New Haven Office and the DCIS’s New Haven Resident Agency investigated this case. 

In November 2019, the Department of Justice created the Procurement Collusion Strike Force, 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 contact the Procurement Collusion Strike Force, or to report information on market allocation, price fixing, bid rigging and other anticompetitive conduct related to construction or infrastructure, go to https://www.justice.gov/procurement-collusion-strike-force.

On October 27, 2022, INTERPOL Washington--the U.S. National Central Bureau (USNCB), sent a technical team to Jakarta, Indonesia, to support ongoing border security improvement efforts under Project TERMINUS. The team performed maintenance on previously provided equipment and delivered and configured new hardware and software that will improve the Government of Indonesia’s interface with INTERPOL’s I-24/7 secure network, including the Stolen and Lost Travel document (SLTD) database.

 During maintenance of the older equipment, the team discovered that a core component had failed, resulting in loss of the ability to process key INTERPOL Notice data. Once the team repaired the component, the system immediately began consuming 15,175 missing Notice movements, including critical additions, updates, and cancellations. The USNCB team also plans to support its Indonesian partners by helping to relocate the existing Bali Terminus Service Delivery enclave from Jakarta to Surabaya in the future.

“INTERPOL Washington is pleased to continue its partnership with the Government of Indonesia. As the largest country in Southeast Asia, Indonesia presents unique challenges in securing its borders, and Project TERMINUS offers a key piece of the security puzzle,” said INTERPOL Washington Director Michael A. Hughes.

Established in 2016, Project TERMINUS is a partnership between INTERPOL Washington and the State Department's Bureau of Counterterrorism. The mission of Project TERMINUS is to extend INTERPOL's I-24/7 secure, global police-to-police communications system in high-risk areas and select host nations globally.

Project TERMINUS provides expert technical assistance to countries seeking to integrate access to INTERPOL's SLTD database into their national border security information-sharing systems. This assistance helps nations screen against the illicit international travel of transnational criminals and terrorists. Project TERMINUS is currently operating globally. In addition to Indonesia, Partner Nations receiving assistance include Nigeria, Malaysia, Panama, Kyrgyzstan, and The Maldives.

 

Jordan Patrick Leahy, 29, was sentenced today in federal court in the Middle District of Florida to 24 months in prison followed by three years of supervised release for his racially-motivated attack against a Black man who was traveling down a public roadway with his family in Seminole, Florida. 

Leahy was convicted of willfully intimidating and interfering with J.T., and attempting to injure, intimidate and interfere with J.T. through the use of a dangerous weapon (Leahy’s vehicle), because of J.T.’s race and color, and because J.T. was traveling on a public roadway in Seminole, Florida. Specifically, the government introduced evidence at trial that, when Leahy, while driving, came upon J.T. driving on a public road, Leahy shouted racial slurs at J.T. and attempted to force J.T.’s car off the road. J.T.’s girlfriend and four-year-old daughter were in the car at the time. When officers from the Pinellas County Sherriff’s Office arrived on the scene, Leahy made numerous statements evidencing his bias motive, including telling the officers that Black people need to be kept “in their areas.”

“This federal court has sentenced Jordan Leahy to prison for his decision to weaponize his vehicle in a racist attack on J.T.’s family,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The department will continue to aggressively prosecute those who seek to threaten and intimidate our community members because of their race. All persons should be free to travel on the public roadways without fear of being harmed because of who they are.”

“Today’s sentence sends a clear message that racially-motivated criminal behavior is especially repugnant and unacceptable,” said U.S. Attorney Roger Handberg of the Middle District of Florida. “We will continue to work with our local, state and federal law enforcement partners to enforce our nation’s civil rights laws.”

“We will not allow hate motivated crimes to infiltrate our communities and threaten our citizens,” said Special Agent in Charge David Walker for the FBI Tampa Field Division. “Investigating civil rights violations is among the FBI’s highest priorities and we will continue to work with our law enforcement partners to protect communities from hateful acts of bias.”

Assistant Attorney General Clarke, U.S. Attorney Handberg and Special Agent in Charge Walker made the announcement.

The FBI Tampa Field Office, the Pinellas County Sheriff’s Office and the Florida Highway Patrol investigated the case. Assistant U.S. Attorney Carlton Gammons for the Middle District of Florida and Trial Attorneys David Reese and Laura-Kate Bernstein of the Civil Rights Division are prosecuting the case.

United States today announced that Utica Resource Operating LLC (URO) has agreed to a settlement resolving alleged Clean Air Act violations at URO’s oil and gas production well facilities in Ohio. The settlement addresses URO’s failure to capture and control air emissions from storage vessels and to comply with associated inspection, recordkeeping and reporting requirements.

Under the terms of the settlement, URO will complete a $1.5 million suite of injunctive relief at 15 well pad facilities to come into compliance with the Clean Air Act and the facilities’ operating permits; implement mitigation measures at many of the wells owned by URO, and pay a penalty of $1 million. The injunctive relief includes a multi-step compliance program to review the current design of each storage vessel system and then make necessary design improvements to ensure that vapors will not be released to the environment during operations.

“This settlement not only requires URO to pay a significant civil penalty, it also requires pollution reductions to offset the effects of the company’s past violations,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “These mitigation measures will reduce the emission of harmful volatile organic compounds and greenhouse gases into the environment.”

“Utica Resource Operating’s failure to control emissions from its facilities in Guernsey, Morgan and Washington Counties placed our fellow citizens in harm’s way,” said U.S. Attorney Kenneth L. Parker for the Southern District of Ohio. “Today’s settlement, which includes a significant fine, will require URO to comply with the Clean Air Act, and further reinforce the Department of Justice’s commitment to take aggressive action to protect the citizens of this country. We will continue to hold entities who violate the nation’s environmental laws, such as the Clean Air Act, accountable for their actions. My office is committed to keeping our citizens safe.”

“The uncontrolled air emissions from these well facilities were creating poor air quality for residents of Ohio,” said Acting Assistant Administrator Larry Starfield of EPA’s Office of Enforcement and Compliance Assurance. “Today’s agreement not only requires the company to resolve their outstanding pollution violations, but also take measures to control their methane and carbon dioxide emissions, which are significant contributors to climate change.”

The settlement also requires URO to invest approximately $1.5 million in equipment upgrades and retrofits. These mitigation measures will further reduce pollution at URO well pads to offset past excess emissions from URO’s violations. In total, the improvements will result in estimated annual reductions of 307 tons of volatile organic compounds (VOC), 940 tons of methane and 4,429 tons of carbon dioxide. VOCs include a variety of chemicals that may cause adverse health effects, while methane and carbon dioxide are greenhouse gases contributing to climate change.

The EPA found widespread problems with uncontrolled VOC emissions from oil and wastewater storage vessels during inspections of 11 URO well facilities in 2019. These emissions came from pressurized gases venting through imperfectly sealed access hatches on top of the storage vessels, pressure relief devices and combustors. After learning of other violations relating to inspections, recordkeeping and reporting, EPA issued a notice and finding of violation to URO on Aug. 14, 2020.

The settlement terms are included in a proposed consent decree that the Department of Justice filed today with the U.S. District Court for the Southern District of Ohio. The proposed consent decree is subject to a 30-day public comment period and final court approval. It is available on the Justice Department website at www.usdoj.gov/enrd/Consent_Decrees.html.

U.S. Attorney General Merrick B. Garland met Wednesday in Washington, D.C., with Belgian Deputy Prime Minister and Minister of Justice Vincent Van Quickenborne.

In the meeting the Attorney General and Minister Van Quickenborne acknowledged and committed to strengthening the extraordinary law enforcement relationship between the United States and Belgium. 

The leaders discussed their joint law enforcement efforts, which have resulted in the successful investigation and prosecution of transnational organized crime, drug trafficking, and terrorism, among others. They also discussed cooperation in investigating and prosecuting Russian war crimes in Ukraine.

“Our ability to combat transnational crime and protect Americans from threats to our national security depends on the strength of our international partnerships,” said Attorney General Garland. “Belgium has been an invaluable law enforcement partner to the United States, and we look forward to finding ways to deepen our collaboration and coordination as we work together to keep our citizens safe and uphold the Rule of Law.”

Both leaders also agreed to enhance cross-Atlantic collaboration and information sharing to further disrupt transnational organized crime and drug trafficking, deny safe haven to violent criminals, and counter domestic and foreign terrorism.

Yesterday, FBI Director Christopher Wray and DEA Administrator Anne Milgram held separate meetings with Minister Van Quickenborne to discuss efforts to combat transnational organized crime, terrorism, and drug trafficking.

 

Darnell Fulton, 38, of Pineville, Louisiana, pleaded guilty today to conspiring to compel labor by three minors and to transporting a minor with intent to engage in criminal sexual activity.

According to the plea agreement, between June 2016 and May 2019, the defendant used violence, sexual abuse, withholding of food, degradation and intimidation to coerce multiple minors to work for his brownie baking business and provide him with the business profits. The defendant required the victims to travel to as many as 20-30 locations a day, such as plazas, car dealerships, law firms, restaurants and parking lots, in order to sell brownies. The victims worked late into the night, either selling or baking the brownies, and sold them during the day instead of going to school. In fact, the victims typically worked seven days a week with very few breaks, and had to meet a sales quota every day. The defendant regularly assaulted the victims, especially if they did not meet his sales quotas. For example, the defendant frequently required the victims to get on their hands and knees on rice and stay in a pushup or plank position for hours, and he often whipped them with a belt if they got out of proper form. He also forced the minor victims to perform sexual acts with him and others, and transported them across state lines in order to engage in criminal sexual activity.

“Human trafficking is a heinous crime that targets some of the most vulnerable people in our communities, cruelly exploiting the victims for their labor and services,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This conviction makes clear that the Department of Justice will prosecute those who use violence, psychological abuse, and emotional manipulation to compel the labor and services of their victims. We encourage survivors of forced labor, including children, to report forced labor complaints to authorities.”

“This case is proof that human trafficking doesn’t just happen in other countries,” said U.S. Attorney Brandon B. Brown for the Western District of Louisiana.  “But in fact, human trafficking can be happening right in our own neighborhoods and communities without us even realizing it.  Each of us must be vigilant and aware of our surroundings and if we see a situation that seems suspicious, take the time to report it to the police. Unfortunately, the victims in this case are the ones who have suffered life-long trauma because of this defendant’s horrendous acts. We will continue fighting for victims such as these to ensure that those who choose to inflict this type of harm on others are brought to justice.”

