District Not Recorded

Hagatña, Guam – SHAWN N. ANDERSON, United States Attorney for the Districts of Guam and the Northern Mariana Islands, announced that defendants Andrew P. Manibusan, age 38, from Antioch, California, and James Bernard Ada Mafnas, age 51, from Barrigada, Guam, were sentenced in the United States District Court of Guam to federal imprisonment for Conspiracy to Distribute Fifty or More Grams of Methamphetamine Hydrochloride, in violation of 21 U.S.C. §§ 846, 841(a)(1) and (b)(1)(A)(viii). Manibusan was sentenced to 168 months, while Mafnas received 121 months. The Court also ordered each defendant to serve five years of supervised release following imprisonment and a mandatory $100 special assessment fee. In addition, defendants convicted of a federal drug offense may no longer qualify for certain federal benefits. 

From April to June 2021, Manibusan agreed with co-conspirators to distribute over 50 grams of methamphetamine to Guam from Antioch, California. Manibusan received over $51,000 from co-conspirators J.A. and James Ada Mafnas before he mailed 3,617 grams of methamphetamine to Guam.  The package was later intercepted by law enforcement.  The Court found that Manibusan acted as an organizer or leader in the drug conspiracy and that the conspiracy involved eight pounds of methamphetamine.  Law enforcement also recovered $143,000.00 from the co-conspirators’ residence.

“This case involved a substantial quantity of drugs, in addition to money,” stated United States Attorney Anderson.  “Law enforcement uncovered an organization that was deeply involved in drug trafficking.  This is reflected in the number of conspirators and the geographical span of their unlawful activity.  Our office looks forward to future enforcement operations as we continue to combat drug crime.”    

“HSI will do everything in our power to investigate and bring to justice those who distribute meth,” said John. F. Tobon, Special Agent in Charge HSI Honolulu. “These sentences hold Manibusan and Mafnas accountable for their crimes but serve as a warning that HSI and its federal partners will work to keep the scourge of meth out of our communities.” 

"These sentences are another demonstration that we do not tolerate using the U.S. Mail to traffic-controlled substances or launder drug money. Postal Inspectors will continue to pursue anyone who tries to take advantage of the post office and harm our communities," said Kevin Rho, Acting Inspector in Charge, USPIS, San Francisco Division. "As always, I would like to thank Guam Customs and Quarantine Agency, Guam Police Department, members of our Guam Interagency Anti-Narcotics Task Force (GIANT), and our federal law enforcement partners for their teamwork."

This joint investigation was conducted by the Homeland Security Investigations, United States Postal Inspection Service, and assistance from the Guam Police Department and Guam Customs and Quarantine Agency.  The case was prosecuted by Rosetta L. San Nicolas, Assistant United States Attorney in the District of Guam.

The Justice Department today announced that Westlake Financial has agreed to pay over $225,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to provide qualified servicemembers with interest rate benefits for the entire period required under the SCRA and by improperly delaying approval of interest rate benefit requests.

“The Servicemembers Civil Relief Act makes clear that those serving in our nation’s military are entitled to receive interest rate benefits as soon as they are called to service,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement sends the message that we will hold companies accountable when they deny servicemembers the important interest rate benefits they are entitled to under federal civil rights law.”

“Servicemembers make enormous sacrifices, and we have a responsibility to protect their rights and ensure they have full access to important benefits guaranteed under the law,” said U.S. Attorney Martin Estrada for the Central District of California. “The settlement with Westlake Financial reflects the Justice Department’s firm commitment to protecting the rights of servicemembers – and to defending civil rights for everyone.”

The SCRA provides that interest on any debt incurred by a servicemember before entering military service is limited to six percent per year. In order to take advantage of the interest rate cap, a servicemember must provide the creditor with written notice and a copy of their military orders or other documentation of their military service no later than 180 days after leaving service. After receiving notice, a creditor must forgive any interest in excess of 6% retroactively back to the date orders are issued calling the servicemember to active duty.

Westlake Financial is a Los Angeles-based auto finance company that specializes in subprime and near-subprime loans. In 2017, the Justice Department filed a complaint in the U.S. District Court for the Central District of California alleging that Westlake and its subsidiary, Wilshire Commercial Capital, violated the SCRA by unlawfully repossessing at least 70 vehicles owned by SCRA-protected servicemembers. In order to resolve those allegations, Westlake entered into a settlement requiring the company to pay over $700,000 to servicemembers and a $60,788 civil penalty and to be subject to monitoring by the department.

While monitoring Westlake’s compliance with the SCRA, the Justice Department discovered problems with the company’s handling of interest rate benefit requests. The department determined that Westlake was failing to apply interest rate benefits back to the date orders were issued calling the servicemember to active duty. The department also determined that Westlake had improperly delayed the approval of interest rate benefits to some servicemembers.

Under the amended settlement agreement, Westlake has agreed to pay an additional $185,460 to 250 servicemembers who did not receive interest rate benefits back to the date their orders were issued or who had to wait more than 60 days to receive their benefits. Each servicemember who did not receive interest rate benefits back to the date their orders were issued will receive a refund of any excess interest they paid, as well as an additional payment of three times the overpayment or $100, whichever is higher. Servicemembers whose interest rate approvals were delayed more than 60 days will each receive $500. Westlake will also be required to pay an additional $40,000 civil penalty to the United States. The amended agreement also requires Westlake to revise its SCRA policies and procedures and training to ensure that interest rate benefits are timely and appropriately applied to servicemember accounts.

This case was handled by the Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Central District of California. Since 2011, the Justice Department has obtained over $476 million in monetary relief for over 121,000 servicemembers through its enforcement of the SCRA. For more information about the department’s SCRA enforcement efforts, please visit www.servicemembers.gov.

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

The Department of Justice today announced that it will award almost $57 million to support criminal justice reform and advance racial equity in the criminal justice system. The grants will advance the department’s goal to promote fairness in the nation’s courts and corrections systems and align criminal justice practices with the latest science.

“Equal justice is not a self-executing proposition — it takes work to make it real — and it will take a collective commitment from all of us at the federal, state and local levels to bring that ideal to life,” said Associate Attorney General Vanita Gupta. “These investments make good on a pledge by the Justice Department to promote public safety and realize the promise of a just society that recognizes the dignity and humanity of everyone.”

Funding will support efforts at the state, territory, local and Tribal levels to institute more effective and equitable criminal justice policies and practices. Funding will also support strategies to ensure the protection of defendants’ and incarcerated individuals’ constitutional rights and safety and efforts to address wrongful convictions. The grants are administered by the department’s Office of Justice Programs.

The Department of Justice, through OJP, is working to advance equity and effectiveness in the justice system. Below is a summary of awards that support justice system reforms and advance racial equity:

• OJP’s Bureau of Justice Assistance is awarding eight million dollars under the Field Initiated: Encouraging Innovation program, designed to support new and innovative strategies that better enable criminal justice systems to prevent and respond to emerging and chronic challenges, including strategies that will increase opportunities for diversion, reform pretrial processes, build police-community trust and promote restorative justice and racial equity.

• BJA is awarding five million dollars under the National Initiatives - Justice for All: Effective Administration of Criminal Justice Training and Technical Assistance Program, which assists state, local and Tribal jurisdictions in reducing crime and improving the functioning of the criminal justice system, specifically through support for statewide strategic planning and protection of constitutional rights under the Sixth Amendment.

• BJA is awarding $9.8 million under the Justice Counts Implementation Program, which helps states adopt a core set of criminal justice metrics so that policymakers have access to actionable data to make policy and budgetary decisions.

• BJA is awarding three million dollars under its Reimagining Justice: Testing a New Model of Community Safety initiative, which will fund the development and testing of a new or innovative approach to improving community safety and trust that is an alternative to traditional enforcement mechanisms for neighborhoods experiencing high rates of less serious and low-level criminal offenses.

• OJP’s Office for Victims of Crime is awarding nearly $300,000 under the Developing Greater Understanding of the Needs of and Resources for Victims of Criminal Justice System-Related Harm program to better understand the service needs of persons affected by a criminal justice system error or failure, develop best practices to identify these victims, determine whether services currently exist that can meet the needs of this victim population and offer recommendations for appropriate service delivery, resources, partnerships and tools.

• OVC is awarding five million dollars under the Bridging Inequities - Legal Services and Victims' Rights Enforcement for Underserved Communities program to increase access to legal assistance for victims of crime in underserved communities by building and training a cadre of 20 legal fellows to be hosted by organizations across the nation and located in underserved communities.

• OVC is awarding $4.9 million under the Enhancing Access to Victim Services program to improve and expand the availability of accessible victim-centered, trauma-informed services for crime victims who are disabled, deaf, hard-of-hearing, limited English proficient, blind and/or visually impaired; fund accessible direct services for these victims; provide dedicated training and technical assistance to assist victim-serving organizations with the development and implementation of accessibility plans; and identify innovative approaches to serving these victims for replication within the field.

• OVC is awarding two million dollars to Ujima to support the National Center on Violence Against Women in the Black Community, which will provide microgrants to victim-serving organizations run by/for the communities they serve with the overarching goal of increasing the number of victims accessing services in historically marginalized and underserved communities.

• OJP’s National Institute of Justice is awarding almost $800,000 under its Racial and Ethnic Disparities in the Justice System: A Study of Existing Evidence and Public Policy Implications program, which will support a comprehensive evidence-based analysis of existing evidence to examine how observed racial and ethnic disparities in the justice system might be reduced through public policy.

• BJA is awarding $2.9 million under the National Training and Technical Assistance: Capital Case Litigation Initiative, which helps states minimize the potential for error in the trial of capital cases, improve the quality of legal representation provided to indigent defendants in state capital cases and support state prosecutors in developing and implementing appropriate standards of practice and qualifications.

• BJA is awarding $7.6 million under its Upholding the Rule of Law and Preventing Wrongful Convictions Program, which supports efforts by wrongful conviction review entities that represent individuals with post-conviction claims of innocence to review individual cases.

• BJA is awarding $6.5 million under the Postconviction Testing of DNA Evidence program, which helps defrays costs associated with postconviction case review, evidence location and DNA testing in violent felony cases (as defined by state law) where the results of such testing might show actual innocence.

In addition to the awards described above, Atlanta’s Clark University received $1.2 million under NIJ’s Research and Evaluation on Violence Against Women portfolio to conduct a campus climate survey at three Historically Black Colleges and Universities. NIJ has also awarded $2.7 million in grants under the W.E.B. Du Bois Program of Research on Reducing Racial and Ethnic Disparities in the Justice System to perform rigorous research that will help build knowledge about the connections between race, crime, violence and the administration of justice in the United States. Those grants were announced earlier and are not included in the total for this announcement.

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 enhance the rule of law. More information about OJP and its components can be found at  www.ojp.gov.

The Justice Department announced today an agreement to resolve allegations that Lakeland Bank (Lakeland) engaged in a pattern or practice of lending discrimination by “redlining” in the Newark metropolitan area, including neighborhoods in Essex, Somerset and Union counties in New Jersey. This resolution is part of the Justice Department’s nationwide Combating Redlining Initiative and represents the third-largest redlining settlement in department history.

“Financial institutions that refuse to provide mortgage lending services to communities of color not only contribute to the persistent racial wealth gap that exists in this country, but also violate federal law,” said Attorney General Merrick B. Garland. “The agreement with Lakeland announced today represents the Justice Department’s continued commitment to addressing modern-day redlining, and to ensuring that all Americans have equal opportunity to obtain credit, no matter their race or national origin.”

“Ending redlining is a critical step in our work to close the widening gaps in wealth between communities of color and others,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement demonstrates our firm commitment to combating modern day redlining and holding banks and other lenders accountable when they deny people of color equal access to lending opportunities. Through this agreement, we are sending a strong message to the financial industry that we will not stand for discriminatory and unlawful barriers in residential mortgage lending.”

“Redlining creates an unequal playing field that unfairly prevents many persons of color from achieving the dream of home ownership, and this type of systemic and intentional discrimination cannot and will not be tolerated,” said U.S. Attorney Philip R. Sellinger for the District of New Jersey. “It is wholly unacceptable that redlining persists into the 21st Century, and this case demonstrates our commitment to combating redlining and hold banks and others accountable when they engage in unlawful discrimination. Through this agreement, we are taking a major step forward by removing unlawful and discriminatory barriers in residential mortgage lending.”

Redlining is an illegal practice in which lenders avoid providing credit services to individuals living in communities of color because of the race, color or national origin of the residents in those communities. The complaint filed in federal court today alleges that from at least 2015 to 2021, Lakeland failed to provide mortgage lending services to Black and Hispanic neighborhoods in the Newark, New Jersey, metropolitan area, that all its branches were located in majority-white neighborhoods and that its loan officers did not serve the credit needs of Black and Hispanic neighborhoods in and around Newark.

Under the proposed consent order, which is subject to court approval and was filed today in the U.S. District Court for the District of New Jersey along with a complaint, Lakeland has agreed to do the following:

• Invest at least $12 million in a loan subsidy fund for residents of Black and Hispanic neighborhoods in the Newark area; $750,000 for advertising, outreach and consumer education; and $400,000 for development of community partnerships to provide services that increase access to residential mortgage credit.
• Open two new branches in neighborhoods of color, including at least one in the city of Newark; ensure at least four mortgage loan officers are dedicated to serving all neighborhoods in and around Newark; and employ a full-time Community Development Officer who will oversee the continued development of lending in neighborhoods of color in the Newark area.
• Maintain an expanded Community Reinvestment Act Assessment Area that includes Essex, Somerset and Union counties.

Lakeland has agreed to settle this matter without contested litigation and worked cooperatively with the department to remedy the redlining concerns that were identified.

In October 2021, Attorney General Merrick B. Garland launched the Justice Department’s Combating Redlining Initiative, a coordinated enforcement effort to address this persistent form of discrimination against communities of color. The initiative is expanding the department’s reach by strengthening partnerships with U.S. Attorneys’ Offices around the country, regulatory partners and its partners in state Attorneys General offices. Since the initiative was launched, the department has announced four redlining cases and settlements with a combined $38 million in relief for communities that have been the victims of lending discrimination. This includes the $20 million settlement with Trident Mortgage Company — the second largest settlement in Justice Department history.

Additional information about the section’s fair lending enforcement can be found at www.justice.gov/fairhousing. Individuals may report lending discrimination by calling the Justice Department’s housing discrimination tip line at 1-833-591-0291, or submitting a report online. Individuals may also report civil rights violations through https://www.justice.gov/usao-nj/civil-rights-enforcement or call the U.S. Attorney’s Civil Rights Hotline at (855) 281-3339. View the Spanish translation of this press release here.

Former prisoner transport officer Anthony Buntyn, 55, was convicted of a felony civil rights offense for abusing detainees in his care.

According to court documents and evidence presented at trial, Buntyn was a prisoner transport officer employed by Prisoner Transportation Services of America (PTS), a company hired by local jails and prisons throughout the country to transport people who had been arrested pursuant to out-of-state warrants and needed to be transported back to the states that had issued the warrants. Buntyn was the supervising officer on a March 2017 PTS transport that stopped in New Mexico during a cross-country trip. 

“Prisoner transport officers, even those employed by private companies, must abide by our civil rights laws and protect the constitutional rights of people in their custody,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously enforce our nation’s laws to ensure that the officers who break the law — including those who are driving the nation’s backroads in transport vans and may therefore wrongly believe they can act with impunity — are held accountable.”

“Detainees are entitled to basic human dignity,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Those who are responsible for their detention, from transport personnel to law enforcement and corrections officers, have the same duty to protect the rights and safety of their charges. Any abuse of detainees or failure to provide basic necessities is a violation of that trust and a violation of the law, and it will be roundly prosecuted.”

Former PTS Agent Buntyn was convicted of depriving detainees on the transport of their constitutional right to be free from an officer’s deliberate indifference to serious health and safety risks to the detainees. Evidence at trial established that the defendant knowingly created, and otherwise subjected the detainees to, dangerous, painful, and unhealthy conditions on the transport van. Specifically, evidence at trial showed that the defendant would retaliate against detainees who complained, by handcuffing the detainees behind their backs and forcing them to remain for hours in a small segregation cage inside the van; by depriving detainees of meals and access to water while they remained in the cage; by cranking up the heat in the already-hot van in retaliation for detainees complaining that, as they passed through the southwestern desert, they were in danger of overheating; and by failing to provide the detainees with required restroom breaks, until the detainees were left with no choice but to urinate in empty bottles or on the floor.

Buntyn was acquitted of a use of force and an obstruction of justice charge.

A date for the sentencing hearing has not yet been announced.

Assistant Attorney General Clarke and U.S. Attorney Uballez for the District of New Mexico made the announcement.