Fulton’s sentencing hearing has been scheduled for April 11, 2023. Fulton faces a mandatory minimum of 10 years imprisonment and a maximum penalty of up to life imprisonment, as well as a $250,000 fine for transporting a minor with intent to engage in criminal sexual activity, and a maximum penalty of 20 years and a $250,000 fine for conspiracy to commit forced labor. As part of his plea agreement, the defendant agreed to a sentence of 35 years in prison and to pay more than $700,000 in restitution to the victims.

Assistant Attorney General Clarke and U.S. Attorney Brown made the announcement.  

The FBI New Orleans Field Office, Alexandria investigated this case, with assistance from the Alexandria Police Department. Assistant U.S. Attorney John Luke Walker for the Western District of Louisiana and Trial Attorney Maryam Zhuravitsky of the Justice Department’s Human Trafficking Prosecution Unit 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.

A Guatemalan national was sentenced by U.S. District Court Judge Kenneth Marra on Nov. 3 to 36 months in prison in the Southern District of Florida for smuggling an unaccompanied 15-year-old child into the United States for financial gain. The defendant was convicted by federal jury in July 2022.

According to the evidence presented in court, Julio Ruiz Chuta, 35, was familiar with the child victim and child’s family since they were from the same village in Guatemala. The defendant told the child’s parents that he could help the child obtain better educational and work opportunities in the United States versus the poor opportunities that existed in Guatemala. The parents believed that the defendant would sincerely help them since he had been to the United States before and he promised to care for their child.  Consequently, the parents allowed the child to travel to the United States and permitted the defendant to act as his guardian in the United States even though they were not related. After the child passed illegally through the southern border of the United States and presented himself to authorities, he was placed in a shelter. The defendant assured appropriate authorities that he would care for the child by enrolling the child in school and providing a place to live, and that he would not impose a debt upon the child. However, the defendant did impose a debt upon the child and his family after the child arrived in Florida. Further, the defendant charged the family interest and pressured them to pay, causing the child to work instead of attending school. The defendant also caused the family to leverage their own Guatemalan property to acquire a loan to repay the outstanding debt.

“This defendant exploited a child and the child’s family after falsely telling authorities that he would provide food, shelter, and better educational opportunities, all so he could make money off the child and his family,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Department of Justice remains committed to vindicating the rights of vulnerable members of our society and will continue to prosecute those who cruelly exploit their labor and services.”

“It is shameful that situations like this involving children continue to occur,” said U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “The strain these types of cases put on a family is immeasurable. We will continue to go after these perpetrators with every resource available.”

Homeland Security Investigations and the Palm Beach County Sheriff’s Office investigated the case.

Assistant U.S. Attorney Gregory Schiller for the Southern District of Florida and Trial Attorney Kate Hill of the Civil Rights Division’s Human Trafficking Prosecution Unit prosecuted 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.

An indictment was unsealed today in Miami charging two Florida men for their roles in a scheme to defraud investors of Helios & Matheson Analytics Inc. (HMNY), a publicly traded Florida- and New York-based company that was the parent of MoviePass Inc. (MoviePass).        

According to court documents, Theodore Farnsworth, 60, of Miami, and J. Mitchell Lowe, 70, of Miami Beach, allegedly engaged in a scheme to defraud investors through materially false and misleading representations relating to HMNY and MoviePass’s business and operations to artificially inflate the price of HMNY’s stock and attract new investors. At the time of the alleged fraud, Farnsworth was HMNY’s Chairman and CEO, and Lowe was MoviePass’s CEO. 

“The Department of Justice is committed to protecting the public from being exploited by criminals for their personal profit,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “As these charges make clear, the Department, together with our law enforcement partners, will hold corrupt C-Suite executives who engage in securities fraud accountable for their actions.”

“As alleged, the defendants deliberately and publicly engaged in a fraudulent scheme designed to falsely bolster their company’s stock price,” said Assistant Director in Charge Michael J. Driscoll of the FBI New York Field Office. “Attempted scams of this nature erode the public’s faith in our financial markets. The FBI is committed to ensuring these types of frauds and swindles are uncovered and the perpetrators are held responsible for their actions in the criminal justice system.”

The indictment alleges Farnsworth and Lowe falsely claimed that MoviePass’s $9.95 “unlimited” plan – in which new subscribers could see “unlimited” movies in theaters with no blackout dates for a flat monthly fee of $9.95 – was tested, sustainable, and would be profitable or break even on subscription fees alone. Farnsworth and Lowe allegedly knew that the $9.95 “unlimited” plan was a temporary marketing gimmick to grow new subscribers and, in turn, artificially inflate HMNY’s stock price and attract new investors. As a result, MoviePass lost money from the $9.95 “unlimited” plan.

In addition, Farnsworth and Lowe allegedly made false claims that HMNY possessed and used technologies – like “big data” and “artificial intelligence” platforms – to generate revenue by analyzing and monetizing the data MoviePass collected from subscribers. However, the indictment alleges that Farnsworth and Lowe knew HMNY did not possess these technologies or capabilities to monetize MoviePass’s subscriber data or incorporate these technologies into the MoviePass application.

Farnsworth and Lowe also allegedly made false and misleading representations about the positive impact that multiple revenue streams (other than subscription fees) were having on MoviePass’s profitability and self-sufficiency. These statements were misleading because, as the indictment alleges, Farnsworth and Lowe knew MoviePass did not have non-subscription revenue streams that would make MoviePass self-sufficient or otherwise offset the losses MoviePass experienced as a result of the unprofitable $9.95 “unlimited” plan. 

Farnsworth and Lowe are also alleged to have falsely claimed that MoviePass’s cost of goods, as reflected in the number of tickets each subscriber purchased using their subscription, was naturally declining over time consistent with their stated expectations. Behind the scenes, Farnsworth and Lowe allegedly directed MoviePass employees to implement numerous tactics to prevent certain subscribers from using the purportedly “unlimited” service for which they had paid to try to ease MoviePass’s cash shortfalls. 

Furthermore, Farnsworth and Lowe allegedly made these materially false and misleading representations in press releases, SEC filings, interviews on podcasts and on television, and in print and online media, all of which were intended to reach, and at times did in fact reach, investors and the general public throughout the United States.

Farnsworth and Lowe are each charged with one count of securities fraud and three counts of wire fraud. If convicted, they each face a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The FBI New York Field Office is investigating the case.

Trial Attorney Christopher Fenton of the Criminal Division’s Fraud Section is prosecuting the case.

If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. Victims can find case updates and additional information at: https://www.justice.gov/criminal-vns/case/MoviePass.

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

A federal grand jury in Chicago, Illinois, returned an indictment, which was unsealed yesterday, charging three Illinois men with operating an odometer and title fraud scheme that involved hundreds of used cars over the course of many years.

According to court documents, Laith Ghzo, 36, of Oak Lawn, Hussein Ghzo, 40, of Palos Heights, and Musab Sawai, 35, of Worth caused the mileage of hundreds of used vehicles to be rolled back and altered title documents to reflect the false, low mileage. Those used vehicles were then sold to unsuspecting wholesale buyers and ultimately consumers, who paid more for those vehicles than they would have paid if they had known the truth about the vehicles’ mileages.

Laith Ghzo and Hussein Ghzo are charged with conspiracy to make counterfeit securities and commit mail fraud, making counterfeit securities and mail fraud. Musab Sawai is charged with conspiracy to make counterfeit securities and mail fraud. The defendants made their initial court appearances yesterday before U.S. Magistrate Judge Jeffrey Cole of the U.S. District Court for the Northern District of Illinois. If convicted, Laith Ghzo and Hussein Ghzo face a maximum penalty of 20 years in prison for each mail fraud count, and Musab Sawai faces a maximum penalty of five years in prison for conspiracy. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois, Acting Inspector in Charge Kai Pickens of the U.S. Postal Inspection Service Chicago Division and Acting Administrator Ann Carlson of the National Highway Traffic Safety Administration (NHTSA) made the announcement.

The NHTSA Office of Odometer Fraud Investigations and the Postal Inspection Service are investigating the case.

Trial Attorneys Joshua D. Rothman and Thomas Rosso of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Kartik K. Raman for the Northern District of Illinois are prosecuting the case.

NHTSA estimates that odometer fraud in the United States results in consumer losses of more than $1 billion annually and has established a special hotline to handle odometer fraud complaints. Individuals with information relating to odometer tampering should call (800) 424-9393 or (202) 366-4761.

More information on odometer fraud is available on the NHTSA website https://one.nhtsa.gov/Vehicle-Safety/Odometer-Fraud and tips on detecting and avoiding odometer fraud are available at this page: www.nhtsa.gov/staticfiles/nvs/pdf/811284.pdf.

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

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

Jackson, Miss. – A Nettleton man pled guilty to making threats in interstate commerce, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation.

James Curry, Jr., 48, pled guilty on November 1, 2022, in U.S. District Court in Jackson.

According to court documents and statements made in court, in September 2020, Curry made multiple phone calls to Conduent in which he threatened to kill Conduent employees and any law enforcement who attempted to intervene. Conduent is the debit card provider for the U.S. Department of Employment Security.

Curry is scheduled to be sentenced on February 16, 2023, and faces a maximum penalty of 5 years in prison and a $250,000 fine. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

This case was investigated by the Federal Bureau of Investigation.

Assistant U.S. Attorney Kimberly Purdie is prosecuting the case.

An indictment was unsealed Nov. 1 charging an Alaska businesswoman with tax evasion and filing false tax returns that underreported income from the business she owned.

The indictment charges that, from approximately 2014 through 2018, Tina H. Yi, of Nome and Anchorage, evaded approximately $1.5 million in federal income taxes and filed false personal tax returns with the IRS. Yi allegedly was the sole owner and operator of SJ Investment LLC, a hotel, bar and liquor store that did business as Polaris HBL. According to the indictment, Yi created the business in approximately April 2007 and operated it in Nome until approximately October 2017, when the physical property was destroyed in a fire. 

Yi allegedly maintained two sets of books and records relating to the business’s income and expenses for 2014 through 2017 – one of which accurately captured SJ Investment’s income and expenses, and one that understated the company’s income. Yi allegedly provided the false records to her accountant to use to prepare her tax returns for each year. By allegedly providing business records to her accountant that falsified SJ Investment’s income, Yi ensured that her personal tax returns – on which she reported SJ Investment’s income – would be false for each year. For 2018, Yi allegedly used a different tax preparer. She allegedly provided that preparer with false information as well, ensuring that her 2018 tax return also was false. In total, Yi allegedly did not report to the IRS more than $3.2 million in income from SJ Investment.

Yi made her initial court appearance yesterday before U.S. Magistrate Judge Matthew M. Scoble of the U.S. District Court for the District of Alaska. If convicted, she faces a maximum of five years in prison for each of five counts of tax evasion and three years in prison for each of five counts of filing a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney S. Lane Tucker for the District of Alaska made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorney Ahmed Almudallal of the Tax Division and Assistant U.S. Attorneys Emily Allen and George Tran are prosecuting the case.

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

Ionian Management Inc. (IONIAN M), a New York-based company that commercially manages three vessels, including the M/T Ocean Princess, was sentenced yesterday in the District of the Virgin Islands before U.S. District Court Judge Wilma A. Lewis in St. Croix, after pleading guilty to a violation of the Act to Prevent Pollution from Ships. IONIAN M was sentenced to pay a fine of $250,000 and placed on probation for one year.

While vessels are operating within the U.S. Caribbean Emissions Control Area (ECA), they must not use fuel that exceeds 0.10% sulfur by weight to help protect air quality. Between Jan. 3, 2017, and July 10, 2018, the M/T Ocean Princess entered and operated within the ECA using fuel that contained excessive sulfur on twenty-six separate occasions. The fuel was petroleum cargo that had been transferred to the fuel tanks as authorized by IONIAN M. Once authorized, the crew of the M/T Ocean Princess transfered the higher sulfur fuel from the cargo tanks into the bunker tanks and use it to fuel the vessel, even though it exceeded the 0.10% sulfur by weight maximum.

U.S. Coast Guard inspectors boarded the M/T Ocean Princess on July 10, 2018, to conduct an inspection. During the inspection, the U.S. Coast Guard discovered the vessel’s use of fuel with an excessive sulfur content.

“The sentence imposed on this commercial vessel manager for intentionally violating environmental laws designed to protect the air quality of the United States sends a strong message that the United States will not tolerate such violations and will hold violators accountable,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division.     

“The pristine beauty of our Virgin Island waters is one of our most precious resources, essential to our tourism and our fragile marine ecosystem,” said First Assistant U.S. Attorney John Kuhn for the District of the Virgin Islands. “Today’s sentencing of Ionian Management Inc. for its role in causing high sulfur fuel to be burned within the Caribbean Emissions Control Area, and here in the waters near St. Croix, sends a strong message to commercial managers of ships that such conduct will not be tolerated. To protect the territory of the Virgin Islands, we will continue to pursue criminal enforcement of environmental laws.”

“Ocean going vessels emit hazardous air pollutants or air toxics that are associated with adverse health effects impacting populations living near ports and coastlines,” said Special Agent in Charge Tyler Amon of EPA’s Criminal Enforcement Program in the Virgin Islands. “EPA, along with its law enforcement partners are committed to ensuring the shipping industry continues to comply with laws designed to protect air quality.”

“The results announced today are the culmination of four years’ worth of unyielding effort to hold accountable those who knowingly violate our federal laws,” said Rear Adm. Brendan C. McPherson, commander of the Seventh Coast Guard District. “I am exceptionally proud of the dedicated work by our Coast Guard Resident Inspection Office in St. Croix, our Coast Guard Sector San Juan marine inspectors who identified the violation, and our Coast Guard Investigative Service agents who worked with the Environmental Protection Agency in San Juan to investigate this case. Our cooperative efforts with the Department of Justice and environmental protection partners will continue to hold accountable anyone who prioritizes profit over policies designed to safeguard our maritime environment for future generations.”

The M/T Ocean Princess was owned by Lily Shipping Ltd. and operated by Ionian Shipping and Trading, both Greece-domiciled companies. These two companies previously pleaded guilty to felony violations related to the use of non-compliant fuel and falsification of records and were sentenced to pay a combined criminal fine of $3,000,000, serve a three-year period of probation, and implement an Environmental Compliance Plan. The sentencing of Ionian M is the final chapter in this multi-year investigation and prosecution of the companies and individuals involved in the use of non-compliant, high-sulfur fuel in the operation and management of the M/T Ocean Princess.

The Coast Guard Investigative Service and the Environmental Protection Agency-Criminal Investigation Division conducted the investigation. Senior Trial Attorney Kenneth Nelson of the Environment and Natural Resource Division, Environmental Crimes Section, and Former Assistant U.S. Attorney Kim Chisholm and Assistant U.S. Attorney Daniel Huston for the District of the Virgin Islands prosecuted the case.

A federal jury in Atlanta convicted a former commissioner of the DeKalb County Board of Commissioners today for extorting a DeKalb County subcontractor in connection with a $1.8 million contract.

According to court documents and evidence presented at trial, from about May 2014 to August 2014, Sharon Barnes Sutton, 63, of Stone Mountain, Georgia, demanded monthly payments of $500 from a subcontractor, later increasing her demand to $1,000 per month. The subcontractor made the first $500 payment in June 2014 at a restaurant in Decatur and the second $500 cash payment in July 2014 at Barnes Sutton’s residence. The FBI disrupted Barnes Sutton’s continued demands in August 2014. Separately, Barnes Sutton also accepted a $5,000 cash bribe from an FBI confidential source who had business before the DeKalb County Board of Commissioners.

Barnes Sutton was convicted of two counts of extortion. She is scheduled to be sentenced on Jan. 6, 2023 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division made the announcement.

The FBI Atlanta Field Office investigated the case.

Senior Litigation Counsel Victor R. Salgado and Trial Attorney Jordan Dickson of the Criminal Division’s Public Integrity Section (PIN) are prosecuting the case. Former PIN Trial Attorney Amanda Vaughn assisted in the prosecution.

A federal judge sentenced Herdade Lokua, 34, and Jospin Mujangi, 32, of Kinshasa, Democratic Republic of Congo (DRC), to prison for their roles in trafficking wildlife products from DRC to Seattle. Lokua was sentenced to 20  months in prison and Mujangi was sentenced to 14 months in prison. Both men had pleaded guilty to conspiracy and Lacey Act charges on July 13. 

The court determined that Lokua was the organizer of a trafficking operation involving more than five other co-conspirators whose goal was to ship a cargo container full of elephant ivory, white rhinoceros horn, and pangolin scales to Seattle. Mujangi helped package the wildlife products and handled the financial details to process the payment through a Chinese bank and then back to DRC.

“Today’s sentence demonstrates that wildlife trafficking leads to prison, and that we are committed to prosecuting this crime,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “I commend our Homeland Security Investigations and DRC partners in stopping this trafficking ring before tons of protected wildlife products entered the illegal market.”

“Wildlife trafficking is decimating many species worldwide and has broader impacts to a country’s economic development and security,” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest.  “HSI is proud of our international public and private sector partnerships who enabled the success of this investigation and will continue to leverage those partnerships to target and dismantle future trafficking organizations who seek profit over the risk of extinction.”

In their prior guilty pleas, both defendants admitted that, beginning in November 2019, they agreed to smuggle the wildlife products at issue to the United States. They worked with a middleman to negotiate the sales and coordinate imports to Seattle. Between August and September 2020, Lokua and Mujangi made several small sales to build trust with the buyers. They sent three packages containing approximately 49 pounds of ivory from Kinshasa. They arranged for the ivory to be cut into smaller pieces and painted black; the packages were then falsely labeled as containing wood.

Lokua and Mujangi acknowledged that in June 2021, they sent nearly five pounds of rhinoceros horn to Seattle using a similar scheme. Lokua discussed sending two tons of ivory and one ton of pangolin scales concealed in a shipping container. He stated that payment would have to be routed through a bank account in China before they could access the cash in Kinshasa.

Lokua and Mujangi admitted that they traveled to Seattle on Nov. 2, 2021, to meet with prospective buyers who were actually undercover federal agents. After negotiating the details for 4,900kg of ivory, 3kg of rhinoceros horn, and 1,500kg of pangolin scales, worth $3.5 million, agents arrested both men in Edmonds, Washington.

The investigation was part of “Operation Kuluna,” an international operation conducted between HSI Seattle, the government of the DRC and the U.S. Embassy in Kinshasa. After the arrests, the task force in DRC acted on information provided by HSI Seattle to seize 2,067 pounds of ivory and 75 pounds of pangolin scales in Kinshasa worth over $1 million, all contraband related to wildlife trafficking.

The Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, falsely labeling shipments containing wildlife. The United States, DRC and approximately 181 other countries are signatories to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). CITES is an international treaty that restricts trade in species that may be threatened with extinction. CITES has permit requirements for protected wildlife, and the indictment alleges that the defendants did not obtain any of the necessary papers or declarations from DRC or the United States.

The CITES treaty has listed the white rhinoceros (Ceratotherium simum) as a protected species since 1975 and the African elephant (Loxodanta africana) since 1977. All species of pangolin were added to the CITES appendix with the greatest level of protection in 2017. All three mammals are threatened by poaching and habitat loss.

HSI Seattle conducted the investigation, with assistance from IRS Criminal Investigation. Senior Trial Attorneys Patrick M. Duggan and Ryan C. Connors of the Environmental Crimes Section with assistance from the U.S. Attorney’s Office for the Western District of Washington represented the government.

Modernizing Medicine Inc. (ModMed), an electronic health record (EHR) technology vendor located in Boca Raton, Florida, has agreed to pay $45 million to resolve allegations that it violated the False Claims Act (FCA) by accepting and providing unlawful remuneration in exchange for referrals and by causing its users to report inaccurate information in connection with claims for federal incentive payments.

The Anti-Kickback Statute prohibits anyone from offering or paying, directly or indirectly, any remuneration — which includes money or any other thing of value — to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs. In a complaint filed in conjunction with today’s settlement, the United States alleged that ModMed violated the FCA and the Anti-Kickback Statute through three marketing programs: First, ModMed solicited and received kickbacks from Miraca Life Sciences Inc. (Miraca) in exchange for recommending and arranging for ModMed’s users to utilize Miraca’s pathology lab services. Second, ModMed conspired with Miraca to improperly donate ModMed’s EHR to health care providers in an effort to increase lab orders to Miraca and simultaneously add customers to ModMed’s user base. Third, ModMed paid kickbacks to its current health care provider customers and to other influential sources in the healthcare industry to recommend ModMed’s EHR and refer potential customers to ModMed. 

“Electronic health records serve a critical role in informing physician decision making, and it is therefore essential that health care providers select such technology free from the influence of improper financial inducements,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Department of Justice’s Civil Division. “Vendors of electronic health records will be held to the same standards of compliance that we expect of everyone who provides health care services.”

“Today’s settlement marks the fourth resolution that our office has achieved as we seek to root out fraud in the electronic health record technology field,” said U.S. Attorney Nikolas P. Kerest for the District of Vermont. “It is imperative that medical providers be able to trust the health record systems with which they document important and sensitive patient information, and for too long electronic health record vendors have prioritized only sales. The government alleges that for years, ModMed, through a variety of schemes, engaged in illegal kickbacks that distorted both the EMR and pathology lab markets, in addition to providing its users with a deficient product. This resolution reflects the seriousness of the government’s allegations and the determination of the Department of Justice to restore integrity to the electronic health record field.”