This case was investigated by the FBI Kansas City Field Office and was prosecuted by Assistant U.S.  Attorney Kimberly A. Brawley for the District of New Mexico and Trial Attorney Laura Gilson of the Justice Department’s Civil Rights Division, with assistance from Special Litigation Counsel Samantha Trepel.

A former Chicago Police Officer has been indicted on a federal civil rights charge for allegedly kidnapping and sexually abusing an individual while on duty.

James Sajdak, 64, of Chicago, was charged with one count of deprivation of rights under color of law, according to an indictment unsealed today in the U.S. District Court for the Northern District of Illinois. Sajdak is alleged to have kidnapped and sexually abused the victim in Chicago on March 5, 2019.

The charge in the indictment is punishable by a maximum sentence of life in federal prison. Sajdak pleaded not guilty today during his arraignment before U.S. Magistrate Judge Susan E. Cox. A status hearing was scheduled for Oct. 12 before U.S. District Judge John J. Tharp Jr. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney John R. Lausch Jr. for the Northern District of Illinois and Special Agent in Charge Ashley T. Johnson for the FBI Chicago Field Office made the announcement.

Assistant U.S. Attorney Alexandra Morgan for the Northern District of Illinois is prosecuting the case.

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

El Departamento de Justicia anunció el día de hoy un acuerdo para resolver alegaciones de que Lakeland Bank (Lakeland) participó en un patrón o práctica de discriminación en el ámbito crediticio al practicar “exclusión financiera” (conocido como “redlining” en inglés) en la zona metropolitana de Newark, incluyendo en vecindarios en los condados de Essex, Somerset y Union en New Jersey. Esta resolución es parte de la Iniciativa para Combatir la Exclusión Financiera a nivel nacional del Departamento de Justicia y representa el tercer acuerdo más grande contra la exclusión financiera en la historia del Departamento.

"Las instituciones financieras que se niegan a proveer servicios de préstamos hipotecarios a las comunidades de color no solo contribuyen a la persistente disparidad racial de riqueza que existe en este país, sino que violan las leyes federales", dijo el Fiscal General Merrick B. Garland. “El acuerdo con Lakeland anunciado el día de hoy representa el compromiso continuo del Departamento de Justicia para abordar la exclusión financiera moderna y garantizar que todos los estadounidenses tengan igualdad de oportunidades crediticias, independientemente de su raza u origen nacional”.

“Poner fin a la exclusión financiera es un paso crítico en nuestra labor para cerrar las disparidades de riqueza cada vez más amplias entre las comunidades de color y otras”, dijo la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Este acuerdo demuestra nuestro firme compromiso con combatir la exclusión financiera moderna y responsabilizar a los bancos y otros prestamistas cuando les niegan a las personas de color acceso parejo a oportunidades crediticias. Por medio de este acuerdo, enviamos un mensaje firme a la industria financiera de que no soportaremos las barreras discriminatorias e ilegales a los préstamos hipotecarios residenciales”.

“La exclusión financiera crea una desigualdad de las condiciones de juego que injustamente impide que muchas personas de color logren el sueño de ser propietarios de viviendas y este tipo de discriminación sistemática e intencional no puede y no será tolerado”, dijo el Fiscal Federal Philip R. Sellinger del Distrito de New Jersey. “Es completamente inaceptable que la exclusión financiera persista en el siglo XXI y este caso demuestra nuestro compromiso con combatir la exclusión financiera y responsabilizar a los bancos y a otros cuando participen en discriminación ilícita. Por medio de este acuerdo, damos un gran paso adelante al remover las barreras ilegales y discriminatorias a los préstamos hipotecarios residenciales”.

La exclusión financiera es una práctica ilegal en la que prestamistas evitan la prestación de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color u origen nacional de los residentes de tales comunidades. La demanda que se presentó en el tribunal federal hoy alega que, desde al menos el 2015 hasta el 2021, Lakeland no prestó servicios de préstamos hipotecarios en vecindarios negros e hispanos en la zona metropolitana de Newark, New Jersey, que todas sus sucursales estaban ubicadas en vecindarios de mayoría blanca y que sus oficiales de crédito no atendían las necesidades de crédito de los vecindarios negros e hispanos en y alrededor de Newark.

Conforme a la orden de consentimiento propuesta, la cual queda sujeta a la aprobación del tribunal y fue presentada hoy ante el Tribunal Federal de Distrito para el Distrito de New Jersey junto con una demanda, Lakeland ha acordado hacer lo siguiente:

Invertir al menos $12 millones en un fondo de préstamos subvencionados para los residentes de vecindarios negros e hispanos en el área de Newark; $750,000 en anuncios, proyección comunitaria y educación financiera para el consumidor; y $400,000 para desarrollar asociaciones comunitarias con el fin de prestar servicios que mejoren el acceso a los préstamos hipotecarios residenciales.

Abrir dos sucursales nuevas en vecindarios de color, incluyendo al menos una en la ciudad de Newark; garantizar que al menos cuatro oficiales de crédito hipotecario estén dedicados a servir a todos los vecindarios en y alrededor de Newark; y emplear a un oficial de desarrollo comunitario que supervisará el desarrollo continuo del crédito en vecindarios de color en el área de Newark.

Mantener un área de evaluación de la Ley de Reinversión Comunitaria (Community Reinvestment Act en inglés) que incluya a los condados de Essex, Somerset y Union.

Lakeland ha acordado resolver este asunto sin litigios de disputa y trabajó de manera cooperativa con el Departamento para remediar las inquietudes de exclusión financiera que fueron identificadas.

En octubre de 2021, el Fiscal General Merrick B. Garland anunció la Iniciativa para Combatir la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley cuyo objetivo es abordar esta forma persistente de discriminación contra comunidades de color. La iniciativa está expandiendo el alcance del Departamento al fortalecer las asociaciones con Fiscalías Federales por todo el país, socios regulatorios y nuestros socios en las Fiscalías Generales Estatales. Desde que se emprendió la iniciativa, el Departamento ha anunciado cuatro casos de exclusión financiera y acuerdos por un total combinado de $38 millones en indemnización a las comunidades que han sido víctimas de discriminación en el ámbito crediticio. Eso incluye el acuerdo de $20 millones con Trident Mortgage Company – el segundo acuerdo más grande en la historia del Departamento de Justicia.

Se puede encontrar información adicional sobre los esfuerzos de la Sección por hacer cumplir las leyes de préstamos justos en www.justice.gov/fairhousing. Los individuos pueden denunciar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea. Los individuos también pueden reportar violaciones de los derechos civiles en https://www.justice.gov/usao-nj/civil-rights-enforcement o llamando a la Línea Directa de Derechos Civiles del Fiscal General al (855) 281-3339.

El Departamento de Justicia anunció el día de hoy un acuerdo para resolver alegaciones de que Lakeland Bank (Lakeland) participó en un patrón o práctica de discriminación en el ámbito crediticio al practicar “exclusión financiera” (conocido como “redlining” en inglés) en la zona metropolitana de Newark, incluyendo en vecindarios en los condados de Essex, Somerset y Union en New Jersey. Esta resolución es parte de la Iniciativa para Combatir la Exclusión Financiera a nivel nacional del Departamento de Justicia y representa el tercer acuerdo más grande contra la exclusión financiera en la historia del Departamento.

"Las instituciones financieras que se niegan a proveer servicios de préstamos hipotecarios a las comunidades de color no solo contribuyen a la persistente disparidad racial de riqueza que existe en este país, sino que violan las leyes federales", dijo el Fiscal General Merrick B. Garland. “El acuerdo con Lakeland anunciado el día de hoy representa el compromiso continuo del Departamento de Justicia para abordar la exclusión financiera moderna y garantizar que todos los estadounidenses tengan igualdad de oportunidades crediticias, independientemente de su raza u origen nacional”.

“Poner fin a la exclusión financiera es un paso crítico en nuestra labor para cerrar las disparidades de riqueza cada vez más amplias entre las comunidades de color y otras”, dijo la Fiscal General Auxiliar Kristen Clarke de la División de Derechos Civiles del Departamento de Justicia. “Este acuerdo demuestra nuestro firme compromiso con combatir la exclusión financiera moderna y responsabilizar a los bancos y otros prestamistas cuando les niegan a las personas de color acceso parejo a oportunidades crediticias. Por medio de este acuerdo, enviamos un mensaje firme a la industria financiera de que no soportaremos las barreras discriminatorias e ilegales a los préstamos hipotecarios residenciales”.

“La exclusión financiera crea una desigualdad de las condiciones de juego que injustamente impide que muchas personas de color logren el sueño de ser propietarios de viviendas y este tipo de discriminación sistemática e intencional no puede y no será tolerado”, dijo el Fiscal Federal Philip R. Sellinger del Distrito de New Jersey. “Es completamente inaceptable que la exclusión financiera persista en el siglo XXI y este caso demuestra nuestro compromiso con combatir la exclusión financiera y responsabilizar a los bancos y a otros cuando participen en discriminación ilícita. Por medio de este acuerdo, damos un gran paso adelante al remover las barreras ilegales y discriminatorias a los préstamos hipotecarios residenciales”.

La exclusión financiera es una práctica ilegal en la que prestamistas evitan la prestación de servicios crediticios a individuos que viven en comunidades de color por motivos de la raza, el color u origen nacional de los residentes de tales comunidades. La demanda que se presentó en el tribunal federal hoy alega que, desde al menos el 2015 hasta el 2021, Lakeland no prestó servicios de préstamos hipotecarios en vecindarios negros e hispanos en la zona metropolitana de Newark, New Jersey, que todas sus sucursales estaban ubicadas en vecindarios de mayoría blanca y que sus oficiales de crédito no atendían las necesidades de crédito de los vecindarios negros e hispanos en y alrededor de Newark.

Conforme a la orden de consentimiento propuesta, la cual queda sujeta a la aprobación del tribunal y fue presentada hoy ante el Tribunal Federal de Distrito para el Distrito de New Jersey junto con una demanda, Lakeland ha acordado hacer lo siguiente:

Invertir al menos $12 millones en un fondo de préstamos subvencionados para los residentes de vecindarios negros e hispanos en el área de Newark; $750,000 en anuncios, proyección comunitaria y educación financiera para el consumidor; y $400,000 para desarrollar asociaciones comunitarias con el fin de prestar servicios que mejoren el acceso a los préstamos hipotecarios residenciales.

Abrir dos sucursales nuevas en vecindarios de color, incluyendo al menos una en la ciudad de Newark; garantizar que al menos cuatro oficiales de crédito hipotecario estén dedicados a servir a todos los vecindarios en y alrededor de Newark; y emplear a un oficial de desarrollo comunitario que supervisará el desarrollo continuo del crédito en vecindarios de color en el área de Newark.

Mantener un área de evaluación de la Ley de Reinversión Comunitaria (Community Reinvestment Act en inglés) que incluya a los condados de Essex, Somerset y Union.

Lakeland ha acordado resolver este asunto sin litigios de disputa y trabajó de manera cooperativa con el Departamento para remediar las inquietudes de exclusión financiera que fueron identificadas.

En octubre de 2021, el Fiscal General Merrick B. Garland anunció la Iniciativa para Combatir la Exclusión Financiera del Departamento de Justicia, un esfuerzo coordinado de aplicación de la ley cuyo objetivo es abordar esta forma persistente de discriminación contra comunidades de color. La iniciativa está expandiendo el alcance del Departamento al fortalecer las asociaciones con Fiscalías Federales por todo el país, socios regulatorios y nuestros socios en las Fiscalías Generales Estatales. Desde que se emprendió la iniciativa, el Departamento ha anunciado cuatro casos de exclusión financiera y acuerdos por un total combinado de $38 millones en indemnización a las comunidades que han sido víctimas de discriminación en el ámbito crediticio. Eso incluye el acuerdo de $20 millones con Trident Mortgage Company – el segundo acuerdo más grande en la historia del Departamento de Justicia.

Se puede encontrar información adicional sobre los esfuerzos de la Sección por hacer cumplir las leyes de préstamos justos en www.justice.gov/fairhousing. Los individuos pueden denunciar incidentes de discriminación en el ámbito crediticio llamando a la línea informativa del Departamento de Justicia para discriminación en la vivienda al 1-833-591-0291 o presentando un informe en línea. Los individuos también pueden reportar violaciones de los derechos civiles en https://www.justice.gov/usao-nj/civil-rights-enforcement o llamando a la Línea Directa de Derechos Civiles del Fiscal General al (855) 281-3339.

Packaging Corporation of America (PCA), headquartered in Illinois, has agreed to pay $2.5 million in civil penalties to resolve allegations that it violated the Clean Air Act’s General Duty Clause and Risk Management Program Regulations at its containerboard production mill in DeRidder, Louisiana.

In the complaint, filed today with the proposed settlement, the United States and the Louisiana Department of Environmental Quality (LDEQ) allege nine Clean Air Act violations that stem, in part, from a fatal explosion and accidental release at the DeRidder mill on Feb. 8, 2017. The explosion – which killed three workers and injured seven others – launched a 100,000-gallon storage tank into the air and over a six-story building before it landed on mill equipment approximately 400 feet away. The blast also caused property damage and released extremely hazardous substances into the environment. The Environmental Protection Agency (EPA) inspected the DeRidder mill after the explosion, and uncovered additional Clean Air Act violations.

“PCA violated the Clean Air Act and accompanying regulations at its DeRidder mill, resulting in an explosion that caused the senseless deaths of three workers, while placing other workers and the surrounding community in danger,” said Assistant Attorney General Todd Kim of the Justice Department’s Environmental and Natural Resources Division. “The department will continue enforcing environmental mandates to save lives and protect air quality — especially against companies with a history of misconduct, like PCA.”

“The Clean Air Act was created to provide guidelines for companies such as PCA to adhere to in order to keep our communities safe from hazardous substances,” said U.S. Attorney Brandon Brown for the Western District of Louisiana. “Sadly, it took an explosion and the loss of lives to highlight PCA’s failure to adhere to some of these guidelines. The Civil Division in the Western District of Louisiana has an important job and welcomes the opportunity to continue to work alongside our federal and local partners to ensure these laws are abided by.”

“This case demonstrates the tragic impacts to human life and the environment that can result from failures to follow appropriate chemical accident prevention and preparation requirements,” said Larry Starfield, Acting Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “This settlement both holds the Packaging Corporation of America accountable for failures that contributed to this accident and sends a clear message to corporations across the country on the importance of implementing appropriate chemical safety measures.”

“This settlement holds Packaging Corporation of America accountable for the harm it has caused to the environment and to the individuals who lost their lives on Feb. 8, 2017,” said Dr. Earthea Nance, EPA Region 6 Administrator. “Legal action will be pursued for companies who fail to safeguard their workers’ well-being. We offer our condolences for all individuals affected by this tragedy.”   

“We join with our federal partners in taking action to ensure that this tragic occurrence is properly addressed,” said Dr. Chuck Carr Brown, LDEQ Secretary. “Those responsible must be held accountable.”

Section 112(r) of the Clean Air Act and its accompanying regulations are designed to prevent the accidental release of hazardous substances, like those at the DeRidder mill. Congress added section 112(r) in response to the 1984 catastrophic release of methyl isocyanate in Bhopal, India, that killed more than 3,400 people and injured more than 200,000 others. Under the Clean Air Act, facilities like PCA’s are required to identify hazards, design and maintain a safe facility, minimize the consequences of accidental releases that do occur, and comply with regulatory prevention measures. Failing to comply with these requirements increases the risk of accidents and threatens surrounding communities.

Reducing the risk to human health and the environment by decreasing the likelihood of chemical accidents at chemical facilities is a top priority for EPA’s enforcement and compliance assurance program.

The proposed stipulation of settlement is subject to a 45-day public comment period and court review and approval. A copy of the stipulation of settlement is available on the Department of Justice website at www.justice.gov/enrd/Consent_Decrees.html.

The Department of Justice announced today that two men, Devan Nathanial Johnson, 28, and Brandon Wayne Killian, 31, pleaded guilty to committing a hate crime in Shawnee, Oklahoma. 

On Jan. 18, 2022, a federal grand jury in the Western District of Oklahoma returned a two-count Indictment charging both defendants, who are white, with physically assaulting a Black man — as well as the Black man’s white friend — in the parking lot of the Brickhouse Saloon in Shawnee, Oklahoma. The indictment alleges that the assault occurred because of the Black man’s race and color.

According to statements made before District Judge Bernard Jones at the plea hearings in the U.S. District Court for the Western District of Oklahoma this week, both defendants admitted to assaulting the Black man in the parking lot of the bar on June 22, 2019, because the man was Black. The assault resulted in bodily injury to the victim.