As a result of this conduct, the government alleges that ModMed improperly generated sales for itself and for Miraca, while causing health care providers to submit false claims for reimbursement to the federal government for pathology services, and for incentive payments from the Department of Health and Human Services (HHS) for the adoption and “meaningful use” of ModMed’s EHR technology.

In January 2019, Miraca (now known as Inform Diagnostics) agreed to pay $63.5 million to resolve allegations that it violated the Anti-Kickback Statute and the Stark Law by providing to referring physicians subsidies for EHR systems and free or discounted technology consulting services. 2019 Press Release.

Additionally, under HHS’ EHR Incentive Programs, HHS offered incentive payments to health care providers that adopted certified EHR technology and met certain requirements relating to their “meaningful use” of that technology. Eligibility for incentive payments required health care providers to use certified EHR technology that, among other things, utilized certain standard vocabularies for drugs (RxNorm) and clinical terminology (SNOMED CT) in order to conduct certain transactions. The government’s complaint in intervention alleges that ModMed knew that its EHR did not always allow physician users to electronically record medical records using the required standard vocabularies, thereby causing certain of its users to submit false claims for incentive payments under that program.

The settlement with ModMed resolves, in part, allegations in a lawsuit filed in the District of Vermont by Amanda Long, a former Vice President of Product Management at ModMed. The lawsuit was filed under the qui tam, or whistleblower, provisions of the FCA, which permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The qui tam case is captioned United States ex rel. Long v. Modernizing Med., Inc., No. 2:17-cv-179 (D. Vt.). The Act allows the government to intervene and take over the action, as it did in this case. As part of today’s resolution, Ms. Long will receive approximately $9 million.

The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of Vermont. The FBI and the Department of Health and Human Services, Office of Counsel to the Inspector General provided investigative assistance.

The investigation and pursuit of this matter illustrate the government’s emphasis on combating health care fraud, including in the healthcare technology arena. One of the most powerful tools in this effort is the FCA. 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).

Assistant U.S. Attorney Lauren A. Lively for the District of Vermont and Trial Attorneys Kelley Hauser and Sarah Hill of the Civil Division’s Commercial Litigation Branch, Fraud Section handled this matter. 

The claims in the relator’s and the government’s complaints are allegations only and there has been no determination of liability

The Department of Justice’s Office of Justice Programs (OJP) today announced grant awards totaling almost $105 million to protect children from exploitation, trauma and abuse, and to fund improvements in the judicial system’s handling of child abuse and neglect cases. 

“The promise of a bright future for our children requires us to work closely with our partners across the country, and across all levels of government, to keep our kids safe,” said OJP Deputy Assistant Attorney General Maureen A. Henneberg. “Many of our most critical investments are in programs that combat child exploitation and abuse and help find missing children, and we are proud to support the dedicated professionals who are performing this vital work.”

These awards will provide law enforcement officials, child advocates and service providers the means to protect children from violence, abuse and sexual exploitation. Funds will help develop, enhance and strengthen investigative and trauma-informed services to assist youth, while supporting robust training and technical assistance to ensure that professionals working with impacted young people have the tools they need to be successful.

“Children should be allowed to live, grow, learn and thrive in environments that are supportive and nurturing, but many are deprived of that opportunity by threats to their health and safety,” said Administrator Liz Ryan of OJP’s Office of Juvenile Justice and Delinquency Prevention (OJJDP). “By delivering these resources to the professionals who devote their careers and lives to protecting children, we are making good on our commitment to the well-being of America’s young people.”

Grants from OJP’s OJJDP are distributing millions of dollars to local, state and Tribal jurisdictions throughout the United States, the U.S. territories and the District of Columbia to support child protection efforts.

Below is a list of programs designed to protect children from exploitation, trauma and abuse, and to fund improvements in the judicial system’s handling of child abuse and neglect cases. Descriptions of individual awards can be found by clicking on the links.

• OJJDP is awarding $6.2 million under the Strategies To Support Children Exposed to Violence Initiative, which provides funding for communities to develop coordinated and comprehensive community-based approaches to help children and their families who are exposed to violence build resilience and prevent future youth violence and delinquency. An additional $715,087 will support training and technical assistance.
• OJJDP is awarding $38.7 million to the National Center for Missing & Exploited Children (NCMEC) to enable the Center’s operations and provide support, technical assistance and training to help law enforcement locate and recover missing and exploited children. 
• Another $6 million is being awarded to NCMEC’s National Resource Center and Clearinghouse (NRCC) as part of an interagency agreement between OJJDP and the U.S. Secret Service. The NRCC helps prevent child abduction and sexual exploitation, and provides training and technical assistance to victims, their families and the professionals who serve them.  
• OJJDP is awarding $4.4 million to support the National AMBER Alert Training and Technical Assistance Program to help the AMBER Alert network improve law enforcement’s response to abducted children and encourage public participation in their recovery. 
• OJJDP will award $31.2 million under the Internet Crimes Against Children Task Force Program to conduct forensic examinations and to investigate and prosecute technology-facilitated child sexual exploitation throughout the United States. An additional $3.6 million under the Internet Crimes Against Children Task Force National Training Program will support training to Internet Crimes Against Children task forces and affiliated federal, state and local law enforcement and prosecutorial agencies in the areas of investigation, forensics, prosecution, community outreach, officer wellness and capacity building. Additionally, $3 million under the Strengthening ICAC Technological Investigative Capacity Program will help increase the technological investigative capacity and associated training of law enforcement, prosecutors and other professionals nationwide to combat child sexual abuse material and online child sexual exploitation, including cases of child sex trafficking.
• OJJDP is awarding $2.6 million under its Supporting Effective Interventions for Youth With Problematic or Illegal Sexual Behavior Initiative, which provides funding to communities to develop intervention and supervision services for youth with problematic or illegal sexual behavior, and to provide treatment services for their victims and families and caregivers.
• OJJDP is awarding $5 million under the Victims of Child Abuse Act Regional Children’s Advocacy Centers Training and Technical Assistance Program to support four regional centers that enhance and support the development, expansion and continuous quality improvement of multidisciplinary teams, local children’s advocacy centers and state chapter organizations responding to child abuse and neglect cases. Additionally, $750,000 is being awarded under its Victims of Child Abuse Act Tribal Children’s Advocacy Centers Training and Technical Assistance Program to support federally recognized Tribes and Alaska Native communities in improving investigative responses and treatment services for victims of child abuse and their families by developing coordinated and comprehensive community-based approaches.
• OJJDP is awarding $2.7 million under the Victims of Child Abuse Act Training and Technical Assistance for Child Abuse Prosecutors Program, which will fund a national training and technical assistance program for attorneys who are involved in the criminal prosecution of child abuse to enhance the effectiveness of the investigation and prosecution of such crimes.

The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page.

The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and strengthen the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

The Department of Justice’s Office of Justice Programs today announced awards totaling more than $136 million to reform state and local juvenile justice systems, provide youth violence prevention and intervention services, support mentoring programs and reentry services for young people and their families, meet the needs of vulnerable youth and study outcomes for justice-involved youth.

“The path to durable and sustainable community safety solutions, and ultimately to a just and equitable society, includes evidence-informed strategies that support youth and steer them away from arrest and incarceration when possible,” said OJP Principal Deputy Assistant Attorney General Amy L. Solomon. “By investing in reforms to the juvenile justice system, providing mentors for youth and helping young people find a path forward, we are helping the next generation claim a future filled with opportunity and hope.”

The grants announced today, administered by OJP’s Office of Juvenile Justice and Delinquency Prevention (OJJDP) and National Institute of Justice (NIJ), support a range of programs and activities designed to meet the needs of youth who come into contact or are at risk of contact with the justice system. Funding supports mentoring; youth violence prevention strategies; juvenile indigent defense programs; treatment for youth leaving foster care; and services for girls in the justice system, Alaska Native youth and LGBTQI+ and Two-Spirit youth.

Grants under OJJDP’s Title II program also support state-wide measures to protect youth who are in the care of state juvenile justice systems, help keep them safe and prepare them for successful reentry upon release. Three research grants from NIJ will estimate and examine outcomes for youth with co-occurring substance use and mental health disorders and outcomes associated with youth who receive legal representation.

“The road to a more humane and effective juvenile justice system begins with a collective commitment to keeping young people out of the system altogether, by intervening early with youth who are vulnerable to system involvement and then working to guarantee that the system operates fairly and is supportive of their growth and development,” said OJJDP Administrator Liz Ryan. “These investments deliver on a pledge to put youth first and to make contact with the system rare, fair and beneficial for those it is intended to serve.”

A recent analysis of 2020 data from OJJDP and NIJ revealed that youth arrests for violent crime were down 78% from their peak in 1994. It found that people aged 17 and younger accounted for just 7% of all arrests for violent crime. Administrator Ryan has outlined three priorities designed to build on these successes and continue the trend away from youth involvement in the juvenile justice system: treating children as children; serving them in their homes, with their families and in their communities; and opening opportunities for system-involved youth. Each of these priorities is guided by a commitment to racial equity and to hearing directly from youth and families impacted by the justice system about their needs.

Below is a list of awards being made to support youth and reform the juvenile justice system. Descriptions of individual awards can be found by clinking on the links.

• OJJDP is awarding $44.6 million to support the Title II Formula Grant Program, which supports state and local delinquency prevention and intervention efforts and juvenile justice system improvements.
• OJJDP is awarding $2.4 million under its Juvenile Justice System Reform and Reinvestment Initiative to support states' implementation of innovative and/or research-based, data-informed recidivism-reduction policies, practices and programs. An additional $1 million will support training and technical assistance.
• OJJDP is awarding $1.1 million under the Youth Violence Prevention Program, which supports the development and implementation of youth violence prevention strategies for middle and high school age youth and/or youth with multiple risk factors for violence.
• OJJDP is awarding $43 million under its National Mentoring Programs Initiative and an additional $26.3 million under the Multistate Mentoring Programs Initiative, both of which support the implementation and delivery of mentoring services to youth who are at risk for delinquency, victimization and juvenile justice system involvement. An additional $2.7 million will fund the National Mentoring Resource Center to enhance the capacity of mentoring organizations to develop, implement and expand effective mentoring practices across the nation.
• OJJDP is awarding $2.5 million under the Enhancing Juvenile Indigent Defense Initiative, which is designed to ensure that youth involved in the juvenile justice system have access to high-quality legal representation and to resources that address the collateral consequences of justice system involvement.
• OJJDP is awarding $3.9 million under the Reducing Risk for Girls in the Juvenile Justice System Program, which addresses the needs and challenges of girls who come into contact with the juvenile justice system.
• OJJDP is awarding $150,000 under the Juvenile Justice Emergency Planning Demonstration Program for Juvenile Justice Residential Facilities, which supports emergency planning for state, local and tribal juvenile justice residential facilities.
• OJJDP is awarding $1 million to create the National Resource Center for Justice-Involved LGBTQ+ and Two Spirit Youth, which will provide training, technical assistance and other resources to juvenile justice practitioners to assist them in meeting the needs of justice-involved LGBTQI+ and Two-Spirit youth.
• OJJDP is awarding $1 million under the Alaska Native Youth Training and Technical Assistance Project, which will establish a regional network of partnerships to develop strategies that support Alaska Native youth's cultural needs. 
• OJJDP is awarding $200,000 under its Arts Programs for Justice-Involved Youth Initiative, which will support high-quality arts programs for justice-involved youth to reduce juvenile delinquency, recidivism and/or other problem and high-risk behaviors.
• OJJDP is awarding $3.6 million under the Supporting Vulnerable At-Risk Youth and Youth Transitioning Out of Foster Care Program, which supports the establishment of pilot demonstration programs to develop, implement and build replicable treatment models for residential-based innovative care, treatment and services. An additional $827,000 will be awarded to provide training and technical assistance.
• OJJDP is awarding $2.2 million under its Family Based Alternative Sentencing Program, which supports states and communities as they develop and implement effective alternative sentencing programs for parents/primary caregivers in the criminal justice system to improve child, parent and family outcomes.
• NIJ is awarding $1.3 million to support Research on Juvenile Justice Topics, to examine prevalence of and outcomes for youth with co-occurring substance use and mental health disorders and to study outcomes associated with youth defense delivery systems.

In addition to the awards listed above, OJJDP separately awarded more than $18 million in grants to support youth returning from confinement facilities, meet the needs of incarcerated parents and their minor children and fund alternative sentencing programs for parents and primary caregivers in the justice system. Those grants were part of nearly $100 million in OJP investments aimed at reducing recidivism and supporting reentry.

The awards announced above are being made as part of the regular end-of-fiscal year cycle. More information about these and other OJP awards can be found on the OJP Grant Awards Page. 

The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and strengthen the criminal and juvenile justice systems. More information about OJP and its components can be found at www.ojp.gov.

Former prisoner transport officer, Rogeric Hankins, 37, pleaded guilty in federal court in the Western District of Missouri to violating a female detainee’s civil rights by sexually assaulting her.

“We acknowledge the courage of this survivor who reported the defendant’s egregious crimes as soon as she was dropped off in Minneapolis,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “A private prisoner transport officer’s job is to keep those in their custody safe and secure, and this defendant did the opposite. The Justice Department is committed to holding anyone carrying out a law enforcement function accountable when they abuse their authority to perpetrate such appalling crimes.”

“A private prisoner transport officer abused his position of trust and authority by sexually assaulting a detainee who was in his custody while transporting her through Missouri,” said U.S. Attorney Teresa Moore for the Western District of Missouri. “Such a violent civil rights violation will not be tolerated by the Department of Justice. Individuals who wield their official power to rape and assault victims in their care will be held accountable for their criminal behavior.”

“This is a particularly heinous case as the defendant used his position and authority to commit his crime" said Special Agent in Charge Bob Meacham of the FBI Minneapolis Field Division. “The FBI will continue to work with our law enforcement partners and prosecutors to ensure those who violate the color of law will be held accountable and the victim’s voices heard.”

According to the plea agreement, at the time of the offense, Hankins worked as a prisoner transport officer for Inmate Services Corporation. As a private prisoner transport officer, Hankins performed the government function of picking up individuals who were arrested on out-of-state warrants and transporting those individuals back to the jurisdictions that issued the warrants. On March 31, 2020, Hankins picked up the victim, a female detainee, from a jail in Olympia, Washington, to transport her to St. Paul, Minnesota.

On April 3, 2020, before arriving in Minnesota, Hankins stopped the transport van at a gas station in Joplin, Missouri. Hankins brought the victim into the gas station to use the bathroom. After the victim used the women’s bathroom, Hankins led her into the men’s bathroom, and told her to go into the stall furthest from the door. Once inside the stall, Hankins began to try to pull the victim’s shirt up. She resisted and told Hankins to stop. In response, Hankins told the victim to be quiet and made her perform a sexual act on him. Hankins then further sexually assaulted the victim, while bending her over a toilet seat.

A sentencing hearing has not yet been set. Hankins faces a maximum term of 10 years imprisonment, three years of mandatory supervised release and a $250,000 fine.

Assistant Attorney General Clarke, U.S. Attorney Moore and Special Agent in Charge Meacham made the announcement.

The FBI Minneapolis Field Division, with assistance from the Ramsey County Sheriff’s Office, investigated the case.

Special Litigation Counsel Fara Gold and Trial Attorney Laura Gilson of the Justice Department’s Civil Rights Division are prosecuting the case, with assistance from the U.S. Attorney’s Office for the Western District of Missouri.

A federal judge entered a consent order that permanently bars a Utah physician from issuing prescriptions for opioids and other controlled substances.

The consent order resolves allegations made by the United States against Dr. Sean Ponce, a medical doctor licensed in Utah. In a complaint filed in U.S. District Court for the District of Utah, the government alleged that Dr. Ponce unlawfully issued controlled substance prescriptions in violation of the Controlled Substances Act. The complaint alleged that Dr. Ponce catered to customer requests for opioids and other controlled substances, at times using text messages to arrange the exchange of prescriptions for cash. The complaint further alleged that Dr. Ponce used virtual office space in Cottonwood Heights, Utah, to meet with cash-paying customers to maintain the guise of a medical practice despite the routine lack of legitimate examinations, medical findings supporting the prescriptions or bona-fide doctor-patient relationships.

“Doctors who facilitate the illegal diversion of opioids and other controlled substances harm the public and violate the law,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will continue working with its partners to stop medical professionals who seek to profit from the opioid addiction epidemic.”

“In the District of Utah, we will enforce the provisions of the Controlled Substances Act,” said U.S. Attorney Trina A. Higgins for the District of Utah. “This includes violations of the Act committed by doctors and healthcare professionals who unlawfully distribute controlled substances under the guise of legitimate medical practice.”

“We entrust healthcare professionals to act in the community’s best interest,” said Special Agent in Charge Brian Besser of the DEA Rocky Mountain Division. “With that trust, the DEA expects practitioners to prescribe controlled substances in accordance with the laws and regulations set forth by legislation. When public trust is broken and healthcare providers seek to benefit from those that are at risk, they will most certainly be held accountable. I commend our Salt Lake City agents and our partners at the U.S. Attorney’s Office for the District of Utah and the Civil Division’s Consumer Protection Branch for judiciously building this case and seeing it through.”

The consent order, entered by U.S. District Judge David Barlow, requires Dr. Ponce to pay a $65,000 civil penalty. The order also permanently prohibits Dr. Ponce from administering, dispensing or distributing controlled substances and from managing or supervising other medical providers who work with or prescribe opioids or controlled substances. The order prohibits Dr. Ponce from owning a business or medical practice where opioids or controlled substances are handled.

The government was represented by Assistant U.S. Attorney Joel Ferre for the District of Utah and Trial Attorneys Yolanda D. McCray Jones and Scott B. Dahlquist of the Civil Division’s Consumer Protection Branch. The DEA’s Tactical Diversion Squad in the Salt Lake City District Office provided substantial investigative support.

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

The city of Lakewood, Ohio, has agreed to perform work that will significantly reduce discharges of untreated sewage from its sewer system into Lake Erie and the Rocky River. The settlement is set forth in an interim partial consent decree that was filed today in federal court in the Northern District of Ohio.

The decree requires Lakewood to complete construction of a high-rate treatment system that will treat combined sewer overflows and build two large storage basins that will hold millions of gallons of wastewater until it can be sent to the wastewater treatment plant. Under the decree, Lakewood will spend about $85 million to improve its sewer system and will pay a civil penalty of $100,000, split evenly between the United States and Ohio.

The decree would partially resolve the violations alleged in the underlying complaint filed by the United States and the state of Ohio. The complaint alleges that Lakewood discharged untreated sanitary sewage into the Rocky River or directly into Lake Erie on at least 1,933 occasions from January 2016 through the present. The complaint also alleges that on numerous occasions from January 2016 through the present, Lakewood discharged water from combined sewer outfalls that violated the effluent limitations included in its National Pollutant Discharge Elimination System permit.

“The Clean Water Act requires adequate infrastructure to limit discharges of untreated sewage,” said Assistant Attorney General Todd Kim for the Justice Department’s Environment and Natural Resources Division. “This settlement requires meaningful investments in Lakewood’s wastewater collection and treatment system that will protect the waters surrounding the city of Lakewood.”

“Discharges of untreated sewage can damage local water bodies and sicken community members who come in contact,” said Larry Starfield, EPA’s Acting Assistant Administrator s for the Office of Enforcement and Compliance Assurance. “This settlement will benefit Lakewood and other Ohio communities by preventing the discharge of millions of gallons of untreated sewage from entering the Rocky River and Lake Erie.”

Under the decree, Lakewood will also conduct multiple pipe lining and repair projects within its sewer system designed to eliminate causes of sanitary sewer overflows. Lakewood will also undertake a sampling pilot study designed to identify sewage in stormwater outfalls and a one-year post-construction monitoring program, which will provide the data needed for future work in Lakewood’s sewer system.

The implementation of this decree will prevent millions of gallons of raw sewage carrying harmful pollutants, such as E. coli, from being discharged to Lake Erie and the Rocky River. These reductions in pollutants will improve water quality in Lake Erie and the Rocky River. 

This decree is an important, but partial step to address the problems in Lakewood’s sewer system. It will resolve all civil penalty claims, but will not fully resolve the injunctive relief claims alleged in the complaint. Lakewood will be required through a subsequent, enforceable agreement with the United States and the state of Ohio to implement a plan that addresses the remaining permitted and unpermitted overflows in Lakewood’s sewer system and to demonstrate compliance with the Clean Water Act.

The proposed agreement is subject to a 30-day public comment period and final court approval after publication in the Federal Register. The agreement is available on the Justice Department’s website: https://www.justice.gov/enrd/consent-decrees.

The Justice Department announced today that it has reached a settlement agreement with the Giant Company LLC d/b/a Giant Food (Giant), a Pennsylvania-based grocery store chain with locations in various states. The settlement resolves the department’s determination that Giant discriminated against non-U.S. citizen workers when checking their permission to work in the United States, in violation of the Immigration and Nationality Act (INA).

“Employers cannot discriminate against employees because of their citizenship, immigration status or national origin when verifying their permission to work,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to ensure that workers do not face unlawful discrimination when proving their permission to work in the United States.”