“These two defendants are being held accountable for subjecting a Black man to a brutal and racially motivated assault,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “Convictions like these make clear that the Department of Justice will continue to investigate and prosecute individuals who violently assault others because of their race or the color of their skin.”  

“The defendants targeted a Black victim for a brutal attack simply because of the color of his skin,” said U.S. Attorney Robert J. Troester for the Western District of Oklahoma. “Hate-fueled criminal conduct is morally reprehensible and can never be acceptable in a civilized society. We will continue to use every tool at our disposal to combat all hate crimes.”

“Violent acts of hate and racism have no place in our community and will not be tolerated,” said Special Agent in Charge Edward J. Gray of the FBI Oklahoma City Field Division. “The FBI will continue to use all authority granted to us by federal law to investigate crimes motivated by bias, and ensure the perpetrators are brought to justice.”

At sentencing, each defendant faces a maximum penalty of 10 years in prison, three years of supervised release and a fine of up to $ 250,000 for the violation. Both defendants will also be ordered to pay restitution to the victim of their crime.

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

The FBI Oklahoma City Field Office investigated the case. Assistant U.S. Attorney Julia Barry for the Western District Oklahoma and Trial Attorney Avner Shapiro of the Civil Rights Division’s Criminal Section are prosecuting the case.

The Department of Justice has selected an additional 16 federally recognized Tribes to participate in the continued expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides Tribal governments with means to access, enter and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division.

“The Department is committed to strengthening our government-to-government partnership with Tribal nations, including providing critical access to criminal databases through the Tribal Access Program,” said Deputy Attorney General Lisa O. Monaco. “With today’s announcement, 16 additional participating Tribes will be able to register sex offenders, protect victims of domestic violence, prevent prohibited persons from obtaining firearms, and help locate missing people.”

The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to CJIS systems. With these additional Tribes, there are now 123 federally recognized Tribes participating in TAP.

The Department of Justice began TAP in 2015 in response to concerns raised by Tribal leaders about the need to have direct access to federal systems. Using TAP, Tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children. 

The following Tribes have been newly selected for participation in TAP:

1. Chickaloon Native Village
2. Hoh Indian Tribe
3. Kickapoo Traditional Tribe of Texas
4. Lower Sioux Indian Community in the State of Minnesota
5. Oglala Sioux Tribe
6. Otoe-Missouria Tribe of Indians, Oklahoma
7. Paiute-Shoshone Tribe of the Fallon Reservation and Colony, Nevada
8. Poarch Band of Creek Indians
9. Prairie Island Indian Community in the State of Minnesota
10. Pueblo of Santa Clara, New Mexico
11. Puyallup Tribe of the Puyallup Reservation
12. Quapaw Nation
13. Robinson Rancheria
14. Santee Sioux Nation, Nebraska
15. Skokomish Indian Tribe
16. Three Affiliated Tribes of the Fort Berthold Reservation, North Dakota

TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).

For more information on TAP, visit Tribal Access Program (TAP) | TRIBAL | Department of Justice.

Bladimir Moreno, 55, pleaded guilty in federal court in Tampa, Florida, to charges of conspiracy under the Racketeer Influenced and Corrupt Organizations (RICO) Act and conspiracy to commit forced labor. A federal grand jury in the Middle District of Florida had previously returned a six-count indictment against multiple defendants for their roles in a federal racketeering conspiracy that victimized Mexican H-2A workers who, between 2015 and 2017, had worked in the United States harvesting fruits, vegetables and other agricultural products. 

“The scheme these defendants employed trapped the victims through fear of serious harm if they did not continue to toil away for the defendants’ profit,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is committed to combating human trafficking in all its forms, including prosecuting agricultural employers who break the law to subject their vulnerable migrant farm workers to forced labor.”

“Forcing individuals to work against their will using abusive and coercive tactics is not only unconscionable but illegal,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “We will continue to work with our human trafficking task forces to stamp out these illegal practices throughout our district and state.”

According to court documents, Moreno owned, operated and managed Los Villatoros Harvesting (LVH), a farm labor contracting company, that functioned as a criminal enterprise compelling victims to work in Florida, Kentucky, Indiana, Georgia and North Carolina. After charging Mexican farm workers exorbitant sums to come into the United States on short-term, H-2A, agricultural visas to work for LVH, Moreno and his co-conspirators coerced over a dozen workers into providing long hours of physically demanding agricultural labor, six to seven days a week, for de minimis pay. Moreno and his co-conspirators used various coercive means, including imposing debts on workers; confiscating the workers’ passports; subjecting workers to crowded, unsanitary and degrading living conditions; verbally abusing and humiliating the workers; threatening workers with arrest, jailtime and deportation; isolating workers by preventing them from interacting with anyone other than LVH employees; and threatening to physically harm the workers’ family members back in Mexico if the workers failed to comply with their demands. In addition to conspiring to subject H-2A workers to forced labor, Moreno and his coconspirators also harbored H-2A workers in the United States after their visas had expired for financial gain and committed visa fraud and fraud in foreign labor contracting. 

Earlier this year, three co-defendants who had worked for Moreno and assisted him in operating LVH pleaded guilty to related offenses. Christina Gamez, 43, a U.S. citizen, who worked for LVH as a bookkeeper, manager and supervisor, pleaded guilty to RICO conspiracy. Efrain Cabrera Rodas, 32, a citizen of Mexico, who worked for LVH as a recruiter, manager and supervisor, also pleaded guilty to RICO conspiracy. Guadalupe Mendes Mendoza, 45, a citizen of Mexico, who worked for LVH as a manager and supervisor, pleaded guilty to conspiring to obstruct a federal investigation.

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

The announcement was made by Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division and U.S. Attorney Roger Handberg for the Middle District of Florida.

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

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

The Justice Department announced today that Maryland-based developer Stavrou Associates Inc. and related entities have agreed to pay $185,000 to settle claims that they violated the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) by failing to build 11 multifamily housing complexes in Maryland with required accessible features for people with disabilities. As part of the settlement, the defendants also agreed to make extensive retrofits to remove accessibility barriers at the complexes.

The government’s lawsuit, filed today, raises similar allegations against a second Maryland-based developer, Humphrey Stavrou Associates Inc., and related entities, which were involved in building six other multifamily housing complexes in Maryland. The lawsuit involving those properties is unaffected by today’s settlement.

“The Justice Department is committed to ensuring that multifamily housing properties are accessible to people with disabilities,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “When the retrofits required by our settlement are completed, people with disabilities will have equal access to more than 1,000 residential units in Maryland.”

“The requirement that housing complexes be built with accessible features for people with disabilities is not new,” said U.S Attorney Erek L. Barron for the District of Maryland. “Developers must include accessible features and we will hold accountable those who do not.”

The combined 17 properties at issue in the litigation were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program and the HOME Investment Partnerships Program, and some of the properties are specifically marketed as housing for seniors.

The settlement, which must still be approved by the U.S. District Court for the District of Maryland, requires the defendants to pay all costs related to the retrofits, $175,000 into a settlement fund to compensate individuals harmed by the inaccessible housing and civil penalties of $10,000 to the government.

Under the settlement, the defendants will, among other things, replace steeply-sloped walkways and install new walkways to help residents reach units, amenities, mailboxes and entrances to the properties, remove obstacles from pedestrian pathways, widen doorways and modify bathrooms and kitchens so they are accessible for individuals who use wheelchairs. The settlement also requires the defendants to receive training about the FHA and the ADA, to ensure that their future multifamily housing construction complies with these laws and to provide periodic reports to the Justice Department. The 11 complexes are:

1. Villages at Belle Hill, Elkton, Maryland
2. Burgess Mill Station I, Ellicott City, Maryland
3. Burgess Mill Station II, Ellicott City, Maryland
4. River Point Apartments, Essex, Maryland
5. Hammarlee House Apartments, Glen Burnie, Maryland
6. Overland Gardens, Landover, Maryland
7. Rainier Manor Phase II Apartments, Mount Rainier, Maryland
8. Chapel Springs Senior Apartments, Perry Hall, Maryland
9. Hampshire Village, Silver Spring, Maryland
10. Windsor Crossing Family Apartments, Suitland, Maryland
11. Windsor Crossing Senior Apartments, Suitland, Maryland

The six complexes built by Humphrey Stavrou Associates Inc. that are the subject of the continuing lawsuit are:

1. Pin Oak Village, Bowie, Maryland
2. Woodland Creek Apartments (formerly “Henson Creek Manor I and II Apartments”), Fort Washington, Maryland
3. Woodside Village Apartments, Fort Washington, Maryland
4. Acclaim at Lake Largo (formerly “Largo Center Apartments”), Largo, Maryland
5. Randolph Village Senior Apartments, Silver Spring, Maryland
6. Vistas at Lake Largo, Upper Marlboro, Maryland

Individuals who believe they or someone they know may have had difficulties because of the inaccessible conditions at any of these properties should send an email to the Justice Department at fairhousing@usdoj.gov or leave a message at 1-833-591-0291, selecting option 1 for English, selecting option 4 for housing accessibility for persons with disabilities, and selecting option 4 for Stavrou Associates Inc. 

The Justice Department’s Civil Rights Division enforces the FHA, which prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. This law requires that multifamily housing buildings with four or more units constructed after March 13, 1991, have basic accessible features. Enacted in 1990, the ADA requires that places of public accommodation, such as rental offices at multifamily housing complexes constructed after Jan. 26, 1993, be accessible to persons with disabilities. 

More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt. Individuals may report disability discrimination or other forms of housing discrimination by calling the Justice Department at 1-833-591-0291, or submitting a report online at www.civilrights.justice.gov. Individuals also may report discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777, or by filing a complaint online.

The Justice Department announced the filing of a lawsuit against Missouri-based LJLD LLC and Westminster Properties LLC, the owners, developers and builders of a multifamily housing complex in St. Louis, Missouri. The lawsuit alleges that these defendants failed to design and construct housing units and related facilities at the Bridgewater Residences Apartments to make them accessible to persons with disabilities in compliance with the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA).   

The lawsuit arose from a complaint by Metropolitan St. Louis Equal Housing and Opportunity Council (EHOC) filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it determined that LJLD LLC and Westminster Properties LLC violated the FHA and issued a charge of discrimination. After EHOC chose to have the matter decided in federal court, HUD referred to the matter to the Justice Department. 

“For more than three decades, federal law has required multifamily housing complexes to be designed and built with accessible features,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice is committed to protecting the rights of people with disabilities to ensure that they have equal access to housing, including accessible parking, common areas and related facilities.”

“This lawsuit seeks changes in an apartment complex in which the visually impaired risk injury simply getting the mail,” said U.S. Attorney Sayler A. Fleming for the Eastern District of Missouri. “Wheelchair users may not be able to get into or use bathrooms, adjust their own thermostats, safely get to their patios or access the complex’s office, dog park and other amenities.”

“Builders and developers of multifamily housing complexes must adhere to the requirements of the Fair Housing Act to ensure that persons with disabilities have equal opportunity to live in these properties,” said Demetria McCain, HUD’s Principal Deputy Assistant Secretary for Fair Housing and Equal Opportunity. “HUD applauds today’s action and remains committed to working with the Justice Department to vigorously enforce our nation’s fair housing laws.”

The lawsuit, which was filed in the U.S. District Court for the Eastern District of Missouri, alleges that the Bridgewater Residences Apartments have significant accessibility barriers including excessively sloped pedestrian routes from apartment units to the public street and to site amenities (such as the dog park, mail center, dumpster, management/leasing office); barriers to accessible parking; inaccessible bathrooms; inaccessible door hardware; and insufficient maneuvering space at entrances to common use areas that make those entrances inaccessible to many people with disabilities.

The lawsuit seeks an order (1) requiring the defendants to bring the properties into compliance with the FHA and the ADA, (2) requiring the defendants to pay monetary damages to persons harmed by the lack of accessibility, as well as civil penalties to the United States to vindicate the public interest, and (3) prohibiting the defendants from designing or constructing future residential properties in a manner that discriminates against persons with disabilities. Bridgewater V LLC, the current owner of the apartment complex, also is named in the lawsuit as a necessary party to provide access to the property for the required retrofits.

Individuals who may have been affected by the lack of accessibility at these properties should call the Civil Rights Division’s Housing Discrimination Hotline at 1-833-591-0291, press 1 for English, press 4 for housing accessibility for persons with disabilities or the design and construction of accessible housing cases, then press 7 for United States v. LJLD (Bridgewater) to leave a message, or send an email to fairhousing@usdoj.gov.  

The FHA prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, it requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps or steep slopes to all ground-floor units. Enacted in 1990, the ADA requires, among other things, that places of public accommodation – such as rental offices – at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities. More information about the Civil Rights Division and the laws it enforces is available at www.usdoj.gov/crt.  

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

The U.S. Department of Justice Drug Enforcement Administration (DEA) announced today the results of an enforcement operation that spanned from May to September and resulted in significant fentanyl seizures across the United States.

As part of the One Pill Can Kill initiative, the DEA and its law enforcement partners seized more than 10.2 million fentanyl pills and approximately 980 pounds of fentanyl powder during the period of May 23 through Sept. 8, 2022. The amount of fentanyl taken off the streets during this surge is equivalent to more than 36 million lethal doses removed from the illegal drug supply. Additionally, 338 weapons were seized, including rifles, shotguns, pistols, and hand grenades.

Of the 390 cases investigated during this period, 51 cases are linked to overdose poisonings and 35 cases link directly to one or both of the primary Mexican cartels responsible for the majority of fentanyl in the United States – the Sinaloa Cartel and the Jalisco New Generation Cartel (CJNG). In addition, 129 investigations are linked to social media platforms, including Snapchat, Facebook Messenger, Instagram, and TikTok. These results build upon the One Pill Can Kill Phase II results announced by DEA Administrator Anne Milgram in December 2021.

“Across the country, fentanyl is devastating families and communities, and we know that violent, criminal drug cartels bear responsibility for this crisis,” said Attorney General Merrick B. Garland. “The Justice Department, including the extraordinary professionals of the DEA, is working to disrupt and dismantle the operations of these cartels, remove deadly fentanyl from our communities, and save Americans’ lives.”

“For the past year, confronting the fentanyl crisis has been the top priority for DEA. The most urgent threat to our communities, our kids, and our families are the Sinaloa Cartel and CJNG who are mass producing and supplying the fentanyl that is poisoning and killing Americans,” said DEA Administrator Anne Milgram. “The Sinaloa Cartel and CJNG are ruthless, criminal organizations that use deception and treachery to drive addiction with complete disregard for human life. To save American lives, the DEA is relentlessly focused on defeating the Sinaloa Cartel and CJNG by degrading their operations to make it impossible for them to do business.”

Fentanyl remains the deadliest drug threat facing this nation. In 2021, a record number of Americans – 107,622 – died from a drug poisoning or overdose. Sixty-six percent of those deaths can be attributed to synthetic opioids such as fentanyl.  

Drug traffickers have expanded their inventory to sell fentanyl in a variety of bright colors, shapes, and sizes. Rainbow fentanyl was first reported to DEA in February 2022, and it has now been seized in 21 states.  

Fentanyl is a synthetic opioid that is 50 times more potent than heroin. Just two milligrams of fentanyl, or the amount that could fit on the tip of a pencil, is considered a potentially lethal dose.

As part of DEA’s ongoing efforts to educate the public and encourage parents and caregivers to talk to teens and young adults about the dangers of fake pills and illicit drugs, DEA has also created a new resource, “What Every Parent and Caregiver Needs to Know About Fake Pills.”

In September 2021, DEA launched the One Pill Can Kill enforcement effort and public awareness campaign to combat the fake pill threat and educate the public about the dangers of fentanyl pills being disguised and sold as prescription medications, despite these pills not containing any of the actual medications advertised. The only safe medications are ones prescribed by a trusted medical professional and dispensed by a licensed pharmacist. All other pills are unsafe and potentially deadly.

Additional resources for parents and the community can be found on the DEA’s Fentanyl Awareness page.

Pharmaceutical company Biogen Inc. (Biogen), based in Cambridge, Massachusetts, has agreed to pay $900 million to resolve allegations that it caused the submission of false claims to Medicare and Medicaid by paying kickbacks to physicians to induce them to prescribe Biogen drugs.

The settlement announced today resolves a lawsuit filed and litigated by former Biogen employee Michael Bawduniak against Biogen under the qui tam or whistleblower provisions of the federal 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. The United States may intervene in the action or, as in this case, the relator may proceed with the lawsuit. 

In his lawsuit filed in the District of Massachusetts, Bawduniak alleged that Biogen paid kickbacks to physicians to induce them to prescribe the company’s multiple sclerosis drugs. According to the relator’s complaint, from Jan. 1, 2009, through March 18, 2014, Biogen offered and paid remuneration, including in the form of speaker honoraria, speaker training fees, consulting fees and meals, to health care professionals who spoke at or attended Biogen’s speaker programs, speaker training meetings or consultant programs to induce them to prescribe the drugs Avonex, Tysabri and Tecfidera, in violation of the Anti-Kickback Statute.