The department’s investigation began after a non-U.S. citizen complained that Giant refused to accept valid documentation proving her permission to work and demanded a different document from her. The department’s investigation determined that Giant routinely required specific documents from newly-hired non-U.S. citizens to prove they had permission to work in the United States. Specifically, the department found that Giant required lawful permanent residents to show their permanent resident cards (sometimes known as “green cards”) to prove their permission to work, even when they had presented other valid documentation. The investigation also revealed that Giant refused to allow the worker who complained to begin working because she did not present a green card as demanded. At the same time, Giant allowed U.S. citizens to choose from among various acceptable document types.

Under the terms of the settlement, Giant 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 three-year period. After the department’s investigation began, Giant provided the worker who complained with the pay she missed due to the alleged discrimination.

Federal law allows workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status, or national origin. The INA’s anti-discrimination provision prohibits employers from asking for specific documents because of a worker’s citizenship, immigration status or national origin. Indeed, many non-U.S. citizens, including lawful permanent residents, refugees and asylees, are eligible for several of the same types of documents to prove their permission to work as U.S. citizens (such as driver’s licenses and unrestricted social security cards). Employers should allow workers to present whatever acceptable documentation the workers choose and cannot reject valid documentation that reasonably appears to be genuine.

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

Learn more about IER’s work and how to get assistance through this brief video. Find more information on how employers can avoid discrimination when verifying permission to work 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. View the Spanish translation of this press release here.

WASHINGTON - Today, the U.S. District Court for the District of Columbia ruled in favor of the Justice Department in its civil antitrust lawsuit to block book publisher Penguin Random House’s proposed $2.2 billion acquisition of Simon & Schuster. The court found that the effect of the proposed merger would be to substantially lessen competition in the market for the U.S. publishing rights to anticipated top-selling books.

“Today’s decision protects vital competition for books and is a victory for authors, readers, and the free exchange of ideas,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The proposed merger would have reduced competition, decreased author compensation, diminished the breadth, depth, and diversity of our stories and ideas, and ultimately impoverished our democracy.”

“The decision is also a victory for workers more broadly,” said AAG Kanter. “It reaffirms that the antitrust laws protect competition for the acquisition of goods and services from workers. I would like to thank the talented, hardworking staff of the Antitrust Division for their steadfast efforts to safeguard competition in this important case.”

The court’s decision follows a thirteen-day trial in August 2022. In November 2021, the Justice Department sued to stop the merger under Section 7 of the Clayton Act. The district court’s opinion is temporarily under seal to allow the parties to review for confidentiality.

Defendants Collectively Ordered to Serve 104 months in Prison and Pay Nearly $3.5 Million in Restitution to Victims

OKLAHOMA CITY – Four defendants have been sentenced for their participation in a conspiracy to commit wire fraud in a scheme to fraudulently acquire personal protective equipment and event tickets, announced U.S. Attorney Robert J. Troester. 

This case came to the attention of law enforcement in Oklahoma when co-conspirators used stolen credit card information from 52 credit cards to purchase $678,842.03 worth of tickets to Oklahoma State University athletic events, including the November 30, 2019, Bedlam football game between the University of Oklahoma and Oklahoma State University.

Law enforcement subsequently identified multiple suspects involved in a wide-ranging scheme to use stolen credit card information to purchase event tickets at venues throughout the United States and Canada, including Madison Square Garden, as alleged in the Superseding Indictment. According to the Superseding Indictment, co-conspirators began targeting U.S.-based businesses selling pandemic related supplies at the start of the COVID-19 pandemic. Four of the co-conspirators have since appeared in Oklahoma City federal court, have pleaded guilty for their involvement in the scheme, and have now been sentenced by Chief United States District Judge Timothy D. DeGiusti.  

On October 7, 2022, STEVEN MESROP, 31, of Richmond Hill, Ontario, Canada, was sentenced to serve 80 months in prison. Mesrop was alleged to be the ringleader of at least six other co-conspirators involved in the scheme. Mesrop pleaded guilty to one count of conspiracy to commit wire fraud on August 3, 2021. At Mesrop’s sentencing, Judge DeGiusti found that Mesrop caused a total loss of $3,463,253.85 and attempted to cause an additional loss of $2,032,732.54. Judge DeGiusti ordered Mesrop to pay restitution in the amount of $3,463,253.85 to 39 victims.   

On July 27, 2022, DIJON CORNELIUS SHEPARD, 29, of Los Angeles, California, was sentenced to serve 20 months in prison. Shepard acted as a courier on behalf of the fraud scheme. Shepard pleaded guilty to one count of conspiracy to commit wire fraud on August 13, 2021. Judge DeGiusti ordered Shepard to pay restitution in the amount of $654,609.11 to seven victims.

On October 31, 2022, MIRNA MAHROUS HABIB, 25, of Mississauga, Ontario, Canada, was sentenced to serve four months in prison. Habib pleaded guilty to one count of aggravated identity theft on December 2, 2021. Judge DeGiusti ordered Habib to pay $683,243.23 in restitution to eight victims.

On December 9, 2021, KARIN TREISTER, 24, of Toronto, Ontario, Canada, pleaded guilty to one count of conspiracy to commit wire fraud on December 9, 2021.  Although Judge DeGiusti did not order Treister to serve prison time, she was ordered to pay $30,000 in restitution.

This case is the result of an investigation by the Federal Bureau of Investigation Oklahoma City Field Office, Homeland Security Investigations New York Office El Dorado Task Force, the New York City Police Department, and the Irvine (California) Police Department, with assistance from U.S. Customs and Border Protection.  The case is being prosecuted by Assistant U.S. Attorney William Farrior.

The public is reminded charges against remaining defendants in the case are merely accusations and that each defendant is presumed innocent unless proven guilty beyond a reasonable doubt. 

Reference is made to court filings for further information.

The president of a paving and asphalt contractor based in Billings, Montana, has pleaded guilty to attempting to monopolize the market for highway crack-sealing services in Montana and Wyoming. 

According to the one-count felony charge filed on Sept. 19 in the U.S. District Court for the District of Montana, Nathan Nephi Zito attempted to monopolize the markets for highway crack-sealing services in Montana and Wyoming by proposing that his company and its competitor allocate regional markets. The charge states that as early as January 2020, Zito approached a competitor about a “strategic partnership” and proposed that the competitor stop competing with Zito’s company for highway crack-sealing projects administered by Montana and Wyoming. In return, Zito’s company would stop competing with the competitor for projects administered by South Dakota and Nebraska. Zito offered to pay his competitor $100,000 as additional compensation for lost business in Montana and Wyoming. Zito further proposed that he and his competitor enter into a sham transaction to disguise their collusion. The charge states that Zito intended to monopolize the highway crack-sealing services markets in Montana and Wyoming. Today, the District Court accepted the guilty plea that was allocuted on Oct. 14, when Zito admitted to the facts contained in the charge.

“Congress criminalized monopolization and attempted monopolization to combat criminal conduct that subverts competition,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The Justice Department will continue to prosecute blatant and illegitimate monopoly behavior that subjects the American public to harm.”

“Any effort to cheat American taxpayers by subverting the government contracting process will be vigorously pursued by our office and our law enforcement partners,” said U.S. Attorney Jesse Laslovich for the District of Montana. “The result in this case shows that any person or entity in Montana that attempts to stifle competition by violating our federal antitrust laws will be held accountable for their criminal actions.”

“Maintaining our highway infrastructure is important to sustaining American prosperity,” said Inspector General Eric J. Soskin of the Department of Transportation. “U.S. taxpayers should have confidence in the integrity of the bidding process so that transportation dollars are spent on real improvements, not monopoly profits.”

Zito pleaded guilty to one count of attempted monopolization in violation of the Sherman Act. He faces a maximum sentence of 10 years’ imprisonment and a maximum fine of $1 million. The defendant's sentencing has been scheduled for Feb. 23, 2023. 

The guilty plea is the result of a joint investigation conducted by the Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the District of Montana and the Department of Transportation Office of Inspector General as part of the Justice Department’s Procurement Collusion Strike Force (PCSF). 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.

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

El Departamento de Justicia anunció hoy que ha llegado a un acuerdo conciliatorio con the Giant Company LLC d/b/a Giant Food (Giant), una cadena de supermercados con sede en Pennsylvania que tiene sucursales en varios estados. El acuerdo resuelve la determinación del Departamento que Giant había discriminado a trabajadores no ciudadanos de los EE. UU. a la hora de comprobar su permiso para trabajar en los Estados Unidos, en contra de la Ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés).

«Los empleadores no pueden discriminar a empleados por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen a la hora de verificar su permiso para trabajar», afirmó Kristen Clarke, la Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «El Departamento de Justicia seguirá garantizando que los trabajadores no se enfrenten a la discriminación ilícita a la hora de demostrar su permiso para trabajar en los Estados Unidos.»

La investigación del Departamento comenzó después de que una no ciudadana de los EE. UU. se quejó de que Giant se había negado a aceptar su documentación válida que demostraba su permiso para trabajar y exigía que les facilitara otro documento. La investigación del Departamento determinó que Giant requería, de forma rutinaria, documentos específicos de no ciudadanos de los EE. UU. recién contratados para demostrar que contaban con permiso para trabajar en los Estados Unidos. En concreto, el Departamento halló que Giant requería que residentes permanentes legales presentaran sus tarjetas de residente permanentes (a veces conocidas como «tarjetas verdes») para probar su permiso para trabajar, incluso cuando ya habían presentado otra documentación válida. Por otra parte, la investigación reveló que Giant se negó a permitir que la trabajadora que se había quejado comenzara a trabajar por no haber presentado una tarjeta verde, tal y como habían exigido. Al mismo tiempo, Giant permitió a ciudadanos de los EE. UU. elegir entre varios tipos de documento aceptables.

Conforme los términos del acuerdo, Giant pagará una sanción civil a los Estados Unidos, capacitará a su personal en cuanto a la disposición antidiscriminatoria de la INA, revisará sus políticas de empleo y se someterá a la supervisión del Departamento durante un período de tres años. Después de que se comenzara la investigación del Departamento, Giant proporcionó a la trabajadora que se había quejado con el pago que había faltado debido a la alegada discriminación.

Las leyes federales permiten a los trabajadores elegir los documentos válidos y legalmente aceptables que desean presentar para demostrar su identidad y permiso para trabajar, independientemente de su ciudadanía, estatus migratorio o nacionalidad de origen. La disposición antidiscriminatoria de la INA prohíbe que los empleadores soliciten documentos específicos por motivos de la ciudadanía, el estatus migratorio o la nacionalidad de origen de un trabajador. Muchas personas que no son ciudadanos de los EE. UU., incluyendo a residentes permanentes legales, refugiados y asilados, son elegibles para varios de los mismos tipos de documentos como lo son los ciudadanos de los EE. UU. para demostrar su permiso para trabajar (tales como licencias de conducir y tarjetas de seguro social sin restricciones). Los empleadores deben permitir que sus trabajadores presenten cualquier documentación aceptable que dichos trabajadores quieran y no pueden rechazar documentación válida que parece ser genuina.

La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés) de la División de Derechos Civiles es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. La ley prohíbe la discriminación por motivos de estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; prácticas documentales injustas; y represalias e intimidación.   

Para aprender más sobre la labor de la IER y cómo conseguir ayuda, vea este vídeo corto. Hay información disponible en el sitio web de la IER sobre cómo los empleadores pueden evitar la discriminación a la hora de verificar el permiso para trabajar. 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 en 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.

DENVER – The United States Attorney’s Office for the District of Colorado announces Alejandro Gort, 39, of Denver, was sentenced to five years of probation after he earlier pleaded guilty to obtaining a controlled substance by fraud and deception.

According to the plea agreement, the defendant worked the night shift at a Denver hospital on March 3, 2021. He was assigned to care for a critically ill patient admitted to the Sick and Intensive Care Unit following emergency surgery for a head injury. The patient was comatose and intubated when Mr. Gort was assigned to care for him. The defendant initiated a fentanyl drip to treat the patient’s pain, but stole the majority of the bag of fentanyl for his own use, concealing his crime by lowering the drip rate on the IV pump and failing to accurately document the flow rate in the patient’s medical record. He then used this fentanyl at the hospital during his shift. Later during the same shift, the defendant drained a second bag of fentanyl hung for the patient into a cup, then filled the bag with saline to facilitate and conceal the theft. The defendant intended to take the cup of fentanyl for his personal use, but hospital staff interrupted him and escorted him out of the building. According to other staff members, the defendant’s drug use affected his behavior and clinical judgments. There is no evidence that the patient was harmed by the defendant’s act of illegally obtaining the fentanyl. The defendant participated in a voluntary interview with law enforcement agents on March 11, 2021. During that interview, the defendant admitted that he diverted drugs from the hospital between late 2020 and the date the hospital confronted him. He stated he usually obtained fentanyl by falsely identifying the drug as “waste” that was to be discarded, but he kept the drugs for his personal use. He also admitted to using saline to waste fentanyl bags after diverting the fentanyl. The defendant stated he used the drugs at work.

“The defendant knowingly and repeatedly risked patient health for his own selfish interests,” said U.S. Attorney Cole Finegan. “Medical professionals have to be held to the highest standard when caring for critically ill patients. Stealing controlled substances is illegal, and this criminal conduct will be dealt with by facing prosecution under federal law.“

“Patients rely on the knowledge that they will receive FDA-approved medications to manage their conditions,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations, Kansas City Field Office. “When health care professionals tamper with those needed medications, we will pursue and bring them to justice.”

Judge Regina M. Rodriguez sentenced the defendant on October 28, 2022.

This case was investigated by the Food and Drug Administration Office of Criminal Investigations (FDA-OCI).

Case Number: 21-cr-00227.

 

A Puerto Rico man was sentenced today to nine years and seven months in prison for laundering over $2.5 million in drug proceeds.

According to court documents, Osvaldo Villegas Rivera, 57, of Rio Piedras, conspired with others to transfer over $2.5 million in drug proceeds from Miami to Venezuela between 2017 and 2019. The proceeds consisted of five deliveries of bulk cash picked up in the New York and New Jersey area that Villegas knew to be traceable to the sale of cocaine. Villegas also employed a network of couriers to move the funds.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division, U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida, and Special Agent in Charge Deanne L. Reuter of the DEA Miami Field Division made the announcement.

The DEA Miami Field Division investigated the case, with valuable assistance from the Fort Lauderdale Police Department.

Deputy Chief Joseph Palazzo of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Robert J. Emery for the Southern District of Florida prosecuted the case.

The Justice Department joins law enforcement agencies, victim service providers, survivors, victims, advocates and communities nationwide in recognizing the month of October as National Domestic Violence Awareness Month (DVAM). Domestic violence is serious and prevalent, and its impact does not stay within the home; it ripples out into workplaces, schools and entire communities. DVAM is a time to show support for those who are experiencing or have experienced domestic violence, and to give gratitude to first responders and victim service providers. DVAM encourages communities to bolster prevention efforts, improve responses to meet survivors’ needs, promote best practices and expand access to justice to all communities, especially for those who are underserved and marginalized.

The Office on Violence Against Women (OVW) is announcing nearly $70 million in fiscal year 2022 grant funding, including 39 awards totaling $29,916,258 under OVW’s Improving Criminal Justice Responses (ICJR) to Sexual Assault, Domestic Violence, Dating Violence, and Stalking Grant Program. The funding supports partnerships between victim service providers and the criminal justice system to implement effective and trauma-informed responses that protect survivors. The ICJR Program provides resources, training and service coordination for law enforcement, victim advocates, court personnel, probation and correction officers, mental health professionals, child protection staff and others who respond to and investigate domestic violence, sexual assault and stalking cases.

“Domestic Violence Awareness Month gives us the opportunity to share the incredible work our grantees do every day – and rededicate ourselves to the mission of bringing an end to violence,” said OVW Acting Director Allison Randall. “OVW changes the world through the lifesaving work of our grantees. This idea of a coordinated community response is the thread that runs through all grant programs funded by the Violence Against Women Act (VAWA). It’s the way by which communities in every state and territory have charted navigable paths for survivors escaping violence and pursuing justice. Technical assistance provides grantees with the capacity to significantly improve safety in their communities. And research and evaluation give our grantees the innovative and effective strategies they need to better serve survivors.”

To equip service providers with the knowledge and skills they need to respond competently and compassionately when a survivor asks for their help, 59 awards totaling $36.9 million under the Training and Technical Assistance Program will assist OVW grantees in aligning their work with best practices. OVW grantees and subgrantees will receive expertise and support required to develop and implement successful projects. Illustrative of these efforts are two awards to the International Association of Chiefs of Police and the Police Executive Research Forum to develop tools and trainings to identify gender bias in policing when responding to domestic violence and sexual assault.

OVW also awarded $3.4 million under the Research and Evaluation Initiative for nine projects to conduct evaluations of promising practices for combating domestic violence, dating violence, sexual assault and stalking, and to research emerging issues. By generating knowledge about strategies for serving survivors, communities that benefit from OVW funding will be better equipped to align their work with proven practices and be more capable of building empirical knowledge on the efficacy of promising new ways of making communities safer and more just.

In the coming months, OVW will release new grant solicitations. OVW’s anticipated fiscal year 2023 solicitation release plan is posted on the website. Please note this information is subject to change. It is crucial that applicants begin preparing application materials as early as practicable – if possible, before solicitations are posted. For more information for grant applicants, see OVW’s how to apply for OVW funding website and resources for applicants website.

In recognition of DVAM, OVW also held a fireside chat with OVW Acting Director Randall and Deputy Director Nadine Neufville of OVW’s Grant Development and Management Division. OVW leadership discussed why DVAM is so important to department and the office, and acknowledged the important work of service providers and advocates in the field.

OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of VAWA and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies, and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.

A Jamaican national was sentenced today to three years in prison for conspiring to run a Jamaica-based lottery scam that targeted elderly American consumers.

According to court documents, Greg Warren Clarke, 30, of Montego Bay conspired to operate a fraudulent lottery scheme. From in or around September 2013, through in or around August 2015, Clarke worked with co-conspirators, including Claude Anthony Shaw, in a scheme to defraud in which victims were called and falsely told that they had won over $1 million dollars in a lottery and needed to pay fees or taxes to claim their winnings. Victims were instructed to send their money through wire transfers or the mail to Shaw and other individuals. As part of the conspiracy, Clarke and Shaw discussed (over the phone and through cell phone text messages) plans to receive victims’ money. At Clarke’s direction, Shaw received money from victims through wire transfers and the mail. Clarke and Shaw discussed arrangements for victims to send money to other individuals with whom Shaw worked. Clarke then instructed Shaw to send the victims’ money to Clarke in Jamaica, usually through wire transfers. Victims who sent money to Clarke and his co-conspirators never received any lottery winnings. Clarke pleaded guilty to conspiracy to commit mail and wire fraud for his role in the scam on Aug. 19.

Shaw previously pleaded guilty to mail fraud in the U.S. District Court in Fort Lauderdale. In June 2017, he was sentenced to three years in prison.

“Today’s sentencing demonstrates the Justice Department’s commitment to combatting foreign-based lottery fraud schemes targeting American consumers,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The perpetrators of these schemes will be prosecuted, regardless of where they live and operate.”

“The Postal Inspection Service will continue to actively investigate fraudulent lottery schemes based in Jamaica directed at fleecing victims in the United States,” said Acting Inspector in Charge Juan A. Vargas of the U.S. Postal Inspection Service Miami Division. “We will not allow the fraudsters responsible for these Jamaican lottery scams to use the U.S. mail to commit their crime.”

The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Clarke.

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

Senior Trial Attorney Arturo DeCastro of the Civil Division's Consumer Protection Branch 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 open Monday through Friday from 10:00 a.m. to 6:00 p.m. ET. English, Spanish and other languages are available.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

A resident of Montego Bay, Jamaica, was extradited to the United States and made his initial appearance in federal court in Charlotte, North Carolina, on charges relating to his participation in a fraudulent lottery scheme that targeted elderly victims in the United States, the Department of Justice and U.S. Postal Inspection Service announced today.

Antony L. Stewart, 38, was charged in a nine-count indictment with conspiracy to commit mail and wire fraud, wire fraud and conspiracy to commit money laundering. The indictment was filed in the U.S. District Court for the Western District of North Carolina in December 2019 and was unsealed after the defendant’s extradition.  

According to the unsealed indictment, Stewart and his co-conspirators sought to unlawfully enrich themselves through a fraudulent lottery scheme targeting the elderly. Victims throughout the United States received phone calls in which they were falsely informed that they had won cash prizes totaling over $1 million and needed to pay fees in order to claim their winnings. The indictment alleges that victims were instructed on how to send their money, including through the use of money transmitter services, wire transfers, and the U.S. Postal Service, and to whom. The indictment further alleges victims were instructed to purchase electronics and other expensive goods and to send them to Stewart’s co-conspirators, who ultimately forwarded the goods and money to Stewart in Jamaica. The victims never received any “winnings.”

The Justice Department’s Office of International Affairs worked with law enforcement partners in Jamaica to secure the arrest and extradition of Stewart.