“The relator diligently pursued this matter on behalf of the United States for over seven years,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The settlement announced today underscores the critical role that whistleblowers play in complementing the United States’ use of the False Claims Act to combat fraud affecting federal health care programs.”

“We thank Mr. Bawduniak for uncovering this behavior and bringing it to light,” said U.S. Attorney Rachael S. Rollins for the District of Massachusetts. “This matter is an important example of the vital role that whistleblowers and their attorneys can play in protecting our nation’s public health care programs.”

Under the terms of the settlement, Biogen will pay $843,805,187 to the United States and $56,194,813 to 15 states. Bawduniak will receive approximately 29.6% of the federal proceeds from the settlement.

The case is captioned United States ex rel. Bawduniak v. Biogen Idec, Inc., No. 12-cv-10601-IT (D. Mass.), and was monitored by the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of Massachusetts. 

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

A Massachusetts man and a Florida man pleaded guilty today for their roles in perpetrating a foreign exchange trading scheme to steal $30 million from their investor victims.

According to court documents, Patrick Gallagher, 44, of Middleborough, Massachusetts, and Michael Dion, 49, of Orlando, Florida, devised a scheme in which they would solicit victims to invest in their foreign exchange company, Global Forex Management, by promising them large returns based on previous trading results that they had fabricated. They told the victims that their funds would be traded using an online trading platform provided by a co-conspirator’s company, IB Capital. Instead, Gallagher and Dion were working with other co-conspirators in the Netherlands to steal the victim investors’ money. In May 2012, Gallagher and Dion executed their scheme by intentionally creating losing trades for the investors and effectively stole $30 million from their victims. After fabricating the massive trading loss, Gallagher and Dion routed the stolen money through shell companies they had set up all over the world.

Gallagher and Dion each pleaded guilty to one count of conspiracy to commit securities fraud, and each face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

The USPIS is investigating the case.

Trial Attorneys Brittain Shaw, Vasanth Sridharan, and Tian Huang of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Individuals or entities who believe they may be a victim in this case should contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing victimassistance.fraud@usdoj.gov.

Assistant Attorney General Jonathan Kanter issued the following statement regarding the District Court’s decision today in U.S. v. U.S. Sugar and Imperial Sugar.

"We are disappointed in the court’s decision not to block this merger, which would combine one of the largest sugar cane refiners with one of its primary competitors in the Southeastern United States and increase reliance on foreign imports. Further consolidation in the market for this important kitchen staple will have real-world consequences for millions of Americans. We are reviewing the opinion and will determine next steps shortly. We are, as always, grateful for the Antitrust Division staff’s tireless work protecting and promoting competition."

A federal grand jury in Pennsylvania returned an indictment today charging a local man for assaulting a reproductive health care clinic escort in Philadelphia.

According to court documents, Mark Houck, 48, of Kintnersville, Pennsylvania, is alleged to have twice assaulted a man because he was a volunteer reproductive health clinic escort. The two-count indictment charges Houck with a violation of the Freedom of Access to Clinic Entrances (FACE) Act, which makes it a federal crime to use force with the intent to injure, intimidate, and interfere with anyone because that person is a provider of reproductive health care.   

The charges stem from two separate incidents on Oct. 13, 2021, where Houck assaulted the victim, identified in the indictment as “B.L.,” because B.L. was a volunteer escort at the reproductive health care clinic. 

If convicted of the offenses, Houck faces up to a maximum of 11 years in prison, three years of supervised release and fines of up to $350,000.

The FBI Philadelphia Field Office investigated the case. Trial Attorney Sanjay Patel of the Civil Rights Division and Assistant U.S. Attorney Anita Eve for the Eastern District of Pennsylvania are prosecuting the case.

An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty.

The Justice Department announced that Axel C. Cox, 23, has been charged with hate crime and arson violations for burning a cross in his front yard to threaten, interfere with and intimidate a Black family in Gulfport, Mississippi.

According to court documents, Cox is charged with one count of criminal interference with the right to fair housing and one count of using fire to commit a federal felony. The indictment alleges that on Dec. 3, 2020, Cox threatened, intimidated and interfered with a Black family’s enjoyment of their housing rights. According to the indictment, Cox burned a cross in his front yard, and used threatening and racially derogatory remarks toward his Black neighbors. Cox allegedly chose to burn the cross because of the victims’ race.

If convicted, Cox faces up to 10 years in prison for interfering with the victims’ housing rights and a mandatory minimum of 10 years in prison, consecutive to any other sentence, for using fire to commit a federal felony. Cox also faces a fine of up to $250,000 with respect to each charge.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney Darren J. LaMarca for the Southern District of Mississippi and Special Agent in Charge Jermicha Fomby for the FBI Jackson Field Office made the announcement.

Assistant U.S. Attorney Andrea Cabell Jones for the Southern District of Mississippi and Trial Attorney Noah Coakley II of the Justice Department’s Civil Rights Division are prosecuting the case.

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

An indictment is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

A former parole officer with the West Virginia Division of Corrections and Rehabilitation was arrested today after being charged in federal court with civil rights violations, obstruction of justice and making false statements to federal investigators.

Anthony DeMetro, 44, was charged in a seven-count indictment unsealed today, with five counts of acting under color of law to deprive individuals of their civil rights, one count of obstruction of justice and one count of false statements to federal investigators. The indictment alleges that, while DeMetro was acting in his official capacity as a parole officer, he sexually assaulted two victims on a total of five separate occasions. The indictment further alleges that DeMetro lied to a state investigator and to federal investigators about his sexual misconduct. 

If convicted, DeMetro faces maximum penalties of life imprisonment on three of the civil rights counts, 20 years on the obstruction of justice count, five years on the false statements count and one year on each of the remaining civil rights counts. 

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division, U.S. Attorney William S. Thompson for the Southern District of West Virginia and Special Agent in Charge Michael D. Nordwall of the FBI Pittsburgh Field Division made the announcement.

The FBI Pittsburgh Field Division investigated this case. Trial Attorneys Kathryn E. Gilbert and Nikhil Ramnaney of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Monica Coleman for the Southern District of West Virginia are prosecuting this case.

Anyone with information about Anthony DeMetro should contact the FBI’s Charleston Resident Agency at 304-346-2300.

An indictment is merely an allegation, and the defendant is presumed innocent unless proven guilty.

A federal jury in Atlanta convicted a South Carolina man today of fraudulently obtaining a $300,000 forgivable Paycheck Protection Program (PPP) loan guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

According to court documents and evidence presented at trial, Travis Crosby, 32, of Wellford, conspired to submit a PPP loan application on behalf of Crosby’s company, Faithful Transport Services LLC (Faithful Transport). The loan application falsely inflated the number of employees and average monthly payroll for Faithful Transport, inducing a larger PPP loan than Crosby could legitimately obtain. Crosby and a co-conspirator also caused the submission of a forged tax document to support the false statements in the loan application. Crosby then engaged in a series of sham transactions with various individuals to make it appear that he was paying them payroll for work at Faithful Transport when, in reality, these individuals returned the vast majority of the funds to Crosby.

Crosby was convicted of conspiracy to commit bank fraud, bank fraud, making a false statement to a bank, and money laundering. He is scheduled to be sentenced on Jan. 10, 2023, and faces a maximum penalty of 30 years in prison for conspiracy to commit bank fraud, bank fraud, and making a false statement to a bank, and 20 years for money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Crosby is the 11th defendant to be convicted as part of the Justice Department’s prosecution of a $3 million, Atlanta-based PPP fraud ring. Previously, 10 other members of the scheme were charged by the Fraud Section and the U.S. Attorney’s Office for the Northern District of Georgia. All other defendants pleaded guilty prior to trial. To date, authorities have recovered approximately $1.2 million of the stolen money.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; U.S. Attorney Ryan K. Buchanan for the Northern District of Georgia; Assistant Director Luis Quesada of the FBI’s Criminal Investigative Division; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of Inspector General (SBA-OIG); and Special Agent in Charge Mark Morini Jr. of the U.S. Treasury Inspector General for Tax Administration (TIGTA) made the announcement.

The FBI Atlanta Field Office; the SBA-OIG; and the TIGTA investigated the case.

Trial Attorney Matthew Reilly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Christopher J. Huber for the Northern District of Georgia are prosecuting the case and Trial Attorney Michael P. McCarthy of the Criminal Division’s Fraud Section and Special Assistant U.S. Attorney Diane D. Schulman for the Northern District of Georgia provided significant assistance.

Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.

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

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

ALTIVIA Petrochemicals LLC has agreed to a consent decree that would require it to pay a $1,112,500 civil penalty and improve leak detection and repair work practices to settle alleged violations of the Clean Air Act (CAA) at a petrochemical manufacturing facility in Haverhill, Ohio. Emissions of hazardous air pollutants (HAPs), such as phenol, from leaking equipment impact the environment and may cause serious health effects including anorexia, vertigo and blood and liver effects.

According to the seven-count complaint, filed on Oct. 5, 2021, in the Southern District of Ohio, ALTIVIA allegedly violated CAA requirements to monitor and repair leaking equipment, demonstrate compliance with regulations applicable to chemical plants and control HAP emissions from equipment as required. 

“This case and settlement show that the Department of Justice will litigate vigorously against companies that violate federal environmental law,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “The significant civil penalty obtained will serve as deterrent against future non-compliance and the compliance program will require ALTIVIA to upgrade its monitoring and maintenance practices to help prevent future violations due to fugitive emissions.”

“Prevention or immediate detection and repair are critical when protecting health and the environment,” said U.S. Attorney Kenneth Parker for the Southern District of Ohio. “The Justice Department and the Environmental Protection Agency (EPA) are vigilantly ensuring compliance with the Clean Air Act and other environmental laws.”

“This consent decree will benefit communities in Ohio by reducing hazardous air pollution,” said EPA Region 5 Administrator Debra Shore. “The settlement, which resolves years of Clean Air Act violations, will require ALTIVIA to improve its Clean Air Act compliance efforts and to implement monitoring and repair best practices.”

In addition to paying a penalty, ALTIVIA will implement a comprehensive program to reduce emissions of HAPs from leaking equipment such as valves and connectors. These emissions, known as “fugitive” emissions because they are not discharged from a stack, but rather leak directly from equipment, are generally controlled through work practices, like monitoring and repairing leaks. The settlement requires ALTIVIA to implement enhanced work practices, including more frequent leak monitoring, better repair practices and innovative new efforts designed to prevent leaks.

In addition, the enhanced program requires ALTIVIA to replace valves with new “low emissions” valves or valve packing material designed to significantly reduce the likelihood of future leaks of HAPs. The settlement further requires ALTIVIA to control similar emissions from a previously uncontrolled process tank. The estimated cost of these controls is $730,000. The compliance program and engineered controls will reduce HAP emissions by up to 97 tons per year.

The consent decree is subject to a 30-day comment period and final approval by the court. A copy of the consent decree is available on the Department of Justice website at www.usdoj.gov/enrd/Consent_Decrees.html.

The owner of a Fairbanks, Alaska, commercial flooring company, pleaded guilty on Sept. 22 for his role in a conspiracy to provide kickbacks related to contracts for commercial flooring services at a U.S. Army Facility. 

Benjamin W. McCulloch pleaded guilty to five-count felony charges filed on Aug. 25, 2022, in the U.S. District Court for the District of Alaska. According to the plea, from March 2016 to March 2021, McCulloch conspired to pay kickbacks to an employee of a prime contractor related to flooring construction contracts administered by the U.S. Army at Fort Wainwright. The charges state that McCulloch conspired to inflate the costs of four flooring construction subcontracts, and then provided the proceeds to his co-conspirator as kickbacks. During the five-year scheme, McCullough paid over $100,000 in kickbacks.

“When subcontractors and prime contractors at U.S. Army facilities collude, they undermine competition for government contracts and waste public funds intended to bolster our national defense,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “The division and our law enforcement partners will bring to justice criminals who cheat on government contracts.”

“Those who engage in fraudulent kickback schemes undermine the government’s competitive contracting practices, and harm American taxpayers in the process,” said Special Agent in Charge Antony Jung of the FBI’s Anchorage Field Office. “Detecting and disrupting these schemes will always be a priority for the FBI, and together with our partners, we will hold offenders accountable.”

“Today’s plea is a fitting end for those who conspire to defraud the U.S. Army,” said Special Agent in Charge L. Scott Moreland of the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Field Office. “The Army CID’s Major Procurement Fraud Field Office is proud to work with our federal law enforcement partners to protect the coffers of the U.S. government from those who break the law and threaten economic damage to the U.S. Army.”

“The government contracting process is supposed to be a healthy competition, not a rigged match with illegal kickbacks thrown in,” said Special Agent in Charge Bret Kressin of the IRS-Criminal Investigation, Seattle Field Office. “Mr. McCulloch’s greed not only undermined the U.S. Army, but it hurt our communities when the stolen funds went directly to line his coconspirators’ pockets.”

“Mr. McCulloch’s guilty plea is a crucial step forward in holding him, and potentially others, accountable for his illegal efforts to enrich himself and others by willfully committing a years-long fraud against the U.S. Army and American taxpayer,” said Special Agent in Charge Bryan D. Denny of the Department of Defense, Office of Inspector General (DOD-OIG), Defense Criminal Investigative Service (DCIS), Western Field Office. “DCIS and our partners will continually seek to identify and eliminate kickback schemes, such as those utilized by Mr. McCulloch, because they corrupt the DoD procurement system by unlawfully suppressing competition and increasing costs.”

The charges to which McCulloch pleaded guilty carry a maximum penalty of ten years in prison and a fine of $250,000. The fine for the anti-kickback conspiracy charge may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. In addition to his guilty plea, McCulloch has agreed to pay restitution. 

The Antitrust Division’s San Francisco Office, the U.S. Attorney’s Office for the District of Alaska, the FBI’s Anchorage Field Office, the U.S. Army Criminal Investigation Division’s Major Procurement Fraud Field Office, the DCIS’s Western Field Office in Seattle, and the IRS’s Criminal-Investigation Seattle Office are investigating this case. 

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

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 federal government contracts, go to https://www.justice.gov/procurement-collusion-strike-force.

A Mississippi man was sentenced today to 27 months in prison for preparing false tax returns for his clients.

According to court documents and statements made in court, Orland Reed worked at a Gulfport tax return preparation business. Between 2012 and 2014, Reed prepared tax returns for clients that included one or more false items, including false education credits, dependent information, federal income tax withholdings, and retirement contributions in an effort to generate larger refunds from the IRS than the clients were entitled to receive. At times, Reed also listed a different tax preparer even though he prepared the returns himself.

In addition to preparing false tax returns, on at least two occasions Reed misappropriated portions of his clients’ refunds that were sent by the IRS to the tax preparation business in the form of prepaid debit cards. Specifically, Reed withdrew some of the funds on the cards before delivering them to the clients.

In addition to the term of imprisonment, U.S. District Judge Taylor B. McNeel ordered Reed to serve one year of supervised release and to pay $69,185 in restitution to the United States.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and United States Attorney Darren J. LaMarca of the Southern District of Mississippi made the announcement.

IRS-Criminal Investigation investigated the case.

Trial Attorney Kevin Schneider of the Tax Division and Assistant U.S. Attorney Stan Harris for the Southern District of Mississippi prosecuted the case.

The Justice Department announced today nearly $22 million in upcoming grant awards to address and prevent sexual assault, domestic violence, dating violence, and stalking on college campuses, provide services to youth victims and children exposed to such violence and engage men and boys as allies.

Specifically, the Office on Violence Against Women (OVW) will award $10,688,200 through 36 grants to address and prevent domestic violence and sexual assault on college campuses through the Grants to Reduce Sexual Assault, Domestic Violence, Dating Violence and Stalking on Campus Program (Campus). In addition, the Consolidated Youth and Engaging Men Grant Program (CYEM) will award $11,031,653 through 25 grants to implement programming that encourages men and boys to be role models and change agents in their communities working toward the goal of eliminating sexual and domestic violence.

“Studies show that approximately one in five women surveyed have been victimized by sexual assault while in college,” said Associate Attorney General Vanita Gupta. “We need to support college campuses with the resources to create a campus culture that is not tolerant of sexual assault or dating violence. These grants will help colleges and universities develop prevention policies, offer survivor-centered services, and train campus police to meet the needs of their students. These grants also provide critical intervention services to children and young adults, in addition to engaging them to be leaders in combatting violence.”