The case is being prosecuted by Trial Attorneys Raquel Toledo and Ryan E. Norman of the Civil Division’s Consumer Protection Branch, with the assistance of Assistant U.S. Attorney Jenny Sugar for the Western District of North Carolina.

The U.S. Postal Inspection Service investigated 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.

Additional information about the Consumer Protection Branch and its enforcement efforts may be found at www.justice.gov/civil/consumer-protection-branch. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.

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

A federal court permanently enjoined a Chandler, Arizona company from making and selling adulterated and misbranded dietary supplements, the Department of Justice announced today.

In a complaint filed on Oct. 12, 2022, the United States alleged that Global Vitality Inc., doing business as Enzyme Process International, along with company owner Steven D. Roderick, and the company’s corporate secretary Gorica Blagojevic, violated the Federal Food, Drug, and Cosmetic Act by distributing adulterated and misbranded dietary supplements. The government alleged that despite several Food and Drug Administration inspections over eight years and an FDA warning of non-compliance, the defendants continued to manufacture dietary supplements that were adulterated and misbranded in violation of current good manufacturing practice regulations, relevant food safety standards, and hazard prevention measures.

According to the complaint, which was filed in the U.S. District Court for the District of Arizona, FDA inspected the Global Vitality facility multiple times, in 2012, 2014, 2016, 2019 and most recently in June and July 2021. The complaint alleged that FDA inspections found violations of regulatory requirements meant to control the risk of hazards in dietary supplements, and failures to follow current good manufacturing practices for dietary supplements. The complaint also alleged that a quality control failure at Global Vitality led to a positive test for the bacteria E. coli in one of its products.

“Dietary supplement makers must abide by federal health and safety requirements,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department of Justice will work with FDA to vigorously enforce laws meant to protect consumers.”

“Protecting the American public’s access to safe and quality-made products is a core function of the FDA’s public health work,” said the FDA’s Associate Commissioner for Regulatory Affairs Judith McMeekin, Pharm.D. “To do so, the agency will continue to use all of the regulatory tools available and work with our federal law enforcement partners at the Department of Justice to ensure firms meet acceptable regulatory requirements for quality. Today, these standards were again upheld. Global Vitality Inc. (doing business as Enzyme Process International), along with company owner Steven D. Roderick and company corporate secretary Gorica Blagojevic, will be required to comply with federal law.”

The defendants agreed to settle the suit and be bound by a consent decree of permanent injunction. The order entered by the court permanently enjoins the defendants from violating the Food, Drug, and Cosmetic Act. Among other measures, the order requires the defendants to come into compliance with the law and to retain independent experts in labeling and current good manufacturing practices.

Trial Attorney Ellen Bowden McIntyre of the Justice Department’s Consumer Protection Branch is handling the case with the assistance of Associate Chief Counsel Roselle Oberstein of the Food and Drug Administration’s Office of the Chief Counsel.

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 resolved by the resolution announced today are allegations only and there has been no determination of liability.

BEAUMONT, Texas – U.S. Attorney Brit Featherston announced today that Assistant U.S. Attorney (AUSA) Nathaniel C. Kummerfeld will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2022, general election.  AUSA Kummerfeld has been appointed to serve as the District Election Officer (DEO) for the Eastern District of Texas, and in that capacity is responsible for overseeing the District’s handling of election day complaints of voting rights concerns, threats of violence to election officials or staff, and election fraud, in consultation with Justice Department Headquarters in Washington.

U.S. Attorney Featherston said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted in a fair and free election.  Similarly, election officials and staff must be able to serve without being subject to unlawful threats of violence.  The Department of Justice will always work tirelessly to protect the integrity of the election process.”

The Department of Justice has an important role in deterring and combatting discrimination and intimidation at the polls, threats of violence directed at election officials and poll workers, and election fraud.  The Department will address these violations wherever they occur.  The Department’s longstanding Election Day Program furthers these goals and also seeks to ensure public confidence in the electoral process by providing local points of contact within the Department for the public to report possible federal election law violations.

Federal law protects against such crimes as threatening violence against election officials or staff, intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input.  It also contains special protections for the rights of voters, and provides that they can vote free from interference, including intimidation, and other acts designed to prevent or discourage people from voting or voting for the candidate of their choice.  The Voting Rights Act protects the right of voters to mark their own ballot or to be assisted by a person of their choice (where voters need assistance because of disability or inability to read or write in English).  

U.S. Attorney Featherston stated, “The right to vote is the cornerstone of American democracy.  We all must ensure that those who are entitled to vote can exercise it if they choose, and that those who seek to corrupt it are brought to justice.  In order to respond to complaints of voting rights concerns and election fraud during the upcoming election, and to ensure that such complaints are directed to the appropriate authorities, AUSA/DEO Kummerfeld will be on duty in this District while the polls are open.  He can be reached by the public in Tyler at (903) 590-1400; in Beaumont at (409) 839-2538; in Plano at (972) 509-1201; and in Sherman at (903) 868-9454.  Please advise the receptionist that your call relates to a voting matter.”

In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day.  The Dallas FBI field office can be reached by the public at 972-559-5000.  The Houston FBI field office can be reached by the public at 713-693-5000.  The FBI can be reached by the public in the Eastern District of Texas at the following telephone numbers:

Beaumont – (409) 832-8571

Frisco – (214) 705-7000

Lufkin – (936) 637-3834

Sherman – (903) 892-8754

Texarkana – (870) 773-3382

Tyler – (903) 592-4301

Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division in Washington, DC by phone at 800-253-3931 or by complaint form at https://civilrights.justice.gov/.

U.S. Attorney Featherston said, “Ensuring free and fair elections depends in large part on the assistance of the American electorate.  It is important that those who have specific information about voting rights concerns or election fraud make that information available to the Department of Justice.”

Please note, however, in the case of a crime of violence or intimidation, please call 911 immediately and before contacting federal authorities.  State and local police have primary jurisdiction over polling places, and almost always have faster reaction capacity in an emergency.

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VDA OC LLC (VDA), a health care staffing company, pleaded guilty and was sentenced today for entering into and engaging in a conspiracy with a competitor to allocate employee nurses and to fix the wages of those nurses. 

During the conspiracy, from about October 2016 until July 2017, VDA, then known as Advantage On Call, LLC, was one of two primary providers of contract nursing services to the Clark County School District. According to the plea agreement it entered into with the government, VDA, through one of its employees, participated in a conspiracy with another contract health care staffing firm to suppress and eliminate competition by agreeing to allocate nurses and fix the wages of those nurses. At the same hearing during which VDA pleaded guilty, U.S. District Court Judge Richard F. Boulware II sentenced VDA to pay a criminal fine of $62,000 and restitution of $72,000 to victim nurses.

“Free and open labor markets are a cornerstone of the American dream,” said Assistant Attorney General Jonathan Kanter of the Justice Department's Antitrust Division. “Today’s guilty plea demonstrates our commitment to ensuring that workers receive competitive wages and a fair chance to pursue better work and that criminals who conspire to deprive them of those rights are held accountable. The court’s sentence will compensate the hardworking health care workers who were victims of this crime.”

“Protecting workers from antitrust schemes – such as wage-fixing and employee allocation – remains a priority for the U.S. Attorney’s Office,” said U.S. Attorney Jason M. Frierson for the District of Nevada. “We are committed to working with the Antitrust Division and FBI to prosecute anticompetitive conduct that affects opportunities for workers and the labor market.”

“The defendant conspired with a competitor to fix wages and undercut the salaries of school nurses,” said Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division. “Everyone, especially those responsible for keeping our children healthy and safe, deserves the opportunity to compete for employment in a fair marketplace.”

Today’s announcement is the result of a federal investigation being conducted by the Antitrust Division’s San Francisco Office and the FBI's International Corruption Unit, with assistance from the U.S. Attorney’s Office for the District of Nevada.

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

A former member of the Texas House of Representatives pleaded guilty today to evading payment of outstanding taxes he owed to the IRS. The plea was entered before U.S. Magistrate Judge Susan Hightower.

According to court documents and statements made in court, from approximately May 2011 through October 2019, Ronald Ray Wilson, formerly of Austin, willfully attempted to evade payment of income taxes he owed to the IRS. From 1977 through 2004 Wilson was an elected member of the Texas House of Representatives. In 1995, he also created a law firm, Ron Wilson & Associates. After leaving the Texas House of Representatives, Wilson earned a monthly pension from his service and continued to work as a lawyer.

In September 2008 and February 2011, Wilson agreed to two U.S. Tax Court decisions finding that he owed outstanding taxes to the IRS. After stipulating to these judicial decisions, Wilson took steps to conceal his income and assets from the IRS to avoid payment of the overdue taxes. Specifically, Wilson utilized his law firm’s trust account – which was limited to holding client funds – to conceal his personal assets by depositing his monthly salary into this account. Furthermore, to avoid an IRS levy placed on his personal bank account, Wilson ceased direct deposit of his monthly pension from the House of Representatives and instead ensured that he would receive physical checks. He deposited some of these checks into accounts belonging to a trust for which he served as trustee, then converted the deposited funds into cashier’s checks for his own use. In total, Wilson caused a tax loss to the IRS of approximately $794,632.

Wilson is scheduled to be sentenced at a later date and faces a maximum penalty of five years in prison.  He also faces a period of supervised release, restitution, and monetary penalties. A federal district court judge will first accept Wilson’s guilty plea and then determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

IRS-Criminal Investigation is investigating the case.

Assistant Chief David Zisserson and Trial Attorney Ashley Stein of the Tax Division is prosecuting the case.

A New York man was sentenced today to five years in prison for his participation in a scheme to defraud a North Carolina-based life insurance company that caused approximately $20 million in losses to the company and caused it to be ordered into liquidation.

According to court documents, Bradley C. Reifler, 62, of New York, was the CEO and founder of Forefront Capital Holdings and was responsible for investing approximately $34 million of the insurance company’s assets according to guidelines contained in a trust agreement and investment advisor agreement. Rather than investing the assets in secure investment vehicles as required by the agreements, Reifler misappropriated the funds for the benefit of his own companies and then used the funds for improper purposes, such as paying for overhead expenses and repaying prior investors to whom he owed money. Reifler also diverted other funds to risky investment vehicles that did not comply with the investment guidelines.

In addition, during internal and external audits performed in 2016, Reifler sent the life insurance company fabricated documentation for deals with individuals and entities that did not exist. As a result of Reifler’s fraud, the life insurance company was able to recoup only a portion of the approximately $34 million that it entrusted to Reifler and was ultimately ordered into liquidation. Reifler pleaded guilty in May 2022 to wire fraud.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.

The USPIS investigated the case.

Trial Attorneys Tom Tynan and Michael McCarthy of the Criminal Division’s Fraud Section prosecuted the case.