Of particular note, the Campus awards include support for historically Black colleges and universities (HBCUs), Hispanic serving institutions (HSIs), and Tribal colleges and universities (TCUs). 

“One of OVW’s top priorities is to improve our outreach and services to underserved communities,” said OVW Acting Director Allison Randall. “We recognize that HBCUs, HSIs and TCUs face unique issues and challenges in preventing and responding to campus violence and we’re honored to work with grantees in 2023 and in the years to come to support survivors. We’re grateful to announce these awards during September when we are celebrating National Hispanic-Serving Institutions Week and in recognition of the National HBCU Week conference held by the White House.”    

The Campus Program supports higher education institutions in developing services and programs that are designed to address and prevent sexual assault, domestic violence, dating violence and stalking on campus. Grantees are required to adopt a multidisciplinary response program that involves student affairs, student health, athletics, residence life, law enforcement and victim service providers. They also provide incoming students with prevention and educational programs about sexual and domestic violence, training for campus police and security and training for judicial and disciplinary board members. 

The CYEM Program serves victims 24 and younger and promotes boys’ and men’s roles in combating violence against women and girls. Grantees provide services for youth who are victims of or exposed to sexual and domestic violence, youth victims of sex trafficking and commercial sexual exploitation, counseling, mentoring and support for non-abusing parents and caretakers. Grantees also provide training for programs on how to safely identify children and families who are experiencing domestic violence and refer them to programs that can provide services. Grantees also create public education campaigns to encourage men and boys to be allies to women and girls in preventing sexual and domestic violence.

OVW will announce FY23 grant solicitations for both grant programs at the in late fall. Please visit www.justice.gov/ovw for more information on upcoming grant opportunities.

A Kansas man was sentenced today to 30 years in prison for impersonating a minor female on social media and enticing dozens of minors in the Topeka area to record and send him sexually explicit images and videos of themselves.

According to court documents, Jeffrey D. Pierce, 42, of Topeka, was a former teacher and basketball coach at Seaman High School in Topeka who impersonated a minor female on various social media platforms and induced minor males in the Topeka area to create and send him images of themselves engaging in sexually explicit conduct. Evidence recovered from Pierce’s phones and other electronic devices shows that his exploitative scheme lasted for at least several years and that he targeted minors in his own community, including his own students at the high school where he formerly taught.

“Soliciting the production of child sexual abuse material is a particularly disturbing crime, made even more egregious when committed by someone entrusted to teach and coach our children,” said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division. “Today’s sentence reflects the unwavering commitment of our prosecutors and law enforcement partners to stand up for victims and to hold offenders accountable for their conduct.”

“Pierce, an educator and coach, used deception, manipulation and threats to exploit the most vulnerable victims and those he was entrusted to protect, our children” said Special Agent in Charge Charles Dayoub of the FBI Kansas City Field Office. “The investigation into his actions and today’s sentencing demonstrate the unwavering dedication of law enforcement to seek justice for our most innocent victims and those who are unable to defend themselves.”

Pierce was also sentenced to five years of supervised release and ordered to pay $55,100 in special assessments.

To date, the FBI has identified over 80 minors who were victimized by Pierce. Pierce’s online communications with these victims established that he coerced at least one minor to send him additional sexually explicit material by threatening to distribute that minor’s images to others, distributed sexually explicit images of other minors, and encouraged another minor to engage in in-person sexual conduct with him while he was still impersonating a minor female. In total, law enforcement recovered from Pierce’s electronic devices several thousand images and videos depicting minor males engaged in sexually explicit conduct, as well as hundreds of screenshots of social media accounts belonging to other users and multiple images of nude and undressing minors that appear to have been taken in locker rooms at two Topeka high schools. 

The FBI investigated the case.

Trial Attorneys Kaylynn N. Shoop, Austin M. Berry, and William G. Clayman of the Justice Department’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.

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

The Justice Department filed a bill of information charging Rodney Vicknair, 55, a former police officer with the New Orleans Police Department, with sexually assaulting a victim in violation of that victim’s constitutional rights.

The bill of information alleges that on Sept. 23, 2020, the defendant while acting under color of law as a police officer, willfully deprived the victim of her right to bodily integrity when he engaged in sexual conduct without her consent and without a legitimate law enforcement purpose.   

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Duane A. Evans for the Eastern District of Louisiana made the announcement.

The FBI New Orleans Field Office and the New Orleans Police Department Public Integrity Bureau investigated the case. Criminal Chief Tracey Knight of the U.S. Attorney’s Office for the Eastern District of Louisiana and Special Litigation Counsel Fara Gold of the Criminal Section of the Department of Justice’s Civil Rights Division are prosecuting the case.

An information is only an allegation; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.

A federal grand jury in Charleston, West Virginia returned an indictment today charging a Pineville man with willful failure to pay over employment taxes and obstructing the IRS’s collection efforts.

According to the indictment, Christopher J. Smyth operated Wyoming County’s Best Ambulance Service Inc., Stat Ambulance Service Inc., and Stat EMS LLC, all of which provided ambulance services in Wyoming County, West Virginia. Smyth allegedly was responsible for collecting and paying over to the IRS employment taxes withheld from the wages of the three companies’ employees. Even though he allegedly withheld these funds from the wages of Stat Ambulance Service’s employees, Smyth did not pay to the IRS the full employee withholdings or the full employer’s share. After the IRS imposed penalties against Smyth for not paying over these funds, he allegedly stopped operating Stat Ambulance Service and created Stat EMS in the name of a nominee owner. Smyth nonetheless allegedly continued operating the new ambulance business in the same manner as the previous company, and did not pay over to the IRS all of the employment taxes owed on behalf of the employees of Stat EMS.

After the IRS attempted to collect the unpaid employment taxes for Stat EMS, as well as the resulting penalties, Smyth allegedly attempted to obstruct the IRS’s efforts by making false and misleading statements. Specifically, the indictment charges that Smyth stated that he did not own Stat EMS and did not have a personal bank account. To further obstruct the IRS’s collection efforts, Smyth allegedly paid personal expenses from Stat EMS’s business bank accounts, transferred funds from Stat EMS to bank accounts he controlled, and diverted his own paychecks into a bank account titled in the name of another person.

Smyth will be scheduled to make his initial court appearance before the U.S. District Court for the Southern District of West Virginia at a future date. If convicted, Smyth faces a maximum sentence of five years in prison for each of four counts of willful failure to pay over employment taxes and three years in prison for obstructing the IRS. 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 William S. Thompson for the Southern District of West Virginia made the announcement.

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Alexander Effendi and Andrew Ascencio of the Tax Division and Assistant U.S. Attorney Erik Goes for the Southern District of West Virginia 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 Department of Justice today announced that it entered into another four settlements to resolve claims that companies discriminated against non-U.S. citizens by posting job opportunities with unlawful citizenship status restrictions on college job recruiting platforms. These four agreements add to the department’s recent settlements with 16 other companies to resolve similar claims in June 2022, bringing the total civil penalty amount for all 20 employers to over $1.1 million.

“With these four new settlements, the department has now held 20 companies accountable this year for hiring discrimination against students based on their citizenship status,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Civil Rights Division is committed to enforcing the law to ensure that job seekers — including lawful permanent residents, U.S. nationals, asylees and refugees — are not unlawfully excluded from job opportunities for which they are qualified.”

The department’s involvement in these matters began after a Georgia Institute of Technology (Georgia Tech) student, who was a lawful permanent resident at the time, filed a discrimination complaint with the Civil Rights Division’s Immigrant and Employee Rights Section. The student’s complaint alleged that Capital One Bank restricted a paid internship opportunity only to U.S. citizens when it posted the job on a Georgia Tech job recruitment platform. During its investigation, the department learned about dozens of other facially discriminatory advertisements employers posted on Georgia Tech’s job recruiting platform as well as other platforms operated by colleges across the United States. The department proceeded to open investigations of the 20 employers with which it has already settled, and continues to investigate additional employers.

The department’s investigation found that each of the four companies posted at least one job announcement excluding non-U.S. citizens on an online job recruitment platform operated by Georgia Tech. Three of the companies — CarMax, Axis Analytics and Capital One Bank — also posted discriminatory advertisements on other college job platforms. The department determined that the advertisements deterred qualified students from applying for jobs because of their citizenship status, and in many cases the citizenship status restrictions also blocked students from applying or even meeting with company recruiters.

The new settlements require the four companies — CarMax, Axis Analytics LLC (aka Axis Group), Capital One Bank and Walmart — to pay a total of $331,520 in civil penalties, depending on the number of discriminatory advertisements they posted. CarMax will pay $186,480; Axis Analytics will pay $53,872; Capital One Bank will pay $49,728; and Walmart will pay $41,440. In addition to paying civil penalties, the four employers must also require their recruiting staff to undergo training on their obligations under the Immigration and Nationality Act’s (INA) anti-discrimination provision and to refrain from including specific citizenship or immigration status designations in their campus job postings unless the restrictions are required by law. They will also ensure that their other recruiting practices and policies comply with the INA’s anti-discrimination provision.

The INA generally prohibits employers and recruiters from limiting jobs based on citizenship or immigration status unless required by a law, regulation, executive order or government contract. The INA protects U.S. citizens, U.S. nationals, refugees, asylees, and recent lawful permanent residents from citizenship status discrimination in hiring, firing and recruitment or referral for a fee.

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. IER’s website has more information on how employers can avoid discriminating based on citizenship status when hiring and recruiting. 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.

The Justice Department announced today that it will award more than $246 million in grants to American Indian and Alaska Native communities to improve public safety and serve crime victims. The announcement coincides with the 17th Annual Government-to-Government Violence Against Women Tribal Consultation, which is being held from Sept. 21st to 23rd in Anchorage, Alaska.

“Each year, this event serves as a necessary reminder of the violence perpetrated against women in Tribal communities across the country, as well as an important opportunity to confront this public safety crisis with the urgency it demands,” said Attorney General Merrick B. Garland. “The Justice Department remains committed to honoring our nation-to-nation partnerships and to making Tribal communities safer.” 

The purpose of this event is to solicit recommendations from Tribal leaders on administering Tribal funds and programs and enhancing the safety of American Indian and Alaska Native women from domestic and dating violence, sexual assault, homicide, stalking, and sex trafficking, along with strengthening the federal response to these crimes. The annual consultation, convened by the Office on Violence Against Women (OVW), is required by law to address the federal administration of Tribal grant funds and programs established under the Violence Against Women Act of 1994 (VAWA) and its subsequent reauthorizations. In addition to addressing violent crimes that disproportionately harm women and girls, the consultation will also focus on ways to improve access to local, regional, state, and federal crime information databases and criminal justice information systems.

More than four in five American Indian and Alaska Native adults have suffered some form of violence in their lifetime. This equates to nearly three million people who have experienced stalking, sexual violence or physical violence by intimate partners.

“With this 17th annual consultation, the first to be held in Alaska, the Department of Justice honors our special government-to-government relationship with Native leaders,” said Deputy Attorney General Lisa O. Monaco. “We also renew our commitment to listen to these leaders, the ones who know best how to make their communities safer. Together, we can make significant progress toward ending violence against women.”

“Ensuring access to justice for all is at the core of the Justice Department’s mission and is the key objective of multiple efforts across the Department,” said Associate Attorney General Vanita Gupta. “Although we have made progress in addressing domestic and sexual violence against people in Native communities, we know there is more work to be done and we are committed to doing it.”

The Tribal grant awards are designed to help enhance Tribal justice systems and strengthen law enforcement responses, improve the handling of child abuse cases, combat domestic and sexual violence, support Tribal youth programs, and fund an array of services for American Indian and Alaska Native crime victims. The awards are administered through OVW, the Office of Justice Programs (OJP), and the Office of Community Oriented Policing Services (COPS Office).

“Every day, these funds help Tribal governments, coalitions, advocates, and service providers meet survivors’ needs – and that is vital, due to the epidemic levels of violence that Indigenous communities face,” said OVW Acting Director Allison Randall. “Tribes know best what interventions will bring justice for survivors. We are honored to support Tribal communities as they implement strategies that align with community values and practices. Tribal grantees have told us that this funding changed the care they can provide and made a profound difference in survivors’ lives.” 

OVW will award $28.04 million to 30 grantees under its Tribal Governments Program, which enhances Tribes’ ability to respond to domestic violence, dating violence, sexual assault, stalking, and sex trafficking against Indian women, support survivor safety, and develop education and prevention strategies. To facilitate the development and operation of nonprofit, nongovernmental Tribal domestic violence and sexual assault coalitions, $6.38 million will be awarded to 19 grantees through the Tribal Coalitions Program.

OVW will also award seven grants totaling $3.67 million under the Tribal Sexual Assault Services Program, which supports projects to create, maintain, and expand services for sexual assault survivors provided by Tribes, Tribal organizations, and nonprofits within Tribal lands. Finally, under the Tribal Jurisdiction Program, four grants totaling $1.53 million will be awarded to Tribal governments to provide support and technical assistance in planning and implementing changes in their criminal justice systems to exercise special criminal jurisdiction and for expenses incurred in exercising the jurisdiction. 

OJP’s Office for Victims of Crime (OVC) has awarded more than $116 million through the Tribal Victim Services Set-Aside (TVSSA) to support the provision of services for crime victims in Tribal communities. Of special note is that FY 2022 TVSSA funding can now be used to help missing or murdered indigenous persons (MMIP) by providing services to the family members of MMIP victims; generating awareness of MMIP among community members in general as well as individual MMIP cases; and collaborating with Tribal, federal, and state and local officials to respond to MMIP cases. Another $2.95 million was awarded through OVC’s Project Beacon: Increasing Access to Services for Urban American Indian and Alaska Native Victims of Human Trafficking Program, created to increase the quantity and quality of victim-centered services available to assist Tribal victims of human trafficking in urban areas.

The Department also funded more than $6 million through OJP’s Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking to help tribes comply with federal law on sex offender registration and notification. Once the awards are made, information about the grantees selected under each solicitation can be found online at the OJP Grant Awards Page.

“It is through collaborations such as this that the Department of Justice is able to fully engage and connect with our Tribal partners, hearing directly from Tribal professionals about their challenges and the resources that would best help them meet those challenges,” said Office of Justice Programs Principal Deputy Assistant Attorney General Amy L. Solomon. “It’s a privilege to work hand-in-hand with Tribal leaders to strengthen public safety, improve victim services and sustain crime prevention and intervention efforts.”

More than $82.2 million was awarded under the Coordinated Tribal Assistance Solicitation, or CTAS, a streamlined application which helps tribes apply for Tribal-specific grant programs that enhance law enforcement and Tribal justice practices, expand victim services and support prevention and intervention. CTAS grants are administered by OJP ($54.49 million) and the COPS Office ($27.72 million).

“The COPS Office values our partnership with Tribal law enforcement and is pleased to announce these critical public safety grants,” said Acting Director Robert Chapman of the COPS Office. “Law enforcement across the country is experiencing challenges, and those challenges are particularly compounded for Tribal law enforcement. The awards announced today will help with recruitment and retention of law enforcement positions, and ensure those officers have the training and equipment needed to protect and serve their respective communities.”

Under CTAS, the COPS Office awarded $27.72 million through awards to 47 Tribes to expand the implementation of community policing and meet the most serious needs of law enforcement in Tribal nations through a broadened comprehensive program. The funding can be used to hire or re-hire full-time career law enforcement officers and village public safety officers as well as to procure basic equipment, technology, and training to assist in the initiation or enhancement of Tribal community policing efforts.

An Idaho man pleaded guilty today to hate crime and false statement charges in the U.S. District Court for the Western District of Washington. Jason Stanley, 46, pleaded guilty to committing a hate crime for his participation in the assault of T.S., a Black man, which occurred because of the man’s actual and perceived race at a bar in Lynnwood, Washington, on Dec. 8, 2018. Three other white supremacists earlier pled guilty for their roles in this assault.

“The defendant, a known white supremacist, singled out and attacked a Black man because of his race – violent, hate-driven conduct that has no place in our society today,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The convictions that we have secured in this case make clear that the Department of Justice will continue to use every resource at its disposal to fight white supremacist violence.”

“The defendants in this case came to Washington state to commemorate their hateful embrace of white supremacy,” said U.S. Attorney Nick Brown for the Western District of Washington. “But they did not find the welcoming environment they expected. The victim in this case, and those who defended him from the assault, demonstrated one of our core values in Western Washington: hate has no place here. We will continue our work to prosecute those who engage in hate and bias crimes, and to ensure the civil rights of all members of our community. This work is one of the top priorities for the Justice Department, my office and our law enforcement partners.” 

“Mr. Stanley and the other subjects in this case attacked and injured the victim based on his race,” said Special Agent in Charge Richard A. Collodi of the FBI Seattle Field Office. “Until all citizens in Washington state feel safe from threats and violence based on their race, ethnicity, gender or beliefs, the FBI will continue our commitment to investigating federal hate crimes and protecting civil rights.”

In his plea agreement, Stanley admitted that, at the time of the assault, he was a member of a white supremacist group. On Dec. 8, 2018, Stanley entered a bar in Lynnwood, Washington, with others, including members of two related white supremacist groups. Stanley wore clothing and patches indicating his group membership and repeatedly gave “Nazi salutes” inside the bar. While at the bar, Stanley and others assaulted T.S, a Black man who was serving as the disc jockey at the bar. Stanley believed that T.S. was being disrespectful to the members of the white supremacist groups after T.S. objected to group members manipulating his DJ equipment without his permission. Stanley and others punched, kicked, and stomped on T.S., and called T.S. racial slurs. As a result of the assault, T.S. suffered bodily injuries. Two bystanders attempted to intervene to help T.S. and stop the assault. Both bystanders were assaulted by members of the white supremacist groups, and both sustained injuries. 

In addition to the hate crime charge, Stanley pleaded guilty to making false statements to FBI agents about the circumstances surrounding the assault. Specifically, Stanley falsely claimed to the agents that he was not even present in the state of Washington during the weekend of the assault. This statement was false, in that Stanley knew he had traveled to Washington to attend a gathering of white supremacists, and while he was there, he participated in the assault of T.S. at the Lynwood bar. Stanley made this false statement to the FBI because he wanted to cover up his involvement in the assault of T.S. 

Stanley will be sentenced on Jan. 6, 2023. The hate crime charge carries a maximum penalty of ten years in prison. The false statement charge carries a maximum penalty of up to five years in prison.  

Stanley was charged in an indictment that was unsealed on Dec. 18, 2020. The seven-count indictment also charged three other men, each aiding and abetting one another, with punching and kicking T.S. while making derogatory comments about his actual and perceived race. The indictment further charged Stanley and the three other men with assaulting two men who intervened to protect T.S. during the attack, as well as with making false statements to the FBI during the course of their investigation. The three other men charged in this case, Jason DeSimas, Randy Smith, and Daniel Dorson, have each pleaded guilty in this matter.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and U.S. Attorney Nicholas W. Brown for the Western District of Washington made the announcement.

The FBI investigated this case with the support of the Snohomish County Sheriff’s Office. Trial Attorney Christine M. Siscaretti of the Justice Department’s Civil Rights Division and Assistant U.S. Attorney Rebecca S. Cohen for the Western District of Washington are prosecuting the case.

A Georgia man was sentenced in Nevada yesterday to 18 months in prison for participating in an identity theft conspiracy.

Melvin Orellana of Rome, Georgia, was a computer support employee for a company that provided tax software to return preparation businesses throughout the United States. King Isaac Umoren operated Universal Tax Services (UTS), a Las Vegas-based tax preparation firm that used the tax software from Orellana’s company. From approximately May 2016 through Nov. 2017, Orellana conspired with Umoren to steal and transfer taxpayer and personal identifying information from the tax software business. Umoren sought this taxpayer information to falsely inflate UTS’s client base in an effort to fraudulently sell UTS to an unsuspecting buyer. In exchange for the stolen taxpayer data, Umoren agreed to pay Orellana $20,000 after UTS was sold. In Aug. 2017, Orellana provided to Umoren taxpayer data for approximately 12,000 taxpayers whose returns were prepared by businesses using the tax software. In Nov. 2017, Umoren used this taxpayer data to fraudulently sell UTS for $6.7 million.

In addition to the term of imprisonment, U.S. District Judge Andrew Gordon for the U.S. District Court of Nevada ordered Orellana to serve three years of supervised release.

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

IRS Criminal-Investigation and the Treasury Inspector General for Tax Administration investigated the case.

Trial Attorneys Sarah A. Kiewlicz and Patrick Burns of the Justice Department’s Tax Division prosecuted the case.

Four former supervisory and deputy correctional officers at the Valdosta State Prison in Valdosta, Georgia, were sentenced today in federal court in the Middle District of Georgia for their roles in orchestrating, administering and then seeking to conceal the beating of a handcuffed inmate in their custody. Lieutenant Geary Staten, 31, Sergeant Patrick Sharpe, 30, and Deputy Correctional Officers Brian Ford, 25, and Jamal Scott, 35, were each sentenced to periods of incarceration for their respective roles in the incident. Sharpe was also sentenced for beating a different inmate during a separate incident.

“These officers’ efforts to organize, execute, and then cover up a retaliatory assault on a handcuffed, compliant inmate are an egregious abuse of power,” said Assistant Attorney General Clarke for the Justice Department’s Civil Rights Division. “These sentences make clear that no one is above the law, and that when officers violate the civil rights of people under their supervision – through violence or obstruction – they will be held accountable.”

“This case serves as a reminder that individuals — no matter their status — will be held accountable for their crimes,” said U.S. Attorney Peter D. Leary of the Middle District of Georgia. “When sworn officers do violence against inmates, they damage society’s trust in law enforcement and tarnish the reputation of the many worthy individuals who accept the dangerous responsibility of policing our prisons.”

“By violating their oaths, these officers betrayed everyone in law enforcement who works the dangerous jobs behind prison walls,” said Special Agent in Charge Keri Farley for the FBI Atlanta Field Division. “These sentences should serve as a warning the FBI will always pursue charges against anyone who takes an oath but then lowers themselves to the same level as the criminals they are sworn to protect.”

According to court documents and statements made during the sentencing hearings, on Dec. 29, 2018, Sharpe, while on duty, instructed his subordinate officers – Ford and Scott – to assault a handcuffed inmate in retaliation for an earlier altercation between that inmate and a female officer at the prison. Specifically, Sharpe, along with Ford, Scott and several other correctional officers, escorted the handcuffed inmate to an outdoor area on the grounds of the prison for the purpose of assaulting him. Scott and Ford, carrying out a directive from Sharpe, took the inmate to the ground and struck him multiple times in the body. The inmate was handcuffed and compliant at the time of the assault. Following the assault, Staten, who was aware that officers had used unlawful force on the inmate, then took steps to conceal the offense, instead of reporting or otherwise notifying law enforcement. Specifically, Staten expressly directed the involved officers not to write any report regarding the unlawful use of force, and failed to write such a report himself, despite knowing such a report was required.

Sharpe was also sentenced in connection with a second incident, involving the beating of a different inmate that took place several months earlier. Specifically, on Sept. 24, 2018, while on duty as a correctional officer, Sharpe assaulted a handcuffed inmate in retaliation for an earlier interaction between the inmate and a different female officer. While escorting the inmate across the prison grounds, Sharpe wrapped a pair of handcuffs around his fist and punched the inmate three times – twice to the inmate’s face and once to the back of his head. As a result of the assault, the inmate briefly lost consciousness and suffered lacerations to his face and head. The inmate was restrained and compliant at the time of the assault.

At the sentencing hearing, the government noted the substantial assistance provided by Ford and Scott during the investigation, and requested that they receive a lesser sentence as a result of their notable willingness to take responsibility for their conduct and provide honest and helpful information concerning the incident. Federal District Court Judge Hugh Lawson sentenced Sharpe to 48 months in prison; Staten to 14 months in prison; Scott to 12 months in prison; and Ford to 12 months and a day in prison for their respective roles in the offense(s).

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

The FBI and a local task-force-officer partner investigated the case. Trial Attorneys Katherine G. DeVar and Nicole Raspa of the Justice Department’s Civil Rights Division prosecuted the case, with assistance from the U.S. Attorney’s Office for the Middle District of Georgia.

A federal jury convicted a Pennsylvania man and woman today for a scheme to pay and receive kickbacks in exchange for the referral of prescription medications.

According to court documents and evidence presented at trial, Steven J. Valentino, 65, of Haverford, and Michele Miller, 53, of Swarthmore, a doctor and his office manager, respectively, participated in an incentivized prescribing scheme involving injured federal workers and Medicare beneficiaries. Valentino and Miller received kickbacks for referring, ordering, and arranging for medications – including expensive compound medications – to be filled by a Houston pharmacy. Between May 2013 and July 2017, the pharmacy billed the Department of Labor Office of Workers’ Compensation Program (DOL-OWCP) and Medicare approximately $2.5 million and was paid approximately $1.1 million for prescriptions referred, ordered, and arranged by Valentino and Miller in exchange for illegal health care kickbacks.

Valentino and Miller were both convicted of conspiracy to pay and receive health care kickbacks, and each was also convicted of two counts of receiving health care kickbacks. They are scheduled to be sentenced at a later date and face a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Syreeta Scott of the Department of Labor Office of the Inspector General (DOL-OIG) Philadelphia Regional Office; Special Agent in Charge Jeff Krafels of the U.S. Postal Service Office of Inspector General (USPS-OIG) Mid Atlantic Area Field Office; and Special Agent in Charge Maureen Dixon of the Department of Health and Human Services Office of the Inspector General (HHS-OIG) Philadelphia Region made the announcement.

DOL-OIG, USPS-OIG, and HHS-OIG investigated the case.

Acting Assistant Chief Debra Jaroslawicz and Trial Attorney Kelly M. Lyons of the Criminal Division’s Fraud Section are prosecuting the case.

The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 16 strike forces operating in 27 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.

U.S. Attorney General Merrick B. Garland and Ukrainian Prosecutor General Andriy Kostin met today in Washington to discuss efforts to hold accountable individuals responsible for war crimes and other atrocities in the wake of Russia’s unprovoked and unjust invasion of Ukraine. The leaders outlined areas for enhanced collaboration and signed a memorandum of understanding (MOU) that will facilitate appropriate cooperation, coordination, and deconfliction between each country’s respective investigations and prosecutions.

“The United States stands by the people of Ukraine in their tireless pursuit to uphold the rule of law and seek justice for victims in the face of Russia’s continued aggression,” said U.S. Attorney General Garland. “Today, the Department of Justice and the Prosecutor General’s Office announced our decision to work more closely together to identify, apprehend, and prosecute individuals involved in war crimes and other atrocities in Ukraine. We will be relentless in these efforts to hold perpetrators accountable.” 

“The MOU we signed today allows us to step up our common efforts in ensuring accountability for international crimes,” said Ukraine Prosecutor General Kostin. “Through establishing a formal framework of cooperation, we will strengthen effective investigation and prosecution of crimes committed by Russia in Ukraine and provide a measure of justice to victims.”

The U.S.-Ukraine MOU will promote efficiency in investigations and prosecutions by, consistent with national laws, removing barriers to timely and effective exchanges of information and evidence in investigations and prosecutions by the two countries, and increasing the ease with which technical cooperation may be provided. 

The MOU builds on prior efforts by the department following the Attorney General’s trip to Ukraine on June 21, 2022. During that trip, Attorney General Garland announced the launch of a War Crimes Accountability Team to centralize and strengthen the Justice Department’s ongoing work to hold accountable those who have committed war crimes and other atrocities in Ukraine in the wake of Russia’s unprovoked invasion. The team brings together the department’s leading experts in investigations involving human rights abuses, war crimes, and other atrocities; and provides wide-ranging technical assistance, including operational assistance and advice regarding criminal prosecutions, evidence collection, forensics, and relevant legal analysis. A central component of the team’s mission is to further on-going investigations of potential war crimes over which the United States possesses jurisdiction, such as the killing and wounding of U.S. journalists covering the unprovoked Russian aggression in Ukraine.

The leaders also discussed the importance of continuing efforts to counter Russian illicit finance and sanctions evasion. In March, Attorney General Garland announced the establishment of Task Force KleptoCapture (TFKC) to further leverage the department’s tools and authorities to combat efforts to evade or undermine the collective actions taken by the U.S. Government in response to Russian military aggression. TFKC, an interagency law enforcement task force run out of the Office of the Deputy Attorney General, is dedicated to enforcing the sweeping sanctions, export controls, and economic countermeasures that the United States, along with its foreign allies and partners, has imposed in response to Russia’s unprovoked military invasion of Ukraine. Since it was created, the task force has facilitated the seizure and forfeiture of assets, including superyachts and airplanes, of sanctioned individuals with close ties to the Russian regime; dismantled Russian criminal networks; and enforced sanctions violations, among other actions.

For more information on the Justice Department’s commitment to ensuring accountability on behalf of the victims of war crimes, go to: Attorney General Merrick B. Garland Visits Ukraine, Reaffirms U.S. Commitment to Help Identify, Apprehend, and Prosecute Individuals Involved in War Crimes and Atrocities | OPA | Department of Justice

A federal jury convicted a former Assistant Inspector General for the Department of Housing and Urban Development (HUD) yesterday for engaging in a scheme to conceal his financial indebtedness to a personal friend and government contractor to whom he steered tens of millions of dollars in government business.

According to court documents and evidence presented at trial, Eghbal “Eddie” Saffarinia, 62, of Alexandria, Virginia, engaged in a scheme to conceal material facts, including the nature and extent of his financial relationship with a personal friend who was the owner and chief executive officer of an information technology company. During a period in which Saffarinia received payments and loans from his friend totaling $80,000, Saffarinia disclosed confidential internal government information to his friend and undertook efforts to steer government contracts and provide competitive advantages and preferential treatment to his friend’s company. Saffarinia also failed to disclose this financial relationship and another large promissory note on his public financial disclosure forms.

Saffarinia was convicted of one count of concealing material facts, three counts of making false statements, and three counts of falsifying a record or document. He is scheduled to be sentenced on Dec. 19 and faces a maximum penalty of 80 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; Assistant Director in Charge Steven M. D’Antuono of the FBI Washington Field Office; and Inspector General Thomas A. Monheim of the Intelligence Community made the announcement.

The FBI Washington Field Office and the Office of the Inspector General of the Intelligence Community investigated the case.

Senior Litigation Counsel Edward P. Sullivan and Trial Attorneys Rosaleen T. O’Gara and John P. Taddei of the Criminal Division’s Public Integrity Section prosecuted the case.

Two North Carolina women pleaded guilty today to conspiring to defraud the United States by preparing false tax returns for clients and causing them to be filed with the IRS. Hawkins, Ricks, and their co-conspirators caused more than 1,000 false tax returns to be filed with the IRS that claimed a total of approximately $5 million in fraudulent refunds.

According to court documents and statements made in court, from approximately 2009 through 2018 Betty Hawkins, 51, and Phyllis Ricks, 63, both of Rocky Mount, conspired with others to file false tax returns for clients of the tax preparation businesses where they both worked. These returns included fictitious federal income tax withholding figures as well as other fraudulent items that generated fraudulent refunds the clients were not entitled to receive.

Hawkins and Ricks are scheduled to be sentenced on Dec. 16. Both women face a maximum penalty of five years in prison for conspiring to defraud the United States. They also face a period of supervised release, restitution, and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

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

IRS-Criminal Investigation is investigating the case.

Trial Attorneys Michael Jones and Mary Frances Richardson of the Tax Division and Assistant U.S. Attorney Susan Menzer are prosecuting the case.

Assistant Attorney General Jonathan Kanter for the Antitrust Division issued the following statement regarding the District Court’s decision in U.S. v. UnitedHealth Group and Change Healthcare.  

“We respectfully disagree with the court’s decision and are reviewing the opinion closely to evaluate next steps. Protecting competition and access to affordable healthcare is of the utmost importance to the Antitrust Division and the Department of Justice. We are grateful to the Antitrust Division staff – the attorneys, economists, paralegals, and administrative professionals – who work tirelessly to uphold the value of competition.”

An Oregon man pleaded guilty today after twice breaking windows and destroying property at a Planned Parenthood clinic in Grants Pass, Oregon, because the clinic provides reproductive health services.

Devin Friedrick Kruse, 27, pleaded guilty to two misdemeanor counts of violating the Freedom of Access to Clinic Entrances (FACE) Act.

“The Justice Department will not tolerate unlawful and violent conduct that interferes with the work of reproductive health clinics,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This conviction should send a strong message that we will use federal civil rights law to protect clinics and staff that provide reproductive health services while safeguarding the rights of their patients.”

“The First Amendment does not allow individuals to violate the civils rights of others,” said U.S. Attorney Natalie Wight for the District of Oregon. “In this case, Mr. Kruse’s destructive and intimidating acts prevented women from accessing vital reproductive and pregnancy health services.”

“Citizens have a legal right to peacefully protest, but Mr. Kruse’s actions of repeated violence toward a Planned Parenthood clinic crossed a line,” said Special Agent in Charge Kieran L. Ramsey of the FBI Portland Field Office. “The FBI will continue to work with our federal, state and local law enforcement partners to ensure the safety of our communities while respecting individuals’ First Amendment rights.”

According to court documents, on Nov. 23, 2021, Kruse broke five security cameras, a window, and a sign at a Planned Parenthood clinic in Grants Pass. Three days later, on Nov. 26, 2021, Kruse returned and threw a concrete block through the clinic’s window, tore down an intercom system and broke several light bulbs. Kruse later admitted to damaging the facility because he was angry at Planned Parenthood for killing unborn children.

On Feb. 24, 2022, Kruse was charged by misdemeanor criminal information with two counts of violating the FACE Act.

Misdemeanor violations of the FACE Act are punishable by up to one year in federal prison. Kruse will be sentenced on Jan. 5, 2023 by U.S. District Court Judge Ann L. Aiken.

As part of his plea agreement, Kruse has agreed to pay restitution in full to Planned Parenthood as identified by the government prior to sentencing and ordered by the court.

The FBI investigated the case with assistance from the Grants Pass Police Department. It is being prosecuted by Assistant U.S. Attorneys Gavin W. Bruce and John C. Brassel for the District of Oregon, and Trial Attorney Cameron A. Bell for the Department of Justice’s Civil Rights Division.

In 1994, Congress passed the FACE Act in response to an increase in violence toward patients and providers of reproductive health services. The FACE Act prohibits violent, threatening, damaging and obstructive conduct intended to injure, intimidate or interfere with an individual’s right to seek, obtain or provide reproductive health services.

If you or someone you know is in danger, please call 911.

Suspected violations of the FACE Act can be reported to the FBI by calling 1-800-225-5324 (1-800-CALL-FBI) or by visiting tips.fbi.gov.

A federal jury convicted a Florida woman on September 13 of making a false statement to a government investigator related to her role in a clinical trial that studied the effectiveness of asthma drugs in children.

According to evidence presented at trial, Jessica Palacio, 36, of Miami, worked from 2013 to 2015 as a clinical research coordinator at a clinical trial firm in Miami called Unlimited Medical Research. Unlimited Medical Research was one of many companies hired to conduct a clinical trial designed to investigate the safety and efficacy of an asthma medication in children. The drug manufacturer identified issues in the trial performed by the company based on a review of data and notified the Food and Drug Administration (FDA).

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

Following trial, the jury found Palacio guilty of both conspiring to commit wire fraud and with making a false statement. U.S. District Judge Darrin P. Gayles subsequently granted a defense motion for a judgment of acquittal on the conspiracy charge but denied a motion for judgment of acquittal as to the false statement charge.

“The safety of our nation’s prescription medications depends on the accuracy of the clinical studies reported to the FDA,” said Principal Deputy Assistant Attorney General Brian Boynton, head of the Justice Department’s Civil Division. “The Department will continue to work with its law enforcement partners to protect the integrity of this important process.”

“This announcement demonstrates that those who attempt to subvert the regulatory functions of the FDA by making false statements to the agency will be held accountable for their actions,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations Miami Field Office.  “We commend the efforts of the Department of Justice for vigorously pursuing the prosecution of this matter.”

Palacio is scheduled to be sentenced on Nov. 21, 2022.

The FDA Office of Criminal Investigations investigated the case.

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

A federal jury convicted a Michigan man today for his role in devising and executing a $1.8 million scheme to defraud Medicare by billing for services under another doctor’s name after Medicare revoked his privileges to participate in the program.

The defendant, Dr. Kenneth Mitchell, 60, of Oakland County, Michigan, was also convicted for falsification of records designed to prevent detection of this fraud and aggravated identity theft for falsely corresponding with Medicare under the name of another physician.

According to court documents and evidence presented at trial, Mitchell was revoked from participating in the Medicare program in January 2015. Shortly thereafter, he convinced his then-partner to enroll in Medicare and assist in opening a new clinic called Urban Health Care Group PLLC. Once the new business was set up, Mitchell continued to bill Medicare for services just as he had prior to his revocation, only now exclusively under the name of his partner. Upon law enforcement’s discovery of this scheme, Medicare suspended payments to Urban Health Care Group PLLC. Mitchell subsequently submitted false statements to Medicare regarding the fraud allegations (again, under his partner’s name) in an effort to undermine the government’s investigation and ensure the release of Medicare funds to the bank account he controlled.

Mitchell was convicted of one count of conspiracy to commit health care fraud and wire fraud; three counts of health care fraud; one count of falsification of records in a federal investigation; and one count of aggravated identity theft. He is scheduled to be sentenced on Jan. 26, 2023 and faces a maximum penalty of imprisonment of 20 years for conspiracy to commit wire fraud and wire fraud, 10 years for health care fraud, 20 years for falsification of records, and two years for aggravated identity theft (to be served consecutive to any other sentence). A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Mario Pinto and Assistant Special Agent in Charge Darren Bartnik of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Special Agent in Charge Angie Salazar of the Department of Homeland Security, Homeland Security Investigations (HSI) made the announcement.

The HHS-OIG and HSI investigated the case.

Trial Attorneys Kathleen Cooperstein and Shankar Ramamurthy of the Justice Department’s Fraud Section are prosecuting the case.

Any patients who believe they may have been treated by a doctor who billed improperly services should report this conduct to HHS-OIG at 1-800-HHS-TIPS.

A New York man pleaded guilty in the Eastern District of New York to money laundering for his role as the owner and operator of a voice over internet protocol (VoIP) company that facilitated and profited from the introduction of fraudulent robocall traffic into the United States.

Jon J. Kahen, 48, of Great Neck, New York, was the owner and chief executive officer of Global Voicecom Inc. (GVI), a U.S.-based VoIP provider, from 1999 to 2020. GVI provided telecommunications services, such as calling platforms and domestic direct inward dial (DID), toll-free, and call termination services, that introduced foreign phone traffic into the U.S. telephone system (thereby serving as a so-called “gateway carrier”). 

Beginning at least as early as 2016, GVI began serving as a gateway carrier for an India-based VoIP provider that used GVI’s gateway carrier services to route fraudulent robocalls – including, but not limited to, U.S. government agency imposter calls placed by individuals located in India who were fraudulently impersonating agents of the IRS, Social Security Administration, and Social Security Administration Office of Inspector General (SSA-OIG) – into the U.S. telephone system.  This provider also used the DID and toll-free numbers re-leased and/or re-sold to it by GVI to facilitate various fraudulent robocall scams. U.S. consumers, including the elderly, were defrauded as a result of these scams.

By 2018, Kahen became aware that this India-based VoIP provider was using GVI’s telecommunications services to engage in unlawful activities (e.g., wire fraud involving fraudulent robocalls), and by May 2019, Kahen was aware that the funds paid to GVI by this client for continued gateway carrier services constituted the proceeds of unlawful activities. Despite this knowledge, Kahen conducted unlawful monetary transactions involving these criminally derived funds.

“U.S. consumers, many of whom are elderly or are otherwise vulnerable, are inundated with millions of illegal robocalls every day,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “Anyone with a telephone is a potential target. The Department is committed to stopping fraudulent robocalls and pursuing those who knowingly facilitate robocall fraud schemes for financial gain.”

“This defendant opened the door to foreign fraudsters who exploited the good name of our government agencies to target Americans,” said U.S. Attorney Randy Grossman for the Southern District of California. “Let this case be a message to players in the United States who have been facilitating foreign actors and profiting from the fraud that they will be held accountable.”

“Mr. Kahen knowingly facilitated the robocalls of government imposters who not only defrauded U.S. consumers, but preyed on their trust in the government,” said Inspector General Gail S. Ennis for the Social Security Administration. “We will continue to pursue those who perpetuate these robocall fraud schemes, and I am grateful to the trial attorneys, Yolanda McCray Jones and Wei Xiang, of the Justice Department’s Consumer Protection Branch, and Special Assistant U.S. Attorneys, Jeffrey Hill and Lisa Sanniti, of the U.S. Attorney’s Office for the Southern District of California, for prosecuting this case. I also want to thank all our law enforcement partners for their contributions to the success of this investigation.”

“When consumers – especially our vulnerable older Americans – are exploited by fraudsters who are impersonating a government agency or official, the impact is detrimental and the repercussions are long-lasting,” said Inspector in Charge Eric Shen of the Postal Inspection Service’s Criminal Investigations Group. “Anyone who engages in or facilitates deceptive practices like this should know they will not go undetected. Postal Inspectors will continue to work tirelessly to hold those criminals accountable and bring justice to the American public.”

Under the terms of his plea agreement, Kahen agreed to pay restitution in the amount of $216,700 to four robocall victims of the above-referenced wire fraud scheme and to additionally forfeit $176,000.

The United States previously filed a civil action in January 2020, alleging that Kahen and his corporations were responsible for carrying millions of fraudulent robocalls to American consumers. This action also alleged that Kahen and his corporations were warned numerous times that they were carrying fraudulent robocalls and yet continued to do so, thereby facilitating foreign-based fraud schemes targeting individuals in the United States. The civil action sought to enjoin Kahen and his corporations from engaging in the ongoing commission of criminal wire fraud and conspiracy to commit wire fraud. In March 2020, Kahen and his corporations were permanently enjoined from operating as intermediate VoIP carriers conveying any telephone calls into the U.S. telephone system.

Trial Attorneys Yolanda McCray Jones and Wei Xiang of the Justice Department’s Civil Division’s Consumer Protection Branch and Special Assistant U.S. Attorneys Jeffrey Hill and Lisa Sanniti of for the Southern District of California prosecuted the case.

The matter was investigated by agents from the SSA-OIG, U.S. Postal Investigation Service, U.S. Secret Service and U.S. Immigration and Customs Enforcement’s Homeland Security Investigation - El Dorado Task Force. Resources from the Department’s Transnational Elder Fraud Strike Force aided in the matter’s investigation and prosecution.

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.

The Department of Justice today announced significant actions regarding digital assets, including the public release of its report, pursuant to the President’s March 9 Executive Order on Ensuring Responsible Development of Digital Assets,  on The Role of Law Enforcement in Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets;[1] and the establishment of the nationwide Digital Asset Coordinator (DAC) Network, in furtherance of the department’s efforts to combat the growing threat posed by the illicit use of digital assets to the American public.

“As digital assets play a growing role in our global financial system, we must work in tandem with departments and agencies across government to prevent and disrupt the exploitation of these technologies to facilitate crime and undermine our national security,” said Attorney General Merrick B. Garland. “The efforts announced today reflect the commitment of the Justice Department and our law enforcement and regulatory partners to advancing the responsible development of digital assets, protecting the public from criminal actors in this ecosystem, and meeting the unique challenges these technologies pose.” 

As noted in the White House Fact Sheet, these efforts are part of a larger, collaborative effort across government agencies “to develop frameworks and policy recommendations that advance six key priorities identified in the EO: consumer and investor protection; financial stability; illicit finance; U.S. leadership in the global financial system and economic competitiveness; financial inclusion; and responsible innovation.”

“Developments in digital assets have created a new landscape for criminals to exploit innovation to further significant criminal and national security threats domestically and abroad,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division.  “Through the creation of the DAC Network, the Criminal Division and the National Cryptocurrency Enforcement Team will continue to ensure that the Department and its prosecutors are best positioned to combat the ever-evolving criminal uses of digital asset technology.”

First, in response to the March 9 Executive Order, the department’s report discusses the manner in which illicit actors are exploiting digital asset technologies; the challenges that digital assets pose to criminal investigations; initiatives that the department and law enforcement agencies have established as part of whole-of-government efforts to more effectively detect, investigate, prosecute, and otherwise disrupt these crimes; and recommended regulatory and legislative actions to further enhance law enforcement’s ability to address digital asset crimes.

Second, the department’s Criminal Division has launched the DAC. Led by the department’s National Cryptocurrency Enforcement Team (NCET), the DAC Network comprises over 150 designated federal prosecutors from U.S. Attorneys’ Offices and across the department’s litigating components, and will serve as the department’s primary forum for prosecutors to obtain and disseminate specialized training, technical expertise, and guidance about the investigation and prosecution of digital asset crimes. The Director of the NCET, Eun Young Choi, chaired the DAC Network’s first meeting on September 8.

Reports on Ensuring Responsible Development of Digital Assets

The department’s report on the Role of Law Enforcement in Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets begins by detailing the many ways in which illicit actors have exploited digital assets. It delineates three principal categories of illicit uses: 1) cryptocurrency as a means of payment for or manner of facilitating criminal activity; 2) the use of digital assets as a means of concealing illicit financial activity; and 3) crimes involving or undermining the digital asset ecosystem. The report also discusses how novel technology, particularly in the area of decentralized finance, or DeFi, has created new challenges for law enforcement; includes examples of successful law enforcement efforts to investigate, prosecute, and otherwise disrupt digital asset crimes in spite of the investigative challenges; and describes initiatives that the department and other law enforcement agencies have established—including the department’s launch of the DAC Network—to more effectively detect, investigate, prosecute, and otherwise disrupt crimes relating to digital assets, and to seize and forfeit those assets that constitute ill-gotten gains.

The report also addresses the Executive Order’s request for recommendations on appropriate regulatory and legislative actions. It proposes actions designed to enhance law enforcement’s ability to gather evidence and initiate prosecutions; strengthen certain laws and penalty provisions that play an important role in digital asset prosecutions; support regulations that would enhance customer-identification efforts and other anti-money-laundering requirements under the Bank Secrecy Act; and ensure that law enforcement and regulatory agencies have adequate resources to conduct the technologically sophisticated investigations inherent in the digital assets space. The report identifies three proposals as priorities: 1) expanding to virtual asset service providers the laws preventing employees of financial institutions from tipping off suspects to ongoing investigations; 2) strengthening the law criminalizing the operation of unlicensed money transmitting businesses; and 3) extending the statute of limitations of certain statutes to account for the complexities of digital assets investigations.

This report complements the June 2022 report issued by the department on How to Strengthen International Law Enforcement Cooperation for Detecting, Investigating, and Prosecuting Criminal Activity Related to Digital Assets, which details the unique challenges posed by cross-border digital asset investigations, and includes recommendations on how to bolster enforcement and improve international cooperation in the area.  In line with the whole-of-government approach called for in the Executive Order, both reports are the culmination of collaborative efforts between the department, led by the NCET, and multiple federal agencies, including the Department of the Treasury, the Department of Homeland Security, and the Department of State. 

The Digital Asset Coordinators Network

To ensure that the department continues to meet the challenge posed by the illicit use of digital assets, the department’s Criminal Division recently launched the nationwide DAC Network. Led by the NCET, in close coordination with the Criminal Division’s Computer Crime and Intellectual Property Section and the Money Laundering and Asset Recovery Section’s Digital Currency Initiative, the DAC Network is composed of designated federal prosecutors from U.S. Attorneys’ Offices nationwide and the department’s litigating components. Each DAC will act as their office’s subject-matter expert on digital assets, serving as a first-line source of information and guidance about legal and technical matters related to these technologies.

As members of the DAC Network, prosecutors will learn about the application of existing authorities and laws to digital assets and best practices for investigating digital assets-related crimes, including for drafting search and seizure warrants, restraining orders, criminal and civil forfeiture actions, indictments, and other pleadings. The DAC Network will also serve as a source of information and discussion addressing new digital asset issues, such as DeFi, smart contracts, and token-based platforms, and their use in criminal activity. The DAC Network will likewise raise awareness of the unique international considerations of the crypto ecosystem, including the benefits of leveraging foreign relationships and the challenges of cross-border digital asset investigations. 

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[1] In addition to the report, and in further response to the Executive Order, the Attorney General separately transmitted to the Assistant to the President for National Security Affairs and the Assistant to the President for Economic Policy, via the White House Counsel’s Office, an assessment from the Department of whether legislative changes would be necessary to issue a CBDC, should it be deemed appropriate and in the national interest. 

Raynaldo Rivera Ortiz Jr., a Texas anesthesiologist, was arrested in Plano, Texas, on criminal charges related to allegedly injecting nerve blocking and bronchodilation drugs into patient IV bags at a local surgical center, resulting in at least one death and multiple cardiac emergencies.

According to court documents, on or around June 21, a 55-year-old female coworker of Ortiz, identified in court documents as M.K., experienced a medical emergency and died immediately after treating herself for dehydration using an IV bag of saline taken from the surgical center. An autopsy report revealed that she died from a lethal dose of bupivacaine, a nerve blocking agent that is rarely abused but is often used during the administration of anesthesia.

Two months later, on or around Aug. 24, an 18-year-old male patient, identified in court documents as J.A., experienced a cardiac emergency during a scheduled surgery. The teen was intubated and transferred to a local ICU. Chemical analysis of the fluid from a saline bag used during his surgery revealed the presence of epinephrine (a stimulant that could have caused the patient’s symptoms), bupicavaine, and lidocaine.

According to the complaint, surgical center personnel concluded that the incidents involving M.K. and J.A. suggested a pattern of intentional adulteration of IV bags used at the surgical center. They identified about 10 additional unexpected cardiac emergencies that occurred during otherwise unremarkable surgeries between May and August 2022 – which the complaint alleges to be an exceptionally high rate of complications over such a short period of time. In each of those cases – which investigators believe occurred on or around May 26 and 27; June 27; July 7, 15 and 18; and Aug. 1, 4, 9 and 19 – medical personnel were able to stabilize the patient only through use of emergency measures. Most of the incidents occurred during longer surgeries that used more than one IV bag, including one or more bags retrieved mid-surgery from a stainless steel bag warmer.

The complaint alleges that none of the cardiac incidents occurred during Dr. Ortiz’s surgeries, and that they began just two days after Dr. Oritz was notified of a disciplinary inquiry stemming from an incident during which he allegedly “deviated from the standard of care” during an anesthesia procedure when a patient experienced a medical emergency. The complaint alleges that all of the incidents occurred around the time Dr. Ortiz performed services at the facility, and no incidents occurred while Dr. Ortiz was on vacation.

The complaint further alleges that Dr. Ortiz had a history of disciplinary actions against him, expressed concern to other physicians over disciplinary action at the facility, and complained the center was trying to “crucify” him.

According to court documents, a nurse who worked on one of Dr. Ortiz’s surgeries told law enforcement that Dr. Ortiz refused to use an IV bag she retrieved from the warmer, physically waving the bag off. The complaint alleges that surveillance video from the center’s operating room hallway showed Dr. Ortiz placing IV bags into the stainless-steel bag warmer shortly before other doctors’ patients experienced cardiac emergencies. 

The complaint alleges that in one instance captured in the surveillance video, Dr. Ortiz was observed walking quickly from an operating room to the bag warmer, placing a single IV bag inside, visually scanning the empty hallway, and quickly walking away. Just over an hour later, according to the complaint, a 56-year-old woman suffered a cardiac emergency during a scheduled cosmetic surgery after a bag from the warmer was used during her procedure. The complaint alleges that in another instance, agents observed Dr. Ortiz exit his operating room carrying an IV bag concealed in what appeared to be a paper folder, swap the bag with another bag from the warmer, and walk away. Roughly half an hour later, a 54-year-old woman suffered a cardiac emergency during a scheduled cosmetic surgery after a bag from the warmer was used during her procedure. 

A criminal complaint is merely an allegation of criminal conduct, not evidence. Dr. Ortiz is presumed innocent unless and until proven guilty in a court of law.

“The safety of the nation’s pharmaceutical supply is critically important,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The Department will vigorously prosecute this case consistent with the evidence gathered by our law enforcement partners.”

“Our complaint alleges this defendant surreptitiously injected heart-stopping drugs into patient IV bags, decimating the Hippocratic oath,” said U.S. Attorney Chad E. Meacham for the Northern District of Texas. “A single incident of seemingly intentional patient harm would be disconcerting; multiple incidents are truly disturbing. At this point, however, we believe that the problem is limited to one individual, who is currently behind bars. We will work tirelessly to hold him accountable. In the meantime, it is safe to undergo anesthesia in Dallas.”

Ortiz is charged with tampering with a consumer product and with intentionally adulterating drugs. If convicted, he faces a maximum penalty of life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. Ortiz will make his initial appearance before U.S. Magistrate Judge Renee Toliver in Dallas on Sept. 16.

The U.S. Food & Drug Administration’s Office of Criminal Investigations and the Dallas Police Department conducted the investigation with the assistance of scientists from the University of North Texas. Senior Litigation Counsel Patrick Runkle and Senior Trial Counsel Yolanda McCray Jones of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorneys John de la Garza and Errin Martin for the Northern District of Texas are prosecuting the case.

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

Play audio in K'iche' below:

Audio file Translation in K'iche'

Ri komon rech Taqanem kamik xuya ub’ixik che kab’an jun tzijonem kuk’ taq ri tijob’al rech New Bedford, jawije’ kach’ob’ ri usolik uxe’ ub’anom ri Wokaj rech ri tijob’al jawije’ xb’an wi tzijonem kuk’ ri e tat nan xuquje’ chajinelab’ che man qas ta kekowinik ketzijon pa ri inglés, xuquje’ kuk’ taq ri winaq kech’aw pa ri k’iche’ tzij, che are’ jun ch’ab’al kech aj mayab’ winaq.

Chi’l nik’aj chik, ri Wokaj kukoj nik’aj taq taqanik qas utz chech rilik taq ri ch’ab’al kech’aw wi ri tijoxelab’, xuquje’ ri ch’ab’al kech’aw ri kitat kinan on chajinelab’, are che ri ajchakib’ rech ri tijob’al man xaq ta ke’kit’uyub’a apan ri tijoxelab’ ri kech’aw pa k’iche’ tzij xane rajawaxik ke’ilixik pacha’ ri nik’aj chi ajwaralik winaq, are tzij ri tinamit e petinaq wi. Xuquje’, ri Wokaj uya’om ub’ixik che kub’an ub’anik ri tijonem xuquje’ ri eta’manem kuk’ ri ajsaqwachom chech rilik taq ri kirajawaxik ri tijoxelab’ kech’aw pa k’iche’ tzij xuquje’ ktajin kketa’maj inglés are che kekowinik ke’ok pa taq ri pataninem rech tijonem pacha’ ya’om chi kech e nik’aj chi tijoxelab’ rech ri Wokaj.

«Tijoxelab’ xuquje’ achalaxik chi e petinaq pa taq komon kech aj waralik winaq sib’alaj k’o taq k’axk’olil kakiriqo are taq kkaj ke’ok pa nik’aj taq pataninem rech tijob’al. We k’amuq’ab’ pa junamam kuya’ q’alb’al k’u’xaj chech ri Wokaj karilo xuquje’ kareta’maj kirajawaxik ri tijoxelab’ kech’aw pa ri k’iche’ tzij xuquje’ chi kech ri e tat nan kek’oji’ pa ri tijonem kech ri kalk’u’al », xusuk’ub’a’ ub’ixik ri Kristen Clarke, ri Fiscal General Auxiliar rech ri wokaj rech taq Ya’talil kech Winaq rech ri Wokaj rech Q’atb’altzij. «Ri Wokaj rech Ya’talil kech Winaq qas kuchajij kiya’talil chi kijujunal ri ak’alab’ are che man ke’tzelax taj xuquje’ kek’oji’ pa ri tijob’al ».

Ri k’amuq’ab’ are’ uwachinem ri usolik uxe’ ub’anom ri Wokaj rech To’b’al tzij rech ri Taqanel tzij rech Uya’ik Junamalil Tijonem rech ri junab’ 1974 che xmajix pa ri junab’ 2020. Ri Wokaj xuya utob’anik pa ri usolik uxe’ b’anom xuquje’ xuya q’alb’al k’u’xaj che kub’an ub’anik taq ri tijonem kaya’ik ruk’ jun upajik rij taq ri b’anoj. Pa jun chik, Ri Wokaj rech Q’atb’altzij karilo we qas tzij kab’an ri chomatal pa ri riqoj ib’ rumal ri Wokaj ruk’ oxib’ junab’ chech rilik we qas tzij kub’ano ri uya’om ub’ixik.

Ri ukojik ri taqanik rech ri Uya’ik Junamalil Tijonem rech ri junab’ 1974 are wa’ jun chech ri kaya uq’ij pa ri Wokaj rech Ya’talil kech Winaq rech ri Wokaj rech Q’atb’altzij. Chech uriqik nik’aj usaqil tzij chi rij ri Wokaj rech Ya’talil kech Winaq, chawila’ ri wokk’olib’al web’ pa www.justice.gov/crt-espanol.

Pharmaceutical company Akorn Operating Company LLC (Akorn) has agreed to pay $7.9 million to resolve allegations that it caused the submission of false claims to Medicare Part D, in violation of the False Claims Act, for three generic drugs that were no longer eligible for Medicare coverage.

FDA-approved “prescription only” (Rx-only) drugs may be dispensed only upon a prescription and are reimbursed by Medicare Part D, whereas “over the counter” (OTC) drugs may be purchased by retail customers without a prescription and are not reimbursed by Medicare Part D. Subject to FDA approval, companies may seek to fully convert a brand-name Rx-only drug to an OTC drug. After FDA’s approval of a drug’s full conversion to OTC status, the drug is no longer considered an Rx-only product and makers of generic equivalents are then required either to seek FDA approval for their own OTC switch or to seek withdrawal of their generic’s Rx-only approval and cease marketing it.

Akorn is a pharmaceutical manufacturer with a principal place of business in Illinois, which sold, among other products, the following generic drugs: (1) Diclofenac Sodium 1%, a generic nonsteroidal anti-inflammatory cream (Diclofenac), (2) Olopatadine Hydrocholoride 0.1% and 0.2%, a generic antihistamine eyedrop (Olopatadine), and (3) Azelastine Hydrochloride 0.15%, a generic antihistamine nasal spray (Azelastine) (collectively Akorn Generics) during the relevant time period. The FDA approved a full Rx-to-OTC conversion of the brand names of Diclofenac and Olopatadine in February 2020 and for Azelastine in June 2021.

The United States alleged that Akorn submitted or caused to be submitted false claims to Medicare Part D, in violation of the False Claims Act, by continuing to sell the Akorn Generics under obsolete Rx-only labeling after the brand-name drugs were converted to OTC products. As part of the settlement, Akorn admitted and accepted responsibility for the following facts:

Akorn delayed seeking the required OTC conversions for the Akorn Generics, even after learning that the brand-name drugs for each had converted to OTC status. In particular, Akorn delayed the Akorn Generics losing their Rx-only labeling because it believed that continuing to sell each as purportedly Rx-only would be more profitable for the company. Accordingly, Akorn continued to sell newly manufactured units of the Akorn Generics under their obsolete Rx-only labeling rather than beginning the process of converting these products to OTC or withdrawing their approval and ceasing their distribution. Akorn did not apply to FDA for an OTC conversion of Diclofenac until March 2021 or for Olopatadine until January 2021. Akorn eventually sought to withdraw its FDA approval for Azelastine, rather than convert it to OTC use, but did not do so until January 2022. FDA implemented this withdrawal in February 2022.  

Akorn has been credited in this settlement under the Department of Justice’s guidelines for taking disclosure, cooperation and remediation into account in False Claims Act cases, Justice Manual §4-4.112.

The allegations resolved by the settlement agreement were, in part, originally brought in a case filed under the whistleblower, or qui tam, provision of the False Claims Act. The case is captioned U.S. ex rel. Albermarle, LLC v. Akorn Operating Company LLC. (D. Mass.). The False Claims Act permits private parties to sue for fraud on behalf of the United States and to share in any recovery. The act also permits the government to intervene in such actions, as the government did partially in this case, The whistleblower will receive approximately $946,000 from the recovery.

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

This matter is being handled by Senior Trial Counsel Augustine Ripa and Assistant U.S. Attorney Abraham George, with investigative support from the FBI. The Department of Health and Human Services Office of Inspector General assisted with this matter.

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

The Justice Department and the City of Albuquerque (City) today agreed that because the City has sustained compliance with significant provisions of the consent decree for the last two years, covering the Albuquerque Police Department (APD), the City now will self-assess compliance with those provisions. The announcement was made by filing a joint notice of the parties’ agreement with the U.S. District Court for the District of New Mexico, which oversees the City’s implementation of the consent decree.

The City will analyze and publicly report on its compliance every six months, pursuant to a self-assessment plan also filed with the court. This transition to self-assessment is a significant accomplishment, and represents significant progress toward compliance and termination of the consent decree. 

“The Albuquerque Police Department has made real progress toward compliance with this Consent Decree,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The progress that we have seen in the City of Albuquerque has yielded reform and is moving the city in the right direction when it comes to constitutional policing. We look forward to working with officials to achieve full compliance with the consent decree. The residents of Albuquerque deserve nothing less.”

“Today, we come before the court to recognize important and sustained advances made by the Albuquerque Police Department toward the goal of constitutional, effective policing,” said U.S. Attorney Alexander M.M. Uballez for the District of New Mexico. “Successful self-assessment is the cornerstone of true reform, and the Albuquerque community should expect no less. I want to commend the hard work put in by the men and women of APD, as well as the persistence of community stakeholders, that went into this accomplishment. Together, we will realize the goals set out by this community, through mutual agreement, seven years ago.”

As detailed in today’s joint notice, the City has achieved sustained substantial compliance with and will self-assess the portions of the consent decree covering:

• The Multi-Agency Task Force that investigates shootings by APD officers;
• Specialized units (except tactical units);
• Training on behavioral health and field training;
• Filing of complaints by the public;
• Officer support programs;
• Recruitment, hiring, performance evaluations, and promotions; and more.

For example, APD has achieved full compliance with the consent decree’s requirement that it “develop a comprehensive recruitment and hiring program that successfully attracts and hires qualified individuals.” In its most recent report, the independent monitor found that APD has “set new standards in police recruiting,” and increased interest in joining APD at a time when police recruiting has become more difficult nationwide. In addition, APD has also developed and maintained a robust and effective public information program to facilitate misconduct reporting and ensure that civilian complaints are accepted and investigated.

The parties’ agreement reflects the strides APD has made in important areas of reform, while also recognizing that APD has put in place the necessary staff and systems to accurately and credibly assess its own continued compliance with these portions of the consent decree. This agreement will allow APD to focus even more on critical areas where it has made substantial improvements, as recognized by the independent monitor in its most recent report. These areas include force investigations, for which the monitoring team found that APD had improved both timeliness and quality, and discipline, where the monitoring team noted that APD continues to make “marked improvements.”

The Justice Department initiated an investigation of APD in November 2012 under the Violent Crime Control and Law Enforcement Act of 1994. This law authorizes the Attorney General to file a lawsuit to address a pattern or practice of conduct by law enforcement officers that deprives individuals of their rights under the Constitution or federal law. The investigation was conducted by the Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office for the District of New Mexico. The Justice Department announced the findings of the investigation in April 2014. The consent decree was approved by the U.S. District Court for the District of New Mexico in June 2015.

The findings report and the settlement agreement, as well as additional information about the Civil Rights Division, are available on its website at Special Litigation Section Cases and Matters (justice.gov). Additional information about implementation of the consent decree is also available on the website of the U.S. Attorney’s Office at Investigation into Albuquerque Police Department (justice.gov).

The U.S. Department of Justice filed a civil antitrust lawsuit today to block ASSA ABLOY AB’s (ASSA ABLOY) proposed $4.3 billion acquisition of the Hardware and Home Improvement division of its rival, Spectrum Brands Holdings Inc (Spectrum). ASSA ABLOY and Spectrum are two of the three largest producers of residential door hardware in the concentrated, $2.4 billion U.S. industry.

The complaint, filed in the U.S. District Court for the District of Columbia, alleges that the merger would eliminate important head-to-head competition between ASSA ABLOY and Spectrum, risking higher prices, lower quality, reduced innovation and poorer service in the sale of at least two types of residential door hardware: premium mechanical door hardware and smart locks.

“Millions of Americans rely on these companies’ door hardware products every day to meet their most basic privacy and security needs,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “Competition between these two companies, which are two of the three largest companies in an already concentrated industry, has benefitted American consumers in the form of lower prices and better quality. That important competition would be extinguished if this merger were allowed to proceed to the detriment of Americans.”

The complaint, which seeks to enjoin the transaction under Section 7 of the Clayton Act, alleges that ASSA ABLOY and Spectrum have competed for years to be leaders in the U.S. markets for premium mechanical door hardware and for smart locks. The proposed transaction would transform these markets, giving ASSA ABLOY a near-monopoly in premium mechanical door hardware and more than a 50% share in smart locks, leaving only one significant competitor.  More broadly, a combined ASSA ABLOY/Spectrum would control approximately 50% of the overall residential door hardware market. Hundreds of millions of dollars’ worth of premium mechanical door hardware and smart locks are sold each year in the United States. Premium mechanical door hardware is made of high-quality, durable metals (primarily forged brass and cast bronze), and is highly customizable, design-driven, and constructed with superior craftsmanship. Smart locks are an increasingly popular type of digital door lock that can be remotely operated and monitored through a wireless connection to another electronic device, such as a smart phone or smart speaker.    

ASSA ABLOY AB is a publicly traded Swedish stock company headquartered in Stockholm, Sweden. It sells its residential door hardware products in the United States under the August, EMTEK, and Yale brands. ASSA ABLOY’s revenues were approximately $9.1 billion in 2021.

Spectrum Brands Holdings Inc. is a publicly traded Delaware corporation headquartered in Middleton, Wisconsin.  It sells its residential hardware products in the United States under the Baldwin and Kwikset brands. Spectrum’s revenues were approximately $4.6 billion in 2021.